Chapter 59 Oregon Laws 1999

Session Law

AN ACT

SB 564

Relating to correction of erroneous material in Oregon law; creating new provisions; amending ORS 2.570, 3.425, 18.325, 19.005, 19.315, 21.112, 40.460, 59.185, 65.951, 79.1050, 100.450, 107.097, 107.437, 107.510, 107.520, 107.610, 107.765, 109.175, 116.113, 135.905, 144.101, 153.130, 153.800, 163.105, 167.162, 167.164, 171.580, 174.535, 179.380, 179.479, 181.536, 181.700, 183.722, 184.345, 192.105, 192.650, 192.690, 192.835, 194.515, 196.645, 196.660, 196.681, 196.795, 196.910, 197.274, 197.298, 205.460, 215.750, 215.806, 243.291, 243.650, 244.050, 247.296, 254.056, 254.085, 260.178, 260.180, 260.182, 260.184, 260.265, 274.825, 279.015, 279.057, 291.445, 293.495, 293.835, 315.259, 319.730, 329.155, 329.237, 329.885, 332.432, 336.631, 339.030, 339.250, 339.505, 341.305, 342.130, 344.520, 344.735, 345.505, 348.594, 348.596, 348.606, 348.625, 348.992, 351.070, 351.110, 366.335, 377.650, 390.139, 390.195, 410.430, 411.040, 414.025, 416.030, 417.210, 417.760, 418.035, 418.070, 418.312, 418.658, 418.784, 419A.004, 419A.052, 419A.255, 419B.365, 419C.250, 426.500, 430.705, 446.260, 448.005, 448.115, 455.190, 455.525, 456.515, 459A.120, 462.020, 465.505, 465.507, 465.523, 468.150, 468.225, 468A.098, 471.253, 472.125, 475A.010, 475A.015, 475A.035, 475A.045, 475A.075, 475A.110, 475A.115, 475A.125, 475A.130, 475A.135, 475A.155, 477.001, 477.281, 477.665, 479.530, 480.315, 497.132, 497.162, 508.285, 520.015, 526.992, 527.620, 530.280, 536.420, 537.346, 537.575, 541.370, 541.392, 561.150, 564.110, 565.210, 568.930, 571.530, 610.030, 618.071, 624.080, 634.212, 634.905, 635.055, 646.551, 646.605, 652.020, 652.110, 652.140, 652.320, 653.310, 657.044, 657.072, 657.507, 659.322, 670.306, 672.160, 675.063, 679.165, 688.220, 688.645, 689.255, 692.180, 701.150, 701.410, 703.070, 703.420, 703.425, 705.010, 706.520, 708A.115, 708A.155, 708A.565, 708A.650, 709.130, 711.215, 713.090, 716.520, 716.588, 723.188, 744.057, 744.609, 746.015, 746.150, 746.265, 758.400, 801.258, 802.170, 802.600, 805.390, 806.090, 806.270, 810.180, 810.365, 815.107, 818.210, 821.220, 824.102, 824.106, 824.110, 825.137, 830.005 and 830.700 and section 16, chapter 8, Oregon Laws 1997, section 1, chapter 374, Oregon Laws 1997, section 3, chapter 643, Oregon Laws 1997, and section 40, chapter 746, Oregon Laws 1997, and ORCP 46B and 55C; and repealing ORS 21.385, 431.275, 431.280 and 599.411.

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

SECTION 1. ORS 174.535 is amended to read:

174.535. It is the policy of the Legislative Assembly to revise sections from Oregon Revised Statutes and Oregon law periodically in order to maintain accuracy. However, nothing in chapter 740, Oregon Laws 1983, chapter 565, Oregon Laws 1985, chapter 158, Oregon Laws 1987, chapter 171, Oregon Laws 1989, chapters 67 and 927, Oregon Laws 1991, chapters 18 and 469, Oregon Laws 1993, chapter 79, Oregon Laws 1995, [and] chapter 249, Oregon Laws 1997, or this 1999 Act is intended to alter the legislative intent or purpose of statutory sections affected by chapter 740, Oregon Laws 1983, chapter 565, Oregon Laws 1985, chapter 158, Oregon Laws 1987, chapter 171, Oregon Laws 1989, chapters 67 and 927, Oregon Laws 1991, chapters 18 and 469, Oregon Laws 1993, chapter 79, Oregon Laws 1995, [and] chapter 249, Oregon Laws 1997, and this 1999 Act except insofar as the amendments thereto, or repeals thereof, specifically require.

NOTE: Sets forth Reviser's Bill policy statement.

SECTION 2. ORS 2.570 is amended to read:

2.570. (1) In hearing and determining causes, the judges of the Court of Appeals may sit together or in departments.

(2) A department shall consist of three judges. For convenience of administration, each department may be numbered. The Chief Judge shall from time to time designate the number of departments and make assignments of the judges among the departments. The Chief Judge may sit in one or more departments and when so sitting may preside. The Chief Judge shall designate a judge to preside in each department.

(3) The majority of any department shall consist of regularly elected and qualified judges of the Court of Appeals; provided that, if disqualifications, recusals or other events reduce the number of available judges to fewer than three, the Supreme Court may appoint such number of qualified persons as may be necessary as pro tempore members of the Court of Appeals.

(4) The Chief Judge shall apportion the business of the court between the departments. Each department shall have power to hear and determine causes, and all questions [which] that may arise therein, subject to subsection (6) of this section. The presence of three judges is necessary to transact business in any department, except such business as may be transacted in chambers by any judge. The concurrence of two judges is necessary to pronounce judgment.

(5) In the event a judge of a department of three judges dies or becomes disabled or disqualified and is therefore unable to participate in the decision of a case submitted to that department, another judge may be assigned to the department and may participate in the decision with the other two judges of the department without resubmission of the case.

(6) The Chief Judge or a majority of the regularly elected and qualified judges of the Court of Appeals may at any time order a cause to be heard in banc. When sitting in banc, the court may include not more than two judges pro tempore of the Court of Appeals. When the court sits in banc, the concurrence of a majority of the judges participating is necessary to pronounce judgment, but if the judges participating are equally divided in their view as to the judgment to be given, the judgment appealed from shall be affirmed.

NOTE: Clarifies reference to Court of Appeals in (3); corrects grammar in (4).

SECTION 3. ORS 3.425 is amended to read:

3.425. (1) The family court department or, if there is no family court department, the presiding judge or designee of each circuit court may establish an education program designed to inform parents about the impact of family restructuring on children when the parent is a named party in any of the following proceedings:

(a) An annulment or dissolution of marriage action.

(b) A legal separation action.

(d) Post-decree litigation involving custody or parenting time.

(2) An education program established under subsection (1) of this section must include, but need not be limited to, information about:

(a) The emotional impact of a dissolution of marriage or a separation on children at different developmental stages.

(b) Parenting during and after a dissolution of marriage or a separation.

(d) The effect on children of parental conduct including, but not limited to, long distance parenting.

(e) Mediation and conflict resolution.

(3) The family court department or, if there is no family court department, the presiding judge or designee of each circuit court may establish an education program designed to provide information about dissolution law and legal procedures, mediation and other dispute resolution alternatives to persons seeking to annul or dissolve a marriage or to separate from each other. The program must include, but need not be limited to, information about:

(a) Shared parenting plans.

(b) Division of marital property.

(d) Court procedures and time requirements.

(e) Litigation, mediation and conflict resolution.

(f) The role of attorneys in mediation.

(4) The court may order the parties in any action listed in subsection (1) of this section to participate in education programs described in this section unless:

(a) Subject to the approval of the court, the parties agree not to participate;

(b) On motion of either party or on its own motion, the court determines that participation is unnecessary; or

(5) The court may not require both parties to attend an education program established under this section at the same time.

(6)(a) The family court department or, if there is no family court department, the presiding judge or designee of each circuit court shall designate the program providers for the education programs.

(b) A program provider may charge a person a reasonable fee to attend education programs. A program provider may not exclude a person from attending education programs due to an inability to pay the fee if the court has indicated that the person is indigent or otherwise unable to pay the fee.

(c) A program provider shall issue a certificate of completion to a participant when the participant has satisfactorily completed the education programs. A certificate of completion must be filed with the court prior to the entry of the final judgment in the action.

NOTE: Corrects punctuation in (2), (2)(d) and (3).

SECTION 4. ORCP 46 B is amended to read:

B Failure to comply with order.

B(1) Sanctions by court in the county where the deponent is located. If a deponent fails to be sworn or to answer a question after being directed to do so by a circuit [or district] court judge in the county in which the deponent is located, the failure may be considered a contempt of court.

B(2) Sanctions by court in which action is pending. If a party or an officer, director, or managing agent or a person designated under Rule 39 C(6) or 40 A to testify on behalf of a party fails to obey an order to provide or permit discovery, including an order made under section A of this rule or Rule 44, the court in which the action is pending may make such orders in regard to the failure as are just, including among others, the following:

B(2)(a) An order that the matters regarding which the order was made or any other designated facts shall be taken to be established for the purposes of the action in accordance with the claim of the party obtaining the order;

B(2)(b) An order refusing to allow the disobedient party to support or oppose designated claims or defenses, or prohibiting the disobedient party from introducing designated matters in evidence;

B(2)(c) An order striking out pleadings or parts thereof, or staying further proceedings until the order is obeyed, or dismissing the action or any part thereof, or rendering a judgment by default against the disobedient party;

B(2)(d) In lieu of any of the foregoing orders or in addition thereto, an order treating as a contempt of court the failure to obey any order except an order to submit to a physical or mental examination.

B(2)(e) Such orders as are listed in paragraphs (a), (b), and (c) of this subsection, where a party has failed to comply with an order under Rule 44 A requiring the party to produce another for examination, unless the party failing to comply shows inability to produce such person for examination.

B(3) Payment of expenses. In lieu of any order listed in subsection (2) of this section or in addition thereto, the court shall require the party failing to obey the order or the attorney advising such party or both to pay the reasonable expenses, including attorney's fees, caused by the failure, unless the court finds that the failure was substantially justified or that other circumstances make an award of expenses unjust.

NOTE: Deletes obsolete reference to district court in B(1).

SECTION 5. ORCP 55 C is amended to read:

C Issuance.

C(1) By whom issued. A subpoena is issued as follows: (a) to require attendance before a court, or at the trial of an issue therein, or upon the taking of a deposition in an action pending therein or, if separate from a subpoena commanding the attendance of a person, to produce books, papers, documents or tangible things and to permit inspection thereof: (i) it may be issued in blank by the clerk of the court in which the action is pending, or if there is no clerk, then by a judge or justice of such court; or (ii) it may be issued by an attorney of record of the party to the action in whose behalf the witness is required to appear, subscribed by the signature of such attorney; (b) to require attendance before any person authorized to take the testimony of a witness in this state under Rule 38 C, or before any officer empowered by the laws of the United States to take testimony, it may be issued by the clerk of a circuit [or district] court in the county in which the witness is to be examined; (c) to require attendance out of court in cases not provided for in paragraph (a) of this subsection, before a judge, justice, or other officer authorized to administer oaths or take testimony in any matter under the laws of this state, it may be issued by the judge, justice, or other officer before whom the attendance is required.

C(2) By clerk in blank. Upon request of a party or attorney, any subpoena issued by a clerk of court shall be issued in blank and delivered to the party or attorney requesting it, who shall fill it in before service.

NOTE: Deletes obsolete reference to district court in C(1).

SECTION 6. ORS 18.325 is amended to read:

18.325. Unless otherwise prescribed by law, a person recording a lien record abstract shall use substantially the following form:

___________________________________________________________________

LIEN RECORD ABSTRACT

The undersigned states:

A. Creditor/Prevailing Party Information:

__ 1. The creditor/prevailing party is:

___________________________________

and the address of the creditor is:

___________________________________

under judgment, decree, order or

petition entered on _____ (date)

in the [District/Circuit Court/____]

_______ Court for _______ (County) of

_______ (State) under Case No.

______________.

__ 2. The Creditor's attorney's name is

___________________________________

Attorney's Address is:

___________________________________

Attorney's Phone No. is: _______________

B. Debtor/Losing Party Information:

__ 1. The Debtor/losing party is:

___________________________________

__ 2. Whose Address is (if known):

___________________________________

__ 3. Social Security No. (if known):

___________________________________

C. Judgment Information:

__ 1. The amount of the judgment is:

___________________________________

__ 2. The amount of the costs is:

___________________________________

__ 3. The amount of attorney fees, if any

is: _________________________________

D. The Real Property to be Affected

(Check appropriate box):

__ All real property of the debtor/losing

party, now or hereafter acquired, in

________ County as provided

under ORS 18.320 and 18.350.

__ The following described real property

of debtor (legal description as set forth

or on attached Exhibit):

___________________________________

IN WITNESS WHEREOF, the

undersigned person or persons have

executed this abstract this ___ day

of _____, 19__.

________________ ________________

State of Oregon )

) ss.

County of ______ )

The foregoing instrument was acknowledged before me this ____ day of _____, 19___ by _______.

_____________________

Notary Public for Oregon

My commission expires: _______

State of Oregon )

) ss.

County of ______ )

The foregoing instrument was acknowledged before me this ___ day of ___, 19___ by _____________ and by _______________ of __________, a corporation on behalf of the corporation.

_____________________

Notary Public for Oregon

My commission expires: _______

___________________________________________________________________

NOTE: Corrects reference to court in section A of form.

SECTION 7. Section 40, chapter 746, Oregon Laws 1997, is amended to read:

Sec. 40. (1) Unless otherwise prescribed by law, a person recording a lien record abstract shall use substantially the following form:

___________________________________________________________________

LIEN RECORD ABSTRACT

The undersigned states:

A. Creditor/Prevailing Party Information:

__ 1. The creditor/prevailing party is:

___________________________________

and the address of the creditor is:

___________________________________

under judgment, decree, order or

petition entered on _____ (date)

in the [District/Circuit Court/____]

_____ Court for _____ (County) of

_____ (State) under Case No.

____________.

__ 2. The Creditor's attorney's name is

___________________________________

Attorney's Address is:

___________________________________

Attorney's Phone No. is: _______________

B. Debtor/Losing Party Information:

__ 1. The Debtor/losing party is:

___________________________________

__ 2. Whose Address is (if known):

___________________________________

__ 3. Social Security No. (if known):

___________________________________

C. Judgment Information:

__ 1. The amount of the judgment is:

___________________________________

__ 2. The amount of the costs is:

___________________________________

__ 3. The amount of attorney fees, if any

is: _________________________________

D. The Real or Personal Property to be Affected

(Check appropriate box):

__ All real property of the debtor/losing

party, now or hereafter acquired, in

________ County as provided

under ORS 18.350 and section 39,

chapter 746, Oregon Laws 1997

[of this Act].

__ The following described real or personal

property of debtor (legal description as set

forth or on attached Exhibit):

___________________________________

IN WITNESS WHEREOF, the

undersigned person or persons have

executed this abstract this ___ day

of _____, 19__.

________________ ________________

State of Oregon )

) ss.

County of ______ )

The foregoing instrument was acknowledged before me this ____ day of _____, 19__ by _______.

_____________________

Notary Public for Oregon

My commission expires: _______

State of Oregon )

) ss.

County of ______ )

The foregoing instrument was acknowledged before me this _____ day of _____, 19__ by ________________ and by ________________ of ____________, a corporation on behalf of the corporation.

_____________________

Notary Public for Oregon

My commission expires: _______

___________________________________________________________________

(2) A lien record abstract that is the result of a judgment for unpaid child or spousal support entered in another state shall be on the form prescribed by rules adopted by the Department of Human Resources in lieu of the form required by subsection (1) of this section.

NOTE: Corrects reference to court in section A of form.

SECTION 8. Nothing in the amendments to ORS 18.325 or section 40, chapter 746, Oregon Laws 1997, by section 6 or 7 of this 1999 Act affects the operative-in-lieu or repealing provisions of section 1, chapter 746, Oregon Laws 1997.

SECTION 8a. If Senate Bill 29 becomes law, sections 7 (amending section 40, chapter 746, Oregon Laws 1997) and 8 of this 1999 Act are repealed.

SECTION 9. ORS 19.005 is amended to read:

19.005. As used in this chapter:

(1) "Clerk" means the trial court administrator under ORS 8.185 for the county in which the judgment or appealable order is filed and entered[, or either].

(2) "Exhibits" means exhibits offered and received or rejected in the trial court.

(3) "Judgment" means judgment, decree or appealable order, as provided in ORS 19.205.

(4) "Notice of appeal" includes a notice of cross-appeal.

(5) "Record" or "record of the case" means the trial court file and any transcript, narrative statement and exhibits.

(6) "Supersedeas undertaking" means an undertaking on appeal that secures performance of a judgment being appealed and operates to stay enforcement of the judgment pending appeal.

(7) "Transcript" means the transcript of the court reporter's report as provided in ORS 8.340, 8.350 and 8.360 and any transcript of an audio record prepared under ORS 19.370.

(8) "Trial court file" means all the original papers filed in the trial court whether before or after judgment, including but not limited to the summons and proof of service thereof, pleadings, motions, affidavits, depositions, stipulations, orders, jury instructions, the judgment, the notice of appeal and the undertaking on appeal.

(9) "Undertaking for costs" means an undertaking on appeal that secures payment of costs and disbursements that may be awarded against an appellant on appeal, and any amounts that may be awarded to the respondent under the provisions of ORS 19.445.

(10) "Undertaking on appeal" means a promise secured by sureties or by money, bond or any other security described in ORS 22.020. "Undertaking on appeal" includes undertakings for costs and supersedeas undertakings.

NOTE: Corrects syntax in (1).

SECTION 10. ORS 19.315 is amended to read:

19.315. (1) Except as provided in subsection (4) of this section, an irrevocable letter of credit filed in support of an undertaking on appeal must contain:

(a) The name and address of the issuing bank, the date of issuance and the limit of the bank's liability under the letter of credit.

(b) The name of the court that entered the judgment being appealed and the title and file number of the case for which the judgment was entered.

(c) The name and address of the party who is filing the undertaking or, if the party is represented by an attorney, the name and address of the attorney.

(d) The name and address of the beneficiary or, if the beneficiary is represented by an attorney, the name and address of the attorney for the beneficiary.

(e) A statement that the issuing bank will pay to the beneficiary, up to the limit stated in the letter of credit, the amount of any drafts submitted to the issuing bank under ORS 19.325.

(2) An irrevocable letter of credit filed in support of an undertaking on appeal may be issued only by [a commercial bank, as defined in ORS 706.005] an insured institution, as defined in ORS 706.008, that has an office or other facility in this state or that has a registered agent in this state.

(3) A letter of credit under this section may contain an expiration date. Any letter of credit containing an expiration date must comply with ORS 19.320.

(4) A party filing a letter of credit in support of an undertaking on appeal and the party for whose benefit an undertaking is filed may by agreement waive any of the requirements of subsection (1) of this section.

NOTE: Corrects terminology and ORS reference in (2).

SECTION 11. ORS 21.112 is amended to read:

21.112. (1) The clerk of the court shall collect at the time a proceeding described in subsection (2) of this section is filed a fee in an amount determined by the governing body of the county to be necessary in the particular type of case, in addition to any other funds used therefor, to pay the expenses of providing the services required or allowed by ORS 107.434, 107.510 to 107.610 and 107.755 to 107.785 and established by order or rule of the governing body filed with the clerk of the court. The fees provided for in this section are in addition to all other fees that are collected by the clerk at the time the proceeding is filed. Fees collected under this section shall be paid, in the manner determined by the State Court Administrator, to the appropriate officer of the county within the first 25 days of the month following the month in which collected. The fees shall be used by the county to pay the expenses of providing the services.

(2) The additional fee established by this section shall be collected by the clerk:

(a) In the following proceedings:

(A) Proceedings for dissolution of marriage, annulment of marriage or separation.

(B) Filiation proceedings under ORS 109.124 to 109.230.

(D) Proceedings for modifications of orders issued under subparagraphs (A) to (C) of this paragraph.

(E) Proceedings under ORS 107.434.

(b) Notwithstanding ORS [21.110 (2)] 21.111 (3), for responses in any of the proceedings listed in paragraph (a) of this subsection.

NOTE: Corrects ORS reference in (2)(b).

SECTION 12. ORS 21.385 is repealed.

NOTE: Repeals duplicative statute.

SECTION 13. ORS 40.460 is amended to read:

40.460. The following are not excluded by ORS 40.455, even though the declarant is available as a witness:

(1) (Reserved.)

(2) A statement relating to a startling event or condition made while the declarant was under the stress of excitement caused by the event or condition.

(3) A statement of the declarant's then existing state of mind, emotion, sensation or physical condition, such as intent, plan, motive, design, mental feeling, pain or bodily health, but not including a statement of memory or belief to prove the fact remembered or believed unless it relates to the execution, revocation, identification, or terms of the declarant's will.

(4) Statements made for purposes of medical diagnosis or treatment and describing medical history, or past or present symptoms, pain or sensations, or the inception or general character of the cause of external source thereof insofar as reasonably pertinent to diagnosis or treatment.

(5) A memorandum or record concerning a matter about which a witness once had knowledge but now has insufficient recollection to enable the witness to testify fully and accurately, shown to have been made or adopted by the witness when the matter was fresh in the memory of the witness and to reflect that knowledge correctly. If admitted, the memorandum or record may be read into evidence but may not itself be received as an exhibit unless offered by an adverse party.

(6) A memorandum, report, record, or data compilation, in any form, of acts, events, conditions, opinions, or diagnoses, made at or near the time by, or from information transmitted by, a person with knowledge, if kept in the course of a regularly conducted business activity, and if it was the regular practice of that business activity to make the memorandum, report, record, or data compilation, all as shown by the testimony of the custodian or other qualified witness, unless the source of information or the method of circumstances of preparation indicate lack of trustworthiness. The term "business" as used in this subsection includes business, institution, association, profession, occupation, and calling of every kind, whether or not conducted for profit.

(7) Evidence that a matter is not included in the memoranda, reports, records, or data compilations, and in any form, kept in accordance with the provisions of subsection (6) of this section, to prove the nonoccurrence or nonexistence of the matter, if the matter was of a kind of which a memorandum, report, record, or data compilation was regularly made and preserved, unless the sources of information or other circumstances indicate lack of trustworthiness.

(8) Records, reports, statements, or data compilations, in any form, of public offices or agencies, setting forth:

(a) The activities of the office or agency;

(b) Matters observed pursuant to duty imposed by law as to which matters there was a duty to report, excluding however, in criminal cases matters observed by police officers and other law enforcement personnel; or

(c) In civil actions and proceedings and against the government in criminal cases, factual findings, resulting from an investigation made pursuant to authority granted by law, unless the sources of information or other circumstances indicate lack of trustworthiness.

(9) Records or data compilations, in any form, of births, fetal deaths, deaths or marriages, if the report thereof was made to a public office pursuant to requirements of law.

(10) To prove the absence of a record, report, statement, or data compilation, in any form, or the nonoccurrence or nonexistence of a matter of which a record, report, statement, or data compilation, in any form, was regularly made and preserved by a public office or agency, evidence in the form of a certification in accordance with ORS 40.510, or testimony, that diligent search failed to disclose the record, report, statement, or data compilation, or entry.

(11) Statements of births, marriages, divorces, deaths, legitimacy, ancestry, relationship by blood or marriage, or other similar facts of personal or family history, contained in a regularly kept record of a religious organization.

(12) A statement of fact contained in a certificate that the maker performed a marriage or other ceremony or administered a sacrament, made by a clergyman, public official, or other person authorized by the rules or practices of a religious organization or by law to perform the act certified, and purporting to have been issued at the time of the act or within a reasonable time thereafter.

(13) Statements of facts concerning personal or family history contained in family bibles, genealogies, charts, engravings on rings, inscriptions on family portraits, engravings on urns, crypts, or tombstones, or the like.

(14) The record of a document purporting to establish or affect an interest in property, as proof of content of the original recorded document and its execution and delivery by each person by whom it purports to have been executed, if the record is a record of a public office and an applicable statute authorizes the recording of documents of that kind in that office.

(15) A statement contained in a document purporting to establish or affect an interest in property if the matter stated was relevant to the purpose of the document, unless dealings with the property since the document was made have been inconsistent with the truth of the statement or the purport of the document.

(16) Statements in a document in existence 20 years or more the authenticity of which is established.

(17) Market quotations, tabulations, lists, directories, or other published compilations, generally used and relied upon by the public or by persons in particular occupations.

(18) (Reserved.)

(18a)(a) A complaint of sexual misconduct or complaint of abuse as defined in ORS 419B.005 made by the witness after the commission of the alleged misconduct or abuse at issue. Except as provided in paragraph (b) of this subsection, such evidence must be confined to the fact that the complaint was made.

(b) A statement made by a child victim or person with developmental disabilities as described in paragraph (d) of this subsection, which statement concerns an act of abuse, as defined in ORS 419B.005, or sexual conduct performed with or on the child or person with developmental disabilities by another, is not excluded by ORS 40.455 if the child or person with developmental disabilities either testifies at the proceeding and is subject to cross-examination or is chronologically or mentally under 12 years of age and is unavailable as a witness. However, when a witness under 12 years of age or a person with developmental disabilities is unavailable as a witness, the statement may be admitted in evidence only if the proponent establishes that the time, content and circumstances of the statement provide indicia of reliability, and in a criminal trial that there is corroborative evidence of the act of abuse or sexual conduct and of the alleged perpetrator's opportunity to participate in the conduct and that the statement possesses indicia of reliability as is constitutionally required to be admitted. No statement may be admitted under this paragraph unless the proponent of the statement makes known to the adverse party the proponent's intention to offer the statement and the particulars of the statement no later than 15 days before trial, except for good cause shown. For purposes of this paragraph, in addition to those situations described in ORS 40.465 (1), the child or person with developmental disabilities shall be considered "unavailable" if the child or person with developmental disabilities has a substantial lack of memory of the subject matter of the statement, is presently incompetent to testify, is unable to communicate about the abuse or sexual conduct because of fear or other similar reason or is substantially likely, as established by expert testimony, to suffer lasting severe emotional trauma from testifying. Unless otherwise agreed by the parties, the court shall examine the child or person with developmental disabilities in chambers and on the record or outside the presence of the jury and on the record. The examination shall be conducted immediately prior to the commencement of the trial in the presence of the attorney and the legal guardian or other suitable adult as designated by the court. If the child or person with developmental disabilities is found to be unavailable, the court shall then determine the admissibility of the evidence. The determinations shall be appealable under ORS 138.060 (3). The purpose of the examination shall be to aid the court in making its findings regarding the availability of the child or person with developmental disabilities as a witness and the reliability of the statement of the child or person with developmental disabilities. In determining whether a statement possesses indicia of reliability under this paragraph, the court may consider, but is not limited to, the following factors:

(A) The personal knowledge of the child or person with developmental disabilities of the event;

(B) The age and maturity of the child or extent of disability of the person with developmental disabilities;

(C) Certainty that the statement was made, including the credibility of the person testifying about the statement and any motive the person may have to falsify or distort the statement;

(D) Any apparent motive the child or person with developmental disabilities may have to falsify or distort the event, including bias, corruption or coercion;

(E) The timing of the statement of the child or person with developmental disabilities;

(F) Whether more than one person heard the statement;

(G) Whether the child or person with developmental disabilities was suffering pain or distress when making the statement;

(H) Whether the child's young age makes it unlikely that the child fabricated a statement that represents a graphic, detailed account beyond the child's knowledge and experience;

(I) Whether the statement has internal consistency or coherence and uses terminology appropriate to the child's age or to the extent of the disability of the person with developmental disabilities;

(J) Whether the statement is spontaneous or directly responsive to questions; and

(K) Whether the statement was elicited by leading questions.

(d) For the purposes of this subsection, "developmental disabilities" means any disability attributable to mental retardation, autism, cerebral palsy, epilepsy or other disabling neurological condition that requires training or support similar to that required by persons with mental retardation, if either of the following apply:

(A) The disability originates before the person attains 22 years of age, or if the disability is attributable to mental retardation the condition is manifested before the person attains 18 years of age, the disability can be expected to continue indefinitely, and the disability constitutes a substantial handicap to the ability of the person to function in society.

(B) The disability results in a significant subaverage general intellectual functioning with concurrent deficits in adaptive behavior that are manifested during the developmental period.

(19) Reputation among members of a person's family by blood, adoption or marriage, or among a person's associates, or in the community, concerning a person's birth, adoption, marriage, divorce, death, legitimacy, relationship by blood or adoption or marriage, ancestry, or other similar fact of a person's personal or family history.

(20) Reputation in a community, arising before the controversy, as to boundaries of or customs affecting lands in the community, and reputation as to events of general history important to the community or state or nation in which located.

(21) Reputation of a person's character among associates of the person or in the community.

(22) Evidence of a final judgment, entered after a trial or upon a plea of guilty, but not upon a plea of no contest, adjudging a person guilty of a crime other than a traffic offense, to prove any fact essential to sustain the judgment, but not including, when offered by the government in a criminal prosecution for purposes other than impeachment, judgments against persons other than the accused. The pendency of an appeal may be shown but does not affect admissibility.

(23) Judgments as proof of matters of personal, family or general history, or boundaries, essential to the judgment, if the same would be provable by evidence of reputation.

(24) Notwithstanding the limits contained in subsection (18a) of this section, in any proceeding in which a child under 12 years of age at the time of trial, or a person with developmental disabilities as described in subsection [(18)(d)] (18a)(d) of this section, may be called as a witness to testify concerning an act of abuse, as defined in ORS 419B.005, or sexual conduct performed with or on the child or person with developmental disabilities by another, the testimony of the child or person with developmental disabilities taken by contemporaneous examination and cross-examination in another place under the supervision of the trial judge and communicated to the courtroom by closed circuit television or other audiovisual means. Testimony will be allowed as provided in this subsection only if the court finds that there is a substantial likelihood, established by expert testimony, that the child or person with developmental disabilities will suffer severe emotional or psychological harm if required to testify in open court. If the court makes such a finding, the court, on motion of a party, the child, the person with developmental disabilities or the court in a civil proceeding, or on motion of the district attorney, the child or the person with developmental disabilities in a criminal or juvenile proceeding, may order that the testimony of the child or the person with developmental disabilities be taken as described in this subsection. Only the judge, the attorneys for the parties, the parties, individuals necessary to operate the equipment and any individual the court finds would contribute to the welfare and well-being of the child or person with developmental disabilities may be present during the testimony of the child or person with developmental disabilities.

(25) Any document containing data prepared or recorded by the Oregon State Police pursuant to ORS 813.160 (1)(b)(C) or (E), or pursuant to ORS 475.235 (3), if the document is produced by data retrieval from the Law Enforcement Data System or other computer system maintained and operated by the Oregon State Police, and the person retrieving the data attests that the information was retrieved directly from the system and that the document accurately reflects the data retrieved.

(26)(a) A statement not specifically covered by any of the foregoing exceptions but having equivalent circumstantial guarantees of trustworthiness, if the court determines that:

(A) The statement is relevant;

(B) The statement is more probative on the point for which it is offered than any other evidence [which] that the proponent can procure through reasonable efforts; and

(C) The general purposes of the Oregon Evidence Code and the interests of justice will best be served by admission of the statement into evidence.

(b) A statement may not be admitted under this subsection unless the proponent of it makes known to the adverse party the intention to offer the statement and the particulars of it, including the name and address of the declarant, sufficiently in advance of the trial or hearing, or as soon as practicable after it becomes apparent that such statement is probative of the issues at hand, to provide the adverse party with a fair opportunity to prepare to meet it.

NOTE: Corrects internal reference in (24); corrects grammar in (26)(a)(B).

SECTION 14. ORS 59.185 is amended to read:

59.185. (1) Every license of a broker-dealer or state investment adviser expires one year after the date of issuance unless the Director of the Department of Consumer and Business Services establishes a different expiration date for purposes of coordination with any national registration or licensing system.

(2) Every license of a mortgage banker's or mortgage broker's salesperson expires one year after the date of issuance unless the director establishes a different expiration date for the purposes of coordination with any national registration or licensing system.

(3)(a) Every license of an issuer's or owner's salesperson expires when the securities are no longer authorized for sale or one year after the date of issuance, whichever is sooner.

(b) Unless the director establishes a different expiration date for the purposes of coordination with any national registration or licensing system, every license of a salesperson licensed to a broker-dealer and every license of an investment adviser representative licensed to a state investment adviser expires on the same date that the license of the broker-dealer or state investment adviser expires.

(c) Unless the director establishes a different expiration date for the purposes of coordination with any national registration or licensing system, every license of an investment adviser representative licensed on behalf of a federal covered investment adviser expires the earlier of one year after the date of issuance or the date the notice of the federal covered investment adviser expires.

(4) The director by rule shall establish procedures for renewing licenses of broker-dealers, state investment advisers, investment adviser representatives and salespersons, and for the annual renewal of licenses or notice filings made on behalf of federal covered investment advisers.

(5) If there is a change in the partners, directors, officers, persons occupying similar positions or performing similar functions, or persons directly or indirectly controlling a broker-dealer or state investment adviser, written notification of such change shall promptly be filed with the director. No fee shall be required for such notification. An examination may be required of any such individual who is newly connected with or interested in the licensee.

NOTE: Corrects terminology in (1).

SECTION 15. ORS 65.855 to 65.875 are added to and made a part of ORS chapter 65.

NOTE: Adds statutes to appropriate series.

SECTION 16. ORS 65.951 is amended to read:

65.951. [ORS 65.001 to 65.787 and 65.951 to 65.967] This chapter shall be known and may be cited as the Oregon Nonprofit Corporation Act.

NOTE: Corrects series reference.

SECTION 17. ORS 79.1050 is amended to read:

79.1050. (1) In ORS 79.1010 to 79.5070 and 79.8010 unless the context otherwise requires:

(a) "Account debtor" means the person who is obligated on an account, chattel paper or general intangible.

(b) "Chattel paper" means a writing or writings [which] that evidence both a monetary obligation and a security interest in or a lease of specific goods. When a transaction is evidenced both by such a security agreement or a lease and by an instrument or a series of instruments, the group of writings taken together constitutes chattel paper.

(c) "Collateral" means the property subject to a security interest, and includes accounts and chattel paper [which] that have been sold.

(d) "Debtor" means the person who owes payment or other performance of the obligation secured, whether or not the person owns or has rights in the collateral, and includes the seller of accounts or chattel paper. Where the debtor and the owner of the collateral are not the same person, the term "debtor" means the owner of the collateral in any provision of ORS 79.1010 to 79.5070 and 79.8010 dealing with the collateral, the obligor in any provision dealing with the obligation, and may include both where the context so requires.

(e) "Deposit account" means a demand, time, savings, passbook or like account maintained with a bank, savings and loan association, credit union or like organization, other than an account evidenced by a certificate of deposit.

(f) "Document" means document of title as defined in ORS 71.2010, and a receipt of the kind described in ORS 77.2010 (2).

(g) "Encumbrance" includes real estate mortgages and other liens on real estate and all other rights in real estate that are not ownership interests.

(h) "Goods" includes all things [which] that are movable at the time the security interest attaches or [which] that are fixtures, but does not include money, documents, instruments, investment property, commodity contracts, accounts, chattel paper, general intangibles, or minerals or the like (including oil and gas) before extraction. "Goods" also includes the unborn young of animals and growing crops; and standing timber [which] that is to be cut and removed under a conveyance or contract of sale.

(i) "Instrument" means a negotiable instrument as defined in ORS 73.0104 or any other writing [which] that evidences a right to the payment of money and is not itself a security agreement or lease and is of a type [which] that is in ordinary course of business transferred by delivery with any necessary indorsement or assignment. The term does not include investment property.

(j) "Mortgage" means a consensual interest created by a real estate mortgage, a trust deed on real estate, or the like.

(k) An advance is made "pursuant to commitment" if the secured party has bound the secured party to make it, whether or not a subsequent event of default or other event not within the control of the secured party has relieved or may relieve the secured party from the obligation.

(L) "Security agreement" means an agreement [which] that creates or provides for a security interest.

(m) "Secured party" means a lender, seller or other person in whose favor there is a security interest, including a person to whom accounts or chattel paper have been sold. When the holders of obligations issued under an indenture of trust, equipment trust agreement or the like are represented by a trustee or other person, the representative is the secured party.

(n) "Transmitting utility" means any person primarily engaged in the railroad, street railway or trolley bus business, the electric or electronics communications transmission business, the transmission of goods by pipeline, or the transmission or the production and transmission of electricity, steam, gas or water, or the provision of sewer service.

(2) Other definitions applying to ORS 79.1010 to 79.5070 and 79.8010 and the sections in which they appear are:

(a) "Account," as defined in ORS 79.1060.

(b) "Attach," as defined in ORS 79.2030.

(d) "Commodity customer," as defined in ORS 79.1150.

(e) "Commodity intermediary," as defined in ORS 79.1150.

(f) "Construction mortgage," as defined in ORS 79.3130 (1).

(g) "Consumer goods," as defined in ORS 79.1090 (1).

(h) "Control," as defined in ORS 79.1150.

(i) "Equipment," as defined in ORS 79.1090 (2).

(j) "Farm products," as defined in ORS 79.1090 (3).

(k) "Fixture," as defined in ORS 79.3130.

(L) "Fixture filing," as defined in ORS 79.3130.

(m) "General intangibles," as defined in ORS 79.1060.

(n) "Inventory," as defined in ORS 79.1090 (4).

(o) "Investment property," as defined in ORS 79.1150.

(p) "Lien creditor," as defined in ORS 79.3010.

(q) "Proceeds," as defined in ORS 79.3060 (1).

(r) "Purchase money security interest," as defined in ORS 79.1070.

(s) "United States," as defined in ORS 79.1030 (3)(c).

(3) The following definitions in other chapters apply to ORS 79.1010 to 79.5070 and 79.8010:

(a) "Broker," as defined in ORS 78.1020.

(b) "Certificated security," as defined in ORS 78.1020.

(d) "Clearing corporation," as defined in ORS 78.1020.

(e) "Contract for sale," as defined in ORS 72.1060.

(f) "Control," as defined in ORS 78.1060.

(g) "Delivery," as defined in ORS 78.3010.

(h) "Entitlement holder," as defined in ORS 78.1020.

(i) "Financial asset," as defined in ORS 78.1020.

(j) "Holder in due course," as defined in ORS 73.0302.

(k) "Letter of credit," as defined in ORS 75.1020.

(L) "Note," as defined in ORS 73.0104.

(m) "Proceeds of a letter of credit," as defined in ORS 75.1140.

(n) "Sale," as defined in ORS 72.1060.

(o) "Securities intermediary," as defined in ORS 78.1020.

(p) "Security," as defined in ORS 78.1020.

(q) "Security certificate," as defined in ORS 78.1020.

(r) "Security entitlement," as defined in ORS 78.1020.

(s) "Uncertificated security," as defined in ORS 78.1020.

(4) In addition, ORS chapter 71 contains general definitions and principles of construction and interpretation applicable throughout ORS 79.1010 to 79.5070 and 79.8010.

NOTE: Corrects grammar in (1) and syntax in (3)(m).

SECTION 18. ORS 100.450 is amended to read:

100.450. (1) Whenever an association of unit owners levies any assessment against a unit, the association of unit owners, upon complying with subsection (2) of this section, shall have a lien upon the individual unit and the undivided interest in the common elements appertaining to such unit for any unpaid assessments and interest as provided in subsection (2)(b) of this section. The lien shall be prior to a homestead exemption and all other liens or encumbrances upon the unit except:

(a) Tax and assessment liens; and

(b) A prior mortgage or trust deed of record unless:

(A) The condominium consists of [less] fewer than seven units, all of which are to be used for nonresidential purposes;

(B) The declaration provides that the lien of any mortgage or trust deed of record affecting the property shall be subordinate to the lien of the association provided under subsection (1) of this section; and

(C) The holder of any mortgage or trust deed of record affecting the property when the declaration is recorded executes a separate subordination of the holder's interest to the declaration which is attached as an exhibit and which states that the holder understands that the declaration subordinates the holder's lien to the assessment lien of the association provided under subsection (1) of this section.

(2)(a) An association of unit owners claiming the benefits of subsection (1) of this section shall record in the county in which the unit or some part thereof is located a claim containing a true statement of the amount due for the unpaid assessments after deducting all just credits and offsets; the name of the owner of the unit, or reputed owner, if known; the name of the condominium and the designation of the unit, sufficient for identification.

(b) Where a claim has been filed and recorded pursuant to this section and the owner of the unit subject to the claim thereafter fails to pay any assessment chargeable to such unit, then so long as the original or any subsequent unpaid assessment remains unpaid such claim shall automatically accumulate the subsequent unpaid assessments and interest thereon without the necessity of further filings under this section.

(3) The claim shall be verified by the oath of some person having knowledge of the facts and shall be filed with and recorded by the recording officer in the book kept for the purpose of recording liens filed under ORS 87.035. The record shall be indexed as deeds and other conveyances are required by law to be indexed.

(4) The proceedings to foreclose liens created by this section shall conform as nearly as possible to the proceedings to foreclose liens created by ORS 87.010, except that notwithstanding ORS 87.055, a lien may be continued in force for a period of time not to exceed six years from the date the claim is filed under subsection (3) of this section. For the purpose of determining the date the claim is filed in those cases where subsequent unpaid assessments have accumulated under the claim as provided in subsection (2)(b) of this section, the claim regarding each unpaid assessment shall be deemed to have been filed at the time such unpaid assessment became due. The lien may be enforced by the board of directors acting on behalf of the association of unit owners. An action to recover a money judgment for unpaid assessments may be maintained without foreclosing or waiving the lien securing the claim for unpaid assessments. No action to foreclose a lien under this section or recover a money judgment for unpaid assessments may be maintained unless the Condominium Information Report and the Annual Report described in ORS 100.250 are designated current as provided in ORS 100.255.

(5) Unless the declaration or bylaws provides otherwise, fees, late charges, fines and interest imposed pursuant to ORS 100.405 (4)(i), (j), (k) and (L) are enforceable as assessments under this section.

(6) With respect to condominium units also constituting timeshare property as defined by ORS 94.803, liens created by this section shall be assessed to the timeshare owners in the timeshare property according to the method for determining each owner's liability for common expenses under the timeshare instrument and shall be enforced individually against each timeshare owner in the condominium unit.

(7) Notwithstanding the priority established for a lien for unpaid assessments and interest under subsection (1) of this section, the lien shall also be prior to the lien of any prior mortgage or trust deed of record for the unit and the undivided interest in the common elements, if:

(a) The association of unit owners for the condominium in which the unit is located has given the lender under the mortgage or trust deed 90 days prior written notice that the owner of the unit is in default in payment of an assessment. The notice shall contain:

(A) Name of borrower;

(B) Recording date of trust deed or mortgage;

(D) Name of condominium, unit owner and unit identification; and

(E) Amount of unpaid assessment.

(b) The notice under paragraph (a) of this subsection shall set forth the following in 10-point type:

___________________________________________________________________

NOTICE: The lien of the association may become prior to that of the lender pursuant to ORS 100.450.

___________________________________________________________________

(c) The lender has not initiated judicial action to foreclose the mortgage or requested issuance of a trustee's notice of sale under the trust deed or accepted a deed in lieu of foreclosure in the circumstances described in ORS 100.465 prior to the expiration of 90 days following the notice by the unit owners' association.

(d) The unit owners' association has provided the lender, upon request, with copies of any liens filed on the unit, a statement of the assessments and interest remaining unpaid on the unit and other documents which the lender may reasonably request.

(e) The borrower is in default under the terms of the mortgage or trust deed as to principal and interest.

(f) A copy of the notice described in paragraph (a) of this subsection has been verified, filed and recorded in the manner prescribed in subsection (3) of this section.

NOTE: Corrects grammar in (1)(b)(A).

SECTION 19. ORS 107.097 is amended to read:

107.097. (1) Except as otherwise provided in subsection (3) of this section, a court may not enter ex parte a temporary order under ORS 107.095, 109.103 or 109.119 providing for the custody of, or parenting time with, a child.

(2)(a) A party may apply to a court for a temporary protective order of restraint by filing with the court an affidavit conforming to the requirements of ORS 109.790.

(b) Upon receipt of an application under this subsection, the court may issue a temporary protective order of restraint restraining and enjoining each party from:

(A) Changing the child's usual place of residence;

(B) Interfering with the present placement and daily schedule of the child;

(D) Interfering with the other party's usual contact and parenting time with the child;

(E) Leaving the state with the child without the written permission of the other party or the permission of the court; or

(F) In any manner disturbing the current schedule and daily routine of the child until custody or parenting time has been determined.

(c) A copy of the order and the supporting affidavit must be served on the other party in the manner of service of a summons under ORCP 7. The order must include the following statement:

___________________________________________________________________

Notice: You may request a hearing on this order as long as it remains in effect by filing with the court a hearing request in the form described in ORS 107.097 (5).

___________________________________________________________________

(3)(a) A court may enter ex parte a temporary order providing for the custody of, or parenting time with, a child if:

(A) The party requesting an order is present in court and presents an affidavit alleging that the child is in immediate danger; and

(B) The court finds, based on the facts presented in the party's testimony and affidavit and in the testimony of the other party, if the other party is present, that the child is in immediate danger.

(b) The party requesting an order under this subsection shall provide the court with telephone numbers where the party can be reached at any time during the day and a contact address.

(c) A copy of the order and the supporting affidavit must be served on the other party in the manner of service of a summons under ORCP 7. The order must include the following statement:

___________________________________________________________________

Notice: You may request a hearing on this order as long as it remains in effect by filing with the court a hearing request in the form described in ORS 107.097 (5).

___________________________________________________________________

(4)(a) A party against whom an order is entered under subsection (2) or (3) of this section may request a hearing by filing with the court a hearing request form described in subsection (5) of this section at any time while the order is in effect.

(b) The court shall make reasonable efforts to hold a hearing within 14 days and shall hold a hearing no later than 21 days after receipt of the request for the hearing. The court shall notify each party of the time, date and place of the hearing.

(c) An order issued under subsection (2) or (3) of this section remains in effect through the date of the hearing. If the party against whom the order was entered fails to appear at the hearing without good cause, the court shall continue the order in effect. If the party who obtained the order fails to appear at the hearing without good cause, the court shall vacate the order.

(d) The issue at a hearing to contest:

(A) A temporary protective order of restraint is limited to a determination of the status quo at the time the order was issued. If the child's usual place of residence cannot be determined, the court may make any further order the court finds appropriate in the best interests of the child.

(B) A temporary order for the custody of, or parenting time with, a child is limited to whether the child was in immediate danger at the time the order was issued.

(5) The hearing request form must be in substantially the following form:

___________________________________________________________________

IN THE CIRCUIT COURT OF

THE STATE OF OREGON

FOR THE COUNTY OF _______

_____________, )

PETITIONER, ) NO.____

)

) REQUEST FOR

and ) HEARING

)

_____________, )

Respondent. )

I request a hearing.

___ I object to the Protective Order of Restraint

because I disagree with the representation of the status quo in the following particulars:

_______________________________

_______________________________.

___ I object to the Temporary Custody and Parenting Time Order on the ground that the child was not in immediate danger at the time the order was issued.

____________________

Signature

DATE:____________________

ADDRESS:____________________

____________________

TELEPHONE:____________________

___________________________________________________________________

(6) As used in this section:

(a) "Child's usual place of residence" has the meaning given that term in ORS 107.138.

(b) "Party's usual contact and [visitation] parenting time," "present placement and daily schedule of the child" and "current schedule and daily routine of the child" have the meanings given "parent's usual contact and [visitation] parenting time," "present placement and daily schedule of the child" and "current schedule and daily routine of the child" in ORS 107.138.

NOTE: Corrects terminology in (6)(b).

SECTION 20. ORS 107.437 is amended to read:

107.437. (1) A person entitled to physical custody of a child may make an ex parte application for an order of assistance to a court of any county:

(a) In which a child is located if the person is entitled to the physical custody of the child under a valid and current order issued in this state; or

(b) In which a valid and current foreign custody order has been filed with a petition as provided in subsection (3) of this section.

(2) The application must include a certified copy of the custody order. The order of assistance may direct a law enforcement agency having jurisdiction where the child is located to use any reasonable means and force to deliver the child as directed by the court. The court may issue an order of assistance upon the sworn affidavit of the applicant and a finding of the court that:

(a) The applicant is entitled to physical custody of the child under a valid and current custody order; and

(b) The child is being held by another person in substantial violation of the custody order.

(3) When the application for an order of assistance is made to a court in which the custody order has been entered or registered, the applicant shall make the application in the form of a motion. In all other cases, the applicant shall make the application in the form of a petition. The court may not charge a filing fee for a motion or petition filed under this section.

(4) A court may not issue an order of assistance for the purpose of enforcing parenting time or visitation rights.

(5) Except for intentional torts committed outside the scope of the peace officer's duties, a peace officer is not civilly or criminally liable for any action taken in recovering the custody of a child pursuant to an order issued under this section.

NOTE: Corrects terminology in (4).

SECTION 21. ORS 107.510 is amended to read:

107.510. As used in ORS 21.112 and 107.510 to 107.610:

(1) "Conciliation jurisdiction" means domestic relations conciliation jurisdiction and authority [referred to under ORS 21.112 and] exercised under ORS 107.510 to 107.610 by a circuit court in any controversy existing between spouses which may, unless a reconciliation or a settlement of the controversy is effected, result in the dissolution or annulment of the marriage or in disruption of the household.

(2) "Conciliation services" means domestic relations counseling and related services obtained by a circuit court exercising conciliation jurisdiction and used by the court in exercising that jurisdiction.

(3) "Domestic relations suit" means suit for dissolution of the marriage contract, annulment of the marriage or separation.

(4) "Separation" means separation from bed and board and separate maintenance.

NOTE: Deletes obsolete ORS reference in (1).

SECTION 22. ORS 107.520 is amended to read:

107.520. The circuit court for any county or the circuit courts of more than one county comprising a judicial district after making a determination that the social conditions of the county or district make it desirable to establish conciliation services for the full and proper consideration of domestic relations suits filed in such county or district may exercise conciliation jurisdiction and obtain, use and provide conciliation services [referred to in ORS 21.112 and exercised] under ORS 107.510 to 107.610. After conciliation jurisdiction has been established the circuit court or courts of such county or district may at any time determine that the need for such service does not warrant its continuance and terminate the same.

NOTE: Deletes obsolete ORS reference.

SECTION 23. ORS 107.610 is amended to read:

107.610. Persons performing conciliation services [referred to in ORS 21.112 and exercised] under ORS 107.510 to 107.610 shall have minimum educational and experience qualifications of a master's degree in the behavioral sciences; or a bachelor's degree and one year's graduate training, both in the behavioral sciences plus two years' paid case work or clinical experience; or a bachelor's degree in the behavioral sciences plus four years' paid case work or clinical experience.

NOTE: Deletes obsolete ORS reference.

SECTION 24. ORS 107.765 is amended to read:

107.765. (1) In a domestic relations suit [in a circuit court providing mediation under ORS 107.755 to 107.785], where it appears on the face of one or more pleadings, appearances, petitions or motions, including any form of application for the setting aside, alteration or modification of an order or decree, that custody, parenting time or visitation of a child [are] is contested, the court [shall] may, when appropriate, refer the matter for mediation of the contested issues prior to or concurrent with the setting of the matter for hearing. The purpose of the mediation [shall be] is to assist the parties in reaching a workable settlement of the contested issues instead of litigating those issues before the court. Unless the court provides for the mediation of financial issues under ORS 107.755 (4), the mediator shall not consider issues of property division or spousal or child support, in connection with the mediation of a dispute concerning child custody, parenting time or visitation, or otherwise, without the written approval of both parties or their counsel.

(2) The mediator shall report to the court and to counsel for the parties the outcome of the mediation at the conclusion of the mediation proceeding. The mediator shall report in writing to the court and to counsel for the parties any agreement reached by the parties as a result of the mediation, and the agreement shall be incorporated in a proposed order or decree provision prepared for the court. If the parties do not reach an agreement, the mediator shall report only that fact to the court and to counsel for the parties, but shall not make a recommendation to the court [as to child custody, parenting time or visitation] without the written consent of the parties or their counsel.

NOTE: Re-creates amendments to statute by section 2, chapter 475, Oregon Laws 1997, that were negated due to conflict with other 1997 Act.

SECTION 25. ORS 109.175 is amended to read:

109.175. If paternity of a child born out of wedlock is established pursuant to a petition filed under ORS 109.125 or an order or judgment entered pursuant to ORS 109.124 to 109.230 or ORS 416.400 to 416.470, or if paternity is established by the filing of a [joint declaration] voluntary acknowledgment of paternity as provided by ORS 109.070 [(5)] (1)(e), the parent with physical custody at the time of filing of the petition or the notice under ORS 416.415, or the parent with physical custody at the time of the filing of the [joint declaration] voluntary acknowledgment of paternity, has sole legal custody until a court specifically orders otherwise. The first time the court determines who should have legal custody, neither parent shall have the burden of proving a change of circumstances. The court shall give primary consideration to the best interests and welfare of the child and shall consider all the standards set out in ORS 107.137.

NOTE: Corrects terminology and ORS reference.

SECTION 26. ORS 116.113 is amended to read:

116.113. (1) If no objections to the final account and petition for distribution are filed, or if objections are filed, upon the hearing, the court shall give its decree of final distribution. In its decree the court shall designate the persons in whom title to the estate available for distribution is vested and the portion of the estate or property to which each is entitled under the will, by agreement approved by the court or pursuant to intestate succession. The decree shall also contain any findings of the court in respect to:

(a) Advancements.

(b) Election against will by the surviving spouse.

(d) Lapse.

(e) Adjudicated controversies.

(f) Partial distribution, which shall be confirmed or modified.

(g) Retainer.

(h) Claims for which a special fund is set aside, and the amount set aside.

(i) Contingent claims that have been allowed and are still unpaid.

(j) Approval of the final account in whole or in part.

(2) The personal representative is not entitled to approval of the final account until Oregon income and personal property taxes, if any, have been paid and appropriate receipts and clearances therefor have been filed, or until payment of those taxes has been secured by bond, deposit or otherwise, provided, however, that no such receipts or clearances shall be required with regard to damages accepted upon settlement of a claim or recovered on a judgment in an action for wrongful death as provided in ORS 30.010 to 30.100 [and 30.698].

(3) If, by agreement approved by the court, property is distributed to persons in whom title is vested by the decree of final distribution otherwise than as provided by the will or pursuant to intestate succession, the decree operates as a transfer of the property between those persons.

(4) The decree of final distribution is a conclusive determination of the persons who are the successors in interest to the estate and of the extent and character of their interest therein, subject only to the right of appeal and the power of the court to vacate the decree.

NOTE: Deletes incorrect ORS reference in (2).

SECTION 27. ORS 135.905 is amended to read:

135.905. (1) Whenever a defendant accused of committing a crime participates in a diversion agreement under ORS 135.881 to 135.901 or [813.210 to 813.230] under ORS 813.210, 813.215, 813.220 and 813.230, the defendant, as a condition of the diversion, shall pay the unitary assessment for which the defendant would have been liable under ORS 137.290 if the defendant had been convicted. The district attorney, or the city attorney if the case is prosecuted by the city attorney, shall include in the diversion agreement a provision setting forth the defendant's obligation. If the diversion is terminated and criminal proceedings are resumed against defendant, any payment made by the defendant under this subsection shall be refunded upon subsequent acquittal of the defendant or dismissal of the case.

(2) Assessments under this section shall be paid within 90 days of imposition, unless the court allows payment at a later time. The assessments shall be paid to the clerk of the court, who shall account for and distribute the moneys as provided in ORS 137.293 and 137.295.

NOTE: Inserts appropriate ORS string citation.

SECTION 28. ORS 144.101 is amended to read:

144.101. (1) The State Board of Parole and Post-Prison Supervision has jurisdiction over imposition of conditions of post-prison supervision and sanctioning for violations of those conditions for a person convicted of a felony if:

(a) The term of imprisonment imposed on the person is more than 12 months;

(b) The felony is classified as crime category 8, 9, 10 or 11 of the sentencing guidelines grid of the Oregon Criminal Justice Commission;

(d) The person is sentenced as a dangerous offender under ORS 161.725 and 161.737;

(e) The person is subject to a term of post-prison supervision under ORS 144.103;

(f) The person is committed to the custody of the Department of Corrections under ORS 137.124;

(g) The responsibility for correctional services for the person has reverted to the department under ORS 423.483 [or 423.545]; or

(h) No local supervisory authority is responsible for correctional services for the person under the laws of this state.

(2) Except as provided in subsection (1) of this section, a local supervisory authority has jurisdiction over imposition of conditions of post-prison supervision and sanctions for violations of those conditions for a person sentenced to a term of imprisonment of 12 months or less.

(3) If a local supervisory authority imposes conditions of post-prison supervision or sanctions for violations of those conditions, the person may request the board to review the conditions or sanctions. The board shall review the request and may, at its discretion, review the conditions and sanctions, under rules adopted by the board.

(4) Nothing in this section affects the jurisdiction of the board over imposition of conditions of parole and sanctioning for violations of those conditions.

NOTE: Deletes reference to repealed statute in (1)(g).

SECTION 29. ORS 153.130 is amended to read:

153.130. (1) Except as otherwise specifically provided for an infraction, a uniform citation conforming to the requirements of this section shall be used for all infraction offenses subject to ORS 8.665, 153.110 to 153.310 and 153.990. This section does not prohibit the use of a uniform citation:

(a) For offenses other than infraction offenses subject to ORS 8.665, 153.110 to 153.310 and 153.990.

(b) Containing other language in addition to that specified in this section.

(2) The citation shall consist of at least four parts. Additional parts may be inserted by law enforcement agencies for administrative use. The required parts are:

(a) The complaint.

(b) The abstract of record.

(d) The summons.

(3) Each of the parts shall contain the information or blanks required by rules of the Supreme Court under ORS 1.525.

(4) The complaint shall contain a form of certificate in which the [complaint] complainant shall certify, under the penalties provided in ORS 153.990, that the complainant has reasonable grounds to believe, and does believe, that the person cited committed the offense contrary to law. A certificate conforming to this [section] subsection shall be deemed equivalent of a sworn complaint.

NOTE: Corrects word choice and internal reference in (4).

SECTION 30. ORS 153.800 is amended to read:

153.800. (1) Any court of this state may establish a Violations Bureau and designate the clerk or deputy clerk of the court or any other appropriate person to act as a violations clerk for the Violations Bureau. A Violations Bureau shall be established by each circuit court unless the Chief Justice of the Supreme Court issues a written exemption to the presiding judge [appointed under ORS 1.169] for the court. The violations clerk shall serve under the direction and control of the court appointing the clerk.

(2) A violations clerk may exercise authority over any offense, including but not limited to violations described in ORS 161.565 and infractions, for which the only penalty that may be imposed is a fine or forfeiture. In addition, offenses that may be made subject to the authority of the violations clerk include the following:

(a) Violations of ordinances or regulations adopted by a political subdivision of the state if the only penalty that may be imposed for violation of the ordinance or regulation is a fine or forfeiture.

(b) Misdemeanor charges that a district attorney elects to treat as a violation under the provisions of ORS 161.565.

(3) Subject to subsection (2) of this section, a court establishing a Violations Bureau shall by order specify the offenses that are subject to the authority of the violations clerk.

(4) Except as provided in subsection (7) of this section, the violations clerk shall accept:

(a) Written appearance, waiver of trial, plea of guilty and payment of fine, costs and assessments for offenses that are subject to the authority of the violations clerk; or

(b) Payment of bail for offenses that are subject to the authority of the violations clerk.

(5) The court shall establish schedules, within the limits prescribed by law, of the amounts of penalties to be imposed for first, second and subsequent violations, designating each offense specifically or by class. The order of the court establishing the schedules shall be prominently posted in the place where penalties established under the schedule are paid. All amounts must be paid to, receipted by and accounted for by the violations clerk in the same manner as other payments on money judgments are received by the court.

(6) Any person charged with an offense within the authority of the violations clerk may:

(a) Upon signing an appearance, plea of guilty and waiver of trial, pay the clerk the penalty established for the offense charged, including any costs and assessments authorized by law.

(b) Pay the clerk the bail established for the offense. Payment of bail under this paragraph constitutes consent to forfeiture of bail and disposition of the offense by the clerk as provided by the rules of the court. Payment of bail under this paragraph is not consent to forfeiture of bail if the bail is accompanied by a plea of not guilty or a request for hearing.

(7) A person who has been found guilty of, or who has signed a plea of guilty to, one or more previous offenses in the preceding 12 months within the jurisdiction of the court shall not be permitted to appear before the violations clerk unless the court, by general order applying to certain specified offenses, permits such appearance.

NOTE: Deletes reference to repealed statute in (1).

SECTION 31. ORS 163.105 is amended to read:

163.105. Notwithstanding the provisions of ORS chapter 144[, ORS 421.165] and ORS 421.450 to 421.490:

(1)(a) Except as otherwise provided in ORS 137.700, when a defendant is convicted of aggravated murder as defined by ORS 163.095, the defendant shall be sentenced, pursuant to ORS 163.150, to death, life imprisonment without the possibility of release or parole or life imprisonment.

(b) A person sentenced to life imprisonment without the possibility of release or parole under this section shall not have that sentence suspended, deferred or commuted by any judicial officer, and the State Board of Parole and Post-Prison Supervision may not parole the prisoner nor reduce the period of confinement in any manner whatsoever. The Department of Corrections or any executive official may not permit the prisoner to participate in any sort of release or furlough program.

(c) If sentenced to life imprisonment, the court shall order that the defendant shall be confined for a minimum of 30 years without possibility of parole, release on work release or any form of temporary leave or employment at a forest or work camp.

(2) At any time after 25 years from the date of imposition of a minimum period of confinement pursuant to subsection (1)(c) of this section, the State Board of Parole and Post-Prison Supervision, upon the petition of a prisoner so confined, shall hold a hearing to determine if the prisoner is likely to be rehabilitated within a reasonable period of time. The sole issue shall be whether or not the prisoner is likely to be rehabilitated within a reasonable period of time. The proceeding shall be conducted in the manner prescribed for a contested case hearing under ORS 183.310 to 183.550 except that:

(a) The prisoner shall have the burden of proving by a preponderance of the evidence the likelihood of rehabilitation within a reasonable period of time; and

(b) The prisoner shall have the right, if the prisoner is without sufficient funds to employ an attorney, to be represented by legal counsel, appointed by the board, at board expense.

(3) If, upon hearing all of the evidence, the board, upon a unanimous vote of all of its members, finds that the prisoner is capable of rehabilitation and that the terms of the prisoner's confinement should be changed to life imprisonment with the possibility of parole, or work release, it shall enter an order to that effect and the order shall convert the terms of the prisoner's confinement to life imprisonment with the possibility of parole or work release. Otherwise the board shall deny the relief sought in the petition.

(4) Not less than two years after the denial of the relief sought in a petition under this section, the prisoner may petition again for a change in the terms of confinement. Further petitions for a change may be filed at intervals of not less than two years thereafter.

NOTE: Deletes reference to repealed statute in first sentence.

SECTION 32. ORS 167.162 is amended to read:

167.162. (1) A gambling device is a public nuisance.

Any peace officer shall summarily seize any such device that the peace officer finds and deliver it to the custody of the sheriff, who shall hold it subject to the order of the court having jurisdiction.

(2) Whenever it appears to the court that the gambling device has been possessed in violation of ORS 167.147, the court shall adjudge forfeiture thereof and shall order the sheriff to destroy the device and to deliver any coins taken therefrom to the county treasurer, who shall deposit them to the general fund of the county. However, when the defense provided by ORS 167.147 (3) is raised by the defendant, the gambling device or slot machine shall not be forfeited or destroyed until after a final judicial determination that the defense is not applicable. If the defense is applicable, the gambling device or slot machine shall be returned to its owner.

(3) The seizure of the gambling device or operating part thereof constitutes sufficient notice to the owner or person in possession thereof. The sheriff shall make return to the court showing that the sheriff has complied with the order.

(4) Whenever, in any proceeding in court for the forfeiture of any gambling device except a slot machine seized for a violation of ORS 167.147, and such forfeiture is decreed, the court shall have exclusive jurisdiction to remit or mitigate the forfeiture.

(5) In any such proceeding the court shall not allow the claim of any claimant for remission or mitigation unless and until the claimant proves that the claimant:

(a) [that the claimant] Has an interest in [such] the gambling device, as owner or otherwise, which the claimant acquired in good faith[,].

(b) [that the claimant had] At no time had any knowledge or reason to believe that it was being or would be used in violation of law relating to gambling.

(6) In any proceeding in court for the forfeiture of any gambling device except a slot machine seized for a violation of law relating to gambling, the court may in its discretion order delivery thereof to any claimant who shall establish the right to the immediate possession thereof, and shall execute, with one or more sureties, or by a surety company, approved by the court, and deliver to the court, a bond in such sum as the court shall determine, running to the State of Oregon, and conditioned to return such gambling device at the time of trial, and conditioned further that, if the gambling device be not returned at the time of trial, the bond may in the discretion of the court stand in lieu of and be forfeited in the same manner as such gambling device.

NOTE: Restructures (5) for conformance to legislative form and style; corrects syntax.

SECTION 33. ORS 167.164 is amended to read:

167.164. (1) On and after December 1, 1991, a person commits the crime of possession of a gray machine if the person manufactures, sells, leases, transports, places, possesses or services a gray machine or conducts or negotiates a transaction affecting or designed to affect the ownership, custody or use of a gray machine.

(2) Possession of a gray machine is a Class C felony.

(3) Violation of, solicitation to violate, attempt to violate or conspiracy to violate subsection (1) of this section constitutes prohibited conduct for purposes of ORS chapter 475A [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135], and shall give rise to civil in rem forfeiture as provided in ORS chapter 475A [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135]. A judgment providing for forfeiture may direct that the machine be destroyed.

(4) It is a defense to a charge of possession of a gray machine if the machine that caused the charge to be brought was manufactured prior to 1958 and was not operated for purposes of unlawful gambling.

NOTE: Deletes superfluous ORS references in (3).

SECTION 34. ORS 171.580 is amended to read:

171.580. (1) There is created a Joint Legislative Audit Committee consisting of the chair of the House Ways and Means Committee, the chair of the Senate Ways and Means Committee, three members of the House of Representatives appointed by the Speaker[,] and three members of the Senate appointed by the President.

(2) The committee has a continuing existence and may meet, act and conduct its business during sessions of the Legislative Assembly or any recess thereof and in the interim between sessions.

(3) The term of a member shall expire upon the convening of the Legislative Assembly in regular session next following the commencement of the member's term. When a vacancy occurs in the membership of the committee in the interim between sessions, until such vacancy is filled, the membership of the committee shall be considered not to include the vacant position for the purpose of determining whether a quorum is present and a quorum is a majority of the remaining members.

(4) Members of the committee shall receive an amount equal to that authorized under ORS 171.072 from funds appropriated to the Legislative Assembly for each day spent in the performance of their duties as members of the committee or any subcommittee thereof in lieu of reimbursement for in-state travel expenses. However, when engaged in out-of-state travel, members shall be entitled to receive their actual and necessary expenses therefor in lieu of the amount authorized by this subsection. Payment shall be made from funds appropriated to the Legislative Assembly.

(5) Action of the committee shall be taken only upon the affirmative vote of the majority of members of the committee.

(6) The Legislative Fiscal Office shall furnish to the committee such services of personnel and such other facilities as are necessary to enable the committee to carry out its functions as directed by law, with such assistance as the Division of Audits and Oregon Department of Administrative Services can provide.

NOTE: Inserts appropriate conjunction in (1).

SECTION 35. ORS 179.380 is amended to read:

179.380. (1) The Department of Corrections and the Mental Health and Developmental Disability Services Division shall authorize the employment of all necessary physicians, [matrons,] attendants, nurses, engineers, [watchmen,] messengers, clerks, guards, cooks, waiters and other officers and employees not specifically authorized by law and necessary to the successful maintenance of their respective institutions. The amounts expended for the services of such officers and employees shall not exceed the amounts provided therefor in the biennial appropriations for the institution.

(2) The department and division shall designate in their respective rules which employees shall be officers, and shall require all officers to take and subscribe to an oath of office and, if the circumstances require it, to furnish bonds.

NOTE: Deletes gender-specific language.

SECTION 36. ORS 179.479 is amended to read:

179.479. (1) The superintendent or other chief executive officer of an institution described in ORS 179.321 may, when authorized by regulation or direction of the Department of Corrections or Mental Health and Developmental Disability Services Division [having jurisdiction over the institution], convey an inmate to a physician, clinic or hospital, including the Oregon Health Sciences University, for medical, surgical or dental treatment when such treatment cannot satisfactorily be provided at the institution. An inmate conveyed for treatment pursuant to this section shall be kept in the custody of the institution from which the inmate is conveyed.

(2) The department [of Corrections] and division, respectively, shall prescribe rules and regulations governing conveyances authorized by this section.

NOTE: Sets forth official title; eliminates unnecessary provision; corrects punctuation in (2).

SECTION 37. ORS 181.536 is amended to read:

181.536. (1) The Department of Human Resources shall by rule set forth a timetable that does not exceed 12 months in length for providers to obtain criminal records checks for subject individuals already employed by the provider if the individuals have not undergone a criminal records check process comparable to the one set forth in ORS 181.537[, as amended by section 1, chapter 753, Oregon Laws 1997].

(2) The Department of Human Resources shall seek federal or other matching funds that will reduce the cost to providers of complying with the requirements of ORS 181.537.

NOTE: Deletes unnecessary session law reference in (1).

SECTION 38. ORS 181.642, 181.655, 181.667, 181.690, 181.700, 181.705, 181.711 and 181.712 are added to and made a part of ORS 181.610 to 181.670.

NOTE: Adds statutes to appropriate series.

SECTION 39. ORS 181.700 is amended to read:

181.700. It is the intent of the [legislature] Legislative Assembly in creating [this agency] the Board on Public Safety Standards and Training to provide for the coordination of training programs for police officers, [and] certified reserve officers, [to provide for the coordination of training programs for] corrections officers[, to provide for the coordination of training programs for] and parole and probation officers and to set standards. [The moneys provided in chapter 721, Oregon Laws 1961, are to be used for this purpose primarily and are not intended to replace other existing contributions to the functions outlined in ORS 181.610 to 181.700.]

NOTE: Sets forth appropriate official titles; corrects syntax; deletes obsolete provisions.

SECTION 40. ORS 183.722 is amended to read:

183.722. (1) If the Legislative Counsel determines under ORS [183.725] 183.720 that a proposed or adopted rule is not within the intent and scope of the enabling legislation purporting to authorize the rule's adoption, or that the rule is not constitutional, and the Legislative Counsel has provided a copy of that determination to the state agency pursuant to 183.720 (6), the state agency shall either make a written response to the determination or appear at the meeting of the Legislative Counsel Committee at which the committee will consider the determinations. The response of the state agency shall indicate if the agency intends to repeal, amend or take other action with respect to the rule.

(2) If the Legislative Counsel determines under ORS [183.725] 183.720 that a proposed or adopted rule is not within the intent and scope of the enabling legislation purporting to authorize the rule's adoption, or that the rule is not constitutional, and the Legislative Counsel Committee is not satisfied with the response to those issues made by the state agency, the committee may request that one or more representatives of the state agency appear at a subsequent meeting of the committee along with a representative of the Oregon Department of Administrative Services for the purpose of further explaining the position of the state agency.

(3) If a state agency is requested under subsection (2) of this section to appear at a subsequent meeting of the committee along with a representative of the Oregon Department of Administrative Services, the state agency shall promptly notify the department of the request. The notification to the department must be in writing, and must include a copy of the determinations made by the Legislative Counsel and a copy of any written response made by the agency to the determinations.

NOTE: Corrects ORS references in (1) and (2).

SECTION 40a. If House Bill 2379 becomes law, section 40 of this 1999 Act (amending ORS 183.722) is repealed.

SECTION 41. ORS 184.345 is amended to read:

184.345. (1) The Oregon Department of Administrative Services shall provide on a reimbursable basis [such] administrative and other services, as agreed to, to:

(a) The Department of Corrections;[,]

(b) The Mental Health and Developmental Disability Services Division; and

(c) The State Board of Education [as such divisions, Department of Corrections and the Oregon Department of Administrative Services may agree on a reimbursable basis].

(2) In addition to its duties under subsection (1) of this section, the Oregon Department of Administrative Services shall provide clerical support to the Energy Facility Siting Council.

NOTE: Corrects syntax.

SECTION 42. ORS 190.130 is added to and made a part of ORS 190.003 to 190.125.

NOTE: Adds statute to appropriate series.

SECTION 43. ORS 192.105 is amended to read:

192.105. (1) Except as otherwise provided by law, the State Archivist may grant to public officials of the state or any political subdivision, as defined in ORS 192.072, specific or continuing authorization for the retention or disposition of public records which are in their custody, after the records have been in existence for a specified period of time. In granting such authorization, the State Archivist shall consider the value of the public records for legal, administrative or research purposes and shall establish rules for procedure for the retention or disposition of the public records. In order to protect and preserve the private legal rights of a person who as a minor was the subject of a record relating to child abuse and foster home placement and supervision, and to retain such a record for use in any subsequent counseling required by such a person, the State Archivist shall retain all records of the State Office for Services to Children and Families [of the Department of Human Resources] that relate to child abuse for:

(a) 75 years if the abuse is substantiated; and

(b) 30 years if the abuse is unsubstantiated.

(2)(a) The State Archivist shall provide instructions and forms for obtaining authorization. Upon receipt of an authorization or upon the effective date of the applicable rule, a state official who has public records in custody shall destroy or otherwise dispose of those records that are older than the specified period of retention established by the authorization or rule. An official of a local government may destroy such records if such destruction is consistent with the policy of the local government. No record of accounts or financial affairs subject to audit shall be destroyed until released for destruction by the responsible auditor or representative of the auditor. If federal funds are involved, records retention requirements of the United States Government must be observed. Each state agency and political subdivision shall designate a records officer to coordinate its records management program and to serve as liaison with the State Archivist. The county records officers for the purposes of ORS 192.001, 192.050, 192.060, 192.105, 192.130, 357.825, 357.835 and 357.875 shall be those officers identified in ORS 205.110. The State Archivist shall require periodic reports from records officers about records management programs. The State Archivist may require state agency records designated as inactive by the State Archivist to be transferred to the State Records Center, pending the availability of space.

(b) The State Archivist shall determine which parts of a public record are acceptable for admission to the State Records Center and may require the state agency or governing body to cause the unacceptable part to be removed before the record is submitted to the State Records Center.

(3) Authorizations granted prior to January 1, 1978, by any state agency, the State Archivist, or any board of county commissioners, to state agencies, schools, school districts, soil and water conservation districts, or county officials and offices shall remain in effect until they are adopted or amended by the State Archivist.

(4) This section does not apply to legislative records, as defined in ORS 171.410.

NOTE: Deletes unnecessary reference to Department of Human Resources in (1).

SECTION 44. ORS 192.650 is amended to read:

192.650. (1) The governing body of a public body shall provide for the taking of written minutes of all its meetings. Neither a full transcript nor a recording of the meeting is required, except as otherwise provided by law, but the written minutes must give a true reflection of the matters discussed at the meeting and the views of the participants. All minutes shall be available to the public within a reasonable time after the meeting, and shall include at least the following information:

(a) All members of the governing body present;

(b) All motions, proposals, resolutions, orders, ordinances and measures proposed and their disposition;

(c) The results of all votes and, except for public bodies consisting of more than 25 members unless requested by a member of that body, the vote of each member by name;

(d) The substance of any discussion on any matter; and

(e) Subject to ORS 192.410 to 192.505 relating to public records, a reference to any document discussed at the meeting but such reference shall not affect the status of the document under ORS 192.410 to 192.505.

(2) Minutes of executive sessions shall be kept in accordance with subsection (1) of this section. However, the minutes of a hearing held under ORS 332.061 shall contain only the material not excluded under ORS 332.061 (2). Instead of written minutes, a record of any executive session may be kept in the form of a sound tape recording, which need not be transcribed unless otherwise provided by law. [Material the disclosure of which] If the disclosure of certain material is inconsistent with the purpose for which a meeting under ORS 192.660 is authorized to be held, that material may be excluded from disclosure. However, excluded materials are authorized to be examined privately by a court in any legal action and the court shall determine their admissibility.

NOTE: Corrects punctuation and syntax in (2).

SECTION 45. ORS 192.690 is amended to read:

192.690. (1) ORS 192.610 to 192.690 shall not apply to the deliberations of the State Board of Parole and Post-Prison Supervision, the Psychiatric Security Review Board, [of] state agencies conducting hearings on contested cases in accordance with the provisions of ORS 183.310 to 183.550, the review by the Workers' Compensation Board or the Employment Appeals Board of similar hearings on contested cases, meetings of the state lawyers assistance committees[,] or the local lawyers assistance committees in accordance with the provisions of ORS 9.545, the multidisciplinary teams required to review child abuse and neglect fatalities in accordance with the provisions of ORS 418.747, the peer review committees in accordance with the provisions of ORS 441.055, mediation conducted under sections 2 to 10, chapter 967, Oregon Laws 1989, any judicial proceeding or [to] meetings of the Oregon Health Sciences University Board of Directors or its designated committee regarding candidates for the position of university president.

(2) Because of the grave risk to public health and safety that would be posed by misappropriation or misapplication of information considered during such review and approval, ORS 192.610 to 192.690 shall not apply to review and approval of security programs by the Energy Facility Siting Council pursuant to ORS 469.530.

NOTE: Corrects syntax in (1).

SECTION 45a. If House Bill 2451 becomes law, section 45 of this 1999 Act (amending ORS 192.690) is repealed and ORS 192.690, as amended by section 4, chapter 171, Oregon Laws 1999 (Enrolled House Bill 2451), is amended to read:

192.690. (1) ORS 192.610 to 192.690 shall not apply to the deliberations of the State Board of Parole and Post-Prison Supervision, the Psychiatric Security Review Board, [of] state agencies conducting hearings on contested cases in accordance with the provisions of ORS 183.310 to 183.550, the review by the Workers' Compensation Board or the Employment Appeals Board of similar hearings on contested cases, meetings of state or local lawyers assistance committees operating under the provisions of ORS 9.545, meetings of the personal and practice management assistance committees operating under the provisions of ORS 9.545, the multidisciplinary teams required to review child abuse and neglect fatalities in accordance with the provisions of ORS 418.747, the peer review committees in accordance with the provisions of ORS 441.055, mediation conducted under sections 2 to 10, chapter 967, Oregon Laws 1989, any judicial proceeding or [to] meetings of the Oregon Health Sciences University Board of Directors or its designated committee regarding candidates for the position of university president.

SECTION 46. ORS 192.690, as amended by section 14, chapter 967, Oregon Laws 1989, section 33, chapter 18, Oregon Laws 1993, section 4, chapter 318, Oregon Laws 1993, section 2, chapter 36, Oregon Laws 1995, and section 62c, chapter 162, Oregon Laws 1995, is amended to read:

192.690. (1) ORS 192.610 to 192.690 shall not apply to the deliberations of the State Board of Parole and Post-Prison Supervision, the Psychiatric Security Review Board, [of] state agencies conducting hearings on contested cases in accordance with the provisions of ORS 183.310 to 183.550, the review by the Workers' Compensation Board or the Employment Appeals Board of similar hearings on contested cases, meetings of the state lawyers assistance committees[,] or the local lawyers assistance committees in accordance with the provisions of ORS 9.545, the multidisciplinary teams required to review child abuse and neglect fatalities in accordance with the provisions of ORS 418.747, the peer review committees in accordance with the provisions of ORS 441.055, any judicial proceeding or [to] meetings of the Oregon Health Sciences University Board of Directors or its designated committee regarding candidates for the position of university president.

NOTE: Corrects syntax in (1).

SECTION 46a. If House Bill 2451 becomes law, section 46 of this 1999 Act (amending ORS 192.690) is repealed and ORS 192.690, as amended by section 14, chapter 967, Oregon Laws 1989, section 33, chapter 18, Oregon Laws 1993, section 4, chapter 318, Oregon Laws 1993, section 2, chapter 36, Oregon Laws 1995, section 62c, chapter 162, Oregon Laws 1995, and section 5, chapter 171, Oregon Laws 1999 (Enrolled House Bill 2451), is amended to read:

192.690. (1) ORS 192.610 to 192.690 shall not apply to the deliberations of the State Board of Parole and Post-Prison Supervision, the Psychiatric Security Review Board, [of] state agencies conducting hearings on contested cases in accordance with the provisions of ORS 183.310 to 183.550, the review by the Workers' Compensation Board or the Employment Appeals Board of similar hearings on contested cases, meetings of state or local lawyers assistance committees operating under the provisions of ORS 9.545, meetings of the personal and practice management assistance committees operating under the provisions of ORS 9.545, the multidisciplinary teams required to review child abuse and neglect fatalities in accordance with the provisions of ORS 418.747, the peer review committees in accordance with the provisions of ORS 441.055, any judicial proceeding or [to] meetings of the Oregon Health Sciences University Board of Directors or its designated committee regarding candidates for the position of university president.

SECTION 47. Nothing in the amendments to ORS 192.690 by section 45, 45a, 46 or 46a of this 1999 Act affects the operative date provisions of section 17, chapter 967, Oregon Laws 1989, as amended by section 1, chapter 277, Oregon Laws 1995.

SECTION 48. ORS 192.835 is amended to read:

192.835. As used in ORS 192.825 to 192.855:

(1) "Asymmetric cryptosystem" means an algorithm or series of algorithms that provide a secure key pair.

[(1)] (2) "Authentication authority" means a person offering digital signature authentication services.

[(2)] (3) "Certificate" means a computer-based record that:

(a) Identifies the certification authority[.];

(b) Identifies the subscriber[.];

(d) Is digitally signed by the certification authority.

[(3)] (4) "Certification authority" means a person who issues a certificate.

[(4)] (5) "Digital signature" means a type of electronic signature that transforms a message using an asymmetric cryptosystem such that a person having the initial message and the signer's public key can accurately determine:

(a) Whether the transformation was created using the private key that corresponds to the signer's public key[.]; and

(b) Whether the initial message has been altered since the transformation was made. [A "key pair" is a private key and its corresponding public key in an asymmetric cryptosystem, under which the public key verifies a digital signature the private key creates. An "asymmetric cryptosystem" is an algorithm or series of algorithms which provide a secure key pair.]

[(5)] (6) "Electronic signature" means any letters, characters or symbols, manifested by electronic or similar means, executed or adopted by a party with an intent to authenticate a writing. A writing is electronically signed if an electronic signature is logically associated with such writing.

(7) "Key pair" means a private key and its corresponding public key in an asymmetric cryptosystem, under which the public key verifies a digital signature the private key creates.

[(6)] (8) "Writing" includes handwriting, printing, typewriting and all other methods and means of forming letters and characters upon paper, stone, wood or other materials. "Writing" also includes information that is created or stored in any electronic medium and is retrievable in perceivable form.

NOTE: Restructures statute for clarity and conformance to legislative form and style.

SECTION 49. ORS 194.515 is amended to read:

194.515. (1) In taking an acknowledgment, the notarial officer must determine, either from personal knowledge or from satisfactory evidence, that the person appearing before the officer and making the acknowledgment is the person whose true signature is on the instrument.

(2) In taking a verification upon oath or affirmation, the notarial officer must determine, either from personal knowledge or from satisfactory evidence, that the person appearing before the officer and making the verification is the person whose true signature is on the statement verified.

(3) In witnessing or attesting a signature the notarial officer must determine, either from personal knowledge or from satisfactory evidence, that the signature is that of the person appearing before the officer and named therein.

(4) In certifying or attesting a copy of a document or other item, the notarial officer must determine that the proffered copy is a full, true and accurate transcription or reproduction of that which was copied.

(5) In making or noting a protest of a negotiable instrument a notarial officer must determine the matters set forth in ORS 73.0505.

(6) A notarial officer has satisfactory evidence that a person is the person whose true signature is on a document if that person:

(a) Is personally known to the notarial officer;

(b) Is identified upon the oath or affirmation of a credible witness personally known to the notarial officer; or

(7) For purposes of this section, "personally known" means familiarity with a person resulting from interactions with that person over a period of time sufficient to eliminate every reasonable doubt that the person has the identity claimed.

(8) For purposes of subsection (6)(c) of this section, a notarial officer has satisfactory evidence upon which to identify a person if:

(a) The person produces at least one current document issued by the Federal Government or a state, county, municipal or other local government and containing the person's photograph, signature and physical description; or

(b) The person produces at least two current documents, each issued by an institution, a business entity, the Federal Government or a state, county, municipal or other local government and each containing the person's signature.

(9) If a notarial officer is also an employee of a financial institution, as defined in ORS [706.005] 706.008, and the person to be identified is a customer of the financial institution, one of the two current documents required under subsection (8)(b) of this section may be a signature card signed by the customer and held by the financial institution in connection with the financial institution's transactions with the customer.

NOTE: Corrects ORS reference in (9).

SECTION 50. ORS 196.645 is amended to read:

196.645. The following moneys shall be paid into the Oregon Wetlands Mitigation Bank Revolving Fund Account:

(1) Any moneys appropriated for that purpose by the Legislative Assembly;

(2) Moneys awarded for such purposes as specifically stipulated under grants through the Federal Emergency Wetlands Resources Act of 1986, P.L. 99-645, or the Federal Coastal Zone Management Act of 1972, 16 U.S.C. 1451 et seq., as amended;

(3) Moneys obtained by gift, bequest, donation or grant from any other public or private source for the purposes of ORS 196.600 to [196.665 and 196.885] 196.655;

(4) Repayment of moneys from the account, including interest on such moneys; and

(5) Moneys obtained from interest or other earnings from investments of moneys in the account.

NOTE: Corrects series reference in (3).

SECTION 51. ORS 196.660 is amended to read:

196.660. ORS 196.600 to [196.665 and 196.885] 196.655 are intended to be supplementary to, and are not intended to abrogate, any state or federal law relating to wetlands.

NOTE: Corrects series reference.

SECTION 52. ORS 196.681 is amended to read:

196.681. (1) In accordance with rules adopted pursuant to this chapter, the Division of State Lands shall:

(a) Review any proposed wetland conservation plan or proposed amendment to an approved wetland conservation plan against the standards in this section;

(b) Prepare a proposed order that approves, approves with conditions or denies the proposed wetland conservation plan or proposed amendment to an approved wetland conservation plan;

(d) Consult with affected local, state and federal agencies; and

(e) Consider the applicable findings made in the order of acknowledgment issued by the Land Conservation and Development Commission.

(2) The Director of the Division of State Lands may approve by order a wetland conservation plan that includes the necessary elements of ORS 196.678 (2) and meets the standards of subsections (3) and (4) of this section.

(3) A wetland conservation plan shall comply with the following standards:

(a) Uses and activities permitted in the plan including fill or removal, or both, conform to sound policies of conservation and will not interfere with public health and safety;

(b) Uses and activities permitted in the plan including fill or removal, or both, are not inconsistent with the protection, conservation and best use of the water resources of this state and the use of state waters for navigation, fishing and public recreation; and

(c) Designation of wetlands for protection, conservation and development is consistent with the resource functions and values of the area and the capability of the wetland area to withstand alterations and maintain important functions and values.

(4) Wetland areas may be designated for development including fill or removal, or both, only if they meet the following standards:

(a) There is a public need for the proposed uses set forth in the acknowledged comprehensive plan for the area;

(b) Any planned wetland losses shall be fully offset by creation, restoration or enhancement of wetland functions and values or in an estuarine area, estuarine resource replacement is consistent with ORS 196.830; and

(5) Approval by the director of a wetland conservation plan shall be conditioned upon adoption by the affected local governments of comprehensive plan policies and land use regulations consistent with and sufficient to implement the wetland conservation plan. Appropriate implementing measures may include the following planning and zoning requirements regulating:

(a) Adjacent lands or buffer areas necessary to maintain, protect or restore wetland functions and values, including riparian vegetation, and the uses to be allowed in those areas;

(b) Sites for mitigation of impacts from development activities;

(d) Activities or location of buildings, structures and improvements which may affect wetland values or functions, such as storm water runoff.

(6) The director shall issue an order approving, approving with conditions or denying a wetland conservation plan, including a clear statement of findings which sets forth the basis for the approval, conditioning or denial. The order shall include:

(a) A clear statement of findings that the elements specified in ORS 196.678 (2) have been developed;

(b) The findings in support of the determination of compliance or noncompliance with the standards in subsections (3) and (4) of this section; and

(7) The director may, as a part of an order approving a plan, authorize site-specific fill or removal without an individual permit as required by ORS 196.810 provided that:

(a) The director adopts findings demonstrating that fill or removal for any proposed project complies with ORS 196.682 (1)(a) to (e); or

(b) The director adopts findings that specific areas of fill or removal within areas designated as development in the plan meet the following standards:

(A) The fill or removal approved by the order will result in minimal impacts to the wetland system in the planning area;

(B) The public need for the proposed area of fill or removal outweighs the environmental damage likely to result from full development;

(C) The director conditions any such order as necessary to [insure] ensure that the fill or removal, or both, is designed to minimize impacts from implementing the project; and

(D) Full replacement of wetland losses is provided through creation, restoration or enhancement of wetlands with comparable functions and values.

(8) Upon a finding by the director that a fill or removal, or both, authorized under subsection (7)(b) of this section has caused or is likely to cause more than minimal adverse impact to the wetland system considering required mitigation conditions, the director shall revise the order to require individual permit review according to ORS 196.682 or provide additional conditions to [insure] ensure that adverse impacts are minimal. Such revision shall not be subject to ORS 196.684.

NOTE: Corrects syntax in (1)(e); corrects grammar in (7)(b)(C) and (8).

SECTION 53. ORS 196.795 is amended to read:

196.795 (1) The Division of State Lands shall continue to pursue methods to streamline the process for administering permits for the removal of material from the bed or banks of any waters of this state or for filling the waters of this state, reducing paperwork, eliminating duplication, increasing certainty and timeliness and enhancing resource protection. The efforts of the Division of State Lands shall include but need not be limited to applying to the United States Army Corps of Engineers for a state program general permit as authorized in federal regulations implementing section 404 of the Federal Water Pollution Control Act, and section 10 of the Rivers and Harbors Act of 1899, as amended. In conjunction with these activities, the Division of State Lands may continue to investigate the possibility of assuming the federal regulatory program under 33 U.S.C. 1344(g) of the Federal Water Pollution Control Act.

(2) The division shall report periodically to the Joint Legislative Committee on Land Use on the progress in implementing subsection (1) of this section [and shall provide a written report to the Seventieth Legislative Assembly on the progress of the division in implementing subsection (1) of this section].

NOTE: Deletes obsolete provisions.

SECTION 54. ORS 196.910 is amended to read:

196.910. The Division of State Lands shall:

(1) Monitor removal and fill activities, including but not limited to prospecting and placer mining, within designated essential indigenous anadromous salmonid habitat areas to determine the effects of such activities on salmonid spawning and rearing habitat and compile the results in an annual report.

(2) Cooperate with the State Department of Fish and Wildlife and other interested parties to develop and distribute public education and information materials designed to increase understanding and awareness of permit requirements and acceptable removal and fill practices related to prospecting and placer mining.

(3) Report periodically to the Joint Legislative Committee on Land Use [and provide a written report to the Seventieth Legislative Assembly] on the progress of the division in implementing ORS 196.810 [as amended by section 1, chapter 508, Oregon Laws 1997].

NOTE: Deletes obsolete provisions.

SECTION 55. ORS 197.274 is amended to read:

197.274. The Metro regional framework plan and Metro planning goals and objectives are subject to review:

(1) For compliance with the statewide planning goals in the same manner as a comprehensive plan for purposes of:

(a) Acknowledgment of compliance with the goals under ORS 197.251; and

(b) Post-acknowledgment procedures under ORS 197.610 to 197.646; and

(2) As a land use decision under ORS 197.805 to 197.860.

NOTE: Inserts appropriate conjunction after (1)(a).

SECTION 56. ORS 197.298 is amended to read:

197.298. (1) In addition to any requirements established by rule addressing urbanization, land may not be included within an urban growth boundary except under the following priorities:

(a) First priority is land that is designated urban reserve land under ORS 195.145, rule or metropolitan service district action plan.

(b) If land under paragraph (a) of this subsection is inadequate to accommodate the amount of land needed, second priority is land adjacent to an urban growth boundary that is identified in an acknowledged comprehensive plan as an exception area or nonresource land. Second priority may include resource land that is completely surrounded by exception areas unless such resource land is high-value farmland as described in ORS 215.710.

(c) If land under paragraphs (a) and (b) of this subsection is inadequate to accommodate the amount of land needed, third priority is land designated as marginal land pursuant to ORS 197.247 (1991 Edition).

(d) If land under paragraphs (a) to (c) of this subsection is inadequate to accommodate the amount of land needed, fourth priority is land designated in an acknowledged comprehensive plan for agriculture or forestry, or both.

(2) Higher priority shall be given to land of lower capability as measured by the capability classification system or by cubic foot site class, whichever is appropriate for the current use.

(3) Land of lower priority under subsection (1) of this section may be included in an urban growth boundary if land of higher priority is found to be inadequate to accommodate the amount of land estimated in subsection (1) of this section for one or more of the following reasons:

(a) Specific types of identified land needs cannot be reasonably accommodated on higher priority lands;

(b) Future urban services could not reasonably be provided to the higher priority lands due to topographical or other physical constraints; or

(c) Maximum efficiency of land uses within a proposed urban growth boundary requires inclusion of lower priority lands in order to include or to provide services to higher priority lands.

NOTE: Corrects terminology in (3)(b).

SECTION 57. ORS 205.460 is amended to read:

205.460. (1) A person whose property is subject to an invalid claim of encumbrance may petition the circuit court of the county in which the person resides or in which the property is located for an order, which may be granted ex parte, directing the encumbrance claimant to appear at a hearing before the court and show cause why the claim of encumbrance should not be stricken and other relief provided by this section should not be granted. The court shall schedule the hearing no earlier than seven days after the date of the order. The scheduled date of the hearing shall allow adequate time for notice of the hearing under subsection (4) of this section.

(2) A petition under this section shall state the grounds upon which relief is requested, and shall be supported by the affidavit of the petitioner or the petitioner's attorney setting forth a concise statement of the facts upon which the motion is based.

(3) The petition and affidavit described in subsection (2) of this section shall be in substantially the following form:

___________________________________________________________________

IN THE CIRCUIT COURT OF

THE STATE OF OREGON

FOR THE COUNTY OF _______

__________, )

Petitioner, ) Case No. ____

)

) PETITION FOR AN

) ORDER STRIKING

v. ) AND RELEASING

) ENCUMBRANCES,

) AWARDING COSTS

) AND ATTORNEY FEES

__________, ) AND ORDER TO

Respondent. ) SHOW CAUSE

Petitioner, _______ (insert name), by and through _______ (insert name and title of attorney for petitioner, if applicable), petitions this court, pursuant to ORS 205.460, for an order striking and releasing purported encumbrances, filed or recorded against Petitioner by Respondent, _______ (insert name or names) filed or recorded in book/reel/volume No. ____ on page ____ or document/fee/file/instrument/microfilm No. ____ in the _______ (insert name of office where document was filed or recorded), and for an order, pursuant to ORS 205.460, for costs and attorney fees required to bring this action, on the grounds that the purported encumbrances have no basis in law or fact. Petitioner further requests that this court enter an order requiring Respondent to appear before this court and to show cause why the above order should not be entered. Finally, Petitioner requests an order from the court requiring Respondent to pay penalties and damages as provided in ORS 205.470.

DATED this ___ day of _______, ___.

___________________________

Petitioner or Petitioner's Attorney

___________________________________________________________________

IN THE CIRCUIT COURT OF

THE STATE OF OREGON

FOR THE COUNTY OF _______

__________, )

Petitioner, ) Case No. ____

)

) AFFIDAVIT OF

V. ) _________

)

__________, )

Respondent. )

__________________ )

STATE OF OREGON )

) ss.

County of _______ )

I, _______ (insert name of affiant), after being duly sworn, depose and say:

1. I am the above-entitled petitioner (or the attorney for the petitioner) in this matter.

2. The information contained in this affidavit is of my own personal knowledge.

3. Attached as numbered exhibits are true and correct copies of the following documents that were filed or recorded in the _______ (insert name of office where documents were filed or recorded) on _______ (insert date):

(List and attach document(s))

4. For any purported encumbrances identified above the following is true. The encumbrance is not authorized by statute, was not entered into consensually, and is not an equitable, constructive or other encumbrance imposed by a court of competent jurisdiction.

DATED this ___ day of _______, ___.

______________________________

(Petitioner or Petitioner's Attorney)

SUBSCRIBED AND SWORN to before me this ___ day of _______, ___.

_____________________________.

NOTARY PUBLIC FOR OREGON

My commission expires: _____

___________________________________________________________________

(4) A copy of the petition and the order directing the encumbrance claimant to appear under this section shall be served upon the encumbrance claimant:

(a) By service in the manner provided for personal service of summons under ORCP 7; or

(b) By mailing a true copy of the petition, affidavit and order to the encumbrance claimant at the encumbrance claimant's last-known address, both by first class mail and by certified or registered mail, return receipt requested. A notice mailed under this paragraph is effective on the date that the notice is deposited with the United States Postal Service, properly addressed and postage prepaid.

(5) The order to show cause shall be in substantially the following form and shall clearly state that if the encumbrance claimant fails to appear at the time and place noted, the claim of encumbrance shall be stricken and released and that the encumbrance claimant shall be ordered to pay the costs and reasonable attorney fees incurred by the petitioner at trial and on appeal:

___________________________________________________________________

IN THE CIRCUIT COURT OF

THE STATE OF OREGON

FOR THE COUNTY OF _______

_________, )

Petitioner, ) Case No. ____

)

) ORDER TO

v. ) SHOW CAUSE

)

_________, )

Respondent. )

THIS MATTER came before the court on _______ (insert date) on Petitioner's Petition for an Order Striking and Releasing Encumbrances, Awarding Costs and Attorney Fees and Order to Show Cause. The court, having considered the petition, the Affidavit of _______ (insert name) and the attached exhibits, and it appearing to the court that there are sufficient grounds to issue an order to show cause,

IT IS HEREBY ORDERED that the Respondent, _______ (insert name), appear before this court on _______ (insert date), at _____ (insert time), to show cause why the petition should not be granted in its entirety.

IMPORTANT NOTICE:

IF YOU FAIL TO APPEAR AT THE ABOVE TIME AND PLACE, THE COURT MAY ENTER AN ORDER STRIKING AND RELEASING YOUR ENCUMBRANCE CLAIMS FILED AGAINST PETITIONER AND YOU MAY BE ORDERED TO PAY COSTS AND REASONABLE ATTORNEY FEES INCURRED BY THE PETITIONER.

DATED this ___ day of _______, ___.

________________

Circuit Court Judge

___________________________________________________________________

(6) If the court determines that the claim of encumbrance is invalid, the court shall issue an order striking and releasing the claim of encumbrance and may award costs and reasonable attorney fees at trial and on appeal to the petitioner to be paid by the encumbrance claimant. If the court determines that the claim of encumbrance is valid, the court shall issue an order so stating and may award costs and reasonable attorney fees at trial and on appeal to the encumbrance claimant to be paid by the petitioner.

(7) The procedure set forth in this section is not available against a person lawfully conducting business as:

(a) An institution, a savings bank, [a stock savings bank,] a national bank, [a foreign institution,] an out-of-state bank, a federal savings bank or an extranational institution, as those terms are defined in ORS [706.005, a federal savings bank] 706.008, or a subsidiary of an entity described in this paragraph;

(b) A savings association or a federal association, as those terms are defined in ORS 722.004, or a subsidiary of an entity described in this paragraph;

(c) A bank holding company, a savings and loan holding company or a subsidiary of a bank holding company or a savings and loan holding company;

(d) A credit union, as defined in ORS 723.006, or a federal credit union;

(e) A consumer finance company subject to the provisions of ORS chapter 725;

(f) A mortgage banker or a mortgage broker, as those terms are defined in ORS 59.840, a mortgage servicing company or any other mortgage company; or

(g) An insurer as defined in ORS 731.106.

(8) The procedure set forth in this section is not available against:

(a) An officer, agency, department or instrumentality of the Federal Government;

(b) An officer, agency, department or instrumentality of this state; or

NOTE: Corrects terminology and ORS reference in (7)(a).

SECTION 58. ORS 215.750 is amended to read:

215.750. (1) In western Oregon, a governing body of a county or its designate may allow the establishment of a single-family dwelling on a lot or parcel located within a forest zone if the lot or parcel is predominantly composed of soils that are:

(a) Capable of producing 0 to 49 cubic feet per acre per year of wood fiber if:

(A) All or part of at least three other lots or parcels that existed on January 1, 1993, are within a 160-acre square centered on the center of the subject tract; and

(B) At least three dwellings existed on January 1, 1993, on the other lots or parcels;

(b) Capable of producing 50 to 85 cubic feet per acre per year of wood fiber if:

(A) All or part of at least seven other lots or parcels that existed on January 1, 1993, are within a 160-acre square centered on the center of the subject tract; and

(B) At least three dwellings existed on January 1, 1993, on the other lots or parcels; or

(A) All or part of at least 11 other lots or parcels that existed on January 1, 1993, are within a 160-acre square centered on the center of the subject tract; and

(B) At least three dwellings existed on January 1, 1993, on the other lots or parcels.

(2) In eastern Oregon, a governing body of a county or its designate may allow the establishment of a single-family dwelling on a lot or parcel located within a forest zone if the lot or parcel is predominantly composed of soils that are:

(a) Capable of producing 0 to 20 cubic feet per acre per year of wood fiber if:

(A) All or part of at least three other lots or parcels that existed on January 1, 1993, are within a 160-acre square centered on the center of the subject tract; and

(B) At least three dwellings existed on January 1, 1993, on the other lots or parcels;

(b) Capable of producing 21 to 50 cubic feet per acre per year of wood fiber if:

(A) All or part of at least seven other lots or parcels that existed on January 1, 1993, are within a 160-acre square centered on the center of the subject tract; and

(B) At least three dwellings existed on January 1, 1993, on the other lots or parcels; or

(A) All or part of at least 11 other lots or parcels that existed on January 1, 1993, are within a 160-acre square centered on the center of the subject tract; and

(B) At least three dwellings existed on January 1, 1993, on the other lots or parcels.

(3) Lots or parcels within urban growth boundaries shall not be used to satisfy the eligibility requirements under subsection (1) or (2) of this section.

(4) A proposed dwelling under this [subsection] section is not allowed:

(a) If it is prohibited by or will not comply with the requirements of an acknowledged comprehensive plan or acknowledged land use regulations or other provisions of law.

(b) Unless it complies with the requirements of ORS 215.730.

(c) Unless no dwellings are allowed on other lots or parcels that make up the tract and deed restrictions established under ORS 215.740 (3) for the other lots or parcels that make up the tract are met.

(d) If the tract on which the dwelling will be sited includes a dwelling.

(5) Except as described in subsection (6) of this section, if the tract under subsection (1) or (2) of this section abuts a road that existed on January 1, 1993, the measurement may be made by creating a 160-acre rectangle that is one mile long and one-fourth mile wide centered on the center of the subject tract and that is to the maximum extent possible, aligned with the road.

(6)(a) If a tract 60 acres or larger described under subsection (1) or (2) of this section abuts a road or perennial stream, the measurement shall be made in accordance with subsection (5) of this section. However, one of the three required dwellings shall be on the same side of the road or stream as the tract and:

(A) Be located within a 160-acre rectangle that is one mile long and one-fourth mile wide centered on the center of the subject tract and that is, to the maximum extent possible, aligned with the road or stream; or

(B) Be within one-quarter mile from the edge of the subject tract but not outside the length of the 160-acre rectangle, and on the same side of the road or stream as the tract.

(b) If a road crosses the tract on which the dwelling will be located, at least one of the three required dwellings shall be on the same side of the road as the proposed dwelling.

NOTE: Corrects internal reference in (4).

SECTION 59. ORS 215.806 is amended to read:

215.806. (1) The State Department of Fish and Wildlife shall adopt rules specifying the form and content of a wildlife habitat conservation and management plan. The rules shall specify the conservation and management practices that are appropriate to preserve, enhance and improve wildlife common to the diverse regions of this state. Accepted farm and forest practices may be allowed as an integral part of the wildlife conservation and management practices specified in an approved plan.

(2) [The rules required to be adopted by subsection (1) of this section shall be adopted no later than 180 days after November 4, 1993.] The rules shall be reviewed annually by the department and revised when considered necessary or appropriate by the department.

NOTE: Deletes obsolete provision.

SECTION 60. ORS 243.291 is amended to read:

243.291. (1) The Public Employees' Benefit Board shall make available one or more fully insured long term care insurance plans. The plans shall be made available to eligible employees, retired employees and family members. Notwithstanding ORS 243.105 [and 243.230], for purposes of this subsection, "family members" includes family members as defined by the board and also includes the parents of the employee or retiree and the parents of the spouse of the employee or retiree.

(2) Employees of local governments and employees of political subdivisions may participate in the plans under terms and conditions established by the board, if it does not jeopardize the financial viability of the board's long term care insurance plans. However, unless the local government or political subdivision provides otherwise, the employee's participation is a personal action of the employee and does not obligate the local government or political subdivision to pay for the provision of benefits under this subsection.

(3) Participation of eligible employees or retired employees in any long term care insurance plan made available by the board is voluntary and is subject to reasonable underwriting guidelines and eligibility rules established by the board.

(4) The employee or retired employee is solely responsible for the payment of the long term care premium rates developed by the board. The board is authorized to charge a reasonable administrative fee, in addition to the premium charged by the long term care insurer, to cover the cost of administration and consumer education materials.

NOTE: Deletes reference to repealed statute in (1).

SECTION 61. ORS 243.650 is amended to read:

243.650. As used in ORS 243.650 to 243.782, unless the context requires otherwise:

(1) "Appropriate bargaining unit" means the unit designated by the Employment Relations Board or voluntarily recognized by the public employers to be appropriate for collective bargaining. However, an appropriate bargaining unit cannot include both academically licensed and unlicensed or nonacademically licensed school employees. Academically licensed units may include but are not limited to teachers, nurses, counselors, therapists, psychologists, child development specialists and similar positions. This limitation shall not apply to any bargaining unit certified or recognized prior to June 6, 1995, or to any school district with fewer than 50 employees.

(2) "Board" means the Employment Relations Board.

(3) "Certification" means official recognition by the board that a labor organization is the exclusive representative for all of the employees in the appropriate bargaining unit.

(4) "Collective bargaining" means the performance of the mutual obligation of a public employer and the representative of its employees to meet at reasonable times and confer in good faith with respect to employment relations for the purpose of negotiations concerning mandatory subjects of bargaining as defined in this section, to meet and confer in good faith in accordance with law with respect to any dispute concerning the interpretation or application of a collective bargaining agreement, and to execute written contracts incorporating agreements that have been reached on behalf of the public employer and the employees in the bargaining unit covered by such negotiations. The obligation to meet and negotiate does not compel either party to agree to a proposal or require the making of a concession. Nothing in this subsection shall be construed to prohibit a public employer and a certified or recognized representative of its employees from discussing or executing written agreements regarding matters other than mandatory subjects of bargaining that are not prohibited by law, so long as there is mutual agreement of the parties to discuss these matters, which are permissive subjects of bargaining.

(5) "Compulsory arbitration" means the procedure whereby parties involved in a labor dispute are required by law to submit their differences to a third party for a final and binding decision.

(6) "Confidential employee" means one who assists and acts in a confidential capacity to a person who formulates, determines and effectuates management policies in the area of collective bargaining.

(7)(a) "Employment relations" includes, but is not limited to, matters concerning direct or indirect monetary benefits, hours, vacations, sick leave, grievance procedures and other conditions of employment.

(b) "Employment relations" does not include subjects determined to be permissive, nonmandatory subjects of bargaining by the Employment Relations Board prior to June 6, 1995.

(c) After June 6, 1995, "employment relations" shall not include subjects which the Employment Relations Board determines to have a greater impact on management's prerogative than on employee wages, hours, or other terms and conditions of employment.

(d) "Employment relations" shall not include subjects that have an insubstantial or de minimis effect on public employee wages, hours, and other terms and conditions of employment.

(e) For school district bargaining, "employment relations" shall expressly exclude class size, the school or educational calendar, standards of performance or criteria for evaluation of teachers, the school curriculum, reasonable dress, grooming and at-work personal conduct requirements respecting smoking, gum chewing and similar matters of personal conduct, the standards and procedures for student discipline, the time between student classes, the selection, agendas and decisions of 21st Century Schools [Site] Councils established under ORS 329.704, and any other subject proposed that is permissive under paragraphs (b), (c) and (d) of this subsection.

(f) For all other employee bargaining except school districts, "employment relations" expressly excludes staffing levels and safety issues (except those staffing levels and safety issues which have a direct and substantial effect on the on-the-job safety of public employees), scheduling of services provided to the public, determination of the minimum qualifications necessary for any position, criteria for evaluation or performance appraisal, assignment of duties, workload when the effect on duties is insubstantial, reasonable dress, grooming, and at-work personal conduct requirements respecting smoking, gum chewing, and similar matters of personal conduct at work, and any other subject proposed that is permissive under paragraphs (b), (c) and (d) of this subsection.

(8) "Exclusive representative" means the labor organization that, as a result of certification by the board or recognition by the employer, has the right to be the collective bargaining agent of all employees in an appropriate bargaining unit.

(9) "Fact-finding" means identification of the major issues in a particular labor dispute by one or more impartial individuals who review the positions of the parties, resolve factual differences and make recommendations for settlement of the dispute.

(10) "Fair-share agreement" means an agreement between the public employer and the recognized or certified bargaining representative of public employees whereby employees who are not members of the employee organization are required to make an in-lieu-of-dues payment to an employee organization except as provided in ORS 243.666. Upon the filing with the board of a petition by 30 percent or more of the employees in an appropriate bargaining unit covered by such union security agreement declaring they desire that such agreement be rescinded, the board shall take a secret ballot of the employees in such unit and certify the results thereof to the recognized or certified bargaining representative and to the public employer. Unless a majority of the votes cast in an election favor such union security agreement, the board shall certify deauthorization[,] thereof. A petition for deauthorization of a union security agreement must be filed not more than 90 calendar days after the collective bargaining agreement is executed. Only one such election shall be conducted in any appropriate bargaining unit during the term of a collective bargaining agreement between a public employer and the recognized or certified bargaining representative.

(11) "Final offer" means the proposed contract language and cost summary submitted to the mediator within seven days of the declaration of impasse.

(12) "Labor dispute" means any controversy concerning employment relations or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment relations, regardless of whether the disputants stand in the proximate relation of employer and employee.

(13) "Labor organization" means any organization that has as one of its purposes representing employees in their employment relations with public employers.

(14) "Last best offer package" means the offer exchanged by parties not less than 14 days prior to the date scheduled for an interest arbitration hearing.

(15) "Legislative body" means the Legislative Assembly, the city council, the county commission and any other board or commission empowered to levy taxes.

(16) "Managerial employee" means an employee of the State of Oregon who possesses authority to formulate and carry out management decisions or who represents management's interest by taking or effectively recommending discretionary actions that control or implement employer policy, and who has discretion in the performance of these management responsibilities beyond the routine discharge of duties. A "managerial employee" need not act in a supervisory capacity in relation to other employees. Notwithstanding this subsection, "managerial employee" shall not be construed to include faculty members at a community college, college or university.

(17) "Mediation" means assistance by an impartial third party in reconciling a labor dispute between the public employer and the exclusive representative regarding employment relations.

(18) "Payment-in-lieu-of-dues" means an assessment to defray the cost for services by the exclusive representative in negotiations and contract administration of all persons in an appropriate bargaining unit who are not members of the organization serving as exclusive representative of the employees. The payment shall be equivalent to regular union dues and assessments, if any, or shall be an amount agreed upon by the public employer and the exclusive representative of the employees.

(19) "Public employee" means an employee of a public employer but does not include elected officials, persons appointed to serve on boards or commissions, incarcerated persons working under section 41, Article I of the Oregon Constitution, or persons who are confidential employees, supervisory employees or managerial employees.

(20) "Public employer" means the State of Oregon, and the following political subdivisions: Cities, counties, community colleges, school districts, special districts, mass transit districts, metropolitan service districts, public service corporations or municipal corporations and public and quasi-public corporations.

(21) "Public employer representative" includes any individual or individuals specifically designated by the public employer to act in its interests in all matters dealing with employee representation, collective bargaining and related issues.

(22) "Strike" means a public employee's refusal in concerted action with others to report for duty, or his or her willful absence from his or her position, or his or her stoppage of work, or his or her absence in whole or in part from the full, faithful or proper performance of his or her duties of employment, for the purpose of inducing, influencing or coercing a change in the conditions, compensation, rights, privileges or obligations of public employment; however, nothing shall limit or impair the right of any public employee to lawfully express or communicate a complaint or opinion on any matter related to the conditions of employment.

(23) "Supervisory employee" means any individual having authority in the interest of the employer to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward or discipline other employees, or responsibly to direct them, or to adjust their grievances, or effectively to recommend such action, if in connection therewith, the exercise of such authority is not of a merely routine or clerical nature but requires the use of independent judgment. Failure to assert supervisory status in any Employment Relations Board proceeding or in negotiations for any collective bargaining agreement shall not thereafter prevent assertion of supervisory status in any subsequent board proceeding or contract negotiation. Notwithstanding the provisions of this subsection, no nurse, charge nurse or similar nursing position shall be deemed to be supervisory unless such position has traditionally been classified as supervisory.

(24) "Unfair labor practice" means the commission of an act designated an unfair labor practice in ORS 243.672.

(25) "Voluntary arbitration" means the procedure whereby parties involved in a labor dispute mutually agree to submit their differences to a third party for a final and binding decision.

NOTE: Corrects official title in (7)(e); corrects punctuation in (10).

SECTION 62. ORS 244.050 is amended to read:

244.050. (1) On or before April 15 of each year the following persons shall file with the Oregon Government Standards and Practices Commission a verified statement of economic interest as required under this chapter:

(a) The Governor, Secretary of State, State Treasurer, Attorney General, Commissioner of the Bureau of Labor and Industries, Superintendent of Public Instruction, district attorneys and members of the Legislative Assembly.

(b) Any judicial officer, including justices of the peace and municipal judges, except municipal judges in those cities where a majority of the votes cast in the subject city in the 1974 general election was in opposition to the ballot measure provided for in section 10, chapter 68, Oregon Laws 1974 (special session), and except any pro tem judicial officer who does not otherwise serve as a judicial officer.

(d) The Deputy Attorney General.

(e) The Legislative Administrator, the Legislative Counsel, the Legislative Fiscal Officer, the Secretary of the Senate and the Chief Clerk of the House of Representatives.

(f) The Chancellor and Vice Chancellors of the State System of Higher Education and the President and Vice Presidents, or their administrative equivalents, in each institution under the jurisdiction of the State Board of Higher Education.

(g) The following state officers:

(A) Adjutant General.

(B) Director of Agriculture.

(D) Water Resources Director.

(E) Director of Department of Environmental Quality.

(F) Director of Oregon Department of Administrative Services.

(G) Director of the Oregon State Fair and Exposition Center.

(H) State Fish and Wildlife Director.

(I) State Forester.

(J) State Geologist.

(K) Director of Department of Human Resources.

(L) Director of the Department of Consumer and Business Services.

(M) Director of Division of State Lands.

(N) State Librarian.

(O) Administrator of Oregon Liquor Control Commission.

(P) Superintendent of State Police.

(Q) Director of the Public Employees Retirement [Board] System.

(R) Director of Department of Revenue.

(S) Director of Transportation.

(T) Public Utility Commissioner.

(U) Director of Veterans' Affairs.

(V) Executive Director of Oregon Government Standards and Practices Commission.

(W) Administrator of the Office of Energy.

(X) Director and each assistant director of the Oregon State Lottery.

(h) Any assistant in the Governor's office other than personal secretaries and clerical personnel.

(i) Every elected city or county official except elected officials in those cities or counties where a majority of votes cast in the subject city or county in any election on the issue of filing statements of economic interest under this chapter was in opposition.

(j) Every member of a city or county planning, zoning or development commission except such members in those cities or counties where a majority of votes cast in the subject city or county at any election on the issue of filing statements of economic interest under this chapter was in opposition to the ballot measure provided for in section 10, chapter 68, Oregon Laws 1974 (special session).

(k) The chief executive officer of a city or county who performs the duties of manager or principal administrator of the city or county except such employees in those cities or counties where a majority of votes cast in the subject city or county in an election on the issue of filing statements of economic interest under this chapter was in opposition.

(L) Members of local government boundary commissions formed under ORS 199.410 to 199.519.

(m) Every member of a governing body of a metropolitan service district and the executive officer thereof.

(n) Each member of the board of directors of the State Accident Insurance Fund Corporation.

(o) The chief administrative officer and the financial officer of each common and union high school district, education service district and community college district.

(p) Every member of the following state boards and commissions:

(A) Capitol Planning Commission.

(B) Board of Geologic and Mineral Industries.

(D) State Board of Education.

(E) Environmental Quality Commission.

(F) Fish and Wildlife Commission of the State of Oregon.

(G) State Board of Forestry.

(H) Oregon Government Standards and Practices Commission.

(I) Oregon Health Council.

(J) State Board of Higher Education.

(K) Oregon Investment Council.

(L) Land Conservation and Development Commission.

(M) Oregon Liquor Control Commission.

(N) Oregon Short Term Fund Board.

(O) State Marine Board.

(P) Mass transit district boards.

(Q) Energy Facility Siting Council.

(R) Board of Commissioners of the Port of Portland.

(S) Employment Relations Board.

(T) Public Employees Retirement Board.

(U) Oregon Racing Commission.

(V) Oregon Transportation Commission.

(W) Wage and Hour Commission.

(X) Water Resources Commission.

(Y) Workers' Compensation Board.

(Z) Housing, Educational and Cultural Facilities Authority.

(AA) Oregon State Lottery Commission.

(BB) Pacific Northwest Electric Power and Conservation Planning Council.

(CC) Columbia River Gorge Commission.

(q) The following officers of the State Treasury:

(A) Chief Deputy State Treasurer.

(B) Executive Assistant to the State Treasurer.

(2) By April 15 next after the date an appointment takes effect, every appointed public official on a board or commission listed in subsection (1) of this section shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090.

(3) By April 15 next after the filing date for the biennial primary election, each candidate for elective public office described in subsection (1) of this section shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090.

(4) Within 30 days after the filing date for the general election, each candidate for elective public office described in subsection (1) of this section who was not a candidate in the preceding biennial primary election shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090.

(5) The Legislative Assembly shall maintain a continuing review of the operation of this chapter and from time to time may add to or delete from the list of boards and commissions in subsections (1) to (3) of this section as in the judgment of the Legislative Assembly is consistent with the purposes of this chapter.

(6) Subsections (1) to (5) of this section apply only to persons who are incumbent, elected or appointed officials as of April 15 and to persons who are candidates for office on April 15. Those sections also apply to persons who do not become candidates until 30 days after the filing date for the statewide general election.

(7)(a) Failure to file the statement required by this section subjects a person to a civil penalty that may be imposed as specified in ORS 183.090, but the enforcement of this subsection does not require the Oregon Government Standards and Practices Commission to follow the procedures in ORS 244.260 before finding that a violation of this section has occurred.

(b) Failure to file the required statement in timely fashion shall be prima facie evidence of a violation of this section.

(c) If within five days after the date on which the statement is to be filed under this section the statement has not been received by the commission, the commission shall notify the public official and give the public official not less than 15 days to comply with the requirements of this section. If the public official fails to comply by the date set by the commission, the commission may impose a civil penalty of $5 for each day the statement is late beyond the date fixed by the commission. The maximum penalty that may be accrued under this section is $1,000.

(d) A civil penalty imposed under this subsection is in addition to and not in lieu of sanctions that may be imposed under ORS 244.380.

NOTE: Corrects official title in (1)(g)(Q).

SECTION 63. ORS 247.296 is amended to read:

247.296. (1) The county clerk shall use records of the United States Postal Service relating to ballots issued by mail to verify the accuracy of addresses of electors contained in the registration file of the county clerk.

(2) Based on information obtained under subsection (1) of this section, the county clerk shall automatically update the registration of an elector under ORS 247.292 or mail a notice described in ORS 247.563.

(3) The registration of an elector shall not be canceled or moved to an inactive file during the 90-day period prior to any biennial or presidential preference primary or general election based on information obtained under this section.

NOTE: Clarifies reference to election in (3).

SECTION 64. ORS 254.056 is amended to read:

254.056. (1) The general election shall be held on the first Tuesday after the first Monday in November of each even-numbered year. At the general election officers of the state and subdivisions of the state, members of Congress and electors of President and Vice President of the United States as are to be elected in that year shall be elected.

(2) The biennial primary election shall be held on the third Tuesday in May of each even-numbered year. At the biennial primary election precinct committeepersons shall be elected and major political party candidates other than candidates for President of the United States shall be nominated for offices to be filled at the general election held in that year.

(3) The presidential preference primary election shall be held on the second Tuesday in March of each year in which electors of the President and Vice President of the United States are to be elected. At the presidential preference primary election, electors may vote for candidates for nomination for President of the United States.

NOTE: Clarifies reference to election in (2).

SECTION 65. ORS 254.085 is amended to read:

254.085. (1) The Secretary of State, not later than the 61st day before the date of a biennial primary or general election, shall file with each county clerk a statement of the state and congressional district offices to be filled or for which candidates are to be nominated in the county at the election, information concerning all candidates for the offices, and the state measures to be voted on.

(2) The information concerning candidates for the Supreme Court, Court of Appeals, Oregon Tax Court and circuit court shall include a designation of incumbent for each candidate who is the regularly elected or appointed judge of the court to which the candidate seeks election. If a candidate was regularly elected or appointed to a specific position or department on the court, the candidate shall be designated as the incumbent only if the person is a candidate for that position or department.

(3) Included with each state measure shall be the measure number, the ballot title prepared by the Attorney General under ORS [250.065 (3)] 250.067 (2) or, if the Supreme Court has reviewed the title under ORS 250.085, the title certified by the court and the financial estimates under ORS 250.125. The Secretary of State shall keep a copy of the statement.

NOTE: Corrects ORS reference in (3).

SECTION 66. ORS 260.178 is amended to read:

260.178. As used in ORS 260.178, 260.180, 260.182, 260.188, 260.265 and 260.997:

(1)(a) "Attributable expenditure" means an expenditure from contributions, including any loans received, including accounts payable, made or authorized:

(A) By the candidate or by a person acting for the candidate;

(B) For the treasurer of the candidate or the candidate's principal campaign committee; or

(C) For another person or political committee under the direction or control of the candidate or the treasurer of the candidate or the candidate's principal campaign committee.

(b) "Attributable expenditure" does not include an expenditure that is a repayment on a loan or an independent expenditure.

(2) "Secretary" means the Secretary of State.

(3) "Statewide office" means the office of Governor, Secretary of State, State Treasurer, Attorney General, Superintendent of Public Instruction and Commissioner of the Bureau of Labor and Industries.

(4) "With respect to the biennial primary election" means the period beginning on the date that the name of a treasurer is certified to the filing officer under ORS 260.035 or 260.037 or the day following the last day of the accounting period for a previous statement of contributions received or expenditures made if the statement shows an unexpended balance of contributions or an expenditure deficit, and ending on the 20th day after the date of the biennial primary election.

(5) "With respect to the general election" means:

(a) For a candidate nominated by a major political party at the biennial primary election, the period extending from the 21st day after the biennial primary election to December 31; or

(b) For a candidate not nominated at the biennial primary election, the period extending from the date the name of a treasurer for the candidate or the principal campaign committee of the candidate is certified to the filing officer and ending on December 31.

NOTE: Clarifies references to election in (4) and (5).

SECTION 67. ORS 260.180 is amended to read:

260.180. (1) A candidate for statewide office or the office of state Senator or state Representative may file a declaration of limitation on expenditures as described in ORS 260.182 with the secretary stating that the candidate, including the principal campaign committee of the candidate, will not make attributable expenditures:

(a) With respect to the biennial primary election, in excess of:

(A) $500,000 for the office of Governor;

(B) $200,000 for any other statewide office;

(D) $20,000 for the office of state Representative.

(b) With respect to the general election, in excess of:

(A) $1 million for the office of Governor;

(B) $400,000 for any other statewide office;

(D) $40,000 for the office of state Representative.

(2) For purposes of this section, attributable expenditures made prior to the applicable biennial primary or general election reporting period in consideration for goods to be delivered or services to be rendered solely during the biennial primary or general election reporting period shall be charged against the expenditure limits described in subsection (1) of this section in the reporting period during which the goods or services are delivered.

(3) A candidate described in subsection (1) of this section who has filed a declaration under this section stating that the candidate will not make attributable expenditures with respect to the biennial primary or general election in excess of the limits described in subsection (1) of this section shall not be bound by the declaration if any opposing candidate for the same nomination or office at the same election has not filed a declaration indicating that the candidate will limit expenditures or has filed the statement but has made expenditures exceeding the applicable limit.

NOTE: Clarifies references to election in (1)(a), (2) and (3).

SECTION 68. ORS 260.182 is amended to read:

260.182. (1) The declaration of limitation on expenditures filed under ORS 260.180 shall certify that with respect to the biennial primary or general election, the candidate and the principal campaign committee of the candidate will not incur attributable expenditures in excess of the applicable expenditure limit described in ORS 260.180.

(2) The secretary shall prescribe forms for the filing of the information required by this section. The forms shall also include:

(a) The name of the candidate by which the candidate is commonly known and by which the candidate transacts important private or official business.

(b) The mailing address of the residence of the candidate.

(3) The declaration shall be filed with the secretary:

(a) For the biennial primary election, not later than the date the candidate files a declaration of candidacy or a nominating petition; and

(b) For the general election:

(A) In the case of a candidate nominated by a major political party at the biennial primary election, not later than 40 days after the biennial primary election; or

(B) In the case of a candidate not nominated at the biennial primary election, at the same time that a certificate of nomination is filed.

NOTE: Clarifies references to election in (1) and (3).

SECTION 69. ORS 260.184 is amended to read:

260.184. (1) The Secretary of State shall include with the voters' pamphlet statement of each candidate described in ORS 260.180 for the biennial primary and general elections a statement indicating whether or not the candidate has agreed to limit expenditures under ORS 260.180.

(2) If a candidate described in ORS 260.180 has agreed to limit expenditures, but is not bound by the agreement because an opponent of the candidate for the same nomination or office at the same election has not agreed to limit expenditures or has exceeded the applicable expenditure limit, the statement shall indicate that the candidate has agreed to limit expenditures and that the candidate is not bound by the agreement because an opponent of the candidate for the same nomination or office at the same election has not agreed to limit expenditures or has exceeded the applicable spending limit.

(3) If the Secretary of State or the Attorney General finds under ORS 260.265 that a candidate described in ORS 260.180 filing a declaration of limitation on expenditures under ORS 260.180 has exceeded the applicable expenditure limit, at the next biennial primary and general elections at which the candidate is a candidate for nomination or election to an office for which a portrait or statement is included in the voters' pamphlet, the Secretary of State shall include with the portrait and information required under ORS 251.075 and 251.085 a statement in boldfaced type indicating that the candidate violated a previous declaration of limitation on expenditures under ORS 260.180. The statement required by this subsection shall identify the date of the election at which the candidate exceeded the applicable expenditure limit.

NOTE: Clarifies references to election in (1) and (3).

SECTION 70. ORS 260.265 is amended to read:

260.265. (1) With respect to the biennial primary and general elections, the secretary shall examine each contribution and expenditure statement of each candidate who filed a declaration of limitation on expenditures under ORS 260.180 to determine whether any candidate exceeded the applicable expenditure limit. If the secretary determines after any filing that a candidate has exceeded the applicable expenditure limit, the secretary shall send a notice of the secretary's determination to the candidate. If the secretary determines that the secretary or any candidate for nomination or election to an office for which the secretary is also a candidate for nomination or election has exceeded the applicable expenditure limit, the information shall be sent to the Attorney General, who shall be substituted for the secretary in any enforcement proceeding under this section and ORS 260.997. The notice also shall state that the candidate may appeal the secretary's or the Attorney General's determination as provided in this section.

(2) A hearing to contest the determination that a candidate has violated the declaration of limitation on expenditures as described in subsection (1) of this section and to consider circumstances in mitigation shall be held by the secretary or the Attorney General:

(a) Upon request of the candidate, if the request is made not later than the seventh day after the candidate received the notice sent under subsection (1) of this section; or

(b) Upon the secretary's or the Attorney General's own motion.

(3) A hearing under subsection (2) of this section shall be conducted, and the secretary's or the Attorney General's order may be appealed, in the manner provided for a contested case under ORS 183.310 to 183.550.

(4) The candidate need not appear in person at a hearing held under this section, but instead may submit written testimony and other evidence, subject to the penalty for false swearing, to the secretary for entry in the hearing record. Such documents must be received by the secretary not later than five business days before the day of the hearing.

NOTE: Clarifies reference to election in (1).

SECTION 71. ORS 274.825 is amended to read:

274.825. The State of Oregon reserves the right to permit reasonable nonconflicting uses, [(]including seismic surveys but excluding core hole drilling, on lands under lease[) so] as long as:

(1) Such uses do not unreasonably impair or interfere with operations of the lessee[,]; and

(2) Requirement is made that the permittee indemnify the lessee against any damage caused by such use.

NOTE: Restructures punctuation for clarity and conformance to legislative form and style; corrects syntax.

SECTION 72. ORS 279.015 is amended to read:

279.015. (1) Subject to the policies and provisions of ORS 279.005 and 279.007, all public contracts shall be based upon competitive bids or proposals except:

(a) Contracts made with other public agencies or the Federal Government[;].

(b) Contracts made with qualified nonprofit agencies providing employment opportunities for disabled individuals[;].

(d) A contract for products, services or supplies if the value of the contract is less than $5,000[;].

(e) Insurance and service contracts as provided for under ORS 414.115, 414.125, 414.135 and 414.145[;].

(f) Contracts for repair, maintenance, improvement or protection of property obtained by the Director of Veterans' Affairs under ORS 407.135 and 407.145 (1)[;].

(g)[(A)] Contracts between public agencies utilizing an existing solicitation or current requirement contract of one of the public agencies that is party to the contract for which:

[(i)] (A) The original contract met the requirements of this chapter;

[(ii)] (B) The contract allows other public agency usage of the contract; and

[(iii)] (C) The original contracting public agency concurs.

[(B) No written agreement under ORS chapter 190 is necessary under this paragraph if the arrangement is between or among units of local government; and]

(h)[(A)] If a project is competitively bid and all responsive bids from responsible bidders exceed the public agency's cost estimate, the public agency, in accordance with rules adopted by the public agency, may negotiate with the lowest responsive, responsible bidder, prior to awarding the contract, in order to solicit value engineering and other options to attempt to bring the project within the agency's cost estimate.

[(B)] A negotiation with the lowest responsive, responsible bidder pursuant to this paragraph shall not result in the award of the contract to that bidder if the scope of the project is significantly changed from the original bid proposal.

[(C)] Notwithstanding any other provision of law, the records of a bidder used in contract negotiation pursuant to this paragraph are not subject to public inspection until after the negotiated contract has been awarded or the negotiation process has been terminated.

(2) Subject to subsection (6)(b) of this section, the Director of the Oregon Department of Administrative Services or a local contract review board may exempt certain public contracts or classes of public contracts from the competitive bidding requirements of subsection (1) of this section upon approval of the following findings submitted by the public contracting agency seeking the exemption:

(a) It is unlikely that such exemption will encourage favoritism in the awarding of public contracts or substantially diminish competition for public contracts; and

(b) The awarding of public contracts pursuant to the exemption will result in substantial cost savings to the public contracting agency. In making such finding, the director or board may consider the type, cost, amount of the contract, number of persons available to bid and such other factors as may be deemed appropriate.

(3)(a) Before final adoption of the findings required by subsection (2) of this section exempting a contract for a public improvement from the requirement of competitive bidding, a public agency shall hold a public hearing.

(b) Notification of the public hearing shall be published in at least one trade newspaper of general statewide circulation a minimum of 14 days prior to the hearing.

(c) The notice shall state that the public hearing is for the purpose of taking comments on the agency's draft findings for an exemption from the competitive bidding requirement. At the time of the notice, copies of the draft findings shall be made available to the public. At the option of the public agency, the notice may describe the process by which the findings are finally adopted and may indicate the opportunity for any further public comment.

(d) At the public hearing, the public agency shall offer an opportunity for any interested party to appear and present comment.

(e) If a public agency is required to act promptly due to circumstances beyond its control that do not constitute an emergency, notification of the public hearing can be published simultaneously with the agency's solicitation of contractors for the alternative public contracting method, as long as responses to the solicitation are due at least five days after the meeting and approval of the findings.

(4) A public contract also may be exempted from the requirements of subsection (1) of this section if:

(a) Emergency conditions require prompt execution of the contract; or

(b) In case of sale of surplus property by a public agency, the number, value and nature of the items to be sold make it probable that the cost of conducting a sale by competitive bidding will be such that a liquidation sale will result in substantially greater net revenue to the public agency.

(5) The director or board shall adopt rules allowing the governing body of a public agency and the officer of a public agency for contracts under $50,000 to declare that an emergency exists and establishing procedures for determining when the conditions in subsection (4)(a) of this section are present. The rules shall prescribe that if an emergency is declared, any contract awarded under this subsection and subsection (4)(a) of this section must be awarded within 60 days following declaration of the emergency, unless the director or board grants an extension.

(6) In granting exemptions pursuant to subsection (2)(a) and (b) of this section, the director or board shall:

(a) Where appropriate, direct the use of alternate contracting and purchasing practices that take account of market realities and modern or innovative contracting and purchasing methods, which are also consistent with the public policy of encouraging competition.

(b) Require and approve or disapprove written findings by the public contracting agency that support the awarding of a particular public contract or a class of public contracts, without the competitive requirements of subsection (1) of this section. The findings must show that the exemption of a contract or class of contracts complies with the requirements of subsection (2)(a) and (b) of this section.

(7) No written agreement under ORS chapter 190 is necessary under subsection (1)(g) of this section if the arrangement is between or among units of local government.

NOTE: Restructures (1) for clarity and conformance to legislative form and style; corrects syntax.

SECTION 73. ORS 279.057 is amended to read:

279.057. (1) A contract entered into by a public agency for the consulting services of registered professional engineers, registered architects or registered professional land surveyors is a personal service contract.

(2) A public agency shall select consultants described in subsection (1) of this section on the basis of qualifications for the type of professional service required. A public agency may solicit or use pricing policies and proposals or other pricing information to determine consultant compensation only after the public agency has selected a candidate under subsection (3) of this section.

(3) Subject to the requirements of subsection (2) of this section, the procedures that a public agency creates for the screening and selection of consultants and the selection of a candidate under this section shall be within the sole discretion of the public agency and may be adjusted to accommodate the public agency's scope, schedule and budget objectives for a particular project. Adjustments to accommodate an agency's objectives may include provision for the direct appointment of a consultant if the value of the project does not exceed a threshold amount as determined by the agency. Screening and selection procedures may include a consideration of each candidate's:

(a) Specialized experience, capabilities and technical competence that may be demonstrated by the proposed approach and methodology to meet the project requirements;

(b) Resources available to perform the work, including any specialized services, within the applicable time limits;

(c) Record of past performance, including but not limited to price and cost data from previous projects, quality of work, ability to meet schedules, cost control and contract administration;

(d) Ownership status and employment practices regarding women, minorities and emerging small businesses or historically underutilized businesses;

(e) Availability to the project locale;

(f) Familiarity with the project locale; and

(g) Proposed project management techniques.

(4) The public agency and the selected candidate shall mutually discuss and refine the scope of services for the project and shall negotiate conditions, including but not limited to compensation level and performance schedule, based on the scope of services. The compensation level paid must be reasonable and fair to the public agency as determined solely by the public agency. Authority to negotiate a contract under this section does not supersede any provision of ORS 279.316[,] or 279.712 [or 291.021].

(5) If the public agency and the selected candidate are unable for any reason to negotiate a contract at a compensation level that is reasonable and fair to the public agency, the public agency shall, either orally or in writing, formally terminate negotiations with the selected candidate. The public agency may then negotiate with another candidate. The negotiation process may continue in this manner through successive candidates until an agreement is reached or the agency terminates the consultant contracting process.

(6) Notwithstanding ORS 279.011, this section applies only if the public agency personal service contract is issued by an agency of the State of Oregon and not by an agency of any political subdivision thereof or any public body created by intergovernmental agreement.

NOTE: Deletes reference to repealed statute in (4).

SECTION 74. Notwithstanding any other provision of law, ORS 285A.325 shall not be considered to have been added to or made a part of ORS chapter 307 for the purpose of statutory compilation or for the application of definitions, penalties or administrative provisions applicable to statute sections in that chapter.

NOTE: Removes section from inappropriate series.

SECTION 75. ORS 291.445 is amended to read:

291.445. (1) Before July 1 of each fiscal year, the Oregon Department of Administrative Services shall request from the appropriate state agency a certificate as prescribed in this section. The request shall be made by letter to the agency.

(2) Each state agency authorized to issue general obligation bonds that are ordinarily to be repaid from other than General Fund appropriations shall, on or before August 15 of each fiscal year:

(a) Certify to the Director of the Oregon Department of Administrative Services that the amounts available or that will become available during the current year to the bond program debt service fund to pay bond principal and interest that has accrued or will accrue during the current year are sufficient and will be sufficient to pay bond program principal and interest scheduled for payment during the current year; or

(b) Certify to the Director of the Oregon Department of Administrative Services that the amounts available or that will become available during the current year to the bond program debt service fund will not be sufficient to pay bond program principal and interest scheduled for payment during the current year. A certificate issued under this paragraph shall specify the amount of the anticipated current year deficit. The Director of the Oregon Department of Administrative Services shall review and confirm the correctness of each certification made under this paragraph.

(3) On or before August 15 of each fiscal year, the Accounting Division of the Oregon Department of Administrative Services, for each general obligation bond program in which the bond principal and interest is ordinarily to be repaid from General Fund appropriations shall:

(a) Certify to the Director of the Oregon Department of Administrative Services that the amounts available or that will become available during the current year from General Fund appropriations to defray program bond principal and interest that has accrued or will accrue during the current year are sufficient and will be sufficient to pay program bond principal and interest scheduled for payment during the current year; or

(b) Certify to the Director of the Oregon Department of Administrative Services that the amounts available or that will become available during the current year from General Fund appropriations will not be sufficient to pay program bond principal and interest scheduled for payment during the current year. A certificate issued under this paragraph shall specify the amount of the anticipated current year deficit.

(4)(a) If a deficit in funds available to pay principal and interest in any general obligation bond program is certified and confirmed under subsection (2) or certified under subsection (3) of this section, the amount of the deficit, together with any deficit that is certified for any other general obligation bond program shall upon certification constitute a state tax levy on property that shall be apportioned among and charged to the several counties in that proportion which the total assessed value of all the taxable property in each county bears to the total assessed value of all the taxable property of the state as equalized.

(b) If any agency fails to make the certification under subsection (2) or (3) of this section with respect to any general obligation bond fund program, the Oregon Department of Administrative Services shall determine the amount of revenue and other funds that are available and the amount of taxes, if any, that should be levied in addition to the revenues and funds, to pay bond principal and interest under the program for the fiscal year in question. The additional amount so determined shall thereupon constitute a state tax levy on property that shall be apportioned, certified, collected and distributed as if determined and certified as a deficit by the agency. The Oregon Department of Administrative Services shall charge the agency for cost recovery for time spent on that agency's behalf.

(5) Immediately after the department has determined the amount of a state tax levy on property in accordance with subsection (4) of this section, a certificate of levy, signed by the director of the department, shall be filed in the office of the department. If no state levy is required for the fiscal or tax year, a certificate so stating and signed by the director shall be filed in the office of the department.

(6) If, for any reason, after the close of any regular biennial session of the Legislative Assembly, it becomes necessary to reduce General Fund appropriations, General Fund appropriations for a debt service fund of a general obligation bond program described under subsection (3) of this section shall not be reduced.

(7) For purposes of this section:

(a) State agencies that are authorized to issue general obligation bonds ordinarily to be repaid from other than General Fund appropriations include but are not limited to:

(A) The Department of Veterans' Affairs, as authorized by Article XI-A of the Oregon Constitution and ORS chapter 407 ([veteran] veterans loans).

(B) The State Board of Higher Education, as authorized by Article XI-F(1) of the Oregon Constitution and ORS 351.350 (building projects).

(C) The Department of Environmental Quality, as authorized by Article XI-H of the Oregon Constitution and ORS 468.195 to 468.260 (pollution control).

(D) The Water Resources Commission and the Water Resources Director, as authorized by Article XI-I(1) of the Oregon Constitution and ORS 541.700 to 541.855 (water development).

(E) The Housing Agency, as authorized by Article XI-I(2) of the Oregon Constitution and ORS 456.515 to 456.725 and 458.505 to 458.515 (housing).

(F) The administrator of the Office of Energy, as authorized by Article XI-J of the Oregon Constitution and ORS 470.220 to 470.290 (small scale energy projects).

(G) Other agencies as required by the Oregon Department of Administrative Services by rule adopted using the criterion of this subsection.

(b) Each agency authorized to issue general obligation bonds that are ordinarily to be repaid from other than General Fund appropriations shall determine the amount of revenues or other funds that are available and the amount of taxes, if any, that should be levied for the ensuing year in the manner required under rules adopted by the Oregon Department of Administrative Services and make the certification required under subsection (2) of this section.

(8)(a) State agencies that are authorized to issue general obligation bonds that are ordinarily to be repaid from General Fund appropriations include but are not limited to:

(A) The State Board of Forestry and the State Forester, as authorized by Article XI-E of the Oregon Constitution and ORS 530.210 to 530.280 (state reforestation).

(B) The State Board of Higher Education, as authorized by Article XI-G of the Oregon Constitution and ORS 351.345 (higher education and community colleges).

(C) Other agencies as required by the Oregon Department of Administrative Services by rule adopted using the criterion of this subsection.

(b) Each agency authorized to issue general obligation bonds ordinarily to be repaid from General Fund appropriations shall furnish any data required by the Oregon Department of Administrative Services to determine the amount of revenues or other funds that are available and the amount of taxes, if any, that should be levied for the ensuing year and the Accounting Division of the Oregon Department of Administrative Services shall make the determination for purposes of the making of the certification required under subsection (3) of this section.

NOTE: Corrects terminology in (7)(a)(A).

SECTION 76. ORS 293.495 is amended to read:

293.495. (1) Payment authorized by ORS 293.490 may be made only upon receipt by the State Treasurer or other state officer authorized to disburse moneys due the decedent of an affidavit from one of the survivors in a group of survivors listed in ORS 293.490 (3), that:

(a) The decedent died testate or intestate, as the case may be.

(b) The estate of the decedent will not be probated.

(c) The aggregate sums due the decedent from the State of Oregon, except for salary or wages, do not exceed the principal sum of [$1,000] $10,000.

(d) The relationship of the claimants to the decedent is described in ORS 293.490 (3), specifying the particular relationship of each claimant; that there is no other survivor in the group that includes the claimants; and that there is no survivor in any group preceding the group that includes the claimants as listed in ORS 293.490 (3).

(e) The expenses of last illness and funeral of the decedent will be paid out of the moneys so paid by the State Treasurer or other disbursing officer, to the full amount thereof, if necessary.

(2) The State Treasurer or other officer making disbursement shall be under no obligation to determine the truth of the affidavit. The payment of the amount due such decedent, made in good faith to the claimants, shall constitute a full acquittance and release of the State Treasurer or other disbursing officer for the amount so paid.

(3) In the event that a warrant, check or order has been lost, stolen or destroyed, the proper survivors, as specified in ORS 293.490, may obtain payment of the amount thereof by filing with the State Treasurer or other disbursing officer a written statement in accordance with ORS 293.475.

NOTE: Conforms sum in (1)(c) with requirement in 293.490 (1).

SECTION 77. ORS 293.835 is amended to read:

293.835. As used in ORS 293.830 to 293.870:

(1) "Business arrangements" means projects, ventures, undertakings, contractual relations or other efforts requiring ongoing or periodic performance by either or both parties.

(2) "Business entity" means any organization, firm, association, corporation, partnership or venture, or its subsidiary or affiliate, which exists for profit-making purposes or otherwise to secure economic advantage.

(3) "Business operations" means the maintenance of equipment, facilities, personnel or any other apparatus of business or commerce, including the ownership or possession of real or personal property located in South Africa.

(4) "Directly investing" means owning 10 percent or more of one or more business entities in South Africa, as identified by the Investor Responsibility Research Center.

(5) "Investment" or "invest" means the commitment of funds or other assets to a business entity, including a loan or other extension of credit made to that entity, or security given for the other assets to that business entity, or the beneficial ownership or control of a share or interest in that business entity, or of a bond or other debt instrument issued by that business entity.

(6) "South Africa" means the Republic of South Africa, any territory under the administration, legal or illegal, of South Africa and the "Bantustans" or "homelands."

(7) "State moneys" means all moneys, bonds and securities in possession of or collected by any state agency.

(8) "State trust fund" means any investment fund that is held in trust by this state.

(9) "Strategic products or services" means articles designated as arms, ammunition and implements of war, as defined in [the United States Code of Federal Regulations] 22 C.F.R. part 121, and data processing equipment and computers sold for military or police use in the Republic of South Africa.

(10) "Subject investment funds" means:

(a) The Public Employees Retirement Fund described in ORS 238.660;

(b) The Industrial Accident Fund described in ORS 656.632;

(d) The Oregon War Veterans' Fund;

(e) Investment funds of the State Board of Higher Education lawfully available for investments or reinvestments by the Oregon Investment Council or State Treasurer; or

(f) Any funds in the custody of the Oregon Investment Council or State Treasurer that are not required to meet short-term demands.

NOTE: Corrects C.F.R. citation form in (9).

SECTION 78. ORS 315.259 is amended to read:

315.259. (1) The tax credits provided under this section may be referred to as the First Break Program.

(2) As used in this section:

(a) "Certificate" means a certificate issued by a community-based organization under subsection (6) of this section that certifies an individual as a qualified youth.

(b) "Community-based organization" means an organization designated by the Employment Department by rule as an organization authorized to certify individuals as qualified youths for purposes of this section, including all local commissions [for] on children and families and the Youth Employment and Empowerment Coalition.

(d) "Hiring date" means the date on which the individual begins work for the first employer after becoming a qualified youth.

(e) "Qualified youth" or "qualified youth employee" means an individual who is 14 to 17 years of age on the hiring date and who has received a certificate pursuant to subsection (6) of this section from a community-based organization identifying the youth as eligible to participate in the First Break Program because the youth is gang-involved or gang-affected, or at risk of becoming gang-involved or gang-affected, according to rules adopted by the Employment Department.

(f) "Sustained employment" means employment:

(A) Of at least six months during the 12-month period following the hiring date; and

(B) By three or fewer employers during the 12-month period following the hiring date.

(g) "Training" means any type of vocational, academic or rehabilitative training provided by an employer, or furnished at the expense of an employer, to a qualified youth employee after 12 months of continuous employment by the employer, and may be further defined by the Employment Department by rule.

(3)(a) A credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation that is an employer, under ORS chapter 317 or 318) is allowed to a resident employer, based upon wages actually paid by the employer to a qualified youth employee.

(b) The credit allowed under this subsection shall be allowed for the tax year in which ends the 12-month period following the hiring date of the qualified youth employee. Nothing in this paragraph shall be interpreted to require the employer to employ the qualified youth for the entire 12-month period in order to be eligible for the credit under this subsection.

(4)(a) An additional credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation that is an employer, under ORS chapter 317 or 318) is allowed to a resident employer, based upon wages actually paid by the employer to a qualified youth employee, if all of the following apply:

(A) The employer has applied the credit provided under subsection (3) of this section against taxes imposed for the tax year immediately preceding the current tax year.

(B) The qualified youth employee was continuously employed by the employer for at least 18 months after the hiring date.

(i) The community-based organization issues a statement to the employer that the qualified youth employee was enrolled in a regularly scheduled academic or vocational program for at least six months during the period for which a credit under this subsection is sought; or

(ii) The employer:

(I) Incurred at least $400 in expenses providing training to the qualified youth employee; or

(II) Directly provided at least 80 hours of training to the qualified youth employee.

(b) The credit allowed under this subsection shall be allowed for the tax year in which ends the 24-month period following the hiring date of the qualified youth employee. Nothing in this paragraph shall be interpreted to require the employer to employ the qualified youth for the entire 24-month period in order to be eligible for the credit under this subsection.

(5) The amount of the credit provided under subsection (3) or (4) of this section shall be equal to the lesser of:

(a) $1,000;

(b) The amount of credit provided for in paragraph (a) of this subsection that has not already been taken into account by a previous employer of the qualified youth employee; or

(A) In the case of a credit under subsection (3) of this section, the 12-month period following the qualified youth employee's hiring date; or

(B) In the case of a credit under subsection (4) of this section, the final 12 months of the 24-month period following the qualified youth employee's hiring date.

(6)(a) The Employment Department shall authorize each community-based organization to issue only a fixed number of certificates, the amount to be determined by the Employment Department, but not to exceed 1,500 certificates.

(b) Each certificate is valid only for a two-year period from the date it is issued to a qualified youth by a community-based organization.

(c) A community-based organization shall track the use of each certificate issued by it to a qualified youth and, if the youth is employed by more than one employer during the time the certificate is issued, shall calculate the amount of maximum credit allowable under subsection (5) of this section and shall inform each subsequent employer of the maximum amount of credit under this section to which the employer may be entitled.

(d) If the community-based organization determines that the qualified youth is unable or unwilling to find or maintain sustained employment, the community-based organization shall cancel the certificate and inform the Employment Department of the cancellation. Upon cancellation of a certificate, the Employment Department may authorize any community-based organization to issue a new certificate to a qualified youth, provided that the total number of outstanding certificates and unissued certificates authorized to be issued does not exceed 1,500.

(e) If the community-based organization determines that all of the employers of a qualified youth are collectively entitled to 80 percent or more of the tax credit provided under this section at the time the qualified youth becomes unemployed, the community-based organization shall withdraw the certificate, and any subsequent employer shall not be entitled to a credit under this section for employment of the qualified youth. A certificate that is withdrawn under this paragraph shall not be reissued.

(f) No certificate may be issued under this subsection on or after January 1, 2001.

(7) Wages taken into account for purposes of subsection (5) of this section shall not include any amount paid by the employer to an individual for whom the employer receives federal funds for on-the-job training of the individual.

(8) Only one employer at a time shall be eligible for the credit provided under this section for the employment of a qualified youth employee.

(9)(a) A nonresident shall be allowed the credit provided under subsection (3) or (4) of this section computed in the same manner and subject to the same limitations as the credit allowed to a resident of this state. However, the credit shall be prorated using the proportion provided in ORS 316.117.

(b) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer's taxable year under ORS 314.440, the credit allowed by subsection (3) or (4) of this section shall be prorated or computed in a manner consistent with ORS 314.085.

(c) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by subsection (3) or (4) of this section shall be determined in a manner consistent with ORS 316.117.

(10) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer's tax liability for the next succeeding tax year. Any credit remaining unused in such next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.

(11)(a) The credit allowed under subsection (3) or (4) of this section is in addition to any deduction otherwise allowable under ORS chapter 316, 317 or 318.

(b) No other credit allowed under this chapter or ORS chapter 316, 317 or 318 shall be based upon all or any portion of amounts upon which the credit allowed under subsection (3) or (4) of this section is based.

(12) An employer receiving a credit under subsection (3) or (4) of this section shall maintain records for each qualified youth employee establishing that the employee was certified by a community-based organization as a qualified youth on or before the hiring date and, if applicable, that the employee was enrolled in a regularly scheduled academic or vocational program for a period of four years after the tax year in which a credit provided under subsection (3) or (4) of this section is taken.

(13) The Employment Department shall, on or before January 1, 1998, adopt rules that:

(a) Provide the criteria by which a youth may be identified as eligible to participate in the First Break Program because the youth is gang-involved, gang-affected or at risk of becoming gang-involved or gang-affected.

(b) Designate community-based organizations that may issue the certificates described in subsection (6) of this section, including all local commissions [for] on children and families and the Youth Employment and Empowerment Coalition.

NOTE: Corrects word choice in (2)(b) and (13)(b).

SECTION 79. ORS 319.730 is amended to read:

319.730. (1) Whenever any user is delinquent in the payment of any obligation imposed under ORS 319.510 to 319.880, the Department of Transportation may proceed to collect the amount due from the user in the manner prescribed in this section.

(2) The department shall seize any motor vehicle subject to the lien provided for by ORS 319.700 and thereafter sell it at public auction to pay such obligation and any and all costs that may have been incurred on account of the seizure and sale.

(3) Notice of the intended sale and the time and place thereof shall be given to the delinquent user and to all persons appearing of record to have an interest in the motor vehicle. The notice shall be given in writing at least 10 days before the date set for the sale by enclosing it in an envelope addressed to the user at the address as it appears in the records of the department and, in the case of any person appearing of record to have an interest in the motor vehicle, addressed to the person at the last-known residence or place of business, and depositing the envelope in the United States mail, postage prepaid. In addition, the notice shall be published [for] at least three times, the first of which shall be not less than 10 days before the date set for the sale, in a newspaper of general circulation published in the county in which the motor vehicle seized is to be sold. If there is no newspaper of general circulation in the county, the notice shall be posted in three public places in the county for such period of 10 days.

(4) The notice shall contain a description of the motor vehicle to be sold, together with a statement of the amount due under ORS 319.510 to 319.880, the name of the user and the further statement that unless such amount is paid before the time fixed in the notice the motor vehicle will be sold in accordance with law and such notice.

(5) The department shall then proceed to sell the motor vehicle in accordance with the law and the notice, and shall deliver to the purchaser a bill of sale which shall vest title in the purchaser. If upon any such sale the moneys received exceed the amount due to the state under ORS 319.510 to 319.880 from the delinquent user, the excess shall be returned to the user and the receipt obtained therefor. If any person having an interest in or lien upon the motor vehicle has filed with the department prior to the sale notice of such interest or lien, the department shall withhold payment of any such excess to the user pending a determination of the rights of the respective parties thereto by a court of competent jurisdiction. If for any reason the receipt of the user shall not be available, the department shall deposit the excess with the State Treasurer as trustee for the user[,] or for the heirs, successors or assigns of the user.

NOTE: Corrects syntax in (3) and (5).

SECTION 80. ORS 329.155 is amended to read:

329.155. (1) State agencies that administer education programs and other programs [providing] that provide services [to] for children and families, as identified in ORS 417.315 (4), shall:

(a) Evaluate the effectiveness of the program as related to the principles stated in ORS 329.025 and 417.305 in the earliest stages of the budget process;

(b) Articulate ways in which the program is an effective component of agency and state priorities, goals and strategies, such as those developed by the Oregon Progress Board, or to relevant research and professional standards;

(d) Utilize the information generated by applicable state advisory groups and by the local planning process administered by the State Commission on Children and Families in the program assessment of needs and decisions as to service delivery in a given community; and

(e) Identify barriers to improving program capability to serve the needs of young children and related recommendations, if any.

(2) The processes listed in subsection (1) of this section are for the purpose of generating interagency coordination so as to serve to the greatest extent possible young children and their families in a comprehensive and developmentally appropriate fashion. The information generated by these processes shall be considered as a contribution to subsequent budget decisions by state and local agencies, the Oregon Department of Administrative Services and Legislative Assembly, and as a contribution to the planning tasks of the State Commission on Children and Families and the coordinating tasks of the Oregon Coordinating Council for Children and Families.

NOTE: Corrects syntax in (1).

SECTION 81. ORS 329.237 is amended to read:

329.237. (1) The Department of Education shall administer the Early Childhood Improvement Program to assist public school districts in providing programs designed to improve educational services for children enrolled in kindergarten through grade three. Programs shall be based on research and proven successful practices.

(2) The programs shall include the following planned components:

(a) Targeted services for "at-risk" children that may be in cooperation with local commissions on children and families to provide services to families, which may include but are not limited to remedial and alternative academic programs, child care, parent participation and child development services.

(b) Efforts to improve the kindergarten through third grade curriculum and educational practices so that they:

(A) Are consistent with research findings on how children learn;

(B) Are sensitive to individual differences such as cultural background and learning styles; and

(C) Encourage parent participation. Such efforts may include but are not limited to adapting curricula and training administrators and other staff in early childhood education and child development.

(c) Comprehensive education, health care and social services for children to be provided through interagency agreements among school districts, health care and social service providers.

(d) Evaluation of programs by goals set by the district for the program.

(e) Planned transition from prekindergarten programs to kindergarten through grade three.

(3) In addition to the components listed in subsection [(4)] (2) of this section, Early Childhood Improvement Programs may include but are not limited to the following components:

(a) Extended day services for school age children who need care or enrichment opportunities; and

(b) Programs designed to improve the adult to child ratios in kindergarten through grade three.

(4) The district application shall include:

(a) Plans developed by 21st Century Schools Councils at the school building level as described in ORS 329.704; and

(b) Demonstrated consistency with the local assessments and plans resulting from ORS 417.705 to 417.790 and 419A.170.

(5) Funds shall be available to districts with approved applications on a per child basis for the district's children enrolled in kindergarten through grade three. Funds not allocated shall be prorated to the districts with approved applications not later than the end of the fiscal year for which the allocation is made.

(6) If the district plan proposes use of innovative instructional materials, the State Board of Education, pursuant to ORS 337.050, may waive the use of such instructional materials as might otherwise have been required.

NOTE: Corrects internal reference in (3).

SECTION 82. ORS 329.885 is amended to read:

329.885. (1) It is the policy of the State of Oregon to encourage educational institutions and businesses to develop, in partnership, models for programs related to school-to-work transitions and work experience internships directed by the Oregon Educational Act for the 21st Century as described in ORS 329.005 to 329.165, 329.185, 329.445, 329.850 and 329.855.

(2) From funds available, the Department of Education may allocate to any educational service district, school district, individual secondary school or community college grants to develop programs such as those described in subsection (1) of this section.

(3) To receive a grant to operate a program described in subsection (1) of this section, a business shall demonstrate to the satisfaction of the department that the program shall:

(a) Identify groups that have been traditionally underrepresented in the programs and internships, particularly in health care, business and high technology employment positions.

(b) Encourage students who belong to groups identified in paragraph (a) of this subsection, particularly students in secondary schools and community colleges, to apply for consideration and acceptance into a model program described in subsection (1) of this section.

(c) Promote an awareness of career opportunities in the school-to-work transition and the work experience internships among students sufficiently early in their educational careers to permit and encourage students to apply for the model programs.

(d) Promote cooperation among businesses, school districts and community colleges in working toward the goals of the Oregon Educational Act for the 21st Century.

(e) Develop academic skills, attitudes and self-confidence necessary to allow students to succeed in the work environment, including attitudes of curiosity and perseverance and the feelings of positive self-worth that result from sustained effort.

(f) Provide a variety of experiences that reinforce the attitudes needed for success in the business world.

(4) The department shall direct fund recipients to adopt rules establishing standards for approved programs under this section, including criteria for eligibility of organizations to receive grants, and standards to determine the amount of grants.

(5) The department may seek and receive gifts, grants, endowments and other funds from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the school-to-work transition and the work experience internship programs and may [expand] expend the same or any income therefrom according to the terms of such gifts, grants, endowments or other funds.

NOTE: Corrects word choice in (5).

SECTION 83. ORS 332.432 is amended to read:

332.432. (1) As used in this section, "remedial care" includes services rendered by a person licensed to practice one or more of the healing arts within the scope of the license of the person or any other remedial care recognized under the laws of this state.

[(1)] (2) Any district school board may enter into contracts of insurance or medical and hospital service contracts covering [their] its employees for remedial care and hospital benefits. In addition, the board may operate a self-insurance program to provide [their] its employees with remedial care and hospital benefits. Failure to procure or operate a program of hospital-medical insurance shall not be construed as negligence or lack of diligence on the part of the district school board or members thereof.

[(2) As used in this section "remedial care" includes services rendered by a person licensed to practice one or more of the healing arts within the scope of the license of the person or any other remedial care recognized under the laws of the state.]

(3) The school district may agree to pay none, part or all of the premiums on policies of insurance or service contracts entered into pursuant to this section.

(4) No premium or other periodic charge on any insurance, medical or hospital service contract shall be paid unless the insurer or hospital association issuing such policy or contract is by law authorized to transact business as an insurance company or hospital association in this state.

(5) The board may negotiate more than one contract with one or more insurance companies or hospital associations if necessary to obtain optimum coverage at minimum cost.

NOTE: Corrects word choice in (2); restructures statute for conformance to legislative form and style.

SECTION 84. ORS 336.631 is amended to read:

336.631. (1) The following laws shall apply to private alternative programs that are registered with the Department of Education under ORS 336.635 in the same manner as the [law applies] laws apply to school districts and public schools:

(a) Federal law;

(b) ORS 181.539, 326.603, 326.607 and 342.232 (criminal records checks);

(d) ORS 659.150 and 659.155 (discrimination);

(e) Health and safety statutes and rules; and

(f) Any statute, rule or school district policy that is specified in a contract between the school district board and the private alternative program.

(2) Prior to placement of a student in a private alternative program, the resident district shall determine whether the proposed placement best serves the student's educational needs and interests within the district and state academic standards.

(3) A school district board shall evaluate and approve annually each registered private alternative program that provides educational services to students enrolled in the district to ensure compliance with subsection (1) of this section and the provisions of any contract between the district and the program, and to ensure that the program enhances the district's ability to achieve district and state academic standards.

(4) Contracts between a school district and a private alternative program shall be included in the assessment of effectiveness provided for in ORS 329.085.

NOTE: Corrects word choice and grammar in (1).

SECTION 85. ORS 339.030 is amended to read:

339.030. (1) In the following cases, children shall not be required to attend public full-time schools:

[(1)] (a) Children being taught in a private or parochial school in the courses of study usually taught in grades 1 through 12 in the public schools and in attendance for a period equivalent to that required of children attending public schools in the 1994-1995 school year.

[(2)] (b) Children proving to the satisfaction of the district school board that they have acquired equivalent knowledge to that acquired in the courses of study taught in grades 1 through 12 in the public schools.

[(3)] (c) Children being taught for a period equivalent to that required of children attending public schools by a parent or private teacher the courses of study usually taught in grades 1 through 12 in the public school.

[(4)] (d) Children excluded from attendance as provided by law.

[(5)] (2) The State Board of Education by rule shall establish procedures whereby, on a semiannual basis, an exemption from compulsory attendance may be granted to the parent or legal guardian of any child 16 or 17 years of age who is lawfully employed full-time, lawfully employed part-time and enrolled in school, or enrolled in a community college or other state-registered alternative education program. Such exemption also may be granted to any child who is an emancipated minor or who has initiated the procedure for emancipation under ORS 419B.550 to 419B.558.

NOTE: Corrects structure of statute.

SECTION 86. ORS 339.250 is amended to read:

339.250. (1) Public school students shall comply with rules for the government of such schools, pursue the prescribed course of study, use the prescribed textbooks and submit to the teachers' authority.

(2) Pursuant to the written policies of a district school board, an individual who is a teacher, administrator, school employee or school volunteer may use reasonable physical force upon a student when and to the extent the individual reasonably believes it necessary to maintain order in the school or classroom or at a school activity or event, whether or not it is held on school property. The district school board shall adopt written policies to implement this subsection and shall inform such individuals of the existence and content of these policies.

(3) The district school board may authorize the discipline, suspension or expulsion of any refractory student and may suspend or expel any student who assaults or menaces a school employee or another student. The age of a student and the past pattern of behavior of a student shall be considered prior to a suspension or expulsion of a student. As used in this subsection "menace" means by word or conduct the student intentionally attempts to place a school employee or another student in fear of imminent serious physical injury.

(4) Willful disobedience, willful damage or injury to school property, use of threats, intimidation, harassment or coercion against any fellow student or school employee, open defiance of a teacher's authority or use or display of profane or obscene language is sufficient cause for discipline, suspension or expulsion from school.

(5) Expulsion of a student shall not extend beyond one calendar year and suspension shall not extend beyond 10 school days.

(6)(a) Notwithstanding subsection (5) of this section, a school district shall have a policy that requires the expulsion from school for a period of not less than one year of any student who is determined to have:

(A) Brought a weapon to a school, to school property under the jurisdiction of the district or to an activity under the jurisdiction of the school district;

(B) Possessed, concealed or used a weapon in a school or on school property or at an activity under the jurisdiction of the district; or

(C) Brought to or possessed, concealed or used a weapon at an interscholastic activity administered by a voluntary organization approved by the State Board of Education under ORS 339.430.

(b) The policy shall allow an exception for courses, programs and activities approved by the school district that are conducted on school property, including but not limited to hunter safety courses, Reserve Officer Training Corps programs, weapons-related sports or weapons-related vocational courses. In addition, the State Board of Education may adopt by rule additional exceptions to be included in school district policies.

(d) The policy shall require a referral to the appropriate law enforcement agency of any student who is expelled under this subsection.

(e) For purposes of this subsection, "weapon" includes a:

(A) "Firearm" as defined in 18 U.S.C. 921;

(B) "Dangerous weapon" as defined in ORS 161.015; or

(7) The Department of Education shall collect data on any expulsions required pursuant to subsection (6) of this section including:

(a) The name of each school;

(b) The number students expelled from each school; and

(8) Notwithstanding ORS 336.010, a school district may require a student to attend school during nonschool hours as an alternative to suspension.

(9) Unless a student is under expulsion for an offense that constitutes a violation of a school district policy adopted pursuant to subsection (6) of this section, a school district board shall consider and propose to the student prior to expulsion or leaving school, and document to the parent, legal guardian or person in parental relationship, alternative programs of instruction or instruction combined with counseling for the student that are appropriate and accessible to the student in the following circumstances:

(a) When a student is expelled pursuant to subsection (4) of this section;

(b) Following a second or subsequent occurrence within any three-year period of a severe disciplinary problem with a student;

(c) When it has been determined that a student's attendance pattern is so erratic that the student is not benefiting from the educational program; or

(d) When a parent or legal guardian applies for a student's exemption from compulsory attendance on a semiannual basis as provided in ORS 339.030 [(5)] (2).

(10) A school district board may consider and propose to a student who is under expulsion or to a student prior to expulsion for an offense that constitutes a violation of a school district policy adopted pursuant to subsection (6) of this section, and document to the parent, legal guardian or person in parental relationship, alternative programs of instruction or instruction combined with counseling for the student that are appropriate and accessible to the student.

(11) Information on alternative programs provided under subsections (9) and (10) of this section shall be in writing. The information need not be given to the student and the parent, guardian or person in parental relationship more often than once every six months unless the information has changed because of the availability of new programs.

(12)(a) The authority to discipline a student does not authorize the infliction of corporal punishment. Every resolution, bylaw, rule, ordinance or other act of a district school board or of the Department of Education that permits or authorizes the infliction of corporal punishment upon a student is void and unenforceable.

(b) As used in this subsection, "corporal punishment" means the willful infliction of, or willfully causing the infliction of, physical pain on a student.

(A) The use of physical force authorized by ORS 161.205 for the reasons specified therein; or

(B) Physical pain or discomfort resulting from or caused by participation in athletic competition or other such recreational activity, voluntarily engaged in by a student.

NOTE: Corrects ORS reference in (9)(d). See 339.030 as amended by section 85 of this 1999 Act.

SECTION 87. ORS 339.505 is amended to read:

339.505. (1) For purposes of the student accounting system required by ORS 339.515, the following definitions shall be used:

(a) "Graduate" means an individual who has not reached 21 years of age or whose 21st birthday occurs during the current school year; has met all state requirements and local requirements for attendance, competence and units of credit for high school; and has received one of the following:

(A) A high school diploma issued by a school district.

(B) An adult high school diploma issued by an authorized community college.

(b) "School dropout" means an individual who:

(A) Has enrolled for the current school year, or was enrolled in the previous school year and did not attend during the current school year;

(B) Is not a high school graduate;

(D) Has withdrawn from school.

(A) Student has transferred to another educational system or institution that leads to graduation and the school district has received a written request for the transfer of the student's records or transcripts.

(B) Student is deceased.

(D) Student is being taught by a private teacher or parent pursuant to ORS 339.030 [(3)] (1)(c).

(E) Student is participating in a Department of Education approved public or private education program, including an alternative education program, a Department of Human Resources facility or a hospital education program.

(F) Student is temporarily residing in a shelter care program certified by the Oregon Youth Authority or the State Office for Services to Children and Families or in a juvenile detention facility.

(G) Student is enrolled in a foreign exchange program.

(H) Student is temporarily absent from school because of suspension, a family emergency, or severe health or medical problems which prohibit the student from attending school.

(I) Student has received a General Educational Development (GED) certificate.

(2) The State Board of Education shall prescribe by rule when an unexplained absence becomes withdrawal, when a student is considered enrolled in school, acceptable alternative programs under ORS 336.615 to 336.665 and the standards for excused absences for purposes of ORS 339.065 for family emergencies and health and medical problems.

NOTE: Corrects ORS reference in (1)(c)(D). See 339.030 as amended by section 85 of this 1999 Act.

SECTION 88. ORS 341.305 is amended to read:

341.305. Subject to the Local Budget Law (ORS 294.305 to 294.565) and [section] sections 11 and 11b, Article XI of the Oregon Constitution, each community college district shall prepare annually an estimate of the amount of funds necessary to carry out the purposes of the district and may levy a tax upon all assessable property in the district.

NOTE: Corrects word choice.

SECTION 89. ORS 342.130, as amended by section 2, chapter 383, Oregon Laws 1997, is amended to read:

342.130. (1) Nothing in ORS 342.120 to 342.173 is intended to invalidate the life of any certificate or diploma in effect on June 30, 1965, nor to invalidate the rights granted prior to June 30, 1965, by the law and the rules of the State Board of Education under which the certificate or diploma was issued.

(2) Nothing in chapter 550, Oregon Laws 1965, is intended to invalidate the life of any teaching certificate in effect on August 13, 1965, or to alter the rights and privileges granted prior to August 13, 1965, by the law under which the teaching certificate was issued.

(3) Nothing in ORS 342.120 to 342.173 is intended to invalidate the life of any basic or standard teaching or administrative license in effect prior to January 15, 1999, nor to invalidate the rights granted prior to January 15, 1999, by the law and by the rules of the Teacher Standards and Practices Commission under which the license was issued.

NOTE: Clarifies reference to board in (1).

SECTION 90. ORS 344.520 is amended to read:

344.520. There is established a Vocational Rehabilitation Division in the Department of Human Resources. The division consists of an assistant director and such other personnel as may be necessary for the efficient performance of the functions of the division.

NOTE: Clarifies division/department hierarchy.

SECTION 91. ORS 344.735 is amended to read:

344.735. (1) There is established a state advisory committee [which] that shall function solely in an advisory capacity to the Assistant Director [of the] for Vocational Rehabilitation [Division of the Department of Human Resources] and to the Vocational Rehabilitation Division. The assistant director shall appoint members to the advisory committee. A majority of the advisory committee shall be disabled persons.

(2) The assistant director shall include advisory committee recommendations in the division's decision-making process. The advisory committee shall:

(a) Collect and study data and other information and offer advice concerning specialized needs of specific client groups;

(b) Provide liaison between the division and the rehabilitation community;

(c) Review and suggest new and revised legislation affecting the provision of vocational rehabilitation services to Oregon's disabled;

(d) Study, collect data and offer advice regarding high priority issues identified by the division;

(e) Consider items of statewide concern relayed from regional advisory committees; and

(f) Utilize regional committees as a resource for gathering information as it relates to the individual areas.

(3) Through the advisory committee, the division shall take into account views of individuals and groups who are recipients of vocational rehabilitation services, providers of vocational rehabilitation services and others who are active in the vocational rehabilitation field, in connection with matters of general policy, program development and implementation.

NOTE: Corrects official titles and grammar in (1).

SECTION 92. ORS 345.505 is amended to read:

345.505. As used in ORS 345.505 to 345.575 unless the context requires otherwise:

(1) "Educational services" means instructional programs but does not include programs limited solely to dancing, drama, music, religious or athletic instruction.

(2) "Private school" means a private elementary or secondary school operated by a person or by a private agency except as provided in ORS 339.030 [(3)] (1)(c), offering education in prekindergarten, kindergarten, or grades 1 through 12 or any part thereof.

NOTE: Corrects ORS reference in (2). See 339.030 as amended by section 85 of this 1999 Act.

SECTION 93. ORS 348.594 is amended to read:

348.594. As used in ORS 348.594[, 348.596, 348.603] to 348.615 [and 348.992]:

(1) "School" includes a person, organization, school or institution of learning that confers or offers to confer an academic degree upon a person or to provide academic credit applicable to a degree.

(2) "School" does not include:

(a) An Oregon community college;

(b) A state institution of higher education within the State System of Higher Education;

(d) A school that meets the criteria and procedures to obtain a religious exemption adopted by rule by the State Scholarship Commission and offers only degrees with approved titles in theology or religious occupations.

NOTE: Corrects series reference.

SECTION 94. ORS 348.596 is amended to read:

348.596. It is the purpose of ORS 348.594 to 348.615 [and 348.992] to provide for the protection of the citizens of Oregon and their post-secondary schools by ensuring the quality of higher education and preserving the integrity of an academic degree as a public credential.

NOTE: Deletes unnecessary ORS reference.

SECTION 95. ORS 348.606 is amended to read:

348.606. (1) No school shall confer or offer to confer any academic degree upon a person, or provide services purporting to lead to a degree in whole or in part, without first obtaining approval from the State Scholarship Commission through the Office of Degree Authorization. The commission shall adopt by rule standards and procedures for the approval of schools.

(2) The commission shall substitute the standards adopted under subsection (1) of this section with private accreditation standards for a school that has conferred degrees under the same control for five years in Oregon from at least one operationally separate unit accredited as a separate institution by a regional accrediting association or its national successor, provided the school submits for arbitration by the commission any unresolved dispute in which a person alleges detrimental violation of a standard guaranteed by the accrediting association but which the association has declined to arbitrate.

(3) The commission, by rule, may impose a fee on any school applying for approval to confer or offer to confer a degree upon a person or to provide academic credit applicable to a degree. The fee is nonrefundable. The amount of the fee shall be established to recover designated expenses incurred by the commission in carrying out the administration of ORS 348.594 to 348.615 [and 348.992].

NOTE: Deletes unnecessary ORS reference in (3).

SECTION 96. ORS 348.625 is amended to read:

348.625. As used in ORS 348.570 and 348.625 to 348.695:

(1) "Alternative student loan program" means a program established by the State Scholarship Commission to fund loans to eligible students, or to qualifying parents of eligible students, to help meet expenses of eligible students of attending post-secondary educational institutions; provided, however, that alternative student loan program loans may be made only to students who have applied for student financial aid under Title IV, Part B of the Higher Education Act of 1965, as amended, and have received information on their eligibility for programs under that Act, or the parents of students who have made such application and received such information.

[(2) "Commission" means the State Scholarship Commission.]

[(3)] (2) "Eligible student" means a student enrolled in an eligible post-secondary educational institution located in Oregon or a student who is an Oregon resident and who is enrolled in an eligible post-secondary educational institution located outside of Oregon. The commission shall determine, among other things, what constitutes enrollment and which post-secondary educational institutions are eligible institutions under the alternative student loan program.

[(4)] (3) "Lender" means an insured institution as defined in ORS 706.008 that is authorized to do business in Oregon and which has entered into an agreement with the commission to originate, service and administer alternative student loans in the manner authorized by ORS 348.570 and 348.625 to 348.695.

NOTE: Deletes duplicative definition. See 348.505.

SECTION 97. ORS 348.992 is amended to read:

348.992. Violation of any of the provisions of ORS 348.594 to 348.615 [and 348.992] by any person individually or on behalf of an organization or group is a Class B misdemeanor.

NOTE: Deletes unnecessary ORS reference.

SECTION 98. ORS 351.070 is amended to read:

351.070. (1) The State System of Higher Education, in accordance with rules adopted by the State Board of Higher Education, shall implement a personnel system and may engage in collective bargaining with its employees. All collective bargaining with any certified or recognized exclusive employee representative shall be under the direction and supervision of the Chancellor of the State System of Higher Education. The State System of Higher Education shall have payroll authority pursuant to ORS 292.043 to 292.180.

(2)(a) The board shall establish competitive procedures for the purchasing, procurement and contracting of goods and services for the benefit of the State System of Higher Education and all the institutions, departments and activities therein.

[(a)] (b) The board shall ensure that the hourly rate of wage paid by any contractor upon all public improvements contracts undertaken for the board shall not be less than the same rate of wage as determined by the Bureau of Labor and Industries for an hour's work in the same trade or occupation in the locality where such labor is performed. Claims or disputes arising under this subsection shall be decided by the Commissioner of the Bureau of Labor and Industries.

[(b)] (c) The board shall adopt policies and procedures that achieve results equal to or better than the standards existing on July 17, 1995, regarding affirmative action, pay equity for comparable work, recycling, the provision of workers' compensation insurance to workers on contract and the participation of emerging small businesses and businesses owned by minorities and women.

(3) The board may, for each institution under its control:

(a) Appoint and employ a president and the requisite number of professors, teachers and employees, and prescribe their compensation and tenure of office or employment.

(b) Demand and receive the interest mentioned in ORS 352.510 and all sums due and accruing to the institutions of higher education for admission and tuition therein, and apply the same, or so much thereof as is necessary, to the payment of the compensation referred to in paragraph (a) of this subsection and the other current expenses of the institutions.

(c) Prescribe fees for enrollment into the institutions. Such enrollment fees shall include tuition for education and general services and such other charges found by the board to be necessary to carry out its educational programs. The board may award student aid from any fund other than the General Fund.

(d) Prescribe incidental fees for programs under the supervision or control of the board found by the board, upon its own motion or upon recommendation of the recognized student government of the institution concerned, to be advantageous to the cultural or physical development of students. Fees realized in excess of amounts allocated and exceeding required reserves shall be considered surplus incidental fees and shall be allocated for programs under the control of the board and found to be advantageous to the cultural or physical development of students by the institution president upon the recommendation of the recognized student government at the institution concerned.

(e) Upon recommendation of the recognized student government, collect optional fees authorized by the institution executive, for student activities not included in paragraph (c) or (d) of this subsection. The payment of such optional fees shall be at the option and selection of the student and shall not be a prerequisite of enrollment.

(f) Confer, on the recommendation of the faculty of any such institution, such degrees as usually are conferred by such institutions, or as they deem appropriate.

(g) Prescribe the qualifications for admission into such institutions.

(4) Subject to such delegation as the board may decide to make to the institutions, divisions and departments under its control, the board, for each institution, division and department under its control, shall:

(a) Supervise the general course of instruction therein, and the research, extension, educational and other activities thereof.

(b) Adopt rules and bylaws for the government thereof, including the faculty, teachers, students and employees therein.

(c) Maintain cultural and physical development services and facilities therefor and, in connection therewith, may cooperate and enter into agreements with any person or governmental agency; and may provide student health services and contract therefor.

(d) Prescribe and collect charges.

(e) Adopt rules relating to the creation, use, custody and disclosure, including access, of student education records of the institutions that are consistent with the requirements of applicable state and federal law. Whenever a student has attained 18 years of age or is attending an institution of post-secondary education, the permission or consent required of and the rights accorded to a parent of the student regarding education records shall thereafter be required of and accorded to only the student.

(5) For each institution under its jurisdiction, the board shall provide opportunities for part-time students to obtain complete undergraduate degrees at unconventional times, which include but are not limited to early morning and noon hours, evenings and weekends. In administering these degree programs, the institution may use any educational facility available for the use of the institution.

NOTE: Corrects structure of (2).

SECTION 99. ORS 351.110 is amended to read:

351.110. All relationships and negotiations between the [state legislature] Legislative Assembly and its various committees and the institutions of higher education shall be carried on through the Department of Higher Education. No subordinate official representing any of the separate institutions shall appear before the [legislature] Legislative Assembly or any committee except upon the written authority of the State Board of Higher Education.

NOTE: Sets forth official title.

SECTION 100. ORS 366.335 is amended to read:

366.335. (1) Whenever in the location, relocation, construction or betterment of any highway within the state, it is deemed necessary to locate, relocate or construct the highway, or any part thereof, upon the right of way of any railroad company, the state, through the Department of Transportation, may negotiate and agree with the railroad company for the right to use or occupy the right of way, or so much thereof as is necessary for highway purposes.

(2) In case no satisfactory agreement can be effected, then the state, through the department, may acquire the right of way by exercise of the power of eminent domain, and for that purpose may commence and prosecute condemnation proceedings to acquire the right to the use and occupancy of sufficient of the railroad right of way for highway purposes.

(3) Nothing in subsection (2) of this section authorizes the use or occupancy of the railroad right of way which would interfere with the operation of the railroad or its necessary appurtenances, taking into consideration the use of the railroad right of way by the company for yards, terminals, station grounds and necessary additional trackage, or which would jeopardize the safety of the public.

(4) In the event that the right of way or property of any railroad company in the state required or needed for state highway location, relocation, construction or betterment, and any portion of the property or right of way is likewise needed and required by the railroad company for the proper operation of its trains and the usual and ordinary conduct of its business, but which property or land the railroad company is willing to deed to the state for highway purposes in exchange for a like amount of land within a reasonable distance, the state, through the department, may acquire by purchase, agreement or by exercise of the power of eminent domain, an equal amount of land or property within a reasonable distance. After having acquired such land or property, the state, through the department, may convey the same to the railroad company in exchange for the land or property needed and required from the railroad company for highway purposes. The difference in the value of the respective parcels of land shall be considered by the department in making the exchange.

NOTE: Inserts comma for clarity in (1).

SECTION 101. ORS 377.650 and 377.655 are added to and made a part of ORS 377.605 to 377.645.

NOTE: Adds statutes to appropriate series.

SECTION 102. ORS 377.650 is amended to read:

377.650. Any personal property not coming within the definition of junk [as defined in ORS 377.605], except a vehicle as defined in ORS 801.590, which is deposited, left or displayed on a state highway is hereby found and declared to be a public nuisance. The Director of Transportation may do any of the following with respect to personal property declared to be a nuisance by this section:

(1) Ten days after written notice is mailed to the person owning the personal property, the director may institute on behalf of the Department of Transportation any legal proceedings the director considers necessary to prevent the violation of this section.

(2) Ten days after written notice, the director may remove the personal property and store it. After 30 days of storage, unless claimed sooner by the owner, the director may sell or otherwise dispose of the personal property. Where removal is performed by the director, the director shall not be liable for any conversion of personal property and may collect the cost for removal, storage and sale or disposal of the personal property from the person owning it.

(3) If the property is a sign, as defined under ORS 377.710, that is portable or if the property has been repeatedly deposited, left or displayed in violation of this section, the director may follow the procedures under ORS 377.655. This subsection applies notwithstanding any other provision of this section.

NOTE: Deletes unnecessary ORS reference; sets forth official titles.

SECTION 103. ORS 390.139 is amended to read:

390.139. (1) The State Parks and Recreation Department shall administer a program designed to allow volunteers to assist in the operation and maintenance of Oregon's state parks. The program shall include public informational activities, but shall be directed primarily toward encouraging and facilitating involvement of [volunteer groups] volunteers in park operation and maintenance, assigning each [group] volunteer to a specific state park. The program shall be called the Oregon Adopt-a-Park Program.

(2) Private landowners with parks adjacent to their property are vital to the success of the Oregon Adopt-a-Park Program. The State Parks and Recreation Department shall ensure that participants in the program comply with requirements to obtain permission from landowners for access across private property if necessary to perform the volunteers' duties.

(3) Program funding is an authorized use of the State Parks and Recreation Department Fund under ORS 390.134.

(4) The State Parks and Recreation Department may adopt any rules necessary for implementation of the Oregon Adopt-a-Park Program.

(5) An agreement entered into between the State Parks and Recreation Department and a volunteer [group] under subsection (1) of this section shall include but need not be limited to:

(a) Identification of the designated state park. The volunteer [group] may request a specific state park the [group] volunteer wishes to adopt, but the assignment shall be at the discretion of the State Parks and Recreation Department. In assigning parks, the department shall coordinate and cooperate with affected federal, state and local management agencies and private landowners.

(b) Specification of the duties of the volunteer [group].

(c) Specification of the responsibilities of the volunteer [group]. The [group] volunteer shall agree to abide by all rules related to the program that are adopted by the State Parks and Recreation Department.

(d) Specification of the duration of the agreement. The volunteer [group] shall contract to care for the designated state park for one year.

(6) The State Parks and Recreation Department shall create a recognition program to acknowledge the efforts of [volunteer groups] volunteers, agencies and businesses that participate in the Oregon Adopt-a-Park Program.

(7) The State Parks and Recreation Department may provide trash bags, supplies, equipment and safety information and assistance to the participating [volunteer groups] volunteers.

(8) As used in this section, "volunteer" may include an individual, a group of individuals, a volunteer group or service club, or any entity that is tax exempt under section 501(c)(3) of the Internal Revenue Code, as amended.

NOTE: Conforms terms to definition in (8).

SECTION 104. ORS 390.195 is amended to read:

390.195. (1) The State Parks and Recreation Department shall use state correctional institution inmate labor to improve, maintain and repair buildings and property at state parks and recreation areas whenever feasible. The provisions of ORS chapter 279 [and ORS 291.021] do not apply to the use of state correctional institution inmate labor under this section.

(2) The State Parks and Recreation Director shall assign and supervise the work of the state inmates who are performing the work described in subsection (1) of this section.

(3) Nothing in this section is intended to exempt the State Parks and Recreation Department from the provisions of ORS 279.835 to 279.855 for any purpose other than the use of state correctional institution inmate labor.

NOTE: Deletes reference to repealed statute in (1).

SECTION 105. ORS 410.430 is amended to read:

410.430. (1) In order to qualify for services from an authorized agency or service provider, each client or recipient must:

(a) Be 60 years old or older or [has] have been diagnosed as having Alzheimer's disease or a related disorder;

(b) Not be receiving support or services from the Adult and Family Services Division, except food stamp benefits; and

(2) Eligibility determination shall be required before any client may receive services from an authorized agency or service provider.

NOTE: Corrects grammar in (1)(a).

SECTION 106. ORS 411.040 is amended to read:

411.040. The Adult and Family Services Division is established in the Department of Human Resources. The division consists of the Assistant Director for Adult and Family Services, employees of the division necessary to carry out the functions of the division and the Public Welfare Review Commission established under ORS 411.125.

NOTE: Clarifies division/department hierarchy.

SECTION 107. ORS 414.025 is amended to read:

414.025. As used in this chapter, unless the context or a specially applicable statutory definition requires otherwise:

(1) "Category of aid" means old-age assistance, aid to the blind, aid to the disabled, temporary assistance for needy families or Supplemental Security Income payment of the Federal Government.

(2) "Categorically needy" means, insofar as funds are available for the category, a person who is a resident of this state and who:

(a) Is receiving a category of aid.

(b) Would be eligible for, but is not receiving a category of aid.

(d) Is under the age of 21 years and would be a dependent child under the program for temporary assistance for needy families except for age and regular attendance in school or in a course of professional or technical training.

(e) Is a caretaker relative named in ORS 418.035 [(1)(c)] (1)(a)(C) who cares for a dependent child who would be a dependent child under the program for temporary assistance for needy families except for age and regular attendance in school or in a course of professional or technical training; or is the spouse of such caretaker relative and fulfills the requirements of ORS 418.035 (2).

(f) Is under the age of 21 years, is in a foster family home or licensed child-caring agency or institution under a purchase of care agreement and is one for whom a public agency of this state is assuming financial responsibility, in whole or in part.

(g) Is a spouse of an individual receiving a category of aid and who is living with the recipient of a category of aid, whose needs and income are taken into account in determining the cash needs of the recipient of a category of aid, and who is determined by the Department of Human Resources to be essential to the well-being of the recipient of a category of aid.

(h) Is a caretaker relative named in ORS 418.035 [(1)(c)] (1)(a)(C) who cares for a dependent child receiving temporary assistance for needy families or is the spouse of such caretaker relative and fulfills the requirements of ORS 418.035 (2).

(i) Is under the age of 21 years, is in a youth care center and is one for whom a public agency of this state is assuming financial responsibility, in whole or in part.

(j) Is under the age of 21 years and is in an intermediate care facility which includes institutions for the mentally retarded; or is under the age of 22 years and is in a psychiatric hospital.

(k) Is under the age of 21 years and is in an independent living situation with all or part of the maintenance cost paid by the State Office for Services to Children and Families.

(L) Is a member of a family that received temporary assistance for needy families in at least three of the six months immediately preceding the month in which such family became ineligible for such assistance because of increased hours of or increased income from employment. As long as the member of the family is employed, such families will continue to be eligible for medical assistance for a period of at least six calendar months beginning with the month in which such family became ineligible for assistance because of increased hours of employment or increased earnings.

(m) Is an adopted person under 21 years of age for whom a public agency is assuming financial responsibility in whole or in part.

(n) Is an individual or is a member of a group who is required by federal law to be included in the state's medical assistance program in order for that program to qualify for federal funds.

(o) Is an individual or member of a group who, subject to the rules of the office and within available funds, may optionally be included in the state's medical assistance program under federal law and regulations concerning the availability of federal funds for the expenses of that individual or group.

(p) Is a pregnant woman who would be eligible for temporary assistance for needy families including such aid based on the unemployment of a parent, whether or not the woman is eligible for cash assistance.

(q) Would be eligible for temporary assistance for needy families pursuant to 42 U.S.C. 607 based upon the unemployment of a parent, whether or not the state provides cash assistance.

(r) Except as otherwise provided in this section and to the extent of available funds, is a pregnant woman or child for whom federal financial participation is available under Title XIX of the federal Social Security Act.

(s) Is not otherwise categorically needy and is not eligible for care under Title XVIII of the federal Social Security Act or is not a full-time student in a post-secondary education program as defined by the Department of Human Resources by rule, but whose family income is less than the federal poverty level and whose family investments and savings equal less than the investments and savings limit established by the department by rule.

(3) "Income" means income as defined in ORS 413.005 (3).

(4) "Investments and savings" means cash, securities as defined in ORS 59.015, negotiable instruments as defined in ORS 73.0104 and such similar investments or savings as the Department of Human Resources may establish by rule that are available to the applicant or recipient to contribute toward meeting the needs of the applicant or recipient.

(5) "Medical assistance" means so much of the following medical and remedial care and services as may be prescribed by the Department of Human Resources according to the standards established pursuant to ORS 414.065, including payments made for services provided under an insurance or other contractual arrangement and money paid directly to the recipient for the purchase of medical care:

(a) Inpatient hospital services, other than services in an institution for mental diseases;

(b) Outpatient hospital services;

(d) Skilled nursing facility services, other than services in an institution for mental diseases;

(e) Physicians' services, whether furnished in the office, the patient's home, a hospital, a skilled nursing facility or elsewhere;

(f) Medical care, or any other type of remedial care recognized under state law, furnished by licensed practitioners within the scope of their practice as defined by state law;

(g) Home health care services;

(h) Private duty nursing services;

(i) Clinic services;

(j) Dental services;

(k) Physical therapy and related services;

(L) Prescribed drugs, dentures, and prosthetic devices; and eyeglasses prescribed by a physician skilled in diseases of the eye or by an optometrist, whichever the individual may select;

(m) Other diagnostic, screening, preventive and rehabilitative services;

(n) Inpatient hospital services, skilled nursing facility services and intermediate care facility services for individuals 65 years of age or over in an institution for mental diseases;

(o) Any other medical care, and any other type of remedial care recognized under state law;

(p) Periodic screening and diagnosis of individuals under the age of 21 years to ascertain their physical or mental defects, and such health care, treatment and other measures to correct or ameliorate defects and chronic conditions discovered thereby;

(q) Inpatient hospital services for individuals under 22 years of age in an institution for mental diseases; and

(r) Hospice services.

(6) "Medical assistance" includes any care or services for any individual who is a patient in a medical institution or any care or services for any individual who has attained 65 years of age or is under 22 years of age, and who is a patient in a private or public institution for mental diseases. "Medical assistance" includes "health services" as defined in ORS 414.705. "Medical assistance" does not include care or services for an inmate in a nonmedical public institution.

(7) "Medically needy" means a person who is a resident of this state and who is considered eligible under federal law for medically needy assistance.

(8) "Resources" means resources as defined in ORS 413.005 (4).

NOTE: Corrects ORS references in (2)(e) and (h). See 418.035 as amended by section 111 of this 1999 Act.

SECTION 108. ORS 416.030 is amended to read:

416.030. (1) Upon receipt of the report of the investigation referred to in ORS 416.020, the Adult and Family Services Division may make such further investigation of the matter as it may deem necessary to ascertain the facts in relation thereto.

(2) No liability for the support of a needy person shall be imposed under the provisions of ORS 416.010 to 416.260 upon:

(a) A living relative of such needy person during any period when a court order or decree, entered in a proceeding other than a proceeding under ORS 416.010 to 416.260, is in effect, which requires the relative to pay a sum of money for the support of that person.

(b) A living relative of such needy person during any period when the relative is subject to or exempt from support under ORS 179.610 to 179.770.

(c) The child of a needy person if, during the minority of the child, such person willfully deserted or abandoned the child, or, by expulsion or cruelty, drove the child from the parental home, or, without good cause, was responsible for the [child's being "dependent" as defined by ORS 418.205 (2)] child being a dependent child.

(d) The child of a needy person, if, during the minority of the child, such person is committed by order of the court to a state institution for the mentally ill or mentally deficient.

(3) As used in this section, "dependent child" means a person under 18 years of age whose conduct or condition is such as to fall within the provisions of ORS 419B.100 (1)(a), (b) or (c) or 419C.005 (1).

NOTE: Deletes obsolete ORS reference in (2)(c); inserts appropriate definition. See section 1, chapter 510, Oregon Laws 1983.

SECTION 109. ORS 417.210 is amended to read:

417.210. (1) Financial responsibility for any child placed pursuant to the provisions of the Interstate Compact on the Placement of Children shall be determined in accordance with the provisions of Article V thereof in the first instance. However, in the event of partial or complete default of performance thereunder, the provisions of ORS 110.300 to 110.441 and 416.010 to 416.260 and any other applicable laws also may be invoked.

(2) The "appropriate public authorities" as used in Article III of the Interstate Compact on the Placement of Children shall, with reference to this state, mean the State Office for Services to Children and Families [of the Department of Human Resources] and the office shall receive and act with reference to notices required by Article III thereof.

(3) As used in paragraph (a) of Article V of the Interstate Compact on the Placement of Children, the phrase "appropriate authority in the receiving state" with reference to this state shall mean the State Office for Services to Children and Families [of the Department of Human Resources].

NOTE: Deletes unnecessary reference to Department of Human Resources.

SECTION 110. ORS 417.760 is amended to read:

417.760. (1) The board of county commissioners of a county or the boards of county commissioners of contiguous counties that agree to appoint a regional commission:

(a) Shall appoint a chairperson and a minimum of eight members to a local commission [for] on children and families in the manner described in ORS 417.765.

(b) Shall appoint a local staff director. The staff director shall hire and supervise any other support staff necessary for operation of the local commission. The staff director and staff are subject to county personnel policies and other administration policies and ordinances. The staff director shall be responsible for all management functions of the local commission.

(c) Must approve the local plan before it may be submitted to the State Commission on Children and Families. If the local plan has been revised or is amended, the revised or amended plan must be submitted to the board or boards for approval before it is submitted to the state commission.

(2) The board or boards of county commissioners must approve any transfer of responsibility for a state service and its funding to a local commission.

(3) Funds payable to implement local plans shall be paid to the county. The board or boards of county commissioners are responsible for the expenditure of such funds subject to county budget and fiscal operating procedures.

NOTE: Corrects word choice in (1)(a).

SECTION 111. ORS 418.035 is amended to read:

418.035. As used in ORS 418.035 to 418.172, unless the context or a specially applicable statutory definition requires otherwise:

(1)(a) "Dependent child" means a needy child:

[(a)] (A) Who has been deprived of parental support or care by reason of the death, continued absence from the home or physical or mental incapacity of a parent; [and]

[(b)] (B) Whose relatives are not able to provide adequate care and support for [such] the child without public assistance, as defined in ORS 411.010; [and]

[(c)] (C) Who is living with the child's father, mother, grandfather, grandmother, brother, sister, stepfather, stepmother, stepbrother, stepsister, uncle, aunt, first cousin, nephew or niece in a place of residence maintained by one or more of such relatives as the child's or their own home; and [either]

(D) Who meets the requirements of paragraph (b) of this subsection.

[(d)] (b)(A) [Who is] Except as provided in subparagraphs (B) and (C) of this paragraph, a "dependent child" must be under the age of 18 years[;].

[(e)] (B) A child may qualify as a "dependent child," subject to the availability of funds, [for the children described in this paragraph, who] if the child is 18 or 19 or 20 years of age and a student regularly attending a school in grade 12 or below or regularly attending a course of professional or technical training designed to fit the child for gainful employment, other than a course provided by or through a college or university[, designed to fit the child for gainful employment; or].

[(f)] (C) Students under the age of 21 years and regularly attending a school, college or university or regularly attending a course of professional or technical training designed to fit the child for gainful employment may be included in the description in [paragraph (e) of this subsection] subparagraph (B) of this paragraph at the option of the Adult and Family Services Division.

(2) "Aid" means money payments with respect to, or [in] on behalf of, a dependent child or children[,] and includes:

(a) Money payments to meet the needs of[:]

[(A)] the relative with whom [such] the child is living[; and either] and:

[(B)] (A) The spouse of [such] the relative if [living] the spouse lives with the relative, [and if such] the relative is the child's parent and the child is a dependent child by reason of the physical or mental incapacity of a parent; or

[(C)] (B) The spouse of [such] the relative if [living] the spouse lives with the relative, [and if such] the relative is the child's parent and the child is a dependent child as defined in ORS 418.070 (1)(a) and is dependent by reason of the unemployment of parents.

(b) Payments made to a representative payee or guardian pursuant to ORS 418.050 or 418.054.

(3) "Representative payee" means an individual designated by the Adult and Family Services Division to receive money payments of aid pursuant to ORS 418.050.

NOTE: Conforms section structure to legislative form and style; corrects grammar and syntax; beautifies ORS.

SECTION 112. ORS 418.070 is amended to read:

418.070. For the purposes of ORS 418.035 to 418.185, with respect to any period for which federal funds are made available to this state in aid of a state-administered program of aid to any child defined in and meeting the requirements of this section:

(1) "Dependent child" includes:

(a) A needy child meeting the requirements of ORS 418.035 [(1)(d) or (e)] (1)(b)(A) or (B) who has been deprived of parental support or care by reason of the unemployment of a parent or parents and who is living with any of the relatives specified in ORS 418.035 (1) in a place of residence maintained by one or more of such relatives as the relative's or relatives' own home.

(b) A child:

(A) Who would meet the requirements of ORS 418.035 (1) or of paragraph (a) of this subsection except for removal after April 30, 1961, from the home of a relative specified in ORS 418.035 (1) as a result of a judicial determination to the effect that continuation therein would be contrary to the welfare of such child,

(B) Who has been accepted for placement and care by either or both the Adult and Family Services Division and the State Office for Services to Children and Families,

(C) Who has been placed in a foster home or licensed nonprofit private child-caring agency as a result of such determination, and

(D) Who received aid in or for the month in which court proceedings leading to such determination were initiated, or would have received such aid in or for such month if application had been made therefor, or in the case of a child who had been living with a relative specified in ORS 418.035 (1) within six months prior to the month in which such proceedings were initiated, would have received such aid in or for such month if in such month the child had been living with and removed from the home of such a relative and application had been made therefor.

(2) "Foster home" means a foster home which is certified by this state or has been approved, by the agency of this state responsible for the certification of foster homes, as meeting the standards established for such certification.

(3) "Aid" includes foster care in behalf of a child described in subsection (1)(b) of this section in the foster home of any individual or in a licensed nonprofit private child-caring agency.

(4) "Unemployment of parent" shall be defined by the Adult and Family Services Division and such definition may take into account definitions used to establish the availability of federal funds for the program of temporary assistance for needy families.

NOTE: Corrects ORS references in (1)(a). See 418.035 as amended by section 111 of this 1999 Act.

SECTION 113. ORS 418.312 is amended to read:

418.312. (1) The State Office for Services to Children and Families [of the Department of Human Resources] shall not require any parent or legal guardian to transfer legal custody of a child in order to have the child placed under ORS 418.205 to 418.310, 418.480 to 418.500 and 418.992 to 418.998 in a foster home, group home or institutional child care setting, when the sole reason for the placement is the need to obtain services for the child's emotional, behavioral or mental disorder or developmental or physical disability. In all such cases, the child shall be placed pursuant to a voluntary placement agreement. When a child is placed pursuant to a voluntary placement agreement, the State Office for Services to Children and Families shall have responsibility for the child's placement and care. When a child remains in voluntary placement for more than 180 days, the juvenile court shall make a judicial determination, within the first 180 days of the placement, that the placement is in the best interests of the child. In addition, the juvenile court shall hold a dispositional hearing no later than 18 months after the original voluntary placement, and every two years thereafter during the continuation of the placement, to determine the future status of the child.

(2) As used in this section, "voluntary placement agreement" means a binding, written agreement between the State Office for Services to Children and Families and the parent or legal guardian of a minor child that does not transfer legal custody to the State Office for Services to Children and Families but that specifies, at a minimum, the legal status of the child and the rights and obligations of the parent or legal guardian, the child and the State Office for Services to Children and Families while the child is in placement.

NOTE: Deletes unnecessary reference to Department of Human Resources.

SECTION 114. ORS 418.658 is amended to read:

418.658. (1) The program director of the Oregon Youth Conservation Corps shall establish a separate program known as the Oregon Community Service Corps. In addition to the established purposes of the Oregon Youth Conservation Corps, the purpose of the Oregon Community Service Corps is to promote community service activities throughout the state for a broad cross section of Oregon disadvantaged and at-risk youth through programs that also include appropriate educational and job training opportunities for participants.

(2) In addition to projects submitted under ORS 418.660 (1), projects of the Oregon Community Service Corps may include, but shall not be limited to:

(a) Child care services.

(b) Elderly and disabled care services.

(d) Recycling and other waste reduction services.

(3) The Oregon Community Service Corps shall offer employment and educational opportunities of at least three but not more than 12 months' duration for selected participants.

(4) Under rules adopted by the program director, participants who successfully complete any 12-month program under this section shall be eligible for $1,500 in tuition vouchers that can be used at any career school or post-secondary educational institution that is qualified to receive assistance through the State Scholarship Commission.

(5) All Oregonians who are at least 16 years of age and under 25 years of age are eligible to participate in the program. To ensure that Oregon Community Service Corps participants represent a broad cross section of Oregonians, special emphasis shall be given to recruiting high school dropouts and other disadvantaged and at-risk youth, according to criteria established by the Oregon Youth Conservation Corps Advisory Committee.

(6) To the extent practicable, the program director shall enlist state and federal agencies, local government, nonprofit organizations, and private businesses, and any combination of such entities, to act as sponsors for programs administered under this section. Selection of sponsors shall be based on criteria that include the following:

(a) The availability of other resources on a matching basis, including contributions from private sources, other federal, state and local agencies, and moneys available through the Job Training Partnership Act (P.L. 97-300, as amended, 29 U.S.C. 1501 et seq.);

(b) The provision of related educational and job training programs to participants, including but not limited to high school and college coursework, General Educational Development (GED) tests equivalency training, project-related education and professional training;

(c) Assurances that proposed projects will not displace existing employees or duplicate existing private or government programs;

(d) Assurances that proposed projects are devoted to the enhancement of the community and are not based in maintenance activities and that these projects meet an identified need; and

(e) Assurances that the proposed projects have been reviewed by the appropriate local commission on children and families established under ORS 417.760.

(7) In consultation with the advisory committee and with the approval of the local commission, the program director shall make grants for programs administered under this section.

NOTE: Corrects official title in (1).

SECTION 115. ORS 418.784 is amended to read:

418.784. (1) There is created the Advisory Council on Child Abuse Assessment, consisting of at least nine members appointed by the Assistant Director for Health, who shall serve as an ex officio member of the council. The council shall direct the administrator of the Child Abuse Multidisciplinary Intervention Account on administering funds to establish regional assessment centers or community assessment services under ORS 418.780 to 418.796.

(2) Of the members appointed to the council:

(a) One member shall be an employee of the State Office for Services to Children and Families;

(b) One member shall be a physician licensed to practice medicine in Oregon and who specializes in children and families;

(d) One member shall be a district attorney or the designee of a district attorney;

(e) One member shall be an employee of a law enforcement agency, in addition to the member who is a district attorney or the designee of a district attorney;

(f) One member shall be from an operating regional assessment center; and

(g) [Other members who are] At least three members shall be citizens with appropriate interest in advocating for the medical interest of abused children.

(3) The members of the council are not entitled to compensation or expenses.

(4) The council shall elect one of its members to serve as chairperson, for such terms and with such duties and powers as the council determines.

(5) The council shall meet at least once every three months at a place, day and hour determined by the council.

(6) A majority of the members of the council constitutes a quorum for the transaction of business.

NOTE: Corrects syntax in (2)(g).

SECTION 116. ORS 419A.004 is amended to read:

419A.004. As used in this chapter and ORS chapters 419B and 419C, unless the context requires otherwise:

(1) "CASA Volunteer Program" means a program approved or sanctioned by the juvenile court to recruit, train and supervise volunteer persons to serve as court appointed special advocates.

(2) "Child" means a person within the jurisdiction of the juvenile court as provided in ORS 419B.100.

(3) "Child care center" means a residential facility for the care and supervision of children that is licensed under the provisions of ORS 418.240.

(4) "Community service" has the meaning given that term in ORS 137.126.

(5) "Conflict of interest" means a person appointed to a local citizen review board who has a personal or pecuniary interest in a case being reviewed by that board.

(6) "Counselor" means a juvenile department counselor.

(7) "Court" means the juvenile court.

(8) "Court appointed special advocate" or "CASA" means a person appointed by the court pursuant to a CASA Volunteer Program to act as special advocate for a child pursuant to ORS 419A.170.

(9) "Detention" or "detention facility" means a facility established under ORS 419A.010 to 419A.020 and 419A.050 to 419A.063 for the detention of dependent children or delinquent youth pursuant to a judicial commitment or order.

(10) "Director" means the director of a juvenile department established under ORS 419A.010 to 419A.020 and 419A.050 to 419A.063.

(11) "Guardian" means guardian of the person and not guardian of the estate.

(12) "Indian child" means any unmarried person less than 18 years of age who is:

(a) A member of an Indian tribe;

(b) Eligible for membership in an Indian tribe and is the biological child of a member of an Indian tribe; or

(13) "Juvenile court" means the court having jurisdiction of juvenile matters in the several counties of this state.

(14) "Local citizen review board" means the board specified by ORS 419A.090 and 419A.092.

(15) "Office" means the State Office for Services to Children and Families.

(16) "Parent" means the biological or adoptive mother of the child and the legal or adoptive father of the child. A legal father includes:

(a) A nonimpotent, nonsterile man who was cohabiting with his wife, who is the mother of the child, at the time of conception;

(b) A man married to the mother of the child at the time of birth, where there is no decree of separation and the presumption of paternity has not been disputed;

(d) A biological father who has established or declared paternity through filiation proceedings or under ORS 416.400 to 416.470; and

(e) A biological father who has, with the mother, established paternity through a [joint declaration] voluntary acknowledgment of paternity under ORS 109.070.

(17) "Reasonable time" means a period of time that is reasonable given a child's emotional and developmental needs and ability to form and maintain lasting attachments.

(18) "Records" means any information in written form, pictures, photographs, charts, graphs, recordings or documents pertaining to a case.

(19) "Resides" or "residence," when used in reference to the residence of a child or youth, means the place where the child or youth is actually living or the jurisdiction in which wardship of the child or youth has been established.

(20) "Restitution" has the meaning given that term in ORS 137.103.

(21) "Serious physical injury" means:

(a) A serious physical injury as defined in ORS 161.015; or

(b) A physical injury that:

(A) Has a permanent or protracted significant effect on a child's daily activities;

(B) Results in substantial and recurring pain; or

(22) "Shelter care" means a home or other facility suitable for the safekeeping of a child who is taken into temporary custody pending investigation and disposition where the circumstances are such that the child does not need to be kept in secure custody.

(23) "Short-term detention facility" means a facility established under ORS 419A.050 (3) for holding youths pending further placement.

(24) "Substitute care" means an out-of-home placement directly supervised by the office or other agency, including placement in a foster family home, group home or other child caring institution or facility. "Substitute care" does not include care in:

(a) A detention facility, forestry camp or youth correction facility;

(b) A family home which the court has approved as a child's permanent placement, where a private child caring agency has been appointed guardian of the child and where the child's care is entirely privately financed; or

(25) "Surrogate" means a person appointed by the court to protect the right of the child to receive procedural safeguards with respect to the provision of free appropriate public education.

(26) "Tribal court" means a court with jurisdiction over child custody proceedings and that is either a Court of Indian Offenses, a court established and operated under the code of custom of an Indian tribe or any other administrative body of a tribe that is vested with authority over child custody proceedings.

(27) "Youth" means a person under 18 years of age who is alleged to have committed an act that is a violation, or, if done by an adult would constitute a violation, of a law or ordinance of the United States or a state, county or city.

(28) "Youth care center" has the meaning given that term in ORS 420.855.

(29) "Youth offender" means a person at least 12 years of age and under 18 years of age who has been found to be within the jurisdiction of the juvenile court under ORS 419C.005.

NOTE: Corrects terminology in (16)(e).

SECTION 117. ORS 419A.052 is amended to read:

419A.052. (1) Suitable detention facilities shall be of Class I construction and comply with the State of Oregon Structural Specialty Code and Fire and Life Safety Code [of the State Fire Marshal]. In addition, the facilities shall provide:

(a) Sanitary drinking water in living units and dayrooms;

(b) Toilets and washbasins accessible to juveniles in all housing and activity areas;

(d) A heating system and all equipment required to [insure] ensure healthful and comfortable living and working conditions for juveniles and staff, and which maintains a temperature no lower than 64 degrees;

(e) Lighting at 20 footcandles density; and

(f) Verbal or mechanical communications from sleeping rooms to staff.

(2) New or major renovated facilities shall conform to the requirements of subsection (1) of this section and shall also provide:

(a) That any single sleeping rooms located therein are at least 70 square feet and that any dormitories located therein are at least 50 square feet per occupant and house no more than five individuals each;

(b) At least one toilet and washbasin for every five detainees;

(d) Thirty square feet of dayroom space per child;

(e) Heating units capable of maintaining 68 to 85 degrees temperature;

(f) Tamper-proof lighting with capability of 20 footcandles;

(g) Air circulation of 10 cubic feet of fresh air per minute, per occupant;

(h) Sleeping rooms' water valves accessible for staff control;

(i) Rooms provided for classes, library, arts and crafts; and

(j) Indoor and outdoor recreation and exercise areas.

NOTE: Corrects official titles in (1); corrects grammar in (1)(d).

SECTION 118. ORS 419A.255 is amended to read:

419A.255. (1) The clerk of the court shall keep a record of each case, including therein the summons and other process, the petition and all other papers in the nature of pleadings, motions, orders of the court and other papers filed with the court, but excluding reports and other material relating to the child's or youth's history and prognosis. The record of the case shall be withheld from public inspection but shall be open to inspection by the child or youth, parent, guardian, court appointed special advocate, surrogate or a person allowed to intervene in a proceeding involving the child or youth under ORS 109.119 (1), and their attorneys. The attorneys are entitled to copies of the record of the case.

(2) Reports and other material relating to the child's or youth's history and prognosis are privileged and, except at the request of the child or youth, shall not be disclosed directly or indirectly to anyone other than the judge of the juvenile court, those acting under the judge's direction, service providers in the case and [to] the attorneys of record for the child or youth or the child's or youth's parent, guardian, court appointed special advocate, surrogate or person allowed to intervene in a proceeding involving the child or youth under ORS 109.119 (1). Reports and other material relating to a youth offender's history and prognosis in cases under ORS 419C.005 may be disclosed to law enforcement agencies. The service providers in the case, law enforcement agencies and attorneys are entitled to examine and obtain copies of any reports or other material relating to the child's or youth's history and prognosis. Any service provider in the case, law enforcement agency or attorney who examines or obtains copies of such reports or materials is responsible for preserving their confidentiality and shall return the copies to the court upon the conclusion of the service provider's, law enforcement agency's or attorney's involvement in the case.

(3) Except as otherwise provided in subsection (7) of this section, no information appearing in the record of the case or in reports or other material relating to the child's or youth's history or prognosis may be disclosed to any person not described in subsection (2) of this section without the consent of the court, except for purposes of evaluating the child's or youth's eligibility for special education as provided in ORS chapter 343, and no such information may be used in evidence in any proceeding to establish criminal or civil liability against the child or youth, whether such proceeding occurs after the child or youth has reached 18 years of age or otherwise, except for the following purposes:

(a) In connection with a presentence investigation after the guilt of the youth has been admitted or established in a criminal court.

(b) In connection with a proceeding in another juvenile court concerning the child or youth or an appeal from the juvenile court.

(4) If the court finds that the child or youth or parent is without financial means to purchase all or a necessary part of the transcript of the evidence or proceedings, the court shall order upon motion the transcript or part thereof to be furnished. The transcript or part thereof furnished under this subsection shall be paid for in the same manner as furnished transcripts are paid for in criminal cases.

(5) Notwithstanding any other provision of law, the following are not confidential and not exempt from disclosure:

(a) The name and date of birth of the child or youth;

(b) The basis for the juvenile court's jurisdiction over the child or youth;

(d) The act alleged in the petition that if committed by an adult would constitute a crime if jurisdiction is based on ORS 419C.005;

(e) That portion of the juvenile court order providing for the legal disposition of the child or youth where jurisdiction is based on ORS 419B.100 (1)(g) or 419C.005;

(f) The names and addresses of the youth's parents or guardians; and

(g) The register described in ORS 7.020.

(6) Notwithstanding any other provision of law, when a youth has been taken into custody under ORS 419C.080, the following information shall be disclosed unless, and only for so long as, there is a clear need to delay disclosure in the course of a specific investigation, including the need to protect the complaining party or the victim:

(a) The youth's name and age and whether the youth is employed or in school;

(b) The youth offense for which the youth was taken into custody;

(c) The name and age of the adult complaining party and the adult victim, unless the disclosure of such information is otherwise prohibited or restricted;

(d) The identity of the investigating and arresting agency; and

(e) The time and place that the youth was taken into custody and whether there was resistance, pursuit or a weapon used in taking the youth into custody.

(7)(a) Information contained in reports and other materials relating to a child's or youth's history and prognosis that, in the professional judgment of the juvenile counselor, caseworker, teacher or detention worker to whom the information for the reports or other materials has been provided, indicates a clear and immediate danger to another person or to society shall be disclosed to the appropriate authority and the person or entity who is in danger from the child or youth.

(b) An agency or a person who discloses information under paragraph (a) of this subsection shall have immunity from any liability, civil or criminal, that might otherwise be incurred or imposed for making the disclosure.

(c) Nothing in this subsection affects the provisions of ORS 146.750, 146.760, 419B.035, 419B.040 and 419B.045. The disclosure of information under this section does not make the information admissible in any court or administrative proceeding if it is not otherwise admissible.

(8) A county juvenile department is the agency responsible for disclosing youth offender records and records relating to nonadjudicated youths if the records are subject to disclosure.

NOTE: Corrects syntax in (2).

SECTION 119. ORS 419B.365 is amended to read:

419B.365. (1) At any time following establishment of jurisdiction and wardship under ORS 419B.100, but prior to filing of a petition under ORS 419B.500, the court may hear a petition for permanent guardianship. If the state chooses not to participate in a proceeding initiated by an intervenor under ORS 419B.115, the state is not foreclosed from filing a subsequent action should the intervenor's petition be denied.

(2) Except as otherwise provided in this section, the juvenile court shall hear the permanent guardianship case and follow the procedures in ORS chapter 125.

(3) The court shall appoint as a guardian a suitable person who has petitioned the court to be appointed permanent guardian of the child and who has standing under ORS 419B.115.

(4) The grounds for granting a permanent guardianship are the same as those for termination of parental rights.

(5) The court shall grant a permanent guardianship if it finds by clear and convincing evidence that:

(a) The grounds cited in the petition are true; and

(b) It is in the best interest of the child that the parent never have physical custody of the child but that other parental rights and duties should not be terminated.

(6) A person appointed permanent guardian has the duties and authority of a guardian appointed under ORS chapter 125. The annual report requirement in ORS 125.325 applies to a permanent guardianship granted under this section.

(7) Upon its own motion or that of a parent, the child or the guardian, the court granting the guardianship may at any time enter orders regarding contact, [visitation] parenting time and child support when the orders are appropriate and in the best interest of the child. The court may modify or enforce the orders only if the party seeking modification or enforcement has participated or attempted to participate, in good faith, in mediation to resolve the dispute that is the basis of the modification or enforcement motion. The participation or attempted participation in mediation must have occurred prior to filing the motion for modification or enforcement. The court may require a person filing a motion under this subsection to pay a reasonable filing fee.

(8) A parent may not petition the court to terminate a guardianship once the guardianship is granted under this section.

NOTE: Corrects terminology in (7).

SECTION 120. ORS 419C.250 is amended to read:

419C.250. (1) The state, acting through the district attorney, Attorney General or, when authorized by the district attorney, the juvenile department counselor, may file a petition alleging that a youth is within the jurisdiction of the court as provided in ORS 419C.005.

(2) At any time after a petition is filed, the court may make an order providing for the temporary custody of the youth.

(3) The petition and all subsequent court documents in the proceeding shall be entitled, "In the Matter of ______, a youth." The petition shall be in writing and verified upon the information and belief of the petitioner.

NOTE: Corrects punctuation in (1).

SECTION 121. ORS 426.500 is amended to read:

426.500. For the purpose of carrying out the policy and intent of ORS 426.490 to 426.500, the Mental Health and Developmental Disability Services Division of the Department of Human Resources shall:

(1) Adopt rules for the administration of ORS 426.490 to 426.500;

(2) Prepare a written discharge plan for each chronically mentally ill person who is a patient at a state mental institution or who is committed to the division pursuant to ORS 426.005 to 426.223 and 426.241 to 426.380;

(3) [Insure] Ensure that case managers are provided for each chronically mentally ill person described in subsection (2) of this section; and

(4) Disburse from any available funds:

(a) Funds for one LINC model in the area served by F. H. Dammasch State Hospital and one LINC model in the area served by the Oregon State Hospital licensed under ORS 443.415;

(b) Discretionary funds for services necessary to implement a discharge plan, including but not limited to transportation, medication, recreation and socialization; and

(c) Funds to provide day treatment services, community psychiatric inpatient services, and work activity services for chronically mentally ill persons where needed.

NOTE: Corrects grammar and inserts appropriate conjunction in (3).

SECTION 122. ORS 430.705 is amended to read:

430.705. The State of Oregon, through the State Office for Services to Children and Families [created under chapter 401, Oregon Laws 1971], may establish the necessary facilities and provide comprehensive mental health services for children throughout the state. These services may include, but not be limited to the prevention of mental illness, and the prevention, treatment and restoration of emotionally disturbed, mentally ill and drug-dependent children.

NOTE: Deletes obsolete provision.

SECTION 123. ORS 431.275 and 431.280 are repealed.

NOTE: Repeals obsolete statutes.

SECTION 124. ORS 446.260 is amended to read:

446.260. (1) Every manufacturer of manufactured homes offered for sale or lease in this state shall furnish notification of any defect in any manufactured home produced by the manufacturer that the manufacturer determines, in good faith, relates to a federal manufactured housing construction or safety standard or [contains a defect that] constitutes an imminent safety hazard to the purchaser of the manufactured home, within a reasonable time after such manufacturer has discovered the defect.

(2) The Director of the Department of Consumer and Business Services is authorized to adopt rules for notification required by subsection (1) of this section. The rules shall conform to notification and correction of defects and record keeping requirements of the Secretary of Housing and Urban Development under the National Manufactured Housing Construction and Safety Standards Act of 1974 (Public Law 93-383).

(3)(a) In addition to the notification required under subsection (1) of this section, the director may adopt rules to identify the disclosures required of a dealer or distributor prior to the sale of new manufactured structures more than eight feet six inches wide in travel mode. Disclosure required under this subsection shall be limited to information regarding permissible uses, roof snow loads and anchoring of manufactured structures.

(b) The Department of Consumer and Business Services shall develop and make available to all dealers and distributors of manufactured structures a standard disclosure. The disclosure shall be completed in writing by the dealer or distributor of any affected manufactured structure prior to sale. A completed disclosure shall be presented to the purchaser for signature at the time of sale and a copy of the signed disclosure provided to the purchaser. The signed disclosure shall be retained by the dealer or distributor for not less than five years following the date of sale.

NOTE: Corrects syntax in (1).

SECTION 125. ORS 448.005 is amended to read:

448.005. As used in ORS 448.005 to 448.090, unless the context requires otherwise:

(1) "Assistant director" means the Assistant Director for Health.

[(1)] (2) "Bathhouse" means a structure [which] that contains dressing rooms, showers and toilet facilities for use with an adjacent public swimming pool.

[(2)] (3) "Division" means the Health Division of the Department of Human Resources.

[(3) "Assistant director" means the Assistant Director for Health of the Department of Human Resources.]

(4) "Person" [includes, in addition to the definition] has the meaning given that term in ORS 174.100, but also includes municipalities, recreation districts, counties and state agencies or instrumentalities.

(5) "Public spa pool" means a public swimming pool or wading pool designed primarily to direct water or air-enriched water under pressure onto the bather's body with the intent of producing a relaxing or therapeutic effect.

[(5)] (6) "Public swimming pool" means an artificial structure, and its appurtenances, [which] that contains water more than two feet deep, [which] is expressly designated or [which is] used with the knowledge and consent of the owner or operator for swimming or recreational bathing, and [which] is for the use of any segment of the public. "Public swimming pool" includes, but is not limited to, swimming pools owned or operated by:

(a) Travelers' accommodations;

(b) Recreation parks;

(d) Schools;

(e) Organizational camps as defined in ORS 446.310;

(f) Clubs;

(g) Associations;

(h) Business establishments for their patrons or employees;

(i) Private persons and that are open to the public;

(j) Recreation districts;

(k) Municipalities;

(L) Counties; or

(m) A state agency.

[(6) "Public spa pool" means a public swimming pool or wading pool designed primarily to direct water or air-enriched water under pressure onto the bather's body with the intent of producing a relaxing or therapeutic effect.]

(7) "Public wading pool" means an artificial structure, and its appurtenances, [which] that contains water less than two feet deep, [which] is expressly designated or [which is] used with the knowledge and consent of the owner or operator for wading or recreational bathing, and [which] is for the use of any segment of the public, whether limited to patrons of a companion facility or not.

(8) "Recreation park" means those facilities as defined by ORS 446.310.

(9) "Travelers' accommodation" means those facilities as defined by ORS 446.310.

(10) "Variance" means written permission from the division for a public swimming pool, public spa pool or public wading pool to be operated when it does not comply with all the applicable rules for public swimming pools, public spa pools or public wading pools.

NOTE: Conforms structure of statute to legislative form and style; corrects grammar and syntax.

SECTION 126. ORS 448.115 is amended to read:

448.115. As used in ORS 448.115 to 448.285, 454.235 and 454.255 unless the context requires otherwise:

(1) "Assistant director" means the Assistant Director for Health.

[(1)] (2) "Connection" means the connection between a water system and a customer [which] that enables the customer to receive potable water from the system.

[(2)] (3) "Construction standards" means criteria for constructing or installing water system facilities.

(4) "Division" means the Health Division of the Department of Human Resources.

[(3)] (5) "Emergency" means a condition resulting from an unusual calamity such as a flood, an earthquake or an accidental spill of hazardous material [which] that can endanger the quality of the water produced by a water system.

[(4)] (6) "Operational requirements" means requirements [which] that prescribe the manner in which water systems must be operated.

[(5)] (7) "Permit" means a document issued to a water system [which] that authorizes it to commence or continue to operate in the State of Oregon and lists the conditions the system must meet to continue operating.

[(6)] (8) "Safe drinking water" means water [which] that is sufficiently free from biological, chemical, radiological or physical impurities such that individuals will not be exposed to disease or harmful physiological effects.

[(7)] (9) "Sanitary survey" means an on-site review of the source, facilities, equipment, operation and maintenance of a water system, including related land uses, for the purpose of evaluating the capability of that water system to produce and distribute safe drinking water.

[(8)] (10) "Special master" means the person appointed by the court to administrate the water system.

[(9)] (11) "Variance" means permission from the agency for a water system to provide water [which] that does not meet water quality standards.

[(10)] (12) "Water supplier" means any person, group of persons, municipality, district, corporation or entity [which] that owns or operates a water system.

[(11)] (13) "Water system" means a system for the provision of piped water for human consumption.

[(12)] (14) "Waterborne disease" means disease caused by chemical, physical, radiological or biological agents epidemiologically associated with infection, illness or disability [which] that is transported to human beings by water [which] that has been ingested or through contact as in bathing or other domestic uses.

NOTE: Inserts appropriate definitions; corrects grammar.

SECTION 127. ORS 455.190 is amended to read:

455.190. (1)(a) Under ORS 183.325 to 183.410, notwithstanding any other laws or rules to the contrary, the Department of Consumer and Business Services, with the concurrence of the appropriate board, shall establish:

(A) Qualifications and standards for special alternative inspection programs for commercial or industrial installations for other than new construction; and

(B) Delegation of special alternative inspection programs except as provided in subsections (3) and (5) of this section.

(b) Special alternative inspection programs established under this section apply to inspections under the structural, mechanical and plumbing specialty codes.

(2) For purposes of this section, special alternative inspection programs include:

(a) A program of random inspections of minor installations; and

(b) A master permit program [where] under which installations are periodically inspected.

(3) Any municipality that wishes to establish a structural or mechanical special alternative inspection program shall first make application to the department. The department may authorize the municipality to administer and enforce the provisions of this section if it finds that the municipality can comply with minimum standards and meet the qualifications adopted under subsection (1) of this section for inspections, permit applications and other matters to [insure] ensure adequate administration and enforcement of the structural, mechanical or plumbing special alternative inspection programs.

(4) Notwithstanding the provisions of ORS 455.160, a municipality that is authorized to administer and enforce a special alternative inspection program may, in exercising that authority, waive plan review and related fees of an installation carried out under structural, mechanical, plumbing and electrical master permits.

(5) Any municipality that provides plumbing inspections under the plumbing specialty code shall provide a program of random inspection of minor installations and a master permit program. If the municipality does not elect to provide a plumbing master permit program as provided in subsection (1) of this section, the municipality shall, on request of the owner, operating manager or plumbing contractor of a commercial or industrial facility that would otherwise qualify for a master permit program, issue a master individual inspection permit, provide plumbing inspection before any installation is covered or placed into service and charge for the inspection at the municipality's hourly plumbing inspection rate under the plumbing specialty code.

NOTE: Corrects word choice in (2)(b) and (3).

SECTION 128. ORS 455.525 is amended to read:

455.525. (1) In the manner provided in ORS 183.310 to 183.550 for the adoption of rules and after consideration of available technology and costs, the Building Codes Structures Board shall establish basic and uniform performance standards to provide maximum energy conservation and use of passive solar energy in the design, construction, reconstruction, alteration and repair of buildings and other structures. Such standards shall be submitted to the Director of the Department of Consumer and Business Services for proposed inclusion in the state building code as provided by ORS 455.030 (4).

(2) Any testing requirements adopted under subsection (1) of this section do not apply to fenestration products that are for use within residential structures if the fenestration products are:

(a) Used in the creation of sunrooms and solariums and constructed with a minimum of a one-half inch space between the panes; or

(b) Fenestration products used as skylights that constitute no more than 10 percent of the total glazing used in any dwelling unit.

(3) The board and the director shall jointly adopt by rule default thermal performance values for residential fenestration products that are produced in low volume. Any testing requirements adopted under subsection (1) of this section or ORS 455.020 or 455.030 do not apply to residential fenestration products that are produced in low volume.

(4) Fenestration products manufactured for use as skylights that are subject to the provisions of subsection (1) of this section and have frames that are wood, thermal break aluminum or aluminum with vinyl shall be deemed to meet any performance standards included in the state building code when the following glazing configurations are used:

(a) A minimum one-half inch space between the panes and low-e (emissivity) glass; or

(b) [Tripled layered] Triple-layered acrylic.

(5) Regulations relating to the use and conservation of energy adopted pursuant to ORS 455.020 (2) shall be reviewed by the board.

NOTE: Corrects terminology in (4)(b).

SECTION 129. ORS 456.515 is amended to read:

456.515. As used in ORS 456.515 to 456.725 and ORS chapter 458 unless the context requires otherwise:

(1) "Community Action Directors of Oregon" means an organization described in ORS 458.505.

(2) "Construction" includes, but is not limited to, new construction or moderate or substantial rehabilitation of existing structures or facilities.

(3) "Council" means the State Housing Council established under ORS 456.567.

(4) "Department" means the Housing and Community Services Department established under ORS 456.555.

(5) "Director" means the Director of the Housing and Community Services Department.

(6) "Disabled person" means a person who has a physical or mental impairment that substantially limits one or more major life activities.

(7) "Elderly household" means a household whose head is over the age of 58, residing in this state, who cannot obtain in the open market decent, safe and sanitary housing, including the costs of utilities and taxes, for 25 percent of the gross income of the household.

(8) "Major life activity" includes but is not limited to self-care, ambulation, communication, transportation, education, socialization, employment and ability to acquire, rent or maintain property.

(9)(a) "Multifamily housing" means a structure or facility established primarily to provide housing that provides more than one living unit, and may also provide facilities that are functionally related and subordinate to the living units for use by the occupants in social, health, educational or recreational activities:

(A) For the elderly, including but not limited to individual living units within such structures, mobile home and manufactured dwelling parks and residential facilities licensed under ORS 443.400 to 443.455 and other congregate care facilities with or without domiciliary care.

(B) For disabled persons, including, but not limited to, individual living units within such structures, mobile home and manufactured dwelling parks and residential facilities licensed under ORS 443.400 to 443.455 and other congregate care facilities with or without domiciliary care.

(b) "Multifamily housing" does not include nursing homes, hospitals, places primarily engaged in recreational activities and single-family, detached dwellings, except manufactured dwellings situated in a mobile home and manufactured dwelling park.

(10) "Target population" means:

(a) Elderly households; or

(b) Disabled persons.

NOTE: Sets forth official title in (5).

SECTION 130. ORS 459A.120 is amended to read:

459A.120. (1) Except as provided in ORS 459A.115, the fees established by the Environmental Quality Commission under ORS 459A.110 shall be deposited in the General Fund and credited to an account of the Department of Environmental Quality. Such moneys are continuously appropriated to the department to carry out the purposes set forth in subsection (2) of this section.

(2) The fees collected under ORS 459A.110 shall be used only for the following purposes:

(a) [To implement] Implementation of the provisions of ORS 459.411 to 459.417.

(b) Department of Environmental Quality programs to promote and enhance waste reduction and recycling statewide, including data collection, performance measurement, education and promotion, market development and demonstration projects.

(c) Department of Environmental Quality activities for ground water monitoring and enforcement of ground water protection standards at disposal sites that receive domestic solid waste.

(d) Solid waste planning activities by counties and the metropolitan service district, as approved by the department, including planning for special waste disposal, planning for closure of solid waste disposal sites, capacity planning for domestic solid waste and regional solid waste planning.

(e) Grants to local government units for recycling and solid waste planning activities.

(f) [To pay] Payment of administrative costs incurred by the department in accomplishing the purposes set forth in this section. The amount allocated under this paragraph shall not exceed 10 percent of the fees generated under ORS 459A.110.

NOTE: Corrects word choice in (2)(a) and (f).

SECTION 131. ORS 462.020 is amended to read:

462.020. (1) No person shall hold any race meet without having first obtained and having in full force and effect a license therefor issued by the Oregon Racing Commission.

(2) No trainer, driver, jockey, apprentice jockey, horse owner, dog owner, exercise [boy] person, agent, authorized agent, jockey's agent, stable foreman, groom, valet, veterinarian, horseshoer, steward, stable [watchman] guard, starter, timer, judge or other person acting as a participant or official at any race meet, including all employees of the pari-mutuel department, shall participate in race meets without having first obtained and having in full force and effect a license issued by the commission, pursuant to such rules as the commission shall make. The commission by rule may require other employees of a race meet licensee who are engaged in or performing duties at the race course to obtain a license issued by the commission prior to engaging or performing such duties. The commission by rule may also require persons, including corporations, who are not employees of a race meet licensee, but who are authorized to do business at the race course, to obtain a license issued by the commission prior to conducting such business.

(3) No person shall operate a public training track or public kennel for greyhounds participating in a race meet without having first obtained and having in full force and effect a license issued by the commission.

(4) The commission may require each licensee to be fingerprinted and photographed as part of the licensing procedure.

(5) Each person holding a license under this chapter shall comply with all rules and orders of the commission.

(6) Notwithstanding the requirements of subsection (2) of this section, the commission, upon receipt of a written application for a license on forms provided by the commission, may in its sound discretion issue a temporary license valid for a period not to exceed 10 days pending final approval or disapproval of the written application for a license.

NOTE: Deletes gender-specific language in (2).

SECTION 132. ORS 465.505 is amended to read:

465.505. (1) In addition to any other applicable federal or state law and regulation, the following waste minimization measures shall apply to dry cleaning facilities:

(a) All wastes, excluding wastewater, generated at any dry cleaning facility and containing dry cleaning solvents, including residues and filters, shall be managed, regardless of quantity generated, as hazardous wastes in accordance with federal and state laws otherwise applicable to management of hazardous wastes, except that, as to the cleanup of releases of dry cleaning solvents, ORS 465.503 shall apply rather than ORS 466.205;

(b) [Beginning three years after June 30, 1995,] Wastewater from dry cleaning machines shall not be discharged to any sanitary sewer or septic tank or to the waters of this state;

(c) [Beginning three years after June 30, 1995,] No dry cleaning facility shall include operation of transfer-type dry cleaning equipment using perchloroethylene;

(d) [Beginning on June 30, 1995,] All newly installed dry cleaning systems using perchloroethylene shall be of the dry-to-dry type and be equipped with integral refrigerated condensers for the control of perchloroethylene emissions;

(e) [Within three years from June 30, 1995,] All existing dry cleaning systems using perchloroethylene shall install refrigerated condensers or an equivalent;

(f) [Within three years from June 30, 1995,] Every dry cleaning facility shall install containment tanks capable of containing any leak, spill or release of dry cleaning solvent under and around each machine or item of equipment in which any dry cleaning solvent is used; and

(g) [Beginning three years after June 30, 1995,] All perchloroethylene dry cleaning solvent shall be delivered to dry cleaning facilities by means of closed, direct-coupled delivery systems.

(2) The Department of Environmental Quality may authorize the use of alternative measures at a dry cleaning facility in lieu of one or more of the measures described under subsection (1) of this section upon proof satisfactory to the department that the alternative measures can provide equivalent protection for public health and the environment, can achieve equivalent waste minimization and are consistent with other applicable laws and regulations.

(3) [Beginning] Annually on March 1, [1997, and annually thereafter,] every dry cleaning operator shall provide to the department, on forms to be supplied by the department, information regarding compliance with the waste minimization measures set forth in subsection (1) of this section and any other information as the department considers necessary for carrying out the purposes of ORS 465.200 and 465.500 to 465.545.

(4) Notwithstanding any law to the contrary, [upon June 30, 1995,] any release of dry cleaning solvents exceeding one pound shall be immediately reported to the department by the dry cleaning operator for the facility having the release.

(5) The Environmental Quality Commission is authorized to adopt rules necessary to implement ORS 465.200 and 465.500 to 465.545, including but not limited to rules implementing the recommendations of the advisory group established under ORS 465.507 or requiring the implementation of new waste minimization technologies.

NOTE: Deletes obsolete provisions.

SECTION 133. ORS 465.507 is amended to read:

465.507. (1) [Within 180 days after June 30, 1995,] The Director of the Department of Environmental Quality shall appoint an advisory group comprised of members representing a balance of at least the following interests:

(a) Dry cleaning operators;

(b) Dry cleaning industry members other than operators;

(d) Environmental organizations; and

(e) Local governments.

(2) The advisory group shall meet periodically to review and advise the Department of Environmental Quality regarding:

(a) Methods and standards for removal and remedial actions as applied by the department at dry cleaning facilities;

(b) Waste minimization and other requirements as applied to dry cleaning facilities, including new technologies and industry practices;

(d) The adequacy of revenue generated by fees assessed under ORS 465.517 to 465.523 for meeting the costs of removal and remedial actions at dry cleaning facilities; and

(e) Any other matters pertinent to the purposes of ORS 465.200 and 465.500 to 465.545.

[(3) The department shall report to the Seventieth Legislative Assembly regarding implementation of ORS 465.200 and 465.500 to 465.545. The report shall include any recommendations for amendment of ORS 465.200 and 465.500 to 465.545 considered necessary by the department to ensure the adequate and timely cleanup of contamination at dry cleaning facilities.]

NOTE: Deletes obsolete provisions.

SECTION 134. ORS 465.523 is amended to read:

465.523. (1) In addition to any other tax or fee imposed by law, a fee is imposed on the use of dry cleaning solvent at a dry cleaning facility within this state if:

(a) The purchaser or transferee of the solvent did not receive a bill or invoice showing the correct fee imposed under ORS 465.520 on the retail sale or transfer; or

(b) No fee was paid with respect to the retail sale or transfer and the purchaser or transferee had reason to believe that no fee would be paid.

(2) The fee imposed by this section equals the fee that should have been imposed on the retail sale or transfer of the dry cleaning solvent by ORS 465.520 less the fee, if any, shown on the bill or invoice.

[(3) This section shall not apply to dry cleaning solvent assessed a fee under section 12, chapter 427, Oregon Laws 1995.]

NOTE: Deletes obsolete provision.

SECTION 135. ORS 468.068 is added to and made a part of ORS chapter 468B.

NOTE: Adds statute to appropriate series.

SECTION 136. ORS 468.150 is amended to read:

468.150. After alternative methods for field sanitation and straw utilization and disposal are approved by [the committee and] the Department of Environmental Quality, "pollution control facility," as defined in ORS 468.155, shall include such approved alternative methods and persons purchasing and utilizing such methods shall be eligible for the benefits allowed by ORS 468.155 to 468.190.

NOTE: Deletes obsolete provision; sets forth official title.

SECTION 137. ORS 468.225 is amended to read:

468.225. All [undistributed bond funds and revenues received as payment upon] amounts that are treated as gross proceeds of agency bonds or other obligations, if invested, shall be invested [to produce an adjusted yield not exceeding the limitations imposed by section 103, subsection (d) of the Internal Revenue Code of 1954, and amendments thereto in effect on March 1, 1971] in compliance with section 148 of the Internal Revenue Code of 1986, and the amendments thereto in effect on the effective date of this 1999 Act.

NOTE: Revises obsolete provisions; corrects syntax.

SECTION 138. ORS 468.501 and 468.503 are added to and made a part of ORS 468.506 to 468.521.

NOTE: Adds statutes to appropriate series.

SECTION 139. ORS 468A.098 is amended to read:

468A.098. (1) The Environmental Quality Commission shall act on an application for certification before the 120th day after the filing of the application under ORS 468A.096. The action of the commission shall include certification of the actual cost of the technologies or processes resulting in the elimination of emissions regulated under 40 CFR 63.320 to 63.325, 63.340 to 63.347 or 63.460 to 63.469. The actual cost certified shall not exceed the taxpayer's own cash investment in the technologies or processes. The amount of the actual cost certified for all technologies or processes installed in any taxable year at a single business location shall not exceed $75,000.

(2) If the commission rejects an application for certification, or certifies a lesser actual cost of the technologies or processes than was claimed in the application for certification, the commission shall cause written notice of its action, and a concise statement of the findings and reasons therefor, to be sent by registered or certified mail to the applicant before the 120th day after the filing of the application.

(3) If the application is rejected for any reason other than achievement of the program limitation imposed under subsection (7) of this section, including the information furnished by the applicant as to the cost of the technologies or processes, or if the applicant is dissatisfied with the certification of technology or process actual cost, the applicant may appeal the rejection as provided in ORS 468.110. The rejection of the certification is final and conclusive on all parties unless the applicant takes an appeal therefrom as provided in ORS 468.110 before the 30th day after notice was mailed by the commission.

(4)(a) The commission shall certify the cost of technologies or processes for which an application has been made under ORS 468A.096, if the commission finds that the technologies or processes:

(A) Were installed in accordance with the requirements of ORS 468A.096 (1); and

(B) Further the intents and purposes of 40 CFR 63.320 to 63.325, 63.340 to 63.347 or 63.460 to 63.469.

(b) No determination of the actual cost of the technologies or processes to be certified shall be made until receipt of the application.

(c) The commission may certify the cost of more than one technology or process at a location under one certificate. A certificate under this section is effective for purposes of tax relief in accordance with ORS 315.311 if the technologies or processes were installed on or after January 1, 1996, and on or before December 31, 1999.

(5) If the person receiving the certificate is a partnership, each partner shall be entitled to take tax credit relief beginning with the tax year following the tax year of certification as provided in ORS [315.304] 315.311, based on that partner's pro rata share of the certified cost of the technology or process as determined by the partner's pro rata share of the business that installed the technology or process.

(6) Certification under this section shall be granted for a period of five consecutive years beginning with the tax year of the person in which the technology or process is certified under this section.

(7) The total actual cost certified for all projects completed on or after January 1, 1996, and on or before December 31, 1999, shall not exceed $5,200,000.

NOTE: Corrects ORS reference in (5).

SECTION 140. Section 141 of this 1999 Act is added to and made a part of ORS 469.800 to 469.845.

NOTE: Adds new provision to appropriate series.

SECTION 141. As used in ORS 469.800 to 469.845, "council" means the Pacific Northwest Electric Power and Conservation Planning Council.

NOTE: Sets forth official title definition for series.

SECTION 142. ORS 471.253 is amended to read:

471.253. (1) A brewery-public house license shall allow the licensee:

(a) To manufacture annually on the licensed premises, store, transport, sell to wholesale malt beverage and wine licensees of the Oregon Liquor Control Commission and export malt beverages;

(b) To sell malt beverages manufactured on or off the licensed premises at retail for consumption on or off the premises;

(c) To sell malt beverages in brewery-sealed packages at retail directly to the consumer for consumption off the premises;

(d) To sell on the licensed premises at retail malt beverages manufactured on or off the licensed premises in unpasteurized or pasteurized form directly to the consumer for consumption off the premises, delivery of which may be made in a securely covered container supplied by the consumer;

(e) To sell wine and cider containing not more than 21 percent alcohol by weight at retail for consumption on or off the premises; and

(f) To conduct the activities described in paragraphs (b) to (e) of this subsection at one location other than the premises where the manufacturing occurs.

(2) A brewery-public house licensee, or any person having an interest in the licensee, is a retail licensee for the purposes of ORS 471.394 and, except as otherwise provided by this section and ORS 471.396, may not acquire or hold any right, title, lien, claim or other interest, financial or otherwise, in, upon or to the premises, equipment, business or merchandise of any manufacturer or wholesaler, as defined in ORS 471.392. A brewery-public house licensee, or any person having an interest in the licensee, is also a manufacturer for the purposes of ORS 471.398 and, except as otherwise provided by this section and ORS 471.400, may not acquire or hold any right, title, lien, claim or other interest, financial or otherwise, in, upon or to the premises, equipment, business or merchandise of any other retail licensee, as defined in ORS 471.392.

(3) A brewery-public house licensee, or any person having an interest in the licensee, is a retail licensee for the purposes of ORS 471.398 and, except as otherwise provided by this section and ORS 471.400, may not accept directly or indirectly any financial assistance described in ORS 471.398 from any manufacturer or wholesaler, as defined in ORS 471.392. A brewery-public house licensee, or any person having an interest in the licensee, is also a manufacturer for the purposes of ORS 471.398 and, except as otherwise provided by this section and ORS 471.400, may not provide directly or indirectly any financial assistance described in ORS 471.398 to any retail licensee, as defined in ORS 471.392. The prohibitions on financial assistance in ORS 471.398 do not apply to financial assistance between manufacturing and retail businesses licensed to the same person under the provisions of this section.

(4) Notwithstanding subsection (2) of this section, a brewery-public house licensee, or any person having an interest in the licensee, may also hold a winery license authorized by ORS 471.223. A brewery-public house licensee, or any person having an interest in the licensee, may also hold a warehouse license authorized by ORS 471.242.

(5) Notwithstanding subsection (2) of this section, a brewery-public house licensee is eligible for a retail malt beverage license and for special one-day retail beer and wine licenses.

(6)(a) Notwithstanding subsection (2) of this section, and except as provided by paragraph (b) of this subsection, a brewery-public house licensee, or any person having an interest in the licensee, may also hold a dispenser license issued under ORS chapter 472. If a person holds both a brewery-public house license and a dispenser license, nothing in this chapter shall prevent the sale by the licensee of both distilled liquor and malt beverages manufactured under the brewery-public house license.

(b) The commission may not issue a dispenser license to a brewery-public house licensee under the provisions of this subsection if the brewery-public house licensee, or any person having an interest in the licensee or exercising control over the licensee, is a brewery that brews more than 200,000 barrels of malt beverages annually or a winery that produces more than 200,000 gallons of wine annually.

(c) The commission may not issue a dispenser license to a brewery-public house licensee under the provisions of this subsection if the brewery-public house licensee, or any person having an interest in the licensee or exercising control over the licensee, is a distillery, unless the distillery produces only pot distilled liquor and produces no more than 12,000 gallons of pot distilled liquor annually.

(7) Notwithstanding any other provision of this chapter, a brewery-public house licensee, or any person having an interest in the licensee, may also hold a distillery license if the licensee produces only pot distilled liquor, and produces no more than 12,000 gallons of pot distilled liquor annually. No provision of this chapter prevents a brewery-public house licensee from becoming a retail sales agent of the commission for the purpose of selling distilled liquors.

(8) Notwithstanding subsection (2) of this section, the commission by rule may authorize a brewery-public house licensee to co-produce special events with other manufacturers.

(9)(a) Notwithstanding subsection (2) of this section, a brewery-public house licensee may hold, directly or indirectly, an interest in a manufacturer or wholesaler, provided that the interest does not result in exercise of control over, or participation in the management of, the manufacturer's or wholesaler's business or business decisions and does not result in exclusion of any competitor's brand of alcoholic liquor.

(b) Notwithstanding subsection [(3)] (2) of this section, a manufacturer or wholesaler, and any officer, director or substantial stockholder of any corporate manufacturer or wholesaler, may hold, directly or indirectly, an interest in a brewery-public house licensee, provided that the interest does not result in exercise of control over, or participation in the management of, the licensee's business or business decisions and does not result in exclusion of any competitor's brand of alcoholic liquor.

(10) For purposes of ORS chapter 473, a brewery-public house licensee shall be considered to be a manufacturer.

NOTE: Corrects internal reference in (9)(b).

SECTION 143. ORS 472.125 is amended to read:

472.125. A hotel dispenser license may be issued by the Oregon Liquor Control Commission to a hotel. The hotel need not have a restaurant open to the general public, but must make food available to its guests. The hotel must have at least 200 guest rooms and have banquet and meeting facilities for at least 200 people. Video lottery game terminals may not be placed on premises licensed under a hotel dispenser license. [Hotel dispenser licenses are not subject to ORS 472.105.] Except as provided in this section, a hotel dispenser license has the same privileges, and is subject to the same restrictions, as a Class A dispenser license.

NOTE: Deletes reference to repealed statute.

SECTION 144. ORS 475A.010, 475A.040, 475A.050, 475A.135 and 475A.160 are added to and made a part of ORS chapter 475A.

NOTE: Adds statutes to appropriate series.

SECTION 145. ORS 475A.010 is amended to read:

475A.010. (1) The Legislative Assembly finds that:

(a) The prohibited conduct defined in [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter is undertaken in the course of profitable activities which result in, and are facilitated by, the acquisition, possession or transfer of property subject to forfeiture under [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter;

(b) Transactions involving property subject to forfeiture under [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter escape taxation;

(d) There is a need to provide for the forfeiture of certain property subject to forfeiture under [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter, to provide for the protection of the rights and interests of affected persons, and to provide for uniformity throughout the state with respect to the laws of this state which pertain to the forfeiture of real and personal property based upon prohibited conduct as defined in [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter.

(2) Therefore, the Legislative Assembly adopts the provisions of [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter as the sole and exclusive law of the state pertaining to the forfeiture of real and personal property based upon the prohibited conduct, thereby replacing all charter provisions, ordinances, regulations and other enactments adopted by cities and counties pertaining to such forfeitures. After July 24, 1989, no actions for forfeiture shall be initiated except those in compliance with the provisions of [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter.

(3) [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135 are] This chapter is applicable throughout this state and in all cities and counties. The electors or the governing body of a city or county shall not enact and the governing body shall not enforce any charter provision, ordinance, resolution or other regulation that is inconsistent with this section.

(4) [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135 do] This chapter does not impair the right of any city or county to enact ordinances providing for the forfeiture of property based upon conduct that is other than prohibited conduct as defined in [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter if:

(a) The property was used to commit the conduct described in the ordinances, or is proceeds of the conduct; and

(b) The forfeiture is subject to procedures and limitations set forth in [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter.

(5) Nothing in this [section or in ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] chapter shall be construed to limit or impair any right or remedy that any person or entity may have under ORS 166.715 to 166.735. The application of any remedy under [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter is intended to be remedial and not punitive and shall not preclude or be precluded by the application of any previous or subsequent civil or criminal remedy under any other provision of law. Civil remedies under [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter are supplemental and not mutually exclusive.

NOTE: Inserts appropriate ORS chapter references; deletes superfluous ORS references.

SECTION 146. ORS 475A.015 is amended to read:

475A.015. Subject to this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135], all right, title and interest in property forfeited under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] shall vest in the forfeiting agency upon commission of the prohibited conduct.

NOTE: Deletes superfluous ORS references.

SECTION 147. ORS 475A.035 is amended to read:

475A.035. Property may be seized for forfeiture as provided in this section.

(1) Any person who delivers property in obedience to an order or direction to deliver the property under this section shall not be liable:

(a) To any person on account of obedience to the order or direction; or

(b) For any costs incurred on account of any contamination of the delivered property. This includes, but is not limited to, any disposal costs for any property forfeited under ORS 475A.020, any hazardous waste or material, any contraband or any other contamination contained in property seized under this section.

(2) Property may be seized by any police officer without a court order if:

(a) The property has been the subject of an earlier judgment in favor of any forfeiting agency in an earlier civil in rem proceeding under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135];

(b) There is probable cause to believe that property is subject to forfeiture, provided that the property may constitutionally be seized without a warrant;

(c) The seizure is in the course of a constitutionally valid criminal investigative stop, arrest or search, and there is probable cause to believe that the property is subject to forfeiture;

(d) The property is directly or indirectly dangerous to the health or safety of any person; or

(e) An owner consents to the seizure.

(3) Except as provided in ORS 475A.045, with regard to cash or other assets which at the time of seizure are held in any form of account in a financial institution, if the property is in whole or in part intangible, the person having control or custody of the property shall deliver the same over to the police officer.

(4)(a) Property may be seized by any police officer pursuant to an order of the court. Forfeiture counsel or a seizing agency may apply for an ex parte order directing seizure of specified property.

(b) Application shall be made to any judge as defined in ORS 133.525. The application shall be supported by one or more affidavits setting forth the facts and circumstances tending to show where the objects of the seizure are to be found. The court shall issue the order upon a finding of probable cause to believe that the described property is subject to forfeiture. The order may be set out on the face of a search warrant.

(c) Except as provided in ORS 475A.045, with regard to cash or other assets which at the time of seizure are held in any form of account in a financial institution, if the property is in whole or in part intangible, the order shall direct any person having control or custody of the property to deliver the same over to the seizing agency or to the court to abide judgment.

(5) Property may be constructively seized by posting notice of seizure for forfeiture on it or by filing notice of seizure for forfeiture or notice of pending forfeiture in the public records that impart constructive notice of matters relating to such property. A notice which is filed must include a description of the property that is the subject of the seizure. Real property, including interests arising out of land sale contracts, shall be seized only upon recording notice of seizure containing a legal description of the property in the mortgage records of the county in which the real property is located.

(6) Property which has been unconstitutionally seized may be subject to forfeiture if the basis for forfeiture under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] is sustained by evidence which is not the fruit of the unconstitutional seizure.

(7) Promptly upon seizure, the officer who seized the property shall make an inventory of the property seized and shall deliver a receipt embodying the inventory to the person from whose possession they are taken or to the person in apparent control of the property at the time it is seized. The officer may, in addition, provide an estimate of the value of the property seized and information on the right to file a claim under ORS 475A.055 (2), and the deadline for filing that claim. If the property is unoccupied or there is no one present in apparent control, the officer shall leave the receipt suitably affixed to the property. If the property is physically removed from the location of seizure and it is unoccupied or there is no one present in apparent control, then the officer shall promptly file the receipt in the public records of the forfeiting agency. Every receipt prepared under this subsection shall contain, in addition to an inventory of the property seized, the following information:

(a) The identity of the seizing agency; and

(b) The address and telephone number of the office or other place where the person may obtain further information concerning the forfeiture.

(8) In determining probable cause or reasonable suspicion for seizure, evidence that cash, weapons or negotiable instruments were found in close proximity to controlled substances or to instrumentalities of prohibited conduct gives rise to an inference that the cash, weapons or negotiable instruments are subject to forfeiture. This inference is sufficient in itself to carry the forfeiting agency's initial burden under ORS 475A.080.

(9) In the event that property is seized from the possession of a person who asserts a possessory lien over such property pursuant to applicable law, notwithstanding any other provision of law, any lien of the person from whom the property was seized shall remain in effect and shall be enforceable as fully as though the person had retained possession of the property.

NOTE: Deletes superfluous ORS references in (2)(a) and (6).

SECTION 148. ORS 475A.045 is amended to read:

475A.045. (1)(a) Except as otherwise provided in this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135], property seized for forfeiture is not subject to replevin, conveyance, sequestration or attachment, nor is it subject to a motion or order to return under ORS chapter 133. The seizure of property or the commencement of a forfeiture proceeding pursuant to this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] shall not abate, impede or in any way delay the initiation or prosecution of a suit or action by a financial institution for the possession of seized property in which the financial institution has or purports to have a lien or security interest or for the foreclosure of such lien or security interest. A financial institution may proceed with any suit or action involving property in which it has a lien or security interest even though a seizure has occurred and forfeiture proceedings have been or will be commenced. Any such suit or action may be consolidated with the forfeiture proceeding for the purpose of trial. If property which may be subject to forfeiture is sold prior to the conclusion of the forfeiture proceedings, the sheriff, trustee or other person conducting the sale and who has actual notice of the forfeiture proceedings shall distribute the sale proceeds as follows:

(A) To the expenses of the sale;

(B) To the payment of the obligations owed to the foreclosing financial institution that are secured by the property and to any other person whose lien or security interest in the property has been foreclosed in the suit or action in the order determined by the court; and

(C) The surplus, if any, shall be distributed to the seizing or forfeiting agency, or to the court in which the forfeiture proceedings are pending.

(b) The sheriff, trustee or other person who distributes the sale proceeds as provided shall not be liable to any person who has or asserts an interest in the property.

(2) Within 30 days following seizure of property for forfeiture, the seizing agency, in consultation with the district attorney of the county in which the property was seized for forfeiture, shall determine whether it will seek the forfeiture of the property. If the seizing agency elects not to seek forfeiture, it shall pay all costs and expenses relating to towing and storage of the property, and shall cause to be discharged any possessory chattel liens arising under ORS 87.152 to 87.162 that have attached to the property since its seizure and release the property. The property may be released to a person other than the person from whose custody or control the property was taken if the seizing agency, forfeiting agency or forfeiture counsel first mails to the last-known addresses of all persons known to have an interest in the property a notice of intent to release the property. The notice shall specify the person to whom the property is to be released and shall detail the time and place of the release. An agency that complies with the provisions of this subsection by paying costs and expenses of towing and storage, discharging possessory liens, mailing any required notices and releasing the property shall not be liable for its actions under this subsection or for any consequences thereof.

(3) A forfeiting agency shall, pending forfeiture and final disposition and subject to the need to retain it in any criminal proceeding, provide that property in the physical custody of the seizing or forfeiting agency be serviced or maintained as may be reasonably appropriate to preserve the value of the property.

(4) A forfeiting agency may, pending forfeiture and final disposition and subject to the need to retain seized property in any criminal proceeding:

(a) Provide that the seized property be transferred for forfeiture to any city, county, state or federal agency with forfeiture authority, provided that no such transfer shall have the effect of diminishing or reducing the rights of any third party under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135].

(b) Apply to the court for an order providing that the seized property may be sold, leased, rented or operated in the manner and on the terms that may be specified in the court's order. The court shall deny any application unless the sale, lease, rental or operation of the property will be conducted in a commercially reasonable manner and shall not result in a material reduction of the property's value. An order shall only be entered:

(A) After notice and opportunity to be heard is provided to all persons known to have or to claim an interest in the property; and

(B) With the consent of all persons holding security interests of record in the property.

(5) Unless otherwise ordered by the court, the proceeds of the sale, leasing, renting or operation under subsection (4) of this section shall be held by the forfeiting agency, and the rights of holders of security interests of record in the property shall attach to the proceeds of the sale, leasing, renting or operation in the same order of priority as interests attached to the property.

(6)(a) Except as provided in paragraph (b) of this subsection and except for currency with apparent or known intrinsic collector value, all cash seized for forfeiture, together with all cash received from the sale, leasing, renting or operation of the property, shall be immediately deposited in an insured interest-bearing forfeiture trust account or accounts maintained by the seizing or forfeiting agency exclusively for this purpose. Cash may be retained as evidence in a criminal proceeding but shall be deposited immediately when the need to retain it as evidence is discharged.

(b) Notwithstanding paragraph (a) of this subsection, all cash seized for forfeiture which at the time of seizure is deposited in any form of account in a financial institution may remain in the account in the financial institution. From the time of seizure until the forfeiture proceeding is abandoned, or until a court ultimately enters or fails to enter a judgment of forfeiture, all deposits except the deposit of interest by the financial institution, withdrawals or other transactions involving the account are prohibited, unless approved by the court.

(c) Subject to any court order, interest earned upon cash deposited in a forfeiture trust account or held in an account in a financial institution under this subsection shall be disbursed as follows:

(A) If the forfeiture proceeding is abandoned, or if the court ultimately fails to enter a judgment of forfeiture or foreclosure, any interest earned, together with the cash deposited in the forfeiture trust account in connection with the seizure in question, shall be paid by the seizing or forfeiting agency to the person from whom it was seized and any interest earned, together with the cash deposited in an account in a financial institution shall be released by the seizing or forfeiting agency to the person from whom it was seized.

(B) If a judgment of forfeiture is entered, but parties other than the forfeiting agency establish rights to portions of the amount deposited in the forfeiture trust account or the account held in a financial institution which are in the aggregate larger than or equal to the cash on deposit plus interest earned thereon, the interest, together with the cash on deposit, shall be disbursed by the forfeiting agency to the parties in the order of their priority.

(C) If a judgment of forfeiture is entered, and the total amount arising out of the seizure which is on deposit in the forfeiture trust account or in an account in a financial institution, including interest earned on moneys deposited, is greater than the aggregate amount needed to satisfy the established interests of security interest holders, lienholders and other claimants, then the balance remaining after payment by the forfeiting agency to parties shall be retained by the forfeiting agency.

(7) If the property seized for forfeiture consists of stocks, bonds, promissory notes, or other security or evidence of indebtedness, and the property is held in some form of account in a financial institution, the property may remain in the account pending a final decision in the forfeiture proceedings. Unless otherwise allowed by order of the court, no transactions involving the account shall be permitted other than the deposit or reinvestment of dividends or other normally recurring payments on the property. Any accrual to the value of the property during the pendency of forfeiture proceedings shall be disbursed in the manner provided for the disbursement of interest under subsection (6) of this section.

(8) If property is seized for forfeiture or if a notice of forfeiture is filed without a prior judicial determination of probable cause, a court, on application filed by an owner of or interest holder in the property within 15 days after notice of its seizure for forfeiture, or actual knowledge of it, whichever is earlier, may, after five days' written notice to the forfeiture counsel, issue an order to show cause to the forfeiting agency, for a hearing on the sole issue of whether probable cause for forfeiture of the property then exists. If the court finds that there is no probable cause for forfeiture of the property, the property seized for forfeiture from the applicant or subjected to the notice of forfeiture shall be released from its seizure for forfeiture or lien pending the outcome of a judicial proceeding under ORS 475A.075.

NOTE: Deletes superfluous ORS references in (1)(a) and (4)(a).

SECTION 149. ORS 475A.075 is amended to read:

475A.075. A civil action in rem may be brought as provided in this section in any case in which forfeiture is sought. A civil action in rem must be brought if the property is real property, the property is in whole or part a manufactured dwelling as defined in ORS 446.003, the property is a floating home as defined in ORS 830.700 or if the property is subject to an interest in favor of any person known to have an interest, other than a person who engaged in prohibited conduct.

(1) If a forfeiting agency has commenced proceedings under ORS 475A.055, then an action shall be commenced by forfeiture counsel, within 15 days of receipt of a claim. If no proceedings have been commenced under ORS 475A.055, then the action shall be commenced by forfeiture counsel within 30 days of seizure. The property may be released by forfeiture counsel as provided in ORS 475A.045 (2).

(2) An action is commenced by filing a complaint. Responses to a complaint shall conform to the following procedure:

(a) A person claiming an interest in the property shall respond as provided in the Oregon Rules of Civil Procedure and, if a claim has not previously been filed, by filing a claim in the form set forth in ORS 475A.055 (3) with the court and posting a bond with the court. The bond shall be a cash bond in an amount equal to 10 percent of the value of the interest claimed by the person in the property. Upon good cause shown by motion and affidavit filed with the initial appearance, the court may waive or reduce the bond. Failure to file an appearance, claim and bond shall constitute a default. The bond shall be returned to the claimant upon the entry of a final determination on the claim.

(b) Notwithstanding the provisions of paragraph (a) of this subsection, a financial institution holding an interest in the seized property shall respond to a complaint with an affidavit establishing that the financial institution's interest in the property was acquired:

(A) In the regular course of business as a financial institution;

(B) For valuable consideration;

(D) In good faith and without intent to defeat the interest of any potential forfeiting agency; and

(E) With respect to personal property, prior to the seizure of the property, or with respect to real property, recorded prior to the recording of notice of the seizure of the real property in the mortgage records of the county in which the real property is located. Failure to file an affidavit shall constitute a default. The affidavit shall be filed within 30 days from the date of service.

(c) Notwithstanding the provisions of paragraph (a) of this subsection, any person, other than a financial institution, who transfers or conveys an interest in real property pursuant to a contract for transfer or conveyance of an interest in real property as defined in ORS 93.905 and who retains an interest in the real property, or any successor in interest, may respond to a complaint with an affidavit establishing that the person:

(A) Received the interest in return for valuable consideration or by way of devise or intestate succession;

(B) Had no knowledge at the time of transfer or conveyance of the prohibited conduct;

(D) Recorded the interest in the mortgage records of the county in which the real property is located prior to the recording of any notice of intent to seize or notice of seizure; and

(E) Continued to hold the interest without acquiescing in the prohibited conduct.

(d) For the purposes of paragraph (c) of this subsection, a person shall be considered to have acquiesced in prohibited conduct if the person knew of the prohibited conduct and knowingly failed to take reasonable action under the circumstances to terminate or avoid use of the property in the course of prohibited conduct. For purposes of this section, "reasonable action under the circumstances" includes, but is not limited to:

(A) Reporting the prohibited conduct to a police agency;

(B) Commencing action that will assert the rights of the affiant as to the property interest;

(D) Seeking an abatement order under the provisions of ORS 105.505 to 105.520, or under the provisions of ORS 105.555 to 105.565 and 105.575 to 105.600, or under any ordinance or regulation allowing abatement of nuisances.

(e) The affidavit permitted by paragraph (c) of this subsection shall be filed within 30 days from the date of service of the summons and complaint. Failure to file an affidavit or to respond as set forth in paragraph (a) of this subsection shall constitute a default.

(f) In response to an affidavit filed pursuant to paragraph (c) of this subsection, the forfeiting agency may controvert any or all of the assertions made in the affidavit. The affidavit of the forfeiting agency shall be filed within 20 days of the filing of the affidavit filed under paragraph (c) of this subsection. The transferor, conveyor or successor in interest may respond, within five days of the filing of the affidavit of the forfeiting agency, with a supplemental affidavit limited to the matters stated in the affidavit of the forfeiting agency. If the forfeiting agency does not file an affidavit within the time allowed, the transferor, conveyor or successor in interest shall be considered a financial institution for all purposes under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135].

(g)(A) If the forfeiting agency files an affidavit under paragraph (f) of this subsection, the court shall determine from the affidavits whether there is a genuine issue of material fact with respect to the assertions of the transferor, conveyor or successor in interest.

(B) If the court determines that there is no genuine issue of material fact as to the truth of the assertions in the affidavit filed under paragraph (f) of this subsection, the transferor, conveyor or successor in interest shall be considered a financial institution for all purposes under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135]. The court shall order the forfeiting agency to pay the costs and disbursements, including attorney fees, of the prevailing transferor, conveyor or successor in interest if the forfeiting agency does not prevail.

(C) If the court determines that there is a genuine issue of material fact as to the truth of the assertions in the affidavit filed pursuant to paragraph (f) of this subsection, the transferor, conveyor or successor in interest shall, within 15 days, respond as provided in paragraph (a) of this subsection. The court may order the transferor, conveyor or successor in interest to pay the attorney fees of the forfeiting agency that were incurred in contesting the affidavit of the transferor, conveyor or successor in interest if the court determines that the affidavit of the transferor, conveyor or successor in interest was frivolous.

(3) All persons known to have an interest in the property, including any claimant, shall be served with a true copy of the inventory of the property prepared pursuant to ORS 475A.035 and 475A.055, the summons and the complaint as provided in ORCP 5 and 7 D. Notice of the action shall be published as provided in ORCP 7 D(6)(b) to (d) unless notice has previously been published in accordance with ORS 475A.055 (1). In the event that a forfeiture involves a vehicle, and the notices required by this statute have been given, and substitute service on the claimant is required because personal service cannot be reasonably accomplished, service as authorized by ORCP 7 D(4) shall be sufficient to establish jurisdiction over a registered owner or operator of a vehicle. If the property is in whole or part a manufactured dwelling as defined in ORS 446.003 or a floating home as defined in ORS 830.700, the forfeiting agency shall, in addition to serving all persons known to have an interest in the property, record a notice of seizure containing a description of the manufactured dwelling or floating home in all public offices maintaining records that impart constructive notice of matters relating to manufactured dwellings or floating homes.

(4) All judicial proceedings under this chapter shall be governed by the Oregon Rules of Civil Procedure to the extent that they do not conflict with specific provisions of this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135].

(5)(a) The filing of criminal charges related to any civil proceeding for forfeiture may, upon motion of forfeiture counsel or the district attorney or upon motion on behalf of defendant in a related criminal proceeding, stay the civil forfeiture proceeding until the trial, plea or dismissal of the related criminal proceeding. A motion for stay on behalf of the defendant in a related criminal proceeding shall constitute a waiver of double jeopardy by the defendant as to the civil forfeiture proceeding and any related criminal proceeding. Pursuant to subsection (6) of this section, a civil forfeiture proceeding stayed under this paragraph may be consolidated for trial or other resolution with any related criminal proceeding.

(b) The court may stay the civil forfeiture proceeding upon motion of a party and good cause shown. Good cause may include a reasonable fear on the part of a claimant that the claimant could be prosecuted for conduct arising out of the same factual situation which gave rise to the seizure of property. Pursuant to subsection (6) of this section, a civil forfeiture proceeding stayed under this paragraph may be consolidated for trial or other resolution with any related criminal proceeding.

(6) Notwithstanding any stay entered pursuant to subsection (5)(a) or (b) of this section, an action pursuant to this section may be consolidated with any other action pursuant to this section relating to the same property or parties on motion by any party in any related action. Upon motion by the state or a political subdivision of the state, or any criminal defendant who is also a claimant, a civil forfeiture proceeding under this section may be consolidated for trial or other resolution with any related criminal proceeding. Trial or other resolution of the civil forfeiture action shall immediately follow the related criminal trial or other resolution, shall be part of the same proceeding and shall be heard by the same trier of fact. Any objection by the defendant to the consolidation or any motion by the defendant to sever the related criminal case from the civil proceeding for forfeiture shall constitute a waiver of double jeopardy as to any related criminal action and the civil forfeiture proceeding.

(7) The action shall be commenced and tried:

(a) In the case of real property, in the circuit court in a county in which the property is situated; or

(b) In all other cases, in the circuit court of the county in which the property was seized or the county in which any part of the prohibited conduct took place.

NOTE: Deletes superfluous ORS references in (2)(f), (2)(g)(B) and (4).

SECTION 150. ORS 475A.110 is amended to read:

475A.110. A judgment of forfeiture shall recite the basis for the judgment.

(1) If no financial institutions have filed the affidavit described in ORS 475A.075 (2)(b), and if the court has failed to uphold the claim or affidavit of any other claimant, the effect of the judgment shall be that:

(a) Title to the property shall pass to the forfeiting agency free of any interest or encumbrance thereon in favor of any person who has been given notice;

(b) The forfeiting agency may transfer good and sufficient title to any subsequent purchaser or transferee, and the title shall be recognized by all courts, by the state, by the departments and agencies of the state, and by any political subdivision. In the case of real property, the forfeiting agency shall warrant the title against constitutional defect. A warranty under this section is limited to the purchase price of the real property; and

(c) Any department, agency or officer of the state or any political subdivision whose official functions include the issuance of certificates or other evidence of title shall be immune from civil or criminal liability when such issuance is pursuant to a judgment of forfeiture.

(2) If any affidavits are filed by financial institutions as provided in ORS 475A.075 (2)(b), or if any claimants file an appearance, claim and bond as provided in ORS 475A.075 (2)(a) or an affidavit as provided in ORS 475A.075 (2)(c):

(a) The court shall foreclose all security interests, liens and vendor's interests of financial institutions and claimants as to which the court determines that there is a legal or equitable basis for foreclosure; and

(b) All other interests applicable to the property, which are not foreclosed or otherwise eliminated through a judgment and decree of foreclosure, shall, if and to the extent that they are valid and subsisting, remain in effect, and the property shall remain subject to them upon completion of the forfeiture proceeding.

(3) Notwithstanding the provisions of this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] or other law, if a financial institution or other person has filed an affidavit described in ORS 475A.075, or if the court has upheld the claim of any claimant, then as to each item of property seized:

(a) If the court has determined that the property should not be forfeited and has not foreclosed the security interests, liens or other interests covering the property, the court shall render judgment in favor of the owner of the property, the property shall be returned to the owner and all security interests, liens and other interests applicable to the property shall remain in effect as though the property had never been seized. Upon the return of the property to the owner, the seizing agency shall pay all costs and expenses relating to towing and storage of the property, and shall cause to be discharged any possessory chattel liens on the property arising under ORS 87.152 to 87.162 that have attached to the property since the seizure.

(b) If the court has determined that the property should not be forfeited and has foreclosed one or more interests covering the property, including security interests or liens covering the property or contracts for the transfer or conveyance of the property, the seizing agency shall pay all costs and expenses relating to towing and storage of the property, and shall cause to be discharged any possessory chattel liens on the property arising under ORS 87.152 to 87.162 that have attached to the property since the seizure and the court shall order the property sold pursuant to a sheriff's sale or other sale authorized by the court within such time as may be prescribed by the court following entry of the judgment. If any interests covering the property have not been foreclosed, including any liens or security interests of a claimant whose claim has been upheld, or of a financial institution that has filed the affidavit described in ORS 475A.075, the property shall be sold subject to those interests. The judgment shall also order the proceeds of such sale applied in the following order:

(A) To the payment of the costs of the sale;

(B) To the satisfaction of the foreclosed liens, security interests and contracts in order of their priority; and

(c) If the court has determined that the property should be forfeited and has foreclosed one or more security interests, liens, contracts or other interests covering the property, the seizing agency shall pay all costs and expenses relating to towing and storage of the property, and shall cause to be discharged any possessory chattel liens on the property arising under ORS 87.152 to 87.162 that have attached to the property since the seizure and the court shall order the property sold pursuant to a sheriff's sale or other sale authorized by the court. If any interest in the property was claimed by a financial institution or other claimant and the interest was upheld but not foreclosed, the property shall be sold subject to the interest. The sale of the property shall be held within such time as may be prescribed by the court following entry of the judgment. The judgment shall also order the proceeds of such sale applied in the following order:

(A) To the payment of the costs of the sale;

(B) To the satisfaction of the foreclosed liens, security interests and contracts in the order of their priority; and

(d) If the court has determined that the property should be forfeited and has not foreclosed the interests of any party in the property, the seizing agency shall pay all costs and expenses relating to towing and storage of the property and shall cause to be discharged any possessory chattel liens on the property arising under ORS 87.152 to 87.162 that have attached to the property since the seizure, and the court shall enter a judgment awarding the property to the forfeiting agency, subject to the interests of any claimants whose claims or affidavits were upheld by the court, and subject to the interests of any financial institutions that filed affidavits under ORS 475A.075 (2)(b), which shall remain in full force and effect.

(4) The forfeiting agency shall not be liable to any person as a consequence of obedience to a judgment directing conveyance to a financial institution.

(5) A copy of the judgment, including any judgment entered under the provisions of ORS 475A.055 (4), shall be sent by forfeiture counsel to the Asset Forfeiture Oversight Advisory Committee.

(6)(a) On entry of judgment for a claimant in any proceeding to forfeit property under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135], unless the court has foreclosed one or more security interests, liens or other interests covering the property, such property or interest in property shall be returned or conveyed immediately to the claimant designated by the court. The court, in the manner provided by ORCP 68, shall award costs, disbursements and attorney fees to the prevailing claimants and financial institutions, to be paid by the forfeiting agency.

(b) If it appears that there was reasonable suspicion that the property was subject to forfeiture, the court shall cause a finding to be entered, and no claimant or financial institution shall be entitled to damages, nor is the person who made the seizure, the seizing or forfeiting agency or forfeiture counsel liable to suit or judgment on account of such seizure or action. An order directing seizure issued under ORS 475A.035 (4) shall constitute a finding of reasonable suspicion that the property was subject to forfeiture.

(7) Nothing contained in this section shall prevent a claimant or financial institution from obtaining any deficiency to which such claimant or financial institution would otherwise be entitled.

(8) Nothing in this section or in ORS 475A.045 shall prevent a seizing agency from entering into an agreement with a claimant or other person for the reimbursement of the seizing agency for the costs and expenses relating to towing and storage of property or the cost of discharging any possessory chattel lien on the property arising under ORS 87.152 to 87.162 that attached to the property between seizure of the property and release or forfeiture of the property.

NOTE: Deletes superfluous ORS references in (3) and (6)(a).

SECTION 151. ORS 475A.115 is amended to read:

475A.115. Distribution of property or proceeds in accordance with this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] shall be made equitably and may be pursuant to intergovernmental agreement under ORS chapter 190. Intergovernmental agreements providing for such distributions and in effect July 24, 1989, shall remain valid unless changed by the parties.

NOTE: Deletes superfluous ORS references.

SECTION 152. ORS 475A.125 is amended to read:

475A.125. After the forfeiture counsel distributes payments under ORS 475A.110, the forfeiture counsel shall disburse and distribute payment as follows when the forfeiting agency is the state or when the state is the recipient of property forfeited under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135]:

(1)(a) Costs shall first be paid from the property or, if the property is sold, from its proceeds. As used in this section, "costs" includes attorney fees, costs and disbursements, and those special expenses, including hourly investigative costs and including the provision of lawful currency, incurred by any seizing agency or other agency of the state in investigating and prosecuting a specific case. "Costs" as used in this section also includes any expenses of servicing or maintaining the seized property under the provisions of ORS 475A.045 (3). These costs shall not otherwise include the expenditures made in connection with the ordinary maintenance and operation of the seizing agency.

(b) Any amount paid to or retained by the Department of Justice under this subsection shall be deposited in the Criminal Justice Revolving Account in the State Treasury.

(c) Any amount paid to or retained by the Oregon State Police under this subsection shall be deposited in the State Police Account.

(2) The state may:

(a) With written authorization from the district attorney for the jurisdiction in which the property was seized, destroy any firearms or controlled substances.

(b) Sell the forfeited property by public or other commercially reasonable sale and pay from the proceeds the expenses of keeping and selling the property.

(c) Retain any vehicles, firearms or other equipment usable for law enforcement purposes, for official law enforcement use directly by the state.

(d) Lend or transfer any vehicles, firearms or other equipment usable for law enforcement purposes, to any federal, state or local law enforcement agency or district attorney for official law enforcement use directly by the transferee entity.

(3) When the state has entered into an intergovernmental agreement with one or more political subdivisions under ORS 475A.115, or when a law enforcement agency of the state has entered into an agreement with another law enforcement agency of the state, an equitable portion of the forfeited property shall be distributed to each agency participating in the seizure or forfeiture as provided by the agreement.

(4) The balance of the property, including the balance of any proceeds received by the state under an intergovernmental agreement or under an agreement between state law enforcement agencies, shall be divided as follows:

(a) When no law enforcement agency other than the Department of Justice participated in the seizure or forfeiture, or when the Department of Justice has entered into an agreement under subsection (3) of this section, the property shall be divided between the Criminal Justice Revolving Account and the Special Crime and Forfeiture Account created in ORS 475A.130, according to the following schedule:

(A) One hundred percent of the first $200,000 accumulated shall be deposited in the Criminal Justice Revolving Account.

(B) Seventy-five percent of the next $200,000 shall be deposited in the Criminal Justice Revolving Account and the balance in the Special Crime and Forfeiture Account.

(C) Fifty percent of the next $200,000 shall be deposited in the Criminal Justice Revolving Account and the balance in the Special Crime and Forfeiture Account.

(D) Twenty-five percent of the next $200,000 shall be deposited in the Criminal Justice Revolving Account and the balance in the Special Crime and Forfeiture Account.

(E) One hundred percent of all additional sums shall be deposited in the Special Crime and Forfeiture Account.

(b) When no law enforcement agency other than the Department of State Police participated in the seizure or forfeiture, or when the Department of State Police has entered into an agreement under subsection (3) of this section, the property shall be divided between the State Police Account and the Special Crime and Forfeiture Account according to the following schedule:

(A) One hundred percent of the first $600,000 accumulated shall be deposited in the State Police Account.

(B) Seventy-five percent of the next $300,000 shall be deposited in the State Police Account and the balance in the Special Crime and Forfeiture Account.

(C) Fifty percent of the next $200,000 shall be deposited in the State Police Account and the balance in the Special Crime and Forfeiture Account.

(D) Twenty-five percent of the next $200,000 shall be deposited in the State Police Account and the balance in the Special Crime and Forfeiture Account.

(E) One hundred percent of all additional sums shall be deposited in the Special Crime and Forfeiture Account.

(5) Notwithstanding subsections (3) and (4) of this section, before any distribution under subsection (3) of this section or any division and disbursement of proceeds under subsection (4) of this section, the state shall deduct an amount equal to 10 percent of the proceeds from the property, but not to exceed $250,000 in any biennium, and deposit that amount in the Illegal Drug Cleanup Fund established by ORS 475.495 for the purposes specified in ORS 475.495 (5). The state shall sell as much property as may be needed to meet the requirements of this section. Deposits to the Illegal Drug Cleanup Fund under this subsection shall be made once every three months and are due within 20 days of the end of each quarter. No interest shall accrue on amounts that are paid within the period specified by this subsection.

(6) Notwithstanding subsections (3) and (4) of this section, before any distribution under subsection (3) of this section or any division and disbursement of proceeds under subsection (4) of this section, the state shall deduct an amount equal to three percent of the proceeds from the property, but not to exceed $50,000 in any biennium, and deposit that amount in the Asset Forfeiture Oversight Account established by ORS 475A.160 for the purposes specified in ORS 475A.155. The state shall sell as much property as may be needed to meet the requirements of this section. Deposits to the Asset Forfeiture Oversight Account under this subsection shall be made once every three months and are due within 20 days of the end of each quarter. No interest shall accrue on amounts that are paid within the period specified by this subsection.

(7) Forfeiture proceeds received by the Department of Justice and the Department of State Police shall be used for enforcement of laws relating to the unlawful delivery, distribution, manufacture or possession of controlled substances, including but not limited to use of the proceeds for controlled substance crime prevention, drug intervention, drug treatment and drug education programs. Except as specifically provided by this subsection, forfeiture proceeds under this subsection may not be used for payment of the wages of peace officers, as defined in ORS 161.015, the purchase, construction, expansion, remodeling or maintenance of buildings, or the funding of all or part of any position that was in existence before August 23, 1993, and that was previously funded out of revenues other than forfeiture proceeds. Forfeiture proceeds may be used for the following:

(a) Payment of that portion of the wages of personnel other than peace officers who administer the forfeiture laws.

(b) Payment of the wages of peace officers performing supervisory duties for interagency drug enforcement task forces created by intergovernmental agreement.

(8) The forfeiting agency, and any agency that receives forfeited property or proceeds from the sale of forfeited property, shall maintain written documentation of each sale, decision to retain, transfer or other disposition of the property or proceeds.

(9) Forfeiture counsel shall report each forfeiture to the Asset Forfeiture Oversight Advisory Committee as soon as reasonably possible after the conclusion of forfeiture proceedings, whether or not the forfeiture results in an entry of judgment under ORS 475A.110. The committee shall develop and make available forms for the purpose of reporting forfeitures.

(10) Law enforcement agencies shall supply to forfeiture counsel all information requested by forfeiture counsel necessary for the preparation of the report required by subsection (9) of this section.

NOTE: Deletes superfluous ORS references in first sentence.

SECTION 153. ORS 475A.130 is amended to read:

475A.130. The Special Crime and Forfeiture Account is established in the General Fund of the State Treasury. The account shall consist of all forfeiture proceeds received or retained by agencies of the state under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135], except as otherwise provided by ORS 475A.125. All moneys in the account are continuously appropriated and shall be used for enforcement of laws relating to the unlawful delivery, distribution, manufacture or possession of controlled substances, including but not limited to use of the proceeds for controlled substance crime prevention, drug intervention, drug treatment and drug education programs. Except as specifically provided by this section, forfeiture proceeds in the Special Crime and Forfeiture Account may not be used for payment of the wages of peace officers, as defined in ORS 161.015, the purchase, construction, expansion, remodeling or maintenance of buildings, or the funding of all or part of any position that was in existence before August 23, 1993, and that was previously funded out of revenues other than forfeiture proceeds. Forfeiture proceeds may be used for the following:

(1) Payment of that portion of the wages of personnel other than peace officers who administer the forfeiture laws.

(2) Payment of the wages of peace officers performing supervisory duties for interagency drug enforcement task forces created by intergovernmental agreement.

(3) Payment of overtime wages of peace officers arising out of drug enforcement duties.

NOTE: Deletes superfluous ORS references in second sentence.

SECTION 154. ORS 475A.135 is amended to read:

475A.135. If any section, portion, clause or phrase of [ORS chapter 475A and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135] this chapter is held to be invalid or unconstitutional, the remaining sections, portions, clauses and phrases shall not be affected but shall remain in full force and effect.

NOTE: Inserts appropriate ORS chapter reference; deletes superfluous ORS references.

SECTION 155. ORS 475A.155 is amended to read:

475A.155. (1) The Asset Forfeiture Oversight Advisory Committee is created. The committee consists of 12 members to be appointed as follows:

(a) The President of the Senate and the Speaker of the House of Representatives shall appoint six legislators to the committee. Three shall be Senators appointed by the President. Three shall be Representatives appointed by the Speaker.

(b) The Governor shall appoint three members to the committee.

(2) The term of a legislative member of the committee shall be two years. The term of all other members shall be four years. Members of the committee may be reappointed. If a vacancy occurs on the committee for any reason during the term of membership, the official who appointed the member to the vacant position shall appoint a new member to serve the remainder of the term. A member of the committee may be removed from the committee at any time by the official who appointed the member.

(3)(a) The members of the committee shall select from among themselves a chairperson and vice chairperson.

(b) The committee shall meet at such times and places as determined by the chairperson.

(4) Legislative members shall be entitled to payment of compensation and expense reimbursement under ORS 171.072, payable from funds appropriated to the Legislative Assembly.

(5) The committee shall:

(a) Prepare reports detailing the number and nature of forfeitures carried out under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135], including the disposition and use of the proceeds from the forfeitures. The reports shall be submitted on or before March 31 of each year to the Speaker of the House of Representatives, President of the Senate, Attorney General and Governor.

(b) In consultation with forfeiture counsel, review and, if necessary, modify the reports required from forfeiture counsel and political subdivisions to ensure that information necessary for oversight is being obtained and is gathered in an efficient and effective manner.

(c) Make any recommendations it deems necessary to increase the effectiveness, fairness and efficiency of forfeiture actions brought under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135].

(d) Make any recommendations for additional legislation governing forfeiture actions brought under this chapter [and ORS 167.243, 167.248, 205.246, 471.666, 475A.010, 475A.040, 475A.050 and 475A.135].

(e) Conduct studies or other activities as necessary to accomplish the purposes of this subsection.

(6) The Executive Director of the Oregon Criminal Justice Commission shall provide the committee with staff, subject to funds available for that purpose.

NOTE: Deletes superfluous ORS references in (5)(a), (c) and (d).

SECTION 156. ORS 477.001 is amended to read:

477.001. As used in this chapter, unless the context otherwise requires:

(1) "Additional fire hazard" means a hazard that has been determined to exist by the forester pursuant to ORS 477.580.

(2) "Board" means the State Board of Forestry.

(3) "Campfire" means any open fire used for cooking, personal warmth, lighting, ceremonial or aesthetic purposes that is hand built and that is not associated with any debris disposal activities.

(4) "Department" means the State Forestry Department.

(5) "District" means a forest protection district organized under ORS 477.225.

(6) "Every reasonable effort" means the use of the reasonably available personnel and equipment under the supervision and control of an owner or operator usually and customarily used in the forest industry to fight fire, which are needed to fight the fire and which can be brought to bear on the fire in a timely fashion.

(7) "Fire season" means a period designated pursuant to ORS 477.505.

(8) "Fiscal year" means the period beginning on July 1 of any year and ending on June 30 of the next year.

(9) "Forestland" means any woodland, brushland, timberland, grazing land or clearing, which, during any time of the year, contains enough forest growth, slashing or vegetation to constitute, in the judgment of the forester, a fire hazard, regardless of how the land is zoned or taxed.

(10) "Forest patrol assessment" means the costs levied and assessed under ORS 477.270.

(11) "Forest protective association" or "association" means an association, group or agency composed of owners of forestlands, organized for the purpose of protecting such forestlands from fire.

(12) "Forest resource" means the various types of vegetation normally growing on Oregon's forestland, the associated harvested products and the associated residue, including but not limited to brush, grass, logs, saplings, seedlings, trees and slashing.

(13) "Forester" means the State Forester or authorized representative.

(14) "Governing body" of a county means the county court or board of county commissioners.

(15) "Grazing land" is defined by ORS 477.205.

(16) "Open fire" means any outdoor fire that occurs in such a manner that combustion air is not effectively controlled and combustion products are not effectively vented through a stack or chimney.

(17) "Operation" means any industrial activity, any development or any improvement on forestland inside or within one-eighth of one mile of a forest protection district, including but not limited to the harvesting of forest tree species, the clearing of land, the use of power-driven machinery and the use of fire, excluding, however, the culture and harvesting of agricultural crops.

(18) "Operation area" means the area on which an operation is being conducted and the area on which operation activity may have resulted in the ignition of a fire.

(19) "Operation in progress" means that time when workers are on an operation area for the purpose of an operation, including the period of time when [watchmen] fire watches are required to be on the operation area pursuant to ORS 477.665.

(20) "Operator" means any person who, either personally or through employees, agents, representatives or contractors, is carrying on or has carried on any operation.

(21) "Owner" means an individual, a combination of individuals, a partnership, a corporation, the State of Oregon or a political subdivision thereof, or an association of any nature that holds an ownership interest in land.

(22) "Political subdivision" includes, but is not limited to, counties, cities and special districts.

(23) "Rangeland" is defined by ORS 477.315.

(24) "Routine road maintenance" is defined by ORS 477.625.

(25) "Side" means any single unit of a logging operation employing power-driven machinery.

(26) "Slashing" means the forest debris or refuse on any forestland resulting from the cutting, killing, pruning, severing or removal of brush, trees or other forest growth.

(27) "State Forester" means the person appointed State Forester pursuant to ORS 526.031 or the person serving in the position on an interim or delegated basis.

(28) "Summit of the Cascade Mountains" is considered to be a line beginning at the intersection of the northern boundary of the State of Oregon and the western boundary of Wasco County; thence southerly along the western boundaries of Wasco, Jefferson, Deschutes and Klamath Counties to the southern boundary of the State of Oregon.

(29) "Timberland" is defined by ORS 477.205.

(30) "Warden" means a fire warden appointed under ORS 477.355.

NOTE: Deletes gender-specific language in (19).

SECTION 157. ORS 477.281 is amended to read:

477.281. (1) The obligation of an owner of timberland or grazing land for payment of assessments and taxes for fire protection of forestland is limited to:

[(1)] (a) The payment of moneys pursuant to ORS 321.015 (2), 477.277, 477.295, 477.760 (4) and 477.880 to maintain the Oregon Forest Land Protection Fund reserve base at $15 million; and

[(2)] (b) The payment of forest protection district assessments pursuant to ORS 477.205 to 477.291.

[(3)] (2) As used in this section, "obligation of an owner of timberland or grazing land for payment of assessments and taxes for fire protection of forestland" does not include the duties or obligations of the owner under ORS 477.066, 477.068 or 477.120 or the obligations of an owner of land included in a rural fire protection district pursuant to ORS 478.010.

NOTE: Restructures statute for clarity and conformance to legislative form and style.

SECTION 158. ORS 477.665 is amended to read:

477.665. (1) During a fire season inside or within one-eighth of one mile of a forest protection district, every operator using power-driven machinery in an operation area shall provide [watchman] fire watch service on the operation area. The [watchman] fire watch service shall consist of not less than one competent person, who shall be constantly on duty at times prescribed by rules promulgated by the State Forester. These rules shall require [watchman] fire watch service at such times and at such places as the spread of fire on or from the operation area to forestland reasonably may be expected.

(2) The forester may modify or waive, in writing, any requirement of this section as to any operation whenever the fire hazard is not sufficient to justify the requirement.

NOTE: Deletes gender-specific language.

SECTION 159. ORS 479.530 is amended to read:

479.530. As used in ORS 479.510 to 479.945, unless the context requires otherwise:

(1) "Approved testing laboratory" means a testing laboratory that meets criteria for electrical product evaluation established by the Director of the Department of Consumer and Business Services with the approval of the board under ORS 479.730.

(2) "Board" means the Electrical and Elevator Board established under ORS 455.138.

(3) "Certified electrical product" means an electrical product that is certified under ORS 479.760 and that is not decertified.

(4) "Competent inspection service" means an electrical inspection service of a city or county administered under ORS 455.150 that employs electrical inspectors who are certified to meet standards under ORS 479.810.

(5) "Commercial electrical air conditioning equipment" means heating, cooling, refrigeration, dehumidifying, humidifying and filtering equipment used for climatizing or moving of air if used in commerce, industry or government and if installed in a place not accessible to the general public other than the switches regulating the operation of the equipment.

(6) "Department" means the Department of Consumer and Business Services.

(7) "Director" means the Director of the Department of Consumer and Business Services.

(8) "Dwelling unit" means one or more rooms for the use of one or more persons as a housekeeping unit with space for eating, living and sleeping and permanent provisions for cooking and sanitation.

(9) "Electrical installations" means the construction or installation of electrical wiring and the permanent attachment or installation of electrical products in or on any structure that is not itself an electrical product. "Electrical installation" also means the maintenance or repair of installed electrical wiring and permanently attached electrical products. "Electrical installation" does not include an oil module.

(10) "Electrical product" means any electrical equipment, appliance, material, device or apparatus to convey or be operated by electrical current.

(11) "Equipment" means any material, fittings, devices, appliances, fixtures, apparatus or the like that are used as part of or in connection with an electrical installation.

(12) "Field evaluation firm" means an independent organization that provides:

(a) Evaluations or testing, or both; and

(b) Documentation regarding compliance with electrical product safety standards and with the electrical installation safety code.

(13) "Industrial electrical equipment" means electrical products used in industry or government that utilizes electric energy for mechanical, chemical, heating, lighting or similar purposes, that is designed to service or produce a product and that is used directly in the production of the service or product. "Industrial electrical equipment" does not include:

(a) Wiring to be connected to industrial electrical products.

(b) Any other electrical product that is not an original part of industrial electrical equipment.

(14) "Installation label" means an adhesive tag issued by governmental agencies that administer the Electrical Safety Law to licensed electrical contractors for application to those minor electrical installations for which the board by rule determines to be appropriate for random inspections.

(15) "License" means an annual permit issued by the department under ORS 479.630 authorizing the person whose name appears as licensee thereon to act as an electrical contractor, supervising electrician, journeyman or apprentice electrician as indicated thereon.

(16) "Minimum safety standards" means safety standards prescribed by the department under ORS 479.730.

(17) "Multifamily dwelling" means a building containing more than one dwelling unit.

(18) "Oil module" means a prefabricated structure manufactured to the specifications of the purchaser and used outside this state in the exploration for or processing or extraction of petroleum products.

(19) "Permit" means an official document or card issued by the enforcing agency to authorize performance of a specified electrical installation.

(20) "Single family dwelling" means a building consisting solely of one dwelling unit.

(21) "Uncertified product" means any electrical product that is not an electrical product certified under ORS 479.760.

NOTE: Inserts appropriate conjunction after (12)(a).

SECTION 160. ORS 480.315 is amended to read:

480.315. The Legislative Assembly declares that, except as provided in ORS 480.345 to 480.385, it is in the public interest to maintain a prohibition on the self-service dispensing of Class 1 flammable liquids at retail. The Legislative Assembly finds and declares that:

(1) The dispensing of Class 1 flammable liquids by dispensers properly trained in appropriate safety procedures reduces fire hazards directly associated with the dispensing of Class 1 flammable liquids;

(2) Appropriate safety standards often are unenforceable at retail self-service stations in other states because cashiers are often unable to maintain a clear view of and give undivided attention to the dispensing of Class 1 flammable liquids by customers;

(3) Higher liability insurance rates charged to retail self-service stations reflect the dangers posed to customers when they leave their vehicles to dispense Class 1 flammable liquids, such as the increased risk of crime and the increased risk of personal injury resulting from slipping on slick surfaces;

(4) The dangers of crime and slick surfaces described in subsection (3) of this section are enhanced because Oregon's weather is uniquely adverse, causing wet pavement and reduced visibility;

(5) The dangers described in subsection (3) of this section are heightened when the customer is a senior citizen or is disabled, especially if the customer uses a mobility aid, such as a wheelchair, walker, cane or crutches;

(6) Attempts by other states to require the providing of aid to senior citizens and the disabled in the self-service dispensing of Class 1 flammable liquids at retail have failed, and therefore, senior citizens and the disabled must pay the higher costs of full service;

(7) Exposure to toxic fumes represents a health hazard to customers dispensing Class 1 flammable liquids;

(8) The hazard described in subsection (7) of this section is heightened when the customer is pregnant;

(9) The exposure to Class 1 flammable liquids through dispensing should, in general, be limited to as few individuals as possible, such as gasoline station owners and their employees or other trained and certified dispensers;

(10) The typical practice of charging significantly higher prices [typically charged] for full-service fuel dispensing in states where self-service is permitted at retail:

(a) [Discriminate] Discriminates against customers with lower incomes, who are under greater economic pressure to subject themselves to the inconvenience and hazards of self-service;

(b) [Discriminate] Discriminates against customers who are elderly or handicapped who are unable to serve themselves and so must pay the significantly higher prices; and

(c) Increases self-service dispensing and thereby decreases maintenance checks by attendants, which results in neglect of maintenance, [which endangers] endangering both the customer and other motorists and [results] resulting in unnecessary and costly repairs;

(11) The increased use of self-service at retail in other states has contributed to diminishing the availability of automotive repair facilities at gasoline stations;

(12) Self-service dispensing at retail in other states does not provide a sustained reduction in fuel prices charged to customers;

(13) A general prohibition of self-service dispensing of Class 1 flammable liquids by the general public promotes public welfare by providing increased safety and convenience without causing economic harm to the public in general;

(14) Self-service dispensing at retail contributes to unemployment, particularly among young people;

(15) Self-service dispensing at retail presents a health hazard and unreasonable discomfort to the handicapped, to elderly persons, small children and those susceptible to respiratory diseases;

(16) The federal Americans with Disabilities Act, Public Law 101-336, requires that equal access be provided to disabled persons at retail gasoline stations; and

(17) Small children left unattended when customers leave to make payment at retail self-service stations creates a dangerous situation.

NOTE: Corrects grammar and syntax in (10).

SECTION 161. ORS 497.132 is amended to read:

497.132. (1) In lieu of issuing to resident persons separate licenses for angling and hunting, the State Fish and Wildlife Commission is authorized to issue resident annual combination angling and hunting licenses, and charge therefor a fee of $24.25.

(2)(a) In lieu of issuing to resident persons separate licenses and tags for various hunting and angling activities, the commission is authorized to issue resident annual [sportsman's] sportsperson's licenses and shall charge therefor a fee of $100. The purchaser of each such license is authorized to engage in those hunting and angling activities for which the following licenses and tags are required:

(A) Combination license;

(B) Black bear tag;

(D) General season elk tag;

(E) General season deer tag;

(F) Upland bird stamp;

(G) Oregon migratory waterfowl stamp;

(H) Turkey tag;

(I) Salmon-steelhead tag; and

(J) Sturgeon tag.

(b) The holder of each [sportsman's] sportsperson's license who wishes to engage in hunting or angling activities for which permits are required that are limited by quota must participate in the process for allocation of the permits in the same manner as all other permit applicants. However, if the holder of a [sportsman's] sportsperson's license is unsuccessful in obtaining a permit limited by quota for a particular activity, the holder will be issued a tag valid for any general season for that species.

(c) Notwithstanding any other provision of the wildlife laws, of the moneys received from the sale of [sportsman's] sportsperson's licenses:

(A) Two dollars from each such license shall be credited to the subaccount referred to in ORS 496.242.

(B) Five dollars from each such license shall be credited to the subaccount referred to in section 10, chapter 512, Oregon Laws 1989.

NOTE: Deletes gender-specific language in (2)(a), (b) and (c).

SECTION 162. ORS 497.162 is amended to read:

497.162. (1) Upon application of the Oregon Youth Authority, the State Office for Services to Children and Families or the Mental Health and Developmental Disability Services Division, the State Fish and Wildlife Commission shall issue, without fee, [licenses] a license to angle for the temporary use of any person in a state institution as defined in ORS 179.610, [or] any student in a youth correction facility or related camps or programs operated by the Oregon Youth Authority, [or] any child placed by the State Office for Services to Children and Families and under the care of a foster home or a private nonprofit child-caring agency certified by the office, or any person in a Mental Health and Developmental Disability Services Division alternatives to state hospitalization program as defined in ORS 430.630 (2)(b) or (c). The licenses issued under this subsection shall be in bearer form and, subject to applicable laws and regulations relating to angling, shall be used as the authority, office or division directs.

(2) Upon application of the director of any veteran's administration hospital or domiciliary within this state, the commission shall issue, without fee, to each hospital or domiciliary[,] 30 licenses to angle for the temporary use of any person who is a patient or resident in the hospital or domiciliary. The licenses issued under this subsection shall be in bearer form and, subject to applicable laws and regulations relating to angling, shall be used as the director of the hospital or domiciliary provides.

NOTE: Corrects punctuation and syntax.

SECTION 163. ORS 508.285 is amended to read:

508.285. (1) The fee for each license required by this chapter is as follows:

(a) Albacore tuna landing license, $20.

(b) Resident boat license, $200.

(c) Nonresident boat license, $400.

(d) Resident commercial fishing license, $50.

(e) Nonresident commercial fishing license, $100.

(f) Commercial fishing license for resident persons 18 years of age or younger, $25.

(g) Commercial bait fishing license, $60.

(h) Fish buyer license, $150.

(i) Fish bait dealer license, $60.

(j) Food fish canner license, $350.

(k) Shellfish canner license, $350.

(L) Single delivery license, $100.

(m) Wholesale fish dealer license, $350.

(2) As used in this section, "resident" means an actual bona fide resident of this state for at least one year prior to application for a license.

NOTE: Conforms statute structure to legislative form and style; corrects punctuation.

SECTION 164. ORS 520.015 is amended to read:

520.015. "Waste," in addition to its ordinary meaning, means "physical waste" as that term is generally understood in the petroleum industry. It includes:

(1) Underground waste and the inefficient, excessive or improper use or dissipation of reservoir energy, including gas energy and water drive, of any pool[;], and the locating, spacing, drilling, equipping, operating or producing of any oil well or gas well in a manner [which] that results or tends to result in reducing the quantity of oil or gas ultimately recoverable from any pool; and

(2) Surface waste and the inefficient storing of oil and the locating, spacing, drilling, equipping, operating or producing of oil wells or gas wells in a manner causing or tending to cause unnecessary or excessive surface loss or destruction of oil or gas.

NOTE: Corrects punctuation; inserts appropriate conjunction after (1).

SECTION 165. ORS 526.992 is amended to read:

526.992. (1) A person who, with willful disregard for the prohibitions contained in ORS 526.801 to 526.831 [and 526.992] against exporting public timber, exported or caused to be exported unprocessed timber originating from public lands in violation of this chapter is guilty of a Class C felony and may be assessed a civil penalty not to exceed $500,000 for each violation or three times the gross value of the unprocessed timber involved in the violation, whichever amount is greater.

(2) If the agency concerned finds, on the record and after an opportunity for a hearing, that a person has violated any provision of ORS 526.801 to 526.831 [and 526.992] or any rule issued pursuant thereto relating to lands which the agency administers (notwithstanding that such violation may not have caused the export of unprocessed public timber in violation of this chapter), such agency may:

(a) Assess against such person a civil penalty not more than $75,000 for each violation if it is determined that the violation was casual or involuntary.

(b) Assess against such person a civil penalty not more than $500,000 or three times the gross value of the unprocessed timber involved in the violation, whichever amount is greater, if it is determined that the person committed such violation willfully. Any person who willfully commits such a violation is guilty of a Class C felony.

[(c)] (3) Any civil penalty imposed under this section shall become due and payable when the person incurring the penalty receives a notice in writing of the imposition of the penalty. The notice may be personally served on the person incurring the penalty or may be sent by registered or certified mail.

[(d)] (4) The person incurring the penalty shall have 20 days from the date of receiving the notice to make written application for a hearing.

[(e)] (5) Any person who makes application as provided for in [paragraph (d) of this subsection] subsection (4) of this section shall be entitled to a hearing. The hearing shall be conducted as a contested case hearing pursuant to the applicable provisions of ORS 183.413 to 183.470.

[(f)] (6) Judicial review of an order made after a hearing under [paragraph (e) of this subsection] this section shall be as provided in ORS 183.480 to 183.497 for judicial review of contested cases.

[(g)] (7) When an order assessing a civil penalty under this section becomes final by operation of law or on appeal, and the amount of penalty is not paid within 10 days after the order becomes final, the order may be recorded with the county clerk in any county of this state. The clerk shall thereupon record the name of the person incurring the penalty and the amount of the penalty in the County Clerk Lien Record.

[(h)] (8) All moneys recovered pursuant to this section shall be paid into the State Forestry Department Account and may be used only to pay the expenses of administration, investigation and enforcement of ORS 526.801 to 526.831 [and 526.992] by the State Forester or any law enforcement agency.

NOTE: Restructures statute for clarity; deletes erroneous ORS references.

SECTION 166. ORS 527.620 is amended to read:

527.620. As used in ORS 527.610 to 527.770, 527.990 and 527.992:

(1) "Board" means the State Board of Forestry.

[(2) "Harvest type 1" means an operation that requires reforestation but does not require wildlife leave trees. A harvest type 1 is an operation that leaves a combined stocking level of free to grow seedlings, saplings, poles and larger trees that is less than the stocking level established by rule of the board which represents adequate utilization of the productivity of the site.]

[(3) "Harvest type 2" means an operation that requires wildlife leave trees but does not require reforestation. A harvest type 2 does not require reforestation because it has an adequate combined stocking of free to grow seedlings, saplings, poles and larger trees, but which leaves:]

[(a) On Cubic Foot Site Class I, II or III, fewer than 50 11-inch DBH trees or less than an equivalent basal area in larger trees, per acre;]

[(b) On Cubic Foot Site Class IV or V, fewer than 30 11-inch DBH trees or less than an equivalent basal area in larger trees, per acre; or]

[(c) On Cubic Foot Site Class VI, fewer than 15 11-inch DBH trees or less than an equivalent basal area in larger trees, per acre.]

[(4) "Harvest type 3" means an operation that requires reforestation and requires wildlife leave trees. This represents a level of stocking below which the size of operations is limited per ORS 527.740 and 527.750.]

[(5)] (2) "Cumulative effects" means the impact on the environment which results from the incremental impact of the forest practice when added to other past, present and reasonably foreseeable future forest practices regardless of what governmental agency or person undertakes such other actions.

[(6)] (3) "DBH" means the diameter at breast height which is measured as the width of a standing tree at four and one-half feet above the ground, on the uphill side.

[(7)] (4) "Edge of the roadway" means:

(a) For interstate highways, the fence.

(b) For all other state highways, the outermost edge of pavement, or if unpaved, the edge of the shoulder.

[(8) "Forestland" means land which is used for the growing and harvesting of forest tree species, regardless of how the land is zoned or taxed or how any state or local statutes, ordinances, rules or regulations are applied.]

[(9)] (5) "Forest practice" means any operation conducted on or pertaining to forestland, including but not limited to:

(a) Reforestation of forestland;

(b) Road construction and maintenance;

(d) Application of chemicals; and

(e) Disposal of slash.

[(10)] (6) "Forest tree species" does not include:

(a) Christmas trees on land used solely for the production of cultured Christmas trees as defined in ORS 215.203 (3).

(b) Hardwood timber, including but not limited to hybrid cottonwood, which is:

(A) Grown or growing on land which has been prepared by intensive cultivation methods and which is cleared of competing vegetation for at least three years after tree planting;

(B) Of a species marketable as fiber for inclusion in the "furnish" for manufacturing paper products;

(D) Subject to intensive agricultural practices such as fertilization, insect and disease control, cultivation and irrigation.

(7) "Forestland" means land that is used for the growing and harvesting of forest tree species, regardless of how the land is zoned or taxed or how any state or local statutes, ordinances, rules or regulations are applied.

(8) "Harvest type 1" means an operation that requires reforestation but does not require wildlife leave trees. A harvest type 1 is an operation that leaves a combined stocking level of free to grow seedlings, saplings, poles and larger trees that is less than the stocking level established by rule of the board that represents adequate utilization of the productivity of the site.

(9) "Harvest type 2" means an operation that requires wildlife leave trees but does not require reforestation. A harvest type 2 does not require reforestation because it has an adequate combined stocking of free to grow seedlings, saplings, poles and larger trees, but leaves:

(a) On Cubic Foot Site Class I, II or III, fewer than 50 11-inch DBH trees or less than an equivalent basal area in larger trees, per acre;

(b) On Cubic Foot Site Class IV or V, fewer than 30 11-inch DBH trees or less than an equivalent basal area in larger trees, per acre; or

(c) On Cubic Foot Site Class VI, fewer than 15 11-inch DBH trees or less than an equivalent basal area in larger trees, per acre.

(10) "Harvest type 3" means an operation that requires reforestation and requires wildlife leave trees. This represents a level of stocking below which the size of operations is limited under ORS 527.740 and 527.750.

(11) "Landowner" means any individual, combination of individuals, partnership, corporation or association of whatever nature that holds an ownership interest in forestland, including the state and any political subdivision thereof.

(12) "Operation" means any commercial activity relating to the growing or harvesting of forest tree species.

(13) "Operator" means any person, including a landowner or timber owner, who conducts an operation.

(14) "Single ownership" means ownership by an individual, partnership, corporation, limited liability company, trust, holding company or other business entity, including the state or any political subdivision thereof. Single ownership includes ownership held under different names or titles where the same individual or individuals, or their heirs or assigns, are shareholders (other than those of public corporations whose stock is traded on the open market), partners, business trustees or officers, or otherwise have an interest in or are associated with each property.

(15) "State Forester" means the State Forester or the duly authorized representative of the State Forester.

(16) "Suitable hardwood seedlings" means any hardwood seedling that will eventually yield logs or fiber, or both, sufficient in size and quality for the production of lumber, plywood, pulp or other forest products.

(17) "Timber owner" means any individual, combination of individuals, partnership, corporation or association of whatever nature, other than a landowner, that holds an ownership interest in any forest tree species on forestland.

(18) "Visually sensitive corridor" means forestland extending outward 150 feet, measured on the slope, from the outermost edge of the roadway of a scenic highway referred to in ORS 527.755, along both sides for the full length of the highway.

(19) "Wildlife leave trees" means trees or snags required to be retained as described in ORS 527.676 (1).

(20) "Written plan" means a plan submitted by an operator, for written approval by the State Forester, which describes how the operation will be conducted, including the means to protect resource sites described in ORS 527.710 (3)(a) and information required by ORS 527.745 and 527.750, if applicable.

NOTE: Restructures statute for conformance to legislative form and style; corrects grammar.

SECTION 167. ORS 527.676 is added to and made a part of ORS 527.610 to 527.770.

NOTE: Adds statute to appropriate series.

SECTION 168. ORS 530.280 is amended to read:

530.280. (1) There hereby is created a sinking fund account to provide for the payment of the principal and interest of all bonds issued pursuant to the provisions of ORS 530.210 to 530.280. The fund shall consist of the following:

(a) All moneys derived from taxes levied under ORS 291.445; [and]

(b) All moneys derived from the sale, exchange or use of land acquired pursuant to ORS 530.240; and

(c) Except as provided in ORS 530.115, all moneys received from the disposal of forest products created through expenditures of moneys available under the Oregon Forest Rehabilitation Act for reforestation.

(2) The moneys referred to in [paragraphs (a) to (c) of this subsection] subsection (1) of this section shall be set aside for sinking fund purposes until the issues of bonds which provided funds for such reforestation have been retired. The State Forester shall designate and keep records of the area of land on which the funds from particular issues of bonds have been expended for such reforestation.

[(2)] (3) Disbursement from the sinking fund shall be made, for the purposes stated, upon the submission of duly verified claims, approved by the board, to the Secretary of State, who shall audit the same in the manner that other claims against the state are audited. The Oregon Department of Administrative Services thereupon shall draw a warrant on the State Treasurer against the fund. The money in the sinking fund may be invested as provided in ORS 293.701 to 293.820.

NOTE: Restructures statute for conformance to legislative form and style.

SECTION 169. ORS 536.420 is amended to read:

536.420. (1) The Governor shall designate the Water Resources Director[,] or a member or members of the Water Resources Commission [as a party] to act on behalf of and to represent the state in [the formulation] formulating, entering into and carrying out [of] any formal or informal compact or other agreement authorized by the Legislative Assembly concerning the use and control of the water resources of this state, between this state or any state agency or public corporation thereof and any other state, any state agency or public corporation thereof or the Federal Government or any agency thereof.

(2) [Such] The representative or representatives designated by the Governor under subsection (1) of this section shall make every effort practicable to [insure] ensure that the compact or other agreement, as formulated, entered into and carried out, is in harmony with the state water resources policy and otherwise with the public interest in encouraging, promoting and securing the maximum beneficial use and control of the water resources of this state.

(3) The commission in carrying out an investigation pertaining to water resources may cooperate with state agencies of California for the purpose of formulating, executing and submitting to the legislatures of Oregon and California for their approval, interstate compacts relative to the distribution and use of the waters of Goose Lake and tributaries thereto. No compacts or agreements formulated as provided in this section are binding upon this state until they have been approved by the legislature of this state and the Congress of the United States.

(4) Any state agency or public corporation of this state required or permitted by law to formulate, enter into or carry out any compact or other agreement referred to in subsection (1) of this section shall give timely and adequate notice to the commission before it undertakes any action under such requirement or permission.

NOTE: Corrects syntax in (1) and (2).

SECTION 170. ORS 537.346 is amended to read:

537.346. (1) All minimum perennial streamflows established on any waters of this state before June 25, 1988, shall be converted to in-stream water rights after the Water Resources Commission reviews the streamflows and the Water Resources Department issues a certificate for an in-stream water right in accordance with ORS 537.343 with the same priority date as the minimum perennial streamflow.

(2) If a minimum perennial streamflow established on any waters of the Willamette Basin before September 27, 1987, requires stored water to achieve the minimum perennial streamflow, the commission shall conduct a hearing under ORS 537.343 to review the minimum perennial streamflow and determine whether the conversion to an in-stream water right is consistent with the findings under ORS 537.334.

(3) The priority date for that portion of an in-stream water right that uses the stored water component of a minimum perennial streamflow in the Willamette Basin shall be the date the commission or its predecessor adopted the minimum perennial streamflow containing the stored water component.

(4) Notwithstanding the priority date established under subsection (3) of this section, until the state enters into a contract that meets the criteria set forth in subsection (5) of this section with the owner of the storage facility to release the stored water for the purpose of satisfying the in-stream water right, for that portion of an in-stream water right in the Willamette Basin converted from the stored water component of a minimum perennial streamflow, the [Water Resources] department:

(a) May not require the release of the stored water; and

(b) Shall not regulate the use of water to provide water for the portion of the in-stream water right using stored water.

(5) A contract for the release of stored water to satisfy an in-stream water right shall:

(a) Include as parties to the contract the State of Oregon and the owner of the storage facility;

(b) Specifically allow the state to obtain the release of stored water to satisfy an in-stream water right; and

(c) Identify a method to determine the specific quantity of water released from storage to satisfy the stored water component of the in-stream water right.

(6) If the Federal Government does not release water to satisfy a stored water component of an in-stream water right pursuant to a contract that satisfies the criteria set forth in subsection (5) of this section, the [Water Resources] department may not regulate the use of water by other water right holders to satisfy the stored water component of an in-stream water right or take any other action that impairs the rights of any person under a valid contract for the use of the stored water.

NOTE: Sets forth official title in (1).

SECTION 171. ORS 537.575 is amended to read:

537.575. Any permit granted or application for a permit approved under ORS 537.510, 537.520, 537.530, 537.540, 537.550, 537.560, 537.570, 537.580, 537.590 and 537.600 prior to and still valid and in effect on August 3, 1955, is considered to be a permit issued under ORS 537.625. Any application for a permit under ORS 537.510, 537.520, 537.530, 537.540, 537.550, 537.560, 537.570, 537.580, 537.590 and 537.600 prior to, pending and not yet approved on August 3, 1955, shall be governed as an application for a permit under ORS 537.615, [to] 537.620, 537.621, 537.622 and 537.625.

NOTE: Inserts appropriate ORS string citation.

SECTION 172. ORS 537.627 is added to and made a part of ORS 537.505 to 537.795.

NOTE: Adds statute to appropriate series.

SECTION 173. ORS 541.345, 541.347 and 541.392 are added to and made a part of ORS 541.350 to 541.403.

NOTE: Adds statutes to appropriate series.

SECTION 174. ORS 541.370 is amended to read:

541.370. (1) In carrying out the watershed enhancement program, the Governor's Watershed Enhancement Board shall:

(a) Coordinate the board's funding of enhancement projects with the activities of the Natural Resources Division staff and other agencies, especially those agencies working together through a system of coordinated resource management planning.

(b) Use the expertise of the appropriate state agency according to the type of enhancement project.

(c) Provide educational and informational materials to promote public awareness and involvement in the watershed [and] enhancement program.

(d) Coordinate and provide for or arrange for assistance in the activities of persons, agencies or political subdivisions developing local watershed enhancement projects funded by the board.

(e) Grant funds for the support of watershed councils in assessing watershed conditions, developing action plans, implementing projects and monitoring results and for the implementation of watershed enhancement projects from such moneys as may be available to the board therefor.

(f) Develop and maintain a centralized repository for information about the effects of watershed enhancement and education projects.

(g) Give priority to proposed watershed enhancement projects receiving funding or assistance from other sources.

(h) Identify gaps in research or available information about watershed health and enhancement.

(i) Cooperate with appropriate federal entities to identify the needs and interests of the State of Oregon so that federal plans and project schedules relating to watershed enhancement incorporate the state's intent to the fullest extent practicable.

(j) Encourage the use of nonstructural methods to enhance the riparian areas and associated uplands of Oregon's watersheds.

(2) In accordance with ORS 541.397 to 541.401, the Governor's Watershed Enhancement Board shall administer a watershed improvement grant program using funds from the Watershed Improvement Grant Fund established under ORS 541.397.

(3) To aid and advise the board in the performance of the functions of the board, the board may establish such advisory and technical committees as the board considers necessary. These committees may be continuing or temporary. The board shall determine the representation, membership, terms and organization of the committees and shall appoint their members. The chairperson is ex officio a member of each committee.

NOTE: Deletes extraneous conjunction in (1)(c).

SECTION 175. ORS 541.392 is amended to read:

541.392. [(1)] The Governor's Watershed Enhancement Board shall report annually to the appropriate legislative committee on the implementation of the management program under ORS 541.384. The report shall include but need not be limited to:

[(a)] (1) An explanation of the effectiveness and workability of the partnership process described in ORS 541.384;

[(b)] (2) A description of any modifications to the process that have been instituted; and

[(c)] (3) Recommendations concerning the need for future legislative action.

[(2) On or before January 1, 1997, the Governor's Watershed Enhancement Board shall submit a report on the projects undertaken under ORS 541.384 to the Sixty-ninth Legislative Assembly.]

NOTE: Deletes obsolete provision.

SECTION 176. ORS 561.150 is amended to read:

561.150. [(1) Except for:]

[(a) Funds to be expended for the extermination of predatory animals under the provisions of ORS chapter 610;]

[(b) Moneys received by the State Department of Agriculture from the sale of skins of predatory animals as provided in ORS 610.040;]

[(c) Moneys received by the department that are subject to ORS 561.144;]

(1) All unexpended funds [which] that are available to the State Department of Agriculture for its use in carrying out its duties as prescribed by law and for any other purpose shall be a part of the General Fund of the state and shall be credited to a fund to be known as the Department of Agriculture Account except for:

(a) Funds to be expended for the extermination of predatory animals under the provisions of ORS chapter 610;

(b) Moneys received by the department from the sale of skins of predatory animals as provided in ORS 610.040; and

(c) Moneys received by the department that are subject to ORS 561.144.

(2) All appropriations, fines, fees, penalties and other moneys received by the department or credited to its use from the State Treasury, except the funds named in paragraphs (a) and (b) of subsection (1) and money required by law to be placed therein, shall be placed in the General Fund and credited to the Department of Agriculture Account.

(3) All fines, fees, penalties and other moneys received by the department shall be turned over to the State Treasurer not later than the 10th day of the calendar month next succeeding their receipt by the department.

(4) All moneys without respect to their sources, credited to either the Department of Agriculture Account or the Department of Agriculture Service Fund shall be available for the payment of any and all the expenses of the department, excepting those incurred in connection with the extermination of predatory animals.

(5) The Director of Agriculture shall keep a record of all moneys deposited in the Department of Agriculture Account and the Department of Agriculture Service Fund. Such record shall indicate the source from which the moneys are derived and name the individual departmental activity against which each withdrawal is charged.

NOTE: Restructures (1) for conformance to legislative form and style.

SECTION 177. ORS 564.110 is amended to read:

564.110. (1) The lists of threatened species or endangered species established pursuant to ORS 564.105 (2) initially shall include those species listed as of May 15, 1987, as a threatened species or an endangered species pursuant to the federal Endangered Species Act of 1973 (P.L. 93-205, 16 U.S.C. 1531 et seq.), as amended.

(2) The Director of Agriculture, by rule, may add or remove any plant species from either list, or change the status of any species on the lists, upon a determination that the species is or is not a threatened species or an endangered species.

(3) A determination that a species is a threatened species or an endangered species shall be based on documented and verifiable scientific information about the species' biological status. To list a species as a threatened species or an endangered species under ORS 564.100 to 564.130, the director shall determine that the natural reproductive potential of the species is in danger of failure due to limited population numbers, disease, predation or other natural or man-made factors affecting its continued existence. In addition, the director shall determine that one or more of the following factors exists:

(a) That most populations are undergoing imminent or active deterioration of their range or primary habitat;

(b) That overutilization for commercial, recreational, scientific or educational purposes is occurring or is likely to occur; or

(4) Determinations required by subsection (3) of this section shall be made on the basis of the best scientific and other data available to the State Department of Agriculture, after consultation with federal agencies, other interested state agencies, the Natural Heritage Advisory Council, other states having a common interest in the species and interested persons and organizations.

(5) Any person may petition the department to, by rule, add, remove or change the status of a species on the list:

(a) A petition shall clearly indicate the action sought and shall include documented scientific information about the species' biological status to justify the requested action.

(b) Within 90 days of receipt of a petition, the department shall respond in writing to the petitioner indicating whether the petition presents substantial scientific information to warrant the action requested.

(d) If the petition is denied, the petitioner may seek judicial review as provided in ORS 183.484.

(6) Notwithstanding subsections (1) to (5) of this section, the department shall take emergency action to add a species to the list of threatened species or endangered species if it determines there is a significant threat to the continued existence of the species:

(a) The department shall publish notice of such addition in the Secretary of State's bulletin and shall mail notice to affected or interested persons whose names are included on the department's mailing list for such purposes.

(b) Such emergency addition shall take effect immediately upon publication in the Secretary of State's bulletin and shall remain valid for a period no longer than one year, unless during the one-year period the department completes rulemaking procedures as provided in subsections (1) to (4) of this section.

(7) The director shall periodically review the status of all threatened and endangered plant species listed under ORS 496.004, 496.171 to 496.192, 498.026, 564.040 and 564.100 to 564.135:

(a) Each species shall be reviewed at least once every five years to determine whether substantial, documented scientific information exists to justify its reclassification or removal from the list, according to the criteria listed under subsection (3) of this section.

(b) If a determination is made to reclassify a species or remove it from the list, the department, within 90 days, shall commence rulemaking to change the status of the species.

[(8) By July 1, 1988, the department shall conduct an initial review of existing scientific information for the purpose of determining those species for which current information is adequate to begin rulemaking as provided in this section.]

NOTE: Deletes obsolete provisions.

SECTION 178. ORS 565.210 is amended to read:

565.210. (1) Any county may hold county and industrial fairs[;], but only one county fair shall be held in each county.

(2) In counties holding county fairs, the county court of such county shall appoint a board consisting of not less than three nor more than seven residents of the county, to be known as the county fair board. When the first members of the board are appointed under this section, one member shall be appointed for a term to expire the January next following appointment, one for a term to expire one year from the January next following appointment, and one for a term to expire two years from the January next following appointment. In addition to the three members, the county court may, at any time, appoint not more than four additional members, the fourth and sixth members to be appointed for a term to expire one year from the January next following appointment and the fifth and seventh members, if any, for a term to expire two years from the January next following appointment. Annually thereafter, at the first meeting in January, upon the expiration of the term of a member, a successor shall be appointed to serve for three years.

(3) The court shall require each member of the board to furnish a good and sufficient bond or an irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 in favor of the county, conditioned upon the faithful performance of the duties of the office. The bond or letter of credit for each member shall be in a sum equal to $10,000 or 20 percent of the total revenues received by the fair in the last fiscal year ending prior to the appointment of such member, whichever is the lesser amount. The bond or letter of credit when approved by the county court shall be filed with the county clerk. The premium on the bond or the fee for the letter of credit shall be paid for by the county fair board as an expense of the board.

(4) No more than one member of the county court may serve as a member of the county fair board.

NOTE: Corrects punctuation in (1).

SECTION 179. ORS 568.930 is amended to read:

568.930. (1) All agricultural activities conducted on agricultural lands within the boundaries of an area subject to a water quality management plan shall be conducted in full compliance with the plan and rules implementing the plan and with all the rules and standards of the Environmental Quality Commission relating to water pollution control. In addition to any other remedy provided by law, any violation of those rules or standards shall be subject to all remedies and sanctions available to the Department of Environmental Quality or the Environmental Quality Commission.

(2) Any civil penalty imposed under ORS 568.933 shall be reduced by the amount of any civil penalty imposed by the Environmental Quality Commission or the Department of Environmental Quality for violations of water quality rules or standards, if the latter penalties are imposed on the same person and are based on the same violation.

(3) The State Department of Agriculture and the State Board of Agriculture shall consult with the Department of Environmental Quality or the Environmental Quality Commission in the adoption and review of water quality management plans.

(4)(a) The Environmental Quality Commission may petition the State Department of Agriculture for a review of part or all of any water quality management plan and rules implementing the plan. The petition must allege with reasonable specificity that the plan or its content is not adequate to achieve compliance with applicable state and federal water quality standards.

(b) The State Department of Agriculture, in consultation with the State Board of Agriculture, shall complete its review of a petition submitted under paragraph (a) of this subsection within 90 days of the date of the filing of the petition for review. The State Department of Agriculture shall not terminate the review without the concurrence of the Environmental Quality Commission unless the department initiates revisions to the water quality management plan that address the issues raised by the Environmental Quality Commission. Any revisions adopted in response to a petition by the Environmental Quality Commission shall be adopted not later than two years from the date the Environmental Quality Commission submits the petition, unless the State Department of Agriculture, with the concurrence of the Environmental Quality Commission, finds special circumstances require additional time.

(5) A water quality management plan and rules implementing the plan that pertain to a ground water management area shall be subject to the coordination requirements of ORS 468B.162.

NOTE: Sets forth official titles in (4)(a) and (b).

SECTION 180. ORS 571.530 is amended to read:

571.530. (1) Each person required to be licensed by ORS 571.525 shall make application for such license or for renewal thereof on a form furnished by the State Department of Agriculture which shall contain:

(a) The name and address of the applicant, the number of locations to be operated by the applicant and the addresses thereof, and the assumed business name of the applicant;

(b) If other than an individual, a statement whether such person is a partnership, corporation or other organization;

(d) The type of business to be operated and, if the applicant is an agent, the principals the applicant represents.

(2) Each application for license shall be accompanied by a license fee as provided for by this section. Such application shall not be a public record but shall be subject to audit and review by the department.

(3)(a) The license fees for growers shall be established on the basis of the total number of acres of Christmas trees being grown in this state by the applicant. For the purpose of calculating the license fee, four acres of Christmas trees growing in a natural timber stand shall be considered the equivalent of one acre of planted Christmas trees.

[(b)(A) During the period beginning July 1, 1990, and ending June 30, 1991, the annual license fee shall be a basic charge plus an acreage assessment. The total fee shall not be less than $62.50 nor more than $5,000. Fees shall be established as follows: ]

[_________________________________________________________________]

[Basic charge for acreage assessment is $60 per applicant plus:]

[ $2.50 per acre for 40 or fewer acres; plus an additional]

[ $2.00 per acre for more than 40 acres but not more than 100 acres; plus an additional]

[$1.50 per acre for more than 100 acres but not more than 200 acres; plus an additional]

[$1 per acre for more than 200 acres.]

[_________________________________________________________________]

[(B)] (b) [For license years beginning July 1, 1991,] The annual license fee schedule shall be established by the department after consultation with the State Christmas Tree Advisory Committee and after a public hearing in accordance with ORS 183.310 to 183.550[,]. The annual license fee shall not [to] exceed $75 [for the] as a basic charge and $3 per acre [for the] as an acreage assessment. The total license fee established pursuant to this [subparagraph] paragraph shall not exceed $5,000.

NOTE: Deletes obsolete provisions in (3)(b).

SECTION 181. ORS 599.411 is repealed.

NOTE: Repeals obsolete statute.

SECTION 182. ORS 610.030 is amended to read:

610.030. (1) The State Department of Agriculture shall apportion any money appropriated by the [state legislature] Legislative Assembly for the purpose set forth in ORS 610.025, among the counties according to the necessity for control and eradication of predatory animals and the financial cooperation received from the counties.

(2) Moneys paid or forwarded pursuant to ORS 610.025 by the county court of any county to the State Department of Agriculture, and moneys allotted by the State Department of Agriculture for expenditure within any county, hereby are appropriated continuously for and shall be expended only in the control of coyotes and other harmful predatory animals within the boundaries of the county in accordance with the terms and conditions fixed by the State Department of Agriculture and the United States Department of Agriculture, unless otherwise authorized by the county court.

NOTE: Sets forth official title.

SECTION 183. ORS 618.071 is amended to read:

618.071. When necessary for the enforcement of ORS 618.010 to 618.246 and 618.991, or rules promulgated pursuant thereto, the State Department of Agriculture is:

(1) Authorized to enter during normal business hours any premises, including buildings or mobile facilities, where commercial transactions are conducted, commodities are located, or weights and measures are employed.

[(a)] If such premises are not open to the public, a department representative shall first present the credentials of the representative and obtain consent before making entry thereto.

[(b)] If such entry is denied, the department may apply for a search warrant from any person authorized to issue search warrants.

(2) Empowered to stop any commercial vehicle and, after presentment of credentials, require the person in charge to move the vehicle to a designated place for inspection on probable cause that a violation of ORS 618.010 to 618.246 and 618.991 has occurred or is occurring.

(3) Authorized, in the public interest, to issue written notices or warnings to violators for minor infractions of ORS 618.010 to 618.246 and 618.991 in lieu of referring the matter to the district attorney.

NOTE: Corrects structure of (1).

SECTION 184. ORS 624.080 is amended to read:

624.080. (1) The Health Division may, by rule, define certain communicable diseases which may be spread to the public by employees of a restaurant, bed and breakfast facility or temporary restaurant.

(2) No person who is affected with a communicable disease described in subsection (1) of this section or is a carrier of such disease shall work in any restaurant, bed and breakfast facility or temporary restaurant. No restaurant, bed and breakfast facility or temporary restaurant shall employ any such person or any person suspected of being affected with any communicable disease or of being a carrier of such disease. If the restaurant, bed and breakfast facility or temporary restaurant manager suspects that any employee has contracted any disease in a communicable form or has become a carrier of such disease the manager shall notify the assistant director immediately. A placard containing this [section] subsection shall be posted in all toilet rooms.

(3) When suspicion arises as to the possibility of transmission of infection from any restaurant, bed and breakfast facility or temporary restaurant employee, the assistant director may require any or all of the following measures:

(a) The immediate exclusion of the employee from all restaurants, bed and breakfast facilities and temporary restaurants; and

(b) Adequate medical examinations of the employee and associates of the employee, with such laboratory examinations as may be indicated.

NOTE: Corrects internal reference in (2).

SECTION 185. ORS 634.212 is amended to read:

634.212. (1) Upon receiving a petition of any 25 or more landowners, representing at least 70 percent of the acres of land, situated within the territory proposed to be a protected area, the State Department of Agriculture may establish a protected area, in accordance with the provisions of ORS 561.510 to 561.590 governing the procedures for the declaration of quarantines, except the consent of the Governor shall not be required.

(2) The petition, referred to in subsection (1) of this section, shall include the following:

(a) The proposed name of the protected area.

(b) The description, including proposed boundaries, of the territory proposed to be a protected area.

(d) A concise statement of the pesticides and the times, methods or rates of pesticide applications to be restricted or prohibited and the extent such are to be restricted or prohibited.

(e) A request that a public hearing be held by the department.

(f) The name of the person authorized to act as attorney in fact for the petitioners in all matters relating to the establishment of a proposed protected area.

(g) A concise statement of any desired limitations of the powers and duties of the governing body of the proposed protected area.

(3) If more than one petition, referred to in subsection (1) of this section, is received by the department describing parts of the same territory, the department may consolidate all or any of such petitions.

(4) Each petition, described in subsection (1) of this section, shall be accompanied by a filing fee of $125. Upon receipt of such petition and payment of such fee, the department shall prepare and submit to the petitioners an estimated budget of the costs of establishing such proposed protected area, including cost of preparation of the estimated budget, of the hearing and of the preparation of required documents. Within 15 days of the receipt of the estimated budget, the petitioners shall remit to the department the difference between the filing fee and total estimated budget. Should the petitioners fail to remit such difference, the department shall retain the filing fee and terminate the procedure for establishment of a proposed protected area. If, upon completion of the procedure for establishment of a proposed protected area, there remains an unexpended and unencumbered balance of funds received by the department under this section, such balance shall be refunded to the petitioners through their designated attorney in fact.

(5) In making a determination pursuant to the authority granted under ORS 561.520 (2), the Director [of the department] of Agriculture shall consider, among other factors, the following:

(a) The agricultural and horticultural crops, wildlife or forest industry to be affected and their locations.

(b) The topography and climate, including temperature, humidity and prevailing winds, of the territory in which the proposed protected area is situated.

NOTE: Sets forth official title in (5).

SECTION 186. ORS 634.905 is amended to read:

634.905. (1) Any civil penalty under ORS 634.900 shall be imposed as provided in ORS 183.090.

(2) Notwithstanding ORS 183.090, the person to whom the notice is addressed shall have 10 days from the date of service of the notice in which to make written application for a hearing before the Director of Agriculture.

NOTE: Sets forth official title in (2).

SECTION 187. ORS 635.055 is amended to read:

635.055. In carrying out the intent and purpose of ORS 635.045, the State Department of Agriculture, in addition to taking into consideration the desires and needs of the nonalcoholic beverage manufacturing industry and the evidence and testimony received at a public hearing, shall [also] take into consideration the laws and rules of this state, other states and the Federal Government. Unless there is substantial evidence and testimony to the contrary, the department shall, as far as is reasonable and practical, make its rules conform to, and [they shall] not be more restrictive than, the rules of the Federal Food and Drug Administration or other federal enforcement agency.

NOTE: Corrects punctuation and syntax.

SECTION 188. ORS 646.551 is amended to read:

646.551. As used in ORS 646.551 to 646.557, unless the context requires otherwise:

(1) "Telephonic seller" means a person who, on the person's own behalf, or on behalf of another person, causes or attempts to cause a telephone solicitation to be made under the following circumstances:

(a) The person initiates telephonic contact with a prospective purchaser and represents or implies any of the following:

(A) That a prospective purchaser who buys one or more goods or services unit will receive additional units, whether or not of the same type as purchased, without further cost. As used in this subparagraph, "further cost" does not include actual postage or common carrier delivery charges, if any;

(B) That a prospective purchaser will receive a prize or gift if the person also encourages the prospective purchaser to do either of the following:

(i) Purchase or rent any goods or services; or

(ii) Pay any money, including, but not limited to a delivery or handling charge;

(C) That a prospective purchaser who buys goods or services, because of some unusual event or imminent price increase, will be able to buy these items at prices which are below those usually charged or will be charged for those items;

(D) That the seller is a person other than the actual seller;

(E) That the items for sale or rent are manufactured or supplied by a person other than the actual manufacturer or supplier; or

(F) That the items for sale are gold, silver or other precious metals, diamonds, rubies, sapphires or other precious stones or any interest in oil, gas or mineral fields, wells or exploration sites; or

(b) The telephone solicitation is made by the person in response to inquiries from prospective purchasers generated by advertisement, on behalf of the person and the solicitation is conducted as described in paragraph (a) of this subsection.

(2) "Telephonic seller" does not include any of the following:

(a) A person selling a security as defined in ORS 59.015, or securities which are exempt under ORS 59.025.

(b) A person licensed pursuant to ORS chapter 696 when the transaction is governed by that chapter.

(c) A person issued a certificate of registration pursuant to ORS 701.055 when the solicited transaction is governed by ORS chapter 701.

(d) A person licensed pursuant to ORS chapter 744 when the solicited transaction is governed by the Insurance Code.

(e) A person soliciting the sale of a franchise when the solicited transaction is governed by ORS 650.005 to 650.085.

(f) A person primarily soliciting the sale of a subscription to or advertising in a newspaper of general circulation.

(g) A person primarily soliciting the sale of a magazine or periodical, or contractual plans, including book or record clubs:

(A) Under which the seller provides the consumer with a form which the consumer may use to instruct the seller not to ship the offered merchandise, and which is regulated by the Federal Trade Commission trade regulation concerning "Use of Negative Option Plans by Sellers in Commerce"; or

(B) Using arrangements such as continuity plans, subscription arrangements, standing order arrangements, supplements and series arrangements under which the seller periodically ships merchandise to a consumer who has consented in advance to receive such merchandise on a periodic basis.

(h) A person soliciting business from prospective purchasers who have previously purchased from the business enterprise for which the person is calling.

(i) A person soliciting without the intent to complete and who does not complete the sales presentation during the telephone solicitation and who only completes the sale presentation at a later face-to-face meeting between the solicitor and the prospective purchaser, unless at that later meeting the solicitor collects or attempts to collect payment for delivery of items purchased.

(j) Any supervised financial institution or parent, subsidiary, or affiliate thereof. As used in this paragraph, "supervised financial institution" means any financial institution or trust company, as those terms are defined in ORS 706.008, or any personal property broker, consumer finance lender, commercial finance lender or insurer that is subject to regulation by an official or agency of this state or the United States.

(k) A person soliciting the sale of funeral or burial services regulated by ORS 59.670 and 59.680 or by ORS chapter 692.

(L) A person soliciting the sale of services provided by a cable television system operating under authority of a franchise or permit issued by a governmental agency of this state, or subdivision thereof.

(m) A person or affiliate of a person whose business is regulated by the Public Utility Commission, or a telecommunications utility with access lines of 15,000 or less or a cooperative telephone association.

(n) A person soliciting the sale of a farm product, as defined in ORS 79.1090 (3), if the solicitation does not result in a sale which costs the purchaser in excess of $100.

(o) An issuer or a subsidiary of an issuer that has a class of securities that is subject to section 12 of the Securities Exchange Act of 1934 and that is either registered or exempt from registration under paragraph (A), (B), (C), (E), (F), (G) or (H) of subsection (g) of that section.

(p) A person soliciting exclusively the sale of telephone answering services to be provided by that person or that person's employer.

(q) A person registered under the Charitable Solicitations Act.

NOTE: Corrects syntax in (2)(g)(B).

SECTION 189. ORS 646.605 is amended to read:

646.605. As used in ORS 646.605 to 646.652:

[(1) "Trade" and "commerce" mean advertising, offering or distributing, whether by sale, rental or otherwise, any real estate, goods or services, and includes any trade or commerce directly or indirectly affecting the people of this state.]

(1) "Appropriate court" means the circuit court of a county:

(a) Where one or more of the defendants reside;

(b) Where one or more of the defendants maintain a principal place of business;

(c) Where one or more of the defendants are alleged to have committed an act prohibited by ORS 646.605 to 646.652; or

(d) With the defendant's consent, where the prosecuting attorney maintains an office.

(2) "Documentary material" means the original or a copy of any book, record, report, memorandum, paper, communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording, wherever situate.

(3) "Examination" of documentary material shall include inspection, study, or copying of any such material, and taking testimony under oath or acknowledgment in respect of any such documentary material or copy thereof.

(4) "Person" means natural persons, corporations, trusts, partnerships, incorporated or unincorporated associations, and any other legal entity except bodies or officers acting under statutory authority of this state or the United States.

(5) "Prosecuting attorney" means the Attorney General or the district attorney of any county in which a violation of ORS 646.605 to 646.652 is alleged to have occurred.

[(6) "Appropriate court" means the circuit court of a county:]

[(a) Where one or more of the defendants reside;]

[(b) Where one or more of the defendants maintain a principal place of business;]

[(c) Where one or more of the defendants are alleged to have committed an act prohibited by ORS 646.605 to 646.652; or]

[(d) With the defendant's consent, where the prosecuting attorney maintains an office.]

[(7)] (6) "Real estate, goods or services" means those which are or may be obtained primarily for personal, family or household purposes, or which are or may be obtained for any purposes as a result of a telephone solicitation, and includes franchises, distributorships and other similar business opportunities, but does not include insurance. Real estate does not cover conduct covered by ORS chapter 90.

[(8)] (7) "Telephone solicitation" means a solicitation where a person, in the course of the person's business, vocation or occupation, uses a telephone or an automatic dialing-announcing device to initiate telephonic contact with a potential customer and the person is not one of the following:

(a) A person who is a broker-dealer or salesperson licensed under ORS 59.175, or a mortgage banker or mortgage broker licensed under ORS 59.850 when the solicitation is for a security qualified for sale pursuant to ORS 59.055;

(b) A person who is licensed or is otherwise authorized to engage in professional real estate activity pursuant to ORS chapter 696, when the solicitation involves professional real estate activity;

(c) A person registered or exempt from registration, as a builder pursuant to ORS chapter 701, when the solicitation involves the construction, alteration, repair, improvement or demolition of a structure;

(d) A person licensed or otherwise authorized to sell insurance as an agent pursuant to ORS chapter 744, when the solicitation involves insurance;

(e) A person soliciting the sale of a newspaper of general circulation, a magazine or membership in a book or record club who complies with ORS 646.611, when the solicitation involves newspapers, magazines or membership in a book or record club;

(f) A person soliciting without the intent to complete and who does not complete the sales presentation during the telephone solicitation and who only completes the sales presentation at a later face-to-face meeting between the solicitor and the prospective purchaser;

(g) A supervised financial institution or parent, subsidiary or affiliate thereof. As used in this paragraph, "supervised financial institution" means any financial institution or trust company, as those terms are defined in ORS 706.008, or any personal property broker, consumer finance lender, commercial finance lender or insurer that is subject to regulation by an official or agency of this state or of the United States;

(h) A person who is authorized to conduct prearrangement or preconstruction funeral or cemetery sales, pursuant to ORS chapter 692, when the solicitation involves prearrangement or preconstruction funeral or cemetery plans;

(i) A person who solicits the services provided by a cable television system licensed or franchised pursuant to state, local or federal law, when the solicitation involves cable television services;

(j) A person or affiliate of a person whose business is regulated by the Public Utility Commission of Oregon;

(k) A person who sells farm products as defined by ORS chapter 576 if the solicitation neither intends to nor actually results in a sale that costs the purchaser in excess of $100;

(L) An issuer or subsidiary of an issuer that has a class of securities that is subject to section 12 of the Securities Exchange Act of 1934 and that is either registered or exempt from registration under paragraph (A), (B), (C), (E), (F), (G) or (H) or subsection (g) of that section;

(m) A person soliciting exclusively the sale of telephone answering services to be provided by that person or that person's employer when the solicitation involves answering services; or

(n) A telecommunications utility with access lines of 15,000 or less or a cooperative telephone association when the solicitation involves regulated goods or services.

(8) "Trade" and "commerce" mean advertising, offering or distributing, whether by sale, rental or otherwise, any real estate, goods or services, and includes any trade or commerce directly or indirectly affecting the people of this state.

(9) "Unconscionable tactics" include, but are not limited to, actions by which a person:

(a) Knowingly takes advantage of a customer's physical infirmity, ignorance, illiteracy or inability to understand the language of the agreement;

(b) Knowingly permits a customer to enter into a transaction from which the customer will derive no material benefit; or

(c) Permits a customer to enter into a transaction with knowledge that there is no reasonable probability of payment of the attendant financial obligation in full by the customer when due.

(10) A willful violation occurs when the person committing the violation knew or should have known that the conduct of the person was a violation.

NOTE: Conforms statute structure to legislative form and style.

SECTION 190. ORS 652.020 is amended to read:

652.020. (1) No person shall be employed in any mill, factory or manufacturing establishment in this state more than 10 hours in any one day, or in sawmills, planing mills, shingle mills and logging camps more than eight hours, exclusive of one hour, more or less, in one day or more than 48 hours in one calendar week, except logging train crews, [watchmen] guards, firefighters and persons engaged in the transportation to and from work, and employees when engaged in making necessary repairs, or in the case of emergency where life and property are in imminent danger. However, employees may work overtime not to exceed three hours in one day, conditioned that payment be made for said overtime at the rate of time and one-half the regular wage.

(2) No employer shall require or permit any person to work in any place mentioned in this section more than the hours provided for in this section during any day of 24 hours. No employer shall permit or suffer an overseer, superintendent or other agent of the employer to violate this section.

(3) This section does not apply to persons employed in the care of quarters or livestock, conducting messhalls, superintendence and direction of work, or to the loading and removal of the finished forest product.

(4) Subsections (1) and (2) of this section do not apply to employees who are represented by a labor organization for purposes of collective bargaining with their employer, provided limits on the required hours of work and overtime payment have been agreed to between the employer and labor organization, or if no agreement is reached, then, for the purposes of this subsection, such limits and payments shall not be deemed to be changed from the previous collective bargaining agreement between the employer and labor organization unless the employees have been locked out, are engaged in a strike or the employer has unilaterally implemented new terms and conditions of employment.

NOTE: Deletes gender-specific language in (1).

SECTION 191. ORS 652.110 is amended to read:

652.110. No person engaged in any business or enterprise of any kind in this state shall issue, in payment of or as evidence of indebtedness for wages due an employee, any order, check, memorandum or other acknowledgment of indebtedness, unless the same is negotiable, and is payable without discount in cash on demand at some bank or other established place of business in the county where the same is issued, and where a sufficient amount of funds have been provided and are or will be available for the payment of such order, check or other acknowledgment of indebtedness when due. Such person shall, upon presentation and demand, pay any such order, check, memorandum or other acknowledgment of indebtedness, in lawful money of the United States. This section does not in any way limit or interfere with the right of any employee to accept from any person, as an evidence or acknowledgment of indebtedness for wages due the employee, a negotiable instrument, payable at some future date with interest. An employer and an employee may agree to authorize an employer to deposit without discount wages due the employee in the employee's account in a [bank, national bank, mutual savings bank, or credit union or savings and loan association] financial institution, as defined in ORS 706.008, in this state.

NOTE: Corrects terminology.

SECTION 192. ORS 652.140 is amended to read:

652.140. (1) Whenever an employer discharges an employee or where such employment is terminated by mutual agreement, all wages earned and unpaid at the time of such discharge or termination shall become due and payable not later than the end of the first business day after the discharge or termination.

(2) When an employee who does not have a contract for a definite period quits employment, all wages earned and unpaid at the time of quitting become due and payable immediately if the employee has given to the employer not less than 48 hours' notice, excluding Saturdays, Sundays and holidays, of intention to quit employment. If notice is not given to the employer, the wages shall be due and payable within five days, excluding Saturdays, Sundays and holidays, after the employee has quit, or at the next regularly scheduled payday after the employee has quit, whichever event first occurs.

(3) For the purpose of this section, if employment termination occurs on a Saturday, Sunday or holiday, all wages earned and unpaid shall be paid no later than the end of the first business day after the employment termination, except that if the employment is related to activities authorized under ORS chapter 565, all wages earned and unpaid shall be paid no later than the end of the second business day after the employment termination.

(4) The employer shall forward such wages by mail to any address designated by the employee if the employee requests the employer so to do. An employer may deposit such wages without discount in the employee's account in a [bank, national bank, mutual savings bank, credit union, or savings and loan association] financial institution, as defined in ORS 706.008, in this state, provided the employee and the employer have agreed to such deposit.

(5) This section does not apply to employment for which a collective bargaining agreement otherwise provides for the payment of wages upon termination of employment.

(6) When a termination of employment results from the sale of a business or business property and the purchaser employs or continues the employment of an individual employed at the business, this section does not apply to the payment to such an individual of wages for earned but unused accrued holiday leave, sick leave, vacation leave or other leave benefits payable upon termination of employment pursuant to a collective bargaining or other employment agreement or employer policy, if the following conditions are met:

(a) On the first day of such an individual's continued employment the purchaser of the business credits the individual with all such earned but unused accrued leave; and

(b) The leave, when used, is paid at a rate not less than the rate at which the leave was earned or, if paid at a lesser rate, the number of hours credited is increased to compensate the individual for any difference.

NOTE: Corrects terminology in (4).

SECTION 193. ORS 652.320 is amended to read:

652.320. As used in ORS 652.310 to 652.414, unless the context requires otherwise:

(1) "Commissioner" means the Commissioner of the Bureau of Labor and Industries.

(2) "Court" means a court of competent jurisdiction and proper venue to entertain a proceeding referred to in ORS 652.310 to 652.414.

(3) "Demand" means a written demand for payment made during business hours on an employer or any appropriate representative of an employer by an employee or by some person having and exhibiting due authority to act in said employee's behalf.

(4) "Pay" means to deliver or tender compensation at a previously designated and reasonably convenient place in this state, during working hours, in legal tender or by order or negotiable instrument payable and paid in legal tender without discount on demand in this state or by deposit without discount in an employee's account in a [bank, national bank, mutual savings bank, credit union or savings and loan association] financial institution, as defined in ORS 706.008, in this state, provided the employee and the employer have agreed to such deposit.

(5) "Payment" means the delivery, tender or deposit of compensation in the medium of payment described in subsection (4) of this section. Such delivery, tender or deposit shall be made to or for the account of the employee concerned or to or for the account of any person having due authority to act in said employee's behalf.

(6) "Production" means a live presentation organized for the economic gain of any person or organization utilizing the personal services of one or more musicians and supporting technical personnel.

(7) "Producer-promoter" means a person, firm, association or corporation which supervises, finances or attempts to organize a production in this state other than:

(a) The proprietor of a commercial establishment with a Class A or Class B dispenser license or tavern staging a production on the proprietor's own premises;

(b) Any nonprofit organization staging a production for the sole benefit of the organization, its members or the general public; or

(8) "Rate of payment" means the rate at which payment is made or is to be made in the manner described in this section.

(9) "Wage claim" means an employee's claim against an employer for compensation for the employee's own personal services, and includes any wages, compensation, damages or civil penalties provided by law to employees in connection with a claim for unpaid wages.

NOTE: Corrects terminology in (4).

SECTION 194. ORS 653.310 is amended to read:

653.310. No child under 18 years of age shall be employed or permitted to work in any employment listed in ORS 653.320 (2)[,] unless the person employing the child keeps on file and accessible to the school authorities of the district where such child resides, and to the police and the Wage and Hour Commission, an annual employment certificate as prescribed by the rules adopted by the [Wage and Hour] commission pursuant to ORS 653.307[,] and keeps a complete list of all such children employed therein.

NOTE: Sets forth official title; corrects punctuation.

SECTION 195. ORS 657.044 is amended to read:

657.044. (1) As used in this chapter, "employment" does not include service performed for:

(a) A corporation by corporate officers who are directors of the corporation, who have a substantial ownership interest in the corporation and who are members of the same family as parents, daughters, sons, daughters-in-law, sons-in-law or grandchildren if the corporation elects not to provide coverage for those individuals. The election shall be in writing and shall be effective on the first day of the calendar quarter in which the request was submitted.

(b) A limited liability company by a member, including members who are managers, as defined in ORS 63.001.

(2) The provisions of this section do not apply to service performed for a nonprofit employing unit, as defined in ORS 657.072, for this state or for a political subdivision of this state.

NOTE: Inserts appropriate ORS chapter reference in (1)(c).

SECTION 196. ORS 657.072 is amended to read:

657.072. (1) "Employment" does not include service performed:

(a) In the employ of:

(A) A church or convention or association of churches; or

(B) An organization which is operated primarily for religious purposes and which is operated, supervised, controlled or principally supported by a church or convention or association of churches;

(b) By a duly ordained, commissioned or licensed minister of a church in the exercise of ministry or a member of a religious order in the exercise of duties required by such order; or

(c) In a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury, or providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market when such service is performed by an individual receiving such rehabilitation or remunerative work.

(2) Provisions of subsection (1) of this section apply only to services performed for a nonprofit employing unit. A "nonprofit employing unit" means an organization, or group of organizations, described in section 501 (c) (3) of the U. S. Internal Revenue Code which is exempt from income tax under section 501 (a) of the U. S. Internal Revenue Code.

NOTE: Inserts appropriate conjunction after (1)(a)(A).

SECTION 197. ORS 657.507 is amended to read:

657.507. (1) If upon satisfactory evidence the Director of the Employment Department finds it necessary for the protection of the Unemployment Compensation Trust Fund, the director may require any employer subject to this chapter, except the state, including every state officer, board, commission, department, institution, branch, agency or political subdivision, to deposit and keep on deposit, with the director, a sum equal to the contributions due the director upon the employer's payroll or estimated payroll covering a period of three calendar quarters.

(2) The director may, [in] at the discretion of the director and in lieu of such deposit, accept a bond or an irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 in a form acceptable to the director to secure payment of contributions to become due the fund. The deposit or posting of the bond or letter of credit shall not relieve the employer from making contributions to the fund based on the payroll of the employer as provided by this chapter. The director may, [in] at the discretion of the director, at any time apply such deposit or bond or letter of credit or part thereof to the delinquencies or indebtedness of the employer arising under any provision of this chapter.

(3) Any deposit, letter of credit or bond shall be deemed for all purposes to become the sole property of the Director of the Employment Department and shall be deposited in the Employment Tax Guarantee Fund and held for the sole benefit of the Unemployment Compensation Trust Fund and the Employment Department Special Administrative Fund, subject only to subsection (4) of this section. The deposit, letter of credit or bond shall be prior to all other liens, claims or encumbrances and shall be exempt from any process, attachment, garnishment or execution whatsoever and shall be for the sole benefit of the Unemployment Compensation Trust Fund and the Employment Department Special Administrative Fund except as provided in subsection (4) of this section.

(4) If an employer ceases to be an employer subject to this chapter, the Director of the Employment Department shall, upon receipt of all payments due the fund based on the employer's payroll, refund to the employer all deposits remaining to the employer's credit and shall cancel any bond or letter of credit given under this section. Such sums as are on deposit in the Employment Tax Guarantee Fund or bonds held for the benefit of the Unemployment Compensation Trust Fund shall first be applied to any indebtedness or deficiencies due from the employer to the Unemployment Compensation Trust Fund and the Employment Department Special Administrative Fund under any provisions of this chapter before any return is made to the employer. The employer shall have no interest in such deposit, letter of credit or bond prior to full compliance with this section and all provisions of this chapter.

NOTE: Corrects word choice in (2).

SECTION 198. ORS 659.322 is amended to read:

659.322. (1) No employee benefit plan may include any provision which has the effect of limiting or excluding coverage or payment for any health care for an individual who would otherwise be covered or entitled to benefits or services under the terms of the employee benefit plan because that individual is provided, or is eligible for, benefits or services pursuant to a plan under Title XIX of the Social Security Act. This section applies to employee benefit plans, whether sponsored by an employer or a labor union.

(2) A group health plan is prohibited from considering the availability or eligibility for medical assistance in this or any other state under 42 U.S.C. s.1396a (section 1902 of the Social Security Act), herein referred to as Medicaid, when considering eligibility for coverage or making payments under its plan for eligible enrollees, subscribers, policyholders or certificate holders.

(3) To the extent that payment for covered expenses has been made under the state Medicaid program for health care items or services furnished to an individual, in any case where a third party has a legal liability to make payments, the state is considered to have acquired the rights of the individual to payment by any other party for those health care items or services.

(4) A group health plan shall not deny enrollment of a child under the health plan of the child's parent on the grounds that:

(a) The child was born out of wedlock;

(b) The child is not claimed as a dependent on the parent's federal tax return; or

(5) Where a child has health coverage through a group health plan of a noncustodial parent, the group health plan shall:

(a) Provide such information to the custodial parent as may be necessary for the child to obtain benefits through that coverage;

(b) Permit the custodial parent or the provider, with the custodial parent's approval, to submit claims for covered services without the approval of the noncustodial parent; and

(c) Make payments on claims submitted in accordance with paragraph (b) of this subsection directly to the custodial parent, the provider or the state Medicaid agency.

(6) Where a parent is required by a court or administrative order to provide health coverage for a child, and the parent is eligible for family health coverage, the group health plan shall be required:

(a) To permit the parent to enroll, under the family coverage, a child who is otherwise eligible for the coverage without regard to any enrollment season restrictions;

(b) If the parent is enrolled but fails to make application to obtain coverage for the child, to enroll the child under family coverage upon application of the child's other parent, the state agency administering the Medicaid program or the state agency administering 42 U.S.C. ss.651 to 669, the child support enforcement program; and

(c) Not to disenroll or eliminate coverage of the child unless the group health plan is provided satisfactory written evidence that:

(A) The court or administrative order is no longer in effect; or

(B) The child is or will be enrolled in comparable health coverage through another insurer which will take effect not later than the effective date of disenrollment.

(7) A group health plan may not impose requirements on a state agency, which has been assigned the rights of an individual eligible for medical assistance under Medicaid and covered for health benefits from such plan, that are different from requirements applicable to an agent or assignee of any other individual so covered.

(8)(a) In any case in which a group health plan provides coverage for dependent children of participants or beneficiaries, the plan shall provide benefits to dependent children placed with participants or beneficiaries for adoption under the same terms and conditions as apply to the natural, dependent children of the participants and beneficiaries, regardless of whether the adoption has become final.

(b) A group health plan may not restrict coverage under the plan of any dependent child adopted by a participant or beneficiary, or placed with a participant or beneficiary for adoption, solely on the basis of a preexisting condition of the child at the time that the child would otherwise become eligible for coverage under the plan if the adoption or placement for adoption occurs while the participant or beneficiary is eligible for coverage under the plan.

(9) As used in this section:

(a) "Child" means, in connection with any adoption, or placement for adoption of the child, an individual who has not attained 18 years of age as of the date of the adoption or placement for adoption.

(b) "Group health plan" means a group health plan as defined in [section 607 (1) of the Employee Retirement Income Security Act of 1974] 29 U.S.C. 1167.

(c) "Placement for adoption" means the assumption and retention by a person of a legal obligation for total or partial support of a child in anticipation of the adoption of the child. The child's placement with a person terminates upon the termination of such legal obligations.

NOTE: Inserts appropriate U.S.C. reference in (9)(b).

SECTION 199. ORS 670.306 is amended to read:

670.306. (1) Subsections (2) and (3) of this section shall apply only to the following professional licensing boards:

(a) State Board of Architect Examiners.

(b) Construction Contractors Board.

(d) State Landscape Architect Board.

(e) State Landscape Contractors Board.

(f) State Board of Accountancy.

(g) Oregon Board of Maritime Pilots.

(h) State Board of Tax Service Examiners.

(2) A board shall fix the qualifications of and appoint an administrative officer. The determination of qualifications and appointment of an administrative officer shall be made after consultation:

(a) In the case of a board referred to in subsection (1)(a), (b), (c), (d), (e) or (f) of this section, with the Governor.

(b) In the case of [a board referred to in subsection (1)(g) of this section, with the executive officer of the department or other agency in which the board is established] the Oregon Board of Maritime Pilots, with the Director of Transportation.

(3) An administrative officer of a board shall not be a member of that board.

(4) Subject to the applicable rules of the State Personnel Relations Law, the board shall fix the compensation of its administrator, who shall be in the unclassified service.

(5) Subject to applicable rules of the State Personnel Relations Law, the administrative officer shall appoint all subordinate employees, prescribe their duties and fix their compensation.

NOTE: Clarifies official titles in (2)(b).

SECTION 200. ORS 672.160 is amended to read:

672.160. (1) Except as provided by subsection (2) [or (3)] of this section, all certificates expire one year after the date of their issue or renewal and become invalid on that date unless renewed. The State Board of Examiners for Engineering and Land Surveying may vary the dates of certificate renewal by giving to the applicant written notice of the renewal date being assigned and by making prorated adjustments in the renewal fee.

(2) The board may vary periods of certificate renewal or periods for registration to provide for renewal and payment of fees either every year or every two years. If the board changes the renewal period it will provide written notice to certificate holders and registrants.

NOTE: Deletes erroneous internal reference in (1).

SECTION 201. ORS 675.063 is amended to read:

675.063. Upon application therefor and payment of the required fee, the State Board of Psychologist Examiners may issue a limited permit to practice as a psychologist to an applicant holding a certificate or license to practice psychology issued by another state [and] whose requirements are, in the judgment of the board, essentially equivalent to those required by ORS 675.010 to 675.150. The limited permit shall be valid for a period of not more than 180 calendar days in any 24-month period.

NOTE: Deletes erroneous conjunction.

SECTION 202. ORS 679.165 is amended to read:

679.165. The entry of a decree by any court of competent jurisdiction establishing the mental [disease] disorder of any person holding a license under this chapter operates as a suspension of such license. Such person may resume practice only upon a finding by the Oregon Board of Dentistry that the licensee has been declared restored to mental competence by an order of a court of competent jurisdiction.

NOTE: Corrects word choice.

SECTION 203. ORS 688.220 is amended to read:

688.220. (1) The Physical Therapist Licensing Board shall investigate every alleged violation of ORS 688.010 to 688.220 coming to its notice and shall, subject to the conditions of ORS 676.175, report to the proper district attorney all cases that in the judgment of the board warrant prosecution. The district attorney will investigate as necessary. A police officer, sheriff or other peace officer in this state shall investigate alleged violations of [this chapter] ORS 688.010 to 688.220 and arrest violators. The Attorney General or proper district attorney shall prosecute violations of ORS 688.010 to 688.220 and, in any proceeding brought against the board, shall represent the board if the board so requests.

(2) Upon receipt of a complaint under ORS 688.010 to 688.220, the board shall conduct an investigation as described under ORS 676.165.

NOTE: Inserts appropriate series reference.

SECTION 204. ORS 688.645 is amended to read:

688.645. (1) An initial application fee shall be submitted with the application for hemodialysis technician certification. If the applicant is taking an examination administered by the Health Division of the Department of Human Resources, an additional fee shall be charged for the examination.

(2) The division may charge a fee for late renewal of a certificate and for issuance of any duplicate certificate.

(3) Subject to the review of the Oregon Department of Administrative Services, the fees and charges established under this section shall not exceed the cost of administering the certification program of the division pertaining to the purpose for which the fee or charge is established, as authorized by the Legislative Assembly for the division's budget, as the budget may be modified by the Emergency Board.

(4) All moneys received by the division under [this chapter] ORS 688.625 to 688.665 shall be paid into the General Fund in the State Treasury and placed to the credit of the division account and such moneys hereby are appropriated continuously and shall be used only for the administration and enforcement of ORS 688.625 to 688.665.

NOTE: Inserts appropriate series reference in (4).

SECTION 205. ORS 689.255 is amended to read:

689.255. (1) To obtain a license to engage in the practice of pharmacy, an applicant for licensure by examination shall:

(a) Have submitted a written application in the form prescribed by the State Board of Pharmacy.

(b) Have attained the age of 18 years.

(d) Have completed requirements for the first professional undergraduate degree as certified by a school or college of pharmacy which has been approved by the board.

(e) Have completed an internship or other program which has been approved by the board, or demonstrated to the board's satisfaction experience in the practice of pharmacy which meets or exceeds the minimum internship requirements of the board.

(f) Have successfully passed an examination given by the board.

(g) Have paid the fees specified by the board for examination and issuance of license.

(2)(a) The examination for licensure required under subsection (1)(f) of this section shall be given by the board at least two times during each fiscal year of the state. The board shall determine the content and subject matter of each examination, the place, time and date of administration of the examination and those persons who shall have successfully passed the examination.

(b) The examination shall be prepared to measure the competence of the applicant to engage in the practice of pharmacy. The board may employ and cooperate with any organization or consultant in the preparation and grading of an appropriate examination, but shall retain the sole discretion and responsibility of determining which applicants have successfully passed such an examination.

(3)(a) All applicants for licensure by examination shall obtain professional and practical experience in the practice of pharmacy concurrent with or after college attendance, or both, under such terms and conditions as the board shall determine.

(b) The board shall establish standards for internship or any other program necessary to qualify an applicant for the licensure examination based on nationally recognized standards of practice and shall also determine the necessary qualifications of any preceptors used in any internship or other program.

(4) Any person who has received a first professional undergraduate degree from a school or college of pharmacy located outside the United States which has not been approved by the board, but who is otherwise qualified to apply for a license to practice pharmacy in the State of Oregon may be deemed to have satisfied the degree requirements of subsection (1)(d) of this section by verification to the board of the academic record and graduation of the person and by meeting such other requirements as the board may establish. The board may require such person to successfully pass an examination or examinations given or approved by the board to establish proficiency in English and equivalency of education of such person with qualified graduates of a degree program referred to in subsection (1)(d) of this section as a prerequisite of taking the licensure examination provided for in subsection (1)(f) of this section.

NOTE: Corrects syntax in (1)(g).

SECTION 206. ORS 689.495 is added to and made a part of ORS chapter 689.

NOTE: Adds statute to appropriate series.

SECTION 207. ORS 692.180 is amended to read:

692.180. (1) Upon complaint or upon its own motion, the State Mortuary and Cemetery Board may investigate any complaint concerning any person, licensee or holder of a certificate of authority made by any person or by the board. If the board finds any of the causes described in this section in regard to any person, licensee or applicant or the holder of a certificate of authority, the board may impose a civil penalty of not more than $1,000 for each violation, suspend or revoke a license to practice or to operate under this chapter or refuse to grant or renew a license. The causes are as follows:

(a) Misrepresentation in the conduct of business or in obtaining a license.

(b) Fraudulent or dishonest conduct, when the conduct bears a demonstrable relationship to funeral service practice, embalming practice or the operation of cemeteries or crematoriums.

(c) Except as provided in this paragraph, solicitation of human dead bodies by the licensee or any agent, assistant or employee of the licensee, either before or after death. This paragraph does not apply to:

(A) Activities permissible under ORS 128.400 to 128.440 and 692.285; or

(B) The sale, in accordance with provisions of the Insurance Code, of prearranged funeral or cemetery merchandise or services, or any combination thereof, to be funded by the contemporaneous or subsequent assignment of a life insurance policy or an annuity contract.

(d) Offensive treatment of dead human bodies or a body in the person's custody has been disposed of in violation of ORS chapter 432 or rules adopted pursuant thereto.

(e) Aiding or abetting a person who is not a licensee or an apprentice in any act involving the disposition of dead human bodies before the bodies undergo cremation, entombment or burial or before the bodies are transported out of the State of Oregon.

(f) Sale or reuse of any casket or body container that has been previously utilized for the placement of a deceased human body. This does not include use of a rental cover as defined in ORS 692.010.

(g) Violation of any of the provisions of this chapter or any rules adopted under this chapter.

(h) Violation of any provision of ORS 128.412 or 128.415 or regulations adopted by the Federal Trade Commission regulating funeral industry practices.

(i) Conviction of a crime, when the crime bears a demonstrable relationship to funeral service practice, embalming practice or the operation of cemeteries or crematoriums. A copy of the record of the conviction certified to by the clerk [or] of the court entering the conviction shall be conclusive evidence of the conviction.

(j) Violation of ORS chapter 97 as it relates to disposition of human bodies and to cemeteries.

(k) Refusing to surrender promptly the custody of a dead human body, upon the express order of the person lawfully entitled to the custody of the body.

(L) Acting as the legal representative of any deceased person for whom the licensee has rendered services governed by this chapter. This subsection does not prohibit a licensee from acting as the legal representative of a deceased relative or a deceased licensee if the deceased licensee was a partner, employee or employer in the licensee's practice.

(m) Failure to pay any civil penalty imposed by the board within 10 days after the order is entered or, if appealed, within 10 days after the order is sustained on appeal.

(2) All amounts recovered under this section shall be deposited in accordance with ORS 692.375.

(3) Civil penalties under this section shall be imposed as provided in ORS 183.090.

(4) Upon receipt of a complaint, the board shall conduct an investigation as described under ORS 676.165.

(5) Information that the board obtains as part of an investigation into licensee or applicant conduct or as part of a contested case proceeding, consent order or stipulated agreement involving licensee or applicant conduct is confidential as provided under ORS 676.175.

NOTE: Corrects word choice in (1)(i).

SECTION 208. ORS 701.150 is amended to read:

701.150. (1) If a final Construction Contractors Board order is not paid by the registrant, the board shall notify the surety on the bond.

(2) An order of the board that determines a claim under ORS 701.140 [to 701.160 which] and 701.145 that becomes final by operation of law or on appeal and remains unpaid 10 days after the period of time allowed in this section has expired is an order in favor of the claimant against the person and may be recorded with the county clerk in any county of this state.

(3) Upon receipt, the clerk shall record the order in the County Clerk Lien Record. In addition to any other remedy provided by law, recording an order in the County Clerk Lien Record pursuant to the provisions of this section has the effect provided for in ORS 205.125 and 205.126, and the order may be enforced as provided in ORS 205.125 and 205.126.

(4) Determinations by the board or judgments against the surety bond of a contractor shall be satisfied in the following priority in any 90-day period. A 90-day period shall begin on the date the first claim is filed with the board. A subsequent 90-day period shall begin on the date the first claim is filed with the board after the close of each preceding 90-day period. Within a 90-day period:

(a) Determinations and judgments as a result of claims against a contractor by the owner of a residential structure shall have payment priority to the full extent of the bond over all other types of claims.

(b) If the claims described in paragraph (a) of this subsection do not exhaust the bond, then amounts due as a result of all other types of residential structure claims filed within that 90-day period may be satisfied from the bond, except that the total amount paid from any one bond to nonowner claimants shall not exceed $2,000.

(c) If judgments and determinations involving residential structures do not exhaust the bond, the judgments and determinations involving nonresidential claims shall be satisfied in the following order, except that the total amount paid from any one bond to nonowner claimants shall not exceed $2,000:

(A) Labor, including employee benefits.

(B) Claims for breach of contract by a party to the construction contract.

(C) Any court costs, interest and attorney fees the plaintiff may be entitled to recover. The total cost paid from any one bond for court costs, interest and attorney fees shall not exceed $2,000.

(d) If the total claims filed with the board against a general contractor or a specialty contractor within 90 days after the board receives notice of the first claim against the contractor exceed the amount of the bond available for such claims, the bond shall be apportioned as the board determines, subject to the priorities established under this section.

(e) If the total amounts due as a result of claims filed with the board within 90 days after the first claim is filed do not exceed the amount of the bond available for such claims, all amounts due as a result of claims filed within the 90-day period shall have priority over all claims subsequently filed until the amount of the bond available for such claims is exhausted, but not later than one year after whichever occurs first:

(A) The date of expiration of the certificate of registration in force at the time the work was completed or abandoned; or

(B) Cancellation by the surety of the certificate of registration in force at the time the work was completed or abandoned.

NOTE: Inserts appropriate ORS citation in (2).

SECTION 209. ORS 701.410 is amended to read:

701.410. As used in ORS 279.400, 279.435, [and] 701.410, [to] 701.420, 701.430, 701.435 and 701.440, unless the context otherwise requires:

(1) "Construction" includes:

(a) Excavating, landscaping, demolition and detachment of existing structures, leveling, filling in and other preparation of land for the making and placement of building, structure or superstructure;

(b) Creation or making of a building, structure or superstructure; and

(2) "Contractor" includes a person who contracts with an owner on predetermined terms to be responsible for the performance of all or part of a job of construction in accordance with established specifications or plans, retaining control of means, method and manner of accomplishing the desired result.

(3) "Owner" includes a person who is or claims to be the owner in fee or a lesser estate of the land, building, structure or superstructure on which construction is performed and who enters into an agreement with a contractor for the construction.

(4) "Retainage" means the difference between the amount earned by a contractor or subcontractor under a construction contract and the amount paid on the contract by the owner or, in the case of a subcontractor, by a contractor or another subcontractor.

(5) "Subcontractor" includes a person who contracts with a contractor or another subcontractor on predetermined terms to be responsible for the performance of all or part of a job of construction in accordance with established specifications or plans.

NOTE: Inserts appropriate ORS string citation in first sentence.

SECTION 210. ORS 703.070 is amended to read:

703.070. (1) Applications for initial renewal or replacement licenses as polygraph examiners or trainees under ORS 703.010 and 703.030 to 703.320 shall be submitted in writing and under oath to the Department of Public Safety Standards and Training, accompanied by the proper fee therefor specified in ORS 703.110.

(2) [Any] A fee submitted to the department may not be refunded. Each [such] application shall be in such form and require such information as the department prescribes.

NOTE: Corrects syntax.

SECTION 211. ORS 703.420 is amended to read:

703.420. An applicant for an operative's registration:

(1) Must be at least 21 years of age;

(2) Must not have committed any act that constitutes grounds for denial of a registration under ORS 703.465 unless the Oregon Board of Investigators concludes that notwithstanding the act [or acts], the applicant is fit for the position; and

(3) Must have obtained a passing score on the test of professional investigative ethics administered or approved by the board.

NOTE: Corrects syntax.

SECTION 212. ORS 703.425 is amended to read:

703.425. (1) An application for an investigator's license or operative's registration shall be in writing on a form prescribed by the Oregon Board of Investigators and signed under oath, stating the applicant's:

(a) Name;

(b) Birthdate;

(d) Physical description;

(e) Current residence;

(f) Residence for the preceding 10 years;

(g) Current employment;

(h) Employment for the preceding 10 years;

(i) Experience qualifications;

(j) Education;

(k) Business address, which may be a post office box; and

(L) Any other information required by the board.

(2) The application shall be accompanied by:

(a) The application fee as prescribed by the board by rule;

(b) Two copies of a recent photograph of the applicant, measuring two inches by three inches, one to be mounted on an identification card and one to be retained by the board;

(d) Three professional references, none of which may be from a person who is related to the applicant by blood or marriage;

(e) Proof of a corporate surety bond or irrevocable letter of credit issued by [a commercial bank] an insured institution, as defined in ORS [706.005] 706.008, or such other security as the board may prescribe by rule in the sum of $5,000. Failure to maintain a bond or letter of credit shall be grounds for revocation or denial of renewal of a license or registration; and

(f) Proof of a passing score on the test of professional investigative ethics administered or approved by the board.

(3) All applicants must disclose any acts or crimes constituting grounds for denial of a license or registration under ORS 703.465. The board must conduct a special review of any applicant making a disclosure under this subsection.

(4) The board shall forward a copy of the application to the Department of State Police Bureau of Criminal Identification and shall request that the bureau make an investigation of the applicant to determine whether the applicant has committed any acts or crimes constituting grounds for denial of a license or registration under ORS 703.465.

NOTE: Corrects terminology in (2)(e).

SECTION 213. ORS 705.010 is amended to read:

705.010. As used in [ORS 705.010 to 705.350] this chapter:

(1) "Board" means the Workers' Compensation Board.

(2) "Department" means the Department of Consumer and Business Services.

(3) "Director" means the Director of the Department of Consumer and Business Services.

NOTE: Inserts appropriate ORS chapter reference; sets forth official title.

SECTION 214. ORS 706.520 is amended to read:

706.520. When requested in writing by the board of directors of a banking institution or stockholders owning a majority of the capital stock of an institution or an Oregon stock savings bank, the Director of the Department of Consumer and Business Services may make or cause to be made an examination into the affairs and conditions of the banking institution or Oregon stock savings bank. [For the examination,] The banking institution or Oregon stock savings bank shall pay the [fee imposed under] actual costs of the examination as provided in ORS 706.544.

NOTE: Corrects terminology and syntax.

SECTION 215. ORS 708A.115 is amended to read:

708A.115. (1) Institutions may invest, without regard to any limitation based on [capital and surplus] stockholders' equity, in:

(a) Obligations of the United States, including those of its agencies and instrumentalities;

(b) Obligations of public housing agencies issued pursuant to the United States Housing Act of 1937, as amended; and

(c) Obligations of the State of Oregon or any county, city, school district, port district or other public body with the power to levy taxes issued pursuant to the Constitution or statutes of the State of Oregon or the charter or ordinances of any county or city within the State of Oregon, if the issuing body has not been in default with respect to the payment of principal or interest on any of its obligations within five years preceding the date of the investment.

(2) Subject to a limitation of 20 percent of [capital and surplus] stockholders' equity, institutions may invest in obligations of any other state of the United States or obligations of any out-of-state county, city, school district, port district or other public body in the United States payable from ad valorem taxes, if the obligations are rated in one of the four highest grades by a recognized investment service organization that has been engaged regularly and continuously for a period of not less than 10 years in rating state and municipal obligations.

(3) Obligations received in satisfaction of debts previously contracted in good faith are not subject to the [capital] limitations of this section, if the book value of such obligations in excess of the limitations of this section is reduced to the amount allowed under this section within six months after the date the obligations are acquired.

NOTE: Corrects terminology.

SECTION 216. ORS 708A.155 is amended to read:

708A.155. (1) Upon the approval of the Director of the Department of Consumer and Business Services and subject to rules promulgated by the director pursuant to ORS 183.310, 183.315, 183.330, 183.335 and 183.341 to 183.410, an institution may invest an amount not exceeding in the aggregate 10 percent of its [paid-in capital and surplus] stockholders' equity in the stock of banks or corporations chartered or incorporated under the laws of the United States or of any other state. Such banks or corporations shall be principally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States, either directly or through the agency, ownership or control of local institutions in foreign countries, or in such dependencies or insular possessions, including the stock of one or more banks or corporations chartered or incorporated under section 25(a) of the Federal Reserve Act, as approved December 24, 1919.

(2) An institution shall file with the director an application for permission to exercise the powers established in subsection (1) of this section. The application shall specify the name, [capital and surplus] stockholders' equity of the institution filing it, the powers applied for and the place or places where the banking operations are to be carried on.

(3) The director may approve or reject the application, in whole or in part, if the granting of the application is considered inexpedient. The director may increase or decrease the number of places where the banking operations may be carried on.

(4) Before an institution may purchase stock in any corporation mentioned in subsection (1) of this section, the corporation shall agree to restrict its operations or conduct its business in the manner and under the limitations prescribed by the director for the places in which the business is to be conducted.

(5) If the director determines that the limitations prescribed are not being complied with, the director may investigate the matter. If the investigation shows that the corporation, or the institution holding stock in the corporation, has not complied with the limitations, the director may require the institution to dispose of stock holdings in the corporation.

(6) An institution investing in the capital stock of banks or corporations, as provided in subsection (1) of this section, shall furnish information concerning the condition of the banks or corporations to the director upon demand, and the director may order special examinations of the banks or corporations.

NOTE: Corrects terminology in (1) and (2).

SECTION 217. ORS 708A.565 is amended to read:

708A.565. Investments in stock of a company that engages in activities in which a bank holding company or a non-banking subsidiary of a bank holding company could engage under ORS 708A.120 (4) shall be carried on the books of the institution at a value not exceeding 15 percent of the [capital and surplus] stockholders' equity of the institution.

NOTE: Corrects terminology.

SECTION 218. ORS 708A.650 is amended to read:

708A.650. (1) As used in this section:

(a) "Bank" includes any banking institution, out-of-state state bank, national bank[,] or extranational institution [or foreign institution] doing a banking business in this state.

(b) "Banking day" means any day that is not an optional bank holiday.

(c) "Emergency" means any condition or occurrence which may interfere with the conduct of normal business operations at one or more of the offices of a bank, or which poses an imminent or existing threat to the safety or security of persons or property.

(d) "Open for the general conduct of banking business" means the office or offices of a bank are open to the public for carrying on substantially all business functions of the bank.

(e) "Optional bank holiday" means:

(A) Each Saturday and Sunday.

(B) New Year's Day on January 1.

(D) Presidents Day on the third Monday in February.

(E) Memorial Day on the last Monday in May.

(F) Independence Day on July 4.

(G) Labor Day on the first Monday in September.

(H) Columbus Day on the second Monday in October.

(I) Veterans Day on November 11.

(J) Thanksgiving Day on the fourth Thursday in November.

(K) Christmas Day on December 25.

(2) When an optional bank holiday, other than a Saturday, falls on a Saturday, the bank may observe the holiday either on that day or on the preceding Friday. When an optional bank holiday, other than a Sunday, falls on a Sunday, the bank may observe the holiday either on that day or on the succeeding Monday.

(3) Except as otherwise provided in this section, banks shall be open for the general conduct of banking business on each banking day.

(4) Any bank may remain closed on any optional bank holiday with respect to all or any of its banking and other functions.

(5) Subject to any applicable federal law or regulation, an office of a bank may be closed for any part or all of a banking day if the times or days which the office is open are posted on the premises of the office.

(6) When the Director of the Department of Consumer and Business Services determines that an emergency exists, the director may authorize the closing of the principal office or branch of any bank which may be affected by the emergency. The office or branch so closed may remain closed until the director determines that the emergency has ended and for such further time thereafter as may reasonably be required to prepare the office or branch to reopen.

(7) When the officers of a bank determine that an emergency exists which affects the principal office or a branch of the bank, they may close the office or branch without the approval of the director for a period not to exceed 48 hours, excluding holidays, during the continuation of the emergency. A bank closing an office or branch under this subsection shall give prompt notice of its action to the director, or in the case of a national bank, to the Comptroller of the Currency.

(8) The principal officers of a bank may close the principal office or any branch of the bank on any day designated, by proclamation of the President of the United States or the Governor of this state, as a day of mourning, rejoicing, or other special observance.

(9) When any obligation payable at, by or through a bank falls due on a day on which the bank remains closed under this section, it shall be due and payable on the next banking day on which the bank is open. Any act authorized, required or permitted to be performed at, by or with respect to any bank on a day on which the bank remains closed may be performed on the next banking day on which the bank is open, and no liability or loss of rights of any kind shall result from the closing.

NOTE: Corrects terminology in (1).

SECTION 219. ORS 709.130 is amended to read:

709.130. If the cash and securities belonging to any single fiduciary account exceed the amount of the trust company's [capital and surplus] stockholders' equity, the court appointing the trust company to the position of trust[,] may require an indemnity bond from the trust company for the amount of cash and securities exceeding [capital and surplus] stockholders' equity.

NOTE: Corrects terminology and punctuation.

SECTION 220. ORS 711.215 is amended to read:

711.215. An institution may go into voluntary liquidation by vote of its stockholders owning at least two-thirds of its capital stock. The institution shall first obtain the written consent of the Director of the Department of Consumer and Business Services. Before consenting to the liquidation, the director may require a special examination of the condition and affairs of the institution. The institution shall pay [a fee assessed under ORS 706.544 for the examination] the actual costs of the examination as provided in ORS 706.544.

NOTE: Corrects terminology.

SECTION 221. ORS 713.045 is added to and made a part of ORS chapter 713.

NOTE: Adds statute to appropriate series.

SECTION 222. ORS 713.090 is amended to read:

713.090. (1) Every out-of-state state bank and every extranational institution conducting banking business in this state shall file reports under oath with the Director of the Department of Consumer and Business Services in the form and giving the information the director may require.

(2) Every out-of-state state bank and extranational institution conducting banking business shall be subject to the fee provided in ORS 706.530 and to examination and regulation in the manner provided in ORS [706.805] 706.500.

NOTE: Corrects ORS reference.

SECTION 223. ORS 716.520 is amended to read:

716.520. (1) A savings bank may invest the funds mentioned in ORS 716.410 in:

(a) Bankers' acceptances and bills of exchange of the kind and maturities made eligible by law for rediscount with Federal Reserve Banks, if they are accepted by an institution or a national bank.

(b) Bills of exchange drawn by the seller on the purchaser of goods and accepted by the purchaser, if they are of the kind and maturities made eligible by law for rediscount with Federal Reserve Banks and are indorsed by a national bank or an institution.

(2) Not more than 20 percent of the assets of a savings bank may be invested in the acceptances mentioned in subsection (1) of this section. Not more than five percent of the aggregate credited to the depositors of a savings bank may be invested in the acceptances of or deposited with an institution or a national bank of which a director of the savings bank is a director. The aggregate amount of the liability of an institution or a national bank to a savings bank, whether as principal or indorser, for acceptances held by the savings bank and deposits made with it, may not exceed 25 percent of the [paid-up capital and surplus] stockholders' equity of the institution or of the paid-in capital and retained earnings of the national bank.

NOTE: Corrects terminology in (2).

SECTION 224. ORS 716.588 is amended to read:

716.588. (1) A savings bank may invest the funds mentioned in ORS 716.410 in the capital stock of a corporation organized under the laws of this state if:

(a) All of the capital stock of the corporation is owned by one or more savings banks organized under the laws of this state;

(b) The activities of the corporation are performed directly or through one or more wholly owned subsidiaries, and consist only of one or more of the following:

(A) Originating, purchasing, selling and servicing education loans and loans and participations in loans secured by first liens upon real estate and manufactured dwellings, including brokerage and warehousing of loans;

(B) Making any investment which would be an authorized investment of a savings bank organized under the laws of this state;

(D) Making investments in unimproved real estate for the purpose of prompt development and subdivision;

(c) The aggregate outstanding investment in the capital stock, obligations, or other securities of service corporations and subsidiaries thereof, including all loans, secured and unsecured, to the service corporations or any subsidiaries thereof and to joint ventures of the service corporation or subsidiaries, whether or not the savings bank is a stockholder in the service corporation, do not exceed three percent of the savings bank's assets. For the purpose of this subsection the term "aggregate outstanding investment" means the sum of the amounts paid for the acquisition of capital stock or securities and amounts invested in obligations of service corporations, less amounts received from the sale of capital stock or securities of service corporations and amounts paid to the savings bank to retire obligations of service corporations; and

(d) The corporation executes and files with the Director of the Department of Consumer and Business Services a written agreement in the form prescribed by the Director that the corporation will permit and pay the cost of examinations and audits by the director as the director considers necessary.

(2) If one of the savings banks holds more than 40 percent of the stock, the corporation, including any subsidiary, shall not incur or have outstanding at any time debts in excess of the following limitations:

(a) In the case of an unsecured debt other than to a holder of its capital stock, the lesser of an amount equal to one percent of the assets of the holder or holders of its capital stock or to the investment in the stock, obligations or other securities of the corporation by the holder or holders of its capital stock, excluding secured debts owed by the corporation to the holder or holders; and

(b) In the case of a secured debt, other than to a holder of its capital stock, the lesser of an amount equal to four percent of the assets of the holder or holders of its capital stock or four times the investment in the stock obligations or other securities of the corporation by the holder or holders of its capital stock excluding secured debts owed by the corporation to the holder or holders.

(3) A savings bank may invest up to one percent of its assets, in the case of a mutual savings bank, or up to 15 percent of its [paid-in capital and surplus] stockholders' equity, in the case of a stock savings bank, in the stock of the Oregon Capital Corporation authorized to be created under ORS 284.750 to 284.795, 315.504, 317.084, 317.267 and 318.031.

NOTE: Corrects terminology in (3).

SECTION 225. ORS 716.915 is added to and made a part of ORS chapter 716.

NOTE: Adds statute to appropriate series.

SECTION 226. ORS 723.188 is amended to read:

723.188. (1) Notwithstanding any other provision of this chapter, a credit union that provides in its articles of incorporation or bylaws for membership of employees of the State of Oregon shall also permit membership of any person serving as a foster parent in a foster home certified by the State Office for Services to Children and Families [of the Department of Human Resources] under ORS 418.625 to 418.645.

(2) A foster parent eligible for membership in a credit union under subsection (1) of this section shall comply with all other membership requirements applicable to any other person eligible for membership in the credit union.

NOTE: Deletes unnecessary reference to Department of Human Resources.

SECTION 227. ORS 744.057, as amended by section 547, chapter 631, Oregon Laws 1997, is amended to read:

744.057. The following persons are exempt from the provisions of ORS 744.051 and 744.054:

(1) Employees or representatives of insurers or agents, not receiving a commission, who perform administrative, clerical or technical services and who do not solicit insurance.

(2) Salaried employees of insurers who solicit, negotiate or effect insurance only through licensed resident agents.

(3) An attorney in fact of an authorized reciprocal insurer, or the salaried representatives of the insurer or attorney who receive no commissions.

(4) Salaried employees of the holder of a master group insurance policy or salaried employees of a participant in an institutional retirement program, who, in the performance of ministerial duties on behalf of such holder or participant, secure and forward information for the purpose of group life and health insurance or institutional retirement programs or for enrolling individuals under such group coverages or issuing certificates thereunder, when no commission is paid for such services and the compensation, if any, paid is reasonably related to the services performed.

(5) A person engaging in the lawful transaction of reinsurance.

(6) Salaried employees of title insurance agents or insurers, except for the individual or individuals designated as exercising the powers conferred by a title insurance agent's license.

(7) Any agent or representative of persons exempt from the Insurance Code under ORS 731.032 and 731.036, with respect to the exempted transactions.

(8) Any agent or representative of a fraternal benefit society who devotes, or intends to devote, less than 50 percent of the agent's or representative's time to the solicitation and procurement of insurance policies for such society. Any person who in the preceding calendar year has solicited and procured life insurance policies on behalf of any society in an amount of insurance in excess of $50,000 or, in the case of any other class or classes of insurance which the society might write, on the persons of more than 25 individuals, and who has received or will receive a commission or other compensation therefor, shall be presumed to be devoting, or intending to devote, 50 percent of the person's time to the solicitation or procurement of insurance policies for such society.

(9) A person engaging in the lawful transaction of home protection insurance if the person is a real estate licensee as defined by ORS 696.010, and if the transaction of this insurance by the person is subject to a written contract, to which the insurer is a party, governing the person's activities in the transaction.

(10) Salaried employees of a financial institution or trust company, as those terms are defined in section [7 of this 1997 Act] 3, chapter 631, Oregon Laws 1997, who, in the regular course of business with the customers of the financial institution or trust company, present the customers with written information about savings account annuities issued by an authorized insurer. Any person who purchases such an annuity may rescind the transaction within 10 days after the issuance of the contract. For purposes of this subsection, savings account annuities are annuities purchased with the proceeds of a savings account, certificate or share in a financial institution or trust company.

NOTE: Corrects reference in (10).

SECTION 228. ORS 744.609 is amended to read:

744.609. The following persons are not insurance consultants for the purposes of this chapter, and the prohibition in ORS 744.605 does not apply to them:

(1) Any attorney-at-law rendering services in the performance of duties of an attorney-at-law.

(2) Any certified public accountant or public accountant rendering services in the performance of the duties of a certified public accountant or public accountant, as authorized by law.

(3) Any person who, while conducting an educational seminar, performs any of the activities described in ORS 744.605 (1)(b).

(4) Any [bank, national bank, state or federally chartered mutual savings bank, state or federally chartered savings and loan association, state or federally chartered credit union] financial institution, as defined in ORS 706.008, or consumer finance licensee under ORS chapter 725.

(5) Any actuary who is a member of an organization determined by the Director of the Department of Consumer and Business Services as establishing standards for the actuarial profession.

(6) A person who provides or offers or purports to provide any of the services described in ORS 744.605 only to an agent or an authorized insurer.

NOTE: Corrects terminology in (4).

SECTION 229. ORS 746.015 is amended to read:

746.015. (1) No person shall make or permit any unfair discrimination between individuals of the same class and equal expectation of life, or between risks of essentially the same degree of hazard, in the availability of insurance, in the application of rates for insurance, in the dividends or other benefits payable under insurance policies, or in any other terms or conditions of insurance policies.

(2) Discrimination by an insurer in the application of its underwriting standards or rates based solely on an individual's physical handicap is prohibited, unless such action is based on sound actuarial principles or is related to actual or reasonably anticipated experience. For purposes of this subsection, "physical handicap" shall include, but not be limited to, blindness, deafness, hearing or speaking impairment or loss, or partial loss, of function of one or more of the upper or lower extremities.

(3) Discrimination by an insurer in the application of its underwriting standards or rates based solely upon an insured's or applicant's attaining or exceeding 65 years of age is prohibited, unless such discrimination is clearly based on sound actuarial principles or is related to actual or reasonably anticipated experience.

(4)(a) No insurer, on the basis of the status of an insured or prospective insured as a victim of domestic violence, shall do any of the following:

(A) Deny, cancel or refuse to issue or renew an insurance policy;

(B) Demand or require a greater premium or payment;

(D) Exclude or limit coverage for losses or deny a claim; or

(E) Fix any lower rate for or discriminate in the fees or commissions of an agent for writing or renewing a policy.

(b) The fact that an insured or prospective insured is or has been a victim of domestic violence shall not be considered a permitted underwriting or rating criterion.

(c) Nothing in this subsection prohibits an insurer from taking an action described in paragraph (a) of this subsection if the action is otherwise permissible by law and is taken in the same manner and to the same extent with respect to all insureds and prospective insureds without regard to whether the insured or prospective insured is a victim of domestic violence.

(d) An insurer that complies in good faith with the requirements of this subsection shall not be subject to civil liability due to such compliance.

(e) For purposes of this subsection, "domestic violence" means the occurrence of one or more of the following acts between family or household members:

(A) Attempting to cause or intentionally or knowingly causing physical injury;

(B) Intentionally or knowingly placing another in fear of imminent serious physical injury; or

(5) If the Director of the Department of Consumer and Business Services has reason to believe that an insurer in the application of its underwriting standards or rates is not complying with the requirements of this section, the director shall, unless the director has reason to believe the noncompliance is willful, give notice in writing to the insurer stating in what manner such noncompliance is alleged to exist and specifying a reasonable time, not less than 10 days after the date of mailing, in which the noncompliance may be corrected.

(6)(a) If the director has reason to believe that noncompliance by an insurer with the requirements of this section is willful, or if, within the period prescribed by the director in the notice required by subsection [(3)] (5) of this section, the insurer does not make the changes necessary to correct the noncompliance specified by the director or establish to the satisfaction of the director that such specified noncompliance does not exist, the director may hold a hearing in connection therewith. Not less than 10 days before the date of such hearing the director shall mail to the insurer written notice of the hearing, specifying the matters to be considered.

(b) If, after the hearing, the director finds that the insurer's application of its underwriting standards or rates violates the requirements of this section, the director may issue an order specifying in what respects such violation exists and stating when, within a reasonable period of time, further such application shall be prohibited. If the director finds that the violation was willful, the director may suspend or revoke the certificate of authority of the insurer.

(7) Affiliated workers' compensation insurers having reinsurance agreements which result in one carrier ceding 80 percent or more of its workers' compensation premium to the other, while utilizing different workers' compensation rate levels without objective evidence to support such differences, shall be presumed to be engaging in unfair discrimination.

NOTE: Corrects internal reference in (6)(a).

SECTION 230. ORS 746.150 is amended to read:

746.150. (1) For property, inland marine, casualty or surety insurance, an insurer may combine for dividend purposes the experience of a group of persons or risks any of which are within this state, except for workers' compensation insurance done in compliance with ORS 746.145 and subject to rules adopted by the Director of the Department of Consumer and Business Services.

(2) The director shall make reasonable rules regarding such dividend groupings as an aid to the effectuation and enforcement of the Insurance Code. Such rules shall have as their purpose the prevention of misrepresentation, unfair discrimination and other unfair trade practices, and may among other things require that:

(a) Such a grouping comprises substantially homogeneous risks.

(b) The organization under the auspices of which such a grouping is made has been in existence for at least two years and was formed for purposes other than that of obtaining insurance.

(d) Information regarding eligibility for participation in the grouping and the system for allocation of dividends among the participants be filed with the director.

(3) An insurer shall not unfairly discriminate in the allocation of dividends among the participants in such a dividend grouping.

[(a)] (4) The system for allocation of dividends among the participants may provide for allocation at a fixed percentage of premiums, or may provide for variations in the percentage of premiums paid as dividends, or may provide for other variations in determining the amounts of dividends allocated to participants. The variations may be based on loss or expense factors or on other reasonable considerations, such as risk size, risk location or industry or trade hazard classification, that have a probable effect on losses or expenses.

[(b)] (5) Failure to apply in a consistent manner the dividend allocation system specified in an insurer's dividend declaration shall be prima facie evidence of unfair discrimination.

NOTE: Corrects structure of statute.

SECTION 231. ORS 746.265 is amended to read:

746.265. (1) Subject to subsection (2) of this section, when an individual applies for a policy or a renewal of a policy of casualty insurance providing automobile liability coverage, uninsured motorist coverage, automobile medical payments coverage or automobile physical damage coverage on an individually owned passenger vehicle including pickup and panel trucks and station wagons, the insurer may consider the abstract of the nonemployment driving record of the individual under ORS 802.220 [for the following purposes]:

(a) For the purpose of determining whether to issue or renew the individual's policy.

(b) For the purpose of determining the rates of the individual's policy.

(2) For the purposes specified in subsection (1) of this section, an insurer issuing or renewing a policy described in subsection (1) of this section shall not consider any:

(a) Accident or conviction for violation of motor vehicle laws that occurred more than three years immediately preceding the application for the policy or renewal of the policy;

(b) Diversion agreements under ORS 813.220 that were entered into more than three years immediately preceding the application for the policy or renewal of the policy; or

(c) Suspension of driving privileges pursuant to ORS 809.280 (7) or (9) if the suspension is based on a nondriving offense.

NOTE: Deletes duplicative language in (1).

SECTION 232. ORS 758.400 is amended to read:

758.400. As used in ORS 758.015 and 758.400 to 758.475 unless the context requires otherwise:

(1) "Allocated territory" means an area with boundaries established by a contract between persons furnishing a similar utility service and approved by the Public Utility Commission or established by an order of the commission approving an application for the allocation of territory.

(2) "Person" includes individuals, firms, partnerships, corporations, associations, cooperatives and municipalities, or their agent, lessee, trustee or referee.

(3) "Utility service" means service provided by any equipment, plant or facility for the distribution of electricity to users [for] or the distribution of natural or manufactured gas to consumers through a connected and interrelated distribution system. "Utility service" does not include service provided through or by the use of any equipment, plant or facilities for the production or transmission of electricity or gas which pass through or over but are not used to provide service in or do not terminate in an area allocated to another person providing a similar utility service.

NOTE: Corrects word choice in (3).

SECTION 233. ORS 801.258 is amended to read:

801.258. "Electric assisted bicycle" means a vehicle that [meets all of the following requirements]:

(1) Is designed to be operated on the ground on wheels[.];

(2) Has a seat or saddle for use of the rider[.];

(3) Is designed to travel with not more than three wheels in contact with the ground[.];

(4) Has both fully operative pedals for human propulsion and an electric motor[.]; and

(5) Is equipped with an electric motor that:

(a) Has a power output of not more than 1,000 watts; and

(b) Is incapable of propelling the vehicle at a speed of greater than 20 miles per hour on level ground.

NOTE: Corrects syntax and structure of statute.

SECTION 234. ORS 802.170 is amended to read:

802.170. If any person pays the Department of Transportation any fee or tax with a bank check and the check is returned to the department as uncollectible, or if a person pays the department with a credit or debit card and for any reason the department does not get payment from the issuer of the card, the department may charge the person the fee for [uncollectible] dishonored checks or other [tender of payment under ORS 82.300] orders for the payment of money under ORS 30.701 (5). If the person does not pay the fee charged under this section, the department may do all of the following:

(1) Suspend or cancel, or refuse to issue or renew, any vehicle registration or title, vehicle permit, driver license or driver permit in payment of which the check or other [tender of payment] order for the payment of money was presented.

(2) Authorize any department employee or police officer to seize and recover any evidence of the registration, title, license or permit suspended or canceled.

(3) If evidence of the suspended or canceled registration, title, license or permit is not recovered, refuse to conduct any further transactions with the person until the fee charged under this section is paid.

NOTE: Deletes reference to repealed statute; corrects terminology and punctuation.

SECTION 235. ORS 802.600 is amended to read:

802.600. (1) After completion of the study required by section 3, chapter 583, Oregon Laws 1997, and the report to the Joint Legislative Committee on Information Management and Technology as required by section 4, chapter 583, Oregon Laws 1997, the Department of Transportation may enter into an agreement with any person who is not an employee of the department, including but not limited to an integrator, enabling the person to transact on behalf of the department the functions of the department specified in section 3, chapter 583, Oregon Laws 1997.

(2) An agreement described in subsection (1) of this section may be in any form and may contain any provisions that the department determines to be in the best interests of the public and convenient for the department, including but not necessarily limited to provisions that allow the department to:

(a) Ensure product quality control.

(b) Audit activities of the person entering into the agreement to ensure compliance with the agreement.

(3) A person authorized to transact business for the department under this section, including but not limited to a person who transacts business under contract with an integrator, may charge a fee for the services provided. Fees authorized under this subsection are in addition to any charges or fees that the department is authorized by statute to collect for the transaction.

(4)(a) The department may adopt such rules as are necessary to carry out the provisions of this section, including but not limited to rules that:

(A) Specify criteria for eligibility of a person to enter into an agreement with the department under this section.

(B) Specify the manner in which fees authorized by this section will be collected and establish any notification the person is required to give the public about the fees.

(C) Require a bond in an amount determined by the department from a person acting under an agreement described in this section.

(D) Prohibit disclosure of personal information from driver or vehicle records except in accordance with applicable laws.

(b) The department may not adopt rules establishing the amount of a fee to be charged by a person acting under this section.

(c) Rules adopted under this subsection shall be developed in consultation with persons who might enter into agreements with the department under this section, including but not limited to integrators and vehicle dealers.

(5) As used in this section and section 3, chapter 583, Oregon Laws 1997, "integrator" means a person who enters into a contract with the Department of Transportation:

(a) To provide information and supplies to a person who transacts business for the department under an agreement described in this section; and

(b) To collect moneys due from persons who transact the business and remit the moneys to the department.

NOTE: Corrects syntax in (1) and (5).

SECTION 236. ORS 803.217 is added to and made a part of ORS chapter 803.

NOTE: Adds statute to appropriate series.

SECTION 237. ORS 805.390 is amended to read:

805.390. This section establishes the uses allowed for vehicles registered under ORS 805.300, and for vehicles authorized by ORS 805.400 to be registered under ORS 826.009 or 826.011. Vehicles with farm vehicle registration or farm vehicle proportional registration may only be used for purposes described in this section. Uses permitted on a farm under this section are also permitted on one or more farms, orchards or ranches of the qualifying farmer. Violation of the limits established under this section is subject to penalty under ORS 805.350. The following describes the uses permitted vehicles registered under ORS 805.300 and for vehicles authorized by ORS 805.400 to be registered under ORS 826.009 or 826.011:

(1) The vehicles may be used in transporting the farmer's own agricultural commodities, agricultural products or livestock that were originally grown or raised by the farmer on the farmer's own farm. This subsection includes products and by-products of commodities or livestock that were packed, processed or manufactured by or for the farm operation so long as the farmer retains ownership of the products but does not include products that have been transformed into a finished state. For purposes of this subsection, products have not been transformed into a finished state if the products:

(a) Will be used in agricultural production;

(b) Will be used in the production of another product;

(d) Are of a type or kind ordinarily requiring further processing prior to sale to the ultimate consumer.

(2) The vehicles may be used in any transportation that is incidental to the regular operation of the farmer's farm.

(3) The vehicles may be used to transport supplies, equipment or materials to the farmer's farm that are consumed or used on the farm.

(4) The vehicles may be used in transporting forest products to the farmer's own farm or transporting for any purpose forest products originating on the farmer's farm. The only forest products included under this subsection are forest materials originating on a farm or as an incident to the regular operation of a farm.

(5) The vehicles may be used in the transportation of products, supplies, equipment or materials for another farmer who qualifies under ORS 805.310 on an exchange of labor basis if such products, supplies, equipment or materials are to be used or consumed on such farm or are directly related to the operation of the farm.

(6) The vehicles may be operated for the personal use of the farmer, any member of the farmer's immediate family or any person in the farmer's employ.

(7) The vehicles shall not be used to transport any of the following:

(a) Piling.

(b) Poles over 30 inches in circumference at the large end.

(c) Except as otherwise provided in this paragraph, logs over eight feet six inches in length. A vehicle may be used to transport logs over eight feet six inches but not over 16 feet 6 inches in length if the vehicle has a loaded weight of 16,000 pounds or less.

(8) The vehicles may be partially operated under a permit issued by the Department of Transportation under ORS 825.102, as described in ORS 825.024. When operated under a permit issued under ORS 825.102, the vehicles are subject to ORS chapter 825.

(9) The vehicles may be partially operated for hire as permitted in ORS 825.024 (1)(c) and (d).

(10) The vehicles may be rented or borrowed by a farmer to haul the farmer's own products if the farmer would qualify for farm vehicle registration for vehicles of the type and size rented or borrowed.

(11) The vehicles may be used in transporting straw, whether or not the straw was grown on the farmer's own farm, if the transporting farmer is the one who bales the straw.

NOTE: Corrects syntax in (5).

SECTION 238. ORS 806.090 is amended to read:

806.090. A bond used to comply with financial responsibility requirements under ORS 806.060 must meet all of the following requirements:

(1) The bond must be in the amount required by ORS 806.060.

(2) The bond must be approved by a judge of a court of record in this state.

(3) The bond must contain a provision that it cannot be canceled except upon the giving of 10 days prior written notice to the Department of Transportation.

(4) The bond must be provided by either of the following:

(a) A surety company.

(b) Two persons who are residents of Oregon and who each own real property in this state having together equities at least of the value required for the bond under ORS 806.060.

(5) If the bond is provided by real property owners in this state, the bond must contain a schedule of the real property owned by each of the sureties that will be used to meet the financial responsibility requirements of this state.

(6) The bond must be conditioned [for paying in] to pay, on behalf of the principal, the limits of financial responsibility requirements.

(7) [Bonds] The bond must be conditioned to pay, on behalf of the principal, judgments of the type described in ORS 806.040 and to be subject to action under ORS 806.100.

(8) [Bonds are] The bond is subject to any rules adopted by the department relating to [the] such bonds.

(9) [Bonds are] The bond is subject to payment limits under the schedule of payments under ORS 806.070.

NOTE: Corrects syntax.

SECTION 239. ORS 806.270 is amended to read:

806.270. (1) A certificate of insurance that is used to comply with future responsibility filing requirements under ORS 806.240 is subject to all of the following:

[(1)] (a) Except as provided by ORS 806.280, the certificate must be issued by an insurance carrier doing business in this state.

[(2)] (b) The certificate must show that the person required to make the future responsibility filing is covered by insurance that provides minimum coverage necessary for payment of the schedule of payments under ORS 806.070.

[(3)] (c) The certificate must show that the person required to make the future responsibility filing is either:

[(a)] (A) Insured by a policy meeting the requirements under ORS 806.080 that also covers all other persons who, with the consent of the insured, use the vehicles owned by the person making the filing; or

[(b)] (B) Insured against loss arising from liabilities imposed by law for damages arising out of the ownership, operation, use or maintenance of motor vehicles not owned by the person required to make the filing.

[(4)] (d) The certificate must:

[(a)] (A) Be dated as of the date of the motor vehicle policy for which it is given;

[(b)] (B) Contain the policy number; and

[(c)] (C) Describe all vehicles covered by the policy[,] unless [such] the policy is issued with respect to all vehicles operated by the insured.

[(5)] (e) The certificate must provide that the insurers will give the Department of Transportation notice of any cancellation of the policy within 10 days after the effective date of the cancellation or termination. The notice requirement under this [subsection] paragraph does not apply where the insurance is terminated under ORS 806.290.

[(6)] (2) The department shall not accept any certificate or certificates unless all vehicles [are covered] that are registered in the name of or operated by the person furnishing the proof are covered, except vehicles that are in storage and for which the current registration plates and cards have been surrendered to the department.

[(7)] (3) A person who causes a certificate or certificates to be tendered for the future responsibility requirements must file with the department a statement that the certificate or certificates cover all vehicles registered in the person's name. The department may rely upon the accuracy of the information in a statement as to the extent of the coverage unless and until the department has reason to believe that the information is erroneous.

[(8)] (4) The requirements under this section may be fulfilled by the policies of one or more insurance carriers.

NOTE: Corrects structure of statute; corrects syntax.

SECTION 240. ORS 810.180 is amended to read:

810.180. This section grants authority to establish speeds for operation of a vehicle upon a highway and speeds that are different from those established under ORS 811.105 as evidence of violation of the basic speed rule under ORS 811.100. Speed limits established under this section are subject to the conditions described in the subsection granting authority to establish the speed limit, as follows:

(1) The Department of Transportation may establish a maximum speed limit that is applicable to the operation of all vehicles upon all highways in this state unless a different maximum speed limit for certain vehicles or on certain highways is specifically provided by law. A speed limit established under this subsection is subject to all of the following:

(a) A speed limit established by this section shall be known as the federal maximum speed limit.

(b) The department may establish a speed limit under this subsection when the Oregon Transportation Commission determines that there is a critical need to conserve fuel because of current or imminent fuel shortages and that limiting the maximum speeds of vehicles will significantly conserve motor fuel or when the department determines that establishing a speed limit under this subsection is a necessary condition to the receipt of federal highway funds.

(d) A maximum speed limit established under this subsection is subject to ORS 811.108 regarding relationships among certain provisions of law governing speed.

(e) A maximum speed established under this subsection may not be raised by any authority granted under any other subsection in this section.

(f) Violation of a speed limit established under this subsection is punishable as provided under ORS 811.110.

(2) The department may override the maximum speed limit established for ocean shores under ORS 811.120 and establish a maximum speed limit of less than 25 miles per hour on any specified section of ocean shore if the department determines that the maximum speed limit established under ORS 811.120 is greater than is reasonable or safe under the conditions that exist with respect to that part of the ocean shore. The authority granted under this subsection is subject to all of the following:

(a) The department may make the determination required under this subsection only on the basis of an investigation.

(b) A speed limit established under this subsection is effective when posted upon appropriate fixed or variable signs.

(c) A speed limit established under this subsection does not authorize speeds higher than those required for compliance with the basic speed rule under ORS 811.100.

(d) Penalties for violation of a speed limit established under this subsection are as provided in ORS 811.120.

(3) The department may override the maximum speed limit established for rural interstate highways under ORS 811.112 on any specified section of rural interstate highway if the department determines that the maximum speed limit established under ORS 811.112 is greater than is reasonable or safe with respect to the conditions that exist with respect to that part of the rural interstate highway.

(4) Each road authority, with respect to its own highways or streets may reduce designated or maximum speed limits of vehicles as necessary, in its judgment, to protect any highway or section thereof from being unduly damaged or to protect the safety of the public when hazards are created by road conditions. The following apply to the authority granted under this subsection:

(a) Speeds may be reduced only for a specific period of time or temporarily for a specific class or type of vehicle that is causing an identified damage to highways.

(b) This subsection shall not be used to establish any permanent speed reduction. If a permanent speed reduction is required, it may be imposed only under the procedures established under this section for permanently establishing a speed reduction.

(c) The authority granted by this subsection may be exercised only if the ordinance or order, as appropriate, that imposes the speed reduction specifies the hazard or damage and is effective only for a specified time that corresponds to the hazard or damage identified.

(d) The operation of a vehicle in excess of any speed designated under this subsection is prima facie evidence of violation of the basic speed rule under ORS 811.100.

(e) Any restrictions or limitations imposed under this subsection shall be imposed by a proper order. A sign giving notice of the restrictions or limitations contained in the order shall be maintained in a conspicuous manner and placed at each end of the highway or section of highway affected thereby, and at such other places as may be necessary to inform the public. Such restrictions or limitations shall be effective when the signs giving notice thereof are erected, and no person shall operate any vehicle or combination of vehicles in violation thereof.

(5) Each road authority, with respect to its own highways or streets, may designate speeds for vehicles upon any portion of the highway or street upon which temporary conditions constituting a danger to the public exist or above, below or upon which construction or maintenance work is being carried on so close to the roadway as to be a danger to passing traffic or to be endangered by passing traffic. The following apply to this subsection:

(a) The operation of a vehicle in excess of any speed designated under this subsection is prima facie evidence of violation of the basic speed rule under ORS 811.100.

(b) Any restrictions or limitations imposed under this subsection shall be imposed by a proper order. A sign giving notice of the restrictions or limitations contained in the order shall be maintained in a conspicuous manner and placed at each end of the highway or section of highway affected thereby, and at such other places as may be necessary to inform the public. Such restrictions or limitations shall be effective when the signs giving notice thereof are erected, and no person shall operate any vehicle or combination of vehicles in violation thereof.

(6) Road authorities may regulate the speed of vehicles in parks under their jurisdiction. A road authority regulating the speed of vehicles under this subsection shall place and maintain signs at all park entrances to give notice of any special speed regulation.

(7) The department may designate a speed on any state highway or section thereof that is different from a speed designated as prima facie evidence under ORS 811.105 of violation of the basic speed rule under ORS 811.100 if the department determines that the speed designated under ORS 811.105 is greater or less than is reasonable or safe under conditions the department finds to exist. The authority granted under this subsection is subject to all of the following:

(a) The department shall designate under this subsection only speeds that the department determines are reasonable and safe on the highway under the conditions the department finds to exist.

(b) The department may exercise the authority under this subsection only on state highways that are outside the corporate limits of any city.

(c) The department shall exercise authority granted under this subsection only if such action is based upon an engineering and traffic investigation.

(d) Penalties for violation of a speed designated under this subsection are provided under ORS 811.100 and 811.105.

(e) A speed designated under this subsection is effective when appropriate signs giving notice of the speed limit are erected upon the highway where the limit is imposed.

(8) The department, by rule, may designate reasonable and safe speeds on highways or portions of highways. The authority granted under this subsection includes, but is not limited to, authority to establish different speeds for different kinds or classes of vehicles as the department determines reasonable and safe. The authority granted under this subsection is subject to all of the following:

(a) The department, by rule, may delegate its authority under this subsection with respect to highways that are low volume or not hard surfaced to a city or county with jurisdiction over the highway. The department shall delegate authority under this paragraph only if it determines that the city or county will exercise the authority according to criteria adopted by the department.

(b) Penalties for violation of a speed established under this subsection are provided under ORS 811.100 and 811.105.

(d) A speed established under this subsection is effective when appropriate signs giving notice thereof are erected upon the highway or section of highway. All signs erected under this paragraph shall comply with ORS 810.200.

(e) The expense of erecting any sign under this subsection shall be borne by the road authority having jurisdiction over the highway.

(f) The department, by rule, may designate a speed on a highway or section thereof after a request is received from the road authority for a highway. The application required under this subsection must state a recommended speed. The department may determine the speed to designate under its authority based on an engineering and traffic investigation. The department:

(A) May change the existing speed on the highway if the department determines that the designated speed is greater or less than reasonable or safe under conditions the department finds to exist.

(B) Shall not make a final determination to change a speed under this subsection without providing the affected road jurisdiction due notice and opportunity for a hearing. The department shall give written notice of its determination concerning a designated speed under this subsection.

(g) A road authority may file written objections to any speed that is established by the department under this subsection and that affects the road authority.

(9) The department may establish an emergency speed on any highway under the jurisdiction of the department that is different from the existing speed on the highway. The authority granted under this subsection is subject to all of the following:

(a) Penalties for violation of a speed established under this subsection are provided under ORS 811.100 and 811.105.

(b) A speed established under this subsection is effective when appropriate signs giving notice thereof are erected upon the highway or section of highway. All signs erected under this subsection shall comply with ORS 810.200.

(c) The expense of erecting any sign under this subsection shall be borne by the road authority having jurisdiction over the highway.

(d) A speed established under this subsection may be effective for not more than 120 days.

(e) If the department establishes an emergency temporary speed under this subsection, [it] the department shall, within 120 days after the speed becomes effective, determine whether the department should permanently change the speed [within 120 days after the speed becomes effective]. The department shall use authority otherwise granted under this section if the department determines [to establish] that the speed should be established permanently.

(f) The department may establish a speed under this subsection only upon the application of the road authority for the highway.

(10) The department may supersede a maximum speed limit established for urban areas under ORS 811.123 and designate a speed greater or less than one specified in ORS 811.123 on any specified section of a highway in an urban area if the department determines that a maximum speed limit established under ORS 811.123 is not reasonable or safe with respect to that part of the highway. A designated speed established under this subsection is effective when appropriate signs giving notice thereof are erected on the affected section of highway.

NOTE: Tweaks syntax in (9)(e).

SECTION 241. ORS 810.365 is amended to read:

810.365. If a vehicle owner cited under ORS 810.425 to appear in a circuit or justice court upon an alleged parking offense fails to appear or to forfeit bail on or before the date and time stated on the citation, the court and the Department of Transportation may take such actions as are otherwise authorized by law under the [Motor] Oregon Vehicle Code in the case of a failure to appear, except that in no case may a warrant of arrest be issued nor a criminal prosecution for failure to appear be commenced unless the citing or prosecuting authority, more than 10 days prior thereto, has sent a letter to the registered owner at the address shown upon the records of the department advising such owner of the charge pending and informing the owner that the owner may be subject to arrest if the owner does not appear in the court within 10 days to answer the charge. The letter must be sent by certified mail, restricted delivery, return receipt requested. A warrant of arrest may not be issued, nor a criminal prosecution for failure to appear be commenced if such a letter has not been sent or if the owner appears in court to answer the charge within 10 days after receiving the letter.

NOTE: Corrects official title.

SECTION 242. ORS 813.225 is added to and made a part of ORS 813.200 to 813.270.

NOTE: Adds statute to appropriate series.

SECTION 243. ORS 815.107 is amended to read:

815.107. A vehicle of special interest that is a street rod is exempt from vehicle equipment requirements under ORS 815.075, 815.105, 815.120, 815.135, 815.175, 815.190, 815.210, 815.215, 815.230, 815.250, 815.255 and 816.340 if all of the following apply:

(1) The vehicle is equipped with original manufacturer's equipment and accessories, or their equivalent, except that:

(a) The drive train, suspension system or brake system on the original vehicle may be replaced with a drive train, suspension system or brake system that:

(A) Conforms to the requirements of ORS 815.125, if applicable;

(B) Conforms to applicable standards established by the Department of Transportation by rule under ORS 815.030; and

(b) The dimensions of the original body of the vehicle may be altered if the altered body conforms to the standards established by the department by rule under ORS 815.030;

(d) The exhaust system may be modified to discharge exhaust along the side of the vehicle if the exhaust is discharged away from the vehicle and from a location to the rear of the rear edge of the front door of the vehicle.

(2) The vehicle is maintained in safe operating condition.

NOTE: Corrects punctuation in (1)(a)(C).

SECTION 244. ORS 818.210 is amended to read:

818.210. Except as provided under ORS 818.220, a road authority shall not issue a variance permit under ORS 818.200 for any vehicle or load that can readily or reasonably be dismantled or disassembled. The limit under this section does not apply to the following:

(1) Any single vehicle engaged in the transportation of peeler bolts, blocks, cores, railroad ties, logs or poles loaded crosswise of the vehicle, having an overall width of load thereon not in excess of eight and one-half feet.

(2) Combinations of vehicles consisting of not more than a motor truck with a registration weight of more than 8,000 pounds and two self-supporting trailers or a truck tractor and semitrailer drawing two self-supporting trailers or semitrailers mounted on dollies equipped with fifth wheels having an overall length not in excess of 105 feet. The self-supporting trailers or semitrailers must be reasonably uniform in length.

(3) Vehicles or combinations of vehicles having a length in excess of that permitted under ORS 818.060 or 818.090.

(4) Any self-loading log truck. In the granting of permits to vehicles described in this subsection, a granting authority shall observe and be governed by the following maximum loaded weights:

(a) The loaded weight of any individual wheel, axle or tandem axles of any vehicle or combination of vehicles shall not exceed the maximum loaded wheel, axle and tandem axle weights set forth in Tables I and II of ORS 818.010.

(b) The loaded weight of any group of axles of any vehicle or combination of vehicles, when the distance between the first and last axles of any group of axles is 18 feet or less, and the loaded weight of any vehicle when the distance between the first and last axles of all of the axles of the vehicle is 18 feet or less, shall not exceed that set forth in the following table of weights, or the sum of the permissible axle or tandem axle weights, whichever is less:

___________________________________________________________________

Distance in feet between Maximum loaded weight,

the first and last axles in pounds, of any

of any group of axles of group of axles of any

any vehicle or combination vehicle or combination

of vehicles, or between the of vehicles, or

first and last axles of all of any vehicle:

the axles of any vehicle:

6 34,000

7 34,000

8 34,000

9 39,000

10 40,000

11 40,000

12 40,000

13 40,000

14 43,200

15 44,000

16 44,800

17 45,600

18 50,000

___________________________________________________________________

(c) The loaded weight of any vehicle or combination of vehicles, where the distance between the first and last axles of the vehicle or combination of vehicles is more than 18 feet, shall not exceed that set forth in the following table of weights, or the sum of the permissible axle, tandem axle or group of axles weights, whichever is less:

___________________________________________________________________

Distance in feet Maximum loaded weight,

between the first and in pounds, of any

last axles of all the vehicle or combination

axles of a vehicle or of vehicles: 5 axles

combination of vehicles: or more

19 50,000

20 50,000

21 50,000

22 50,000

23 50,400

24 51,200

25 55,250

26 56,100

27 56,950

28 57,800

29 58,650

30 59,500

31 60,350

32 61,200

33 62,050

34 62,900

35 63,750

36 64,600

37 65,450

38 66,300

39 68,000

40 70,000 73,000

41 72,000 73,500

42 73,280 74,500

43 73,280 75,000

44 73,280 75,500

45 73,280 76,000

46 73,280 77,000

47 73,280 77,500

48 73,280 78,000

49 73,280 78,500

50 73,280 79,500

51 73,280 80,000

52 73,600 80,000

53 74,400 80,000

54 75,200 80,000

55 or over 76,000 80,000

___________________________________________________________________

(5) Any vehicle, combination of vehicles, load, article, property, machine or thing that:

(a) Is used in the construction, maintenance or repair of public highways; and

(b) Is either not being used by the Federal Government, State of Oregon or any county or incorporated city or not being used at the immediate location or site.

(6) Combinations of vehicles having a combined loaded weight in excess of that authorized under Table III of ORS 818.010.

(7) A vehicle engaged in the transportation of secondary wood products, which may be issued a permit for an overlength load. As used in this subsection, "secondary wood products" means laminated wood products and wooden I-beams. A vehicle engaged in the transportation of secondary wood products may also transport a divisible load of secondary wood products that otherwise exceeds allowable load length limits if:

(a) The load contains a permitted, nondivisible secondary wood product that exceeds the length allowed in ORS 818.080 or 818.100;

(b) The divisible load does not exceed the length allowed for the nondivisible wood product in the permit; and

(c) Not more than 49 percent of each divisible load item, by length or weight, authorized by this subsection overhangs the vehicle transporting the load.

(8) A vehicle engaged in the transportation of lumber, veneer or plywood, which may be issued a permit for an overwidth load if the width of the divisible load does not exceed nine feet.

(9) A vehicle transporting an overheight marine container to or from a marine port facility.

(10) A vehicle or combination of vehicles engaged in hauling grass seed straw, which may be issued a permit to allow the load to be up to 14 feet 4 inches high. A permit issued under this [section] subsection shall be valid for one year and shall specify the routes over which the overheight load may be hauled.

(11) A vehicle or combination of vehicles that has a variance permit and that can carry items related to the already permitted load without increasing the size of the vehicle needed to carry the item requiring the variance permit.

(12) A vehicle engaged in hauling poplar logs or the processing residual from the logs, which may be issued an annual overwidth permit for a vehicle and load with a combined width of not more than 12 feet. The annual permit shall allow movement of the vehicle only on Patterson Ferry Road and Frontage Road in Morrow County and only for a distance of 5,000 feet or less.

NOTE: Corrects internal reference in (10).

SECTION 245. ORS 821.220 is amended to read:

821.220. (1) A person commits the offense of operating an improperly equipped all-terrain vehicle if the person operates any all-terrain vehicle without the following equipment:

(a) An adequate braking device that may be operated either by hand or foot.

(b) An adequate and operating muffling device that shall be maintained in good working order and in constant operation and shall effectively blend the exhaust and motor noise in such a manner so as to comply with all applicable noise emission standards established by the Department of Environmental Quality.

(2) The Department of Environmental Quality shall establish procedures for testing of noise levels consistent with this section.

(3) All-terrain vehicles used in organized racing events in an area designated for that purpose shall comply with the [department's] motor sports vehicles and facilities regulations of the Department of Environmental Quality.

(4) In addition to other penalties provided by this section, the owner or operator of an all-terrain vehicle may be liable as provided under ORS 821.310.

(5) The offense described in this section, operating an improperly equipped all-terrain vehicle, is a Class C traffic infraction.

NOTE: Clarifies department title in (3).

SECTION 246. ORS 824.102 is amended to read:

824.102. The provisions of ORS 824.102 to 824.110 [and 824.992 (6)] shall apply to all cabooses except those used in terminal service or in road service for a distance not to exceed three miles, and shall not apply to logging railways.

NOTE: Deletes incorrect ORS reference.

SECTION 247. ORS 824.106 is amended to read:

824.106. A caboose shall not be placed in service unless it is in compliance with all of the provisions of ORS 824.102 to 824.110 [and 824.992 (6)] relating to required equipment and standards of maintenance. In the event a failure of required equipment or standards of maintenance occurs after a caboose has departed from a terminal and a member of the train crew has boarded the caboose, the railroad operating the caboose shall not be deemed to be in violation of ORS 824.102 to 824.110 [and 824.992 (6)] if such failure of equipment or standard of maintenance is corrected at the first point at which maintenance supplies are available or, in the case of repairs, the first point at which repair facilities are available and repairs can reasonably be made or the defective equipment replaced.

NOTE: Deletes incorrect ORS references.

SECTION 248. ORS 824.110 is amended to read:

824.110. The Department of Transportation shall regulate and enforce all sections of ORS 824.102 to 824.110 [and 824.992 (6)] and shall promulgate all rules necessary for the enforcement of ORS 824.102 to 824.110 [and 824.992 (6)].

NOTE: Deletes incorrect ORS references.

SECTION 249. ORS 825.137 is amended to read:

825.137. (1) Certificates and permits when issued shall be valid until suspended or revoked when the carrier is found by the Department of Transportation to be in violation of this chapter or ORS chapter 818. A variance permit issued under ORS chapter 818 shall be valid for the length of time for which it is issued unless prior to that time the permit is suspended or revoked by the Department of Transportation for violation of this chapter or ORS chapter 818.

(2) Certificates or permits, or variance permits issued pursuant to ORS chapter 818, may be suspended or canceled by the department based upon the department's own motion after notice and hearing, when the certificate or permit holder:

(a) Or agents or employees of the holder have repeatedly violated this chapter or other highway or motor laws of this state. In applying this paragraph the department may consider violations by agents or employees of the holder that occurred prior to the time they became agents or employees of the holder, but only if the agent or employee has a substantial interest or control, directly or indirectly, in or over the operation of the holder.

(b) Has repeatedly violated or avoided any order or rule of the department.

(c) Is a transporter of persons or household goods and has repeatedly made unlawful rebates or repeatedly underestimated transportation charges to clients.

(d) Has repeatedly refused or has repeatedly failed, after being requested to do so, to furnish service authorized by certificate. The department in such cases may also, in the discretion of the department, restrict the certificate to conform with operations conducted.

(e) Has not, except for reasons beyond the control of the holder, transported persons or household goods authorized by the certificate for a period exceeding 180 consecutive days immediately preceding the filing of the complaint in the proceeding. The department in these cases may also, in the discretion of the department, restrict the certificate to conform with operations performed that were required by the public convenience and necessity.

(f) Has not, except for reasons beyond the control of the holder, transported property or persons authorized by the permit for a period exceeding one year immediately preceding the filing of the complaint in the proceeding.

(g) Has refused, or has failed, within the time provided, to file the annual report required by ORS 825.320 or has failed or refused to maintain records required by the department or to produce such records for examination within the time set by the department.

(h) Has failed to appear for hearing after notice that the certificate or permit is under investigation.

(i) Has filed with the department an application which is false with regard to the ownership, possession or control of the equipment being used or the operation being conducted.

(3) The department shall not suspend or revoke a certificate or permit of a vehicle or person described in ORS 825.020 unless the person or vehicle is in violation of this section and ORS 825.139, 825.141, 825.160, 825.164, 825.166, 825.168, 825.210 (1) and (3), 825.212, 825.450, 825.454, 825.470, 825.472, 825.474, 825.476, 825.480, 825.484, 825.488, 825.490, 825.492, 825.494, 825.496, 825.498, 825.504, 825.506, 825.507, 825.508 or 825.515.

NOTE: Inserts comma in (2).

SECTION 250. ORS 830.005 is amended to read:

830.005. As used in this chapter, unless the context requires otherwise:

(1) "Board" means the State Marine Board.

(2) "Boat" means every description of watercraft, including a seaplane on the water and not in flight, used or capable of being used as a means of transportation on the water, but does not include boathouses, floating homes, air mattresses, beach and water toys or single inner tubes.

(3) "In flight" means from the moment a seaplane starts its takeoff run until the end of a normal power-off landing run.

(4) "Length" means the length of a boat measured from end to end over the deck excluding sheer.

(5) "Motorboat" means any boat propelled in whole or in part by machinery, including boats temporarily equipped with detachable motors.

(6) "Navigable waters of the United States" means those waters of the United States, including the territorial seas adjacent thereto, the general character of which is navigable, and that, either by themselves or by uniting with other waters, form a continuous waterway on which boats or vessels may navigate or travel between two or more states, or to and from foreign nations.

[(6)] (7) "Operate" means to navigate or otherwise use a boat.

[(7)] (8) "Operator of a boat livery" means any person who is engaged wholly or in part in the business of chartering or renting boats to other persons.

[(8)] (9) "Passenger" means every person on board a boat who is not the master, operator, crew member or other person engaged in any capacity in the business of the boat.

(10) "State waters" means those waters entirely within the confines of this state that have not been declared navigable waters of the United States.

[(9)] (11) "Waters of this state" means all waters within the territorial limits of this state, the marginal sea adjacent to this state and the high seas when navigated as part of a journey or ride to or from the shore of this state.

[(10) "State waters" means those waters entirely within the confines of this state which have not been declared navigable waters of the United States.]

[(11) "Navigable waters of the United States" means those waters of the United States, including the territorial seas adjacent thereto, the general character of which is navigable, and which, either by themselves or by uniting with other waters, form a continuous waterway on which boats or vessels may navigate or travel between two or more states, or to and from foreign nations.]

NOTE: Conforms statute structure to legislative form and style.

SECTION 251. ORS 830.700 is amended to read:

830.700. As used in ORS 830.060 to 830.145, 830.700 to 830.715, 830.725, 830.730, 830.770, 830.780, 830.785, 830.795 to 830.820 and 830.830 to 830.870, unless the context requires otherwise:

[(1) "Board" means the State Marine Board.]

[(2)] (1) "Boat" means every description of watercraft used or capable of being used as a means of transportation on the water, but does not include aircraft equipped to land on water, boathouses, floating homes, air mattresses, beach and water toys or single inner tubes.

[(3)] (2) "Boathouse" means a covered structure on floats or piles used for the protected moorage of boats.

[(4)] (3) "Dealer" means a person who engages wholly or in part in the business of buying, selling or exchanging boats, floating homes or boathouses, either outright or on conditional sale, bailment lease, chattel mortgage or otherwise.

[(5)] (4) "Floating home" means a moored structure that is secured to a pier or pilings and is used primarily as a domicile and not as a boat.

[(6) "Length" means the length of a boat measured from end to end over the deck excluding sheer.]

[(7)] (5) "Operate" means to navigate or otherwise use a boat on water.

[(8)] (6) "Owner" means a person or persons who have a property interest other than a security interest in a boat, floating home or boathouse and the right of use or possession of the boat, floating house or boathouse, but does not include a lessee.

[(9)] (7) "Ownership" means a property interest other than a security interest.

[(10)] (8) "Security interest" means an interest reserved or created by agreement which secures payment or performance of an obligation as more particularly defined by ORS 71.2010 (37).

[(11)] (9) "State of principal use" means the state on whose waters a boat is used or to be used during most of a calendar year.

[(12) "Waters of this state" means all waters within the territorial limits of this state, the marginal sea adjacent to this state and the high seas when navigated as a part of a journey or ride to or from the shore of this state.]

NOTE: Deletes duplicative definitions.

SECTION 252. Section 16, chapter 8, Oregon Laws 1997, is amended to read:

Sec. 16. (1) Section 2, chapter 8, Oregon Laws 1997, [of this Act] is repealed if either of the following occurs:

(a) Any salmonid species is listed by the National Marine Fisheries Service as threatened or endangered pursuant to the federal Endangered Species Act (16 U.S.C. 1531) in any coastal [evolutionary] evolutionarily significant unit located exclusively in the State of Oregon; or

(b) Any salmonid species is listed by the National Marine Fisheries Service as threatened or endangered pursuant to the federal Endangered Species Act (16 U.S.C. 1531) in any coastal [evolutionary] evolutionarily significant unit that is shared with another state, and:

(A) The National Marine Fisheries Service initiates enforcement action against forestry operations lawfully conducted in compliance with the Oregon Forest Practices Act; or

(B) The National Marine Fisheries Service promulgates a final regulation under section 4(d) of the federal Endangered Species Act, 16 U.S.C. 1533(d), that directly imposes additional requirements on forest practices beyond those required by the Oregon Forest Practices Act.

(2) The repeal of section 2, chapter 8, Oregon Laws 1997, [of this Act] pursuant to subsection (1) of this section shall become operative on the first day of the first month following a finding and notice by the Governor to the Department of Revenue that the event described in either subsection (1)(a) or (b) of this section has occurred.

(3) There shall not be any refund of taxes imposed under section 2, chapter 8, Oregon Laws 1997, [of this Act] prior to the repeal of the tax pursuant to this section.

NOTE: Corrects word choice.

SECTION 253. Section 1, chapter 374, Oregon Laws 1997, is amended to read:

Sec. 1. [This Act] Sections 1 to 6, chapter 374, Oregon Laws 1997, shall be known as the Oregon Self-Service Storage Facility Act.

NOTE: Corrects internal reference.

SECTION 254. Section 3, chapter 643, Oregon Laws 1997, is amended to read:

Sec. 3. (1) Except as otherwise provided by law, the provisions of ORS chapters 240, 276, 279, 282, 283, 291, 292 and 293 do not apply to a board. A board is subject to all other statutes governing a state agency that do not conflict with [this Act] chapter 643, Oregon Laws 1997, including the tort liability provisions of ORS [chapter 30] 30.260 to 30.300 and the provisions of ORS 183.310 to 183.550, and a board's employees are included within the Public Employees Retirement System.

(2) Notwithstanding subsection (1) of this section, the following provisions shall continue to apply to a board:

(a) ORS 240.309 (1) to (6) and 240.321;

(b) ORS 279.800 to 279.830;

(d) ORS 282.210 to 282.230.

(3) In carrying out the duties, functions and powers of a board, the board may contract with any state agency for the performance of such duties, functions and powers as the board considers appropriate. A state agency shall not charge a board for such services an amount that is greater than the actual cost of those services. Nothing in [this Act] chapter 643, Oregon Laws 1997, requires an agency to provide services to a board other than pursuant to a voluntary interagency agreement or contract.

(4) A board shall adopt personnel policies and contracting and purchasing procedures that shall be reviewed by the Oregon Department of Administrative Services for compliance with applicable state and federal laws and collective bargaining contracts.

(5) Notwithstanding subsection (1) of this section, ORS 293.240 applies to a board and its directors and employees.

(6) Except as otherwise provided by law, directors and employees of a board are eligible to receive the same benefits as state employees.

NOTE: Inserts appropriate series reference.

SECTION 255. For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating local commissions for children and families, wherever they occur in Oregon Revised Statutes, other words designating local commissions on children and families.

SECTION 256. For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may, where appropriate, substitute for 19___, 19xx or other words or notations designating the year in a date in which blanks appear, wherever they occur in Oregon Revised Statutes, other words designating 2___ or ___ (year).

SECTION 257. The notes that follow the sections of this 1999 Act are provided for the convenience of the reader and do not become part of the statutory law of this state.

Approved by the Governor April 20, 1999

Filed in the office of Secretary of State April 20, 1999

Effective date October 23, 1999

__________