Chapter 595 Oregon Laws 2009

 

AN ACT

 

HB 2009

 

Relating to health care; creating new provisions; amending ORS 25.323, 65.800, 87.533, 90.113, 90.440, 92.337, 93.270, 97.210, 97.450, 97.977, 105.580, 106.045, 106.081, 109.094, 109.096, 109.225, 109.251, 109.675, 109.680, 109.685, 109.695, 110.318, 113.085, 113.105, 113.145, 114.525, 114.535, 115.125, 116.093, 116.253, 124.050, 125.060, 127.646, 127.720, 127.865, 130.370, 130.425, 135.139, 135.917, 137.227, 137.228, 137.464, 137.466, 137.658, 144.102, 144.270, 161.315, 161.327, 161.336, 161.341, 161.346, 161.365, 161.370, 161.375, 161.385, 161.390, 163.206, 165.698, 166.250, 166.291, 166.412, 166.470, 169.076, 169.690, 179.010, 179.040, 179.050, 179.055, 179.065, 179.105, 179.110, 179.140, 179.150, 179.210, 179.230, 179.240, 179.321, 179.325, 179.331, 179.360, 179.370, 179.375, 179.380, 179.385, 179.390, 179.450, 179.460, 179.473, 179.479, 179.490, 179.492, 179.505, 179.509, 179.610, 179.620, 179.640, 179.653, 179.655, 179.660, 179.701, 179.711, 179.731, 179.740, 179.745, 179.770, 181.537, 181.637, 182.415, 182.515, 182.535, 184.345, 192.517, 192.519, 192.527, 192.535, 192.537, 192.539, 192.547, 192.549, 192.630, 197.660, 198.792, 199.461, 199.490, 199.495, 199.512, 222.120, 222.850, 222.860, 222.870, 222.875, 222.880, 222.883, 222.885, 222.890, 222.897, 222.900, 222.911, 244.050, 247.570, 276.180, 276.610, 276.612, 278.315, 279A.050, 285A.213, 285B.563, 291.371, 314.840, 315.604, 315.613, 320.308, 323.455, 323.625, 332.111, 336.222, 336.227, 336.235, 336.245, 339.333, 339.505, 339.869, 343.221, 343.499, 343.961, 345.535, 346.015, 346.035, 348.320, 351.105, 352.008, 401.259, 401.300, 401.347, 401.654, 401.657, 401.661, 401.667, 401.670, 401.871, 408.305, 408.310, 408.320, 408.325, 408.380, 408.570, 408.580, 409.010, 409.320, 409.330, 409.410, 409.420, 409.425, 409.430, 409.435, 409.500, 409.520, 409.530, 409.540, 409.600, 409.619, 409.621, 409.623, 409.625, 409.720, 409.740, 409.745, 409.747, 411.620, 411.708, 414.025, 414.033, 414.034, 414.042, 414.049, 414.051, 414.065, 414.073, 414.105, 414.106, 414.109, 414.115, 414.125, 414.135, 414.145, 414.151, 414.153, 414.211, 414.221, 414.225, 414.227, 414.312, 414.314, 414.316, 414.318, 414.320, 414.325, 414.327, 414.329, 414.330, 414.332, 414.334, 414.336, 414.338, 414.350, 414.355, 414.360, 414.365, 414.375, 414.380, 414.390, 414.410, 414.420, 414.426, 414.428, 414.534, 414.536, 414.538, 414.540, 414.630, 414.640, 414.707, 414.708, 414.709, 414.710, 414.712, 414.720, 414.725, 414.727, 414.728, 414.735, 414.736, 414.737, 414.738, 414.739, 414.740, 414.741, 414.742, 414.743, 414.750, 414.751, 414.805, 414.807, 414.815, 414.839, 416.430, 416.510, 416.530, 416.540, 416.550, 416.560, 416.570, 416.580, 416.590, 416.600, 416.610, 416.990, 417.346, 417.728, 417.730, 417.735, 417.795, 417.845, 418.704, 418.706, 419B.005, 419B.839, 419C.239, 419C.443, 419C.507, 419C.529, 419C.530, 419C.532, 419C.533, 419C.538, 419C.542, 420.505, 420.870, 420A.135, 420A.145, 420A.155, 421.504, 426.005, 426.010, 426.020, 426.060, 426.070, 426.072, 426.074, 426.075, 426.095, 426.110, 426.120, 426.127, 426.130, 426.140, 426.150, 426.170, 426.180, 426.217, 426.220, 426.223, 426.225, 426.228, 426.231, 426.232, 426.233, 426.234, 426.235, 426.236, 426.237, 426.238, 426.241, 426.250, 426.273, 426.275, 426.278, 426.292, 426.300, 426.301, 426.303, 426.307, 426.330, 426.335, 426.370, 426.385, 426.395, 426.415, 426.495, 426.500, 426.502, 426.504, 426.506, 426.508, 426.650, 426.670, 426.675, 426.680, 427.104, 427.108, 427.112, 427.180, 427.185, 427.190, 427.235, 427.245, 427.255, 427.275, 427.280, 427.300, 427.306, 428.210, 428.220, 428.230, 428.240, 428.260, 428.270, 428.310, 428.320, 428.330, 430.010, 430.021, 430.030, 430.050, 430.071, 430.073, 430.078, 430.140, 430.160, 430.165, 430.170, 430.195, 430.205, 430.210, 430.215, 430.240, 430.255, 430.257, 430.259, 430.265, 430.270, 430.290, 430.306, 430.315, 430.335, 430.342, 430.345, 430.350, 430.357, 430.359, 430.364, 430.366, 430.368, 430.375, 430.380, 430.395, 430.397, 430.420, 430.422, 430.424, 430.426, 430.450, 430.535, 430.540, 430.545, 430.560, 430.565, 430.570, 430.610, 430.620, 430.630, 430.632, 430.635, 430.640, 430.665, 430.670, 430.672, 430.673, 430.675, 430.685, 430.690, 430.693, 430.695, 430.705, 430.715, 430.725, 430.735, 430.850, 430.860, 430.870, 430.880, 430.920, 430.925, 430.955, 431.035, 431.045, 431.110, 431.120, 431.150, 431.155, 431.157, 431.170, 431.175, 431.180, 431.190, 431.195, 431.210, 431.220, 431.230, 431.250, 431.260, 431.262, 431.264, 431.270, 431.290, 431.310, 431.330, 431.335, 431.340, 431.345, 431.350, 431.375, 431.380, 431.385, 431.415, 431.416, 431.418, 431.530, 431.550, 431.607, 431.609, 431.611, 431.613, 431.619, 431.623, 431.627, 431.633, 431.671, 431.705, 431.710, 431.715, 431.720, 431.725, 431.730, 431.735, 431.740, 431.745, 431.750, 431.760, 431.825, 431.827, 431.830, 431.831, 431.832, 431.834, 431.836, 431.853, 431.890, 431.915, 431.920, 431.940, 431.945, 431.950, 431.955, 431.990, 432.005, 432.010, 432.015, 432.020, 432.025, 432.030, 432.060, 432.085, 432.119, 432.146, 432.240, 432.287, 432.312, 432.317, 432.500, 432.510, 432.520, 432.530, 432.540, 432.900, 433.001, 433.004, 433.006, 433.008, 433.010, 433.012, 433.017, 433.035, 433.040, 433.045, 433.055, 433.060, 433.065, 433.075, 433.080, 433.085, 433.090, 433.094, 433.100, 433.110, 433.133, 433.140, 433.220, 433.235, 433.245, 433.255, 433.260, 433.267, 433.269, 433.271, 433.273, 433.282, 433.283, 433.285, 433.290, 433.295, 433.312, 433.314, 433.321, 433.323, 433.326, 433.345, 433.350, 433.355, 433.360, 433.365, 433.367, 433.370, 433.375, 433.407, 433.419, 433.423, 433.443, 433.452, 433.511, 433.517, 433.521, 433.526, 433.715, 433.750, 433.760, 433.810, 433.835, 433.850, 433.855, 433.860, 433.990, 435.090, 435.100, 435.105, 435.205, 435.225, 435.254, 435.256, 437.010, 437.030, 438.010, 438.060, 438.070, 438.110, 438.120, 438.130, 438.140, 438.150, 438.160, 438.210, 438.310, 438.320, 438.420, 438.435, 438.440, 438.450, 438.605, 438.610, 438.615, 438.620, 440.420, 441.017, 441.020, 441.022, 441.025, 441.030, 441.037, 441.050, 441.055, 441.057, 441.060, 441.062, 441.082, 441.085, 441.094, 441.164, 441.166, 441.170, 441.180, 441.630, 441.705, 441.710, 441.712, 441.715, 441.720, 441.750, 441.755, 441.815, 441.990, 442.011, 442.015, 442.120, 442.315, 442.325, 442.342, 442.502, 442.584, 442.700, 442.705, 442.710, 442.720, 442.725, 442.730, 442.735, 442.740, 442.745, 442.750, 442.755, 442.760, 442.800, 442.807, 443.005, 443.015, 443.035, 443.045, 443.055, 443.085, 443.205, 443.225, 443.315, 443.325, 443.327, 443.340, 443.345, 443.400, 443.405, 443.410, 443.415, 443.420, 443.422, 443.425, 443.430, 443.435, 443.440, 443.445, 443.450, 443.455, 443.460, 443.705, 443.715, 443.720, 443.725, 443.730, 443.733, 443.735, 443.738, 443.740, 443.742, 443.745, 443.755, 443.760, 443.765, 443.767, 443.775, 443.780, 443.785, 443.790, 443.795, 443.865, 443.870, 443.991, 444.300, 444.310, 444.320, 444.330, 445.010, 445.030, 445.050, 445.070, 445.090, 445.110, 445.130, 445.140, 445.150, 445.180, 445.185, 446.310, 446.320, 446.321, 446.322, 446.324, 446.325, 446.330, 446.335, 446.340, 446.345, 446.347, 446.348, 446.350, 446.425, 447.124, 448.005, 448.011, 448.020, 448.030, 448.035, 448.037, 448.040, 448.051, 448.060, 448.100, 448.115, 448.119, 448.123, 448.131, 448.135, 448.140, 448.145, 448.150, 448.153, 448.155, 448.160, 448.165, 448.170, 448.175, 448.180, 448.250, 448.255, 448.268, 448.271, 448.273, 448.277, 448.278, 448.279, 448.280, 448.285, 448.295, 448.315, 448.330, 448.407, 448.409, 448.410, 448.450, 448.460, 448.465, 448.990, 450.165, 450.845, 451.445, 452.151, 452.300, 452.530, 453.001, 453.005, 453.035, 453.055, 453.065, 453.075, 453.085, 453.095, 453.105, 453.115, 453.125, 453.135, 453.205, 453.225, 453.235, 453.245, 453.255, 453.265, 453.342, 453.347, 453.370, 453.605, 453.635, 453.645, 453.665, 453.675, 453.685, 453.695, 453.705, 453.715, 453.745, 453.752, 453.754, 453.757, 453.761, 453.771, 453.775, 453.780, 453.785, 453.790, 453.795, 453.800, 453.805, 453.807, 453.864, 453.867, 453.870, 453.873, 453.876, 453.879, 453.885, 453.888, 453.891, 453.894, 453.897, 453.900, 453.903, 453.909, 453.995, 454.235, 455.680, 458.525, 458.532, 459.386, 459.390, 459.395, 466.135, 466.280, 466.605, 466.615, 468.035, 468.055, 468.060, 468A.707, 468B.150, 469.525, 469.533, 469.559, 469.611, 471.190, 471.235, 471.333, 471.432, 471.547, 471.732, 475.225, 475.302, 475.303, 475.304, 475.306, 475.309, 475.312, 475.316, 475.320, 475.331, 475.334, 475.338, 475.565, 476.030, 478.260, 479.215, 479.217, 479.220, 480.225, 497.162, 527.710, 537.532, 537.534, 541.845, 545.101, 547.045, 561.740, 609.652, 616.010, 616.015, 616.020, 616.077, 616.330, 616.711, 616.745, 619.095, 624.010, 624.020, 624.036, 624.041, 624.046, 624.051, 624.060, 624.070, 624.073, 624.077, 624.080, 624.086, 624.091, 624.096, 624.106, 624.111, 624.116, 624.121, 624.165, 624.310, 624.320, 624.330, 624.340, 624.370, 624.380, 624.390, 624.400, 624.410, 624.430, 624.490, 624.495, 624.510, 624.530, 624.550, 624.570, 624.630, 624.650, 624.670, 624.990, 624.992, 628.270, 634.550, 656.319, 657.010, 657.880, 657.885, 657A.260, 657A.400, 657A.410, 657A.420, 675.360, 675.365, 676.160, 677.290, 677.491, 677.510, 677.515, 677.805, 677.812, 678.153, 678.362, 678.440, 678.730, 680.205, 682.017, 682.019, 682.025, 682.028, 682.031, 682.039, 682.045, 682.047, 682.051, 682.056, 682.062, 682.068, 682.075, 682.079, 682.085, 682.105, 682.107, 682.109, 682.111, 682.117, 682.208, 682.212, 682.216, 682.220, 682.224, 682.245, 682.991, 685.055, 685.160, 688.545, 688.595, 688.625, 688.630, 688.635, 688.640, 688.645, 688.650, 688.655, 688.660, 688.665, 689.605, 689.645, 690.055, 690.057, 690.205, 691.405, 691.485, 692.300, 693.115, 701.505, 708A.430, 722.262, 723.466, 731.276, 735.610, 735.612, 735.614, 735.625, 735.630, 735.701, 735.706, 735.722, 735.734, 735.754, 735.756, 743.018, 743.730, 743.737, 743.831, 802.250, 807.720, 813.021, 813.025, 813.030, 813.240, 813.260, 813.270, 813.500, 815.260, 820.330, 820.360, 820.380 and 830.110 and sections 13 and 14, chapter 653, Oregon Laws 1991, section 6, chapter 1059, Oregon Laws 1999, section 2, chapter 798, Oregon Laws 2001, section 2, chapter 76, Oregon Laws 2003, section 18, chapter 810, Oregon Laws 2003, sections 5 and 7, chapter 99, Oregon Laws 2007, section 2, chapter 460, Oregon Laws 2007, section 2, chapter 665, Oregon Laws 2007, section 27, chapter 697, Oregon Laws 2007, sections 3 and 4, chapter 838, Oregon Laws 2007, section 2a, chapter 872, Oregon Laws 2007, section 21, chapter 18, Oregon Laws 2008, and section 2, chapter 31, Oregon Laws 2008; repealing ORS 414.019, 414.021, 414.022, 414.023, 414.024, 414.031, 414.032, 414.036, 414.038, 414.039, 414.085, 414.107, 414.660, 414.670, 414.744, 430.180, 430.190, 442.035, 442.045, 442.057, 445.270 and 735.706 and sections 10 and 13, chapter 810, Oregon Laws 2003; appropriating money; and declaring an emergency.

 

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

 

HEALTH AUTHORITY LAW

 

ESTABLISHING OREGON HEALTH POLICY BOARD

 

(Establishment; Appointment; Term;

Confirmation; Per Diem)

 

          SECTION 1. (1) There is established the Oregon Health Policy Board, consisting of nine members appointed by the Governor.

          (2) The term of office of each member is four years, but a member serves at the pleasure of the Governor. Before the expiration of the term of a member, the Governor shall appoint a successor whose term begins on January 1 next following. A member is eligible for reappointment. If there is a vacancy for any cause, the Governor shall make an appointment to become immediately effective for the unexpired term.

          (3) The appointment of the board is subject to confirmation by the Senate in the manner prescribed in ORS 171.562 and 171.565.

          (4) Members of the board are entitled to reimbursement of per diem and travel expenses for their attendance at board meetings and subcommittee meetings as provided in ORS 292.495.

 

          SECTION 2. Notwithstanding the term of office specified by section 1 of this 2009 Act, of the members first appointed to the Oregon Health Policy Board:

          (1) Two shall serve for terms ending December 31, 2011.

          (2) Two shall serve for terms ending December 31, 2012.

          (3) Two shall serve for terms ending December 31, 2013.

          (4) Three shall serve for terms ending December 31, 2014.

          NOTE: Section 3 was deleted by amendment. Subsequent sections were not renumbered.

 

(Qualification of Members)

 

          SECTION 4. (1) The Oregon Health Policy Board consists of individuals who:

          (a) Are United States citizens and residents of this state;

          (b) Have demonstrated leadership skills in their professional and civic lives;

          (c) To the greatest extent practicable, represent the various geographic, ethnic, gender, racial and economic diversity of this state; and

          (d) Collectively offer expertise, knowledge and experience in consumer advocacy, management of a company that offers health insurance to its employees, public health, finance, organized labor, health care and the operation of a small business.

          (2) No more than four members of the board may be individuals:

          (a) Whose household incomes, during the individuals’ tenure on the board or during the 12-month period prior to the individuals’ appointment to the board, come from health care or from a health care related field; or

          (b) Who receive health care benefits from a publicly funded state health benefit plan.

          (3) No more than four members of the board may be, during the individuals’ tenure on the board or during the 12-month period prior to the individuals’ appointment to the board, employed in a health care or health care related field.

          (4) At least one member of the board shall have an active license to provide health care in Oregon and shall be appointed to serve in addition to the members offering the expertise, knowledge and experience described in subsection (1)(d) of this section.

 

(Officers; Quorum; Meetings)

 

          SECTION 5. (1) The Governor shall select from the membership of the Oregon Health Policy Board the chairperson and vice chairperson.

          (2) A majority of the members of the board constitutes a quorum for the transaction of business.

          (3) The board shall meet at least once every month and shall meet at least once every two years in each congressional district in this state, at a place, day and hour determined by the board. The board may also meet at other times and places specified by the call of the chairperson or a majority of the members of the board, or as specified in bylaws adopted by the board.

 

(Authority to Adopt Rules)

 

          SECTION 6. In accordance with applicable provisions of ORS chapter 183, the Oregon Health Policy Board may adopt rules necessary for the administration of the laws that the board is charged with administering.

 

(Committees)

 

          SECTION 7. (1) The Oregon Health Policy Board shall establish the committees described in subsections (2) and (3) of this section.

          (2)(a) The Public Health Benefit Purchasers Committee shall include individuals who purchase health care for the following:

          (A) The Public Employees’ Benefit Board.

          (B) The Oregon Educators Benefit Board.

          (C) Trustees of the Public Employees Retirement System.

          (D) A city government.

          (E) A county government.

          (F) A special district.

          (G) Any private nonprofit organization that receives the majority of its funding from the state and requests to participate on the committee.

          (b) The Public Health Benefit Purchasers Committee shall:

          (A) Identify and make specific recommendations to achieve uniformity across all public health benefit plan designs based on the best available clinical evidence, recognized best practices for health promotion and disease management, demonstrated cost-effectiveness and shared demographics among the enrollees within the pools covered by the benefit plans.

          (B) Develop an action plan for ongoing collaboration to implement the benefit design alignment described in subparagraph (A) of this paragraph and shall leverage purchasing to achieve benefit uniformity if practicable.

          (C) Continuously review and report to the Oregon Health Policy Board on the committee’s progress in aligning benefits while minimizing the cost shift to individual purchasers of insurance without shifting costs to the private sector or the Oregon Health Insurance Exchange.

          (c) The Oregon Health Policy Board shall work with the Public Health Benefit Purchasers Committee to identify uniform provisions for state and local public contracts for health benefit plans that achieve maximum quality and cost outcomes. The board shall collaborate with the committee to develop steps to implement joint contract provisions. The committee shall identify a schedule for the implementation of contract changes. The process for implementation of joint contract provisions must include a review process to protect against unintended cost shifts to enrollees or agencies.

          (d) Proposals and plans developed in accordance with this subsection shall be completed by October 1, 2010, and shall be submitted to the Oregon Health Policy Board for its approval and possible referral to the Legislative Assembly no later than December 31, 2010.

          (3)(a) The Health Care Workforce Committee shall include individuals who have the collective expertise, knowledge and experience in a broad range of health professions, health care education and health care workforce development initiatives.

          (b) The Health Care Workforce Committee shall coordinate efforts to recruit and educate health care professionals and retain a quality workforce to meet the demand that will be created by the expansion in health care coverage, system transformations and an increasingly diverse population.

          (c) The Health Care Workforce Committee shall conduct an inventory of all grants and other state resources available for addressing the need to expand the health care workforce to meet the needs of Oregonians for health care.

          (4) Members of the committees described in subsections (2) and (3) of this section who are not members of the Oregon Health Policy Board are not entitled to compensation but shall be reimbursed from funds available to the board for actual and necessary travel and other expenses incurred by them by their attendance at committee meetings, in the manner and amount provided in ORS 292.495.

 

          SECTION 7a. There is established in the State Treasury, separate and distinct from the General Fund, the Health Care Workforce Strategic Fund. The fund shall consist of moneys obtained from federal and private sources as well as any moneys appropriated to the fund by the Legislative Assembly. Moneys in the fund are continuously appropriated to the Oregon Health Authority to meet the goals established by the Health Care Workforce Committee established pursuant to section 7 of this 2009 Act.

 

(Advisory and Technical Committees)

 

          SECTION 8. (1) The Oregon Health Policy Board may establish such advisory and technical committees as the board considers necessary to aid and advise the board in the performance of the board’s functions. These committees may be continuing or temporary committees. The board shall determine the representation, membership, terms and organization of the committees and shall appoint the members of the committees.

          (2) Members of the committees who are not members of the board are not entitled to compensation, but at the discretion of the board may be reimbursed from funds available to the board for actual and necessary travel and other expenses incurred by them in the performance of their official duties, in the manner and amount provided in ORS 292.495.

 

(Duties)

 

          SECTION 9. (1) The duties of the Oregon Health Policy Board are to:

          (a) Be the policy-making and oversight body for the Oregon Health Authority established in section 10 of this 2009 Act and all of the authority’s departmental divisions, including the Oregon Health Insurance Exchange described in section 17 of this 2009 Act.

          (b) Develop and submit a plan to the Legislative Assembly by December 31, 2010, to provide and fund access to affordable, quality health care for all Oregonians by 2015.

          (c) Develop a program to provide health insurance premium assistance to all low and moderate income individuals who are legal residents of Oregon.

          (d) Establish and continuously refine uniform, statewide health care quality standards for use by all purchasers of health care, third-party payers and health care providers as quality performance benchmarks.

          (e) Establish evidence-based clinical standards and practice guidelines that may be used by providers.

          (f) Approve and monitor community-centered health initiatives described in section 10 (1)(g) of this 2009 Act that are consistent with public health goals, strategies, programs and performance standards adopted by the Oregon Health Policy Board to improve the health of all Oregonians, and shall regularly report to the Legislative Assembly on the accomplishments and needed changes to the initiatives.

          (g) Establish cost containment mechanisms to reduce health care costs.

          (h) Ensure that Oregon’s health care workforce is sufficient in numbers and training to meet the demand that will be created by the expansion in health coverage, health care system transformations, an increasingly diverse population and an aging workforce.

          (i) Work with the Oregon congressional delegation to advance the adoption of changes in federal law or policy to promote Oregon’s comprehensive health reform plan.

          (j) Establish a health benefit package in accordance with section 16 of this 2009 Act to be used as the baseline for all health benefit plans offered through the Oregon Health Insurance Exchange.

          (k) Develop and submit a plan to the Legislative Assembly by December 31, 2010, with recommended policies and procedures for the Oregon Health Insurance Exchange developed in accordance with section 17 of this 2009 Act.

          (L) Develop and submit a plan to the Legislative Assembly by December 31, 2010, with recommendations for the development of a publicly owned health benefit plan that operates in the exchange under the same rules and regulations as all health insurance plans offered through the exchange, including fully allocated fixed and variable operating and capital costs.

          (m) By December 31, 2010, investigate and report to the Legislative Assembly, and annually thereafter, on the feasibility and advisability of future changes to the health insurance market in Oregon, including but not limited to the following:

          (A) A requirement for every resident to have health insurance coverage.

          (B) A payroll tax as a means to encourage employers to continue providing health insurance to their employees.

          (C) Expansion of the exchange to include a program of premium assistance and to advance reforms of the insurance market.

          (D) The implementation of a system of interoperable electronic health records utilized by all health care providers in this state.

          (n) Meet cost-containment goals by structuring reimbursement rates to reward comprehensive management of diseases, quality outcomes and the efficient use of resources by promoting cost-effective procedures, services and programs including, without limitation, preventive health, dental and primary care services, web-based office visits, telephone consultations and telemedicine consultations.

          (o) Oversee the expenditure of moneys from the Health Care Workforce Strategic Fund to support grants to primary care providers and rural health practitioners, to increase the number of primary care educators and to support efforts to create and develop career ladder opportunities.

          (p) Work with the Public Health Benefit Purchasers Committee, administrators of the medical assistance program and the Department of Corrections to identify uniform contracting standards for health benefit plans that achieve maximum quality and cost outcomes and align the contracting standards for all state programs to the greatest extent practicable.

          (2) The Oregon Health Policy Board is authorized to:

          (a) Subject to the approval of the Governor, organize and reorganize the authority as the board considers necessary to properly conduct the work of the authority.

          (b) Submit directly to the Legislative Counsel, no later than October 1 of each even-numbered year, requests for measures necessary to provide statutory authorization to carry out any of the board’s duties or to implement any of the board’s recommendations. The measures may be filed prior to the beginning of the legislative session in accordance with the rules of the House of Representatives and the Senate.

          (3) If the board or the authority is unable to perform, in whole or in part, any of the duties described in sections 1 to 18 of this 2009 Act without federal approval, the board is authorized to request waivers or other approval necessary to perform those duties. The board shall implement any portions of those duties not requiring legislative authority or federal approval, to the extent practicable.

          (4) The enumeration of duties, functions and powers in this section is not intended to be exclusive nor to limit the duties, functions and powers imposed on the board by sections 1 to 18 of this 2009 Act and by other statutes.

          (5) The board shall consult with the Department of Consumer and Business Services in completing the tasks set forth in subsection (1)(j), (k) and (m)(A) and (C) of this section.

 

ESTABLISHING

OREGON HEALTH AUTHORITY

 

(Establishment; Duties; Powers)

 

          SECTION 10. (1) The Oregon Health Authority is established. The authority shall:

          (a) Carry out policies adopted by the Oregon Health Policy Board;

          (b) Develop a plan for the Oregon Health Insurance Exchange in accordance with section 17 of this 2009 Act;

          (c) Administer the Oregon Prescription Drug Program;

          (d) Administer the Family Health Insurance Assistance Program;

          (e) Provide regular reports to the board with respect to the performance of health services contractors serving recipients of medical assistance, including reports of trends in health services and enrollee satisfaction;

          (f) Guide and support, with the authorization of the board, community-centered health initiatives designed to address critical risk factors, especially those that contribute to chronic disease;

          (g) Be the state Medicaid agency for the administration of funds from Titles XIX and XXI of the Social Security Act and administer medical assistance under ORS chapter 414;

          (h) In consultation with the Director of the Department of Consumer and Business Services, periodically review and recommend standards and methodologies to the Legislative Assembly for:

          (A) Review of administrative expenses of health insurers;

          (B) Approval of rates; and

          (C) Enforcement of rating rules adopted by the Department of Consumer and Business Services;

          (i) Structure reimbursement rates for providers that serve recipients of medical assistance to reward comprehensive management of diseases, quality outcomes and the efficient use of resources and to promote cost-effective procedures, services and programs including, without limitation, preventive health, dental and primary care services, web-based office visits, telephone consultations and telemedicine consultations;

          (j) Guide and support community three-share agreements in which an employer, state or local government and an individual all contribute a portion of a premium for a community-centered health initiative or for insurance coverage; and

          (k) Develop, in consultation with the Department of Consumer and Business Services and the Health Insurance Reform Advisory Committee, one or more products designed to provide more affordable options for the small group market.

          (2) The Oregon Health Authority is authorized to:

          (a) Create an all-claims, all-payer database to collect health care data and monitor and evaluate health care reform in Oregon and to provide comparative cost and quality information to consumers, providers and purchasers of health care about Oregon’s health care systems and health plan networks in order to provide comparative information to consumers.

          (b) Develop uniform contracting standards for the purchase of health care, including the following:

          (A) Uniform quality standards and performance measures;

          (B) Evidence-based guidelines for major chronic disease management and health care services with unexplained variations in frequency or cost;

          (C) Evidence-based effectiveness guidelines for select new technologies and medical equipment; and

          (D) A statewide drug formulary that may be used by publicly funded health benefit plans.

          (c) Submit directly to the Legislative Counsel, no later than October 1 of each even-numbered year, requests for measures necessary to provide statutory authorization to carry out any of the authority’s duties or to implement any of the board’s recommendations. The measures may be filed prior to the beginning of the legislative session in accordance with the rules of the House of Representatives and the Senate.

          (3) The enumeration of duties, functions and powers in this section is not intended to be exclusive nor to limit the duties, functions and powers imposed on or vested in the Oregon Health Authority by sections 1 to 18 of this 2009 Act or by other statutes.

 

(Director)

 

          SECTION 11. (1) The Oregon Health Authority is under the supervision and control of a director, who is responsible for the performance of the duties, functions and powers of the authority.

          (2) The Governor shall appoint the Director of the Oregon Health Authority, who holds office at the pleasure of the Governor. The appointment of the director shall be subject to confirmation by the Senate in the manner provided by ORS 171.562 and 171.565.

          (3) The director shall have the power to:

          (a) Contract for and procure, on a fee or part-time basis, or both, such actuarial, technical or other professional services as may be required for the discharge of duties.

          (b) Obtain such other services as the director considers necessary or desirable, including participation in organizations of state insurance supervisory officials and appointment of advisory committees. A member of an advisory committee so appointed shall receive no compensation for services as a member, but, subject to any other applicable law regulating travel and other expenses of state officers, shall receive actual and necessary travel and other expenses incurred in the performance of official duties.

          (4) The director may apply for, receive and accept grants, gifts or other payments, including property or services from any governmental or other public or private person and may make arrangement for the use of the receipts, including the undertaking of special studies and other projects relating to the costs of health care, access to health care, public health and health care reform.

          NOTE: Section 12 was deleted by amendment. Subsequent sections were not renumbered.

 

(Officers and Employees)

 

          SECTION 13. Subject to any applicable provisions of ORS chapter 240, the Director of the Oregon Health Authority shall appoint all subordinate officers and employees of the Oregon Health Authority, prescribe their duties and fix their compensation.

 

(General Authority to Adopt Rules)

 

          SECTION 14. In accordance with applicable provisions of ORS chapter 183, the Director of the Oregon Health Authority may adopt rules necessary for the administration of the laws that the Oregon Health Authority is charged with administering.

 

(Oaths, Depositions and Subpoenas)

 

          SECTION 15. The Director of the Oregon Health Authority, each deputy director and authorized representatives of the director may administer oaths, take depositions and issue subpoenas to compel the attendance of witnesses and the production of documents or other written information necessary to carry out the provisions of sections 1 to 18 of this 2009 Act. If any person fails to comply with a subpoena issued under this section or refuses to testify on matters on which the person lawfully may be interrogated, the director, deputy director or authorized representative may follow the procedure set out in ORS 183.440 to compel obedience.

 

(Baseline Health Benefit Package)

 

          SECTION 16. The Oregon Health Authority, in developing and offering the health benefit package required by section 9 (1)(j) of this 2009 Act, may not establish policies or procedures that discourage insurers from offering more comprehensive health benefit plans that provide greater consumer choice at a higher cost. The health benefit package approved by the Oregon Health Policy Board shall:

          (1) Promote the provision of services through an integrated health home model that reduces unnecessary hospitalizations and emergency department visits.

          (2) Require little or no cost sharing for evidence-based preventive care and services, such as care and services that have been shown to prevent acute exacerbations of disease symptoms in individuals with chronic illnesses.

          (3) Create incentives for individuals to actively participate in their own health care and to maintain or improve their health status.

          (4) Require a greater contribution by an enrollee to the cost of elective or discretionary health services.

          (5) Include a defined set of health care services that are affordable, financially sustainable and based upon the prioritized list of health services developed and updated by the Health Services Commission under ORS 414.720.

 

ESTABLISHING DEPARTMENTAL ENTITIES WITHIN

OREGON HEALTH AUTHORITY

 

(Oregon Health Insurance Exchange)

 

          SECTION 17. (1) The Oregon Health Authority, in consultation with the Director of the Department of Consumer and Business Services, shall develop a plan for the staffing, funding and administration of the Oregon Health Insurance Exchange within the Oregon Health Authority. The plan shall set forth the duties and responsibilities of the exchange, which:

          (a) Shall include consideration of the following:

          (A) The selection and pricing of benefit plans to be offered through the exchange, including the health benefit package developed under section 9 (1)(j) of this 2009 Act. The plans shall include a range of price, copayment and deductible options.

          (B) The rating and underwriting standards applicable to the exchange, including whether to incorporate community rating and guaranteed issue.

          (C) Determining the role of the Public Employees’ Benefit Board, the Oregon Educators Benefit Board and other public purchasers, including state-funded private nonprofit organizations.

          (D) The development of a transition period for the rollover of individual policies into the exchange.

          (E) Enforcement of the rules governing the sale of insurance within the exchange.

          (F) Identifying the role of insurance producers.

          (G) Providing benefit plans through the exchange at little or no cost to low income individuals.

          (H) Maximizing the participation of private insurance plans offered through the exchange.

          (I) Determining how to ensure that employees of small employers, and part time and seasonal workers will have access to portability plans.

          (b) May include the following:

          (A) Establishing criteria for the selection of insurance carriers to participate in the exchange.

          (B) Establishing a requirement that all residents of this state have health care coverage.

          (C) Determining whether the exchange should be the exclusive market for individual and small group purchasers, or whether such purchasers will continue to have other options to obtain coverage.

          (D) Determining whether and how to use health savings accounts.

          (E) Determining whether and how to use high deductible plans.

          (F) Determining the extent to which it is permissible under the Internal Revenue Code to pay premiums, deductibles and copayments on a pretax basis.

          (G) Determining the need to develop and implement a reinsurance program.

          (2) The Oregon Health Authority shall submit the plan developed under this section to the Oregon Health Policy Board for approval.

          (3) No later than October 1, 2010, the board shall submit a request to Legislative Counsel pursuant to section 9 (2)(b) of this 2009 Act for a measure to implement the plan.

 

(Establishment of Oregon Health Authority Fund)

 

          SECTION 18. The Oregon Health Authority Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Oregon Health Authority Fund shall be credited to the fund. Moneys in the fund are continuously appropriated to the Oregon Health Authority for carrying out the duties, functions and powers of the authority under section 10 of this 2009 Act.

 

TRANSFER OF FUNCTIONS TO

OREGON HEALTH AUTHORITY

 

(Duties, Functions and Powers)

 

          SECTION 19. (1)(a) Except as provided in paragraph (b) of this subsection, all of the duties, functions and powers of the Department of Human Services with respect to health and health care are imposed upon, transferred to and vested in the Oregon Health Authority, including but not limited to:

          (A) Developing the policies for and the provision of publicly funded medical care and medical assistance in this state.

          (B) Ensuring the promotion and protection of public health and the licensing of health care facilities.

          (C) Developing the policies for and the provision of mental health treatment and treatment for substance use disorders.

          (D) The administration of the Oregon Prescription Drug Program.

          (E) Responsibility for the Office for Oregon Health Policy and Research and all of the functions of the office.

          (F) The responsibilities of the Oregon Health Fund Board established in section 5, chapter 697, Oregon Laws 2007.

          (b) The department shall retain all of its duties, functions and powers with respect to:

          (A) Services provided in long term care facilities, home-based and community-based care settings and residential facilities to individuals who have physical disabilities or developmental disabilities or who receive residential facility care for seniors; and

          (B) Non-medical services provided to individuals by the department.

          (2) All duties, functions and powers of the Oregon Department of Administrative Services with respect to the Public Employees’ Benefit Board and the Oregon Educators Benefit Board are imposed upon, transferred to and vested in the Oregon Health Authority.

          (3) All of the duties, functions and powers of the Department of Consumer and Business Services with respect to the Oregon Medical Insurance Pool Board and the operation of the Oregon Medical Insurance Pool are imposed upon, transferred to and vested in the Oregon Health Authority.

          (4) All of the duties, functions and powers of the Office of Private Health Partnerships, including the administration of the Family Health Insurance Assistance Program, are imposed upon, transferred to and vested in the Oregon Health Authority.

          (5) The Oregon Health Policy Commission is abolished. On the operative date of this section, the tenure of office of the members of the Oregon Health Policy Commission ceases. All the duties, functions and powers of the Oregon Health Policy Commission are imposed upon, transferred to and vested in the Oregon Health Authority.

          (6) The directors of the Department of Human Services, the Oregon Department of Administrative Services and the Department of Consumer and Business Services and the Administrator of the Office of Private Health Partnerships shall work together to establish a timeline and to implement the transfer of duties, functions and powers pursuant to this section.

          (7) All changes necessary to accomplish this section shall be completed by June 30, 2011. When developing the 2011-2013 biennial budget, the Governor’s budget shall reflect the implementation of the provisions of this section.

 

          SECTION 20. On or before January 2, 2012, the Department of Human Services and the Oregon Health Authority may delegate to each other any duties, functions or powers transferred by section 19 of this 2009 Act that the department or the authority deem necessary for the efficient and effective operation of their respective functions.

 

          SECTION 21. (1) No later than June 30, 2011, the Department of Human Services, the Oregon Department of Administrative Services, the Department of Consumer and Business Services, the Office of Private Health Partnerships and the Oregon Health Policy Commission shall:

          (a) Deliver to the Oregon Health Authority all records and property within the jurisdiction of the departments and the office that relate to the duties, functions and powers transferred by section 19 of this 2009 Act; and

          (b) Transfer to the Oregon Health Authority those employees engaged primarily in the exercise of the duties, functions and powers transferred by section 19 of this 2009 Act.

          (2) The Director of the Oregon Health Authority shall take possession of the records and property, and shall take charge of the employees and employ them in the exercise of the duties, functions and powers transferred by section 19 of this 2009 Act, without reduction of compensation but subject to change or termination of employment or compensation as provided by law. With respect to any employees transferred to the Oregon Health Authority under this section who are, on the effective date of this 2009 Act, represented by a labor organization or covered by a collective bargaining agreement, the authority shall recognize the labor organization as the collective bargaining representative for the employees and shall adopt and apply the terms of the collective bargaining agreement covering the employees.

          (3) The Governor shall resolve any dispute between the Department of Human Services, the Department of Consumer and Business Services, the Oregon Department of Administrative Services, the Office of Private Health Partnerships or the Oregon Health Policy Commission and the Oregon Health Authority relating to transfers of records, property and employees under this section, and the Governor’s decision is final.

 

(Effect on Actions, Proceedings

and Prosecutions)

 

          SECTION 22. The transfer of duties, functions and powers to the Oregon Health Authority by section 19 of this 2009 Act does not affect any action, proceeding or prosecution involving or with respect to such duties, functions and powers begun before and pending at the time of the transfer, except that the Oregon Health Authority is substituted for the Department of Human Services, the Oregon Department of Administrative Services, the Department of Consumer and Business Services, the Office of Private Health Partnerships or the Oregon Health Policy Commission in the action, proceeding or prosecution.

 

          SECTION 23. Notwithstanding the transfer of duties, functions and powers by section 19 of this 2009 Act, the rules of the Department of Human Services, the Oregon Department of Administrative Services, the Department of Consumer and Business Services and the Office of Private Health Partnerships that relate to the duties, functions and powers transferred by section 19 of this 2009 Act continue in effect until superseded or repealed by the rules of the Oregon Health Authority. References in the rules of the Department of Human Services, the Oregon Department of Administrative Services, the Department of Consumer and Business Services and the Office of Private Health Partnerships or to an officer or employee of such entities are considered to be references to the Oregon Health Authority or employee of the Oregon Health Authority.

 

(Effect on Liabilities, Duties and Obligations)

 

          SECTION 24. (1) Nothing in sections 19 to 22 of this 2009 Act relieves a person of a liability, duty or obligation accruing under or with respect to the duties, functions and powers transferred by section 19 of this 2009 Act. The Oregon Health Authority may undertake the collection or enforcement of any such liability, duty or obligation.

          (2) The rights and obligations of the Department of Human Services, the Oregon Department of Administrative Services, the Department of Consumer and Business Services, the Office of Private Health Partnerships and the Oregon Health Policy Commission legally incurred under contracts, leases and business transactions executed, entered into or begun before the effective date of this 2009 Act and with respect to the duties, functions and powers transferred by section 19 of this 2009 Act are transferred to the Oregon Health Authority. For the purpose of succession to these rights and obligations, the Oregon Health Authority is a continuation of the Department of Human Services, the Oregon Department of Administrative Services, the Department of Consumer and Business Services, the Office of Private Health Partnerships and the Oregon Health Policy Commission and not a new authority.

 

          SECTION 25. Whenever, in any uncodified law or resolution of the Legislative Assembly or in any rule, document, record or proceeding authorized by the Legislative Assembly, reference is made to the Department of Human Services, the Oregon Department of Administrative Services, the Department of Consumer and Business Services, the Office of Private Health Partnerships or the Oregon Health Policy Commission or an executive, officer or employee of the departments, office or commission, with respect to the duties, functions and powers transferred by section 19 of this 2009 Act, the reference is considered to be a reference to the Oregon Health Policy Board, the Oregon Health Authority or an executive, officer or employee of the Oregon Health Authority.

 

NO RESTRAINT OF TRADE

 

          SECTION 26. The activities of insurers working under the direction of the Oregon Health Authority and the Department of Consumer and Business Services pursuant to section 9 (1)(j) of this 2009 Act or participating in the Oregon Health Insurance Exchange created under section 17 of this 2009 Act do not constitute a conspiracy or restraint of trade or an illegal monopoly, nor are they carried out for the purposes of lessening competition or fixing prices arbitrarily.

 

PREMIUM RATE FILING

 

          SECTION 27. Sections 28 and 29 of this 2009 Act are added to and made a part of ORS chapter 743.

 

          SECTION 28. (1) When an insurer files a schedule or table of premium rates for individual, portability or small employer health insurance under ORS 743.018, the Director of the Department of Consumer and Business Services shall open a 30-day public comment period on the rate filing that begins on the date the insurer files the schedule or table of premium rates. The director shall post all comments to the website of the Department of Consumer and Business Services without delay.

          (2) The director shall give written notice to an insurer approving or disapproving a rate filing or, with the written consent of the insurer, modifying a rate filing submitted under ORS 743.018 no later than 10 business days after the close of the public comment period. The notice shall comply with the requirements of ORS 183.415.

 

          SECTION 29. An insurer licensed by the Department of Consumer and Business Services shall include in any rate filing under ORS 743.018 with respect to individual and small employer health insurance policies a statement of administrative expenses in the form and manner prescribed by the department by rule. The statement must include, but is not limited to:

          (1) A statement of administrative expenses on a per member per month basis; and

          (2) An explanation of the basis for any proposed premium rate increases or decreases.

 

          SECTION 30. Sections 28 and 29 of this 2009 Act and the amendments to ORS 743.018 by section 31 of this 2009 Act apply to rate filings submitted to the Department of Consumer and Business Services on or after April 1, 2010.

 

          SECTION 31. ORS 743.018 is amended to read:

          743.018. (1) Except for group life and health insurance, and except as provided in ORS 743.015, every insurer shall file with the Director of the Department of Consumer and Business Services all schedules and tables of premium rates for life and health insurance to be used on risks in this state, and shall file any amendments to or corrections of such schedules and tables. Premium rates are subject to approval, disapproval or withdrawal of approval by the director as provided in ORS 742.003, 742.005 and 742.007.

          (2) Except as provided in ORS 743.737 and 743.760 and subsection (3) of this section, a rate filing by a carrier for any of the following health benefit plans subject to ORS 743.730 to 743.773 shall be available for public inspection immediately upon submission of the filing to the director:

          (a) Health benefit plans for small employers.

          (b) Portability health benefit plans.

          (c) Individual health benefit plans.

          [(3) The director, upon request by a carrier, may exempt from disclosure any part of the filing that the director determines to contain trade secrets and that would, if disclosed, harm competition. The part that the director determines to be exempt from disclosure shall be considered confidential for purposes of ORS 705.137. The director may not disclose a part of a filing subject to a carrier’s request pending the director’s determination under this subsection.]

          (3) The director may by rule:

          (a) Specify all information a carrier must submit as part of a rate filing under this section; and

          (b) Identify the information submitted that will be exempt from disclosure under this section because the information constitutes a trade secret and would, if disclosed, harm competition.

          (4) The director, after conducting an actuarial review of the rate filing, may approve a proposed premium rate for a health benefit plan for small employers or for an individual health benefit plan if, in the director’s discretion, the proposed rates are:

          (a) Actuarially sound;

          (b) Reasonable and not excessive, inadequate or unfairly discriminatory; and

          (c) Based upon reasonable administrative expenses.

          (5) In order to determine whether the proposed premium rates for a health benefit plan for small employers or for an individual health benefit plan are reasonable and not excessive, inadequate or unfairly discriminatory, the director may consider:

          (a) The insurer’s financial position, including but not limited to profitability, surplus, reserves and investment savings.

          (b) Historical and projected administrative costs and medical and hospital expenses.

          (c) Historical and projected loss ratio between the amounts spent on medical services and earned premiums.

          (d) Any anticipated change in the number of enrollees if the proposed premium rate is approved.

          (e) Changes to covered benefits or health benefit plan design.

          (f) Changes in the insurer’s health care cost containment and quality improvement efforts since the insurer’s last rate filing for the same category of health benefit plan.

          (g) Whether the proposed change in the premium rate is necessary to maintain the insurer’s solvency or to maintain rate stability and prevent excessive rate increases in the future.

          (h) Any public comments received under section 28 of this 2009 Act pertaining to the standards set forth in subsection (4) of this section and this subsection.

          (6) With the written consent of the insurer, the director may modify a schedule or table of premium rates filed in accordance with subsection (1) of this section.

          (7) The requirements of this section do not supersede other provisions of law that require insurers, health care service contractors or multiple employer welfare arrangements providing health insurance to file schedules or tables of premium rates or proposed premium rates with the director or to seek the director’s approval of rates or changes to rates.

          NOTE: Sections 32 to 54 were deleted by amendment. Subsequent sections were not renumbered.

 

CONFORMING AMENDMENTS

 

          SECTION 55. ORS 25.323 is amended to read:

          25.323. (1) Except as provided in this section, whenever a child support order is entered or modified under this chapter, ORS chapter 107, 108, 109, 110 or ORS 416.400 to 416.465, 419B.400 or 419C.590, the court or the enforcing agency shall order one or both parties to provide satisfactory health care coverage that is reasonable in cost and accessible to the child. An order for health care coverage under this subsection may include health care coverage provided by a public entity.

          (2) In addition to ordering health care coverage under subsection (1) of this section, the court or enforcing agency may order one or both parties to pay medical support for the child. Medical support ordered under this subsection must be reasonable in cost.

          (3) If the court or the enforcing agency finds that the parties cannot provide satisfactory health care coverage because satisfactory health care coverage that is reasonable in cost and accessible to the child is not available at the time the child support order is entered, the court or the enforcing agency:

          (a) Shall order one or both parties to provide satisfactory health care coverage that is reasonable in cost and accessible to the child when the coverage becomes available; and

          (b) May order that, until the court or enforcing agency determines that satisfactory health care coverage that is reasonable in cost and accessible to the child is available and modifies the order, one or both parties pay medical support that is reasonable in cost. The court or enforcing agency shall make written findings on whether to order the payment of medical support under this paragraph.

          (4) The cost of any amount ordered to provide satisfactory health care coverage and medical support under this section must be included in the child support calculation made under ORS 25.275.

          [(5) The court or enforcing agency may not order a party to pay medical support under this section if the party is eligible to receive medical assistance under ORS 414.032, or has a dependent child in the household who is eligible to receive medical assistance under ORS 414.032.]

          [(6)] (5) The Department of Justice shall adopt rules for determining the reasonableness of the cost of satisfactory health care coverage and of medical support for the purposes of this section, and for determining how the costs of providing health care coverage and medical support affect the total support obligation for a child under ORS 25.275.

 

          SECTION 56. ORS 65.800 is amended to read:

          65.800. For purposes of ORS 65.803 to 65.815:

          (1) “Hospital” means a hospital as defined in ORS 442.015 [(19)].

          (2) “Noncharitable entity” means any person or entity that is not a public benefit or religious corporation and is not wholly owned or controlled by one or more public benefit or religious corporations.

 

          SECTION 57. ORS 87.533 is amended to read:

          87.533. A lien created by ORS 87.503 shall not be enforced so as to interfere with:

          (1) Any assets or income allowed to the community spouse or dependent family member under 42 U.S.C. 1396r-5(d) or any rule of the Department of Human Services.

          (2) The priority given to the recovery of medical assistance payments under ORS 115.125 (1)(i) or (j) or other medical assistance claims under ORS 414.105 (2) and (3).

          (3) The eligibility of a person for medical assistance or entitlement to Medicaid assistance payments.

 

          SECTION 58. ORS 90.113 is amended to read:

          90.113. Residence in a [Department of Human Services] licensed program, facility or home described in ORS 430.306 to 430.375, 430.380, 430.385, 430.395, 430.397 to 430.401, 430.405 to 430.565, 430.570, 430.590, 443.400 to 443.455, 443.705 to 443.825 or 443.835 is not governed by this chapter.

 

          SECTION 59. ORS 90.440 is amended to read:

          90.440. (1) As used in this section:

          (a) “Group recovery home” means a place that provides occupants with shared living facilities and that meets the description of a group home under 42 U.S.C. 300x-25.

          (b) “Illegal drugs” includes controlled substances or prescription drugs:

          (A) For which the tenant does not have a valid prescription; or

          (B) That are used by the tenant in a manner contrary to the prescribed regimen.

          (c) “Peace officer” means a sheriff, constable, marshal or deputy or a member of a state or city police force.

          (2) Notwithstanding ORS 90.375 and 90.435, a group recovery home may terminate a tenancy and peaceably remove a tenant without complying with ORS 105.105 to 105.168 if the tenant has used or possessed alcohol or illegal drugs within the preceding seven days. For purposes of this subsection, the following are sufficient proof that a tenant has used or possessed alcohol or illegal drugs:

          (a) The tenant fails a test for alcohol or illegal drug use;

          (b) The tenant refuses a request made in good faith by the group recovery home that the tenant take a test for alcohol or illegal drug use; or

          (c) Any person has personally observed the tenant using or possessing alcohol or illegal drugs.

          (3) A group recovery home that undertakes the removal of a tenant under this section shall personally deliver to the tenant a written notice that:

          (a) Describes why the tenant is being removed;

          (b) Describes the proof that the tenant has used or possessed alcohol or illegal drugs within the seven days preceding delivery of the notice;

          (c) Specifies the date and time by which the tenant must move out of the group recovery home;

          (d) Explains that if the removal was wrongful or in bad faith the tenant may seek injunctive relief to recover possession under ORS 105.121 and may bring an action to recover monetary damages; and

          (e) Gives contact information for the local legal services office and for the Oregon State Bar’s Lawyer Referral Service, identifying those services as possible sources for free or reduced-cost legal services.

          (4) A written notice in substantially the following form meets the requirements of subsection (3) of this section:

______________________________________________________________________________

          This notice is to inform you that you must move out of ________ (insert address of group recovery home) by ________ (insert date and time that is not less than 24 hours after delivery of notice).

          The reason for this notice is ________ (specify use or possession of alcohol or illegal drugs, as applicable, and dates of occurrence).

          The proof of your use or possession is ________ (specify facts).

          If you did not use or possess alcohol or illegal drugs within the seven days before delivery of this notice, if this notice was given in bad faith or if your group recovery home has not substantially complied with ORS 90.440, you may be able to get a court to order the group recovery home to let you move back in. You may also be able to recover monetary damages.

          You may be eligible for free legal services at your local legal services office ________ (insert telephone number) or reduced fee legal services through the Oregon State Bar at 1-800-452-7636.

______________________________________________________________________________

          (5) Within the notice period, a group recovery home shall allow a tenant removed under this section to follow any emergency departure plan that was prepared by the tenant and approved by the group recovery home at the time the tenancy began. If the removed tenant does not have an emergency departure plan, a representative of the group recovery home shall offer to take the removed tenant to a public shelter, detoxification center or similar location if existing in the community.

          (6) The date and time for moving out specified in a notice under subsection (3) of this section must be at least 24 hours after the date and time the notice is delivered to the tenant. If the tenant remains on the group recovery home premises after the date and time for moving out specified in the notice, the tenant is a person remaining unlawfully in a dwelling as described in ORS 164.255 and not a person described in ORS 105.115. Only a peace officer may forcibly remove a tenant who remains on the group recovery home premises after the date and time specified for moving out.

          (7) A group recovery home that removes a tenant under this section shall send a copy of the notice described in subsection (3) of this section to the [Department of Human Services] Oregon Health Authority no later than 72 hours after delivering the notice to the tenant.

          (8) A tenant who is removed under subsection (2) of this section may obtain injunctive relief to recover possession and may recover an amount equal to the greater of actual damages or three times the tenant’s monthly rent if:

          (a) The group recovery home removed the tenant in bad faith or without substantially complying with this section; or

          (b) If removal is under subsection (2)(c) of this section, the removal was wrongful because the tenant did not use or possess alcohol or illegal drugs.

          (9) Notwithstanding ORS 12.125, a tenant who seeks to obtain injunctive relief to recover possession under ORS 105.121 must commence the action to seek relief not more than 90 days after the date specified in the notice for the tenant to move out.

          (10) In any court action regarding the removal of a tenant under this section, a group recovery home may present evidence that the tenant used or possessed alcohol or illegal drugs within seven days preceding the removal, whether or not the evidence was described in the notice required by subsection (3) of this section.

          (11) This section does not prevent a group recovery home from terminating a tenancy as provided by any other provision of this chapter and evicting a tenant as provided in ORS 105.105 to 105.168.

 

          SECTION 60. ORS 92.337 is amended to read:

          92.337. (1) The Real Estate Commissioner shall grant an exemption pursuant to this section if a subdivider or series partitioner submits on a form prepared by the commissioner, verification that:

          (a) The subdivision or series partition is recorded pursuant to ORS 92.010 to 92.190;

          (b) Each lot or parcel is situated on a surfaced roadway which, together with means for operation and maintenance, meets the standards of the governing body of the local jurisdiction and is either a concrete or asphalt surface road which has right of way and improvements, including curbs and necessary and adequate drainage structures, or a road which meets alternative standards of the governing body of the local jurisdiction;

          (c) The subdivision or series partition, where necessary, has drainage structures and fill designed to prevent flooding and approved by the appropriate governing body;

          (d) Energy sources and telephone services for normal domestic use are economically available to the subdivision or series partition and are ready for hookup for each lot or parcel at time of sale or lease;

          (e) Water is available for each lot or parcel at the time of sale or lease of each lot or parcel in quantity and quality for domestic use as determined by the [Department of Human Services] Oregon Health Authority;

          (f) A municipally owned disposal system, an individual or collective subsurface sewage disposal system to serve the lot or parcel, or a privately owned sewage disposal system is available for each lot or parcel at the time of sale or lease of each lot or parcel which meets the requirements of the Environmental Quality Commission;

          (g) A surety bond, or bonds, or other security or agreements to complete the improvements is provided by the subdivider or series partitioner to the city or county having jurisdiction so that all of the subdivision or series partition improvements committed by the subdivider or series partitioner to the city or county will be completed; and

          (h) Provisions, satisfactory to the commissioner, have been made for satisfaction of all liens and encumbrances existing against the subdivision or series partition which secure or evidence the payment of money.

          (2) A subdivision or series partition granted exemption under this section shall be exempt from the provisions of ORS 92.305 to 92.495 and 92.820 except ORS 92.375, 92.385, 92.425, 92.427, 92.430, 92.433, 92.455, 92.460, 92.465, 92.475, 92.485, 92.490 and 92.495.

          (3) The commissioner may withdraw the exemption provided by this section if the commissioner determines that the subdivider or series partitioner has provided false information or omitted to state material facts to obtain the exemption or has failed to comply with any provision to which the subdivider or series partitioner is subject under subsections (1) and (2) of this section.

          (4) In the event that any provision under subsection (1) of this section is not or cannot be satisfied and without invoking the power granted under subsection (3) of this section, the commissioner and the subdivider or series partitioner may mutually agree in writing upon a written disclosure of the condition that shall be provided to any prospective purchaser prior to the sale or lease of any interest in the subdivision or series partition to carry out the public policy stated in ORS 92.313.

          (5) The form required by subsection (1) of this section shall be accompanied by a filing fee of $100 plus $10 for each lot, parcel or interest in the subdivision or series partition, with a maximum fee of $500.

          (6) For purposes of verification by the subdivider or series partitioner under subsection (1)(b), (c) and (g) of this section, a copy of the conditions imposed by the appropriate governing body will be sufficient.

 

          SECTION 61. ORS 93.270, as amended by section 16, chapter 100, Oregon Laws 2007, is amended to read:

          93.270. (1) A person conveying or contracting to convey fee title to real property may not include in an instrument for that purpose a provision:

          (a) Restricting the use of the real property by any person or group of persons by reason of race, color, religion, sex, sexual orientation, national origin or disability.

          (b) Restricting the use of the real property by any home or facility that is licensed [by or under the authority of the department] under ORS 443.400 to 443.455 or 443.705 to 443.825 to provide residential care alone or in conjunction with treatment or training or a combination thereof.

          (2) Any provision in an instrument executed in violation of subsection (1) of this section is void and unenforceable.

          (3) An instrument that contains a provision restricting the use of real property in a manner listed in subsection (1)(b) of this section does not give rise to any public or private right of action to enforce the restriction.

          (4)(a) An instrument that contains a provision restricting the use of real property by requiring roofing materials with a lower fire rating than that required in the state building code established under ORS chapter 455 does not give rise to any public or private right of action to enforce the restriction in an area determined by a local jurisdiction as a wildfire hazard zone. Prohibitions on public or private right of action under this paragraph are limited solely to considerations of fire rating.

          (b) As used in this subsection, “wildfire hazard zones” are areas that are legally declared by a governmental agency having jurisdiction over the area to have special hazards caused by a combination of combustible natural fuels, topography and climatic conditions that result in a significant hazard of catastrophic fire over relatively long periods each year. Wildfire hazard zones shall be determined using criteria established by the State Forestry Department.

 

          SECTION 62. ORS 97.210 is amended to read:

          97.210. The body of any person who died of smallpox, diphtheria, scarlet fever or other disease that the [Department of Human Services] Oregon Health Authority, by rule, may prescribe, shall not be subject to the provisions of ORS 97.170 to 97.200.

 

          SECTION 63. ORS 97.450 is amended to read:

          97.450. (1)(a) Whenever any cemetery that is within the limits of any county, city or town has been abandoned, or it is desirable to abandon such cemetery, the governing body of any county, if the cemetery is owned by the county, or the corporate authorities of the city or town, if the cemetery is owned by the city or town, or the trustees or directors, if the cemetery is owned by an association or corporation, may order that such burial ground be discontinued, have the remains of all persons interred in the cemetery moved to some other suitable place and provide for the removal and reerection of all stones and monuments marking said graves. Each removal must be made in an appropriate manner and in accordance with the directions of the Director of [Human Services] the Oregon Health Authority. Prior to any removal authorized under this section, written notice must be given to the family, or next of kin of the deceased, if known, and if unknown, notice of the removal shall be published for at least four successive weeks in a newspaper of general circulation in the county in which the cemetery is located and twice in a newspaper with statewide circulation.

          (b) Any removal and the costs of the proceedings under this section shall be at the expense of the county, city or town, individual, corporation or association owning the cemetery to be moved.

          (2) Notwithstanding subsection (1)(a) of this section, a cemetery or burial ground containing human remains that were interred before February 14, 1909, may not be discontinued or declared abandoned or have remains removed from the burial ground or cemetery without prior notice to and comment by the Oregon Commission on Historic Cemeteries. When commenting on a request to discontinue or declare abandoned a cemetery or burial ground, the commission shall consider:

          (a) The listing of the cemetery or burial ground under ORS 97.782;

          (b) The historic significance of the cemetery or graves included in the request; and

          (c) The findings of any archaeological survey of the cemetery or burial ground.

 

          SECTION 64. ORS 97.977 is amended to read:

          97.977. (1)(a) The [Department of Human Services] Oregon Health Authority may allow an organ procurement organization to establish a donor registry.

          (b) Only one donor registry may be established within this state.

          (c) The donor registry shall comply with subsections (3) and (4) of this section.

          (2) The Department of Transportation shall:

          (a) Cooperate with a person who administers the donor registry established under subsection (1) of this section for the purpose of transferring to the donor registry all relevant information regarding a donor’s making, amending or revoking an anatomical gift.

          (b) When requested by the organ procurement organization that has established the donor registry in this state, the department shall electronically transfer to the organ procurement organization the name, address, birthdate and donor designation listed on the driver license or identification card of a person designated as a donor. The organ procurement organization shall treat the information transferred from the department as confidential and may use the information only to expedite the making of anatomical gifts authorized by the donor.

          (3) The donor registry must:

          (a) Allow a donor or other person authorized under ORS 97.955 to include on the donor registry a statement or symbol that the donor has made, amended or revoked an anatomical gift;

          (b) Be accessible to a procurement organization to allow the procurement organization to obtain relevant information on the donor registry to determine, at or near death of the donor or a prospective donor, whether the donor or prospective donor has made, amended or revoked an anatomical gift; and

          (c) Be accessible for purposes of this subsection seven days a week on a 24-hour basis.

          (4) Personally identifiable information on the donor registry about a donor or prospective donor may not be used or disclosed without the express consent of the donor, prospective donor or person who made the anatomical gift for any purpose other than to determine, at or near death of the donor or prospective donor, whether the donor or prospective donor has made, amended or revoked an anatomical gift.

 

          SECTION 65. ORS 105.580 is amended to read:

          105.580. (1) Except as provided in subsection (3) of this section, if the existence of the nuisance is established in the action, an order of abatement shall be entered as part of the general judgment in the case.

          (2) The order of abatement may direct the effectual closing of the premises, building or place against its use for any purpose, and so keeping it closed for a period of one year, unless sooner released. The court shall not include provisions for the closing of the premises under the provisions of this subsection unless that relief is specifically requested in the complaint.

          (3) The court, if satisfied of an owner’s good faith, shall enter no order of abatement as to that owner if the court finds that the owner:

          (a) Had no knowledge of the existence of the nuisance or has been making reasonable efforts to abate the nuisance;

          (b) Has not been guilty of any contempt of court in the proceedings; and

          (c) Will make best efforts to immediately abate any nuisance that may exist and prevent it from being a nuisance for a period of one year thereafter.

          (4) Except for an order of abatement entered based on the manufacture of a controlled substance, if an order of abatement has been entered and an owner subsequently meets the requirements of this section, the order of abatement shall be canceled as to that owner.

          (5) If the court enters an order under this section on the basis that the property was used for the manufacture of a controlled substance, the court shall send a copy of the order to the Director of [Human Services] the Oregon Health Authority. The director or the director’s designee shall declare the property to be an illegal drug manufacturing site for purposes of ORS 453.855 to 453.912. An order of the court under this section shall not be canceled until the director or the director’s designee determines the property to be fit for use. Upon determining the property to be fit for use, the director or designee shall notify the court, which shall cancel the abatement order.

 

          SECTION 65a. ORS 106.045 is amended to read:

          106.045. (1) In addition to any other fees provided by law, the county clerk shall collect a fee of $25 upon the application for a marriage license.

          (2) The county clerk shall regularly pay over to the [Director of Human Services] Oregon Health Authority all moneys collected under subsection (1) of this section to be credited to the Domestic Violence Fund pursuant to ORS 409.300.

 

          SECTION 65b. Section 5, chapter 99, Oregon Laws 2007, is amended to read:

          Sec. 5. (1) The [Department of Human Services] Oregon Health Authority shall prepare forms entitled:

          (a) “Declaration of Domestic Partnership” meeting the requirements of section 6, chapter 99, Oregon Laws 2007 [of this 2007 Act]; and

          (b) “Certificate of Registered Domestic Partnership.”

          (2) The [department] authority shall distribute the forms to each county clerk. The [department] authority and each county clerk shall make the Declaration of Domestic Partnership forms available to the public.

 

          SECTION 65c. Section 7, chapter 99, Oregon Laws 2007, is amended to read:

          Sec. 7. (1) In addition to any other fees provided by law, the county clerk shall collect a fee of $25 for registering a Declaration of Domestic Partnership.

          (2) The county clerk shall regularly pay over to the [Director of Human Services] Oregon Health Authority all moneys collected under subsection (1) of this section to be credited to the Domestic Violence Fund pursuant to ORS 409.300.

 

          SECTION 66. ORS 106.081 is amended to read:

          106.081. When the county clerk issues a marriage license, the county clerk shall also give to the licensees a pamphlet describing the medical condition known as fetal alcohol syndrome, its causes and its effects. The pamphlet shall be provided to the counties by the [Department of Human Services] Oregon Health Authority under ORS 431.825 for distribution under this section.

 

          SECTION 67. ORS 109.094 is amended to read:

          109.094. Upon the paternity of a child being established in the proceedings, the father shall have the same rights as a father who is or was married to the mother of the child. The clerk of the court shall certify the fact of paternity to the Center for Health Statistics of the [Department of Human Services] Oregon Health Authority, and the Center for Health Statistics shall prepare a new birth certificate for the child.

 

          SECTION 68. ORS 109.096 is amended to read:

          109.096. (1) When the paternity of a child has not been established under ORS 109.070, the putative father is entitled to reasonable notice in adoption or other court proceedings concerning the custody of the child, except for juvenile court proceedings, if the petitioner knows, or by the exercise of ordinary diligence should have known:

          (a) That the child resided with the putative father at any time during the 60 days immediately preceding the initiation of the proceeding, or at any time since the child’s birth if the child is less than 60 days old when the proceeding is initiated; or

          (b) That the putative father repeatedly has contributed or tried to contribute to the support of the child during the year immediately preceding the initiation of the proceeding, or during the period since the child’s birth if the child is less than one year old when the proceeding is initiated.

          (2) Except as provided in subsection (3) or (4) of this section, a verified statement of the mother of the child or of the petitioner, or an affidavit of another person with knowledge of the facts, filed in the proceeding and asserting that the child has not resided with the putative father, as provided in subsection (1)(a) of this section, and that the putative father has not contributed or tried to contribute to the support of the child, as provided in subsection (1)(b) of this section, is sufficient proof to enable the court to grant the relief sought without notice to the putative father.

          (3) The putative father is entitled to reasonable notice in a proceeding for the adoption of the child if notice of the initiation of filiation proceedings as required by ORS 109.225 was on file with the Center for Health Statistics of the [Department of Human Services] Oregon Health Authority prior to the child’s being placed in the physical custody of a person or persons for the purpose of adoption by them. If the notice of the initiation of filiation proceedings was not on file at the time of the placement, the putative father is barred from contesting the adoption proceeding.

          (4) Except as otherwise provided in subsection (3) of this section, the putative father is entitled to reasonable notice in court proceedings concerning the custody of the child, other than juvenile court proceedings, if notice of the initiation of filiation proceedings as required by ORS 109.225 was on file with the Center for Health Statistics prior to the initiation of the proceedings.

          (5) Notice under this section is not required to be given to a putative father who was a party to filiation proceedings under ORS 109.125 that were dismissed or resulted in a finding that he was not the father of the child.

          (6) The notice required under this section shall be given in the manner provided in ORS 109.330.

          (7) No notice given under this section need disclose the name of the mother of the child.

          (8) A putative father has the primary responsibility to protect his rights, and nothing in this section shall be used to set aside an act of a permanent nature including, but not limited to, adoption or termination of parental rights, unless the father establishes within one year after the entry of the final judgment or order fraud on the part of a petitioner in the proceeding with respect to matters specified in subsections (1) to (5) of this section.

 

          SECTION 69. ORS 109.225 is amended to read:

          109.225. (1) After filing the petition, the petitioner shall cause the Center for Health Statistics of the [Department of Human Services] Oregon Health Authority to be served by mail with a notice setting forth the court in which the petition was filed, the date of the filing therein, the case number, the full name and address of the child, the date and place of the child’s birth, or if the child is not yet born, the date and place of the child’s conception and the probable date of the child’s birth, the full names and addresses of the child’s alleged parents, and the names and addresses of the petitioner and of the respondents in the proceedings.

          (2) The Center for Health Statistics shall file immediately the notice, or a copy thereof, with the record of the birth of the child or in the same manner as its filing of records of birth if the center does not have a record of the birth. The center shall only provide the information contained in the notice to persons whose names appear in the notice or to persons or agencies showing a legitimate interest in the parent-child relationship including, but not limited to, parties to adoption, juvenile court or heirship proceedings.

 

          SECTION 70. ORS 109.251 is amended to read:

          109.251. As used in ORS 109.250 to 109.262, “blood tests” includes any test for genetic markers to determine paternity of a type generally acknowledged as reliable by accreditation bodies designated by the [Department of Human Services] Oregon Health Authority in compliance with the United States Secretary of Health and Human Services, and performed by a laboratory approved by such accreditation body. “Blood tests” includes but is not limited to the Human Leucocyte Antigen Test, the deoxyribonucleic acid test and any test that extracts genetic material from any human tissue.

 

          SECTION 71. ORS 109.675 is amended to read:

          109.675. (1) A minor 14 years of age or older may obtain, without parental knowledge or consent, outpatient diagnosis or treatment of a mental or emotional disorder or a chemical dependency, excluding methadone maintenance, by a physician licensed by the Oregon Medical Board, a psychologist licensed by the State Board of Psychologist Examiners, a nurse practitioner registered by the Oregon State Board of Nursing, a clinical social worker licensed by the State Board of Clinical Social Workers or a community mental health [and developmental disabilities] program established and operated pursuant to ORS 430.620 when approved to do so by the [Department of Human Services] Oregon Health Authority pursuant to rule.

          (2) However, the person providing treatment shall have the parents of the minor involved before the end of treatment unless the parents refuse or unless there are clear clinical indications to the contrary, which shall be documented in the treatment record. The provisions of this subsection do not apply to:

          (a) A minor who has been sexually abused by a parent; or

          (b) An emancipated minor, whether emancipated under the provisions of ORS 109.510 and 109.520 or 419B.550 to 419B.558 or, for the purpose of this section only, emancipated by virtue of having lived apart from the parents or legal guardian while being self-sustaining for a period of 90 days prior to obtaining treatment as provided by this section.

 

          SECTION 72. ORS 109.680 is amended to read:

          109.680. A physician, psychologist, nurse practitioner, licensed clinical social worker or community mental health [and developmental disabilities] program described in ORS 109.675 may advise the parent or parents or legal guardian of any minor described in ORS 109.675 of the diagnosis or treatment whenever the disclosure is clinically appropriate and will serve the best interests of the minor’s treatment because the minor’s condition has deteriorated or the risk of a suicide attempt has become such that inpatient treatment is necessary, or the minor’s condition requires detoxification in a residential or acute care facility. If such disclosure is made, the physician, psychologist, nurse practitioner, licensed clinical social worker or community mental health [and developmental disabilities] program shall not be subject to any civil liability for advising the parent, parents or legal guardian without the consent of the minor.

 

          SECTION 73. ORS 109.685 is amended to read:

          109.685. A physician, psychologist, nurse practitioner, licensed clinical social worker or community mental health [and developmental disabilities] program described in ORS 109.675 who in good faith provides diagnosis or treatment to a minor as authorized by ORS 109.675 shall not be subject to any civil liability for providing such diagnosis or treatment without consent of the parent or legal guardian of the minor.

 

          SECTION 74. ORS 109.695 is amended to read:

          109.695. For the purpose of carrying out the policy and intent of ORS 109.675 to 109.695 while taking into account the respective rights of minors at risk of chemical dependency or mental or emotional disorder and the rights and interests of parents or legal guardians of such minors, the [Department of Human Services] Oregon Health Authority shall adopt rules for the implementation of ORS 109.675 to 109.695 by community mental health [and developmental disabilities] programs approved to do so. Such rules shall provide for the earliest feasible involvement of the parents or guardians in the treatment plan consistent with clinical requirements of the minor.

 

          SECTION 75. ORS 110.318 is amended to read:

          110.318. In a proceeding to establish, enforce or modify a support order or to determine parentage, a tribunal of this state may exercise personal jurisdiction over a nonresident individual if:

          (1) The individual is personally served with notice within this state;

          (2) The individual submits to the jurisdiction of this state by consent, by entering a general appearance or by filing a responsive document having the effect of waiving any contest to personal jurisdiction;

          (3) The individual resided with the child in this state;

          (4) The individual resided in this state and provided prenatal expenses or support for the child;

          (5) The child resides in this state as a result of the acts or directives of the individual;

          (6) The individual engaged in sexual intercourse in this state and the child may have been conceived by that act of intercourse;

          (7) The individual asserted parentage in the registry maintained in this state by the Center for Health Statistics of the [Department of Human Services] Oregon Health Authority by filing a voluntary acknowledgment of paternity under ORS 109.070; or

          (8) There is any other basis consistent with the Constitutions of the State of Oregon and the United States for the exercise of personal jurisdiction.

 

          SECTION 76. ORS 113.085 is amended to read:

          113.085. (1) Except as provided in subsection (2) of this section, upon the filing of the petition, if there is no will or there is a will and it has been proved, the court shall appoint a qualified person it finds suitable as personal representative, giving preference in the following order:

          (a) To the executor named in the will.

          (b) To the surviving spouse of the decedent or the nominee of the surviving spouse of the decedent.

          (c) To the nearest of kin of the decedent or the nominee of the nearest of kin of the decedent.

          (d) To the Director of Human Services or a designee, if it appears the decedent received public assistance pursuant to ORS chapter 411 [or 414 and that such assistance is a claim against the estate].

          (e) To the Director of the Oregon Health Authority or a designee, if it appears the decedent received medical assistance pursuant to ORS chapter 414.

          [(e)] (f) To the Department of Veterans’ Affairs, if the decedent was a protected person under ORS 406.050 (7), and the department has joined in the petition for such appointment.

          [(f)] (g) To any other person.

          (2) Except as provided in subsection (3) of this section, the court shall appoint the Department of State Lands as personal representative if it appears that the decedent died wholly intestate and without known heirs. The Attorney General shall represent the Department of State Lands in the administration of the estate. Any funds received by the Department of State Lands in the capacity of personal representative may be deposited in accounts, separate and distinct from the General Fund, established with the State Treasurer. Interest earned by such account shall be credited to that account.

          (3) The court may appoint a person other than the Department of State Lands to administer the estate of a decedent who died wholly intestate and without known heirs if the person filing a petition under ORS 113.035 attaches written authorization from an estate administrator of the Department of State Lands appointed under ORS 113.235 approving the filing of the petition by the person. Except as provided by rule adopted by the Director of the Department of State Lands, an estate administrator may consent to the appointment of another person to act as personal representative only if it appears after investigation that the estate is insolvent.

 

          SECTION 77. ORS 113.105 is amended to read:

          113.105. (1) Unless a testator provides in a will that no bond shall be required of the executor of the estate, or unless the personal representative is the sole heir or devisee or is the Department of State Lands, [or is the Director of Human Services or a designee, or is] the Department of Veterans’ Affairs, the Director of Human Services or a designee or the Director of the Oregon Health Authority or a designee, the personal representative may not act nor shall letters be issued to the personal representative until the personal representative files with the clerk of the court a bond. The bond shall be executed by a surety company authorized to transact surety business in this state, or by one or more sufficient personal sureties approved by the court. A personal surety must be a resident of this state. The court may, in its discretion, require a bond notwithstanding any provision in a will that no bond is required. The bond shall be for the security and benefit of all interested persons and shall be conditioned upon the personal representative faithfully performing the duties of the trust.

          (2) The amount of the bond set by the court shall be adequate to protect interested persons, but in no event shall it be less than $1,000. In setting the amount of the bond the court shall consider:

          (a) The nature, liquidity and apparent value of the assets of the estate.

          (b) The anticipated income during administration.

          (c) The probable indebtedness and taxes.

          (3) Nothing in this section affects the provisions of ORS 709.240, relating to a trust company acting as personal representative.

          (4) Notwithstanding any other provisions of this section, a court may, in its discretion, waive the requirement of a bond if all devisees and heirs known to the court agree in writing that the requirement be waived and the signed agreement is filed with the court at the time of filing of the petition for the appointment of a personal representative.

 

          SECTION 78. ORS 113.145 is amended to read:

          113.145. (1) Upon appointment a personal representative shall deliver or mail to the devisees, heirs and the persons described in ORS 113.035 (8) and (9) who were required to be named in the petition for appointment of a personal representative, at the addresses therein shown, information that shall include:

          (a) The title of the court in which the estate proceeding is pending and the clerk’s file number;

          (b) The name of the decedent and the place and date of the death of the decedent;

          (c) Whether or not a will of the decedent has been admitted to probate;

          (d) The name and address of the personal representative and the attorney of the personal representative;

          (e) The date of the appointment of the personal representative;

          (f) A statement advising the devisee, heir or other interested person that the rights of the devisee, heir or other interested person may be affected by the proceeding and that additional information may be obtained from the records of the court, the personal representative or the attorney for the personal representative;

          (g) If information under this section is required to be delivered or mailed to a person described in ORS 113.035 (8), a statement that the rights of the person in the estate may be barred unless the person proceeds as provided in ORS 113.075 within four months of the delivery or mailing of the information; and

          (h) If information under this section is required to be delivered or mailed to a person described in ORS 113.035 (9), a statement that the rights of the person in the estate may be barred unless the person proceeds as provided in ORS 112.049 within four months of the delivery or mailing of the information.

          (2) If the personal representative is a devisee, heir or other interested person named in the petition the personal representative is not required to deliver or mail the information under this section to the personal representative.

          (3) The failure of the personal representative to give information under this section is a breach of duty to the persons concerned, but does not affect the validity of appointment, duties or powers or the exercise of duties or powers.

          (4) Within 30 days after the date of appointment a personal representative shall cause to be filed in the estate proceeding proof of the delivery or mailing required by this section or a waiver of notice as provided under ORS 111.225. The proof shall include a copy of the information delivered or mailed and the names of the persons to whom it was delivered or mailed.

          (5) If before the filing of the final account the personal representative has actual knowledge that the petition did not include the name and address of any person described in ORS 113.035 (4), (5), (7), (8) or (9), the personal representative shall:

          (a) Make reasonable efforts under the circumstances to ascertain each of those names and addresses;

          (b) Promptly deliver or mail information as described in subsection (1) of this section to each of those persons located after the filing of the petition and before the filing of the final account; and

          (c) File in the estate proceeding, on or before filing the final account under ORS 116.083, proof of compliance with this subsection or a waiver of notice as provided under ORS 111.225.

          (6) Within 30 days after the appointment of a personal representative, the personal representative must mail or deliver the information specified in subsection (1) of this section and a copy of the death certificate of the decedent to the Department of Human Services and the Oregon Health Authority.

 

          SECTION 79. ORS 114.525 is amended to read:

          114.525. An affidavit filed under ORS 114.515 shall:

          (1) State the name, age, domicile, post-office address and Social Security number of the decedent;

          (2) State the date and place of the decedent’s death. A certified copy of the death certificate shall be attached to the affidavit;

          (3) Describe and state the fair market value of all property in the estate, including a legal description of any real property;

          (4) State that no application or petition for the appointment of a personal representative has been granted in Oregon;

          (5) State whether the decedent died testate or intestate, and if the decedent died testate, the will shall be attached to the affidavit;

          (6) List the heirs of the decedent and the last address of each heir as known to the affiant, and state that a copy of the affidavit showing the date of filing and a copy of the will, if the decedent died testate, will be delivered to each heir or mailed to the heir at the last-known address;

          (7) If the decedent died testate, list the devisees of the decedent and the last address of each devisee as known to the affiant and state that a copy of the will and a copy of the affidavit showing the date of filing will be delivered to each devisee or mailed to the devisee at the last-known address;

          (8) State the interest in the property described in the affidavit to which each heir or devisee is entitled and the interest, if any, that will escheat;

          (9) State that reasonable efforts have been made to ascertain creditors of the estate. List the expenses of and claims against the estate remaining unpaid or on account of which the affiant or any other person is entitled to reimbursement from the estate, including the known or estimated amounts thereof and the names and addresses of the creditors as known to the affiant, and state that a copy of the affidavit showing the date of filing will be delivered to each creditor who has not been paid in full or mailed to the creditor at the last-known address;

          (10) Separately list the name and address of each person known to the affiant to assert a claim against the estate that the affiant disputes and the known or estimated amount thereof and state that a copy of the affidavit showing the date of filing will be delivered to each such person or mailed to the person at the last-known address;

          (11) State that a copy of the affidavit showing the date of filing will be mailed or delivered to the Department of Human Services and the Oregon Health Authority;

          (12) State that claims against the estate not listed in the affidavit or in amounts larger than those listed in the affidavit may be barred unless:

          (a) A claim is presented to the affiant within four months of the filing of the affidavit at the address stated in the affidavit for presentment of claims; or

          (b) A personal representative of the estate is appointed within the time allowed under ORS 114.555; and

          (13) If the affidavit lists one or more claims that the affiant disputes, state that any such claim may be barred unless:

          (a) A petition for summary determination is filed within four months of the filing of the affidavit; or

          (b) A personal representative of the estate is appointed within the time allowed under ORS 114.555.

 

          SECTION 80. ORS 114.535 is amended to read:

          114.535. (1) Any person indebted to the decedent or having possession of personal property belonging to the estate, to whom a certified copy of the affidavit filed under ORS 114.515 is delivered by the affiant on or after the 10th day following the filing of the affidavit, shall pay, transfer or deliver the personal property to the affiant. Any person who has received property of the decedent under ORS 446.616, 722.262 or 803.094, or any similar statute providing for the transfer of property of an estate which is not being probated shall pay, transfer or deliver the property to the affiant if the person would be required to pay, transfer or deliver the property to a personal representative of the estate. The transferor is discharged and released from any liability or responsibility for the transfer in the same manner and with the same effect as if the property had been transferred, delivered or paid to a personal representative of the estate of the decedent.

          (2) A transfer agent of any corporate security registered in the name of the decedent shall change the registered ownership on the books of the corporation to the person entitled thereto on presentation of a certified copy of the affidavit filed under ORS 114.515.

          (3) If a person to whom an affidavit is delivered refuses to pay, deliver or transfer any personal property to the affiant or the person entitled to the property as disclosed in the affidavit filed under ORS 114.515, the property may be recovered or its payment, delivery or transfer compelled upon proof of the transferee’s entitlement in a proceeding brought for the purpose by or on behalf of the transferee.

          (4) If the [affidavit was signed by the Director of Human Services or a designee of the director, the director or the designee] Director of Human Services, the designee of the Director of Human Services, the Director of the Oregon Health Authority or the designee of the Director of the Oregon Health Authority signs the affidavit, the Director of Human Services, the designee of the Director of Human Services, the Director of the Oregon Health Authority or the designee of the Director of the Oregon Health Authority may certify a copy of the affidavit for the purposes described in subsection (1) or (2) of this section.

 

          SECTION 81. ORS 115.125 is amended to read:

          115.125. (1) If the applicable assets of the estate are insufficient to pay all expenses and claims in full, the personal representative shall make payment in the following order:

          (a) Support of spouse and children, subject to the limitations imposed by ORS 114.065.

          (b) Expenses of administration.

          (c) Expenses of a plain and decent funeral and disposition of the remains of the decedent.

          (d) Debts and taxes with preference under federal law.

          (e) Reasonable and necessary medical and hospital expenses of the last illness of the decedent, including compensation of persons attending the decedent.

          (f) Taxes with preference under the laws of this state that are due and payable while possession of the estate of the decedent is retained by the personal representative.

          (g) Debts owed employees of the decedent for labor performed within 90 days immediately preceding the date of death of the decedent.

          (h) Child support arrearages.

          (i) The claim of the Oregon Health Authority for the amount of the state’s monthly contribution to the federal government to defray the costs of outpatient prescription drug coverage provided to a person who is eligible for Medicare Part D prescription drug coverage and who receives benefits under the state medical assistance program or Title XIX of the Social Security Act.

          [(i)] (j) The claim of the Department of Human Services for the net amount of assistance paid to or for the decedent, in the following order:

          [(A) The amount of the state’s monthly contribution to the federal government to defray the costs of outpatient prescription drug coverage provided to a person who is eligible for Medicare Part D prescription drug coverage and who receives benefits under the state medical assistance program or Title XIX of the Social Security Act;]

          [(B)] (A) Public assistance, as defined in ORS 411.010, funded entirely by moneys from the General Fund; and

          [(C)] (B) Public assistance, as defined in ORS 411.010, funded by a combination of state and federal funds[; and].

          [(D)] (k) The claim of the Department of Human Services or the Oregon Health Authority for the care [Care] and maintenance of the decedent at a state institution, as provided in ORS 179.610 to 179.770.

          [(j)] (L) The claim of the Department of Corrections for care and maintenance of any decedent who was at a state institution to the extent provided in ORS 179.610 to 179.770.

          [(k)] (m) All other claims against the estate.

          (2) If the applicable assets of the estate are insufficient to pay in full all expenses or claims of any one class specified in subsection (1) of this section, each expense or claim of that class shall be paid only in proportion to the amount thereof.

 

          SECTION 82. ORS 116.093 is amended to read:

          116.093. (1) Upon filing the final account and petition for a judgment of distribution, the personal representative shall fix a time for filing objections thereto in a notice thereof. Not less than 20 days before the time fixed in the notice, the personal representative shall cause a copy of the notice to be mailed to:

          (a) Each heir at the last-known address of the heir, if the decedent died intestate.

          (b) Each devisee at the last-known address of the devisee, if the decedent died testate.

          (c) Each creditor who has not received payment in full and whose claim has not otherwise been barred.

          (d) Any other person known to the personal representative to have or to claim an interest in the estate being distributed.

          (2) The notice need not be mailed to the personal representative.

          (3) Proof of the mailing to those persons entitled to notice shall be filed in the estate proceeding at or before approval of the final account.

          (4) If the Department of Human Services has presented a claim under ORS chapter 411 [or 414 or ORS 416.310 to 416.340, 416.510 to 416.990 or 417.010 to 417.080] or ORS 416.310 to 416.340 or 417.010 to 417.080, or the Oregon Health Authority has presented a claim under ORS chapter 414 or ORS 416.310 to 416.340 or 416.510 to 416.990, or the Department of Corrections [or the authorized agent of the Department of Corrections] has presented a claim under ORS 179.620 (3), and the claim has not been settled or paid in full, the personal representative shall mail to the appropriate department a copy of the final account at the same time, and shall make proof of the mailing in the same manner, as the notice provided for in this section.

 

          SECTION 83. ORS 116.253 is amended to read:

          116.253. (1) Within 10 years after the death of a decedent whose estate escheated in whole or in part to the state, or within eight years after the entry of a judgment or order escheating property of an estate to the state, a claim may be made for the property escheated, or the proceeds thereof, by or on behalf of a person not having actual knowledge of the escheat or by or on behalf of a person who at the time of the escheat was unable to prove entitlement to the escheated property.

          (2) The claim shall be made by a petition filed with the Director of the Department of State Lands. The claim is considered a contested case as provided in ORS 183.310 and there is the right of judicial review as provided in ORS 183.480. The petition must include a declaration under penalty of perjury in the form required by ORCP 1 E and shall state:

          (a) The age and place of residence of the claimant by whom or on whose behalf the petition is filed;

          (b) That the claimant lawfully is entitled to the property or proceeds, briefly describing the property or proceeds;

          (c) That at the time the property escheated to the state the claimant had no knowledge or notice thereof or was unable to prove entitlement to the escheated property and has subsequently acquired new evidence of that entitlement;

          (d) That the claimant claims the property or proceeds as an heir or devisee or as the personal representative of the estate of an heir or devisee, setting forth the relationship, if any, of the claimant to the decedent who at the time of death was the owner;

          (e) That 10 years have not elapsed since the death of the decedent, or that eight years have not elapsed since the entry of the judgment or order escheating the property to the state; and

          (f) If the petition is not filed by the claimant, the status of the petitioner.

          (3) If it is determined that the claimant is entitled to the property or the proceeds thereof, the Director of the Department of State Lands shall deliver the property to the petitioner, subject to and charged with any tax on the property and the costs and expenses of the state in connection therewith.

          (4) If the person whose property escheated or reverted to the state was at any time an inmate of a state institution in Oregon for persons with mental illness or mental retardation, the reasonable unpaid cost[, as determined by the Department of Human Services,] of the care and maintenance of the person while a ward of the institution, regardless of when the cost was incurred, may be deducted from, or, if necessary, be offset in full against, the amount of the escheated property. The reasonable unpaid cost of care and maintenance shall be determined by:

          (a) The Department of Human Services for patients of the Eastern Oregon Training Center; and

          (b) The Oregon Health Authority for patients of the Blue Mountain Recovery Center and the Oregon State Hospital.

          (5) For the purposes of this section, the death of the decedent is presumed to have occurred on the date shown in the decedent’s death certificate or in any other similar document issued by the jurisdiction in which the death occurred or issued by an agency of the federal government.

 

          SECTION 84. ORS 124.050 is amended to read:

          124.050. As used in ORS 124.050 to 124.095:

          (1) “Abuse” means one or more of the following:

          (a) Any physical injury caused by other than accidental means, or which appears to be at variance with the explanation given of the injury.

          (b) Neglect which leads to physical harm through withholding of services necessary to maintain health and well-being.

          (c) Abandonment, including desertion or willful forsaking of an elderly person or the withdrawal or neglect of duties and obligations owed an elderly person by a caretaker or other person.

          (d) Willful infliction of physical pain or injury.

          (e) An act that constitutes a crime under ORS 163.375, 163.405, 163.411, 163.415, 163.425, 163.427, 163.465 or 163.467.

          (f) Wrongfully taking or appropriating money or property, or knowingly subjecting an elderly person or person with a disability to alarm by conveying a threat to wrongfully take or appropriate money or property, which threat reasonably would be expected to cause the person to believe that the threat will be carried out.

          (2) “Elderly person” means any person 65 years of age or older who is not subject to the provisions of ORS 441.640 to 441.665.

          (3) “Law enforcement agency” means:

          (a) Any city or municipal police department.

          (b) Any county sheriff’s office.

          (c) The Oregon State Police.

          (d) Any district attorney.

          (4) “Public or private official” means:

          (a) Physician, naturopathic physician, osteopathic physician, chiropractor or podiatric physician and surgeon, including any intern or resident.

          (b) Licensed practical nurse, registered nurse, nurse’s aide, home health aide or employee of an in-home health service.

          (c) Employee of the Department of Human Services[, county health department or community mental health and] or community developmental disabilities program.

          (d) Employee of the Oregon Health Authority, county health department or community mental health program.

          [(d)] (e) Peace officer.

          [(e)] (f) Member of the clergy.

          [(f)] (g) Licensed clinical social worker.

          [(g)] (h) Physical, speech or occupational therapists.

          [(h)] (i) Senior center employee.

          [(i)] (j) Information and referral or outreach worker.

          [(j)] (k) Licensed professional counselor or licensed marriage and family therapist.

          [(k)] (L) Any public official who comes in contact with elderly persons in the performance of the official’s official duties.

          [(L)] (m) Firefighter or emergency medical technician.

 

          SECTION 85. ORS 125.060 is amended to read:

          125.060. (1) The notices required by this section must be given to all persons whose identities and addresses can be ascertained in the exercise of reasonable diligence by the person required to give the notice.

          (2) Notice of the filing of a petition for the appointment of a fiduciary or entry of other protective order must be given by the petitioner to the following persons:

          (a) The respondent, if the respondent has attained 14 years of age.

          (b) The spouse, parents and adult children of the respondent.

          (c) If the respondent does not have a spouse, parent or adult child, the person or persons most closely related to the respondent.

          (d) Any person who is cohabiting with the respondent and who is interested in the affairs or welfare of the respondent.

          (e) Any person who has been nominated as fiduciary or appointed to act as fiduciary for the respondent by a court of any state, any trustee for a trust established by or for the respondent, any person appointed as a health care representative under the provisions of ORS 127.505 to 127.660 and any person acting as attorney-in-fact for the respondent under a power of attorney.

          (f) If the respondent is a minor, the person who has exercised principal responsibility for the care and custody of the respondent during the 60-day period before the filing of the petition.

          (g) If the respondent is a minor and has no living parents, any person nominated to act as fiduciary for the minor in a will or other written instrument prepared by a parent of the minor.

          (h) If the respondent is receiving moneys paid or payable by the United States through the Department of Veterans Affairs, a representative of the United States Department of Veterans Affairs regional office that has responsibility for the payments to the protected person.

          (i) If the respondent is receiving moneys paid or payable for public assistance provided under ORS chapter 411 [or 414] by the State of Oregon through the Department of Human Services, a representative of the department.

          (j) If the respondent is receiving moneys paid or payable for medical assistance provided under ORS chapter 414 by the State of Oregon through the Oregon Health Authority, a representative of the authority.

          [(j)] (k) If the respondent is committed to the legal and physical custody of the Department of Corrections, the Attorney General and the superintendent or other officer in charge of the facility in which the respondent is confined.

          [(k)] (L) If the respondent is a foreign national, the consulate for the respondent’s country.

          [(L)] (m) Any other person that the court requires.

          (3) Notice of a motion for the termination of the protective proceedings, for removal of a fiduciary, for modification of the powers or authority of a fiduciary, for approval of a fiduciary’s actions or for protective orders in addition to those sought in the petition must be given by the person making the motion to the following persons:

          (a) The protected person, if the protected person has attained 14 years of age.

          (b) Any person who has filed a request for notice in the proceedings.

          (c) Except for a fiduciary who is making a motion, any fiduciary who has been appointed for the protected person.

          (d) If the protected person is receiving moneys paid or payable by the United States through the Department of Veterans Affairs, a representative of the United States Department of Veterans Affairs regional office that has responsibility for the payments to the protected person.

          (e) If the protected person is committed to the legal and physical custody of the Department of Corrections, the Attorney General and the superintendent or other officer in charge of the facility in which the protected person is confined.

          (f) Any other person that the court requires.

          (4) A request for notice under subsection (3)(b) of this section must be in writing and include the name, address and phone number of the person requesting notice. A copy of the request must be mailed by the person making the request to the petitioner or to the fiduciary if a fiduciary has been appointed. The original request must be filed with the court. The person filing the request must pay the fee specified by ORS 21.310 (5).

          (5) A person who files a request for notice in the proceedings in the manner provided by subsection (4) of this section is entitled to receive notice from the fiduciary of any motion specified in subsection (3) of this section and of any other matter to which a person listed in subsection (2) of this section is entitled to receive notice under a specific provision of this chapter.

          (6) If the Department of Human Services is nominated as guardian for the purpose of consenting to the adoption of a minor, the notice provided for in this section must also be given to the minor’s brothers, sisters, aunts, uncles and grandparents.

          (7) In addition to the requirements of subsection (2) of this section, notice of the filing of a petition for the appointment of a guardian for a person who is alleged to be incapacitated must be given by the petitioner to the following persons:

          (a) Any attorney who is representing the respondent in any capacity.

          (b) If the respondent is a resident of a nursing home or residential facility, or if the person nominated to act as fiduciary intends to place the respondent in a nursing home or residential facility, the office of the Long Term Care Ombudsman.

          (c) If the respondent is a resident of a mental health treatment facility or a residential facility for individuals with developmental disabilities, or if the person nominated to act as fiduciary intends to place the respondent in such a facility, the system described in ORS 192.517 (1).

          (8) In addition to the requirements of subsection (3) of this section, in a protective proceeding in which a guardian has been appointed, notice of the motions specified in subsection (3) of this section must be given by the person making the motion to the following persons:

          (a) Any attorney who represented the protected person at any time during the protective proceeding.

          (b) If the protected person is a resident of a nursing home or residential facility, or if the motion seeks authority to place the protected person in a nursing home or residential facility, the office of the Long Term Care Ombudsman.

          (c) If the protected person is a resident of a mental health treatment facility or a residential facility for individuals with developmental disabilities, or if the motion seeks authority to place the protected person in such a facility, the system described in ORS 192.517 (1).

          (9) A respondent or protected person may not waive the notice required under this section.

          (10) The requirement that notice be served on an attorney for a respondent or protected person under subsection (7)(a) or (8)(a) of this section does not impose any responsibility on the attorney receiving the notice to represent the respondent or protected person in the protective proceeding.

          NOTE: Section 86 was deleted by amendment. Subsequent sections were not renumbered.

 

          SECTION 87. ORS 127.646 is amended to read:

          127.646. As used in ORS 127.646 to 127.654:

          (1) “Health care organization” means a home health agency, hospice program, hospital, long term care facility or health maintenance organization.

          (2) “Health maintenance organization” has the meaning given that term in ORS 750.005, except that “health maintenance organization” includes only those organizations that participate in the federal Medicare or Medicaid programs.

          (3) “Home health agency” has the meaning given that term in ORS 443.005.

          (4) “Hospice program” has the meaning given that term in ORS 443.850.

          (5) “Hospital” has the meaning given that term in ORS 442.015 [(19)], except that “hospital” does not include a special inpatient care facility.

          (6) “Long term care facility” has the meaning given that term in ORS 442.015, except that “long term care facility” does not include an intermediate care facility for individuals with mental retardation.

 

          SECTION 88. ORS 127.720 is amended to read:

          127.720. (1) The physician or provider may subject the principal to mental health treatment in a manner contrary to the principal’s wishes as expressed in a declaration for mental health treatment only:

          (a) If the principal is committed to the [Department of Human Services] Oregon Health Authority pursuant to ORS 426.005 to 426.390 and treatment is authorized in compliance with ORS 426.385 (3) and administrative rule; or

          (b) In cases of emergency endangering life or health.

          (2) A declaration does not limit any authority provided in ORS 426.005 to 426.390 either to take a person into custody, or to admit, retain or treat a person in a health care facility.

 

          SECTION 89. ORS 127.865 is amended to read:

          127.865. §3.11. Reporting requirements. (1)(a) The [Department of Human Services] Oregon Health Authority shall annually review a sample of records maintained pursuant to ORS 127.800 to 127.897.

          (b) The [department] authority shall require any health care provider upon dispensing medication pursuant to ORS 127.800 to 127.897 to file a copy of the dispensing record with the [department] authority.

          (2) The [department] authority shall make rules to facilitate the collection of information regarding compliance with ORS 127.800 to 127.897. Except as otherwise required by law, the information collected shall not be a public record and may not be made available for inspection by the public.

          (3) The [department] authority shall generate and make available to the public an annual statistical report of information collected under subsection (2) of this section.

 

          SECTION 90. ORS 130.370 is amended to read:

          130.370. (1) Within three months after a petition is entered in the register of the court under ORS 130.355, or within such longer time as the court allows, a trustee must make reasonably diligent efforts to investigate the financial records and affairs of the settlor and to take such further actions as are reasonably necessary to ascertain the identity and address of each person who has or asserts a claim against the trust estate. The court shall allow the trustee as much time as requested by the trustee for the purpose of determining the claims against the trust estate. The trustee must thereafter cause to be delivered or mailed a notice containing the information required in subsection (2) of this section to each person known by the trustee to have or to assert a claim against the trust estate and to the Department of Human Services and the Oregon Health Authority. Notice under this section is not required for any claim that has already been presented, accepted or paid in full or on account of a claim that is merely conjectural.

          (2) The notice required by this section must include:

          (a) The name and Social Security number of the settlor;

          (b) The name of the trustee and the address at which claims must be presented;

          (c) A statement that claims against the trust estate that are not presented to the trustee within 30 days after the date of the notice may be barred;

          (d) The date of the notice, which shall be the date on which the notice is delivered or mailed; and

          (e) A copy of the settlor’s death certificate.

 

          SECTION 91. ORS 130.425 is amended to read:

          130.425. (1) Claims allowed against the trust estate under ORS 130.350 to 130.450 must be paid by the trustee in the following order of priority:

          (a) Expenses of administering the trust estate.

          (b) Expenses of a plain and decent funeral and disposition of the remains of the settlor.

          (c) Debts and taxes with preference under federal law.

          (d) Reasonable and necessary medical and hospital expenses of the last illness of the settlor, including compensation of persons attending the settlor.

          (e) Taxes with preference under the laws of this state that are due and payable while possession of the trust estate of the settlor is retained by the trustee.

          (f) Debts owed employees of the settlor for labor performed within 90 days immediately preceding the date of death of the settlor.

          (g) Child support arrearages.

          (h) A claim of the Department of Human Services for the net amount of public assistance, as defined in ORS 411.010[, paid to or for the settlor, and the claim of the department for care and maintenance of any settlor who was at a state institution to the extent provided in ORS 179.610 to 179.770].

          (i) A claim of the Department of Human Services or the Oregon Health Authority for the care and maintenance of any settlor who was a patient at a state institution under ORS 179.610 to 179.770.

          [(i)] (j) All other claims against the trust estate.

          (2) If the assets of the trust estate are insufficient to pay in full all expenses or claims of any one class specified in subsection (1) of this section, each expense or claim of that class shall be paid only in proportion to the amount thereof.

 

          SECTION 92. ORS 135.139 is amended to read:

          135.139. (1) When a person has been charged with a crime in which it appears from the nature of the charge that the transmission of body fluids from one person to another may have been involved, the district attorney, upon the request of the victim or the parent or guardian of a minor or incapacitated victim, shall seek the consent of the person charged to submit to a test for HIV and any other communicable disease. In the absence of such consent or failure to submit to the test, the district attorney may petition the court for an order requiring the person charged to submit to a test for HIV and any other communicable disease.

          (2)(a) At the time of an appearance before a circuit court judge on a criminal charge, the judge shall inform every person arrested and charged with a crime, in which it appears from the nature of the charge that the transmission of body fluids from one person to another may have been involved, of the availability of testing for HIV and other communicable diseases and shall cause the alleged victim of such a crime, if any, or a parent or guardian of the victim, if any, to be notified that testing for HIV and other communicable diseases is available. The judge shall inform the person arrested and charged and the victim, or parent or guardian of the victim, of the availability of counseling under the circumstances described in subsection (7) of this section.

          (b) Notwithstanding the provisions of ORS 433.045, if the district attorney files a petition under subsection (1) of this section, the court shall order the person charged to submit to testing if the court determines there is probable cause to believe that:

          (A) The person charged committed the crime; and

          (B) The victim has received a substantial exposure, as defined by rule of the [Department of Human Services] Oregon Health Authority.

          (3) Notwithstanding the provisions of ORS 433.045, upon conviction of a person for any crime in which the court determines from the facts that the transmission of body fluids from one person to another was involved and if the person has not been tested pursuant to subsection (2) of this section, the court shall seek the consent of the convicted person to submit to a test for HIV and other communicable diseases. In the absence of such consent or failure to submit to the test, the court shall order the convicted person to submit to the test if the victim of the crime, or a parent or guardian of the victim, requests the court to make such order.

          (4) When a test is ordered under subsection (2) or (3) of this section, the victim of the crime or a parent or guardian of the victim, shall designate an attending physician to receive such information on behalf of the victim.

          (5) If an HIV test results in a negative reaction, the court may order the person to submit to another HIV test six months after the first test was administered.

          (6) The result of any test ordered under this section is not a public record and shall be available only to:

          (a) The victim.

          (b) The parent or guardian of a minor or incapacitated victim.

          (c) The attending physician who is licensed to practice medicine.

          (d) The [Department of Human Services] Oregon Health Authority.

          (e) The person tested.

          (7) If an HIV test ordered under this section results in a positive reaction, the individual subject to the test shall receive post-test counseling as required by the [Department of Human Services,] Oregon Health Authority by rule. The results of HIV tests ordered under this section shall be reported to the [Department of Human Services] authority. Counseling and referral for appropriate health care, testing and support services as directed by the Director of [Human Services] the Oregon Health Authority shall be provided to the victim or victims at the request of the victim or victims, or the parent or guardian of a minor or incapacitated victim.

          (8) The costs of testing and counseling provided under subsections (2), (3) and (7) of this section shall be paid through the compensation for crime victims program authorized by ORS 147.005 to 147.367 from amounts appropriated for such purposes. Restitution to the state for payment of the costs of any counseling provided under this section and for payment of the costs of any test ordered under this section shall be included by the court in any order requiring the convicted person to pay restitution.

          (9) When a court orders a convicted person to submit to a test under this section, the withdrawal of blood may be performed only by a physician licensed to practice medicine or by a licensed health care provider acting within the provider’s licensed scope of practice or acting under the supervision of a physician licensed to practice medicine.

          (10) No person authorized by subsection (9) of this section to withdraw blood, no person assisting in the performance of the test nor any medical care facility where blood is withdrawn or tested that has been ordered by the court to withdraw or test blood shall be liable in any civil or criminal action when the act is performed in a reasonable manner according to generally accepted medical practices.

          (11) The results of tests or reports, or information therein, obtained under this section shall be confidential and shall not be divulged to any person not authorized by this section to receive the information. Any violation of this subsection is a Class C misdemeanor.

          (12) As used in this section:

          (a) “HIV test” means a test as defined in ORS 433.045.

          (b) “Parent or guardian of the victim” means a custodial parent or legal guardian of a victim who is a minor or incapacitated person.

          (c) “Positive reaction” means a positive HIV test with a positive confirmatory test result as specified by the [Department of Human Services] Oregon Health Authority.

          (d) “Transmission of body fluids” means the transfer of blood, semen, vaginal secretions or other body fluids identified by rule of the [Department of Human Services] authority, from the perpetrator of a crime to the mucous membranes or potentially broken skin of the victim.

          (e) “Victim” means the person or persons to whom transmission of body fluids from the perpetrator of the crime occurred or was likely to have occurred in the course of the crime.

 

          SECTION 93. ORS 135.917 is amended to read:

          135.917. (1) Courts having jurisdiction over the offense of possession of less than one ounce of marijuana shall designate agencies or organizations to perform the diagnostic assessment and treatment required under possession of marijuana diversion agreements described in ORS 135.907. The designated agencies or organizations must meet the standards set by the [Department of Human Services] Oregon Health Authority to perform the diagnostic assessment and treatment of drug dependency and must be certified by the [Department of Human Services] authority. Wherever possible, a court shall designate agencies or organizations to perform the diagnostic assessment that are separate from those that may be designated to carry out a program of treatment for drug dependency.

          (2) Monitoring of a defendant’s progress under a diversion agreement shall be the responsibility of the diagnostic assessment agency or organization. It shall make a report to the court stating the defendant’s successful completion or failure to complete all or any part of the treatment program specified by the diagnostic assessment. The form of the report shall be determined by agreement between the court and the diagnostic assessment agency or organization. The court shall make the report of the diagnostic assessment agency or organization that is required by this subsection a part of the record of the case.

 

          SECTION 94. ORS 137.227 is amended to read:

          137.227. (1) After a defendant has been convicted of a crime, the court may cause the defendant to be evaluated to determine if the defendant is an alcoholic or a drug-dependent person, as those terms are defined in ORS 430.306. The evaluation shall be conducted by an agency or organization designated under subsection (2) of this section.

          (2) The court shall designate agencies or organizations to perform the evaluations required under subsection (1) of this section. The designated agencies or organizations must meet the standards set by the [Department of Human Services] Oregon Health Authority to perform the evaluations for drug dependency and must be approved by the [department] authority. Wherever possible, a court shall designate agencies or organizations to perform the evaluations that are separate from those that may be designated to carry out a program of treatment for alcohol or drug dependency.

 

          SECTION 95. ORS 137.228 is amended to read:

          137.228. (1) When a defendant is sentenced for a crime, the court may enter a finding that the defendant is an alcoholic or a drug-dependent person, as those terms are defined in ORS 430.306. The finding may be based upon any evidence before the court, including, but not limited to, the facts of the case, stipulations of the parties and the results of any evaluation conducted under ORS 137.227.

          (2) When the court finds that the defendant is an alcoholic or a drug-dependent person, the court, when it sentences the defendant to a term of imprisonment, shall direct the Department of Corrections to place the defendant in an appropriate alcohol or drug treatment program, to the extent that resources are available. The alcohol or drug treatment program shall meet the standards promulgated by the [Department of Human Services] Oregon Health Authority pursuant to ORS 430.357.

 

          SECTION 96. ORS 137.464 is amended to read:

          137.464. (1)(a) At the death warrant hearing under ORS 137.463, the court shall order that the [Department of Human Services] Oregon Health Authority or its designee perform an assessment of the defendant’s mental capacity to engage in reasoned choices of legal strategies and options if:

          (A) The defendant indicates the wish to waive the right to counsel; and

          (B) The court has substantial reason to believe that, due to mental incapacity, the defendant cannot engage in reasoned choices of legal strategies and options.

          (b) The court also shall order an assessment described in paragraph (a) of this subsection upon motion by the state.

          (2) If the requirements of subsection (1) of this section are met, the court may order the defendant to be committed to a state mental hospital designated by the [Department of Human Services] authority for a period not exceeding 30 days for the purpose of assessing the defendant’s mental capacity. The report of any competency assessment performed under this section must include, but need not be limited to, the following:

          (a) A description of the nature of the assessment;

          (b) A statement of the mental condition of the defendant; and

          (c) A statement regarding the defendant’s mental capacity to engage in reasoned choices of legal strategies and options.

          (3) If the competency assessment cannot be conducted because the defendant is unwilling to participate, the report must so state and must include, if possible, an opinion as to whether the unwillingness of the defendant is the result of a mental condition affecting the defendant’s mental capacity to engage in reasoned choices of legal strategies and options.

          (4) The [Department of Human Services] authority shall file three copies of the report of the competency assessment with the clerk of the court, who shall cause copies to be delivered to the district attorney and to counsel for the defendant.

 

          SECTION 97. ORS 137.466 is amended to read:

          137.466. (1) If the court has ordered the [Department of Human Services] Oregon Health Authority to perform a competency assessment of the defendant under ORS 137.464 and the assessment has been completed, the court shall determine the issue of the defendant’s mental capacity to engage in reasoned choices of legal strategies and options. If neither the state nor counsel for the defendant contests the finding of the report filed under ORS 137.464, the court may make the determination of the defendant’s mental capacity to engage in reasoned choices of legal strategies and options on the basis of the report. If the finding is contested, the court shall hold a hearing on the issue. If the report is received in evidence at the hearing, the party contesting the finding has the right to summon and to cross-examine the psychiatrist or psychologist who submitted the report and to offer evidence on the issue. Either party may introduce other evidence regarding the defendant’s mental capacity to engage in reasoned choices of legal strategies and options.

          (2) If the court determines that, due to mental incapacity, the defendant cannot engage in reasoned choices of legal strategies and options, the court shall continue the appointment of counsel provided under ORS 137.463.

          (3) No appeal may be taken from an order issued pursuant to this section.

 

          SECTION 98. ORS 137.658 is amended to read:

          137.658. (1) The chairperson of the Oregon Criminal Justice Commission may create any committees within the commission as the chairperson may think necessary. Persons who are not commission members may be appointed as members to serve on the committees with the approval of the commission.

          (2) The chairperson shall appoint members of committees created under this section in such a manner as to ensure representation from all segments of the criminal justice system that are affected by the work of the committee. In selecting members for committee assignments, the chairperson shall consider, but is not limited to, representatives from the following:

          (a) The Attorney General;

          (b) The Director of the Department of Corrections;

          (c) The chairperson of the State Board of Parole and Post-Prison Supervision;

          (d) The Superintendent of State Police;

          (e) The chief administrative employee of the Psychiatric Security Review Board;

          (f) The Director of Human Services;

          (g) The Director of the Oregon Health Authority;

          [(g)] (h) The Director of the Oregon Youth Authority;

          [(h)] (i) Trial judges;

          [(i)] (j) Judges of the Oregon Supreme Court or Court of Appeals;

          [(j)] (k) Majority and minority parties of the House of Representatives and the Senate;

          [(k)] (L) District attorneys;

          [(L)] (m) Criminal defense attorneys;

          [(m)] (n) County sheriffs;

          [(n)] (o) County commissioners;

          [(o)] (p) County community corrections directors;

          [(p)] (q) Chiefs of police;

          [(q)] (r) Victims of crime;

          [(r)] (s) The public at large;

          [(s)] (t) The director of a nonprofit entity created for the purpose of increasing understanding of the adult and juvenile justice systems and promotion of effective policies for prevention and control of crime; and

          [(t)] (u) Private contract providers.

 

          SECTION 99. ORS 144.102 is amended to read:

          144.102. (1) The State Board of Parole and Post-Prison Supervision or local supervisory authority responsible for correctional services for a person shall specify in writing the conditions of post-prison supervision imposed under ORS 144.096. A copy of the conditions shall be given to the person upon release from prison or jail.

          (2) The board or the supervisory authority shall determine, and may at any time modify, the conditions of post-prison supervision, which may include, among other conditions, that the person shall:

          (a) Comply with the conditions of post-prison supervision as specified by the board or supervisory authority.

          (b) Be under the supervision of the Department of Corrections and its representatives or other supervisory authority and abide by their direction and counsel.

          (c) Answer all reasonable inquiries of the board, the department or the supervisory authority.

          (d) Report to the parole officer as directed by the board, the department or the supervisory authority.

          (e) Not own, possess or be in control of any weapon.

          (f) Respect and obey all municipal, county, state and federal laws.

          (g) Understand that the board or supervisory authority may, at its discretion, punish violations of post-prison supervision.

          (h) Attend a victim impact treatment session in a county that has a victim impact program. If the board or supervisory authority requires attendance under this paragraph, the board or supervisory authority may require the person, as an additional condition of post-prison supervision, to pay a reasonable fee to the victim impact program to offset the cost of the person’s participation. The board or supervisory authority may not order a person to pay a fee in excess of $5 under this paragraph.

          (i) If required to report as a sex offender under ORS 181.595, report with the Department of State Police, a chief of police, a county sheriff or the supervising agency:

          (A) When supervision begins;

          (B) Within 10 days of a change in residence;

          (C) Once each year within 10 days of the person’s date of birth;

          (D) Within 10 days of the first day the person works at, carries on a vocation at or attends an institution of higher education; and

          (E) Within 10 days of a change in work, vocation or attendance status at an institution of higher education.

          (3)(a) The board or supervisory authority may establish special conditions as the board or supervisory authority determines necessary because of the individual circumstances of the person on post-prison supervision.

          (b) If the person is on post-prison supervision following conviction of a sex crime, as defined in ORS 181.594, the board or supervisory authority shall include all of the following as special conditions of the person’s post-prison supervision:

          (A) Agreement to comply with any curfew set by the board, the supervisory authority or the supervising officer.

          (B) A prohibition against contacting a person under 18 years of age without the prior written approval of the board, supervisory authority or supervising officer.

          (C) A prohibition against being present more than one time, without the prior written approval of the board, supervisory authority or supervising officer, at a place where persons under 18 years of age regularly congregate.

          (D) In addition to the prohibition under subparagraph (C) of this paragraph, a prohibition against being present, without the prior written approval of the board, supervisory authority or supervising officer, at, or on property adjacent to, a school, child care center, playground or other place intended for use primarily by persons under 18 years of age.

          (E) A prohibition against working or volunteering at a school, child care center, park, playground or other place where persons under 18 years of age regularly congregate.

          (F) Entry into and completion of or successful discharge from a sex offender treatment program approved by the board, supervisory authority or supervising officer. The program may include polygraph and plethysmograph testing. The person is responsible for paying for the treatment program.

          (G) A prohibition against any contact with the victim, directly or indirectly, unless approved by the victim, the person’s treatment provider and the board, supervisory authority or supervising officer.

          (H) Unless otherwise indicated for the treatment required under subparagraph (F) of this paragraph, a prohibition against viewing, listening to, owning or possessing any sexually stimulating visual or auditory materials that are relevant to the person’s deviant behavior.

          (I) Agreement to consent to a search of the person or the vehicle or residence of the person upon the request of a representative of the board or supervisory authority if the representative has reasonable grounds to believe that evidence of a violation of a condition of post-prison supervision will be found.

          (J) Participation in random polygraph examinations to obtain information for risk management and treatment. The person is responsible for paying the expenses of the examinations. The results of a polygraph examination under this subparagraph may not be used in evidence in a hearing to prove a violation of post-prison supervision.

          (K) Maintenance of a driving log and a prohibition against driving a motor vehicle alone unless approved by the board, supervisory authority or supervising officer.

          (L) A prohibition against using a post-office box unless approved by the board, supervisory authority or supervising officer.

          (M) A prohibition against residing in any dwelling in which another sex offender who is on probation, parole or post-prison supervision resides unless approved by the board, supervisory authority or supervising officer, or in which more than one other sex offender who is on probation, parole or post-prison supervision resides unless approved by the board or the director of the supervisory authority, or a designee of the board or director. As soon as practicable, the supervising officer of a person subject to the requirements of this subparagraph shall review the person’s living arrangement with the person’s sex offender treatment provider to ensure that the arrangement supports the goals of offender rehabilitation and community safety. As used in this subparagraph:

          (i) “Dwelling” has the meaning given that term in ORS 469.160.

          (ii) “Dwelling” does not include a residential treatment facility or a halfway house.

          (iii) “Halfway house” means a publicly or privately operated profit or nonprofit residential facility that provides rehabilitative care and treatment for sex offenders.

          (c)(A) If the person is on post-prison supervision following conviction of a sex crime, as defined in ORS 181.594, or an assault, as defined in ORS 163.175 or 163.185, and the victim was under 18 years of age, the board or supervisory authority, if requested by the victim, shall include as a special condition of the person’s post-prison supervision that the person not reside within three miles of the victim unless:

          (i) The victim resides in a county having a population of less than 130,000 and the person is required to reside in that county under subsection (6) of this section;

          (ii) The person demonstrates to the board or supervisory authority by a preponderance of the evidence that no mental intimidation or pressure was brought to bear during the commission of the crime;

          (iii) The person demonstrates to the board or supervisory authority by a preponderance of the evidence that imposition of the condition will deprive the person of a residence that would be materially significant in aiding in the rehabilitation of the person or in the success of the post-prison supervision; or

          (iv) The person resides in a halfway house. As used in this sub-subparagraph, “halfway house” means a publicly or privately operated profit or nonprofit residential facility that provides rehabilitative care and treatment for sex offenders.

          (B) A victim may request imposition of the special condition of post-prison supervision described in this paragraph at the time of sentencing in person or through the prosecuting attorney. A victim’s request may be included in the judgment document.

          (C) If the board or supervisory authority imposes the special condition of post-prison supervision described in this paragraph and if at any time during the period of post-prison supervision the victim moves to within three miles of the person’s residence, the board or supervisory authority may not require the person to change the person’s residence in order to comply with the special condition of post-prison supervision.

          (4)(a) The board or supervisory authority may require the person to pay, as a condition of post-prison supervision, any compensatory fines, restitution or attorney fees:

          (A) As determined, imposed or required by the sentencing court; or

          (B) When previously required as a condition of any type of supervision that is later revoked.

          (b) The board may require a person to pay restitution as a condition of post-prison supervision imposed for an offense other than the offense for which the restitution was ordered if the person:

          (A) Was ordered to pay restitution as a result of another conviction; and

          (B) Has not fully paid the restitution by the time the person has completed the period of post-prison supervision imposed for the offense for which the restitution was ordered.

          (5) A person’s failure to apply for or accept employment at any workplace where there is a labor dispute in progress does not constitute a violation of the conditions of post-prison supervision. As used in this subsection, “labor dispute” has the meaning given that term in ORS 662.010.

          (6)(a) When a person is released from imprisonment on post-prison supervision, the board shall order, as a condition of post-prison supervision, that the person reside for the first six months after release in the county where the person resided at the time of the offense that resulted in the imprisonment.

          (b) Upon motion of the board, the person, a victim or a district attorney, the board may waive the residency requirement only after making a finding that one of the following conditions has been met:

          (A) The person provides proof of employment with no set ending date in a county other than the established county of residence;

          (B) The person is found to pose a significant danger to a victim of the person’s crime, or a victim or victim’s family is found to pose a significant danger to the person residing in the established county of residence;

          (C) The person has a spouse or biological or adoptive family residing in a county other than the established county of residence who will be materially significant in aiding in the rehabilitation of the person and in the success of the post-prison supervision;

          (D) As another condition of post-prison supervision, the person is required to participate in a treatment program that is not available in the established county of residence;

          (E) The person desires to be released to another state; or

          (F) The board finds other good cause, of a nature similar to the other conditions listed in this paragraph, for the waiver.

          (c)(A) The board shall determine the county where the person resided at the time of the offense by establishing the person’s last address at the time of the offense. In making its determination, the board shall examine all of the following:

          (i) An Oregon driver license, regardless of its validity;

          (ii) Records maintained by the Department of Revenue;

          (iii) Records maintained by the Department of State Police bureau of criminal identification;

          (iv) Records maintained by the Department of Human Services; [and]

          (v) Records maintained by the Department of Corrections[.]; and

          (vi) Records maintained by the Oregon Health Authority.

          (B) When the person did not have an identifiable address of record at the time of the offense, the person is considered to have resided in the county where the offense occurred.

          (C) If the person is serving multiple sentences, the county of residence shall be determined according to the date of the last arrest resulting in a conviction.

          (D) In determining the person’s county of residence for purposes of this subsection, the board may not consider offenses committed by the person while the person was incarcerated in a Department of Corrections facility.

          (7) As used in this section, “attends,” “institution of higher education,” “works” and “carries on a vocation” have the meanings given those terms in ORS 181.594.

 

          SECTION 100. ORS 144.270 is amended to read:

          144.270. (1) The State Board of Parole and Post-Prison Supervision, in releasing a person on parole, shall specify in writing the conditions of the parole and a copy of such conditions shall be given to the person paroled.

          (2) The board shall determine, and may at any time modify, the conditions of parole, which may include, among other conditions, that the parolee shall:

          (a) Accept the parole granted subject to all terms and conditions specified by the board.

          (b) Be under the supervision of the Department of Corrections and its representatives and abide by their direction and counsel.

          (c) Answer all reasonable inquiries of the board or the parole officer.

          (d) Report to the parole officer as directed by the board or parole officer.

          (e) Not own, possess or be in control of any weapon.

          (f) Respect and obey all municipal, county, state and federal laws.

          (g) Understand that the board may, in its discretion, suspend or revoke parole if it determines that the parole is not in the best interest of the parolee, or in the best interest of society.

          (3)(a) The board may establish such special conditions as it determines are necessary because of the individual circumstances of the parolee.

          (b) If the person is on parole following conviction of a sex crime, as defined in ORS 181.594, the board shall include all of the following as special conditions of the person’s parole:

          (A) Agreement to comply with any curfew set by the board or the supervising officer.

          (B) A prohibition against contacting a person under 18 years of age without the prior written approval of the board or supervising officer.

          (C) A prohibition against being present more than one time, without the prior written approval of the board or supervising officer, at a place where persons under 18 years of age regularly congregate.

          (D) In addition to the prohibition under subparagraph (C) of this paragraph, a prohibition against being present, without the prior written approval of the board or supervising officer, at, or on property adjacent to, a school, child care center, playground or other place intended for use primarily by persons under 18 years of age.

          (E) A prohibition against working or volunteering at a school, child care center, park, playground or other place where persons under 18 years of age regularly congregate.

          (F) Entry into and completion of or successful discharge from a sex offender treatment program approved by the board or supervising officer. The program may include polygraph and plethysmograph testing. The person is responsible for paying for the treatment program.

          (G) A prohibition against any contact with the victim, directly or indirectly, unless approved by the victim, the person’s treatment provider and the board or supervising officer.

          (H) Unless otherwise indicated for the treatment required under subparagraph (F) of this paragraph, a prohibition against viewing, listening to, owning or possessing any sexually stimulating visual or auditory materials that are relevant to the person’s deviant behavior.

          (I) Agreement to consent to a search of the person or the vehicle or residence of the person upon the request of a representative of the board if the representative has reasonable grounds to believe that evidence of a violation of a condition of parole will be found.

          (J) Participation in random polygraph examinations to obtain information for risk management and treatment. The person is responsible for paying the expenses of the examinations. The results of a polygraph examination under this subparagraph may not be used in evidence in a hearing to prove a violation of parole.

          (K) Maintenance of a driving log and a prohibition against driving a motor vehicle alone unless approved by the board or supervising officer.

          (L) A prohibition against using a post-office box unless approved by the board or supervising officer.

          (M) A prohibition against residing in any dwelling in which another sex offender who is on probation, parole or post-prison supervision resides unless approved by the board or supervising officer, or in which more than one other sex offender who is on probation, parole or post-prison supervision resides unless approved by the board or a designee of the board. As soon as practicable, the supervising officer of a person subject to the requirements of this subparagraph shall review the person’s living arrangement with the person’s sex offender treatment provider to ensure that the arrangement supports the goals of offender rehabilitation and community safety. As used in this subparagraph:

          (i) “Dwelling” has the meaning given that term in ORS 469.160.

          (ii) “Dwelling” does not include a residential treatment facility or a halfway house.

          (iii) “Halfway house” means a publicly or privately operated profit or nonprofit residential facility that provides rehabilitative care and treatment for sex offenders.

          (c)(A) If the person is on parole following conviction of a sex crime, as defined in ORS 181.594, or an assault, as defined in ORS 163.175 or 163.185, and the victim was under 18 years of age, the board, if requested by the victim, shall include as a special condition of the person’s parole that the person not reside within three miles of the victim unless:

          (i) The victim resides in a county having a population of less than 130,000 and the person is required to reside in that county under subsection (5) of this section;

          (ii) The person demonstrates to the board by a preponderance of the evidence that no mental intimidation or pressure was brought to bear during the commission of the crime;

          (iii) The person demonstrates to the board by a preponderance of the evidence that imposition of the condition will deprive the person of a residence that would be materially significant in aiding in the rehabilitation of the person or in the success of the parole; or

          (iv) The person resides in a halfway house. As used in this sub-subparagraph, “halfway house” means a publicly or privately operated profit or nonprofit residential facility that provides rehabilitative care and treatment for sex offenders.

          (B) A victim may request imposition of the special condition of parole described in this paragraph at the time of sentencing in person or through the prosecuting attorney. A victim’s request may be included in the judgment document.

          (C) If the board imposes the special condition of parole described in this paragraph and if at any time during the period of parole the victim moves to within three miles of the parolee’s residence, the board may not require the parolee to change the parolee’s residence in order to comply with the special condition of parole.

          (4) It is not a cause for revocation of parole that the parolee failed to apply for or accept employment at any workplace where there is a labor dispute in progress. As used in this subsection, “labor dispute” has the meaning given that term in ORS 662.010.

          (5)(a) When the board grants an inmate parole from the custody of the Department of Corrections, the board shall order, as a condition of parole, that the inmate reside for the first six months in the county where the inmate resided at the time of the offense that resulted in the imprisonment.

          (b) Upon motion of the board, an inmate, a victim or a district attorney, the board may waive the residency requirement only after making a finding that one of the following conditions has been met:

          (A) The inmate provides proof of a job with no set ending date in a county other than the established county of residence;

          (B) The inmate is found to pose a significant danger to the victim of the offender’s crime, or the victim or victim’s family is found to pose a significant danger to the inmate residing in the county of residence;

          (C) The inmate has a spouse or biological or adoptive family residing in other than the county of residence who will be materially significant in aiding in the rehabilitation of the offender and in the success of the parole;

          (D) As another condition of parole, the inmate is required to participate in a treatment program that is not available or located in the county of residence;

          (E) The inmate desires to be paroled to another state; or

          (F) The board finds other good cause, of a nature similar to the other conditions listed in this paragraph, for the waiver.

          (c)(A) For purposes of this subsection, “residency” means the last address at the time of the offense, as established by an examination of all of the following:

          (i) An Oregon driver license, regardless of its validity;

          (ii) Records maintained by the Department of Revenue;

          (iii) Records maintained by the Department of State Police bureau of criminal identification;

          (iv) Records maintained by the Department of Human Services; [and]

          (v) Records maintained by the Department of Corrections[.]; and

          (vi) Records maintained by the Oregon Health Authority.

          (B) When an inmate did not have one identifiable address of record at the time of the offense, the inmate shall be considered to have resided in the county where the offense occurred.

          (C) If the inmate is serving multiple sentences, the county of residence shall be determined according to the date of the last arrest resulting in a conviction.

          (D) If the inmate is being rereleased after revocation of parole, the county of residence shall be determined according to the date of the arrest resulting in a conviction of the underlying offense.

          (E) In determining the inmate’s county of residence, a conviction for an offense that the inmate committed while incarcerated in a state corrections institution may not be considered.

          (6) When the board grants an inmate parole from the custody of the Department of Corrections and if the inmate is required to report as a sex offender under ORS 181.595, the board, as a condition of parole, shall order the inmate to report with the Department of State Police, a chief of police, a county sheriff or the supervising agency:

          (a) When supervision begins;

          (b) Within 10 days of a change in residence;

          (c) Once each year within 10 days of the inmate’s date of birth;

          (d) Within 10 days of the first day the person works at, carries on a vocation at or attends an institution of higher education; and

          (e) Within 10 days of a change in work, vocation or attendance status at an institution of higher education.

          (7) As used in this section, “attends,” “institution of higher education,” “works” and “carries on a vocation” have the meanings given those terms in ORS 181.594.

 

          SECTION 101. ORS 161.315 is amended to read:

          161.315. Upon filing of notice or the introduction of evidence by the defendant as provided in ORS 161.309 (3), the state shall have the right to have at least one psychiatrist or licensed psychologist of its selection examine the defendant. The state shall file notice with the court of its intention to have the defendant examined. Upon filing of the notice, the court, in its discretion, may order the defendant committed to a state institution or any other suitable facility, if the defendant is 18 years of age or older, for observation and examination as the court may designate for a period not to exceed 30 days. If the defendant is under 18 years of age, upon filing of the notice, the court, in its discretion, may order the defendant committed to a secure intensive community inpatient facility designated by the [Department of Human Services] Oregon Health Authority for observation and examination as the court may designate for a period not to exceed 30 days. If the defendant objects to the examiner chosen by the state, the court for good cause shown may direct the state to select a different examiner.

 

          SECTION 102. ORS 161.327 is amended to read:

          161.327. (1)(a) Following the entry of a judgment pursuant to ORS 161.319 and the dispositional determination under ORS 161.325, if the court finds that the person would have been guilty of a felony, or of a misdemeanor during a criminal episode in the course of which the person caused physical injury or risk of physical injury to another, the court shall order that a psychiatric or psychological evaluation be performed and a report of the evaluation be provided to the court if an evaluation was not performed or a report was not provided to the court prior to trial. Upon receipt of the evaluation, the court shall order that the person be placed under the jurisdiction of the Psychiatric Security Review Board for care and treatment if the court finds by a preponderance of the evidence that the person is affected by mental disease or defect and presents a substantial danger to others requiring commitment to:

          (A) A state hospital designated by the [Department of Human Services] Oregon Health Authority if the person is at least 18 years of age; or

          (B) A secure intensive community inpatient facility designated by the [Department of Human Services] authority if the person is under 18 years of age.

          (b) The period of jurisdiction of the board is equal to the maximum sentence provided by statute for the crime for which the person was found guilty except for insanity.

          (c) When a court orders a psychiatric or psychological evaluation of a financially eligible person under this subsection, the court shall order the public defense services executive director to pay a reasonable fee for the evaluation from funds available for the purpose.

          (2) The court shall determine whether the person should be committed to a state hospital, or to a secure intensive community inpatient facility, designated by the [Department of Human Services] authority or conditionally released pending any hearing before the board as follows:

          (a) If the court finds that the person presents a substantial danger to others and is not a proper subject for conditional release, the court shall order the person committed to a state hospital designated by the [Department of Human Services] authority if the person is at least 18 years of age, or to a secure intensive community inpatient facility designated by the [Department of Human Services] authority if the person is under 18 years of age, for custody, care and treatment pending hearing before the board in accordance with ORS 161.341 to 161.351.

          (b) If the court finds that the person presents a substantial danger to others but that the person can be adequately controlled with supervision and treatment if conditionally released and that necessary supervision and treatment are available, the court may order the person conditionally released, subject to those supervisory orders of the court as are in the best interests of justice, the protection of society and the welfare of the person. The court shall designate a person or state, county or local agency to supervise the person upon release, subject to those conditions as the court directs in the order for conditional release. Prior to the designation, the court shall notify the person or agency to whom conditional release is contemplated and provide the person or agency an opportunity to be heard before the court. After receiving an order entered under this paragraph, the person or agency designated shall assume supervision of the person pursuant to the direction of the Psychiatric Security Review Board. The person or agency designated as supervisor shall be required to report in writing no less than once per month to the board concerning the supervised person’s compliance with the conditions of release.

          (3) For purposes of this section, a person affected by a mental disease or defect in a state of remission is considered to have a mental disease or defect requiring supervision when the disease may, with reasonable medical probability, occasionally become active and, when active, render the person a danger to others.

          (4) In determining whether a person should be conditionally released, the court may order evaluations, examinations and compliance as provided in ORS 161.336 (4) and 161.346 (2).

          (5) In determining whether a person should be committed to a state hospital or to a secure intensive community inpatient facility or conditionally released, the court shall have as its primary concern the protection of society.

          (6) Upon placing a person on conditional release, the court shall notify the board in writing of the court’s conditional release order, the supervisor appointed, and all other conditions of release, and the person shall be on conditional release pending hearing before the board in accordance with ORS 161.336 to 161.351. Upon compliance with this subsection and subsections (1) and (2) of this section, the court’s jurisdiction over the person is terminated and the board assumes jurisdiction over the person.

          (7) An order of the court under this section is a final order appealable by the person found guilty except for insanity in accordance with ORS 19.205 (5). Notwithstanding ORS 19.255, notice of an appeal under this section shall be served and filed within 90 days after the order appealed from is entered in the register. The person shall be entitled on appeal to suitable counsel possessing skills and experience commensurate with the nature and complexity of the case. If the person is financially eligible, suitable counsel shall be appointed in the manner provided in ORS 138.500 (1), and the compensation for counsel and costs and expenses of the person necessary to the appeal shall be determined and paid as provided in ORS 138.500.

          (8) Upon placing a person under the jurisdiction of the board, the court shall notify the person of the right to appeal and the right to a hearing before the board in accordance with ORS 161.336 (7) and 161.341 (4).

 

          SECTION 103. ORS 161.336 is amended to read:

          161.336. (1) If the Psychiatric Security Review Board determines that the person presents a substantial danger to others but can be adequately controlled with supervision and treatment if conditionally released and that necessary supervision and treatment are available, the board may order the person conditionally released, subject to those supervisory orders of the board as are in the best interests of justice, the protection of society and the welfare of the person. The board may designate any person or state, county or local agency the board considers capable of supervising the person upon release, subject to those conditions as the board directs in the order for conditional release. Prior to the designation, the board shall notify the person or agency to whom conditional release is contemplated and provide the person or agency an opportunity to be heard before the board. After receiving an order entered under this section, the person or agency designated shall assume supervision of the person pursuant to the direction of the board.

          (2) Conditions of release contained in orders entered under this section may be modified from time to time and conditional releases may be terminated by order of the board as provided in ORS 161.351.

          (3) For purposes of this section, a person affected by a mental disease or defect in a state of remission is considered to have a mental disease or defect requiring supervision when the disease may, with reasonable medical probability, occasionally become active and, when active, render the person a danger to others. The person may be continued on conditional release by the board as provided in this section.

          (4)(a) As a condition of release, the board may require the person to report to any state or local mental health facility for evaluation. Whenever medical, psychiatric or psychological treatment is recommended, the board may order the person, as a condition of release, to cooperate with and accept the treatment from the facility.

          (b) The facility to which the person has been referred for evaluation shall perform the evaluation and submit a written report of its findings to the board. If the facility finds that treatment of the person is appropriate, it shall include its recommendations for treatment in the report to the board.

          (c) Whenever treatment is provided by the facility, it shall furnish reports to the board on a regular basis concerning the progress of the person.

          (d) Copies of all reports submitted to the board pursuant to this section shall be furnished to the person and the person’s counsel. The confidentiality of these reports is determined pursuant to ORS 192.501 to 192.505.

          (e) The facility shall comply with any other conditions of release prescribed by order of the board.

          (5) If at any time while the person is under the jurisdiction of the board it appears to the board or its chairperson that the person has violated the terms of the conditional release or that the mental health of the individual has changed, the board or its chairperson may order the person returned for evaluation or treatment to a state hospital designated by the [Department of Human Services] Oregon Health Authority if the person is at least 18 years of age, or to a secure intensive community inpatient facility designated by the [Department of Human Services] authority if the person is under 18 years of age. A written order of the board, or its chairperson on behalf of the board, is sufficient warrant for any law enforcement officer to take into custody such person and transport the person accordingly. A sheriff, municipal police officer, constable, parole and probation officer, prison official or other peace officer shall execute the order, and the person shall be returned as soon as practicable to the custody of the [Department of Human Services] authority. Within 20 days following the return of the person to the custody of the [Department of Human Services] authority, the board shall conduct a hearing. Notice of the time and place of the hearing shall be given to the person, the attorney representing the person and the Attorney General. The board may continue the person on conditional release or, if it finds by a preponderance of the evidence that the person is affected by mental disease or defect and presents a substantial danger to others and cannot be adequately controlled if conditional release is continued, it may order the person committed to a state hospital designated by the [Department of Human Services] authority if the person is at least 18 years of age, or to a secure intensive community inpatient facility designated by the [Department of Human Services] authority if the person is under 18 years of age. The state must prove by a preponderance of the evidence the person’s unfitness for conditional release. A person in custody pursuant to this subsection has the same rights as any person appearing before the board pursuant to ORS 161.346.

          (6) The community mental health [and developmental disabilities] program director, the director of the facility providing treatment to a person on conditional release, any peace officer or any person responsible for the supervision of a person on conditional release may take a person on conditional release into custody or request that the person be taken into custody if there is reasonable cause to believe the person is a substantial danger to others because of mental disease or defect and that the person is in need of immediate care, custody or treatment. Any person taken into custody pursuant to this subsection shall be transported as soon as practicable to a state hospital designated by the [Department of Human Services] authority if the person is at least 18 years of age, or to a secure intensive community inpatient facility designated by the [Department of Human Services] authority if the person is under 18 years of age. A person taken into custody under this subsection has the same rights as any person appearing before the board pursuant to ORS 161.346.

          (7)(a) Any person conditionally released under this section may apply to the board for discharge from or modification of an order of conditional release on the ground that the person is no longer affected by mental disease or defect or, if still so affected, no longer presents a substantial danger to others and no longer requires supervision, medication, care or treatment. Notice of the hearing on an application for discharge or modification of an order of conditional release shall be made to the Attorney General. The applicant, at the hearing pursuant to this subsection, must prove by a preponderance of the evidence the applicant’s fitness for discharge or modification of the order of conditional release. Applications by the person for discharge or modification of conditional release shall not be filed more often than once every six months.

          (b) Upon application by any person or agency responsible for supervision or treatment pursuant to an order of conditional release, the board shall conduct a hearing to determine if the conditions of release shall be continued, modified or terminated. The application shall be accompanied by a report setting forth the facts supporting the application.

          (8) The total period of commitment and conditional release ordered pursuant to this section may not exceed the maximum sentence provided by statute for the crime for which the person was found guilty except for insanity.

          (9) The board shall maintain and keep current the medical, social and criminal history of all persons committed to its jurisdiction. The confidentiality of records maintained by the board shall be determined pursuant to ORS 192.501 to 192.505.

          (10) In determining whether a person should be committed to a state hospital or to a secure intensive community inpatient facility, conditionally released or discharged, the board shall have as its primary concern the protection of society.

 

          SECTION 104. ORS 161.341 is amended to read:

          161.341. (1) If the Psychiatric Security Review Board finds, upon its initial hearing, that the person presents a substantial danger to others and is not a proper subject for conditional release, the board shall order the person committed to, or retained in, a state hospital designated by the [Department of Human Services] Oregon Health Authority if the person is at least 18 years of age, or to a secure intensive community inpatient facility designated by the [Department of Human Services] authority if the person is under 18 years of age, for custody, care and treatment. The period of commitment ordered by the board may not exceed the maximum sentence provided by statute for the crime for which the person was found guilty except for insanity.

          (2) If at any time after the commitment of a person to a state hospital, or to a secure intensive community inpatient facility, designated by the [Department of Human Services] authority under this section, the superintendent of the hospital or the director of the secure intensive community inpatient facility is of the opinion that the person is no longer affected by mental disease or defect, or, if so affected, no longer presents a substantial danger to others or that the person continues to be affected by mental disease or defect and continues to be a danger to others, but that the person can be controlled with proper care, medication, supervision and treatment if conditionally released, the superintendent or director shall apply to the board for an order of discharge or conditional release. The application shall be accompanied by a report setting forth the facts supporting the opinion of the superintendent or director. If the application is for conditional release, the application must also be accompanied by a verified conditional release plan. The board shall hold a hearing on the application within 60 days of its receipt. Not less than 20 days prior to the hearing before the board, copies of the report shall be sent to the Attorney General.

          (3) The attorney representing the state may choose a psychiatrist or licensed psychologist to examine the person prior to the initial or any later decision by the board on discharge or conditional release. The results of the examination shall be in writing and filed with the board, and shall include, but need not be limited to, an opinion as to the mental condition of the person, whether the person presents a substantial danger to others and whether the person could be adequately controlled with treatment as a condition of release.

          (4) Any person who has been committed to a state hospital, or to a secure intensive community inpatient facility, designated by the [Department of Human Services] authority for custody, care and treatment or another person acting on the person’s behalf may apply to the board for an order of discharge or conditional release upon the grounds:

          (a) That the person is no longer affected by mental disease or defect;

          (b) If so affected, that the person no longer presents a substantial danger to others; or

          (c) That the person continues to be affected by a mental disease or defect and would continue to be a danger to others without treatment, but that the person can be adequately controlled and given proper care and treatment if placed on conditional release.

          (5) When application is made under subsection (4) of this section, the board shall require that a report from the superintendent of the hospital or the director of the secure intensive community inpatient facility be prepared and transmitted as provided in subsection (2) of this section. The applicant must prove by a preponderance of the evidence the applicant’s fitness for discharge or conditional release under the standards of subsection (4) of this section, unless more than two years has passed since the state had the burden of proof on that issue, in which case the state shall have the burden of proving by a preponderance of the evidence the applicant’s lack of fitness for discharge or conditional release. Applications for discharge or conditional release under subsection (4) of this section shall not be filed more often than once every six months commencing with the date of the initial board hearing.

          (6) The board is not required to hold a hearing on a first application under subsection (4) of this section any sooner than 90 days after the initial hearing. However, hearings resulting from any subsequent requests shall be held within 60 days of the filing of the application.

          (7)(a) In no case shall any person committed by the court under ORS 161.327 to a state hospital, or to a secure intensive community inpatient facility, designated by the [Department of Human Services] authority be held in the hospital or facility for more than 90 days from the date of the court’s commitment order without an initial hearing before the board to determine whether the person should be conditionally released or discharged.

          (b) In no case shall a person be held pursuant to this section for a period of time exceeding two years without a hearing before the board to determine whether the person should be conditionally released or discharged.

 

          SECTION 105. ORS 161.346 is amended to read:

          161.346. (1) The Psychiatric Security Review Board shall conduct hearings upon any application for discharge, conditional release, commitment or modification filed pursuant to ORS 161.336, 161.341 or 161.351 and as otherwise required by ORS 161.336 to 161.351 and shall make findings on the issues before it which may include:

          (a) If the board finds that the person is no longer affected by mental disease or defect, or, if so affected, no longer presents a substantial danger to others, the board shall order the person discharged from commitment or from conditional release.

          (b) If the board finds that the person is still affected by a mental disease or defect and is a substantial danger to others, but can be controlled adequately if conditionally released with treatment as a condition of release, the board shall order the person conditionally released as provided in ORS 161.336.

          (c) If the board finds that the person has not recovered from the mental disease or defect and is a substantial danger to others and cannot adequately be controlled if conditionally released on supervision, the board shall order the person committed to, or retained in, a state hospital designated by the [Department of Human Services] Oregon Health Authority if the person is at least 18 years of age, or a secure intensive community inpatient facility designated by the [Department of Human Services] authority if the person is under 18 years of age, for care, custody and treatment.

          (2) At any time, the board may appoint a psychiatrist or licensed psychologist to examine the person and to submit a report to the board. Reports filed with the board pursuant to the examination shall include, but need not be limited to, an opinion as to the mental condition of the person and whether the person presents a substantial danger to others, and whether the person could be adequately controlled with treatment as a condition of release. To facilitate the examination of the person, the board may order the person placed in the temporary custody of any state hospital or other suitable facility.

          (3) The board may make the determination regarding discharge or conditional release based upon the written reports submitted pursuant to this section. If any member of the board desires further information from the examining psychiatrist or licensed psychologist who submitted the report, these persons shall be summoned by the board to give testimony. The board shall consider all evidence available to it which is material, relevant and reliable regarding the issues before the board. Such evidence may include but is not limited to the record of trial, the information supplied by the attorney representing the state or by any other interested party, including the person, and information concerning the person’s mental condition and the entire psychiatric and criminal history of the person. All evidence of a type commonly relied upon by reasonably prudent persons in the conduct of their serious affairs shall be admissible at hearings. Testimony shall be taken upon oath or affirmation of the witness from whom received. The officer presiding at the hearing shall administer oaths or affirmations to witnesses.

          (4) The board shall furnish to the person about whom the hearing is being conducted, the attorney representing the person, the Attorney General, the district attorney and the court or department of the county from which the person was committed written notice of any hearing pending under this section within a reasonable time prior to the hearing. The notice shall include:

          (a) The time, place and location of the hearing.

          (b) The nature of the hearing and the specific action for which a hearing has been requested, the issues to be considered at the hearing and a reference to the particular sections of the statutes and rules involved.

          (c) A statement of the authority and jurisdiction under which the hearing is to be held.

          (d) A statement of all rights under subsection (6) of this section.

          (5) Prior to the commencement of a hearing, the board or presiding officer shall serve personally or by mail a written notice to each party as provided in ORS 183.413 (2).

          (6) At the hearing, the person about whom the hearing is being held shall have the right:

          (a) To appear at all proceedings held pursuant to this section, except board deliberations.

          (b) To cross-examine all witnesses appearing to testify at the hearing.

          (c) To subpoena witnesses and documents as provided in ORS 161.395.

          (d) To be represented by suitable legal counsel possessing skills and experience commensurate with the nature and complexity of the case, to consult with counsel prior to the hearing and, if financially eligible, to have suitable counsel appointed at state expense.

          (e) To examine all information, documents and reports which the board considers. If then available to the board, the information, documents and reports shall be disclosed to the person so as to allow examination prior to the hearing.

          (7) A record shall be kept of all hearings before the board, except board deliberations.

          (8) Upon request of any party before the board, or on its own motion, the board may continue a hearing for a reasonable period not to exceed 60 days to obtain additional information or testimony or for other good cause shown.

          (9) Within 15 days following the conclusion of the hearing, the board shall provide to the person, the attorney representing the person, the Attorney General or other attorney representing the state, if any, written notice of the board’s decision.

          (10) The burden of proof on all issues at hearings of the board shall be by a preponderance of the evidence.

          (11) If the board determines that the person about whom the hearing is being held is financially eligible, the board shall appoint suitable counsel to represent the person. Counsel so appointed shall be an attorney who satisfies the professional qualifications established by the Public Defense Services Commission under ORS 151.216. The public defense services executive director shall determine and allow fair compensation for counsel appointed under this subsection and the reasonable expenses of the person in respect to the hearing. Compensation payable to appointed counsel shall not be less than the applicable compensation level established under ORS 151.216. The compensation and expenses so allowed shall be paid by the public defense services executive director from funds available for the purpose.

          (12) The Attorney General may represent the state at contested hearings before the board unless the district attorney of the county from which the person was committed elects to represent the state. The district attorney of the county from which the person was committed shall cooperate with the Attorney General in securing the material necessary for presenting a contested hearing before the board. If the district attorney elects to represent the state, the district attorney shall give timely written notice of such election to the Attorney General, the board and the attorney representing the person.

 

          SECTION 106. ORS 161.365 is amended to read:

          161.365. (1) Whenever the court has reason to doubt the defendant’s fitness to proceed by reason of incapacity as defined in ORS 161.360, the court may call to its assistance in reaching its decision any witness and may appoint a psychiatrist or psychologist to examine the defendant and advise the court.

          (2) If the court determines the assistance of a psychiatrist or psychologist would be helpful, the court may order the defendant to be committed for the purpose of an examination for a period not exceeding 30 days to a state mental hospital designated by the [Department of Human Services] Oregon Health Authority if the defendant is at least 18 years of age, or to a secure intensive community inpatient facility designated by the [Department of Human Services] authority if the defendant is under 18 years of age. The report of each examination shall include, but is not necessarily limited to, the following:

          (a) A description of the nature of the examination;

          (b) A statement of the mental condition of the defendant; and

          (c) If the defendant suffers from a mental disease or defect, an opinion as to whether the defendant is incapacitated within the definition set out in ORS 161.360.

          (3) Except when the defendant and the court both request to the contrary, the report may not contain any findings or conclusions as to whether the defendant as a result of mental disease or defect was subject to the provisions of ORS 161.295 or 161.300 at the time of the criminal act charged.

          (4) If the examination by the psychiatrist or psychologist cannot be conducted by reason of the unwillingness of the defendant to participate therein, the report shall so state and shall include, if possible, an opinion as to whether such unwillingness of the defendant was the result of mental disease or defect affecting capacity to proceed.

          (5) The report of the examination shall be filed in triplicate with the clerk of the court, who shall cause copies to be delivered to the district attorney and to counsel for defendant.

          (6) When upon motion of the court or a financially eligible defendant, the court has ordered a psychiatric or psychological examination of the defendant, a county or justice court shall order the county to pay, and a circuit court shall order the public defense services executive director to pay from funds available for the purpose:

          (a) A reasonable fee if the examination of the defendant is conducted by a psychiatrist or psychologist in private practice; and

          (b) All costs including transportation of the defendant if the examination is conducted by a psychiatrist or psychologist in the employ of the [Department of Human Services] Oregon Health Authority or a community mental health [and developmental disabilities] program established under ORS 430.610 to 430.670.

          (7) When such an examination is ordered at the request or with the acquiescence of a defendant who is determined not to be financially eligible, the examination shall be performed at the defendant’s expense. When such an examination is ordered at the request of the prosecution, the county shall pay for the expense of the examination.

 

          SECTION 107. ORS 161.370 is amended to read:

          161.370. (1) When the defendant’s fitness to proceed is drawn in question, the issue shall be determined by the court. If neither the prosecuting attorney nor counsel for the defendant contests the finding of the report filed by a psychiatrist or psychologist under ORS 161.365, the court may make the determination on the basis of such report. If the finding is contested, the court shall hold a hearing on the issue. If the report is received in evidence upon such hearing, the party who contests the finding thereof shall have the right to summon and to cross-examine any psychiatrist or psychologist who submitted the report and to offer evidence upon the issue. Other evidence regarding the defendant’s fitness to proceed may be introduced by either party.

          (2) If the court determines that the defendant lacks fitness to proceed, the proceeding against the defendant shall be suspended, except as provided in subsection (12) of this section, and the court shall commit the defendant to the custody of the superintendent of a state mental hospital designated by the [Department of Human Services] Oregon Health Authority if the defendant is at least 18 years of age, or to the custody of the director of a secure intensive community inpatient facility designated by the [Department of Human Services] authority if the defendant is under 18 years of age, or shall release the defendant on supervision for as long as such unfitness shall endure. The court may release the defendant on supervision if it determines that care other than commitment for incapacity to stand trial would better serve the defendant and the community. It may place conditions which it deems appropriate on the release, including the requirement that the defendant regularly report to the [Department of Human Services] authority or a community mental health [and developmental disabilities] program for examination to determine if the defendant has regained capacity to stand trial. When the court, on its own motion or upon the application of the superintendent of the hospital or director of the secure intensive community inpatient facility in which the defendant is committed, a person examining the defendant as a condition of release on supervision, or either party, determines, after a hearing, if a hearing is requested, that the defendant has regained fitness to proceed, the proceeding shall be resumed. If, however, the court is of the view that so much time has elapsed since the commitment or release of the defendant on supervision that it would be unjust to resume the criminal proceeding, the court on motion of either party may dismiss the charge and may order the defendant to be discharged or cause a proceeding to be commenced forthwith under ORS 426.070 to 426.170 or 427.235 to 427.290.

          (3) The superintendent of a state hospital or director of a secure intensive community inpatient facility shall cause the defendant to be evaluated within 60 days from the defendant’s delivery into the superintendent’s or director’s custody, for the purpose of determining whether there is a substantial probability that, in the foreseeable future, the defendant will have the capacity to stand trial.

          (4) In addition, the superintendent or director shall:

          (a) Immediately notify the committing court if the defendant, at any time, gains or regains the capacity to stand trial or will never have the capacity to stand trial.

          (b) Within 90 days of the defendant’s delivery into the superintendent’s or director’s custody, notify the committing court that:

          (A) The defendant has the present capacity to stand trial;

          (B) There is no substantial probability that, in the foreseeable future, the defendant will gain or regain the capacity to stand trial; or

          (C) There is a substantial probability that, in the foreseeable future, the defendant will gain or regain the capacity to stand trial. If such a probability exists, the superintendent or director shall give the court an estimate of the time in which the defendant, with appropriate treatment, is expected to gain or regain capacity.

          (5) If the superintendent or director determines that there is a substantial probability that, in the foreseeable future, the defendant will gain or regain the capacity to stand trial, unless the court otherwise orders, the defendant shall remain in the superintendent’s or director’s custody where the defendant shall receive treatment designed for the purpose of enabling the defendant to gain or regain capacity. In keeping with the notice requirement under subsection (4)(b) of this section, the superintendent or director shall, for the duration of the defendant’s period of commitment, submit a progress report to the committing court, concerning the defendant’s capacity or incapacity, at least once every 180 days as measured from the date of the defendant’s delivery into the superintendent’s or director’s custody.

          (6) A defendant who remains committed under subsection (5) of this section shall be discharged within a period of time that is reasonable for making a determination concerning whether or not, and when, the defendant may gain or regain capacity. However, regardless of the number of charges with which the defendant is accused, in no event shall the defendant be committed for longer than whichever of the following, measured from the defendant’s initial custody date, is shorter:

          (a) Three years; or

          (b) A period of time equal to the maximum sentence the court could have imposed if the defendant had been convicted.

          (7) The superintendent or director shall notify the committing court of the defendant’s impending discharge 30 days before the date on which the superintendent or director is required to discharge the defendant under subsection (6) of this section.

          (8) When the committing court receives a notice from the superintendent or director under either subsection (4) or (7) of this section concerning the defendant’s progress or lack thereof, the committing court shall determine after a hearing, if a hearing is requested, whether the defendant presently has the capacity to stand trial.

          (9) If under subsection (8) of this section the court determines that the defendant lacks the capacity to stand trial, the court shall further determine whether there is a substantial probability that the defendant, in the foreseeable future, will gain or regain the capacity to stand trial and whether the defendant is entitled to discharge under subsection (6) of this section. If the court determines that there is no substantial probability that the defendant, in the foreseeable future, will gain or regain the capacity to stand trial or that the defendant is entitled to discharge under subsection (6) of this section, the court shall dismiss, without prejudice, all charges against the defendant and:

          (a) Order that the defendant be discharged; or

          (b) Initiate commitment proceedings under ORS 426.070 or 427.235 to 427.290.

          (10) All notices required under this section shall be filed with the clerk of the court and delivered to both the district attorney and the counsel for the defendant.

          (11) If the defendant regains fitness to proceed, the term of any sentence received by the defendant for conviction of the crime charged shall be reduced by the amount of time the defendant was committed under this section to the custody of a state mental hospital, or to the custody of a secure intensive community inpatient facility, designated by the [Department of Human Services] Oregon Health Authority.

          (12) The fact that the defendant is unfit to proceed does not preclude any objection through counsel and without the personal participation of the defendant on the grounds that the indictment is insufficient, that the statute of limitations has run, that double jeopardy principles apply or upon any other ground at the discretion of the court which the court deems susceptible of fair determination prior to trial.

 

          SECTION 108. ORS 161.375 is amended to read:

          161.375. (1) When a patient, who has been placed at the Oregon State Hospital for evaluation, care, custody and treatment under the jurisdiction of the Psychiatric Security Review Board or by court order under ORS 161.315, 161.365 or 161.370, has escaped or is absent without authorization from the Oregon State Hospital or from the custody of any person in whose charge the superintendent has placed the patient, the superintendent may order the arrest and detention of the patient.

          (2) When a patient, who has been placed at a secure intensive community inpatient facility for evaluation, care, custody and treatment under the jurisdiction of the Psychiatric Security Review Board or by court order under ORS 161.315, 161.365, 161.370 or 419C.527, has escaped or is absent without authorization from the facility or from the custody of any person in whose charge the director of the facility has placed the patient, the director of the facility shall notify the Director of [Human Services. The Director of Human Services] the Oregon Health Authority. The Director of the Oregon Health Authority may order the arrest and detention of the patient.

          (3) The superintendent or the [Director of Human Services] Director of the Oregon Health Authority may issue an order under this section based upon a reasonable belief that grounds exist for issuing the order. When reasonable, the superintendent or the [Director of Human Services] Director of the Oregon Health Authority shall investigate to ascertain whether such grounds exist.

          (4) Any order issued by the superintendent or the [Director of Human Services] Director of the Oregon Health Authority as authorized by this section constitutes full authority for the arrest and detention of the patient and all laws applicable to warrant or arrest apply to the order. An order issued by the superintendent or the [Director of Human Services] Director of the Oregon Health Authority under this section expires 72 hours after being signed by the superintendent or the [Director of Human Services] Director of the Oregon Health Authority.

          (5) As used in this section, “superintendent” means the superintendent of the Oregon State Hospital or the superintendent’s authorized representative.

 

          SECTION 109. ORS 161.385 is amended to read:

          161.385. (1) There is hereby created a Psychiatric Security Review Board consisting of 10 members appointed by the Governor and subject to confirmation by the Senate under section 4, Article III of the Oregon Constitution.

          (2) The membership of the board may not include any district attorney, deputy district attorney or public defender. The Governor shall appoint:

          (a) A psychiatrist experienced in the criminal justice system and not otherwise employed on a full-time basis by the [Department of Human Services] Oregon Health Authority or a community mental health [and developmental disabilities] program;

          (b) A licensed psychologist experienced in the criminal justice system and not otherwise employed on a full-time basis by the [Department of Human Services] authority or a community mental health [and developmental disabilities] program;

          (c) A member with substantial experience in the processes of parole and probation;

          (d) A lawyer with substantial experience in criminal trial practice;

          (e) A psychiatrist certified, or eligible to be certified, by the Oregon Medical Board in child psychiatry who is experienced in the juvenile justice system and not employed on a full-time basis by the [Department of Human Services] authority or a community mental health [and developmental disabilities] program;

          (f) A licensed psychologist who is experienced in child psychology and the juvenile justice system and not employed on a full-time basis by the [Department of Human Services] authority or a community mental health [and developmental disabilities] program;

          (g) A member with substantial experience in the processes of juvenile parole and probation;

          (h) A lawyer with substantial experience in juvenile law practice; and

          (i) Two members of the general public.

          (3) The term of office of each member is four years. The Governor at any time may remove any member for inefficiency, neglect of duty or malfeasance in office. Before the expiration of the term of a member, the Governor shall appoint a successor whose term begins on July 1 next following. A member is eligible for reappointment. If there is a vacancy for any cause, the Governor shall make an appointment to become immediately effective for the unexpired term.

          (4) A member of the board not otherwise employed full-time by the state shall be paid on a per diem basis an amount equal to $289.22, adjusted according to the executive pay plan for the biennium, for each day during which the member is engaged in the performance of official duties, including necessary travel time. In addition, subject to ORS 292.220 to 292.250 regulating travel and other expenses of state officers and employees, the member shall be reimbursed for actual and necessary travel and other expenses incurred in the performance of official duties.

          (5) Subject to any applicable provision of the State Personnel Relations Law, the board may hire employees to aid it in performing its duties.

          (6) The board consists of two five-member panels. The adult panel is responsible for persons placed under the board’s jurisdiction under ORS 161.327 and 419C.544 and consists of those members appointed under subsection (2)(a) to (d) of this section and one of the public members. The juvenile panel is responsible for young persons placed under the board’s jurisdiction under ORS 419C.529 and consists of those members appointed under subsection (2)(e) to (h) of this section and the other public member.

          (7)(a) Each panel shall select one of its members as chairperson to serve for a one-year term with such duties and powers as the panel determines.

          (b) A majority of the voting members of a panel constitutes a quorum for the transaction of business of the panel.

          (8) Each panel shall meet at least twice every month, unless the chairperson determines that there is not sufficient business before the panel to warrant a meeting at the scheduled time. The panel shall also meet at other times and places specified by the call of the chairperson or of a majority of the members of the panel.

          (9)(a) When a person over whom a panel of the board exercises its jurisdiction is adversely affected or aggrieved by a final order of the panel, the person is entitled to judicial review of the final order. The person is entitled on judicial review to suitable counsel possessing skills and experience commensurate with the nature and complexity of the case. If the person is financially eligible, suitable counsel shall be appointed by the reviewing court in the manner provided in ORS 138.500 (1). If the person is financially eligible, the public defense services executive director shall determine and pay, as provided in ORS 138.500, the cost of briefs, any other expenses of the person necessary to the review and compensation for counsel appointed for the person. The costs, expenses and compensation so allowed shall be paid as provided in ORS 138.500.

          (b) The order and the proceedings underlying the order are subject to review by the Court of Appeals upon petition to that court filed within 60 days of the order for which review is sought. The panel shall submit to the court the record of the proceeding or, if the person agrees, a shortened record. The record may include a certified true copy of a tape recording of the proceedings at a hearing in accordance with ORS 161.346. A copy of the record transmitted shall be delivered to the person by the panel.

          (c) The court may affirm, reverse or remand the order on the same basis as provided in ORS 183.482 (8).

          (d) The filing of the petition does not stay the panel’s order, but the panel or the Court of Appeals may order a stay upon application on such terms as are deemed proper.

 

          SECTION 110. ORS 161.390 is amended to read:

          161.390. (1) The [Department of Human Services] Oregon Health Authority shall promulgate rules for the assignment of persons to state mental hospitals or secure intensive community inpatient facilities under ORS 161.341, 161.365 and 161.370 and for establishing standards for evaluation and treatment of persons committed to a state hospital or a secure intensive community inpatient facility, designated by the [department] authority, or ordered to a community mental health [and developmental disabilities] program under ORS 161.315 to 161.351 [and 428.210].

          (2) Whenever the Psychiatric Security Review Board requires the preparation of a predischarge or preconditional release plan before a hearing or as a condition of granting discharge or conditional release for a person committed under ORS 161.327 or 161.341 to a state hospital or a secure intensive community inpatient facility for custody, care and treatment, the [Department of Human Services] authority is responsible for and shall prepare the plan.

          (3) In carrying out a conditional release plan prepared under subsection (2) of this section, the [Department of Human Services] authority may contract with a community mental health [and developmental disabilities] program, other public agency or private corporation or an individual to provide supervision and treatment for the conditionally released person.

 

          SECTION 111. ORS 165.698 is amended to read:

          165.698. The prosecuting attorney shall notify the [Department of Human Services] Oregon Health Authority and any appropriate licensing boards of the conviction of a person under ORS 165.692.

 

          SECTION 112. ORS 166.250 is amended to read:

          166.250. (1) Except as otherwise provided in this section or ORS 166.260, 166.270, 166.274, 166.291, 166.292 or 166.410 to 166.470, a person commits the crime of unlawful possession of a firearm if the person knowingly:

          (a) Carries any firearm concealed upon the person;

          (b) Possesses a handgun that is concealed and readily accessible to the person within any vehicle; or

          (c) Possesses a firearm and:

          (A) Is under 18 years of age;

          (B)(i) While a minor, was found to be within the jurisdiction of the juvenile court for having committed an act which, if committed by an adult, would constitute a felony or a misdemeanor involving violence, as defined in ORS 166.470; and

          (ii) Was discharged from the jurisdiction of the juvenile court within four years prior to being charged under this section;

          (C) Has been convicted of a felony or found guilty, except for insanity under ORS 161.295, of a felony;

          (D) Was committed to the [Department of Human Services] Oregon Health Authority under ORS 426.130; or

          (E) Was found to be mentally ill and subject to an order under ORS 426.130 that the person be prohibited from purchasing or possessing a firearm as a result of that mental illness.

          (2) This section does not prohibit:

          (a) A minor, who is not otherwise prohibited under subsection (1)(c) of this section, from possessing a firearm:

          (A) Other than a handgun, if the firearm was transferred to the minor by the minor’s parent or guardian or by another person with the consent of the minor’s parent or guardian; or

          (B) Temporarily for hunting, target practice or any other lawful purpose; or

          (b) Any citizen of the United States over the age of 18 years who resides in or is temporarily sojourning within this state, and who is not within the excepted classes prescribed by ORS 166.270 and subsection (1) of this section, from owning, possessing or keeping within the person’s place of residence or place of business any handgun, and no permit or license to purchase, own, possess or keep any such firearm at the person’s place of residence or place of business is required of any such citizen. As used in this subsection, “residence” includes a recreational vessel or recreational vehicle while used, for whatever period of time, as residential quarters.

          (3) Firearms carried openly in belt holsters are not concealed within the meaning of this section.

          (4) Unlawful possession of a firearm is a Class A misdemeanor.

 

          SECTION 113. ORS 166.291 is amended to read:

          166.291. (1) The sheriff of a county, upon a person’s application for an Oregon concealed handgun license, upon receipt of the appropriate fees and after compliance with the procedures set out in this section, shall issue the person a concealed handgun license if the person:

          (a)(A) Is a citizen of the United States; or

          (B) Is a legal resident alien who can document continuous residency in the county for at least six months and has declared in writing to the United States Citizenship and Immigration Services the intent to acquire citizenship status and can present proof of the written declaration to the sheriff at the time of application for the license;

          (b) Is at least 21 years of age;

          (c) Is a resident of the county;

          (d) Has no outstanding warrants for arrest;

          (e) Is not free on any form of pretrial release;

          (f) Demonstrates competence with a handgun by any one of the following:

          (A) Completion of any hunter education or hunter safety course approved by the State Department of Fish and Wildlife or a similar agency of another state if handgun safety was a component of the course;

          (B) Completion of any National Rifle Association firearms safety or training course if handgun safety was a component of the course;

          (C) Completion of any firearms safety or training course or class available to the general public offered by law enforcement, community college, or private or public institution or organization or firearms training school utilizing instructors certified by the National Rifle Association or a law enforcement agency if handgun safety was a component of the course;

          (D) Completion of any law enforcement firearms safety or training course or class offered for security guards, investigators, reserve law enforcement officers or any other law enforcement officers if handgun safety was a component of the course;

          (E) Presents evidence of equivalent experience with a handgun through participation in organized shooting competition or military service;

          (F) Is licensed or has been licensed to carry a firearm in this state, unless the license has been revoked; or

          (G) Completion of any firearms training or safety course or class conducted by a firearms instructor certified by a law enforcement agency or the National Rifle Association if handgun safety was a component of the course;

          (g) Has never been convicted of a felony or found guilty, except for insanity under ORS 161.295, of a felony;

          (h) Has not been convicted of a misdemeanor or found guilty, except for insanity under ORS 161.295, of a misdemeanor within the four years prior to the application;

          (i) Has not been committed to the [Department of Human Services] Oregon Health Authority under ORS 426.130;

          (j) Has not been found to be mentally ill and is not subject to an order under ORS 426.130 that the person be prohibited from purchasing or possessing a firearm as a result of that mental illness;

          (k) Has been discharged from the jurisdiction of the juvenile court for more than four years if, while a minor, the person was found to be within the jurisdiction of the juvenile court for having committed an act that, if committed by an adult, would constitute a felony or a misdemeanor involving violence, as defined in ORS 166.470;

          (L) Has not been convicted of an offense involving controlled substances or participated in a court-supervised drug diversion program, except this disability does not operate to exclude a person if:

          (A) The person has been convicted only once of violating ORS 475.864 (3) and has not completed a court-supervised drug diversion program under ORS 135.907; or

          (B) The person has completed a court-supervised drug diversion program under ORS 135.907 and has not been convicted of violating ORS 475.864 (3);

          (m) Is not subject to a citation issued under ORS 163.735 or an order issued under ORS 30.866, 107.700 to 107.735 or 163.738;

          (n) Has not received a dishonorable discharge from the Armed Forces of the United States; and

          (o) Is not required to register as a sex offender in any state.

          (2) A person who has been granted relief under ORS 166.274 or 166.293 or 18 U.S.C. 925(c) or has had the person’s record expunged under the laws of this state or equivalent laws of other jurisdictions is not subject to the disabilities in subsection (1)(g) to (L) of this section.

          (3) Before the sheriff may issue a license:

          (a) The application must state the applicant’s legal name, current address and telephone number, date and place of birth, hair and eye color and height and weight. The application must also list the applicant’s residence address or addresses for the previous three years. The application must contain a statement by the applicant that the applicant meets the requirements of subsection (1) of this section. The application may include the Social Security number of the applicant if the applicant voluntarily provides this number. The application must be signed by the applicant.

          (b) The applicant must submit to fingerprinting and photographing by the sheriff. The sheriff shall fingerprint and photograph the applicant and shall conduct any investigation necessary to corroborate the requirements listed under subsection (1) of this section. If a nationwide criminal records check is necessary, the sheriff shall request the Department of State Police to conduct the check, including fingerprint identification, through the Federal Bureau of Investigation. The Federal Bureau of Investigation shall return the fingerprint cards used to conduct the criminal records check and may not keep any record of the fingerprints. The Department of State Police shall report the results of the fingerprint-based criminal records check to the sheriff. The Department of State Police shall also furnish the sheriff with any information about the applicant that the Department of State Police may have in its possession from its central bureau of criminal identification including, but not limited to, manual or computerized criminal offender information.

          (4) Application forms for concealed handgun licenses shall be supplied by the sheriff upon request. The forms shall be uniform throughout the state in substantially the following form:

______________________________________________________________________________

 

APPLICATION FOR LICENSE TO CARRY CONCEALED HANDGUN

 

Date________

 

          I hereby declare as follows:

          I am a citizen of the United States or a legal resident alien who can document continuous residency in the county for at least six months and have declared in writing to the United States Citizenship and Immigration Services my intention to become a citizen and can present proof of the written declaration to the sheriff at the time of this application. I am at least 21 years of age. I have been discharged from the jurisdiction of the juvenile court for more than four years if, while a minor, I was found to be within the jurisdiction of the juvenile court for having committed an act that, if committed by an adult, would constitute a felony or a misdemeanor involving violence, as defined in ORS 166.470. I have never been convicted of a felony or found guilty, except for insanity under ORS 161.295, of a felony in the State of Oregon or elsewhere. I have not, within the last four years, been convicted of a misdemeanor or found guilty, except for insanity under ORS 161.295, of a misdemeanor. Except as provided in ORS 166.291 (1)(L), I have not been convicted of an offense involving controlled substances or completed a court-supervised drug diversion program. There are no outstanding warrants for my arrest and I am not free on any form of pretrial release. I have not been committed to the [Department of Human Services] Oregon Health Authority under ORS 426.130, nor have I been found mentally ill and presently subject to an order prohibiting me from purchasing or possessing a firearm because of mental illness. If any of the previous conditions do apply to me, I have been granted relief or wish to petition for relief from the disability under ORS 166.274 or 166.293 or 18 U.S.C. 925(c) or have had the records expunged. I am not subject to a citation issued under ORS 163.735 or an order issued under ORS 30.866, 107.700 to 107.735 or 163.738. I have never received a dishonorable discharge from the Armed Forces of the United States. I am not required to register as a sex offender in any state. I understand I will be fingerprinted and photographed.

 

Legal name ____________

Age ______ Date of birth ________

Place of birth ____________

Social Security number __________

(Disclosure of your Social Security account number is voluntary. Solicitation of the number is authorized under ORS 166.291. It will be used only as a means of identification.)

 

Proof of identification (Two pieces of current identification are required, one of which must bear a photograph of the applicant. The type of identification and the number on the identification are to be filled in by the sheriff.):

          1.____________

          2.____________

Height ____ Weight ____

Hair color ____ Eye color ____

 

Current address ________

 (List residence addresses for the past three years on the back.)

City ____ County ____ Zip ____

Phone ____

 

I have read the entire text of this application, and the statements therein are correct and true. (Making false statements on this application is a misdemeanor.)

______________

 (Signature of Applicant)

Character references.

______________________

             Name                  Address

______________________

             Name                  Address

 

Approved ___ Disapproved ___ by ___

 

Competence with handgun demonstrated by ____ (to be filled in by sheriff) Date ____ Fee Paid ____

License No. ____

______________________________________________________________________________

 

          (5)(a) Fees for concealed handgun licenses are:

          (A) $15 to the Department of State Police for conducting the fingerprint check of the applicant.

          (B) $50 to the sheriff for the issuance or renewal of a concealed handgun license.

          (C) $15 to the sheriff for the duplication of a license because of loss or change of address.

          (b) The sheriff may enter into an agreement with the Department of Transportation to produce the concealed handgun license.

          (6) No civil or criminal liability shall attach to the sheriff or any authorized representative engaged in the receipt and review of, or an investigation connected with, any application for, or in the issuance, denial or revocation of, any license under ORS 166.291 to 166.295 as a result of the lawful performance of duties under those sections.

          (7) Immediately upon acceptance of an application for a concealed handgun license, the sheriff shall enter the applicant’s name into the Law Enforcement Data System indicating that the person is an applicant for a concealed handgun license or is a license holder.

          (8) The county sheriff may waive the residency requirement in subsection (1)(c) of this section for a resident of a contiguous state who has a compelling business interest or other legitimate demonstrated need.

          (9) For purposes of subsection (1)(c) of this section, a person is a resident of a county if the person:

          (a) Has a current Oregon driver license issued to the person showing a residence address in the county;

          (b) Is registered to vote in the county and has a memorandum card issued to the person under ORS 247.181 showing a residence address in the county;

          (c) Has documentation showing that the person currently leases or owns real property in the county; or

          (d) Has documentation showing that the person filed an Oregon tax return for the most recent tax year showing a residence address in the county.

 

          SECTION 114. ORS 166.412 is amended to read:

          166.412. (1) As used in this section:

          (a) “Antique firearm” has the meaning given that term in 18 U.S.C. 921;

          (b) “Department” means the Department of State Police;

          (c) “Firearm” has the meaning given that term in ORS 166.210, except that it does not include an antique firearm;

          (d) “Firearms transaction record” means the firearms transaction record required by 18 U.S.C. 921 to 929;

          (e) “Firearms transaction thumbprint form” means a form provided by the department under subsection (12) of this section;

          (f) “Gun dealer” means a person engaged in the business, as defined in 18 U.S.C. 921, of selling, leasing or otherwise transferring a firearm, whether the person is a retail dealer, pawnbroker or otherwise;

          (g) “Handgun” has the meaning given that term in ORS 166.210; and

          (h) “Purchaser” means a person who buys, leases or otherwise receives a firearm from a gun dealer.

          (2) Except as provided in subsections (3)(c) and (13) of this section, a gun dealer shall comply with the following before a handgun is delivered to a purchaser:

          (a) The purchaser shall present to the dealer current identification meeting the requirements of subsection (4) of this section.

          (b) The gun dealer shall complete the firearms transaction record and obtain the signature of the purchaser on the record.

          (c) The gun dealer shall obtain the thumbprints of the purchaser on the firearms transaction thumbprint form and attach the form to the gun dealer’s copy of the firearms transaction record to be filed with that copy.

          (d) The gun dealer shall request by telephone that the department conduct a criminal history record check on the purchaser and shall provide the following information to the department:

          (A) The federal firearms license number of the gun dealer;

          (B) The business name of the gun dealer;

          (C) The place of transfer;

          (D) The name of the person making the transfer;

          (E) The make, model, caliber and manufacturer’s number of the handgun being transferred;

          (F) The name and date of birth of the purchaser;

          (G) The Social Security number of the purchaser if the purchaser voluntarily provides this number to the gun dealer; and

          (H) The type, issuer and identification number of the identification presented by the purchaser.

          (e) The gun dealer shall receive a unique approval number for the transfer from the department and record the approval number on the firearms transaction record and on the firearms transaction thumbprint form.

          (f) The gun dealer may destroy the firearms transaction thumbprint form five years after the completion of the firearms transaction thumbprint form.

          (3)(a) Upon receipt of a request of the gun dealer for a criminal history record check, the department shall immediately, during the gun dealer’s telephone call or by return call:

          (A) Determine, from criminal records and other information available to it, whether the purchaser is disqualified under ORS 166.470 from completing the purchase; and

          (B) Notify the dealer when a purchaser is disqualified from completing the transfer or provide the dealer with a unique approval number indicating that the purchaser is qualified to complete the transfer.

          (b) If the department is unable to determine if the purchaser is qualified or disqualified from completing the transfer within 30 minutes, the department shall notify the dealer and provide the dealer with an estimate of the time when the department will provide the requested information.

          (c) If the department fails to provide a unique approval number to a gun dealer or to notify the gun dealer that the purchaser is disqualified under paragraph (a) of this subsection before the close of the gun dealer’s next business day following the request by the dealer for a criminal history record check, the dealer may deliver the handgun to the purchaser.

          (4)(a) Identification required of the purchaser under subsection (2) of this section shall include one piece of current identification bearing a photograph and the date of birth of the purchaser that:

          (A) Is issued under the authority of the United States Government, a state, a political subdivision of a state, a foreign government, a political subdivision of a foreign government, an international governmental organization or an international quasi-governmental organization; and

          (B) Is intended to be used for identification of an individual or is commonly accepted for the purpose of identification of an individual.

          (b) If the identification presented by the purchaser under paragraph (a) of this subsection does not include the current address of the purchaser, the purchaser shall present a second piece of current identification that contains the current address of the purchaser. The Superintendent of State Police may specify by rule the type of identification that may be presented under this paragraph.

          (c) The department may require that the dealer verify the identification of the purchaser if that identity is in question by sending the thumbprints of the purchaser to the department.

          (5) The department shall establish a telephone number that shall be operational seven days a week between the hours of 8 a.m. and 10 p.m. for the purpose of responding to inquiries from dealers for a criminal history record check under this section.

          (6) No public employee, official or agency shall be held criminally or civilly liable for performing the investigations required by this section provided the employee, official or agency acts in good faith and without malice.

          (7)(a) The department may retain a record of the information obtained during a request for a criminal records check for no more than five years.

          (b) The record of the information obtained during a request for a criminal records check by a gun dealer is exempt from disclosure under public records law.

          (8) The [Department of Human Services] Oregon Health Authority shall provide the Department of State Police with direct electronic access to information from the [Department of Human Services’] authority’s database of information identifying persons meeting the criteria in ORS 166.470 (1)(e) and (f) who were committed or subject to an order under ORS 426.130. The [Department of State Police and the Department of Human Services] department and the authority shall enter into an agreement describing the access to information under this subsection.

          (9) A law enforcement agency may inspect the records of a gun dealer relating to transfers of handguns with the consent of a gun dealer in the course of a reasonable inquiry during a criminal investigation or under the authority of a properly authorized subpoena or search warrant.

          (10) When a handgun is delivered, it shall be unloaded.

          (11) In accordance with applicable provisions of ORS chapter 183, the Superintendent of State Police may adopt rules necessary for:

          (a) The design of the firearms transaction thumbprint form;

          (b) The maintenance of a procedure to correct errors in the criminal records of the department;

          (c) The provision of a security system to identify dealers who request a criminal history record check under subsection (2) of this section; and

          (d) The creation and maintenance of a database of the business hours of gun dealers.

          (12) The department shall publish the firearms transaction thumbprint form and shall furnish the form to gun dealers on application at cost.

          (13) This section does not apply to transactions between persons licensed as dealers under 18 U.S.C. 923.

 

          SECTION 115. ORS 166.470 is amended to read:

          166.470. (1) Unless relief has been granted under ORS 166.274, 18 U.S.C. 925(c) or the expunction laws of this state or an equivalent law of another jurisdiction, a person may not intentionally sell, deliver or otherwise transfer any firearm when the transferor knows or reasonably should know that the recipient:

          (a) Is under 18 years of age;

          (b) Has been convicted of a felony or found guilty, except for insanity under ORS 161.295, of a felony;

          (c) Has any outstanding felony warrants for arrest;

          (d) Is free on any form of pretrial release for a felony;

          (e) Was committed to the [Department of Human Services] Oregon Health Authority under ORS 426.130;

          (f) After January 1, 1990, was found to be mentally ill and subject to an order under ORS 426.130 that the person be prohibited from purchasing or possessing a firearm as a result of that mental illness; or

          (g) Has been convicted of a misdemeanor involving violence or found guilty, except for insanity under ORS 161.295, of a misdemeanor involving violence within the previous four years. As used in this paragraph, “misdemeanor involving violence” means a misdemeanor described in ORS 163.160, 163.187, 163.190, 163.195 or 166.155 (1)(b).

          (2) A person may not sell, deliver or otherwise transfer any firearm that the person knows or reasonably should know is stolen.

          (3) Subsection (1)(a) of this section does not prohibit:

          (a) The parent or guardian, or another person with the consent of the parent or guardian, of a minor from transferring to the minor a firearm, other than a handgun; or

          (b) The temporary transfer of any firearm to a minor for hunting, target practice or any other lawful purpose.

          (4) Violation of this section is a Class A misdemeanor.

 

          SECTION 116. ORS 169.076 is amended to read:

          169.076. Each local correctional facility shall:

          (1) Provide sufficient staff to perform all audio and visual functions involving security, control, custody and supervision of all confined detainees and prisoners, with personal inspection at least once each hour. The supervision may include the use of electronic monitoring equipment when approved by the Department of Corrections and the governing body of the area in which the facility is located.

          (2) Have a comprehensive written policy with respect to:

          (a) Legal confinement authority.

          (b) Denial of admission.

          (c) Telephone calls.

          (d) Admission and release medical procedures.

          (e) Medication and prescriptions.

          (f) Personal property accountability which complies with ORS 133.455.

          (g) Vermin and communicable disease control.

          (h) Release process to include authority, identification and return of personal property.

          (i) Rules of the facility governing correspondence and visitations.

          (3) Formulate and publish plans to meet emergencies involving escape, riots, assaults, fires, rebellions and other types of emergencies; and regulations for the operation of the facility.

          (4) Not administer any physical punishment to any prisoner at any time.

          (5) Provide for emergency medical and dental health, having written policies providing for:

          (a) Licensed physician or nurse practitioner review of the facility’s medical and dental plans.

          (b) The security of medication and medical supplies.

          (c) A medical and dental record system to include request for medical and dental attention, treatment prescribed, prescriptions, special diets and other services provided.

          (d) First aid supplies and staff first aid training.

          (6) Prohibit firearms from the security area of the facility except in times of emergency as determined by the administrator of the facility.

          (7) Insure that confined detainees and prisoners:

          (a) Will be fed daily at least three meals served at regular times, with no more than 14 hours between meals except when routinely absent from the facility for work or other purposes.

          (b) Will be fed nutritionally adequate meals in accordance with a plan reviewed by a registered dietitian or the [Department of Human Services] Oregon Health Authority.

          (c) Be provided special diets as prescribed by the designated facility physician or nurse practitioner.

          (d) Shall have food procured, stored, prepared, distributed and served under sanitary conditions, as defined by [the Department of Human Services rules as authorized by ORS 624.041] the authority under ORS 624.041.

          (8) Insure that the facility be clean, and provide each confined detainee or prisoner:

          (a) Materials to maintain personal hygiene.

          (b) Clean clothing twice weekly.

          (c) Mattresses and blankets that are clean and fire-retardant.

          (9) Require each prisoner to shower at least twice weekly.

          (10) Forward, without examination or censorship, each prisoner’s outgoing written communications to the Governor, jail administrator, Attorney General, judge, Department of Corrections or the attorney of the prisoner.

          (11) Keep the facility safe and secure in accordance with the State of Oregon Structural Specialty Code and Fire and Life Safety Code.

          (12) Have and provide each prisoner with written rules for inmate conduct and disciplinary procedures. If a prisoner cannot read or is unable to understand the written rules, the information shall be conveyed to the prisoner orally.

          (13) Not restrict the free exercise of religion unless failure to impose the restriction will cause a threat to facility or order.

          (14) Safeguard and insure that the prisoner’s legal rights to access to legal materials are protected.

 

          SECTION 117. ORS 169.690 is amended to read:

          169.690. (1)(a) Before the Department of Corrections, [Oregon Youth Authority or Department of Human Services] Department of Human Services, Oregon Health Authority, Oregon Youth Authority or any city, county or other public agency establishes a facility described in paragraph (c) of this subsection, the city, county, department, [youth] authority or agency must designate a citizens advisory committee in the proposed affected geographic area.

          (b) If there is an established citizens group or neighborhood organization in the affected geographic area which is established or recognized by the city or county where it is located, it shall be asked to nominate the committee. If there is none, the local government body having jurisdiction over the affected area shall appoint a committee selected from residents of the area.

          (c) The facilities to which paragraph (a) of this subsection applies are:

          (A) Halfway houses, work release centers or any other domiciliary facilities for persons released from any penal or correctional facility but still in the custody of the city, county or public agency; and

          (B) Youth care centers or other facilities authorized to accept youth offenders under ORS 419C.478.

          (2) The local governmental body having jurisdiction over the affected geographic area shall appoint to the citizens advisory committee persons from those nominated under subsection (1) of this section and shall invite the participation of officers of local governments having jurisdiction over the area.

          (3) For each proposed house, center or other facility, the agency responsible for establishing the house, center or facility shall inform fully the citizens advisory committee of each affected geographic area of the following:

          (a) The proposed location, estimated population size and use;

          (b) The numbers and qualifications of resident professional staff;

          (c) The proposed rules of conduct and discipline to be imposed on residents; and

          (d) Such other relevant information as the agency responsible for establishing the house, center or facility considers appropriate or which the advisory committee requests.

          (4) The citizens advisory committee shall advise the agency responsible for establishing the house, center or facility as to the suitability of the proposed house, center or other facility and may suggest changes in the proposal submitted under subsection (3) of this section. The advice shall be in writing and must represent the view of the majority of the committee.

          (5) If the agency responsible for establishing the house, center or facility rejects any of the advice of the citizens advisory committee, it must submit its reasons in writing to the committee.

          (6) No person serving on a committee established under this section should be entitled to receive any compensation or reimbursement for service on such committee.

 

          SECTION 118. ORS 179.010 is amended to read:

          179.010. As used in this chapter, unless the context requires otherwise[, “institutions” means the institutions designated in ORS 179.321.]:

          (1) “Institution” means the institutions designated in ORS 179.321.

          (2) “Agency” means:

          (a) The Department of Corrections when the institution is a Department of Corrections institution, as defined in ORS 421.005;

          (b) The Department of Human Services when the institution is the Eastern Oregon Training Center; or

          (c) The Oregon Health Authority when the institution is the Blue Mountain Recovery Center or an Oregon State Hospital campus.

 

          SECTION 119. ORS 179.040 is amended to read:

          179.040. (1) [The Department of Corrections and the Department of Human Services] The Department of Corrections, the Department of Human Services and the Oregon Health Authority shall:

          (a) Govern, manage and administer the affairs of the public institutions and works within their respective jurisdictions.

          (b) Enter into contracts for the planning, erection, completion and furnishings of all new buildings or additions at their respective institutions.

          (c) Subject to any applicable provisions of ORS 279A.125, 279A.255, 279A.275, 279A.280, 279A.285, 279A.290, 279B.025, 279B.240, 279B.270, 279B.275, 279B.280 and 283.110 to 283.395, enter into contracts for the purchase of supplies for their respective institutions.

          (d) Make and adopt rules, not inconsistent with law, for the guidance of the [Department of Corrections or the Department of Human Services] agencies and for the government of their respective institutions.

          (2) The [Department of Corrections and the Department of Human Services] agencies, respectively, may:

          (a) Sue and plead in all courts of law and equity.

          (b) Perform all legal and peaceful acts requisite and necessary for the successful management and maintenance of the institutions within their respective jurisdictions.

 

          SECTION 120. ORS 179.050 is amended to read:

          179.050. The [Department of Corrections and the Department of Human Services] Department of Corrections, the Department of Human Services and the Oregon Health Authority may receive, take and hold property, both real and personal, for any institution within their respective jurisdictions. Title shall be taken in the name of the state.

 

          SECTION 121. ORS 179.055 is amended to read:

          179.055. (1) The revenue from the rental or lease of property administered by an institution governed or managed by the [Department of Corrections or the Department of Human Services] Department of Corrections, the Department of Human Services or the Oregon Health Authority, except dormitory and housing rentals at institutions governed by [either department] the agencies, shall be deposited in the account of the respective [department] agency for use by the respective [department] agency to pay for the cost of administration, taxes, repairs and improvements on the property.

          (2) The [Department of Corrections or Department of Human Services] agencies may request the Oregon Department of Administrative Services to make necessary repairs and improvements on the property described in subsection (1) of this section to be paid for by the [Department of Corrections or Department of Human Services] agencies from the proceeds derived from such rental or lease of the property or from appropriations otherwise available.

 

          SECTION 122. ORS 179.065 is amended to read:

          179.065. The [Department of Corrections and the Department of Human Services] Department of Corrections, the Department of Human Services and the Oregon Health Authority shall have the same powers with respect to furnishing heat, light, power, sewage, fire protection and communications facilities to institutions under their respective jurisdictions as is granted to the Oregon Department of Administrative Services under ORS 276.210 to 276.228, 276.234 to 276.244, 276.250 and 276.252. The powers shall be exercised in accordance with and subject to the provisions of such sections.

 

          SECTION 123. ORS 179.105 is amended to read:

          179.105. (1) For a purpose of ORS 179.040, including aid and support of research in any of the institutions, the [Department of Corrections and the Department of Human Services] Department of Corrections, the Department of Human Services and the Oregon Health Authority may in their respective discretions accept from the United States or any of its agencies financial assistance and grants in the form of money or labor, or from any other source any donation or grant of land or gift of money or any other thing. Funds accepted in accordance with the provisions of this section and ORS 179.110 shall be deposited with the State Treasurer and, subject to subsection (2) of this section, are continuously appropriated to the Department of Corrections, the [or] Department of Human Services or the Oregon Health Authority, as appropriate, and may be expended by the Department of Corrections, the Department of Human Services or the Oregon Health Authority according to the conditions and terms of the grant or donation.

          (2) Funds received under subsection (1) of this section or ORS 179.110 shall be expended subject to expenditure limitations imposed on the Department of Corrections, the [or] Department of Human Services or the Oregon Health Authority by the Legislative Assembly or, in the absence of such limitations, only after approval of the Legislative Assembly or of the Emergency Board, if approval is required during the interim between sessions of the Legislative Assembly.

          (3) In any case where prior approval of the authority to expend any funds available under subsection (1) of this section or ORS 179.110 is imposed as a term or condition of receipt of such funds, the Legislative Assembly or the Emergency Board may approve expenditures of such funds prior to their receipt.

 

          SECTION 124. ORS 179.110 is amended to read:

          179.110. Subject to the approval of the Director of the Oregon Department of Administrative Services, the [Department of Corrections and the Department of Human Services] Department of Corrections, the Department of Human Services and the Oregon Health Authority, respectively, may accept and receive grants of funds from the United States or any of its agencies for the construction, equipment and betterment of any of the institutions under its jurisdiction and may cooperate with the United States or its agencies in such construction, equipment and betterment. Any balances of appropriations for capital outlay for any institution resulting from the use of funds so received shall be placed in a common fund. The Department of Corrections, [and] the Department of Human Services and the Oregon Health Authority are authorized and empowered in their discretion to expend such common fund or any portion thereof in the construction, equipment or betterment of any institution under its jurisdiction.

 

          SECTION 125. ORS 179.140 is amended to read:

          179.140. Subject to any applicable provision of ORS 279A.125, 279A.255, 279A.275, 279A.280, 279A.285, 279A.290, 279B.025, 279B.240, 279B.270, 279B.275, 279B.280, 283.110 to 283.395 and 291.232 to 291.260, all claims for supplies or materials furnished or services rendered to institutions shall be audited and approved as provided by law, upon the presentation of duly verified vouchers therefor, approved in writing by the Director of the Department of Corrections, [or by] the Director of Human Services or the Director of the Oregon Health Authority, or by their designees.

 

          SECTION 126. ORS 179.150 is amended to read:

          179.150. No officer of the Department of Corrections, [or] the Department of Human Services or the Oregon Health Authority or officer, employee or other person connected with an institution shall be pecuniarily interested in any contract for supplies or services furnished or rendered to an institution, other than the services of regular employment.

 

          SECTION 127. ORS 179.210 is amended to read:

          179.210. (1) The Department of Human Services, the Department of Corrections, the Oregon Health Authority and the Superintendent of Public Instruction may audit, allow and pay a claim for damage to property made by an employee of one of those agencies if:

          (a) The damage to property arises out of the claimant’s employment at one of the institutions or facilities operated by the [Department of Human Services or the Department of Corrections] agencies, or one of the schools operated by the Superintendent of Public Instruction under ORS 346.010; and

          (b) The employee files a written claim with the employee’s employer within 180 days after the employee discovers or should have discovered the damage.

          (2) No claim under subsection (1) of this section shall be paid:

          (a) That exceeds, in the aggregate with payments of other claims, the moneys appropriated for such purpose.

          (b) To the extent that the person incurring damage has been or may be compensated by liability insurance or otherwise.

          (c) If the [Department of Human Services, the Department of Corrections] agencies or the Superintendent of Public Instruction determines the cause or occasion of the accident resulting in damage is chargeable to the conduct or negligence of the party damaged.

 

          SECTION 128. ORS 179.230 is amended to read:

          179.230. The decision of the Department of Human Services, the Department of Corrections, the Oregon Health Authority or the Superintendent of Public Instruction to reject any claim filed under ORS 179.210 is final, and is not subject to review under ORS chapter 183, or by any other agency or court. The provisions of this section do not affect any other remedy that may be available to the claimant under law.

 

          SECTION 129. ORS 179.240 is amended to read:

          179.240. (1) If any person owes a debt to this state or a state agency, and the debt has been fixed by final judgment of a court of competent jurisdiction or is no longer subject to judicial review, the [Department of Corrections or the Department of Human Services] Department of Corrections, the Department of Human Services or the Oregon Health Authority shall deduct the amount of the debt from any award made to that person under ORS 179.210.

          (2) The [Department of Corrections or the Department of Human Services] agencies shall request the State Treasurer to transfer to the appropriate fund or account to which the debt is owed, an amount equal to the amount deducted from the award under subsection (1) of this section, for use during that biennium in accordance with law by the state agency administering the fund or account to which the debt is owed. The State Treasurer shall evidence the transfer by proper bookkeeping entries. If the [Department of Corrections, Department of Human Services] Department of Corrections, the Department of Human Services, the Oregon Health Authority or the State Treasurer cannot determine the appropriate fund or account, the amount shall be transferred to the General Fund for general governmental purposes.

          (3) Any debt owed by a person to this state or a state agency is satisfied, upon the completion of a transfer made pursuant to subsection (2) of this section, to the extent of the amount so transferred.

 

          SECTION 130. ORS 179.321 is amended to read:

          179.321. (1) The Department of Human Services shall operate, control, manage and supervise [the Blue Mountain Recovery Center, the Eastern Oregon Training Center and the Oregon State Hospital] the Eastern Oregon Training Center.

          (2) The Oregon Health Authority shall operate, control, manage and supervise the Blue Mountain Recovery Center and the Oregon State Hospital campuses.

          [(2)] (3) The Department of Corrections shall operate, control, manage and supervise those institutions defined as Department of Corrections institutions in ORS 421.005.

 

          SECTION 131. ORS 179.325 is amended to read:

          179.325. (1) The Department of Human Services may order the change, in all or part, of the purpose and use of any state institution being used as an institution for the care and treatment of persons with [mental illness or] mental retardation in order to care for persons committed to its custody whenever the department determines that a change in purpose and use will better enable [the] this state to meet its responsibilities to persons with [mental illness or] mental retardation. In determining whether to order the change, the department shall consider changes in the number and source of the admissions of persons with [mental illness or] mental retardation.

          (2) The Oregon Health Authority may order the change, in all or part, of the purpose and use of any state institution being used as an institution for the care and treatment of persons with mental illness in order to care for persons committed to its custody whenever the authority determines that a change in purpose and use will better enable this state to meet its responsibilities to persons with mental illness. In determining whether to order the change, the authority shall consider changes in the number and source of the admissions of persons with mental illness.

 

          SECTION 132. ORS 179.331 is amended to read:

          179.331. (1) The superintendents shall be appointed and, whenever the public service requires such action, may be removed, suspended or discharged, as follows:

          (a) [Superintendents of institutions described in ORS 179.321 (1)] The superintendent of the Eastern Oregon Training Center, by the Director of Human Services.

          (b) The superintendents of the Blue Mountain Recovery Center and the Oregon State Hospital, by the Director of the Oregon Health Authority.

          [(b)] (c) The superintendents of Department of Corrections institutions as defined in ORS 421.005, by the Director of the Department of Corrections.

          (2) For purposes of the State Personnel Relations Law, the superintendents are assigned to the unclassified service.

 

          SECTION 133. ORS 179.360 is amended to read:

          179.360. (1) Each superintendent shall:

          (a) Have custody of the residents of the institution under jurisdiction of the superintendent.

          (b) Direct the care, custody and training of the residents unless otherwise directed by law or by rule.

          (c) Adopt sanitary measures for the health and comfort of the residents.

          (d) Promote the mental, moral and physical welfare and development of the residents.

          (e) Enjoy the other powers and privileges and perform the other duties that are prescribed by law or by rule or that naturally attach themselves to the position of superintendent.

          (f) Designate a physician licensed by the Oregon Medical Board to serve as chief medical officer as provided in ORS 426.020 and 427.010, who will be directly responsible to the superintendent for administration of the medical treatment programs at the institution and assume such other responsibilities as are assigned by the superintendent.

          (2) [The Director of the Department of Corrections or the Director of Human Services] The Director of the Department of Corrections, the Director of Human Services and the Director of the Oregon Health Authority shall prescribe for their respective institutions:

          (a) The duties of the superintendents where the duties are not prescribed by law.

          (b) The additional duties, beyond those prescribed by law, that [the Director of the Department of Corrections or the Director of Human Services] each agency director considers necessary for the good of the public service.

 

          SECTION 134. ORS 179.370 is amended to read:

          179.370. [The Director of the Department of Corrections or the Director of Human Services] The Director of the Department of Corrections, the Director of Human Services or the Director of the Oregon Health Authority may require that a superintendent reside in state-provided housing at the institution under the jurisdiction of the superintendent. The rental shall be determined pursuant to ORS 182.425.

 

          SECTION 135. ORS 179.375 is amended to read:

          179.375. (1) The [Department of Corrections and the Department of Human Services] Department of Corrections, the Department of Human Services and the Oregon Health Authority shall [insure] ensure that adequate chaplaincy services, including but not limited to Protestant and Roman Catholic, are available at their respective institutions.

          (2) Chaplains serving the various institutions shall, with respect to the inmates or patients at such institutions:

          (a) Provide for and attend to their spiritual needs.

          (b) Visit them for the purpose of giving religious and moral instruction.

          (c) Participate in the rehabilitation programs affecting them.

 

          SECTION 136. ORS 179.380 is amended to read:

          179.380. (1) The [Department of Corrections and the Department of Human Services] Department of Corrections, the Department of Human Services and the Oregon Health Authority shall authorize the employment of all necessary physicians, attendants, nurses, engineers, 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 of Corrections and the Department of Human Services] agencies 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.

 

          SECTION 137. ORS 179.385 is amended to read:

          179.385. The [Department of Corrections and the Department of Human Services] Department of Corrections, the Department of Human Services and the Oregon Health Authority, respectively, may establish scholarship programs to provide assistance in securing qualified personnel at state institutions governed by them. Scholarships authorized by this section shall be granted in accordance with rules and regulations adopted respectively by the [departments] agencies.

 

          SECTION 138. ORS 179.390 is amended to read:

          179.390. (1) The superintendent of an institution [other than an institution within the jurisdiction of the Department of Human Services shall, subject to the approval of the Director of Human Services or the] within the jurisdiction of the Department of Corrections shall, subject to the approval of the Director of the Department of Corrections, appoint in the manner provided by law all assistants, officers and other employees at the institution under the jurisdiction of the superintendent. The superintendent may suspend or remove an assistant, officer or other employee in the manner provided by law, reporting all acts of suspension or removal to the [Director of Human Services or] Director of the Department of Corrections for approval or disapproval. [The Director of Human Services or Director of the Department of Corrections shall fix the salaries of assistants, officers and employees where their salary is not fixed by law. The Director of Human Services or Director of the Department of Corrections shall, subject to any applicable provisions of the State Personnel Relations Law, suspend or discharge any subordinate of a superintendent when public service requires such action.]

          (2) The Director of the Department of Corrections, the Director of Human Services and the Director of the Oregon Health Authority shall:

          (a) Fix the salaries of assistants, officers and employees where their salary is not fixed by law.

          (b) Suspend or discharge any subordinate of a superintendent when public service requires such action, except when suspending or discharging the subordinate violates the State Personnel Relations Law.

          [(2)] (3) The Director of Human Services or a designee at [each] a facility under jurisdiction of the Department of Human Services shall, as provided by law, appoint, suspend or discharge an employee of the department. The Director of Human Services may designate up to three employees at each facility to act in the name of the director in accordance with ORS 240.400.

          (4) The Director of the Oregon Health Authority or a designee at a facility under jurisdiction of the Oregon Health Authority shall, as provided by law, appoint, suspend or discharge an employee of the authority. The director may designate up to three employees at each facility to act in the name of the director in accordance with ORS 240.400.

          [(3)] (5) In addition to or in lieu of employing physicians, the Director of the Department of Corrections or the designee thereof may contract for the personal services of physicians licensed to practice medicine by the Oregon Medical Board to serve as medical advisors for the [Department of Human Services] Oregon Health Authority. Advisors under such contracts shall be directly responsible for administration of medical treatment programs at penal and correctional institutions, as defined in ORS 421.005.

 

          SECTION 139. ORS 179.450 is amended to read:

          179.450. The [Department of Corrections may direct the employment of able-bodied persons at the Department of Corrections institutions and the Department of Human Services may direct the employment of able-bodied persons at institutions for persons with mental illness or mental retardation] Department of Corrections, the Department of Human Services and the Oregon Health Authority may direct the employment of able-bodied persons at the agencies’ respective institutions, in the performance of useful work upon land owned by the state if it does not compete with free labor. Work may not be performed upon any such land except by consent and approval of the agency of the state having management of the land.

 

          SECTION 140. ORS 179.460 is amended to read:

          179.460. (1) In order to encourage industry and thereby increase productiveness in the institutions, the [Department of Corrections and the Department of Human Services] Department of Corrections, the Department of Human Services and the Oregon Health Authority shall prescribe rules and regulations for the sale and exchange of surplus products of each.

          (2) The funds derived from the sale of the surplus products shall be paid into the State Treasury and become a part of a fund to be known as the State Institutional Betterment Fund, which fund shall be expended by the [Department of Corrections and the Department of Human Services] agencies, respectively, for the benefit of the institutions in proportion to the amount earned by each.

          (3) The provisions of this section apply to schools operated under ORS 346.010.

 

          SECTION 141. ORS 179.473 is amended to read:

          179.473. (1) Whenever the health and welfare of the person and the efficient administration of the institution require the transfer of an inmate of a Department of Corrections institution or a youth offender in a youth correction facility to another institution:

          (a) The Department of Corrections or the Oregon Youth Authority, with the consent of the Department of Human Services, may transfer a person at any institution under its jurisdiction to an institution for persons with mental retardation, or, with the consent of the Oregon Health and Science University, to the Oregon Health and Science University.

          (b) The Department of Corrections may transfer an inmate of a Department of Corrections institution to a state mental hospital listed in ORS 426.010 for evaluation and treatment pursuant to rules adopted jointly by the Department of Corrections and the [Department of Human Services] Oregon Health Authority.

          (c) The Oregon Youth Authority may transfer a youth offender or other person confined in a youth correction facility to a hospital or facility designated by the [Department of Human Services] Oregon Health Authority for evaluation and treatment pursuant to rules adopted jointly by the Oregon Youth Authority and the [Department of Human Services] Oregon Health Authority.

          (d) Except as provided in subsection (2) of this section, the Department of Corrections or the Oregon Youth Authority may make a transfer of a person from any institution under the jurisdiction of the department or the Oregon Youth Authority to any other institution under the jurisdiction of the department or authority.

          (2) A youth offender in a youth correction facility may not be transferred to a Department of Corrections institution under subsection (1) of this section. A youth offender in a youth correction facility who has been transferred to another institution may not be transferred from such other institution to a Department of Corrections institution.

          (3) The rules adopted under subsection (1)(b) and (c) of this section must:

          (a) Provide the inmate or youth offender with the rights to which persons are entitled under ORS 179.485.

          (b) Provide that a transfer of an inmate or a youth offender to the [Department of Human Services] Oregon Health Authority for stabilization and evaluation for treatment may not exceed 30 days unless the transfer is extended pursuant to a hearing required by paragraph (c) of this subsection.

          (c) Provide for an administrative commitment hearing if:

          (A) The [Department of Human Services] Oregon Health Authority determines that administrative commitment for treatment for a mental illness is necessary or advisable or that the [Department of Human Services] authority needs more than 30 days to stabilize or evaluate the inmate or youth offender for treatment; and

          (B) The inmate or youth offender does not consent to the administrative commitment or an extension of the transfer.

          (d) Provide for, at a minimum, all of the following for the administrative commitment hearing process:

          (A) Written notice to the inmate or youth offender that an administrative commitment to a state mental hospital listed in ORS 426.010 or a hospital or facility designated by the [Department of Human Services] Oregon Health Authority or an extension of the transfer is being considered. The notice required by this subparagraph must be provided far enough in advance of the hearing to permit the inmate or youth offender to prepare for the hearing.

          (B) Disclosure to the inmate or youth offender, at the hearing, of the evidence that is being relied upon for the administrative commitment or the extension of the transfer.

          (C) An opportunity, at the hearing, for the inmate or youth offender to be heard in person and to present documentary evidence.

          (D) An opportunity, at the hearing, for the inmate or youth offender to present the testimony of witnesses and to confront and cross-examine witnesses called by the state. The opportunity required by this subparagraph may be denied upon a finding by the decision maker of good cause for not permitting the inmate or youth offender to present the testimony of witnesses or confront or cross-examine witnesses called by the state.

          (E) An independent decision maker for the hearing.

          (F) A written statement by the decision maker of the evidence relied upon by the decision maker and the reasons for administratively committing the inmate or youth offender or extending the transfer.

          (G) A qualified and independent assistant for the inmate or youth offender to be provided by the state if the inmate or youth offender is financially unable to provide one.

          (H) Effective and timely notice of the procedures required by subparagraphs (A) to (G) of this paragraph.

          (e) Provide that an inmate or a youth offender may not be administratively committed involuntarily unless the independent decision maker finds by clear and convincing evidence that the inmate or youth offender is a mentally ill person as defined in ORS 426.005.

          (f) Provide that the duration of an administrative commitment pursuant to an administrative commitment hearing be no more than 180 days unless the administrative commitment is renewed in a subsequent administrative commitment hearing. Notwithstanding this paragraph, an administrative commitment may not continue beyond the term of incarceration to which the inmate was sentenced or beyond the period of time that the youth offender may be placed in a youth correction facility.

 

          SECTION 142. 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 Department of Human Services] Department of Corrections, the Department of Human Services or the Oregon Health Authority, convey an inmate to a physician, clinic or hospital, including the Oregon Health and Science 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] the Department of Human Services [each] and the Oregon Health Authority shall prescribe rules and regulations governing conveyances authorized by this section.

 

          SECTION 143. ORS 179.490 is amended to read:

          179.490. In the case of a necessary or emergency operation, requiring the services of a specialist, and where the relatives or guardians, in the judgment of the [Department of Corrections or Department of Human Services] Department of Corrections, the Department of Human Services or the Oregon Health Authority, are unable to pay a part or the whole cost of the operation, [either department, in its discretion,] the agencies may have the operation performed, the cost of the operation to be payable from the funds of the institution concerned.

 

          SECTION 144. ORS 179.492 is amended to read:

          179.492. (1) The [Department of Human Services or the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority shall dispense as written a prescription for a brand-name mental health drug prescribed for a person while the person is in the custody of an institution described in ORS 179.321 if the prescription specifies “dispense as written” or contains the notation “D.A.W.” or other words of similar meaning.

          (2) If, at the time of commitment to the custody of an institution described in ORS 179.321, a person has a prescription for a specified brand-name mental health drug and the prescription specifies “dispense as written” or contains the notation “D.A.W.” or other words of similar meaning, the [Department of Human Services or the] Department of Corrections, the Department of Human Services or the Oregon Health Authority shall ensure that the person is prescribed the specified brand-name drug until a licensed health professional with prescriptive privileges evaluates the person and becomes responsible for the treatment of the person.

 

          SECTION 145. ORS 179.505 is amended to read:

          179.505. (1) As used in this section:

          (a) “Disclosure” means the release of, transfer of, provision of access to or divulgence in any other manner of information outside the health care services provider holding the information.

          (b) “Health care services provider” means:

          (A) Medical personnel or other staff employed by or under contract with a public provider to provide health care or maintain written accounts of health care provided to individuals; or

          (B) Units, programs or services designated, operated or maintained by a public provider to provide health care or maintain written accounts of health care provided to individuals.

          (c) “Individually identifiable health information” means any health information that is:

          (A) Created or received by a health care services provider; and

          (B) Identifiable to an individual, including demographic information that identifies the individual, or for which there is a reasonable basis to believe the information can be used to identify an individual, and that relates to:

          (i) The past, present or future physical or mental health or condition of an individual;

          (ii) The provision of health care to an individual; or

          (iii) The past, present or future payment for the provision of health care to an individual.

          (d) “Personal representative” includes but is not limited to:

          (A) A person appointed as a guardian under ORS 125.305, 419B.370, 419C.481 or 419C.555 with authority to make medical and health care decisions;

          (B) A person appointed as a health care representative under ORS 127.505 to 127.660 or a representative under ORS 127.700 to 127.737 to make health care decisions or mental health treatment decisions; and

          (C) A person appointed as a personal representative under ORS chapter 113.

          (e) “Psychotherapy notes” means notes recorded in any medium:

          (A) By a mental health professional, in the performance of the official duties of the mental health professional;

          (B) Documenting or analyzing the contents of conversation during a counseling session; and

          (C) That are maintained separately from the rest of the individual’s record.

          (f) “Psychotherapy notes” does not mean notes documenting:

          (A) Medication prescription and monitoring;

          (B) Counseling session start and stop times;

          (C) Modalities and frequencies of treatment furnished;

          (D) Results of clinical tests; or

          (E) Any summary of the following items:

          (i) Diagnosis;

          (ii) Functional status;

          (iii) Treatment plan;

          (iv) Symptoms;

          (v) Prognosis; or

          (vi) Progress to date.

          (g) “Public provider” means:

          (A) The [state institutions for the care and treatment of individuals with mental illness or developmental disabilities operated by the Department of Human Services] Blue Mountain Recovery Center, the Eastern Oregon Training Center and the Oregon State Hospital campuses;

          (B) Department of Corrections institutions as defined in ORS 421.005;

          (C) A contractor of the [Department of Human Services or the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority that provides health care to individuals residing in a state institution operated by the [Department of Human Services or the Department of Corrections] agencies;

          (D) A community mental health [and] program or community developmental disabilities program as described in ORS 430.610 to 430.695 and the public and private entities with which it contracts to provide mental health or developmental disabilities programs or services;

          (E) A program or service provided under ORS 431.250, 431.375 to 431.385 or 431.416;

          (F) A program or service [licensed, approved, established, maintained or operated by or contracted with the Department of Human Services under ORS 430.630 for individuals with developmental disabilities and individuals with mental or emotional disturbances] established or maintained under ORS 430.630;

          (G) A program or facility providing an organized full-day or part-day program of treatment that is licensed, approved, established, maintained or operated by or contracted with the [Department of Human Services] Oregon Health Authority for alcoholism, drug addiction or mental or emotional disturbance; or

          (H) A program or service providing treatment by appointment that is licensed, approved, established, maintained or operated by or contracted with the [Department of Human Services] authority for alcoholism, drug addiction or mental or emotional disturbance.

          (h) “Written account” means records containing only individually identifiable health information.

          (2) Except as provided in subsections (3), (4), (6), (7), (8), (9), (11), (12), (14), (15), (16) and (17) of this section or unless otherwise permitted or required by state or federal law or by order of the court, written accounts of the individuals served by any health care services provider maintained in or by the health care services provider by the officers or employees thereof who are authorized to maintain written accounts within the official scope of their duties are not subject to access and may not be disclosed. This subsection applies to written accounts maintained in or by facilities of the Department of Corrections only to the extent that the written accounts concern the medical, dental or psychiatric treatment as patients of those under the jurisdiction of the Department of Corrections.

          (3) If the individual or a personal representative of the individual provides an authorization, the content of any written account referred to in subsection (2) of this section must be disclosed accordingly, if the authorization is in writing and is signed and dated by the individual or the personal representative of the individual and sets forth with specificity the following:

          (a) Name of the health care services provider authorized to make the disclosure, except when the authorization is provided by recipients of or applicants for public assistance to a governmental entity for purposes of determining eligibility for benefits or investigating for fraud;

          (b) Name or title of the persons or organizations to which the information is to be disclosed or that information may be disclosed to the public;

          (c) Name of the individual;

          (d) Extent or nature of the information to be disclosed; and

          (e) Statement that the authorization is subject to revocation at any time except to the extent that action has been taken in reliance thereon, and a specification of the date, event or condition upon which it expires without express revocation. However, a revocation of an authorization is not valid with respect to inspection or records necessary to validate expenditures by or on behalf of governmental entities.

          (4) The content of any written account referred to in subsection (2) of this section may be disclosed without an authorization:

          (a) To any person to the extent necessary to meet a medical emergency.

          (b) At the discretion of the responsible officer of the health care services provider, which in the case of any [Department of Human Services facility or community mental health and developmental disabilities program shall be the Director of Human Services] Oregon Health Authority facility or community mental health program is the Director of the Oregon Health Authority, to persons engaged in scientific research, program evaluation, peer review and fiscal audits. However, individual identities may not be disclosed to such persons, except when the disclosure is essential to the research, evaluation, review or audit and is consistent with state and federal law.

          (c) To governmental agencies when necessary to secure compensation for services rendered in the treatment of the individual.

          (5) When an individual’s identity is disclosed under subsection (4) of this section, a health care services provider shall prepare, and include in the permanent records of the health care services provider, a written statement indicating the reasons for the disclosure, the written accounts disclosed and the recipients of the disclosure.

          (6) The content of any written account referred to in subsection (2) of this section and held by a health care services provider currently engaged in the treatment of an individual may be disclosed to officers or employees of that provider, its agents or cooperating health care services providers who are currently acting within the official scope of their duties to evaluate treatment programs, to diagnose or treat or to assist in diagnosing or treating an individual when the written account is to be used in the course of diagnosing or treating the individual. Nothing in this subsection prevents the transfer of written accounts referred to in subsection (2) of this section among health care services providers, the Department of Human Services, the Department of Corrections, the Oregon Health Authority or a local correctional facility when the transfer is necessary or beneficial to the treatment of an individual.

          (7) When an action, suit, claim, arbitration or proceeding is brought under ORS 34.105 to 34.240 or 34.310 to 34.730 and involves a claim of constitutionally inadequate medical care, diagnosis or treatment, or is brought under ORS 30.260 to 30.300 and involves the Department of Corrections or an institution operated by the department, nothing in this section prohibits the disclosure of any written account referred to in subsection (2) of this section to the Department of Justice, Oregon Department of Administrative Services, or their agents, upon request, or the subsequent disclosure to a court, administrative hearings officer, arbitrator or other administrative decision maker.

          (8)(a) When an action, suit, claim, arbitration or proceeding involves [the Department of Human Services or an institution operated by the department] the Department of Human Services, the Oregon Health Authority or an institution operated by the department or authority, nothing in this section prohibits the disclosure of any written account referred to in subsection (2) of this section to the Department of Justice, Oregon Department of Administrative Services, or their agents.

          (b) Disclosure of information in an action, suit, claim, nonlabor arbitration or proceeding is limited by the relevancy restrictions of ORS 40.010 to 40.585, 183.710 to 183.725, 183.745 and 183.750 and ORS chapter 183. Only written accounts of a plaintiff, claimant or petitioner shall be disclosed under this paragraph.

          (c) Disclosure of information as part of a labor arbitration or proceeding to support a personnel action taken against staff is limited to written accounts directly relating to alleged action or inaction by staff for which the personnel action was imposed.

          (9)(a) The copy of any written account referred to in subsection (2) of this section, upon written request of the individual or a personal representative of the individual, shall be disclosed to the individual or the personal representative of the individual within a reasonable time not to exceed five working days. The individual or the personal representative of the individual shall have the right to timely access to any written accounts.

          (b) If the disclosure of psychiatric or psychological information contained in the written account would constitute an immediate and grave detriment to the treatment of the individual, disclosure may be denied, if medically contraindicated by the treating physician or a licensed health care professional in the written account of the individual.

          (c) The Department of Corrections may withhold psychiatric or psychological information if:

          (A) The information relates to an individual other than the individual seeking it.

          (B) Disclosure of the information would constitute a danger to another individual.

          (C) Disclosure of the information would compromise the privacy of a confidential source.

          (d) However, a written statement of the denial under paragraph (c) of this subsection and the reasons therefor must be entered in the written account.

          (10) A health care services provider may require a person requesting disclosure of the contents of a written account under this section to reimburse the provider for the reasonable costs incurred in searching files, abstracting if requested and copying if requested. However, an individual or a personal representative of the individual may not be denied access to written accounts concerning the individual because of inability to pay.

          (11) A written account referred to in subsection (2) of this section may not be used to initiate or substantiate any criminal, civil, administrative, legislative or other proceedings conducted by federal, state or local authorities against the individual or to conduct any investigations of the individual. If the individual, as a party to an action, suit or other judicial proceeding, voluntarily produces evidence regarding an issue to which a written account referred to in subsection (2) of this section would be relevant, the contents of that written account may be disclosed for use in the proceeding.

          (12) Information obtained in the course of diagnosis, evaluation or treatment of an individual that, in the professional judgment of the health care services provider, indicates a clear and immediate danger to others or to society may be reported to the appropriate authority. A decision not to disclose information under this subsection does not subject the provider to any civil liability. Nothing in this subsection may be construed to alter the provisions of ORS 146.750, 146.760, 419B.010, 419B.015, 419B.020, 419B.025, 419B.030, 419B.035, 419B.040 and 419B.045.

          (13) The prohibitions of this section apply to written accounts concerning any individual who has been treated by any health care services provider irrespective of whether or when the individual ceases to receive treatment.

          (14) Persons other than the individual or the personal representative of the individual who are granted access under this section to the contents of a written account referred to in subsection (2) of this section may not disclose the contents of the written account to any other person except in accordance with the provisions of this section.

          (15) Nothing in this section prevents the Department of Human Services or the Oregon Health Authority from disclosing the contents of written accounts in its possession to individuals or agencies with whom children in its custody are placed.

          (16) The system described in ORS 192.517 (1) shall have access to records, as defined in ORS 192.515, as provided in ORS 192.517.

          (17)(a) Except as provided in paragraph (b) of this subsection, a health care services provider must obtain an authorization from an individual or a personal representative of the individual to disclose psychotherapy notes.

          (b) A health care services provider may use or disclose psychotherapy notes without obtaining an authorization from the individual or a personal representative of the individual to carry out the following treatment, payment and health care operations:

          (A) Use by the originator of the psychotherapy notes for treatment;

          (B) Disclosure by the health care services provider for its own training program in which students, trainees or practitioners in mental health learn under supervision to practice or improve their skills in group, joint, family or individual counseling; or

          (C) Disclosure by the health care services provider to defend itself in a legal action or other proceeding brought by the individual or a personal representative of the individual.

          (c) An authorization for the disclosure of psychotherapy notes may not be combined with an authorization for a disclosure of any other individually identifiable health information, but may be combined with another authorization for a disclosure of psychotherapy notes.

 

          SECTION 146. ORS 179.509 is amended to read:

          179.509. (1) The superintendent of each state institution shall submit quarterly reports on the number of deaths, including the ages of the deceased, the causes of death and the disposition of the remains, within the institution to the [Department of Human Services or to the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority, as the case may be, having jurisdiction over the institution.

          (2) The [Department of Human Services or the Department of Corrections] agencies shall compile the reports described in subsection (1) of this section and submit them quarterly to the offices of the President of the Senate and of the Speaker of the House of Representatives.

 

          SECTION 147. ORS 179.610 is amended to read:

          179.610. As used in ORS 179.610 to 179.770, unless the context requires otherwise:

          [(1) “Agency” means either the Department of Human Services for a person in a state institution described in ORS 179.321 (1) or the Department of Corrections for a person in a Department of Corrections institution as defined in ORS 421.005.]

          [(2)] (1) “Authorized representative” means an individual or entity appointed under authority of ORS chapter 125, as guardian or conservator of a person, who has the ability to control the person’s finances, and any other individual or entity holding funds or receiving benefits or income on behalf of any person.

          [(3)] (2) “Care” means all services rendered by the state institutions as described in ORS 179.321 or by the [Department of Human Services or the Department of Corrections] Department of Corrections, Department of Human Services or Oregon Health Authority on behalf of those institutions. These services include, but are not limited to, such items as medical care, room, board, administrative costs and other costs not otherwise excluded by law.

          [(4)] (3) “Decedent’s estate” has the meaning given “estate” in ORS 111.005 (15).

          [(5)] (4) “Person,” “person in a state institution” or “person at a state institution,” or any similar phrase, means an individual who is or has been at a state institution described in ORS 179.321.

          [(6)] (5) “Personal estate” means all income and benefits as well as all assets, including all personal and real property of a living person, and includes assets held by the person’s authorized representative and all other assets held by any other individual or entity holding funds or receiving benefits or income on behalf of any person.

 

          SECTION 148. ORS 179.620 is amended to read:

          179.620. (1) A person and the personal estate of the person, or a decedent’s estate, is liable for the full cost of care. Full cost of care is established according to ORS 179.701.

          (2) While the person is liable for the full cost of care, the maximum amount a person is required to pay toward the full cost of care shall be determined according to the person’s ability to pay. Ability to pay is determined as provided in ORS 179.640.

          (3) Upon the death of a person, the decedent’s estate shall be liable for any unpaid cost of care. The liability of the decedent’s estate is limited to the cost of care incurred on or after July 24, 1979. The decedent’s estate shall not include assets placed in trust for the person by other persons. Collection of any amount from a decedent’s estate shall be pursuant to ORS 179.740.

          (4) Regardless of subsection (1) of this section and ORS 179.610 [(6)] (5), assets held in trust by a trustee for a person are subject to laws generally applicable to trusts.

          (5) Notwithstanding subsections (1) and (3) of this section, [neither the Department of Human Services nor the Department of Corrections may] the Department of Corrections, the Department of Human Services and the Oregon Health Authority may not collect the cost of care from:

          (a) Any assets received by or owing to a person and the personal estate of the person, or the decedent’s estate, as compensation from the state for injury, death or, if the collection is being made by the Department of Corrections, the false imprisonment of the person that occurred when the person was in a state institution listed in ORS 179.321 and for which the state admits liability or is found liable through adjudication; and

          (b) Any real or personal property of the personal estate of the person, or the decedent’s estate, that the person or an authorized representative of the person can demonstrate was purchased solely with assets referred to in paragraph (a) of this subsection or partially with such assets, to the extent such assets were used in the purchase.

 

          SECTION 149. ORS 179.640 is amended to read:

          179.640. (1)(a) [Both the Department of Human Services and the Department of Corrections] The Department of Corrections, the Department of Human Services and the Oregon Health Authority shall establish rules for determining ability to pay for persons in their respective institutions. The rules adopted by each agency shall require, in addition to other relevant factors, consideration of the personal estate, the person’s need for funds for personal support after release, and the availability of third-party benefits such as, but not limited to, Medicare or private insurance. Each agency may also consider the probable length of stay at the state institution. Nothing in this section requires the Department of Corrections to investigate a person’s ability to pay or to issue an ability-to-pay order.

          (b) When adopting rules under paragraph (a) of this subsection, the Department of Corrections shall consider the person’s needs for funds to pay for the support of the person’s children and to pay any monetary obligations imposed on the person as a result of the person’s conviction.

          (2) In determining a person’s ability to pay, [neither agency] none of the agencies may consider as part of the personal estate of the person or the decedent’s estate:

          (a) Any assets received by or owing to the person and the personal estate of the person, or the decedent’s estate, as compensation from the state for injury, death or, if the collection is being made by the Department of Corrections, the false imprisonment of the person that occurred when the person was in a state institution listed in ORS 179.321 and for which the state admits liability or is found liable through adjudication; and

          (b) Any real or personal property that the person or an authorized representative of the person can demonstrate was purchased solely with assets referred to in paragraph (a) of this subsection or partially with such assets, to the extent such assets were used in the purchase.

          (3) A person and the authorized representative of the person, if any, shall provide all financial information requested by the agency that is necessary to determine the person’s ability to pay. To determine ability to pay, the agency may use any information available to the agency, including information provided by the Department of Revenue from personal income tax returns pursuant to ORS 314.840, and elderly rental assistance claims. Upon request, the Department of Revenue shall release copies of tax returns to the agency. When the person or the person’s authorized representative fails to provide evidence to demonstrate an inability to pay full cost of care, the agency may determine the person has the ability to pay the full cost of care.

          (4) The agency shall provide actual notice to the person and any authorized representative, if known to the agency, of its determination by issuing an ability-to-pay order. The order shall state the person’s full liability and the person’s determined ability to pay. Actual notice means receipt by the person and the authorized representative of notice. The notice shall include a copy of the ability-to-pay order, a description of the person’s appeal rights and the date upon which appeal rights terminate and state the address where a request for hearing may be mailed or delivered. At any time, the agency may reissue an ability-to-pay order to notify an authorized representative as provided by ORS 179.653 (4).

          (5) At any time during the person’s stay at the state institution or within 36 months from the date the person is released, if the agency receives new financial information that shows a change in the person’s financial circumstances, the agency shall consider the changed circumstances and issue a new ability-to-pay order.

          (6) Orders issued after the person is released may not require the person to make payments toward the cost of care for more than 36 consecutive months following release. However, the agency may collect beyond the 36-month period any payments that became due but were not paid within the 36 months following release. Any remaining balance of full cost of care shall be collected as provided in ORS 179.740.

          (7) Notwithstanding ORS 183.315 (5), if a person or authorized representative disagrees with any ability-to-pay order issued pursuant to this section, the person or authorized representative may request a contested case hearing. To the extent practical, the hearing will be held at a location convenient to the person or the authorized representative. The request must be postmarked within 60 days from the date of the mailing of the ability-to-pay order. If the person or the authorized representative makes a timely request for a contested case hearing, the hearing and any appeal of the final hearing order shall be governed by ORS 183.413 to 183.497. If the person or the authorized representative fails to make a timely request for a contested case hearing, the ability-to-pay order shall be final and not subject to judicial review, except as subsequently modified by the agency as provided in subsection (5) of this section.

          (8) On appeal, regardless of other information presented, payment of the full cost of care may be ordered if the person or the authorized representative refuses to produce financial information that the Hearings Officer or administrative law judge determines is relevant and must be produced.

 

          SECTION 150. ORS 179.653 is amended to read:

          179.653. (1) If any person or authorized representative refuses to pay for the cost of care as ordered by the [Department of Human Services or the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority under ORS 179.640, the amount unpaid plus interest shall be a lien in favor of the State of Oregon. The lien shall arise as each payment is due under the order and shall continue until the liability with interest is satisfied. The lien shall be upon the title to and interest in the real and personal property of the personal estate.

          (2) Prior to the filing of a distraint warrant as provided in ORS 179.655 (2), the lien shall only be valid against:

          (a) Property of the person;

          (b) Assets held by any authorized representative bound by the ability-to-pay order; and

          (c) Assets subject to lien held by any person or entity having actual knowledge of the ability-to-pay order or the lien.

          (3) Regardless of any other provision of law or statute that provides a procedure for establishing obligations, including the claim and payment provisions of ORS chapter 125, an authorized representative who has received notice and had an opportunity to request a contested case hearing shall comply with an ability-to-pay order upon demand by the agency. The agency may issue the demand any time after the order becomes final.

          (4) An authorized representative who has not had an opportunity to request a contested case hearing, either because the authorized representative was not appointed at the time the ability-to-pay order became final, or was not given notice of the ability-to-pay order as required by ORS 179.640 (4), shall not be bound by the order of the agency. To bind the authorized representative, the ability-to-pay order must be reissued and notice provided to the authorized representative pursuant to ORS 179.640 (4). The authorized representative shall have the same appeal rights as if the order had originally been issued to the authorized representative. After the order becomes final, the authorized representative shall be bound as provided in subsection (3) of this section. The agency may not issue an execution of a lien or foreclose against property held by or in the control of the authorized representative until the authorized representative is bound by the order of the agency.

          (5) An authorized representative who is a trustee shall only be bound to the extent that the final order specifically finds that the trust assets of a trust fund are subject to claim by the agency.

          (6) If the authorized representative does not comply with the demand, the agency may file with the probate court a motion to require the authorized representative to comply. If the authorized representative is a conservator or guardian appointed under ORS chapter 125, the motion shall be filed in that proceeding. The motion shall be accompanied by an affidavit stating that the order is final, that demand has been made on the authorized representative and that the order has not been complied with.

          (7) The authorized representative may object to the motion only on grounds that the order is not final, that the order is not binding on the authorized representative as provided in this section or that all required payments have been made. The objection must be by affidavit.

          (8) If the authorized representative objects by affidavit, the court shall hear the motion. If the court determines that the ability-to-pay order is final and binding on the authorized representative and that all required payments have not been made, the court shall order the authorized representative to comply with the ability-to-pay order.

          (9) If the authorized representative fails to object by affidavit within 15 days of the filing of the motion, the court shall order the authorized representative to comply with the order. An authorized representative who willfully fails or refuses to comply may be found in contempt of court and may be held personally responsible.

          (10) Nothing in this section shall affect the requirement that the agency issue a new order in accordance with ORS 179.640 (5) if financial circumstances have changed.

 

          SECTION 151. ORS 179.655 is amended to read:

          179.655. (1) If any amount due the [Department of Human Services or the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority for the cost of care of a person is not paid within 30 days after it becomes due, and no provision is made to secure the payment by bond, deposit or otherwise, pursuant to rules adopted by the appropriate agency, the agency may issue a distraint warrant directed to any county of the state.

          (2) After the receipt of the distraint warrant, the clerk of the county shall enter in the County Clerk Lien Record the name of the person, the amount for which the distraint warrant is issued and the date the distraint warrant is recorded. The amount of the distraint warrant shall become a lien upon the title to and interest in any property owned or later acquired by the debtor against whom it is issued, and it may be enforced by the agency in the same manner as a judgment of the circuit court.

          (3) In the event that an ability-to-pay order issued under ORS 179.640 (4) or (5) becomes final, and supersedes a previous final ability-to-pay order on which a distraint warrant had been issued, the agency shall issue a new distraint warrant superseding the previous distraint warrant, and the lien shall conform to the new order.

          (4) The agency may direct a copy of the distraint warrant to the sheriff of any county of the state commanding the sheriff to levy upon and sell the real and personal property of the taxpayer found within that county, for the payment of the amount due, with interest, collection charge and the sheriff’s fee. The sheriff shall return the distraint warrant to the agency and pay to it the money collected not less than 60 days from the date the copy of the distraint warrant was directed to the sheriff.

          (5) The agency may issue the directive provided in subsection (4) of this section to any agent of the agency. In executing the distraint warrant, the agent shall have the same powers conferred by law upon sheriffs. However, the agent is not entitled to any fee or compensation in excess of actual expenses incurred in the performance of this duty.

 

          SECTION 152. ORS 179.660 is amended to read:

          179.660. If the [Department of Human Services or the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority believes a person at one of its state institutions needs a guardian or conservator, or both, and one has not been appointed, the agency may request that the district attorney institute proper proceedings for this appointment in the court having probate jurisdiction. The county of which the person is a resident, or was a resident at the time of admittance, shall be the basis for determining the appropriate district attorney to be contacted.

 

          SECTION 153. ORS 179.701 is amended to read:

          179.701. The cost-of-care rates for a person shall be determined by the [Department of Human Services or the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority, as appropriate. The rates established shall be reasonably related to current costs of the institutions as described in ORS 179.321. Current costs shall exclude costs of outpatient services as defined in ORS 430.010 [(4)] (5) and any other costs not directly related to the care for a person at a state institution.

 

          SECTION 154. ORS 179.711 is amended to read:

          179.711. (1) Remittance of amounts due for care of persons at state institutions as provided in ORS 179.610 to 179.770 shall be made to the [Department of Human Services or the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority, as appropriate.

          (2) The agency shall refund any unearned payment for the care of a person at a state institution where payment has been made in advance and the person dies or is discharged before the end of the period for which payment was made. Any refund shall be paid to the person, to the authorized representative of the person or to the decedent’s estate if the person has died. All claims for refunds approved by the agency shall be paid as provided in ORS 293.295 to 293.462. Any amounts necessary for payment of refunds are appropriated from the money collected by that agency under the provisions of ORS 179.610 to 179.770.

 

          SECTION 155. ORS 179.731 is amended to read:

          179.731. If the [Department of Human Services or the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority determines that collection of the amount payable under ORS 179.610 to 179.770 for the cost of care of a person would be detrimental to the best interests of the person or the agency, the agency may waive the collection of part or all of the amount otherwise payable.

 

          SECTION 156. ORS 179.740 is amended to read:

          179.740. (1) The [Department of Human Services or the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority, as appropriate, may file a claim against the decedent’s estate for any unpaid charges under ORS 179.620 (3). This shall be done in the same manner as claims of creditors and with the priorities provided in ORS 115.125.

          (2) If, within 90 days following the person’s death, the person’s estate is not otherwise being probated, the agency may petition any court of competent jurisdiction for the issuance of letters of administration or testamentary. This action would be for the purpose of collecting the full amount of unpaid cost of care as determined by ORS 179.701 and limited by ORS 179.620 (3). However, the agency may not file a petition under this subsection until at least 90 days after the death of the person who was at the state institution and then only in the event that the person’s estate is not otherwise being probated.

          (3) The agency may settle any claim against the decedent’s estate during the pendency of the probate proceeding by accepting other security or in any other equitable manner. The agency may waive all or part of the claim if it finds collection of this amount due to be inequitable.

          (4) The agency may not recover amounts that exceed the total cost of care of the deceased person as computed under ORS 179.701 and limited by ORS 179.620 (3).

 

          SECTION 157. ORS 179.745 is amended to read:

          179.745. The State of Oregon, by and through the [Department of Human Services or the Department of Corrections] Department of Corrections, the Department of Human Services or the Oregon Health Authority, may take title to real and personal property to carry out the provisions of ORS 179.620, 179.653, 179.655 and 179.740. With the written consent of the owner of real property or an authorized representative of the owner, the agency may transfer real property under the provisions of ORS 270.100 to 270.190. The agency may transfer personal property under rules adopted by the agency. The proceeds, less costs, of any real or personal property transferred by the agency under this section shall be credited to and deposited in the [Mental Health and Developmental Disability Services Account established by ORS 430.180 or the Department of Corrections Account established by ORS 423.097] Department of Corrections Account, the Department of Human Services Account or the Oregon Health Authority Fund, as appropriate.

 

          SECTION 158. ORS 179.770 is amended to read:

          179.770. (1) In accordance with any applicable provisions of ORS chapter 183, [both the Department of Human Services and the Department of Corrections] the Department of Corrections, the Department of Human Services and the Oregon Health Authority may adopt any rules necessary to carry out ORS 179.610 to 179.770.

          (2) Subject to any applicable provision of the State Personnel Relations Law, the agency may employ employees necessary to carry out ORS 179.610 to 179.770.

 

          SECTION 159. ORS 181.537 is amended to read:

          181.537. (1) As used in this section:

          (a) “Care” means the provision of care, treatment, education, training, instruction, supervision, placement services, recreation or support to children, the elderly or persons with disabilities.

          (b) “Qualified entity” means a community mental health [and developmental disabilities program,] program, a community developmental disabilities program, a local health department or an individual or business or organization, whether public, private, for-profit, nonprofit or voluntary, that provides care, including a business or organization that licenses, certifies or registers others to provide care.

          (2) The Department of Human Services, the Oregon Health Authority and the Employment Department may require the fingerprints of a person for the purpose of requesting a state or nationwide criminal records check of the person under ORS 181.534:

          (a) For agency employment purposes;

          (b) For the purposes of licensing, certifying, registering or otherwise regulating or administering programs, persons or qualified entities that provide care;

          (c) For the purposes of employment decisions by or for qualified entities that are regulated or otherwise subject to oversight by the Department of Human Services or the Oregon Health Authority and that provide care; or

          (d) For the purposes of employment decisions made by a mass transit district or transportation district for qualified entities that, under contracts with the district or the [Department of Human Services] Oregon Health Authority, employ persons to operate motor vehicles for the transportation of medical assistance program clients.

          (3) The Department of Human Services and the Oregon Health Authority may conduct criminal records checks on a person through the Law Enforcement Data System maintained by the Department of State Police, if deemed necessary by the Department of Human Services or the Oregon Health Authority to protect children, elderly persons, persons with disabilities or other vulnerable persons.

          (4) The Department of Human Services and the Oregon Health Authority may furnish to qualified entities, in accordance with the [Department of Human Services’] rules of the Department of Human Services or the Oregon Health Authority and the rules of the Department of State Police, information received from the Law Enforcement Data System. However, any criminal offender records and information furnished to the Department of Human Services or the Oregon Health Authority by the Federal Bureau of Investigation through the Department of State Police may not be disseminated to qualified entities.

          (5) A qualified entity, using rules adopted by the Department of Human Services or the Oregon Health Authority, shall determine under this section whether a person is fit to hold a position, provide services, be employed or, if the qualified entity has authority to make such a determination, be licensed, certified or registered, based on the criminal records check obtained pursuant to ORS 181.534, any false statements made by the person regarding the criminal history of the person and any refusal to submit or consent to a criminal records check including fingerprint identification. If a person is determined to be unfit, then that person may not hold the position, provide services or be employed, licensed, certified or registered.

          (6) In making the fitness determination under subsection (5) of this section, the qualified entity shall consider:

          (a) The nature of the crime;

          (b) The facts that support the conviction or pending indictment or indicate the making of the false statement;

          (c) The relevancy, if any, of the crime or the false statement to the specific requirements of the person’s present or proposed position, services, employment, license, certification or registration; and

          (d) Intervening circumstances relevant to the responsibilities and circumstances of the position, services, employment, license, certification or registration. Intervening circumstances include but are not limited to the passage of time since the commission of the crime, the age of the person at the time of the crime, the likelihood of a repetition of offenses, the subsequent commission of another relevant crime and a recommendation of an employer.

          (7) The Department of Human Services, the Oregon Health Authority and the Employment Department may make fitness determinations based on criminal offender records and information furnished by the Federal Bureau of Investigation through the Department of State Police only as provided in ORS 181.534.

          (8) A qualified entity and an employee of a qualified entity acting within the course and scope of employment are immune from any civil liability that might otherwise be incurred or imposed for determining pursuant to subsection (5) of this section that a person is fit or not fit to hold a position, provide services or be employed, licensed, certified or registered. A qualified entity, employee of a qualified entity acting within the course and scope of employment and an employer or employer’s agent who in good faith comply with this section and the decision of the qualified entity or employee of the qualified entity acting within the course and scope of employment are not liable for the failure to hire a prospective employee or the decision to discharge an employee on the basis of the qualified entity’s decision. An employee of the state acting within the course and scope of employment is not liable for defamation or invasion of privacy in connection with the lawful dissemination of information lawfully obtained under this section.

          (9) The Department of Human Services and the Oregon Health Authority shall develop [a system that maintains] systems that maintain information regarding criminal records checks in order to minimize the administrative burden imposed by this section and ORS 181.534. Records maintained under this subsection are confidential and may not be disseminated except for the purposes of this section and in accordance with the rules of the Department of Human Services, the Oregon Health Authority and the Department of State Police. Nothing in this subsection permits the Department of Human Services to retain fingerprint cards obtained pursuant to this section.

          (10) In addition to the rules required by ORS 181.534, the Department of Human Services and the Oregon Health Authority, in consultation with the Department of State Police, shall adopt rules:

          (a) Specifying which qualified entities are subject to this section;

          (b) Specifying which qualified entities may request criminal offender information;

          (c) Specifying which qualified entities are responsible for deciding whether a subject individual is not fit for a position, service, license, certification, registration or employment; and

          (d) Specifying when a qualified entity, in lieu of conducting a completely new criminal records check, may proceed to make a fitness determination under subsection (5) of this section using the information maintained by the Department of Human Services and the Oregon Health Authority pursuant to subsection (9) of this section.

          (11) If a person refuses to consent to the criminal records check or refuses to be fingerprinted, the qualified entity shall deny or terminate the employment of the person, or revoke or deny any applicable position, authority to provide services, employment, license, certification or registration.

          (12) If the qualified entity requires a criminal records check of employees or other persons, the application forms of the qualified entity must contain a notice that employment is subject to fingerprinting and a criminal records check.

 

          SECTION 160. ORS 181.637 is amended to read:

          181.637. (1) The Board on Public Safety Standards and Training shall establish the following policy committees:

          (a) Corrections Policy Committee;

          (b) Fire Policy Committee;

          (c) Police Policy Committee;

          (d) Telecommunications Policy Committee; and

          (e) Private Security Policy Committee.

          (2) The members of each policy committee shall select a chairperson and vice chairperson for the policy committee. Only members of the policy committee who are also members of the board are eligible to serve as a chairperson or vice chairperson. The vice chairperson may act as chairperson in the absence of the chairperson.

          (3) The Corrections Policy Committee consists of:

          (a) All of the board members who represent the corrections discipline;

          (b) The chief administrative officer of the training division of the Department of Corrections;

          (c) A security manager from the Department of Corrections; and

          (d) The following, who may not be current board members, appointed by the chairperson of the board:

          (A) One person recommended by and representing the Oregon State Sheriffs’ Association;

          (B) Two persons recommended by and representing the Oregon Jail Managers’ Association;

          (C) One person recommended by and representing a statewide association of community corrections directors;

          (D) One nonmanagement corrections officer employed by the Department of Corrections; and

          (E) One corrections officer who is a female, who is employed by the Department of Corrections at a women’s correctional facility and who is a member of a bargaining unit.

          (4) The Fire Policy Committee consists of:

          (a) All of the board members who represent the fire service discipline; and

          (b) The following, who may not be current board members, appointed by the chairperson of the board:

          (A) One person recommended by and representing a statewide association of fire instructors;

          (B) One person recommended by and representing a statewide association of fire marshals;

          (C) One person recommended by and representing community college fire programs; and

          (D) One nonmanagement firefighter recommended by a statewide organization of firefighters.

          (5) The Police Policy Committee consists of:

          (a) All of the board members who represent the law enforcement discipline; and

          (b) The following, who may not be current board members, appointed by the chairperson of the board:

          (A) One person recommended by and representing the Oregon Association Chiefs of Police;

          (B) Two persons recommended by and representing the Oregon State Sheriffs’ Association;

          (C) One command officer recommended by and representing the Oregon State Police; and

          (D) One nonmanagement law enforcement officer.

          (6) The Telecommunications Policy Committee consists of:

          (a) All of the board members who represent the telecommunications discipline; and

          (b) The following, who may not be current board members, appointed by the chairperson of the board:

          (A) Two persons recommended by and representing a statewide association of public safety communications officers;

          (B) One person recommended by and representing the Oregon Association Chiefs of Police;

          (C) One person recommended by and representing the Oregon State Police;

          (D) Two persons representing telecommunicators;

          (E) One person recommended by and representing the Oregon State Sheriffs’ Association;

          (F) One person recommended by and representing the Oregon Fire Chiefs’ Association;

          (G) One person recommended by and representing the Emergency Medical Services and Trauma Systems Program of the [Department of Human Services] Oregon Health Authority; and

          (H) One person representing paramedics and recommended by a statewide association dealing with fire medical issues.

          (7) The Private Security Policy Committee consists of:

          (a) All of the board members who represent the private security industry; and

          (b) The following, who may not be current board members, appointed by the chairperson of the board:

          (A) One person representing unarmed private security professionals;

          (B) One person representing armed private security professionals;

          (C) One person representing the health care industry;

          (D) One person representing the manufacturing industry;

          (E) One person representing the retail industry;

          (F) One person representing the hospitality industry;

          (G) One person representing private business or a governmental entity that utilizes private security services;

          (H) One person representing persons who monitor alarm systems;

          (I) Two persons who are investigators licensed under ORS 703.430, one of whom is recommended by the Oregon State Bar and one of whom is in private practice; and

          (J) One person who represents the public at large and who is not related within the second degree by affinity or consanguinity to a person who is employed or doing business as a private security professional or executive manager, as defined in ORS 181.870, or as an investigator, as defined in ORS 703.401.

          (8) In making appointments to the policy committees under this section, the chairperson of the board shall seek to reflect the diversity of the state’s population. An appointment made by the chairperson of the board must be ratified by the board before the appointment is effective. The chairperson of the board may remove an appointed member for just cause. An appointment to a policy committee that is based on the member’s employment is automatically revoked if the member changes employment. The chairperson of the board shall fill a vacancy in the same manner as making an initial appointment. The term of an appointed member is two years. An appointed member may be appointed to a second term.

          (9) A policy committee may meet at such times and places as determined by the policy committee in consultation with the Department of Public Safety Standards and Training. A majority of a policy committee constitutes a quorum to conduct business. A policy committee may create subcommittees if needed.

          (10)(a) Each policy committee shall develop policies, requirements, standards and rules relating to its specific discipline. A policy committee shall submit its policies, requirements, standards and rules to the board for the board’s consideration. When a policy committee submits a policy, requirement, standard or rule to the board for the board’s consideration, the board shall:

          (A) Approve the policy, requirement, standard or rule;

          (B) Disapprove the policy, requirement, standard or rule; or

          (C) Defer a decision and return the matter to the policy committee for revision or reconsideration.

          (b) The board may defer a decision and return a matter submitted by a policy committee under paragraph (a) of this subsection only once. If a policy, requirement, standard or rule that was returned to a policy committee is resubmitted to the board, the board shall take all actions necessary to implement the policy, requirement, standard or rule unless the board disapproves the policy, requirement, standard or rule.

          (c) Disapproval of a policy, requirement, standard or rule under paragraph (a) or (b) of this subsection requires a two-thirds vote by the members of the board.

          (11) At any time after submitting a matter to the board, the chairperson of the policy committee may withdraw the matter from the board’s consideration.

 

          SECTION 161. ORS 182.415 is amended to read:

          182.415. As used in ORS 182.415 to 182.435 and 240.086 unless the context requires otherwise:

          (1) “Furnishings” includes furniture usually used in connection with occupancy of a household but does not include rugs, draperies, range, refrigerator, washer, dryer or any item of furnishings received by the state or one of its agencies as a gift, nor does it include any furniture purchased for the state-owned residence required in relation to the official duties of an institutional executive or the Chancellor of the Department of Higher Education prior to September 9, 1971.

          (2) “Housing” includes single and multiple family dwellings, apartments, and manufactured dwellings and manufactured dwelling pads, available on a monthly tenancy but does not include guard stations maintained by the State Forestry Department or dormitory facilities at any state institution or at any state institution of higher education.

          (3) “Dormitory” includes any facility which houses students and those facilities used primarily for sleeping purposes by the employees of the Department of Human Services or the Oregon Health Authority.

          (4) “State agency” has the same meaning as in ORS 291.002.

 

          SECTION 162. ORS 182.515 is amended to read:

          182.515. As used in this section and ORS 182.525:

          (1) “Agency” means:

          (a) The Department of Corrections;

          (b) The Oregon Youth Authority;

          (c) The State Commission on Children and Families; and

          (d) That part of the [Department of Human Services] Oregon Health Authority that deals with mental health and addiction issues.

          (2) “Cost effective” means that cost savings realized over a reasonable period of time are greater than costs.

          (3) “Evidence-based program” means a program that:

          (a) Incorporates significant and relevant practices based on scientifically based research; and

          (b) Is cost effective.

          (4)(a) “Program” means a treatment or intervention program or service that is intended to:

          (A) Reduce the propensity of a person to commit crimes;

          (B) Improve the mental health of a person with the result of reducing the likelihood that the person will commit a crime or need emergency mental health services; or

          (C) Reduce the propensity of a person who is less than 18 years of age to engage in antisocial behavior with the result of reducing the likelihood that the person will become a juvenile offender.

          (b) “Program” does not include:

          (A) An educational program or service that an agency is required to provide to meet educational requirements imposed by state law; or

          (B) A program that provides basic medical services.

          (5) “Scientifically based research” means research that obtains reliable and valid knowledge by:

          (a) Employing systematic, empirical methods that draw on observation or experiment;

          (b) Involving rigorous data analyses that are adequate to test the stated hypotheses and justify the general conclusions drawn; and

          (c) Relying on measurements or observational methods that provide reliable and valid data across evaluators and observers, across multiple measurements and observations and across studies by the same or different investigators.

 

          SECTION 163. ORS 182.535 is amended to read:

          182.535. For purposes of ORS 182.535 to 182.550, “natural resource agency” means the Department of Environmental Quality, the State Department of Agriculture, the Water Resources Department, the State Department of Fish and Wildlife, the State Forestry Department, the Department of State Lands, the Department of Education, the State Department of Geology and Mineral Industries, the Department of Land Conservation and Development, the State Marine Board, the Public Utility Commission, the Department of Transportation, the State Fire Marshal and the [Department of Human Services] Oregon Health Authority.

 

          SECTION 164. ORS 184.345 is amended to read:

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

          (a) The Department of Corrections;

          (b) The Department of Human Services; [and]

          (c) The Oregon Health Authority; and

          [(c)] (d) The State Board of Education.

          (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.

 

          SECTION 165. ORS 192.517 is amended to read:

          192.517. (1) The system designated to protect and advocate for the rights of individuals shall have access to all records of:

          (a) Any individual who is a client of the system if the individual or the legal guardian or other legal representative of the individual has authorized the system to have such access;

          (b) Any individual, including an individual who has died or whose whereabouts are unknown:

          (A) If the individual by reason of the individual’s mental or physical condition or age is unable to authorize such access;

          (B) If the individual does not have a legal guardian or other legal representative, or the state or a political subdivision of this state is the legal guardian of the individual; and

          (C) If a complaint regarding the rights or safety of the individual has been received by the system or if, as a result of monitoring or other activities which result from a complaint or other evidence, there is probable cause to believe that the individual has been subject to abuse or neglect; and

          (c) Any individual who has a legal guardian or other legal representative, who is the subject of a complaint of abuse or neglect received by the system, or whose health and safety is believed with probable cause to be in serious and immediate jeopardy if the legal guardian or other legal representative:

          (A) Has been contacted by the system upon receipt of the name and address of the legal guardian or other legal representative;

          (B) Has been offered assistance by the system to resolve the situation; and

          (C) Has failed or refused to act on behalf of the individual.

          (2) The system shall have access to the name, address and telephone number of any legal guardian or other legal representative of an individual.

          (3) The system that obtains access to records under this section shall maintain the confidentiality of the records to the same extent as is required of the provider of the services, except as provided under the Protection and Advocacy for Mentally Ill Individuals Act (42 U.S.C. 10806) as in effect on January 1, 2003.

          (4) The system shall have reasonable access to facilities, including the residents and staff of the facilities.

          (5) This section is not intended to limit or overrule the provisions of ORS 41.675 or 441.055 [(9)] (10).

 

          SECTION 166. ORS 192.519 is amended to read:

          192.519. As used in ORS 192.518 to 192.529:

          (1) “Authorization” means a document written in plain language that contains at least the following:

          (a) A description of the information to be used or disclosed that identifies the information in a specific and meaningful way;

          (b) The name or other specific identification of the person or persons authorized to make the requested use or disclosure;

          (c) The name or other specific identification of the person or persons to whom the covered entity may make the requested use or disclosure;

          (d) A description of each purpose of the requested use or disclosure, including but not limited to a statement that the use or disclosure is at the request of the individual;

          (e) An expiration date or an expiration event that relates to the individual or the purpose of the use or disclosure;

          (f) The signature of the individual or personal representative of the individual and the date;

          (g) A description of the authority of the personal representative, if applicable; and

          (h) Statements adequate to place the individual on notice of the following:

          (A) The individual’s right to revoke the authorization in writing;

          (B) The exceptions to the right to revoke the authorization;

          (C) The ability or inability to condition treatment, payment, enrollment or eligibility for benefits on whether the individual signs the authorization; and

          (D) The potential for information disclosed pursuant to the authorization to be subject to redisclosure by the recipient and no longer protected.

          (2) “Covered entity” means:

          (a) A state health plan;

          (b) A health insurer;

          (c) A health care provider that transmits any health information in electronic form to carry out financial or administrative activities in connection with a transaction covered by ORS 192.518 to 192.529; or

          (d) A health care clearinghouse.

          (3) “Health care” means care, services or supplies related to the health of an individual.

          (4) “Health care operations” includes but is not limited to:

          (a) Quality assessment, accreditation, auditing and improvement activities;

          (b) Case management and care coordination;

          (c) Reviewing the competence, qualifications or performance of health care providers or health insurers;

          (d) Underwriting activities;

          (e) Arranging for legal services;

          (f) Business planning;

          (g) Customer services;

          (h) Resolving internal grievances;

          (i) Creating de-identified information; and

          (j) Fundraising.

          (5) “Health care provider” includes but is not limited to:

          (a) A psychologist, occupational therapist, clinical social worker, professional counselor or marriage and family therapist licensed under ORS chapter 675 or an employee of the psychologist, occupational therapist, clinical social worker, professional counselor or marriage and family therapist;

          (b) A physician, podiatric physician and surgeon, physician assistant or acupuncturist licensed under ORS chapter 677 or an employee of the physician, podiatric physician and surgeon, physician assistant or acupuncturist;

          (c) A nurse or nursing home administrator licensed under ORS chapter 678 or an employee of the nurse or nursing home administrator;

          (d) A dentist licensed under ORS chapter 679 or an employee of the dentist;

          (e) A dental hygienist or denturist licensed under ORS chapter 680 or an employee of the dental hygienist or denturist;

          (f) A speech-language pathologist or audiologist licensed under ORS chapter 681 or an employee of the speech-language pathologist or audiologist;

          (g) An emergency medical technician certified under ORS chapter 682;

          (h) An optometrist licensed under ORS chapter 683 or an employee of the optometrist;

          (i) A chiropractic physician licensed under ORS chapter 684 or an employee of the chiropractic physician;

          (j) A naturopathic physician licensed under ORS chapter 685 or an employee of the naturopathic physician;

          (k) A massage therapist licensed under ORS 687.011 to 687.250 or an employee of the massage therapist;

          (L) A direct entry midwife licensed under ORS 687.405 to 687.495 or an employee of the direct entry midwife;

          (m) A physical therapist licensed under ORS 688.010 to 688.201 or an employee of the physical therapist;

          (n) A radiologic technologist licensed under ORS 688.405 to 688.605 or an employee of the radiologic technologist;

          (o) A respiratory care practitioner licensed under ORS 688.800 to 688.840 or an employee of the respiratory care practitioner;

          (p) A pharmacist licensed under ORS chapter 689 or an employee of the pharmacist;

          (q) A dietitian licensed under ORS 691.405 to 691.585 or an employee of the dietitian;

          (r) A funeral service practitioner licensed under ORS chapter 692 or an employee of the funeral service practitioner;

          (s) A health care facility as defined in ORS 442.015;

          (t) A home health agency as defined in ORS 443.005;

          (u) A hospice program as defined in ORS 443.850;

          (v) A clinical laboratory as defined in ORS 438.010;

          (w) A pharmacy as defined in ORS 689.005;

          (x) A diabetes self-management program as defined in ORS 743A.184; and

          (y) Any other person or entity that furnishes, bills for or is paid for health care in the normal course of business.

          (6) “Health information” means any oral or written information in any form or medium that:

          (a) Is created or received by a covered entity, a public health authority, an employer, a life insurer, a school, a university or a health care provider that is not a covered entity; and

          (b) Relates to:

          (A) The past, present or future physical or mental health or condition of an individual;

          (B) The provision of health care to an individual; or

          (C) The past, present or future payment for the provision of health care to an individual.

          (7) “Health insurer” means:

          (a) An insurer as defined in ORS 731.106 who offers:

          (A) A health benefit plan as defined in ORS 743.730;

          (B) A short term health insurance policy, the duration of which does not exceed six months including renewals;

          (C) A student health insurance policy;

          (D) A Medicare supplemental policy; or

          (E) A dental only policy.

          (b) The Oregon Medical Insurance Pool operated by the Oregon Medical Insurance Pool Board under ORS 735.600 to 735.650.

          (8) “Individually identifiable health information” means any oral or written health information in any form or medium that is:

          (a) Created or received by a covered entity, an employer or a health care provider that is not a covered entity; and

          (b) Identifiable to an individual, including demographic information that identifies the individual, or for which there is a reasonable basis to believe the information can be used to identify an individual, and that relates to:

          (A) The past, present or future physical or mental health or condition of an individual;

          (B) The provision of health care to an individual; or

          (C) The past, present or future payment for the provision of health care to an individual.

          (9) “Payment” includes but is not limited to:

          (a) Efforts to obtain premiums or reimbursement;

          (b) Determining eligibility or coverage;

          (c) Billing activities;

          (d) Claims management;

          (e) Reviewing health care to determine medical necessity;

          (f) Utilization review; and

          (g) Disclosures to consumer reporting agencies.

          (10) “Personal representative” includes but is not limited to:

          (a) A person appointed as a guardian under ORS 125.305, 419B.370, 419C.481 or 419C.555 with authority to make medical and health care decisions;

          (b) A person appointed as a health care representative under ORS 127.505 to 127.660 or a representative under ORS 127.700 to 127.737 to make health care decisions or mental health treatment decisions;

          (c) A person appointed as a personal representative under ORS chapter 113; and

          (d) A person described in ORS 192.526.

          (11)(a) “Protected health information” means individually identifiable health information that is maintained or transmitted in any form of electronic or other medium by a covered entity.

          (b) “Protected health information” does not mean individually identifiable health information in:

          (A) Education records covered by the federal Family Educational Rights and Privacy Act (20 U.S.C. 1232g);

          (B) Records described at 20 U.S.C. 1232g(a)(4)(B)(iv); or

          (C) Employment records held by a covered entity in its role as employer.

          (12) “State health plan” means:

          (a) The state Medicaid program;

          (b) The Oregon State Children’s Health Insurance Program; [or]

          (c) The Family Health Insurance Assistance Program established in ORS 735.720 to 735.740[.]; or

          (d) Any medical assistance or premium assistance program operated by the Oregon Health Authority.

          (13) “Treatment” includes but is not limited to:

          (a) The provision, coordination or management of health care; and

          (b) Consultations and referrals between health care providers.

 

          SECTION 167. ORS 192.527 is amended to read:

          192.527. (1) Notwithstanding ORS 179.505, a state health plan or a prepaid managed care health services organization may disclose the protected health information of an individual listed in subsection (2) of this section, without obtaining an authorization from the individual or a personal representative of the individual, to another prepaid managed care health services organization for treatment activities of a prepaid managed care health services organization when the prepaid managed care health services organization is providing behavioral or physical health care services to the individual.

          (2) The protected health information that may be disclosed pursuant to subsection (1) of this section includes the following, as defined by the [Department of Human Services] Oregon Health Authority by rule:

          (a) [Oregon Health Plan member] Medicaid recipient name;

          (b) Medicaid recipient number;

          (c) Performing provider number;

          (d) Hospital provider name;

          (e) Attending physician;

          (f) Diagnosis;

          (g) Date or dates of service;

          (h) Procedure code;

          (i) Revenue code;

          (j) Quantity of units of service provided; or

          (k) Medication prescription and monitoring.

          (3) As used in this section, “prepaid managed care health services organization” has the meaning given that term in ORS 414.736.

 

          SECTION 168. ORS 192.535 is amended to read:

          192.535. (1) A person may not obtain genetic information from an individual, or from an individual’s DNA sample, without first obtaining informed consent of the individual or the individual’s representative, except:

          (a) As authorized by ORS 181.085 or comparable provisions of federal criminal law relating to the identification of persons, or for the purpose of establishing the identity of a person in the course of an investigation conducted by a law enforcement agency, a district attorney, a medical examiner or the Criminal Justice Division of the Department of Justice;

          (b) For anonymous research or coded research conducted under conditions described in ORS 192.537 (2), after notification pursuant to ORS 192.538 or pursuant to ORS 192.547 (7)(b);

          (c) As permitted by rules of the [Department of Human Services] Oregon Health Authority for identification of deceased individuals;

          (d) As permitted by rules of the [Department of Human Services] Oregon Health Authority for newborn screening procedures;

          (e) As authorized by statute for the purpose of establishing paternity; or

          (f) For the purpose of furnishing genetic information relating to a decedent for medical diagnosis of blood relatives of the decedent.

          (2) Except as provided in subsection (3) of this section, a physician licensed under ORS chapter 677 shall seek the informed consent of the individual or the individual’s representative for the purposes of subsection (1) of this section in the manner provided by ORS 677.097. Except as provided in subsection (3) of this section, any other licensed health care provider or facility must seek the informed consent of the individual or the individual’s representative for the purposes of subsection (1) of this section in a manner substantially similar to that provided by ORS 677.097 for physicians.

          (3) A person conducting research shall seek the informed consent of the individual or the individual’s representative for the purposes of subsection (1) of this section in the manner provided by ORS 192.547.

          (4) Except as provided in ORS 746.135 (1), any person not described in subsection (2) or (3) of this section must seek the informed consent of the individual or the individual’s representative for the purposes of subsection (1) of this section in the manner provided by rules adopted by the [Department of Human Services] Oregon Health Authority.

          (5) The [Department of Human Services] Oregon Health Authority may not adopt rules under subsection (1)(d) of this section that would require the providing of a DNA sample for the purpose of obtaining complete genetic information used to screen all newborns.

 

          SECTION 169. ORS 192.537 is amended to read:

          192.537. (1) Subject to the provisions of ORS 192.531 to 192.549, 659A.303 and 746.135, an individual’s genetic information and DNA sample are private and must be protected, and an individual has a right to the protection of that privacy. Any person authorized by law or by an individual or an individual’s representative to obtain, retain or use an individual’s genetic information or any DNA sample must maintain the confidentiality of the information or sample and protect the information or sample from unauthorized disclosure or misuse.

          (2)(a) A person may use an individual’s DNA sample or genetic information that is derived from a biological specimen or clinical individually identifiable health information for anonymous research or coded research only if the individual:

          (A) Has granted informed consent for the specific anonymous research or coded research project;

          (B) Has granted consent for genetic research generally;

          (C) Was notified in accordance with ORS 192.538 that the individual’s biological specimen or clinical individually identifiable health information may be used for anonymous research or coded research and the individual did not, at the time of notification, request that the biological specimen or clinical individually identifiable health information not be used for anonymous research or coded research; or

          (D) Was not notified, due to emergency circumstances, in accordance with ORS 192.538 that the individual’s biological specimen or clinical individually identifiable health information may be used for anonymous research or coded research and the individual died before receiving the notice.

          (b) Paragraph (a) of this subsection does not apply to biological specimens or clinical individually identifiable health information obtained before July 29, 2005, if an institutional review board operating under ORS 192.547 (1)(b) meets the requirements described in ORS 192.547 (7)(b).

          (3) A person may not retain another individual’s genetic information or DNA sample without first obtaining authorization from the individual or the individual’s representative, unless:

          (a) Retention is authorized by ORS 181.085 or comparable provisions of federal criminal law relating to identification of persons, or is necessary for the purpose of a criminal or death investigation, a criminal or juvenile proceeding, an inquest or a child fatality review by a county multidisciplinary child abuse team;

          (b) Retention is authorized by specific court order pursuant to rules adopted by the Chief Justice of the Supreme Court for civil actions;

          (c) Retention is permitted by rules of the [Department of Human Services] Oregon Health Authority for identification of, or testing to benefit blood relatives of, deceased individuals;

          (d) Retention is permitted by rules of the [Department of Human Services] authority for newborn screening procedures; or

          (e) Retention is for anonymous research or coded research conducted after notification or with consent pursuant to subsection (2) of this section or ORS 192.538.

          (4) The DNA sample of an individual from which genetic information has been obtained shall be destroyed promptly upon the specific request of that individual or the individual’s representative, unless:

          (a) Retention is authorized by ORS 181.085 or comparable provisions of federal criminal law relating to identification of persons, or is necessary for the purpose of a criminal or death investigation, a criminal or juvenile proceeding, an inquest or a child fatality review by a county multidisciplinary child abuse team;

          (b) Retention is authorized by specific court order pursuant to rules adopted by the Chief Justice of the Supreme Court for civil actions; or

          (c) Retention is for anonymous research or coded research conducted after notification or with consent pursuant to subsection (2) of this section or ORS 192.538.

          (5) A DNA sample from an individual that is the subject of a research project, other than an anonymous research project, shall be destroyed promptly upon completion of the project or withdrawal of the individual from the project, whichever occurs first, unless the individual or the individual’s representative directs otherwise by informed consent.

          (6) A DNA sample from an individual for insurance or employment purposes shall be destroyed promptly after the purpose for which the sample was obtained has been accomplished unless retention is authorized by specific court order pursuant to rules adopted by the Chief Justice of the Supreme Court for civil, criminal and juvenile proceedings.

          (7) An individual or an individual’s representative, promptly upon request, may inspect, request correction of and obtain genetic information from the records of the individual.

          (8) Subject to the provisions of ORS 192.531 to 192.549, and to policies adopted by the person in possession of a DNA sample, an individual or the individual’s representative may request that the individual’s DNA sample be made available for additional genetic testing for medical diagnostic purposes. If the individual is deceased and has not designated a representative to act on behalf of the individual after death, a request under this subsection may be made by the closest surviving blood relative of the decedent or, if there is more than one surviving blood relative of the same degree of relationship to the decedent, by the majority of the surviving closest blood relatives of the decedent.

          (9) The [Department of Human Services] Oregon Health Authority shall coordinate the implementation of this section.

          (10) Subsections (3) to (8) of this section apply only to a DNA sample or genetic information that is coded, identified or identifiable.

          (11) This section does not apply to any law, contract or other arrangement that determines a person’s rights to compensation relating to substances or information derived from an individual’s DNA sample.

 

          SECTION 170. ORS 192.539 is amended to read:

          192.539. (1) Regardless of the manner of receipt or the source of genetic information, including information received from an individual or a blood relative of the individual, a person may not disclose or be compelled, by subpoena or any other means, to disclose the identity of an individual upon whom a genetic test has been performed or the identity of a blood relative of the individual, or to disclose genetic information about the individual or a blood relative of the individual in a manner that permits identification of the individual, unless:

          (a) Disclosure is authorized by ORS 181.085 or comparable provisions of federal criminal law relating to identification of persons, or is necessary for the purpose of a criminal or death investigation, a criminal or juvenile proceeding, an inquest, or a child fatality review by a county multidisciplinary child abuse team;

          (b) Disclosure is required by specific court order entered pursuant to rules adopted by the Chief Justice of the Supreme Court for civil actions;

          (c) Disclosure is authorized by statute for the purpose of establishing paternity;

          (d) Disclosure is specifically authorized by the tested individual or the tested individual’s representative by signing a consent form prescribed by rules of the [Department of Human Services] Oregon Health Authority;

          (e) Disclosure is for the purpose of furnishing genetic information relating to a decedent for medical diagnosis of blood relatives of the decedent; or

          (f) Disclosure is for the purpose of identifying bodies.

          (2) The prohibitions of this section apply to any redisclosure by any person after another person has disclosed genetic information or the identity of an individual upon whom a genetic test has been performed, or has disclosed genetic information or the identity of a blood relative of the individual.

          (3) A release or publication is not a disclosure if:

          (a) It involves a good faith belief by the person who caused the release or publication that the person was not in violation of this section;

          (b) It is not due to willful neglect;

          (c) It is corrected in the manner described in ORS 192.541 (4);

          (d) The correction with respect to genetic information is completed before the information is read or heard by a third party; and

          (e) The correction with respect to DNA samples is completed before the sample is retained or genetically tested by a third party.

 

          SECTION 171. ORS 192.547 is amended to read:

          192.547. (1)(a) The [Department of Human Services] Oregon Health Authority shall adopt rules for conducting research using DNA samples, genetic testing and genetic information. Rules establishing minimum research standards shall conform to the Federal Policy for the Protection of Human Subjects, 45 C.F.R. 46, that is current at the time the rules are adopted. The rules may be changed from time to time as may be necessary.

          (b) The rules adopted by the [Department of Human Services] Oregon Health Authority shall address the operation and appointment of institutional review boards. The rules shall conform to the compositional and operational standards for such boards contained in the Federal Policy for the Protection of Human Subjects that is current at the time the rules are adopted. The rules must require that research conducted under paragraph (a) of this subsection be conducted with the approval of the institutional review board.

          (c) Persons proposing to conduct anonymous research, coded research or genetic research that is otherwise thought to be exempt from review must obtain from an institutional review board prior to conducting such research a determination that the proposed research is exempt from review.

          (2) A person proposing to conduct research under subsection (1) of this section, including anonymous research or coded research, must disclose to the institutional review board the proposed use of DNA samples, genetic testing or genetic information.

          (3) The [Department of Human Services] Oregon Health Authority shall adopt rules requiring that all institutional review boards operating under subsection (1)(b) of this section register with the department. The Advisory Committee on Genetic Privacy and Research shall use the registry to educate institutional review boards about the purposes and requirements of the genetic privacy statutes and administrative rules relating to genetic research.

          (4) The [Department of Human Services] Oregon Health Authority shall consult with the Advisory Committee on Genetic Privacy and Research before adopting the rules required under subsections (1) and (3) of this section, including rules identifying those parts of the Federal Policy for the Protection of Human Subjects that are applicable to this section.

          (5) Genetic research in which the DNA sample or genetic information is coded shall satisfy the following requirements:

          (a)(A) The subject has granted informed consent for the specific research project;

          (B) The subject has consented to genetic research generally; or

          (C) The DNA sample or genetic information is derived from a biological specimen or from clinical individually identifiable health information that was obtained or retained in compliance with ORS 192.537 (2).

          (b) The research has been approved by an institutional review board after disclosure by the investigator to the board of risks associated with the coding.

          (c) The code is:

          (A) Not derived from individual identifiers;

          (B) Kept securely and separately from the DNA samples and genetic information; and

          (C) Not accessible to the investigator unless specifically approved by the institutional review board.

          (d) Data is stored securely in password protected electronic files or by other means with access limited to necessary personnel.

          (e) The data is limited to elements required for analysis and meets the criteria in 45 C.F.R 164.514(e) for a limited data set.

          (f) The investigator is a party to the data use agreement as provided by 45 C.F.R. 164.514(e) for limited data set recipients.

          (6) Research conducted in accordance with this section is rebuttably presumed to comply with ORS 192.535 and 192.539.

          (7)(a) Notwithstanding ORS 192.535, a person may use a DNA sample or genetic information obtained, with blanket informed consent, before June 25, 2001, for genetic research.

          (b) Notwithstanding ORS 192.535, a person may use a DNA sample or genetic information obtained without specific informed consent and derived from a biological specimen or clinical individually identifiable health information for anonymous research or coded research if an institutional review board operating under subsection (1)(b) of this section:

          (A) Waives or alters the consent requirements pursuant to the Federal Policy for the Protection of Human Subjects; and

          (B) Waives authorization pursuant to the federal Health Insurance Portability and Accountability Act privacy regulations, 45 C.F.R. parts 160 and 164.

          (c) Except as provided in subsection (5)(a) of this section or paragraph (b) of this subsection, a person must have specific informed consent from an individual to use a DNA sample or genetic information of the individual obtained on or after June 25, 2001, for genetic research.

          (8) Except as otherwise allowed by rule of the [Department of Human Services] Oregon Health Authority, if DNA samples or genetic information obtained for either clinical or research purposes is used in research, a person may not recontact the individual or the individual’s physician by using research information that is identifiable or coded. The [Department of Human Services] Oregon Health Authority shall adopt by rule criteria for recontacting an individual or an individual’s physician. In adopting the criteria, the department shall consider the recommendations of national organizations such as those created by executive order by the President of the United States and the recommendations of the Advisory Committee on Genetic Privacy and Research.

          (9) The requirements for consent to, or notification of, obtaining a DNA sample or genetic information for genetic research are governed by the provisions of ORS 192.531 to 192.549 and the administrative rules that were in effect on the effective date of the institutional review board’s most recent approval of the study.

 

          SECTION 172. ORS 192.549 is amended to read:

          192.549. (1) The Advisory Committee on Genetic Privacy and Research is established consisting of 15 members. The President of the Senate and the Speaker of the House of Representatives shall each appoint one member and one alternate. The Director of [Human Services] the Oregon Health Authority shall appoint one representative and one alternate from each of the following categories:

          (a) Academic institutions involved in genetic research;

          (b) Physicians licensed under ORS chapter 677;

          (c) Voluntary organizations involved in the development of public policy on issues related to genetic privacy;

          (d) Hospitals;

          [(e) The Department of Human Services;]

          [(f) The Department of Consumer and Business Services;]

          [(g) Health care service contractors involved in genetic and health services research;]

          [(h) The biosciences industry;]

          [(i) The pharmaceutical industry;]

          [(j) Health care consumers;]

          [(k) Organizations advocating for privacy of medical information;]

          [(L) Public members of institutional review boards; and]

          [(m) Organizations or individuals promoting public education about genetic research and genetic privacy and public involvement in policymaking related to genetic research and genetic privacy.]

          (e) The Department of Consumer and Business Services;

          (f) The Oregon Health Authority;

          (g) Health care service contractors involved in genetic and health services research;

          (h) The biosciences industry;

          (i) The pharmaceutical industry;

          (j) Health care consumers;

          (k) Organizations advocating for privacy of medical information;

          (L) Public members of institutional review boards; and

          (m) Organizations or individuals promoting public education about genetic research and genetic privacy and public involvement in policymaking related to genetic research and genetic privacy.

          (2) Organizations and individuals representing the categories listed in subsection (1) of this section may recommend nominees for membership on the advisory committee to the President, the Speaker and the director.

          (3) Members and alternate members of the advisory committee serve two-year terms and may be reappointed.

          (4) Members and alternate members of the advisory committee serve at the pleasure of the appointing entity.

          (5) The [Department of Human Services] Oregon Health Authority shall provide staff for the advisory committee.

          (6) The advisory committee shall report biennially to the Legislative Assembly in the manner provided by ORS 192.245. The report shall include the activities and the results of any studies conducted by the advisory committee. The advisory committee may make any recommendations for legislative changes deemed necessary by the advisory committee.

          (7) The advisory committee shall study the use and disclosure of genetic information and shall develop and refine a legal framework that defines the rights of individuals whose DNA samples and genetic information are collected, stored, analyzed and disclosed.

          (8) The advisory committee shall create opportunities for public education on the scientific, legal and ethical development within the fields of genetic privacy and research. The advisory committee shall also elicit public input on these matters. The advisory committee shall make reasonable efforts to obtain public input that is representative of the diversity of opinion on this subject. The advisory committee’s recommendations to the Legislative Assembly shall take into consideration public concerns and values related to these matters.

 

          SECTION 173. ORS 192.630, as amended by section 21, chapter 100, Oregon Laws 2007, is amended to read:

          192.630. (1) All meetings of the governing body of a public body shall be open to the public and all persons shall be permitted to attend any meeting except as otherwise provided by ORS 192.610 to 192.690.

          (2) A quorum of a governing body may not meet in private for the purpose of deciding on or deliberating toward a decision on any matter except as otherwise provided by ORS 192.610 to 192.690.

          (3) A governing body may not hold a meeting at any place where discrimination on the basis of race, color, creed, sex, sexual orientation, national origin, age or disability is practiced. However, the fact that organizations with restricted membership hold meetings at the place does not restrict its use by a public body if use of the place by a restricted membership organization is not the primary purpose of the place or its predominate use.

          (4) Meetings of the governing body of a public body shall be held within the geographic boundaries over which the public body has jurisdiction, or at the administrative headquarters of the public body or at the other nearest practical location. Training sessions may be held outside the jurisdiction as long as no deliberations toward a decision are involved. A joint meeting of two or more governing bodies or of one or more governing bodies and the elected officials of one or more federally recognized Oregon Indian tribes shall be held within the geographic boundaries over which one of the participating public bodies or one of the Oregon Indian tribes has jurisdiction or at the nearest practical location. Meetings may be held in locations other than those described in this subsection in the event of an actual emergency necessitating immediate action.

          (5)(a) It is discrimination on the basis of disability for a governing body of a public body to meet in a place inaccessible to persons with disabilities, or, upon request of a person who is deaf or hard of hearing, to fail to make a good faith effort to have an interpreter for persons who are deaf or hard of hearing provided at a regularly scheduled meeting. The sole remedy for discrimination on the basis of disability shall be as provided in ORS 192.680.

          (b) The person requesting the interpreter shall give the governing body at least 48 hours’ notice of the request for an interpreter, shall provide the name of the requester, sign language preference and any other relevant information the governing body may request.

          (c) If a meeting is held upon less than 48 hours’ notice, reasonable effort shall be made to have an interpreter present, but the requirement for an interpreter does not apply to emergency meetings.

          (d) If certification of interpreters occurs under state or federal law, the [Department of Human Services] Oregon Health Authority or other state or local agency shall try to refer only certified interpreters to governing bodies for purposes of this subsection.

          (e) As used in this subsection, “good faith effort” includes, but is not limited to, contacting the department or other state or local agency that maintains a list of qualified interpreters and arranging for the referral of one or more qualified interpreters to provide interpreter services.

 

          SECTION 174. ORS 197.660 is amended to read:

          197.660. As used in ORS 197.660 to 197.670, 215.213, 215.263, 215.283, 215.284 and 443.422:

          (1) “Residential facility” means a residential care, residential training or residential treatment facility, as those terms are defined in ORS 443.400, [licensed under ORS 443.400 to 443.460 or licensed under ORS 418.205 to 418.327 by the Department of Human Services] that provides residential care alone or in conjunction with treatment or training or a combination thereof for six to fifteen individuals who need not be related. Staff persons required to meet licensing requirements shall not be counted in the number of facility residents, and need not be related to each other or to any resident of the residential facility.

          (2) “Residential home” means a residential treatment or training [or adult foster home licensed by or under the authority of the department, as defined in ORS 443.400, under ORS 443.400 to 443.825,] home, as defined in ORS 443.400, a residential facility registered under ORS 443.480 to 443.500 or an adult foster home licensed under ORS 443.705 to 443.825 that provides residential care alone or in conjunction with treatment or training or a combination thereof for five or fewer individuals who need not be related. Staff persons required to meet licensing requirements shall not be counted in the number of facility residents, and need not be related to each other or to any resident of the residential home.

          (3) “Zoning requirement” means any standard, criteria, condition, review procedure, permit requirement or other requirement adopted by a city or county under the authority of ORS chapter 215 or 227 that applies to the approval or siting of a residential facility or residential home. A zoning requirement does not include a state or local health, safety, building, occupancy or fire code requirement.

 

          SECTION 175. ORS 198.792 is amended to read:

          198.792. (1) Proceedings may be initiated by the county board or any other public agency in accordance with ORS 431.705 to 431.760:

          (a) To annex the affected territory to a district, as defined by ORS 431.705; or

          (b) To form a metropolitan service district as authorized by ORS chapter 268, or a county service district as authorized by ORS chapter 451, to include the affected territory.

          (2) The findings of the Director of [Human Services] the Oregon Health Authority when filed with the county board in accordance with ORS 431.735 or 431.750 shall be considered a petition for the purposes of ORS 198.705 to 198.955. The county board of the principal county shall conduct proceedings in accordance with the findings and order of the director and with ORS 198.705 to 198.955.

          (3) In proceedings described by subsection (1) of this section, the county board shall determine whether the affected territory shall be included in a new district or annexed to an existing district. The county board shall not inquire into the need for the proposed service facilities or adjust the boundaries of the affected territory. ORS 198.805 (2), and the provisions of ORS 198.810 and 198.815 providing for an election on the formation of or annexation to a district, do not apply to proceedings under this section.

 

          SECTION 176. ORS 199.461 is amended to read:

          199.461. (1) When the boundary commission receives a petition in a boundary change proceeding or an application for any proceeding allowed under ORS 199.464, it shall:

          (a) Cause a study to be made of the proposal.

          (b) Conduct one or more public hearings on the proposal.

          (2) After the study and hearings, the boundary commission may alter the boundaries set out in a petition for formation or a minor boundary change of a city or district or in a petition for consolidation of cities so as either to include or exclude territory. If the commission determines that any land has been improperly omitted from the proposal and that the owner of the land has not appeared at the hearing, in person or by a representative designated in writing, the commission shall continue the hearing on the petition and shall order notice given to the nonappearing owner requiring appearance of the owner before the commission to show cause, if any, why the land should not be included in the proposal. For minor boundary change modifications, notice to nonappearing owners may be given by personal service or by letter sent by first-class mail, at least 10 days prior to the date to which the hearing has been continued. For major boundary change modifications, notice to nonappearing owners may be given by personal service, by letter sent by first-class mail or by a legal advertisement in a newspaper of general circulation in the area at least 15 days prior to the date to which the hearing has been continued. The required notice may be waived by the nonappearing owner.

          (3) After the study and hearings the boundary commission may alter the application for extraterritorial sewer or water line extensions to include or exclude line and connections thereto, and may alter the application for formation of a privately owned sewer or water system or allocation of territory to a community water supply system to include or exclude territory. If the commission determines that any land has been improperly omitted from a proposal to form a private water or sewer system or allocate territory to a community water system, or that any line or connections have been improperly omitted from a proposal to extend extraterritorially a water or sewer line, and that the owner of the property to be included or to which the line is being extended has not appeared at the hearing, in person or by a representative designated in writing, the commission shall continue the hearing on the proposal and shall order notice given to the nonappearing owner requiring appearance of the owner before the commission to show cause, if any, why the land or line or connection should not be included in the proposal. Notice to nonappearing owners may be given by personal service or by letter sent by first-class mail, at least 10 days prior to the date to which the hearing has been continued. The required notice may be waived by the nonappearing owner.

          (4) On the basis of the study and on the basis of the facts presented at the hearing, the boundary commission shall approve the proposed boundary change or application under ORS 199.464 as presented or as modified by the commission or disapprove the proposed change, by an order stating the reasons for the decision of the commission. Jurisdiction for judicial review of such an order is conferred upon the Court of Appeals. Except as provided in ORS 183.315 (1), any person interested in a boundary change may petition for judicial review of the order under ORS 183.482.

          (5) Immediately after the effective date of a final order entered under subsection (4) of this section and a proclamation declaring a minor boundary change approved if any is entered under ORS 199.505 (3), the commission shall file a copy of the order and proclamation, if any, with the Secretary of State, the Department of Revenue, the assessor and the county clerk of each county in which the affected territory, city or district is located, and the clerk of the affected city or district. If the commission disapproves a minor boundary change, it shall send a copy of the final order to the person who actually filed the petition and to the affected city or district.

          (6) Immediately after the effective date of a final order on an application under ORS 199.464, the commission shall file a copy of the order with the applicant, the [Department of Human Services] Oregon Health Authority, the Department of Environmental Quality and the county planning department.

 

          SECTION 177. ORS 199.490 is amended to read:

          199.490. (1) A proceeding for a minor boundary change other than a transfer of territory may be initiated:

          (a) By resolution of the governing body of the affected city or district;

          (b) By petition signed by 10 percent of the electors registered in the affected territory;

          (c) By petition signed by the owners of at least one-half the land area in the affected territory;

          (d) By resolution of a boundary commission having jurisdiction of the affected territory; or

          (e) When the minor boundary change is a withdrawal of a city from a district, by resolution of the governing body of the city, which shall be an affected city for the purposes of ORS 199.410 to 199.534.

          (2)(a)(A) An annexation proceeding may also be initiated by a resolution adopted by the governing body of the affected city or district upon receiving consent to annex their land in writing from more than half of the owners of land in the territory proposed to be annexed, who also own more than half of the land in the territory proposed to be annexed and of real property therein representing more than half of the assessed value of all real property in the territory proposed to be annexed.

          (B) A resolution adopted by the governing body of the affected city or district upon receiving written consent to annexation from a majority of the electors registered in the territory proposed to be annexed and written consent to the annexation of their land from the owners of more than half the land in the territory proposed to be annexed.

          (b) However, before soliciting statements of consent for the purpose of authorizing an annexation under a proceeding initiated as provided by this subsection, the governing body of the affected city or district shall file a notice of intent to annex with the boundary commission having jurisdiction of the affected territory. The notice of intent to annex shall name the affected city or district and generally describe the boundaries of the territory sought to be annexed, which territory must be contiguous to the city or district or separated from it only by a public right of way or a stream, bay, lake or other body of water. The notice of intent to annex shall have attached to it a county assessor’s cadastral map showing the location of the affected territory that the city or district proposes to annex.

          (c) For the purpose of this subsection, consent need not be obtained for any land in a public way included within or contiguous to the territory proposed to be annexed. However, land in such a public way shall, as determined by the commission, be considered annexed to the affected city or district if the minor boundary change is approved, regardless of the land’s ownership, size or assessed valuation.

          (d) For the purpose of this subsection, consent need not be obtained for any real property that is publicly owned, is the right of way for a public utility, telecommunications utility or railroad or is exempt from ad valorem taxation unless the owner of such property files a statement consenting to or opposing annexation with the legislative body of the annexing city or district on or before the date the city or district adopts the resolution required by paragraph (a) of this subsection.

          (e) As used in this subsection, “owner” has the additional meaning given that term in ORS 222.120 (7).

          (3) A transfer of territory proceeding may be initiated:

          (a) By joint resolution of the governing bodies of the affected districts or cities;

          (b) By petition signed by 10 percent of the electors registered in the affected territory;

          (c) By petition signed by the owners of at least one-half the land area in the affected territory; or

          (d) By resolution of a boundary commission having jurisdiction of the affected territory.

          (4) The petition or resolution shall:

          (a) Name the affected city or district and state whether it is proposed to annex, withdraw or transfer territory;

          (b) Describe the boundaries of the affected territory;

          (c) If the proposal concerns a district, designate the applicable principal Act;

          (d) Have attached a county assessor’s cadastral map showing the location of the affected territory; and

          (e) Be filed with the boundary commission having jurisdiction of the affected territory.

          (5) When a city annexation is initiated:

          (a) As provided by ORS 222.750 the petition proposing the annexation shall be filed with the boundary commission having jurisdiction of the annexation.

          (b) As provided by ORS 222.840 to 222.915, the findings adopted by the Director of [Human Services] the Oregon Health Authority under ORS 222.880 shall be considered the initiatory action and a certified copy of the findings shall be filed with the boundary commission having jurisdiction of the annexation, at the same time a copy of the finding is filed with the affected city.

          (6) Except when a boundary change is initiated by an affected city or district under subsection (1), (2), (3) or (5) of this section or by the [Director of Human Services] director as provided by subsection (5)(b) of this section, the boundary commission shall notify the affected city or district that a petition has been filed or that the commission has adopted a resolution. If the petition complies with the requirements of the applicable statutes, the commission shall proceed as provided by ORS 199.460 to 199.463 and 199.490 to 199.519.

          (7) Unless the parties appearing at a hearing for a minor boundary change or application under ORS 199.464 agree to a postponement of the adoption of a final order, a final order approving or disapproving a minor boundary change must be adopted within 90 days after the date the petition, resolution or application is filed with the commission. If a final order approving or disapproving a minor boundary change is not adopted within 90 days after the petition, resolution or application is filed or within the period of postponement, the petition, resolution or application shall be considered approved by the commission. A postponement shall not be for a period exceeding one year from the date the petition, resolution or application initiating the proposal is filed with the commission.

 

          SECTION 178. ORS 199.495 is amended to read:

          199.495. In a proceeding initiated as provided by ORS 199.490 (2) and (5):

          (1) If the proposed annexation is approved by the commission, the final order shall be effective at the time specified in the final order except that the effective date for an annexation initiated as provided by ORS 199.490 (5) shall not be more than one year after the date the final order is adopted and for an annexation initiated as provided by ORS 199.490 (2) shall not be more than 10 years after the date the final order is adopted. If no effective date is specified in the final order, the order shall take effect on the date the order is adopted. The order shall not be subject to ORS 199.505.

          (2) ORS 222.883 to 222.896, 222.900 (1) and (3) and 222.915 do not apply to proceedings initiated by the findings of the Director of [Human Services] the Oregon Health Authority.

 

          SECTION 179. ORS 199.512 is amended to read:

          199.512. (1) The findings of the Director of [Human Services] the Oregon Health Authority filed with a boundary commission in accordance with ORS 431.740 or 431.750 shall be considered a petition for the purposes of ORS 199.410 to 199.534. When the findings of the director are filed with a commission, it shall proceed in accordance with the findings and with ORS 199.410 to 199.534, but the commission shall not inquire into the need for the proposed facilities or adjust the boundaries of the affected territory.

          (2) In proceedings described by subsection (1) of this section, the boundary commission shall determine whether the affected territory shall be included in a new city, new metropolitan service district or new county service district or annexed to an existing district. The final order of the commission shall conclude the proceedings for all purposes; and the formation or annexation approved and ordered by the commission shall take effect 45 days after the date the commission adopts the final order in the proceeding.

 

          SECTION 180. ORS 222.120 is amended to read:

          222.120. (1) Except when expressly required to do so by the city charter, the legislative body of a city is not required to submit a proposal for annexation of territory to the electors of the city for their approval or rejection.

          (2) When the legislative body of the city elects to dispense with submitting the question of the proposed annexation to the electors of the city, the legislative body of the city shall fix a day for a public hearing before the legislative body at which time the electors of the city may appear and be heard on the question of annexation.

          (3) The city legislative body shall cause notice of the hearing to be published once each week for two successive weeks prior to the day of hearing, in a newspaper of general circulation in the city, and shall cause notices of the hearing to be posted in four public places in the city for a like period.

          (4) After the hearing, the city legislative body may, by an ordinance containing a legal description of the territory in question:

          (a) Declare that the territory is annexed to the city upon the condition that the majority of the votes cast in the territory is in favor of annexation;

          (b) Declare that the territory is annexed to the city where electors or landowners in the contiguous territory consented in writing to such annexation, as provided in ORS 222.125 or 222.170, prior to the public hearing held under subsection (2) of this section; or

          (c) Declare that the territory is annexed to the city where the [Department of Human Services] Oregon Health Authority, prior to the public hearing held under subsection (1) of this section, has issued a finding that a danger to public health exists because of conditions within the territory as provided by ORS 222.840 to 222.915.

          (5) If the territory described in the ordinance issued under subsection (4) of this section is a part less than the entire area of a district named in ORS 222.510, the ordinance may also declare that the territory is withdrawn from the district on the effective date of the annexation or on any subsequent date specified in the ordinance. However, if the affected district is a district named in ORS 222.465, the effective date of the withdrawal of territory shall be determined as provided in ORS 222.465.

          (6) The ordinance referred to in subsection (4) of this section is subject to referendum.

          (7) For the purpose of this section, ORS 222.125 and 222.170, “owner” or “landowner” means the legal owner of record or, where there is a recorded land contract which is in force, the purchaser thereunder. If there is a multiple ownership in a parcel of land each consenting owner shall be counted as a fraction to the same extent as the interest of the owner in the land bears in relation to the interest of the other owners and the same fraction shall be applied to the parcel’s land mass and assessed value for purposes of the consent petition. If a corporation owns land in territory proposed to be annexed, the corporation shall be considered the individual owner of that land.

 

          SECTION 181. ORS 222.850 is amended to read:

          222.850. As used in ORS 222.840 to 222.915, unless the context requires otherwise:

          (1) “Affected territory” means an area within the urban growth boundary of a city and which is otherwise eligible for annexation to that city and in which there exists an actual or alleged danger to public health.

          (2) “Authority” means the Oregon Health Authority.

          [(2)] (3) “City council” means the legislative body of a city.

          [(3)] (4) “Commission” means the Environmental Quality Commission.

          [(4)] (5) “Danger to public health” means a condition which is conducive to the propagation of communicable or contagious disease-producing organisms and which presents a reasonably clear possibility that the public generally is being exposed to disease-caused physical suffering or illness, including a condition such as:

          (a) Impure or inadequate domestic water.

          (b) Inadequate installations for the disposal or treatment of sewage, garbage or other contaminated or putrefying waste.

          (c) Inadequate improvements for drainage of surface water and other fluid substances.

          [(5) “Department” means the Department of Human Services.]

          (6) “Director” means the Director of [Human Services] the Oregon Health Authority.

          (7) “District” means any one of the following:

          (a) A metropolitan service district formed under ORS chapter 268.

          (b) A county service district formed under ORS chapter 451.

          (c) A sanitary district formed under ORS 450.005 to 450.245.

          (d) A sanitary authority, water authority or joint water and sanitary authority formed under ORS 450.600 to 450.989.

          (e) A domestic water supply district formed under ORS chapter 264.

 

          SECTION 182. ORS 222.860 is amended to read:

          222.860. (1) The city council of any city shall adopt a resolution containing a proposal for annexation without vote or consent in the affected territory. The proposal may contain terms of annexation as provided in ORS 222.111 and shall:

          (a) Describe the boundaries of the affected territory; and

          (b) Describe the conditions alleged to be causing a danger to public health.

          (2) The governing body of any district having jurisdiction over the affected territory may adopt a resolution containing a proposal for annexation to the city without vote or consent in the affected territory. The proposal shall:

          (a) Describe the boundaries of the affected territory; and

          (b) Describe the conditions alleged to be causing a danger to public health.

          (3) The local board of health having jurisdiction shall verify the conditions alleged in the proposal to be causing a danger to public health, based upon its knowledge of those conditions.

          (4) The council or governing body shall cause a certified copy of the resolution together with verification by the local board of health having jurisdiction, to be forwarded to the [Department of Human Services] Oregon Health Authority and request the [department] authority to ascertain whether conditions dangerous to public health exist in the affected territory.

 

          SECTION 183. ORS 222.870 is amended to read:

          222.870. (1) Upon receipt of the certified copy of the resolution, and verification by the local board of health having jurisdiction, the [Department of Human Services] Oregon Health Authority shall review and investigate conditions in the affected territory. If it finds substantial evidence that a danger to public health exists in the territory, it shall issue an order for a hearing to be held within the affected territory, or at a place near the affected territory if there is no suitable place within that territory at which to hold the hearing, not sooner than 30 days from the date of the order.

          (2) Upon issuance of an order for a hearing, the [department] authority shall immediately give notice of the resolution and order by publishing them in a newspaper of general circulation within the city and the affected territory once each week for two successive weeks and by posting copies of the order in four public places within the affected territory.

 

          SECTION 184. ORS 222.875 is amended to read:

          222.875. (1) The hearing shall be for the sole purpose of determining whether a danger to public health exists due to conditions in the affected territory. It may be conducted by one or more members of the staff of the [Department of Human Services] Oregon Health Authority to whom authority to conduct such a hearing is delegated. It shall proceed in accordance with rules which may be established by the [department] authority. Any person who may be affected by the finding, including residents of the city, may be heard. Within 60 days following the hearing, the person conducting the hearing shall prepare and submit to the [department] authority written findings of fact and recommendations based thereon. The [department] authority shall publish a notice of the issuance of such findings and recommendations in the newspaper utilized for the notice of hearing under ORS 222.870, advising of the opportunity for presentation of a petition under subsection (2) of this section.

          (2) Within 15 days after the publication of notice of issuance of findings in accordance with subsection (1) of this section any person who may be affected by the findings, including residents of the city, or the affected city, may petition the Director of [Human Services] the Oregon Health Authority according to rules of the [department] authority to present written or oral arguments on the proposal. If a petition is received the director may set a time and place for receipt of argument.

 

          SECTION 185. ORS 222.880 is amended to read:

          222.880. (1) Within 30 days following the final hearing of any arguments received by petition under the provisions of ORS 222.875 (2) the Director of [Human Services] the Oregon Health Authority shall review the arguments and the findings and recommendations of the person conducting the hearing as provided in ORS 222.875 (2). If the director finds no danger to public health exists because of conditions within the affected territory, the director shall issue an order terminating the proceedings under ORS 222.840 to 222.915 with reference to the affected territory.

          (2) If the director finds that a danger to public health exists because of conditions within the affected territory, the director shall file a certified copy of findings with the city and, except where the condition causing the danger to public health is impure or inadequate domestic water, with the Environmental Quality Commission.

          (3) If the director determines that a danger to public health exists because of conditions within only part of the affected territory, the director may, upon petition and hearing, reduce the boundaries of the affected territory to that part of the territory that presents a danger if the area to be excluded would not be surrounded by the affected territory remaining to be annexed and would not be directly served by the sanitary, water or other facilities necessary to remove or alleviate the danger to public health existing within the affected territory remaining to be annexed. The findings shall describe the boundaries of the affected territory as reduced by the director. The director shall file a certified copy of findings with the city and, except where the condition causing the danger to public health is impure or inadequate domestic water, the commission.

          (4) In determining whether to exclude any area the director may consider whether or not such exclusion would unduly interfere with the removal or alleviation of the danger to public health in the affected territory remaining to be annexed and whether the exclusion would result in an illogical boundary for the extension of services normally provided by an incorporated city.

          (5) The city shall, when requested, aid in the determinations made under subsections (3) and (4) of this section and, if necessary, cause a study to be made.

          (6) Notwithstanding ORS 222.111 (3), the director, in implementing an order under ORS 222.840 to 222.915, may allow the use of the tax differential authorized by ORS 222.111 (3) for a period not exceeding 15 years with the consent of the affected city.

 

          SECTION 186. ORS 222.883 is amended to read:

          222.883. At any time after the Director of [Human Services] the Oregon Health Authority under ORS 222.880 finds that conditions dangerous to public health exist, the [Department of Human Services] Oregon Health Authority may order further proceedings on the findings filed under ORS 222.880 halted in order to allow a city, district or persons affected by the findings to develop and propose an alternative plan to annexation for the removal or alleviation of the conditions dangerous to public health. Proceedings may be stayed under this section for not longer than 30 days.

 

          SECTION 187. ORS 222.885 is amended to read:

          222.885. (1) Within 60 days after the Director of [Human Services] the Oregon Health Authority under ORS 222.880 finds that conditions dangerous to public health exist, a petition, signed by not less than 51 percent of the electors registered in the affected territory, may be filed with the [Department of Human Services] Oregon Health Authority. Such petition shall suggest an alternative plan to annexation to the city for removal or alleviation of the conditions dangerous to public health. The petition shall state the intent of the residents to seek annexation to an existing district authorized by law to provide facilities within the affected territory necessary to remove or alleviate the dangerous conditions or to seek, with the approval of the city or district, extraterritorial extension of a city’s or district’s sewer or water lines. The petition shall be accompanied by a proposed plan which shall state the type of facilities to be constructed, a proposed means of financing the facilities, and an estimate of the time required to construct such facilities and place them in operation.

          (2) Within 30 days after the director under ORS 222.880 finds that conditions dangerous to public health exist, a resolution adopted by the city council or the governing body of any district having jurisdiction over the affected territory may be filed with the [department] authority. The resolution shall suggest an alternative plan to annexation to the city for removal or alleviation of the conditions dangerous to public health. The resolution shall be accompanied by a proposed plan which shall state the type of facilities to be constructed, a proposed means of financing the facilities, and an estimate of the time required to construct such facilities and place them in operation.

          (3) Upon receipt of such petition or resolution adopted by a district or city council, the [department] authority shall:

          (a) Immediately forward copies of any petition or resolution to the city or district referred to in the petition or resolution, and, except where the condition causing the danger to public health is impure or inadequate domestic water, to the Environmental Quality Commission.

          (b) Order further proceedings on the findings filed under ORS 222.880 stayed pending the review permitted under ORS 222.890 and this section.

 

          SECTION 188. ORS 222.890 is amended to read:

          222.890. (1) An alternative plan referred to in ORS 222.885 shall be reviewed by the [Department of Human Services] Oregon Health Authority in cases where danger to public health is caused by impure or inadequate domestic water and in all other cases by the Environmental Quality Commission. The plan shall be approved or rejected by the [appropriate] authority or commission. In reviewing the alternative plan contained in the petition, the authority or commission shall consider whether, in its judgment, the plan contains a preferable alternative for the alleviation or removal of the conditions dangerous to public health. If it determines that annexation to the city provides the best and most expeditious method of removing or alleviating the dangerous conditions, the alternative plan shall be rejected and further proceedings on the finding filed under ORS 222.880 shall resume.

          (2) If the [reviewing] authority or commission finds that the alternative plan provides a preferable method of alleviating or removing the dangerous conditions, the petitioners or appropriate governing body shall have six months within which to present to [such] the authority or commission information showing:

          (a) That the territory in which the conditions dangerous to public health exist has received approval for the extension of a city’s or district’s sewer or water lines within the territory or has annexed to a district authorized by law to provide facilities necessary to remove or alleviate the dangerous conditions, and that financing of the facilities for extension of such facilities to the territory has been assured.

          (b) Detailed plans and specifications for the construction of such facilities.

          (c) A time schedule for the construction of such facilities.

          (d) That such facilities, if constructed, will remove or alleviate the conditions dangerous to public health in a manner as satisfactory and expeditious as would be accomplished by the proposed annexation to the city.

          (3) The authority or commission shall review the final plan presented to it by the petitioners, city or district and shall promptly certify whether the requirements of subsection (2) of this section have been met. If the requirements have been met, the [department] authority shall certify the alternative plan. Further annexation proceedings on the findings filed under ORS 222.880 shall be suspended and the city shall be so notified. If the requirements of subsection (2) of this section are not met by the petitioners, city or district or whenever the [reviewing] authority or commission determines that the requirements of the certified plan are not being satisfied, further proceedings on the findings filed under ORS 222.880 shall resume.

 

          SECTION 189. ORS 222.897 is amended to read:

          222.897. (1) Upon receipt of a certified copy of the findings of the [Department of Human Services] Oregon Health Authority under ORS 222.880, the city council shall cause a study to be made and preliminary plans and specifications developed for the sanitary, water or other facilities necessary to remove or alleviate the conditions causing a danger to public health. The council shall prepare a schedule setting out the steps necessary to put the plan into operation and the time required for each step in the implementation of the plan. A copy of the plans and specifications and the time schedule shall, in the case where the danger to public health is caused by impure or inadequate domestic water, be submitted to the [department] authority and in all other cases to the Environmental Quality Commission.

          (2) If the city within 90 days, fails to complete the requirements in subsection (1) of this section, the [department] authority shall conduct the necessary studies and prepare plans and other documents required for the consideration of the proposal and the final determination of the proceedings. The expense of the study and preparation of the plans and other documents shall be paid by the city upon vouchers properly certified by the Director of [Human Services] the Oregon Health Authority.

 

          SECTION 190. ORS 222.900 is amended to read:

          222.900. (1) Subject to subsection (2) of this section, upon receipt of the certified copy of the finding as provided in ORS 222.880 (2) or (3) and certification of approval of plans under ORS 222.898, the city council shall adopt an ordinance which shall:

          (a) Contain the legal description of the territory annexed;

          (b) Contain the terms of the annexation, if any, made under ORS 222.111;

          (c) Adopt the plans, specifications and time schedule as approved by the [Department of Human Services] Oregon Health Authority or Environmental Quality Commission; and

          (d) Declare the territory annexed to the city in accordance with ORS 222.840 to 222.915.

          (2) An ordinance shall not be enacted as provided in subsection (1) of this section until the expiration of the time for appeal under the provisions of ORS 222.896 and, in the event an appeal is filed, following the determination of that appeal.

          (3) If the [department] authority makes its finding under ORS 222.880 (3), the city shall not annex a greater area than that described in the finding. The recorder, or other officer performing the duties of the recorder, shall transmit a transcript to the Secretary of State, including certified copies of the resolution required in ORS 222.860, the finding of the Director of [Human Services] the Oregon Health Authority, and the ordinance proclaiming annexation of the territory.

          (4) If the city council adopts the ordinance of annexation as provided in subsection (1) of this section, it shall within one year thereafter prepare plans and specifications for the sanitary, water or other facilities proposed to be provided in the annexed area, in compliance with ORS 448.115 to 448.285 or 468B.055 and shall then proceed in accordance with the time schedule to construct or install these facilities. The commission shall use its powers of enforcement under ORS 448.305, 454.010 to 454.040, 454.205 to 454.255, 454.505 to 454.535, 454.605 to 454.755, and ORS chapters 468, 468A and 468B to insure that the facilities are constructed or installed in conformance with the approved plans and schedule. The manner of financing the cost of the facilities shall be determined by the city council.

 

          SECTION 191. ORS 222.911 is amended to read:

          222.911. No officer or employee of the [Department of Human Services] Oregon Health Authority who owns property or resides within affected territory that is subject to proceedings under the provisions of ORS 222.840 to 222.915 shall participate in an official capacity in any investigation, hearing or recommendation relating to such proceedings. If the Director of [Human Services] the Oregon Health Authority is such a person, the director shall so inform the Governor, who shall appoint another person to fulfill the duties of the director in any investigation, hearing or recommendation relating to such proceeding.

 

          SECTION 192. 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 Ethics 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 any pro tem judicial officer who does not otherwise serve as a judicial officer.

          (c) Any candidate for a public office designated in paragraph (a) or (b) of this subsection.

          (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 Oregon University System 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.

          (C) Manager of State Accident Insurance Fund Corporation.

          (D) Water Resources Director.

          (E) Director of Department of Environmental Quality.

          (F) Director of Oregon Department of Administrative Services.

          (G) State Fish and Wildlife Director.

          (H) State Forester.

          (I) State Geologist.

          (J) Director of Human Services.

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

          (L) Director of the Department of State Lands.

          (M) State Librarian.

          (N) Administrator of Oregon Liquor Control Commission.

          (O) Superintendent of State Police.

          (P) Director of the Public Employees Retirement System.

          (Q) Director of Department of Revenue.

          (R) Director of Transportation.

          (S) Public Utility Commissioner.

          (T) Director of Veterans’ Affairs.

          (U) Executive Director of Oregon Government Ethics Commission.

          (V) Director of the State Department of Energy.

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

          (X) Director of the Oregon Health Authority.

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

          (i) Every elected city or county official.

          (j) Every member of a city or county planning, zoning or development commission.

          (k) The chief executive officer of a city or county who performs the duties of manager or principal administrator of the city or county.

          (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) Board of Geologic and Mineral Industries.

          (B) Oregon Economic and Community Development Commission.

          (C) State Board of Education.

          (D) Environmental Quality Commission.

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

          (F) State Board of Forestry.

          (G) Oregon Government Ethics Commission.

          (H) Oregon Health Policy [Commission] Board.

          (I) State Board of Higher Education.

          (J) Oregon Investment Council.

          (K) Land Conservation and Development Commission.

          (L) Oregon Liquor Control Commission.

          (M) Oregon Short Term Fund Board.

          (N) State Marine Board.

          (O) Mass transit district boards.

          (P) Energy Facility Siting Council.

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

          (R) Employment Relations Board.

          (S) Public Employees Retirement Board.

          (T) Oregon Racing Commission.

          (U) Oregon Transportation Commission.

          (V) Wage and Hour Commission.

          (W) Water Resources Commission.

          (X) Workers’ Compensation Board.

          (Y) Oregon Facilities Authority.

          (Z) Oregon State Lottery Commission.

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

          (BB) Columbia River Gorge Commission.

          (CC) Oregon Health and Science University Board of Directors.

          (q) The following officers of the State Treasurer:

          (A) Chief Deputy State Treasurer.

          (B) Chief of staff for the office of the State Treasurer.

          (C) Director of the Investment Division.

          (r) Every member of the board of commissioners of a port governed by ORS 777.005 to 777.725 or 777.915 to 777.953.

          (s) Every member of the board of directors of an authority created under ORS 441.525 to 441.595.

          (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 Oregon Government Ethics 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 deadline for the primary election, each candidate for 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 deadline for the general election, each candidate for public office described in subsection (1) of this section who was not a candidate in the preceding primary election, or who was nominated for public office described in subsection (1) of this section at the preceding primary election by write-in votes, shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090.

          (5) Subsections (1) to (4) of this section apply only to persons who are incumbent, elected or appointed public officials as of April 15 and to persons who are candidates for public office on April 15. Subsections (1) to (4) of this section also apply to persons who do not become candidates until 30 days after the filing deadline for the statewide general election.

          (6) If a statement required to be filed under this section has not been received by the commission within five days after the date the statement is due, the commission shall notify the public official or candidate and give the public official or candidate not less than 15 days to comply with the requirements of this section. If the public official or candidate fails to comply by the date set by the commission, the commission may impose a civil penalty as provided in ORS 244.350.

 

          SECTION 193. ORS 247.570 is amended to read:

          247.570. (1) Not later than five business days after receiving a certificate of death under ORS 432.307, a county registrar designated under ORS 432.035 shall furnish to the county clerk of that county the name, age, date of birth and residence address of the person for whom the registrar has received the certificate of death. If the person was registered to vote in the county, the county clerk immediately shall cancel the registration of the person.

          (2) Not later than five business days after receiving information from the county registrar under subsection (1) of this section, the county clerk shall furnish the information to the Secretary of State. The Secretary of State shall furnish a copy of the appropriate names received under this subsection to each county clerk. Each county clerk immediately shall cancel the registrations of those persons.

          (3) The [Department of Human Services] Oregon Health Authority, during the last week of each month, shall furnish to the Secretary of State a list of the name, age, date of birth, county of residence and residence address of each resident of this state who has died during the preceding month and for whom a certificate of death was not filed with a county registrar. The Secretary of State shall furnish a copy of the appropriate names to each county clerk. Each county clerk immediately shall cancel registrations of those persons.

 

          SECTION 194. ORS 276.180 is amended to read:

          276.180. When vacated and no longer required for institution uses, all or any portion of the buildings, grounds and facilities presently operated and controlled by the Department of Human Services, the Department of Corrections, the Oregon Health Authority or the State Board of Education, are transferred to the Oregon Department of Administrative Services when so ordered by the Oregon Department of Administrative Services. Title shall vest automatically in the Oregon Department of Administrative Services in the name of the State of Oregon and the department shall operate and maintain all facilities described in this section.

 

          SECTION 195. ORS 276.610 is amended to read:

          276.610. There is established a fund in the State Treasury to be known as the State Building Fund which shall be used for the construction, alteration and repair of buildings required for use of institutions and activities under the jurisdiction of the Department of Corrections, the Department of Human Services, the Oregon Health Authority or the State Board of Education and the State Board of Higher Education and for the furnishing and equipping of buildings so constructed, altered or repaired.

 

          SECTION 196. ORS 276.612 is amended to read:

          276.612. The Department of Corrections, the Department of Human Services, the Oregon Health Authority and the State Board of Education each shall determine the buildings to be constructed, altered, repaired, furnished and equipped for the use of institutions and activities under their respective jurisdictions. The State Board of Higher Education shall determine the buildings to be constructed, altered, repaired, furnished and equipped for the use of institutions or activities under its jurisdiction.

 

          SECTION 197. ORS 278.315 is amended to read:

          278.315. (1) The [Department of Human Services] Oregon Health Authority may provide tort liability coverage through the Oregon Department of Administrative Services to any county or private community care provider that has contracted with the [Department of Human Services] authority to provide supervision, care, treatment or training of persons under the jurisdiction of the Psychiatric Security Review Board. Counties or private community care providers, and the officers and employees of those counties and providers acting within the scope of their employment, may be covered to the extent that any tort claim arises out of the provision of supervision, care, treatment or training of persons pursuant to the terms of the contract. Tort liability coverage under this section must be in writing, and may be part of the contract between the [Department of Human Services] authority and the county or private community care provider. The coverage provided under this section shall be self-insurance by the State of Oregon to the limits contained in ORS 30.260 to 30.300.

          (2) Counties or private community care providers that have contracted with the [Department of Human Services] authority to provide supervision, care, treatment or training of persons under the jurisdiction of the Psychiatric Security Review Board, and the officers and employees of those counties and providers, are not agents of the [department] authority for the purposes of ORS 30.260 to 30.300.

 

          SECTION 198. ORS 279A.050 is amended to read:

          279A.050. (1)(a) Except as otherwise provided in the Public Contracting Code, a contracting agency shall exercise all procurement authority in accordance with the provisions of the Public Contracting Code.

          (b) When a contracting agency has authority under this section to carry out functions described in this section, or has authority to make procurements under a provision of law other than the Public Contracting Code, the contracting agency is not required to exercise that authority in accordance with the provisions of the code if, under ORS 279A.025, the code does not apply to the contract or contracting authority.

          (2) Except as otherwise provided in the Public Contracting Code, for state agencies the Director of the Oregon Department of Administrative Services has all the authority to carry out the provisions of the Public Contracting Code.

          (3) Except as otherwise provided in the Public Contracting Code, the Director of Transportation has all the authority to:

          (a) Procure or supervise the procurement of all services and personal services to construct, acquire, plan, design, maintain and operate passenger terminal facilities and motor vehicle parking facilities in connection with any public transportation system in accordance with ORS 184.689 (5);

          (b) Procure or supervise the procurement of all goods, services, public improvements and personal services relating to the operation, maintenance or construction of highways, bridges and other transportation facilities that are subject to the authority of the Department of Transportation; and

          (c) Establish standards for, prescribe forms for and conduct the prequalification of prospective bidders on public improvement contracts related to the operation, maintenance or construction of highways, bridges and other transportation facilities that are subject to the authority of the Department of Transportation.

          (4) Except as otherwise provided in the Public Contracting Code, the Secretary of State has all the authority to procure or supervise the procurement of goods, services and personal services related to programs under the authority of the Secretary of State.

          (5) Except as otherwise provided in the Public Contracting Code, the State Treasurer has all the authority to procure or supervise the procurement of goods, services and personal services related to programs under the authority of the State Treasurer.

          (6) The state agencies listed in this subsection have all the authority to do the following in accordance with the Public Contracting Code:

          (a) The Department of Human Services to procure or supervise the procurement of goods, services and personal services for the construction, demolition, exchange, maintenance, operation and equipping of housing[:] for the purpose of providing care to individuals with mental retardation or other developmental disabilities, subject to applicable provisions of ORS 427.335;

          (b) The Oregon Health Authority to procure or supervise the procurement of goods, services and personal services for the construction, demolition, exchange, maintenance, operation and equipping of housing for persons with chronic mental illness, subject to applicable provisions of ORS 426.504;

          [(A) For persons with chronic mental illness, subject to applicable provisions of ORS 426.504; and]

          [(B) For the purpose of providing care to individuals with mental retardation or other developmental disabilities, subject to applicable provisions of ORS 427.335;]

          [(b)] (c) The State Department of Fish and Wildlife to procure or supervise the procurement of construction materials, equipment, supplies, services and personal services for public improvements, public works or ordinary construction described in ORS 279C.320 that is subject to the authority of the State Department of Fish and Wildlife;

          [(c)] (d) The State Parks and Recreation Department to procure or supervise the procurement of all goods, services, public improvements and personal services relating to state parks;

          [(d)] (e) The Oregon Department of Aviation to procure or supervise the procurement of construction materials, equipment, supplies, services and personal services for public improvements, public works or ordinary construction described in ORS 279C.320 that is subject to the authority of the Oregon Department of Aviation;

          [(e)] (f) The Economic and Community Development Department to procure or supervise the procurement of all goods, services, personal services and public improvements related to its foreign trade offices operating outside the state;

          [(f)] (g) The Housing and Community Services Department to procure or supervise the procurement of goods, services and personal services as provided in ORS 279A.025 (2)(o);

          [(g)] (h) The Department of Corrections to procure or supervise the procurement of construction materials, equipment, supplies, services and personal services for public improvements, public works or ordinary construction described in ORS 279C.320 that is subject to the authority of the Department of Corrections;

          [(h)] (i) The Department of Corrections, subject to any applicable provisions of ORS 279A.120, 279A.125, 279A.145 and 283.110 to 283.395, to procure or supervise the procurement of goods for its institutions;

          [(i)] (j) The Department of Veterans’ Affairs to procure or supervise the procurement of real estate broker and principal real estate broker services related to programs under the department’s authority;

          [(j)] (k) The Oregon Military Department to procure or supervise the procurement of construction materials, equipment, supplies, services and personal services for public improvements, public works or ordinary construction described in ORS 279C.320 that is subject to the authority of the Oregon Military Department;

          [(k)] (L) The Department of Education, subject to any applicable provisions of ORS 329.075, 329.085 and 329.485 and the federal No Child Left Behind Act of 2001 (P.L. 107-110, 115 Stat. 1425), to procure or supervise the procurement of goods, services, personal services and information technology relating to student assessment; and

          [(L)] (m) Any state agency to conduct a procurement when the agency is specifically authorized by any provision of law other than the Public Contracting Code to enter into a contract.

          (7) Notwithstanding this section and ORS 279A.140 (1), the Director of the Oregon Department of Administrative Services has exclusive authority to procure or supervise the procurement of all state agency information technology contracts and all price agreements on behalf of the state agencies identified in subsection (6)(a) to [(j)] (k) of this section under which more than one state agency may order goods, services or personal services unless the director delegates this authority. This subsection does not apply to contracts under which the contractor delivers to the state agency information technology products or services incidental to the performance of personal services contracts described in ORS chapter 279C or construction contracts described in ORS chapter 279C. A state agency identified in subsection (3) or (6)(a) to [(j)] (k) of this section may not establish a price agreement or enter into a contract for goods, services or personal services without the approval of the director if the director has established a price agreement for the goods, services or personal services.

 

          SECTION 199. ORS 285A.213 is amended to read:

          285A.213. (1) There is established in the State Treasury, separate and distinct from the General Fund, the Safe Drinking Water Revolving Loan Fund. All moneys in the Safe Drinking Water Revolving Loan Fund are continuously appropriated to the Economic and Community Development Department.

          (2) The Economic and Community Development Department shall administer the Safe Drinking Water Revolving Loan Fund in accordance with a memorandum of understanding between the department and the [Department of Human Services] Oregon Health Authority.

          (3) The Safe Drinking Water Revolving Loan Fund shall consist of:

          (a) Moneys transferred to the fund by the [Department of Human Services] authority for purposes authorized by the memorandum of understanding between the [Department of Human Services and the Economic and Community Development Department] authority and the department.

          (b) Moneys transferred to the fund by the federal government, other state agencies or local governments.

          (c) Moneys transferred to the fund by the Legislative Assembly or the Oregon Economic and Community Development Commission.

          (d) Proceeds from the sale of revenue bonds.

          (e) Repayment of financial assistance provided with moneys from the fund.

          (f) Interest and other earnings on moneys in the fund.

          (4) Moneys in the Safe Drinking Water Revolving Loan Fund shall be used to provide financial or other assistance to publicly owned and privately owned water systems under the Safe Drinking Water Act Amendments of 1996, P.L. 104-182, and rules of the [Economic and Community Development Department. As used in this subsection, “assistance” includes direct purchase by the Economic and Community Development Department of goods or services related to a water system project to the extent permitted by the memorandum of understanding between the Economic and Community Development Department and the Department of Human Services, the Safe Drinking Water Act Amendments of 1996, and as authorized by rules of the Economic and Community Development Department] department. As used in this subsection, “assistance” includes direct purchase by the department of goods or services related to a water system project to the extent permitted by the memorandum of understanding between the department and the authority, the Safe Drinking Water Act Amendments of 1996, and as authorized by rules of the department.

          (5) The owner of a water system may borrow from the Safe Drinking Water Revolving Loan Fund by entering into a loan agreement with the [Economic and Community Development Department] department. The owner of a municipally owned water system may enter into a loan agreement with the department notwithstanding any restriction on indebtedness in the charter or bylaws of the municipality or any other provision of law. Moneys owed to the department by the borrower under a loan agreement may be paid from:

          (a) Revenue from any water system project of the borrower, including special assessment revenue;

          (b) Amounts withheld under subsection (6) of this section;

          (c) The general fund of the borrower;

          (d) Any combination of sources listed in paragraphs (a) to (c) of this subsection; or

          (e) Any other source.

          (6) If a borrower fails to comply with a loan agreement entered into under subsection (5) of this section, the [Economic and Community Development Department] department may seek appropriate legal remedies to secure any repayment due the Safe Drinking Water Revolving Loan Fund. If a borrower defaults on repayment due the fund, the State of Oregon may withhold any amounts otherwise due to the borrower. Any amounts withheld under this subsection shall be credited toward repayment of the borrower’s indebtedness to the fund.

 

          SECTION 200. ORS 285B.563 is amended to read:

          285B.563. (1) There is established in the State Treasury, separate and distinct from the General Fund, the Water Fund. All moneys in the Water Fund are continuously appropriated to the Economic and Community Development Department for the purposes described in ORS 285B.560 to 285B.599, including the direct project management costs.

          (2)(a) Moneys in the Water Fund may be obligated to water projects.

          (b) Moneys shall be used primarily to make loans to municipalities. The department may make a loan only if:

          (A) The municipality applying for the loan certifies to the department that adequate funds will be available to repay the loan; and

          (B) The department determines that the amount of the loan applied for is based on a reasonable and prudent expectation of the municipality’s ability to repay the loan.

          (c) The department may award a grant only if a loan is not feasible due to:

          (A) Financial hardship to the municipality, as determined by the department, based on consideration of anticipated water service charges or anticipated waste water service charges, the per capita income of the municipality and any other factors as the department by rule may establish; and

          (B) Special circumstances of the water project.

          (d) The department may determine the amount of grant or loan funding on a case-by-case basis.

          (3) The moneys in the fund may also be used to assist the department in selling revenue bonds on behalf of municipalities in order to carry out the purposes of ORS 285B.560 to 285B.599.

          (4) Moneys in the Water Fund may be invested as provided by ORS 293.701 to 293.820. The earnings from the investments and other program income shall be credited to the Water Fund.

          (5) The Water Fund shall consist of:

          (a) Moneys appropriated to the fund by the Legislative Assembly.

          (b) Moneys transferred to the fund by the Economic and Community Development Department from the Special Public Works Fund created by ORS 285B.455.

          (c) Moneys transferred to the Water Fund by the Water Resources Commission from the Water Development Fund created by Article XI-I(1) of the Oregon Constitution.

          (d) Moneys from any federal, state or other grants.

          (e) Proceeds of revenue bonds issued under ORS 285B.575.

          (f) Earnings on the Water Fund.

          (6) The department shall administer the fund.

          (7) The department shall adopt rules and policies for the administration of the fund. The department shall coordinate its rulemaking regarding safe drinking water projects with the Water Resources Department and the [Department of Human Services] Oregon Health Authority. The rules adopted under this subsection for safe drinking water projects shall:

          (a) Require the installation of meters on all new active service connections from any distribution lines funded with moneys from the fund or from the proceeds of revenue bonds issued under ORS 285B.572 to 285B.578.

          (b) Require a plan, to be adopted by a municipality receiving financial assistance from the fund, for installation of meters on all service connections throughout the drinking water system not later than two years after the completion of a safe drinking water project.

          (8)(a) The Economic and Community Development Department shall manage the Water Fund and any expenditures from accounts in the fund and transfers between accounts so that the fund provides a continuing source of financing consistent with ORS 285B.413.

          (b) If necessary to ensure repayment of bonds issued under ORS 285B.560 to 285B.599, the department may reduce the value of the fund when the department:

          (A) Finds that without a reduction in fund value, bonds secured by the fund are likely to be in default; and

          (B) Imposes a moratorium on grants until the requirements of paragraph (a) of this subsection are satisfied.

          (9)(a) The department may charge administrative costs to the fund, but not to moneys segregated in the account created by subsection (11) of this section, to pay for administrative costs incurred by the department.

          (b) To the extent permitted by federal law, administrative costs of the department may be paid from bond proceeds.

          (10) The department may establish other accounts within the Water Fund for the payment of water projects costs, reserves, debt service payments, credit enhancements, costs of issuing revenue bonds, administrative costs and operating expenses or any other purpose necessary to carry out ORS 285B.560 to 285B.599.

          (11) There is created within the Water Fund a separate and distinct account for the proceeds from the sale of water development general obligation bonds issued for safe drinking water projects and credited to the special account under this section. Any investment earnings thereon shall be segregated in and continuously appropriated to a special, separately accounted for subaccount of this account. Moneys credited to this account shall be maintained separate and distinct from moneys credited to subaccounts created under subsection (10) of this section. Notwithstanding ORS 285B.566 or subsection (4) of this section, all repayments of moneys loaned from the account created by this subsection, including interest on the moneys, shall be credited to the Water Development Administration and Bond Sinking Fund created by ORS 541.830.

          (12) As used in this section, “administrative costs” include the department’s direct and indirect costs for investigating and processing an application, developing a contract, monitoring the use of funds by a municipality, investigating and resolving a budget discrepancy, closing a project and providing financial and other assistance to a municipality.

          NOTE: Section 201 was deleted by amendment. Subsequent sections were not renumbered.

 

          SECTION 202. ORS 291.371 is amended to read:

          291.371. (1) As used in this section, “legislative review agency” means the Joint Committee on Ways and Means during the period when the Legislative Assembly is in session and the Emergency Board during the interim period between sessions.

          (2) Prior to making any changes in a salary plan, the Oregon Department of Administrative Services shall submit the proposed changes to the legislative review agency.

          (3)(a) The Oregon Department of Administrative Services may approve the reallocation of positions or the establishment of new positions not specifically provided for in the budget of the affected agency if it finds that the proposed change:

          (A) Can be financed by the agency within the limits of its biennial budget and legislatively approved program;

          (B) Will not produce future budgetary increases; and

          (C) Conforms to legislatively approved salary policies.

          (b) Proposed changes not meeting the requirements of paragraph (a) of this subsection shall be presented to the legislative review agency.

          (4) Agencies within the Department of Human Services, the Oregon Health Authority and the Department of Corrections shall report on a biennial basis to the legislative review agency. Each report shall include the number of vacant budgeted positions, including all job categories and classifications, within the agency. The legislative review agency shall order the reporting agency to show cause why the budgeted positions have not been filled and shall assess fully the impact the vacancies have on:

          (a) The agency’s delivery of services, accounting for any seasonal fluctuation in the need for those services;

          (b) The agency’s budget due to increased use of overtime;

          (c) The agency’s use of temporary employees; and

          (d) Employee workload.

          (5) It is declared to be the policy of this state that the total personal services, budget and full-time equivalent positions approved for any state agency shall be the maximum amount necessary to meet the requirements of the agency for the biennium. Notwithstanding ORS 291.232 to 291.260, the Governor and the Oregon Department of Administrative Services may transfer vacant position authority among and within state agencies to achieve maximum utilization of authorized positions within agencies.

 

          SECTION 203. ORS 314.840 is amended to read:

          314.840. (1) The Department of Revenue may:

          (a) Furnish any taxpayer, representative authorized to represent the taxpayer under ORS 305.230 or person designated by the taxpayer under ORS 305.193, upon request of the taxpayer, representative or designee, with a copy of the taxpayer’s income tax return filed with the department for any year, or with a copy of any report filed by the taxpayer in connection with the return, or with any other information the department considers necessary.

          (b) Publish lists of taxpayers who are entitled to unclaimed tax refunds.

          (c) Publish statistics so classified as to prevent the identification of income or any particulars contained in any report or return.

          (d) Disclose a taxpayer’s name, address, telephone number, refund amount, amount due, Social Security number, employer identification number or other taxpayer identification number to the extent necessary in connection with collection activities or the processing and mailing of correspondence or of forms for any report, return or claim required in the administration of ORS 310.630 to 310.706, any local tax under ORS 305.620, or any law imposing a tax upon or measured by net income.

          (2) The department also may disclose and give access to information described in ORS 314.835 to:

          (a) The Governor of the State of Oregon or the authorized representative of the Governor:

          (A) With respect to an individual who is designated as being under consideration for appointment or reappointment to an office or for employment in the office of the Governor. The information disclosed shall be confined to whether the individual:

          (i) Has filed returns with respect to the taxes imposed by ORS chapter 316 for those of not more than the three immediately preceding years for which the individual was required to file an Oregon individual income tax return.

          (ii) Has failed to pay any tax within 30 days from the date of mailing of a deficiency notice or otherwise respond to a deficiency notice within 30 days of its mailing.

          (iii) Has been assessed any penalty under the Oregon personal income tax laws and the nature of the penalty.

          (iv) Has been or is under investigation for possible criminal offenses under the Oregon personal income tax laws. Information disclosed pursuant to this paragraph shall be used only for the purpose of making the appointment, reappointment or decision to employ or not to employ the individual in the office of the Governor.

          (B) For use by an officer or employee of the Oregon Department of Administrative Services duly authorized or employed to prepare revenue estimates, or a person contracting with the Oregon Department of Administrative Services to prepare revenue estimates, in the preparation of revenue estimates required for the Governor’s budget under ORS 291.201 to 291.226, or required for submission to the Emergency Board, or if the Legislative Assembly is in session, to the Joint Committee on Ways and Means, and to the Legislative Revenue Officer under ORS 291.342, 291.348 and 291.445. The Department of Revenue shall disclose and give access to the information described in ORS 314.835 for the purposes of this subparagraph only if:

          (i) The request for information is made in writing, specifies the purposes for which the request is made and is signed by an authorized representative of the Oregon Department of Administrative Services. The form for request for information shall be prescribed by the Oregon Department of Administrative Services and approved by the Director of the Department of Revenue.

          (ii) The officer, employee or person receiving the information does not remove from the premises of the Department of Revenue any materials that would reveal the identity of a personal or corporate taxpayer.

          (b) The Commissioner of Internal Revenue or authorized representative, for tax administration and compliance purposes only.

          (c) For tax administration and compliance purposes, the proper officer or authorized representative of any of the following entities that has or is governed by a provision of law that meets the requirements of any applicable provision of the Internal Revenue Code as to confidentiality:

          (A) A state;

          (B) A city, county or other political subdivision of a state;

          (C) The District of Columbia; or

          (D) An association established exclusively to provide services to federal, state or local taxing authorities.

          (d) The Multistate Tax Commission or its authorized representatives, for tax administration and compliance purposes only. The Multistate Tax Commission may make the information available to the Commissioner of Internal Revenue or the proper officer or authorized representative of any governmental entity described in and meeting the qualifications of paragraph (c) of this subsection.

          (e) The Attorney General, assistants and employees in the Department of Justice, or other legal representative of the State of Oregon, to the extent the department deems disclosure or access necessary for the performance of the duties of advising or representing the department pursuant to ORS 180.010 to 180.240 and the tax laws of this state.

          (f) Employees of the State of Oregon, other than of the Department of Revenue or Department of Justice, to the extent the department deems disclosure or access necessary for such employees to perform their duties under contracts or agreements between the department and any other department, agency or subdivision of the State of Oregon, in the department’s administration of the tax laws.

          (g) Other persons, partnerships, corporations and other legal entities, and their employees, to the extent the department deems disclosure or access necessary for the performance of such others’ duties under contracts or agreements between the department and such legal entities, in the department’s administration of the tax laws.

          (h) The Legislative Revenue Officer or authorized representatives upon compliance with ORS 173.850. Such officer or representative shall not remove from the premises of the department any materials that would reveal the identity of any taxpayer or any other person.

          (i) The Department of Consumer and Business Services, to the extent the department requires such information to determine whether it is appropriate to adjust those workers’ compensation benefits the amount of which is based pursuant to ORS chapter 656 on the amount of wages or earned income received by an individual.

          (j) Any agency of the State of Oregon, or any person, or any officer or employee of such agency or person to whom disclosure or access is given by state law and not otherwise referred to in this section, including but not limited to the Secretary of State as Auditor of Public Accounts under section 2, Article VI of the Oregon Constitution; the Department of Human Services pursuant to ORS 314.860 and 412.094; the Division of Child Support of the Department of Justice and district attorney regarding cases for which they are providing support enforcement services under ORS 25.080; the State Board of Tax Practitioners, pursuant to ORS 673.710; and the Oregon Board of Accountancy, pursuant to ORS 673.415.

          (k) The Director of the Department of Consumer and Business Services to determine that a person complies with ORS chapter 656 and the Director of the Employment Department to determine that a person complies with ORS chapter 657, the following employer information:

          (A) Identification numbers.

          (B) Names and addresses.

          (C) Inception date as employer.

          (D) Nature of business.

          (E) Entity changes.

          (F) Date of last payroll.

          (L) The Director of Human Services to determine that a person has the ability to pay for care that includes services provided by the [state institutions as described in ORS 179.321] Eastern Oregon Training Center or the Department of Human Services [or] to collect any unpaid cost of care as provided by ORS chapter 179.

          (m) The Director of the Oregon Health Authority to determine that a person has the ability to pay for care that includes services provided by the Blue Mountain Recovery Center or the Oregon State Hospital or the Oregon Health Authority to collect any unpaid cost of care as provided by ORS chapter 179.

          [(m)] (n) Employees of the Employment Department to the extent the Department of Revenue deems disclosure or access to information on a combined tax report filed under ORS 316.168 is necessary to performance of their duties in administering the tax imposed by ORS chapter 657.

          [(n)] (o) The State Fire Marshal to assist the State Fire Marshal in carrying out duties, functions and powers under ORS 453.307 to 453.414, the employer or agent name, address, telephone number and standard industrial classification, if available.

          [(o)] (p) Employees of the Department of State Lands for the purposes of identifying, locating and publishing lists of taxpayers entitled to unclaimed refunds as required by the provisions of chapter 694, Oregon Laws 1993. The information shall be limited to the taxpayer’s name, address and the refund amount.

          [(p)] (q) In addition to the disclosure allowed under ORS 305.225, state or local law enforcement agencies to assist in the investigation or prosecution of the following criminal activities:

          (A) Mail theft of a check, in which case the information that may be disclosed shall be limited to the stolen document, the name, address and taxpayer identification number of the payee, the amount of the check and the date printed on the check.

          (B) The counterfeiting, forging or altering of a check submitted by a taxpayer to the Department of Revenue or issued by the Department of Revenue to a taxpayer, in which case the information that may be disclosed shall be limited to the counterfeit, forged or altered document, the name, address and taxpayer identification number of the payee, the amount of the check, the date printed on the check and the altered name and address.

          [(q)] (r) The United States Postal Inspection Service or a federal law enforcement agency, including but not limited to the United States Department of Justice, to assist in the investigation of the following criminal activities:

          (A) Mail theft of a check, in which case the information that may be disclosed shall be limited to the stolen document, the name, address and taxpayer identification number of the payee, the amount of the check and the date printed on the check.

          (B) The counterfeiting, forging or altering of a check submitted by a taxpayer to the Department of Revenue or issued by the Department of Revenue to a taxpayer, in which case the information that may be disclosed shall be limited to the counterfeit, forged or altered document, the name, address and taxpayer identification number of the payee, the amount of the check, the date printed on the check and the altered name and address.

          [(r)] (s) The United States Financial Management Service, for purposes of facilitating the reciprocal offsets described in ORS 305.612.

          [(s)] (t) A municipal corporation of this state for purposes of assisting the municipal corporation in the administration of a tax of the municipal corporation that is imposed on or measured by income, wages or net earnings from self-employment. Any disclosure under this paragraph may be made only pursuant to a written agreement between the Department of Revenue and the municipal corporation that ensures the confidentiality of the information disclosed.

          (3)(a) Each officer or employee of the department and each person described or referred to in subsection (2)(a), (e) to (k) or [(m) to (p)] (n) to (q) of this section to whom disclosure or access to the tax information is given under subsection (2) of this section or any other provision of state law, prior to beginning employment or the performance of duties involving such disclosure or access, shall be advised in writing of the provisions of ORS 314.835 and 314.991, relating to penalties for the violation of ORS 314.835, and shall as a condition of employment or performance of duties execute a certificate for the department, in a form prescribed by the department, stating in substance that the person has read these provisions of law, that the person has had them explained and that the person is aware of the penalties for the violation of ORS 314.835.

          (b) The disclosure authorized in subsection [(2)(q)] (2)(r) of this section shall be made only after a written agreement has been entered into between the Department of Revenue and the person described in subsection [(2)(q)] (2)(r) of this section to whom disclosure or access to the tax information is given, providing that:

          (A) Any information described in ORS 314.835 that is received by the person pursuant to subsection [(2)(q)] (2)(r) of this section is confidential information that may not be disclosed, except to the extent necessary to investigate or prosecute the criminal activities described in subsection [(2)(q)] (2)(r) of this section;

          (B) The information shall be protected as confidential under applicable federal and state laws; and

          (C) The United States Postal Inspection Service or the federal law enforcement agency shall give notice to the Department of Revenue of any request received under the federal Freedom of Information Act, 5 U.S.C. 552, or other federal law relating to the disclosure of information.

          (4) The Department of Revenue may recover the costs of furnishing the information described in subsection [(2)(k), (L) and (n) to (p)] (2)(k) to (m) and (o) to (q) of this section from the respective agencies.

 

          SECTION 204. ORS 315.604 is amended to read:

          315.604. (1) As used in this section:

          (a) “Bone marrow donor expense” means the sum of the amounts paid or incurred during the tax year by an employer for the following:

          (A) Development of an employee bone marrow donation program.

          (B) Employee education related to bone marrow donation, including but not limited to the need for donors and an explanation of the procedures used to determine tissue type and donate bone marrow.

          (C) Payments to a health care provider for determining the tissue type of an employee who agrees to register or registers as a bone marrow donor.

          (D) Wages paid to an employee for time reasonably related to tissue typing and bone marrow donation.

          (E) Transportation of an employee to the site of a donation or any other service which is determined by the [Department of Human Services] Oregon Health Authority by rule as essential for a successful bone marrow donation.

          (b) “Employee” means an individual who:

          (A) Is regularly employed by the taxpayer for more than 20 hours per week;

          (B) Who is not a temporary or seasonal employee; and

          (C) Whose wages are subject to withholding under ORS 316.162 to 316.221.

          (c) “Wages” has the meaning given the term for purposes of ORS 316.162 to 316.221.

          (2) A business tax credit against the taxes otherwise due under ORS chapter 316 for the tax year is allowed to a resident employer, or if the employer is a corporation, to the employer against the taxes otherwise due under ORS chapter 317. The amount of the credit is equal to 25 percent of the bone marrow donor expense paid or incurred during the tax year by an employer to provide a program for employees who are potential bone marrow donors or who actually become bone marrow donors.

          (3)(a) Except as provided under paragraph (b) of this subsection, the allowance of a credit under this section shall not affect the computation of taxable income for purposes of ORS chapter 316 or 317.

          (b) If in determining the amount of the credit for any tax year an amount allowed as a deduction under section 170 of the Internal Revenue Code is included in bone marrow donation expense, the amount allowed as a deduction shall be added to federal taxable income.

          (4) The credit allowed under this section shall be allowed to a nonresident employer in the same manner as the credit is allowed to a resident employer.

          (5) Any tax credit otherwise allowable under this section which 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. Any credit remaining unused in such second succeeding tax year may be carried forward and used in the third succeeding tax year. Any credit remaining unused in such third succeeding tax year may be carried forward and used in the fourth succeeding tax year. Any credit remaining unused in such fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be used in any tax year thereafter.

 

          SECTION 205. ORS 315.613 is amended to read:

          315.613. (1) A resident or nonresident individual certified as eligible under ORS 442.563, licensed under ORS chapter 677, who is engaged in the practice of medicine, and who has a rural practice that amounts to 60 percent of the individual’s practice, shall be allowed an annual credit against taxes otherwise due under this chapter in the sum of $5,000 during the time in which the individual retains such practice and membership if the individual is actively practicing in and is a member of the medical staff of one of the following hospitals:

          (a) A type A hospital designated as such by the Office of Rural Health;

          (b) A type B hospital designated as such by the Office of Rural Health if the hospital is:

          (A) Not within the boundaries of a metropolitan statistical area;

          (B) Located 30 or more highway miles from the closest hospital within the major population center in a metropolitan statistical area; or

          (C) Located in a county with a population of less than 75,000;

          (c) A type C rural hospital, if the Office of Rural Health makes the findings required by ORS 315.619; or

          (d) A rural critical access hospital.

          (2) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117. If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

          (3) For purposes of this section, an “individual’s practice” shall be determined on the basis of actual time spent in practice each week in hours or days, whichever is considered by the Office of Rural Health to be more appropriate. In the case of a shareholder of a corporation or a member of a partnership, only the time of the individual shareholder or partner shall be considered and the full amount of the credit shall be allowed to each shareholder or partner who qualifies in an individual capacity.

          (4) As used in this section:

          (a) “Type A hospital,” “type B hospital” and “type C hospital” have the meaning for those terms provided in ORS 442.470.

          (b) “Rural critical access hospital” means a facility that meets the criteria set forth in 42 U.S.C. 1395i-4 (c)(2)(B) and that has been designated a critical access hospital by the Office of Rural Health and the [Department of Human Services] Oregon Health Authority.

 

          SECTION 206. ORS 320.308 is amended to read:

          320.308. The following are exempt from the state transient lodging tax:

          (1) A dwelling unit in a hospital, health care facility, long term care facility or any other residential facility that is licensed, registered or certified by the Department of Human Services or the Oregon Health Authority;

          (2) A dwelling unit in a facility providing treatment for drug or alcohol abuse or providing mental health treatment;

          (3) A dwelling unit that is used by members of the general public for temporary human occupancy for fewer than 30 days per year;

          (4) A dwelling unit, the consideration for which is funded through a contract with a government agency and the purpose of which is to provide emergency or temporary shelter;

          (5) A dwelling unit at a nonprofit youth or church camp, nonprofit conference center or other nonprofit facility; or

          (6) A dwelling unit that is leased or otherwise occupied by the same person for a consecutive period of 30 days or more during the year. The requirements of this subsection are satisfied even if the physical dwelling unit changes during the consecutive period, if:

          (a) All dwelling units occupied are within the same facility; and

          (b) The person paying consideration for the transient lodging is the same person throughout the consecutive period.

 

          SECTION 206a. ORS 323.455 is amended to read:

          323.455. (1) All moneys received by the Department of Revenue from the tax imposed by ORS 323.030 (1) shall be paid over to the State Treasurer to be held in a suspense account established under ORS 293.445. After the payment of refunds, 89.65 percent shall be credited to the General Fund, 3.45 percent is appropriated to the cities of this state, 3.45 percent is appropriated to the counties of this state and 3.45 percent is continuously appropriated to the Department of Transportation for the purpose of financing and improving transportation services for elderly individuals and individuals with disabilities as provided in ORS 391.800 to 391.830.

          (2) The moneys so appropriated to cities and counties shall be paid on a monthly basis within 35 days after the end of the month for which a distribution is made. Each city shall receive such share of the money appropriated to all cities as its population, as determined under ORS 190.510 to 190.590 last preceding such apportionment, bears to the total population of the cities of the state, and each county shall receive such share of the money as its population, determined under ORS 190.510 to 190.590 last preceding such apportionment, bears to the total population of the state.

          (3) The moneys appropriated to the Department of Transportation under subsection (1) of this section shall be distributed and transferred to the Elderly and Disabled Special Transportation Fund established by ORS 391.800 at the same time as the cigarette tax moneys are distributed to cities and counties under this section.

          (4) Of the moneys credited to the General Fund under this section 51.92 percent shall be dedicated to funding the maintenance and expansion of the number of persons eligible for the medical assistance program under [the Oregon Health Plan] ORS chapter 414, or to funding the maintenance of the benefits available under the [Oregon Health Plan] program, or both, and 5.77 percent shall be credited to the Tobacco Use Reduction Account established under ORS 431.832.

 

          SECTION 206b. ORS 323.625 is amended to read:

          323.625. All moneys received by the Department of Revenue under ORS 323.500 to 323.645 shall be deposited in the State Treasury and credited to a suspense account established under ORS 293.445. After payment of refunds or credits arising from erroneous overpayments, the balance of the money shall be credited to the General Fund. Of the amount credited to the General Fund under this section 41.54 percent shall be dedicated to funding the maintenance and expansion of the number of persons eligible for the medical assistance program under [the Oregon Health Plan] ORS chapter 414, or to funding the maintenance of the benefits available under the [Oregon Health Plan] program, or both, and 4.62 percent shall be credited to the Tobacco Use Reduction Account established under ORS 431.832.

 

          SECTION 207. ORS 332.111 is amended to read:

          332.111. A district school board in a school district may enter into agreements to provide auxiliary services and facilities to students, including but not limited to forms of residential care and medical and dental services. Any facility used for residential purposes under this section must meet the applicable standards of the [Department of Human Services] Oregon Health Authority and the State Fire Marshal.

 

          SECTION 208. ORS 336.222 is amended to read:

          336.222. In accordance with rules adopted by the State Board of Education in consultation with the [Department of Human Services] Oregon Health Authority, each district school board shall adopt a comprehensive alcohol and drug abuse policy and implementation plan, including but not limited to:

          (1) Alcohol and drug abuse prevention curriculum and public information programs addressing students, parents, teachers, administrators and school board members;

          (2) The nature and extent of the district’s expectation of intervention with students who appear to have drug or alcohol abuse problems;

          (3) The extent of the district’s alcohol and other drug prevention and intervention programs; and

          (4) The district’s strategy to gain access to federal funds available for drug abuse prevention programs.

 

          SECTION 209. ORS 336.227 is amended to read:

          336.227. To assist school districts to formulate the programs described in ORS 336.222 (1), the [Department of Human Services] Oregon Health Authority shall:

          (1) Devise a public information program directed toward students, parents, teachers, administrators and school board members at the school district level; and

          (2) Contact advocacy associations of the target groups described in subsection (1) of this section to facilitate outreach programs and disseminate alcohol and drug abuse prevention information.

 

          SECTION 210. ORS 336.235 is amended to read:

          336.235. In order to carry out the duties described in ORS 336.222 and 336.227, the State Board of Education, in consultation with the [Department of Human Services] Oregon Health Authority, shall adopt by rule, as a minimum, descriptions of the content of what shall be included in the policy and plan described in ORS 336.222 and 336.227.

 

          SECTION 211. ORS 336.245 is amended to read:

          336.245. The Department of Education, the Oregon University System and the [Department of Human Services] Oregon Health Authority shall report to regular sessions of the Legislative Assembly and to the Governor on the progress and effectiveness of the policies and plans described in ORS 336.222, 336.227 and 352.008 by submitting a copy of the report to the offices of the President of the Senate and the Speaker of the House of Representatives and to the Governor.

 

          SECTION 212. ORS 339.333 is amended to read:

          339.333. (1) The Center for School Safety shall be governed by a board of directors. The board of directors shall consist of:

          (a) The Superintendent of Public Instruction or a designee of the superintendent;

          (b) The Director of the Oregon Youth Authority or a designee of the director;

          (c) The Attorney General or a designee of the Attorney General;

          (d) The Superintendent of State Police or a designee of the superintendent;

          (e) The Director of Human Services or a designee of the director;

          (f) The Director of the Oregon Health Authority or a designee of the director;

          [(f)] (g) Nine members appointed by the Governor, as follows:

          (A) One member representing the Oregon School Boards Association;

          (B) One member representing the Confederation of Oregon School Administrators;

          (C) One member representing the Oregon Education Association;

          (D) One member representing the Oregon School Employees Association;

          (E) One member representing the Oregon State Sheriffs’ Association;

          (F) One member representing the Oregon Association Chiefs of Police;

          (G) One member representing the Oregon District Attorneys Association;

          (H) One member representing the National Resource Center for Safe Schools on the Northwest Regional Educational Laboratory; and

          (I) One member representing the Oregon School Safety Officers Association; and

          [(g)] (h) Other members that the board may appoint.

          (2) When making appointments to the board of directors, the Governor shall solicit recommendations from professional organizations that represent school employees, school district boards, school administrators and other education providers.

          (3) The term of office of each board member appointed by the Governor is two years, but a member serves at the pleasure of the Governor. Before the expiration of the term of a board member, the Governor shall appoint a successor. A board member is eligible for reappointment but shall not serve for more than two consecutive terms. If there is a vacancy for any cause, the Governor shall make an appointment to become immediately effective for the unexpired term.

          (4) A member of the board of directors is entitled to compensation and expenses as provided in ORS 292.495.

          (5) The board of directors shall meet a minimum of four times per year.

          (6) The board of directors shall annually elect a chairperson and vice chairperson from the membership. The board of directors may form committees as needed.

 

          SECTION 213. 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:

          (A) Not reached 21 years of age or whose 21st birthday occurs during the current school year;

          (B) Met all state requirements and local requirements for attendance, competence and units of credit for high school; and

          (C) Received one of the following:

          (i) A high school diploma issued by a school district.

          (ii) An adult high school diploma issued by an authorized community college.

          (iii) A modified high school diploma.

          (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;

          (C) Has not received a General Educational Development (GED) certificate; and

          (D) Has withdrawn from school.

          (c) “School dropout” does not include a student described by at least one of the following:

          (A) A student who 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) A student who is deceased.

          (C) A student who is participating in home instruction paid for by the district.

          (D) A student who is being taught by a private teacher, parent or legal guardian pursuant to ORS 339.030 (1)(d) or (e).

          (E) A student who is participating in a Department of Education approved public or private education program, an alternative education program as defined in ORS 336.615 or a hospital education program, or is residing in a Department of Human Services or an Oregon Health Authority facility.

          (F) A student who is temporarily residing in a shelter care program certified by the Oregon Youth Authority [or the Department of Human Services] or in a juvenile detention facility.

          (G) A student who is enrolled in a foreign exchange program.

          (H) A student who is temporarily absent from school because of suspension, a family emergency, or severe health or medical problems that prohibit the student from attending school.

          (I) A student who 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 education programs under ORS 336.615 to 336.675 and the standards for excused absences for purposes of ORS 339.065 for family emergencies and health and medical problems.

 

          SECTION 214. ORS 339.869 is amended to read:

          339.869. (1) The State Board of Education, in consultation with the [Department of Human Services] Oregon Health Authority, the Oregon State Board of Nursing and the State Board of Pharmacy, shall adopt rules for the administration of prescription and nonprescription medication to students by trained school personnel and for student self-medication. The rules shall include age appropriate guidelines and training requirements for school personnel.

          (2) School district boards shall adopt policies and procedures that provide for the administration of prescription and nonprescription medication to students by trained school personnel and for student self-medication. Such policies and procedures shall be consistent with the rules adopted by the State Board of Education under subsection (1) of this section. A school district board shall not require school personnel who have not received appropriate training to administer medication.

 

          SECTION 215. ORS 343.221 is amended to read:

          343.221. In order to provide special education for children with disabilities, the district school board of any school district in which there are school-age children who require special education:

          (1) Shall submit an annual projected activities and cost statement to the Superintendent of Public Instruction for a program of special education for the district’s children with disabilities. The proposed district program shall include provisions for providing special education and related services and be designed to meet the unique needs of all resident children with disabilities.

          (2) Shall provide special education for such children consistent with the projected activities and cost statement.

          (3) May, when the board considers a contract to be economically feasible and in the interests of the learning opportunities of eligible children, contract for special education for such children with another school district if the district school boards jointly agree to provide special education.

          (4) May, when the board considers a contract to be economically feasible and in the interests of the learning opportunities of eligible children, contract for special education for such children with an education service district if:

          (a) The contract is consistent with the local service plan of the education service district developed pursuant to ORS 334.175 and the school districts within the education service district approve the contract by a resolution adopted in the manner provided in ORS 334.175.

          (b) The school district contracts with an education service district pursuant to ORS 334.185.

          (5) May contract with private agencies or organizations approved by the State Board of Education for special education.

          (6) May use the services of public agencies, including community mental health programs and community developmental disabilities programs, which provide diagnostic, evaluation and other related services for children.

          (7) May contract for the provision of related services by a person in private practice if that person is registered, certified or licensed by the State of Oregon as qualified to provide a particular related service that requires registration, certification or licensing by the state.

 

          SECTION 216. ORS 343.499 is amended to read:

          343.499. (1)(a) There is created the State Interagency Coordinating Council.

          (b) The Governor shall appoint members of the council from a list of eligible appointees provided by the council and agencies described in subsection (2) of this section and shall ensure that the membership of the council reasonably represents the population of this state.

          (c) The Governor shall designate one member of the council to serve as the chairperson, or if the Governor chooses not to name a chairperson, the council may elect one of its members to serve as chairperson. However, any member of the council who represents the Department of Education may not serve as the chairperson of the council.

          (2) The membership of the council shall be composed as follows:

          (a) At least 20 percent of the council members shall be parents, including minority parents, of preschool children with disabilities or of children with disabilities who are 12 years of age or younger who have knowledge of or experience with programs for infants and toddlers with disabilities. At least one council member shall be a parent of an infant or toddler with a disability or of a child with a disability who is six years of age or younger.

          (b) At least 20 percent of the council members shall be public or private providers of early intervention and early childhood special education services.

          (c) At least one council member shall be a member of the Legislative Assembly.

          (d) At least one council member shall be involved in personnel preparation.

          (e) At least one council member shall represent the Department of Human Services.

          (f) At least one council member shall represent the federal Head Start program.

          (g) At least one council member shall represent the Child Care Division of the Employment Department.

          (h) At least one council member shall represent the Department of Education.

          (i) At least one council member shall represent the Department of Consumer and Business Services.

          (j) At least one council member shall represent the State Commission on Children and Families.

          (k) At least one council member shall represent the Child Development and Rehabilitation Center of the Oregon Health and Science University.

          (L) At least one council member shall be a member of the State Advisory Council for Special Education created under ORS 343.287.

          (m) At least one council member shall be a representative designated by the state coordinator for homeless education.

          (n) At least one council member shall represent the state child welfare agency responsible for foster care.

          (o) At least one council member shall represent the state agency responsible for children’s mental health.

          (p) At least one council member shall be from the [agency responsible for the state Medicaid program] Oregon Health Authority.

          (q) The council may include other members appointed by the Governor, including but not limited to one representative from the United States Bureau of Indian Affairs or, where there is no school operated or funded by the bureau, from the Indian Health Service or the tribe or tribal council.

          (3) An individual appointed to represent a state agency that is involved in the provision of or payment for services for preschool children with disabilities under subsection (2)(e) and (h) to (k) of this section shall have sufficient authority to engage in making and implementing policy on behalf of the agency.

          (4) The State Interagency Coordinating Council shall:

          (a) Advise the Superintendent of Public Instruction and the State Board of Education on unmet needs in the early childhood special education and early intervention programs for preschool children with disabilities, review and comment publicly on any rules proposed by the State Board of Education and the distribution of funds for the programs and assist the state in developing and reporting data on and evaluations of the programs and services.

          (b) Advise and assist the represented public agencies regarding the services and programs they provide to preschool children with disabilities and their families, including public comments on any proposed rules affecting the target population and the distribution of funds for such services, and assist each agency in developing services that reflect the overall goals for the target population as adopted by the council.

          (c) Advise and assist the Department of Education and other state agencies in the development and implementation of the policies that constitute the statewide system.

          (d) Assist all appropriate public agencies in achieving the full participation, coordination and cooperation for implementation of a statewide system that includes but is not limited to:

          (A) Seeking information from service providers, service coordinators, parents and others about any federal, state or local policies that impede timely service delivery; and

          (B) Taking steps to ensure that any policy problems identified under subparagraph (A) of this paragraph are resolved.

          (e) Advise and assist the Department of Education in identifying the sources of fiscal and other support for preschool services, assigning financial responsibility to the appropriate agencies and ensuring that the provisions of interagency agreements under ORS 343.511 are carried out.

          (f) Review and comment on each agency’s services and policies regarding services for preschool children with disabilities, or preschool children who are at risk of developing disabling conditions, and their families to the maximum extent possible to assure cost-effective and efficient use of resources.

          (g) To the extent appropriate, assist the Department of Education in the resolution of disputes.

          (h) Advise and assist the Department of Education in the preparation of applications and amendments thereto.

          (i) Advise and assist the Department of Education regarding the transition of preschool children with disabilities.

          (j) Prepare and submit an annual report to the Governor and to the United States Secretary of Education on the status of early intervention programs operated within this state.

          (5) The council may advise appropriate agencies about integration of services for preschool children with disabilities and at-risk preschool children.

          (6) Terms of office for council members shall be three years, except that:

          (a) The representative from the State Advisory Council for Special Education shall serve a one-year term; and

          (b) The representatives from other state agencies and the representative from the Legislative Assembly shall serve indefinite terms.

          (7) Subject to approval by the Governor, the council may use federal funds appropriated for this purpose and available to the council to:

          (a) Conduct hearings and forums;

          (b) Reimburse nonagency council members pursuant to ORS 292.495 for attending council meetings, for performing council duties, and for necessary expenses, including child care for parent members;

          (c) Pay compensation to a council member if the member is not employed or if the member must forfeit wages from other employment when performing official council business;

          (d) Hire staff; and

          (e) Obtain the services of such professional, technical and clerical personnel as may be necessary to carry out its functions.

          (8) Except as provided in subsection (7) of this section, council members shall serve without compensation.

          (9) The Department of Education shall provide clerical and administrative support, including staff, to the council to carry out the performance of the council’s function as described in this section.

          (10) The council shall meet at least quarterly. The meetings shall be announced publicly and, to the extent appropriate, be open and accessible to the general public.

          (11) No member of the council shall cast a vote on any matter that would provide direct financial benefit to that member or otherwise give the appearance of a conflict of interest under state law.

 

          SECTION 217. ORS 343.961 is amended to read:

          343.961. (1) The Department of Education shall be responsible for payment of the cost of the education in programs with which the [Department of Human Services] Oregon Health Authority or Oregon Youth Authority contracts for long-term care or treatment. Programs eligible for such education shall be in accordance with criteria adopted by rule by the State Board of Education.

          (2) The Department of Education shall be responsible for payment of the costs of such education by contract with the school district, excluding transportation, care, treatment and medical expenses. The resident district shall provide transportation to pupils enrolled in programs under ORS 430.715 who live at home but require day treatment. The payments may be made to the school district or, at the discretion of the school district, to the district providing the education, as set forth in subsection (3) of this section, from the funds appropriated for the purpose.

          (3) The school district in which the agency is located is responsible for providing the education directly or through an adjacent school district or through the education service district in which the program is located or one contiguous thereto. The instruction may be given in facilities of such districts or in facilities provided by such agency.

          (4) The school district may request the Department of Education to combine several private agency school programs into one contract with a school district, an adjacent school district or an education service district.

          (5) The [Department of Human