OAR 589-002-0600: Access by Unserved Areas to Community College Services; and Procedures for Contracted Out-of-District Areas

(1) For the purposes of this rule: (a) "Nondistrict area" is defined as any geographic area of the state not within a community college district or community college service district; (b) "Nondistrict student tuition" means tuition paid by residents of the nondistrict area; (c) "Other nondistrict resources" means gifts, contributions, or grants from individuals, groups, organizations, businesses or industries. It may include financial support from school districts, education service districts, municipalities, counties or another public agency or private organization. (2) Nothing in this rule is intended to refer to programs provided through contracts between community colleges and state correctional facilities. Those contracts are addressed in OAR 589-002-0700. (3) Nothing in this rule is intended to refer to programs provided specifically for apprentices, including apprenticeship services as authorized in ORS 660.157(3). Those programs are addressed in division 7, chapter 589, of the Oregon Administrative Rules. (4) The Office shall determine that sufficient interest exists in a nondistrict area for the formation of a local advisory committee to analyze and advocate community college services when it receives a petition signed by a minimum of 100 persons, or by five percent of the electors registered in each county or part of a county within the designated service area, whichever is less. The Office may ask the county clerk to verify valid petition signatures: (a) The Office shall furnish the petition form and provide advice to the chief petitioner; (b) In the event that more than one person seeks chief petitioner status, the Office shall select the party that, in its judgment, can best represent the diverse interests within the nondistrict area. (5) Upon receipt of the petition, the Office and the chief petitioner shall jointly apply to the county governing body for the appointment of a local advisory committee. The application shall include the names of at least ten nominees agreed to by the Office and the chief petitioner along with brief statements as to the reasons they seek appointment. (6) Upon application, the governing body of the county shall appoint a local advisory committee and shall insure that the committee is broadly representative of the nondistrict area. (7) The advisory committee shall: (a) Examine the educational needs of the residents; (b) Identify financial and human resources necessary to meet the educational needs; (c) Identify entities willing to contract with the community college provider; (d) Promote the community college services desired; (e) Periodically advise and consult with the designated staff of the contracting community college and the Office regarding services requested and provided; and (f) Submit biennial evaluation reports to the county governing board, the Office, and the contracting community college. The Office may, at its discretion, require more frequent evaluation reports. (8) Community college districts and community college service districts may submit proposals to the Office, to become service providers to a nondistrict area: (a) The proposal shall address information sent by the Office to the colleges describing the boundaries of the nondistrict, the population base, and the services requested; (b) The college district shall define the elements of its proposed contract including orientation, inservice, materials, recommended tuition and fees, registration and reporting procedures, transcription, advising, timelines, supervision, and budget; (c) The Office shall select that college that, in its judgment, can best deliver the services requested: (A) The Office shall make its judgment after considering geographic factors, prior service history, and local advisory committee preference; (B) The community college district or community college service district selected to be the contractor shall enter into an agreement with the contracting entity; (C) The agreement is subject to the approval of the Commission or its designee. (9) The contract between the community college and the local contracting entity must include an annual budget setting forth both revenue and expenditures for services provided to the nondistrict area. The budget shall be based on the following conditions: (a) The budget must be wholly supported by state funds, nondistrict student tuition, and other nondistrict resources; (b) While the budget may contain some in-kind contribution from the nondistrict area, a cash contribution, exclusive of tuition, is required. (10) State reimbursement of costs incurred in providing services subject to the contract will be made based on the formula described in OAR 589-002-0100. Contracts shall not imply any requirement on the part of the state for reimbursement beyond the amounts appropriated for such purposes or beyond the biennial period covered by any such appropriation. (11) Nondistrict areas operating under contract to a community college district will be eligible for federal Adult Basic Education funds based on the distribution method described in the State Plan for Adult Education and adopted by the Commission. (12) The cost of education (tuition and fees) to residents of the nondistrict shall be sufficiently low to enable students of low and middle income to attend. (13) The local nondistrict financial effort shall be in cash: (a) The contracting entities may exercise the option of increasing local effort in order to reduce tuition costs to students; (b) The minimum cash contribution that will be required in the budget shall be determined in the following manner: (A) For the initial contract year, not less than ten percent of the budgeted expenditures must be supported by a cash contribution; (B) For the second contract year not less than 15 percent of the budgeted expenditures must be supported by a cash contribution; (C) For the third contract year, and all subsequent years, not less than 20 percent of the budgeted expenditures must be supported by a cash contribution. (c) Upon request from the college providing the contracted services, the Director may recommend to the Commission a waiver or renegotiation of all or a portion of the matching requirement; (d) A nondistrict area that contracts for not more than 12 FTE annually shall be subject to a separate cash contribution standard: (A) Such areas may enter into contracts that provide for no cash contribution for the first three years of service; (B) For the fourth, and all subsequent years, the cash contribution shall be ten percent of the budgeted expenditures. (e) Cash may be from any source except that which is prohibited by rule or regulation. (14) Contracts are subject to the review and approval of the Office: (a) Contracts may be for one or two years and are renewable. Two-year contracts are subject to annual budget review and possible adjustment by the Office. The Office can choose to entertain bids from other potential contractors in the course of this review; (b) Contracts will be submitted to the Office by July 1 of the contract year. The Department will determine that the contracting entity has met the cash requirement, that state-approved courses are offered, and that the district providing services provides adequate supervision of the contract; (c) The Office will evaluate contracted out-of-district services biennially and submit a report to the Commission by May of even-numbered years. The evaluation will include number of individuals served, types of instructional services offered, extent to which the interest and needs of each area have been met, financial effort of each area, and projected service in the next biennium. (15) The community college districts are responsible for developing the form of the contractual agreements and the method for recording them.