71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 696
House Bill 2443
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Legislative Counsel
Committee for Speaker's Action Network)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Directs education service district to create homework hotline
for use by school districts if telecommunications provider agrees
to participate. Adjusts State School Fund distribution to school
districts based on use of homework hotline.
Establishes income and corporate excise tax credits for costs
associated with homework hotlines. Applies to contributions made
in tax years beginning on or after January 1, 2002.
A BILL FOR AN ACT
Relating to homework hotlines; creating new provisions; and
amending ORS 314.752, 318.031 and 327.013.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) As used in this section, 'homework hotline
' means a telephone information system that provides a way for
parents, teachers and students to access daily homework
assignments for clarification or in the event of an absence from
class by a student.
(2) Each education service district shall contact at least one
telecommunications provider about establishing a homework hotline
for use by component school districts. If a telecommunications
provider agrees to participate, the education service district
shall create a homework hotline in partnership with the
telecommunications provider. The homework hotline shall provide
teachers with a systematic way to encourage the continuance of
learning outside regular school hours.
(3) Each component school district board within an education
service district that has created a homework hotline shall adopt
a policy to encourage teachers to use the homework hotline. + }
SECTION 2. ORS 327.013 is amended to read:
327.013. The State School Fund distributions shall be computed
as follows:
(1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw.
(2) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum available for distribution of money.
(3) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor.
(4) Statewide Target per ADMw Grant = $4,500.
(5) Teacher Experience Factor = $25 X {District average teacher
experience - statewide average teacher experience}. ' Average
teacher experience' means the average, in years, of teaching
experience of certified teachers as reported to the Department of
Education.
(6) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater.
(7)(a) Weighted average daily membership or ADMw = average
daily membership + an additional amount computed as follows:
(A) 1.0 for each student in average daily membership eligible
for special education as a child with disabilities under ORS
343.035, applicable to not to exceed 11 percent of the district's
ADM without review and approval of the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities as defined in ORS 169.005 or
adult regional correctional facilities as defined in ORS 169.620
shall not be included in the calculation of the 11 percent.
(B) 0.5 for each student in average daily membership eligible
for and enrolled in an English as a Second Language program under
ORS 336.079.
(C) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
(D) -0.1 for each student in average daily membership enrolled
in an elementary district operating kindergarten through grade 6
or kindergarten through grade 8 or in an area of a unified school
district where the district is only responsible for educating
students in kindergarten through grade 8.
(E) 0.25 times the sum of the following:
(i) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the federal Department of Education,
as adjusted by the school district's proportion of students in
the county receiving free or reduced price lunches under the
United States Department of Agriculture's current Income
Eligibility Guidelines if the number is higher than the number
determined from census data and only if the school district had
an average daily membership of 2,500 or less for the 1995-1996
school year, and as further adjusted by the number of students in
average daily membership in June of the year of distribution
divided by number of students in average daily membership in the
district, or its predecessors, in June 1990;
(ii) The number of children in foster homes in the district as
determined by the report of the Department of Human Services to
the federal Department of Education, 'Annual Statistical Report
on Children in Foster Homes and Children in Families Receiving
AFDC Payments in Excess of the Poverty Income Level,' or its
successor, for October 31 of the year prior to the year of
distribution; and
(iii) The number of children in the district in
state-recognized facilities for neglected and delinquent
children, based on information from the Department of Human
Services for October 31 of the year prior to the year of
distribution.
(F)(i) An additional amount as determined by ORS 327.077 (1997
Edition) shall be added to the ADMw for each remote small school
in the district.
(ii) An additional amount as determined by section 23, chapter
1066, Oregon Laws 1999, for each small high school in the
district that is equal to the small high school additional
weighting amount.
{ + (G) + } { + 0.1 for each student in average daily
membership in a school district where:
(i) The teachers have been trained to use a homework hotline,
as defined in section 1 of this 2001 Act; and
(ii) Ninety percent or more of the teachers employed by the
school district used the homework hotline during the prior
year. + }
{ - (G) - } { + (H) + } All numbers of children used for
the computation in this section must reflect any district
consolidations that have occurred since the numbers were
compiled.
(b) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of
students described in paragraph (a)(E) and (F) of this subsection
shall not exceed 2.0.
(8) Transportation Grant = 70 percent of Approved
Transportation Costs.
(9) Local Revenues are the total of the following:
(a) The amount of revenue offset against local property taxes
as determined by the Department of Revenue under ORS 311.175
(3)(a)(A);
(b) The amount of property taxes actually received by the
district including penalties and interest on taxes;
(c) The amount of revenue received by the district from the
Common School Fund under ORS 327.403 to 327.415;
(d) The amount of revenue received by the district from the
county school fund;
(e) The amount of revenue received by the district from the 25
percent of federal forest reserve revenues required to be
distributed to schools by ORS 294.060 (1);
(f) The amount of revenue received by the district from state
managed forestlands under ORS 530.115 (1)(b) and (c);
(g) The amount of revenue received under ORS 334.400 by a
school district in an education service district that provides
equalization under ORS 334.400;
(h) Moneys received in lieu of property taxes;
(i) Federal funds received without specific application by the
school district and which are not deemed under federal law to be
nonsupplantable; and
(j) Any positive amount obtained by subtracting the operating
property taxes actually imposed by the district, based on the
rate certified pursuant to ORS 310.060, from the amount that
would have been imposed by the district if the district had
certified the maximum rate of operating property taxes allowed by
law.
(10) Notwithstanding subsection (9) of this section, Local
Revenues do not include:
(a) The amount of revenue actually received by the district,
including penalties and interest on taxes, that is used for
payment of bonds issued to finance or refinance an unfunded
obligation for prior service costs under a contract of
integration pursuant to ORS 238.685 (2)(a); and
(b) If a school district imposes local option taxes pursuant to
ORS 280.040 to 280.145, an amount equal to the lesser of:
(A) The amount of revenue actually received by the district
from local option taxes imposed pursuant to ORS 280.040 to
280.145;
(B) Ten percent of the combined total for the school district
of the general purpose grant, the transportation grant and the
facility grant of the district; or
(C) $500 per district extended ADMw.
(11)(a) Facility Grant = 8 percent of total construction costs
of new school buildings.
(b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
(c) As used in this subsection:
(A) 'New school building' includes new school buildings, adding
structures onto existing school buildings and adding
premanufactured structures to a school district if those
buildings or structures are to be used for instructing students.
(B) 'Construction costs' does not include costs for land
acquisition.
SECTION 3. ORS 327.013, as amended by section 30, chapter 1066,
Oregon Laws 1999, is amended to read:
327.013. The State School Fund distributions shall be computed
as follows:
(1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw.
(2) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum available for distribution of money.
(3) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor.
(4) Statewide Target per ADMw Grant = $4,500.
(5) Teacher Experience Factor = $25 X {District average teacher
experience - statewide average teacher experience}. ' Average
teacher experience' means the average, in years, of teaching
experience of certified teachers as reported to the Department of
Education.
(6) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater.
(7)(a) Weighted average daily membership or ADMw = average
daily membership + an additional amount computed as follows:
(A) 1.0 for each student in average daily membership eligible
for special education as a child with disabilities under ORS
343.035, applicable to not to exceed 11 percent of the district's
ADM without review and approval of the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities as defined in ORS 169.005 or
adult regional correctional facilities as defined in ORS 169.620
shall not be included in the calculation of the 11 percent.
(B) 0.5 for each student in average daily membership eligible
for and enrolled in an English as a Second Language program under
ORS 336.079.
(C) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
(D) -0.1 for each student in average daily membership enrolled
in an elementary district operating kindergarten through grade 6
or kindergarten through grade 8 or in an area of a unified school
district where the district is only responsible for educating
students in kindergarten through grade 8.
(E) 0.25 times the sum of the following:
(i) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the federal Department of Education,
as adjusted by the school district's proportion of students in
the county receiving free or reduced price lunches under the
United States Department of Agriculture's current Income
Eligibility Guidelines if the number is higher than the number
determined from census data and only if the school district had
an average daily membership of 2,500 or less for the 1995-1996
school year, and as further adjusted by the number of students in
average daily membership in June of the year of distribution
divided by number of students in average daily membership in the
district, or its predecessors, in June 1990;
(ii) The number of children in foster homes in the district as
determined by the report of the Department of Human Services to
the federal Department of Education, 'Annual Statistical Report
on Children in Foster Homes and Children in Families Receiving
AFDC Payments in Excess of the Poverty Income Level,' or its
successor, for October 31 of the year prior to the year of
distribution; and
(iii) The number of children in the district in
state-recognized facilities for neglected and delinquent
children, based on information from the Department of Human
Services for October 31 of the year prior to the year of
distribution.
(F) An additional amount as determined by ORS 327.077 shall be
added to the ADMw for each remote small elementary school and for
each small high school in the district.
{ + (G) 0.1 for each student in average daily membership in a
school district where:
(i) The teachers have been trained to use a homework hotline,
as defined in section 1 of this 2001 Act; and
(ii) Ninety percent or more of the teachers employed by the
school district used the homework hotline during the prior
year. + }
{ - (G) - } { + (H) + } All numbers of children used for
the computation in this section must reflect any district
consolidations that have occurred since the numbers were
compiled.
(b) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of
students described in paragraph (a)(E) and (F) of this subsection
shall not exceed 2.0.
(8) Transportation Grant = 70 percent of Approved
Transportation Costs.
(9) Local Revenues are the total of the following:
(a) The amount of revenue offset against local property taxes
as determined by the Department of Revenue under ORS 311.175
(3)(a)(A);
(b) The amount of property taxes actually received by the
district including penalties and interest on taxes;
(c) The amount of revenue received by the district from the
Common School Fund under ORS 327.403 to 327.415;
(d) The amount of revenue received by the district from the
county school fund;
(e) The amount of revenue received by the district from the 25
percent of federal forest reserve revenues required to be
distributed to schools by ORS 294.060 (1);
(f) The amount of revenue received by the district from state
managed forestlands under ORS 530.115 (1)(b) and (c);
(g) The amount of revenue received under ORS 334.400 by a
school district in an education service district that provides
equalization under ORS 334.400;
(h) Moneys received in lieu of property taxes;
(i) Federal funds received without specific application by the
school district and which are not deemed under federal law to be
nonsupplantable; and
(j) Any positive amount obtained by subtracting the operating
property taxes actually imposed by the district, based on the
rate certified pursuant to ORS 310.060, from the amount that
would have been imposed by the district if the district had
certified the maximum rate of operating property taxes allowed by
law.
(10) Notwithstanding subsection (9) of this section, Local
Revenues do not include:
(a) The amount of revenue actually received by the district,
including penalties and interest on taxes, that is used for
payment of bonds issued to finance or refinance an unfunded
obligation for prior service costs under a contract of
integration pursuant to ORS 238.685 (2)(a); and
(b) If a school district imposes local option taxes pursuant to
ORS 280.040 to 280.145, an amount equal to the lesser of:
(A) The amount of revenue actually received by the district
from local option taxes imposed pursuant to ORS 280.040 to
280.145;
(B) Ten percent of the combined total for the school district
of the general purpose grant, the transportation grant and the
facility grant of the district; or
(C) $500 per district extended ADMw.
(11)(a) Facility Grant = 8 percent of total construction costs
of new school buildings.
(b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
(c) As used in this subsection:
(A) 'New school building' includes new school buildings, adding
structures onto existing school buildings and adding
premanufactured structures to a school district if those
buildings or structures are to be used for instructing students.
(B) 'Construction costs' does not include costs for land
acquisition.
SECTION 4. { + The amendments to ORS 327.013 by sections 2 and
3 of this 2001 Act become operative on July 1, 2002. + }
SECTION 5. { + Except as otherwise specifically provided, the
amendments to ORS 327.013 by sections 2 and 3 of this 2001 Act
affect State School Fund distributions commencing with the
2002-2003 distribution. + }
SECTION 6. { + Section 7 of this 2001 Act is added to and made
a part of ORS chapter 315. + }
SECTION 7. { + (1) A credit against the taxes otherwise due
under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318 is allowed for costs paid or incurred
during the tax year for donating equipment or labor to an
education service district or a school district for a homework
hotline, as defined in section 1 of this 2001 Act.
(2) Subject to subsection (3) of this section, the amount of
the credit is equal to 50 percent of the costs described in
subsection (1) of this section.
(3) The amount of the credit shall not exceed the tax liability
of the taxpayer for the tax year for which the credit is claimed.
(4) In the case of personal income tax, the credit is allowed
to either a resident taxpayer or a nonresident taxpayer, without
proration.
(5) The Department of Revenue may adopt rules to carry out the
purposes of this section, including but not limited to rules
setting forth requirements for substantiation of claims for
credit. The requirement for substantiation may be waived
partially, conditionally or absolutely, as provided under ORS
315.063. + }
SECTION 8. { + Section 7 of this 2001 Act applies to
contributions made in tax years beginning on or after January 1,
2002. + }
SECTION 9. ORS 314.752 is amended to read:
314.752. (1) Except as provided in ORS 314.740 (5)(b), the tax
credits allowed or allowable to a C corporation for purposes of
ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS
chapter 316 shall be allowed or are allowable to the shareholders
of the S corporation.
(2) In determining the tax imposed under ORS chapter 316, as
provided under ORS 314.734, on income of the shareholder of an S
corporation, there shall be taken into account the shareholder's
pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or
item thereof), recapture or recovery shall be passed through to
shareholders in pro rata shares as determined in the manner
prescribed under section 1377(a) of the Internal Revenue Code.
(3) The character of any item included in a shareholder's pro
rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source
from which realized by the corporation, or incurred in the same
manner as incurred by the corporation.
(4) If the shareholder is a nonresident and there is a
requirement applicable for the business tax credit that in the
case of a nonresident that the credit be allowed in the
proportion provided in ORS 316.117, then that provision shall
apply to the nonresident shareholder.
(5) As used in this section, 'business tax credit' means a tax
credit granted to personal income taxpayers to encourage certain
investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or
public purposes that is listed under this subsection as a
business tax credit or is designated as a business tax credit by
law or by the Department of Revenue by rule and includes but is
not limited to the following credits: ORS 315.104 (forestation
and reforestation), ORS 315.134 (fish habitat improvement), ORS
315.138 (fish screening, by-pass devices, fishways), ORS 315.156
(crop gleaning), ORS 315.164 (farmworker housing), ORS 315.204
(dependent care assistance), ORS 315.208 (dependent care
facilities), ORS 315.234 (child development program
contributions), ORS 315.254 (youth apprenticeship sponsorship),
ORS 315.304 (pollution control facility), ORS 315.324 (plastics
recycling), ORS 315.354 and ORS 469.207 (energy conservation
facilities), ORS 315.504 (Oregon Capital Corporation), ORS
315.604 (bone marrow transplant expenses) { + , section 7 of this
2001 Act (homework hotline costs) + } and ORS 317.115 (fueling
stations necessary to operate an alternative fuel vehicle).
SECTION 10. ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly
that this chapter and the Corporation Excise Tax Law of 1929
shall be administered as uniformly as possible (allowance being
made for the difference in imposition of the taxes and the
operative date of this chapter), the provisions of ORS 305.140
and 305.150 and ORS chapter 314 and of the following sections of
ORS chapter 315 or 317, as amended on or before August 3, 1955,
and as they may thereafter be amended, are incorporated into this
chapter by this reference and made a part hereof: ORS 315.104,
315.134, 315.156, 315.204, 315.208, 315.234, 315.254, 315.304,
315.504 and 315.604 { + and section 7 of this 2001 Act + } (all
only to the extent applicable for a corporation) and ORS 317.010,
317.013, 317.018 to 317.022, 317.030, 317.035, 317.038, 317.080,
317.152 to 317.154, 317.259 to 317.303, 317.310 to 317.386,
317.476 to 317.485, 317.510 to 317.635 and 317.705 to 317.725 and
section 40, chapter 835, Oregon Laws 1997, and section 4, chapter
358, Oregon Laws 1999.
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