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 2203
 
                         Senate Bill 596
 
Sponsored by Senator STARR
 
 
                             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.
 
  Establishes process for school district to become public
charter school district. Requires approval of State Board of
Education. Exempts public charter school district from statutes
and rules that apply to other districts. Provides exceptions.
 
                        A BILL FOR AN ACT
Relating to education; creating new provisions; and amending ORS
  338.005, 338.015, 338.025, 338.035, 338.095, 338.105, 338.115
  and 338.135.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 338.005 is amended to read:
  338.005. As used in this chapter, unless the context requires
otherwise:
  (1) 'Applicant' means any person or group that develops and
submits a written proposal for a public charter school to a
sponsor.
  (2) 'Public charter school' means an elementary or secondary
school offering a comprehensive instructional program operating
under a written agreement entered into between a sponsor and an
applicant and operating pursuant to this chapter.
   { +  (3) 'Public charter school district' means a school
district offering a comprehensive instructional program operating
under a written agreement entered into between the State Board of
Education as sponsor and an applicant district and operating
pursuant to this chapter. + }
    { - (3) - }  { +  (4) + } 'Sponsor' means:
  (a) The board of the common school district or the union high
school district in which the public charter school is located
that has developed a written charter with an applicant to create
a public charter school.
  (b) The State Board of Education pursuant to ORS 338.075 { +
or section 8 of this 2001 Act + }.
  SECTION 2. ORS 338.015 is amended to read:
  338.015. It is the intent of this chapter that new types of
schools  { - , - }  called public charter schools  { - , - }
 { + and new types of school districts called public charter
school districts + } be created as   { - a - }  legitimate
 { - avenue - }   { + avenues + } for parents, educators and
community members to take responsible risks to create new,
innovative and more flexible ways of educating children within
the public school system. The Legislative Assembly seeks to
create an atmosphere in Oregon's public school system where
research and development of new learning opportunities are
actively pursued.  The provisions of this chapter should be
interpreted liberally to support the goals of this section and to
advance a renewed commitment by this state to the mission, goals
and diversity of public education. It is the intent that public
charter schools  { + and public charter school districts + } may
serve as models and catalysts for the improvement of other public
schools { + , public school districts + } and the public school
system. The goals of public charter schools { +  and public
charter school districts + } shall be to:
  (1) Increase student learning and achievement;
  (2) Increase choices of learning opportunities for students;
  (3) Better meet individual student academic needs and
interests;
  (4) Build stronger working relationships among educators,
parents and other community members;
  (5) Encourage the use of different and innovative learning
methods;
  (6) Provide opportunities in small learning environments for
flexibility and innovation, which may be applied, if proven
effective, to other public schools;
  (7) Create new professional opportunities for teachers;
  (8) Establish additional forms of accountability for schools;
and
  (9) Create innovative measurement tools.
  SECTION 3. ORS 338.025 is amended to read:
  338.025. (1) The State Board of Education may adopt any rules
necessary for the implementation of this chapter. The rules shall
follow the intent of this chapter.
  (2) Upon application by a public charter school { +  or a
public charter school district + }, the State Board of Education
may grant a waiver of any provision of this chapter if the waiver
promotes the development of programs by providers, enhances the
equitable access by underserved families to the public education
of their choice, extends the equitable access to public support
by all students or permits high quality programs of unusual cost.
The State Board of Education may not waive any appeal provision
in this chapter or any provision under ORS 338.115 (1)(a) to (n).
  SECTION 4. ORS 338.035 is amended to read:
  338.035. (1) A public charter school may be established:
  (a) As a new public school;
  (b) From an existing public school or a portion of the school;
or
  (c) From an existing alternative education program, as defined
in ORS 336.615.
  (2) Before a public charter school may operate as a public
charter school it must:
  (a) Be approved by a sponsor;
  (b) Be established as a nonprofit organization under the laws
of Oregon; and
  (c) Have applied to qualify as an exempt organization under
section 501(c)(3) of the Internal Revenue Code.
  (3) An applicant seeking to establish a public charter school
shall submit a proposal pursuant to ORS 338.045 to the school
district board of the school district within which the public
charter school will be located at least 120 days prior to the
date upon which the public charter school would begin operating.
However, it is recommended that an applicant consult with the
school district board prior to submitting a proposal.
  (4) An applicant seeking to establish a public charter school
shall provide to the State Board of Education a copy of any
proposal submitted to a school district board under ORS 338.045
and a copy of any subsequent approval by the school district
board.
 
  (5) { + (a) One or more, but not + } all schools in a school
district
  { - shall not - }   { + may + } become public charter schools.
 { +
  (b) + }   { - However - }  { +  Notwithstanding paragraph (a)
of this subsection + }, a school in a school district that is
composed of only one school may become a public charter school.
   { +  (c) Notwithstanding paragraph (a) of this subsection, an
entire school district may become a public charter school
district. + }
  (6)(a) A school district board or the State Board of Education
may not approve a public charter school proposal that authorizes
the conversion of any private school that is tuition based to a
public charter school.
  (b) Notwithstanding paragraph (a) of this subsection, a school
district board or the State Board of Education may authorize the
conversion of an existing alternative education program, as
defined in ORS 336.615, to a public charter school.
  (7) A school district board or the State Board of Education may
not approve a public charter school proposal that is affiliated
with a nonpublic sectarian school or a religious institution.
  SECTION 5.  { + Sections 6 to 8, 12 and 14 of this 2001 Act are
added to and made a part of ORS chapter 338. + }
  SECTION 6.  { + (1) A school district seeking to become a
public charter school district shall submit a written proposal to
the State Board of Education at least 120 days prior to the date
upon which the school district would begin operating as a public
charter school district.
  (2) The proposal shall include, but need not be limited to:
  (a) The name of the applicant school district;
  (b) A description of the philosophy and mission of the public
charter school district;
  (c) A description of the curriculum of the public charter
school district;
  (d) A description of the expected results of the curriculum and
the verified methods of measuring and reporting objective results
that will show the growth of knowledge of students attending the
public charter school district and allow comparisons with
nonchartered school districts;
  (e) The governance structure of the public charter school
district;
  (f) A description of any distinctive learning or teaching
techniques to be used in the public charter school district;
  (g) The statutes and rules that shall apply to the public
charter school district;
  (h) The standards for behavior and the procedures for the
discipline, suspension or expulsion of students;
  (i) The proposed school calendar for the public charter school
district, including the length of the school day and school year;
  (j) A description of the proposed staff members and required
qualifications of teachers at the public charter school district;
  (k) The date upon which the school district would begin
operating as a public charter school district;
  (L) Information on the manner in which community groups may be
involved in the planning and development process of the public
charter school district;
  (m) The term of the charter;
  (n) The plan for performance bonding or insuring the public
charter school district, including buildings and liabilities;
  (o) The manner in which the program review and fiscal audit
will be conducted;
  (p) The alternative arrangements for students who choose not to
attend school in the public charter school district and for
teachers and other school employees who choose not to participate
in the public charter school district; and
 
  (q) The relationship that will exist between the public charter
school district and its employees, including evidence that the
terms and conditions of employment have been addressed with
affected employees and their recognized representative, if any.
  (3) In addition to the requirements of subsection (2) of this
section, the State Board of Education may require any additional
information the board considers relevant to the formation or
operation of a public charter school district. + }
  SECTION 7.  { + (1) Within 60 days of receipt of a proposal
submitted under section 6 of this 2001 Act, the State Board of
Education shall hold a public hearing on the provisions of the
proposal.
  (2) The State Board of Education shall evaluate a proposal in
good faith using the following criteria:
  (a) The demonstrated, sustainable support for the public
charter school district by teachers, parents, students and other
community members, including comments received at the public
hearing held under subsection (1) of this section;
  (b) The capability of the public charter school district, in
terms of support and planning, to provide comprehensive
instructional programs to students pursuant to an approved
proposal;
  (c) The capability of the applicant, in terms of support and
planning, to specifically provide, pursuant to an approved
proposal, comprehensive instructional programs to students
identified by the applicant as academically low achieving;
  (d) The extent to which the proposal addresses the information
required in section 6 of this 2001 Act;
  (e) Whether the value of the public charter school district is
outweighed by any directly identifiable, significant and adverse
impact on the quality of the public education of students
residing in the proposed public charter school district; and
  (f) Whether there are alternative arrangements for students and
for teachers and other school employees who choose not to attend
schools within or who choose not to be employed by the public
charter school district.
  (3) The State Board of Education must approve a proposal or
state in writing the reasons for disapproving a proposal within
30 days after the public hearing held under subsection (1) of
this section.
  (4) Written notice of the State Board of Education's action
shall be sent to the school district. If the proposal is not
approved, the reasons for the denial and suggested remedial
measures, if any, shall be clearly stated in the notice sent by
the State Board of Education to the school district. If the
proposal is not approved, the school district may amend the
proposal to address objections and any suggested remedial
measures and resubmit the proposal to the State Board of
Education. The State Board of Education shall approve or
disapprove the resubmitted proposal within 20 days after
receiving it. If the proposal is not approved, the applicant may
appeal the decision of the State Board of Education pursuant to
subsection (5) of this section.
  (5) An applicant may seek judicial review of an order of the
State Board of Education pursuant to ORS 183.484. If the court
finds that the decision of the State Board of Education is not
supported by substantial evidence in the record, the court shall
enter a judgment directing the State Board of Education to
approve the creation of the public charter school district. + }
 { +
  (6) Individual elements in a public charter school district
proposal may be changed through the application and approval
process.
  (7) The State Board of Education shall not charge any fee to
school districts for the application process. + }
 
  SECTION 8.  { + (1) Upon approval of a proposal by the State
Board of Education under section 7 of this 2001 Act, the State
Board of Education shall become the sponsor of the public charter
school district. The sponsor and district shall develop a written
charter that contains the provisions of the proposal that have
been duly approved by the sponsor and school district board. The
sponsor and the district may agree to change elements of the
proposal prior to incorporating them into the charter or exclude
elements of the proposal from the charter. The charter, when duly
executed by the sponsor and the school district board, shall act
as the legal authorization for the establishment of the public
charter school district. The charter shall be legally binding on
both the sponsor and the school district board. The charter shall
be in effect for a period of not more than five years and may be
renewed upon the authorization of the sponsor.
  (2) The sponsor and the school district board may amend a
charter by joint agreement. + }
  SECTION 9. ORS 338.095 is amended to read:
  338.095. (1) A public charter school  { + or a public charter
school district + } shall report to the sponsor and the State
Board of Education at least annually on the performance of the
school  { + or school district + } and its students. A public
charter school  { + or public charter school district + } shall
disclose in its report information necessary to make a
determination of compliance with the requirements of this
chapter. The sponsor or the sponsor's designee at least annually
shall visit the public charter school site and review the public
charter school's compliance with the terms and provisions of the
charter.  { + The State Board of Education or its designee at
least annually shall visit each school in a public charter school
district and review the public charter school district's
compliance with the terms and provisions of the charter. + }
  (2) The public charter school  { + or public charter school
district + } shall have an annual audit of the accounts of the
public charter school  { + or public charter school district + }
prepared in accordance with the Municipal Audit Law, ORS 297.405
to 297.555 and 297.990. The annual audit shall be forwarded to
the sponsor, the State Board of Education and the Department of
Education.
  (3) The State Board of Education may require public charter
schools  { + and public charter school districts + } to file
reports with the Department of Education as necessary to enable
the department to gather information on public charter schools
 { + and public charter school districts + } for inclusion in the
Oregon Report Card issued pursuant to ORS 329.115.
  SECTION 10. ORS 338.105 is amended to read:
  338.105. (1) During the term of a charter, the sponsor may
terminate the charter on any of the following grounds:
  (a) Failure to meet the terms of an approved charter or this
chapter.
  (b) Failure to meet the requirements for student performance
stated in the charter.
  (c) Failure to correct a violation of a federal or state law
that is described in ORS 338.115.
  (d) Failure to maintain insurance as described in the charter.
  (e) Failure to maintain financial stability.
  (2) If a charter is terminated under subsection (1) of this
section, the sponsor shall notify the public charter school
governing body  { + or school district board of the public
charter school district + } at least 60 days prior to the
proposed effective date of the termination. The notice shall
state the grounds for the termination. The public charter school
governing body  { + or school district board of the public
charter school district + } may request a hearing by the sponsor.
 
 
  (3) A public charter school governing body  { + or school
district board of a public charter school district + } may appeal
any decision of a sponsor that is:
  (a) A school district board to the State Board of Education.
The State Board of Education shall adopt by rule procedures to
ensure a timely appeals process to prevent disruption of
students' education.
  (b) The State Board of Education to the circuit court pursuant
to ORS 183.484.
  (4)(a) Notwithstanding subsection (2) of this section, a
sponsor may terminate a charter immediately and close a public
charter school if the public charter school is endangering the
health or safety of the students enrolled in the public charter
school.
   { +  (b) Notwithstanding subsection (2) of this section, a
sponsor may terminate a charter immediately and close one or more
schools within a public charter school district if the public
charter school district is endangering the health or safety of
the students enrolled in the schools of the public charter school
district. + }
    { - (b) - }  { +  (c) + } The public charter school governing
body  { + or school district board of a public charter school
district + } may request a hearing from the sponsor on the
termination of the charter under this subsection. The sponsor
shall hold a hearing within 10 days after receiving the request.
    { - (c) - }   { + (d) + } The public charter school governing
body may appeal a decision of a sponsor under this subsection to
the State Board of Education. The State Board of Education shall
hold a hearing within 10 days after receiving the appeal request.
   { +  (e) The school district board of a public charter school
district may appeal a decision of the State Board of Education as
sponsor of the district to the circuit court pursuant to ORS
183.484. + }
    { - (d) - }  { +  (f) + } Throughout the appeals process, the
public charter school shall remain closed at the discretion of
the sponsor unless the State Board of Education orders the
sponsor to open the public charter school and not terminate the
charter.
   { +  (g) Throughout the appeals process, a closed school
within a public charter school district shall remain closed at
the discretion of the sponsor unless the circuit court orders the
sponsor to open the closed school and not terminate the
charter. + }
  (5) Termination of a charter shall not abridge the public
charter school's legal authority to operate as a private or
nonchartered public school. { +  Termination of a charter shall
not abridge the public charter school district's legal authority
to operate as a nonchartered school district. + }
  (6) If   { - a - }   { + the + } charter  { + of a public
charter school + } is terminated or a public charter school is
dissolved, the assets of the public charter school that were
purchased with public funds shall be given to the State Board of
Education. The State Board of Education may disburse the assets
of the public charter school to school districts or other public
charter schools.
  (7) A public charter school governing body may   { - only - }
terminate a charter, dissolve or close a public charter school
 { +  only + } at the end of a semester. If a charter is
terminated by the public charter school governing body or a
public charter school is closed or dissolved, the public charter
school governing body shall notify the sponsor at least 180 days
prior to the proposed effective date of the termination, closure
or dissolution.
   { +  (8) A school district board may terminate the charter of
a public charter school district only at the end of a semester.
If a charter is terminated by a school district board, the board
shall notify the State Board of Education at least 180 days prior
to the proposed effective date of the termination. + }
  SECTION 11. ORS 338.115 is amended to read:
  338.115. (1) Statutes and rules that apply to school district
boards, school districts or other public schools shall not apply
to public charter schools { +  or public charter school
districts + }.  However, the following laws shall apply to public
charter schools  { +  and public charter school districts + }:
  (a) Federal law;
  (b) ORS 192.410 to 192.505 (public records law);
  (c) ORS 192.610 to 192.690 (public meetings law);
  (d) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (e) ORS 181.539, 326.603, 326.607 and 342.232 (criminal records
checks);
  (f) ORS 337.150 (textbooks);
  (g) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (h) ORS 659.150 and 659.155 (discrimination);
  (i) ORS 30.260 to 30.300 (tort claims);
  (j) Health and safety statutes and rules;
  (k) Any statute or rule that is listed in the charter;
  (L) The statewide assessment system developed by the Department
of Education under ORS 329.485 (1);
  (m) ORS 329.045 (1) (academic content areas);
  (n) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year; and
  (o) This chapter.
  (2) Notwithstanding subsection (1) of this section, a charter
may specify that statutes and rules that apply to school district
boards, school districts and other public schools may apply to a
public charter school { +  or public charter school district + }.
  (3) If a statute or rule applies to a public charter school
 { +  or public charter school district + }, then the terms
'school district' and 'public school' shall include public
charter school  { + or public charter school district + } as
those terms are used in that statute or rule.
   { +  (4) In addition to the laws specified in subsection (1)
of this section, ORS 327.006 to 327.133 shall apply to a public
charter school district. + }
    { - (4) - }  { +  (5) + } A public charter school  { + or
public charter school district + } shall not violate the
Establishment Clause of the First Amendment to the United States
Constitution or section 5, Article I of the Oregon Constitution,
or be religion based.
    { - (5) - }  { +  (6) + } A public charter school shall
maintain an active enrollment of at least 25 students.
    { - (6) - }  { +  (7) + } A public charter school  { + or
public charter school district + } may sue or be sued as a
separate legal entity.
    { - (7) - }  { +  (8) + } The sponsor, members of the
governing board of the sponsor acting in their official capacity
and employees of a sponsor acting in their official capacity are
immune from civil liability with respect to all activities
related to a public charter school within the scope of their
duties or employment.
    { - (8) - }  { +  (9) + } A public charter school  { + or
public charter school district + } may enter into contracts and
may lease facilities and services from a school district,
education service district, state institution of higher
education, other governmental unit or any person or legal entity.
    { - (9) - }  { +  (10) + } A public charter school may not
levy taxes or issue bonds under which the public incurs
liability.
    { - (10) - }  { +  (11) + } A public charter school  { + or
public charter school district + } may receive and accept gifts,
 
grants and donations from any source for expenditure to carry out
the lawful functions of the school { +  or district + }.
    { - (11) - }  { +  (12) + } The school district in which
 { - the - }   { + a + } public charter school is located shall
offer a high school diploma, certificate, Certificate of Initial
Mastery or Certificate of Advanced Mastery to any public charter
school student who meets the district's and state's standards for
a high school diploma, certificate, Certificate of Initial
Mastery or Certificate of Advanced Mastery.
    { - (12) - }  { +  (13) + } A high school diploma,
certificate, Certificate of Initial Mastery or Certificate of
Advanced Mastery issued by a public charter school  { + or public
charter school district + } shall grant to the holder the same
rights and privileges as a high school diploma, certificate,
Certificate of Initial Mastery or Certificate of Advanced Mastery
issued by a nonchartered public school { +  or nonchartered
school district + }.
    { - (13) - }  { +  (14) + } Prior to beginning operation,
 { - the - }   { + a + } public charter school shall show proof
of insurance to the sponsor as specified in the charter.
 { + Prior to beginning operation, a public charter school
district shall show proof of insurance to the State Board of
Education as specified in the charter. + }
  SECTION 12.  { + (1) Student enrollment in a public charter
school district shall be voluntary. If a student chooses not to
attend a school in a public charter school district, that school
district board shall enter into a contract with another district
under ORS 339.125 or shall consent to the student's attendance at
a school in another school district under ORS 339.133.
  (2) ORS 339.115 shall apply to a public charter school
district.
  (3) If space is available a public charter school district may
admit students who do not reside in the school district. A public
charter school district shall not be required to enter into a
contract with another district under ORS 339.125 to admit
students to the public charter school district. A student shall
not be required under ORS 339.133 to have the consent of the
originating school district to attend school in a public charter
school district.
  (4) A public charter school district may not limit student
admission based on ethnicity, national origin, disability,
gender, income level, proficiency in the English language or
athletic ability.
  (5) Notwithstanding ORS 339.133, students attending school in a
public charter school district shall be considered to be
residents of the school district for purposes of distribution of
the State School Fund.
  (6) A public charter school district may conduct fund-raising
activities. However, a public charter school district shall not
require a student to participate in fund-raising activities as a
condition of attending school in the school district. + }
  SECTION 13. ORS 338.135 is amended to read:
  338.135. (1) Employee assignment to a public charter school
shall be voluntary.
  (2) A public charter school or the sponsor of the public
charter school may be considered the employer of any employees of
the public charter school. If a school district board is not the
sponsor of the public charter school, the school district board
shall not be the employer of the employees of the public charter
school and the school district board may not collectively bargain
with the employees of the public charter school. The public
charter school governing body shall control the selection of
employees at the public charter school.
   { +  (3) A public charter school district shall be considered
the employer of any employees of the district. + }
 
    { - (3) - }  { +  (4) + } The school district board of the
school district within which   { - the - }   { + a + } public
charter school is located shall grant a leave of absence to any
employee who chooses to work in the public charter school. The
length and terms of the leave of absence shall be set by
negotiated agreement or by board policy.  However, the length of
the leave of absence may not be less than two years unless:
  (a) The charter of the public charter school is terminated or
the public charter school is dissolved or closed during the leave
of absence; or
  (b) The employee and the school district board have mutually
agreed to a different length of time.
    { - (4) - }  { +  (5) + } An employee of a public charter
school operating within a school district who is granted a leave
of absence from the school district and returns to employment
with the school district shall retain seniority and benefits as
an employee pursuant to the terms of the leave of absence.
Notwithstanding ORS 243.650 to 243.782, a school district that
was the employer of an employee of a public charter school not
operating within the school district may make provisions for the
return of the employee to employment with the school district.
    { - (5) - }  { +  (6) + } For purposes of ORS chapter 238, a
public charter school { +  or public charter school district + }
shall be considered a public employer and as such shall
participate in the Public Employees Retirement System.
    { - (6) - }  { +  (7) + } For teacher licensing, employment
experience in public charter schools  { + or public charter
school districts + } shall be considered equivalent to experience
in public schools { +  or nonchartered school districts + }.
    { - (7)(a) - }   { + (8)(a) + } Notwithstanding ORS 342.173,
a public charter school { +  or public charter school
district + } may employ as an administrator a person who is not
licensed by the Teacher Standards and Practices Commission.
  (b) Any person employed as a teacher in a public charter school
 { + or public charter school district + } shall be licensed or
registered to teach by the   { - Teacher Standards and
Practices - } commission.
  (c) Notwithstanding paragraph (a) or (b) of this subsection, at
least one-half of the total full-time equivalent (FTE) teaching
and administrative staff at   { - the - }   { + a + } public
charter school  { + or within a public charter school
district + } shall be licensed by the commission pursuant to ORS
342.135, 342.136, 342.138 or 342.140.
    { - (8) - }  { +  (9) + } Notwithstanding ORS 243.650, a
public charter school { +  or public charter school district + }
shall be considered a school district for purposes of ORS 243.650
to 243.782. An employee of a public charter school  { + or public
charter school district + } may be a member of a labor
organization or organize with other employees to bargain
collectively. Bargaining units at   { - the - }  { + a + } public
charter school may be separate from other bargaining units of the
sponsor or of the school district in which the public charter
school is located. Employees of a public charter school may be
part of the bargaining units of the sponsor or of the school
district in which the public charter school is located.
    { - (9) - }   { + (10)(a) + } A school district or the State
Board of Education may not waive the right to sponsor a public
charter school in a collective bargaining agreement.
   { +  (b) The State Board of Education may not waive the right
to sponsor a public charter school district in a collective
bargaining agreement.
  (c) A school district may not waive the right to become a
public charter school district in a collective bargaining
agreement. + }
  SECTION 14.  { + (1) A public charter school district shall be
responsible for the transportation of a student attending school
within the district pursuant to ORS 327.043 if the student is a
resident of the school district.
  (2) A student who attends school in a public charter school
district and who resides outside the school district may use
existing bus routes and transportation services of the school
district.
  (3) Any transportation costs incurred by a school district
under this section shall be considered approved transportation
costs for purposes of ORS 327.013 (8) in the same manner that
transportation costs incurred by a nonchartered school district
for transporting students who attend public schools in the
nonchartered school district are considered approved
transportation costs for purposes of ORS 327.013 (8). + }
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