Chapter 226 Oregon Laws 2003

AN ACT

SB 11

Relating to school districts; creating new provisions; amending ORS 12.270, 294.060, 326.310, 326.355, 327.403, 328.001, 328.005, 328.255, 328.441, 328.465, 330.003, 330.005, 330.092, 334.350, 335.090, 335.095, 339.005, 343.236 and 431.412 and section 1, chapter 958, Oregon Laws 2001; repealing ORS 330.310, 333.005, 333.020, 333.050, 333.060, 333.071, 333.090, 333.126, 333.130, 333.145, 333.155, 333.165, 333.175, 333.195, 333.197, 333.205, 333.215, 333.240, 333.280, 333.290, 333.305, 333.310, 333.320, 333.330, 333.340, 333.350, 333.360, 333.510, 333.520, 333.540, 333.550, 333.561, 333.570, 333.580 and 333.610; and declaring an emergency.

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

SECTION 1. (1) A county school district that exists on the effective date of this 2003 Act shall discontinue as a county school district and become a common school district.

(2) On and after the effective date of this 2003 Act, all laws that apply to common school districts shall apply to school districts that existed as county school districts prior to the effective date of this 2003 Act.

SECTION 2. ORS 326.310 is amended to read:

326.310. Except as provided by ORS 326.041, 326.051, 326.375, 341.005, 341.015, 341.440, 341.455, 341.626, 341.655 and 341.933, the Superintendent of Public Instruction shall exercise, under the direction of the State Board of Education, a general superintendence of school officers and the public schools. In carrying out the duties of office, the Superintendent of Public Instruction shall:

(1) Act as administrative officer of the State Board of Education.

(2) Act as executive head of the Department of Education and direct and supervise all activities of the department.

(3) Assist all district school boards[,] and education service district boards [and county school boards] in answering questions concerning the proper administration of the school laws, the rules of the State Board of Education and the ministerial duties of school officers and teachers. The decision of the superintendent shall guide school officers and teachers in the performance of their duties relating to the matters decided. The superintendent may submit any question to the State Board of Education which shall then decide the question.

(4) Obtain and compile such statistical information relative to the condition and operation of the public schools as the superintendent or the state board may consider advisable for the advancement of education and for the information of the state board and the public.

(5) Appoint, subject to the State Personnel Relations Law and with the approval of the State Board of Education, such personnel as may be necessary for the performance of the duties of the office of the superintendent. The Superintendent of Public Instruction may designate one or more suitable persons to sign or countersign warrants, vouchers, certificates or other papers and documents requiring the signature of the superintendent.

(6) Administer and supervise adult education programs in the public elementary and secondary schools.

(7) Perform such other functions as may be necessary to the performance of the duties of the superintendent.

SECTION 3. ORS 326.355 is amended to read:

326.355. (1) The Superintendent of Public Instruction shall prorate the annual estimate of census as provided in ORS 327.410 and 327.420 in proportion as the resident average daily membership of each education service district [or county school district] bears to the total resident average daily membership of the state and certify such to the administrative officer of each education service district [or county office].

(2) Subject to guidelines approved by the Superintendent of Public Instruction, the administrative officer of each education service district [or county school officer] shall apportion the census so certified to those common school districts reporting to the education service district [or county school office]. The estimated district census determined by this manner shall be deemed applicable to all statutory references to the term “census” or “school age child” in Oregon Revised Statutes.

SECTION 4. ORS 327.403 is amended to read:

327.403. As used in ORS 327.405 to 327.480, unless the context requires otherwise, “administrative office for the county” means the administrative office of the education service district[, the county school district,] or of any common school district [which] that includes an entire county.

SECTION 5. ORS 328.001 is amended to read:

328.001. As used in this chapter, unless the context requires otherwise:

(1) “Administrative office for the county” means the administrative office [of the county school district,] of the education service district, or of any common school district [which] that includes an entire county.

(2) “School district” includes common and union high school districts.

SECTION 6. ORS 328.005 is amended to read:

328.005. (1) The governing body of each county shall create a county school fund.

(2) When a county governing body transfers federal forest reserve receipts under ORS 294.060 [(5)] (4) subject to a condition that such moneys be used only for a purpose described in ORS 328.205 (1)(a) or (c), a school district receiving a share of such moneys [shall] may not use the moneys for any other purpose.

SECTION 7. ORS 328.255 is amended to read:

328.255. (1) The county treasurer or county fiscal officer shall register each school district bond, including refunding bonds, and negotiable interest-bearing warrants in a book kept for that purpose, noting the school district, amount, date, time and place of payment, rate of interest and such other facts as may be deemed proper. The county treasurer or fiscal officer shall cause the bonds or warrants to be delivered promptly to the purchasers thereof upon payment therefor, and if the place of delivery is outside the city in which the county treasurer or county fiscal officer’s office is situated the cost of delivery of the bonds or warrants shall be paid by the issuing school district.

(2) The county treasurer or county fiscal officer or a custodial officer as defined in ORS 294.004 may hold the proceeds of the sale of the bonds or warrants for all school districts [except county school districts] subject to the order of the district school board to be used solely for the purpose for which the bonds or warrants were issued. If the treasurer or fiscal officer holds the proceeds initially, then the treasurer or fiscal officer, as soon as practicable, shall deliver the proceeds of the sale of the bonds and warrants to the person designated as custodian of the school district funds under ORS 328.441.

(3) When the bonds or warrants have been so executed, registered and delivered, their legality shall not be open to contest by the school district, or by any person for or on its behalf, for any reason whatever.

SECTION 8. ORS 328.441 is amended to read:

328.441. (1) Common school district boards and union high school district boards shall designate the persons to be custodians of school funds of their respective districts. Such funds shall be disbursed only in the manner provided by ORS 328.445 (1).

[(2) A county school board, by resolution entered in its record of board proceedings, may designate the person to be the custodian of the school district funds. In such case, subsections (1), (2) and (3) of this section shall apply to the county school district and subsection (4) of this section shall not apply.]

[(3)] (2) For the purpose of receiving deposits of school funds, the district school board of each district described in [subsections] subsection (1) [and (2)] of this section shall designate such bank or banks within the county or counties in which the district is located, as the board deems safe and proper depositories for school district funds. The custodian designated under subsection (1) [or (2)] of this section [shall] is not [be] liable personally or upon official bond of the custodian for moneys lost by reason of failure or insolvency of any bank [which] that becomes a depository under this subsection.

[(4)] (3) If the district does not designate a custodian of school funds, the county treasurer or county fiscal officer shall be custodian of funds of all school districts. School district funds in the county treasurer’s or county fiscal officer’s custody shall be disbursed only upon warrants drawn on the county treasurer or county fiscal officer by the district school board in the manner provided by law.

[(5)] (4) The proceeds of the sale of school district bonds or warrants shall be used solely for the purpose for which the bonds or warrants were issued, including reduction of existing bond or warrant indebtedness.

SECTION 9. ORS 328.465 is amended to read:

328.465. (1) All common and union high school district boards shall cause to have prepared an annual audit of the books and accounts of the district in the manner set forth in subsection (2) or (3) of this section. [County school districts shall cause the audit to be prepared as provided in subsection (3) of this section.] The audit statements must be filed with the administrative office for the county on or before November 1 of the year in which the audit is conducted.

(2) The district school board may contract for its audit with the administrative office for the county in which the administrative office of the school district is located. The administrative office for the county shall secure the services of accountants who shall audit the books and accounts of the districts and file with the administrative office for the county a statement setting forth the financial condition of each district. A copy of the audit report of the district shall be sent to the appropriate district board. Each district, upon receipt of billing from the administrative office for the county, shall pay its share of the audit costs.

(3) The district board may employ accountants to audit the books and accounts of the district.

(4) Accountants employed under subsection (2) or (3) of this section must be selected from the roster of authorized municipal accountants maintained by the Oregon Board of Accountancy under ORS 297.670.

(5) The audit required by this section shall include an audit of those factors that are used to compute the State School Fund distribution under ORS 327.013.

SECTION 10. ORS 330.003 is amended to read:

330.003. For purposes of this chapter:

(1)(a) “Merger” includes any alteration, annexation, merger, consolidation, lengthening the course of study or other change under ORS 330.090 to 330.107, 335.490 to 335.505[, ORS chapter 333,] and, in the case of education service districts to which ORS 334.350 to 334.400 apply, ORS 334.710 to 334.770.

(b) “Merger” includes only those proceedings in which the entire territory of an involved school district is merged. The permanent rate limit for operating taxes for a school district after merger shall be the rate that would produce the same operating tax revenue as the school districts prior to merger would have cumulatively produced in the year of merger if the merger, not taking into account any applicable statutory rate limit, had not occurred.

(2) “School district” means a taxing district providing public elementary or secondary education, or any combination thereof, within this state, and specifically includes a component school district of an education service district that levies taxes for its component school districts and the education service district itself. “School district” does not include any other education service district.

SECTION 11. ORS 330.003, as amended by section 36, chapter 695, Oregon Laws 2001, is amended to read:

330.003. For purposes of this chapter:

(1)(a) “Merger” includes any alteration, annexation, merger, consolidation, lengthening the course of study or other change under ORS 330.090 to 330.107, 334.710 to 334.770 and 335.490 to 335.505 [and ORS chapter 333].

SECTION 12. ORS 330.005 is amended to read:

330.005. (1) For public school purposes, this state is divided into subdivisions known as school districts.

(2) For purposes of the school laws of this state, unless the context requires otherwise:

(a) “School district” includes a common school district, a joint school district and a union high school district.

(b) “Common school district” means a school district, [including a county school district formed under ORS chapter 333,] other than a union high school district, formed primarily to provide education in all or part of kindergarten through grade 12 to pupils residing within the district.

(d) “Union high school district” means a school district, other than a common school district, that is responsible for education in high school grades but not in primary grades, formed in accordance with ORS 335.210 to 335.485 (1963 Replacement Part).

(e) “Governing body of the county” means the county court, the board of county commissioners or the unit of government designated by the county charter to exercise the power or duty prescribed in the section in which the term occurs.

(f) “Most populous district” means the school district [which] that has the largest number of pupils in average daily membership, as defined in ORS 327.006.

SECTION 13. ORS 330.092 is amended to read:

330.092. The boundaries of a school district [shall] may not be changed except:

(1) Pursuant to ORS 330.090 (1) or (3).

(2) By a vote of the people pursuant to[:]

[(a) ORS chapter 333; or]

[(b)] the lengthening of the course of study under ORS chapter 335.

(3) By the mutual consent of the district school boards of the two or more affected districts in the manner prescribed in ORS 330.080 to 330.107.

(4) On a request for change or merger proposal submitted to the district boundary board by electors of the affected districts in the manner prescribed in ORS 330.080 to 330.107.

SECTION 14. ORS 334.350 is amended to read:

334.350. ORS 334.350 to 334.400 apply to every education service district which immediately prior to August 20, 1957, included the territory of every first class school district as defined in ORS 330.020 (1963 Replacement Part) and of every union high school district [and any county high school district] located within the boundaries of the education service district.

SECTION 15. ORS 335.090 is amended to read:

335.090. (1) The high school education of all children of school age resident within a school district [which] that does not operate a high school or [which] that is not a component part of a union high school district [or of a county high school district] shall be the responsibility of the district.

(2) The district shall pay the tuition of all pupils resident within the district who are qualified to attend and are attending a standard public high school either within or outside the state.

(3) The district shall provide for transportation to the nearest standard public high school which pupils may attend. Reasonable board and room may be furnished instead of transportation if desired. If the district arranges for the attendance of pupils at a standard public high school other than the nearest one pupils may attend, then the district shall provide for transportation to the standard public high school which the pupils are attending.

(4) The estimated cost of tuition and transportation or board and room instead of transportation shall be included in and be a part of the budget and shall be levied as provided in ORS 335.095.

SECTION 16. ORS 335.095 is amended to read:

335.095. The amounts required to meet the expenses of a school district under ORS 335.090 shall be certified to the county assessor separately. No tax shall be levied for the purposes of ORS 335.090 against property included in a union high school district [or a county high school district].

SECTION 17. ORS 339.005 is amended to read:

339.005. As used in ORS 339.040 and 339.125, unless the context requires otherwise, “administrative office for the county” means the administrative office of the education service district[, of the county school district] or of a common school district [which] that includes an entire county.

SECTION 18. ORS 343.236 is amended to read:

343.236. (1) The Superintendent of Public Instruction may provide special education on a local, county or regional basis without regard to county boundaries in all areas of the state for children who have:

(a) A visual impairment;

(b) A hearing impairment;

(d) An orthopedic impairment; or

(e) Autism.

(2) The Superintendent of Public Instruction may operate and administer a local, county or regional program of special education or the superintendent may contract for the operation and administration of the program with a school district[,] or an education service district[, a county school district or a common school district having jurisdiction over an entire county].

(3) The State Board of Education by rule shall establish eligibility criteria and educational standards for the programs described in subsection (1) of this section and those programs in facilities operated under ORS 346.010.

(4) A school district which contracts to provide a program under this section shall be paid for the state-approved program as determined and funded by the Legislative Assembly. Contracting school districts are authorized to negotiate supplemental programs with participating school districts.

SECTION 19. Section 1, chapter 958, Oregon Laws 2001, is amended to read:

Sec. 1. Distribution of moneys from federal Secure Rural Schools and Community Self-Determination Act. (1) The purpose of this section is to ensure that school districts receive a percentage of amounts received by the state under the Secure Rural Schools and Community Self-Determination Act of 2000 (P.L. 106-393).

(2) The Oregon Department of Administrative Services shall distribute all sums received by the state pursuant to section 102(a)(2), (c)(1) and (d)(1)(A), P.L. 106-393, to counties in the same manner as are sums derived from forest reserve rentals, sales of timber and other sources from forest reserves under ORS 293.560. The department shall ensure that, of the total amount distributed to all counties in any fiscal year, the percentage distributed to each county in any fiscal year is the same as the county’s percentage share of all payments received by the state during the eligibility period described in section 3(2), P.L. 106-393.

(3) A county that receives funds from the department pursuant to subsection (2) of this section as the county’s share of federal funds distributed under P.L. 106-393 shall deposit 25 percent of those funds in the county school fund or shall deposit an amount as specified in ORS 294.060 (3) to [(7)] (6).

(4) Pursuant to ORS 328.015, amounts in the county school fund shall be distributed to the school districts in the county based on the resident average daily membership of the school districts.

SECTION 20. ORS 12.270 is amended to read:

12.270. On September 13, 1975, any proceeding [which] that establishes or alters the boundaries of a governmental subdivision previously or hereafter initiated and purported to be effected in accordance with applicable legal requirements shall be conclusively presumed valid for all purposes one year after the purported effective date of the action. No direct or collateral attack on the action may thereafter be commenced. This statute of limitations includes but is not limited to the following proceedings:

(1) Formations and change of organizations under ORS 198.705 to 198.955.

(2) Boundary changes under ORS 199.410 to 199.519.

(3) Consolidations under ORS 199.705 to 199.795.

(4) Incorporations under ORS 221.010 to 221.090.

(5) Annexations under ORS 222.111 to 222.180, 222.750 and 222.840 to 222.915.

(6) Consolidations under ORS 222.210 to 222.310.

(7) Withdrawals and transfers of territory under ORS 222.510 to 222.580.

(8) Mergers under ORS 222.610 to 222.710.

(9) Formations and changes under ORS chapter 261.

(10) Alterations, changes, mergers and consolidations under ORS 330.080 to 330.123, 330.505 to 330.780 (1989 Edition), 335.490 to 335.505 and ORS chapter 333 (2001 Edition).

(11) Formations and boundary changes under ORS 341.025 to 341.125 and 341.565 to 341.575.

(12) Organizations and boundary changes under ORS 545.002 and 545.025 to 545.043, 545.051 to 545.105, 545.109, 545.123, 545.126 and 545.131.

(13) Formations and boundary alterations under ORS 547.005 to 547.060 and 547.250 to 547.260.

(14) Formations and organizations under ORS chapter 551.

SECTION 21. ORS 294.060 is amended to read:

294.060. (1) The moneys received by each county under ORS 293.560 shall be divided 75 percent to the road fund and 25 percent to the school fund of the county and, subject to [subsections] subsection (2) [and (3)] of this section, the moneys shall be expended as other moneys in those funds are expended.

(2) The moneys apportioned to the county road fund may be applied in payment of any outstanding road bonds or may be placed in any county road bond sinking fund for the purpose of being so applied.

[(3) The moneys apportioned to the school fund in any county operating under and by virtue of ORS chapter 333 shall be used for and applied to the payment of the bonded and warrant indebtedness of the school districts incurred prior to January 1, 1925, until such bonded and warrant indebtedness has been paid in full.]

[(4)] (3) Notwithstanding the division of receipts specified in subsection (1) of this section, in any county east of the summit of the Cascade Mountains with a population of less than 9,000 and more than 6,500, according to the 1990 federal decennial census, moneys from the road fund in excess of $2 million may be transferred to the school fund when the amount of money credited to the road fund under subsection (1) of this section exceeds the amount needed for county roads, as determined by the board of county commissioners. Any amount received by a school district from the school fund of the county that is in excess of the 25 percent required under subsection (1) of this section [shall] may not be considered as a receipt that would reduce the district’s apportionments from the State School Fund.

[(5)] (4) Notwithstanding the division of receipts specified in subsection (1) of this section, in any county east of the summit of the Cascade Mountains with a population of less than 58,000 and more than 55,000, according to the 1990 federal decennial census, if the moneys credited to the road fund under subsection (1) of this section exceed the amount needed for county roads, as determined by the county governing body, the portion of such moneys in excess of an amount specified by the county governing body may be transferred to the school fund of the county or may be transferred directly to the school districts of the county in accordance with procedures established by the county governing body. The county governing body may distribute moneys under this subsection among the several school districts without regard to the percentage of the resident average daily membership in each school district. Moneys transferred under this subsection may be transferred upon the condition that any school district receiving a share of such moneys must use the moneys only for a purpose described in ORS 328.205 (1)(a) or (c). Any amount received by a school district from the county under this subsection that is in excess of the 25 percent required under subsection (1) of this section [shall] may not be considered as a receipt that would reduce the district’s apportionments from the State School Fund.

[(6)] (5) Notwithstanding the division of receipts specified in subsection (1) of this section, in any county east of the summit of the Cascade Mountains with a population of less than 6,500, according to the 1990 federal decennial census, moneys received by the county under ORS 293.560 may be divided between the road fund and the school fund of the county as specified under an agreement between the county governing body and the education service district board of the county that provides for a different apportionment of those moneys. Any amount received by a school district from the school fund of the county that is in excess of the 25 percent required under subsection (1) of this section [shall] may not be considered as a receipt that would reduce the district’s apportionments from the State School Fund.

[(7)] (6) Notwithstanding the division of receipts specified in subsection (1) of this section, in any county west of the summit of the Cascade Mountains with a population of less than 19,500 and more than 6,500, according to the 1990 federal decennial census, moneys from the road fund in excess of $1 million may be transferred to the school fund when the amount of money credited to the road fund under subsection (1) of this section exceeds the amount needed for county roads, as determined by the board of county commissioners. Any amount received by a school district from the school fund of the county that is in excess of the 25 percent required under subsection (1) of this section [shall] may not be considered as a receipt that would reduce the district’s apportionments from the State School Fund.

[(8)] (7) As used in subsections [(4) to (7)] (3) to (6) of this section, “summit of the Cascade Mountains” has the meaning for that term provided in ORS 477.001.

SECTION 22. ORS 431.412 is amended to read:

431.412. (1) The governing body of any county shall establish a county board of health, when authorized to do so by a majority of electors of the county at any general or special election, and may, if such authorization is made, establish a public health advisory board as provided in subsection (5) of this section.

(2) The county board of health shall consist of:

(a) One member of the county governing body selected by the body.

(b) One member of a common school district board having jurisdiction over [an] the entire county[, the county school board] or of the education service district board who resides in the county and is selected by the education service district board, or the designee of that member.

(c) One physician who has been licensed to practice medicine in this state by the Board of Medical Examiners for the State of Oregon.

(d) One dentist who has been licensed to practice dentistry in this state by the Oregon Board of Dentistry.

(e) Three [others] other members.

(3) The members referred to in subsection (2)(c) to (e) of this section shall be appointed by the members serving under subsection (2)(a) and (b) of this section. The term of office of each of such appointed members shall be four years, terms to expire annually on February 1. The first appointments shall be for terms of one, two, three or four years, as designated by the appointing members of the board.

(4) Whenever a county board of health is created under this section, such board shall be in lieu of the board provided for in ORS 431.410.

(5) The governing body of the county may, as provided in subsection (1) of this section, appoint a public health advisory board for terms of four years, the terms to expire annually on February 1. The first appointments shall be for terms of one, two, three or four years as designated by the governing body. The advisory board shall meet regularly to advise the county board of health on matters of public health. The advisory board shall consist of:

(a) Persons licensed by this state as health care practitioners.

(b) Persons who are well informed on public health matters.

SECTION 23. ORS 330.310, 333.005, 333.020, 333.050, 333.060, 333.071, 333.090, 333.126, 333.130, 333.145, 333.155, 333.165, 333.175, 333.195, 333.197, 333.205, 333.215, 333.240, 333.280, 333.290, 333.305, 333.310, 333.320, 333.330, 333.340, 333.350, 333.360, 333.510, 333.520, 333.540, 333.550, 333.561, 333.570, 333.580 and 333.610 are repealed.

SECTION 24. Section 1 of this 2003 Act, the amendments to ORS 12.270, 294.060, 326.310, 326.355, 327.403, 328.001, 328.005, 328.255, 328.441, 328.465, 330.003, 330.005, 330.092, 334.350, 335.090, 335.095, 339.005, 343.236 and 431.412 and section 1, chapter 958, Oregon Laws 2001, by sections 2 to 22 of this 2003 Act and the repeal of ORS 330.310, 333.005, 333.020, 333.050, 333.060, 333.071, 333.090, 333.126, 333.130, 333.145, 333.155, 333.165, 333.175, 333.195, 333.197, 333.205, 333.215, 333.240, 333.280, 333.290, 333.305, 333.310, 333.320, 333.330, 333.340, 333.350, 333.360, 333.510, 333.520, 333.540, 333.550, 333.561, 333.570, 333.580 and 333.610 by section 23 of this 2003 Act do not affect any action, case or proceeding commenced before the effective date of this 2003 Act. The action, case or proceeding may be completed in accordance with the statutes amended or repealed by sections 2 to 23 of this 2003 Act as if those statutes had not been amended or repealed.

SECTION 25. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect July 1, 2003.

Approved by the Governor June 6, 2003

Filed in the office of Secretary of State June 9, 2003

Effective date July 1, 2003

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