Chapter 390 Oregon Laws 2003

AN ACT

HB 2894

Relating to school districts; creating new provisions; amending ORS 327.103; and declaring an emergency.

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

SECTION 1. ORS 327.103 is amended to read:

327.103. (1) All school districts are presumed to maintain a standard school district until the school district has been found to be deficient by the Superintendent of Public Instruction, pursuant to standards and rules of the State Board of Education.

(2) If any deficiencies are not corrected before the beginning of the school year next following the date of the finding of deficiency and if an extension has not been granted under subsection (3) of this section, the Superintendent of Public Instruction may withhold portions of State School Fund moneys otherwise allocated to the school district for operating expenses until such deficiencies are corrected unless the withholding would create an undue hardship, as determined pursuant to rules of the State Board of Education.

(3)(a) Within 90 days of the finding of deficiency, a school district found not to be in compliance shall submit a plan, acceptable to the Superintendent of Public Instruction, for meeting standardization requirements. A team of Department of Education staff shall [visit] contact the school district and offer technical assistance[, as needed, in the preparation and implementation of the plan]. When an acceptable plan for meeting standardization requirements has been submitted, the Superintendent of Public Instruction may allow an extension of time, not to exceed 12 months, if the superintendent determines that such deficiencies cannot be corrected or removed before the beginning of the next school year. [However, no]

(b) Notwithstanding paragraph (a) of this subsection, if the superintendent determines that the reason for the deficiencies is primarily the lack of adequate funds, the superintendent may allow an extension of time that exceeds 12 months based on criteria adopted by the State Board of Education. Based on the rules of the State Board of Education, the superintendent shall provide oversight to a school district that is granted an extension of time under this paragraph.

(c) Notwithstanding paragraphs (a) and (b) of this subsection, the superintendent may not grant an extension [shall be granted] of time if it is possible for a district to correct the deficiency through merger.

(d) For the period of the extension of time under this subsection, the school district shall be considered a conditionally standard school district.

(e) The State Board of Education shall adopt by rule:

(A) Criteria for determining when to grant an extension of time under paragraph (b) of this subsection; and

(B) The method of oversight to be provided by the superintendent over a school district that is granted an extension of time under paragraph (b) of this subsection.

(4) Any school district failing to submit a plan for meeting standardization requirements within the time specified shall receive no further State School Fund moneys until a plan acceptable to the Superintendent of Public Instruction is submitted irrespective of the district’s being [given one year] granted an extension of time in which to comply.

SECTION 2. The amendments to ORS 327.103 by section 1 of this 2003 Act apply to any school district that is found by the Superintendent of Public Instruction to be deficient on or after January 1, 2002. If a school district was granted a 12-month extension between January 1, 2002, and the effective date of this 2003 Act, the superintendent may grant the school district an additional extension based on the amendments to ORS 327.103 by section 1 of this 2003 Act.

SECTION 3. ORS 327.103, as amended by section 1 of this 2003 Act, is amended to read:

327.103. (1) All school districts are presumed to maintain a standard school district until the school district has been found to be deficient by the Superintendent of Public Instruction, pursuant to standards and rules of the State Board of Education.

(2) If any deficiencies are not corrected before the beginning of the school year next following the date of the finding of deficiency and if an extension has not been granted under subsection (3) of this section, the Superintendent of Public Instruction may withhold portions of State School Fund moneys otherwise allocated to the school district for operating expenses until such deficiencies are corrected unless the withholding would create an undue hardship, as determined pursuant to rules of the State Board of Education.

(3)(a) Within 90 days of the finding of deficiency, a school district found not to be in compliance shall submit a plan, acceptable to the Superintendent of Public Instruction, for meeting standardization requirements. A team of Department of Education staff shall contact the school district and offer technical assistance. When an acceptable plan for meeting standardization requirements has been submitted, the Superintendent of Public Instruction may allow an extension of time, not to exceed 12 months, if the superintendent determines that such deficiencies cannot be corrected or removed before the beginning of the next school year.

[(b) Notwithstanding paragraph (a) of this subsection, if the superintendent determines that the reason for the deficiencies is primarily the lack of adequate funds, the superintendent may allow an extension of time that exceeds 12 months based on criteria adopted by the State Board of Education. Based on the rules of the State Board of Education, the superintendent shall provide oversight to a school district that is granted an extension of time under this paragraph.]

[(c)] (b) Notwithstanding [paragraphs (a) and (b)] paragraph (a) of this subsection, the superintendent may not grant an extension of time if it is possible for a district to correct the deficiency through merger.

[(d)] (c) For the period of the extension of time under this subsection, the school district shall be considered a conditionally standard school district.

[(e) The State Board of Education shall adopt by rule:]

[(A) Criteria for determining when to grant an extension of time under paragraph (b) of this subsection; and]

[(B) The method of oversight to be provided by the superintendent over a school district that is granted an extension of time under paragraph (b) of this subsection.]

(4) Any school district failing to submit a plan for meeting standardization requirements within the time specified shall receive no further State School Fund moneys until a plan acceptable to the Superintendent of Public Instruction is submitted irrespective of the district’s being granted an extension of time in which to comply.

SECTION 4. The amendments to ORS 327.103 by section 3 of this 2003 Act become operative on July 1, 2007.

SECTION 5. The Superintendent of Public Instruction may not grant an extension of time under ORS 327.103 (3)(b) that allows a school district to be deficient on or after July 1, 2007.

SECTION 6. 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 on its passage.

Filed in the office of Secretary of State June 18, 2003

Effective date June 18, 2003

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