Chapter 846
AN ACT
HB 2040
Relating to education; creating new
provisions; amending ORS 327.006, 327.008, 327.019, 327.125, 327.137, 339.129
and 340.045; repealing ORS 327.355, 327.357 and 327.360; and declaring an
emergency.
Be It Enacted by the People of
the State of
SECTION 1. Sections 2 to 6 of this 2007 Act are added
to and made a part of ORS 336.615 to 336.665.
SECTION 2. As used in sections 2 to 6 of this 2007 Act:
(1) “Qualified
homeschooled child” means a child who is registered as a child who is taught by
a parent, legal guardian or private teacher under ORS 339.035 and who is:
(a) A resident of a
county with a population of more than 320,000 but less than 325,000 according
to the federal decennial census conducted in 2000; or
(b) A resident of a
school district that contracted with a qualified private alternative education
program prior to the 2007-2008 school year.
(2) “Qualified private
alternative education program” means a private alternative education program
that:
(a) First contracted
with a qualified school district beginning with the 1996-1997 school year, and
has continued to have a contract with a qualified school district through the
2006-2007 school year, to provide services to homeschooled students; and
(b) Is in compliance
with ORS 336.615 to 336.665 and rules adopted by the State Board of Education
that relate to private alternative education programs.
(3) “Qualified school
district” means a school district:
(a) With an
administrative office located in the county seat of a county with a population
of more than 320,000 but less than 325,000 according to the federal decennial
census conducted in 2000; and
(b) That had a contract
with a qualified private alternative education program during the 2006-2007
school year.
SECTION 3. (1) A qualified school district may contract
with a qualified private alternative education program to provide services to
homeschooled children. A qualified school district that contracts with a
program under this section shall evaluate and monitor the program.
(2) Other school
districts may place students in a qualified private alternative education
program. Except as provided in subsection (1) of this
section, if a school district places a student in a program under this
subsection, the school district is not required to evaluate and monitor the
program.
(3) When necessary to
meet a qualified homeschooled child’s educational needs and interests, the
parent or legal guardian with the approval of the resident district and the attending district may enroll the child in a qualified
private alternative education program. If the child is determined to be
eligible for special education under ORS 343.221 to 343.236 and 343.261 to
343.295, the program must be approved by the Department of Education prior to
the placement of the student in the program.
(4) As a condition of
enrolling in a qualified private alternative education program:
(a) A qualified
homeschooled child may not be required to have previously attended a public school;
(b) A school district is
not required to find that the student is not benefiting, has not benefited or
will not benefit from attendance in public school or other alternative
education programs; and
(c) A school district is
not required to conduct an assessment of the child in order to find that the
program would meet the child’s educational needs and interests.
SECTION 4. Notwithstanding section 3 (3) of this 2007
Act, if a qualified homeschooled child was enrolled in a qualified private
alternative education program prior to the effective date of this 2007 Act,
additional approval from the resident or attending school district is not
required and the qualified homeschooled child may continue to attend the
program.
SECTION 5. (1) A qualified private alternative
education program shall receive funding from a qualified school district that
has entered into a contract with the program. The funding shall be calculated
based on this section and section 6 of this 2007 Act.
(2) A qualified private
alternative education program may receive funding for a qualified homeschooled
child only if the child enrolls in one or more the following courses that meet
the academic content standards adopted by the State Board of Education for that
course:
(a) Mathematics.
(b) Science.
(c) English.
(d) History.
(e) Geography.
(f) Economics.
(g) Civics.
(h) Physical education.
(i) Health.
(j) The arts.
(k) Second languages.
(L) Computer technology.
(3)(a) Except as
provided in paragraph (b) of this subsection, for purposes of receiving funding
for a qualified private alternative education program from the State School
Fund, a qualified school district that enters into a contract with a program
under section 3 of this 2007 Act shall be considered to be the resident
district of a qualified homeschooled child who attends the program.
(b) Paragraph (a) of
this subsection does not apply to a qualified homeschooled child who is
receiving special education and related services.
SECTION 6. (1) As used in this section:
(a) “ADM” means the
average daily membership as defined in ORS 327.006.
(b) “Small group” means
instruction provided in a qualified private alternative education program
approved by a qualified school district to a class of two to five students.
(c) “Intermediate group”
means instruction provided in a qualified private alternative education program
approved by a qualified school district to a class of six to 15 students.
(d) “Large group” means
instruction provided in a qualified private alternative education program
approved by a qualified school district to a class of 16 or more students.
(e) “Tutorial” means
instruction provided in a qualified private alternative education program
approved by a qualified school district to a class of one student.
(2) The State Board of
Education shall adopt by rule a formula for the calculation of the amount of
funding to be received by a qualified private alternative education program.
The formula shall be based on:
(a) The ADM of the
program;
(b) Whether the program
operates full-time or part-time; and
(c) Whether instruction
in the program is given as tutorials or in small groups, intermediate groups or
large groups.
SECTION 7. Sections 5 and 6 of this 2007 Act first
apply to
SECTION 8. ORS 327.019 is amended to read:
327.019. (1) As used in this section:
(a) “Education service
district extended ADMw” means the sum of the extended ADMw of the component
school districts of the education service district as computed under ORS
327.013.
(b) “Local revenues of
an education service district” means 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 state-managed forestlands under ORS
530.115 (1)(b) and (c); and
(D) 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.
(2) Each fiscal year,
the Superintendent of Public Instruction shall calculate a State School Fund
grant for each education service district as provided in this section.
(3)(a) Each fiscal year,
the superintendent shall calculate the total amount appropriated or allocated
to the State School Fund and available for distribution to school districts,
education service districts and programs + total amount of local revenues of
all school districts, computed as provided in ORS 327.013, + total amount of
local revenues of all education service districts. The superintendent may not
include in the calculation under this paragraph amounts recovered by the
Department of Education from the State School Fund under ORS 343.243.
(b) The superintendent
shall multiply the amount calculated under paragraph (a) of this subsection by
95.25 percent.
(c) Based on the amount
calculated under paragraph (b) of this subsection, the superintendent shall
calculate a funding percentage to distribute as nearly as practicable under ORS
327.006 to 327.133, 327.348, 327.355, 327.357 and 327.360 the total amount
calculated under paragraph (b) of this subsection as school district general
purpose grants, facility grants, high cost disabilities grants and
transportation grants to school districts.
(d) Based on the funding
percentage calculated under paragraph (c) of this subsection, the
superintendent shall calculate the general purpose grant, facility grant, transportation grant and high cost disabilities grant
amounts for each school district.
(4) The general services
grant for an education service district shall equal the higher of:
(a) The total
amount calculated under subsection (3)(d) of this
section for the component school districts of the education service district ´ (4.75 :SPLIT 95.25); or
(b) [$950,000] $1 million.
(5) Subject to
subsection (6) of this section, the State School Fund grant for an education
service district = general services grant :MINUS local
revenues of the education service district.
(6)(a) After completing
the calculations under subsections (2) to (5) of this section, the
Superintendent of Public Instruction shall apportion from the State School Fund
to each education service district an amount = (funding percentage ´ general services grant) − local revenues of the education service
district.
(b) The funding
percentage used in paragraph (a) of this subsection shall be calculated by the
superintendent to distribute as nearly as practicable the total amount
available for distribution to education service districts from the State School
Fund for each fiscal year.
(7) Notwithstanding
subsections (5) and (6) of this section[,]:
(a) The State School Fund grant of an education
service district may not be less than zero; and
(b) The
(8) An education service
district shall distribute to its component school districts any amount of local
revenues of the education service district that is greater than the general
services grant. The amount that each component school district receives under
this subsection shall be prorated based on the district extended ADMw of each
school district.
SECTION 9. The amendments to ORS 327.019 by section 8
of this 2007 Act apply to
SECTION 10. (1) During the 2007-2009 biennium,
the legislative interim committees on revenue shall conduct a study of the
adequacy of funding of small school districts and small education service
districts. The committees shall examine:
(a) The relationship
between small school districts and education service districts;
(b) Whether the
additional amounts received by small school districts that are attributable to
the additional amount added to the ADMw of those districts under ORS 327.013
(7)(a)(F) and 327.077 and the amount awarded as grants under ORS 327.357, when
combined with other funding, are adequate to provide sufficient funding for
those small school districts;
(c) What types of small
school districts are not being provided adequate funding; and
(d) The long term
effects of not providing small school districts and small education service
districts with adequate funding.
(2) Based on the study,
the legislative interim committees on revenue shall make recommendations to the
Seventy-fifth Legislative Assembly and may presession file proposed legislation
that would implement the recommendations.
SECTION 11. ORS 327.006 is amended to read:
327.006. As used in ORS
327.006 to 327.133, 327.348[, 327.355,
327.357, 327.360] and 327.731:
(1) “Aggregate days
membership” means the sum of days present and absent, according to the rules of
the State Board of Education, of all resident pupils when school is actually in
session during a certain period. The aggregate days
membership of kindergarten pupils shall be calculated on the basis of a
half-day program.
(2)(a) “Approved
transportation costs” means those costs as defined by rule of the State Board
of Education and is limited to those costs attributable to transporting or room
and board provided in lieu of transporting:
(A) Elementary school
students who live at least one mile from school;
(B) Secondary school
students who live at least 1.5 miles from school;
(C) Any student required
to be transported for health or safety reasons, according to supplemental plans
from districts that have been approved by the state board identifying students
who are required to be transported for health or safety reasons, including
special education;
(D) Preschool children
with disabilities requiring transportation for early intervention services
provided pursuant to ORS 343.224 and 343.533;
(E) Students who require
payment of room and board in lieu of transportation;
(F) A student
transported from one school or facility to another school or facility when the
student attends both schools or facilities during the day or week; and
(G) Students
participating in school-sponsored field trips that are extensions of classroom
learning experiences.
(b) “Approved
transportation costs” does not include the cost of constructing boarding school
facilities.
(3) “Average daily
membership” or “ADM” means the aggregate days membership of a school during a
certain period divided by the number of days the school was actually in session
during the same period. However, if a district school board adopts a class
schedule that operates throughout the year for all or any schools in the
district, average daily membership shall be computed by the Department of
Education so that the resulting average daily membership will not be higher or
lower than if the board had not adopted such schedule.
(4) “Consumer Price
Index” means the Consumer Price Index for All Urban Consumers of the
(5) “Kindergarten” means
a kindergarten program that conforms to the standards and rules adopted by the
State Board of Education.
(6) “Net operating
expenditures” means the sum of expenditures of a school district in
kindergarten through grade 12 for administration, instruction, attendance and
health services, operation of plant, maintenance of plant, fixed charges and
tuition for resident students attending in another district, as determined in
accordance with the rules of the State Board of Education, but net operating
expenditures does not include transportation, food service, student body
activities, community services, capital outlay, debt service or expenses
incurred for nonresident students.
(7)(a) “Resident pupil”
means any pupil:
(A) Whose legal school
residence is within the boundaries of a school district reporting the pupil, if
the district is legally responsible for the education of the pupil, except that
“resident pupil” does not include a pupil who pays tuition or for whom the
parent pays tuition or for whom the district does not pay tuition for placement
outside the district; or
(B) Whose legal
residence is not within the boundaries of the district reporting the pupil but
attends school in the district with the written consent of the affected school
district boards.
(b) A pupil shall not be
considered to be a resident pupil under paragraph (a)(A)
of this subsection if the pupil is attending school in another school district
pursuant to a contract under ORS 339.125 and in the prior year was considered
to be a resident pupil in another school district under paragraph (a)(B) of
this subsection. The pupil shall continue to be considered a resident of
another school district under paragraph (a)(B) of this
subsection.
(c) A pupil shall not be
considered to be a resident pupil under paragraph (a)(B)
of this subsection if the pupil is attending school in a school district
pursuant to an agreement with another school district under ORS 339.133 and in
the prior year was considered to be a resident pupil under paragraph (a)(A) of
this subsection because the pupil was attending school in another school
district pursuant to a contract under ORS 339.125. The pupil shall continue to
be considered a resident pupil under paragraph (a)(A)
of this subsection.
(d) “Resident pupil” includes
a pupil admitted to a school district under ORS 339.115 (7).
(8) “Standard school”
means a school meeting the standards set by the rules of the State Board of
Education.
(9) “Tax” and “taxes”
includes all taxes on property, excluding exempt bonded indebtedness, as those
terms are defined in ORS 310.140.
SECTION 12. ORS 327.008, as amended by section 6a, chapter
803, Oregon Laws 2005, is amended to read:
327.008. (1) There is established a State School Fund in the General
Fund. The fund shall consist of moneys appropriated by the Legislative Assembly
and moneys transferred from the Education Stability Fund. The State School Fund
is continuously appropriated to the Department of Education for the purposes of
ORS 327.006 to 327.077, 327.095, 327.099, 327.101, 327.125, 327.137, 327.348, [327.355, 327.357, 327.360,] 336.575,
336.580, 336.635, 342.173, 343.243, 343.533 and 343.961.
(2) There shall be
apportioned from the State School Fund to each school district a State School
Fund grant, consisting of the positive amount equal to a general purpose grant
and a facility grant and a transportation grant and a high cost disabilities
grant minus local revenue, computed as provided in ORS 327.013.
(3) There shall be
apportioned from the State School Fund to each education service district a
State School Fund grant as calculated under ORS 327.019.
(4) All figures used in
the determination of the distribution of the State School Fund shall be
estimates for the same year as the distribution occurs, unless otherwise
specified.
(5) Numbers of students
in average daily membership used in the distribution formula shall be the
numbers as of June of the year of distribution.
(6) A school district
may not use the portion of the State School Fund grant that is attributable to
the facility grant for capital construction costs.
(7) The total amount of
the State School Fund that is distributed as facility grants may not exceed $25
million in any biennium. If the total amount to be distributed as facility
grants exceeds this limitation, the Department of Education shall prorate the
amount of funds available for facility grants among those school districts that
qualified for a facility grant.
(8) Each fiscal year,
the Department of Education shall transfer the amount of $12 million from the
State School Fund to the High Cost Disabilities Account established in ORS
327.348.
[(9) Each fiscal year, the Department of Education shall transfer the
amount of $2.5 million from the
SECTION 13. ORS 327.019, as amended by section 8 of this
2007 Act, is amended to read:
327.019. (1) As used in this section:
(a) “Education service
district extended ADMw” means the sum of the extended ADMw of the component
school districts of the education service district as computed under ORS
327.013.
(b) “Local revenues of
an education service district” means 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 state-managed forestlands under ORS
530.115 (1)(b) and (c); and
(D) 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.
(2) Each fiscal year,
the Superintendent of Public Instruction shall calculate a State School Fund
grant for each education service district as provided in this section.
(3)(a) Each fiscal year,
the superintendent shall calculate the total amount appropriated or allocated
to the State School Fund and available for distribution to school districts,
education service districts and programs + total amount of local revenues of
all school districts, computed as provided in ORS 327.013, + total amount of
local revenues of all education service districts. The superintendent may not
include in the calculation under this paragraph amounts recovered by the
Department of Education from the State School Fund under ORS 343.243.
(b) The superintendent
shall multiply the amount calculated under paragraph (a) of this subsection by
95.25 percent.
(c) Based on the amount
calculated under paragraph (b) of this subsection, the superintendent shall
calculate a funding percentage to distribute as nearly as practicable under ORS
327.006 to 327.133[,] and
327.348[, 327.355, 327.357 and 327.360]
the total amount calculated under paragraph (b) of this subsection as school
district general purpose grants, facility grants, high cost disabilities grants
and transportation grants to school districts.
(d) Based on the funding
percentage calculated under paragraph (c) of this subsection, the
superintendent shall calculate the general purpose grant, facility grant, transportation grant and high cost disabilities grant
amounts for each school district.
(4) The general services
grant for an education service district shall equal the higher of:
(a) The total amount
calculated under subsection (3)(d) of this section for
the component school districts of the education service district ´ (4.75 :SPLIT 95.25); or
(b) $1
million.
(5) Subject to
subsection (6) of this section, the State School Fund grant for an education
service district = general services grant :MINUS local
revenues of the education service district.
(6)(a) After completing
the calculations under subsections (2) to (5) of this section, the
Superintendent of Public Instruction shall apportion from the State School Fund
to each education service district an amount = (funding percentage ´ general services grant) − local revenues of the education service
district.
(b) The funding
percentage used in paragraph (a) of this subsection shall be calculated by the
superintendent to distribute as nearly as practicable the total amount
available for distribution to education service districts from the State School
Fund for each fiscal year.
(7) Notwithstanding
subsections (5) and (6) of this section:
(a) The State School
Fund grant of an education service district may not be less than zero; and
(b) The State School
Fund grant of an education service district shall be in an amount that, when
combined with the local revenues of the education service district, equals $1
million or more.
(8) An education service
district shall distribute to its component school districts any amount of local
revenues of the education service district that is greater than the general
services grant. The amount that each component school district receives under this
subsection shall be prorated based on the district extended ADMw of each school
district.
SECTION 14. ORS 327.125 is amended to read:
327.125. The
Superintendent of Public Instruction shall administer the provisions of ORS
327.006 to 327.133, 327.348[, 327.355,
327.357, 327.360] and 327.731. The State Board of Education shall adopt all
necessary rules not inconsistent with ORS 327.006 to 327.133, 327.348[, 327.355, 327.357, 327.360]
and 327.731 to carry into effect the provisions of those statutes.
SECTION 15. ORS 327.137 is amended to read:
327.137. Every common or
union high school district shall file a copy of its audit statement with the
Department of Education within six months of the end of the fiscal year for
which the audit is required. If the audit report, as submitted to the district,
fails to provide the detail necessary for the computation required in the
administration of ORS 327.006 to 327.133, 327.348, [327.355, 327.357, 327.360,] 327.731, 328.542 and 530.115 and this
section, the district shall submit the necessary information on forms provided
by the department within the time prescribed for filing the audit in this
section. Any district failing to file a copy of its report under this section
or ORS 327.133 shall not receive any payments from the State School Fund until
such reports are filed.
SECTION 16. ORS 339.129 is amended to read:
339.129. (1) A school
district shall provide or cause to be provided appropriate education for
children placed in a local or regional correctional facility located in the
school district. The education may be provided by the school district or an
education service district.
(2) The school district
may claim State School Fund reimbursement under ORS 327.006 to 327.133,
327.348[, 327.355, 327.357, 327.360]
and 327.731 for each child who is in a local or regional correctional facility.
(3) A local or regional
correctional facility shall notify the school district within which the
facility is located of the name and date of birth of each school-age child placed
in the facility, including a child with a disability under the age of 22 years
who may be eligible for special education. The notice shall be in writing and
shall be given within five business days of the child’s placement in the
facility.
(4) The local or
regional correctional facility shall allow the school district and education
service district to have safe and reasonable access to children placed in that
facility for whom the school district is required to provide education.
(5) As used in this
section:
(a) “Local correctional
facility” means a local correctional facility as defined in ORS 169.005.
(b) “Regional
correctional facility” means a regional correctional facility as defined in ORS
169.620.
SECTION 17. ORS 340.045 is amended to read:
340.045. (1) An eligible
student enrolled in an eligible post-secondary course at an eligible
post-secondary institution pursuant to ORS 340.030 shall continue to be
considered a resident pupil of the student’s school district for purposes of
calculation of the State School Fund grant under ORS 327.006 to 327.133,
327.348[, 327.355, 327.357, 327.360]
and 327.731.
(2) A school district
shall negotiate a financial agreement with any eligible post-secondary
institution that accepts a student for enrollment in an eligible post-secondary
course pursuant to ORS 340.030 for the payment of actual tuition, fees and
other required instructional costs associated with the enrollment of the
student in eligible post-secondary courses.
(3)(a) The amount of
each school district’s general purpose grant per extended ADMw as calculated
under ORS 327.013 shall be determined each fiscal year by the Department of
Education and made available to all school districts and, upon request, to any
eligible post-secondary institution.
(b) Each fiscal year, a
school district shall expend per student participating in the Expanded Options
Program a minimum of 50 percent of the school district’s general purpose grant
per extended ADMw. Expenditures that qualify under this paragraph include
amounts expended on tuition, fees, textbooks, equipment and materials required
for an eligible post-secondary course.
(c) A school district
may request a waiver from the Superintendent of Public Instruction or the
superintendent’s designee of the requirements of paragraph (b) of this
subsection. The superintendent or the superintendent’s designee shall grant the
waiver if:
(A) Compliance with the
requirements of paragraph (b) of this subsection would cause the school
district extreme financial distress; or
(B) The school district
offers dual credit technical preparation programs, such as two-plus-two
programs, advanced placement or International Baccalaureate programs and other
accelerated college credit programs, and:
(i) The programs offered
by the school district serve all qualified applicants; and
(ii) There are no
charges to at-risk students.
(4) In addition to any
financial agreement entered into under subsection (2) of this section, the
resident school district of the eligible student shall enter into an agreement
with an eligible post-secondary institution that accepts a student for
enrollment in an eligible post-secondary course that is a nontuition course or
noncredit course pursuant to ORS 340.030 for the payment of the actual
instructional costs associated with the student’s attending the eligible
post-secondary course at the institution.
(5) Nothing in this
section shall prohibit an eligible post-secondary institution from receiving
additional state funding that may be available under any other law.
SECTION 18. ORS 327.355, 327.357 and 327.360 are
repealed.
SECTION 19. The amendments to ORS 327.006, 327.008,
327.019, 327.125, 327.137, 339.129 and 340.045 by sections 11 to 17 of this
2007 Act and the repeal of ORS 327.355, 327.357 and 327.360 by section 18 of
this 2007 Act become operative on June 30, 2012.
SECTION 20. This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 2007 Act takes effect July 1, 2007.
Approved by the Governor July 31, 2007
Filed in the office of Secretary of State July 31, 2007
Effective date July 31, 2007
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