74th OREGON LEGISLATIVE ASSEMBLY--2007 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 1500
A-Engrossed
Senate Bill 47
Ordered by the Senate February 13
Including Senate Amendments dated February 13
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senate Commission on
Educational Excellence)
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.
Directs Department of Education to establish system for
{ - reviewing - } { + auditing + } business practices of
school districts { + and education service districts + }.
Establishes { - Efficiency Review Advisory Panel - }
{ + District Best Business Practices Advisory Committee + } to
provide advice to department on { - school district reviews - }
{ + development of system + }. { - Directs department to
appoint efficiency review teams. - }
{ + Specifies that only districts that volunteer for business
practices audit will be audited. Allows Secretary of State to
conduct audits of business practices of districts pursuant to
contract with department. + }
Allows department to use moneys from State School Fund for
{ - reviews - } { + audits + }.
Declares emergency, effective July 1, 2007.
A BILL FOR AN ACT
Relating to school finance; creating new provisions; amending ORS
297.210; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 2 and 3 of this 2007 Act:
(1) 'Business practices' means:
(a) The process of providing transportation, food service,
grounds maintenance, building and systems maintenance, new
construction, purchasing and contracting; or
(b) Financial practices.
(2) 'District' means a school district as defined in ORS
332.002 and an education service district as defined in ORS
334.003. + }
SECTION 2. { + (1) The Department of Education, in
consultation with the District Best Business Practices Advisory
Committee, shall establish a system for auditing the business
practices of districts. The department shall develop a list of
best business practices to use for the district audits.
(2) Only those districts that volunteer for the audit will be
audited under this section.
(3) The department shall contract with the Secretary of State
to audit districts based on the list of best business practices.
(4) The secretary shall report the results of the audit first
to the Governor, the State Board of Education and the district
that was the subject of the audit. Then the secretary may post
the results of the audit on the Internet.
(5) The department shall monitor district responses to the
recommendations made in the audit. The department shall report to
the board on the district responses and make further
recommendations if necessary. + }
SECTION 3. { + (1) There is established the District Best
Business Practices Advisory Committee. The advisory committee
shall consist of:
(a) One member appointed by the President of the Senate from
among the members of the Senate;
(b) One member appointed by the Speaker of the House of
Representatives from among the members of the House of
Representatives; and
(c) The following members appointed by the Superintendent of
Public Instruction:
(A) One member selected from a list of nominees submitted by
the Oregon School Boards Association;
(B) One member selected from a list of nominees submitted by
the Confederation of Oregon School Administrators;
(C) One member selected from a list of nominees submitted by
the Oregon Education Association;
(D) One member selected from a list of nominees submitted by
the Oregon Association of School Business Officials; and
(E) One member selected from a list of nominees submitted by
the Oregon Association of Education Service Districts.
(2) In addition to the members appointed under subsection (1)
of this section, the superintendent may appoint additional
members who have special expertise in district business
practices.
(3) The advisory committee shall advise the Department of
Education on the development of a system for auditing the
business practices of districts under section 2 of this 2007 Act,
including:
(a) The designation of best business practices of districts;
(b) The method of selecting districts that volunteer for an
audit;
(c) The interpretation and understanding of audit results; and
(d) Monitoring and reporting the district responses to the
results of the audits.
(4) A majority of the members of the advisory committee
constitutes a quorum for the transaction of business.
(5) The advisory committee shall meet at times and places
specified by the call of the chairperson or of a majority of the
members of the advisory committee.
(6) Official action by the advisory committee requires the
approval of a majority of the members of the advisory committee.
(7) The advisory committee shall elect one of its members to
serve as chairperson.
(8) The term of office of each member is two years, but a
member serves at the pleasure of the appointing authority. If
there is a vacancy for any cause, the appointing authority shall
make an appointment to become immediately effective.
(9) The department shall provide staff support to the advisory
committee.
(10) Members of the advisory committee who are not members of
the Legislative Assembly are not entitled to compensation, but
may be reimbursed for actual and necessary travel and other
expenses incurred by them in the performance of their official
duties in the manner and amounts provided for in ORS 292.495.
Claims for expenses incurred in performing functions of the
advisory committee shall be paid out of funds appropriated to the
department for that purpose.
(11) All agencies of state government, as defined in ORS
174.111, and all districts are directed to assist the advisory
committee in the performance of its duties and, to the extent
permitted by laws relating to confidentiality, to furnish such
information and advice as the members of the advisory committee
consider necessary to perform their duties. + }
SECTION 4. ORS 297.210 is amended to read:
297.210. (1) { + (a) + } The Secretary of State, as State
Auditor, shall have the accounts and financial affairs of state
departments, boards, commissions, institutions and state-aided
institutions and agencies of the state reviewed or audited as the
Secretary of State considers advisable or necessary.
{ + (b) The Secretary of State, as State Auditor, may conduct
audits of the business practices of school districts and
education service districts pursuant to a contract with the
Department of Education authorized by section 2 of this 2007 Act.
(c) + } The Secretary of State may subpoena witnesses, require
the production of books and papers and rendering of reports in
such manner and form as the Secretary of State requires and may
do all things necessary to secure a full and thorough
investigation. The Secretary of State shall report, in writing,
to the Governor. The report shall include a copy of the report
on each audit.
(2) An audit or review shall be made of any institution or
department of the state government at any time the executive head
of the institution or department, for any reason, retires from
the head's office or position.
(3) The Secretary of State shall employ auditors upon such
terms and for such compensation as the Secretary of State
determines are advantageous and advisable.
(4) If a person fails to comply with any subpoena issued under
subsection (1) of this section, a judge of the circuit court of
any county, on application of the Secretary of State, shall
compel obedience by proceedings for contempt as in the case of
disobedience of the requirements of a subpoena issued from the
circuit court.
SECTION 5. { + Notwithstanding ORS 327.008, each biennium the
Department of Education may expend up to $1 million from the
State School Fund for the administration of sections 2 and 3 of
this 2007 Act. + }
SECTION 6. { + 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. + }
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