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 909
Senate Bill 71
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 Secretary of State Bill
Bradbury)
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.
Allows Secretary of State to conduct performance audits of
school districts, education service districts, public charter
schools and private alternative education programs. Directs that
payment for audits be made from State School Fund.
Directs secretary to establish advisory committee to provide
advice and assistance on administration of audits.
Sunsets provisions June 30, 2018.
A BILL FOR AN ACT
Relating to audits of providers of education; creating new
provisions; and amending ORS 297.210, 297.230, 327.008 and
327.019.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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
performance audits of school districts, education service
districts, public charter schools and private alternative
education programs that have entered into a contract with a
district school board.
(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 2. ORS 297.210, as amended by section 1 of this 2007
Act, 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
performance audits of school districts, education service
districts, public charter schools and private alternative
education programs that have entered into a contract with a
district school board. - }
{ - (c) - } { + (b) + } 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 3. { + The amendments to ORS 297.210 by section 2 of
this 2007 Act become operative on June 30, 2018. + }
SECTION 4. ORS 297.230 is amended to read:
297.230. (1) The Division of Audits shall estimate in advance
the expenses that it will incur during the biennium in carrying
out the provisions of ORS 297.030, 297.120 and 297.210 { - , - }
and shall charge officers, departments, boards and commissions of
state government and other public bodies for their share of
{ - such - } { + the + } expenses for periods within the
biennium and in sufficient amounts to provide reasonable cash
operating requirements for the Division of Audits within the
biennial period. Each officer, department, board or commission or
other public body shall pay { + the charge + } to the credit of
the Division of Audits Account { - such charge - } as an
administrative expense from funds or appropriations available to
it in the same manner as other claims against the state or public
body are paid.
{ + (2) Notwithstanding subsection (1) of this section, for
purposes of carrying out performance audits of school districts,
education service districts, public charter schools and private
alternative education programs under ORS 297.210, the Division of
Audits shall estimate in advance the expenses that it will incur
during the biennium in carrying out the provisions of ORS 297.210
(1)(b) and shall charge the State School Fund for the expenses
for periods within the biennium and in sufficient amounts to
provide reasonable cash operating requirements for the Division
of Audits within the biennial period. The Department of Education
shall pay the charge to the credit of the Division of Audits
Account as an administrative expense from the State School
Fund. + }
{ - (2) - } { + (3) + } Payments authorized under this
section shall be consistent with ORS 171.580 and 171.585. The
Division of Audits shall report to the Joint Legislative Audit
Committee established under ORS 171.580 when estimated expenses
for an audit authorized under { - subsection (1) - } { +
subsections (1) and (2) + } of this section exceed the estimated
expenses for a biennium.
{ - (3) - } { + (4) + } All moneys received from the
various state departments, boards, commissions, institutions and
state-aided institutions and agencies of the state in the payment
of the costs of audits and reviews under this section and ORS
297.210 shall be credited to the Division of Audits Account.
SECTION 5. ORS 297.230, as amended by section 4 of this 2007
Act, is amended to read:
297.230. (1) The Division of Audits shall estimate in advance
the expenses that it will incur during the biennium in carrying
out the provisions of ORS 297.030, 297.120 and 297.210 and shall
charge officers, departments, boards and commissions of state
government and other public bodies for their share of the
expenses for periods within the biennium and in sufficient
amounts to provide reasonable cash operating requirements for the
Division of Audits within the biennial period. Each officer,
department, board or commission or other public body shall pay
the charge to the credit of the Division of Audits Account as an
administrative expense from funds or appropriations available to
it in the same manner as other claims against the state or public
body are paid.
{ - (2) Notwithstanding subsection (1) of this section, for
purposes of carrying out performance audits of school districts,
education service districts, public charter schools and private
alternative education programs under ORS 297.210, the Division of
Audits shall estimate in advance the expenses that it will incur
during the biennium in carrying out the provisions of ORS 297.210
(1)(b) and shall charge the State School Fund for the expenses
for periods within the biennium and in sufficient amounts to
provide reasonable cash operating requirements for the Division
of Audits within the biennial period. The Department of Education
shall pay the charge to the credit of the Division of Audits
Account as an administrative expense from the State School
Fund. - }
{ - (3) - } { + (2) + } Payments authorized under this
section shall be consistent with ORS 171.580 and 171.585. The
Division of Audits shall report to the Joint Legislative Audit
Committee established under ORS 171.580 when estimated expenses
for an audit authorized under { - subsections (1) and (2) - }
{ + subsection (1) + } of this section exceed the estimated
expenses for a biennium.
{ - (4) - } { + (3) + } All moneys received from the
various state departments, boards, commissions, institutions and
state-aided institutions and agencies of the state in the payment
of the costs of audits and reviews under this section and ORS
297.210 shall be credited to the Division of Audits Account.
SECTION 6. { + The amendments to ORS 297.230 by section 5 of
this 2007 Act become operative on June 30, 2018. + }
SECTION 7. 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 { + 297.210, 297.230, + } 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 State School Fund to
the Small School District Supplement Fund established in ORS
327.360.
SECTION 8. ORS 327.008, as amended by section 6a, chapter 803,
Oregon Laws 2005, and section 7 of this 2007 Act, 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 { - 297.210, 297.230, - } 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 State School Fund to
the Small School District Supplement Fund established in ORS
327.360.
SECTION 9. { + The amendments to ORS 327.008 by section 8 of
this 2007 Act become operative on June 30, 2018. + }
SECTION 10. 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 { + or
amounts paid to the Division of Audits Account under ORS
297.230 + }.
(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) Total amount calculated under subsection (3)(d) of this
section for the component school districts of the education
service district X (4.75 : 95.25); or
(b) $950,000.
(5) Subject to subsection (6) of this section, the State School
Fund grant for an education service district = general services
grant - 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 X 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,
the State School Fund grant of an education service district may
not be less than zero.
(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 11. ORS 327.019, as amended by section 10 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 { - or
amounts paid to the Division of Audits Account under ORS
297.230 - } .
(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) Total amount calculated under subsection (3)(d) of this
section for the component school districts of the education
service district X (4.75 : 95.25); or
(b) $950,000.
(5) Subject to subsection (6) of this section, the State School
Fund grant for an education service district = general services
grant - 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 X 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,
the State School Fund grant of an education service district may
not be less than zero.
(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 12. { + The amendments to ORS 327.019 by section 11 of
this 2007 Act become operative on June 30, 2018. + }
SECTION 13. { + (1) The Secretary of State shall establish an
advisory committee to provide advice and assistance to the
secretary on the administration of performance audits of school
districts, education service districts, public charter schools
and private alternative education programs under ORS 297.210.
(2) The secretary shall appoint to the committee a
representative from each of the following:
(a) The Oregon School Boards Association;
(b) The Confederation of Oregon School Administrators or school
business managers;
(c) The Oregon Education Association;
(d) The Oregon School Employees Association; and
(e) The Department of Education.
(3) The President of the Senate shall appoint one member of the
committee from among the members of the Senate.
(4) The Speaker of the House of Representatives shall appoint
one member of the committee from among the members of the House
of Representatives.
(5) The secretary shall seek the advice of the committee on the
proposed plans of the secretary to conduct performance audits,
including the scope, methodology and criteria used in the
performance audits. + }
SECTION 14. { + Section 13 of this 2007 Act is repealed on
June 30, 2018. + }
SECTION 15. { + The amendments to ORS 327.008 and 327.019 by
sections 7 and 10 of this 2007 Act affect State School Fund
distributions commencing with the 2007-2008 distribution. + }
SECTION 16. { + The amendments to ORS 327.008 and 327.019 by
sections 8 and 11 of this 2007 Act affect State School Fund
distributions commencing with the 2018-2019 distribution. + }
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