Chapter 705
Oregon Laws 2011
AN ACT
SB 250
Relating to
education service districts; creating new provisions; amending ORS 184.483,
294.447, 327.008, 327.019, 327.297, 334.003, 334.095, 334.125, 334.127,
334.175, 334.177, 334.217, 334.225, 334.240, 342.121 and 757.612; appropriating
money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Sections 2 and 3 of
this 2011 Act are added to and made a part of ORS chapter 334.
SECTION 2. (1) Notwithstanding ORS
334.010 and 334.020, one or more component school districts of an education
service district may withdraw from the education service district if the
component school district is located in:
(a) A region described in ORS 334.020
(1)(a), (b), (c) or (p); or
(b) Baker County.
(2) A school district board may choose
to withdraw a school district from an education service district as provided in
subsection (1) of this section by an affirmative vote of two-thirds of the
members of the school district board.
(3)(a) A school district board that
chooses to withdraw a school district from the education service district must
submit a notice of intent to withdraw to the board of directors of the
education service district no later than November 1 of the year prior to the year
in which the school district plans to withdraw from the education service
district.
(b) A school district board that
submitted a notice of intent to withdraw as provided by paragraph (a) of this
subsection must submit a notice of withdrawal to the board of directors of the
education service district no later than March 1 of the year in which the
school district plans to withdraw from the education service district.
(c) Within 60 days of receiving the
notice of withdrawal under paragraph (b) of this subsection, the board of
directors of the education service district shall issue an order that
recognizes the withdrawal of the school district from the education service
district.
(4) The withdrawal of a school
district from an education service district becomes effective on July 1 after
the board of directors of the education service district issues the order
described in subsection (3) of this section.
SECTION 3. (1) A school district
board that withdrew a school district from an education service district as
provided in section 2 of this 2011 Act may choose to rejoin the school district
to the education service district.
(2) A school district board that
chooses to rejoin a school district to an education service district as
provided in subsection (1) of this section may rejoin by an affirmative vote of
a two-thirds of the members of the board. A vote described in this subsection
must occur no later than November 1 of the year prior to the year in which the
school district board plans to rejoin the school district to the education
service district.
(3) The school district board shall
notify the board of directors of the education service district no later than
November 1 of the year prior to the year in which the school district board
plans to rejoin the school district to the education service district. Within
60 days of receiving the notice, the board of directors of the education
service district shall issue an order that recognizes the rejoining of a school
district to the education service district.
(4) The rejoining of a school district
to an education service district becomes effective on July 1 after the board of
directors of the education service district issues the order described in
subsection (3) of this section.
SECTION 4. ORS 334.003 is amended to
read:
334.003. For purposes of this chapter:
(1) “Component school district” means
a common school district or a union high school district that:
(a) Is
located within the territory of an education service district[.]; and
(b) Is not withdrawn from the
education service district as provided in section 2 of this 2011 Act.
(2) “Education service district” means
a district created under ORS 334.010 that provides regional educational
services to component school districts.
(3) “Joint school district” means a
common school district or a union high school district located within the
territory of more than one education service district.
SECTION 5. ORS 334.095 is amended to
read:
334.095. (1) The education service
district board shall declare the office of director vacant upon the happening
of any of the following:
(a) When an incumbent dies or resigns;
(b) When an incumbent is removed from
office or the election thereto has been declared void by the judgment of any
court;
(c) When an incumbent ceases to be a
resident of a school district that is a component school district of the
education service district;
(d) Subject to the provision of
subsection (2) of this section, when an incumbent ceases to be a resident of
the zone from which nominated;
(e) When an incumbent ceases to
discharge the duties of office for two consecutive months unless prevented
therefrom by sickness or other unavoidable cause; or
(f) When an incumbent is recalled.
(2) A director nominated from a zone
who changes permanent residence from one zone to another zone in which another
director resides shall continue to serve as director until the next regular
election when a successor shall be elected to serve for the remainder of the
unexpired term.
(3) A director guilty of misfeasance
or malfeasance in office, by the appropriate proceeding, may be removed from
office by a court of competent jurisdiction.
(4) Members may be recalled in the
manner provided in ORS 249.865 to 249.877. If the member was elected by a zone,
the recall petition shall be signed by electors from that zone and electors
from the zone are the only electors eligible to vote in the recall election. If
the member was elected at large, the recall petition shall be signed by
electors from the district and electors from the district are eligible to vote
in the recall election.
SECTION 6. ORS 334.125 is amended to
read:
334.125. (1) The education service
district is a body corporate.
(2) The education service district
board is authorized to transact all business coming within the jurisdiction of
the education service district and may sue and be sued.
(3) The education service district
board shall perform all duties required by law, including but not limited to:
(a) Distribution of such school funds
as it is empowered to apportion;
(b) Conduct of audits;
(c) Duties as district boundary board;
(d) Budget and tax levying duties,
including the levying of taxes under ORS 280.060;
(e) Contracting a bonded indebtedness
and levying direct ad valorem taxes on all taxable property within the
education service district in the manner that component school districts are
authorized to issue bonds and levy taxes under ORS 328.205 to 328.304 and other
laws applicable to the issuance of bonds and levying of taxes by school
districts; and
(f) Creating a county education bond
district under ORS 328.304 from a county within the district.
(4)(a) In addition to its
duties under subsection (3) of this section, an education service district
board:
(A) May
provide services required by the local service plan developed pursuant to ORS
334.175 [and];
(B) Except as provided by subparagraph
(C) of this paragraph, may provide funds to a
component school [districts] district
to provide services required by the local service plan in lieu of [those school districts] the component
school district receiving services from the education service district[.];
(C) Shall provide funds in the manner
described in paragraph (b) of this subsection to a component school district to
provide services required by the local service plan in lieu of the component
school district receiving services from the education service district if:
(i) The school district received funds
under subparagraph (B) of this paragraph for the 2010-2011 fiscal year; and
(ii) The school district requests that
the funds be provided as required by this subparagraph;
(D) Shall provide funds as specified
in ORS 327.019 (9) to a school district located within the territory of the
education service district that has withdrawn from the education service
district as provided in section 2 of this 2011 Act; and
(E) For the purpose of providing
services consistent with the local service plan, may enter into contracts with
school districts that have withdrawn from the education service district as
provided in section 2 of this 2011 Act or that are located outside the
territory of the education service district.
(b) If an education service district
board is required to provide funds to a school district under paragraph (a)(C)
of this subsection, the education service district board shall provide the
funds as a percentage of the funds available to the education service district
under ORS 334.177 that is at least equal to the lesser of:
(A) The percentage that the education
service district board provided to the school district in the 2010-2011 fiscal
year; or
(B) The percentage requested by the
school district, as provided by paragraph (a)(C) of this subsection.
(5) The education service district
board may employ and fix the compensation of such personnel as it considers
necessary for carrying out duties of the board.
(6) In carrying out its duties, the
education service district board:
(a) May locate, buy, accept by gift or
lease such land, buildings and facilities as may be required for district
purposes. Leases authorized by this section may be for a term of up to 30 years
and include lease-purchase agreements whereunder the district may acquire
ownership of the leased property.
(b) May acquire personal property by a
lease-purchase agreement or contract of purchase for a term exceeding one year.
A lease-purchase agreement is one in which the rent payable by the district is
expressly agreed to have been established to reflect the savings resulting from
the exemption from taxation, and the district is entitled to ownership of the
property at a nominal or other price which is stated or determinable by the
terms of the agreement and was not intended to reflect the true value of the
property.
(c) May lease property or sell and
convey property of the district as the board considers unnecessary to its
purposes.
(d) May purchase relocatable
structures in installment transactions in which deferred installments of the
purchase price are payable over not more than 10 years from the date of delivery
of the property to the district and are secured by a security interest in the
property. The transactions may take the form of, but are not limited to,
lease-purchase agreements.
(e) May accept money or property
donated for the use or benefit of the district and use the money or property
for the purpose for which it was donated.
(7) The education service district
board may adopt rules it considers necessary to carry out the duties of the
board.
(8) The education service district may
contract with public and private entities for service delivery.
(9)(a) The education service district
shall work cooperatively with component school districts and review
periodically with component school districts the operations of component school
districts and shall submit to the component school districts plans for
operations that achieve economies and efficiencies through consolidation of
various operations of all or some of the districts. The education service
district and its component school districts shall submit an annual report on
the effectiveness of the consolidation of operations to the State Board of
Education.
(b) As used in this subsection, “operations”
means services involving transportation, payroll, student records, auditing,
legal services, insurance, printing, investment and other similar services.
SECTION 7. ORS 334.125, as amended by
section 6 of this 2011 Act, is amended to read:
334.125. (1) The education service
district is a body corporate.
(2) The education service district
board is authorized to transact all business coming within the jurisdiction of
the education service district and may sue and be sued.
(3) The education service district
board shall perform all duties required by law, including but not limited to:
(a) Distribution of such school funds
as it is empowered to apportion;
(b) Conduct of audits;
(c) Duties as district boundary board;
(d) Budget and tax levying duties,
including the levying of taxes under ORS 280.060;
(e) Contracting a bonded indebtedness
and levying direct ad valorem taxes on all taxable property within the
education service district in the manner that component school districts are
authorized to issue bonds and levy taxes under ORS 328.205 to 328.304 and other
laws applicable to the issuance of bonds and levying of taxes by school
districts; and
(f) Creating a county education bond
district under ORS 328.304 from a county within the district.
(4)[(a)] In addition to its duties under subsection (3) of this
section, an education service district board:
[(A)]
(a) May provide services required by the local service plan developed
pursuant to ORS 334.175;
[(B)]
(b) [Except as provided by
subparagraph (C) of this paragraph,] May provide funds to a component
school district to provide services required by the local service plan in lieu
of the component school district receiving services from the education service
district;
[(C)
Shall provide funds in the manner described in paragraph (b) of this subsection
to a component school district to provide services required by the local
service plan in lieu of the component school district receiving services from
the education service district if:]
[(i)
The school district received funds under subparagraph (B) of this paragraph for
the 2010-2011 fiscal year; and]
[(ii)
The school district requests that the funds be provided as required by this
subparagraph;]
[(D)]
(c) Shall provide funds as specified in ORS 327.019 (9) to a school
district located within the territory of the education service district that
has withdrawn from the education service district as provided in section 2 of
this 2011 Act; and
[(E)]
(d) For the purpose of providing services consistent with the local
service plan, may enter into contracts with school districts that have
withdrawn from the education service district as provided in section 2 of this
2011 Act or that are located outside the territory of the education service
district.
[(b)
If an education service district board is required to provide funds to a school
district under paragraph (a)(C) of this subsection, the education service
district board shall provide the funds as a percentage of the funds available
to the education service district under ORS 334.177 that is at least equal to
the lesser of:]
[(A)
The percentage that the education service district board provided to the school
district in the 2010-2011 fiscal year; or]
[(B)
The percentage requested by the school district, as provided by paragraph
(a)(C) of this subsection.]
(5) The education service district
board may employ and fix the compensation of such personnel as it considers
necessary for carrying out duties of the board.
(6) In carrying out its duties, the
education service district board:
(a) May locate, buy, accept by gift or
lease such land, buildings and facilities as may be required for district
purposes. Leases authorized by this section may be for a term of up to 30 years
and include lease-purchase agreements whereunder the district may acquire
ownership of the leased property.
(b) May acquire personal property by a
lease-purchase agreement or contract of purchase for a term exceeding one year.
A lease-purchase agreement is one in which the rent payable by the district is
expressly agreed to have been established to reflect the savings resulting from
the exemption from taxation, and the district is entitled to ownership of the
property at a nominal or other price which is stated or determinable by the
terms of the agreement and was not intended to reflect the true value of the
property.
(c) May lease property or sell and
convey property of the district as the board considers unnecessary to its
purposes.
(d) May purchase relocatable
structures in installment transactions in which deferred installments of the
purchase price are payable over not more than 10 years from the date of
delivery of the property to the district and are secured by a security interest
in the property. The transactions may take the form of, but are not limited to,
lease-purchase agreements.
(e) May accept money or property
donated for the use or benefit of the district and use the money or property
for the purpose for which it was donated.
(7) The education service district
board may adopt rules it considers necessary to carry out the duties of the
board.
(8) The education service district may
contract with public and private entities for service delivery.
(9)(a) The education service district
shall work cooperatively with component school districts and review
periodically with component school districts the operations of component school
districts and shall submit to the component school districts plans for
operations that achieve economies and efficiencies through consolidation of
various operations of all or some of the districts. The education service
district and its component school districts shall submit an annual report on
the effectiveness of the consolidation of operations to the State Board of
Education.
(b) As used in this subsection, “operations”
means services involving transportation, payroll, student records, auditing,
legal services, insurance, printing, investment and other similar services.
SECTION 8. The amendments to ORS
334.125 by section 7 of this 2011 Act become operative on July 1, 2012.
SECTION 9. ORS 334.127 is amended to
read:
334.127. (1) Whenever an
education service district ceases to exist, its real property shall pass to the
successor district, which is authorized to treat [such] the property in the same manner as [its] did the predecessor district
[did].
(2) Whenever a school district
withdraws from an education service district as provided in section 2 of this
2011 Act, the school district and education service district shall determine
the disposition of any real property of the education service district that is
located within the boundaries of the school district. If the school district
and the education service district are unable to agree on how to dispose of the
real property, the education service district shall retain the property.
SECTION 10. ORS 334.175 is amended to
read:
334.175. (1) An education service
district shall provide regionalized core services to component school
districts. The goals of these services are to:
(a) Assist component school districts
in meeting the requirements of state and federal law;
(b) Improve student learning;
(c) Enhance the quality of instruction
provided to students;
[(d)
Provide professional development to component school district employees;]
[(e)]
(d) Enable component school districts and the students who attend
schools in those districts to have equitable access to resources; and
[(f)]
(e) Maximize operational and fiscal efficiencies for component school
districts.
(2) The services provided by an
education service district shall be provided according to a local service plan
developed by the education service district and component school districts. The
education service district and component school districts shall develop the
local service plan to meet the goals specified in subsection (1) of this
section. The local service plan must include services in at least the following
areas:
(a) Programs for children with special
needs, including but not limited to special education services[,] and services for at-risk
students [and professional development
for employees who provide those services].
(b) Technology support for component
school districts and the individual technology plans of those districts,
including but not limited to technology infrastructure services, data services,
instructional technology services[,] and
distance learning [and professional
development for employees who provide those services].
(c) School improvement services for
component school districts, including but not limited to:
(A) Services designed to support
component school districts in meeting the requirements of state and federal
law;
(B) Services designed to allow the
education service district to participate in and facilitate a review of the
state and federal standards related to the provision of a quality education by
component school districts;
(C) Services designed to support and
facilitate continuous school improvement planning;
(D) Services designed to address
schoolwide behavior and climate issues; and
(E) Services designed to support
career and technical education. [;
and]
[(F)
Professional development for employees who provide the services described in
this paragraph.]
(d) Administrative and support
services for component school districts, including but not limited to services
designed to consolidate component school district business functions, liaison
services between the Department of Education and component school districts and
registration of children being taught by private teachers, parents or legal
guardians pursuant to ORS 339.035.
(e) Other services that an education
service district is required to provide by state or federal law, including but
not limited to services required under ORS 339.005 to 339.090.
(3) In addition to the services
specified in subsection (2) of this section, a local service plan may include
other services that are designed to meet regional needs.
(4) A local service plan shall also
contain annual performance measures for the education service district.
(5) A local service plan must:
(a) Be adopted by the board of the
education service district.
(b) After being adopted by the board
of the education service district, be approved on or before March 1 by
resolution of two-thirds of the component school districts that are a part of
the education service district and that have at least a majority of the pupils
included in the average daily membership of the education service district, as
determined by the reports of such school districts for the preceding year,
enrolled in the schools of the school districts.
(6) Notwithstanding the process for
approval and adoption required by subsection (5) of this section, if the
component school districts approve an amendment to a local service plan
pursuant to subsection (5)(b) of this section, the board of an education
service district may amend a local service plan that has been previously
adopted by the board and approved by the component school districts. An
amendment to a local service plan may be done at any time.
(7) If a component school district
determines that a local service plan, or the provision of services under a
local service plan, does not meet the service needs of the component school
district, the component school district may contract with a public entity for
the provision of services.
[(7)]
(8) An education service district may provide the services required by
the local service plan directly through the staff of the district. In addition,
an education service district may provide services required by the local
service plan through the operation of a public school, a public charter school
pursuant to ORS chapter 338, an alternative school or a preschool.
[(8)]
(9) An education service district may provide the services required by
the local service plan in cooperation with another education service district
or with a school district. In addition, an education service district may
contract with a public or private entity for the provision of services.
SECTION 11. ORS 334.177 is amended to
read:
334.177. (1) As used in this section, “local
revenues of an education service district” has the meaning given that term in
ORS 327.019 but does not include any local revenues distributed [to component school districts] under ORS
327.019 (8).
(2) An education service district
board shall expend at least 90 percent of all amounts received from the State
School Fund and at least 90 percent of all amounts considered to be local
revenues of an education service district on services or programs that have
been approved by the component school districts of the education service
district through the resolution process described in ORS 334.175.
(3) An education service district
board shall expend 100 percent of all amounts received from the School
Improvement Fund on services or programs that have been approved by the
component school districts of the education service district through the
resolution process described in ORS 334.175.
(4) The expenditure requirements of
this section apply only to amounts retained by the education service district
after making any distributions required under ORS 327.019 (9).
SECTION 12. ORS 334.240 is amended to
read:
334.240. (1) Except as provided in
subsection (2) of this section, the education service district board shall
be subject in all respects to [the Local
Budget Law (ORS 294.305 to 294.565)] ORS 294.305 to 294.565, except
that in addition to other qualifications, members of the budget committee who
are not members of the education service district board shall be members of
component school district boards within the education service district or shall
be designees of a school district board.
(2) Notwithstanding ORS 294.336 and
294.341, a majority of the members of the budget committee of an education
service district must consist of members of the component school district
boards or designees of a school district board. The budget committee may meet
to conduct business if the education service district board is unable to fill
all of the positions on the budget committee.
(3) The [board of the education service district] budget committee
shall prepare [and adopt] a budget
for the operational and administrative expenses of the education service
district. The budget shall include amounts necessary to provide services
required by the local service plan of the district developed under ORS 334.175.
The budget must be adopted by the board of the education service district.
(4) The board of the education service
district shall ensure that an annual audit of the accounts of the education
service district is prepared in accordance with the Municipal Audit Law, as
provided in ORS 297.405 to 297.555 and 297.990.
SECTION 13. 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 located within the territory 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 and the Office of Regional Educational Services + total amount
of local revenues of all school districts, computed as provided in ORS 327.011,
+ total amount of local revenues of all education service districts. The
superintendent may not include in the calculation under this paragraph amounts
received 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] 95.5 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)(a) The general services
grant for an education service district shall equal the higher of:
[(a)]
(A) The total amount calculated under subsection (3)(d) of this section
for the [component] school districts located
within the territory of the education service district ´ ([4.75] 4.5 :SPLIT [95.25] 95.5); or
[(b)]
(B) $1 million if the education service district received a general
services grant of $1 million for the 2010-2011 school year.
(b) Notwithstanding paragraph (a)
of this subsection and only for State School Fund distributions made for the
first school year after two or more education service districts join together,
if an education service district received a general services grant as provided
by paragraph (a)(B) of this subsection prior to the education service district
joining together with one or more other education service districts to form a
new education service district:
(A) The general services grant for the
new education service district shall be calculated for each component education
service district as though the component education service districts had not
joined together to form a new education service district; and
(B) A component education service
district that received $1 million as provided by paragraph (a)(B) of this
subsection shall be entitled to receive $1 million under the calculation
provided by this paragraph.
(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 located within the territory of the education service
district 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] the school district
as calculated under ORS 327.013.
(9)(a) An education service
district shall distribute to a school district that is located within the
territory of the education service district but that has withdrawn from the
education service district as provided in section 2 of this 2011 Act the
amounts received by the education service district as a general services grant
and from the School Improvement Fund.
(b) The amounts that a school district
receives under this subsection:
(A) Shall be prorated based on the
district extended ADMw of the school district as calculated under ORS 327.013;
(B) Shall equal 90 percent of the
school district’s prorated share, as calculated under subparagraph (A) of this
paragraph; and
(C) May be used to pay for any
expenses incurred in providing services described in ORS 334.175 (2) to the
students of the school district by:
(i) The school district;
(ii) The education service district
from which the school district withdrew;
(iii) An education service district
that is not the education service district from which the school district
withdrew; or
(iv) Any other public entity with
which the school district has entered into a contract to provide the services.
SECTION 14. The amendments to ORS
327.019 by section 13 of this 2011 Act apply to State School Fund distributions
commencing with the 2011-2012 distribution.
SECTION 15. ORS 327.019, as amended
by section 13, chapter 846, Oregon Laws 2007, section 4, chapter 439, Oregon
Laws 2009, and section 11, chapter 698, Oregon Laws 2009, 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 located within the territory 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 and the Office of Regional Educational Services + total amount
of local revenues of all school districts, computed as provided in ORS 327.011,
+ total amount of local revenues of all education service districts. The
superintendent may not include in the calculation under this paragraph amounts
received 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] 95.5 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 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)(a) The general services
grant for an education service district shall equal the higher of:
[(a)]
(A) The total amount calculated under subsection (3)(d) of this section
for the [component] school districts located
within the territory of the education service district ´ ([4.75] 4.5 :SPLIT [95.25] 95.5); or
[(b)]
(B) $1 million if the education service district received a general
services grant of $1 million for the 2010-2011 school year.
(b) Notwithstanding paragraph (a)
of this subsection and only for State School Fund distributions made for the
first school year after two or more education service districts join together,
if an education service district received a general services grant as provided
by paragraph (a)(B) of this subsection prior to the education service district
joining together with one or more other education service districts to form a
new education service district:
(A) The general services grant for the
new education service district shall be calculated for each component education
service district as though the component education service districts had not
joined together to form a new education service district; and
(B) A component education service
district that received $1 million as provided by paragraph (a)(B) of this
subsection shall be entitled to receive $1 million under the calculation
provided by this paragraph.
(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 located within the territory of the education service
district 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] the school district
as calculated under ORS 327.013.
(9)(a) An education service
district shall distribute to a school district that is located within the
territory of the education service district but that has withdrawn from the
education service district as provided in section 2 of this 2011 Act the
amounts received by the education service district as a general services grant
and from the School Improvement Fund.
(b) The amounts that a school district
receives under this subsection:
(A) Shall be prorated based on the
district extended ADMw of the school district as calculated under ORS 327.013;
(B) Shall equal 90 percent of the
school district’s prorated share, as calculated under subparagraph (A) of this
paragraph; and
(C) May be used to pay for any
expenses incurred in providing services described in ORS 334.175 (2) to the
students of the school district by:
(i) The school district;
(ii) The education service district
from which the school district withdrew;
(iii) An education service district
that is not the education service district from which the school district
withdrew; or
(iv) Any other public entity with
which the school district has entered into a contract to provide the services.
SECTION 16. The amendments to ORS
327.019 by section 15 of this 2011 Act apply to State School Fund distributions
commencing with the 2012-2013 distribution.
SECTION 17. ORS 294.447 is amended to
read:
294.447. (1) As used in this section,
“extended ADMw” means:
(a) For a school district, the
district extended ADMw as calculated under ORS 327.013.
(b) For an education service district,
the sum of the extended ADMw of the [component]
school districts located within the territory of the education service
district.
(2) Notwithstanding ORS 294.445, a
school district or education service district that uses the accrual basis
method of accounting may include as accrued revenues in the budget and
financial statement of the school district or education service district, for
any fiscal year, an amount from the next fiscal year that is to be received in
the next fiscal year. The amount accrued under this section may not be greater
than the amount calculated under subsection (3)(b) or (c) of this section
multiplied by the extended ADMw of the school district or education service district.
(3)(a) For each fiscal year, the
Department of Education shall calculate the amount available in the State
School Fund for grants and distributions to school districts and the amount
available for grants and distributions to education service districts under ORS
327.008, 327.013 and 327.019 based on the appropriations and allocations made
to the State School Fund for that fiscal year by the Legislative Assembly in
regular session. The department may not include in the amount calculated to be
available for school districts and education service districts under
this paragraph the amounts received by the Youth Corrections Education Program
and the Juvenile Detention Education Program under ORS 327.026 from the State
School Fund or amounts transferred to the Regional Educational Services
Account as provided by section 34 of this 2011 Act.
(b) The department shall calculate for
school districts an amount equal to (the amount calculated under paragraph (a)
of this subsection for school districts ¸
12) ¸the total
statewide extended ADMw of all school districts.
(c) The department shall calculate for
education service districts an amount equal to (the amount calculated under
paragraph (a) of this subsection for education service districts ¸ 12) ¸the
total statewide extended ADMw of all education service districts.
(d) The department may adjust the
calculations under this subsection based on current data for the factors used
to calculate the State School Fund distribution to school districts and
education service districts under ORS 327.008, 327.013 and 327.019.
(e) Notwithstanding paragraph (d) of
this subsection, the department may not adjust the calculation under paragraph
(a) of this subsection based on changes made to the appropriations or
allocations to the State School Fund by the Legislative Assembly in special
session or by rule of the Oregon Department of Administrative Services relating
to allotting funds.
(4) Notwithstanding ORS 294.445, a
community college district or community college service district that uses the
accrual basis method of accounting may include as accrued revenues in the
budget and financial statement of the community college district or community
college service district, for any fiscal year, an amount from the next fiscal
year that is to be received in the next fiscal year. The amount accrued under
this section may not be greater than 25 percent of the amount the community
college district or community college service district received as a Community
College Support Fund grant for the fiscal year for which the revenues are to be
accrued.
SECTION 18. ORS 327.297 is amended to
read:
327.297. (1) In addition to those
moneys distributed through the State School Fund, the Department of Education
shall award grants to school districts, education service districts, the Youth
Corrections Education Program and the Juvenile Detention Education Program for
activities that relate to increases in student achievement, including:
(a) Early childhood support including
establishing, maintaining or expanding quality prekindergarten programs and
full-day kindergarten programs;
(b) Class size reduction with an
emphasis on the reduction of kindergarten through grade three class sizes;
(c) Increases in instructional time
including summer programs and before- and after-school programs;
(d) Mentoring, teacher retention and
professional development;
(e) Remediation, alternative learning
and student retention;
(f) Services to at-risk youth;
(g) Programs to improve a student
achievement gap between student groups identified by culture, poverty, language
and race and other student groups;
(h) Vocational education programs;
(i) Literacy programs;
(j) School library programs; and
(k) Other research-based student
improvement strategies approved by the State Board of Education.
(2)(a) Each school district, each
education service district, the Youth Corrections Education Program and the
Juvenile Detention Education Program may apply to the Department of Education
for a grant.
(b) The department shall review and
approve applications based on criteria established by the State Board of
Education. In establishing the criteria, the State Board of Education shall
consider the recommendations of the Quality Education Commission established
under ORS 327.500.
(c) The applications shall include the
activities to be funded and the goals of the district or program for increases
in student performance. The applications shall become part of the local
district continuous improvement plan described in ORS 329.095.
(3) The Department of Education shall
evaluate the annual progress of each recipient of grant funds under this
section toward the performance targets established by the Quality Education
Commission. The evaluation shall become part of the requirements of the department
for assessing the effectiveness of the district under ORS 329.085, 329.095 and
329.105. The department shall ensure district and program accountability by
providing appropriate assistance, intervening and establishing consequences in
order to support progress toward the performance targets.
(4) Each biennium the Department of
Education shall issue a report to the Legislative Assembly on the grant program
and the results of the grant program.
(5)(a) Notwithstanding ORS 338.155
(9), the Department of Education may not award a grant under this section
directly to a public charter school.
(b) A school district that receives a
grant under this section may transfer a portion of the grant to a public
charter school based on the charter of the school or any other agreement
between the school district and the public charter school.
(c) A public charter school that
receives grant funds under this subsection shall use those funds for the
activities specified in subsection (1) of this section.
(6)(a) The amount of each grant for a
program or school district = the program’s or school district’s ADMw ´ (the
total amount available for distribution to programs and school districts as
grants in each fiscal year ¸
the total ADMw of all programs and school districts that receive a grant).
(b) The amount of each grant for an
education service district = the education service district’s ADMw ´ (the
total amount available for distribution to education service districts as
grants in each fiscal year ¸
the total ADMw of all education service districts that receive a grant).
(c) As used in this subsection, “ADMw”
means:
(A) For a school district, the
extended weighted average daily membership as calculated under ORS 327.013,
338.155 (1) and 338.165 (3);
(B) For the Youth Corrections
Education Program, the average daily membership as defined in ORS 327.006
multiplied by 2.0;
(C) For the Juvenile Detention
Education Program, the average daily membership as defined in ORS 327.006
multiplied by 1.5; and
(D) For an education service district,
the sum of the ADMw of the [component]
school districts located within the territory of the education service
district.
(7) Each district or program shall
deposit the grant amounts it receives under this section in a separate account,
and shall apply amounts in that account to pay for activities described in the
district’s or program’s application.
(8) The State Board of Education may
adopt any rules necessary for the administration of the grant program.
SECTION 19. ORS 757.612 is amended to
read:
757.612. (1) There is established an
annual public purpose expenditure standard for electric companies and Oregon
Community Power to fund new cost-effective local energy conservation, new
market transformation efforts, the above-market costs of new renewable energy
resources and new low-income weatherization. The public purpose expenditure
standard shall be funded by the public purpose charge described in subsection
(2) of this section.
(2)(a) Beginning on the date an
electric company or Oregon Community Power offers direct access to its retail
electricity consumers, except residential electricity consumers, the electric
company or Oregon Community Power shall collect a public purpose charge from
all of the retail electricity consumers located within its service area until
January 1, 2026. Except as provided in paragraph (b) of this subsection, the
public purpose charge shall be equal to three percent of the total revenues
collected by the electric company, Oregon Community Power or the electricity
service supplier from its retail electricity consumers for electricity
services, distribution, ancillary services, metering and billing, transition
charges and other types of costs included in electric rates on July 23, 1999.
(b) For an aluminum plant that
averages more than 100 average megawatts of electricity use per year, beginning
on March 1, 2002, the electric company or Oregon Community Power whose
territory abuts the greatest percentage of the site of the aluminum plant shall
collect from the aluminum company a public purpose charge equal to one percent
of the total revenue from the sale of electricity services to the aluminum
plant from any source.
(3)(a) The Public Utility Commission
shall establish rules implementing the provisions of this section relating to
electric companies and Oregon Community Power.
(b) Subject to paragraph (e) of this
subsection, funds collected by an electric company or Oregon Community Power
through public purpose charges shall be allocated as follows:
(A) Sixty-three percent for new
cost-effective conservation and new market transformation.
(B) Nineteen percent for the
above-market costs of constructing and operating new renewable energy resources
with a nominal electric generating capacity, as defined in ORS 469.300, of 20
megawatts or less.
(C) Thirteen percent for new
low-income weatherization.
(D) Five percent shall be transferred
to the Housing and Community Services Department Electricity Public Purpose
Charge Fund established by ORS 456.587 (1) and used for the purpose of
providing grants as described in ORS 458.625 (2).
(c) The costs of administering
subsections (1) to (6) of this section for an electric company or Oregon
Community Power shall be paid out of the funds collected through public purpose
charges. The commission may require that an electric company or Oregon
Community Power direct funds collected through public purpose charges to the
state agencies responsible for implementing subsections (1) to (6) of this
section in order to pay the costs of administering such responsibilities.
(d) The commission shall direct the
manner in which public purpose charges are collected and spent by an electric
company or Oregon Community Power and may require an electric company or Oregon
Community Power to expend funds through competitive bids or other means
designed to encourage competition, except that funds dedicated for low-income
weatherization shall be directed to the Housing and Community Services
Department as provided in subsection (7) of this section. The commission may
also direct that funds collected by an electric company or Oregon Community
Power through public purpose charges be paid to a nongovernmental entity for
investment in public purposes described in subsection (1) of this section. Notwithstanding
any other provision of this subsection:
(A) At least 80 percent of the funds
allocated for conservation shall be spent within the service area of the
electric company that collected the funds; or
(B) If Oregon Community Power
collected the funds, at least 80 percent of the funds allocated for
conservation shall be spent within the service area of Oregon Community Power.
(e)(A) The first 10 percent of the
funds collected annually by an electric company or Oregon Community Power under
subsection (2) of this section shall be distributed to education service
districts, as described in ORS 334.010, that are located in the service
territory of the electric company or Oregon Community Power. The funds shall be
distributed to individual education service districts according to the weighted
average daily membership (ADMw) of the [component]
school districts located within the territory of the education service
district for the prior fiscal year as calculated under ORS 327.013. The
commission shall establish by rule a methodology for distributing a
proportionate share of funds under this paragraph to education service
districts that are only partially located in the service territory of the
electric company or Oregon Community Power.
(B) An education service district that
receives funds under this paragraph shall use the funds first to pay for energy
audits for school districts located within the education service district. An
education service district may not expend additional funds received under this
paragraph on a school district facility until an energy audit has been
completed for that school district. To the extent practicable, an education
service district shall coordinate with the State Department of Energy and
incorporate federal funding in complying with this paragraph. Following
completion of an energy audit for an individual school district, the education
service district may expend funds received under this paragraph to implement
the energy audit. Once an energy audit has been conducted and completely
implemented for each school district within the education service district, the
education service district may expend funds received under this paragraph for
any of the following purposes:
(i) Conducting energy audits. A school
district shall conduct an energy audit prior to expending funds on any other
purpose authorized under this paragraph unless the school district has
performed an energy audit within the three years immediately prior to receiving
the funds.
(ii) Weatherization and upgrading the
energy efficiency of school district facilities.
(iii) Energy conservation education
programs.
(iv) Purchasing electricity from
environmentally focused sources and investing in renewable energy resources.
(f) The commission may not establish a
different public purpose charge than the public purpose charge described in
subsection (2) of this section.
(g) If the commission directs funds
collected through public purpose charges to a nongovernmental entity, the
entity shall:
(A) Include on the entity’s board of
directors an ex officio member designated by the commission, who shall also
serve on the entity’s nominating committee for filling board vacancies.
(B) Require the entity’s officers and
directors to provide an annual disclosure of economic interest to be filed with
the commission on or prior to April 15 of each calendar year for public review
in a form similar to the statement of economic interest required for public
officials under ORS 244.060.
(C) Require the entity’s officers and
directors to declare actual and potential conflicts of interest at regular
meetings of the entity’s governing body when such conflicts arise, and require
an officer or director to abstain from participating in any discussion or vote
on any item where that officer or director has an actual conflict of interest.
For the purposes of this subparagraph, “actual conflict of interest” and “potential
conflict of interest” have the meanings given those terms in ORS 244.020.
(D) Arrange for an independent auditor
to audit the entity’s financial statements annually, and direct the auditor to
file an audit opinion with the commission for public review.
(E) File with the commission annually
the entity’s budget, action plan and quarterly and annual reports for public
review.
(F) At least once every five years,
contract for an independent management evaluation to review the entity’s
operations, efficiency and effectiveness, and direct the independent reviewer
to file a report with the commission for public review.
(h) The commission may remove from the
board of directors of a nongovernmental entity an officer or director who fails
to provide an annual disclosure of economic interest or declare actual or
potential conflict of interest, as described in paragraph (g)(B) and (C) of this
subsection, in connection with the allocation or expenditure of funds collected
through public purpose charges and directed to the entity.
(4)(a) An electric company that
satisfies its obligations under this section shall have no further obligation
to invest in conservation, new market transformation or new low-income
weatherization or to provide a commercial energy conservation services program
and is not subject to ORS 469.631 to 469.645 and 469.860 to 469.900.
(b) Oregon Community Power, for any
period during which Oregon Community Power collects a public purpose charge
under subsection (2) of this section:
(A) Shall have no other obligation to
invest in conservation, new market transformation or new low-income
weatherization or to provide a commercial energy conservation services program;
and
(B) Is not subject to ORS 469.631 to
469.645 and 469.860 to 469.900.
(5)(a) A retail electricity consumer
that uses more than one average megawatt of electricity at any site in the
prior year shall receive a credit against public purpose charges billed by an
electric company or Oregon Community Power for that site. The amount of the
credit shall be equal to the total amount of qualifying expenditures for new
energy conservation, not to exceed 68 percent of the annual public purpose
charges, and the above-market costs of purchases of new renewable energy
resources incurred by the retail electricity consumer, not to exceed 19 percent
of the annual public purpose charges, less administration costs incurred under
this subsection. The credit may not exceed, on an annual basis, the lesser of:
(A) The amount of the retail
electricity consumer’s qualifying expenditures; or
(B) The portion of the public purpose
charge billed to the retail electricity consumer that is dedicated to new
energy conservation, new market transformation or the above-market costs of new
renewable energy resources.
(b) To obtain a credit under this
subsection, a retail electricity consumer shall file with the State Department
of Energy a description of the proposed conservation project or new renewable
energy resource and a declaration that the retail electricity consumer plans to
incur the qualifying expenditure. The State Department of Energy shall issue a
notice of precertification within 30 days of receipt of the filing, if such
filing is consistent with this subsection. The credit may be taken after a
retail electricity consumer provides a letter from a certified public
accountant to the State Department of Energy verifying that the precertified
qualifying expenditure has been made.
(c) Credits earned by a retail
electricity consumer as a result of qualifying expenditures that are not used
in one year may be carried forward for use in subsequent years.
(d)(A) A retail electricity consumer
that uses more than one average megawatt of electricity at any site in the
prior year may request that the State Department of Energy hire an independent
auditor to assess the potential for conservation investments at the site. If
the independent auditor determines there is no available conservation measure
at the site that would have a simple payback of one to 10 years, the retail
electricity consumer shall be relieved of 54 percent of its payment obligation
for public purpose charges related to the site. If the independent auditor
determines that there are potential conservation measures available at the
site, the retail electricity consumer shall be entitled to a credit against
public purpose charges related to the site equal to 54 percent of the public purpose
charges less the estimated cost of available conservation measures.
(B) A retail electricity consumer
shall be entitled each year to the credit described in this subsection unless a
subsequent independent audit determines that new conservation investment
opportunities are available. The State Department of Energy may require that a
new independent audit be performed on the site to determine whether new
conservation measures are available, provided that the independent audits shall
occur no more than once every two years.
(C) The retail electricity consumer
shall pay the cost of the independent audits described in this subsection.
(6) Electric utilities and retail
electricity consumers shall receive a fair and reasonable credit for the public
purpose expenditures of their energy suppliers. The State Department of Energy
shall adopt rules to determine eligible expenditures and the methodology by
which such credits are accounted for and used. The rules also shall adopt
methods to account for eligible public purpose expenditures made through
consortia or collaborative projects.
(7)(a) In addition to the public
purpose charge provided under subsection (2) of this section, an electric
company or Oregon Community Power shall collect funds for low-income electric
bill payment assistance in an amount determined under paragraph (b) of this
subsection.
(b) The commission shall establish the
amount to be collected by each electric company in calendar year 2008 from
retail electricity consumers served by the company, and the rates to be charged
to retail electricity consumers served by the company, so that the total
anticipated collection for low-income electric bill payment assistance by all
electric companies in calendar year 2008 is $15 million. In calendar year 2009
and subsequent calendar years, the commission may not change the rates
established for retail electricity consumers, but the total amount collected in
a calendar year for low-income electric bill payment assistance may vary based
on electricity usage by retail electricity consumers and changes in the number
of retail electricity consumers in this state. In no event shall a retail
electricity consumer be required to pay more than $500 per month per site for
low-income electric bill payment assistance.
(c) Funds collected by the low-income
electric bill payment assistance charge shall be paid into the Housing and
Community Services Department Low-Income Electric Bill Payment Assistance Fund
established by ORS 456.587 (2). Moneys deposited in the fund under this
paragraph shall be used by the Housing and Community Services Department for
the purpose of funding low-income electric bill payment assistance. The
department’s cost of administering this subsection shall be paid out of funds
collected by the low-income electric bill payment assistance charge. Moneys
deposited in the fund under this paragraph shall be expended solely for
low-income electric bill payment assistance. Funds collected from an electric
company or Oregon Community Power shall be expended in the service area of the
electric company or Oregon Community Power from which the funds are collected.
(d) The Housing and Community Services
Department, in consultation with the federal Advisory Committee on Energy,
shall determine the manner in which funds collected under this subsection will
be allocated by the department to energy assistance program providers for the
purpose of providing low-income bill payment and crisis assistance, including
programs that effectively reduce service disconnections and related costs to
retail electricity consumers and electric utilities. Priority assistance shall
be directed to low-income electricity consumers who are in danger of having
their electricity service disconnected.
(e) Interest on moneys deposited in the
Housing and Community Services Department Low-Income Electric Bill Payment
Assistance Fund established by ORS 456.587 (2) may be used to provide heating
bill payment and crisis assistance to electricity consumers whose primary
source of heat is not electricity.
(f) Notwithstanding ORS 757.310, the
commission may allow an electric company or Oregon Community Power to provide
reduced rates or other payment or crisis assistance or low-income program
assistance to a low-income household eligible for assistance under the federal
Low Income Home Energy Assistance Act of 1981, as amended and in effect on July
23, 1999.
(8) For purposes of this section, “retail
electricity consumers” includes any direct service industrial consumer that
purchases electricity without purchasing distribution services from the
electric utility.
(9) For purposes of this section,
amounts collected by Oregon Community Power through public purpose charges are
not considered moneys received from electric utility operations.
SECTION 20. ORS 184.483 is amended to
read:
184.483. (1) The Oregon Department of
Administrative Services shall develop and make available an Oregon transparency
website. The website shall allow any person to view information that is a
public record and not exempt from disclosure under ORS 192.410 to 192.505,
including but not limited to information described in subsection (3) of this
section.
(2) State agencies and education
service districts, to the extent practicable and subject to laws relating
to confidentiality, when at no additional cost, using existing data and
existing [state agency] resources of
the state agency or education service district and without reallocation of
resources, shall:
(a) Furnish information to the Oregon
transparency website by posting reports and providing links to existing
information system applications in accordance with standards established by the
Oregon Department of Administrative Services; and
(b) Provide the information in the
format and manner required by the Oregon Department of Administrative Services.
(3) To the extent practicable and
subject to laws relating to confidentiality, when at no additional cost, using
existing data and existing [state agency]
resources of the state agency or education service district and without
reallocation of resources, the Oregon transparency website shall contain
information about each state agency and education service district,
including but not limited to:
(a) Annual [state agency] revenues of state agencies and education service
districts;
(b) Annual [state agency] expenditures of state agencies and education
service districts;
(c) Annual [state agency] human resources expenses, including compensation,
of state agencies and education service districts;
(d) Annual [state agency] tax expenditures of state agencies, including,
[where] when possible, the
identity of the recipients of each tax expenditure;
(e) [State agency] Contracting and subcontracting information of
state agencies and education service districts, to the extent allowed by
law;
(f) A prominently placed graphic
representation of the primary funding categories and approximate number of
individuals served by the state agency or the education service district;
(g) A description of the mission,
function and program categories of the state agency or education service
district;
(h) Information about the state agency
from the Oregon Progress Board; [and]
(i) A copy of any audit report issued
by the Secretary of State for the state agency or of any audit reports
issued for the education service district;
(j) The local service plans of the
education service districts;
(k) A copy of each report required by
statute for education service districts; and
(L) A copy of all notices of public
meetings of the education service districts.
(4) In creating, operating, refining
and recommending enhancements to the Oregon transparency website, the Oregon
Department of Administrative Services and the Transparency Oregon Advisory
Commission created in ORS 184.486 shall consider and, to the extent
practicable, adhere to the following principles:
(a) The website must be accessible
without cost and be easy to use;
(b) Information included on the Oregon
transparency website must be presented using plain, easily understandable
language; and
(c) The website should teach users
about how state government [works] and
education service districts work and provide users with the opportunity to
learn something about how state government [raises
and spends] and education service districts raise and spend revenue.
(5) If a state agency or an
education service district is not able to include information described in
this section on the Oregon transparency website because of the lack of
availability of information or cost in acquiring it, the Transparency Oregon
Advisory Commission created in ORS 184.486 shall list the information that is
not included for that state agency or education service district in the
commission’s report to the Legislative Assembly required under ORS 184.486.
SECTION 21. Sections 22 to 26 of
this 2011 Act are added to and made a part of ORS chapter 334.
SECTION 22. (1) As used in this
section:
(a) “Obligations” means all
contractual obligations, employment and service contracts and collective
bargaining agreements.
(b) “Reorganized” means a change in:
(A) The boundaries of an education
service district, including a merger; or
(B) The governance structure of an
education service district.
(2) Employees who are employed by an
education service district that is reorganized and who are employed in duties
that, after the reorganization, are to be performed by the new education
service district shall be considered employees of the new education service
district. The new education service district shall succeed the previous
education service district as party to any employment contracts.
(3) Employees in the new education
service district shall retain any seniority and accumulated sick leave and
vacation leave from the previous education service district.
(4) All real and personal property
belonging to an education service district that is reorganized is considered
property of the new education service district.
(5) All obligations of an education
service district that is reorganized are considered obligations of the new
education service district.
SECTION 23. (1) A school district
that withdraws from an education service district as provided by section 2 of
this 2011 Act and that seeks to fill a vacant position of employment shall
interview persons who:
(a) Were employed by the education
service district prior to the withdrawal of the school district; and
(b) Performed duties similar to the
duties that will be performed in the position that the school district is
seeking to fill.
(2) Nothing in this section requires a
school district to interview a person who had been employed by an education
service district if the school district does not have a similar and vacant
position.
(3) The interview requirement
described in this section does not apply to the superintendent of the education
service district or to any other administrators, as defined in ORS 342.120, of
the education service district.
(4) The interview requirement
described in this section applies only during the 12 calendar months
immediately following the effective date of the withdrawal of the school
district from the education service district.
SECTION 24. If, prior to June 30,
2012, two or more education service districts choose to join together for the
purpose of forming one education service district, the education service
districts:
(1) Are not required to follow the
procedures described in ORS 334.710 and 334.720; and
(2) May join together by having each
education service district that proposes to join together issue an order that
recognizes the joining together of the education service districts.
SECTION 25. (1) No later than
October 1 of each year, the board of directors of an education service district
shall produce an annual report related to the performance and the finances of
the education service district for the previous school year. The purpose of the
report is to provide information to parents, component school districts and the
Department of Education and to improve education service districts through
greater involvement of persons who are interested in the success of education
service districts.
(2) The annual report that is produced
as required by this section must include:
(a) The size and demographics of the
education service district;
(b) The number of students served by
the education service district, identified by school district;
(c) Services provided by the education
service district, and how those services align with the goals described in ORS
334.175 and the local service plan developed for the education service
district;
(d) The number of hours of services
provided by the education service district, identified by category;
(e) The staff of the education service
district, identified by category;
(f) The use of distance learning; and
(g) The education service district’s
revenue and expenditures, including employee salary information.
(3) The board of directors of the
education service district must:
(a) Submit the report produced as
required by this section to:
(A) The component school districts of
the education service district; and
(B) The Department of Education.
(b) Make the report produced as
required by this section available to the public at the administrative offices
of the education service district and on the website for the education service
district.
SECTION 26. Notwithstanding
section 25 of this 2011 Act, the first report required under section 25 of this
2011 Act shall be produced no later than October 1, 2012.
SECTION 27. ORS 342.121 is amended to
read:
342.121. (1) The Teacher Standards and
Practices Commission shall issue licenses to teachers and administrators who
possess the minimum competencies, knowledge and skills to teach and administer
in the public schools of the state.
(2)(a) In addition to a
teaching or administrative license, a person may obtain certification,
indicating a higher degree of competency, knowledge and skill based on work
experience and advanced study, from a professional organization of teachers or
administrators, either on the state or national level. [However,] A teaching certificate or administrative certificate [shall not be] is not required to
teach or administer in a public school of this state.
(b) In addition to holding an
administrative license as a superintendent, a person who is a superintendent of
an education service district shall obtain certification, indicating a higher
degree of competency, knowledge and skill based on work experience and advanced
study, from the commission. The certificate shall be designed to ensure that
the superintendent has knowledge of theories related to change, strategic
planning and financial planning and is capable of formulating
interorganizational cooperation and developing partnerships. The certificate
described in this paragraph is required for a person to be a superintendent of
an education service district of this state.
SECTION 28. ORS 334.225 is amended to
read:
334.225. (1) The education service
district board shall employ a superintendent who must hold an administrative
license as a superintendent and a certificate described in ORS 342.121
(2)(b). The superintendent shall serve as the board’s executive officer,
give an official bond or an irrevocable letter of credit issued by an insured
institution, as defined in ORS 706.008, and have the duties prescribed by the
board and the laws of this state. The board shall fix the term and compensation
of the superintendent, provide office room for the superintendent and allow all
of the superintendent’s necessary traveling expenses.
(2) The education service district
board shall designate the superintendent as the district clerk. The board may
appoint qualified persons as deputies to the superintendent to perform the
duties required of the district clerk by law or by the board.
SECTION 29. (1) The amendments to
ORS 334.225 and 342.121 by sections 27 and 28 of this 2011 Act become operative
on July 1, 2013.
(2) The amendments to ORS 334.225 and
342.121 by sections 27 and 28 of this 2011 Act apply to superintendents of
education service districts hired before, on or after the effective date of this
2011 Act.
SECTION 30. Sections 31 and 32 of
this 2011 Act are added to and made a part of ORS chapter 334.
SECTION 31. (1) The Office of
Regional Educational Services is established for the purposes of coordinating
the efforts of and providing leadership for regional educational service
delivery systems. The office shall function under the direction and control of
the State Board of Education.
(2)(a) The Director of the Office of
Regional Educational Services shall serve as the administrative officer of the
Office of Regional Educational Services. The Superintendent of Public
Instruction shall select the director.
(b) The director shall perform the
duties, powers and functions of the office under the supervision and subject to
the direction of the Superintendent of Public Instruction.
(3) The office shall:
(a) Establish best practice policies
for the delivery of regional educational services.
(b) Establish benchmarks for education
service districts that encourage improvements and that allow the education
service districts to demonstrate that improvements are being made in the
operation of the education service districts.
(c) Determine the direct cost of
services to school districts that are assessed by education service districts.
(d) Ensure that each education service
district has an annual audit of the accounts of the education service district
prepared in accordance with the Municipal Audit Law, as provided in ORS 297.405
to 297.555 and 297.990, and review the audit.
(e) Recommend to the Superintendent of
Public Instruction any actions to be taken regarding an education service
district if the office has reason to believe that an education service district
is nonstandard as provided by ORS 334.217. A recommended action under this
paragraph may include conducting a performance audit of the education service
district.
(f) Recommend to the Superintendent of
Public Instruction any sanctions to impose on an education service district
that are consistent with ORS 334.217 and recommend any statutory changes
required to impose effective sanctions on education service districts.
(g) Recommend to the Superintendent of
Public Instruction and the State Board of Education any statutory or rule
changes that may improve the operations or administration of education service
districts.
(h) Recommend to the board of
directors of an education service district or to the superintendent of an
education service district any changes that may improve the operations or
administration of the education service district.
(i) Recommend to the Superintendent of
Public Instruction and the State Board of Education any changes in education
service district boundaries that may reduce costs and increase the quality of
services provided by education service districts.
(j) Recommend to the board of
directors of an education service district or to the superintendent of an
education service district any changes in service delivery regions that may
reduce costs and increase the quality of services provided by the education
service district.
(k) Provide training and related
support for boards of directors of education service districts and
superintendents of education service districts.
(L) Gather information regarding the
cost of services within education service districts and across education
service districts, identify unusually high cost services and provide the
gathered information to education service districts, the Superintendent of
Public Instruction and the State Board of Education.
(4) For the purposes of identifying
the best practice policies described in subsection (3)(a) of this section and
the benchmarks described in subsection (3)(b) of this section, the office may:
(a) Conduct an analysis of the
effectiveness of education service districts that are identified by the director;
and
(b) Conduct evaluations of the systems
and procedures of education service districts identified by the director.
(5) The director may enter into
contracts as necessary to perform the duties of the office specified in
subsection (3) of this section.
(6) The State Board of Education, in
collaboration with the Superintendent of Public Instruction and the director,
may adopt any rules necessary for the purposes of this section.
(7) On behalf of the office, the
Department of Education may accept contributions of moneys and assistance from
the United States Government or its agencies or from any other source, public
or private, and agree to conditions placed on the moneys not inconsistent with
the duties of the office. All moneys received by the department under this
subsection shall be deposited into the Regional Educational Services Account
established by section 32 of this 2011 Act to be used for the purposes of
carrying out the duties of the office.
SECTION 32. (1) The Regional
Educational Services Account is established in the State Treasury, separate and
distinct from the General Fund. Interest earned by the Regional Educational
Services Account shall be credited to the account. Except as limited by
subsection (2) of this section, moneys in the account are continuously
appropriated to the Office of Regional Educational Services.
(2) The Office of Regional Educational
Services may expend or otherwise obligate no more than $500,000 per biennium
from the Regional Educational Services Account. The Director of the Office of
Regional Educational Services shall establish a schedule that allows for the
periodic transfer of moneys in the account that are in excess of the moneys
allowed to the Office of Regional Educational Services under this subsection.
Transfers shall be made to the State School Fund for distribution to school
districts as provided by ORS 327.013 and this section.
(3) On June 30 of each odd-numbered
year, all moneys in the account that are unexpended, unobligated and not
subject to any conditions shall transfer to the State School Fund for
distribution to school districts as provided by ORS 327.013 and this section.
(4) For the purpose of distributions
made as provided by this section, the Superintendent of Public Instruction:
(a) May not include any amounts
transferred to the State School Fund under this section when making
calculations described in ORS 327.019 (3)(a).
(b) May not distribute to education
service districts or the Office of Regional Educational Services any moneys transferred
to the State School Fund as provided by this section.
(c) Shall distribute to school
districts any moneys received under this section based on the schedule
described in ORS 327.095.
SECTION 33. Section 34 of this
2011 Act is added to and made a part of ORS 327.006 to 327.133.
SECTION 34. (1) Each fiscal year,
the Superintendent of Public Instruction shall transfer from the State School
Fund to the Regional Educational Services Account established by section 32 of
this 2011 Act the amount calculated as provided by this section.
(2)(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, programs and the Office of Regional Educational
Services + total amount of local revenues of all school districts, computed as
provided in ORS 327.011, + total amount of local revenues of all education
service districts. The superintendent may not include in the calculation under
this paragraph amounts received 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 0.25 percent.
(c) The superintendent shall transfer
the amount calculated under paragraph (b) of this subsection to the Regional
Educational Services Account.
SECTION 35. Section 34 of this
2011 Act applies to State School Fund distributions commencing with the
2011-2012 distribution.
SECTION 36. ORS 327.008 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 327.011 and 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) There shall be apportioned from
the State School Fund the amount to be transferred to the Regional Educational
Services Account as calculated under section 34 of this 2011 Act.
[(4)]
(5) 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)]
(6) 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)]
(7) 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)]
(8) 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)]
(9) Each fiscal year, the Department of Education shall transfer the
amount of $18 million from the State School Fund to the High Cost Disabilities
Account established in ORS 327.348.
[(9)]
(10) 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.
[(10)]
(11) Each fiscal year, the Department of Education may expend up to
$550,000 from the State School Fund for the contract described in ORS 329.488.
The amount distributed to education service districts from the State School
Fund under this section and ORS 327.019 shall be reduced by the amount expended
by the department under this subsection.
[(11)]
(12) Each biennium, the Department of Education may expend up to
$800,000 from the State School Fund for the administration of ORS 326.133 and
326.136.
[(12)]
(13) Each biennium, the Department of Education may expend up to
$350,000 from the State School Fund to provide administration of and support
for the development of talented and gifted education under ORS 343.404.
[(13)]
(14) Each biennium, the Department of Education may expend up to
$150,000 from the State School Fund for the administration of a program to
increase the number of speech-language pathologists and speech-language
pathology assistants under ORS 348.394 to 348.406.
SECTION 37. ORS 327.008, as amended
by section 12, chapter 846, Oregon Laws 2007, section 2, chapter 39, Oregon
Laws 2008, and section 9, chapter 698, Oregon Laws 2009, 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, 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 327.011 and 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) There shall be apportioned from
the State School Fund the amount to be transferred to the Regional Educational
Services Account as calculated under section 34 of this 2011 Act.
[(4)]
(5) 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)]
(6) 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)]
(7) 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)]
(8) 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)]
(9) Each fiscal year, the Department of Education shall transfer the
amount of $18 million from the State School Fund to the High Cost Disabilities
Account established in ORS 327.348.
[(9)]
(10) Each fiscal year, the Department of Education may expend up to
$550,000 from the State School Fund for the contract described in ORS 329.488.
The amount distributed to education service districts from the State School
Fund under this section and ORS 327.019 shall be reduced by the amount expended
by the department under this subsection.
[(10)]
(11) Each biennium, the Department of Education may expend up to
$800,000 from the State School Fund for the administration of ORS 326.133 and
326.136.
[(11)]
(12) Each biennium, the Department of Education may expend up to
$350,000 from the State School Fund to provide administration of and support
for the development of talented and gifted education under ORS 343.404.
[(12)]
(13) Each biennium, the Department of Education may expend up to
$150,000 from the State School Fund for the administration of a program to
increase the number of speech-language pathologists and speech-language
pathology assistants under ORS 348.394 to 348.406.
SECTION 38. ORS 334.217 is amended to
read:
334.217. (1) The State Board of
Education by rule shall establish standards to determine the adequacy of
services and facilities provided by the education service districts. In
establishing such standards, the state board shall consider the most economic
method of providing services and facilities, the quality of the services and
facilities according to the best educational standards, and the needs of the
students.
(2) When the Superintendent of Public
Instruction determines pursuant to rule that an education service district is
nonstandard, the district designated nonstandard shall file a plan to meet
standards over a specified period of time. The Superintendent of Public
Instruction may accept, reject or modify the plan and order the nonstandard
district to comply with the plan as approved by the superintendent. Once a plan
is approved, the district shall be conditionally standard until all
deficiencies are corrected. If a district corrects all deficiencies, the
district shall be designated as standard. The district shall have 180 days from
the date the plan is accepted to make all corrections. After that time, the
Superintendent of Public Instruction may impose sanctions on the
district if the district has not made the necessary corrections.
(3) The state board shall
establish by rule appropriate sanctions for noncompliance. The sanctions may
include:
(a)
Mandatory merger of the nonstandard education service district with a
contiguous education service district that is standard[,];
(b) The
sanctions described in ORS 342.173, if applicable[, or];
(c) The
withholding of funds from the State School Fund[.];
(d) The removal of the superintendent
of the education service district;
(e) The temporary governance of the
education service district by the state board; or
(f) Dissolution of the education
service district.
SECTION 39. This 2011 Act being
necessary for the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2011 Act takes effect on
its passage.
Approved by
the Governor August 2, 2011
Filed in the
office of Secretary of State August 2, 2011
Effective date
August 2, 2011
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