Chapter 847 Oregon Laws 1999

Session Law

AN ACT

HB 2683

Relating to school facilities.

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

SECTION 1. (1) Subject to the terms of the governing instruments and applicable law, a school district may enter into agreements with one or more community foundations or nonprofit corporations to complete school facility projects. School districts may not enter into an agreement under this subsection with a community foundation or nonprofit corporation that has been in existence for less than one year. A school district may transfer to the community foundation or nonprofit corporation the ownership of a school facility for the purpose of completion of a school facility project under this section.

(2) Any agreement between a school district and a community foundation or nonprofit corporation entered into pursuant to subsection (1) of this section shall include:

(a)(A) A requirement that if the school district transfers ownership of a school facility to a community foundation or nonprofit corporation, the community foundation or nonprofit corporation shall transfer the school facility back to the school district for an amount that does not exceed the cost of the school facility project plus 10 percent; and

(B) A requirement that the school district may lease the school facility from the community foundation or nonprofit corporation and that if the school district has paid to the community foundation or nonprofit corporation, through a lease, an amount that equals the cost of the school facility project plus 10 percent, the community foundation or nonprofit corporation shall transfer the school facility back to the school district.

(b) A requirement that any amount received by a community foundation or nonprofit corporation from the school district for a school facility project shall be allocated as follows:

(A) Sixty percent of the amount shall be used to start new school facility projects; and

(B) Forty percent of the amount shall be used for maintenance of existing school facilities.

(c) A requirement that the community foundation or nonprofit corporation use all volunteer labor.

(d) A provision that a community foundation or nonprofit corporation may purchase building materials at reduced cost or use other cost saving measures or community based resources to complete the school facility project.

(e) A requirement that the school facility project shall be completed based on the specifications of the school district.

(f) A requirement that the school facility project shall be completed within three years of the transfer of ownership of the school facility from the school district to the community foundation or nonprofit corporation. If the project is not completed within three years, the ownership of the school facility shall be transferred back to the school district.

(3) The following laws do not apply to a school facility project that is the subject of an agreement that meets the requirements of this section:

(a) ORS 332.155 (6); and

(b) ORS chapter 279.

(4) A school district may enter into an agreement with a community foundation or nonprofit corporation under this section to complete a school facility project only if the school district submitted the question of incurring bonded indebtedness for the school facility project to the electors of the school district in the prior 12 months and the electors of the school district did not approve the contracting of bonded indebtedness.

(5) Any community foundation or nonprofit corporation that does not use all volunteer labor is subject to the provisions of ORS chapter 279.

(6) As used in this section:

(a) "Community foundation" has the meaning given that term in ORS 348.580.

(b) "Nonprofit corporation" means:

(A) A corporation as defined in ORS 65.001; or

(B) A foreign corporation as defined in ORS 65.001.

(c) "School facility project" includes, but is not limited to:

(A) The construction of a new school facility; or

(B) The completion of capital improvements to an existing school facility.

SECTION 2. Section 1 of this 1999 Act is repealed January 1, 2006.

Approved by the Governor July 22, 1999

Filed in the office of Secretary of State July 22, 1999

Effective date October 23, 1999

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