Bill Text: OR HB2280 | 2011 | Regular Session | Enrolled
Bill Title: Relating to audits of education districts; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2011-08-02 - Chapter 647, (2011 Laws): Effective date August 2, 2011. [HB2280 Detail]
Download: Oregon-2011-HB2280-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2280
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Education)
CHAPTER ................
AN ACT
Relating to audits of education districts; creating new
provisions; amending ORS 297.210 and 297.405; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1)(a) Based on factors identified by the State
Board of Education by rule, the Department of Education may
initiate a financial audit or a performance audit of a school
district or an education service district.
(b) Prior to initiating an audit, the Department of Education
shall:
(A) Give notice to the school district or the education service
district of the department's intent to initiate the audit; and
(B) Provide the school district or the education service
district with the opportunity to provide to the department any
information related to the subject of the audit.
(c) Following the review of any information provided under
paragraph (b) of this subsection, the department may:
(A) Decline to proceed with the audit; or
(B) Cause the audit to be conducted.
(2) For the purpose of causing an audit to be conducted as
authorized by this section, the department may enter into a
contract with:
(a) The Secretary of State in accordance with ORS 297.210; or
(b) If the Secretary of State is unable or unwilling to conduct
the audit, a private entity.
(3)(a) If the Secretary of State conducts the audit, the school
district or education service district may be charged for a
portion of the costs incurred for the audit as provided by ORS
297.210.
(b) If a private entity conducts an audit, the Department of
Education may charge the school district or education service
district for a portion of the costs incurred for the audit.
(4) A copy of an audit conducted as provided by this section
must be forwarded to the Department of Education and to any other
entity identified by the department in accordance with rules
adopted by the State Board of Education. + }
SECTION 2. ORS 297.210 is amended to read:
297.210. (1)(a) The Secretary of State, as State Auditor, shall
have the accounts and financial affairs of state departments,
boards, commissions, institutions and state-aided institutions
Enrolled House Bill 2280 (HB 2280-A) Page 1
and agencies of the state reviewed or audited as the Secretary of
State considers advisable or necessary.
{ + (b) The Secretary of State, as State Auditor, may conduct
performance audits of school districts and education service
districts. For audits conducted under this paragraph:
(A) The Secretary of State shall identify by rule factors and
standards by which the secretary will determine whether to
initiate an audit as authorized under this paragraph or to enter
into a contract with the Department of Education to conduct an
audit as provided by section 1 of this 2011 Act.
(B) Prior to initiating an audit, the Secretary of State shall:
(i) Give notice to the school district or the education service
district of the secretary's intent to initiate the audit; and
(ii) Provide the school district or the education service
district with the opportunity to provide to the secretary any
information related to the subject of the audit.
(C) Following the review of any information provided under
subparagraph (B) of this paragraph, the Secretary of State may:
(i) Decline to proceed with the audit; or
(ii) Cause the audit to be conducted.
(D) The Secretary of State may charge a school district or an
education service district for a portion of the costs incurred
for an audit authorized by this paragraph. Amounts charged as
provided by this subparagraph shall be in lieu of any amounts
that may be charged as provided by ORS 297.230. + }
{ - (b) - } { + (c) + } The Secretary of State, as State
Auditor, may conduct audits of the business practices of school
districts and education service districts pursuant to a contract
with the Department of Education authorized by ORS 326.133.
{ - (c) - } { + (d) + } The Secretary of State may subpoena
witnesses, require the production of books and papers and
rendering of reports in such manner and form as the Secretary of
State requires and may do all things necessary to secure a full
and thorough investigation.
{ + (e) + } The Secretary of State shall report, in writing,
to the Governor. The report shall include a copy of the report on
each audit.
{ + (f) In addition to the report described in paragraph (e)
of this subsection, the Secretary of State shall provide a report
to a school district board or the board of directors of an
education service district following an audit conducted as
provided by paragraph (b) of this subsection. + }
(2) The Secretary of State may audit or review any institution
or department of the state government at any time the executive
head of the institution or department, for any reason, retires
from the head's office or position. The secretary need not
conduct an audit or review under this subsection if:
(a) The institution or department has been the subject of an
audit or review of financial controls within the six months
immediately preceding the retirement of the executive head of the
institution or department; or
(b) The secretary has not received a report within the 12
months immediately preceding the retirement of the executive head
of the institution or department indicating that the executive
head of the institution or department was unable or unwilling to
follow state law, rules, policies or procedures.
(3) The Secretary of State shall employ auditors upon such
terms and for such compensation as the Secretary of State
determines are advantageous and advisable.
Enrolled House Bill 2280 (HB 2280-A) Page 2
(4) If a person fails to comply with any subpoena issued under
subsection (1) of this section, a judge of the circuit court of
any county, on application of the Secretary of State, shall
compel obedience by proceedings for contempt as in the case of
disobedience of the requirements of a subpoena issued from the
circuit court.
SECTION 3. ORS 297.405 is amended to read:
297.405. As used in ORS 297.020, 297.230, 297.405 to 297.740
and 297.990:
(1) 'Accountants' means all accountants whose names are
included in the roster prepared and maintained by the Oregon
Board of Accountancy as required by ORS 297.670.
(2) 'Accounts' means all books, papers, files, letters and
records of any nature or in any form used in conducting the
affairs of the municipal corporation or in recording the
transactions thereof.
(3) 'Board' means the Oregon Board of Accountancy.
(4) 'Fiscal affairs' means and includes all activities of any
nature giving rise to or resulting from financial transactions,
including compliance with legal requirements applicable to the
operation of a municipal corporation.
(5) 'Municipal corporation' means a:
(a) City;
(b) County;
(c) Special district;
{ + (d) School district or an education service district; + }
{ - (d) - } { + (e) + } Corporation, except a municipal
corporation established pursuant to ORS 441.525 to 441.595, upon
which is conferred powers of the state for the purpose of local
government; or
{ - (e) - } { + (f) + } Public corporation, including a
cooperative body formed between municipal corporations.
(6) 'Public corporation' means a corporation the operation of
which is subject to control by local government or its officers
and which, at least in part, is organized to serve a public
purpose of, and receives public funds or other support having
monetary value from, such government.
SECTION 4. { + 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. + }
----------
Enrolled House Bill 2280 (HB 2280-A) Page 3
Passed by House June 14, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 20, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2280 (HB 2280-A) Page 4
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2280 (HB 2280-A) Page 5
