Bill Text: OR HB2280 | 2011 | Regular Session | Introduced

Oregon House Bill 2280 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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-Introduced.html



     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1331

                         House Bill 2280

Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Committee on
  Education)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Expands scope of audits of best business practices of education
districts to include performance audits.
  Removes discretion of education districts to volunteer for
audits.
  Allows State Board of Education to determine percentage of
expenses of audit that should be paid by education district and
by Department of Education.
  Allows Secretary of State to audit best business practices of
education districts without entering into contract with
Department of Education.

                        A BILL FOR AN ACT
Relating to audits of education districts; amending ORS 297.210,
  326.131, 326.133 and 326.136.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 326.131 is amended to read:
  326.131. As used in ORS 326.133 and 326.136:
  (1) 'Business practices' means:
  (a) The process of providing transportation, food service,
grounds maintenance, building and systems maintenance, new
construction, purchasing and contracting;   { - or - }
  (b) Financial practices  { - . - }  { + ; or
  (c) Performance audits, as defined in ORS 297.070. + }
  (2) 'District' means a school district as defined in ORS
332.002 and an education service district as defined in ORS
334.003.
  SECTION 2. ORS 326.133 is amended to read:
  326.133. (1) The Department of Education, in consultation with
the District Best Business Practices Advisory Committee, shall
establish a system for auditing the business practices of
districts. The department shall develop a list of best business
practices to use for the district audits.
    { - (2) Only those districts that volunteer for the audit
will be audited under this section. - }
   { +  (2) Based on the method of selecting districts for an
audit that is developed as provided by ORS 326.136 (3)(b), any
district may be the subject of an audit conducted as provided by
this section. + }

  (3) The department shall contract with the Secretary of State
to audit districts based on the list of best business practices.
 { +  The State Board of Education may determine by rule what
percentage of expenses of an audit should be borne by the
department and what percentage of expenses of an audit should be
borne by a district. + }
  (4) The secretary shall report the results of the audit
  { - first - }  to the Governor, the State Board of Education
and the district that was the subject of the audit.
 { - Then - }   { + After making the reports required by this
subsection, + } the secretary may post the results of the audit
on the Internet.
  (5) The department shall monitor district responses to the
recommendations made in the audit. The department shall report to
the  { + State + } Board  { + of Education + } on the district
responses and make further recommendations if necessary.
  SECTION 3. ORS 326.136 is amended to read:
  326.136. (1) There is established the District Best Business
Practices Advisory Committee. The advisory committee shall
consist of:
  (a) One member appointed by the President of the Senate from
among the members of the Senate;
  (b) One member appointed by the Speaker of the House of
Representatives from among the members of the House of
Representatives; and
  (c) The following members appointed by the Superintendent of
Public Instruction:
  (A) One member who is a representative of district school
boards;
  (B) One member who is a representative of district
administrators;
  (C) One member who is a representative of district teachers;
  (D) One member who is employed by a district as a business
manager;
  (E) One member who is a member of a board of directors of an
education service district; and
  (F) One member who is a representative of district classified
employees.
  (2) In addition to the members appointed under subsection (1)
of this section, the superintendent may appoint additional
members who have special expertise in district business
practices.
  (3) The advisory committee shall advise the Department of
Education on the development of a system for auditing the
business practices of districts under ORS 326.133, including:
  (a) The designation of best business practices of districts;
  (b) The method of selecting districts   { - that volunteer - }
for an audit;
  (c) The interpretation and understanding of audit results; and
  (d) Monitoring and reporting the district responses to the
results of the audits.
  (4) A majority of the members of the advisory committee
constitutes a quorum for the transaction of business.
  (5) The advisory committee shall meet at times and places
specified by the call of the chairperson or of a majority of the
members of the advisory committee.
  (6) Official action by the advisory committee requires the
approval of a majority of the members of the advisory committee.
  (7) The advisory committee shall elect one of its members to
serve as chairperson.
  (8) The term of office of each member is two years, but a
member serves at the pleasure of the appointing authority. If
there is a vacancy for any cause, the appointing authority shall
make an appointment to become immediately effective.
  (9) The department shall provide staff support to the advisory
committee.
  (10) Members of the advisory committee who are not members of
the Legislative Assembly are not entitled to compensation, but
may be reimbursed for actual and necessary travel and other
expenses incurred by them in the performance of their official
duties in the manner and amounts provided for in ORS 292.495.
Claims for expenses incurred in performing functions of the
advisory committee shall be paid out of funds appropriated to the
department for that purpose.
  (11) All agencies of state government, as defined in ORS
174.111, and all districts are directed to assist the advisory
committee in the performance of its duties and, to the extent
permitted by laws relating to confidentiality, to furnish such
information and advice as the members of the advisory committee
consider necessary to perform their duties.
  SECTION 4. ORS 297.210 is amended to read:
  297.210. (1)(a) The Secretary of State, as State Auditor, shall
have the accounts and financial affairs of state departments,
boards, commissions, institutions and state-aided institutions
and agencies of the state reviewed or audited as the Secretary of
State considers advisable or necessary.
  (b) The Secretary of State, as State Auditor, may conduct
audits of the business practices of school districts and
education service districts { + :
  (A) + } Pursuant to a contract with the Department of
Education { + , as + } authorized by ORS 326.133  { - . - }
 { + ; or
  (B) As provided by rules adopted by the Secretary of State. + }
  (c) The Secretary of State may subpoena witnesses, require the
production of books and papers and rendering of reports in such
manner and form as the Secretary of State requires and may do all
things necessary to secure a full and thorough investigation.
The Secretary of State shall report, in writing, to the Governor.
The report shall include a copy of the report on each audit.
  (2) 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.
  (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.
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