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

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

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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-Amended.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

HA to HB 2280

LC 1331/HB 2280-1

                       HOUSE AMENDMENTS TO
                         HOUSE BILL 2280

                    By COMMITTEE ON EDUCATION

                            April 14

  On page 1 of the printed bill, line 2, after the semicolon
delete the rest of the line and insert 'creating new provisions;
amending ORS 297.210 and 297.405; and declaring an emergency.'.
  Delete lines 4 through 28 and delete pages 2 and 3 and insert:
  '  { +  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 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.
  ' (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. + } ' .
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