Bill Text: OR HB2295 | 2011 | Regular Session | Introduced

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Bill Title: Relating to education; appropriating money.

Sponsorship: Unknown

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2295 Detail]

Download: Oregon-2011-HB2295-Introduced.html

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     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 1559

                         House Bill 2295

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.

  Requires Superintendent of Public Instruction to rate school
performance based on letter grades. Directs State Board of
Education to report to Legislative Assembly on methods of
rewarding school districts with high or improving letter grades.
  Offers parents in schools with letter grade of 'F ' opportunity
to receive scholarship for private school. Creates Opportunity
Scholarship Program Fund. Continuously appropriates moneys in
fund for scholarships to private schools.
  Allows parents of children with disabilities to enroll children
in schools outside of child's resident school district.
Transfers funds in State School Fund from resident school
district to Special Needs Scholarship Program Fund established
for purposes of scholarships. Continuously appropriates moneys in
Special Needs Scholarship Program Fund to Department of Education
for purposes of scholarship program.
  Creates tax credit for contributions to qualified scholarship
granting organization. Authorizes qualified scholarship
organization to grant scholarships to eligible students for
attendance at qualified schools. Sets forth standards for
scholarship granting organizations and qualifying schools.
  Allows initial and continuing teaching license issuance to
persons with approved doctoral degrees, persons who have passed
approved national subject area tests and persons with equivalent
teaching licenses from another state.
  Requires annual assessment of reading ability for students in
grades one through three. Requires school district to retain
student in grade three if student is reading at grade one level
or lower, with certain exceptions. Requires school district to
provide intensive reading program for students not meeting
reading standards.
  Allocates moneys from State School Fund to school districts
whose students receive score of three or higher on advanced
placement examinations. Requires school district to allocate at
least 80 percent of these moneys to certain high schools with
advanced placement students. Requires school districts to pay
bonuses to certain teachers of advanced placement students.

                        A BILL FOR AN ACT

Relating to education; creating new provisions; amending ORS
  327.013, 329.007, 329.085, 329.105, 329.485, 342.136 and
  342.138; and appropriating money.
Be It Enacted by the People of the State of Oregon:

                               { +
SCHOOL PERFORMANCE LETTER GRADES + }

  SECTION 1. ORS 329.105 is amended to read:
  329.105. (1) The Superintendent of Public Instruction shall
collect data and produce annual school district and school
performance reports containing information on student
performance, student behavior and school characteristics.
 { + The superintendent shall also produce an annual report for
qualifying schools as defined in section 28 of this 2011 Act that
are private schools. + } The purpose of the performance reports
is to provide information to parents and to improve schools
through greater parental involvement.
  (2)(a) In consultation with representatives of parents,
teachers, school district boards and school administrators, the
State Board of Education shall adopt, by rule, criteria for
  { - identifying outstanding schools, satisfactory schools and
schools in need of improvement. Such criteria shall take into
account student performance, improvement in student performance,
the participation rate of students on the statewide assessments,
student attendance rates and graduation rates. The Superintendent
of Public Instruction, based on the criteria adopted by the State
Board of Education, shall assign a rating to each school that
identifies the school as outstanding, satisfactory or in need of
improvement. - }   { + grading schools. The criteria shall:
  (A) Be based on the following factors:
  (i) For 50 percent of the school's grade, scores on assessments
administered under ORS 329.485 and 329.488;
  (ii) For 25 percent of the school's grade, improvements over
the previous year in student achievement scores on assessments
administered under ORS 329.485 and 329.488; and
  (iii) For 25 percent of the school's grade, improvements over
the previous year in student achievement scores for the lowest
25th percentile of students in the school on mathematics and
English assessments administered under ORS 329.485 and 329.488.
  (B) Allow the Superintendent of Public Instruction to assign a
letter grade to each school so that:
  (i) 'A' means that a school is making excellent progress.
  (ii) 'B' means that a school is making above average progress.
  (iii) 'C' means that a school is making satisfactory progress.
  (iv) 'D' means that a school is making less than satisfactory
progress.
  (v) 'F' means that a school is failing to make progress. + }
  (b) The   { - ratings - }   { + grade + } received by a school
shall be included in the school district and school performance
reports.
   { +  (c) A school shall not receive a letter grade if the
number of the school's students assessed is fewer than the
minimum sample size necessary, based on accepted professional
practice, for statistical viability. + }
    { - (c) - }   { + (d) + } If a  { + public + } school
 { - is designated as in need of improvement - }  { +  receives a
'D' or 'F' grade + }, the school shall file a school improvement
plan with the superintendent   { - of Public Instruction - }  and
with the school district board.
    { - (d) - }   { + (e) + } The Department of Education shall
work with stakeholders to design and implement an accountability
system of progressive interventions for and provide technical
assistance to  { +  public + } schools and school districts that
do not demonstrate improvement.

   { +  (f) The superintendent shall also publish annually an
aggregated school district grade for all elementary schools,
middle schools, high schools and charter schools within the
district, based upon aggregation of information for each school
within the district. + }
  (3) The Superintendent of Public Instruction shall include in
the school performance reports data for the following areas, for
each school, that are available to the Department of Education
from the most recent school year:
  (a) Enrollment in English as a second language courses under
ORS 336.079;
  (b) Attendance rates;
  (c) School safety, such as expulsions involving weapons in the
school;
  (d) Disaggregated data on students who met or exceeded the
academic content standards established by the board;
  (e) Dropout rates and the number of students who dropped out of
school;
  (f) Parent and community involvement such as volunteer hours;
  (g) The percentage of classes taught by a teacher identified as
highly qualified under rules adopted by the United States
Department of Education; and
  (h) School staff, identified by category.
  (4) The Superintendent of Public Instruction shall include in
the school district performance reports data for the following
areas, for each school district, that are available to the
Department of Education from the most recent school year:
  (a) Resident students who attend a public school in another
school district;
  (b) Facilities used for distance learning;
  (c) Election results of any bond levy proposed to the electors
of the district;
  (d) Expenditures;
  (e) Level of support from the education service district;
  (f) Administrators not assigned to a specific school;
  (g) School district staff, identified by category;
 { - and - }
  (h) Students who are eligible for special education  { - . - }
 { + ; and + }  { +
  (i) A comparison of the school's letter grade to changes in
school funding over the same period. + }
  (5) The Superintendent of Public Instruction shall notify the
public and the media by January 30 of each year that school
district and school performance reports are available at schools
and school districts and at the Department of Education website
and offices. The superintendent shall also include notice that
copies of school improvement plans and district continuous
improvement plans can be obtained from school and school district
offices. Each school district shall send a copy of the school
district and applicable school performance reports to each parent
of a child enrolled in a public school in the school district.
  SECTION 2.  { + The State Board of Education shall study
methods of rewarding a school district with additional access to
state school funding and greater authority over school programs
under state law when the district earns a letter grade of 'A'
under ORS 329.105 or the school district has improved at least
two letter grades under ORS 329.105. The board shall report the
findings of the study, along with recommended legislation, to the
interim legislative committee with authority over education prior
to July 1, 2012. + }
  SECTION 3.  { + Section 2 of this 2011 Act is repealed on
January 2, 2013. + }

                               { +
PRIVATE SCHOOL SCHOLARSHIPS + }

  SECTION 4.  { + As used in sections 4 to 11 of this 2011 Act:
  (1) 'Parent' means a student's parent or guardian, or a person
in a parental relationship with the student.
  (2) 'Private school' has the meaning given that term in ORS
345.505.
  (3) 'Resident school district' means the school district in
which the student's parent resides pursuant to ORS 339.133 and
339.134. + }
  SECTION 5.  { + A parent of a student qualifies for a
scholarship from the state for the student to enroll in and
attend a private school if:
  (1) The parent has obtained acceptance for admission of the
student to a private school and has notified the Department of
Education and the resident school district of the request for a
scholarship no later than July 1 prior to the school year in
which the parent intends to use the scholarship for the student;
and
  (2) Any of the following has occurred:
  (a) The student has spent the prior school year in attendance
at a public school or public charter school designated with a
performance grade of 'F' under ORS 329.105 for at least two of
the previous four school years;
  (b) During or after the previous school year, the student has
changed residence and is now living within the attendance area of
a public school designated with a performance grade of 'F' under
ORS 329.105 for at least two of the previous four years; or
  (c) The student is entering kindergarten or first grade and
lives within the attendance area of a public school designated
with a performance grade of 'F' under ORS 329.105 for at least
two of the previous four years. + }
  SECTION 6.  { + If the Department of Education determines that
a student qualifies for a scholarship under section 5 of this
2011 Act, the department shall:
  (1) Reduce the amount of funds provided to the resident school
district from the State School Fund under ORS 327.008 by the
amount of the scholarship, which is the amount equivalent to the
payment to the resident school district from all grants
identified by ORS 327.013, and transfer the amount of the
reduction to the Opportunity Scholarship Program Fund established
under section 7 of this 2011 Act; and
  (2) Transfer the amount of the scholarship from the Opportunity
Scholarship Program Fund to the private school. The transfer must
occur in four equal payments no later than September 1, November
1, February 1 and April 1 of each school year. The department may
require verification of continued enrollment by the student at
the private school prior to making the payments to the
school. + }
  SECTION 7.  { + The Opportunity Scholarship Program Fund is
established, separate and distinct from the General Fund.
Interest earned by the Opportunity Scholarship Program Fund shall
be credited to the fund. Moneys received by the Department of
Education under section 6 of this 2011 Act shall be deposited in
the fund and are continuously appropriated to the department for
the purposes of sections 4 to 11 of this 2011 Act. + }
  SECTION 8.  { + (1) A private school may, at the end of a
school year, decline to allow renewal of the scholarship of a
student if the school determines that, for any reason, it cannot
continue to provide appropriate educational services to the
student.
  (2) Unless the private school declines renewal of the
scholarship under subsection (1) of this section, the parent of
the student may annually renew the scholarship provided under
section 6 of this 2011 Act upon informing the Department of
Education, prior to July 1 preceding the subsequent school year,
of the parent's intent to renew the scholarship.

  (3) The Department of Education may adjust the amount of the
scholarship renewed under subsection (2) of this section to
account for changes in the amount of funds provided to the
private school under section 6 of this 2011 Act.
  (4) A private school educating a student who has received a
scholarship under section 6 of this 2011 Act may not refund,
rebate or share the scholarship of the student with a parent or
the student in any manner, and may use the student's scholarship
only for educational purposes. + }
  SECTION 9.  { + (1) A school district containing a public
school or public charter school designated with a performance
grade of ' F' under ORS 329.105 for at least two of the previous
four school years must provide notification on an annual basis to
each parent of a student attending the school of the scholarships
available under section 5 of this 2011 Act. The Department of
Education shall prescribe the form of this notice by rule.
  (2) The resident school district must offer the parent of a
student applying for a scholarship under section 5 of this 2011
Act the opportunity to transfer within the school district to a
school with a performance grade of 'C' or better as determined
under ORS 329.105. The parent is not required to accept this
offer instead of accepting a scholarship under section 5 of this
2011 Act, but may accept the offer of the resident school
district prior to July 1 of a subsequent year in which the
resident school district's school remains with a performance
grade of 'F' as determined under ORS 329.105 for at least two of
the previous four school years. + }
  SECTION 10.  { + A private school receiving a scholarship under
section 6 of this 2011 Act:
  (1) Must satisfy all criteria for registration of private
schools under ORS 345.505 to 345.575.
  (2) Must accept scholarship students on a random and
nonreligious basis without regard to the student's past academic
history. However, the private school may give preference in
accepting applications to siblings of students who have already
been accepted on a random and nonreligious basis.
  (3) Must accept as full tuition and fees the amount of the
scholarship for each student.
  (4) May not compel any student attending the school with a
scholarship to profess a specific ideological belief, to pray or
to worship. + }
  SECTION 11.  { + (1) A student participating in the scholarship
program under sections 4 to 11 of this 2011 Act must remain in
attendance at the private school throughout the school year,
unless excused by the school for illness or other good cause, and
must comply fully with the school's code of conduct.
  (2) The parent of each student participating in the scholarship
program must comply with the private school's parental
involvement requirements, if any, unless excused by the school
for illness or other good cause. + }
  SECTION 12.  { + Sections 4 to 11 of this 2011 Act become
operative on January 1, 2014. + }

                               { +
SCHOLARSHIPS FOR CHILDREN WITH DISABILITIES + }

  SECTION 13.  { + Sections 14 to 22 of this 2011 Act are added
to and made a part of ORS chapter 343. + }
  SECTION 14.  { + As used in sections 14 to 22 of this 2011 Act:
  (1) 'Participating school' means:
  (a) A public school outside of the school district in which the
child with a disability resides; or
  (b) A private school that provides education to children with
disabilities and that has notified the Department of Education of
its intention to participate in the program offered by sections

14 to 22 of this 2011 Act and to comply with the program's
requirements.
  (2) 'Private school' has the meaning given that term in ORS
345.505.
  (3) 'Resident school district' means the school district in
which the child with a disability resides. + }
  SECTION 15.  { + A parent of a child with a disability
qualifies for a scholarship from the state for their child to
enroll in and attend a participating school if:
  (1) The child with a disability has an individualized education
program written by the resident school district;
  (2) The child with a disability has been accepted for admission
at a participating school; and
  (3) The parent has requested the scholarship from the
Department of Education for a school year on or before June 1
preceding the beginning of the school year. + }
  SECTION 16.  { + (1) Upon receipt of an application from a
parent of a child with a disability for a scholarship under
section 15 of this 2011 Act, the Department of Education shall
request:
  (a) A copy of the most recent individualized education program
for the child from the resident school district; and
  (b) An estimate from the resident school district of the
district's estimated cost to educate the child of the parent
requesting the scholarship under section 15 of this 2011 Act
based upon the most recent individualized education program
prepared by the district for the student.
  (2) The resident school district shall provide the information
requested by the Department of Education under subsection (1) of
this section within three business days of the department's
request. + }
  SECTION 17.  { + If the Department of Education determines that
an application submitted under section 15 of this 2011 Act meets
the criteria set forth in section 15 of this 2011 Act, the
department shall:
  (1) Reduce the amount of funds provided to the resident school
district from the State School Fund under ORS 327.008 by the
amount of the scholarship, which shall be based on the estimated
cost of educating the child with a disability in the resident
school district, and transfer that amount to the Special Needs
Scholarship Program Fund established under section 18 of this
2011 Act.
  (2) If the participating school is a public school, transfer
the amount of the scholarship calculated under subsection (1) of
this section from the Special Needs Scholarship Program Fund to
the school district in which the participating school is located.
  (3) If the participating school is a private school, transfer
the amount of the scholarship, minus the amount of the estimated
cost of educating the child with a disability that is derived
from funds provided by the United States Government, from the
Special Needs Scholarship Program Fund to the participating
school.
  (4) Transfer the amount of the estimated cost of educating the
child with a disability that is derived from funds provided by
the United States Government to the United States Government or,
if not required to be reimbursed to the United States Government,
to the State School Fund. + }
  SECTION 18.  { + The Special Needs Scholarship Program Fund is
established, separate and distinct from the General Fund.
Interest earned by the Special Needs Scholarship Program Fund
shall be credited to the fund. Moneys received by the Department
of Education under section 17 of this 2011 Act shall be deposited
in the fund and are continuously appropriated to the department
for the purposes of sections 14 to 22 of this 2011 Act. + }
  SECTION 19.  { + (1) The participating school is not required
to implement the individualized education program prepared by the
resident school district, but may prepare a new individualized
education program for the child with a disability.
  (2) A participating school may, at the end of a school year,
decline to allow renewal of the scholarship of a child with a
disability if the school determines that, for any reason, the
school cannot continue to provide appropriate educational
services to the child.
  (3) Unless the participating school declines renewal of the
scholarship under subsection (2) of this section, the parent of
the child with a disability may annually renew the scholarship
provided under section 15 of this 2011 Act upon informing the
Department of Education, prior to June 1 preceding the subsequent
school year, of the parent's intent to renew the scholarship.
  (4) The department may adjust the amount of the scholarship
renewed under subsection (3) of this section to account for
changing costs to educate the child with a disability. The
department by rule shall develop a methodology for making such
adjustments.
  (5) A participating school may not refund, rebate or share the
scholarship funds of a student with a disability with a parent or
the student in any manner. The participating school must use a
student's scholarship funds only for educational purposes. + }
  SECTION 20.  { + (1) A resident school district must provide
notification on an annual basis to each parent of a student with
a disability of the scholarships available under section 15 of
this 2011 Act. The Department of Education shall prescribe the
form of this notice by rule.
  (2) The resident school district shall provide a participating
school that has admitted a student under sections 14 to 22 of
this 2011 Act with a complete copy of the student's school
records held by the resident school district, subject to
compliance with the federal Family Educational Rights and Privacy
Act (20 U.S.C. 1232g). + }
  SECTION 21.  { + (1) A private school that is a participating
school shall meet all criteria for registration of private
schools under ORS 345.505 to 345.575.
  (2) For the purpose of conducting criminal records checks under
ORS 181.534, a private school that is a participating school
shall send to the Department of Education the fingerprints of
each person described in ORS 326.603 (1)(a), (b) or (c), and any
other necessary information, and shall use the information from
the criminal records check to exclude from employment any person
who might reasonably pose a threat to the safety of students with
disabilities. + }
  SECTION 22.  { + (1) The Department of Education may contract
with one or more qualified researchers who have previous
experience evaluating school choice programs to conduct a study
of the scholarship program authorized under sections 14 to 22 of
this 2011 Act.
  (2) The study must assess:
  (a) The level of satisfaction with the program authorized under
sections 14 to 22 of this 2011 Act for the parents and the
children with disabilities;
  (b) The percentage of students with disabilities who were
victimized because of their disability status at the school
attended in their resident school district compared with the
percentage victimized at the participating school;
  (c) The percentage of students with disabilities who exhibited
behavioral problems at the school attended in their resident
school district compared with the percentage exhibiting
behavioral problems at the participating school;
  (d) The class size experienced by students with disabilities at
the school attended in their resident school district and at the
participating school; and
  (e) The fiscal impact to the state and the resident school
districts.
  (3) The researchers conducting the study shall:
  (a) Apply appropriate analytical and behavioral science
methodologies to ensure public confidence in the study; and
  (b) Protect the identities of participating schools and
students by keeping the schools and students anonymous in all
disaggregated data other than the data provided for the
categories of grade level, gender, race and ethnicity. + }
  SECTION 23.  { + Scholarships awarded under sections 14 to 22
of this 2011 Act are first available for the 2012-2013 school
year. + }

                               { +
TAX CREDIT FOR CONTRIBUTIONS TO EDUCATION + }

  SECTION 24.  { + Sections 25 to 27 of this 2011 Act are added
to and made a part of ORS chapter 315. + }
  SECTION 25.  { + As used in sections 25 to 27 of this 2011 Act:
  (1) 'Educational expenses' means expenses at a qualifying
school for:
  (a) Tuition and fees for educational services.
  (b) Transportation related to educational activities.
  (c) Educational materials, including books, school supplies,
academic lessons, instructional software and academic curricula.
  (d) Costs of participating in evaluation and performance
reporting under ORS 329.085 and 329.105.
  (2) 'Educational scholarship' means a grant from a scholarship
granting organization to an eligible student or a low-income
eligible student to cover part or all of the educational expenses
of the student.
  (3) 'Eligible student' means a student who:
  (a)(A) Is a member of a household with total annual income, for
the year preceding the year in which a student would receive an
educational scholarship, that does not exceed two and one-half
times the income standard used to qualify for a free or
reduced-price lunch under the United States Department of
Agriculture's current Income Eligibility Guidelines; or
  (B) Received an educational scholarship for the previous school
year;
  (b) Is a resident of this state;
  (c) Is five years of age or older but not more than 21 years of
age;
  (d) Has not graduated from high school; and
  (e)(A) Was enrolled in the student's resident school district
in the previous year; or
  (B) Was not enrolled in the student's resident school district
in the previous year, but was eligible to attend a public school
in this state in a preceding academic term or is starting school
in this state for the first time.
  (4) 'Low-income eligible student' means a student who:
  (a) Is a member of a household with total annual income, for
the year preceding the year in which a student would receive an
educational scholarship, that does not exceed the income standard
used to qualify for a free or reduced-price lunch under the
United States Department of Agriculture's current Income
Eligibility Guidelines; and
  (b) Satisfies the requirements of subsection (3)(b) to (e) of
this section.
  (5) 'Parent' includes a legal guardian or custodian, or other
person with legal authority to act on behalf of the student.
  (6) 'Qualifying school' has the meaning given that term in
section 28 of this 2011 Act.
  (7) 'Scholarship granting organization' means an organization
that distributes scholarship moneys pursuant to rules adopted by
the Department of Revenue under section 27 of this 2011 Act and
that:

  (a) Distributes at least 90 percent of the taxpayer
contributions on educational scholarships;
  (b) Deposits all interest earnings and proceeds from
investments in the educational scholarships;
  (c) Qualifies as a tax-exempt organization under section
501(c)(3) of the Internal Revenue Code; and
  (d) Submits a report to the department by June 1 of each year
with information prepared by a certified public accountant
regarding the scholarship grants awarded by the scholarship
granting organization in the previous calendar year, under
standards approved by the department by rule. + }
  SECTION 26.  { + (1) A credit against the taxes otherwise due
under ORS chapter 316, or under ORS chapter 317 or 318 if the
taxpayer is a corporation, shall be allowed for contributions
made to a scholarship granting organization during the tax year.
The credit allowed under this section shall equal the amount of
total contributions made to a scholarship granting organization
for educational scholarships, up to 50 percent of the taxpayer's
total state tax liability for the tax year.
  (2) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a tax year because the amount of
the credit would exceed 50 percent of the taxpayer's state tax
liability may be carried forward and offset against the
taxpayer's tax liability for the next succeeding tax year. Any
credit remaining unused in the next succeeding tax year may be
carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year
may be carried forward and used in the third succeeding tax year,
but may not be carried forward for any tax year thereafter.
  (3) In the case of a credit allowed under this section for
purposes of ORS chapter 316:
  (a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
  (b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
  (c) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each.
  (d) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
  (4) The Department of Revenue shall establish by rule policies
and procedures for certifying taxpayers as eligible for the
credits allowed under this section. + }
  SECTION 27.  { + (1) A scholarship granting organization shall:
  (a) Distribute quarterly scholarship payments on or before
September 1, December 1, March 1 and June 1 each school year,
made out to the parent of an eligible student or low-income
eligible student who is awarded a scholarship from taxpayer
contributions received under section 26 of this 2011 Act and
delivered to the qualifying school where the eligible student or
low-income eligible student is enrolled. The parent must endorse
the payment check before the payment check can be deposited by
the qualifying school.
  (b) Provide a receipt in a form approved by the Department of
Revenue to taxpayers for their contributions made to the
scholarship granting organization.
  (c) Ensure that the maximum amount of a scholarship is not more
than 80 percent of the averaged total of all local and state
moneys spent on a public school student in this state.

  (d) Ensure that at least 25 percent of all scholarships are
granted to the parents of low-income eligible students.
  (e) Conduct background checks on prospective and current
employees and board members to determine any conviction of a
crime or issuance of a judgment or injunction that bears a
demonstrable relationship to the appropriate use of contributed
funds.
  (f) Ensure that:
  (A) Scholarships are portable during the school year and may be
used at any qualifying school that accepts the eligible student
or low-income eligible student for admission; and
  (B) Scholarships are properly prorated among different
qualifying schools if an eligible student or low-income eligible
student transfers between qualifying schools during a school
year.
  (g) Ensure that a qualifying school accepting eligible students
or low-income eligible students does not have paid staff or board
members or family of paid staff or board members in common with
the paid staff or board members or family of paid staff or board
members of the scholarship granting organization.  As used in
this paragraph, 'family' means a spouse, child, sibling or parent
of the paid staff or board member.
  (2) The Department of Revenue shall adopt rules necessary for
the administration and enforcement of this section. + }
  SECTION 28.  { + (1) As used in this section, 'qualifying
school' means a public or private school that accepts scholarship
payments distributed under section 27 of this 2011 Act for
eligible students and low-income eligible students, as those
terms are defined in section 25 of this 2011 Act.
  (2) If the qualifying school is a private school, the
qualifying school shall:
  (a) Meet all criteria for registration of private schools under
ORS 345.505 to 345.575;
  (b) For the purpose of conducting criminal records checks under
ORS 181.534, send to the Department of Education the fingerprints
of each person described in ORS 326.603 (1)(a) to (d), and any
other necessary information, and use the information from the
criminal records check to exclude from employment any person who
might reasonably pose a threat to the safety of students at the
qualifying school; and
  (c) Participate in assessments of schools under ORS 329.085 and
performance reports for schools under ORS 329.105. + }
  SECTION 29. ORS 329.085 is amended to read:
  329.085. (1) To facilitate the attainment and successful
implementation of educational standards under ORS 326.051 (1)(a)
and 329.025, the State Board of Education or its designee shall
assess the effectiveness of each public school, public charter
school { + , qualifying school as defined in section 28 of this
2011 Act that is a private school + } and school district. The
findings of the assessment shall be reported to the school or
school district within six months.
  (2) The board shall establish the standards, including
standards of accessibility to educational opportunities, upon
which the assessment is based.
  (3) On a periodic basis, the board shall review school and
school district standards and credit and performance
requirements.  The board shall seek public input in this process.
  SECTION 30.  { + Sections 25 to 27 of this 2011 Act apply to
tax years beginning on or after January 1, 2012. + }
  SECTION 31.  { + Scholarships awarded under sections 25 to 27
of this 2011 Act are first available for the 2012-2013 school
year. + }

                               { +
ALTERNATIVE TEACHER CERTIFICATION + }

  SECTION 32. ORS 342.136 is amended to read:
  342.136. (1) An initial teaching, personnel service or
administrative license shall qualify its holder to accept any
assignment from preprimary through grade 12 for which the holder
has completed the requirements established by the rules of the
Teacher Standards and Practices Commission.
  (2) An initial license shall be issued on application to an
otherwise qualified person who has { + :
  (a)(A) + } Completed an approved professional education
program { + ;
  (B) Received a valid doctoral degree from an institution of
higher education accredited by a regional accrediting
association;
  (C) Received, through a national or regional certification
process approved by the commission, certification for an area of
teaching specialty by passing a national or regional examination
designed to assess the person's skills in the area of teaching
specialty; or
  (D) Received a teaching license from another state under a
process equivalent to the standards set forth in this
paragraph; + } and
   { +  (b) + } Meets such other requirements as the commission
may consider necessary to maintain and improve the quality of
instruction in the public schools of the state.
  (3) An initial license may be renewed if the applicant meets
the requirements established by the commission by rule.
   { +  (4) A license obtained under subsection (2)(a)(B), (C) or
(D) of this section may be limited by the commission to the
subject areas in which the person has demonstrated
proficiency. + }
  SECTION 33. ORS 342.138 is amended to read:
  342.138. (1) A continuing teaching, personnel service or
administrative license shall qualify the holder to accept any
assignments for preprimary through grade 12 for which the holder
has completed the advanced requirements established by the rules
of the Teacher Standards and Practices Commission.
  (2) A continuing license shall be issued on application for
five years to an otherwise qualified person who has:
  (a) { + (A) + } Completed an advanced professional education
program approved by the commission; { +  or
  (B) For a person qualifying for an initial teaching license
under ORS 342.136 (2)(a)(B) or (C), or under ORS 342.136
(2)(a)(D) from another state by meeting requirements equivalent
to those of ORS 342.136 (2)(a)(B) or (C), completed a
comprehensive mentoring program approved by the commission and
received satisfactory recommendations from supervisory
administrators of the person as determined by the commission; + }
  (b) Been employed for a minimum period of time to be determined
by the commission in:
  (A) An Oregon public school;
  (B) An Oregon private school that meets the standards adopted
by the commission by rule or is registered as a private school
under ORS 345.505 to 345.575; or
  (C) Another educational setting approved by the commission; and
  (c) Demonstrated minimum competencies, knowledge and skills
required for the continuing license through an approved teacher
education institution, school district, professional organization
identified in ORS 342.121, or professional assessment approved by
the commission.
  (3) The holder of a continuing license may renew the continuing
license in accordance with the rules of the commission.

                               { +
PROMOTION AND RETENTION BASED UPON READING ABILITY + }

  SECTION 34.  { + Section 35 of this 2011 Act is added to and
made a part of ORS chapter 329. + }
  SECTION 35. { +  (1) Based upon the assessment of the reading
portion of English conducted pursuant to ORS 329.485 (2)(c), and
an individualized evaluation by a student's reading teacher, each
school district shall assign a reading grade level to each
student in grades one through three. The Department of Education
shall adopt by rule factors to be used in making individualized
evaluations.
  (2) A school district shall notify in writing the parents of a
student who is evaluated to be reading at a grade level below the
grade of the student that:
  (a) The student has been identified as having a deficiency in
reading ability, based upon an individualized evaluation, and
include a description of the factors used in making the
individualized evaluation;
  (b) The school district will provide supplemental instructional
services to the student, and include a description of the
supplemental instructional services;
  (c) If the student's deficiency in reading ability is not
remediated to at least a reading grade level of two by the end of
the student's year in grade three, the student must be retained
in grade three unless the student is exempt from retention for
any of the reasons set forth in subsection (4)(b) of this
section; and
  (d) The student's parents may also use strategies to help the
student attain a proficiency in reading ability, and shall
include a description of those strategies.
  (3) A school district shall establish a reading program
designed to prevent the retention of grade three students because
of deficiencies in reading ability. The program shall:
  (a) Measure phonemic awareness, phonics, fluency, vocabulary
and reading comprehension;
  (b) Be provided during regular school hours in addition to
standard classroom reading instruction; and
  (c) Provide a reading curriculum that:
  (A) Assists students evaluated as having a deficiency in
reading ability in developing the ability to read at grade level;
  (B) Promotes skill development in phonemic awareness, phonics,
fluency, vocabulary and reading comprehension;
  (C) Requires initial and ongoing analysis of each student's
reading progress using scientifically based and reliable
assessment methods; and
  (D) Includes instruction in core academic subjects to assist
students in maintaining or meeting proficiency levels for the
appropriate grade in all academic subjects.
  (4)(a) A school district may not promote a student from grade
three to grade four unless the student is reading at a grade
level of two or higher, as determined through the assessment and
evaluation required by subsection (1) of this section conducted
during the student's grade three school year.
  (b) Notwithstanding paragraph (a) of this subsection, a school
district may promote a student who is not reading at a grade two
level or higher from grade three to grade four if the student:
  (A) Has limited proficiency in the English language and has had
less than two years of instruction in an English language program
or courses under ORS 336.079;
  (B) Is a child with a disability, as defined under ORS 343.035,
and has an individualized education program developed under ORS
343.151 indicating that participation in a reading assessment is
not appropriate;
  (C) Has demonstrated an acceptable level of performance on an
alternative standardized reading assessment approved by the
Department of Education;

  (D) Has demonstrated, through a student portfolio reviewed by
the school district, that the student is reading at a grade level
of two or higher;
  (E) Is a child with a disability, as defined under ORS 343.035,
has an individualized education program developed under ORS
343.151 indicating that the student has received intensive
remedial instruction in reading for more than two years, and was
previously retained for at least one year in kindergarten, grade
one, grade two or grade three, but still demonstrates a
deficiency in reading ability;
  (F) Has received intensive remedial instruction in reading for
at least two years and was previously retained in kindergarten,
grade one, grade two or grade three for at least two years, but
still is unable to read at grade level two; or
  (G) Qualifies for a good cause exemption from the retention
requirement, based upon:
  (i) A recommendation submitted from the student's teacher to
the school district indicating that promotion of the student is
appropriate and is based upon the student's academic record; and
  (ii) Review, discussion and written approval of the
recommendation by the school district and the student's parents.
  (5) A school district shall notify in writing the parents of a
student who is retained in grade three that the student has not
met the proficiency level required for promotion to grade four,
and include the reasons the child is not eligible for an
exemption pursuant to subsection (4)(b) of this section. The
notification must also include a description of the program
proposed to be provided to the student to remediate the
deficiency in reading ability.
  (6) A school district shall provide a program designed to
remediate the deficiency in reading ability of students who are
retained in grade three pursuant to subsection (4) of this
section. The program must include:
  (a) A detailed analysis of each student's deficiency in reading
ability, the causes of the deficiency and recommended methods for
remediating the deficiency; and
  (b) Intensive instructional services and supports to remediate
each student's identified areas of deficiency in reading ability,
including a minimum of 90 minutes daily of uninterrupted,
research-based reading instruction and other instructional
strategies as prescribed by the school district, which may
include:
  (A) Small group instruction;
  (B) Reduced student-to-teacher ratios;
  (C) Frequent progress monitoring;
  (D) Tutoring or mentoring;
  (E) Transition classes containing grade three and grade four
students;
  (F) Extended school days, weeks or years; and
  (G) Summer reading camps.
  (7) A school district shall assign a student who is retained in
grade three pursuant to subsection (4) of this section to the
class of a grade three teacher at the student's school that the
school district has determined is best able to help the student
achieve a reading ability that will allow subsequent promotion of
the student to grade four.
  (8) A school district shall implement a policy of mid-year
advancement to grade four of any student retained in grade three
who is able to demonstrate reading ability at grade three or
higher during a school year, based upon subsequent assessments,
alternative assessments or portfolio reviews, in accordance with
rules adopted by the State Board of Education.
  (9) A school district shall provide instructional assistance to
parents of students who are retained in grade three, consisting
of development of a plan for increased parental instruction,

supervision of students' reading outside of school and joint
student-parent reading workshops.
  (10) A school district shall report annually to the parents of
each student in grades one through three who is evaluated as
having a deficiency in reading ability in a uniform format
adopted by the school district board:
  (a) The progress of the student toward achieving an at-grade or
higher level of reading proficiency;
  (b) The student's results on statewide assessment tests,
including reading assessment tests; and
  (c) The student's related progress in proficiency in writing,
science and mathematics.
  (11) Before September 1 of each year, each school district
shall report to the Department of Education, in a form
established by the department by rule, the following information
on the previous school year:
  (a) The school district's policies and procedures on student
retention and promotion;
  (b) The number and percentage of all students in grades 3
through 10 performing at grade level one or two on reading
assessments;
  (c) The number and percentage of all students in grades 3
through 10 who are retained in grade three;
  (d) The number and percentage of all students in grades 3
through 10 of students who were promoted pursuant to subsection
(4)(b) of this section; and
  (e) Any revisions to the school district's policy on student
retention and promotion from the previous school year. + }
  SECTION 36. ORS 329.007 is amended to read:
  329.007. As used in this chapter, unless the context requires
otherwise:
  (1) 'Academic content standards' means expectations of student
knowledge and skills adopted by the State Board of Education
under ORS 329.045.
  (2) 'Administrator' includes all persons whose duties require
an administrative license.
  (3) 'Board' or 'state board' means the State Board of
Education.
  (4) 'Community learning center' means a school-based or
school-linked program providing informal meeting places and
coordination for community activities, adult education, child
care, information and referral and other services as described in
ORS 329.157. 'Community learning center' includes, but is not
limited to, a community school program as defined in ORS 336.505,
family resource centers as described in ORS 417.725, full service
schools  { - , lighted schools - }  and 21st century community
learning centers.
  (5) 'Department' means the Department of Education.
  (6) 'English' includes, but is not limited to, reading and
writing.
  (7) 'History, geography, economics and civics' includes, but is
not limited to, Oregon Studies.
  (8) 'Oregon Studies' means history, geography, economics and
civics specific to the State of Oregon. Oregon Studies
instruction in Oregon government shall include municipal, county,
tribal and state government, as well as the electoral and
legislative processes.
  (9) 'Parents' means parents or guardians of students who are
covered by this chapter.
   { +  (10) 'Promotion' means the advancement of a student from
a grade level to the next grade level in a subsequent school
year. + }
    { - (10) - }  { +  (11) + } 'Public charter school' has the
meaning given that term in ORS 338.005.

   { +  (12) 'Retention' means the keeping of a student at the
same grade level in a subsequent school year that the student was
enrolled in during the previous school year. + }
    { - (11) - }  { +  (13) + } 'School district' means a school
district as defined in ORS 332.002, a state-operated school or
any legally constituted combination of such entities.
    { - (12) - }  { +  (14) + } 'Second languages' means any
foreign language or American Sign Language.
    { - (13) - }  { +  (15) + } 'Teacher' means any licensed
employee of a school district who has direct responsibility for
instruction, coordination of educational programs or supervision
of students and who is compensated for such services from public
funds.  ' Teacher' does not include a school nurse, as defined in
ORS 342.455, or a person whose duties require an administrative
license.
    { - (14) - }  { +  (16) + } 'The arts' includes, but is not
limited to, literary arts, performing arts and visual arts.
    { - (15) - }  { +  (17) + } '21st Century Schools Council'
means a council established pursuant to ORS 329.704.
  SECTION 37. ORS 329.485 is amended to read:
  329.485. (1) As used in this section:
  (a) 'Content-based assessment' means testing of the
understanding of a student of a predetermined body of knowledge.
  (b) 'Criterion-referenced assessment' means testing of the
knowledge or ability of a student with respect to some standard.
  (c) 'Performance-based assessment' means testing of the ability
of a student to use knowledge and skills to create a complex or
multifaceted product or complete a complex task.
  (2)(a) The Department of Education shall implement statewide a
valid and reliable assessment system for all students that meets
technical adequacy standards. The assessment system shall include
criterion-referenced assessments including performance-based
assessments, content-based assessments, and other valid methods
to measure the academic content standards and to identify
students who meet or exceed the standards.
  (b) The department shall develop the statewide assessment
system in mathematics, science, English, history, geography,
economics and civics.
   { +  (c) The statewide assessment system must include
assessment of all students in grades one through three in the
reading portion of English, to be completed at least yearly. + }
  (3) In addition to the assessment system implemented under
subsection (2) of this section, the department may make available
to school districts and public charter schools an assessment
system that uses criterion-referenced assessments including
performance-based assessments and content-based assessments to:
  (a) Measure a student's progress in achieving the academic
content standards for the student's current grade level;
  (b) Determine the grade level of the understanding, knowledge
or ability of a student, which shall be determined regardless of
the actual grade level of the student and may be determined by
adapting the assessment during the assessment process as a result
of the performance of the student;
  (c) Track and provide reports on the progress of a student
based on the information provided under paragraphs (a) and (b) of
this subsection; and
  (d) Provide predictions of anticipated student progress that
are based on the information provided under this subsection and
not on the current grade level of the student.
  (4)(a) School districts and public charter schools shall
implement the statewide assessment system in mathematics, science
and English. In addition, school districts and public charter
schools may implement the statewide assessment system in history,
geography, economics and civics.

  (b) School districts and public charter schools may implement
the assessment system described in subsection (3) of this
section.
  (5) Each year the resident district shall be accountable for
determining the student's progress toward achieving the academic
content standards. Progress toward the academic content standards
shall be measured in a manner that clearly enables the student
and parents to know whether the student is making progress toward
meeting or exceeding the academic content standards. In addition,
the district shall adopt a grading system based on the local
school district board adopted course content of the district's
curriculum. The grading system shall clearly enable the student
and parents to know how well the student is achieving course
requirements.
  (6) If a student has not met or has exceeded all of the
academic content standards, the school district shall make
additional services or alternative educational or public school
options available to the student.
  (7) If the student to whom additional services or alternative
educational options have been made available does not meet or
exceed the academic content standards within one year, the school
district, with the consent of the parents, shall make an
appropriate placement, which may include an alternative education
program or the transfer of the student to another public school
in the district or to a public school in another district that
agrees to accept the student. The district that receives the
student shall be entitled to payment. The payment shall consist
of:
  (a) An amount equal to the district expenses from its local
revenues for each student in average daily membership, payable by
the resident district in the same year; and
  (b) Any state and federal funds the attending district is
entitled to receive payable as provided in ORS 339.133 (2).
  SECTION 38.  { + Section 35 of this 2011 Act and the amendments
to ORS 329.007 and 329.485 by sections 36 and 37 of this 2011 Act
first apply to the 2012-2013 school year. + }

                               { +
AWARDS FOR ADVANCED PLACEMENT TEST SUCCESS + }

  SECTION 39.  { + (1) A school district receiving additional
moneys from the State School Fund because of an adjustment to the
school's average daily membership pursuant to ORS 327.013
(1)(c)(A)(vii) must:
  (a) Allocate at least 80 percent of the funds provided to the
school district as a result of the adjustment to high schools
within the district where advanced placement students received,
during the previous year, a score of three or higher on a College
Board Advanced Placement Examination; and
  (b) Allocate a bonus to the teacher of an advanced placement
course in the amount of:
  (A) $50 per student who received, during the previous year, a
score of three or higher on the course subject's College Board
Advanced Placement Examination; and
  (B) An additional $500 if the teacher instructs an advanced
placement course at a high school designated as in need of
improvement under ORS 329.105 (2)(a), and at least one of the
students enrolled in the course received, during the previous
year, a score of three or higher on the College Board Advanced
Placement Examination for the subject.
  (2) A teacher may not receive a bonus pursuant to subsection
(1)(b) of this section greater than $2,000 per school year.
  (3) If a school district has received funding pursuant to ORS
327.013 (1)(c)(A)(vii) that is insufficient to provide teacher
bonuses required by subsection (1)(b) of this section, the

district shall prorate and reduce the amount of the bonuses to
equal the funding provided. + }
  SECTION 40. ORS 327.013 is amended to read:
  327.013. The State School Fund distributions for school
districts include the following grants:
  (1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw. For the purpose of the calculation made
under this subsection:
  (a) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum of money available for distribution.
  (b) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor. For the purpose of the calculation made under
this paragraph:
  (A) Statewide Target per ADMw Grant = $4,500.
  (B) Teacher Experience Factor = $25 X {District average teacher
experience - statewide average teacher experience}.  As used in
this subparagraph, 'average teacher experience' means the
average, in years, of teaching experience of licensed teachers as
reported to the Department of Education.
  (c) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater. For the purpose of this paragraph:
  (A) Weighted average daily membership or ADMw = average daily
membership + an additional amount computed as follows:
  (i) 1.0 for each student in average daily membership eligible
for special education as a child with a disability under ORS
343.035, which may not exceed 11 percent of the district's ADM
without review and approval by the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities, as defined in ORS 169.005,
or adult regional correctional facilities, as defined in ORS
169.620, may not be included in the calculation made under this
sub-subparagraph.
  (ii) 0.5 for each student in average daily membership eligible
for and enrolled in an English as a second language program under
ORS 336.079.
  (iii) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
  (iv) -0.1 for each student in average daily membership enrolled
in an elementary district operating kindergarten through grade
six or kindergarten through grade eight or in an area of a
unified school district where the district is only responsible
for educating students in kindergarten through grade eight.
  (v) 0.25 times the sum of the following:
  (I) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the United States Department of
Education based on the most recent federal decennial census, as
adjusted by the school district's proportion of students in the
county receiving free or reduced price lunches under the United
States Department of Agriculture's current Income Eligibility
Guidelines if the number is higher than the number determined
from census data and only if the school district had an average
daily membership of 2,500 or less for the 1995-1996 school year,
and as further adjusted by the number of students in average
daily membership in June of the year of distribution divided by
number of students in average daily membership in the district,
or its predecessors, in June of the year of the most recent
federal decennial census;
  (II) The number of children in foster homes in the district as
determined by the report of the Department of Human Services to
the United States Department of Education, 'Annual Statistical
Report on Children in Foster Homes and Children in Families
Receiving AFDC Payments in Excess of the Poverty Income Level, '
or its successor, for October 31 of the year prior to the year of
distribution; and
  (III) The number of children in the district in
state-recognized facilities for neglected and delinquent
children, based on information from the Department of Human
Services for October 31 of the year prior to the year of
distribution.
  (vi) The amount determined under ORS 327.077 for each remote
small elementary school and for each small high school in the
district.
   { +  (vii) 0.2 for each student in average daily membership
enrolled in an advanced placement course in the previous school
year who received a score of three or higher on a College Board
Advanced Placement Examination. + }
  (B) All numbers of children used for the computation in this
paragraph must reflect any district consolidations that have
occurred since the numbers were compiled.
  (C) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of
students described in subparagraph (A)(v) and (vi) of this
paragraph, may not exceed 2.0.
  (2) High cost disabilities grant = the total amount received by
a school district under ORS 327.348 for providing special
education and related services to resident pupils with
disabilities.
  (3)(a) Transportation grant equals:
  (A) 70 percent of approved transportation costs for those
school districts ranked below the 80th percentile under paragraph
(b) of this subsection.
  (B) 80 percent of approved transportation costs for those
school districts ranked in or above the 80th percentile but below
the 90th percentile under paragraph (b) of this subsection.
  (C) 90 percent of approved transportation costs for those
school districts ranked in or above the 90th percentile under
paragraph (b) of this subsection.
  (b) Each fiscal year, the Department of Education shall rank
school districts based on the approved transportation costs per
ADM of each school district, ranking the school district with the
highest approved transportation costs per ADM at the top of the
order.
  (4)(a) Facility Grant = 8 percent of total construction costs
of new school buildings.
  (b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
  (c) As used in this subsection:
  (A) 'New school building' includes new school buildings,
structures added onto existing school buildings and
premanufactured structures added to a school district if those
buildings or structures are to be used for instructing students.
  (B) 'Construction costs' does not include costs for land
acquisition.
  SECTION 41.  { + Section 39 of this 2011 Act and the amendments
to ORS 327.013 by section 40 of this 2011 Act first apply to the
2012-2013 school year. + }
                         ----------