Bill Text: OR HB2501 | 2013 | Regular Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to distributions of state moneys for schools; appropriating money; and declaring an emergency.

Spectrum: Committee Bill

Status: (Passed) 2013-08-14 - Chapter 735, (2013 Laws): Effective date August 14, 2013. [HB2501 Detail]

Download: Oregon-2013-HB2501-Engrossed.html


     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

SA to A-Eng. HB 2501

LC 1560/HB 2501-A13

                      SENATE AMENDMENTS TO
                   A-ENGROSSED HOUSE BILL 2501

               By COMMITTEE ON FINANCE AND REVENUE

                             July 6

  In line 2 of the printed A-engrossed bill, after the semicolon
delete the rest of the line and insert 'creating new provisions;
amending ORS 327.006, 327.008, 327.019, 327.125, 327.137,
339.129, 340.045 and 343.961; appropriating money; and declaring
an emergency.'.
  Delete line 3.
  Delete lines 5 through 16 and insert:
  '  { +  SECTION 1. + }  { + As used in this section and section
2 of this 2013 Act:
  ' (1)(a) 'Small high school' means a public school that is
operated by a small school district and that has students in:
  ' (A) Grades 9 through 12, with an ADM of less than 350 in
grades 9 through 12; or
  ' (B) Grades 10 through 12 only, with an ADM of less than 267.
  ' (b) 'Small high school' does not include an alternative
education program or a public charter school.
  ' (2) 'Small school district' means a school district with a
weighted average daily membership (ADMw) of less than 8,500. + }
  '  { +  SECTION 2. + }  { + (1) In addition to those moneys
distributed through the State School Fund, the Department of
Education shall award grants to small school districts with one
or more small high schools from moneys appropriated to the
department from the Small School District Supplement Fund.
  ' (2) The amount of each grant = the small high school's ADM X
(the total amount available for the grants in each fiscal year :
the total ADM of all small high schools).
  ' (3) A small school district shall receive a grant under this
section for each small high school operated by the school
district.
  ' (4) The State Board of Education shall adopt any rules
necessary for the administration of this section. + }
  '  { +  SECTION 3. + }  { + (1) There is established the Small
School District Supplement Fund, separate and distinct from the
General Fund.
  ' (2) The moneys in the Small School District Supplement Fund
are appropriated continuously to the Department of Education for
purposes of the grant program created by section 2 of this 2013
Act. + }
  '  { +  SECTION 4. + } ORS 327.006 is amended to read:
  ' 327.006. As used in  { + sections 1 to 3 of this 2013 Act
and + } ORS 327.006 to 327.133, 327.348 and 327.731:
  ' (1) 'Aggregate days membership' means the sum of days present
and absent, according to the rules of the State Board of
Education, of all resident pupils when school is actually in
session during a certain period. The aggregate days membership of
kindergarten pupils shall be calculated on the basis of a
half-day program.
  ' (2)(a) 'Approved transportation costs' means those costs as
defined by rule of the State Board of Education and is limited to

those costs attributable to transporting or room and board
provided in lieu of transporting:
  ' (A) Elementary school students who live at least one mile
from school;
  ' (B) Secondary school students who live at least 1.5 miles
from school;
  ' (C) Any student required to be transported for health or
safety reasons, according to supplemental plans from districts
that have been approved by the state board identifying students
who are required to be transported for health or safety reasons,
including special education;
  ' (D) Preschool children with disabilities requiring
transportation for early intervention services provided pursuant
to ORS 343.224 and 343.533;
  ' (E) Students who require payment of room and board in lieu of
transportation;
  ' (F) A student transported from one school or facility to
another school or facility when the student attends both schools
or facilities during the day or week; and
  ' (G) Students participating in school-sponsored field trips
that are extensions of classroom learning experiences.
  ' (b) 'Approved transportation costs' does not include the cost
of constructing boarding school facilities.
  ' (3) 'Average daily membership' or 'ADM' means the aggregate
days membership of a school during a certain period divided by
the number of days the school was actually in session during the
same period. However, if a district school board adopts a class
schedule that operates throughout the year for all or any schools
in the district, average daily membership shall be computed by
the Department of Education so that the resulting average daily
membership will not be higher or lower than if the board had not
adopted such schedule.
  ' (4) 'Consumer Price Index' means the Consumer Price Index for
All Urban Consumers of the Portland, Oregon, Metropolitan
Statistical Area, as compiled by the United States Department of
Labor, Bureau of Labor Statistics.
  ' (5) 'Kindergarten' means a kindergarten program that conforms
to the standards and rules adopted by the State Board of
Education.
  ' (6) 'Net operating expenditures' means the sum of
expenditures of a school district in kindergarten through grade
12 for administration, instruction, attendance and health
services, operation of plant, maintenance of plant, fixed charges
and tuition for resident students attending in another district,
as determined in accordance with the rules of the State Board of
Education, but net operating expenditures does not include
transportation, food service, student body activities, community
services, capital outlay, debt service or expenses incurred for
nonresident students.
  ' (7)(a) 'Resident pupil' means any pupil:
  ' (A) Whose legal school residence is within the boundaries of
a school district reporting the pupil, if the district is legally
responsible for the education of the pupil, except that '
resident pupil' does not include a pupil who pays tuition or for
whom the parent pays tuition or for whom the district does not
pay tuition for placement outside the district; or
  ' (B) Whose legal residence is not within the boundaries of the
district reporting the pupil but who attends school in the
district with the written consent of the district school board
where the school is located as provided by ORS 339.133 (5).
  ' (b) A pupil is not considered to be a resident pupil under
paragraph (a)(A) of this subsection if the pupil is attending
school in another school district pursuant to a contract under
ORS 339.125 and in the prior year was considered to be a resident
pupil in another school district under paragraph (a)(B) of this
subsection. The pupil shall continue to be considered a resident
of another school district under paragraph (a)(B) of this
subsection.
  ' (c) A pupil is not considered to be a resident pupil under
paragraph (a)(B) of this subsection if the pupil is attending
school in a school district pursuant to ORS 339.133 (5) and in
the prior year was considered to be a resident pupil under
paragraph (a)(A) of this subsection because the pupil was
attending school in another school district pursuant to a
contract under ORS 339.125. The pupil shall continue to be
considered a resident pupil under paragraph (a)(A) of this
subsection.
  ' (d) 'Resident pupil' includes a pupil admitted to a school
district under ORS 339.115 (7).
  ' (8) 'Standard school' means a school meeting the standards
set by the rules of the State Board of Education.
  ' (9) 'Tax' and 'taxes' includes all taxes on property,
excluding exempt bonded indebtedness, as those terms are defined
in ORS 310.140.
  '  { +  SECTION 5. + } ORS 327.006, as amended by section 4 of
this 2013 Act, is amended to read:
  ' 327.006. As used in   { - sections 1 to 3 of this 2013 Act
and - } ORS 327.006 to 327.133, 327.348 and 327.731:
  ' (1) 'Aggregate days membership' means the sum of days present
and absent, according to the rules of the State Board of
Education, of all resident pupils when school is actually in
session during a certain period. The aggregate days membership of
kindergarten pupils shall be calculated on the basis of a
half-day program.
  ' (2)(a) 'Approved transportation costs' means those costs as
defined by rule of the State Board of Education and is limited to
those costs attributable to transporting or room and board
provided in lieu of transporting:
  ' (A) Elementary school students who live at least one mile
from school;
  ' (B) Secondary school students who live at least 1.5 miles
from school;
  ' (C) Any student required to be transported for health or
safety reasons, according to supplemental plans from districts
that have been approved by the state board identifying students
who are required to be transported for health or safety reasons,
including special education;
  ' (D) Preschool children with disabilities requiring
transportation for early intervention services provided pursuant
to ORS 343.224 and 343.533;
  ' (E) Students who require payment of room and board in lieu of
transportation;
  ' (F) A student transported from one school or facility to
another school or facility when the student attends both schools
or facilities during the day or week; and
  ' (G) Students participating in school-sponsored field trips
that are extensions of classroom learning experiences.
  ' (b) 'Approved transportation costs' does not include the cost
of constructing boarding school facilities.
  ' (3) 'Average daily membership' or 'ADM' means the aggregate
days membership of a school during a certain period divided by
the number of days the school was actually in session during the
same period. However, if a district school board adopts a class
schedule that operates throughout the year for all or any schools
in the district, average daily membership shall be computed by
the Department of Education so that the resulting average daily
membership will not be higher or lower than if the board had not
adopted such schedule.
  ' (4) 'Consumer Price Index' means the Consumer Price Index for
All Urban Consumers of the Portland, Oregon, Metropolitan
Statistical Area, as compiled by the United States Department of
Labor, Bureau of Labor Statistics.
  ' (5) 'Kindergarten' means a kindergarten program that conforms
to the standards and rules adopted by the State Board of
Education.
  ' (6) 'Net operating expenditures' means the sum of
expenditures of a school district in kindergarten through grade
12 for administration, instruction, attendance and health
services, operation of plant, maintenance of plant, fixed charges
and tuition for resident students attending in another district,
as determined in accordance with the rules of the State Board of
Education, but net operating expenditures does not include
transportation, food service, student body activities, community
services, capital outlay, debt service or expenses incurred for
nonresident students.
  ' (7)(a) 'Resident pupil' means any pupil:
  ' (A) Whose legal school residence is within the boundaries of
a school district reporting the pupil, if the district is legally
responsible for the education of the pupil, except that '
resident pupil' does not include a pupil who pays tuition or for
whom the parent pays tuition or for whom the district does not
pay tuition for placement outside the district; or
  ' (B) Whose legal residence is not within the boundaries of the
district reporting the pupil but who attends school in the
district with the written consent of the district school board
where the school is located as provided by ORS 339.133 (5).
  ' (b) A pupil is not considered to be a resident pupil under
paragraph (a)(A) of this subsection if the pupil is attending
school in another school district pursuant to a contract under
ORS 339.125 and in the prior year was considered to be a resident
pupil in another school district under paragraph (a)(B) of this
subsection. The pupil shall continue to be considered a resident
of another school district under paragraph (a)(B) of this
subsection.
  ' (c) A pupil is not considered to be a resident pupil under
paragraph (a)(B) of this subsection if the pupil is attending
school in a school district pursuant to ORS 339.133 (5) and in
the prior year was considered to be a resident pupil under
paragraph (a)(A) of this subsection because the pupil was
attending school in another school district pursuant to a
contract under ORS 339.125. The pupil shall continue to be
considered a resident pupil under paragraph (a)(A) of this
subsection.
  ' (d) 'Resident pupil' includes a pupil admitted to a school
district under ORS 339.115 (7).
  ' (8) 'Standard school' means a school meeting the standards
set by the rules of the State Board of Education.
  ' (9) 'Tax' and 'taxes' includes all taxes on property,
excluding exempt bonded indebtedness, as those terms are defined
in ORS 310.140.
  '  { +  SECTION 6. + } ORS 327.008, as amended by section 3,
chapter 91, Oregon Laws 2012, is amended to read:
  ' 327.008. (1) There is established a State School Fund in the
General Fund. The fund shall consist of moneys appropriated by
the Legislative Assembly and moneys transferred from the
Education Stability Fund. The State School Fund is continuously
appropriated to the Department of Education for the purposes of
 { + sections 1 to 3 of this 2013 Act and + } ORS 327.006 to
327.077, 327.095, 327.099, 327.101, 327.125, 327.137, 327.348,
336.575, 336.580, 336.635, 342.173, 343.243, 343.533 and 343.961.
  ' (2) There shall be apportioned from the State School Fund to
each school district a State School Fund grant, consisting of the
positive amount equal to a general purpose grant and a facility
grant and a transportation grant and a high cost disabilities
grant minus local revenue, computed as provided in ORS 327.011
and 327.013.

  ' (3) There shall be apportioned from the State School Fund to
each education service district a State School Fund grant as
calculated under ORS 327.019.
  ' (4) There shall be apportioned from the State School Fund the
amount to be transferred to the Regional Educational Services
Account as calculated under ORS 327.009.
  ' (5) All figures used in the determination of the distribution
of the State School Fund shall be estimates for the same year as
the distribution occurs, unless otherwise specified.
  ' (6) Numbers of students in average daily membership used in
the distribution formula shall be the numbers as of June of the
year of distribution.
  ' (7) A school district may not use the portion of the State
School Fund grant that is attributable to the facility grant for
capital construction costs.
  ' (8) The total amount of the State School Fund that is
distributed as facility grants may not exceed $25 million in any
biennium. If the total amount to be distributed as facility
grants exceeds this limitation, the Department of Education shall
prorate the amount of funds available for facility grants among
those school districts that qualified for a facility grant.
  ' (9) Each fiscal year, the Department of Education shall
transfer the amount of $18 million from the State School Fund to
the High Cost Disabilities Account established in ORS 327.348.
  ' (10) Each fiscal year, the Department of Education may expend
up to $550,000 from the State School Fund for the contract
described in ORS 329.488. The amount distributed to education
service districts from the State School Fund under this section
and ORS 327.019 shall be reduced by the amount expended by the
department under this subsection.
  ' (11) Each biennium, the Department of Education may expend up
to $350,000 from the State School Fund to provide administration
of and support for the development of talented and gifted
education under ORS 343.404.
  ' (12) Each biennium, the Department of Education may expend up
to $150,000 from the State School Fund for the administration of
a program to increase the number of speech-language pathologists
and speech-language pathology assistants under ORS 348.394 to
348.406.
  '  { +  (13) Each fiscal year, the Department of Education
shall transfer the amount of $2.5 million from the State School
Fund to the Small School District Supplement Fund established in
section 3 of this 2013 Act. + }
  '  { +  SECTION 7. + } ORS 327.008, as amended by section 3,
chapter 91, Oregon Laws 2012, and section 6 of this 2013 Act, is
amended to read:
  ' 327.008. (1) There is established a State School Fund in the
General Fund. The fund shall consist of moneys appropriated by
the Legislative Assembly and moneys transferred from the
Education Stability Fund. The State School Fund is continuously
appropriated to the Department of Education for the purposes of
 { - sections 1 to 3 of this 2013 Act and - }  ORS 327.006 to
327.077, 327.095, 327.099, 327.101, 327.125, 327.137, 327.348,
336.575, 336.580, 336.635, 342.173, 343.243, 343.533 and 343.961.
  ' (2) There shall be apportioned from the State School Fund to
each school district a State School Fund grant, consisting of the
positive amount equal to a general purpose grant and a facility
grant and a transportation grant and a high cost disabilities
grant minus local revenue, computed as provided in ORS 327.011
and 327.013.
  ' (3) There shall be apportioned from the State School Fund to
each education service district a State School Fund grant as
calculated under ORS 327.019.
  ' (4) There shall be apportioned from the State School Fund the
amount to be transferred to the Regional Educational Services
Account as calculated under ORS 327.009.
  ' (5) All figures used in the determination of the distribution
of the State School Fund shall be estimates for the same year as
the distribution occurs, unless otherwise specified.
  ' (6) Numbers of students in average daily membership used in
the distribution formula shall be the numbers as of June of the
year of distribution.
  ' (7) A school district may not use the portion of the State
School Fund grant that is attributable to the facility grant for
capital construction costs.
  ' (8) The total amount of the State School Fund that is
distributed as facility grants may not exceed $25 million in any
biennium. If the total amount to be distributed as facility
grants exceeds this limitation, the Department of Education shall
prorate the amount of funds available for facility grants among
those school districts that qualified for a facility grant.
  ' (9) Each fiscal year, the Department of Education shall
transfer the amount of $18 million from the State School Fund to
the High Cost Disabilities Account established in ORS 327.348.
  ' (10) Each fiscal year, the Department of Education may expend
up to $550,000 from the State School Fund for the contract
described in ORS 329.488. The amount distributed to education
service districts from the State School Fund under this section
and ORS 327.019 shall be reduced by the amount expended by the
department under this subsection.
  ' (11) Each biennium, the Department of Education may expend up
to $350,000 from the State School Fund to provide administration
of and support for the development of talented and gifted
education under ORS 343.404.
  ' (12) Each biennium, the Department of Education may expend up
to $150,000 from the State School Fund for the administration of
a program to increase the number of speech-language pathologists
and speech-language pathology assistants under ORS 348.394 to
348.406.
  '  { - (13) Each fiscal year, the Department of Education shall
transfer the amount of $2.5 million from the State School Fund to
the Small School District Supplement Fund established in section
3 of this 2013 Act. - }
  '  { +  SECTION 8. + } ORS 327.019 is amended to read:
  ' 327.019. (1) As used in this section:
  ' (a) 'Education service district extended ADMw' means the sum
of the extended ADMw of the school districts located within the
territory of the education service district as computed under ORS
327.013.
  ' (b) 'Local revenues of an education service district' means
the total of the following:
  ' (A) The amount of revenue offset against local property taxes
as determined by the Department of Revenue under ORS 311.175
(3)(a)(A);
  ' (B) The amount of property taxes actually received by the
district including penalties and interest on taxes;
  ' (C) The amount of revenue received by the district from
state-managed forestlands under ORS 530.115 (1)(b) and (c); and
  ' (D) Any positive amount obtained by subtracting the operating
property taxes actually imposed by the district based on the rate
certified pursuant to ORS 310.060 from the amount that would have
been imposed by the district if the district had certified the
maximum rate of operating property taxes allowed by law.
  ' (2) Each fiscal year, the Superintendent of Public
Instruction shall calculate a State School Fund grant for each
education service district as provided in this section.
  ' (3)(a) Each fiscal year, the superintendent shall calculate
the total amount appropriated or allocated to the State School
Fund and available for distribution to school districts,
education service districts, programs and the Office of Regional
Educational Services + total amount of local revenues of all
school districts, computed as provided in ORS 327.011, + total
amount of local revenues of all education service districts. The
superintendent may not include in the calculation under this
paragraph amounts received by the Department of Education from
the State School Fund under ORS 343.243.
  ' (b) The superintendent shall multiply the amount calculated
under paragraph (a) of this subsection by 95.5 percent.
  ' (c) Based on the amount calculated under paragraph (b) of
this subsection, the superintendent shall calculate a funding
percentage to distribute as nearly as practicable under
 { + sections 1 to 3 of this 2013 Act and + } ORS 327.006 to
327.133 and 327.348 the total amount calculated under paragraph
(b) of this subsection as school district general purpose grants,
facility grants, high cost disabilities grants and transportation
grants to school districts.
  ' (d) Based on the funding percentage calculated under
paragraph (c) of this subsection, the superintendent shall
calculate the general purpose grant, facility grant,
transportation grant and high cost disabilities grant amounts for
each school district.
  ' (4)(a) The general services grant for an education service
district shall equal the higher of:
  ' (A) The total amount calculated under subsection (3)(d) of
this section for the school districts located within the
territory of the education service district X (4.5 : 95.5); or
  ' (B) $1 million if the education service district received a
general services grant of $1 million for the 2010-2011 school
year.
  ' (b) Notwithstanding paragraph (a) of this subsection and only
for State School Fund distributions made for the first school
year after two or more education service districts join together,
if an education service district received a general services
grant as provided by paragraph (a)(B) of this subsection prior to
the education service district joining together with one or more
other education service districts to form a new education service
district:
  ' (A) The general services grant for the new education service
district shall be calculated for each component education service
district as though the component education service districts had
not joined together to form a new education service district; and
  ' (B) A component education service district that received $1
million as provided by paragraph (a)(B) of this subsection shall
be entitled to receive $1 million under the calculation provided
by this paragraph.
  ' (5) Subject to subsection (6) of this section, the State
School Fund grant for an education service district = general
services grant - local revenues of the education service
district.
  ' (6)(a) After completing the calculations under subsections
(2) to (5) of this section, the Superintendent of Public
Instruction shall apportion from the State School Fund to each
education service district an amount = (funding percentage X
general services grant) - local revenues of the education service
district.
  ' (b) The funding percentage used in paragraph (a) of this
subsection shall be calculated by the superintendent to
distribute as nearly as practicable the total amount available
for distribution to education service districts from the State
School Fund for each fiscal year.
  ' (7) Notwithstanding subsections (5) and (6) of this section:
  ' (a) The State School Fund grant of an education service
district may not be less than zero; and
  ' (b) The State School Fund grant of an education service
district shall be in an amount that, when combined with the local
revenues of the education service district, equals $1 million or
more.

  ' (8) An education service district shall distribute to school
districts located within the territory of the education service
district any amount of local revenues of the education service
district that is greater than the general services grant.  The
amount that each school district receives under this subsection
shall be prorated based on the district extended ADMw of the
school district as calculated under ORS 327.013.
  ' (9)(a) An education service district shall distribute to a
school district that is located within the territory of the
education service district but that has withdrawn from the
education service district as provided in ORS 334.015 the amounts
received by the education service district as a general services
grant and from the School Improvement Fund.
  ' (b) The amounts that a school district receives under this
subsection:
  ' (A) Shall be prorated based on the district extended ADMw of
the school district as calculated under ORS 327.013;
  ' (B) Shall equal 90 percent of the school district's prorated
share, as calculated under subparagraph (A) of this paragraph;
and
  ' (C) May be used to pay for any expenses incurred in providing
services described in ORS 334.175 (2) to the students of the
school district by:
  ' (i) The school district;
  ' (ii) The education service district from which the school
district withdrew;
  ' (iii) An education service district that is not the education
service district from which the school district withdrew; or
  ' (iv) Any other public entity with which the school district
has entered into a contract to provide the services.
  '  { +  SECTION 9. + } ORS 327.019, as amended by section 8 of
this 2013 Act, is amended to read:
  ' 327.019. (1) As used in this section:
  ' (a) 'Education service district extended ADMw' means the sum
of the extended ADMw of the school districts located within the
territory of the education service district as computed under ORS
327.013.
  ' (b) 'Local revenues of an education service district' means
the total of the following:
  ' (A) The amount of revenue offset against local property taxes
as determined by the Department of Revenue under ORS 311.175
(3)(a)(A);
  ' (B) The amount of property taxes actually received by the
district including penalties and interest on taxes;
  ' (C) The amount of revenue received by the district from
state-managed forestlands under ORS 530.115 (1)(b) and (c); and
  ' (D) Any positive amount obtained by subtracting the operating
property taxes actually imposed by the district based on the rate
certified pursuant to ORS 310.060 from the amount that would have
been imposed by the district if the district had certified the
maximum rate of operating property taxes allowed by law.
  ' (2) Each fiscal year, the Superintendent of Public
Instruction shall calculate a State School Fund grant for each
education service district as provided in this section.
  ' (3)(a) Each fiscal year, the superintendent shall calculate
the total amount appropriated or allocated to the State School
Fund and available for distribution to school districts,
education service districts, programs and the Office of Regional
Educational Services + total amount of local revenues of all
school districts, computed as provided in ORS 327.011, + total
amount of local revenues of all education service districts. The
superintendent may not include in the calculation under this
paragraph amounts received by the Department of Education from
the State School Fund under ORS 343.243.
  ' (b) The superintendent shall multiply the amount calculated
under paragraph (a) of this subsection by 95.5 percent.
  ' (c) Based on the amount calculated under paragraph (b) of
this subsection, the superintendent shall calculate a funding
percentage to distribute as nearly as practicable under
 { - sections 1 to 3 of this 2013 Act and - }  ORS 327.006 to
327.133 and 327.348 the total amount calculated under paragraph
(b) of this subsection as school district general purpose grants,
facility grants, high cost disabilities grants and transportation
grants to school districts.
  ' (d) Based on the funding percentage calculated under
paragraph (c) of this subsection, the superintendent shall
calculate the general purpose grant, facility grant,
transportation grant and high cost disabilities grant amounts for
each school district.
  ' (4)(a) The general services grant for an education service
district shall equal the higher of:
  ' (A) The total amount calculated under subsection (3)(d) of
this section for the school districts located within the
territory of the education service district X (4.5 : 95.5); or
  ' (B) $1 million if the education service district received a
general services grant of $1 million for the 2010-2011 school
year.
  ' (b) Notwithstanding paragraph (a) of this subsection and only
for State School Fund distributions made for the first school
year after two or more education service districts join together,
if an education service district received a general services
grant as provided by paragraph (a)(B) of this subsection prior to
the education service district joining together with one or more
other education service districts to form a new education service
district:
  ' (A) The general services grant for the new education service
district shall be calculated for each component education service
district as though the component education service districts had
not joined together to form a new education service district; and
  ' (B) A component education service district that received $1
million as provided by paragraph (a)(B) of this subsection shall
be entitled to receive $1 million under the calculation provided
by this paragraph.
  ' (5) Subject to subsection (6) of this section, the State
School Fund grant for an education service district = general
services grant - local revenues of the education service
district.
  ' (6)(a) After completing the calculations under subsections
(2) to (5) of this section, the Superintendent of Public
Instruction shall apportion from the State School Fund to each
education service district an amount = (funding percentage X
general services grant) - local revenues of the education service
district.
  ' (b) The funding percentage used in paragraph (a) of this
subsection shall be calculated by the superintendent to
distribute as nearly as practicable the total amount available
for distribution to education service districts from the State
School Fund for each fiscal year.
  ' (7) Notwithstanding subsections (5) and (6) of this section:
  ' (a) The State School Fund grant of an education service
district may not be less than zero; and
  ' (b) The State School Fund grant of an education service
district shall be in an amount that, when combined with the local
revenues of the education service district, equals $1 million or
more.
  ' (8) An education service district shall distribute to school
districts located within the territory of the education service
district any amount of local revenues of the education service
district that is greater than the general services grant.  The
amount that each school district receives under this subsection
shall be prorated based on the district extended ADMw of the
school district as calculated under ORS 327.013.
  ' (9)(a) An education service district shall distribute to a
school district that is located within the territory of the
education service district but that has withdrawn from the
education service district as provided in ORS 334.015 the amounts
received by the education service district as a general services
grant and from the School Improvement Fund.
  ' (b) The amounts that a school district receives under this
subsection:
  ' (A) Shall be prorated based on the district extended ADMw of
the school district as calculated under ORS 327.013;
  ' (B) Shall equal 90 percent of the school district's prorated
share, as calculated under subparagraph (A) of this paragraph;
and
  ' (C) May be used to pay for any expenses incurred in providing
services described in ORS 334.175 (2) to the students of the
school district by:
  ' (i) The school district;
  ' (ii) The education service district from which the school
district withdrew;
  ' (iii) An education service district that is not the education
service district from which the school district withdrew; or
  ' (iv) Any other public entity with which the school district
has entered into a contract to provide the services.
  '  { +  SECTION 10. + } ORS 327.125 is amended to read:
  ' 327.125. The Superintendent of Public Instruction shall
administer the provisions of  { + sections 1 to 3 of this 2013
Act and + } ORS 327.006 to 327.133, 327.348 and 327.731. The
State Board of Education shall adopt all necessary rules not
inconsistent with  { +  sections 1 to 3 of this 2013 Act and + }
ORS 327.006 to 327.133, 327.348 and 327.731 to carry into effect
the provisions of those statutes.
  '  { +  SECTION 11. + } ORS 327.125, as amended by section 10
of this 2013 Act, is amended to read:
  ' 327.125. The Superintendent of Public Instruction shall
administer the provisions of   { - sections 1 to 3 of this 2013
Act and - }  ORS 327.006 to 327.133, 327.348 and 327.731. The
State Board of Education shall adopt all necessary rules not
inconsistent with
  { - sections 1 to 3 of this 2013 Act and - }  ORS 327.006 to
327.133, 327.348 and 327.731 to carry into effect the provisions
of those statutes.
  '  { +  SECTION 12. + } ORS 327.137 is amended to read:
  ' 327.137. (1) Every common or union high school district or
education service district shall file a copy of its audit report
with the Department of Education within six months of the end of
the fiscal year for which the audit is required. If the audit
report, as submitted to the district, fails to provide the detail
necessary for the computation required in the administration of
 { +  sections 1 to 3 of this 2013 Act and + } ORS 327.006 to
327.133, 327.348, 327.731, 328.542 and 530.115 and this section,
the district shall submit the necessary information on forms
provided by the department within the time prescribed for filing
the audit in this section. Any district failing to file a copy of
its audit report under this section or ORS 327.133 shall not
receive any payments from the State School Fund until such
reports are filed.
  ' (2) Notwithstanding the timeline provided by this section and
pursuant to rules adopted by the State Board of Education, the
Superintendent of Public Instruction may waive a reporting date
or specify an alternative date to provide the audit report or
information if a human-created disaster or a natural disaster
affects the ability of a school district or an education service
district to provide the audit report or information by a
specified date.

  '  { +  SECTION 13. + } ORS 327.137, as amended by section 1,
chapter 327, Oregon Laws 2013 (Enrolled House Bill 3093), and
section 12 of this 2013 Act, is amended to read:
  ' 327.137. (1)(a) Every common or union high school district or
education service district shall file a copy of its audit report
with the Department of Education within six months of the end of
the fiscal year for which the audit is required. The audit report
shall include:
  ' (A) Information necessary for the computation required in the
administration of  { + sections 1 to 3 of this 2013 Act and + }
ORS 327.006 to 327.133, 327.348, 327.731, 328.542 and 530.115 and
this section; and
  ' (B) If the district is a sponsor of any public charter
schools, a copy of each annual audit forwarded to the district as
required by ORS 338.095 (4).
  ' (b) If the audit report, as submitted to the district, fails
to provide the detail necessary for the computation required in
the administration of sections 1 to 3 of this 2013 Act and ORS
327.006 to 327.133, 327.348, 327.731, 328.542 and 530.115 and
this section, the district shall submit the necessary information
on forms provided by the department within the time prescribed
for filing the audit in this section.
  ' (c) The Superintendent of Public Instruction may withhold any
payments from the State School Fund for a public charter school
that, pursuant to ORS 338.155, are due to a district under ORS
327.095 if:
  ' (A) The audit report filed by the district fails to include
the public charter school annual audit as required by paragraph
(a)(B) of this subsection; and
  ' (B) The district has not filed the public charter school
annual audit with the department by April 1.
  ' (d) If payments are withheld as provided by paragraph (c) of
this subsection, the superintendent may allow payments to be made
from the State School Fund to the district upon receipt of the
annual audit or upon the meeting of any other conditions
identified by rule of the State Board of Education.
  ' (e) Any district failing to file a copy of an audit report
under this section or a report under ORS 327.133 may not receive
any payments from the State School Fund until the report is
filed.
  ' (2) Notwithstanding the timeline provided by this section and
pursuant to rules adopted by the State Board of Education, the
superintendent may waive a reporting date or specify an
alternative date to provide the audit report or information if a
human-created disaster or a natural disaster affects the ability
of a school district or an education service district to provide
the audit report or information by a specified date.
  '  { +  SECTION 14. + } ORS 327.137, as amended by section 1,
chapter 327, Oregon Laws 2013 (Enrolled House Bill 3093), and
sections 12 and 13 of this 2013 Act, is amended to read:
  ' 327.137. (1)(a) Every common or union high school district or
education service district shall file a copy of its audit report
with the Department of Education within six months of the end of
the fiscal year for which the audit is required. The audit report
shall include:
  ' (A) Information necessary for the computation required in the
administration of   { - sections 1 to 3 of this 2013 Act and - }
ORS 327.006 to 327.133, 327.348, 327.731, 328.542 and 530.115 and
this section; and
  ' (B) If the district is a sponsor of any public charter
schools, a copy of each annual audit forwarded to the district as
required by ORS 338.095 (4).
  ' (b) If the audit report, as submitted to the district, fails
to provide the detail necessary for the computation required in
the administration of   { - sections 1 to 3 of this 2013 Act
and - } ORS 327.006 to 327.133, 327.348, 327.731, 328.542 and
530.115 and this section, the district shall submit the necessary
information on forms provided by the department within the time
prescribed for filing the audit in this section.
  ' (c) The Superintendent of Public Instruction may withhold any
payments from the State School Fund for a public charter school
that, pursuant to ORS 338.155, are due to a district under ORS
327.095 if:
  ' (A) The audit report filed by the district fails to include
the public charter school annual audit as required by paragraph
(a)(B) of this subsection; and
  ' (B) The district has not filed the public charter school
annual audit with the department by April 1.
  ' (d) If payments are withheld as provided by paragraph (c) of
this subsection, the superintendent may allow payments to be made
from the State School Fund to the district upon receipt of the
annual audit or upon the meeting of any other conditions
identified by rule of the State Board of Education.
  ' (e) Any district failing to file a copy of an audit report
under this section or a report under ORS 327.133 may not receive
any payments from the State School Fund until the report is
filed.
  ' (2) Notwithstanding the timeline provided by this section and
pursuant to rules adopted by the State Board of Education, the
superintendent may waive a reporting date or specify an
alternative date to provide the audit report or information if a
human-created disaster or a natural disaster affects the ability
of a school district or an education service district to provide
the audit report or information by a specified date.
  '  { +  SECTION 15. + } ORS 339.129 is amended to read:
  ' 339.129. (1) A school district shall provide or cause to be
provided appropriate education for children placed in a local or
regional correctional facility located in the school district.
The education may be provided by the school district or an
education service district.
  ' (2) The school district may claim State School Fund
reimbursement under  { + sections 1 to 3 of this 2013 Act and + }
ORS 327.006 to 327.133, 327.348 and 327.731 for each child who is
in a local or regional correctional facility.
  ' (3) A local or regional correctional facility shall notify
the school district within which the facility is located of the
name and date of birth of each school-age child placed in the
facility, including a child with a disability under the age of 22
years who may be eligible for special education. The notice shall
be in writing and shall be given within five business days of the
child's placement in the facility.
  ' (4) The local or regional correctional facility shall allow
the school district and education service district to have safe
and reasonable access to children placed in that facility for
whom the school district is required to provide education.
  ' (5) As used in this section:
  ' (a) 'Local correctional facility' means a local correctional
facility as defined in ORS 169.005.
  ' (b) 'Regional correctional facility' means a regional
correctional facility as defined in ORS 169.620.
  '  { +  SECTION 16. + } ORS 339.129, as amended by section 15
of this 2013 Act, is amended to read:
  ' 339.129. (1) A school district shall provide or cause to be
provided appropriate education for children placed in a local or
regional correctional facility located in the school district.
The education may be provided by the school district or an
education service district.
  ' (2) The school district may claim State School Fund
reimbursement under   { - sections 1 to 3 of this 2013 Act
and - }  ORS 327.006 to 327.133, 327.348 and 327.731 for each
child who is in a local or regional correctional facility.

  ' (3) A local or regional correctional facility shall notify
the school district within which the facility is located of the
name and date of birth of each school-age child placed in the
facility, including a child with a disability under the age of 22
years who may be eligible for special education. The notice shall
be in writing and shall be given within five business days of the
child's placement in the facility.
  ' (4) The local or regional correctional facility shall allow
the school district and education service district to have safe
and reasonable access to children placed in that facility for
whom the school district is required to provide education.
  ' (5) As used in this section:
  ' (a) 'Local correctional facility' means a local correctional
facility as defined in ORS 169.005.
  ' (b) 'Regional correctional facility' means a regional
correctional facility as defined in ORS 169.620.
  '  { +  SECTION 17. + } ORS 340.045 is amended to read:
  ' 340.045. (1) An eligible student enrolled in an eligible
post-secondary course at an eligible post-secondary institution
pursuant to ORS 340.030 shall continue to be considered a
resident pupil of the student's school district for purposes of
calculation of the State School Fund grant under { +  sections 1
to 3 of this 2013 Act and + } ORS 327.006 to 327.133, 327.348 and
327.731.
  ' (2) The amount of each school district's general purpose
grant per extended ADMw as calculated under ORS 327.013 shall be
determined each fiscal year by the Department of Education and
made available to all school districts and, upon request, to any
eligible post-secondary institution.
  ' (3) A school district and any eligible post-secondary
institution that accepts a student for enrollment in an eligible
post-secondary course pursuant to ORS 340.030 shall negotiate in
good faith a financial agreement for the payment of actual
instructional costs associated with the enrollment of the
eligible student in eligible post-secondary courses, including
tuition and fees and the costs of textbooks, equipment and
materials.
  ' (4) As part of the negotiated financial agreement, an
eligible post-secondary institution shall provide the school
district with the published refund policy for eligible students
who do not complete eligible post-secondary courses in which the
students enroll and do not earn credit.
  ' (5) If, after participating in good faith negotiations, a
school district and an eligible post-secondary institution are
unable to agree on the payment of actual instructional costs as
described in subsection (3) of this section, either entity may
appeal to the department for a determination of whether the
negotiations were conducted in good faith.
  ' (6) The department shall develop a process and criteria to
use for appeals.
  ' (7)(a) If the department determines that the negotiations
were not conducted in good faith by either the school district or
the eligible post-secondary institution, the department shall
order the school district and the eligible post-secondary
institution to conduct the negotiations again.
  ' (b) If the department determines that the negotiations were
conducted in good faith by the school district and the eligible
post-secondary institution, the department shall grant the school
district a waiver under ORS 340.083 from participating in the
Expanded Options Program with the eligible post-secondary
institution with which the school district was negotiating.
  ' (8) The decision of the department shall be binding on the
school district and the eligible post-secondary institution.
  ' (9) In addition to any financial agreement entered into under
subsection (3) of this section, the resident school district of
the eligible student shall enter into an agreement with an
eligible post-secondary institution that accepts a student for
enrollment in an eligible post-secondary course that is a
nontuition course or noncredit course pursuant to ORS 340.030 for
the payment of the actual instructional costs associated with the
student's attending the eligible post-secondary course at the
institution.
  ' (10) Nothing in this section shall prohibit an eligible
post-secondary institution from receiving additional state
funding that may be available under any other law.
  '  { +  SECTION 18. + } ORS 340.045, as amended by section 17
of this 2013 Act, is amended to read:
  ' 340.045. (1) An eligible student enrolled in an eligible
post-secondary course at an eligible post-secondary institution
pursuant to ORS 340.030 shall continue to be considered a
resident pupil of the student's school district for purposes of
calculation of the State School Fund grant under   { - sections 1
to 3 of this 2013 Act and - }  ORS 327.006 to 327.133, 327.348
and 327.731.
  ' (2) The amount of each school district's general purpose
grant per extended ADMw as calculated under ORS 327.013 shall be
determined each fiscal year by the Department of Education and
made available to all school districts and, upon request, to any
eligible post-secondary institution.
  ' (3) A school district and any eligible post-secondary
institution that accepts a student for enrollment in an eligible
post-secondary course pursuant to ORS 340.030 shall negotiate in
good faith a financial agreement for the payment of actual
instructional costs associated with the enrollment of the
eligible student in eligible post-secondary courses, including
tuition and fees and the costs of textbooks, equipment and
materials.
  ' (4) As part of the negotiated financial agreement, an
eligible post-secondary institution shall provide the school
district with the published refund policy for eligible students
who do not complete eligible post-secondary courses in which the
students enroll and do not earn credit.
  ' (5) If, after participating in good faith negotiations, a
school district and an eligible post-secondary institution are
unable to agree on the payment of actual instructional costs as
described in subsection (3) of this section, either entity may
appeal to the department for a determination of whether the
negotiations were conducted in good faith.
  ' (6) The department shall develop a process and criteria to
use for appeals.
  ' (7)(a) If the department determines that the negotiations
were not conducted in good faith by either the school district or
the eligible post-secondary institution, the department shall
order the school district and the eligible post-secondary
institution to conduct the negotiations again.
  ' (b) If the department determines that the negotiations were
conducted in good faith by the school district and the eligible
post-secondary institution, the department shall grant the school
district a waiver under ORS 340.083 from participating in the
Expanded Options Program with the eligible post-secondary
institution with which the school district was negotiating.
  ' (8) The decision of the department shall be binding on the
school district and the eligible post-secondary institution.
  ' (9) In addition to any financial agreement entered into under
subsection (3) of this section, the resident school district of
the eligible student shall enter into an agreement with an
eligible post-secondary institution that accepts a student for
enrollment in an eligible post-secondary course that is a
nontuition course or noncredit course pursuant to ORS 340.030 for
the payment of the actual instructional costs associated with the
student's attending the eligible post-secondary course at the
institution.
  ' (10) Nothing in this section shall prohibit an eligible
post-secondary institution from receiving additional state
funding that may be available under any other law.
  '  { +  SECTION 19. + }  { + Sections 1, 2 and 3 of this 2013
Act are repealed. + }
  '  { +  SECTION 20. + }  { + The amendments to ORS 327.006,
327.008, 327.019, 327.125, 327.137, 339.129 and 340.045 by
sections 5, 7, 9, 11, 14, 16 and 18 of this 2013 Act, and the
repeal of sections 1, 2 and 3 of this 2013 of this 2013 Act by
section 19 of this 2013 Act, become operative on June 30,
2015. + }
  '  { +  SECTION 21. + } ORS 343.961 is amended to read:
  ' 343.961. (1) As used in this section:
  ' (a) 'Day treatment program' means a public or private program
that provides treatment of children with a mental illness, an
emotional disturbance or another mental health issue.
  ' (b) 'Eligible day treatment program' means a day treatment
program with which the Oregon Health Authority contracts for long
term care or treatment. 'Eligible day treatment program' does not
include residential treatment programs or programs that provide
care or treatment to juveniles who are in detention facilities.
  ' (c) 'Eligible residential treatment program' means a
residential treatment program with which the Oregon Health
Authority, the Department of Human Services or the Oregon Youth
Authority contracts for long term care or treatment. 'Eligible
residential treatment program' does not include psychiatric day
treatment programs or programs that provide care or treatment to
juveniles who are in detention facilities.
  ' (d) 'Residential treatment program' means a public or private
residential program that provides treatment of children with a
mental illness, an emotional disturbance or another mental health
issue.
  ' (e) 'Student' means a child who is placed in an eligible day
treatment program or eligible residential treatment program by a
public or private entity or by the child's parent.
  ' (2) The Department of Education shall be responsible for
payment of the costs of education of students in eligible day
treatment programs and eligible residential treatment programs by
contracting with the school district in which the eligible day
treatment program or eligible residential treatment program is
located. The costs of education do not include transportation,
care, treatment or medical expenses.
  ' (3)(a) The school district in which an eligible day treatment
program or eligible residential treatment program is located is
responsible for providing the education of a student, including
the identification, location and evaluation of the student for
the purpose of determining the student's eligibility to receive
special education and related services.
  ' (b) A school district that is responsible for providing an
education under this subsection may provide the education:
  ' (A) Directly or through another school district or an
education service district; and
  ' (B) In the facilities of an eligible day treatment program or
eligible residential treatment program, the facilities of a
school district or the facilities of an education service
district.
  ' (c) When a student is no longer in an eligible day treatment
program or eligible residential treatment program, the
responsibilities imposed by this subsection terminate and become
the responsibilities of the school district where the student is
a resident, as determined under ORS 339.133 and 339.134.
  '  { +  (4) The school district where the student is a resident
is responsible for providing transportation to a student enrolled
in an eligible day treatment program. Transportation must be
provided by the school district where the student is a resident

each day the student is scheduled to receive services from the
eligible day treatment program. + }
  '  { - (4) - }   { + (5) + } A school district may request the
Department of Education to combine several eligible day treatment
programs or eligible residential treatment programs into one
contract with another school district or an education service
district.
  '  { - (5) - }   { + (6) + } The Oregon Health Authority, the
Department of Human Services or the Oregon Youth Authority shall
give the school district providing the education at an eligible
day treatment program or an eligible residential treatment
program 14 days' notice, to the extent practicable, before a
student is dismissed from the program.
  '  { - (6) - }   { + (7) + } The Department of Education may
make advances to school districts responsible for providing an
education to students under this section from funds appropriated
for that purpose based on the estimated agreed cost of educating
the students per school year. Advances equal to 25 percent of the
estimated cost may be made on September 1, December 1 and March 1
of the current year. The balance may be paid whenever the full
determination of cost is made.
  '  { - (7) - }   { + (8) + } School districts that provide the
education described in this section on a year-round plan may
apply for 25 percent of the funds appropriated for that purpose
on July 1, October 1, January 1, and 15 percent on April 1. The
balance may be paid whenever the full determination of cost is
made.
  '  { - (8) - }   { + (9) + } In addition to the payment methods
described in this section, the Department of Education may:
  ' (a) Negotiate interagency agreements to pay for the cost of
education in day treatment programs and residential treatment
programs operated under the auspices of the State Board of Higher
Education; and
  ' (b) Negotiate intergovernmental agreements to pay for the
cost of education in day treatment programs and residential
treatment programs operated under the auspices of the Oregon
Health and Science University Board of Directors.
  '  { +  SECTION 22. + }  { + This 2013 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2013 Act
takes effect on its passage. + } ' .
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