Bill Text: OR HB2879 | 2013 | Regular Session | Introduced

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Bill Title: Relating to public charter schools.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2879 Detail]

Download: Oregon-2013-HB2879-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 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 440

                         House Bill 2879

Sponsored by Representative PARRISH

                             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.

  Allows public charter school to change sponsorship if charter
is terminated.

                        A BILL FOR AN ACT
Relating to public charter schools; creating new provisions; and
  amending ORS 329.838, 332.016, 338.005, 338.105, 338.115,
  338.155 and 338.165.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2013 Act is added to and made
a part of ORS chapter 338. + }
  SECTION 2.  { + (1) A public charter school governing body may
change sponsorship as provided by this section if a charter for a
public charter school is terminated as provided by ORS 338.105
(1)(a) or (b) or (5).
  (2) A public charter school governing body may seek a change in
sponsorship by submitting to the school district board of a
school district that was not the sponsor of the public charter
school a written proposal that includes:
  (a) The charter that governed the public charter school prior
to termination;
  (b) Any information or notices received by the public charter
school governing body related to the termination; and
  (c) Any other information requested by the school district
board.
  (3) Upon receipt of the information described in subsection (2)
of this section, the school district board may evaluate the
proposal and approve or disapprove the proposal using the
criteria described in ORS 338.055 (2)(b) to (h).
  (4)(a) The following decisions by a school district board that
receives a proposal under this section are final and not subject
to appeal:
  (A) Whether to evaluate the proposal for a public charter
school; and
  (B) The approval or disapproval of the proposal for a public
charter school.
  (b) The process by which a school district board makes a
decision described in paragraph (a) of this subsection is not
subject to appeal.
  (5) Within 60 days after receiving a proposal, the school
district board must notify in writing the public charter school

governing body whether the school district board approves or
disapproves the proposal.
  (6) A school district board that approves a proposal submitted
as provided by this section is not bound by the terms of the
charter that were in effect before the charter was terminated.
  (7) If a school district board approves a proposal as provided
by this section, the school district board shall become the
sponsor of the public charter school and the public charter
school may continue to operate in its existing location under a
charter entered into by the school district board and the public
charter school governing body.
  (8) Notwithstanding a proposed effective date of termination, a
public charter school may continue to operate for 60 days after
the effective date if a school district board approved a proposal
for a change in sponsorship as provided by this section prior to
the proposed effective date. During the 60 days, the initial
sponsor shall remain the sponsor of the public charter school.
  (9) A charter entered into as provided by this section is
legally binding on both the sponsor and the public charter school
governing body. The sponsor and the public charter school
governing body may amend a charter by joint agreement.
  (10) The initial period of a charter entered into as provided
by this section shall be for a length of time agreed to by the
sponsor and the public charter school governing body. Renewals of
the charter shall be subject to ORS 338.065, except that the
first renewal of the charter may be for a length of time agreed
to by the sponsor and the public charter school governing
body. + }
  SECTION 3. ORS 338.005, as amended by section 19, chapter 91,
Oregon Laws 2012, is amended to read:
  338.005. As used in this chapter, unless the context requires
otherwise:
  (1) 'Applicant' means any person or group that develops and
submits a written proposal for a public charter school to a
sponsor.
  (2) 'Institution of higher education' means a community college
operated under ORS chapter 341, a public university listed in ORS
352.002 or the Oregon Health and Science University.
  (3) 'Public charter school' means an elementary or secondary
school offering a comprehensive instructional program operating
under a written agreement entered into between a sponsor and an
applicant and operating pursuant to this chapter.
  (4) 'Remote and necessary school district' means a school
district that offers kindergarten through grade 12 and has:
  (a) An average daily membership (ADM), as defined in ORS
327.006, in the prior fiscal year of less than 110; and
  (b) A school that is located, by the nearest traveled road,
more than 20 miles from the nearest school or from a city with a
population of more than 5,000.
  (5) 'Sponsor' means:
  (a) The board of   { - the - }   { + a + } common school
district or   { - the - }   { + a + } union high school district
 { - in which the public charter school is located - }  that has
developed a written charter with an applicant
  { - to create - }   { + for + } a public charter school.
  (b) The State Board of Education pursuant to ORS 338.075.
  (c) An institution of higher education pursuant to ORS 338.075.
  (6)(a) 'Virtual public charter school' means a public charter
school that provides online courses.
  (b) 'Virtual public charter school' does not include a public
charter school that primarily serves students in a physical
location.
  SECTION 4. ORS 338.105 is amended to read:
  338.105. (1) During the term of a charter, the sponsor may
terminate the charter on any of the following grounds:

  (a) Failure to meet the terms of an approved charter or this
chapter.
  (b) Failure to meet the requirements for student performance
stated in the charter.
  (c) Failure to correct a violation of a federal or state law
that is described in ORS 338.115.
  (d) Failure to maintain insurance as described in the charter.
  (e) Failure to maintain financial stability.
  (f) Failure to maintain, for two or more consecutive years, a
sound financial management system described in the proposal
submitted under ORS 338.045 and incorporated into the written
charter under ORS 338.065.
  (2) If a charter is terminated under subsection (1) of this
section, the sponsor shall notify the public charter school
governing body at least 60 days prior to the proposed effective
date of the termination. The notice shall state the grounds for
the termination. The public charter school governing body may
request a hearing by the sponsor.
  (3)  { + When a sponsor terminates a charter as provided by
subsection (1) of this section,  + }a public charter school
governing body may appeal   { - a decision of a sponsor - }
 { + the decision for the termination  + }to:
  (a) The state board if the sponsor is an entity described in
ORS 338.005 (5)(a) or (c). The board shall adopt by rule
procedures to ensure a timely appeals process to prevent
disruption of students' education.
  (b) The circuit court pursuant to ORS 183.484 if the sponsor is
the State Board of Education.
  (4)(a) Notwithstanding subsection (2) of this section, a
sponsor may terminate a charter immediately and close a public
charter school if the public charter school is endangering the
health or safety of the students enrolled in the public charter
school.
  (b) The public charter school governing body may request a
hearing from the sponsor on the termination of the charter under
this subsection. The sponsor shall hold a hearing within 10 days
after receiving the request.
  (c) The public charter school governing body may appeal a
decision of a sponsor under this subsection to the State Board of
Education. The State Board of Education shall hold a hearing
within 10 days after receiving the appeal request.
  (d) Throughout the appeals process, the public charter school
shall remain closed at the discretion of the sponsor unless the
State Board of Education orders the sponsor to open the public
charter school and not terminate the charter.
   { +  (5) During the term of a charter, the sponsor and the
public charter school governing body may terminate the charter by
mutual agreement. + }
    { - (5) - }   { + (6) + } Termination of a charter shall not
abridge the public charter school's legal authority to operate as
a private or nonchartered public school.
   { +  (7) If a charter is terminated under subsection (1)(a) or
(b) or (5) of this section, the public charter school governing
body may seek a change in sponsorship by submitting a written
proposal to a school district board that was not the sponsor of
the public charter school as provided by section 2 of this 2013
Act.
  (8) A public charter school governing body may terminate a
charter or may close and dissolve a public charter school.
Termination or closure and dissolution may occur only at the end
of a semester. If the public charter school governing body
decides to terminate a charter or to close and dissolve a public
charter school, the public charter school governing body shall
notify the sponsor at least 180 days prior to the proposed
effective date of the termination or closure and dissolution. + }

    { - (6) - }   { + (9)(a)  + }If   { - a charter is terminated
or - }  a public charter school is  { + closed and + }
dissolved { +  or if a charter is terminated and the public
charter school governing body does not seek a change in
sponsorship as provided by section 2 of this 2013 Act within 60
days of the effective date of the termination + }:
    { - (a) - }   { + (A) + } The assets of the public charter
school that were purchased with public funds shall be given to
the State Board of Education. The State Board of Education may
disburse the assets of the public charter school to school
districts or other public charter schools.
    { - (b) - }   { + (B) + } All student education records of
the public charter school shall be transferred to the
administrative office of the school district in which the public
charter school was located.
   { +  (b) If the public charter school governing body seeks a
change in sponsorship as provided by section 2 of this 2013 Act
within 60 days of the effective date of the termination or
closure, the assets and student education records of the public
charter school shall remain with the public charter school. If a
new charter is not entered into within 60 days of the effective
date of the termination or closure, the assets and student
education records shall be dispersed as provided by paragraph (a)
of this subsection. + }
    { - (7) A public charter school governing body may only
terminate a charter, dissolve or close a public charter school at
the end of a semester. If a charter is terminated by the public
charter school governing body or a public charter school is
closed or dissolved, the public charter school governing body
shall notify the sponsor at least 180 days prior to the proposed
effective date of the termination, closure or dissolution. - }
  SECTION 5. ORS 338.115, as amended by section 9, chapter 92,
Oregon Laws 2012, is amended to read:
  338.115. (1) Statutes and rules that apply to school district
boards, school districts or other public schools do not apply to
public charter schools. However, the following laws do apply to
public charter schools:
  (a) Federal law;
  (b) ORS 30.260 to 30.300 (tort claims);
  (c) ORS 192.410 to 192.505 (public records law);
  (d) ORS 192.610 to 192.690 (public meetings law);
  (e) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (f) ORS 326.565, 326.575 and 326.580 (student records);
  (g) ORS 181.534, 326.603, 326.607, 342.223 and 342.232
(criminal records checks);
  (h) ORS 329.045 (academic content standards and instruction);
  (i) ORS 329.451 (high school diploma, modified diploma,
extended diploma and alternative certificate);
  (j) The statewide assessment system developed by the Department
of Education for mathematics, science and English under ORS
329.485 (2);
  (k) ORS 337.150 (textbooks);
  (L) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (m) ORS 339.250 (12) (prohibition on infliction of corporal
punishment);
  (n) ORS 339.326 (notice concerning students subject to juvenile
court petitions);
  (o) ORS 339.370, 339.372, 339.388 and 339.400 (reporting of
abuse and sexual conduct and training on prevention and
identification of abuse and sexual conduct);
  (p) ORS chapter 657 (Employment Department Law);
  (q) ORS 659.850, 659.855 and 659.860 (discrimination);
  (r) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year;
  (s) Health and safety statutes and rules;
  (t) Any statute or rule that is listed in the charter;
  (u) ORS 339.119 (consideration for educational services); and
  (v) This chapter.
  (2) Notwithstanding subsection (1) of this section, a charter
may specify that statutes and rules that apply to school district
boards, school districts and other public schools may apply to a
public charter school.
  (3) If a statute or rule applies to a public charter school,
then the terms 'school district' and 'public school' include
public charter school as those terms are used in that statute or
rule.
  (4) A public charter school may not violate the Establishment
Clause of the First Amendment to the United States Constitution
or section 5, Article I of the Oregon Constitution, or be
religion based.
  (5)(a) A public charter school shall maintain an active
enrollment of at least 25 students.
  (b) For a public charter school that provides educational
services under a cooperative agreement described in ORS 338.080,
the public charter school is in compliance with the requirements
of this subsection if the public charter school provides
educational services under the cooperative agreement to at least
25 students, without regard to the school districts in which the
students are residents.
  (6) A public charter school may sue or be sued as a separate
legal entity.
  (7) The sponsor, members of the governing board of the sponsor
acting in their official capacities and employees of a sponsor
acting in their official capacities are immune from civil
liability with respect to all activities related to a public
charter school within the scope of their duties or employment.
  (8) A public charter school may enter into contracts and may
lease facilities and services from a school district, education
service district, public university listed in ORS 352.002, other
governmental unit or any person or legal entity.
  (9) A public charter school may not levy taxes or issue bonds
under which the public incurs liability.
  (10) A public charter school may receive and accept gifts,
grants and donations from any source for expenditure to carry out
the lawful functions of the school.
  (11) { + (a) + } The school district in which the public
charter school is located shall offer a high school diploma, a
modified diploma, an extended diploma or an alternative
certificate to any public charter school student who meets the
district's and state's standards for a high school diploma, a
modified diploma, an extended diploma or an alternative
certificate.
   { +  (b) Notwithstanding paragraph (a) of this subsection, if
the sponsorship of a public charter school was changed as
provided by section 2 of this 2013 Act, the school district that
is the sponsor of the public charter school shall offer a high
school diploma, a modified diploma, an extended diploma or an
alternative certificate to any public charter school student who
meets the district's and state's standards for a high school
diploma, a modified diploma, an extended diploma or an
alternative certificate. + }
  (12) A high school diploma, a modified diploma, an extended
diploma or an alternative certificate issued by a public charter
school grants to the holder the same rights and privileges as a
high school diploma, a modified diploma, an extended diploma or
an alternative certificate issued by a nonchartered public
school.
  (13) Prior to beginning operation, the public charter school
shall show proof of insurance to the sponsor as specified in the
charter.

  (14) A public charter school may receive services from an
education service district in the same manner as a nonchartered
public school in the school district in which the public charter
school is located.
  SECTION 6. ORS 338.115, as amended by section 7, chapter 839,
Oregon Laws 2007, section 12, chapter 50, Oregon Laws 2008,
section 4, chapter 618, Oregon Laws 2009, section 3, chapter 53,
Oregon Laws 2010, section 3, chapter 94, Oregon Laws 2011,
section 118, chapter 637, Oregon Laws 2011, section 5, chapter
682, Oregon Laws 2011, and section 10, chapter 92, Oregon Laws
2012, is amended to read:
  338.115. (1) Statutes and rules that apply to school district
boards, school districts or other public schools do not apply to
public charter schools. However, the following laws do apply to
public charter schools:
  (a) Federal law;
  (b) ORS 30.260 to 30.300 (tort claims);
  (c) ORS 192.410 to 192.505 (public records law);
  (d) ORS 192.610 to 192.690 (public meetings law);
  (e) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (f) ORS 326.565, 326.575 and 326.580 (student records);
  (g) ORS 181.534, 326.603, 326.607, 342.223 and 342.232
(criminal records checks);
  (h) ORS 329.045 (academic content standards and instruction);
  (i) ORS 329.451 (high school diploma, modified diploma,
extended diploma and alternative certificate);
  (j) ORS 329.496 (physical education);
  (k) The statewide assessment system developed by the Department
of Education for mathematics, science and English under ORS
329.485 (2);
  (L) ORS 337.150 (textbooks);
  (m) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (n) ORS 339.250 (12) (prohibition on infliction of corporal
punishment);
  (o) ORS 339.326 (notice concerning students subject to juvenile
court petitions);
  (p) ORS 339.370, 339.372, 339.388 and 339.400 (reporting of
abuse and sexual conduct and training on prevention and
identification of abuse and sexual conduct);
  (q) ORS chapter 657 (Employment Department Law);
  (r) ORS 659.850, 659.855 and 659.860 (discrimination);
  (s) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year;
  (t) Health and safety statutes and rules;
  (u) Any statute or rule that is listed in the charter;
  (v) ORS 339.119 (consideration for educational services); and
  (w) This chapter.
  (2) Notwithstanding subsection (1) of this section, a charter
may specify that statutes and rules that apply to school district
boards, school districts and other public schools may apply to a
public charter school.
  (3) If a statute or rule applies to a public charter school,
then the terms 'school district' and 'public school' include
public charter school as those terms are used in that statute or
rule.
  (4) A public charter school may not violate the Establishment
Clause of the First Amendment to the United States Constitution
or section 5, Article I of the Oregon Constitution, or be
religion based.
  (5)(a) A public charter school shall maintain an active
enrollment of at least 25 students.
  (b) For a public charter school that provides educational
services under a cooperative agreement described in ORS 338.080,
the public charter school is in compliance with the requirements
of this subsection if the public charter school provides
educational services under the cooperative agreement to at least
25 students, without regard to the school districts in which the
students are residents.
  (6) A public charter school may sue or be sued as a separate
legal entity.
  (7) The sponsor, members of the governing board of the sponsor
acting in their official capacities and employees of a sponsor
acting in their official capacities are immune from civil
liability with respect to all activities related to a public
charter school within the scope of their duties or employment.
  (8) A public charter school may enter into contracts and may
lease facilities and services from a school district, education
service district, public university listed in ORS 352.002, other
governmental unit or any person or legal entity.
  (9) A public charter school may not levy taxes or issue bonds
under which the public incurs liability.
  (10) A public charter school may receive and accept gifts,
grants and donations from any source for expenditure to carry out
the lawful functions of the school.
  (11) { + (a) + } The school district in which the public
charter school is located shall offer a high school diploma, a
modified diploma, an extended diploma or an alternative
certificate to any public charter school student who meets the
district's and state's standards for a high school diploma, a
modified diploma, an extended diploma or an alternative
certificate.
   { +  (b) Notwithstanding paragraph (a) of this subsection, if
the sponsorship of a public charter school was changed as
provided by section 2 of this 2013 Act, the school district that
is the sponsor of the public charter school shall offer a high
school diploma, a modified diploma, an extended diploma or an
alternative certificate to any public charter school student who
meets the district's and state's standards for a high school
diploma, a modified diploma, an extended diploma or an
alternative certificate. + }
  (12) A high school diploma, a modified diploma, an extended
diploma or an alternative certificate issued by a public charter
school grants to the holder the same rights and privileges as a
high school diploma, a modified diploma, an extended diploma or
an alternative certificate issued by a nonchartered public
school.
  (13) Prior to beginning operation, the public charter school
shall show proof of insurance to the sponsor as specified in the
charter.
  (14) A public charter school may receive services from an
education service district in the same manner as a nonchartered
public school in the school district in which the public charter
school is located.
  SECTION 7. ORS 338.155 is amended to read:
  338.155. (1)(a) Students of a public charter school shall be
considered to be residents of the school district in which the
public charter school is located for purposes of distribution of
the State School Fund.
  (b)(A) For the purpose of determining the amounts to be
distributed from the State School Fund to a school district in
which a public charter school is located, the district extended
ADMw described in ORS 327.013 shall be determined by:
  (i) Separately calculating the extended ADMw for students at
the public charter school and the extended ADMw for students at
nonchartered public schools in the school district; and
  (ii) Adding the extended ADMw for students at the public
charter school and the extended ADMw for students at nonchartered
public schools in the school district.
  (B) Except as provided in subparagraph (A) of this paragraph:
  (i) All other calculations made under ORS 327.013 shall be made
as though the students enrolled at a public charter school were
students enrolled at the public schools in the school district in
which the public charter school is located; and
  (ii) All references to the district extended ADMw shall be
based on the calculation made under subparagraph (A)(ii) of this
paragraph.
  (C) All amounts to be distributed from the State School Fund to
public charter schools shall first be distributed to the school
district in which the public charter school is located.
  (2) A school district shall contractually establish, with any
public charter school that is sponsored by the board of the
school district { +  and that is within the boundaries of the
school district + }, payment for provision of educational
services to the public charter school's students. The payment
shall equal an amount per weighted average daily membership
(ADMw) of the public charter school that is at least equal to:
  (a) Eighty percent of the amount of the school district's
General Purpose Grant per ADMw as calculated under ORS 327.013
for students who are enrolled in kindergarten through grade
eight; and
  (b) Ninety-five percent of the amount of the school district's
General Purpose Grant per ADMw as calculated under ORS 327.013
for students who are enrolled in grades 9 through 12.
  (3) A school district shall contractually establish, with any
public charter school that is sponsored by the State Board of
Education { + , a school district board as provided by section 2
of this 2013 Act + } or an institution of higher education and
that is within the boundaries of the school district, payment for
provision of educational services to the public charter school's
students. The payment shall equal an amount per weighted average
daily membership (ADMw) of the public charter school that is at
least equal to:
  (a) Ninety percent of the amount of the school district's
General Purpose Grant per ADMw as calculated under ORS 327.013
for students who are enrolled in kindergarten through grade
eight; and
  (b) Ninety-five percent of the amount of the school district's
General Purpose Grant per ADMw as calculated under ORS 327.013
for students who are enrolled in grades 9 through 12.
  (4) The estimated amount of each school district's General
Purpose Grant per ADMw shall be determined each year by the
Department of Education and made available to all school
districts.
  (5) The school district in which the public charter school is
located shall transfer an amount per weighted average daily
membership (ADMw) of the public charter school that is equal to
50 percent of the amount of the school district's General Purpose
Grant per ADMw as calculated under ORS 327.013 that is not paid
to the public charter school through a contract created pursuant
to subsection (2) or (3) of this section to:
  (a) For a public charter school sponsored by a school
district { +  board + }, any school district in which the parent
or guardian of, or person in parental relationship to, a student
of a public charter school resides pursuant to ORS 339.133 and
339.134;
   { +  (b) For a public charter school sponsored by a school
district board as provided by section 2 of this 2013 Act, the
school district board that is the sponsor; + }
    { - (b) - }   { + (c) + } For a public charter school
sponsored by the State Board of Education, the Department of
Education; or
    { - (c) - }   { + (d) + } For a public charter school
sponsored by an institution of higher education, the institution
of higher education.
  (6) The department may use any moneys received under this
section for activities related to public charter schools.

  (7) A school district and a public charter school may negotiate
to establish a payment for the provision of educational services
to the public charter school's students that is more than the
minimum amounts specified in subsection (2) or (3) of this
section.
  (8) A school district shall send payment to a public charter
school based on a contract negotiated under this section within
10 days after receiving payments from the State School Fund
pursuant to ORS 327.095.
  (9)(a) A public charter school may apply for any grant that is
available to school districts or nonchartered public schools from
the Department of Education. The department shall consider the
application of the public charter school in the same manner as an
application from a school district or nonchartered public school.
  (b) The department shall award any grant that is available to
school districts based solely on the weighted average daily
membership (ADMw) of the school district directly to the public
charter school. This paragraph does not apply to any grant from
the State School Fund.
  SECTION 8. ORS 338.165 is amended to read:
  338.165. (1)(a) The school district in which a public charter
school is located shall identify, locate and evaluate students
enrolled in the public charter school to determine which students
may be in need of special education and related services.
  (b) The school district in which a public charter school is
located:
  (A) Shall receive funding from the State School Fund as
provided by this section for students who are eligible for
special education and related services and who are enrolled in
the public charter school; and
  (B) Is eligible to receive high cost disabilities grants as
provided by ORS 327.348 for students who are enrolled in the
public charter school.
  (c) Students who are eligible for special education and related
services shall be considered students of the school district in
which the public charter school is located for purposes of data
collection and reporting.
  (2) If a student is enrolled in a public charter school and is
eligible for special education and related services, an
additional amount shall be added to the ADM of the public charter
school as described in ORS 327.013 (1)(c)(A)(i). The payment per
ADMw in the public charter school that is attributable to the
student who is eligible for special education and related
services shall equal an amount that is at least equal to:
  (a) 40 percent of the amount of the General Purpose Grant per
ADMw for the school district in which the public charter school
is located, as calculated under ORS 327.013, for students who are
enrolled in kindergarten through grade eight; and
  (b) 47.5 percent of the amount of the General Purpose Grant per
ADMw for the school district in which the public charter school
is located, as calculated under ORS 327.013, for students who are
enrolled in grades 9 through 12.
    { - (3) If the State Board of Education is the sponsor of a
public charter school, the school district in which the public
charter school is located, for each ADMw that is attributable to
a student enrolled in a public charter school who is eligible for
special education and related services, shall transfer five
percent of the amount of the school district's General Purpose
Grant per ADMw as calculated under ORS 327.013 to the State Board
of Education. - }
    { - (4) - }   { + (3) + } Notwithstanding subsection (2) of
this section, a school district and a public charter school may
negotiate on a case-by-case basis for an alternative distribution
of funds other than the distribution prescribed by subsection (2)
of this section.

    { - (5) - }   { + (4) + } Payments under this section must be
made within 10 days after a school district receives payment from
the State School Fund pursuant to ORS 327.095.
  SECTION 9. ORS 332.016 is amended to read:
  332.016. (1) A person who is an employee of a school district
may not serve as a member of the district school board for the
district by which the employee is employed.
  (2) A person who is an employee of a public charter school may
not serve as a member of the district school board of the
district { + :
  (a) + } In which the public charter school that employs the
person is located  { - . - }  { + ; or
  (b) That is the sponsor of the public charter school, as
provided by section 2 of this 2013 Act. + }
  (3)   { - Notwithstanding subsection (1) or (2) of this
section, a person who is an employee of a school district or a
public charter school may serve as a member of the district
school board for the district by which the employee is employed
or the district in which the public charter school that employs
the person is located - }   { + The prohibitions described in
subsections (1) and (2) of this section do not apply + } if:
  (a) The person is employed by the district or public charter
school as a substitute school bus driver; and
  (b) The district has an average daily membership (ADM), as
defined in ORS 327.006, of 50 or less.
  (4) A district school board member who was eligible to serve on
a district school board under subsection (3) of this section at
the beginning of the member's term of office may continue to
serve on the board for the remainder of the member's term of
office regardless of any change to the ADM of the district.
  SECTION 10. ORS 329.838 is amended to read:
  329.838. (1) The School District Collaboration Grant Program is
established to provide funding for school districts to improve
student achievement through the voluntary collaboration of
teachers and administrators to design and implement new
approaches to:
  (a) Career pathways for teachers and administrators;
  (b) Evaluation processes for teachers and administrators;
  (c) Compensation models for teachers and administrators; and
  (d) Enhanced professional development opportunities for
teachers and administrators.
  (2)(a) The Department of Education shall administer the grant
program established by this section and may provide technical
expertise to school districts applying for or receiving a grant
under this section.
  (b) For the purpose of providing technical expertise, the
department may enter into contracts with nonprofit entities that
have experience in designing and implementing approaches that are
similar to the approaches described in subsection (1) of this
section.
  (c) The department may expend no more than five percent of the
amount appropriated to the department for the grant program to
pay for the administrative costs incurred by the department under
this section, including any costs related to contracts described
in paragraph (b) of this subsection.
  (3) Each school district may apply to the department for a
grant under this section. Prior to applying for a grant, the
school district must receive the approval to apply for the grant
from:
  (a) The exclusive bargaining representative for the teachers of
the school district or, if the teachers are not represented by an
exclusive bargaining representative, from the teachers of the
school district;
  (b) The chairperson of the school district board; and
  (c) The superintendent of the school district.

  (4)(a) Funding for the grant program established by this
section shall be provided through the School District
Collaboration Grant Account established by ORS 329.839.
  (b) For the purpose of a grant awarded under this section:
  (A) Grant Amount = School district ADMw X (the total amount
available for distribution during a fiscal year through the
School District Collaboration Grant Program : the total ADMw of
the school districts that receive a grant for the fiscal year
through the School District Collaboration Grant Program).
  (B) ADMw shall be calculated as provided by ORS 327.013,
338.155 (1) and 338.165   { - (3) - }  { +  (2) + }.
  (c) Moneys received by a school district under this section
must be separately accounted for and may be used only to provide
funding for the purposes described in the application submitted
by the school district.
  (5) The department shall accumulate, evaluate and publish
student achievement results of school districts receiving grants
under this section to determine the effectiveness of the
approaches implemented by the school districts under the grant
program.
  (6)(a) Except as provided by paragraph (b) of this subsection,
the State Board of Education may adopt any rules necessary for
the implementation of the grant program established by this
section.
  (b) The board may not adopt any rules that establish statewide
standards for the design and implementation of the approaches
described in subsection (1) of this section.
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