Bill Text: OR HB3417 | 2011 | Regular Session | Enrolled
Bill Title: Relating to finances of public charter schools; and declaring an emergency.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2011-08-02 - Chapter 684, (2011 Laws): Effective date August 2, 2011. [HB3417 Detail]
Download: Oregon-2011-HB3417-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 3417
Sponsored by Representative HUNT (at the request of Oregon City
School District)
CHAPTER ................
AN ACT
Relating to finances of public charter schools; creating new
provisions; amending ORS 327.013, 338.045, 338.055, 338.095,
338.120 and 338.155; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 338.095 is amended to read:
338.095. { + (1) The financial management system of a public
charter school must include a budget and accounting system that:
(a) Is compatible with the budget and accounting system of the
sponsor of the school; and
(b) Complies with the requirements of the uniform budget and
accounting system adopted by rule of the State Board of Education
under ORS 327.511. + }
{ - (1) - } { + (2) + } A public charter school shall
report to the sponsor and the State Board of Education at least
annually on the performance of the school and its students. A
public charter school shall disclose in its report information
necessary to make a determination of compliance with the
requirements of this chapter. The sponsor or the sponsor's
designee at least annually shall visit the public charter school
site and review the public charter school's compliance with the
terms and provisions of the charter.
{ - (2) - } { + (3) + } The public charter school shall
have an annual audit of the accounts of the public charter school
prepared in accordance with the Municipal Audit Law, ORS 297.405
to 297.555 and 297.990. After an audit, the following shall be
forwarded to the sponsor, the State Board of Education and the
Department of Education:
(a) A copy of the annual audit;
(b) Any statements from the public charter school that show the
results of all operations and transactions affecting the
financial status of the public charter school during the
preceding annual audit period for the school; and
(c) A balance sheet containing a summary of the assets and
liabilities of the public charter school as of the closing date
of the preceding annual audit period for the school.
{ - (3) - } { + (4) + } The State Board of Education may
require public charter schools to file reports with the
Department of Education as necessary to enable the department to
gather information on public charter schools for inclusion in the
Oregon Report Card issued pursuant to ORS 329.115.
Enrolled House Bill 3417 (HB 3417-A) Page 1
SECTION 2. ORS 338.120, as amended by section 1, chapter 72,
Oregon Laws 2010, is amended to read:
338.120. (1) In addition to any other requirements of this
chapter for a public charter school, a virtual public charter
school must have:
(a) A plan for academic achievement that addresses how the
school will improve student learning and meet academic content
standards required by ORS 329.045.
(b) Performance criteria the school will use to measure the
progress of the school in meeting the academic performance goals
set by the school for its first five years of operation.
(c) A plan for implementing the proposed education program of
the school by directly and significantly involving parents and
guardians of students enrolled in the school and involving the
professional employees of the school.
(d) A budget, business plan and governance plan for the
operation of the school. { - The budget and accounting system
of the school must be compatible with the budget and accounting
system of the sponsor of the virtual public charter school and
must comply with the requirements of the uniform budget and
accounting system adopted by rule of the State Board of Education
under ORS 327.511. - }
(e) In the charter of the school, a requirement that the
school:
(A) Monitor and track student progress and attendance; and
(B) Provide student assessments in a manner that ensures that
an individual student is being assessed and that the assessment
is valid.
(f) Notwithstanding ORS 338.135 (7), a plan to ensure that:
(A) All superintendents, assistant superintendents and
principals of the school are licensed to administer by the
Teacher Standards and Practices Commission; and
(B) All teachers of the school are licensed to teach by the
Teacher Standards and Practices Commission and are highly
qualified as described in the federal No Child Left Behind Act of
2001 (P.L. 107-110, 115 Stat. 1425).
(g) A plan for maintaining student records and school records,
including financial records, at a designated central office of
operations that is located:
(A) If the sponsor is a school district, within the school
district that is the sponsor and as specified in the charter of
the school; or
(B) If the sponsor is the State Board of Education, at a
central office located in Oregon and as specified in the charter
of the school.
(h) A plan to provide equitable access to the education program
of the school by ensuring that each student enrolled in the
school:
(A) Has access to and use of computer and printer equipment as
needed;
(B) Is offered an Internet service cost reimbursement
arrangement under which the school reimburses the parent or
guardian of the student, at a rate set by the school, for the
costs of obtaining Internet service at the minimum connection
speed required to effectively access the education program
provided by the school; or
(C) Has access to and use of computer and printer equipment and
is offered Internet service cost reimbursement.
(i) A plan to provide access to computer and printer equipment
and the Internet service cost reimbursement as described in
Enrolled House Bill 3417 (HB 3417-A) Page 2
paragraph (h) of this subsection by students enrolled in the
school who are from families that qualify as low-income under
Title I of the federal Elementary and Secondary Education Act of
1965 (20 U.S.C. 6301 et seq.).
(j) A plan to conduct school-sponsored optional educational
events at least six times each school year at locations selected
to provide convenient access to all students enrolled in the
school who want to participate.
(k) A plan to conduct meetings at least twice a week between
teachers and students enrolled in the school, either in person or
through the use of conference calls or other technology.
(L) A plan to provide opportunities for face-to-face meetings
between teachers and students enrolled in the school at least six
times each school year.
(m) A plan to provide, at the time of a student's enrollment,
written notice to the student's resident school district and to
the sponsor. Notification must be provided within 10 days after
enrollment and must include:
(A) The name, age and address of the student; and
(B) The name of the school in which the student was formerly
enrolled.
(n) A plan to provide, at the time of a student's withdrawal,
written notice to the student's resident school district and to
the sponsor. Notification must be provided within 10 days after
withdrawal and must include:
(A) The name, age and address of the student;
(B) The name of the school in which the student will enroll, if
known to the virtual public charter school; and
(C) The last day on which the student was enrolled at the
virtual public charter school.
(o) An agreement to provide a student's education records to
the student's resident school district or to the sponsor, upon
request of the resident school district or sponsor.
(2) If a virtual public charter school enters into a contract
with a third-party entity to provide educational services for the
virtual public charter school, the virtual public charter school
must have on file the third-party entity's budget for the
provision of educational services and that budget must itemize:
(a) The salaries of supervisory and management personnel and
consultants who are providing educational or related services for
a public charter school in this state; and
(b) The annual operating expenses and profit margin of the
third-party entity for providing educational services to a public
charter school in this state.
(3)(a) The sponsor or a member of the public may request access
to any of the documents described in subsections (1) and (2) of
this section that are public records, as provided by ORS 192.410
to 192.505.
(b) Upon request by a sponsor or a member of the public, a
virtual public charter school must provide reasonable access to
the documents described in subsections (1) and (2) of this
section that are public records, as provided by ORS 192.410 to
192.505. The documents may be provided electronically.
SECTION 3. { + The amendments to ORS 338.095 and 338.120 by
sections 1 and 2 of this 2011 Act become operative on January 1,
2012. + }
SECTION 4. ORS 338.045 is amended to read:
338.045. (1) An applicant seeking to establish a public charter
school shall submit a written proposal to a school district
board.
Enrolled House Bill 3417 (HB 3417-A) Page 3
(2) The proposal shall include, but need not be limited to:
(a) The identification of the applicant;
(b) The name of the proposed public charter school;
(c) A description of the philosophy and mission of the public
charter school;
(d) A description of the curriculum of the public charter
school;
(e) A description of the expected results of the curriculum and
the verified methods of measuring and reporting objective results
that will show the growth of knowledge of students attending the
public charter school and allow comparisons with public schools;
(f) The governance structure of the public charter school;
(g) The projected enrollment to be maintained and the ages or
grades to be served;
(h) The target population of students the public charter school
will be designed to serve;
(i) A description of any distinctive learning or teaching
techniques to be used in the public charter school;
(j) The legal address, facilities and physical location of the
public charter school, if known;
(k) A description of admission policies and application
procedures;
(L) The statutes and rules that shall apply to the public
charter school;
(m) The proposed budget and financial plan for the public
charter school and evidence that the proposed budget and
financial plan for the public charter school are financially
sound;
(n) A description of the financial management { - systems - }
{ + system + } for the public charter school { + , an
explanation of how the financial management system will meet the
requirements of ORS 338.095 (1) + } and a plan for having the
financial management
{ - systems - } { + system + } in place at the time the
school begins operating;
(o) The standards for behavior and the procedures for the
discipline, suspension or expulsion of students;
(p) The proposed school calendar for the public charter school,
including the length of the school day and school year;
(q) A description of the proposed staff members and required
qualifications of teachers at the public charter school;
(r) The date upon which the public charter school would begin
operating;
(s) The arrangements for any necessary special education and
related services provided pursuant to ORS 338.165 for children
with disabilities who may attend the public charter school;
(t) Information on the manner in which community groups may be
involved in the planning and development process of the public
charter school;
(u) The term of the charter;
(v) The plan for performance bonding or insuring the public
charter school, including buildings and liabilities;
(w) A proposed plan for the placement of public charter school
teachers, other school employees and students of the public
charter school upon termination or nonrenewal of a charter;
(x) The manner in which the program review and fiscal audit
will be conducted; and
(y) In the case of an existing public school being converted to
charter status:
Enrolled House Bill 3417 (HB 3417-A) Page 4
(A) The alternative arrangements for students who choose not to
attend the public charter school and for teachers and other
school employees who choose not to participate in the public
charter school; and
(B) The relationship that will exist between the public charter
school and its employees, including evidence that the terms and
conditions of employment have been addressed with affected
employees and their recognized representative, if any.
(3) In addition to the requirements of subsection (2) of this
section, the school district board may require any additional
information the board considers relevant to the formation or
operation of a public charter school.
(4) At the request of the applicant, the school district board
may provide technical assistance in developing the proposal for
operation of the public charter school.
(5) School districts, education service districts and other
public bodies, as defined in ORS 174.109, shall make available to
the public lists of vacant and unused public buildings and
portions of buildings that may be suitable for the operation of a
public charter school. The lists shall be provided to developing
or operating public charter schools within 30 days of a written
request. Nothing in this subsection requires the owner of a
building on the list to sell or lease the building or any portion
of the building to a public charter school or a public charter
school governing body.
SECTION 5. ORS 338.055 is amended to read:
338.055. (1) Within 60 days of receipt of a proposal submitted
under ORS 338.045, the school district board shall hold a public
hearing on the provisions of the proposal.
(2) The school district board shall evaluate a proposal in good
faith using the following criteria:
(a) The demonstrated, sustainable support for the public
charter school by teachers, parents, students and other community
members, including comments received at the public hearing held
under subsection (1) of this section;
(b) The demonstrated financial stability of the public charter
school, including the demonstrated ability of the school to have
a sound financial management system { + that is + } in place at
the time the school begins operating { + and that meets the
requirements of ORS 338.095 (1) + };
(c) The capability of the applicant, in terms of support and
planning, to provide comprehensive instructional programs to
students pursuant to an approved proposal;
(d) The capability of the applicant, in terms of support and
planning, to specifically provide, pursuant to an approved
proposal, comprehensive instructional programs to students
identified by the applicant as academically low achieving;
(e) The extent to which the proposal addresses the information
required in ORS 338.045;
(f) Whether the value of the public charter school is
outweighed by any directly identifiable, significant and adverse
impact on the quality of the public education of students
residing in the school district in which the public charter
school will be located;
(g) Whether there are arrangements for any necessary special
education and related services for children with disabilities
pursuant to ORS 338.165; and
(h) Whether there are alternative arrangements for students and
for teachers and other school employees who choose not to attend
or who choose not to be employed by the public charter school.
Enrolled House Bill 3417 (HB 3417-A) Page 5
(3) The school district board must approve a proposal or state
in writing the reasons for disapproving a proposal within 30 days
after the public hearing held under subsection (1) of this
section.
(4) Written notice of the school district board's action shall
be sent to the applicant. If the proposal is not approved, the
reasons for the denial and suggested remedial measures, if any,
shall be clearly stated in the notice sent by the school district
board to the applicant. If the proposal is not approved, the
applicant may amend the proposal to address objections and any
suggested remedial measures and resubmit the proposal to the
school district board. The school district board shall approve or
disapprove the resubmitted proposal within 20 days after
receiving it. If the proposal is not approved, the applicant may
appeal the decision of the school district board to the State
Board of Education.
(5) Individual elements in a public charter school proposal may
be changed through the proposal and chartering process.
(6) A proposal to convert an existing public school to a public
charter school must be approved by the school district board of
the public school.
(7) The school district board or the State Board of Education
shall not charge any fee to applicants for the proposal process.
(8) Upon request by a school district, the State Board of
Education may grant an extension of any timeline required by this
section if the district has good cause for requesting the
extension.
SECTION 6. { + The amendments to ORS 338.045 and 338.055 by
sections 4 and 5 of this 2011 Act become operative on January 1,
2012, and apply to proposals submitted on or after January 1,
2012. + }
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, payment for provision of educational services to
Enrolled House Bill 3417 (HB 3417-A) Page 6
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 and 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 subsections (2) or (3) of this section to:
(a) 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; or
(b) The Department of Education if the State Board of Education
is the sponsor of the public charter school.
(6) The department may use any money 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
Enrolled House Bill 3417 (HB 3417-A) Page 7
charter school. This paragraph does not apply to any grant from
the State School Fund.
SECTION 8. ORS 327.013 is amended to read:
327.013. The State School Fund distributions for school
districts include the following grants:
(1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw. For the purpose of the calculation made
under this subsection:
(a) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum of money available for distribution.
(b) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor. For the purpose of the calculation made under
this paragraph:
(A) Statewide Target per ADMw Grant = $4,500.
(B) Teacher Experience Factor = $25 X {District average teacher
experience - statewide average teacher experience}. As used in
this subparagraph, 'average teacher experience' means the
average, in years, of teaching experience of licensed teachers as
reported to the Department of Education.
(c) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater. { + The calculation of the district
extended ADMw must be made as provided by ORS 338.155 (1)(b) if a
public charter school is located in the school district. + }For
the purpose of this paragraph:
(A) Weighted average daily membership or ADMw = average daily
membership + an additional amount computed as follows:
(i) 1.0 for each student in average daily membership eligible
for special education as a child with a disability under ORS
343.035, which may not exceed 11 percent of the district's ADM
without review and approval by the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities, as defined in ORS 169.005,
or adult regional correctional facilities, as defined in ORS
169.620, may not be included in the calculation made under this
sub-subparagraph.
(ii) 0.5 for each student in average daily membership eligible
for and enrolled in an English as a second language program under
ORS 336.079.
(iii) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
(iv) -0.1 for each student in average daily membership enrolled
in an elementary district operating kindergarten through grade
six or kindergarten through grade eight or in an area of a
unified school district where the district is only responsible
for educating students in kindergarten through grade eight.
(v) 0.25 times the sum of the following:
(I) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the United States Department of
Education based on the most recent federal decennial census, as
adjusted by the school district's proportion of students in the
county receiving free or reduced price lunches under the United
States Department of Agriculture's current Income Eligibility
Guidelines if the number is higher than the number determined
from census data and only if the school district had an average
daily membership of 2,500 or less for the 1995-1996 school year,
and as further adjusted by the number of students in average
Enrolled House Bill 3417 (HB 3417-A) Page 8
daily membership in June of the year of distribution divided by
number of students in average daily membership in the district,
or its predecessors, in June of the year of the most recent
federal decennial census;
(II) The number of children in foster homes in the district as
determined by the report of the Department of Human Services to
the United States Department of Education, 'Annual Statistical
Report on Children in Foster Homes and Children in Families
Receiving AFDC Payments in Excess of the Poverty Income Level, '
or its successor, for October 31 of the year prior to the year of
distribution; and
(III) The number of children in the district in
state-recognized facilities for neglected and delinquent
children, based on information from the Department of Human
Services for October 31 of the year prior to the year of
distribution.
(vi) The amount determined under ORS 327.077 for each remote
small elementary school and for each small high school in the
district.
(B) All numbers of children used for the computation in this
paragraph must reflect any district consolidations that have
occurred since the numbers were compiled.
(C) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of
students described in subparagraph (A)(v) and (vi) of this
paragraph, may not exceed 2.0.
(2) High cost disabilities grant = the total amount received by
a school district under ORS 327.348 for providing special
education and related services to resident pupils with
disabilities.
(3)(a) Transportation grant equals:
(A) 70 percent of approved transportation costs for those
school districts ranked below the 80th percentile under paragraph
(b) of this subsection.
(B) 80 percent of approved transportation costs for those
school districts ranked in or above the 80th percentile but below
the 90th percentile under paragraph (b) of this subsection.
(C) 90 percent of approved transportation costs for those
school districts ranked in or above the 90th percentile under
paragraph (b) of this subsection.
(b) Each fiscal year, the Department of Education shall rank
school districts based on the approved transportation costs per
ADM of each school district, ranking the school district with the
highest approved transportation costs per ADM at the top of the
order.
(4)(a) Facility Grant = 8 percent of total construction costs
of new school buildings.
(b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
(c) As used in this subsection:
(A) 'New school building' includes new school buildings,
structures added onto existing school buildings and
premanufactured structures added to a school district if those
buildings or structures are to be used for instructing students.
(B) 'Construction costs' does not include costs for land
acquisition.
SECTION 9. { + The amendments to ORS 327.013 and 338.155 by
sections 7 and 8 of this 2011 Act apply to State School Fund
distributions commencing with the 2011-2012 distribution. + }
Enrolled House Bill 3417 (HB 3417-A) Page 9
SECTION 10. { + This 2011 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2011 Act takes effect on
July 1, 2011. + }
----------
Passed by House June 21, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 21, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 3417 (HB 3417-A) Page 10
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 3417 (HB 3417-A) Page 11
