Bill Text: OR SB1540 | 2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to education; declaring an emergency.

Spectrum: Unknown

Status: (Failed) 2012-03-05 - In committee upon adjournment. [SB1540 Detail]

Download: Oregon-2012-SB1540-Introduced.html


     76th OREGON LEGISLATIVE ASSEMBLY--2012 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 250

                        Senate Bill 1540

Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Senate Interim Committee on
  Education and Workforce Development)

                             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.

  Prohibits education service district board from declaring
office of director vacant if director resides in school district
that withdraws from education service district unless director's
term expires or director's office is otherwise declared vacant.
  Requires children five or six years of age who are enrolled in
public school to maintain regular attendance at public school.
  Requires State Board of Education to encourage increased
learning time.
  Modifies contents of, and process for submitting, proposal to
establish public charter school. Modifies process for renewal and
termination of charter for public charter school. Clarifies list
of statutes and rules that apply to public charter schools.
  Extends deadline for implementing use of model core teaching
standards in annual evaluations of teachers.
  Removes authority of education service district to provide
entrepreneurial services and facilities to public and private
entities and to school districts that are not component school
districts.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to education; creating new provisions; amending ORS
  329.025, 329.045, 329.235, 334.095, 338.005, 338.025, 338.035,
  338.045, 338.055, 338.065, 338.075, 338.095, 338.105, 338.115,
  339.010, 339.020 and 343.221 and sections 9 and 11, chapter
  609, Oregon Laws 2011, and section 12, chapter 695, Oregon Laws
  2011; repealing ORS 334.185; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 334.095 is amended to read:
  334.095. (1) The education service district board shall declare
the office of  { + a + } director vacant   { - upon the happening
of any of the following - }  { +  when the incumbent + }:
  (a)   { - When an incumbent - }  Dies or resigns;
  (b)   { - When an incumbent - }  Is removed from office or
 { + a court declares + } the election   { - thereto has been
declared void by the judgment of any court - }  { +  for the
office void + };
  (c)   { - When an incumbent - }  Ceases to be a resident of a
school district that is   { - a component school district - }
 { + located within the territory + } of the education service
district;
  (d)   { - Subject to the provision of subsection (2) of this
section, when an incumbent - }  { +  Subject to subsection (3) of
this section, + } ceases to be a resident of the zone from which
nominated;
  (e)   { - When an incumbent - }  Ceases to discharge the duties
of office for two consecutive months unless prevented
 { - therefrom - }  { + from discharging the duties + } by
sickness or other unavoidable cause; or
  (f)   { - When an incumbent - }  Is recalled.
   { +  (2) The education service district board may not declare
the office of a director vacant if the director is a resident of
a school district that withdraws from the education service
district as provided by ORS 334.015 unless:
  (a) The director's term expires; or
  (b) The education service district board declares the office
vacant for a reason described in subsection (1) of this
section. + }
    { - (2) - }   { + (3) + } A director nominated from a zone
who changes permanent residence from one zone to another zone in
which another director resides shall continue to serve as
director until the next regular election when a successor shall
be elected to serve for the remainder of the unexpired term.
    { - (3) - }   { + (4) + } A director guilty of misfeasance or
malfeasance in office, by the appropriate proceeding, may be
removed from office by a court of competent jurisdiction.
    { - (4) - }   { + (5) + } Members may be recalled in the
manner provided in ORS 249.865 to 249.877. If the member was
elected by a zone, the recall petition shall be signed by
electors from that zone and electors from the zone are the only
electors eligible to vote in the recall election. If the member
was elected at large, the recall petition shall be signed by
electors from the district and electors from the district are
eligible to vote in the recall election.
  SECTION 2. ORS 339.010 is amended to read:
  339.010. Except as provided in ORS 339.030  { - , - }  { + :
  (1) + } All children between the ages of 7 and 18 years who
have not completed the 12th grade are required to attend
regularly a public full-time school   { - of the school district
in which the child resides - }  { +  during the entire school
term + }.
   { +  (2) All children five or six years of age who have been
enrolled in a public school are required to attend regularly the
public school while enrolled in the public school. + }
  SECTION 3. ORS 339.020 is amended to read:
  339.020. Except as provided in ORS 339.030  { - , - }  { + :
  (1) + } Every person having control of   { - any - }
 { + a + } child between the ages of 7 and 18 years who has not
completed the 12th grade is required to send   { - such - }
 { + the + } child to { + , + } and maintain   { - such - }
 { + the + } child in { + , + } regular attendance at a public
full-time school during the entire school term.
   { +  (2) If a person has control of a child five or six years
of age and has enrolled the child in a public school, the person
is required to send the child to, and maintain the child in,
regular attendance at the public school while the child is
enrolled in the public school. + }
  SECTION 4.  { + (1) The amendments to ORS 339.010 and 339.020
by sections 2 and 3 of this 2012 Act become operative on July 1,
2012.
  (2) The amendments to ORS 339.010 and 339.020 by sections 2 and
3 of this 2012 Act first apply to the 2012-2013 school year. + }
  SECTION 5. ORS 329.025 is amended to read:
  329.025. It is the intent of the Legislative Assembly to
maintain a system of public elementary and secondary schools that
allows students, parents, teachers, administrators, school
district boards and the State Board of Education to be
accountable for the development and improvement of the public
school system.  The public school system shall have the following
characteristics:
  (1) Provides equal and open access and educational
opportunities for all students in the state regardless of their
linguistic background, culture, race, gender, capability or
geographic location;
  (2) Assumes that all students can learn and establishes high,
specific skill and knowledge expectations and recognizes
individual differences at all instructional levels;
  (3) Provides each student an education experience that supports
academic growth beyond proficiency in established academic
content standards and encourages students to attain aspirational
goals that are individually challenging;
  (4) Provides special education, compensatory education,
linguistically and culturally appropriate education and other
specialized programs to all students who need those services;
  (5) Supports the physical and cognitive growth and development
of students;
  (6) Provides students with a solid foundation in the skills of
reading, writing, problem solving and communication;
  (7) Provides opportunities for students to learn, think,
reason, retrieve information, use technology and work effectively
alone and in groups;
  (8) Provides for rigorous academic content standards and
instruction in mathematics, science, English, history, geography,
economics, civics, physical education, health, the arts and
second languages;
   { +  (9) Provides increased learning time; + }
    { - (9) - }   { + (10) + } Provides students an educational
background to the end that they will function successfully in a
constitutional republic, a participatory democracy and a
multicultural nation and world;
    { - (10) - }   { + (11) + } Provides students with the
knowledge and skills that will provide the opportunities to
succeed in the world of work, as members of families and as
citizens;
    { - (11) - }   { + (12) + } Provides students with the
knowledge and skills that lead to an active, healthy lifestyle;
    { - (12) - }   { + (13) + } Provides students with the
knowledge and skills to take responsibility for their decisions
and choices;
    { - (13) - }   { + (14) + } Provides opportunities for
students to learn through a variety of teaching strategies;
    { - (14) - }   { + (15) + } Emphasizes involvement of parents
and the community in the total education of students;
    { - (15) - }   { + (16) + } Transports children safely to and
from school;
    { - (16) - }   { + (17) + } Ensures that the funds allocated
to schools reflect the uncontrollable differences in costs facing
each district;
    { - (17) - }   { + (18) + } Ensures that local schools have
adequate control of how funds are spent to best meet the needs of
students in their communities; and
    { - (18) - }   { + (19) + } Provides for a safe, educational
environment.
  SECTION 6. ORS 329.045 is amended to read:
  329.045. (1) { + (a) + } In order to achieve the goals
contained in ORS 329.025, the State Board of Education shall
regularly and periodically review and revise its Common
Curriculum Goals, performance indicators and diploma
requirements.
   { +  (b) + }   { - This includes - }   { + The review and
revision conducted under this section shall:
  (A) Include + } Essential Learning Skills and rigorous academic
content standards in mathematics, science, English, history,
geography, economics, civics, physical education, health, the
arts and second languages.   { - School districts and public
charter schools shall maintain control over course content,
format, materials and teaching methods. The regular review
shall - }
   { +  (B) + } Involve teachers and other educators, parents of
students and other citizens and shall provide ample opportunity
for public comment.
   { +  (C) Encourage increased learning time. As used in this
subparagraph, 'increased learning time' means a schedule that
encompasses a longer school day, week or year for the purpose of
increasing the total number of school hours available to provide:
  (i) Students with instruction in core academic subjects,
including mathematics, science, English, history, geography,
economics, civics, the arts and second languages;
  (ii) Students with instruction in subjects other than the
subjects identified in sub-subparagraph (i) of this subparagraph,
including health and physical education;
  (iii) Students with the opportunity to participate in
enrichment activities that contribute to a well-rounded
education, including learning opportunities that may be based on
service, experience or work and that may be provided through
partnerships with other organizations; and
  (iv) Teachers with the opportunity to collaborate, plan and
engage in professional development within and across grades and
subjects.
  (c) Nothing in this subsection prevents a school district or
public charter school from maintaining control over course
content, format, materials and teaching methods. + }
  (2) The State Board of Education shall continually review and
revise all adopted academic content standards necessary for
students to successfully transition to the next phase of their
education.
  (3) School districts and public charter schools shall offer
students instruction in mathematics, science, English, history,
geography, economics, civics, physical education, health, the
arts and second languages that meets the academic content
standards adopted by the State Board of Education and meets the
requirements adopted by the State Board of Education and the
board of the school district or public charter school.
  SECTION 7.  { + The amendments to ORS 329.025 and 329.045 by
sections 5 and 6 of this 2012 Act become operative on July 1,
2012. + }
  SECTION 8. ORS 338.005 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,   { - an institution of higher
education - }   { + 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 common school district or the union high
school district in which the public charter school is located
that has developed a written charter with an applicant to create
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 9. ORS 338.035 is amended to read:
  338.035. (1) A public charter school may be established:
  (a) As a new public school;
  (b) As a virtual public charter school;
  (c) From an existing public school or a portion of the school;
or
  (d) From an existing alternative education program, as defined
in ORS 336.615.
  (2)(a) Before a public charter school may operate as a public
charter school, it must:
  (A) Be approved by a sponsor;
  (B) Be established as a nonprofit organization under the laws
of Oregon; and
  (C) Have applied to qualify as an exempt organization under
section 501(c)(3) of the Internal Revenue Code.
  (b) Notwithstanding paragraph (a) of this subsection, the
requirements of paragraph (a)(B) and (C) of this subsection do
not apply to:
  (A) A school in a school district that is composed of only one
school; and
  (B) A school in a school district that is a remote and
necessary school district on the date the school first begins
operation as a public charter school.
   { +  (3) A member of the school district board of the school
district within which a public charter school is located may not
be a voting member of the governing body of the public charter
school, but may act in an advisory capacity on the governing body
of the public charter school. + }
    { - (3) - }   { + (4) + } An applicant seeking to establish a
public charter school shall submit a proposal pursuant to ORS
338.045 to the school district board of the school district
within which the public charter school will be located   { - at
least 120 days prior to the date upon which the public charter
school would begin operating. - }   { + by the date identified by
the school district board.  The school district board shall
identify a date that is at least 180 days prior to the date on
which the public charter school would begin operating and that
provides a reasonable period of time for the school district
board to complete the approval process and for the public charter
school to begin operating by the beginning of a school year. + }
 { - However, it is recommended that - } An applicant
 { + may + } consult with the school district board prior to
submitting a proposal { +  and the school district board may
require an applicant to submit a letter of intent within a
reasonable period of time prior to submitting a proposal + }.
    { - (4) - }   { + (5) + } An applicant seeking to establish a
public charter school shall provide to the State Board of
Education a copy of { + :
  (a) + } Any proposal submitted to a school district board under
ORS 338.045 { + ;
  (b) Any substantive changes to a proposal; and
  (c)  + }  { - and a copy of - }  Any subsequent approval by
 { - the school district board - }  { +  a sponsor + }.
    { - (5)(a) - }   { + (6)(a) + } One or more, but not all,
schools in a school district may become public charter schools.
  (b) Notwithstanding paragraph (a) of this subsection, a school
in a school district that is composed of only one school may
become a public charter school.
    { - (6)(a) - }   { + (7)(a) + } An entity described in ORS
338.005 (5) may not approve a public charter school proposal that
authorizes the conversion of any private school that is tuition
based to a public charter school.
  (b) Notwithstanding paragraph (a) of this subsection, an entity
described in ORS 338.005 (5) may authorize the conversion of an
existing alternative education program, as defined in ORS
336.615, to a public charter school.
    { - (7) - }   { + (8) + } An entity described in ORS 338.005
(5) may not approve a  { + proposal for a + } public charter
school   { - proposal - }  that is affiliated with a nonpublic
sectarian school or a religious institution.
  SECTION 10. 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.
  (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 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 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:
  (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  { - , - }  { + :
  (a) + } The school district board may require any additional
information the board considers relevant to the formation or
operation of a public charter school.
   { +  (b) Each member of a proposed public charter school
governing body must provide an acknowledgment of understanding
related to the standards of conduct and the liabilities of a
director of a nonprofit organization, as those standards and
liabilities are described in ORS chapter 65, if the public
charter school is required to comply with ORS 338.035 (2)(a)(B)
and (C). + }
  (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 11. Section 12, chapter 695, Oregon Laws 2011, as
amended by section 30, chapter 718, Oregon Laws 2011, is amended
to read:
   { +  Sec. 12. + } (1) The amendments to ORS 338.055 and
338.075 by section 10, chapter 695, Oregon Laws 2011, and section
29   { - of this 2011 Act - }  { + , chapter 718, Oregon Laws
2011, + } become operative on
  { - July 1, 2017 - }  { +  the effective date of this 2012
Act + }.
  (2) Nothing in the amendments to ORS   { - 338.055 and - }
338.075 by
  { - section 10, chapter 695, Oregon Laws 2011, and section 29
of this 2011 Act - }   { + section 14 of this 2012 Act + }
affects the ability of an institution of higher education to
continue to sponsor a public charter school if the institution of
higher education became the sponsor of the public charter school
prior to July 1, 2017.
  SECTION 12. ORS 338.055, as amended by section 10, chapter 695,
Oregon Laws 2011, is amended to read:
  338.055.  { + (1)(a) Upon receipt of a proposal submitted under
ORS 338.045, the school district board shall determine whether
the proposal is complete. A proposal is complete if the proposal
addresses, at least minimally, each element required by ORS
338.045 (2) and (3).
  (b) If a proposal is not complete, the school district board
shall notify the applicant within 30 days after receipt of the
proposal and shall identify the specific elements of the proposal
that are not complete. The school district board shall provide
the applicant with a reasonable opportunity to complete the
proposal.
  (c) The school district board may disapprove a proposal if the
applicant has received a reasonable opportunity to complete the
proposal and the applicant does not provide a complete proposal.
  (d) If the school district board disapproves a proposal as
provided by this subsection, the applicant may appeal the
decision to the State Board of Education. The State Board of
Education may review the proposal only for completeness and may
determine that the proposal is:
  (A) Not complete, and uphold the decision of the school
district board to disapprove the proposal because the proposal is
not complete; or
  (B) Complete, and remand the proposal to the school district
board for consideration. + }
    { - (1) - }   { + (2) + } Within 60 days   { - of - }
 { + after + } receipt of a proposal
  { - submitted under ORS 338.045 - }  { +  that is determined to
be complete as provided by subsection (1)(a) or (d) of this
section + }, the school district board shall hold a public
hearing on the provisions of the proposal.
    { - (2) - }   { + (3) + } 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) - }   { + (2) + } 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 - }   { + adequacy of the information
provided as required by + } ORS 338.045 { +  (2) and (3) + };
  (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.
    { - (3) - }   { + (4) + } 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) - }   { + (2) + } of this
section.
    { - (4) - }   { + (5)(a) + } Written notice of the school
district board's action shall be sent to the applicant. If the
proposal is not approved  { - , - }  { + :
  (A) + } The reasons for the   { - denial - }
 { + disapproval + } 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, - }  { + ; and
  (B) + } 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. - }
   { +  (b) Within 30 days after receiving a proposal that is
resubmitted as provided by paragraph (a)(B) of this subsection,
the school district board shall approve or disapprove the
proposal. + }
    { - (5) - }   { + (6)(a) + } Individual elements in a public
charter school proposal may be changed   { - through the proposal
and chartering process. - }  { +  by a school district board and
an applicant by mutual agreement:
  (A) Prior to the approval of a proposal; or
  (B) After a proposal has been approved but before a charter has
been executed.
  (b) If the school district board and the applicant are not able
to agree on a change during the proposal or chartering process,
the school district board or the applicant may request mediation
by the State Board of Education.
  (c) If the school district board and applicant are unable to
reach an agreement following mediation as described in paragraph
(b) of this subsection, the change that was the subject of
mediation may not be included in the proposal or charter and:
  (A) The school district board and applicant may decide to
execute a charter for the public charter school without the
change;
  (B) The applicant may withdraw the proposal or decline to
execute a charter; or
  (C) The school district board may disapprove the proposal or
decline to execute a charter. + }
    { - (6) - }   { + (7) + }   { - A proposal to convert - }
 { + Before + } an existing public school  { + is converted + }
to a public charter school { + , the proposal for the
conversion + } must be approved by the school district board of
the public school.
    { - (7) - }   { + (8) + }   { - Entities described in ORS
338.005 (5) - }   { + Neither a school district board nor the
State Board of Education + } may   { - not - } charge any fee to
applicants for the proposal process.
    { - (8) - }   { + (9) + } Upon request by a school
district { +  board + }, the State Board of Education may grant
an extension of any timeline required by this section if the
 { + school + } district  { + board + } has good cause for
requesting the extension.
  SECTION 13. ORS 338.075, as amended by section 29, chapter 718,
Oregon Laws 2011, is amended to read:
  338.075. (1) If a school district board   { - does not
approve - }  { + disapproves + } a proposal to   { - start - }
 { + establish + } a public charter school pursuant to ORS
338.055 { +  (4), (5) or (6) + }, the applicant may { + :
  (a) + } Request that the State Board of Education review the
decision of the school district board { + ; or
  (b) Submit a proposal to an institution of higher
education + }.
    { - (2) Upon receipt of a request for review, the State Board
of Education: - }
    { - (a) Shall attempt to mediate a resolution between the
applicant and the school district board. - }
    { - (b) May recommend to the applicant and school district
board revisions to the proposal. - }
    { - (c) If the school district board does not accept the
revisions to the proposal and the applicant agrees to the
sponsorship, may become the sponsor of the public charter
school. - }
    { - (3) Upon receipt of a request for review, in addition to
actions described in subsection (2) of this section and at any
time during the review process, the State Board of Education may
reject a proposal to start a public charter school if the school
fails to meet the requirements of this chapter. - }
   { +  (2)(a) If the applicant requests the State Board of
Education to review the decision as provided by subsection (1) of
this section, the State Board of Education may review the
decision only to determine whether:
  (A) The school district board used the process required by ORS
338.055 in disapproving the proposal;
  (B) The proposal meets the criteria described in ORS 338.055
(3); and
  (C) The reasons stated by the school district board for the
disapproval are valid.
  (b) Following a review described in paragraph (a) of this
subsection, the State Board of Education may:
  (A) Uphold the decision of the school district board to
disapprove the proposal;
  (B) Remand the proposal to the school district board for
reconsideration if the school district board and the applicant
agree to the remand; or
  (C) Consider becoming the sponsor of the public charter school
if the applicant agrees to the sponsorship. + }
    { - (4) - }   { + (3) + } An applicant may seek judicial
review   { - of an order of the State Board of Education - }
pursuant to ORS 183.484 { +  of an order issued by the State
Board of Education under subsection (2) of this section + }. If
the court finds that the decision of the State Board of Education
is not supported by substantial evidence in the record, the court
shall enter a judgment directing the State Board of Education to
sponsor the public charter school.
   { +  (4)(a) An applicant seeking sponsorship by an institution
of higher education may submit to the institution of higher
education a proposal that was submitted to a school district
board under ORS 338.045 (1) or 338.055 (1), (5) or (6) or a
proposal that is modified to take into consideration the
characteristics of the institution of higher education evaluating
the proposal under this subsection.
  (b) Upon receipt of a proposal, an institution of higher
education may:
  (A) Disapprove the proposal based on the determination by the
institution of higher education that the proposal does not align
with the institution's mission.
  (B) Evaluate the proposal using the criteria described in ORS
338.055 (3)(b) to (h) and may approve the proposal only if the
institution of higher education is permitted to become a sponsor
as provided by paragraphs (e) and (f) of this subsection.
  (c)(A) The following decisions by an institution of higher
education are final and not subject to appeal:
  (i) Whether to evaluate a proposal for a public charter school;
and
  (ii) Whether to approve or disapprove a proposal for a public
charter school.
  (B) The process by which an institution of higher education
makes a decision described in subparagraph (A) of this paragraph
is not subject to appeal.
  (d) Within 60 days after receiving a proposal, the institution
of higher education must approve the proposal or, if disapproving
the proposal, state in writing the reasons for disapproving the
proposal. + }
    { - (5)(a) - }   { + (e) + } An institution of higher
education may sponsor a public charter school only if  { - : - }
    { - (A) - }  the main campus of the institution of higher
education is located within 25 miles of the proposed public
charter school, based on the nearest traveled road  { - ; and - }
 { + . + }
    { - (B) The institution of higher education first became a
sponsor of the public charter school prior to July 1, 2017. - }
    { - (b) - }   { + (f) + } An institution of higher education
may sponsor only one public charter school in this state,
regardless of the number of campuses or locations of the
institution of higher education.
    { - (c) - }   { + (g) + } If a public charter school has a
sponsor that is an institution of higher education and the public
charter school enters into a contract with a third-party entity
to provide educational services for the public charter school:
  (A) A member of the governing body of the public charter school
or the governing body of the sponsor may not be an employee of
the third-party entity, be a member of the governing board of the
third-party entity or be any other representative of the
third-party entity;
  (B) An employee or a member of the governing board of the
third-party entity may not attend an executive session of the
sponsor;
  (C) An employee of the public charter school may not promote
the sale or benefits of private supplemental services or classes
offered by the third-party entity; and
  (D) The educational services provided by the third-party entity
must comply with state standards and requirements, and any
provision of the contract with the third-party entity that does
not allow for the provision of educational services that comply
with state standards and requirements is void.
   { +  (5) Neither the State Board of Education nor an
institution of higher education may charge any fee to applicants
for the proposal process. + }
  SECTION 14. ORS 338.075, as amended by section 29, chapter 718,
Oregon Laws 2011, and section 13 of this 2012 Act, is amended to
read:
  338.075. (1) If a school district board disapproves a proposal
to establish a public charter school pursuant to ORS 338.055 (4),
(5) or (6), the applicant may  { - : - }
    { - (a) - }  request that the State Board of Education review
the decision of the school district board   { - ; or - }
 { + . + }
    { - (b) Submit a proposal to an institution of higher
education. - }
  (2)(a) If the applicant requests the State Board of Education
to review the decision as provided by subsection (1) of this
section, the State Board of Education may review the decision
only to determine whether:
  (A) The school district board used the process required by ORS
338.055 in disapproving the proposal;
  (B) The proposal meets the criteria described in ORS 338.055
(3); and
  (C) The reasons stated by the school district board for the
disapproval are valid.
  (b) Following a review described in paragraph (a) of this
subsection, the State Board of Education may:

  (A) Uphold the decision of the school district board to
disapprove the proposal;
  (B) Remand the proposal to the school district board for
reconsideration if the school district board and the applicant
agree to the remand; or
  (C) Consider becoming the sponsor of the public charter school
if the applicant agrees to the sponsorship.
  (3) An applicant may seek judicial review pursuant to ORS
183.484 of an order issued by the State Board of Education under
subsection (2) of this section. If the court finds that the
decision of the State Board of Education is not supported by
substantial evidence in the record, the court shall enter a
judgment directing the State Board of Education to sponsor the
public charter school.
    { - (4)(a) An applicant seeking sponsorship by an institution
of higher education may submit to the institution of higher
education a proposal that was submitted to a school district
board under ORS 338.045 (1) or 338.055 (1), (5) or (6) or a
proposal that is modified to take into consideration the
characteristics of the institution of higher education evaluating
the proposal under this subsection. - }
    { - (b) Upon receipt of a proposal, an institution of higher
education may: - }
    { - (A) Disapprove the proposal based on the determination by
the institution of higher education that the proposal does not
align with the institution's mission. - }
    { - (B) Evaluate the proposal using the criteria described in
ORS 338.055 (3)(b) to (h) and may approve the proposal only if
the institution of higher education is permitted to become a
sponsor as provided by paragraphs (e) and (f) of this
subsection. - }
    { - (c)(A) The following decisions by an institution of
higher education are final and not subject to appeal: - }
    { - (i) Whether to evaluate a proposal for a public charter
school; and - }
    { - (ii) Whether to approve or disapprove a proposal for a
public charter school. - }
    { - (B) The process by which an institution of higher
education makes a decision described in subparagraph (A) of this
paragraph is not subject to appeal. - }
    { - (d) Within 60 days after receiving a proposal, the
institution of higher education must approve the proposal or, if
disapproving the proposal, state in writing the reasons for
disapproving the proposal. - }
    { - (e) An institution of higher education may sponsor a
public charter school only if the main campus of the institution
of higher education is located within 25 miles of the proposed
public charter school, based on the nearest traveled road. - }
    { - (f) An institution of higher education may sponsor only
one public charter school in this state, regardless of the number
of campuses or locations of the institution of higher
education. - }
    { - (g) If a public charter school has a sponsor that is an
institution of higher education and the public charter school
enters into a contract with a third-party entity to provide
educational services for the public charter school: - }
    { - (A) A member of the governing body of the public charter
school or the governing body of the sponsor may not be an
employee of the third-party entity, be a member of the governing
board of the third-party entity or be any other representative of
the third-party entity; - }
    { - (B) An employee or a member of the governing board of the
third-party entity may not attend an executive session of the
sponsor; - }

    { - (C) An employee of the public charter school may not
promote the sale or benefits of private supplemental services or
classes offered by the third-party entity; and - }
    { - (D) The educational services provided by the third-party
entity must comply with state standards and requirements, and any
provision of the contract with the third-party entity that does
not allow for the provision of educational services that comply
with state standards and requirements is void. - }
   { +  (4) If an institution of higher education became the
sponsor of a public charter school prior to July 1, 2017, the
institution of higher education:
  (a) May not relocate the main campus of the institution of
higher education or the public charter school so that they are
located more than 25 miles apart, based on the nearest traveled
road; and
  (b) May not sponsor more than one public charter school in this
state, regardless of the number of campuses or locations of the
institution of higher education.
  (5) If an institution of higher education is the sponsor of a
public charter school and the public charter school enters into a
contract with a third-party entity to provide educational
services for the public charter school:
  (a) A member of the governing body of the public charter school
or the governing body of the institution of higher education may
not be an employee of the third-party entity, be a member of the
governing board of the third-party entity or be any other
representative of the third-party entity;
  (b) An employee or a member of the governing board of the
third-party entity may not attend an executive session of the
institution of higher education;
  (c) An employee of the public charter school may not promote
the sale or benefits of private supplemental services or classes
offered by the third-party entity; and
  (d) The educational services provided by the third-party entity
must comply with state standards and requirements, and any
provision of the contract with the third-party entity that does
not allow for the provision of educational services that comply
with state standards and requirements is void. + }
    { - (5) - }   { + (6) + }   { - Neither - }  The State Board
of Education   { - nor an institution of higher education - }
may  { + not + } charge any fee to applicants for the proposal
process.
  SECTION 15.  { + (1) The amendments to ORS 338.035, 338.045,
338.055 and 338.075 and section 12, chapter 695, Oregon Laws
2011, by sections 9 to 13 of this 2012 Act become operative on
January 1, 2013.
  (2) The amendments to ORS 338.075 by section 14 of this 2012
Act become operative on July 1, 2017.
  (3) The amendments to ORS 338.035, 338.045, 338.055 and 338.075
by sections 9, 10, 12 and 13 of this 2012 Act first apply to
proposals received on or after January 1, 2013. + }
  SECTION 16. ORS 338.065 is amended to read:
  338.065. (1)(a) Upon approval of a proposal by a school
district board under ORS 338.055, the school district board shall
  { - become - }   { + be + } the sponsor of the public charter
school.
  (b) Pursuant to ORS 338.075 (2) or   { - (4) - }  { +  (3) + },
the State Board of Education   { - shall become - }   { + may
be + } the sponsor of the public charter school.
  (c)   { - Pursuant - }  { +  Subject + } to ORS 338.075
 { - (5) - }  { +  (4) + },   { - the - }  { +  an + }
institution of higher education   { - shall become - }   { + may
be + } the sponsor of the public charter school.
  (2) The sponsor and the applicant shall   { - develop - }
 { + execute + } a written charter that contains the provisions
of the proposal that have been duly approved by the sponsor and
 { + the + } public charter school governing body. The sponsor
and the applicant may agree to change elements of the proposal
prior to incorporating them into the charter   { - or exclude
elements of the proposal from the charter - } . { +  If the
sponsor is a school district board, the sponsor or applicant may
request mediation as provided by ORS 338.055 (6). + } The
charter, when duly executed by the sponsor and the public charter
school governing body, shall act as the legal authorization for
the establishment of the public charter school.  The charter
shall be legally binding on both the sponsor and the public
charter school governing body.
  (3) The sponsor and the public charter school governing body
may amend a charter by joint agreement.
  (4)(a) The initial charter shall be in effect for a period of
not more than five years and shall be renewed upon the
authorization of the sponsor using the process established under
this section.
  (b) The first renewal of a charter shall be for the same time
period as the initial charter.
  (c) Subsequent renewals of a charter shall be for a minimum of
five years but may not exceed 10 years.
  (5)(a) The renewal of a charter shall use the process required
by this section.
  (b) The public charter school governing body shall submit a
written renewal request to the sponsor for consideration at least
180 days prior to the expiration of the charter.
  (c) Within 45 days after receiving a written renewal request
from a public charter school governing body, the sponsor shall
hold a public hearing regarding the request for renewal.
    { - (d) Within 10 days after the public hearing, the sponsor
shall notify the public charter school governing body of the
sponsor's intent about the renewal of the charter. - }
    { - (e) - }   { + (d) + } Within   { - 20 - }   { + 30 + }
days after the public hearing, the sponsor shall approve the
renewal of the charter or state in writing the reasons for
denying the renewal of the charter.
    { - (f) - }   { + (e) + } If the sponsor approves the renewal
of the charter, the sponsor and the public charter school
governing body shall negotiate a new charter within 90 days after
the date on which the sponsor approved the renewal of the charter
unless the sponsor and the public charter school governing body
agree to an extension of the time period.
    { - (g) - }   { + (f) + } If the sponsor does not renew the
charter, the public charter school governing body may address the
reasons stated under paragraph   { - (e) - }   { + (d) + } of
this subsection and any remedial measures suggested by the
sponsor and submit a revised request for renewal to the sponsor.
    { - (h) - }   { + (g) + } Notwithstanding paragraphs (b) to
 { - (g) - }   { + (f) + } of this subsection, a sponsor and a
public charter school governing body may agree in the charter of
the school to a timeline for renewing the charter that is
different from the timeline required by paragraphs (b) to
 { - (g) - }   { + (f) + } of this subsection.
  (6)(a) If the sponsor does not renew the charter based on the
revised request for renewal submitted under subsection
 { - (5)(g) - }  { +  (5)(f) + } of this section, the public
charter school governing body may appeal the decision of the
sponsor to the State Board of Education for a review of whether
the sponsor used the process required by this section in denying
the renewal of the charter.
  (b) If the state board finds that the sponsor used the process
required by this section in denying the request for renewal, the
state board shall affirm the decision of the sponsor.  A public
charter school governing body may seek judicial review of an
order of the state board pursuant to ORS 183.484.

  (c) If the state board finds that the sponsor did not use the
process required by this section in denying the request for
renewal, the state board shall order the sponsor to reconsider
the request for renewal.
  (d) If after reconsideration pursuant to paragraph (c) of this
subsection the sponsor does not renew the charter, the public
charter school governing body may seek judicial review of an
order of the sponsor pursuant to ORS 183.484.
  (7) If the State Board of Education is the sponsor of a public
charter school and the state board does not renew the charter
based on the revised request for renewal submitted under
subsection   { - (5)(g) - }   { + (5)(f) + } of this section, the
public charter school governing body may seek judicial review of
an order of the state board pursuant to ORS 183.484 for a review
of whether the state board used the process required by this
section in denying the request for renewal.
  (8)(a) The sponsor shall base the charter renewal decision on a
good faith evaluation of whether the public charter school:
  (A) Is in compliance with this chapter and all other applicable
state and federal laws;
  (B) Is in compliance with the charter of the public charter
school;
  (C) Is meeting or working toward meeting the student
performance goals and agreements specified in the charter or any
other written agreements between the sponsor and the public
charter school governing body;
  (D) Is fiscally stable and has used the sound financial
management system described in the proposal   { - submitted - }
 { + as required + } under ORS 338.045 and incorporated into the
written charter under this section; and
  (E) Is in compliance with any renewal criteria specified in the
charter of the public charter school.
  (b) The sponsor shall base the renewal evaluation described in
paragraph (a) of this subsection primarily on a review of the
public charter school's annual performance reports, annual audit
of accounts and annual site visit and review as required by ORS
338.095 and any other information mutually agreed upon by the
public charter school governing body and the sponsor.
  SECTION 17.  { + (1) The amendments to ORS 338.065 by section
16 of this 2012 Act become operative on January 1, 2013.
  (2) The amendments to ORS 338.065 by section 16 of this 2012
Act first apply to renewal requests submitted on or after January
1, 2013. + }
  SECTION 18. 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 - }   { + as required + } 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) A public charter school governing body may appeal a
decision of a sponsor  { + under subsection (1) of this
section + } to:
  (a) The State Board  { + of Education + } if the sponsor is an
entity described in ORS 338.005 (5)(a) or (c). The  { + State + }
Board  { + of Education + } shall { + :
  (A) + } Adopt by rule procedures to ensure a timely appeals
process to prevent disruption of students' education  { - . - }
 { + ; and
  (B) Review only the grounds for termination under subsection
(1) of this section as stated by the school district board or the
institution of higher 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) Termination of a charter shall not abridge the public
charter school's legal authority to operate as a private or
nonchartered public school.
  (6) If a charter is terminated or a public charter school is
dissolved:
  (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) 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.
  (7) A public charter school governing body may only terminate a
charter  { - , - }   { + or + } 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 19.  { + (1) The amendments to ORS 338.105 by section
18 of this 2012 Act become operative on January 1, 2013.
  (2) The amendments to ORS 338.105 by section 18 of this 2012
Act first apply to termination decisions that are made on or
after January 1, 2013. + }
  SECTION 20. 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.

  (2) A public charter school shall report to the sponsor and the
Department 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.
  (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.  The
school shall forward a copy of the annual audit to the Department
of Education.
  (4) After an audit, the following shall be forwarded to the
sponsor:
  (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.
   { +  (5) The sponsor of a public charter school that is
required to comply with ORS 338.035 (2)(a)(B) and (C) may request
at any time an acknowledgment from each member of the public
charter school governing body that the member understands the
standards of conduct and liabilities of a director of a nonprofit
organization, as those standards and liabilities are described in
ORS chapter 65. + }
    { - (5) - }   { + (6) + } 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.
  SECTION 21. ORS 338.115 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 339.119 (consideration for educational
services); + }
    { - (L) - }   { + (m) + } ORS 339.141, 339.147 and 339.155
(tuition and fees);
    { - (m) - }   { + (n) + } ORS 339.250 (12) (prohibition on
infliction of corporal punishment);
    { - (n) - }   { + (o) + } ORS 339.326 (notice concerning
students subject to juvenile court petitions);

    { - (o) - }   { + (p) + } ORS 339.370, 339.372, 339.388 and
339.400 (reporting of child abuse and training on prevention and
identification of child abuse);
    { - (p) - }   { + (q) + } ORS chapter 657 (Employment
Department Law);
    { - (q) - }   { + (r) + } ORS 659.850, 659.855 and 659.860
(discrimination);
    { - (r) - }   { + (s) + } Any statute or rule that
establishes requirements for instructional time provided by a
school during each day or during a year;
    { - (s) - }   { + (t) + } Health and safety statutes and
rules;
   { +  (u) Statutes and rules that apply to a special government
body, as defined in ORS 174.117, or a public body, as defined in
ORS 174.109;
  (v) Statutes and rules that expressly apply to public charter
schools; + }
    { - (t) - }   { + (w) + } Any statute or rule that is listed
in the charter;  { +  and + }
    { - (u) ORS 339.119 (consideration for educational services);
and - }
    { - (v) - }   { + (x) + } 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) 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.

  (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 22. 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, and section 5,
chapter 682, Oregon Laws 2011, 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 339.119 (consideration for educational
services); + }
    { - (m) - }   { + (n) + } ORS 339.141, 339.147 and 339.155
(tuition and fees);
    { - (n) - }   { + (o) + } ORS 339.250 (12) (prohibition on
infliction of corporal punishment);
    { - (o) - }   { + (p) + } ORS 339.326 (notice concerning
students subject to juvenile court petitions);
    { - (p) - }   { + (q) + } ORS 339.370, 339.372, 339.388 and
339.400 (reporting of child abuse and training on prevention and
identification of child abuse);
    { - (q) - }   { + (r) + } ORS chapter 657 (Employment
Department Law);
    { - (r) - }   { + (s) + } ORS 659.850, 659.855 and 659.860
(discrimination);
    { - (s) - }   { + (t) + } Any statute or rule that
establishes requirements for instructional time provided by a
school during each day or during a year;
    { - (t) - }   { + (u) + } Health and safety statutes and
rules;
   { +  (v) Statutes and rules that apply to a special government
body, as defined in ORS 174.117, or a public body, as defined in
ORS 174.109;
  (w) Statutes and rules that expressly apply to public charter
schools; + }
    { - (u) - }   { + (x) + } Any statute or rule that is listed
in the charter;  { +  and + }
    { - (v) ORS 339.119 (consideration for educational services);
and - }
    { - (w) - }   { + (y) + } 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) 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.
  (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 23. ORS 338.025 is amended to read:
  338.025. (1) The State Board of Education may adopt any rules
necessary for the implementation of this chapter. The rules shall
follow the intent of this chapter.
  (2) Upon application by a public charter school, the State
Board of Education may grant a waiver of any provision of this
chapter if the waiver promotes the development of programs by
providers, enhances the equitable access by underserved families
to the public education of their choice, extends the equitable
access to public support by all students or permits high quality
programs of unusual cost. The State Board of Education may not
waive any appeal provision in this chapter or any provision under
ORS 338.115 (1)(a) to   { - (u) - }  { +  (w) + }, 338.120,
338.125 (4), 338.135 (2)(b) or 339.122.
  SECTION 24. ORS 338.025, as amended by section 8, chapter 839,
Oregon Laws 2007, section 14, chapter 50, Oregon Laws 2008,
section 5, chapter 53, Oregon Laws 2010, section 4, chapter 72,
Oregon Laws 2010, section 5, chapter 94, Oregon Laws 2011,
section 4, chapter 649, Oregon Laws 2011, and section 27, chapter
718, Oregon Laws 2011, is amended to read:
  338.025. (1) The State Board of Education may adopt any rules
necessary for the implementation of this chapter. The rules shall
follow the intent of this chapter.
  (2) Upon application by a public charter school, the State
Board of Education may grant a waiver of any provision of this
chapter if the waiver promotes the development of programs by
providers, enhances the equitable access by underserved families
to the public education of their choice, extends the equitable
access to public support by all students or permits high quality
programs of unusual cost. The State Board of Education may not
waive any appeal provision in this chapter or any provision under
ORS 338.115 (1)(a) to   { - (v) - }  { +  (x) + }, 338.120,
338.125 (4), 338.135 (2)(b) or 339.122.
  SECTION 25.  { + The amendments to ORS 338.025, 338.095 and
338.115 by sections 20, 21 and 23 of this 2012 Act become
operative on January 1, 2013. + }
  SECTION 26. Section 9, chapter 609, Oregon Laws 2011, is
amended to read:
   { +  Sec. 9. + } (1) As used in this section, 'Oregon
Coalition for Quality Teaching and Learning' means the
collaborative group of state, school district, educator,
administrator, community and higher education representatives
operating as a unit organized under the National Commission on
Teaching and America's Future.
  (2) The Teacher Standards and Practices Commission and the
Department of Education, working with the Oregon Coalition for
Quality Teaching and Learning, shall propose guidelines to adopt
a uniform set of model core teaching standards for teaching
preparation, new teachers and experienced teachers that align
with updated national teaching standards. The guidelines must
allow the standards to be customized based on the collaborative
efforts of the teachers and administrators of the school district
and the exclusive bargaining representative of the employees of
the school district.
  (3) The guidelines must propose model core teaching standards
that:
  (a) Are research-based;
  (b) Distinguish different levels of proficiency; and
  (c) Include multiple measures of student growth and achievement
using student, school and school district data.
  (4) The commission and the department shall report to the
Legislative Assembly prior to January 1, 2012, on the proposed
guidelines for model core teaching standards.
  (5) The commission shall adopt and distribute the model core
teaching standards to school districts on or before March 1,
2012.
  (6) All school districts shall begin using the model core
teaching standards in annual evaluations of teachers
 { - beginning in the 2012-2013 school year - }  { +  occurring
on or after July 1, 2013 + }.
  SECTION 27. Section 11, chapter 609, Oregon Laws 2011, is
amended to read:

   { +  Sec. 11. + } Sections 8, 9 and 10   { - of this 2011
Act - }  { + , chapter 609, Oregon Laws 2011, + } are repealed on
 { - March 2, 2013 - }   { + July 2, 2013 + }.
  SECTION 28. ORS 329.235 is amended to read:
  329.235. Subject to the approval of the Superintendent of
Public Instruction:
  (1) The district school board of any school district in which
there are resident children who are three years of age or older
but who have not attained compulsory attendance age and who are
not enrolled in a kindergarten of the district may:
  (a) Provide early childhood education for such children as part
of the district's educational program; or
  (b) When the board considers a contract to be economically
feasible and in the interests of the learning opportunities of
eligible children, contract for instruction of such children in a
school district operating an approved early childhood education
program, subject to such reimbursement as the districts may
agree.
  (2) An education service district may operate an approved early
childhood education program in the same manner as programs are
provided under ORS 334.175   { - or 334.185 - } .
  SECTION 29. ORS 343.221 is amended to read:
  343.221. In order to provide special education for children
with disabilities, the district school board of any school
district in which there are school-age children who require
special education:
  (1) Shall submit an annual projected activities and cost
statement to the Superintendent of Public Instruction for a
program of special education for the district's children with
disabilities. The proposed district program shall include
provisions for providing special education and related services
and be designed to meet the unique needs of all resident children
with disabilities.
  (2) Shall provide special education for such children
consistent with the projected activities and cost statement.
  (3) May, when the board considers a contract to be economically
feasible and in the interests of the learning opportunities of
eligible children, contract for special education for such
children with another school district if the district school
boards jointly agree to provide special education.
  (4) May, when the board considers a contract to be economically
feasible and in the interests of the learning opportunities of
eligible children, contract for special education for such
children with an education service district if  { - : - }
    { - (a) - }  the contract is consistent with the local
service plan of the education service district developed pursuant
to ORS 334.175 and the school districts within the education
service district approve the contract by a resolution adopted in
the manner provided in ORS 334.175.
    { - (b) The school district contracts with an education
service district pursuant to ORS 334.185. - }
  (5) May contract with private agencies or organizations
approved by the State Board of Education for special education.
  (6) May use the services of public agencies, including
community mental health programs and community developmental
disabilities programs, which provide diagnostic, evaluation and
other related services for children.
  (7) May contract for the provision of related services by a
person in private practice if that person is registered,
certified or licensed by the State of Oregon as qualified to
provide a particular related service that requires registration,
certification or licensing by the state.
  SECTION 30.  { + ORS 334.185 is repealed. + }
  SECTION 31.  { + This 2012 Act being necessary for the
immediate preservation of the public peace, health and safety, an

emergency is declared to exist, and this 2012 Act takes effect on
its passage. + }
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