Bill Text: OR SB250 | 2011 | Regular Session | Enrolled
Bill Title: Relating to education service districts; appropriating money; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2011-08-03 - Effective date, August 2, 2011. [SB250 Detail]
Download: Oregon-2011-SB250-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
Senate Bill 250
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 General Government)
CHAPTER ................
AN ACT
Relating to education service districts; creating new provisions;
amending ORS 184.483, 294.447, 327.008, 327.019, 327.297,
334.003, 334.095, 334.125, 334.127, 334.175, 334.177, 334.217,
334.225, 334.240, 342.121 and 757.612; appropriating money; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 3 of this 2011 Act are added to
and made a part of ORS chapter 334. + }
SECTION 2. { + (1) Notwithstanding ORS 334.010 and 334.020,
one or more component school districts of an education service
district may withdraw from the education service district if the
component school district is located in:
(a) A region described in ORS 334.020 (1)(a), (b), (c) or (p);
or
(b) Baker County.
(2) A school district board may choose to withdraw a school
district from an education service district as provided in
subsection (1) of this section by an affirmative vote of
two-thirds of the members of the school district board.
(3)(a) A school district board that chooses to withdraw a
school district from the education service district must submit a
notice of intent to withdraw to the board of directors of the
education service district no later than November 1 of the year
prior to the year in which the school district plans to withdraw
from the education service district.
(b) A school district board that submitted a notice of intent
to withdraw as provided by paragraph (a) of this subsection must
submit a notice of withdrawal to the board of directors of the
education service district no later than March 1 of the year in
which the school district plans to withdraw from the education
service district.
(c) Within 60 days of receiving the notice of withdrawal under
paragraph (b) of this subsection, the board of directors of the
education service district shall issue an order that recognizes
the withdrawal of the school district from the education service
district.
(4) The withdrawal of a school district from an education
service district becomes effective on July 1 after the board of
Enrolled Senate Bill 250 (SB 250-C) Page 1
directors of the education service district issues the order
described in subsection (3) of this section. + }
SECTION 3. { + (1) A school district board that withdrew a
school district from an education service district as provided in
section 2 of this 2011 Act may choose to rejoin the school
district to the education service district.
(2) A school district board that chooses to rejoin a school
district to an education service district as provided in
subsection (1) of this section may rejoin by an affirmative vote
of a two-thirds of the members of the board. A vote described in
this subsection must occur no later than November 1 of the year
prior to the year in which the school district board plans to
rejoin the school district to the education service district.
(3) The school district board shall notify the board of
directors of the education service district no later than
November 1 of the year prior to the year in which the school
district board plans to rejoin the school district to the
education service district. Within 60 days of receiving the
notice, the board of directors of the education service district
shall issue an order that recognizes the rejoining of a school
district to the education service district.
(4) The rejoining of a school district to an education service
district becomes effective on July 1 after the board of directors
of the education service district issues the order described in
subsection (3) of this section. + }
SECTION 4. ORS 334.003 is amended to read:
334.003. For purposes of this chapter:
(1) 'Component school district' means a common school district
or a union high school district { + that:
(a) Is + } located within the territory of an education service
district { - . - } { + ; and
(b) Is not withdrawn from the education service district as
provided in section 2 of this 2011 Act. + }
(2) 'Education service district' means a district created under
ORS 334.010 that provides regional educational services to
component school districts.
(3) 'Joint school district' means a common school district or a
union high school district located within the territory of more
than one education service district.
SECTION 5. ORS 334.095 is amended to read:
334.095. (1) The education service district board shall declare
the office of director vacant upon the happening of any of the
following:
(a) When an incumbent dies or resigns;
(b) When an incumbent is removed from office or the election
thereto has been declared void by the judgment of any court;
(c) When an incumbent ceases to be a resident of { + a school
district that is a component school district of + } the education
service district;
(d) Subject to the provision of subsection (2) of this section,
when an incumbent 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 by sickness
or other unavoidable cause; or
(f) When an incumbent is recalled.
(2) 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
Enrolled Senate Bill 250 (SB 250-C) Page 2
regular election when a successor shall be elected to serve for
the remainder of the unexpired term.
(3) 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) 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 6. ORS 334.125 is amended to read:
334.125. (1) The education service district is a body
corporate.
(2) The education service district board is authorized to
transact all business coming within the jurisdiction of the
education service district and may sue and be sued.
(3) The education service district board shall perform all
duties required by law, including but not limited to:
(a) Distribution of such school funds as it is empowered to
apportion;
(b) Conduct of audits;
(c) Duties as district boundary board;
(d) Budget and tax levying duties, including the levying of
taxes under ORS 280.060;
(e) Contracting a bonded indebtedness and levying direct ad
valorem taxes on all taxable property within the education
service district in the manner that component school districts
are authorized to issue bonds and levy taxes under ORS 328.205 to
328.304 and other laws applicable to the issuance of bonds and
levying of taxes by school districts; and
(f) Creating a county education bond district under ORS 328.304
from a county within the district.
(4) { + (a) + } In addition to its duties under subsection (3)
of this section, an education service district board { + :
(A) + } May provide services required by the local service plan
developed pursuant to ORS 334.175 { - and - } { + ;
(B) Except as provided by subparagraph (C) of this
paragraph, + } may provide funds to { + a + } component school
{ - districts - } { + district + } to provide services
required by the local { + service + } plan in lieu of
{ - those school districts - } { + the component school
district + } receiving services from the education service
district { - . - } { + ;
(C) Shall provide funds in the manner described in paragraph
(b) of this subsection to a component school district to provide
services required by the local service plan in lieu of the
component school district receiving services from the education
service district if:
(i) The school district received funds under subparagraph (B)
of this paragraph for the 2010-2011 fiscal year; and
(ii) The school district requests that the funds be provided as
required by this subparagraph;
(D) Shall provide funds as specified in ORS 327.019 (9) to a
school district located within the territory of the education
service district that has withdrawn from the education service
district as provided in section 2 of this 2011 Act; and
Enrolled Senate Bill 250 (SB 250-C) Page 3
(E) For the purpose of providing services consistent with the
local service plan, may enter into contracts with school
districts that have withdrawn from the education service district
as provided in section 2 of this 2011 Act or that are located
outside the territory of the education service district.
(b) If an education service district board is required to
provide funds to a school district under paragraph (a)(C) of this
subsection, the education service district board shall provide
the funds as a percentage of the funds available to the education
service district under ORS 334.177 that is at least equal to the
lesser of:
(A) The percentage that the education service district board
provided to the school district in the 2010-2011 fiscal year; or
(B) The percentage requested by the school district, as
provided by paragraph (a)(C) of this subsection. + }
(5) The education service district board may employ and fix the
compensation of such personnel as it considers necessary for
carrying out duties of the board.
(6) In carrying out its duties, the education service district
board:
(a) May locate, buy, accept by gift or lease such land,
buildings and facilities as may be required for district
purposes. Leases authorized by this section may be for a term of
up to 30 years and include lease-purchase agreements whereunder
the district may acquire ownership of the leased property.
(b) May acquire personal property by a lease-purchase agreement
or contract of purchase for a term exceeding one year. A
lease-purchase agreement is one in which the rent payable by the
district is expressly agreed to have been established to reflect
the savings resulting from the exemption from taxation, and the
district is entitled to ownership of the property at a nominal or
other price which is stated or determinable by the terms of the
agreement and was not intended to reflect the true value of the
property.
(c) May lease property or sell and convey property of the
district as the board considers unnecessary to its purposes.
(d) May purchase relocatable structures in installment
transactions in which deferred installments of the purchase price
are payable over not more than 10 years from the date of delivery
of the property to the district and are secured by a security
interest in the property. The transactions may take the form of,
but are not limited to, lease-purchase agreements.
(e) May accept money or property donated for the use or benefit
of the district and use the money or property for the purpose for
which it was donated.
(7) The education service district board may adopt rules it
considers necessary to carry out the duties of the board.
(8) The education service district may contract with public and
private entities for service delivery.
(9)(a) The education service district shall work cooperatively
with component school districts and review periodically with
component school districts the operations of component school
districts and shall submit to the component school districts
plans for operations that achieve economies and efficiencies
through consolidation of various operations of all or some of the
districts. The education service district and its component
school districts shall submit an annual report on the
effectiveness of the consolidation of operations to the State
Board of Education.
Enrolled Senate Bill 250 (SB 250-C) Page 4
(b) As used in this subsection, 'operations' means services
involving transportation, payroll, student records, auditing,
legal services, insurance, printing, investment and other similar
services.
SECTION 7. ORS 334.125, as amended by section 6 of this 2011
Act, is amended to read:
334.125. (1) The education service district is a body
corporate.
(2) The education service district board is authorized to
transact all business coming within the jurisdiction of the
education service district and may sue and be sued.
(3) The education service district board shall perform all
duties required by law, including but not limited to:
(a) Distribution of such school funds as it is empowered to
apportion;
(b) Conduct of audits;
(c) Duties as district boundary board;
(d) Budget and tax levying duties, including the levying of
taxes under ORS 280.060;
(e) Contracting a bonded indebtedness and levying direct ad
valorem taxes on all taxable property within the education
service district in the manner that component school districts
are authorized to issue bonds and levy taxes under ORS 328.205 to
328.304 and other laws applicable to the issuance of bonds and
levying of taxes by school districts; and
(f) Creating a county education bond district under ORS 328.304
from a county within the district.
(4) { - (a) - } In addition to its duties under subsection
(3) of this section, an education service district board:
{ - (A) - } { + (a) + } May provide services required by
the local service plan developed pursuant to ORS 334.175;
{ - (B) - } { + (b) + } { - Except as provided by
subparagraph (C) of this paragraph, - } May provide funds to a
component school district to provide services required by the
local service plan in lieu of the component school district
receiving services from the education service district;
{ - (C) Shall provide funds in the manner described in
paragraph (b) of this subsection to a component school district
to provide services required by the local service plan in lieu of
the component school district receiving services from the
education service district if: - }
{ - (i) The school district received funds under subparagraph
(B) of this paragraph for the 2010-2011 fiscal year; and - }
{ - (ii) The school district requests that the funds be
provided as required by this subparagraph; - }
{ - (D) - } { + (c) + } Shall provide funds as specified in
ORS 327.019 (9) to a school district located within the territory
of the education service district that has withdrawn from the
education service district as provided in section 2 of this 2011
Act; and
{ - (E) - } { + (d) + } For the purpose of providing
services consistent with the local service plan, may enter into
contracts with school districts that have withdrawn from the
education service district as provided in section 2 of this 2011
Act or that are located outside the territory of the education
service district.
{ - (b) If an education service district board is required to
provide funds to a school district under paragraph (a)(C) of this
subsection, the education service district board shall provide
the funds as a percentage of the funds available to the education
Enrolled Senate Bill 250 (SB 250-C) Page 5
service district under ORS 334.177 that is at least equal to the
lesser of: - }
{ - (A) The percentage that the education service district
board provided to the school district in the 2010-2011 fiscal
year; or - }
{ - (B) The percentage requested by the school district, as
provided by paragraph (a)(C) of this subsection. - }
(5) The education service district board may employ and fix the
compensation of such personnel as it considers necessary for
carrying out duties of the board.
(6) In carrying out its duties, the education service district
board:
(a) May locate, buy, accept by gift or lease such land,
buildings and facilities as may be required for district
purposes. Leases authorized by this section may be for a term of
up to 30 years and include lease-purchase agreements whereunder
the district may acquire ownership of the leased property.
(b) May acquire personal property by a lease-purchase agreement
or contract of purchase for a term exceeding one year. A
lease-purchase agreement is one in which the rent payable by the
district is expressly agreed to have been established to reflect
the savings resulting from the exemption from taxation, and the
district is entitled to ownership of the property at a nominal or
other price which is stated or determinable by the terms of the
agreement and was not intended to reflect the true value of the
property.
(c) May lease property or sell and convey property of the
district as the board considers unnecessary to its purposes.
(d) May purchase relocatable structures in installment
transactions in which deferred installments of the purchase price
are payable over not more than 10 years from the date of delivery
of the property to the district and are secured by a security
interest in the property. The transactions may take the form of,
but are not limited to, lease-purchase agreements.
(e) May accept money or property donated for the use or benefit
of the district and use the money or property for the purpose for
which it was donated.
(7) The education service district board may adopt rules it
considers necessary to carry out the duties of the board.
(8) The education service district may contract with public and
private entities for service delivery.
(9)(a) The education service district shall work cooperatively
with component school districts and review periodically with
component school districts the operations of component school
districts and shall submit to the component school districts
plans for operations that achieve economies and efficiencies
through consolidation of various operations of all or some of the
districts. The education service district and its component
school districts shall submit an annual report on the
effectiveness of the consolidation of operations to the State
Board of Education.
(b) As used in this subsection, 'operations' means services
involving transportation, payroll, student records, auditing,
legal services, insurance, printing, investment and other similar
services.
SECTION 8. { + The amendments to ORS 334.125 by section 7 of
this 2011 Act become operative on July 1, 2012. + }
SECTION 9. ORS 334.127 is amended to read:
334.127. { + (1) + } Whenever an education service district
ceases to exist, its real property shall pass to the successor
Enrolled Senate Bill 250 (SB 250-C) Page 6
district, which is authorized to treat { - such - }
{ + the + } property in the same manner as { - its - }
{ + did the + } predecessor district { - did - } .
{ + (2) Whenever a school district withdraws from an
education service district as provided in section 2 of this 2011
Act, the school district and education service district shall
determine the disposition of any real property of the education
service district that is located within the boundaries of the
school district. If the school district and the education service
district are unable to agree on how to dispose of the real
property, the education service district shall retain the
property. + }
SECTION 10. ORS 334.175 is amended to read:
334.175. (1) An education service district shall provide
regionalized core services to component school districts. The
goals of these services are to:
(a) Assist component school districts in meeting the
requirements of state and federal law;
(b) Improve student learning;
(c) Enhance the quality of instruction provided to students;
{ - (d) Provide professional development to component school
district employees; - }
{ - (e) - } { + (d) + } Enable component school districts
and the students who attend schools in those districts to have
equitable access to resources; and
{ - (f) - } { + (e) + } Maximize operational and fiscal
efficiencies for component school districts.
(2) The services provided by an education service district
shall be provided according to a local service plan developed by
the education service district and component school districts.
The education service district and component school districts
shall develop the local service plan to meet the goals specified
in subsection (1) of this section. The local service plan must
include services in at least the following areas:
(a) Programs for children with special needs, including but not
limited to special education services { - , - } { + and + }
services for at-risk students { - and professional development
for employees who provide those services - } .
(b) Technology support for component school districts and the
individual technology plans of those districts, including but not
limited to technology infrastructure services, data services,
instructional technology services { - , - } { + and + }
distance learning { - and professional development for
employees who provide those services - } .
(c) School improvement services for component school districts,
including but not limited to:
(A) Services designed to support component school districts in
meeting the requirements of state and federal law;
(B) Services designed to allow the education service district
to participate in and facilitate a review of the state and
federal standards related to the provision of a quality education
by component school districts;
(C) Services designed to support and facilitate continuous
school improvement planning;
(D) Services designed to address schoolwide behavior and
climate issues; { + and + }
(E) Services designed to support career and technical
education { + . + } { - ; and - }
{ - (F) Professional development for employees who provide
the services described in this paragraph. - }
Enrolled Senate Bill 250 (SB 250-C) Page 7
(d) Administrative and support services for component school
districts, including but not limited to services designed to
consolidate component school district business functions, liaison
services between the Department of Education and component school
districts and registration of children being taught by private
teachers, parents or legal guardians pursuant to ORS 339.035.
(e) Other services that an education service district is
required to provide by state or federal law, including but not
limited to services required under ORS 339.005 to 339.090.
(3) In addition to the services specified in subsection (2) of
this section, a local service plan may include other services
that are designed to meet regional needs.
(4) A local service plan shall also contain annual performance
measures for the education service district.
(5) A local service plan must:
(a) Be adopted by the board of the education service district.
(b) After being adopted by the board of the education service
district, be approved on or before March 1 by resolution of
two-thirds of the component school districts that are a part of
the education service district and that have at least a majority
of the pupils included in the average daily membership of the
education service district, as determined by the reports of such
school districts for the preceding year, enrolled in the schools
of the school districts.
(6) Notwithstanding the process for approval and adoption
required by subsection (5) of this section, if the component
school districts approve an amendment to a local service plan
pursuant to subsection (5)(b) of this section, the board of an
education service district may amend a local service plan that
has been previously adopted by the board and approved by the
component school districts. An amendment to a local service plan
may be done at any time.
{ + (7) If a component school district determines that a
local service plan, or the provision of services under a local
service plan, does not meet the service needs of the component
school district, the component school district may contract with
a public entity for the provision of services. + }
{ - (7) - } { + (8) + } An education service district may
provide the services required by the local service plan directly
through the staff of the district. In addition, an education
service district may provide services required by the local
service plan through the operation of a public school, a public
charter school pursuant to ORS chapter 338, an alternative school
or a preschool.
{ - (8) - } { + (9) + } An education service district may
provide the services required by the local service plan in
cooperation with another education service district or with a
school district. In addition, an education service district may
contract with a public or private entity for the provision of
services.
SECTION 11. ORS 334.177 is amended to read:
334.177. (1) As used in this section, 'local revenues of an
education service district' has the meaning given that term in
ORS 327.019 but does not include any local revenues distributed
{ - to component school districts - } under ORS 327.019 (8).
(2) An education service district board shall expend at least
90 percent of all amounts received from the State School Fund and
at least 90 percent of all amounts considered to be local
revenues of an education service district on services or programs
that have been approved by the component school districts of the
Enrolled Senate Bill 250 (SB 250-C) Page 8
education service district through the resolution process
described in ORS 334.175.
(3) An education service district board shall expend 100
percent of all amounts received from the School Improvement Fund
on services or programs that have been approved by the component
school districts of the education service district through the
resolution process described in ORS 334.175.
{ + (4) The expenditure requirements of this section apply
only to amounts retained by the education service district after
making any distributions required under ORS 327.019 (9). + }
SECTION 12. ORS 334.240 is amended to read:
334.240. (1) { + Except as provided in subsection (2) of this
section, + } the education service district board shall be
subject in all respects to { - the Local Budget Law (ORS
294.305 to 294.565) - } { + ORS 294.305 to 294.565 + }, except
that in addition to other qualifications, members of the budget
committee who are not members of the education service district
board shall be members of component school district boards within
the education service district or shall be designees of a school
district board.
(2) Notwithstanding ORS 294.336 and 294.341, a majority of the
members of the budget committee of an education service district
must consist of members of the component school district boards
or designees of a school district board. The budget committee may
meet to conduct business if the education service district board
is unable to fill all of the positions on the budget committee.
(3) The { - board of the education service district - }
{ + budget committee + } shall prepare { - and adopt - } a
budget for the operational and administrative expenses of the
education service district. The budget shall include amounts
necessary to provide services required by the local service plan
of the district developed under ORS 334.175. { + The budget must
be adopted by the board of the education service district.
(4) The board of the education service district shall ensure
that an annual audit of the accounts of the education service
district is prepared in accordance with the Municipal Audit Law,
as provided in ORS 297.405 to 297.555 and 297.990. + }
SECTION 13. ORS 327.019 is amended to read:
327.019. (1) As used in this section:
(a) 'Education service district extended ADMw' means the sum of
the extended ADMw of the { - component - } school districts
{ + located within the territory + } of the education service
district as computed under ORS 327.013.
(b) 'Local revenues of an education service district' means the
total of the following:
(A) The amount of revenue offset against local property taxes
as determined by the Department of Revenue under ORS 311.175
(3)(a)(A);
(B) The amount of property taxes actually received by the
district including penalties and interest on taxes;
(C) The amount of revenue received by the district from
state-managed forestlands under ORS 530.115 (1)(b) and (c); and
(D) Any positive amount obtained by subtracting the operating
property taxes actually imposed by the district based on the rate
certified pursuant to ORS 310.060 from the amount that would have
been imposed by the district if the district had certified the
maximum rate of operating property taxes allowed by law.
(2) Each fiscal year, the Superintendent of Public Instruction
shall calculate a State School Fund grant for each education
service district as provided in this section.
Enrolled Senate Bill 250 (SB 250-C) Page 9
(3)(a) Each fiscal year, the superintendent shall calculate the
total amount appropriated or allocated to the State School Fund
and available for distribution to school districts, education
service districts { + , + } { - and - } programs { + and the
Office of Regional Educational Services + } + total amount of
local revenues of all school districts, computed as provided in
ORS 327.011, + total amount of local revenues of all education
service districts. The superintendent may not include in the
calculation under this paragraph amounts received by the
Department of Education from the State School Fund under ORS
343.243.
(b) The superintendent shall multiply the amount calculated
under paragraph (a) of this subsection by { - 95.25 - }
{ + 95.5 + } percent.
(c) Based on the amount calculated under paragraph (b) of this
subsection, the superintendent shall calculate a funding
percentage to distribute as nearly as practicable under ORS
327.006 to 327.133, 327.348, 327.355, 327.357 and 327.360 the
total amount calculated under paragraph (b) of this subsection as
school district general purpose grants, facility grants, high
cost disabilities grants and transportation grants to school
districts.
(d) Based on the funding percentage calculated under paragraph
(c) of this subsection, the superintendent shall calculate the
general purpose grant, facility grant, transportation grant and
high cost disabilities grant amounts for each school district.
(4) { + (a) + } The general services grant for an education
service district shall equal the higher of:
{ - (a) - } { + (A) + } The total amount calculated under
subsection (3)(d) of this section for the { - component - }
school districts { + located within the territory + } of the
education service district X ( { - 4.75 - } { + 4.5 + }
: { - 95.25 - } { + 95.5 + }); or
{ - (b) - } { + (B) + } $1 million { + if the education
service district received a general services grant of $1 million
for the 2010-2011 school year + }.
{ + (b) Notwithstanding paragraph (a) of this subsection and
only for State School Fund distributions made for the first
school year after two or more education service districts join
together, if an education service district received a general
services grant as provided by paragraph (a)(B) of this subsection
prior to the education service district joining together with one
or more other education service districts to form a new education
service district:
(A) The general services grant for the new education service
district shall be calculated for each component education service
district as though the component education service districts had
not joined together to form a new education service district; and
(B) A component education service district that received $1
million as provided by paragraph (a)(B) of this subsection shall
be entitled to receive $1 million under the calculation provided
by this paragraph. + }
(5) Subject to subsection (6) of this section, the State School
Fund grant for an education service district = general services
grant - local revenues of the education service district.
(6)(a) After completing the calculations under subsections (2)
to (5) of this section, the Superintendent of Public Instruction
shall apportion from the State School Fund to each education
service district an amount = (funding percentage X general
Enrolled Senate Bill 250 (SB 250-C) Page 10
services grant) - local revenues of the education service
district.
(b) The funding percentage used in paragraph (a) of this
subsection shall be calculated by the superintendent to
distribute as nearly as practicable the total amount available
for distribution to education service districts from the State
School Fund for each fiscal year.
(7) Notwithstanding subsections (5) and (6) of this section:
(a) The State School Fund grant of an education service
district may not be less than zero; and
(b) The State School Fund grant of an education service
district shall be in an amount that, when combined with the local
revenues of the education service district, equals $1 million or
more.
(8) An education service district shall distribute to { - its
component - } school districts { + located within the territory
of the education service district + } any amount of local
revenues of the education service district that is greater than
the general services grant. The amount that each
{ - component - } school district receives under this
subsection shall be prorated based on the district extended ADMw
of { - each - } { + the + } school district { + as
calculated under ORS 327.013 + }.
{ + (9)(a) An education service district shall distribute to
a school district that is located within the territory of the
education service district but that has withdrawn from the
education service district as provided in section 2 of this 2011
Act the amounts received by the education service district as a
general services grant and from the School Improvement Fund.
(b) The amounts that a school district receives under this
subsection:
(A) Shall be prorated based on the district extended ADMw of
the school district as calculated under ORS 327.013;
(B) Shall equal 90 percent of the school district's prorated
share, as calculated under subparagraph (A) of this paragraph;
and
(C) May be used to pay for any expenses incurred in providing
services described in ORS 334.175 (2) to the students of the
school district by:
(i) The school district;
(ii) The education service district from which the school
district withdrew;
(iii) An education service district that is not the education
service district from which the school district withdrew; or
(iv) Any other public entity with which the school district has
entered into a contract to provide the services. + }
SECTION 14. { + The amendments to ORS 327.019 by section 13 of
this 2011 Act apply to State School Fund distributions commencing
with the 2011-2012 distribution. + }
SECTION 15. ORS 327.019, as amended by section 13, chapter 846,
Oregon Laws 2007, section 4, chapter 439, Oregon Laws 2009, and
section 11, chapter 698, Oregon Laws 2009, is amended to read:
327.019. (1) As used in this section:
(a) 'Education service district extended ADMw' means the sum of
the extended ADMw of the { - component - } school districts
{ + located within the territory + } of the education service
district as computed under ORS 327.013.
(b) 'Local revenues of an education service district' means the
total of the following:
Enrolled Senate Bill 250 (SB 250-C) Page 11
(A) The amount of revenue offset against local property taxes
as determined by the Department of Revenue under ORS 311.175
(3)(a)(A);
(B) The amount of property taxes actually received by the
district including penalties and interest on taxes;
(C) The amount of revenue received by the district from
state-managed forestlands under ORS 530.115 (1)(b) and (c); and
(D) Any positive amount obtained by subtracting the operating
property taxes actually imposed by the district based on the rate
certified pursuant to ORS 310.060 from the amount that would have
been imposed by the district if the district had certified the
maximum rate of operating property taxes allowed by law.
(2) Each fiscal year, the Superintendent of Public Instruction
shall calculate a State School Fund grant for each education
service district as provided in this section.
(3)(a) Each fiscal year, the superintendent shall calculate the
total amount appropriated or allocated to the State School Fund
and available for distribution to school districts, education
service districts { + , + } { - and - } programs { + and the
Office of Regional Educational Services + }+ total amount of
local revenues of all school districts, computed as provided in
ORS 327.011, + total amount of local revenues of all education
service districts. The superintendent may not include in the
calculation under this paragraph amounts received by the
Department of Education from the State School Fund under ORS
343.243.
(b) The superintendent shall multiply the amount calculated
under paragraph (a) of this subsection by { - 95.25 - }
{ + 95.5 + } percent.
(c) Based on the amount calculated under paragraph (b) of this
subsection, the superintendent shall calculate a funding
percentage to distribute as nearly as practicable under ORS
327.006 to 327.133 and 327.348 the total amount calculated under
paragraph (b) of this subsection as school district general
purpose grants, facility grants, high cost disabilities grants
and transportation grants to school districts.
(d) Based on the funding percentage calculated under paragraph
(c) of this subsection, the superintendent shall calculate the
general purpose grant, facility grant, transportation grant and
high cost disabilities grant amounts for each school district.
(4) { + (a) + } The general services grant for an education
service district shall equal the higher of:
{ - (a) - } { + (A) + } The total amount calculated under
subsection (3)(d) of this section for the { - component - }
school districts { + located within the territory + } of the
education service district X ( { - 4.75 - } { + 4.5 + }
: { - 95.25 - } { + 95.5 + }); or
{ - (b) - } { + (B) + } $1 million { + if the education
service district received a general services grant of $1 million
for the 2010-2011 school year + }.
{ + (b) Notwithstanding paragraph (a) of this subsection and
only for State School Fund distributions made for the first
school year after two or more education service districts join
together, if an education service district received a general
services grant as provided by paragraph (a)(B) of this subsection
prior to the education service district joining together with one
or more other education service districts to form a new education
service district:
(A) The general services grant for the new education service
district shall be calculated for each component education service
Enrolled Senate Bill 250 (SB 250-C) Page 12
district as though the component education service districts had
not joined together to form a new education service district; and
(B) A component education service district that received $1
million as provided by paragraph (a)(B) of this subsection shall
be entitled to receive $1 million under the calculation provided
by this paragraph. + }
(5) Subject to subsection (6) of this section, the State School
Fund grant for an education service district = general services
grant - local revenues of the education service district.
(6)(a) After completing the calculations under subsections (2)
to (5) of this section, the Superintendent of Public Instruction
shall apportion from the State School Fund to each education
service district an amount = (funding percentage X general
services grant) - local revenues of the education service
district.
(b) The funding percentage used in paragraph (a) of this
subsection shall be calculated by the superintendent to
distribute as nearly as practicable the total amount available
for distribution to education service districts from the State
School Fund for each fiscal year.
(7) Notwithstanding subsections (5) and (6) of this section:
(a) The State School Fund grant of an education service
district may not be less than zero; and
(b) The State School Fund grant of an education service
district shall be in an amount that, when combined with the local
revenues of the education service district, equals $1 million or
more.
(8) An education service district shall distribute to { - its
component - } school districts { + located within the territory
of the education service district + } any amount of local
revenues of the education service district that is greater than
the general services grant. The amount that each
{ - component - } school district receives under this
subsection shall be prorated based on the district extended ADMw
of { - each - } { + the + } school district { + as
calculated under ORS 327.013 + }.
{ + (9)(a) An education service district shall distribute to
a school district that is located within the territory of the
education service district but that has withdrawn from the
education service district as provided in section 2 of this 2011
Act the amounts received by the education service district as a
general services grant and from the School Improvement Fund.
(b) The amounts that a school district receives under this
subsection:
(A) Shall be prorated based on the district extended ADMw of
the school district as calculated under ORS 327.013;
(B) Shall equal 90 percent of the school district's prorated
share, as calculated under subparagraph (A) of this paragraph;
and
(C) May be used to pay for any expenses incurred in providing
services described in ORS 334.175 (2) to the students of the
school district by:
(i) The school district;
(ii) The education service district from which the school
district withdrew;
(iii) An education service district that is not the education
service district from which the school district withdrew; or
(iv) Any other public entity with which the school district has
entered into a contract to provide the services. + }
Enrolled Senate Bill 250 (SB 250-C) Page 13
SECTION 16. { + The amendments to ORS 327.019 by section 15 of
this 2011 Act apply to State School Fund distributions commencing
with the 2012-2013 distribution. + }
SECTION 17. ORS 294.447 is amended to read:
294.447. (1) As used in this section { + , + } 'extended ADMw '
means:
(a) For a school district { + , + } the district extended ADMw
as calculated under ORS 327.013.
(b) For an education service district { + , + } the sum of the
extended ADMw of the { - component - } school districts
{ + located within the territory + } of the education service
district.
(2) Notwithstanding ORS 294.445, a school district or education
service district that uses the accrual basis method of accounting
may include as accrued revenues in the budget and financial
statement of the school district or education service district,
for any fiscal year, an amount from the next fiscal year that is
to be received in the next fiscal year. The amount accrued under
this section may not be greater than the amount calculated under
subsection (3)(b) or (c) of this section multiplied by the
extended ADMw of the school district or education service
district.
(3)(a) For each fiscal year, the Department of Education shall
calculate the amount available in the State School Fund for
grants and distributions to school districts and the amount
available for grants and distributions to education service
districts under ORS 327.008, 327.013 and 327.019 based on the
appropriations and allocations made to the State School Fund for
that fiscal year by the Legislative Assembly in regular session.
The department may not include in the amount calculated to be
available for school districts { + and education service
districts + } under this paragraph the amounts received by the
Youth Corrections Education Program and the Juvenile Detention
Education Program under ORS 327.026 from the State School
Fund { + or amounts transferred to the Regional Educational
Services Account as provided by section 34 of this 2011 Act + }.
(b) The department shall calculate for school districts an
amount equal to (the amount calculated under paragraph (a) of
this subsection for school districts : 12) : the total statewide
extended ADMw of all school districts.
(c) The department shall calculate for education service
districts an amount equal to (the amount calculated under
paragraph (a) of this subsection for education service
districts : 12) : the total statewide extended ADMw of all
education service districts.
(d) The department may adjust the calculations under this
subsection based on current data for the factors used to
calculate the State School Fund distribution to school districts
and education service districts under ORS 327.008, 327.013 and
327.019.
(e) Notwithstanding paragraph (d) of this subsection, the
department may not adjust the calculation under paragraph (a) of
this subsection based on changes made to the appropriations or
allocations to the State School Fund by the Legislative Assembly
in special session or by rule of the Oregon Department of
Administrative Services relating to allotting funds.
(4) Notwithstanding ORS 294.445, a community college district
or community college service district that uses the accrual basis
method of accounting may include as accrued revenues in the
budget and financial statement of the community college district
Enrolled Senate Bill 250 (SB 250-C) Page 14
or community college service district, for any fiscal year, an
amount from the next fiscal year that is to be received in the
next fiscal year. The amount accrued under this section may not
be greater than 25 percent of the amount the community college
district or community college service district received as a
Community College Support Fund grant for the fiscal year for
which the revenues are to be accrued.
SECTION 18. ORS 327.297 is amended to read:
327.297. (1) In addition to those moneys distributed through
the State School Fund, the Department of Education shall award
grants to school districts, education service districts, the
Youth Corrections Education Program and the Juvenile Detention
Education Program for activities that relate to increases in
student achievement, including:
(a) Early childhood support including establishing, maintaining
or expanding quality prekindergarten programs and full-day
kindergarten programs;
(b) Class size reduction with an emphasis on the reduction of
kindergarten through grade three class sizes;
(c) Increases in instructional time including summer programs
and before- and after-school programs;
(d) Mentoring, teacher retention and professional development;
(e) Remediation, alternative learning and student retention;
(f) Services to at-risk youth;
(g) Programs to improve a student achievement gap between
student groups identified by culture, poverty, language and race
and other student groups;
(h) Vocational education programs;
(i) Literacy programs;
(j) School library programs; and
(k) Other research-based student improvement strategies
approved by the State Board of Education.
(2)(a) Each school district, each education service district,
the Youth Corrections Education Program and the Juvenile
Detention Education Program may apply to the Department of
Education for a grant.
(b) The department shall review and approve applications based
on criteria established by the State Board of Education. In
establishing the criteria, the State Board of Education shall
consider the recommendations of the Quality Education Commission
established under ORS 327.500.
(c) The applications shall include the activities to be funded
and the goals of the district or program for increases in student
performance. The applications shall become part of the local
district continuous improvement plan described in ORS 329.095.
(3) The Department of Education shall evaluate the annual
progress of each recipient of grant funds under this section
toward the performance targets established by the Quality
Education Commission. The evaluation shall become part of the
requirements of the department for assessing the effectiveness of
the district under ORS 329.085, 329.095 and 329.105. The
department shall ensure district and program accountability by
providing appropriate assistance, intervening and establishing
consequences in order to support progress toward the performance
targets.
(4) Each biennium the Department of Education shall issue a
report to the Legislative Assembly on the grant program and the
results of the grant program.
Enrolled Senate Bill 250 (SB 250-C) Page 15
(5)(a) Notwithstanding ORS 338.155 (9), the Department of
Education may not award a grant under this section directly to a
public charter school.
(b) A school district that receives a grant under this section
may transfer a portion of the grant to a public charter school
based on the charter of the school or any other agreement between
the school district and the public charter school.
(c) A public charter school that receives grant funds under
this subsection shall use those funds for the activities
specified in subsection (1) of this section.
(6)(a) The amount of each grant for a program or school
district = the program's or school district's ADMw X (the total
amount available for distribution to programs and school
districts as grants in each fiscal year : the total ADMw of all
programs and school districts that receive a grant).
(b) The amount of each grant for an education service district
= the education service district's ADMw X (the total amount
available for distribution to education service districts as
grants in each fiscal year : the total ADMw of all education
service districts that receive a grant).
(c) As used in this subsection, 'ADMw' means:
(A) For a school district, the extended weighted average daily
membership as calculated under ORS 327.013, 338.155 (1) and
338.165 (3);
(B) For the Youth Corrections Education Program, the average
daily membership as defined in ORS 327.006 multiplied by 2.0;
(C) For the Juvenile Detention Education Program, the average
daily membership as defined in ORS 327.006 multiplied by 1.5; and
(D) For an education service district, the sum of the ADMw of
the { - component - } school districts { + located within the
territory + } of the education service district.
(7) Each district or program shall deposit the grant amounts it
receives under this section in a separate account, and shall
apply amounts in that account to pay for activities described in
the district's or program's application.
(8) The State Board of Education may adopt any rules necessary
for the administration of the grant program.
SECTION 19. ORS 757.612 is amended to read:
757.612. (1) There is established an annual public purpose
expenditure standard for electric companies and Oregon Community
Power to fund new cost-effective local energy conservation, new
market transformation efforts, the above-market costs of new
renewable energy resources and new low-income weatherization. The
public purpose expenditure standard shall be funded by the public
purpose charge described in subsection (2) of this section.
(2)(a) Beginning on the date an electric company or Oregon
Community Power offers direct access to its retail electricity
consumers, except residential electricity consumers, the electric
company or Oregon Community Power shall collect a public purpose
charge from all of the retail electricity consumers located
within its service area until January 1, 2026. Except as provided
in paragraph (b) of this subsection, the public purpose charge
shall be equal to three percent of the total revenues collected
by the electric company, Oregon Community Power or the
electricity service supplier from its retail electricity
consumers for electricity services, distribution, ancillary
services, metering and billing, transition charges and other
types of costs included in electric rates on July 23, 1999.
(b) For an aluminum plant that averages more than 100 average
megawatts of electricity use per year, beginning on March 1,
Enrolled Senate Bill 250 (SB 250-C) Page 16
2002, the electric company or Oregon Community Power whose
territory abuts the greatest percentage of the site of the
aluminum plant shall collect from the aluminum company a public
purpose charge equal to one percent of the total revenue from the
sale of electricity services to the aluminum plant from any
source.
(3)(a) The Public Utility Commission shall establish rules
implementing the provisions of this section relating to electric
companies and Oregon Community Power.
(b) Subject to paragraph (e) of this subsection, funds
collected by an electric company or Oregon Community Power
through public purpose charges shall be allocated as follows:
(A) Sixty-three percent for new cost-effective conservation and
new market transformation.
(B) Nineteen percent for the above-market costs of constructing
and operating new renewable energy resources with a nominal
electric generating capacity, as defined in ORS 469.300, of 20
megawatts or less.
(C) Thirteen percent for new low-income weatherization.
(D) Five percent shall be transferred to the Housing and
Community Services Department Electricity Public Purpose Charge
Fund established by ORS 456.587 (1) and used for the purpose of
providing grants as described in ORS 458.625 (2).
(c) The costs of administering subsections (1) to (6) of this
section for an electric company or Oregon Community Power shall
be paid out of the funds collected through public purpose
charges. The commission may require that an electric company or
Oregon Community Power direct funds collected through public
purpose charges to the state agencies responsible for
implementing subsections (1) to (6) of this section in order to
pay the costs of administering such responsibilities.
(d) The commission shall direct the manner in which public
purpose charges are collected and spent by an electric company or
Oregon Community Power and may require an electric company or
Oregon Community Power to expend funds through competitive bids
or other means designed to encourage competition, except that
funds dedicated for low-income weatherization shall be directed
to the Housing and Community Services Department as provided in
subsection (7) of this section. The commission may also direct
that funds collected by an electric company or Oregon Community
Power through public purpose charges be paid to a nongovernmental
entity for investment in public purposes described in subsection
(1) of this section. Notwithstanding any other provision of this
subsection:
(A) At least 80 percent of the funds allocated for conservation
shall be spent within the service area of the electric company
that collected the funds; or
(B) If Oregon Community Power collected the funds, at least 80
percent of the funds allocated for conservation shall be spent
within the service area of Oregon Community Power.
(e)(A) The first 10 percent of the funds collected annually by
an electric company or Oregon Community Power under subsection
(2) of this section shall be distributed to education service
districts, as described in ORS 334.010, that are located in the
service territory of the electric company or Oregon Community
Power. The funds shall be distributed to individual education
service districts according to the weighted average daily
membership (ADMw) of the { - component - } school districts
{ + located within the territory + } of the education service
district for the prior fiscal year as calculated under ORS
Enrolled Senate Bill 250 (SB 250-C) Page 17
327.013. The commission shall establish by rule a methodology for
distributing a proportionate share of funds under this paragraph
to education service districts that are only partially located in
the service territory of the electric company or Oregon Community
Power.
(B) An education service district that receives funds under
this paragraph shall use the funds first to pay for energy audits
for school districts located within the education service
district. An education service district may not expend additional
funds received under this paragraph on a school district facility
until an energy audit has been completed for that school
district. To the extent practicable, an education service
district shall coordinate with the State Department of Energy and
incorporate federal funding in complying with this paragraph.
Following completion of an energy audit for an individual school
district, the education service district may expend funds
received under this paragraph to implement the energy audit. Once
an energy audit has been conducted and completely implemented for
each school district within the education service district, the
education service district may expend funds received under this
paragraph for any of the following purposes:
(i) Conducting energy audits. A school district shall conduct
an energy audit prior to expending funds on any other purpose
authorized under this paragraph unless the school district has
performed an energy audit within the three years immediately
prior to receiving the funds.
(ii) Weatherization and upgrading the energy efficiency of
school district facilities.
(iii) Energy conservation education programs.
(iv) Purchasing electricity from environmentally focused
sources and investing in renewable energy resources.
(f) The commission may not establish a different public purpose
charge than the public purpose charge described in subsection (2)
of this section.
(g) If the commission directs funds collected through public
purpose charges to a nongovernmental entity, the entity shall:
(A) Include on the entity's board of directors an ex officio
member designated by the commission, who shall also serve on the
entity's nominating committee for filling board vacancies.
(B) Require the entity's officers and directors to provide an
annual disclosure of economic interest to be filed with the
commission on or prior to April 15 of each calendar year for
public review in a form similar to the statement of economic
interest required for public officials under ORS 244.060.
(C) Require the entity's officers and directors to declare
actual and potential conflicts of interest at regular meetings of
the entity's governing body when such conflicts arise, and
require an officer or director to abstain from participating in
any discussion or vote on any item where that officer or director
has an actual conflict of interest. For the purposes of this
subparagraph, 'actual conflict of interest' and 'potential
conflict of interest' have the meanings given those terms in ORS
244.020.
(D) Arrange for an independent auditor to audit the entity's
financial statements annually, and direct the auditor to file an
audit opinion with the commission for public review.
(E) File with the commission annually the entity's budget,
action plan and quarterly and annual reports for public review.
(F) At least once every five years, contract for an independent
management evaluation to review the entity's operations,
Enrolled Senate Bill 250 (SB 250-C) Page 18
efficiency and effectiveness, and direct the independent reviewer
to file a report with the commission for public review.
(h) The commission may remove from the board of directors of a
nongovernmental entity an officer or director who fails to
provide an annual disclosure of economic interest or declare
actual or potential conflict of interest, as described in
paragraph (g)(B) and (C) of this subsection, in connection with
the allocation or expenditure of funds collected through public
purpose charges and directed to the entity.
(4)(a) An electric company that satisfies its obligations under
this section shall have no further obligation to invest in
conservation, new market transformation or new low-income
weatherization or to provide a commercial energy conservation
services program and is not subject to ORS 469.631 to 469.645 and
469.860 to 469.900.
(b) Oregon Community Power, for any period during which Oregon
Community Power collects a public purpose charge under subsection
(2) of this section:
(A) Shall have no other obligation to invest in conservation,
new market transformation or new low-income weatherization or to
provide a commercial energy conservation services program; and
(B) Is not subject to ORS 469.631 to 469.645 and 469.860 to
469.900.
(5)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year
shall receive a credit against public purpose charges billed by
an electric company or Oregon Community Power for that site. The
amount of the credit shall be equal to the total amount of
qualifying expenditures for new energy conservation, not to
exceed 68 percent of the annual public purpose charges, and the
above-market costs of purchases of new renewable energy resources
incurred by the retail electricity consumer, not to exceed 19
percent of the annual public purpose charges, less administration
costs incurred under this subsection. The credit may not exceed,
on an annual basis, the lesser of:
(A) The amount of the retail electricity consumer's qualifying
expenditures; or
(B) The portion of the public purpose charge billed to the
retail electricity consumer that is dedicated to new energy
conservation, new market transformation or the above-market costs
of new renewable energy resources.
(b) To obtain a credit under this subsection, a retail
electricity consumer shall file with the State Department of
Energy a description of the proposed conservation project or new
renewable energy resource and a declaration that the retail
electricity consumer plans to incur the qualifying expenditure.
The State Department of Energy shall issue a notice of
precertification within 30 days of receipt of the filing, if such
filing is consistent with this subsection. The credit may be
taken after a retail electricity consumer provides a letter from
a certified public accountant to the State Department of Energy
verifying that the precertified qualifying expenditure has been
made.
(c) Credits earned by a retail electricity consumer as a result
of qualifying expenditures that are not used in one year may be
carried forward for use in subsequent years.
(d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may
request that the State Department of Energy hire an independent
auditor to assess the potential for conservation investments at
Enrolled Senate Bill 250 (SB 250-C) Page 19
the site. If the independent auditor determines there is no
available conservation measure at the site that would have a
simple payback of one to 10 years, the retail electricity
consumer shall be relieved of 54 percent of its payment
obligation for public purpose charges related to the site. If the
independent auditor determines that there are potential
conservation measures available at the site, the retail
electricity consumer shall be entitled to a credit against public
purpose charges related to the site equal to 54 percent of the
public purpose charges less the estimated cost of available
conservation measures.
(B) A retail electricity consumer shall be entitled each year
to the credit described in this subsection unless a subsequent
independent audit determines that new conservation investment
opportunities are available. The State Department of Energy may
require that a new independent audit be performed on the site to
determine whether new conservation measures are available,
provided that the independent audits shall occur no more than
once every two years.
(C) The retail electricity consumer shall pay the cost of the
independent audits described in this subsection.
(6) Electric utilities and retail electricity consumers shall
receive a fair and reasonable credit for the public purpose
expenditures of their energy suppliers. The State Department of
Energy shall adopt rules to determine eligible expenditures and
the methodology by which such credits are accounted for and used.
The rules also shall adopt methods to account for eligible public
purpose expenditures made through consortia or collaborative
projects.
(7)(a) In addition to the public purpose charge provided under
subsection (2) of this section, an electric company or Oregon
Community Power shall collect funds for low-income electric bill
payment assistance in an amount determined under paragraph (b) of
this subsection.
(b) The commission shall establish the amount to be collected
by each electric company in calendar year 2008 from retail
electricity consumers served by the company, and the rates to be
charged to retail electricity consumers served by the company, so
that the total anticipated collection for low-income electric
bill payment assistance by all electric companies in calendar
year 2008 is $15 million. In calendar year 2009 and subsequent
calendar years, the commission may not change the rates
established for retail electricity consumers, but the total
amount collected in a calendar year for low-income electric bill
payment assistance may vary based on electricity usage by retail
electricity consumers and changes in the number of retail
electricity consumers in this state. In no event shall a retail
electricity consumer be required to pay more than $500 per month
per site for low-income electric bill payment assistance.
(c) Funds collected by the low-income electric bill payment
assistance charge shall be paid into the Housing and Community
Services Department Low-Income Electric Bill Payment Assistance
Fund established by ORS 456.587 (2). Moneys deposited in the fund
under this paragraph shall be used by the Housing and Community
Services Department for the purpose of funding low-income
electric bill payment assistance. The department's cost of
administering this subsection shall be paid out of funds
collected by the low-income electric bill payment assistance
charge. Moneys deposited in the fund under this paragraph shall
be expended solely for low-income electric bill payment
Enrolled Senate Bill 250 (SB 250-C) Page 20
assistance. Funds collected from an electric company or Oregon
Community Power shall be expended in the service area of the
electric company or Oregon Community Power from which the funds
are collected.
(d) The Housing and Community Services Department, in
consultation with the federal Advisory Committee on Energy, shall
determine the manner in which funds collected under this
subsection will be allocated by the department to energy
assistance program providers for the purpose of providing
low-income bill payment and crisis assistance, including programs
that effectively reduce service disconnections and related costs
to retail electricity consumers and electric utilities. Priority
assistance shall be directed to low-income electricity consumers
who are in danger of having their electricity service
disconnected.
(e) Interest on moneys deposited in the Housing and Community
Services Department Low-Income Electric Bill Payment Assistance
Fund established by ORS 456.587 (2) may be used to provide
heating bill payment and crisis assistance to electricity
consumers whose primary source of heat is not electricity.
(f) Notwithstanding ORS 757.310, the commission may allow an
electric company or Oregon Community Power to provide reduced
rates or other payment or crisis assistance or low-income program
assistance to a low-income household eligible for assistance
under the federal Low Income Home Energy Assistance Act of 1981,
as amended and in effect on July 23, 1999.
(8) For purposes of this section, 'retail electricity
consumers' includes any direct service industrial consumer that
purchases electricity without purchasing distribution services
from the electric utility.
(9) For purposes of this section, amounts collected by Oregon
Community Power through public purpose charges are not considered
moneys received from electric utility operations.
SECTION 20. ORS 184.483 is amended to read:
184.483. (1) The Oregon Department of Administrative Services
shall develop and make available an Oregon transparency website.
The website shall allow any person to view information that is a
public record and not exempt from disclosure under ORS 192.410 to
192.505, including but not limited to information described in
subsection (3) of this section.
(2) State agencies { + and education service districts + }, to
the extent practicable and subject to laws relating to
confidentiality, when at no additional cost, using existing data
and existing { - state agency - } resources { + of the state
agency or education service district + } and without reallocation
of resources, shall:
(a) Furnish information to the Oregon transparency website by
posting reports and providing links to existing information
system applications in accordance with standards established by
the Oregon Department of Administrative Services; and
(b) Provide the information in the format and manner required
by the Oregon Department of Administrative Services.
(3) To the extent practicable and subject to laws relating to
confidentiality, when at no additional cost, using existing data
and existing { - state agency - } resources { + of the state
agency or education service district + } and without reallocation
of resources, the Oregon transparency website shall contain
information about each state agency { + and education service
district + }, including but not limited to:
Enrolled Senate Bill 250 (SB 250-C) Page 21
(a) Annual { - state agency - } revenues { + of state
agencies and education service districts + };
(b) Annual { - state agency - } expenditures { + of state
agencies and education service districts + };
(c) Annual { - state agency - } human resources expenses,
including compensation { + , of state agencies and education
service districts + };
(d) Annual { - state agency - } tax expenditures { + of
state agencies + }, including, { - where - } { + when + }
possible, the identity of the recipients of each tax expenditure;
(e) { - State agency - } Contracting and subcontracting
information { + of state agencies and education service
districts + }, to the extent allowed by law;
(f) A prominently placed graphic representation of the primary
funding categories and approximate number of individuals served
by the state agency { + or the education service district + };
(g) A description of the mission, function and program
categories of the state agency { + or education service
district + };
(h) Information about the state agency from the Oregon Progress
Board; { - and - }
(i) A copy of any audit report issued by the Secretary of State
for the state agency { + or of any audit reports issued for the
education service district;
(j) The local service plans of the education service districts;
(k) A copy of each report required by statute for education
service districts; and
(L) A copy of all notices of public meetings of the education
service districts + }.
(4) In creating, operating, refining and recommending
enhancements to the Oregon transparency website, the Oregon
Department of Administrative Services and the Transparency Oregon
Advisory Commission created in ORS 184.486 shall consider and, to
the extent practicable, adhere to the following principles:
(a) The website must be accessible without cost and be easy to
use;
(b) Information included on the Oregon transparency website
must be presented using plain, easily understandable language;
and
(c) The website should teach users about how state government
{ - works - } { + and education service districts work + }
and provide users with the opportunity to learn something about
how state government
{ - raises and spends - } { + and education service districts
raise and spend + } revenue.
(5) If a state agency { + or an education service district + }
is not able to include information described in this section on
the Oregon transparency website because of the lack of
availability of information or cost in acquiring it, the
Transparency Oregon Advisory Commission created in ORS 184.486
shall list the information that is not included for that state
agency { + or education service district + } in the commission's
report to the Legislative Assembly required under ORS 184.486.
SECTION 21. { + Sections 22 to 26 of this 2011 Act are added
to and made a part of ORS chapter 334. + }
SECTION 22. { + (1) As used in this section:
(a) 'Obligations' means all contractual obligations, employment
and service contracts and collective bargaining agreements.
(b) 'Reorganized' means a change in:
Enrolled Senate Bill 250 (SB 250-C) Page 22
(A) The boundaries of an education service district, including
a merger; or
(B) The governance structure of an education service district.
(2) Employees who are employed by an education service district
that is reorganized and who are employed in duties that, after
the reorganization, are to be performed by the new education
service district shall be considered employees of the new
education service district. The new education service district
shall succeed the previous education service district as party to
any employment contracts.
(3) Employees in the new education service district shall
retain any seniority and accumulated sick leave and vacation
leave from the previous education service district.
(4) All real and personal property belonging to an education
service district that is reorganized is considered property of
the new education service district.
(5) All obligations of an education service district that is
reorganized are considered obligations of the new education
service district. + }
SECTION 23. { + (1) A school district that withdraws from an
education service district as provided by section 2 of this 2011
Act and that seeks to fill a vacant position of employment shall
interview persons who:
(a) Were employed by the education service district prior to
the withdrawal of the school district; and
(b) Performed duties similar to the duties that will be
performed in the position that the school district is seeking to
fill.
(2) Nothing in this section requires a school district to
interview a person who had been employed by an education service
district if the school district does not have a similar and
vacant position.
(3) The interview requirement described in this section does
not apply to the superintendent of the education service district
or to any other administrators, as defined in ORS 342.120, of the
education service district.
(4) The interview requirement described in this section applies
only during the 12 calendar months immediately following the
effective date of the withdrawal of the school district from the
education service district. + }
SECTION 24. { + If, prior to June 30, 2012, two or more
education service districts choose to join together for the
purpose of forming one education service district, the education
service districts:
(1) Are not required to follow the procedures described in ORS
334.710 and 334.720; and
(2) May join together by having each education service district
that proposes to join together issue an order that recognizes the
joining together of the education service districts. + }
SECTION 25. { + (1) No later than October 1 of each year, the
board of directors of an education service district shall produce
an annual report related to the performance and the finances of
the education service district for the previous school year. The
purpose of the report is to provide information to parents,
component school districts and the Department of Education and to
improve education service districts through greater involvement
of persons who are interested in the success of education service
districts.
(2) The annual report that is produced as required by this
section must include:
Enrolled Senate Bill 250 (SB 250-C) Page 23
(a) The size and demographics of the education service
district;
(b) The number of students served by the education service
district, identified by school district;
(c) Services provided by the education service district, and
how those services align with the goals described in ORS 334.175
and the local service plan developed for the education service
district;
(d) The number of hours of services provided by the education
service district, identified by category;
(e) The staff of the education service district, identified by
category;
(f) The use of distance learning; and
(g) The education service district's revenue and expenditures,
including employee salary information.
(3) The board of directors of the education service district
must:
(a) Submit the report produced as required by this section to:
(A) The component school districts of the education service
district; and
(B) The Department of Education.
(b) Make the report produced as required by this section
available to the public at the administrative offices of the
education service district and on the website for the education
service district. + }
SECTION 26. { + Notwithstanding section 25 of this 2011 Act,
the first report required under section 25 of this 2011 Act shall
be produced no later than October 1, 2012. + }
SECTION 27. ORS 342.121 is amended to read:
342.121. (1) The Teacher Standards and Practices Commission
shall issue licenses to teachers and administrators who possess
the minimum competencies, knowledge and skills to teach and
administer in the public schools of the state.
(2) { + (a) + } In addition to a teaching or administrative
license, a person may obtain certification, indicating a higher
degree of competency, knowledge and skill based on work
experience and advanced study, from a professional organization
of teachers or administrators, either on the state or national
level. { - However, - } A teaching certificate or
administrative certificate { - shall not be - } { + is
not + } required to teach or administer in a public school of
this state.
{ + (b) In addition to holding an administrative license as a
superintendent, a person who is a superintendent of an education
service district shall obtain certification, indicating a higher
degree of competency, knowledge and skill based on work
experience and advanced study, from the commission. The
certificate shall be designed to ensure that the superintendent
has knowledge of theories related to change, strategic planning
and financial planning and is capable of formulating
interorganizational cooperation and developing partnerships. The
certificate described in this paragraph is required for a person
to be a superintendent of an education service district of this
state. + }
SECTION 28. ORS 334.225 is amended to read:
334.225. (1) The education service district board shall employ
a superintendent who must hold an administrative license as a
superintendent { + and a certificate described in ORS 342.121
(2)(b) + }. The superintendent shall serve as the board's
executive officer, give an official bond or an irrevocable letter
Enrolled Senate Bill 250 (SB 250-C) Page 24
of credit issued by an insured institution, as defined in ORS
706.008, and have the duties prescribed by the board and the laws
of this state. The board shall fix the term and compensation of
the superintendent, provide office room for the superintendent
and allow all of the superintendent's necessary traveling
expenses.
(2) The education service district board shall designate the
superintendent as the district clerk. The board may appoint
qualified persons as deputies to the superintendent to perform
the duties required of the district clerk by law or by the board.
SECTION 29. { + (1) The amendments to ORS 334.225 and 342.121
by sections 27 and 28 of this 2011 Act become operative on July
1, 2013.
(2) The amendments to ORS 334.225 and 342.121 by sections 27
and 28 of this 2011 Act apply to superintendents of education
service districts hired before, on or after the effective date of
this 2011 Act. + }
SECTION 30. { + Sections 31 and 32 of this 2011 Act are added
to and made a part of ORS chapter 334. + }
SECTION 31. { + (1) The Office of Regional Educational
Services is established for the purposes of coordinating the
efforts of and providing leadership for regional educational
service delivery systems. The office shall function under the
direction and control of the State Board of Education.
(2)(a) The Director of the Office of Regional Educational
Services shall serve as the administrative officer of the Office
of Regional Educational Services. The Superintendent of Public
Instruction shall select the director.
(b) The director shall perform the duties, powers and functions
of the office under the supervision and subject to the direction
of the Superintendent of Public Instruction.
(3) The office shall:
(a) Establish best practice policies for the delivery of
regional educational services.
(b) Establish benchmarks for education service districts that
encourage improvements and that allow the education service
districts to demonstrate that improvements are being made in the
operation of the education service districts.
(c) Determine the direct cost of services to school districts
that are assessed by education service districts.
(d) Ensure that each education service district has an annual
audit of the accounts of the education service district prepared
in accordance with the Municipal Audit Law, as provided in ORS
297.405 to 297.555 and 297.990, and review the audit.
(e) Recommend to the Superintendent of Public Instruction any
actions to be taken regarding an education service district if
the office has reason to believe that an education service
district is nonstandard as provided by ORS 334.217. A recommended
action under this paragraph may include conducting a performance
audit of the education service district.
(f) Recommend to the Superintendent of Public Instruction any
sanctions to impose on an education service district that are
consistent with ORS 334.217 and recommend any statutory changes
required to impose effective sanctions on education service
districts.
(g) Recommend to the Superintendent of Public Instruction and
the State Board of Education any statutory or rule changes that
may improve the operations or administration of education service
districts.
Enrolled Senate Bill 250 (SB 250-C) Page 25
(h) Recommend to the board of directors of an education service
district or to the superintendent of an education service
district any changes that may improve the operations or
administration of the education service district.
(i) Recommend to the Superintendent of Public Instruction and
the State Board of Education any changes in education service
district boundaries that may reduce costs and increase the
quality of services provided by education service districts.
(j) Recommend to the board of directors of an education service
district or to the superintendent of an education service
district any changes in service delivery regions that may reduce
costs and increase the quality of services provided by the
education service district.
(k) Provide training and related support for boards of
directors of education service districts and superintendents of
education service districts.
(L) Gather information regarding the cost of services within
education service districts and across education service
districts, identify unusually high cost services and provide the
gathered information to education service districts, the
Superintendent of Public Instruction and the State Board of
Education.
(4) For the purposes of identifying the best practice policies
described in subsection (3)(a) of this section and the benchmarks
described in subsection (3)(b) of this section, the office may:
(a) Conduct an analysis of the effectiveness of education
service districts that are identified by the director; and
(b) Conduct evaluations of the systems and procedures of
education service districts identified by the director.
(5) The director may enter into contracts as necessary to
perform the duties of the office specified in subsection (3) of
this section.
(6) The State Board of Education, in collaboration with the
Superintendent of Public Instruction and the director, may adopt
any rules necessary for the purposes of this section.
(7) On behalf of the office, the Department of Education may
accept contributions of moneys and assistance from the United
States Government or its agencies or from any other source,
public or private, and agree to conditions placed on the moneys
not inconsistent with the duties of the office. All moneys
received by the department under this subsection shall be
deposited into the Regional Educational Services Account
established by section 32 of this 2011 Act to be used for the
purposes of carrying out the duties of the office. + }
SECTION 32. { + (1) The Regional Educational Services Account
is established in the State Treasury, separate and distinct from
the General Fund. Interest earned by the Regional Educational
Services Account shall be credited to the account. Except as
limited by subsection (2) of this section, moneys in the account
are continuously appropriated to the Office of Regional
Educational Services.
(2) The Office of Regional Educational Services may expend or
otherwise obligate no more than $500,000 per biennium from the
Regional Educational Services Account. The Director of the Office
of Regional Educational Services shall establish a schedule that
allows for the periodic transfer of moneys in the account that
are in excess of the moneys allowed to the Office of Regional
Educational Services under this subsection. Transfers shall be
made to the State School Fund for distribution to school
districts as provided by ORS 327.013 and this section.
Enrolled Senate Bill 250 (SB 250-C) Page 26
(3) On June 30 of each odd-numbered year, all moneys in the
account that are unexpended, unobligated and not subject to any
conditions shall transfer to the State School Fund for
distribution to school districts as provided by ORS 327.013 and
this section.
(4) For the purpose of distributions made as provided by this
section, the Superintendent of Public Instruction:
(a) May not include any amounts transferred to the State School
Fund under this section when making calculations described in ORS
327.019 (3)(a).
(b) May not distribute to education service districts or the
Office of Regional Educational Services any moneys transferred to
the State School Fund as provided by this section.
(c) Shall distribute to school districts any moneys received
under this section based on the schedule described in ORS
327.095. + }
SECTION 33. { + Section 34 of this 2011 Act is added to and
made a part of ORS 327.006 to 327.133. + }
SECTION 34. { + (1) Each fiscal year, the Superintendent of
Public Instruction shall transfer from the State School Fund to
the Regional Educational Services Account established by section
32 of this 2011 Act the amount calculated as provided by this
section.
(2)(a) Each fiscal year, the superintendent shall calculate the
total amount appropriated or allocated to the State School Fund
and available for distribution to school districts, education
service districts, programs and the Office of Regional
Educational Services + total amount of local revenues of all
school districts, computed as provided in ORS 327.011, + total
amount of local revenues of all education service districts. The
superintendent may not include in the calculation under this
paragraph amounts received by the Department of Education from
the State School Fund under ORS 343.243.
(b) The superintendent shall multiply the amount calculated
under paragraph (a) of this subsection by 0.25 percent.
(c) The superintendent shall transfer the amount calculated
under paragraph (b) of this subsection to the Regional
Educational Services Account. + }
SECTION 35. { + Section 34 of this 2011 Act applies to State
School Fund distributions commencing with the 2011-2012
distribution. + }
SECTION 36. ORS 327.008 is amended to read:
327.008. (1) There is established a State School Fund in the
General Fund. The fund shall consist of moneys appropriated by
the Legislative Assembly and moneys transferred from the
Education Stability Fund. The State School Fund is continuously
appropriated to the Department of Education for the purposes of
ORS 327.006 to 327.077, 327.095, 327.099, 327.101, 327.125,
327.137, 327.348, 327.355, 327.357, 327.360, 336.575, 336.580,
336.635, 342.173, 343.243, 343.533 and 343.961.
(2) There shall be apportioned from the State School Fund to
each school district a State School Fund grant, consisting of the
positive amount equal to a general purpose grant and a facility
grant and a transportation grant and a high cost disabilities
grant minus local revenue, computed as provided in ORS 327.011
and 327.013.
(3) There shall be apportioned from the State School Fund to
each education service district a State School Fund grant as
calculated under ORS 327.019.
Enrolled Senate Bill 250 (SB 250-C) Page 27
{ + (4) There shall be apportioned from the State School Fund
the amount to be transferred to the Regional Educational Services
Account as calculated under section 34 of this 2011 Act. + }
{ - (4) - } { + (5) + } All figures used in the
determination of the distribution of the State School Fund shall
be estimates for the same year as the distribution occurs, unless
otherwise specified.
{ - (5) - } { + (6) + } Numbers of students in average
daily membership used in the distribution formula shall be the
numbers as of June of the year of distribution.
{ - (6) - } { + (7) + } A school district may not use the
portion of the State School Fund grant that is attributable to
the facility grant for capital construction costs.
{ - (7) - } { + (8) + } The total amount of the State
School Fund that is distributed as facility grants may not exceed
$25 million in any biennium. If the total amount to be
distributed as facility grants exceeds this limitation, the
Department of Education shall prorate the amount of funds
available for facility grants among those school districts that
qualified for a facility grant.
{ - (8) - } { + (9) + } Each fiscal year, the Department of
Education shall transfer the amount of $18 million from the State
School Fund to the High Cost Disabilities Account established in
ORS 327.348.
{ - (9) - } { + (10) + } Each fiscal year, the Department
of Education shall transfer the amount of $2.5 million from the
State School Fund to the Small School District Supplement Fund
established in ORS 327.360.
{ - (10) - } { + (11) + } Each fiscal year, the Department
of Education may expend up to $550,000 from the State School Fund
for the contract described in ORS 329.488. The amount distributed
to education service districts from the State School Fund under
this section and ORS 327.019 shall be reduced by the amount
expended by the department under this subsection.
{ - (11) - } { + (12) + } Each biennium, the Department of
Education may expend up to $800,000 from the State School Fund
for the administration of ORS 326.133 and 326.136.
{ - (12) - } { + (13) + } Each biennium, the Department of
Education may expend up to $350,000 from the State School Fund to
provide administration of and support for the development of
talented and gifted education under ORS 343.404.
{ - (13) - } { + (14) + } Each biennium, the Department of
Education may expend up to $150,000 from the State School Fund
for the administration of a program to increase the number of
speech-language pathologists and speech-language pathology
assistants under ORS 348.394 to 348.406.
SECTION 37. ORS 327.008, as amended by section 12, chapter 846,
Oregon Laws 2007, section 2, chapter 39, Oregon Laws 2008, and
section 9, chapter 698, Oregon Laws 2009, is amended to read:
327.008. (1) There is established a State School Fund in the
General Fund. The fund shall consist of moneys appropriated by
the Legislative Assembly and moneys transferred from the
Education Stability Fund. The State School Fund is continuously
appropriated to the Department of Education for the purposes of
ORS 327.006 to 327.077, 327.095, 327.099, 327.101, 327.125,
327.137, 327.348, 336.575, 336.580, 336.635, 342.173, 343.243,
343.533 and 343.961.
(2) There shall be apportioned from the State School Fund to
each school district a State School Fund grant, consisting of the
positive amount equal to a general purpose grant and a facility
Enrolled Senate Bill 250 (SB 250-C) Page 28
grant and a transportation grant and a high cost disabilities
grant minus local revenue, computed as provided in ORS 327.011
and 327.013.
(3) There shall be apportioned from the State School Fund to
each education service district a State School Fund grant as
calculated under ORS 327.019.
{ + (4) There shall be apportioned from the State School Fund
the amount to be transferred to the Regional Educational Services
Account as calculated under section 34 of this 2011 Act. + }
{ - (4) - } { + (5) + } All figures used in the
determination of the distribution of the State School Fund shall
be estimates for the same year as the distribution occurs, unless
otherwise specified.
{ - (5) - } { + (6) + } Numbers of students in average
daily membership used in the distribution formula shall be the
numbers as of June of the year of distribution.
{ - (6) - } { + (7) + } A school district may not use the
portion of the State School Fund grant that is attributable to
the facility grant for capital construction costs.
{ - (7) - } { + (8) + } The total amount of the State
School Fund that is distributed as facility grants may not exceed
$25 million in any biennium. If the total amount to be
distributed as facility grants exceeds this limitation, the
Department of Education shall prorate the amount of funds
available for facility grants among those school districts that
qualified for a facility grant.
{ - (8) - } { + (9) + } Each fiscal year, the Department of
Education shall transfer the amount of $18 million from the State
School Fund to the High Cost Disabilities Account established in
ORS 327.348.
{ - (9) - } { + (10) + } Each fiscal year, the Department
of Education may expend up to $550,000 from the State School Fund
for the contract described in ORS 329.488. The amount distributed
to education service districts from the State School Fund under
this section and ORS 327.019 shall be reduced by the amount
expended by the department under this subsection.
{ - (10) - } { + (11) + } Each biennium, the Department of
Education may expend up to $800,000 from the State School Fund
for the administration of ORS 326.133 and 326.136.
{ - (11) - } { + (12) + } Each biennium, the Department of
Education may expend up to $350,000 from the State School Fund to
provide administration of and support for the development of
talented and gifted education under ORS 343.404.
{ - (12) - } { + (13) + } Each biennium, the Department of
Education may expend up to $150,000 from the State School Fund
for the administration of a program to increase the number of
speech-language pathologists and speech-language pathology
assistants under ORS 348.394 to 348.406.
SECTION 38. ORS 334.217 is amended to read:
334.217. (1) The State Board of Education by rule shall
establish standards to determine the adequacy of services and
facilities provided by the education service districts. In
establishing such standards, the state board shall consider the
most economic method of providing services and facilities, the
quality of the services and facilities according to the best
educational standards, and the needs of the students.
(2) When the Superintendent of Public Instruction determines
pursuant to rule that an education service district is
nonstandard, the district designated nonstandard shall file a
plan to meet standards over a specified period of time. The
Enrolled Senate Bill 250 (SB 250-C) Page 29
Superintendent { + of Public Instruction + } may accept, reject
or modify the plan and order the nonstandard district to comply
with the plan as approved by the superintendent. Once a plan is
approved, the district shall be conditionally standard until all
deficiencies are corrected. If a district corrects all
deficiencies, the district shall be designated as standard. The
district shall have 180 days from the date the plan is accepted
to make all corrections. After that time, the Superintendent
{ + of Public Instruction + } may impose sanctions on the
district if the district has not made the necessary corrections.
{ + (3) + } The state board shall establish by rule
appropriate sanctions for noncompliance. The sanctions may
include { + :
(a) + } Mandatory merger of the nonstandard education service
district with a contiguous education service district that is
standard { - , - } { + ;
(b) + } The sanctions described in ORS 342.173, if applicable
{ - , or - } { + ;
(c) + } The withholding of funds from the State School Fund
{ - . - } { + ;
(d) The removal of the superintendent of the education service
district;
(e) The temporary governance of the education service district
by the state board; or
(f) Dissolution of the education service district. + }
SECTION 39. { + 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
its passage. + }
----------
Enrolled Senate Bill 250 (SB 250-C) Page 30
Passed by Senate June 20, 2011
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House June 21, 2011
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Enrolled Senate Bill 250 (SB 250-C) Page 31
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 Senate Bill 250 (SB 250-C) Page 32
