Bill Text: OR SB250 | 2011 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Amended.html
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-Amended.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
SA to SB 250
LC 1292/SB 250-8
SENATE AMENDMENTS TO
SENATE BILL 250
By COMMITTEE ON EDUCATION AND WORKFORCE DEVELOPMENT
March 9
On page 1 of the printed bill, line 2, after 'ORS' delete the
rest of the line and lines 3 and 4 and insert '255.005, 267.380,
294.447, 327.019, 327.297, 332.136, 334.003, 334.025, 334.032,
334.095, 334.100, 334.125, 334.127, 334.175, 334.177, 334.240,
334.730, 334.760, 656.430 and 757.612 and section 15, chapter
828, Oregon Laws 2005; repealing ORS 334.032, 334.035, 334.045,
334.090, 334.095, 334.740 and 334.750 and section 5, chapter 59,
Oregon Laws 2010; and declaring an emergency.'.
Delete lines 6 through 29 and delete pages 2 through 13 and
insert:
' { + SECTION 1. + } { + Sections 2 to 4 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 school districts of an education service
district may withdraw from the education service district.
' (2)(a) A school district board that is considering whether to
withdraw a school district from an education service district
must:
' (A) Prepare a plan of withdrawal and make the plan available
to the public; and
' (B) Hold a public hearing and solicit comments about the plan
prepared as provided by this paragraph.
' (b) Following the public hearing under paragraph (a) of this
subsection, the school district board may determine whether to
withdraw the school district from the education service district.
The school district board may choose to withdraw by an
affirmative vote of two-thirds of the members of the board.
' (3)(a) A school district board that chooses to withdraw a
school district from the education service district as provided
in subsection (2) of this section must submit a plan of
withdrawal to the board of directors of the education service
district and to the school district boards of the component
school districts. The plan of withdrawal must describe how the
school district will provide the services described in ORS
334.175 (2) to the students of the school district.
' (b) A plan of withdrawal described in this subsection must be
submitted no later than October 1 of the year prior to the year
in which the school district plans to withdraw from the education
service district.
' (c) Within 120 days of receiving the plan of withdrawal, 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 an order is
issued by the board of directors of the education service
district recognizing the withdrawal. + }
' { + SECTION 3. + } { + (1) Notwithstanding section 2 of
this 2011 Act and except as provided in subsection (2) of this
section, + } { + the board of directors of an education service
district may not issue an order recognizing the withdrawal of a
school district from the education service district if the
withdrawal would become effective prior to July 1, 2014.
' (2)(a) The board of directors of an education service
district composed of a region described in ORS 334.020 (1)(c),
(m) or (p) may issue an order recognizing the withdrawal of a
school district from the education service district that becomes
effective on or after July 1, 2012.
' (b) If the board of directors of an education service
district issues an order recognizing the withdrawal of a school
district that becomes effective on July 1, 2012, as allowed under
this subsection, the board shall submit a report to the interim
legislative committees relating to education prior to October 1,
2012. + }
' { + SECTION 4. + } { + (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 two-thirds of the members of the board. A vote described in
this subsection must occur no later than October 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 prior to October 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 5. + } 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 6. + } ORS 334.025 is amended to read:
' 334.025. (1) { + (a) + } The board of directors of an
education service district shall consist of { - seven, nine or
11 members - } { + five, seven or nine members + }.
' { + (b) The members of the board shall be elected from
among the superintendents of the component school districts by
the superintendents of the component school districts.
' (c) The board of directors may by resolution increase or
decrease the number of members of the board. The board's
resolution shall have no effect on the terms of any current board
members. + }
' { - (2) In education service districts, not fewer than five
of the directors shall be elected, one from each of the zones
established under ORS 334.032. At the discretion of the board of
directors, one or two board members may be elected from the
district at large. - }
' { - (3) - } { + (2) + } On the petition of two component
school districts, the board shall establish local advisory
committees to represent the interests of areas within the
petitioning districts. The local advisory committees shall
advise the board on matters of concern within the advisory
committee's area. Local advisory committees shall represent two
or more component school districts.
' { - (4) The board of directors may by resolution increase or
decrease the number of members of the board. The board's
resolution shall be entered with sufficient time for the board to
give the required information to the elections officer under ORS
255.069, and the board's resolution shall have no effect on the
terms of any current board members. - }
' { + SECTION 7. + } ORS 334.032 is amended to read:
' 334.032. (1) The board of directors of an education service
district shall divide the education service district into not
more than 11 zones as nearly equal in census population as may be
practicable, measured along common school district boundary lines
except that zones may be established using voting precinct
boundaries in order to achieve greater equality of population. If
possible, the board shall establish the zones so that each county
within the education service district, the majority of the land
area of which lies within the boundaries of the education service
district, has at least one member on the board.
' (2) Each county within the education service district, the
majority of the land area of which lies within the boundaries of
the education service district, shall have at least one member on
the board or shall have at least one member on the budget
committee of the education service district.
' (3) The board may readjust the boundaries of the zones once
each year and shall readjust the boundaries of the zones
immediately upon { + :
' (a) + } Any change of the boundaries of the education service
district { - . - } { + ;
' (b) The withdrawing of a school district as provided in
section 2 of this 2011 Act; or
' (c) The rejoining of a school district as provided in section
4 of this 2011 Act. + }
' { + SECTION 8. + } 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
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 9. + } ORS 334.100 is amended to read:
' 334.100. (1) Each { + year, the + } education service
district board shall meet during July and organize by electing
one of its members chairperson and one vice chairperson { - ,
each of whom shall serve until a successor is elected and
qualified - } . No member shall serve as chairperson for more
than two years in succession.
' (2) Regular meetings of an education service district board
shall be held on meeting dates determined by the board. Special
meetings may be held on dates to be determined by the board.
' (3) Members of the education service district board shall
receive no compensation for their services, but shall be
reimbursed for all traveling and other expenses necessarily
incurred in performing their duties as members of the board.
' (4) A majority of the members of the education service
district board shall constitute a quorum. A lesser number may
meet and adjourn from time to time and compel the presence of
absent members. The affirmative vote of a majority of members of
the board is required to transact any business.
' (5) Any duty imposed upon the education service district
board as a body must be performed at a regular or special meeting
and must be made a matter of record. The consent to any
particular measure obtained of individual members when the board
is not in session is not an act of the board and is not binding
upon the district.
' { + SECTION 10. + } 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
' (E) 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 for the purpose of
providing services consistent with the local service plan.
' (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.
' (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 11. + } 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
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 12. + } 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) Enable component school districts and the students who
attend schools in those districts to have equitable access to
resources; and
' (f) 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, 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, 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;
' (E) Services designed to support career and technical
education; and
' (F) Professional development for employees who provide the
services described in this paragraph.
' (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, then the component school district may contract
with a public or private 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 13. + } 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
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 14. + } 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) { - , 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. - }
' { + (2) Notwithstanding ORS 294.336 and 294.341, the
members of the budget committee of an education service district
must be members of the component school district boards.
Preference for membership of the budget committee shall be given
to members of component school district boards that are not
represented on the board of directors of the education service
district. + }
' (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 15. + } ORS 334.730 is amended to read:
' 334.730. { - (1) - } Immediately after the order to join
two or more education service districts together, the boards of
directors of all education service districts within the
boundaries of the new district shall meet together upon the call
of the chairperson of the board of the most populous district.
{ - Notwithstanding ORS 334.025 or ORS chapter 255, the joint
board of directors shall divide the new district into as many
zones as the board considers necessary, but not fewer than seven
nor more than 11. The zones shall be as nearly equal in
population as may be practicable. If possible, the joint board
shall establish the zones so that each county within the new
education service district, the majority of the land area of
which lies within the boundaries of the education service
district, has at least one member on the board. - }
' { - (2) Within 90 days after the zones required in
subsection (1) of this section are established, the joint board
of directors shall call a special election in the new district
for the purpose of electing directors, one of whom shall be
elected from each zone established under subsection (1) of this
section by the electors of the zone. - }
' { + SECTION 16. + } ORS 334.760 is amended to read:
' 334.760. { - During the period following their election
and - } Prior to the date the new education service district
comes into existence, the board of directors of the new education
service district may take such action as is essential in order
that the new district may carry out its required functions when
it comes into existence, including the preparation and adoption
of a budget for the new district. Expenditures of the board under
this section shall be paid from the budgets of the component
education service districts on a prorated basis.
' { + SECTION 17. + } Section 15, chapter 828, Oregon Laws
2005, as amended by section 6, chapter 589, Oregon Laws 2007, and
section 6, chapter 59, Oregon Laws 2010, is amended to read:
' { + Sec. 15. + } (1) Sections 11 to 14, chapter 828, Oregon
Laws 2005, are repealed on June 30, { - 2013 - } { +
2012 + }.
' (2) The amendments to ORS 260.432 by section 8, chapter 589,
Oregon Laws 2007, become operative on June 30, { - 2013 - }
{ + 2012 + }.
' { + SECTION 18. + } { + The term of office of a director
who serves on the board of directors of an education service
district terminates on June 30, 2012. + }
' { + SECTION 19. + } 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.
' (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 + 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 - }
{ + 96.44 + } 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) The general services grant for an education service
district shall equal the higher of:
' (a) The total amount calculated under subsection (3)(d) of
this section for the { - component - } school districts
{ + located within the territory + } of the education service
district X ( { - 4.75 - } { + 3.56 + } : { - 95.25 - } { +
96.44 + }); or
' (b) $1 million.
' (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 following:
' (A) Amounts received by the education service district from
the State School Fund and the School Improvement Fund; and
' (B) Amounts described in ORS 757.612 (3)(e) that are received
by the education service district.
' (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; and
' (B) 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 the school district or by a public or private
entity with which the school district has entered into a contract
to provide the services. + }
' { + SECTION 20. + } { + The amendments to ORS 327.019 by
section 19 of this 2011 Act apply to State School Fund
distributions commencing with the 2011-2012 distributions. + }
' { + SECTION 21. + } 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:
' (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 + 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 - }
{ + 97.63 + } 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) The general services grant for an education service
district shall equal the higher of:
' (a) The total amount calculated under subsection (3)(d) of
this section for the { - component - } school districts
{ + located within the territory + } of the education service
district X ( { - 4.75 - } { + 2.37 + } : { - 95.25 - } { +
97.63 + }); or
' (b) $1 million.
' (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 following:
' (A) Amounts received by the education service district from
the State School Fund and the School Improvement Fund; and
' (B) Amounts described in ORS 757.612 (3)(e) that are received
by the education service district.
' (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; and
' (B) 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 the school district or by a public or private
entity with which the school district has entered into a contract
to provide the services. + }
' { + SECTION 22. + } { + The amendments to ORS 327.019 by
section 21 of this 2011 Act apply to State School Fund
distributions commencing with the 2012-2013 distributions. + }
' { + SECTION 23. + } 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 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.
' (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
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 24. + } ORS 255.005 is amended to read:
' 255.005. As used in this chapter:
' (1) 'County clerk' means the county clerk or the county
official in charge of elections.
' (2) 'District board' means the governing body of a district.
' (3) 'District election' means any election authorized or
required to be held by a district.
' (4) 'District elections authority' means the county court or
board of county commissioners, district board or other body or
officer authorized or required to call a district election.
' (5) 'Elections officer' means the:
' (a) County clerk of the county in which the administrative
office of the district is located regarding a measure, or a
candidate for an office, to be voted on in a district located in
more than one county.
' (b) County clerk regarding a measure, or a candidate for an
office, to be voted on in a district situated wholly within the
county.
' (6) 'Elector' means an individual qualified to vote under
section 2, Article II, Oregon Constitution.
' (7) 'Measure' includes any of the following submitted to the
people for their approval or rejection at an election:
' (a) A proposed law.
' (b) An Act or part of an Act of the Legislative Assembly.
' (c) A revision of or amendment to the Oregon Constitution.
' (d) Local, special or municipal legislation.
' (e) A proposition or question.
' (8) 'Regular district election' means the election held each
year for the purpose of electing members of any district board as
defined in subsection (2) of this section.
' (9) 'School district' means a common school district, a union
high school district { - , an education service district - } or
a community college district.
' { + SECTION 25. + } ORS 267.380 is amended to read:
' 267.380. (1) As used in ORS 267.380 and 267.385, unless the
context requires otherwise:
' (a) 'Employer' means:
' (A) A person who is in such relation to another person that
the person may control the work of that other person and direct
the manner in which it is to be done;
' (B) An officer or employee of a corporation, or a member or
employee of a partnership, who as such officer, employee or
member is under a duty to perform the acts required of employers
by ORS 316.162 to 316.221; or
' (C) The State of Oregon or any political subdivision in this
state, except for a school district as defined in ORS 255.005
(9) { + or an education service district + }, with respect to
work performed within the district by an employee of the State of
Oregon or of the political subdivision.
' (b) 'Employer' does not include an organization exempt from
taxation under section 501(c)(3) of the Internal Revenue Code, as
amended and in effect on December 31, 1996, except that 'employer
' does include hospitals.
' (c) 'Wages' means remuneration for services performed by an
employee for the employer, including the cash value of all
remuneration paid in any medium other than cash.
' (d) 'Net earnings from self-employment' has the same meaning
as in section 1402 of the Internal Revenue Code of 1986, as that
section was in effect and operative on December 31, 1988. For
the purposes of computing net earnings from self-employment, a
district may by ordinance from time to time adopt definitions of
the terms used in section 1402.
' (e) 'Individual' means any natural person.
' (2) As used in this section and ORS 267.385, 'wages' does not
include remuneration paid:
' (a) For services performed in the employ of the United States
of America and institutions (excluding hospitals) exempt from
taxation under section 501(c)(3) of the Internal Revenue Code, as
amended and in effect on December 31, 1996.
' (b) For domestic service in a private home if the total
amount paid to such employee is less than $1,000 a year.
' (c) For casual labor not in the course of the employer's
trade or business.
' (d) For services performed wholly outside of the district.
' (e) To an employee whose services to the employer consist
solely of seasonal labor in connection with the planting,
cultivating or harvesting of agricultural crops.
' (f) To seamen who are exempt from garnishment, attachment or
execution under title 46, United States Code.
' (g) To individuals temporarily employed as emergency
firefighters.
' (h) If the remuneration is not subject to withholding under
ORS chapter 316.
' (i) To employees' trusts exempt from taxation under section
401 of the Internal Revenue Code, as amended and in effect on
December 31, 1996.
' (j) If the remuneration is not wages under section
3121(a)(5)(I) of the Internal Revenue Code, as amended and in
effect on December 31, 1996.
' (3) 'Net earnings from self-employment' does not include
income:
' (a)(A) From activities wholly outside of the district.
' (B) That is wages.
' (C) That would be wages under section 3121 of the Internal
Revenue Code, as amended and in effect on December 31, 1990, but
for the provisions of section 3121(b)(8)(A) of the Internal
Revenue Code.
' (b) That is not net earnings from self-employment under
section 1402(a)(8) of the Internal Revenue Code by reason of the
amendments to section 1402 by section 1456 of the Small Business
Job Protection Act of 1996 (P.L. 104-188).
' (4) Notwithstanding any other provision of this section, '
wages' includes:
' (a) Any amount included in the definition of 'wages' under
section 3121 of the Internal Revenue Code, as defined in ORS
316.012, by reason of the provisions of section 3121(a)(5)(C),
3121(a)(5)(D), 3121(v)(1)(A), 3121(v)(1)(B), 3121(v)(3)(A),
3121(a)(5)(E) or 3121(a)(5)(H) of the Internal Revenue Code; or
' (b) Any amount deferred under a nonqualified deferred
compensation plan.
' (5) Any amount taken into account as wages by reason of
subsection (4) of this section and the income attributable
thereto shall not afterwards be treated as wages under this
section.
' { + SECTION 26. + } 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.
' (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 27. + } ORS 332.136 is amended to read:
' 332.136. (1) Each position of school director shall be
designated by number as Position No. 1, Position No. 2 and so on.
' (2) At the first organizational meeting of the board
following formation of the district, the chairperson of the board
shall assign a position number to each office on the board. The
chairperson shall certify the number assigned to the director
holding that position and shall file one copy of the
certification in the records of the district.
' (3) This section applies to the following districts that are
not zoned:
' (a) Common school districts; { + and + }
' (b) Union high school districts { + . + } { - ; and - }
' { - (c) Education service districts. - }
' { + SECTION 28. + } ORS 656.430 is amended to read:
' 656.430. (1) Upon determining that an employer has qualified
as a self-insured employer under ORS 656.407, the Director of the
Department of Consumer and Business Services shall issue a
certificate to that effect to the employer.
' (2) Coverage of a self-insured employer is effective on the
date of certification unless a later date is specified in the
certificate.
' (3) Two or more entities shall not be included in the
certification of one employer unless in each entity the same
person, or group of persons, or corporation owns a majority
interest. If an entity owns a majority interest in another entity
which in turn owns the majority interest in another entity, all
entities so related may be combined regardless of the number of
entities in succession. If more than one entity is included in
the certification of one employer, each entity included is
jointly and severally liable for any compensation and other
amounts due the Department of Consumer and Business Services
under this chapter by any entity included in the certification.
' (4) In the term 'majority interest,' as used in this section,
'majority' means more than 50 percent.
' (5) If an entity other than a partnership:
' (a) Has issued voting stock, 'majority interest' means a
majority of the issued voting stock;
' (b) Has not issued voting stock, 'majority interest' means a
majority of the members; or
' (c) Has not issued voting stock and has no members, '
majority interest' means a majority of the board of directors or
comparable governing body.
' (6) If the entity is a partnership, majority interest shall
be determined in accordance with the participation of each
general partner in the profits of the partnership.
' (7) Notwithstanding any other provision of this section, the
director may certify five or more subject employers as a
self-insured employer group, which shall be considered an
employer for purposes of this chapter, if:
' (a) The director finds that the employers as a group meet the
requirements of ORS 656.407 (1)(b) and (2);
' (b) The director determines that:
' (A) If the employers as a group have insurance coverage with
a retention of $100,000 or more, the employers have a combined
net worth of $1 million or more; or
' (B) If the employers as a group have insurance coverage with
a retention of less than $100,000, the employers have a combined
net worth at least equal to the proportion of $1 million that the
retention bears to $100,000;
' (c) The director finds that the grouping is likely to improve
accident prevention and claims handling for the employer;
' (d) Each employer executes and files with the designated
entity a written agreement, in such form as the director may
prescribe, in which:
' (A) The employer agrees to be jointly and severally liable
for the payment of any compensation and other amounts due to the
Department of Consumer and Business Services under this chapter
incurred by a member of the group; or
' (B) The employer, if a city, county, special district
described and listed in ORS 198.010 or 198.180, translator
district formed under ORS 354.605 to 354.715, weed control
district organized under ORS 569.350 to 569.450,
intergovernmental agency created under ORS 225.050, school
district as defined in ORS 255.005 (9), { + education service
district organized under ORS chapter 334, + } public housing
authority created under ORS chapter 456 or regional council of
governments created under ORS chapter 190, agrees to be
individually liable for the payment of any compensation and other
amounts due to the department under this chapter incurred by the
employer during the period of group self-insurance;
' (e) The director finds that the employer group is organized
as a corporation or cooperative pursuant to ORS chapter 60, 62 or
65, is an intergovernmental entity created under ORS 190.003 to
190.130 and the bylaws require the governing group to obtain
fidelity bonds;
' (f) The director finds that the employer group has designated
an entity within or for the group responsible for centralized
claims processing, payroll records, safety requirements,
recording and submitting assessments and contributions and making
such other reports as the director may require; and
' (g) The employer has presented a method approved by the
director to notify the department of:
' (A) The commencement or termination of membership by
employers in the group, and the effect thereof on the net worth
of the employers in the group; and
' (B) Whether an employer who terminates membership in the
group continues to be a subject employer.
' (8) A self-insured employer must have excess insurance
coverage appropriate for the employer's potential liability under
this chapter with an insurer authorized to do business in this
state. A self-insured employer certified prior to November 1,
1981, must have excess insurance coverage appropriate for the
employer's potential liability under this chapter either with an
insurer authorized to do business in this state or with any other
insurer from whom such insurance can be obtained pursuant to ORS
744.305 to 744.405 (1985 Replacement Part). Evidence of such
coverage must be submitted at the time application is made for
self-insured certification in the form of an insurance binder
providing the appropriate coverage effective the date of
certification. The policy providing such coverage must be filed
with the director not later than 30 days after the date the
coverage is effective. Any changes in the insurer or the coverage
must be filed with the department not later than 30 days after
the effective date of the change. With respect to such coverage:
' (a) The policy must include a provision, approved by the
director, for reimbursement to the department of all expenses
paid by the department on behalf of the employer pursuant to ORS
656.614 (1) and 656.443 in the same manner as if the department
were the insured employer, subject to the policy limitations on
amounts and limits of liability to the insured employer; and
' (b) The period of coverage must be continuous and remain in
effect until the certification is revoked or canceled.
' (9) Notwithstanding ORS 656.440, the director may revoke the
certification of any self-insured employer after giving 30 days'
written notice if the employer:
' (a) Fails to comply with subsection (8) of this section; or
' (b) In the case of an employer described in subsection (7) of
this section, fails to comply with that subsection.
' (10) A self-insured employer must have an occupational safety
and health loss control program as required by ORS 654.097.
' (11) The director, by rule shall:
' (a) Prescribe methods for determining and approving net
worth.
' (b) Prescribe the types and approve the retention and
limitation levels of excess insurance policies.
' (c) Establish reporting requirements.
' (d) Prescribe information to be submitted in applications for
self-insured employer certifications.
' (e) Prescribe the form and manner of reporting commencement
or termination in a self-insured employer group.
' (f) Prescribe the form, amount and manner for establishing
and operating a common claims fund.
' (g) Prescribe such other requirements as the director
considers necessary so that employers certified as self-insured
employers will meet the financial responsibilities under this
chapter.
' (12) For the purpose of certification as a self-insured
employer group, cities, counties, special districts created under
ORS 198.010, intergovernmental agencies created under ORS
225.050, school districts as defined in ORS 255.005 (9), { +
education service districts organized under ORS chapter 334, + }
public housing authorities created under ORS chapter 456 and
regional councils of governments created under ORS chapter 190
shall be considered by the director to be of the same industry.
' (13) Notwithstanding subsection (8) of this section, a public
utility with assets of more than $500 million may obtain excess
insurance coverage from an eligible surplus lines insurer. As
used in this subsection, 'public utility' has the meaning given
that term in ORS 757.005.
' { + SECTION 29. + } 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,
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
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, 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
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
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 30. + } { + Sections 31 and 32 of this 2011
Act are added to and made a part of ORS chapter 334. + }
' { + SECTION 31. + } { + (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:
' (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 32. + } { + (1) A school district that
withdraws from an education service district as provided by
section 2 of this 2011 Act shall hire a person who:
' (a) Was employed by the education service district prior to
the withdrawal of the school district; and
' (b) Will be employed by the school district in duties similar
to the duties the person performed while employed by the
education service district.
' (2) Nothing in this section requires a school district to
hire a person who had been employed by an education service
district if the school district does not have a vacant position.
' (3) The hiring 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) A person hired as required by this section shall retain
any seniority and accumulated sick leave and vacation leave from
the person's previous employment by the education service
district.
' (5) The hiring 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 33. + } { + ORS 334.032, 334.035, 334.045,
334.090, 334.095, 334.740 and 334.750 and section 5, chapter 59,
Oregon Laws 2010, are repealed. + }
' { + SECTION 34. + } { + The amendments to ORS 255.005,
267.380, 332.136, 334.025, 334.100, 334.240, 334.730, 334.760 and
656.430 and section 15, chapter 828, Oregon Laws 2005, by
sections 6, 9, 14 to 17, 24, 25, 27 and 28 of this 2011 Act and
the repeal of ORS 334.032, 334.035, 334.045, 334.090, 334.095,
334.740 and 334.750 and section 5, chapter 59, Oregon Laws 2010,
by section 33 of this 2011 Act become operative July 1, 2012. + }
' { + SECTION 35. + } { + 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. + } ' .
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