71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2961
 
                         Senate Bill 919
 
Sponsored by Senator STARR
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Directs school districts to offer sheltered English immersion
programs. Requires all public school children to be placed in
classrooms in which English is language of instruction.
Establishes process for waiver of requirement for children who
know English, are 10 years of age or older or have special needs
best suited to different educational approach. Requirement does
not apply to foreign language classes or English learners who
receive special education and related services.
  Allows parent or legal guardian to bring civil action against
school district, school district board members and school
employees. Makes board member who is found to have violated
English language instruction provisions ineligible to serve on
board for five years. Directs Teacher Standards and Practices
Commission to suspend or revoke administrator or teacher license
or registration of person who is found to have violated
provisions.
  Modifies formula used to distribute State School Fund.
 
                        A BILL FOR AN ACT
Relating to education; creating new provisions; amending ORS
  327.013, 329.860, 332.016, 332.030, 334.240, 336.081 and
  342.175; and repealing ORS 336.074 and 336.079.
  Whereas the English language is the national public language of
the United States of America and of the state of Oregon, is
spoken by the vast majority of Oregon residents and is also the
leading world language for science, technology and international
business, thereby being the language of economic opportunity; and
  Whereas immigrant parents are eager to have their children
acquire a good knowledge of English, thereby allowing them to
fully participate in the American dream of economic and social
advancement; and
  Whereas the government and the public schools of Oregon have a
moral obligation and a constitutional duty to provide all
Oregon's children, regardless of their ethnicity or national
origins, with the skills necessary to become productive members
of society, and literacy in the English language is among the
most important of these skills; and
  Whereas the public schools of Oregon currently do an inadequate
job of educating immigrant children, wasting financial resources
on costly experimental language programs whose failure over the
past two decades is demonstrated by the current high dropout
rates and low English literacy levels of many immigrant children;
and
  Whereas young immigrant children can easily acquire full
fluency in a new language, such as English, if they are heavily
exposed to that language in the classroom at an early age; and
  Whereas all children in Oregon public schools should be taught
English as rapidly and effectively as possible; now, therefore,
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 1 to 4 of this 2001 Act:
  (1) 'Bilingual education' means a language acquisition process
for students in which most or all instruction, textbooks and
teaching materials are in a child's native language that is other
than English.
  (2) 'English language classroom' means a classroom in which
English is the language of instruction used by the teaching
personnel, and in which the teaching personnel possess a good
knowledge of the English language. English language classrooms
encompass both English language mainstream classrooms and
sheltered English immersion classrooms.
  (3) 'English language mainstream classroom' means a classroom
in which the students either are native English language speakers
or already have acquired reasonable fluency in English.
  (4) 'English learner' means a child who does not speak English
or whose native language is not English, and who is not able to
perform ordinary classroom work in English.
  (5) 'Sheltered English immersion' means a program offered by a
school district under section 2 (2) of this 2001 Act. + }
  SECTION 2.  { + (1) As provided in this section and section 3
of this 2001 Act, all Oregon school children have the right to be
provided with an English language public education at their local
public school.
  (2)(a) Each school district with English learners shall have a
sheltered English immersion program for young children in which
nearly all classroom instruction is in English but in which the
curriculum and presentations are designed for children who are
learning the English language.
  (b) The textbooks and instructional materials for the program
shall be in English and all reading, writing and subject matters
shall be taught in English. A subject matter may not be taught in
any language other than English, and children in the program
shall learn to read and write solely in English.
  (c) Notwithstanding paragraph (b) of this subsection, a teacher
may use a minimal amount of the child's native language when
necessary to communicate with the child.
  (3) Subject to the exceptions provided in section 3 of this
2001 Act, school districts shall teach English to all children
enrolled in Oregon public schools by teaching the children in
English and placing all children in English language classrooms.
  (4) Children who are English learners shall be educated through
sheltered English immersion during a temporary transition period
not normally intended to exceed one year. School districts may
place in the same classroom English learners of different ages
with a similar degree of English proficiency. School districts
are encouraged to include in the same classroom English learners
from different native-language groups with the same degree of
English fluency.
  (5) If an English learner has acquired a good working knowledge
of English and is able to do regular school work in English, a
school district may not classify the child as an English learner
and shall transfer the child to an English language mainstream
classroom.
  (6) Notwithstanding subsections (1) to (5) of this section, a
school district may offer:
  (a) Foreign language classes for children who already know
English; and
 
  (b) Special education and related services to children with
disabilities who are English learners. + }
  SECTION 3.  { + (1) A school district may waive the
requirements of section 2 of this 2001 Act with the prior written
informed consent, to be provided annually, of the child's parent
or legal guardian as provided in this section.
  (2) Prior to giving the informed consent required by subsection
(1) of this section, a parent or legal guardian shall:
  (a) Personally visit the school to apply for the waiver;
  (b) During the personal visit be provided with a full
description of the educational materials to be used in the
different educational program choices and all the educational
opportunities available to the child; and
  (c) Be fully informed of the right to refuse to agree to a
waiver requested by a school district.
  (3) If a waiver has been granted, a school district shall
transfer the child to an alternative class that teaches English
and other subjects through bilingual education techniques or
other generally recognized educational methodologies.
  (4) School districts with individual schools in which 20 or
more students of a given grade level receive a waiver shall offer
an alternative class in the school. If an alternative class is
not offered in the school, a school district shall permit a
student to transfer to a public school where such a class is
offered.
  (5) The requirements of section 2 of this 2001 Act may be
waived for a child if a parent or guardian of a child applies to
the school district for a waiver or a school district requests a
waiver from a parent or guardian of a child under the following
circumstances:
  (a) The child already possesses good English language skills,
as measured by oral evaluation or standardized tests of English
vocabulary comprehension, reading and writing in which the child
scores approximately at or above the state average for the
child's grade level or at or above the fifth grade average,
whichever is lower;
  (b) The child is 10 years of age or older and the school
district determines that an alternative course of educational
study would be better suited to the child's overall educational
progress and rapid acquisition of basic English language skills;
or
  (c) The child already has been placed for a period of not fewer
than 30 calendar days during that school year in an English
language classroom and subsequently the school district
determines that the child has such special and individual
physical or psychological needs, above and beyond the child's
lack of English proficiency, that an alternative course of
educational study would be better suited to the child's overall
educational development and rapid acquisition of English. A
written description of no fewer than 250 words documenting these
special individual needs for the specific child must be provided
by the parent, guardian or school district. The written
description shall be permanently added to the child's school
records.
  (6) An application for a waiver under subsection (5)(c) of this
section shall contain the original authorizing signatures of both
the school principal and the school district superintendent.  Any
decision to issue a waiver under subsection (5)(c) of this
section shall be made subject to the examination and approval of
the school district superintendent under policies adopted by the
school district board pursuant to guidelines adopted by rule by
the State Board of Education. A school district may reject waiver
requests made under subsection (5)(c) of this section without
explanation. The existence of special individual needs does not
compel issuance of a waiver. + }
 
  SECTION 4.  { + (1) At least once each year, each school
district shall administer to all students enrolled in public
schools who are in grade two or higher in the district a
nationally recognized norm-referenced academic achievement test
that is given in English. The purpose of the test is to ensure
that the educational progress of all Oregon students in academic
subjects and in learning English is properly monitored.
  (2) A school district may exempt only students classified as
severely learning disabled from the test.
  (3) The Superintendent of Public Instruction shall select the
particular test to be used. It is intended that the test
generally shall remain the same from year to year.
  (4) The national percentile scores of students shall be
confidentially provided to individual parents, and the aggregated
percentile scores and distributional data for individual schools
and school districts shall be made available to the public on the
Internet. The scores for students classified as English learners
shall be separately sub-aggregated and also made available to the
public on the website.
  (5) Although administration of the test under this section is
required solely for monitoring educational progress, the
Department of Education and school districts may utilize the test
scores for other purposes. + }
  SECTION 5.  { + (1) A parent or legal guardian of a child
enrolled in a public school may bring a civil action against a
school district in a circuit court to enforce the requirements of
sections 1 to 4 of this 2001 Act. The court may grant injunctive
relief and compensatory damages in any action brought pursuant to
this section.
  (2) In addition to any action brought against a school district
under subsection (1) of this section, a parent or legal guardian
of a child enrolled in a public school may bring a civil action
against a school district board member or school employee for
compensatory damages if the board member or employee has
willfully not implemented sections 1 to 4 of this 2001 Act.
Notwithstanding ORS 30.260 to 30.300, a board member or employee
may not be indemnified for any assessed damages by any public
entity.
  (3) The court may award reasonable attorney fees and expert
witness fees to a prevailing plaintiff in an action under this
section. + }
  SECTION 6.  { + (1) Sections 1 to 5 of this 2001 Act become
operative on July 1, 2002.
  (2) Sections 1 to 5 of this 2001 Act first apply to the
2002-2003 school year. + }
  SECTION 7. ORS 329.860 is amended to read:
  329.860. (1) The Department of Education in consultation with
the Department of Community Colleges and Workforce Development
and the Education and Workforce Policy Advisor shall develop
models for school districts of alternative learning options that
may include Learning Centers designed to assist students who have
left school in obtaining the Certificate of Initial Mastery
through the use of teaching strategies, technology and curricula
that emphasize the latest research and best practice.
  (2) The Learning Centers may also provide for the integration
of existing local and community programs that provide any part of
the services needed to assist individuals in obtaining the
Certificate of Initial Mastery.
  (3) The centers may promote means of identifying, coordinating
and integrating existing resources and may include:
  (a) Child care services during school hours;
  (b) After-school child care;
  (c) Parental training;
  (d) Parent and child education;
  (e)   { - English as a second language - }  { +  Sheltered
English immersion program + } or bilingual services for
 { - limited proficiency students - }  { +  English learners
pursuant to sections 1 to 4 of this 2001 Act + };
  (f) Health services or referral to health services;
  (g) Housing assistance;
  (h) Employment counseling, training and placement;
  (i) Summer and part-time job development;
  (j) Drug and alcohol abuse counseling; and
  (k) Family crisis and mental health counseling.
  (4) Education service districts, school districts or schools,
or any combination thereof, may contact any eligible elementary
or secondary school student and the student's family if the
student has ceased to attend school to encourage the student's
enrollment in an education program that may include alternative
learning options. If the student or the family cannot be located,
the name and last-known address shall be reported to the school
nearest the address. The school shall attempt to determine if
that student or family is being provided services by this state
and shall seek to assist the student or family in any appropriate
manner.
  SECTION 8.  { + The amendments to ORS 329.860 by section 7 of
this 2001 Act become operative on July 1, 2002. + }
  SECTION 9. ORS 332.016 is amended to read:
  332.016.   { - No - }   { + (1) A + } person who is an employee
of a school district   { - shall be eligible to - }  { +  may
not + } serve as a member of the district school board for the
district by which the employee is employed.  { +
  (2) A person who has been found to have violated sections 1 to
4 of this 2001 Act in a civil action under section 5 of this 2001
Act may not serve as a member of a district school board for five
years after the date of the final judgment entered against the
person under section 5 of this 2001 Act. + }
  SECTION 10.  { + The amendments to ORS 332.016 by section 9 of
this 2001 Act become operative on July 1, 2002. + }
  SECTION 11. ORS 332.030 is amended to read:
  332.030. (1) The district school board shall declare the office
of a director vacant upon the happening of any of the following:
  (a) The death or resignation of the incumbent.
  (b) When an incumbent is removed from office or the election of
the incumbent thereto has been declared void by the judgment or
decree of any competent court.
  (c) Subject to the provisions of subsections (2) and (3) of
this section, when an incumbent ceases to be a resident of the
district or zone from which nominated.
  (d) When an incumbent ceases to discharge the duties of office
for two consecutive months unless prevented therefrom by sickness
or other unavoidable cause.
  (e) When an incumbent ceases to discharge the duties of office
for four consecutive months for any reason.
  (f) When an incumbent is recalled.
   { +  (g) When an incumbent has been found to have violated
sections 1 to 4 of this 2001 Act in a civil action under section
5 of this 2001 Act within the last five years. + }
  (2) A director of a union high school board who changes the
director's permanent residence from one component common school
district to another component common school district in which
another director resides shall continue to serve as director to
June 30 next following the next regular district election. At
that election, a successor shall be elected to serve the
remainder, if any, of the unexpired term to which the director
was elected. If the term to which the director was elected
expires June 30 next following the election of the successor, the
successor shall be elected to a full term. In either case, the
successor shall take office July 1 next following the election.
  (3) A director of a common school district nominated from a
zone who changes the director's permanent residence from one zone
to another zone in which another director resides shall continue
to serve as director to June 30 next following the next regular
district election. At that election, a successor shall be elected
to serve the remainder, if any, of the unexpired term to which
the director was elected. If the term to which the director was
elected expires June 30 next following the election of the
successor, the successor shall be elected to a full term. In
either case, the successor shall take office July 1 next
following the election.
  (4) When a vacancy is declared under subsection (1) of this
section, the remaining member or members of the board shall meet
and appoint a person to fill the vacancy. The person must satisfy
the eligibility requirements under ORS 332.018 and, if the
district is zoned, reside in the zone in which the vacancy
occurs.  A director appointed under this subsection shall serve
to June 30 next following the next regular district election. At
that election, a successor shall be elected to serve the
remainder, if any, of the unexpired term to which the director
was appointed. If the term to which the director was appointed
expires June 30 next following the election of the successor, the
successor shall be elected to a full term. In any case, the
successor shall take office July 1 next following the election.
  (5) If the offices of a majority of the directors of any
district are vacant at the same time, the education service
district board, or if there is none, the governing body of the
county shall appoint persons to fill the vacancies. The persons
must satisfy the eligibility requirements under ORS 332.018 and,
if the district is zoned, reside in the zones in which the
vacancies occur. If the vacancies occur in a joint district that
is not included in an education service district, the governing
body of the county containing the greater portion of the pupils
in average daily membership shall appoint the directors. Each
director appointed under this subsection shall serve to June 30
next following the next regular district election. At that
election, a successor shall be elected to serve the remainder, if
any, of the unexpired term to which the director was appointed.
If the term to which the director was appointed expires June 30
next following the election of the successor, the successor shall
be elected to a full term. In any case, the successor shall take
office July 1 next following the election.
  SECTION 12.  { + The amendments to ORS 332.030 by section 11 of
this 2001 Act become operative on July 1, 2002. + }
  SECTION 13. ORS 334.240 is amended to read:
  334.240. (1) 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.
  (3) The board of the education service district is authorized
to prepare and adopt a budget for its own expenses and for its
operational, administrative and resolution services expenses. The
board's own expenses include expenses for travel, for providing
the board with professional and clerical assistance, and for such
services, equipment and supplies as the board may require. The
board's budget may include amounts necessary to provide special
services and facilities authorized by ORS 334.175 (1) and (2),
and to support providing services and programs for children with
disabilities, for the talented and gifted or for   { - bilingual
or - } English   { - as a second language education - }  { +
learners + } as these programs are described in ORS
 { - 336.074, 336.079, - }  343.035, 343.397 and 343.830 { +  and
sections 1 to 4 of this 2001 Act + }.
  SECTION 14.  { + The amendments to ORS 334.240 by section 13 of
this 2001 Act become operative on July 1, 2002. + }
  SECTION 15. ORS 336.081 is amended to read:
  336.081. (1) All school districts providing courses pursuant to
 { - ORS 336.079 - }  { +  sections 1 to 4 of this 2001 Act + }
shall afford the licensed personnel of that district that are
assigned to perform teaching duties for such courses an
opportunity to qualify to assist   { - non-English-speaking
students - }  { +  English learners, as defined in section 2 of
this 2001 Act, + } to learn English at no cost to the personnel.
  (2) Nothing in this section prevents a district from employing
licensed personnel who are qualified to teach courses under
 { - ORS 336.079 - }  { +  sections 1 to 4 of this 2001 Act + }.
  SECTION 16.  { + The amendments to ORS 336.081 by section 15 of
this 2001 Act become operative on July 1, 2002. + }
  SECTION 17. ORS 342.175 is amended to read:
  342.175. (1) The Teacher Standards and Practices Commission may
suspend or revoke the license of a teacher or administrator,
discipline a teacher or administrator or suspend or revoke the
right of any person to apply for a license if the person has held
a license at any time within five years prior to issuance of the
notice of charges under ORS 342.176 based on the following:
  (a) Conviction of a crime not listed in ORS 342.143 (3);
  (b) Gross neglect of duty;
  (c) Any gross unfitness;
  (d) Conviction of a crime for violating any law of this or any
state or of the United States involving the illegal use, sale or
possession of controlled substances;
  (e) Any false statement knowingly made in an application for
issuance, renewal or reinstatement of a license; or
  (f) Failure to comply with any condition of reinstatement under
subsection (3) of this section or any condition of probation
under ORS 342.177 (3)(b).
  (2) Notwithstanding ORS 670.280, the commission shall revoke
any license or registration and shall revoke the right of any
person to apply for a license or registration if the person has
held a license or registration at any time within five years
prior to issuance of the notice of charges under ORS 342.176 when
the holder or person has been convicted of any crime described in
ORS 342.143 (3).  { +
  (3) The commission shall revoke any license or registration and
shall revoke the right of any person to apply for a license or
registration if the person has been found to have violated
sections 1 to 4 of this 2001 Act in a civil action under section
5 of this 2001 Act at any time within the five years prior to the
issuance of the notice of charges under ORS 342.176. + }
    { - (3) - }  { +  (4) + } Except for convictions for crimes
listed in ORS 342.143 (3) and subject to subsection   { - (4) - }
 { + (5) + } of this section, any person whose license or
registration has been suspended or revoked or whose privilege to
apply for a license or registration has been revoked may apply to
the commission for reinstatement of the license or registration
after one year from the date of the suspension or revocation { +
or, if the suspension or revocation is pursuant to subsection (3)
of this section, after five years from the date of a final
judgment under section 5 of this 2001 Act + }. The commission may
require an applicant for reinstatement to furnish evidence
satisfactory to the commission of good moral character, mental
and physical health and such other evidence as the commission may
consider necessary to establish the applicant's fitness. The
commission may impose a probationary period and such conditions
as it considers necessary upon approving an application for
reinstatement.
    { - (4) - }  { +  (5) + } The commission shall reconsider
immediately a license or registration suspension or revocation or
the situation of a person whose privilege to apply for a license
or registration has been revoked, upon application therefor, when
the license or registration suspension or revocation or the
privilege revocation is based on a criminal conviction that is
reversed on appeal.
    { - (5) - }  { +  (6) + } Violation of rules adopted by the
commission relating to competent and ethical performance of
professional duties shall be admissible as evidence of gross
neglect of duty or gross unfitness.
    { - (6) - }  { +  (7) + } A copy of the record of conviction,
certified to by the clerk of the court entering the conviction,
shall be conclusive evidence of a conviction described in this
section.
  SECTION 18.  { + The amendments to ORS 342.175 by section 17 of
this 2001 Act become operative on July 1, 2002. + }
  SECTION 19. ORS 327.013 is amended to read:
  327.013. The State School Fund distributions shall be computed
as follows:
  (1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw.
  (2) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum available for distribution of money.
  (3) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor.
  (4) Statewide Target per ADMw Grant = $4,500.
  (5) Teacher Experience Factor = $25 X {District average teacher
experience - statewide average teacher experience}.  ' Average
teacher experience' means the average, in years, of teaching
experience of certified teachers as reported to the Department of
Education.
  (6) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater.
  (7)(a) Weighted average daily membership or ADMw = average
daily membership + an additional amount computed as follows:
  (A) 1.0 for each student in average daily membership eligible
for special education as a child with disabilities under ORS
343.035, applicable to not to exceed 11 percent of the district's
ADM without review and approval of the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities as defined in ORS 169.005 or
adult regional correctional facilities as defined in ORS 169.620
shall not be included in the calculation of the 11 percent.
  (B) 0.5 for each student in average daily membership eligible
for and enrolled in   { - an English as a Second Language program
under ORS 336.079 - }  { +  a sheltered English immersion or
bilingual education program under sections 1 to 4 of this 2001
Act + }.
  (C) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
  (D) -0.1 for each student in average daily membership enrolled
in an elementary district operating kindergarten through grade 6
or kindergarten through grade 8 or in an area of a unified school
district where the district is only responsible for educating
students in kindergarten through grade 8.
  (E) 0.25 times the sum of the following:
  (i) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the federal Department of Education,
as adjusted by the school district's proportion of students in
the county receiving free or reduced price lunches under the
United States Department of Agriculture's current Income
Eligibility Guidelines if the number is higher than the number
determined from census data and only if the school district had
an average daily membership of 2,500 or less for the 1995-1996
school year, and as further adjusted by the number of students in
average daily membership in June of the year of distribution
divided by number of students in average daily membership in the
district, or its predecessors, in June 1990;
  (ii) The number of children in foster homes in the district as
determined by the report of the Department of Human Services to
the federal Department of Education, 'Annual Statistical Report
on Children in Foster Homes and Children in Families Receiving
AFDC Payments in Excess of the Poverty Income Level,' or its
successor, for October 31 of the year prior to the year of
distribution; and
  (iii) The number of children in the district in
state-recognized facilities for neglected and delinquent
children, based on information from the Department of Human
Services for October 31 of the year prior to the year of
distribution.
  (F)(i) An additional amount as determined by ORS 327.077 (1997
Edition) shall be added to the ADMw for each remote small school
in the district.
  (ii) An additional amount as determined by section 23, chapter
1066, Oregon Laws 1999, for each small high school in the
district that is equal to the small high school additional
weighting amount.
  (G) All numbers of children used for the computation in this
section must reflect any district consolidations that have
occurred since the numbers were compiled.
  (b) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of
students described in paragraph (a)(E) and (F) of this subsection
shall not exceed 2.0.
  (8) Transportation Grant = 70 percent of Approved
Transportation Costs.
  (9) Local Revenues are 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 the
Common School Fund under ORS 327.403 to 327.415;
  (d) The amount of revenue received by the district from the
county school fund;
  (e) The amount of revenue received by the district from the 25
percent of federal forest reserve revenues required to be
distributed to schools by ORS 294.060 (1);
  (f) The amount of revenue received by the district from state
managed forestlands under ORS 530.115 (1)(b) and (c);
  (g) The amount of revenue received under ORS 334.400 by a
school district in an education service district that provides
equalization under ORS 334.400;
  (h) Moneys received in lieu of property taxes;
  (i) Federal funds received without specific application by the
school district and which are not deemed under federal law to be
nonsupplantable; and
  (j) 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.
  (10) Notwithstanding subsection (9) of this section, Local
Revenues do not include:
 
  (a) The amount of revenue actually received by the district,
including penalties and interest on taxes, that is used for
payment of bonds issued to finance or refinance an unfunded
obligation for prior service costs under a contract of
integration pursuant to ORS 238.685 (2)(a); and
  (b) If a school district imposes local option taxes pursuant to
ORS 280.040 to 280.145, an amount equal to the lesser of:
  (A) The amount of revenue actually received by the district
from local option taxes imposed pursuant to ORS 280.040 to
280.145;
  (B) Ten percent of the combined total for the school district
of the general purpose grant, the transportation grant and the
facility grant of the district; or
  (C) $500 per district extended ADMw.
  (11)(a) Facility Grant = 8 percent of total construction costs
of new school buildings.
  (b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
  (c) As used in this subsection:
  (A) 'New school building' includes new school buildings, adding
structures onto existing school buildings and adding
premanufactured structures to a school district if those
buildings or structures are to be used for instructing students.
  (B) 'Construction costs' does not include costs for land
acquisition.
  SECTION 20.  { + The amendments to ORS 327.013 by section 19 of
this 2001 Act become operative July 1, 2002. + }
  SECTION 21.  { + The amendments to ORS 327.013 by section 19 of
this 2001 Act affect State School Fund distributions commencing
with the 2002-2003 distribution. + }
  SECTION 22. ORS 327.013, as amended by section 30, chapter
1066, Oregon Laws 1999, is amended to read:
  327.013. The State School Fund distributions shall be computed
as follows:
  (1) General Purpose Grant = Funding Percentage X Target Grant X
District extended ADMw.
  (2) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum available for distribution of money.
  (3) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor.
  (4) Statewide Target per ADMw Grant = $4,500.
  (5) Teacher Experience Factor = $25 X {District average teacher
experience - statewide average teacher experience}.  ' Average
teacher experience' means the average, in years, of teaching
experience of certified teachers as reported to the Department of
Education.
  (6) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater.
  (7)(a) Weighted average daily membership or ADMw = average
daily membership + an additional amount computed as follows:
  (A) 1.0 for each student in average daily membership eligible
for special education as a child with disabilities under ORS
343.035, applicable to not to exceed 11 percent of the district's
ADM without review and approval of the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities as defined in ORS 169.005 or
adult regional correctional facilities as defined in ORS 169.620
shall not be included in the calculation of the 11 percent.
  (B) 0.5 for each student in average daily membership eligible
for and enrolled in   { - an English as a Second Language program
under ORS 336.079 - }  { +  a sheltered English immersion or
bilingual education program under sections 1 to 4 of this 2001
Act + }.
  (C) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
  (D) -0.1 for each student in average daily membership enrolled
in an elementary district operating kindergarten through grade 6
or kindergarten through grade 8 or in an area of a unified school
district where the district is only responsible for educating
students in kindergarten through grade 8.
  (E) 0.25 times the sum of the following:
  (i) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the federal Department of Education,
as adjusted by the school district's proportion of students in
the county receiving free or reduced price lunches under the
United States Department of Agriculture's current Income
Eligibility Guidelines if the number is higher than the number
determined from census data and only if the school district had
an average daily membership of 2,500 or less for the 1995-1996
school year, and as further adjusted by the number of students in
average daily membership in June of the year of distribution
divided by number of students in average daily membership in the
district, or its predecessors, in June 1990;
  (ii) The number of children in foster homes in the district as
determined by the report of the Department of Human Services to
the federal Department of Education, 'Annual Statistical Report
on Children in Foster Homes and Children in Families Receiving
AFDC Payments in Excess of the Poverty Income Level,' or its
successor, for October 31 of the year prior to the year of
distribution; and
  (iii) The number of children in the district in
state-recognized facilities for neglected and delinquent
children, based on information from the Department of Human
Services for October 31 of the year prior to the year of
distribution.
  (F) An additional amount as determined by ORS 327.077 shall be
added to the ADMw for each remote small elementary school and for
each small high school in the district.
  (G) All numbers of children used for the computation in this
section must reflect any district consolidations that have
occurred since the numbers were compiled.
  (b) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of
students described in paragraph (a)(E) and (F) of this subsection
shall not exceed 2.0.
  (8) Transportation Grant = 70 percent of Approved
Transportation Costs.
  (9) Local Revenues are 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 the
Common School Fund under ORS 327.403 to 327.415;
  (d) The amount of revenue received by the district from the
county school fund;
  (e) The amount of revenue received by the district from the 25
percent of federal forest reserve revenues required to be
distributed to schools by ORS 294.060 (1);
  (f) The amount of revenue received by the district from state
managed forestlands under ORS 530.115 (1)(b) and (c);
  (g) The amount of revenue received under ORS 334.400 by a
school district in an education service district that provides
equalization under ORS 334.400;
  (h) Moneys received in lieu of property taxes;
 
 
  (i) Federal funds received without specific application by the
school district and which are not deemed under federal law to be
nonsupplantable; and
  (j) 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.
  (10) Notwithstanding subsection (9) of this section, Local
Revenues do not include:
  (a) The amount of revenue actually received by the district,
including penalties and interest on taxes, that is used for
payment of bonds issued to finance or refinance an unfunded
obligation for prior service costs under a contract of
integration pursuant to ORS 238.685 (2)(a); and
  (b) If a school district imposes local option taxes pursuant to
ORS 280.040 to 280.145, an amount equal to the lesser of:
  (A) The amount of revenue actually received by the district
from local option taxes imposed pursuant to ORS 280.040 to
280.145;
  (B) Ten percent of the combined total for the school district
of the general purpose grant, the transportation grant and the
facility grant of the district; or
  (C) $500 per district extended ADMw.
  (11)(a) Facility Grant = 8 percent of total construction costs
of new school buildings.
  (b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
  (c) As used in this subsection:
  (A) 'New school building' includes new school buildings, adding
structures onto existing school buildings and adding
premanufactured structures to a school district if those
buildings or structures are to be used for instructing students.
  (B) 'Construction costs' does not include costs for land
acquisition.
  SECTION 23.  { + The amendments to ORS 327.013 by section 22 of
this 2001 Act become operative July 1, 2005. + }
  SECTION 24.  { + The amendments to ORS 327.013 by section 22 of
this 2001 Act affect State School Fund distributions commencing
with the 2005-2006 distribution. + }
  SECTION 25.  { + ORS 336.074 and 336.079 are repealed on July
1, 2002. + }
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