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. + } ----------