68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session


                            Enrolled

                         Senate Bill 262

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


                     CHAPTER ................


                             AN ACT


Relating to education service districts; creating new provisions;
  amending ORS 255.335, 330.003, 334.020, 334.025, 334.032,
  334.035, 334.045, 334.090, 334.125, 334.175, 334.185, 334.195,
  334.215 and 334.240 and sections 25 and 31, chapter 784, Oregon
  Laws 1993; and repealing sections 22a, 24, 26, 27, 28, 29 and
  30, chapter 784, Oregon Laws 1993, and section 7, chapter __,
  Oregon Laws 1995 (Enrolled Senate Bill 174).

Be It Enacted by the People of the State of Oregon:

  **************************** SECTION 1. ORS 330.003 is amended
to read:
  330.003. For purposes of section 11f, Article XI, Oregon
Constitution:
  (1)(a) 'Merger' includes any alteration, annexation, merger,
consolidation, lengthening the course of study or other change
under ORS 330.090 to 330.107, 335.490 to 335.505, ORS chapter
333, and in the case of education service districts to which ORS
334.350 to 334.400 apply, ORS 334.710 to 334.770.
  (b) 'Merger' includes only those proceedings in which the
entire territory of an involved school district is merged. If the
entire territory of a school district is merged with more than
one other district, the tax base amount determined under section
11f, Article XI, Oregon Constitution, shall be apportioned on the
basis of the assessed valuation on the last roll certified as
required in ORS 311.105 and delivered to the tax collector
pursuant to ORS 311.115.
    { - (c) 'Merger' includes education service districts subject
to merger under section 25, chapter 784, Oregon Laws 1993. - }
  (2) 'School district' means a taxing district providing public
elementary or secondary education, or any combination thereof,
within this state, and specifically includes a component school
district of an education service district that levies taxes for
its component school districts and the education service district
itself. 'School district'   { - also includes - }   { + does not
include + } any other education service district.
  **************************** SECTION 2. Section 25, chapter
784, Oregon Laws 1993, is amended to read:
   { +  Sec. 25. + } (1) On or before March 31, 1996, the State
Board of Education shall enter orders   { - merging the
component - }   { + designating the 21 + } education service
districts listed in ORS 334.020   { - into the education service
district - }  for each region and shall specify the effective



date of the orders.  { + The board may specify for region 19 a
different effective date for Wheeler County than for the other
counties in the region. + } However, if any of the education
service districts described in ORS 334.020 have   { - merged - }
 { + formed by annexation + } prior to   { - the effective date
of this Act - }   { + November 4, 1993 + }, the
 { + surviving + } district   { - formed by the merger - }  may
exercise powers granted in   { - this Act after the effective
date of this Act - }  { +  chapter 784, Oregon Laws 1993, after
November 4, 1993 + }. No remonstrance shall be allowed to affect
the orders.
   { +  (2) For regions that contain more territory than a single
education service district prior to the state board's order under
subsection (1) of this section, the board shall name the
surviving education service district in the board's order. The
board's order shall constitute an annexation under section 11
(4)(b), Article XI of the Oregon Constitution by the surviving
district of all of the area in the region that lies outside the
surviving district.
  (3) For regions that contain only a single education service
district prior to the state board's order under subsection (1) of
this section, the board's order shall constitute a continuation
of the existing education service district, and the district's
tax base shall be determined under section 11 (2), Article XI of
the Oregon Constitution.
  (4) During the first fiscal year following the issuance of the
state board's order concerning an education service district
described under subsection (2) of this section, the taxing
authority of the district, except as to taxes permitted under
section 11 (3), Article XI of the Oregon Constitution, shall be
limited to the lesser of the following:
  (a) The amount determined under section 11 (4)(b), Article XI
of the Oregon Constitution; or
  (b) The sum of the tax base amounts for each of the education
service districts lying within the region, as otherwise
determined under section 11 (2), Article XI of the Oregon
Constitution.
  (5) After the first fiscal year following issuance of the state
board's orders, the tax bases of the education service districts
shall be determined under section 11 (2), Article XI of the
Oregon Constitution.
  (6) Although the regional education service districts are not
new districts for purposes of section 11, Article XI of the
Oregon Constitution, the state board may give the education
service district a new name and the affected county assessors may
give the education service district a new number that has not
previously been used. + }
    { - (2) The state board shall give the education service
district formed by the merger a new name and the affected county
assessors shall give the education service district a new number
that has not previously been used. - }
    { - (3) The education service district formed by the merger
shall become identified with the newly named education service
district and the former districts shall not use their former
names. - }
    { - (4) - }   { + (7) + } The employees of   { - the
component - }  education service districts  { + that are annexed
by a surviving education service district + }   { - of the
education service district formed by the merger - } shall be
considered to be employees of the  { + surviving + } district


Enrolled Senate Bill 262                                   Page 2



  { - formed by the merger - } , which shall succeed the other
districts
  { - in the merger - }  as a party to their respective contracts
of employment.
    { - (5) - }   { + (8) + } All real and personal property
belonging to   { - the component - }  education service districts
 { - within the education service district formed by the
merger - }   { + that are annexed by a surviving education
service district + } shall become the property of
  { - that - }  { +  the surviving + } district.
    { - (6) - }   { + (9) + } The order of the state board shall
include provisions for the liability of any outstanding bonded
indebtedness to be spread over the entire area of the education
service district   { - formed by the merger - } .
   { +  (10) Education service districts described under
subsection (2) of this section shall, for the purposes of
administration and operation, continue to operate separately
until the end of the fiscal year in which the annexations are
effective.
  (11) During the period following the order of the state board
under subsection (1) of this section and prior to the date when
the annexation takes effect, the board of the surviving education
service district may take such action as is necessary in order
that the district may carry out its required functions when the
annexation takes effect, including the preparation and adoption
of a budget for the district and the referral of questions
relating to the budget to the electors of the district. + }
  **************************** SECTION 3. Section 31, chapter
784, Oregon Laws 1993, is amended to read:
   { +  Sec. 31. + } (1) Notwithstanding the dates specified in
section
  { - 24 or 25 of this Act - }  { +  25, chapter 784, Oregon Laws
1993 + }, electors shall be entitled to vote in any elections
affecting the education service district in which they will
reside when the   { - mergers and - } annexations authorized by
 { - this Act - }   { + chapter 784, Oregon Laws 1993, + } take
effect, including voting for candidates to serve on the education
service district board and on tax measures after the effective
dates in section   { - 24 or 25 of this Act - }   { + 25, chapter
784, Oregon Laws 1993 + }, if the electors are eligible to vote
in the district in which the electors reside prior to the
effective date of the order.
  (2) Notwithstanding ORS 334.090, eligible electors as described
in subsection (1) of this section shall be eligible to be
candidates for the education service district board to serve
thereon and to serve on the budget committee if the electors are
eligible to be board candidates or budget committee members in
the district in which the electors reside prior to the applicable
effective date of the order.
    { - (3) Notwithstanding subsections (1) and (2) of this
section, an elector shall not be eligible to vote after a
boundary change under this Act when the election is held on a
date occurring between: - }
    { - (a) The 90th day before the primary or general election
and the date of the election; or - }
    { - (b) The deadline for filing the notice of election before
any other election and the date of the election. - }
  **************************** SECTION 4.  { + (1) In each of the
education service districts created by an order under section 25
(2), chapter 784, Oregon Laws 1993:


Enrolled Senate Bill 262                                   Page 3



  (a) The board of directors of the surviving district shall
continue as the board of the education service district until
June 30, 1997, when the terms of all of the directors shall
expire.
  (b) The terms of directors in districts located in areas
annexed to the surviving district shall expire upon the effective
date of the annexation.
  (c) The district election authority shall place on the ballot
at the regular district election held in March 1997, the director
positions necessary to replace those directors whose terms expire
under paragraph (a) of this subsection. Directors shall take
office on July 1, 1997.
  (d) Candidates for the election held under paragraph (c) of
this subsection shall be nominated as provided under ORS 334.035.
  (e) For education service districts with a population of
550,000 or more, according to the latest federal census, the
minority of directors shall serve terms expiring June 30 next
following the first regular district election after the directors
take office, and the majority of directors shall serve terms
expiring June 30 next following the second regular district
election after the directors take office.
  (f) For education service districts with a population of less
than 550,000, according to the latest federal census:
  (A) Two, three or four directors shall serve terms expiring
June 30 next following the fourth regular district election after
the directors take office.
  (B) Two or three directors shall serve a term expiring June 30
next following the third regular district election after the
directors take office. + }
   { +  (C) Two directors shall serve terms expiring June 30 next
following the second regular district election after the
directors take office.
  (D) One or two directors shall serve terms expiring June 30
next following the first regular district election after the
directors take office. + }  { +
  (2) Directors elected under this section shall determine by lot
the length of term each shall hold office. + }
  **************************** SECTION 4a.  { + If Senate Bill
174 becomes law, section 4 of this Act is repealed and section 4b
of this Act is enacted in lieu thereof. + }
  **************************** SECTION 4b.  { + (1) In each of
the education service districts created by an order under section
25 (2), chapter 784, Oregon Laws 1993:
  (a) The board of directors of the surviving district shall
continue as the board of the education service district until
June 30, 1997, when the terms of all of the directors shall
expire.
  (b) The terms of directors in districts located in areas
annexed to the surviving district shall expire upon the effective
date of the annexation.
  (c) The district election authority shall place on the ballot
at the regular district election held in March 1997 the director
positions necessary to replace those directors whose terms expire
under paragraph (a) of this subsection. Directors shall take
office on July 1, 1997.
  (d) Candidates for the election held under paragraph (c) of
this subsection shall be nominated as provided under ORS 334.035.
  (e) The minority of directors shall serve terms expiring June
30 next following the first regular district election after the
directors take office, and the majority of directors shall serve


Enrolled Senate Bill 262                                   Page 4



terms expiring June 30 next following the second regular district
election after the directors take office.
  (2) Directors elected under this section shall determine by lot
the length of term each shall hold office. + }
  **************************** SECTION 5. ORS 255.335 is amended
to read:
  255.335. (1) The regular district election shall be held by
each district, that is not a school district, for the purpose of
electing members of the district board to succeed a member whose
term expires the following June 30 and to elect members to fill
any vacancy which then may exist. The election shall be held in
each such district in each odd-numbered year on the fourth
Tuesday in March.
  (2) Each school district not described in subsection (3) of
this section shall hold the regular district election annually on
the fourth Tuesday in March. A district shall not conduct more
than one election of board members in any year.
  (3) A school district having a population of 300,000 or more
 { +  and an education service district having a population of
550,000 or more + }, according to the latest federal
 { - decennial - }  census, shall hold the regular district
election in each odd-numbered year on the fourth Tuesday in
March.
  (4) The first regular district election in a district shall be
held on the regular district election date next following the
year in which the first members of the district board were
elected or appointed.
  (5) The term of a board member elected at the regular district
election shall commence on the first day of July next following
the election, and shall expire June 30 next following the regular
district election at which a successor is elected.
  (6) Each district board shall hold a regular organizational
meeting following the regular district election and not later
than the last day of July of that year.
  **************************** SECTION 5a.  { + If Senate Bill
174 becomes law, section 5 of this Act (amending ORS 255.335) is
repealed. + }
  **************************** SECTION 6. ORS 334.020 is amended
to read:
  334.020. (1) On and after the effective date of the order
entered under section 25, chapter 784, Oregon Laws 1993, except
as the boundaries of an education service district may be changed
by merger under ORS 334.710 to 334.770 or other provision of law,
the education service districts are as follows:
  (a) Region 1. Clatsop, Columbia, Tillamook and Washington
Counties.
  (b) Region 2. Multnomah County.
  (c) Region 3. Marion   { - County - }  { +  and Polk
Counties + }.
  (d) Region 4. Lincoln, Linn and Benton Counties.
  (e) Region 5. Lane County.
  (f) Region 6. Douglas County.
  (g) Region 7. Coos and Curry Counties and the area lying within
the Reedsport School District.
  (h) Region 8. Jackson { + , + }   { - and - }  Josephine { +
and Klamath + } Counties.
  (i) Region 9. Hood River  { - , - }   { + and + } Wasco  { - ,
Sherman, Gilliam and Wheeler - }  Counties.
    { - (j) Region 10. Crook, Deschutes and Jefferson Counties
and the area comprising the Warm Springs Reservation. - }


Enrolled Senate Bill 262                                   Page 5



   { +  (j) Region 10. Crook and Deschutes Counties. + }
  (k) Region 11. Lake County.
  (L) Region 12. Umatilla and Morrow Counties.
  (m) Region 13. Union  { - , - }  { +  and + } Baker   { - and
Grant - }  Counties.
  (n) Region 14. Malheur County and the area comprising the
Huntington School District.
  (o) Region 15. Clackamas County.
  (p) Region 16.   { - Polk and - }  Yamhill   { - Counties - }
 { +  County + }.
  (q) Region 17. Harney County.
  (r) Region 18. Wallowa County.
   { +  (s) Region 19. Sherman, Gilliam and Wheeler Counties. + }
   { +  (t) Region 20. Grant County.
  (u) Region 21. Jefferson County and the area comprising the
Warm Springs Reservation. + }
  (2) Where a boundary change or formation of a   { - common
school or union high - }  { +  component + } school district
results in a joint school district, the joint school district
shall be included in the education service district in which the
joint district's administrative office is located.
  **************************** SECTION 7. ORS 334.025 is amended
to read:
  334.025. (1) The board of directors of an education service
district shall consist of seven { + , nine or 11 + } members.
  (2) In education service districts,   { - not more than five
and - } not less than   { - two - }   { + five + } of the
 { - seven - }  directors shall be elected, one from each of the
zones established under ORS 334.032  { - , and at least two shall
be elected from the district at large - } . { +  At the
discretion of the board of directors, one or two board members
may be elected from the district at large. + }
  (3) The board shall appoint two additional members as nonvoting
advisory members, one to represent employment training agencies
and the other to represent social service agencies in the area
served by the district. The advisory members shall be appointed
to two-year terms and may be reappointed.
  (4)   { - The board may, and - }  On the petition of
 { - any - }  two component school districts { + , the board + }
shall  { - , - }  establish local advisory committees to
represent the interests of areas within the
  { - district - }  { +  petitioning districts + }. The local
 { + advisory + } committees shall advise the board on matters of
 { - areawide - }  concern { +  within the advisory committee's
area + }.   { - The board shall not appoint a local advisory
committee to represent an area already represented by one common
or union high school board but shall encourage committees to
represent more than one school district. - }  { +  Local advisory
committees shall represent two or more component school
districts.
  (5) 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 election officer under ORS
255.069, and the board's resolution shall have no effect on the
terms of any current board members. + }
  **************************** SECTION 8. ORS 334.032 is amended
to read:
  334.032. (1) The board of directors of the education service
district shall divide each education service district into not


Enrolled Senate Bill 262                                   Page 6



more than   { - five - }   { + 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.
  (2) The board may readjust the boundaries of such zones once
each year and shall readjust the boundaries of the zones
immediately upon any change of the boundaries of the education
service district.
  **************************** SECTION 9. ORS 334.035 is amended
to read:
  334.035. (1) In education service districts having a population
of less than 550,000 according to the latest federal census, a
candidate for the district board shall be nominated in accordance
with ORS 255.235 except as provided in this section.  When a
candidate is nominated from a zone by a nominating petition, the
nominating petition must be signed by electors registered in the
zone in which the candidate is a resident and who are qualified
to vote in their respective   { - common - }   { + component + }
school districts. When a candidate is nominated at large by a
nominating petition, the nominating petition must be signed by
electors of the district. A candidate for education service
district board member must be qualified to vote in the election
in which the individual is a candidate.
  (2) In education service districts having a population of
550,000 or more according to the latest federal census, the name
of any qualified person nominated as provided by ORS 255.235
shall be placed on the ballot as a candidate for the office of
director of the education service district.
  **************************** SECTION 10. ORS 334.045 is amended
to read:
  334.045. (1) In education service districts having a population
of less than 550,000 according to the latest federal census,
members of the board shall be elected at the time of the regular
school election for the term commencing July 1 as provided in ORS
334.090. For this purpose, a district election shall be held in
such districts in those zones from which a member or members of
the board are to be elected, and in the district as a whole
 { - when - }   { + if + } a member or members at large are to be
elected.
  (2) In any education service district which has a population of
550,000 or more according to the latest federal census, members
of the board shall be elected at the regular biennial election
for the term commencing July 1 as provided in ORS 334.090. The
registrar of elections of the county in which such district is
located shall be the election officer for such elections.
  (3) The education service district shall pay the actual cost of
printing ballots and tally sheets for each election under
subsection (2) of this section, and the cost of checking
signatures on certificates of nomination, together with such
proportionate part of the general expenses of such election as
provided in ORS 255.305.
  (4) All elections of members of the board shall be held as
provided in ORS chapter 255.
  **************************** SECTION 10a.  { + If Senate Bill
174 becomes law, section 10 of this Act (amending ORS 334.045) is
repealed and ORS 334.045, as amended by section 5, chapter __,
Oregon Laws 1995 (Enrolled Senate Bill 174), is further amended
to read: + }



Enrolled Senate Bill 262                                   Page 7



  334.045. (1) In education service districts, members of the
board shall be elected at the time of the regular district
election described in ORS 255.335 for the term commencing July 1
as provided in ORS 334.090. For this purpose, a district election
shall be held in such districts in those zones from which a
member or members of the board are to be elected, and in the
district as a whole   { - when - }  { +  if + } a member or
members at large are to be elected.  The registrar of elections
of the county in which such district is located shall be the
election officer for such elections.
  (2) The education service district shall pay the actual cost of
printing ballots and tally sheets for each election under this
section, and the cost of checking signatures on certificates of
nomination, together with such proportionate part of the general
expenses of such election as provided in ORS 255.305.
  (3) All elections of members of the board shall be held as
provided in ORS chapter 255.
  **************************** SECTION 11. ORS 334.090 is amended
to read:
  334.090. (1) The term of office of director of an education
service district shall be four years.
  (2) The term of office of each director of an education service
district shall begin on July 1 next following the date of
election. A director shall serve until June 30 next following the
election of a successor.
  (3) A director of an education service district must qualify by
taking an oath of office before assuming the duties of office.
  (4) A newly appointed director of an education service district
shall take office at the meeting of the education service
district board next following the appointment.
  (5) A person is not eligible to serve as a director of an
education service district unless the person is an elector of the
district and has resided therein for a period of one year
immediately preceding the election or appointment.
  (6) No employee of an education service district is eligible to
serve as a director of the education service district by which
the employee is employed.
  (7) A regular district election shall be held in a district to
fill any vacancy and to elect a successor for any director whose
term expires June 30 next following the election. A successor
shall be elected as follows:
  (a) If the director was elected from a zone established under
ORS 334.032, a successor from the same zone shall be elected by
the electors of the zone.
  (b) If the director was elected at large a successor shall be
elected at large by the electors of the district.
  (8) Notwithstanding subsection (7) of this section, in any
district having a population of 550,000 or more according to the
latest federal census that becomes zoned according to ORS
334.032, the board shall determine prior to the nomination of
school directors which positions shall be from zones and which
positions shall be at large.
  (9) Any vacancy on the board from any zone shall be filled by
the remaining directors from among the qualified persons in that
zone. Any such vacancy from the district at large shall be filled
by the remaining directors from among the qualified persons in
the district. However, if vacancies occur in a majority of the
positions on the board, the   { - governing body of the county in
which the administrative office of the district is located - }
 { + State Board of Education + } shall fill the vacancies from


Enrolled Senate Bill 262                                   Page 8



among the qualified persons of the zones, if any, or from among
other persons who are qualified to serve. The period of service
of an appointee under this subsection expires June 30 next
following the next regular district election at which a successor
is elected. The successor shall be elected to serve the
remainder, if any, of the term for which the appointment was
made. If the term for which the appointment was made expires June
30 after 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.
  **************************** SECTION 12. 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) Curriculum improvement;
  (f) Special education programs; and
  (g) Contracting a bonded indebtedness in the manner that
  { - common and union high - }   { + component + } school
districts are authorized to issue bonds under ORS 328.205 to
328.295 and other laws applicable to the issuance of bonds by
school districts.
  (4) In addition to its duties under subsection (3) of this
section and duties arising under ORS 334.175, in cooperation with
the school districts   { - and working, as appropriate, with
county governments, health care agencies, social service
organizations and employment training agencies, and according to
criteria developed by the state board, - }  the board may:
  (a) Plan for the provision and delivery of education;
  (b) Provide   { - curriculum improvement and - }  staff
development;
  (c) Conduct assessment, evaluation and research;
  (d) Plan and provide for new learning environments;
  (e) Plan and provide for educational communication and
distribution services, including telecommunications systems; and
  (f) Collaborate in jointly planning for the delivery of health
care, employment training and social services in the region.
  (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


Enrolled Senate Bill 262                                   Page 9



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 13. ORS 334.175 is amended
to read:
  334.175. (1) The education service district or a combination of
education service districts or a school district or other public
or private entity under contract with an education service
district or districts may provide services and facilities,
including but not limited to central purchasing, library,
curriculum material, special teachers and special programs
including but not limited to teachers and programs under ORS
chapter 343 and any other relevant services to all school
districts which are a part of the education service district or
districts. If the education service district owns a planetarium,
the district may promote public events and may sell tickets for
public events at the planetarium.
  (2) The extent and nature of such facilities and services must
be:
  (a) Agreed upon on or before March 1 by resolution of
two-thirds of the   { - common and union high - }
 { + component + } school districts which are a part of the
education service district or districts and which have at least a
majority of the pupils included in the average daily membership
of the education service district or districts, as determined by
the reports of such school districts for the preceding year,
enrolled in the schools of the districts; and
  (b) Within the authority of the interested districts.


Enrolled Senate Bill 262                                  Page 10



  (3) Notwithstanding subsection (2) of this section, the
education service district or a school district or other public
or private entity under contract with an education service
district may provide facilities and services of the type
specified in subsection (1) of this section by agreement and on a
reimbursable basis to any school district or combination thereof
within the education service district.
  (4) Subject to subsections (1) and (2) of this section and ORS
334.185, the education service district may establish or
participate in all programs under ORS chapter 343.
  **************************** SECTION 14. ORS 334.185 is amended
to read:
  334.185. (1) Facilities and services authorized under ORS
334.175 (1) may be provided to   { - common and union high - }
 { +  component + } school districts which are not a part of the
education service district or districts by agreement on a
reimbursable basis.  However, the pupils residing in such
districts shall not be included in the computation of the
percentage required by ORS 334.175 (2)(a). The facilities and
services may also be provided to other public or private entities
by agreement or on a reimbursable basis.
  (2) Expenditures by the education service district board for
special services and facilities provided on a reimbursable basis
under this section shall be limited to the moneys received for
the purpose specified and are not subject to the Local Budget Law
(ORS 294.305 to 294.520, 294.555 and 294.565).
  (3) Budget estimates of expenditures for special services and
facilities provided under this section must show the estimates of
moneys receivable and must be shown as offsetting revenue items.
  **************************** SECTION 15. ORS 334.195 is amended
to read:
  334.195. The education service district serving an area where
the Juvenile Corrections Education Program has students enrolled
may provide services to such students by contract to the same
extent as it serves students enrolled in a component   { - common
or union high - }  school district under ORS 334.175 (1).
However, the program shall not be considered a component district
and the students enrolled in the program shall not be counted in
determining the number of pupils in average daily membership for
purposes of ORS 334.175 (2)(a). However, if at any time state
funds are distributed to an education service district on a per
student or other basis, students enrolled in the Juvenile
Corrections Education Program located in the district shall be
considered residents of the district for purposes of the
distribution pursuant to rules of the State Board of Education.
  **************************** SECTION 15a.  { + If House Bill
3177 becomes law, section 15 of this Act (amending ORS 334.195)
is repealed. + }
  **************************** SECTION 16. ORS 334.215 is amended
to read:
  334.215. (1) An education service district board may accept
gifts and bequests of money for the establishment and conduct of
child guidance clinics and for any other purpose consistent with
the powers and duties of the district.
  (2) The board shall deposit any such money received in a
special fund   { - with the county treasurer - }  and the money
shall be expended under the direction of the board for the
purposes for which it was donated.
  **************************** SECTION 17. ORS 334.240 is amended
to read:


Enrolled Senate Bill 262                                  Page 11



  334.240. (1) The education service district board shall be
subject in all respects to the Local Budget Law (ORS 294.305 to
294.520, 294.555 and 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   { - common school and union high - }   { + component + }
school district boards within the education service district.
  (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   { - or representatives - }  of the
component   { - district - }  school  { + district + }
boards. { +   + }  { +  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 as these programs are
described in ORS 336.074, 336.079, 343.035, 343.397 and 343.830.
  **************************** SECTION 18.  { + If Senate Bill
174 becomes law, section 7, chapter __, Oregon Laws 1995
(Enrolled Senate Bill 174) (amending section 28, chapter 784,
Oregon Laws 1993), is repealed. + }
  **************************** SECTION 19.  { + Section 20 of
this Act is added to and made a part of ORS chapter 334. + }
  **************************** SECTION 20.  { + For purposes of
this chapter:
  (1) 'Component school district' means a common school district
or a union high school district located within the territory of
an education service district.
  (2) '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 21.  { + Section 22 of
this Act is added to and made a part of ORS 330.090 to 330.107.
  **************************** SECTION 22. + }  { + (1) A
district boundary board shall approve a request or petition for a
minor boundary change involving only the Sherwood and
Tigard-Tualatin School Districts in Washington County when:
  (a) A majority of the electors residing in the affected area
petition the district boundary board to make the change;
  (b) No student in the affected area lives more than one mile
from an existing boundary between the affected school districts;
  (c) The nearest school for the students in the affected area is
located in the school district into which the affected area will
be transferred; and
  (d) The school board of the school district into which the
affected area will be transferred approves the minor boundary
change.
  (2) Notwithstanding ORS 330.101, for any minor boundary change
for a school district approved as required by this section, no
remonstrance petition or election shall be allowed.



Enrolled Senate Bill 262                                  Page 12



  (3) Property transferred from one school district to another
school district as a result of a minor boundary change approved
under this section is subject to ORS 328.555.
  (4) A minor boundary change approved under this section shall
take effect as provided in ORS 330.103.
  (5) As used in this section:
  (a) 'Affected area' means the territory proposed to be moved
from one school district to another school district in a request
or petition for a minor boundary change.
  (b) 'Minor boundary change' means a school district boundary
change that:
  (A) Involves no more than two school districts;
  (B) Involves only one education service district;
  (C) Does not include in the affected area any real property
owned or leased by the school district that currently serves the
affected area;
  (D) Does not include any industrial property in the affected
area; and
  (E) Involves an affected area that is not larger than 350 acres
and that represents not more than five percent of the total real
market value of all real property within the school district that
currently serves the affected area. + }
  **************************** SECTION 23.  { + Section 22 of
this Act is repealed on January 1, 2000. + }
  **************************** SECTION 24.  { + Sections 22a, 24,
26, 27, 28, 29 and 30, chapter 784, Oregon Laws 1993, are
repealed. + }
                         ----------


Passed by Senate April 28, 1995

Repassed by Senate June 5, 1995


      ...........................................................
                                              Secretary of Senate

      ...........................................................
                                              President of Senate

Passed by House May 25, 1995

Repassed by House June 7, 1995


      ...........................................................
                                                 Speaker of House














Enrolled Senate Bill 262                                  Page 13





Received by Governor:

......M.,............., 1995

Approved:

......M.,............., 1995


      ...........................................................
                                                         Governor

Filed by Office of Secretary of State:

......M.,............., 1995


      ...........................................................
                                               Secretary of State









































Enrolled Senate Bill 262                                  Page 14