69th OREGON LEGISLATIVE ASSEMBLY--1997 Regular Session


                            Enrolled

                         Senate Bill 880

Sponsored by Senators DERFLER, FERRIOLI; Senator BRYANT


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


                             AN ACT


Relating to successful schools; creating new provisions; amending
  ORS 239.223, 329.575, 329.585, 329.595, 329.600, 332.505,
  342.175, 342.513, 342.805, 342.815, 342.845, 342.850, 342.865,
  342.875, 342.895, 342.905, 342.910, 342.930 and 342.934;
  repealing ORS 342.915; and declaring an emergency.
  Whereas the people of this state have a fundamental interest in
public schools and the education of children and youth, the
public schools must be cost-effective and accountable for
standards and performance; and
  Whereas ORS chapter 329 establishes goals and implements
strategies for the upgrading of performance levels in Oregon's
kindergarten through grade 12 public schools to prepare students
for their role as citizens in a free and democratic society, and
for their entry into the world labor markets and the
high-technology, high-skill workplaces of the 21st century; and
  Whereas the standards-based school system of the 21st century
must be led by educators, including classroom teachers, who are
recognized and rewarded for their dedication to students, their
ability to help students learn and develop, their innovation,
initiative, teamwork skills and ethical and social leadership. To
fulfill these requirements, school districts need to attract and
retain capable and productive teachers; and
  Whereas the purposes of this Act are to foster flexibility in
personnel practices at the local level, encourage practices that
are based on skill and ability and establish a system of
site-based performance incentives for determining successful
schools by measuring standards of student improvement; now,
therefore,

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

  SECTION 1.  { + It shall be the policy of the State of Oregon
to promote and encourage successful and innovative schools.
Success shall be determined by establishing standards of
improvement in student learning and measuring each school's
performance in meeting those standards. Schools that meet those
standards will be rewarded with additional tools to further
improve student learning. + }
  SECTION 2.  { + (1) The State Board of Education shall
establish a system of determining successful schools and
dispensing appropriate incentive rewards to those schools. The
system shall be based on a school being the measurement unit to
determine success. School success shall be determined by



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measuring a school's improvement over a specific assessment
period. The successful schools program shall be voluntary.
  (2) A school may submit an application to the Department of
Education for the successful schools program. The application
shall include a short statement from the school requesting
consideration for the successful schools program. The application
shall also include a copy of the school improvement plan
implemented pursuant to ORS 329.095.
  (3) A school may not amend its application after the
application is submitted without approval by the state board. A
school that has submitted an application may not submit a new
application until the assessment period has ended, unless the
school withdraws the previous application.
  (4) The department shall distribute incentive rewards to
schools that are determined to be successful schools. The board
shall establish criteria for determining successful schools. The
criteria shall include, but not be limited to:
  (a) The results from the statewide assessment system developed
pursuant to ORS 329.485;
  (b) The achievement of measurable academic goals from school
improvement plans; and
  (c) Other criteria relating to improvement in student learning.
  (5) The department shall base the amount of the reward to each
successful school on the number of teachers employed by the
school. The minimum reward for each full-time teacher shall be
$1,000. Part-time teachers shall receive a percentage of the
reward based on the amount of time the part-time teacher worked.
Teachers hired during the assessment period shall receive a
percentage of the reward based on the length of time the teacher
worked at the school during the assessment period.
  (6) Each teacher shall individually decide how to use the
reward. A reward shall be used by a teacher for classroom
enhancements or professional development. As used in this
subsection, 'classroom enhancements' means items and activities
that will improve student learning, including, but not limited
to, books, instructional materials, multimedia equipment and
software, supplies and field trips.
  (7) The State Board of Education shall adopt any rules
necessary to implement the successful schools program. + }
  SECTION 3.  { + Prior to October 1, 1998, the Department of
Education shall report on the implementation of sections 1 and 2
of this Act to the appropriate legislative interim committees on
education. The report shall include:
  (1) The rules adopted by the State Board of Education to
implement the successful schools program;
  (2) A recommendation on the source of funding for the
successful schools program; and
  (3) A recommendation on the amount of funding required for the
successful schools program. + }
  SECTION 4. ORS 342.815 is amended to read:
  342.815. As used in ORS 342.805 to 342.934 unless the context
requires otherwise:
  (1) Notwithstanding ORS 342.120, 'administrator' includes any
teacher the majority of whose employed time is devoted to service
as a supervisor, principal, vice principal or director of a
department or the equivalent in a fair dismissal district but
shall not include the superintendent, deputy superintendent or
assistant superintendent of any such district or any substitute
or temporary teacher employed by such a district.



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  (2) 'Board' means the board of directors of a fair dismissal
school district.
   { +  (3) 'Contract teacher' means any teacher who has been
regularly employed by a school district for a probationary period
of three successive school years, and who has been retained for
the next succeeding school year. The district school board may
enter into agreements that provide for a shorter probationary
period of not less than one year for teachers who have satisfied
the three-year probationary period in another Oregon school
district. + }
    { - (3) - }   { + (4) + } 'District superintendent' means the
superintendent of schools of a fair dismissal district or, in the
absence of the superintendent, the person designated to fulfill
the superintendent's functions.
    { - (4) - }   { + (5) + } 'Fair dismissal district' means any
common or union high school district or education service
district.
    { - (5) 'Permanent teacher' means any teacher who has been
regularly employed by a fair dismissal district for a period of
not less than three successive school years and who has been
reelected by the district after the completion of such three-year
period for the next succeeding school year. - }
  (6) 'Probationary teacher' means any teacher employed by a fair
dismissal district who is not a   { - permanent - }
 { + contract + } teacher.
   { +  (7) 'Program of assistance for improvement' means a
written plan for a contract teacher that with reasonable
specificity:
  (a) Helps teachers adapt and improve to meet changing demands
of the Oregon Educational Act for the 21st Century in ORS chapter
329 if applicable.
  (b) Identifies specific deficiencies in the contract teacher's
conduct or performance.
  (c) Sets forth corrective steps the contract teacher may pursue
to overcome or correct the deficiencies.
  (d) Establishes the assessment techniques by which the district
will measure and determine whether the teacher has sufficiently
corrected the deficiencies to meet district standards. + }
    { - (7) - }  { +  (8) + } 'Substitute teacher' means any
teacher who is employed to take the place of a probationary or
 { - permanent - }  { + contract + } teacher who is temporarily
absent.
    { - (8) - }  { +  (9) + } Notwithstanding ORS 342.120,
'teacher' means any person who holds a teacher's license as
provided in ORS 342.125 or who is otherwise authorized to teach
in the public schools of this state and who is employed half time
or more as an instructor or administrator.
    { - (9) - }  { +  (10) + } 'Temporary teacher' means a
teacher employed to fill a position designated as temporary or
experimental or to fill a vacancy which occurs after the opening
of school because of unanticipated enrollment or because of the
death, disability, retirement, resignation,  { + contract
non-extension + } or dismissal of a
  { - permanent - }  { +  contract + } or probationary teacher.
  SECTION 5.  { + Section 6 of this Act is added to and made a
part of ORS 342.805 to 342.934. + }
  SECTION 6.  { + The Superintendent of Public Instruction may
reimburse any school districts for all or part of the costs
reasonably related to a dismissal of a contract teacher or
non-extension of a contract teacher's contract, or appeal


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therefrom under ORS 342.805 to 342.934, provided that the school
district is the ultimate prevailing party. The superintendent may
consider the school district's ability to pay the costs related
to the dismissal or non-extension of the contract teacher, and
seek such funds from the Emergency Board as may be in the
superintendent's judgment necessary to carry out this
provision. + }
   { +  NOTE: + } Section 7 was deleted by amendment. Subsequent
sections were not renumbered.
  SECTION 8. ORS 342.845 is amended to read:
  342.845. (1) A   { - permanent - }   { + contract + } teacher
shall not be subjected to the requirement of annual appointment
nor shall the teacher be dismissed or employed on a part-time
basis without the consent of the teacher except as provided in
ORS 342.805 to 342.934.
  (2) Notwithstanding subsection (1) of this section, a part-time
 { - permanent - }   { + contract + } teacher attains
 { - permanent - }  { +  contract + } status at not less than
half time but less than full time and may be assigned within
those limits by the school district.  The assignment of a
 { - permanent - }   { + contract + } part-time teacher is not
subject to the procedures specified in ORS 342.805 to 342.930. A
  { - permanent - }   { + contract + } part-time teacher who
accepts a full-time assignment shall be considered a
 { - permanent - }   { + contract + } teacher for purposes of the
assignment.
    { - (3) Except as provided in ORS 342.934, no permanent
teacher who has served as an administrator in a particular
position for a period of three successive years shall be
transferred to a lower paying position as an administrator or to
a nonadministrative position without the consent of the teacher
except for the reasons for which a permanent teacher may be
dismissed as provided in ORS 342.805 to 342.934 and in accordance
with the procedures set forth in ORS 342.805 to 342.934 pursuant
to which a permanent teacher may be dismissed. As used in this
subsection, 'lower paying position' means a position with a
reduction in remuneration, including salary and benefits. - }
    { - (4) - }   { + (3) + } No teacher shall be deprived of
employment status solely because the duties of employment have
been assumed or acquired by another school district or education
service district in a state reorganization of a regional special
education program.  Where such reorganization occurs, a teacher
shall be transferred to the employment of the school district or
education service district which assumed or acquired program
responsibilities. The teacher shall be allowed to transfer
accrued sick leave and experience status to the new district.
However, the district to which the programs are transferred is
obligated to hire displaced employees only to the extent that
such would complement a cost effective staffing plan in the
reorganized program.
   { +  (4)(a) An administrator shall serve a probationary period
that does not exceed three years, unless the administrator and
the school district mutually agree to a shorter time period.
Following a probationary period, an administrator shall be
employed by a school district pursuant to a three-year employment
contract. An administrator may be dismissed or have a reduction
in pay during the term of a contract for any reason set forth for
dismissal of a teacher in ORS 342.865, or pursuant to ORS 342.934
(5). If an administrator is dismissed or has a reduction in pay
during the term of the contract, the administrator may appeal to


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the Fair Dismissal Appeals Board in the same manner as provided
for the appeal of a dismissal or a non-extension of a contract
teacher. An administrator may not appeal the non-extension of a
contract to the Fair Dismissal Appeals Board.
  (b) The administrator may be assigned and reassigned at will
during the term of the contract.
  (c) The district school board may elect not to extend the
administrator's contract for any cause the school board in good
faith considers sufficient. Prior to March 15 of the second year
of the administrator's contract, the school board shall take one
of the following actions:
  (A) Issue a new three-year contract effective July 1 following
the March 15 of the second year of the administrator's contract;
  (B) Provide, in writing, notice that the contract will not be
renewed or extended; or
  (C) Extend the existing contract for a period of not more than
one year.
  (5) If an administrator receives notice of contract
non-extension prior to the expiration of the administrator's
contract, the administrator shall have the right to fill any
vacant teaching position in the district for which the contract
administrator is licensed and competent as defined in ORS
342.934, provided the administrator has three years' teaching
experience in Oregon that has been successful, in the judgment of
the district superintendent. + }
  SECTION 9. ORS 342.850 is amended to read:
  342.850. (1) The district superintendent of every school
district, including superintendents of education service
districts, shall cause to have made at least annually but with
multiple observations an evaluation of performance for each
probationary teacher employed by the district   { - and at least
biennially for any other teacher - } . The purpose of the
evaluation is to   { - allow the teacher and the district to - }
 { + aid the teacher in making continuing professional growth and
to + } determine the teacher's   { - development and growth in
the teaching profession and to evaluate the - }  performance of
the teaching responsibilities.   { - A form for teacher
evaluation shall be prescribed by the State Board of Education
and completed pursuant to rules adopted by the district school
board - }  { +  Evaluations shall be based upon at least two
observations and other relevant information developed by the
district + }.
  (2)(a) The district school board shall develop an evaluation
process in consultation with school administrators and with
teachers. If the district's teachers are represented by a local
bargaining organization, the board shall consult with teachers
belonging to and appointed by the local bargaining organization
in the consultation required by this paragraph.
  (b) The district school board shall implement the evaluation
process that includes:
  (A) The establishment of job descriptions and performance
standards which include but are not limited to items included in
the job description;
  (B) A preevaluation interview which includes but is not limited
to the establishment of performance goals for the teacher, based
on the job description and performance standards;
  (C) An evaluation based on written criteria which include the
performance goals;   { - and - }
  (D) A post-evaluation interview in which { + : + }



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  (i) The results of the evaluation are discussed with the
teacher { + ; + } and
  (ii) A written program of assistance for improvement is
established, if one is needed to remedy   { - the problem - }
 { + any deficiency specified in ORS 342.865 (1)(a), (d), (g) or
(h); and
  (E) The utilization of peer assistance whenever practicable and
reasonable to aid teachers to better meet the needs of students.
Peer assistance shall be voluntary and subject to the terms of
any applicable collective bargaining agreement. No witness or
document related to the peer assistance or the record of peer
assistance shall be admissible in any proceeding before the Fair
Dismissal Appeals Board, or in a probationary teacher nonrenewal
hearing before a school board under ORS 342.835, without the
mutual consent of the district and the teacher provided with peer
assistance + }.
  (c) Nothing in this subsection is intended to prohibit a
district from consulting with any other individuals.
  (3) Except in those districts having an average daily
membership, as defined in ORS 327.006, of fewer than 200
students, the person or persons making the evaluations must hold
teaching licenses. The evaluation shall be signed by the school
official who supervises the teacher and by the teacher. A copy of
the evaluation shall be delivered to the teacher.
  (4) The evaluation reports shall be maintained in the personnel
files of the district.
  (5) The evaluation report shall be placed in the teacher's
personnel file only after reasonable notice to the teacher.
  (6) A teacher may make a written statement relating to any
evaluation, reprimand, charge, action or any matter placed in the
teacher's personnel file and such teacher's statement shall be
placed in the personnel file.
   { +  (7) All charges resulting in disciplinary action shall be
considered a permanent part of a teacher's personnel file and
shall not be removed for any reason. A teacher shall have the
right to attach the teacher's response, or other relevant
documents, to any document included under this subsection. + }
    { - (7) - }   { + (8) + } The personnel file shall be open
for inspection by the teacher, the teacher's designees and the
district school board and its designees. District school boards
shall adopt rules governing access to personnel files, including
rules specifying whom school officials may designate to inspect
personnel files.
    { - (8) The teacher evaluation procedures mandated by
subsection (2)(b)(A) to (D) of this section shall be enforced by
the Superintendent of Public Instruction pursuant to ORS
327.103. - }
   { +  (9) A program of assistance for improvement or evaluation
procedure shall not be technically construed, and no alleged
error or unfairness in a program of assistance for improvement
shall cause the overturning of a dismissal, non-extension of
contract, nonrenewal of contract or other disciplinary action
unless the contract teacher suffered a substantial and
prejudicial impairment in the teacher's ability to comply with
school district standards. + }
  SECTION 10. ORS 342.865 is amended to read:
  342.865. (1) No   { - permanent - }   { + contract + } teacher
shall be dismissed  { + or the teacher's contract
non-extended + } except for:
  (a) Inefficiency;


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  (b) Immorality;
  (c) Insubordination;
  (d) Neglect of duty { + , including duties specified by written
rule + };
  (e) Physical or mental incapacity;
  (f) Conviction of a felony or of a crime according to the
provisions of ORS 342.143;
  (g) Inadequate performance;
  (h) Failure to comply with such reasonable requirements as the
board may prescribe to show normal improvement and evidence of
professional training and growth; or
  (i) Any cause which constitutes grounds for the revocation of
such   { - permanent - }   { + contract + } teacher's teaching
license.
  (2) In determining whether the professional performance of a
  { - permanent - }   { + contract + } teacher is adequate,
consideration shall be given to regular and special evaluation
reports prepared in accordance with the policy of the employing
school district and to any written standards of performance which
shall have been adopted by the board.
  (3) Suspension or dismissal on the grounds contained in
subsection (1)(e) of this section shall not disqualify the
teacher involved for any of the benefits provided in ORS 238.320
to 238.340, 239.233 to 239.239 or 332.507.
  (4) Dismissal under subsection (1)(f) of this section shall
remove the individual from any school district policies,
collective bargaining provisions regarding dismissal procedures
and appeals and the provisions of ORS 342.805 to 342.934.
  SECTION 11. ORS 342.875 is amended to read:
  342.875. Whenever a district superintendent has reason to
believe that cause exists for the dismissal of a
 { - permanent - }  { +  contract + } teacher on any ground
specified in ORS 342.865 (1)(b) to (f), and when the district
superintendent is of the opinion that immediate suspension of the
teacher is necessary for the best interest of education in the
district, the district superintendent may suspend a
 { - permanent - }   { + contract + } teacher from the position
without prior notice to the teacher. The teacher's salary shall
continue during the first five days of the suspension period.
However, within five days after such suspension becomes
effective, either procedure shall be commenced for the dismissal
of the teacher pursuant to the provisions of ORS 342.805 to
342.934 or the teacher must be reinstated.
  SECTION 12. ORS 342.895 is amended to read:
  342.895.  { + (1) Contract teachers shall be employed by a
school district pursuant to two-year employment contracts. + }
    { - (1) - }  { +  (2) + } Authority to dismiss  { + or not
extend + } a   { - permanent - }  { +  contract + } teacher is
vested in the district school board subject to the provisions of
the fair dismissal  { + and contract extension + } procedures of
ORS 342.805 to 342.934 and only after recommendation of the
dismissal  { + or non-extension of contract + } is given to the
district school board by the superintendent.
    { - (2) - }  { +  (3)(a) + } At least 20 days before
recommending to a board the dismissal of the   { - permanent - }
 { + contract + } teacher, the district superintendent shall give
written notice to the   { - permanent - }  { +  contract + }
teacher by certified mail or delivered in person of the intention
to make a recommendation to dismiss the teacher. The notice shall
set forth the statutory grounds upon which the superintendent


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believes such dismissal is justified, and shall contain a plain
and concise statement of the facts relied on to support the
statutory grounds for dismissal. If the statutory grounds
specified are those specified in ORS 342.865 (1)(a), (c), (d),
(g) or (h), then evidence shall be limited to those allegations
supported by statements in the personnel file of the teacher on
the date of the notice to recommend dismissal, maintained as
required in ORS 342.850. Notice shall also be sent to the
district school board and to the Fair Dismissal Appeals Board. A
copy of ORS 342.805 to 342.934 shall also be sent to the
  { - permanent - }   { + contract + } teacher.
    { - (3) - }   { + (b) + } If, after the 20-day notice
required by   { - subsection (2) of this section - }  { +
paragraph (a) of this subsection + }, the district school board
takes action to approve the recommendation for dismissal from the
superintendent, the dismissal takes effect on or after the date
of the district school board's action, as specified by the board.
Notice of the board's action shall be given to the
 { - permanent - }   { + contract + } teacher as soon as
practicable by certified mail, return receipt requested or in the
manner provided by law for the service of a summons in a civil
action.
   { +  (4)(a) Upon recommendation of the district
superintendent, the district school board may extend a contract
teacher's employment for a new two-year term by providing written
notice to the teacher no later than March 15 of the first year of
the contract. Any new contract that extends the teacher's
employment for a new term shall replace any prior contracts.
  (b) If the district school board does not extend a contract
teacher's contract by March 15 of the first year of the contract,
the district superintendent, or the superintendent's designee,
shall place the teacher on a program of assistance for
improvement. The district superintendent or the superintendent's
designee may, in addition, place any other teacher on a program
of assistance for improvement if in the judgment of the district
superintendent or designee a program of assistance for
improvement is needed.
  (c) Provided that the district school board has not extended
the teacher's contract for a new two-year term, the district
board, upon recommendation of the superintendent, may elect by
written notice to the teacher no later than March 15 of the
second year of the teacher's contract not to extend the teacher's
contract based on any ground specified in ORS 342.865. A contract
teacher whose contract is not extended may appeal the
non-extension to the Fair Dismissal Appeals Board.
  (5) Notwithstanding ORS 243.650 to 243.782 or the provisions of
any collective bargaining agreement entered into after the
effective date of this Act, no grievance or other claim of
violation of applicable evaluation procedures, or fundamental
unfairness in a program of assistance for improvement, shall be
filed while a teacher is on a program of assistance. All statutes
of limitation and grievance timelines shall be tolled while the
subject claims are held in abeyance under this moratorium
provision. Except as provided in this subsection, the moratorium
and tolling period ends on the date the program of assistance for
improvement is completed, not to exceed one year, after which any
claims subject to this provision may be pursued as otherwise
provided by law or contract. In the case of a contract teacher
who does not receive contract extension by March 15 of the first
year of the teacher's contract, the moratorium period shall last


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until the teacher receives notice of contract extension or
non-extension and no later than March 15 of the following school
year, or until the teacher receives notice of dismissal. A
contract teacher who is dismissed or receives notice of contract
non-extension, and who appeals to the Fair Dismissal Appeals
Board, may raise any claims subject to this moratorium provision
before the Fair Dismissal Appeals Board, which shall have
jurisdiction to decide such claims. If the teacher does raise
claims covered by this moratorium provision in an appeal to the
Fair Dismissal Appeals Board, such appeal shall be the teacher's
sole and exclusive remedy. If a contract teacher does not appeal
a contract non-extension or dismissal to the Fair Dismissal
Appeals Board but instead pursues contract grievances to
arbitration alleging a violation of evaluation procedures or
fundamental unfairness in a program of assistance for
improvement, the arbitrator shall not have authority to award
reinstatement of the contract teacher, but may award other
remedies including but not limited to back pay, front pay,
compensatory damages and such further relief as the arbitrator
deems appropriate. A program of assistance for improvement shall
not be technically construed, and no alleged error or unfairness
in a program of assistance shall cause the overturning of a
dismissal, non-extension of contract, nonrenewal of contract or
other disciplinary actions unless the contract teacher suffered a
substantial and prejudicial impairment in the teacher's ability
to comply with school district standards.
  (6) No teacher may be dismissed, laid off or caused to suffer
non-extension or nonrenewal of a contract based upon the
teacher's salary placement or other compensation. + }
  SECTION 13. ORS 342.905 is amended to read:
  342.905. (1) If the district school board dismisses the
teacher { +  or does not extend the contract of the contract
teacher + }, the teacher or the teacher's representative may
appeal that decision to the Fair Dismissal Appeals Board
established under ORS 342.930 by depositing by certified mail
addressed to the Superintendent of Public Instruction and a copy
to the superintendent of the school district { + :
  (a) In the case of dismissal, + } within 10 days, as provided
in ORS 174.120, after receipt of notice of the district school
board's decision, notice of appeal with a brief statement giving
the reasons for the appeal.
   { +  (b) In the case of a contract non-extension, within 15
days, as provided in ORS 174.120, after receipt of the written
notice of non-extension of a contract, notice of appeal with a
brief statement giving the reasons for the appeal. + }
  (2) The Attorney General shall assign an assistant, at no cost
to either involved party, to advise the Fair Dismissal Appeals
Board, to be present at the   { - formal hearing - }  { +  oral
argument + } held by the board, and to perform those tasks at the
request of the board that would normally require legal training.
   { +  (3) Within five days after receipt of the notice of an
appeal of contract non-extension, the district shall serve upon
the Fair Dismissal Appeals Board and the teacher a written
statement of reason for the contract non-extension, which shall
include:
  (a) A plain and concise statement of the facts relied on to
support the statutory grounds for non-extension of the contract;
  (b) The statutory grounds upon which the district believes such
contract non-extension is justified; and



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  (c) A list of witnesses and documents upon which the district
will rely at hearing.
  (4)(a) The Employment Relations Board shall maintain a list of
no fewer than 10 persons who are experienced in public education
and employment relations. The Employment Relations Board shall
give priority consideration for such list to persons jointly
recommended by the Oregon School Boards Association and Oregon
Education Association provided that, if there are insufficient
joint recommendations from those organizations, the Employment
Relations Board may select other persons who the board determines
hold the requisite experience and neutrality to resolve disputes.
  (b) Upon the filing of an appeal of a contract dismissal or
non-extension, a hearings officer shall forthwith be mutually
selected by the parties from a list maintained by the Employment
Relations Board.
  (c) Alternatively, the teacher and the district superintendent
may agree on an individual who is not on the list to serve as the
hearings officer.
  (d) The parties shall mutually share the reasonable costs and
charges of the hearings officer.
  (5)(a) At least 10 days prior to the hearing, the teacher shall
provide a list of witnesses and exhibits to the hearings officer
and the school district.
  (b) The hearings officer shall hold a contested case hearing
under ORS 183.310 to 183.550 within 30 days of the receipt by the
teacher of notice of dismissal, or within 35 days of the receipt
by the teacher of the statement of reasons in the case of
contract non-extension. The hearings officer shall be empowered
to take all steps reasonably necessary to conduct a hearing,
develop and maintain a record of testimony, documents and other
exhibits, and to make findings of fact that in the hearings
officer's judgment are pertinent to the dispute. The hearings
officer, at the request of the district or teacher, may subpoena
and swear in witnesses and require them to give testimony and to
produce documents and other records relevant to the issues before
the Fair Dismissal Appeals Board. The hearing shall be private
unless the teacher requests a public hearing. At the hearing, the
district and the contract teacher shall have the right to be
present and be heard, to be represented by counsel, to present
evidence and cross-examine adverse witnesses and to offer
evidence that in the hearings officer's judgment is relevant to
the dispute. The hearings officer may take all reasonable steps
to require the parties to conclude the hearing in an expeditious
manner.
  (c) The hearings officer shall file proposed findings of fact
in the dispute no later than 30 days after the close of the
hearing and serve the same on the parties and Fair Dismissal
Appeals Board by personal service or certified mail, return
receipt requested.
  (d) Within 10 days of receipt of the hearings officer's
proposed findings of fact, either party may file objections to
the proposed findings of fact. However, no new testimony,
documents or exhibits will be accepted by the board. If no such
objections to the findings of fact are filed, the proposed
findings of fact shall be accepted by the Fair Dismissal Appeals
Board, which shall proceed to consider the controversy unless the
parties inform the Fair Dismissal Appeals Board that the dispute
has been resolved. + }
    { - (3) - }  { +  (6) + } As soon as possible after the time
the notice of appeal is received by the Superintendent of Public


Enrolled Senate Bill 880 (SB 880-C)                       Page 10



Instruction, the superintendent shall appoint a panel of three
members from the Fair Dismissal Appeals Board   { - for the
purpose of conducting a hearing - } . In so far as practicable
the panel shall be selected from those members of the board
serving in positions where the average daily membership as
determined in ORS 342.930 most nearly coincides with that of the
involved district. One member shall be from the category
representing board members; one member shall be from the category
of persons not affiliated with common or union high school
districts; and one member shall be from the category representing
teachers or administrators. If the appeal is from a
  { - permanent - }  { +  contract + } teacher in a teaching
position, the board shall include the teacher member. If the
 { - permanent - }  { +  contract + } teacher is in an
administrative position, the administrative member shall sit in
place of the teacher member. No panel shall contain a member who
is resident of the district that is bringing the dismissal { +
or non-extension + }.   { - As soon as possible after the
selection of the panel, a time shall be established for the
hearing. The board shall be furnished by the Department of
Education at the department's expense appropriate professional
and other special assistance reasonably required to conduct a
hearing and shall be empowered on behalf of the permanent
teacher, the district superintendent and the district school
board to subpoena and swear witnesses and to require them to give
testimony and to produce books and papers relevant to its
hearing. - }
    { - (4) The Fair Dismissal Appeals Board panel shall conduct
a contested case hearing in accordance with the provisions of the
Administrative Procedures Act in ORS 183.310 to 183.550. - }
   { +  (7) Upon receipt of the hearings officer's proposed
findings of fact and any objection filed by the parties, the Fair
Dismissal Appeals Board panel shall provide the parties with a
reasonable opportunity for oral and written argument. The oral
argument shall be limited to one-half hour for each party. No
later than 140 days after filing of the appeal, consistent with
due process, the Fair Dismissal Appeals Board panel shall render
its written decision and serve the same on the parties by
personal service or certified mail, return receipt requested. + }
    { - (5) - }  { +  (8) + } When the Fair Dismissal Appeals
Board panel has completed its   { - hearing - }  { +  review + },
it shall prepare a written report and send it to the
 { - permanent - }  { +  contract + } teacher, the district
superintendent, the district school board and the Superintendent
of Public Instruction. The Fair Dismissal Appeals Board panel
shall determine whether the facts relied upon to support the
statutory grounds cited for dismissal  { + or non-extension and
included in the hearings officer's findings of fact + } are true
and substantiated.  { + The panel's review of the evidence shall
be de novo. + } If the panel finds these facts true and
substantiated, it shall then consider whether such facts, in
light of all the circumstances and additional facts
 { - developed at the hearing - }  { +  found by the hearings
officer + } that are relevant to the statutory standards in ORS
342.865 (1), are adequate to justify the statutory grounds cited.
In making such determination, the panel shall consider all
reasonable written rules, policies and standards of performance
adopted by the school district board unless it finds that such
rules, policies and standards have been so inconsistently applied
as to amount to arbitrariness. The panel shall not reverse the


Enrolled Senate Bill 880 (SB 880-C)                       Page 11



dismissal  { + or non-extension + } if it finds the facts relied
upon are true and substantiated unless it determines, in light of
all the evidence and for reasons stated with specificity in its
findings and order, that the dismissal  { + or non-extension + }
was unreasonable, arbitrary or clearly an excessive remedy. The
panel shall prepare the report within 30 days from the
  { - final adjournment of the hearing - }  { +  date of the oral
arguments + }.
  { - However, when the panel finds that because of unusual
circumstances justice requires that a greater time be spent, it
shall so notify the permanent teacher, the district
superintendent, the district school board and the Superintendent
of Public Instruction. The extension shall not be beyond 30 days
from the date of the notice of extension. - }
    { - (6) - }  { +  (9) + }(a) Subject to subsection
 { - (5) - }  { +  (8) + } of this section
  { - and paragraphs (b) and (c) of this subsection - } , if the
Fair Dismissal Appeals Board panel finds that the facts relied on
to support the recommendation of the district superintendent are
untrue or unsubstantiated, or if true and substantiated, are not
adequate to justify the statutory grounds cited as reason for the
dismissal { +  or non-extension + }, and so notifies the
 { - permanent - }  { +  contract + } teacher, the district
superintendent, the district school board and the Superintendent
of Public Instruction, the teacher shall be reinstated and the
teacher shall receive such back pay as ordered by the Fair
Dismissal Appeals Board panel for the period between the
effective date of the dismissal  { + or non-extension + } and the
date of the order reinstating the teacher, or the date when the
district actually reinstates the teacher, whichever is later.
However, nothing in this section requires a school district to
pay the teacher until the reinstatement occurs if the district
has other legal grounds for not reinstating the teacher.
    { - (b) If the teacher was suspended prior to the effective
date of dismissal, the teacher shall also receive salary for the
uncompensated period of the suspension. - }
    { - (c) - }  { +  (b) + } So long as the right of the
district board under subsection   { - (8) - }  { +  (11) + } of
this section and under ORS 183.480 and 183.500 to judicial review
of the action of the Fair Dismissal Appeals Board remains
unexpired, the district school board may withhold the reinstated
teacher from performance of teaching duties, unless otherwise
ordered by the court having jurisdiction of the appeal.
    { - (d) - }  { +  (c) Subject to ORS 342.850 (9), + } if the
Fair Dismissal Appeals Board panel determines that the procedures
described in ORS 342.850 (2)(b)(A) to (D) have not been
substantially complied with, the teacher may be reinstated
 { - or provided such other relief as determined appropriate, or
both - }  { +  with back pay as provided in paragraph (a) of this
subsection + }.
    { - (7) - }  { +  (10) + }   { - Subject to subsection (5) of
this section, - }  If the Fair Dismissal Appeals Board panel
finds the facts relied on to support the recommendation of the
district superintendent true and substantiated, and that those
facts justify the statutory grounds cited as reason for the
dismissal  { + or non-extension + } and so notifies the
 { - permanent - }   { + contract + } teacher, the district
superintendent, the district school board and the Superintendent
of Public Instruction in writing, the dismissal  { + or
non-extension + } becomes final on the date of the notice.


Enrolled Senate Bill 880 (SB 880-C)                       Page 12



    { - (8) - }  { +  (11) + } An appeal from action of the Fair
Dismissal Appeals Board shall be taken in the manner provided in
ORS 183.480.
    { - (9)(a) - }  { +  (12)(a) + } If both the district board
and the teacher or teacher's representative agree, arbitration
may be used as an alternative to a hearing before the Fair
Dismissal Appeals Board to determine if the teacher's dismissal
 { + or non-extension of a contract + } is in compliance with the
standards of ORS 342.805 to 342.915. If the teacher or teacher's
representative desires to use the arbitration procedure, the
request for arbitration shall be included in the request for
appeal that is filed with the Superintendent of Public
Instruction under this section. Within 10 days of the time the
superintendent of the district is notified of the teacher's
intent to appeal the dismissal { +  or non-extension of a
contract + }, the superintendent of the district shall notify the
teacher or teacher's representative and the Superintendent of
Public Instruction as to whether the district has agreed to use
the arbitration procedure. If the district determines not to use
the arbitration procedure, the hearing procedure shall be
continued under this section in the same manner as if no request
for arbitration had been made. If the arbitration procedure is
used, the teacher has no further rights to a hearing before the
Fair Dismissal Appeals Board.
  (b) The procedures for selection of the arbitrator are those in
the applicable collective bargaining agreement. If there is no
provision or agreement or if the agreement does not contain a
procedure for selection, the parties shall request a list of five
arbitrators from the Employment Relations Board and shall choose
an arbitrator by alternative striking of names until one name is
left. The remaining person shall act as the arbitrator. The
Employment Relations Board shall compile a roster of qualified
arbitrators from which the lists are to be taken.
  (c) In determining whether the district board's dismissal { +
or non-extension + } of the teacher should be sustained, the
arbitrator shall use the same reasons, rules and levels of
evidence as are required for the Fair Dismissal Appeals Board
under ORS 342.805 to 342.915.
  SECTION 14. ORS 342.910 is amended to read:
  342.910. (1) Any teacher who files an appeal of a dismissal
 { +  or non-extension of a contract + } decision with the Fair
Dismissal Appeals Board, upon motion of the school district,
shall be required to waive any contract grievance claim regarding
the same dismissal  { + or non-extension of a contract + } as a
condition to Fair Dismissal Appeals Board or subsequent judicial
review.
  (2) A school district and an exclusive bargaining
representative of   { - certificated - }  teachers may agree to
waive all or any part of the   { - Fair Dismissal Law - }  rights
and procedures  { +  provided under ORS 342.805 to 342.934 + } if
third party review of any dismissal  { + or non-extension of a
contract teacher + } is available.
  SECTION 14a. ORS 342.930 is amended to read:
  342.930. (1) A Fair Dismissal Appeals Board is created,
consisting of 20 members appointed by the Governor, subject to
confirmation by the Senate as provided in ORS 171.562 and
171.565.  Five members shall be administrators in common or union
high school districts, five members shall be   { - permanent - }
 { + contract + } teachers, five members shall be members of
common or union high school district boards at the time of their


Enrolled Senate Bill 880 (SB 880-C)                       Page 13



appointment and five members shall not be affiliated with any
common or union high school district. At least one member from
each category shall be resident of a school district with an
average daily membership as defined in ORS 327.006, of less than
1,500 students; one from each category shall be resident of a
school district containing from 1,500 to 4,500 students; and one
from each category shall be resident of a school district
containing over 4,500 students.
  (2) Except as provided in subsection (3) of this section, the
term of office of each member is four years, but a member serves
at the pleasure of the Governor. Before the expiration of the
term of a member, the Governor shall appoint a successor whose
term begins on July 1 next following. A member is eligible for
reappointment. If there is a vacancy for any cause, the Governor
shall make an appointment to become immediately effective for the
unexpired term.
  (3) A member whose term has expired may continue to serve for
the following limited purposes:
  (a) To conduct a   { - hearing - }   { + review + } and prepare
a report if the member was appointed to a panel in accordance
with ORS 342.905
  { - (3) - }  { +  (6) + } before the expiration of the member's
term; or
  (b) To reconsider a decision if the member served on the panel
originally hearing an appeal and a motion for reconsideration is
filed prior to an appeal to the Court of Appeals.
  (4) The continued service of a member as provided in subsection
(3) of this section shall not prevent a successor from taking
office at the time prescribed in subsection (2) of this section.
  (5) Members shall be entitled to compensation and expenses as
provided in ORS 292.495 for each day or part thereof during which
they perform duties under ORS 342.805, 342.815, 342.835, 342.850,
342.875, 342.895 to 342.915 and this section, to be paid by the
district school board from which the appeal is taken. However,
any member of the board who would be entitled to receive a per
diem except for being employed in full-time public service may
receive the payment if service on the board is performed while
the member is not under obligation to perform contractual
teaching or administrative duties.
  (6) The board shall select one of its members as chairperson
and another as vice chairperson, for such terms and with duties
and powers necessary for the performance of the functions of such
offices as the board determines.
  (7) A majority of the members of the board constitutes a quorum
for the transaction of business.
  SECTION 15. ORS 342.934 is amended to read:
  342.934. (1) The procedure for reduction in   { - probationary
and permanent - }  teacher staff positions resulting from the
 { + school + } district's lack of funds to continue its
educational program at its anticipated level or resulting from
the district's elimination or adjustment of classes due to
administrative decision shall be as provided in this section.
However, nothing in this section is intended to interfere with
the right of a fair dismissal district to discharge, remove or
fail to renew the contract of a probationary teacher pursuant to
ORS 342.835.
  (2) The school district shall make every reasonable effort to:
  (a) Transfer teachers of courses scheduled for discontinuation
to other teaching positions for which they are licensed and
qualified.


Enrolled Senate Bill 880 (SB 880-C)                       Page 14



  (b) Combine teaching positions in a manner which allows
teachers to remain qualified so long as the combined positions
meet the curriculum needs of the district and the competence
consideration specified in subsection (4) of this section.
  (3) In determining teachers to be retained when a school
district reduces its staff under this section, the school
district shall:
  (a) Determine whether teachers to be retained hold proper
licenses at the time of layoff to fill the remaining positions.
  (b) Determine seniority of teachers to be retained, calculated
from the first day of actual service as teachers with the school
district inclusive of approved leaves of absence. Ties shall be
broken by drawing lots.
  (c) Determine competence and merit of teachers, if necessary,
under subsection (4) of this section.
  (4) If a school district desires to retain a teacher with less
seniority than a teacher being released under this section, the
district shall determine that the teacher being retained has more
competence or merit than the teacher with more seniority who is
being released.
  (5) An administrator shall retain status and seniority as a
  { - permanent - }   { + contract + } teacher and voluntarily
may return to teaching in a reduction in staff situation.
However, an administrator who was never employed as a teacher in
the district shall not be eligible to become a nonadministrative
teacher in the district if the effect is to displace a
nonadministrative
  { - permanent - }   { + contract + } teacher.
  (6) In consultation with its employees or, for those employees
in a recognized or certified collective bargaining unit, with the
exclusive bargaining representative of that unit, each school
district shall establish a procedure for recalling teachers to
employment in the district who have been released because of a
prospective or actual reduction in staff. The procedure so
established shall define the criteria for recall and the teacher
shall have the right of recall thereunder for 27 months after the
last date of release by the district unless waived as provided in
such procedure by rejection of a specific position. A
 { - permanent - }  { +  contract + } teacher who is recalled
shall retain the   { - permanent - } status obtained before the
release. A probationary teacher who is recalled shall have years
taught for the district counted as if the employment had been
continuous for purposes of obtaining
  { - permanent - }   { + contract teacher + } status.
  (7) An appeal from a decision on reduction in staff or recall
under this section shall be by arbitration under the rules of the
Employment Relations Board or by a procedure mutually agreed upon
by the employee representatives and the employer. The results of
the procedure shall be final and binding on the parties. Appeals
from multiple reductions may be considered in a single
arbitration. The arbitrator is authorized to reverse the staff
reduction decision or the recall decision made by the district
only if the district:
  (a) Exceeded its jurisdiction;
  (b) Failed to follow the procedure applicable to the matter
before it;
  (c) Made a finding or order not supported by substantial
evidence in the whole record; or
  (d) Improperly construed the applicable law.



Enrolled Senate Bill 880 (SB 880-C)                       Page 15



   { +  (8) After the effective date of this 1997 Act, a school
district shall not agree in any collective bargaining agreement
to waive the right to consider competence in making decisions
about the order of reduction in staff or recall of staff. Nothing
in this subsection shall prevent a school district and the
exclusive bargaining representative from agreeing to alternative
criteria for competence determinations under this subsection so
long as the criteria ensure that all retained teachers are
qualified for the positions they fill. As used in this
subsection, 'qualified ' means the measurement of the teacher's
ability to teach the particular grade level or subject matter in
which the teacher is placed after the reduction in force.
Qualifications shall be measured by more than seniority and
licensure, but may include other criteria that reasonably measure
the teacher's fitness to teach the relevant grade or subject
level. Determinations of competence or qualifications under this
subsection may take into account requirements for any special
needs students. + }
    { - (8) - }   { + (9) + } As used in this section:
  (a) 'Competence' means the ability to teach a subject or grade
level based on recent teaching experience   { - or educational
attainments - }   { + related to that subject or grade level
within the last five years, or educational attainments + }, or
both, but not based solely on being licensed to teach   { - a
subject or grade level - } .  { + The district may consider a
teacher's willingness to undergo additional training or pursue
additional education in deciding upon questions of
competence. + }
  (b) 'Merit' means the measurement of one teacher's ability and
effectiveness against the ability and effectiveness of another
teacher.
  SECTION 16. ORS 332.505 is amended to read:
  332.505. (1) A district school board may:
  (a) Employ a superintendent of schools and necessary assistant
superintendents for the district and fix the terms and conditions
of employment and the compensation.  { + The district school
board shall not contract with a superintendent for more than a
period of three years at a time. The contract shall automatically
expire at the end of its term. However, the district school board
may elect to issue a subsequent contract for an additional three
years at any time. + }
  (b) Employ personnel, including teachers and administrators,
necessary to carry out the duties and powers of the board and fix
the duties, terms and conditions of employment and the
compensation.
  (c) Compensate district employees in any form which may
include, but shall not be limited to, insurance, tuition
reimbursement and salaries.
  (d) Employ educational assistants and intern teachers subject
to the rules of the State Board of Education.
  (2) The district school board shall maintain written personnel
policies at least one copy of which shall be placed in the
library and one copy in the business office of every school in
the district. Copies shall be available for inspection by any
school employee or member of the public.
  (3) The superintendent of the school district shall cause each
employee to be specifically informed of the existence and
availability of the personnel policies.




Enrolled Senate Bill 880 (SB 880-C)                       Page 16



  SECTION 17.  { + Notwithstanding any other law, a district
school board may conduct internal investigations of alleged
employee misconduct or wrongdoing at any time. + }
   { +  NOTE: + } Section 18 was deleted by amendment. Subsequent
sections were not renumbered.
  SECTION 19. 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 subsection (2) of this
section;
  (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 and shall 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 when the holder or person   { - after August 20, 1957,
has been convicted of a violation of ORS 163.355, 163.365,
163.375, 163.385, 163.395, 163.405, 163.415, 163.425, 163.427,
163.435, 163.445, 163.455 (1981 Replacement Part), 163.465,
163.515, 163.525, 163.575, 163.684, 163.686, 167.007, 167.012,
167.017, 167.065, 167.070, 167.075 or 167.080 or after July 8,
1987, has been convicted of a crime listed in ORS 163.408,
163.411, 163.670, 163.675 (1985 Replacement Part), 163.680 (1993
Edition), 167.062, 167.087 or 167.090 - }   { + has been
convicted of any crime described in ORS 342.143 (3) + }.
  (3) Subject to subsection (4) of this section, any person whose
license has been suspended or revoked or whose privilege to apply
for a license has been revoked may apply to the commission for
reinstatement of the license after one year from the date of the
suspension or revocation. However, a person whose license has
been revoked under subsection (2) of this section shall not apply
for reinstatement until after expiration of the sentence or
parole or probationary period imposed upon conviction, whichever
is the shorter. 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) The commission shall reconsider immediately a license
suspension or revocation or the situation of a person whose
privilege to apply for a license has been revoked, upon
application therefor, when the license suspension or revocation
or the privilege revocation is based on a criminal conviction
that is reversed on appeal.



Enrolled Senate Bill 880 (SB 880-C)                       Page 17



  (5) 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) 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 20. ORS 329.575 is amended to read:
  329.575. (1) All applications for the Oregon 21st Century
Schools Program shall be submitted to the Department of
Education, and shall contain the following:
  (a) A letter of support from the school board and the exclusive
representative of teachers in the buildings affected  { + if
waiver of a collective bargaining obligation over mandatory
subjects of collective bargaining, a right or obligation under a
collective bargaining contract or any right under ORS 243.650 to
243.782, 342.513, 342.545, 342.553, 342.608, 342.610, 342.613 or
342.650 is required + }.
  (b) An abstract of the nature and objectives of the project and
a description of the changes projected to occur in the school or
district, or any combination thereof, as a result of the
proposal.
  (c) A description of the goals and major activities to be
carried out as part of the project, including but not limited to
the nature and extent of the restructuring of school operations
and formal relationships as described in ORS 329.555 (2). The
application shall also describe the process used to identify the
goals and major activities of the project.
  (d) A list of the major student learning and educational
outcomes that are projected to occur as a result of the project,
including but not limited to those outcomes described in ORS
329.555 (2).
  (e) A description of all statutes and rules to be modified or
waived to complete the activities of the project. For each
provision, the application shall include a statement describing
why the modification or waiver is warranted.
  (f) A description of all district rules and agreements that are
to be modified or waived. All such provisions shall be approved
by a majority vote of each 21st Century Schools Council, the
affirmative vote of at least two-thirds of the licensed teachers
in the affected school buildings and the approval of the local
district school board and the exclusive representative of the
teachers  { + if waiver of a collective bargaining obligation
over mandatory subjects of collective bargaining, a right or
obligation under a collective bargaining contract or any right
under ORS 243.650 to 243.782, 342.513, 342.545, 342.553, 342.608,
342.610, 342.613 or 342.650 is required + }.
  (g) A budget plan for the project and additional anticipated
sources of funding, if any, including private grants and
contributions.
  (h) A description of the process by which data will be
collected and assessed to measure student learning and other
educational performance attributable to the project.
  (i) Letters expressing support and a willingness to participate
from community colleges and other post-secondary institutions,
where appropriate.
  (j) The number of school years for which approval is sought.
The period shall be no less than three years and no more than
five years.



Enrolled Senate Bill 880 (SB 880-C)                       Page 18



  (k) A description of how the district intends to share and
disseminate to other school districts those practices that prove
effective.
  (2) Applications shall contain all the components of subsection
(1) of this section to be eligible for approval.
  (3) The application may also contain written statements of
support from parents, citizens, local businesses and other
interested individuals and organizations.
  SECTION 21. ORS 329.585 is amended to read:
  329.585. (1) In addition to the application described in ORS
329.575 for the Oregon 21st Century Schools Program or ORS
329.695 for the School Improvement and Professional Development
program, a school district may submit proposals to:
  (a) Modify laws, rules or policies; and
  (b) Implement district or school improvement plans.
  (2) A district that applies under this section shall submit a
proposal in accordance with rules adopted by the State Board of
Education. When more than one school building is part of an
application, the board may require a demonstration in the
application process of coordination among such school buildings.
  (3) A proposal submitted under this section shall be approved
by the school district board and by the exclusive representatives
of the teachers in the district  { + if waiver of a collective
bargaining obligation over mandatory subjects of collective
bargaining, a right or obligation under a collective bargaining
contract or any right under ORS 243.650 to 243.782, 342.513,
342.545, 342.553, 342.608, 342.610, 342.613 or 342.650 is
required + }.
  SECTION 22. ORS 329.595 is amended to read:
  329.595. (1) The Oregon 21st Century Schools Advisory
Committee, appointed by the State Board of Education under ORS
329.700, shall propose rules, for adoption by the state board, to
govern the submission and approval of applications under ORS
329.537 to 329.605.
  (2) The advisory committee shall review all applications
submitted under ORS 329.537 to 329.605 and recommend applications
for approval by the state board including but not limited to the
following criteria:
  (a) The existence of significant, measurable and achievable
goals based on student performance;
  (b) The extent to which the district has demonstrated the need
for the requested modifications and waiver of specified statutes
and rules and local policies and agreements;
  (c) The extent to which the application proposes significant
changes in the structure of school operations and the formal
relationships between teachers, administrators, other school
personnel and public citizens, as described in ORS 329.555;
  (d) The clarity of purpose and values underlying the proposal;
  (e) Evidence of thoroughness in identifying, developing and
projecting implementation of the proposed activities;
  (f) Evidence of potential transferability of the proposed
activities and practices that are judged to be successful;
  (g) A determination that modification or waiver of statutes and
rules and local policies and agreements will not be detrimental
to the health, safety or constitutional rights of students,
teachers, administrators, other school personnel or the public
under state or federal law; and
  (h) A demonstration of support and commitment from all parties
to support and faithfully implement the proposal.



Enrolled Senate Bill 880 (SB 880-C)                       Page 19



  (3) The advisory committee may suggest modifications in
submitted applications, subject to the approval of the school
board, the exclusive representative of teachers  { + if waiver of
a collective bargaining obligation over mandatory subjects of
collective bargaining, a right or obligation under a collective
bargaining contract or any right under ORS 243.650 to 243.782,
342.513, 342.545, 342.553, 342.608, 342.610, 342.613 or 342.650
is required, + } and each 21st Century Schools Council involved
in the project.
  (4) The state board shall consider the recommendations of the
advisory committee and make the final decisions on approval of
the applications, using the criteria contained in subsection (2)
of this section. Before making these decisions, the state board
shall allow opportunity for comment by persons submitting the
applications and by the public.
  SECTION 23. ORS 329.600 is amended to read:
  329.600. (1) Each district that receives approval for a project
under the Oregon 21st Century Schools Program shall submit an
annual report to the advisory committee appointed under ORS
329.700 and to the local community. The report shall include
specific data that reflect the nature and extent of changes in
student learning and other performance as described in its
application.
  (2) Along with its annual report, a district may submit
proposed amendments to its approved program describing additional
statutes, rules or local policies and agreements that it proposes
to waive. Such amendments must be accompanied by a statement of
support from the local school board, the exclusive representative
of teachers  { + if waiver of a collective bargaining obligation
over mandatory subjects of collective bargaining, a right or
obligation under a collective bargaining contract or any right
under ORS 243.650 to 243.782, 342.513, 342.545, 342.553, 342.608,
342.610, 342.613 or 342.650 is required, + } and each 21st
Century Schools Council involved in the project. The advisory
committee may recommend approval of such amendments upon a
finding of satisfactory progress by the district and a
determination that all other provisions of ORS 329.537 to 329.605
have been met.
  (3) If, based upon these annual reports, the advisory committee
determines that a district's progress is unsatisfactory, the
advisory committee may recommend to the state board that the
district be placed on probation for a one-year period. During the
probationary year, the district shall be eligible for special
assistance from the Department of Education. During the
probationary year, the district shall also prepare a contingency
plan in the event it is ordered to terminate its project
prematurely.
  (4) If, after the probationary period described in subsection
(3) of this section, the district's progress is still
unsatisfactory in the judgment of the advisory committee, the
advisory committee may recommend that the state board terminate
the project and implement its plan for returning to compliance
with previously waived statutes, rules and local policies and
agreements.
  (5) A district may terminate its application by submitting to
the board a request for termination that has been approved by the
school board, the exclusive representative of teachers  { + if
waiver of a collective bargaining obligation over mandatory
subjects of collective bargaining, a right or obligation under a
collective bargaining contract or any right under ORS 243.650 to


Enrolled Senate Bill 880 (SB 880-C)                       Page 20



243.782, 342.513, 342.545, 342.553, 342.608, 342.610, 342.613 or
342.650 is required, + } and the 21st Century Schools Councils.
  SECTION 24. ORS 342.513 is amended to read:
  342.513. (1) Each district school board shall give written
notice of the renewal or nonrenewal of the contract for the
following school year by   { - April 1 - }   { + March 15 + } of
each year to all teachers and administrators in its employ who
are not   { - permanent - }  { + contract + } teachers { +  as
defined in ORS 342.815 + }. In case the district school board
does not renew the contract, the material reason therefor shall,
at the request of the teacher or administrator, be spread upon
the records of the school district and the board shall furnish a
statement of the reason for nonrenewal to the teacher or
administrator. If any district school board fails to give such
notice by   { - April 1 - }  { +  March 15 + }, the contract
shall be considered renewed for the following school year at a
salary not less than that being received at the time of renewal.
The teacher or administrator may bring an action of mandamus to
compel the district school board to issue such a contract for the
following school year.
  (2) This section is not effective unless teachers or
administrators notify the board in writing on or before April 15
of acceptance or rejection of the position for the following
school year.
  SECTION 25. ORS 239.223 is amended to read:
  239.223. (1) Any teacher who is a member of the Teachers'
Retirement System and reaches the age of compulsory retirement
may be continued in service by the school district thereafter to
the extent permitted by   { - the Fair Dismissal Law - }  { +
ORS 342.805 to 342.934 + }, and not otherwise.
  (2) Teachers continuing in employment past compulsory
retirement age as provided in this section shall make
contributions to the retirement fund. The account balance of any
such teacher shall continue to earn interest and at the time of
the retirement of such teacher benefits shall be computed on the
then attained age of the teacher. Any such teacher continuing in
employment past compulsory retirement age, upon reaching
compulsory retirement age or within 60 days thereafter, may elect
an optional form of payment to become operative upon retirement
or upon death, whichever occurs first. No change of an option so
elected shall be permitted, nor may there be a change of
beneficiary if Option 2 or 3 is elected. Upon the death of the
teacher before retirement, or upon retirement, benefits payable
under the option elected shall be computed as though both the
teacher and the beneficiary were alive. If the beneficiary
designated under Option 2 or 3 predeceases a teacher who is a
member of the system and who dies before retiring, the account
balance of the teacher is subject to the provisions of ORS
239.259.
  (3) Nothing in ORS 239.133 to 239.137 and 239.201 to 239.263
shall be construed to prevent the board of any school district
not subject to   { - the Fair Dismissal Law - }  { +  ORS 342.805
to 342.934 + } from applying to the school board of the district
in which the association exists for permission to employ a
licensed teacher who has reached retirement age, whether or not
said teacher has been previously employed by the school board
making such application; nor shall ORS 239.133 to 239.137 and
239.201 to 239.263 be construed to prevent the school board of
the district in which the association exists from granting such
permission if it be in the public interest so to do. In the event


Enrolled Senate Bill 880 (SB 880-C)                       Page 21



such permission be granted, such teacher, during the period of
such employment, shall not be entitled to any pension or annuity
provided by ORS 239.201 to 239.263.
  (4) Except as otherwise specifically provided by ORS 239.133 to
239.137 and 239.201 to 239.263, a teacher who has attained
compulsory retirement age:
  (a) May not be retained by any public employer other than the
school district in which the association exists in the employment
of which the teacher attained compulsory retirement age.
  (b) May not be employed by any public employer in a position
which normally requires 600 hours or more of service per calendar
year; but if the teacher is receiving old-age, survivors or
disability insurance benefits under the federal Social Security
Act, the teacher may be employed for the number of hours for
which the teacher's salary equals the maximum allowed for receipt
of the full amount of those benefits to which the teacher is
entitled. A person employed as provided in this paragraph shall
not be a member of the Public Employes' Retirement System by
reason of that employment.
  (5) No member of the association who is elected to a full-time
salaried office of the state or one of the political subdivisions
thereof, or who is appointed to a full-time salaried office
having a term fixed by statute or charter after the member has
attained compulsory retirement age and whether or not the member
has been retired, shall forfeit any rights accrued or accruing to
the member; provided, however, that for the period that such
member holds such office the member shall not be entitled to any
pension or annuity provided by ORS 239.201 to 239.263. Upon
ceasing to hold such office, the benefits of the member shall be
computed or recomputed upon the basis of the member's age then
attained.
  SECTION 26. ORS 342.805 is amended to read:
  342.805. ORS 342.805 to 342.934 shall be known as the
 { - Fair Dismissal - }   { + Accountability for Schools for the
21st Century + } Law.
  SECTION 27.  { + (1) The amendments to ORS 342.805 by section
26 of this Act is intended to change the name of the Fair
Dismissal Law to the Accountability for Schools for the 21st
Century Law.
  (2) For the purpose of harmonizing and clarifying statute
sections published in Oregon Revised Statutes, the Legislative
Counsel may substitute for words designating the Fair Dismissal
Law, wherever they occur in Oregon Revised Statutes, other words
designating the Accountability for Schools for the 21st Century
Law. + }
  SECTION 28.  { + The provisions of this Act shall apply to any
collective bargaining agreement or contract that is entered into,
renewed or extended after the effective date of this Act. + }
  SECTION 29.  { + ORS 342.915 is repealed. + }
  SECTION 30.  { + This Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this Act takes effect on its
passage. + }
                         ----------








Enrolled Senate Bill 880 (SB 880-C)                       Page 22





Passed by Senate June 20, 1997

Repassed by Senate June 30, 1997


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

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

Passed by House June 30, 1997


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












































Enrolled Senate Bill 880 (SB 880-C)                       Page 23





Received by Governor:

......M.,............., 1997

Approved:

......M.,............., 1997


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

Filed in Office of Secretary of State:

......M.,............., 1997


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









































Enrolled Senate Bill 880 (SB 880-C)                       Page 24