Summary

Oregon HB 3093 (Open States or Oregon Legislature) requires that a public charter school’s annual audit submitted to the state’s Department of Education must also be submitted to its sponsoring school district. A public charter school’s sponsor may terminate its contract due to a failure to maintain a sound financial management system. The bill also sets forth the circumstances in which a for-profit entity may employ employees at a virtual public charter school.

Legislative Analysis

OR HB 3093 requires the school district that is the sponsor of a public charter school to include the public charter school’s annual audit to the Department of Education as part of the audit report for the school district. The legislation allows the sponsor of a public charter school to terminate the charter if the school fails to have the audit prepared or fails to forward the audit information to the sponsor. It also allows the Department of Education to withhold State School Fund payments to the school district for a public charter school until the annual audit is submitted.

HB 3093 allows a public charter school sponsor to terminate a charter for failure to maintain a sound financial management system for one or more consecutive years. The bill allows the sponsor and the public charter school to agree to develop a plan to correct deficiencies if the public charter school fails to maintain financial stability or fails to maintain a sound financial management system. It also allows a school district board to consider the prior history, if any, of the applicant for a public charter school when evaluating a proposal for a new school.

This legislation also sets forth the circumstances in which a for-profit entity may employ employees at a virtual public charter school. If a virtual public charter school or its sponsor contracts with a for-profit entity to provide educational services, the for-profit entity may not be the employer of any employees at the school unless the employee is an administrator with no teaching responsibilities and both the executive officer of the sponsor and the public charter school governing body approve the employment.

This legislation can positively impact digital learning by increasing accountability for public charter schools, including virtual public charter schools. This in turn can improve the quality of such schools. HB 3093 also provides additional flexibility in hiring practices at virtual public charter schools by allowing for-profit entities to serve as employers at these schools under certain circumstances.

Legislative History

Detailed Vote History: Legiscan |  Open States

Approved by Governor John Kitzhaber on 6/6/2013