Increases the limitation on the percentage of students in a school district who may enroll in a virtual public charter school that is not sponsored by the student's resident school district without first receiving approval from the school district.

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3909
Sponsored by Representatives WRIGHT, DIEHL
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Enacts laws to increase school choice. (Flesch Readability Score: 87.9).
Increases the limitation on the percentage of students in a school district who may enroll in a
virtual public charter school that is not sponsored by the student’s resident school district without
first receiving approval from the school district.
Requires school districts to participate in open enrollment. Establishes a waiver process.
Directs the Department of Education to develop and implement a policy that provides for the
establishment of education savings accounts for students to use for educational expenses.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to school choice; creating new provisions; amending ORS 338.125, 339.127 and 339.133; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
VIRTUAL PUBLIC CHARTER SCHOOLS
SECTION 1.
ORS 338.125 is amended to read:
338.125. (1) Student enrollment in a public charter school is voluntary.
(2)(a) All students who reside in the school district in which the public charter school is located
are eligible for enrollment in the public charter school if space is available.
(b) Students who do not reside in the school district in which the public charter school is lo-
cated are eligible for enrollment in the public charter school if space is available and subject to
subsection (5) of this section.
(c) A public charter school may not limit student enrollment based on race, religion, sex, sexual
orientation, gender identity, ethnicity, national origin, disability, the terms of an individualized ed-
ucation program, income level, proficiency in the English language or athletic ability. A public
charter school may implement a weighted lottery that favors historically underserved students as
provided by subsection (3)(a) of this section.
(3)(a) Except as provided by paragraphs (b) and (c) of this subsection, if the number of applica-
tions from students exceeds the capacity of a program, class, grade level or building, the public
charter school shall select students through an equitable lottery selection process. For the purpose
of ameliorating the impact of discrimination against historically underserved students, an equitable
lottery selection process may include weights that favor historically underserved students. As used
in this paragraph, “historically underserved students” are students who are at risk because of any
combination of their race, sex, sexual orientation, gender identity, ethnicity, disability, income level,
proficiency in the English language, socioeconomic status or geographic location.
NOTE:Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 4686
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(b)(A) A public charter school may give priority for admission to students who reside within the
attendance boundaries that were in effect at the time a school district closed a nonchartered public
school if:
(i) The public charter school began to operate not more than two years after the nonchartered
public school was closed;
(ii) The school district that closed the nonchartered public school is the sponsor of the public
charter school;
(iii) The public charter school is physically located within the attendance boundaries of the
closed nonchartered public school; and
(iv) The school district board, through board action, approved the public charter school giving
priority as described in this paragraph.
(B) Nothing in this paragraph requires an amendment to a charter. A school district board may
take an action described in subparagraph (A)(iv) of this paragraph at any time during the term of
a charter.
(c) After a public charter school has been in operation for one or more years, the public charter
school may give priority for admission to students who:
(A) Were enrolled in the prior year in the public charter school;
(B) Were enrolled in a public preschool or prekindergarten program operated by the public
charter school;
(C) Have siblings who are presently enrolled in the school and who were enrolled in the school
in the prior year;
(D) Are at risk because the student has an economic or academic disadvantage that requires
special services or assistance, including students who:
(i) Are from economically disadvantaged families;
(ii) Are identified as having special educational needs;
(iii) Are limited in proficiency in the English language;
(iv) Are at risk of dropping out of high school; or
(v) Do not meet minimum standards of academic proficiency; or
(E) If the public charter school is a party to a cooperative agreement described in ORS 338.080,
reside in the school district that is the sponsor of the public charter school or in a school district
that is a party to the cooperative agreement.
(4) A student who wishes to enroll in a virtual public charter school does not need the approval
of the school district where the student is a resident before the student enrolls in the virtual public
charter school. If a student wishes to enroll in a virtual public charter school, the parent, legal
guardian or person in parental relationship with the student must provide the following notices to
the school district where the student is a resident:
(a) Intent to enroll the student in a virtual public charter school; and
(b) Enrollment of the student in a virtual public charter school.
(5)(a) Notwithstanding subsection (4) of this section and ORS 339.133, if more than [ three] six
percent of the students who reside in a school district are enrolled in virtual public charter schools
that are not sponsored by the school district, a student who is a resident of the school district must
receive approval from the school district before enrolling in a virtual public charter school. A school
district is not required to give approval if more than [ three] six percent of the students who reside
in the school district are enrolled in virtual public charter schools that are not sponsored by the
school district. A school district must provide notice of the decision to not give approval within 10
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calendar days of receiving notice of intent for the student to enroll in a virtual public charter
school.
(b) For the purpose of determining whether more than [ three] six percent of the students who
reside in the school district are enrolled in virtual public charter schools that are not sponsored by
the school district, the school district board shall:
(A) Include any students who:
(i) Reside in the school district, regardless of whether the students are considered residents of
different school districts as provided by ORS 339.133 (5); and
(ii) Are enrolled in virtual public charter schools that are not sponsored by the school district.
(B) Calculate, at least twice each year, the school district’s percentage of students attending
virtual public charter schools that are not sponsored by the school district.
(c)(A) Except as provided by subparagraph (B) of this paragraph, students who reside in the
school district, regardless of whether the students are considered residents of different school dis-
tricts as provided by ORS 339.133 (5), must receive approval from the school district before enrolling
in a virtual public charter school if the limit described in paragraph (a) of this subsection has been
met.
(B) A student is not required to receive approval from the school district in which the student
resides if the student:
(i) Previously lived in another school district;
(ii) While living in the other school district, was enrolled in a virtual public charter school; and
(iii) Has maintained continuous enrollment in the virtual public charter school since moving into
the school district where the student currently resides.
(d) If the school district does not give approval under paragraph (a) of this subsection, the
school district must provide to the parent, legal guardian or person in parental relationship with the
student information about:
(A) The percentage of students in the resident district that attend virtual public charter schools
that are not sponsored by the school district, based on the most recent calculation;
(B) The right to appeal the decision to the State Board of Education; and
(C) Other online options available to the student.
(e) If an appeal is made to the State Board of Education as described in paragraph (d) of this
subsection, the board must issue a decision within 14 days of the submission of the appeal.
(6) Within 10 days of a student’s enrollment in a public charter school, the public charter school
shall provide written notice of the student’s enrollment to the school district in which the public
charter school is located if the student does not reside in the school district where the public
charter school is located.
(7) Within 10 days of receiving the notice described in subsection (6) of this section, the school
district in which the public charter school is located shall provide to the student’s parent, legal
guardian or person in parental relationship written information about:
(a) The school district’s responsibility to identify, locate and evaluate students enrolled in the
public charter school to determine which students may be in need of special education and related
services as provided by ORS 338.165; and
(b) The methods by which the school district may be contacted to answer questions or provide
information related to special education and related services.
(8) When a student described in subsection (6) of this section withdraws from a public charter
school for a reason other than graduation from high school, the school district in which the public
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charter school is located shall:
(a) Provide to the school district in which the student resides written notice that the student
has withdrawn.
(b) Provide to the student’s parent, legal guardian or person in parental relationship written
information about:
(A) The responsibility of the school district in which the student resides to identify, locate and
evaluate students who reside in the school district to determine which students may be in need of
special education and related services as provided by ORS 338.165; and
(B) The methods by which the school district in which the student resides may be contacted to
answer questions or provide information related to special education and related services.
(9)(a) If a student described in subsection (6) of this section enrolls in a public charter school
and has an individualized education program, the school district in which the public charter school
is located must implement the individualized education program and follow the terms of the indi-
vidualized education program until a new individualized education program is developed.
(b) If a student described in subsection (6) of this section withdraws from a public charter school
and has an individualized education program, the school district in which the student resides must
implement the individualized education program and follow the terms of the individualized education
program until a new individualized education program is developed.
(10) When a virtual public charter school enrolls a student or a student no longer is enrolled
in a virtual public charter school, the virtual public charter school shall provide the written notices
described in ORS 338.120 (1)(m) and (n) to the school district where the student is a resident.
(11) A public charter school may conduct fund-raising activities but may not require a student
to participate in fund-raising activities as a condition of admission to the public charter school.
SECTION 2.
The amendments to ORS 338.125 by section 1 of this 2025 Act first apply to
the 2026-2027 school year.
OPEN ENROLLMENT
SECTION 3. ORS 339.133 is amended to read:
339.133. (1) As used in this section:
(a)(A) “Foster care” means substitute care for children placed by the Department of Human
Services or a tribal child welfare agency away from their parents and for whom the department or
agency has placement and care responsibility, including placements in foster family homes, foster
homes of relatives, group homes, emergency shelters, residential facilities, child care institutions and
preadoptive homes.
(B) “Foster care” does not mean care for children whose parent or guardian voluntarily placed
the child outside the child’s home with a public or private agency and for whom the child’s parent
or guardian retains legal guardianship.
(b)(A) “Person in parental relationship” means an adult who has physical custody of an indi-
vidual or resides in the same household as the individual, interacts with the individual daily, pro-
vides the individual with food, clothing, shelter and incidental necessaries and provides the
individual with necessary care, education and discipline.
(B) “Person in parental relationship” does not mean a person with a power of attorney or other
written delegation of parental responsibilities if the person does not have other evidence of a par-
ental relationship.
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(c) “School district of origin” means the school district where an individual was a resident be-
fore:
(A) The individual was placed into foster care; or
(B) The foster care placement of the individual changed.
(d) “School of origin” means the school that an individual attended before:
(A) The individual was placed into foster care; or
(B) The foster care placement of the individual changed.
(2)(a) Except as provided in subsections (3) to (5) of this section, individuals between the ages
of 4 and 18 shall be considered resident for school purposes in the school district in which their
parents, their guardians or persons in parental relationship to them reside.
(b) Nonemancipated individuals between the ages of 4 and 18 living outside the geographic area
of the school district for such reasons as attending college, military service, hospital confinement
or employment away from home shall be considered resident in the district in which their parents,
their guardians or persons in parental relationship to them reside.
(c) Individuals living temporarily in a school district for the primary purpose of attending a
district school may not be considered resident in the district in which they are living temporarily,
but shall be considered resident in the district in which they, their parents, their guardians or per-
sons in parental relationship to them reside.
(3) Individuals considered legally emancipated from their parents shall be considered resident
in the district in which they actually reside, irrespective of the residence of their parents, their
guardians or persons in parental relationship.
(4)(a) An individual who is between the ages of 4 and 21 and who is placed in foster care shall
be considered a resident of:
(A) The school district of origin; or
(B) The school district where the individual resides due to placement by the Department of
Human Services or a tribal child welfare agency if a juvenile court determines it is not in the best
interest of the individual to continue attending the school of origin or any other school in the school
district of origin, based on consideration of all factors relating to the individual’s best interests.
(b) If a juvenile court makes a determination that it is not in the best interest of the individual
to continue attending the school of origin, the individual shall be immediately enrolled in a new
school, even if the individual is unable to produce records normally required for enrollment.
(c) Individuals who are residents of their school district of origin pursuant to paragraph (a)(A)
of this subsection shall:
(A) Remain in the individual’s school district of origin and, if applicable, the individual’s school
of origin for the duration of the individual’s time in foster care; and
(B) Be provided, free of charge, transportation between the individual’s home and the
individual’s school district of origin or, if applicable, the individual’s school of origin.
(d) The Department of Education, the Department of Human Services, tribal child welfare
agencies and school districts shall collaborate to ensure that the provisions of this subsection are
implemented.
(5)(a) Except as provided in ORS 327.006 (6) and 335.090, an individual whose legal residence is
not within the district but who attends school in the district is considered a resident in the district
in which the individual attends school if the individual receives written consent from :
(A) Both of the affected district school boards as provided by policies adopted by the boards[ .];
or
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(B) The district school board for the district in which the school is located as provided
by section 4 of this 2025 Act.
(b) An individual whose legal residence is not within the district but who attends school in the
district is considered a resident in the district in which the individual attends school if:
(A) The legal residence of the individual had been in the district in which the individual attends
school before a boundary change was made to the district;
(B) The legal residence of the individual is no longer in the district in which the individual at-
tends school because of the boundary change; and
(C) The individual has had the same legal residence and has continuously been enrolled in a
school in the district since the boundary change.
(6)(a) Individuals who are foreign exchange students and who are residing in Oregon in a
dormitory operated by a school district are considered to be residents of the school district in which
the dormitory is located.
(b) For the purpose of this subsection:
(A) An individual may not be considered to be a foreign exchange student for more than one
school year.
(B) An individual may be considered to be a resident of a school district as provided by this
subsection only if, for the 2010-2011 school year, the school district had foreign exchange students
who would have been considered residents under the provisions of this subsection.
(C) The number of individuals who may be considered residents under the provisions of this
subsection may not increase relative to the number who would have been considered residents under
the provisions of this subsection for the 2010-2011 school year.
(c) As used in this subsection, “foreign exchange student” means an individual who attends
school in Oregon under a cultural exchange program and whose parent, guardian or person in par-
ental relationship resides in another country.
SECTION 4.
(1) For purposes of ORS 339.133 (5)(a)(B), a person whose legal residence is
not within a school district but who attends a school in the school district is considered a
resident of that school district if:
(a) The person receives written consent to attend the school from the district school
board where the school is located; and
(b) The school district participates in open enrollment under this section.
(2) Except as provided by subsection (3) of this section, each school district must par-
ticipate in open enrollment. When a school district participates in open enrollment, the dis-
trict school board shall give consent to attend a school of the school district to persons
whose legal residence is not within the school district in the manner provided by this section.
(3) By March 1 of each year, a district school board must make the determination of
whether the district school board will request from the Department of Education a waiver
from participating in open enrollment the following school year. The department shall grant
a waiver if the department finds that the following have been satisfied:
(a) The school district had an open meeting that provided an opportunity for the public
to comment on the request for a waiver;
(b) A majority of the members of the district school board approved a motion to request
a waiver; and
(c) The school district submitted a written request for a waiver to the department and
the request included a demonstration that open enrollment would cause an adverse impact
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to the school district based on either of the following:
(A) The enrollment of resident students in other school districts would compromise the
level of support services provided by the school district to students remaining in the schools
of the school district. The demonstration must include specific estimates of funding loss and
details of loss to support services.
(B) The enrollment of students from other school districts would compromise the efforts
of the school district to deliver quality education to resident students.
(4) If the district school board will give consent because the school district is participat-
ing in open enrollment, the district school board must establish the standards for giving
consent. The standards must:
(a) Identify the number of persons to whom consent will be given for the school year.
The district school board may limit the number of persons to whom consent will be given
based on school, grade or a combination of school and grade.
(b) Allow persons who live within the boundaries of the school district the first opportu-
nity to change to a different school in the school district if the district school board will be
giving consent to attend that school to persons who do not reside within the school district.
(5) A person seeking consent as provided by this section must request consent no later
than April 1 prior to the beginning of the school year for which consent is being requested.
Requests may be submitted before the district school board establishes the standards de-
scribed in subsection (4) of this section, but may not be considered by the district school
board when the district school board establishes the standards.
(6)(a) A district school board must give consent to a person who requests consent unless
the district school board:
(A) Has received a waiver from participating in open enrollment as provided by sub-
section (3) of this section;
(B) Has determined that the person is a resident of a school district for which a waiver
has been granted under subsection (3) of this section;
(C) Has decided to limit the number of persons to whom consent will be given and does
not give consent to the person based on the standards established pursuant to subsection (4)
of this section; or
(D) Is not required to admit the person, as provided by ORS 339.115 (8).
(b) A district school board may not deny consent or give priority based on race, religion,
sex, sexual orientation, gender identity, ethnicity, national origin, disability, health, terms
of an individualized education program, income level, proficiency in the English language,
athletic ability, academic records or residence.
(7) If the number of persons seeking consent exceeds the number of persons to whom the
district school board has determined will be given consent, the district school board shall
give consent based on an equitable lottery selection process. The process may give priority
to persons who have siblings currently enrolled in a school of the school district, but in no
event may a sibling be given priority to any open spot in the schools of the school district
over any persons who reside within the school district.
(8)(a) If a person is considered a resident of the school district as provided by this section
and the person has expressed an interest in attending the schools of another school district
before the end of the school year, the school district that the person is considered a resident
of shall meet with the person and encourage the person to continue to attend the schools
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of the school district for the remainder of the school year.
(b) If a person is considered a resident of the school district as provided by this section,
the school district may not encourage or require the person to attend the schools of another
school district as a condition of avoiding a disciplinary measure, including suspension or ex-
pulsion.
(9)(a) Except as provided by paragraphs (b) and (c) of this subsection, a person who re-
ceives consent and who is considered a resident of a school district as provided by this sec-
tion shall be considered a resident of the school district for all educational purposes. A
person who is considered a resident of the school district as provided by this section shall
continue to be considered a resident of the school district until the person:
(A) Graduates from high school;
(B) Is no longer required to be admitted to the schools of the school district under ORS
339.115; or
(C) Enrolls in a school in a different school district.
(b) A school district is not required to provide transportation outside the boundaries of
the school district to a person who is considered a resident of the school district as provided
by this section, except that a school district:
(A) Must allow persons who are considered residents of the school district as provided
by this section to use existing bus routes and transportation services of the school district.
Costs incurred for transportation provided under this subparagraph are considered approved
transportation costs for purposes of ORS 327.013, except for costs incurred for providing
transportation solely to persons who are considered residents of the school district as pro-
vided by this section if the transportation is provided:
(i) Outside the boundaries of the school district; and
(ii) For the purpose of transporting the persons between home and school.
(B) May provide a stipend for a person who is a member of a low-income family, as de-
fined in ORS 339.147, in an amount that does not exceed the school district’s average cost
per student for transportation.
(C) Must provide transportation if required by federal law. Costs incurred for transpor-
tation provided under this subparagraph are considered approved transportation costs for
purposes of ORS 327.013.
(c) After the first year that a person is considered a resident of a school district as
provided by this section, the district school board may transfer the person to a different
school in the school district. Any transfers must be made consistent with school district
policy and do not affect the status of the person as a resident of the school district.
(10) A district school board shall provide written notification of the attendance of a per-
son who receives consent as provided by this section to the district school board where the
legal residence of the person is located. The written notification required by this subsection
must be provided no later than May 1 prior to the beginning of the school year for which
consent was given.
(11) Nothing in this section:
(a) Requires a district school board to give consent to siblings if the district school board
determines that consent will not be given as provided by subsection (6) of this section.
(b) Prevents a school district from entering into interagency agreements to provide ser-
vices to persons who do not reside in the school district or are not considered residents of
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the school district.
(c) Prevents or otherwise limits a district school board from giving consent to a person
who has received consent from the district school board for the school district in which the
person resides, as provided by ORS 339.133 (5)(a)(A).
SECTION 5.
ORS 339.127 is amended to read:
339.127. (1) A district school board that admits nonresident students by giving consent as de-
scribed in ORS 339.133 [ (5)(a)] (5)(a)(A) may not consider race, religion, sex, sexual orientation,
gender identity, ethnicity, national origin, disability, health, whether a student has an individualized
education program, the terms of an individualized education program, income level, residence, pro-
ficiency in the English language, athletic ability or academic records when:
(a) Determining whether to give consent; or
(b) Establishing any terms of consent.
(2) A district school board that is considering whether to admit a nonresident student by giving
consent may require only the following information prior to deciding whether to give consent:
(a) The name, contact information, date of birth and grade level of the student;
(b) Information about whether the school district may be prevented or otherwise limited from
providing consent as provided by ORS 339.115 (8);
(c) Information about whether the student may be given priority as provided by subsection (4)
of this section; and
(d) Information about which schools the student prefers to attend.
(3)(a) A district school board that is considering whether to admit a nonresident student by
giving consent may not:
(A) Request or require any person to provide or have provided any of the following information
related to a student prior to the district school board deciding whether to give consent to the stu-
dent:
(i) Information about the student’s race, religion, sex, sexual orientation, gender identity,
ethnicity, national origin, disability, health, whether a student has an individualized education pro-
gram, the terms of an individualized education program, income level, residence, proficiency in the
English language or athletic ability; or
(ii) Academic records, including eligibility for or participation in a talented and gifted program
or special education and related services.
(B) Request or require the student to participate in an interview, to tour any of the schools or
facilities of the school district or to otherwise meet with any representatives of a school or a school
district prior to the district school board deciding whether to give consent to the student.
(C) Request any information used to supplement the information described in subsection (2) of
this section prior to deciding whether to give consent to the student.
(b) Nothing in this subsection prevents a student from voluntarily touring any of the schools or
facilities of a school district or from requesting or receiving any information from a school or the
school district.
(4)(a) A district school board that gives consent as described in ORS 339.133 [ (5)(a)] (5)(a)(A)
may limit the number of students to whom consent is given. The district school board must make
the determination whether to limit the number of students to whom consent is given by an annual
date established by the board.
(b) If the number of students seeking consent exceeds any limitations imposed by the district
school board, the board must give consent to students based on an equitable lottery selection pro-
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cess. The process may give priority to students who:
(A) Have siblings currently enrolled in a school of the same school district for which the student
seeks admission;
(B) Previously had received consent as provided by subsection (10) of this section because of a
change in legal residence; or
(C) Attended a public charter school located in the same district for which the student seeks
admission for at least three consecutive years, completed the highest grade offered by the public
charter school and did not enroll in and attend school in another district following completion of
the highest grade offered by the public charter school.
(c) A district school board may revise the maximum number of students to whom consent will
be given at a time other than the annual date established by the board if there are no pending ap-
plications for consent.
(5) A district school board that is requested to give consent to allow a resident student to be
admitted by another school district as described in ORS 339.133 [ (5)(a)] (5)(a)(A) may not consider
race, religion, sex, sexual orientation, gender identity, ethnicity, national origin, disability, health,
whether a student has an individualized education program, the terms of an individualized education
program, income level, residence, proficiency in the English language, athletic ability or academic
records when determining whether to give consent.
(6) If a district school board decides to not give consent to a student, the board must provide
a written explanation to the student.
(7)(a) For a nonresident student who receives consent to be admitted to a school district as de-
scribed in ORS 339.133 [ (5)(a)] (5)(a)(A) , a district school board may:
(A) Determine the length of time for which consent is given; and
(B) Revoke consent for failure to comply with minimum standards for behavior or attendance,
but may not revoke consent for failure to meet standards for academics.
(b) Any limitations in length of time for consent, as allowed under paragraph (a) of this sub-
section, must be applied consistently among all students to whom consent is given. The length of
time for which consent is given shall not be affected by any changes in the legal residence of the
student if the student wishes to continue to attend the schools of the school district.
(c) If consent is revoked as provided by paragraph (a) of this subsection, a student may not re-
quest consent from the same school district that revoked the consent for the school year following
the school year in which the consent was revoked.
(8) For a resident student who receives consent to be admitted to another school district as
described in ORS 339.133 [ (5)(a)] (5)(a)(A) , a district school board may not impose any limitations
on the length of time for which consent is given to the student. The board may not require the
student to receive consent more than one time to be admitted to the same school district, regardless
of any time limitations imposed by the district school board under (7)(a)(A) of this section.
(9)(a) A school district that provides consent to nonresident students to attend the schools of
the school district may not expend moneys received from the State School Fund or as Local Re-
venues, as described in ORS 327.011, to advertise openings for nonresident students if the adver-
tisements are:
(A) Located outside the boundaries of the school district, including advertisements that are
made by signage or billboards; or
(B) Directed to nonresident students, including:
(i) Advertisements that are targeted to nonresident students through direct mail or online mar-
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keting;
(ii) Television or radio advertisements; or
(iii) Newspaper advertisements, unless the advertisement is in a newspaper that primarily serves
the residents of the school district.
(b) Notwithstanding paragraph (a)(A) of this subsection, if a school is located outside the
boundaries of the school district, the school district may advertise openings for nonresident students
on the property of the school.
(c) Nothing in this subsection:
(A) Prohibits a school district from providing information or advertisements to nonresident stu-
dents if the parents of the students request the information or advertisements.
(B) Prohibits a public charter school from advertising openings.
(10) Notwithstanding any other provision of this section, a district school board that is re-
quested to give consent as described in ORS 339.133 [ (5)(a)] (5)(a)(A) must give consent to a student
whose legal residence changes to a different school district:
(a) During the school year, to enable the student to complete the school year in the school dis-
trict; or
(b) During the summer prior to the school year, to enable the student to complete the school
year following the summer in the school district.
(11) Nothing in this section:
(a) Requires a district school board to admit students for whom priority may be given under
subsection (4)(b) of this section if the board imposes limitations on the number of students admitted
by consent.
(b) Prevents a district school board from denying admission to a nonresident student as provided
by ORS 339.115 (8).
(c) Prevents a district school board from requesting information or giving consent to a student
in the event of:
(A) An emergency to protect the health, safety or welfare of the student; or
(B) A hardship of the student, as determined based on rules adopted by the State Board of Ed-
ucation.
(d) Prevents a district school board from establishing minimum standards for behavior and at-
tendance that a student must maintain to remain enrolled in the schools of the school district.
SECTION 6.
(1) Section 4 of this 2025 Act and the amendments to ORS 339.133 by section
3 of this 2025 Act first apply to persons who seek consent for the 2026-2027 school year.
(2) Nothing in section 4 of this 2025 Act or the amendments to ORS 339.133 by section 3
of this 2025 Act affects the status of a person who was considered a resident as provided by
ORS 339.133 (5)(a) prior to the 2026-2027 school year.
EDUCATION SAVINGS ACCOUNTS
SECTION 7. (1) The Department of Education shall develop and implement a policy that
provides for the establishment of education savings accounts for students of this state.
(2) A distribution may be made for a student under this section if the student is a
member of a low-income family, as defined in ORS 339.147.
(3)(a) A parent or legal guardian seeking to receive distributions from an education
savings account must provide notice to the department no later than April 30 prior to the
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beginning of the school year for which distributions are being requested.
(b) A parent or legal guardian who provides notice under this subsection may withdraw
the notice at any time before a distribution is made as provided by this section.
(c) Notifications are valid for one school year only and a parent or legal guardian must
provide notice as provided by paragraph (a) of this subsection for each subsequent school
year.
(4)(a) No later than July 1 prior to the beginning of the school year for which a distrib-
ution is being requested, the department shall:
(A) Deposit in an education savings account designated for the student for which the
request is made an amount that is equal to 80 percent of the amount that the student’s
resident school district would have received for the student; and
(B) Transfer to the student’s resident school district an amount that is equal to 20 per-
cent of the amount that the student’s resident school district would have received for the
student.
(b) For the purposes of this subsection, the amount that the student’s resident school
district would have received for the student shall:
(A) Be based on the school district’s general purpose grant per ADM as calculated under
ORS 327.013; and
(B) Include any additional amounts attributable to the student under ORS 327.013 (1)(c).
(5)(a) Distributions received under this section may be used only for tuition, instructional
materials, tutoring and other educational services or expenses identified by rule of the State
Board of Education.
(b) The State Board of Education shall establish requirements by which a parent or legal
guardian who receives distributions under this section must demonstrate that the distrib-
utions were used as provided by paragraph (a) of this subsection.
(6) A school district is not required to provide transportation outside the boundaries of
the district to a student who is a resident of the district and who seeks to use distributions
under this section for educational expenses outside of the school district, except that a
school district:
(a) Must allow persons who are considered residents of the district to use existing bus
routes and transportation services of the school district. Costs incurred for transportation
provided under this paragraph are considered approved transportation costs for purposes of
ORS 327.013, except for costs incurred for providing transportation solely to persons who are
considered residents of the district if the transportation is provided:
(A) Outside the boundaries of the school district; and
(B) For the purpose of transporting the persons between home and school.
(b) May provide a stipend for a person who is a member of a low-income family, as de-
fined in ORS 339.147, in an amount that does not exceed the school district’s average cost
per student for transportation.
(c) Must provide transportation if required by federal law. Costs incurred for transpor-
tation provided under this paragraph are considered approved transportation costs for pur-
poses of ORS 327.013.
SECTION 8.
Section 7 of this 2025 Act first applies to the 2026-2027 school year.
SECTION 9. Section 7 of this 2025 Act is amended to read:
Sec. 7. (1) The Department of Education shall develop and implement a policy that provides for
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the establishment of education savings accounts for students of this state.
(2) A distribution may be made for a student under this section if the student is a member of :
(a) A low-income family, as defined in ORS 339.147[ .]; or
(b) A household with a yearly federal adjusted gross income that does not exceed $125,000,
as adjusted each January 1 to account for changes in the Consumer Price Index for All Ur-
ban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of
the United States Department of Labor.
(3)(a) A parent or legal guardian seeking to receive distributions from an education savings ac-
count must provide notice to the department no later than April 30 prior to the beginning of the
school year for which distributions are being requested.
(b) A parent or legal guardian who provides notice under this subsection may withdraw the
notice at any time before a distribution is made as provided by this section.
(c) Notifications are valid for one school year only and a parent or legal guardian must provide
notice as provided by paragraph (a) of this subsection for each subsequent school year.
(4)(a) No later than July 1 prior to the beginning of the school year for which a distribution is
being requested, the department shall:
(A) Deposit in an education savings account designated for the student for which the request is
made an amount that is equal to 80 percent of the amount that the student’s resident school district
would have received for the student; and
(B) Transfer to the student’s resident school district an amount that is equal to 20 percent of
the amount that the student’s resident school district would have received for the student.
(b) For the purposes of this subsection, the amount that the student’s resident school district
would have received for the student shall:
(A) Be based on the school district’s general purpose grant per ADM as calculated under ORS
327.013; and
(B) Include any additional amounts attributable to the student under ORS 327.013 (1)(c).
(5)(a) Distributions received under this section may be used only for tuition, instructional ma-
terials, tutoring and other educational services or expenses identified by rule of the State Board of
Education.
(b) The State Board of Education shall establish requirements by which a parent or legal
guardian who receives distributions under this section must demonstrate that the distributions were
used as provided by paragraph (a) of this subsection.
(6) A school district is not required to provide transportation outside the boundaries of the
district to a student who is a resident of the district and who seeks to use distributions under this
section for educational expenses outside of the school district, except that a school district:
(a) Must allow persons who are considered residents of the district to use existing bus routes
and transportation services of the school district. Costs incurred for transportation provided under
this paragraph are considered approved transportation costs for purposes of ORS 327.013, except for
costs incurred for providing transportation solely to persons who are considered residents of the
district if the transportation is provided:
(A) Outside the boundaries of the school district; and
(B) For the purpose of transporting the persons between home and school.
(b) May provide a stipend for a person who is a member of a low-income family, as defined in
ORS 339.147, in an amount that does not exceed the school district’s average cost per student for
transportation.
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(c) Must provide transportation if required by federal law. Costs incurred for transportation
provided under this paragraph are considered approved transportation costs for purposes of ORS
327.013.
SECTION 10.
(1) The amendments to section 7 of this 2025 Act by section 9 of this 2025
Act become operative on January 1, 2027.
(2) The amendments to section 7 of this 2025 Act by section 9 of this 2025 Act first apply
to the 2027-2028 school year.
UNIT CAPTIONS
SECTION 11. The unit captions used in this 2025 Act are provided only for the conven-
ience of the reader and do not become part of the statutory law of this state or express any
legislative intent in the enactment of this 2025 Act.
EFFECTIVE DATE
SECTION 12. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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