Senate Bill 982 would require school districts to ensure out-of-state residential placements meet Oregon-equivalent licensing and safety standards before using public funds to place students there, State Senator Sarah Gelser Blouin told the House Education Committee at a May 5 public hearing.

Lisa, the committee staff member who gave the measure summary, said the bill "establishes standards under which school districts may use public funds to place a student in an out of state agency. The standards include licensing criteria and the inclusion of certain provisions in the school district's contract with the agency." She also noted the measure "declares an emergency and takes effect on passage."

Senator Gelser Blouin, the bill sponsor, said: "What this bill does not do is create a new pathway to require school districts to pay to put children in private placements, whether in the state or outside of the state." She described the measure as protective of students and school districts, saying districts should have visibility into and assurance about the safety of placements that public funds might cover following due-process or court orders under the Individuals with Disabilities Education Act.

The bill would require school districts to review contracts and ensure the out-of-state setting meets residential-care standards similar to those applied to in-state residential programs — including basic living conditions, access to hygiene and food, and whether students are allowed to contact family — before the district would use public funds for the placement. The measure excludes placements in out-of-state public state schools for the deaf or blind if they meet equivalent standards.

Committee members asked about how the bill interacts with existing processes and liability. Senator Gelser Blouin explained that parents may unilaterally place their child in a private out-of-state residential school and then seek reimbursement via due process or court order; the bill would not create a new reimbursement pathway but would require a safety check before public funds are used. She noted the bill is prospective and does not affect existing placements. Lisa confirmed the Department of Human Services may charge school districts for licensing investigation and oversight costs, describing those charges as reimbursement for actual travel and review costs rather than a licensing fee.

Senator Gelser Blouin recounted past problems in out-of-state residential placements, citing Mount Bachelor Academy and examples from other states where inspection found unsafe or abusive practices. She said the bill aims to give districts and state oversight entities the ability to verify conditions and to make licensing findings visible to protect students and reduce future liability.

No committee vote was taken; the measure was heard in public testimony and remains in committee for further consideration.