(1) Prior to contracting with or distributing any public funds to a private alternative education program, a district school board shall:

(a) Annually approve the private alternative education program;

(b) Determine that the private alternative education program is registered with the Department of Education; and

(c) Determine that the private alternative education program complies with the requirements of subsection (2) of this section and ORS § 336.625 (3)(c).

(2) The following laws apply to private alternative education programs that are registered with the Department of Education under ORS § 336.635 in the same manner as the laws apply to school districts and public schools:

(a) Federal law;

(b) ORS § 181A.195, 326.603, 326.607 and 342.223 (criminal records checks);

(c) ORS § 329.496 (physical education);

(d) ORS § 337.150, 339.141, 339.147 and 339.155 (tuition and fees);

(e) ORS § 659.850, 659.855 and 659.860 (discrimination);

(f) ORS § 339.122 (advertisement requirements);

(g) Health and safety statutes and rules; and

(h) Any statute, rule or school district policy that is specified in a contract between the school district board and the private alternative education program.

(3) Prior to placement of a student in a private alternative education program, the resident district shall determine whether the proposed placement best serves the student’s educational needs and interests and assists the student in achieving the district and state academic standards.

(4) Contracts between a school district and a private alternative education program shall be included in the assessment of effectiveness provided for in ORS § 329.085. [1997 c.521 § 11; 1999 c.59 § 84; 2001 c.490 § 3; 2005 c.730 § 15; 2007 c.35 § 5; 2007 c.256 § 4; 2007 c.839 § 6; 2010 c.72 7,8; 2015 c.245 45,46]