(2) When the Superintendent of Public Instruction determines pursuant to rule that an education service district is nonstandard, the district designated nonstandard shall file a plan to meet standards over a specified period of time. The Superintendent of Public Instruction may accept, reject or modify the plan and order the nonstandard district to comply with the plan as approved by the superintendent. Once a plan is approved, the district shall be conditionally standard until all deficiencies are corrected. If a district corrects all deficiencies, the district shall be designated as standard. The district shall have 180 days from the date the plan is accepted to make all corrections. After that time, the Superintendent of Public Instruction may impose sanctions on the district if the district has not made the necessary corrections.

(3) The state board shall establish by rule appropriate sanctions for noncompliance. The sanctions may include:

(a) Mandatory merger of the nonstandard education service district with a contiguous education service district that is standard;

(b) The sanctions described in ORS 342.173, if applicable;

(c) The withholding of funds from the State School Fund;

(d) The removal of the superintendent of the education service district;

(e) The temporary governance of the education service district by the state board; or

(f) Dissolution of the education service district. [1975 c.477 §3; 1989 c.491 §21; 1993 c.784 §16; 1999 c.1054 §1; 2011 c.705 §38]