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House passes requirement that out-of-state residential placements be inspected and licensed before public funds are used

3556432 · May 27, 2025
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Summary

Senate Bill 982 passed the House to require that out-of-state residential institutions receiving public funds for Oregon students be inspected and licensed by the Oregon Department of Human Services (ODHS) before placement; sponsors said the bill aims to ensure safety without restricting parental choice.

The House passed Senate Bill 982, which requires out-of-state residential institutions that would receive public funds for care or education of Oregon children to be inspected and licensed by the Oregon Department of Human Services (ODHS) prior to placement.

Representative Hudson, who brought SB 982 to the floor, said the measure is aimed at a rare but important set of special-education placements where a district or court order requires an out-of-state residential program. The bill requires ODHS facility inspection and licensing before public funds may be used and is intended to ensure safe living conditions and regular family communication for placed youth.

Hudson emphasized the bill does not restrict parental choice where families independently pay for out-of-state programs that are not in an IEP or court order; nor does it remove current placements from students who are already in out-of-state programs, he said. The sponsor said districts would not be required to perform facility evaluations and would not be compelled to send more students out of state because of the bill.

The House approved SB 982 and the clerk declared the bill passed. Supporters described the change as a consumer-protection and safety measure for vulnerable students who require placements that are not available in-state.