Relating to alternative education funding; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.

Imposes excise tax on coffee beans and ground coffee. Requires Department of Revenue to deposit excise tax amounts in Alternative Education Sustainability Fund. Establishes Alternative Education Sustainability Fund. Directs Oregon Military Department to allocate 50 percent of funds to Oregon National Guard Youth Challenge Program for operations and capital construction. Directs Department of Education to use 50 percent of funds to make grants to alternative high school programs for operations and capital construction and, with approval of Governor, to primary schools for primary reading programs. Establishes Alternative Education Sustainability Board to make recommendations for distributions and grant awards. Becomes operative July 1, 2018. Takes effect on 91st day following adjournment sine die.