Oklahoma House Bill HB2413

Oklahoma 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23
• Refer: 2/20/23

Caption

Schools; educational management organizations; requiring new contracts only be executed with certain educational management organizations; effective date.

Impact

The implementation of HB 2413, set to take effect on November 1, 2023, is anticipated to have significant implications for how charter schools operate and engage with management organizations. By tightening the requirements for contracting with EMOs, proponents of the bill argue that it will help ensure that educational institutions prioritize transparency and fiscal responsibility. Furthermore, charter schools will now be required to report financial details, including compensation packages for administrators using the Oklahoma Cost Accounting System (OCAS), which could improve oversight and budgeting practices within these schools.

Summary

House Bill 2413 is a notable piece of legislation that amends Section 5-200 of Title 70 of the Oklahoma Statutes, specifically focusing on educational management organizations (EMOs) in relation to charter schools and virtual charter schools. This bill restricts the ability of charter schools and virtual charter schools to contract with educational management organizations, allowing only contracts to be executed with nonprofit organizations or benefit corporations recognized under Oklahoma law. Existing contracts with other types of organizations are permitted to remain in effect until their terms expire or are eligible for renewal. This amendment aims to enhance the accountability and integrity of education management in Oklahoma by ensuring that public funds are administered by organizations with a commitment to nonprofit practices or known corporate benefit standards.

Contention

While the bill has garnered support for its intentions of increasing accountability, there are concerns among opponents who argue that it could limit the options available to charter schools in choosing management partners. The restriction to nonprofit and benefit corporation EMOs may inadvertently exclude potentially effective for-profit organizations that could offer valuable expertise and services. Critics fear that this legislative change may restrict competition among educational management organizations, ultimately impacting the innovation and effectiveness of educational service delivery in Oklahoma.