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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 1590 By: Provenzano
AS INTRODUCED
An Act relating to schools; amending Section 2,
Chapter 272, O.S.L. 2019 (70 O.S. Supp. 2020, Section
5-200), which relates to educat ional management
organizations; subjecting certain public funds to
reporting and auditing requirements and procedures;
authorizing financial, program or compliance audits ;
and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STAT E OF OKLAHOMA:
SECTION 1. AMENDATORY Section 2, Chapter 272, O.S.L.
2019 (70 O.S. Supp. 2020, Section 5 -200), is amended to read as
follows:
Section 5-200. A. As used in this section, "educational
management organization " means a for-profit or nonprofit
organization that receives public funds to provide administration
and management services for a charter school, statewide virtual
charter school or traditional public school.
B. A charter school that contracts with an educational
management organization shall use the Oklahoma Cost Accounting
System (OCAS) to report the total amount paid to an educational
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management organization as well as itemized expenditure information
for the goods or services provided by the management organiz ation as
defined by OCAS expenditure codes, including the total compensation
package of the superintendent including the base salary, insurance,
retirement and other fringe benefits.
C. Any public funds, including, but not limited to, State Aid
allocations, other state-appropriated revenue or other county or
local monies, paid to an educational management organization for
public school functions shall be subject to the same reporting
requirements, financial audits, audit procedures and audit
requirements as a school district. The State Department of
Education or State Auditor and Inspector may conduct financial,
program or compliance audits.
D. Any owner of an educational management organization shall be
required to disclose to the governing board of the school in a
public meeting any ownership position in any business that contracts
or proposes to contract with the same public school that the
educational management organization is managing.
D. E. Whenever any person shall enter into a contract with any
school district or public charter school in the state to teach in
such school district or public charter school the contract shall be
binding on the teacher and on the board of education until the
teacher legally has been discharged from the teaching positi on or
released by the board of education from the contract. Except as
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provided in Section 5 -106A of Title 70 of the Oklahoma Statutes this
title, until such teacher has been thus discharged or released, the
teacher shall not have authority to enter into a contract with any
other board of education in Oklahoma for the same time covered by
the original contract. If upon written complaint by the board of
education in a district any teacher is reported to have failed to
obey the terms of the contract previous ly made and to have entered
into a contract with another board of education, including a public
charter school board of education, without having been released from
the former contract except as provided in Section 5 -106A of Title 70
of the Oklahoma Statut es this title, the teacher, upon being found
to be employed full-time for another public school, including a
public charter school in the state, at a hearing held before the
State Board of Education, shall have such teacher 's certificate
suspended for the remainder of the term for which the contract was
made.
SECTION 2. This act shall become effective November 1, 2021.
58-1-6242 EK 01/14/21