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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2755 By: Echols of the House
and
David of the Senate
COMMITTEE SUBSTITUTE
An Act relating to s chools; amending 70 O.S. 2011,
Section 15-101, which relates to school bonds;
requiring school districts to give charter schools
the opportunity to submit capital projects for bond
proposals; directing charter schools and school
districts to collaborate fo r certain purpose;
declaring certain capital project properties shall be
owned by the school district; providing the charter
school shall maintain possession and control of the
property under certain circumstances; directing
school districts to assume prop erty under certain
circumstances; defining terms; amending 70 O.S. 2011,
Sections 3-136, as amended by Section 1, Chapter 277,
O.S.L. 2014 and 3-142, as last amended by Section 1,
Chapter 122, O.S.L. 2020 (70 O.S. Supp. 2020,
Sections 3-136 and 3-142), which relate to the
Oklahoma Charter Schools Act; modifying charter
school authority to issue bonds; and providing an
effective date.
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BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2011, Sect ion 15-101, is
amended to read as follows:
Section 15-101. A. Whenever it shall become necessary for the
board of education of any school district to raise sufficient funds
for the purchase of a school site or sites, or to erect or purchase
and equip a suitable school building or buildings, either or both,
or for the purpose of making repairs to an existing school building
or buildings, or for the purchase of school furniture and fixtures,
or for making improvements to any school site or sites, either or
both, it shall be lawful for such board of education to borrow money
for which it is hereby authorized and empowered to issue bonds
bearing a rate of interest not exceeding seven percent (7%) per
annum, payable semiannually, at such place as may be shown o n the
face of such bonds, which bonds shall be payable serially as
otherwise provided by law in not more than twenty -five (25) years
from date; and the board of education is hereby authorized and
empowered to sell such bonds at not less than their par valu e;
provided, before any bonds shall be issued, the board of education
shall cause an election to be held in such district as herein
provided; provided, further, bonds may be voted in one issue and at
the same election for any or all of the purposes hereinb efore
enumerated.
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B. Prior to causing an election on a bond proposal to be held,
any school district that sponsors a charter school pursuant to
paragraph 1 of subsection A of Section 3 -132 of this title shall
give its sponsored charter schools the opportu nity to submit capital
projects beneficial to the charter school for inclusion in the bond
proposal. If a sponsored charter school submits capital projects
for inclusion in the bond proposal, the board of education of the
school district and the charter s chool shall collaborate to ensure
that the value of the charter school's capital projects in the bond
proposal is at least proportional, as a percentage of the value of
the entire bond proposal, to the percentage of total students that
are enrolled in the charter school.
C. Any property purchased as the result of a capital project
submitted by a sponsored charter school shall be owned by the school
district that issued the bonds. Except as otherwise provided in
this subsection, the charter school submitti ng the capital project
shall maintain possession and control of such property until
termination of or failure to renew the charter school contract as
provided in Section 3 -137 of this title or the charter school fails
to continue operations. Provided that , if a charter continues
operation within the physical boundaries of the original school
district sponsor under a new charter sponsored by an entity
authorized pursuant to Section 3 -132 of this title, the charter
school may maintain possession and control of the property for use
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in the operation of the charter school until termination of or
failure to renew the subsequent charter school contract or the
charter school fails to continue operations. Upon termination of or
failure to renew the subsequent chart er school contract or failure
to continue operations, possession and control of all property
purchased with bond proceeds shall be assumed by the school district
that owns the property.
D. For purposes of this section:
1. "Capital project" shall mean pur chasing a school site or
sites, erecting or purchasing and equipping a suitable school
building or buildings, making repairs to an existing school building
or buildings, purchasing school furniture and fixtures, making
improvements to any school site or si tes, or purchasing school
equipment including such equipment as enumerated in Sections 15 -106
and 15-106.1 of this title; and
2. "Total students" shall mean the sum of the number of
students enrolled in traditional schools within the school district
plus the number of students enrolled in charter schools sponsored by
the school district.
SECTION 2. AMENDATORY 70 O.S. 2011, Section 3 -136, as
amended by Section 1, Chapter 277, O.S.L. 2014 (70 O.S. Supp. 2020,
Section 3-136), is amended to read as follows:
Section 3-136. A. A charter school shall adopt a charter which
will ensure compliance with the following:
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1. A charter school shall comply with all federal regulations
and state and local rules and statutes relating to health, sa fety,
civil rights and insurance. By January 1, 2000, the State
Department of Education shall prepare a list of relevant rules and
statutes which a charter school must comply with as required by this
paragraph and shall annually provide an update to the l ist;
2. A charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations.
A sponsor may not authorize a charter school or program that is
affiliated with a nonpublic sectarian school or religious
institution;
3. The charter school may provide a comprehensive program of
instruction for a prekindergarten program, a kindergarten program or
any grade between grades one and twelve. Instruction may be
provided to all persons between the ages of four (4 ) and twenty-one
(21) years. A charter school may offer a curriculum which
emphasizes a specific learning philosophy or style or certain
subject areas such as mathematics, science, fine arts, performance
arts, or foreign language. The charter of a charte r school which
offers grades nine through twelve shall specifically address whether
the charter school will comply with the graduation requirements
established in Section 11 -103.6 of this title. No charter school
shall be chartered for the purpose of offe ring a curriculum for deaf
or blind students that is the same or similar to the curriculum
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being provided by or for educating deaf or blind students that are
being served by the Oklahoma School for the Blind or the Oklahoma
School for the Deaf;
4. A charter school shall participate in the testing as
required by the Oklahoma School Testing Program Act and the
reporting of test results as is required of a school district. A
charter school shall also provide any necessary data to the Office
of Accountability;
5. Except as provided for in the Oklahoma Charter Schools Act
and its charter, a charter school shall be exempt from all statutes
and rules relating to schools, boards of education, and school
districts;
6. A charter school, to the extent possible, sha ll 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. A ch arter school shall
use the Oklahoma Cost Accounting System to report financial
transactions to the sponsoring school district;
7. A charter school shall comply with all federal and state
laws relating to the education of children with disabilities in the
same manner as a school district;
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8. A charter school shall provide for a governing body for the
school which shall be responsible for the policies and operational
decisions of the charter school;
9. A charter school shall not be used as a method of gene rating
revenue for students who are being home schooled and are not being
educated at an organized charter school site;
10. A charter school may not charge tuition or fees;
11. A charter school shall provide instruction each year for at
least the number of days required in Section 1 -109 of this title;
12. A charter school shall comply with the student suspension
requirements provided for in Section 24 -101.3 of this title;
13. A charter school shall be considered a school district for
purposes of tort liability under The Governmental Tort Claims Act;
14. Employees of a charter school may participate as members of
the Teachers' Retirement System of Oklahoma in accordance with
applicable statutes and rules if otherwise allowed pursuant to law;
15. A charter school may participate in all health and related
insurance programs available to the employees of the sponsor of the
charter school;
16. A charter school shall comply with the Oklahoma Open
Meeting Act and the Oklahoma Open Records Act;
17. The governing body of a charter school shall be subject to
the same conflict of interest requirements as a member of a local
school board; and
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18. No later than September 1 each year, the governing board of
each charter school formed pursuant to the Oklahoma Charte r Schools
Act shall prepare a statement of actual income and expenditures for
the charter school for the fiscal year that ended on the preceding
June 30, in a manner compliant with Section 5 -135 of this title.
The statement of expenditures shall include f unctional categories as
defined in rules adopted by the State Board of Education to
implement the Oklahoma Cost Accounting System pursuant to Section 5 -
145 of this title. Charter schools shall not be permitted to submit
estimates of expenditures or prorat ed amounts to fulfill the
requirements of this paragraph.
B. The charter of a charter school shall include a description
of the personnel policies, personnel qualifications, and method of
school governance, and the specific role and duties of the sponsor
of the charter school.
C. The charter of a charter school may be amended at the
request of the governing body of the charter school and upon the
approval of the sponsor.
D. A charter school may enter into contracts and sue and be
sued.
E. The governing body of a charter school may not levy taxes or
issue bonds; provided, however, a charter school sponsored by the
board of education of a school district may submit capital projects
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for inclusion in the school district's bond proposal as provided in
Section 15-101 of this title.
F. The charter of a charter school shall include a provision
specifying the method or methods to be employed for disposing of
real and personal property acquired by the charter school upon
expiration or termination of the charter or failure of the charter
school to continue operations. Except as otherwise provided, any
real or personal property purchased with state or local funds shall
be retained by the sponsoring school district. If a charter school
that was previously sponsored by the board of education of a school
district continues operation within the school district under a new
charter sponsored by an entity authorized pursuant to Section 3 -132
of this title, the charter school may retain any personal property
purchased with state or local funds for use in the operation of the
charter school until termination of the new charter or failure of
the charter school to continue operations.
SECTION 3. AMENDATORY 70 O.S. 2011, Section 3 -142, as
last amended by Section 1, Chapter 122, O.S.L. 2020 (70 O.S. Supp.
2020, Section 3-142), is amended to read as follows:
Section 3-142. A. For purposes of funding, a charter school
sponsored by a board of education of a school district shall be
considered a site within the school district in which the charter
school is located. The student membership of the charter school
shall be considered separate from the student membership of the
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district in which the charter school is located for the purpose of
calculating weighted average daily membership pursuant to Section
18-201.1 of this title and State Aid pursuant to Section 18 -200.1 of
this title. For charter schools sponsored by a board of education
of a school district, the sum of the separate calculations for the
charter school and the school district shall be used to determine
the total State Aid allocation for the district in which the charter
school is located. A charter school shall receive from the
sponsoring school district, the State Aid allocation and any other
state-appropriated revenue generated by its students for the
applicable year, less up to three percent (3%) of the State Aid
allocation, which may be retained by the school district as a fee
for administrative services rendered. For charter schools spons ored
by the board of education of a technology center school district, a
higher education institution, the State Board of Education, or a
federally recognized Indian tribe and for statewide virtual charter
schools sponsored by the Statewide Virtual Charter School Board, the
State Aid allocation for the charter school shall be distributed by
the State Board of Education and not more than three percent (3%) of
the State Aid allocation may be charged by the sponsor as a fee for
administrative services rendered . The State Board of Education
shall determine the policy and procedure for making payments to a
charter school. The fee for administrative services as authorized
in this subsection shall only be assessed on the State Aid
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allocation amount and shall not be assessed on any other
appropriated amounts. A sponsor of a charter school shall not
retain any additional State Aid allocation or charge the charter
school any additional fee above the amounts allowed by this
subsection unless the additional fees are f or additional services
rendered. The charter school sponsor shall provide to the State
Department of Education financial records documenting any state
funds retained by the sponsor for administrative services rendered
for the previous year.
B. 1. The weighted average daily membership for the first year
of operation of a charter school shall be determined initially by
multiplying the actual enrollment of students as of August 1 by
1.333. The charter school shall receive revenue equal to that which
would be generated by the estimated weighted average daily
membership calculated pursuant to this paragraph. At midyear, the
allocation for the charter school shall be adjusted using the first
quarter weighted average daily membership for the charter school
calculated pursuant to subsection A of this section.
2. For the purpose of calculating weighted average daily
membership pursuant to Section 18 -201.1 of this title and State Aid
pursuant to Section 18 -200.1 of this title, the weighted average
daily membership for the first year of operation and each year
thereafter of a full -time virtual charter school shall be determined
by multiplying the actual enrollment of students as of August 1 by
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1.333. The full-time virtual charter school shall receive revenue
equal to that which would be generated by the estimated weighted
average daily membership calculated pursuant to this paragraph. At
midyear, the allocation for the full -time virtual charter school
shall be adjusted using the first quarter weighted average dail y
membership for the virtual charter school calculated pursuant to
subsection A of this section.
C. A charter school shall be eligible to receive any other aid,
grants or revenues allowed to other schools. A charter school
sponsored by the board of educa tion of a technology center school
district, a higher education institution, the State Board of
Education, or a federally recognized Indian tribe shall be
considered a local education agency for purposes of funding. A
charter school sponsored by a board o f education of a school
district shall be considered a local education agency for purposes
of federal funding.
D. A charter school, in addition to the money received from the
state, may receive money from any other source. Any unexpended
funds may be reserved and used for future purposes. The governing
body of a charter school shall not levy taxes or issue bonds ;
provided, however, a charter school sponsored by the board of
education of a school district may submit capital projects for
inclusion in the school district's bond proposal as provided in
Section 15-101 of this title. If otherwise allowed by law, the
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governing body of a charter school may enter into private contracts
for the purposes of borrowing money from lenders. If the governing
body of the charter school borrows money, the charter school shall
be solely responsible for repaying the debt, and the state or the
sponsor shall not in any way be responsible or obligated to repay
the debt.
E. Any charter school which chooses to lease property sh all be
eligible to receive current government lease rates.
F. Except as otherwise provided in this subsection, each
charter school shall pay to the Charter School Closure Reimbursement
Revolving Fund created in subsection G of this section an amount
equal to Five Dollars ($5.00) per student based on average daily
membership, as defined by paragraph 2 of Section 18 -107 of this
title, during the first nine (9) weeks of the school year. Each
charter school shall complete the payment every school year within
thirty (30) days after the first nine (9) weeks of the school year.
If the Charter School Closure Reimbursement Revolving Fund has a
balance of One Million Dollars ($1,000,000.00) or more on July 1, no
payment shall be required the following school year.
G. There is hereby created in the State Treasury a revolving
fund for the State Department of Education to be designated the
"Charter School Closure Reimbursement Revolving Fund". The fund
shall be a continuing fund, not subject to fiscal year limitation s,
and shall consist of all monies received by the State Department of
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Education from charter schools as provided in subsection F of this
section. All monies accruing to the credit of said fund are hereby
appropriated and may be budgeted and expended by t he State
Department of Education for the purpose of reimbursing charter
school sponsors for costs incurred due to the closure of a charter
school. Expenditures from said fund shall be made upon warrants
issued by the State Treasurer against claims filed a s prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment. The State Department of
Education may promulgate rules regarding sponsor eligibility for
reimbursement.
SECTION 4. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 03/01/2021 - DO PASS,
As Amended and Coauthored.