HB3432 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 2nd Session of the 58th Legislature ( 2022) HOUSE BILL 3432 By: Kerbs, Baker, Sims and Hilbert AS INTRODUCED An Act relating to agriculture; designating the Oklahoma Department of Agricultur e, Food, and Forestry as the state educational agency refer enced by the National School Lunch Act ; providing that the Oklahoma Department of Agriculture, Food, and Forestry may secure and administer the benefits of the National School Lunch Act ; directing the Oklahoma Department of Agriculture, Food, and Forestry to provide general supervision of the school lunch program; creating the School Lunch Workshop Revolving Fund; providing for the allocation of funds for the school lunch program ; amending 70 O.S. 2 021, Section 3-104, which relates to the State Board of Education's powers and duties; removing the State Board of Education from overseeing and administering school lunch program under the National School Lunch Act; repealing 70 O.S. 2021, Section 3 -119, which relates to the school lunch program ; providing for codification; and providing an effective dat e. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of l aw to be codified in the Oklahoma Statutes as Section 3041 of Title 2, unless there is created a duplication in numbering, reads as follows: HB3432 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The Oklahoma Department of Agriculture, Food, and Forestry shall: 1. Be and is hereby designated as the "State Educational Agency" referred to in Public Law 396 of the 79th Congress of the United States, which law states that said act may be cited as the "National School Lunch Act ", and said Oklahoma Department of Agriculture, Food, and Forestry is hereby authorized and directed to accept the terms and provisions of said act and to enter into such agreements, not in conflict with the Constitu tion of Oklahoma or the Constitution and statutes of the United States, as may be necessary or appropriate to secure for the State of Oklahoma the benefits of the school lunch program established and referred to in said act; 2. Have authority to secure a nd administer the benefits of the National School Lunch Act, Public Law 396 of the 79th Congress of the United States, in the State of Oklahoma and is hereby aut horized to employ or appoint and fix the compensation of such additional officers or employees and to incur such expenses as may be necessary for the accomplishment of the above purpose, administer the distribution of any state funds appropriated by the Le gislature required as federal matching to reimburse o n children's meals; and 3. Have general supervision of the school lunch program. The Oklahoma Department of Agriculture , Food, and Forestry may sponsor workshops for personnel and participants in the s chool lunch program and may develop, print, and distribute free of charge or sell any HB3432 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 materials, books, and bulletins to be used in such school lunch programs. There is hereby created in the State Treasury a revolving fund for the Oklahoma Department of Agriculture, Food, and Forestry, to be designated the "School Lunch Workshop Revolving Fund". The fund shall consist of all fees derived from or on behalf of any participant in any such workshop sponsored by the Oklahoma Department of Agriculture , Food, and Forestry, or from the sale of any materials, books , and bulletins, and such funds shall be disbursed for expenses of such workshops and for developing, printing, and distributing such materials, books , and bulletins related to the school lunch program. The fund shall be administered in accordance with Sec tion 155 of Title 62 of the Oklahoma Statutes. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3042 of Title 2, unless there is created a duplication in numbering, reads as follows: Funds appropriated to the Oklahoma Department of Agriculture, Food, and Forestry for school lunch matching and the school lunch program shall be apportioned by the Oklahoma Department of Agriculture, Food, and Forestry to each school district for the purpose of providing meals for children in complianc e with the National School Lunch Act and the Chil d Nutrition Act of 1966 and Public Law 91-248, as they may hereafter be amended or supplemented. SECTION 3. AMENDATORY 70 O.S. 2021, Section 3-104, is amended to read as follows: HB3432 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 3-104. A. The supervision of the public s chool system of Oklahoma shall be vested in the State Board of Education and, subject to limitations otherwise pro vided by law, the State Board of Education shall: 1. Adopt policies and make rules for the o peration of the public school system of the state ; 2. Appoint, prescribe the duties and fix the compensation of a secretary, an attorney and all other personnel n ecessary for the proper performance of the functions of the State Board of Education. The secretary shall not be a member of the Board; 3. Submit to the Governor a departmental budget based upon major functions of the Department as prepared by the State Superintendent of Public Instruction and supported by detailed data on needs and proposed ope rations as partially determined by the budgetary needs of local school districts filed with the State Board of Education for the ensuing fiscal year. Appropriatio ns therefor shall be made in lump -sum form for each major item in the budget as follows: a. State Aid to schools, b. the supervision of all ot her functions of general and special education including general control, free textbooks, school lunch, Indian edu cation and all other functions of the Board and an am ount sufficient to adequately staff and administer these services, and HB3432 HFLR Page 5 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 c. the Board shall determine the details by which the budget and the appropriations are administered. Annually, the Board shall mak e preparations to consolidate all of the functions of the Department in such a way that the b udget can be based on two items, administration and aid to schools. A maximum amount for administration shall be designated as a part of the total appropriation; 4. On the first day of December preceding each regul ar session of the Legislature, prepare a nd deliver to the Governor and the Legislature a report for the year ending June 30 immediately preceding the regular session of the Legislature. The report shall contain: a. detailed statistics and other informatio n concerning enrollment, attendance, exp enditures including State Aid, and other pertinen t data for all public schools in this state, b. reports from each and every division within the State Department of Education as submitted by the State Superintendent of Public Instruction and any other division, department, institution or other agency under the supervision of the Board, c. recommendations for the improvement of the public school system of the state, HB3432 HFLR Page 6 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 d. a statement of the receipts and expenditures of th e State Board of Education for the past year, and e. a statement of plans and recommendat ions for the management and improvement of public schools and such other information relating to the educational interests of the state as may be deemed necessary and desirable; 5. Provide for the formulati on and adoption of curricula, courses of study and other instructional aids necessary for the adequate instruction of pupils in the public schools; 6. Have authority in matters pertaining to the licensure and certification of persons for instructional, su pervisory and administrative positions and servic es in the public schools of the state subject to the provisions of Section 6 -184 of this title, and shall formulate rules governing the issuance and revocation of certificates for superintendents of schools, principals, supervisors, librarians, clerical em ployees, school nurses, school bus drivers, visiting teachers, classroom teachers and for other personnel performing instructional, administrative and supervisory services, but not including members of board s of education and other employees who do not wor k directly with pupils, and may charge and collect reasonable fees for the issuance of such certificates: a. the State Department of Education shall not issue a certificate to and shall revoke the certificat e of any HB3432 HFLR Page 7 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 person who has been convicted, whether u pon a verdict or plea of guilty or upon a plea of nolo contendere, or received a suspended sentence or any probati onary term for a crime or an attempt to commit a crim e provided for in Section 843.5 of Title 21 of the Oklahoma Statutes if the offense invol ved sexual abuse or sexual exploitation as those terms are defined in Section 1-1-105 of Title 10A of the Oklahoma Statutes, Section 741, 843.1, if the offense include d sexual abuse or sexual exploitation, 8 65 et seq., 885, 888, 891, 1021, 1021.2, 1021.3, 1040.13a, 1087, 1088, 1111.1, 1114 or 1123 of Title 21 of the Oklahoma Statutes or who enters this state and who h as been convicted, received a suspended sentence or r eceived a deferred judgment for a crime or attempted crime which, if committed or attempt ed in this state, would be a crime or an attempt to commit a crime provided for in any of said laws, and b. all funds collected by the State Department of Education for the issuance of certificates to instructional, supervisory and administrative personnel in the public schools of the state shall be deposited in the "Teachers' Certificate Fund" in the State Treasury and may be expended by the State Board HB3432 HFLR Page 8 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of Education to finance the activities of the State Department of Education necessary to administer the program, for consultative services, publication costs, actual and necessary travel expenses as provided in the State Travel Reimbursement Act incurred by persons performing research work, and other expenses found necessary by the State Board of Education f or the improvement of the preparation and certification of teachers in Oklahoma. Provided, any unobligated balance in the Teachers' Certificate Fund in excess of Ten Thousand Dollars ($10,000.00) on June 30 of any fiscal year shall be transferred to the G eneral Revenue Fund of the State of Oklahoma. Until July 1, 1997, the State Board of Education shall have authority for approval of teacher education programs. The State Board of Education shall also have authority for the administration of teacher resid ency and professional development, subject to the provisions of the Oklahoma Teacher Preparation Act; 7. Promulgate rules governing the classification, inspection, supervision and accrediting of all public nursery, kindergarten, elementary and secondary s chools and on-site educational services provided by public school districts or state -accredited private schools in partial hospitalization programs, day treatment prog rams, HB3432 HFLR Page 9 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 and day hospital programs as defin ed in this act for persons between the ages of three (3) and twenty-one (21) years of age in the state. However, no school shall be denied accreditation solely on the basis of average daily attendance. Any school district which maintains an elementary sch ool and faces the necessity of relocating its sch ool facilities because of construction of a lake, either by state or federal authority, which will inundate the sc hool facilities, shall be entitled to receive probationary accreditation from the State Board of Education for a period of five (5) years afte r the effective date of this act and any school district, otherwise qualified, shall be entitled to receive probationary accreditation from the State Board of Educatio n for a period of two (2) consecutive ye ars to attain the minimum average daily attendanc e. The Head Start and public nurseries or kindergartens operated from Community Action Program funds shall not be subjected to the accrediting rules of the State Boar d of Education. Neither will the State Board of Education make rules affecting the operation of the public nurseries and kindergartens operated from federal funds secured through Community Action Programs even though they may be operating in the public sc hools of the state. However, any of the Head Start or public nurseries or kindergartens operated under federal regulations may make application for accrediting from the State Board of Education but will be accredited only if application for the approval o f the HB3432 HFLR Page 10 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 programs is made. The status of n o school district shall be changed which will reduce it to a lower classification until due notice has been given to the proper authorities thereof and an opportun ity given to correct the conditions which otherwise w ould be the cause of such reduction. Private and parochial schools may be accredited and classified in like manner as public schools or, if an accrediting association is approved by the State Board of Ed ucation, by procedures established by the State Board of Education to accept accreditation by such accrediting association, if application is made to the State Board of Education for such accrediting; 8. Be the legal agent of the State of Oklahoma to acce pt, in its discretion, the provisions of any Act of C ongress appropriating or apportioning funds which are now, or may hereafter be, provided for use in connection with any phase of the system of public education in Oklahoma. It shall prescribe such rules as it finds necessary to provide for the proper dist ribution of such funds in accordance with the state and federal laws; 9. Be and is specifically hereby designated as the agency of this state to cooperate and deal with any officer, board or authority of the United States Government under any law of the United States which may require or recomm end cooperation with any state board having charg e of the administration of public schools unless otherwise provided by law; HB3432 HFLR Page 11 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 10. Be and is hereby designated as th e "State Educational Agency" referred to in Public La w 396 of the 79th Congress of the United States, which law states that said act may be ci ted as the "National School Lunch Act ", and said State Board of Education is hereby authorized and directed to acc ept the terms and provisions of said act and to enter into such agreements, not in conflict w ith the Constitution of Oklahoma or the Constitut ion and Statutes of the United States, as may be necessary or appropriate to secure for the State of Oklahoma the benefits of the school lunch program established and referred to in said act; 11. Have authority to secure and administer the benefits of th e National School Lunch Act, Public Law 396 of the 79th Congress of the United States, in the State of Oklahoma and is hereby authorized to employ or appoint and fix th e compensation of such additional officers or employees and to incur such expenses as ma y be necessary for the accomplishment of the above purpose, administer the distribution of any state funds appropri ated by the Legislature required as federal matching to reimburse on children's meals; 12. Accept and provide for the administration of any land, money, buildings, gifts, donation or other things of value which may be offered or bequeathed to the schools under the supervision or control of said Board; 13. 11. Have authority to require persons ha ving administrative control of all school distr icts in Oklahoma to make such regular and HB3432 HFLR Page 12 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 special reports regarding the activities of the schools in said districts as the Board may deem needful for the proper exercise of its duties and functions. Such auth ority shall include the right of the State Board of Education to withhold all state funds under its control, to withhold official recognition, including accreditin g, until such required reports have been filed and ac cepted in the office of said Board and t o revoke the certificates of persons failing or refusing to make such reports; 14. Have general supervision of the school lunch program. The State Board of Educa tion may sponsor workshops for personnel and participants in the school lunch program and may develop, print and distribute free of charge o r sell any materials, books and bulletins to be used in such school lunch programs. There is hereby created in the State Treasury a revolving fund for the Board, to be designated the School Lunch Workshop Rev olving Fund. The fund shall consist of all fees derived from or on behalf of any participant in any such workshop sponsored by the State Board of Education, or fr om the sale of any materials, books and bulletins, an d such funds shall be disbursed for expe nses of such workshops and for developing, printing and distributing of such materials, books and bulletins relating to the school lunch program. The fund shall b e administered in accordance with Section 155 of Titl e 62 of the Oklahoma Statutes; HB3432 HFLR Page 13 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 15. 12. Prescribe all forms for school district and co unty officers to report to the State Board of Education where required. The State Board of Education shall also pres cribe a list of appropriation accounts by which the f unds of school districts shall be budgeted, accounted for and expended; and it shall b e the duty of the State Auditor and Inspector in prescribing all budgeting, accounting and reporting forms for school funds to conform to such lists; 16. 13. Provide for the establishment of a uniform system o f pupil and personnel accounting, records and reports; 17. 14. Have authority to provide for the health and safety of school children and school personnel while u nder the jurisdiction of school authorities; 18. 15. Provide for the supervision of the tran sportation of pupils; 19. 16. Have authority, upon request of the local school board, to act in behalf of the public schools of the state in the purchase of transportation equipment; 20. 17. Have authority and is h ereby required to perform all duties necessary to the administration of the publi c school system in Oklahoma as specified in the Oklahoma School Code; and, in addition thereto, those duties not specifica lly mentioned herein if not delegated by law to any o ther agency or official; HB3432 HFLR Page 14 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 21. 18. Administer the State Public Common School Buil ding Equalization Fund established by Section 32 of Article X of the Oklahoma Constitution. Any monies as may be appropria ted or designated by the Legislature, other than ad v alorem taxes, any other funds identified by the State Department of Education, w hich may include, but not be limited to, grants -in-aid from the federal government for building purposes, the proceeds of a ll property that shall fall to the state by escheat, penalties for unlawful holding of real estate by corporations, and capital gains on assets of the permanent school funds, shall be deposited in the State Public Common School Building Equalization Fund. The fund shall be used to aid school districts and c harter schools in acquiring buildings, subject to the limitations fixed by Secti on 32 of Article X of the Oklahoma Constitution. It is hereby declared that the term "acquiring buildings" as used in Section 32 of Article X of the Oklahoma Constitution shal l mean acquiring or improving school sites, constructing, repairing, remodeling or equipping buildings, or acquiring school furniture, fixtures, or equipment. It is hereby declared that the term "school districts" as used in Section 32 of Article X of the Oklahoma Constitution shall mean school districts and eligible charter schools as defined in subsection B of this section. The State Board of Education shall disburse redbud school grants annually from the State Public Common School Building Equalization Fund to public schools and eligible cha rter schools HB3432 HFLR Page 15 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 pursuant to subsection B of this section. The Board shall promulgate rules for the implementation of disbursing redbud school grants pursuant to this section. The State Board of Education shall prescribe rules for making grants of aid from, and for otherwise administering, the fun d pursuant to the provisions of this paragraph, and may employ and fix the duties and compensation of technicians, aides, c lerks, stenographers, attorneys and other personnel deemed necessary to carry out the provisi ons of this paragraph. The cost of admi nistering the fund shall be paid from monies appropriated to the State Board of Education for the operation of the State De partment of Education. From monies apportioned to the fund, the State Department of Educatio n may reserve not more than one -half of one percent (1/2 of 1%) for purposes of administering the fund; 22. 19. Recognize that the Director of the Oklahoma Depart ment of Corrections shall be the administrative autho rity for the schools which are maintained in the state reformatories and shall appoint the principals and teachers in such schools. Provided, that rules of the State Board of Education for the classific ation, inspection and accreditation of public schools shall be applicable to such schools; and such schools shall comply with standa rds set by the State Board of Education; and 23. 20. Have authority to administer a revolving fund which is hereby created in the State Treasury, to be designated the HB3432 HFLR Page 16 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Statistical Services Revolving Fund. The fund sh all consist of all monies received from the various school districts of the state, the United States Government, and other sources for the purpose of furnishing or financing statistical services and for any other purpose as designated by the Legislature. The State Board of Education is hereby authorized to enter into agreements with school districts, municipalities, the United States Government, foundations and other agencies or individuals for services, programs or research projects. The Statistical Serv ices Revolving Fund shall be administered in accordance with Section 155 of Title 62 of the Oklahoma Statutes. B. 1. The redbud school grants shall be determined by the State Department of Education as follows: a. divide the county four-mill levy revenue by four to determine the nonchargeabl e county four-mill revenue for each school district, b. determine the amount of new revenue generated by the five-mill building fund levy as authorized by Section 10 of Article X of the Oklahoma Constitution for each school district as reported in the Okla homa Cost Accounting System for the preceding fiscal year, c. add the amounts calculated in subparagraphs a and b of this paragraph to determine the nonchargeable millage for each school district, HB3432 HFLR Page 17 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 d. add the nonchargeable millage in each district statewide as calculated in subparagraph c of this paragraph and divide the total by the average daily membership in public schools sta tewide based on the preceding school year 's average daily membership, according to the provis ions of Section 18-107 of this title. This amount is the statewide nonchargeable millage per student, known as the baseline local funding per student, e. all eligible charter schools shall be included in these calculations as unique school districts, separate from the school district that may sponsor the eligible charter school, and the total number of districts shall be used to determine the statewide average baseline local funding per student, f. for each school district or eligible charter school which is below the baseline local funding pe r student, the Department shall subtract the baseline local funding per student from the average nonchargeable millage per student of the school district or eligible charter school to determine the nonchargeable millag e per student shortfall for each distr ict, and g. the nonchargeable millage per student shortfall for a school district or eligible charter school shall be HB3432 HFLR Page 18 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 multiplied by the average daily membership of the preceding school year of the eligible school distr ict or eligible charter school. This amount shall be the redbud school grant amount for the school district or eligible charter school. 2. For fiscal year 2022, monies for the redbud school grants shall be expended from the funds apportioned pursuant to Section 2 426 of this act Title 63 of the Oklahoma Statutes . For fiscal year 2023 and each subsequent fiscal year, monies for the redbud school grants shall be appropriated pursuant to Section 2 426 of this act Title 63 of the Oklahoma Statutes, not to exceed three-fourths (3/4) of the tax collected in the preceding fiscal year pursuant to Section 426 of Title 63 of the Oklahoma Statutes as determined by the Oklahoma Tax Commission. For fiscal year 2023 and each subsequent fiscal year, if such appropriated funds are insufficient to fund the redbud school grants, then an additional apportionment of funds shall be made from sales tax collections as provided by subsection D of Section 3 1353 of this act Title 68 of the Oklahoma Statutes. If both funds are ins ufficient, the Department shall promulgate rules to permit a decrease to the baseline local funding per student to the highest amount allowed with the f unding available. 3. As used in this section, "eligible charter school" shall mean a charter school whi ch is sponsored pursuant to the provisions HB3432 HFLR Page 19 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of the Oklahoma Charter School Act. Provided, however, "eligible charter school" shall not include a charter school sponsored by the Statewide Virtual Charter School Board but shall only include those which provide in-person or blended instruction, as provided by Section 1-111 of this title, to not less than two -thirds (2/3) of students as the primary means of i nstructional service delivery. 4. The Department shall develop a program to acknowledge the redbud school grant recipients and shall include elected members of the Oklahoma House of Representatives and Oklahoma State Senate who represent the school distri cts and eligible charter schools. 5. The Department shall crea te a dedicated page on its website listing annual redbud school grant recipients, amount awarded to each recipient and other pertinent information about the Redbud School Funding Act. 6. The Department shall provide the Chair of the House Appropriations and Budget Committee and the Chair of the Senate Appropriations Committee no later than February 1 of each year with an estimate of the upcoming year 's redbud school grant allocation as prescribed by this section. SECTION 4. REPEALER 70 O.S. 2021, Section 3-119, is hereby repealed. SECTION 5. This act shall become effective November 1, 2022. COMMITTEE REPORT BY: COMMITTEE ON COMMON EDUCATION, dated 03/01/2022 - DO PASS, As Coauthored.