HB3545 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) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 3545 By: Caldwell (Chad) COMMITTEE SUBSTITUTE An Act relating to charter schools; creating the Statewide Charter School Board; providing authority of board beginning on certain date; p roviding for membership; requiring appointments by certain date; providing terms of members; providing for election of chair and vice-chair; allowing a member to be removed for certain reasons; providing for filling of vacancies; providing for travel reimbursement ; requiring first meeting to be held by certain d ate; providing for frequency of meetings; specifying quorum; directing certain schools to only be sponsored by the Statewide Charter Sch ool Board beginning on certain date; providing for succes sion to certain rights and responsibilities executed prior to certain date; providing powers and duties of the Statewide Charter School Board beginning on certain date; providing definitions; requiring the Board to make publicly available a list of certain courses beginning on certain date; allowing the Board in certain cases to negotiate and enter into contracts with certain providers; creating the Statewide Charter School Board Revolving Fund; specifying sources of fund; providing for expenditures; providing purpose of fund; amending 70 O.S. 2021, Section 3-104, which relates to powers and duties of the State Board of Education; updating s tatutory references; modifying refere nce from the Statewide Virtual Charter School Board to the Statewide Charter School Board; amending 70 O.S. 2021, Sections 3-134, 3-136, 3-137, 3-139, 3-140, 3-142, 3-143, and 3-144, which relate to implementation of the Oklahoma HB3545 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 Charter Schools Act; modifying reference from the State Department of Education to the Statewide Charter School Board as the provider of certain training; modifying application process for c ertain schools; removing references to charter schools sponsored by certain entities; provid ing for powers and duties of the Statewide Charter School Board beginning on certain date; modifying contents of certain written contract s beginning on certain date; prohibiting certain schools from entering into certain employment contract under certain circumstances; providing for contents of employment contract; requiring disclosure of employment rights; prohibiting certain schools fro m serving certain students without certain contract; updating references; removing outdated language; prohibiting the Statewide Charter School Board from charging a fee for administrative or other services; updating language regarding submission of certain annual report; modifying authority over the Charter Schools Incentive Fund; amending 70 O.S. 2021, Sections 3- 145.5, 3-145.7, and 3-145.8, which relate to statewide virtual charter schools; removing outdated language; updating references; directing the Statewide Virtual Charter School Board to ha ve authority over certain revolving fund until ce rtain date; requiring the tran sfer of certain funds to certain revolving fund on certain date ; amending 70 O.S. 2021, Section 1210.704, which relates to the provision of advanced placement courses; updating references; updating st atutory reference; repeali ng 70 O.S. 2021, Sections 3-132, 3-135, 3-145.1, 3- 145.2, 3-145.3, and 3-145.4, which relate to sponsor contract guidelines and meetings and rule promulgation of the Statewide Virtual Charter School Board; providing for codification; providing effective dates; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: HB3545 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 SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-132.1 of Title 70, unless there is created a duplication in numb ering, reads as follows: A. There is hereby created the Statewide Charter Schoo l Board. Beginning July 1, 2023, t he Board shall have the sole authority to authorize and sponsor charter schools and statewide virtual charter schools in this state. The Bo ard shall be composed of fifteen (15) members as follows: 1. The State Superintendent of Public Instruction, or his or her designee; 2. Six members of the public appointed by the Governor , at least two of whom shall reside in a sc hool district where at least sixty percent (60%) of the children who attend school in the district meet the eligibility requirements established by the National School Lunch Act and Child Nutrition Act for free and reduced-cost lunches, and at least one of whom shall reside on federally recognized Indian tribal land; 3. Two members of the business community , appointed by the Governor; 4. A teacher who provides classroom instruction at a charter school or statewide virtual charter school, appointed by the Governor; 5. An operator of a charter school or statewide virtual charter school, appointed by the Governor; and HB3545 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 6. Four members of the Oklahoma Legislature who shall serve as nonvoting, advisory members, two appointed each by the President Pro Tempore of the Oklahoma State Senate and the Speaker of the Oklahoma House of Representatives. B. Initial appointments shall be made by August 31, 2022. Members appointed by the President Pro Tempore of the Oklahoma State Senate and the Speaker of the Oklahoma House of Representatives shall serve two-year terms. Members appointed by the Governor shall serve four-year terms. Appointments shall be made by and take effect on July 31 of the year in which th e appointment is made. No later than December 30 annually the Board shall elect from its membership a chair and vice-chair. C. A member may be removed from the B oard by the appointing authority for cause which shall include, but not be lim ited to: 1. Being found guilty by a court of competent j urisdiction of a felony or any offense involving moral turpitude; 2. Being found guilty of malfeasance, misfeasance , or nonfeasance in relation to Board duties; 3. Being found mentally incompetent b y a court of competent jurisdiction; or 4. Failing to attend three successive meetings of the Board without just cause, as det ermined by the Board. D. Vacancies shall be fille d by the appointing authority. HB3545 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 E. Members of the Statewide Charter School Board shall not receive compensation but shall be reimbursed for nec essary travel expenses pursuant to the provisions of the State Travel Reimbursement Act. F. The Statewide Charter School Board shall meet at the call of the chair. The first meeting of the Board shall be held no later than sixty (60) days after the effective date of this section. G. Seven members of the Board sh all constitute a quorum, and an affirmative vote of at l east seven members shall be required for th e Board to take any final action. H. Beginning July 1, 2023, charter schools and statewide virtual charter schools shall be sponsored on ly by the Statewide Charter School Board created pursuant to this section. Effective July 1, 2023, the Statewide Charter School Board shall succeed to any contractual rights and responsibilities incurred by the Statewide Virtual Charter School Board in a statewide virtual charter school sponsorship contract executed prior to July 1, 2023, and shall succeed to any contractual rights and responsibilities incurred by a school district, a technology center school distri ct, an accredited comprehensive or regional institution that is a member of The Oklahoma State System of H igher Education, a community college, a federally recognized Ind ian tribe, or the State Board of Education in a charter school sponsorship contract ex ecuted prior to July 1, 2023. All property, equipment, supplies, records, assets, HB3545 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 current and future liabilities, encumbrances, obligations, and indebtedness associated with a statewide virtual charter school or charter school sponsorship contract shall be transfer red to the Statewide Charter School Board. Appropriate conveyances and other documents shall be executed to effectuate the transfer of property associated with a sponsor ship contract. Upon succession of sponsorship contracts, the Statewide Charter School Board shall assume sponsorship of the statewide virtual charter schools and charter schools for the remainder of the term of the contracts. Prior to the end of the current term of the contract, the Statewide Charter School Board shall allow a charter school to apply for renewal of the sponsorship contract in accordance with the renewal procedures established pursuant to Section 3-137 of Title 70 of the Oklahoma Statutes. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-132.2 of Title 70, unless there is created a duplication in numbering, reads as follows: A. Beginning July 1, 2023, and subject to the requirements of the Oklahoma Charter Schools Act, the Statewide Charter School Board shall: 1. Provide general supervision and oversight of the operations of charter schools and statewide virtual charter schools in this state, recommend legislation pertaining to charter schools to the Oklahoma Legislature, and promulgate rules and policies th at the HB3545 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 Board deems necessary to accomplish the purposes prescribed in this section; 2. Establish a procedure for accepting, approving, and disapproving charter school and statewide virtual charter school applications and a process for renewal or revocatio n of approved charter contracts which minimally meet th e procedures set forth in the Oklahoma Charter Schools Act; 3. Hire an executive director an d other staff for its operation; 4. Prepare a budget for expenditures necessary for the proper maintenance of the Board and accomplishmen t of its purpose; and 5. Comply with the requirements of the Oklahoma Open Meeting Act and Oklahoma Open Records Act . B. 1. For purposes of the Oklahoma Charter Schools Act, "charter school" means: a. prior to July 1, 2023, a public school establish ed by contract with a school district board of education, a technology center school district, a higher education institution, a federally recognized Indian tribe, or the State Board of Education, and b. on July 1, 2023, and after , a public school established by contract with the Statewide Charter School Board, HB3545 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 to provide learning that will improve student achievement and as defined in the Elementary and Secondary Education Act of 1965, 20 U.S.C. , Section 8065. 2. A charter school may consist of a new school s ite, new school sites, or all or any portion of an existing school site. An entire school district shall not be a charter school site. C. 1. For purposes of the Oklahoma Charter Schools A ct, "conversion school" means a school created by converting all or any part of a traditional public school in order to access any or all flexibilities afforded to a charter school ; provided, however, all or any part of a traditional public school may not be converted to a statewide virtual charter school. 2. Prior to the board of education of a school district converting all or any part of a traditional public school to a conversion school, the board sh all prepare a conversion plan. The conversion plan shall include documentation that demonstrates and complies with paragraphs 1, 2, 6, 7, 8, 9, 10, 13, 14, 15, 16, 17, 19, 20, 21, 22, 23, 24, 34, and 35 of subsection B of Section 3-134 of Title 70 of the Oklahoma Statutes. The conversion plan and all documents shall be in writing a nd shall be available to the public pursuant to the requirements of the Oklahoma Open Records Act. All votes by the board of education of a school district to approve a conversion plan shall be held in an open public session. If the board of education of a school district votes to approve a HB3545 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 conversion plan, the board shall notify the State Board of Education within sixty (60) days after the vote. The notification shall include a copy of the minutes for the board meeting at which the conversion plan was a pproved. 3. A conversion school shall c omply with all the same accountability measures as are required of a charte r school as defined in subsection B of this section. The prov isions of Sections 3-140 and 3-142 of Title 70 of the Oklahoma Statutes shall not apply to a conversion school. Conver sion schools shall comply with the same laws and State Board of Education r ules relating to student enrollment which apply to traditional public schools. Conversion schools shall be funded by the board of education of the school district as a school site within the school district and funding shall not be affected by the convers ion of the school. 4. The board of education of a school dist rict may vote to revert a conversion school back to a traditional public school at any time; provided, the change shall only occur during a break between school years. 5. Unless otherwise provi ded for in this subsection, a conversion school shall retain t he characteristics of a traditional public school. D. 1. Beginning July 1, 20 23, the Statewide Charter School Board shall make publicly available a list of supplemental online courses which have been reviewed and certified by the Board to HB3545 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 ensure that the courses are high quality options and are aligned with the subject matter standards adopted by the State Board of Education pursuant to Section 11-103.6 of Title 70 of the Oklahoma Statutes. The Statewide Charter School Board shall give special emphasis on listing supplemental online courses in science, technology, engineering, and math (STEM), foreign language, and advanced placement courses. School districts shall not be limited to selecting supplemental online courses that have been reviewed and certified by the Statewide Charter School Board and listed as provided for in this paragraph. 2. In conjunction with the Office of Management and Enterprise Services, the Board shall negotiate and enter into contracts with supplemental online course providers t o offer a state rate price to school districts for supplemental online courses that have been reviewed and certified by the Statewide Charter School Board and listed as provided in paragraph 1 of this subsection. SECTION 3. NEW LAW A new secti on of law to be codified in the Oklahoma Statutes as Section 3-132.3 of Title 70, unless there is created a duplication in numbering, reads as follows: There is hereby created in the State Treasury a revolving fund for the Statewide Charter School Board to be designated the "Statewide Charter School Board Revolving Fund". The fund shall be a continuing fund, no t subject to fiscal y ear limitations, and shall consist of all monies received by the Statewide Charter School Board HB3545 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 from state appropriations. All monies accruing to the credit o f the fund are hereby appropriated and may be budgeted and expended by the Statewide Charter Scho ol Board for the purposes set forth in Section 2 of this act. Expenditures from the fund shall be made upon warrants issued by the State Treasurer against cla ims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. SECTION 4. AMENDATORY 70 O.S. 2021, Section 3-104, is amended to read as follows: Section 3-104. A. The supervision of the public school system of Oklahoma shall be vested in the State Board of Education and, subject to limitations otherwise provided by law, the State Board of Education shall: 1. Adopt policies and make rules for the operation 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 necessary for the proper performance of the funct ions of the State Board of Education. The secretary shall not be a member of the Board; 3. Submit to the Governor a departmental bud get based upon major functions of the Department as prepared by the State Superintendent of Public Instruction and support ed by detailed data on needs and proposed o perations as partially determined by the budgetary needs of local school districts filed wi th the State Board HB3545 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 of Education for the ensuing fiscal year. Appropriations 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 other functions of general and special education including general control, free textbooks, school lunch, Indian education, and all other functions of the Board and an amount sufficient to adequately staff an d administer these services, and c. the Board shall determine the details by which the budget and the appropriations are administered. Annually, the Board shall make preparations to consolidate all of the functio ns of the Department in such a way that the budget 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 regular session of the Legislature, prepare and deliver to the Governor and the Legislature a report for the year ending June 30 immed iately preceding the regular session of the Legislature. The report shall contain: a. detailed statistics and other infor mation concerning enrollment, attendance, e xpenditures including State HB3545 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 Aid, and other pertinent 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, d. a statement of the receipts and expenditures of the State Board of Education for the pas t year, and e. a statement of plans and recommendations 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 formul ation 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 , supervisory, and administrative positions and services 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 HB3545 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 certificates for superintendents of scho ols, principals, supervisors, librarians, clerical employees, school nurses, school bus drivers, visiting teachers, classroom teachers, and for other personnel performing instructional, ad ministrative, and supervisory services, but not including members of b oards of education and other employees who do not work directly with pupils, and may charge and collect reasonable fees for the issuance of such certificates: a. the State Department of E ducation shall not issue a certificate to and shall revoke the certi ficate of any person who has been convicted, whether upon a verdict or plea of guilty or upo n a plea of nolo contendere, or received a suspended sentence or any probationary term for a crime or an attempt to comm it a crime provided for in Section 843.5 of Title 21 of the Oklahoma Statutes if the offense involved sexual abuse or sexual exploitatio n as those terms are defined in Section 1-1-105 of Title 10A of the Oklahoma Statutes, Section 741, 843.1, if the offens e included sexual abuse or sexual exploitation, 865 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 has been convicted, received a suspended sent ence, or received a deferred judgment for a crime or attempted crime HB3545 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 which, if committed or attempted in this state, would be a crime or an attempt to commit a crime provided for in any of said laws, b. all funds collected by the State Department of Education for the issuance of certificate s 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 of Education to finance the activities of th e State Department of Education necessary to admin ister the program, for consultative services, publication costs, actual and necessary travel expenses as provided in the State Travel Reimbursement Act incurred by pe rsons performing research work, and othe r expenses found necessary by the State Board of E ducation for the improvement of the preparati on and certification of teachers in Oklahoma. Provided, any unobligated balance in the Teachers' Certificate Fund in exc ess of Ten Thousand Dollars ($10,000.00) on June 30 of any fiscal year shall be transferre d to the General Revenue Fund of the State of Oklahoma this state. Until July 1, 1997, the State Board of Education shall have authority for approval of teacher education HB3545 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 programs. The State Board of Education shall also have authority for the administration of te acher residency and professional develop ment, subject to the provisions of the Oklahoma Teacher Preparation Act; 7. Promulgate rules govern ing the classification, inspection, supervision, and accrediting of all public nursery, kindergarten, elementary and secondary schools, and on-site educational services provided by public school districts or state-accredited private schools in partial hospit alization programs, day treatment pro grams, and day hospital progr ams as defined 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 e lementary school and faces the necessity of reloc ating its school facilities because of construction of a lake, either by state or federal authority, which will inundate the school facilities , shall be entitled to receive probationary accreditation from th e State Board of Education for a period of five (5) years after the effective date of thi s act and any school district, otherwise qualified, shall be entitled to receive probationary accredit ation from the State Board of Educati on for a period of two (2) c onsecutive years to attain the minimum average daily attendance. The Head Start and publ ic nurseries or kindergartens operated from Community Action Program funds shall not HB3545 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 be subjected to the accrediting rules of the State Boa rd of Education. Neither wi ll the State Board of Education make rules affecting the operation of the public nurserie s and kindergartens operated from federal funds secured through Community Action Programs even though they may be operating in the public s chools of the state. However, any of the Head Start or public nurseries or kindergartens operated under federal regu lations may make application for accrediting from the State Board of Education but will be accredited only if application for the approval of the programs is made. Th e status of no school district shall be changed which will reduce it to a lower classific ation until due notice has been given to the proper authorities thereof and an opportunity given to correct the conditions which otherwise would be the cause of such reduction. Private and parochial schools may be ac credited and classified in like manner as public schools or, if an accrediting association is approved by the State Board of Education, by pro cedures established by the State Boar d of Education to accept ac creditation by such accrediting association, if ap plication is made to the State Board of Education for such accrediting; 8. Be the legal agent of the State of Oklahoma this state to accept, in its discretion, the provisions of any Act of Congress appropriating or apportioning funds which are now, or may hereafter be, provided for use in connection with any phase of the system of HB3545 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 public education in Oklahoma. It shall prescribe such rules as it finds necessary to provide for the proper dis tribution 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 St ates Government under any law of the United States which may r equire or recommend cooperation with any state board having charge of the administration of public schools unless otherwise provided by law; 10. Be and is hereby designated as the "State Educational Agency" referred to in Public L aw 396 of the 79th Congr ess of the United States, which law states that said act may be cited as the "National School Lunch Act", and said the State Board of Education is hereby authorized and directed to accept the terms and provisions of said act and to ente r into such agreement s, not in conflict with the Constitution of Oklahoma or the Constitution and Statutes of the United States, as may be necessary or appropriate to secure for the State of Oklahoma this state the benefits of the school lunch program established and referred to in said the act; 11. Have authority to secure and 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 this state and is hereby authorized to employ or appoint and fix the compensation of such additional officers or employees and to incur such expenses as may HB3545 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 be necessary for the accomplishment of the above purpose, administer the distribution of any state f unds appropriated by the Leg islature required as federal mat ching to reimburse on childr en's meals; 12. Accept and provide for the administ ration of any land, money, buildings, gifts, donation, or other things of value which may be offered or bequeathed t o the schools under the super vision or control of said the Board; 13. Have authority to re quire persons having administrative control of all school districts in Oklahoma to make such regular and special reports regarding the activities of the schools in said the districts as the Board may de em needful for the prop er exercise of its duties and funct ions. Such authority shall include the right of the State Board of Education to withhold all state funds under its control, to withhold official recognition , including accrediting, until such required reports have been f iled and accepted in the office of said the Board and to revoke the certificates of persons failing or refusing to make such reports; 14. Have general supervision of the school lunch program. Th e State Board of Education may sponsor wo rkshops for personnel and participants in the school lunc h program and may develop, print, and distribute free of charge or sell any materials, books, and bulletins to be used in such the school lunch programs. The re is hereby created in the State Treasury a re volving fund for the Board, to be designated the School Lunch Workshop Revolving Fund. The fund HB3545 HFLR Page 20 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 shall consist of all fees derived from or on behalf of any participant in any such workshop sponsored by the Sta te Board of Education, 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 of such the materials, books, and bulletins relating to the scho ol lunch program. The fund shall be administered in a ccordance with Section 155 of Title 6 2 of the Oklahoma Statutes; 15. Prescribe all forms for school district and county officers to report to the State Board of Education where required. The State Board of Education shall also prescribe a list of appropr iation accounts by which the funds of school districts shall be budgeted, accounted for, and expended; and it shall be the duty of the State Auditor and Inspector in prescribing all budgeting, accountin g, and reporting forms for school funds to conform to su ch lists; 16. Provide for the establ ishment of a uniform system of pupil and personnel accounting, records, and reports; 17. Have authority to provide for the health and safety of school children and school personnel while under the jurisdiction of school authorities; 18. Provide for the su pervision of the transportation of pupils; HB3545 HFLR Page 21 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 19. 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. Have authority and is hereby required to perform a ll duties necessary to the administration of the public school system in Oklahoma as specified in the Oklahoma School Code; and, in addition thereto, those duties not specifically mentioned herein if not delegated by law to any other agency or official; 21. Administer the State Public Common School Building Equalization Fund established by Section 32 of Article X of the Oklahoma Constitution. Any monies as may be appropriated or designated by the Legislature, other tha n ad valorem taxes, any other funds identified by the State Department of Education, which may include, but not be limited to, grants-in-aid from the federal government for building purposes, the proceeds of all property that shall fall to the state by esc heat, 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 charter schools in acquiring bui ldings, subject to the limitations fixed by Section 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 Constitutio n shall mean acquiring or improving s chool HB3545 HFLR Page 22 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 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 eli gible charter schools 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 a id from, and for otherwise administering, the fund pursuant to the provisions of this paragraph, and may employ and fix the duties and compensation of technicians, aides, clerks, stenographers, attorneys, and other personnel deemed necessary to carry out th e provisions of this paragraph. The cost of administering the fund shall be paid from monies appropriated to the State Board of Education for the operation of the State Department of Education. From monies apportioned to the fund, the State Department of Education may reserve not more than one -half of one percent (1/2 of 1%) for purposes of administering the fund; 22. Recognize that the Director of the Oklahom a Department of Corrections shall be the administrative auth ority for the schools HB3545 HFLR Page 23 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 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 c lassification, inspection, and accreditation of public schoo ls shall be applicable to such schools; and such schools shall comply with stand ards set by the State Board of Education; and 23. Have authority to administer a revolving fund which is hereby created in the State Treasury, to be designated the Statistical Services Revolving Fund. The fund s hall consist of all monies received from th e 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 aut horized 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 Ser vices Revolving Fund shall be administere d 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 nonchargeable county four-mill revenue for each school district, HB3545 HFLR Page 24 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 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 Oklaho ma 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, 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 statewide based on the preceding school year's average daily membership, according to the provi sions 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 s ponsor the eligible charter school, and the total number of districts shall be used to determine the statewide average baseline local funding per student, HB3545 HFLR Page 25 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 f. for each school district or eligible charter school which is below the baseline local funding per 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 milla ge per student shortfall for each distric t, and g. the nonchargeable millage per student shortfall for a school district or eligible charter school shall be multiplied by the average daily membership of the preceding school year of the eligible school dist rict or eligible charter school. This am ount 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 Section 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 appropri ated pursuant to Section 2 Section 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 Okla homa Statutes as determined by the Oklahoma Tax Commission. For fiscal year 2023 and each subsequent fis cal year, if such appropriated HB3545 HFLR Page 26 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 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 Section 1353 of this act Title 68 of the Oklahoma Statute s. If both funds are insufficient, the Department shall promulgate rules to permit a decrease to the baseline local funding per st udent to the highest amount allowed with the funding available. 3. As used in this section, "eligible charter school" shall mean a charter school which is sponsored pursuant to the provisions of the Oklahoma Charter School Schools Act. Provided, however, "eligible charter school" shall not include a statewide virtual 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 instructional service delivery. 4. The Department shall d evelop 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 districts and eligible charter schools. 5. The Department shall create 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. HB3545 HFLR Page 27 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 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 yea r's redbud school grant allocation as prescribed by this section. SECTION 5. AMENDATORY 70 O.S. 2021, Section 3-134, is amended to read as follows: Section 3-134. A. For written applications file d after January 1, 2008, prior Beginning July 1, 2023, prior to submission to the Statewide Charter School Board of the an application to a proposed sponsor seeking to establish a charter school or statewide virtual charter school, the applicant shall be required to complete training which shall not exceed ten (10) hours pro vided by the State Department of Education Statewide Charter School Boa rd on the process and requirements for establishing a charter school or statewide virtual charter school. The Department Board shall develop and implement the training by January 1, 2008 July 1, 2023. The Department Board may provide the training in any format and manner that the Department it determines to be efficient and effective including, but not limited to, web-based training. B. Except as otherwise provided for in Section 3-137 of this title, an applicant seeking to establish a charter school or statewide virtual charter scho ol shall submit a written application to the proposed sponsor as prescribed in subsection E of this HB3545 HFLR Page 28 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 Statewide Charter School Board. The application, application process, and application time frames shall be posted on the Board's website. The application shall include: 1. A mission statement for the charter school or statewide virtual charter school ; 2. A description including, but not limited to, background information of the organizational structure and th e governing body board of the charter school or statewide virtual charter school; 3. A financial plan for the first five (5) years of operation of the charter school or statewide virtual charter school and a description of the treasurer or ot her officers or persons who shall have primary responsibility for the finance s of the charter school or statewide virtual charter school. Such person shall have demonstrated experience in school finance or the e quivalent thereof; 4. A description of the hiring pol icy of the charter school or statewide virtual charter school; 5. The name of the applicant or applicants and requested sponsor; 6. A description of the facility and location of the charter school; 7. A description of the grades being served; 8. An outline of cr iteria designed to measure the e ffectiveness of the charter school or statewide virtual charter school; HB3545 HFLR Page 29 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 9. A demonstration of support for the charter school from residents of the school district in which the charter school is to be located which may include but is not limited to a surve y of the school district residents or a petition signed by residents of the school district; 10. Documentation that the applicants completed charter school training as set forth i n subsection A of this section; 11. A description of the minimum and maximu m enrollment planned per year for each term of the charter contract; 12. The proposed calendar for the charter school or statewide virtual charter school and sample daily schedule; 13. Unless otherwise authorized by law or regulation, a description of the academic program al igned with state standards; 14. A description of the instructional de sign of the charter school, or statewide virtual charter school including the type of learning environment, c lass size and structure, curriculum overview, and teaching methods; 15. The plan for using internal and external assessments to measure and report student p rogress on the perform ance framework developed by the applicant in accordance with subsection C of Section 3-135 Section 3-136 of this title; 16. The plans for identifying and su ccessfully serving students with disabilities, students who are English langu age learners, and students who are academically behind; HB3545 HFLR Page 30 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 17. A description of cocurricular or extracurricular programs and how they will be funded and de livered; 18. Plans and time lines for student recruitment and enrollment, including lottery procedures ; 19. The student dis cipline policies for the c harter school, or statewide virtual charter school including those for special education students; 20. An organizational chart that clearly presents the organizational structure of the charter school , or statewide virtual charter school including lines of authority and reporti ng between the governing board, staff, any relate d bodies such as advisory bodies or parent and teacher councils, and any external organizations that will play a role in managing the school; 21. A clear description of the roles and responsibilities for the governing board, the leadership and management team for the charter school, or statewide virtual charter school and any other entities shown in the organizational chart; 22. The leadership and teacher employment p olicies for the charter school or statewide virtual charter school; 23. Proposed governing b ylaws; 24. Explanations of any partnerships or contrac tual partnerships central to the operations or mission of the charter school or statewide virtual charter school ; HB3545 HFLR Page 31 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 25. The plans for providing transp ortation, food service , and all other significant op erational or ancillary se rvices; 26. Opportunities and expectations for parental involvement; 27. A detailed school start-up plan that identifies task s, time lines, and responsible individuals; 28. A description of the financial plan and policies for th e charter school, or statewide virtual charter school including financial controls and audit requirements; 29. A description of the insurance coverage the charter school or statewide virtual charter school will obtain; 30. Start-up and five-year budgets with clearly stated assumptions; 31. Start-up and first-year cash-flow projections with clearly stated assumptions; 32. Evidence of anticipated fundraising contributions, if claimed in the application ; 33. A sound facilit ies plan, including backup o r contingency plans if appropriate ; 34. A requirement that the charter school or statewide virtual charter school governing board meet at a minimum quarterly in the state comply with the requirements of paragraph 7 of subsection A of Section 3-136 of this title and that for those charter schools outside of counties with a population of five hundred thou sand HB3545 HFLR Page 32 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 (500,000) or more, that a majority of members are residents within the geographic boundary of the sponsoring entity charter school; and 35. A requirement that the charter school or statewide virtual charter school follow the requirements of the Oklahoma Open Meeting Act and Oklahoma Ope n Records Act. C. A board of education of a public school district, public body, public or private col lege or university, private person, or private organization may contract wi th a sponsor to establish a charter school. A private school shall not be eli gible to contract for a charter school or statewide virtual charter school under the provisions of the Oklahoma C harter Schools Act. D. The sponsor of a charter school is the board of education of a school district, the board of educatio n of a technology center school district, a higher e ducation institution, the State Board of Education, or a federally recognized I ndian tribe which meets the criteria established in Section 3-132 of this title. Any board of education of a school district in the state may sponsor on e or more charter schools. The physical location of a charter school sponsored by a board of education of a school district or a technology center school district shall be within the boundaries of the sponsoring school district . The physical location of a charter school sponsored by the State Board of Education Statewide Charter School Board when the applicant of the charter school is th e Office of Juvenile Affairs shall be where an Office of Juvenile Affa irs HB3545 HFLR Page 33 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 facility for youth is located. The physical location of a charter school otherwise sponsored b y the State Board of Education pursuant to paragraph 8 of subsection A of Section 3-132 of this title shall be in the school district in which the applicatio n originated. E. An applicant for a charter schoo l may submit an applicat ion to a proposed sponsor which shall either accept or reject sponsorship of the charter school within ninety (9 0) days of receipt of the application. If the proposed sponsor reject s the application, it shall notify the applicant i n writing of the reasons for the rejection. The applicant may submit a revised application for reconsideration to the proposed sponsor within thirty (30) days after receiving notification of the rejection. The proposed sponsor shall accept or reject the revised application with in thirty (30) days of its receipt. Should the sponsor reject the application on reconsideration, the applicant may appeal the decision to the State Board of Education with the revi sed application for re view pursuant to paragraph 8 of subsection A of Sect ion 3-132 of this title. The State Board of Education shall hear the appeal no later than sixty (60) days from the date received by the Board. F. A board of education of a school d istrict, board of education of a technology center school district, higher education institution, or federally recognized Indian tribe sponsor of a charter school shall notify the State Board of Education when it HB3545 HFLR Page 34 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 accepts sponsorship of a charter school. T he notification shall include a copy of the charte r of the charter school. G. Applicants for char ter schools proposed to be sponsored by an entity other than a school district pursuant to paragraph 1 of subsection A of Section 3-132 of this title may, up on rejection of the revised application, proceed t o binding arbitration un der the commercial rules of the American Arbitration Association with costs of the arbitration to be borne by th e proposed sponsor. Applicants for charter schools proposed to be spo nsored by school distr icts pursuant to paragraph 1 of subsection A of Sect ion 3-132 of this title may not proceed to binding arbitration but may be spons ored by the State Board of Educat ion as provided in paragraph 8 of subsection A of Section 3-132 of this title. H. If a board of education of a technolo gy center school district, a higher education ins titution, the State Board of Education, or a federally recognized Indian tribe accepts sponsorship of a charter school, the administrative, fiscal and oversight responsibilities o f the technology center scho ol district, the higher education institution, or the federally recognized Indian tribe shall be listed in the contract. No administrative, fiscal, or oversight responsibilities of a charter school or statewide virtual charter school shall be delegated to a schoo l district unless the local school district agrees to enter into a contract t o assume the responsibilities. HB3545 HFLR Page 35 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 I. A sponsor of a public charter school F. Beginning July 1, 2023, the Statewide Charter School Board shall have the followi ng powers and duties in its oversight of charter schools and statewide virtual charter schools in this state: 1. Provide oversight of the operations of cha rter schools and statewide virtual charter schools in the state through annual performance reviews of charter schools and reauthorization of charter schools for which it is a sponsor; 2. Solicit and evaluate cha rter school and statewide virtual charter school applications; 3. Approve quality charter school and statewide virtual charter school applications that meet identified educatio nal needs and promote a diversity of educational choices; 4. Decline to approve weak or inade quate charter school or statewide virtual charter schoo l applications; 5. Negotiate and execute sound charter contracts with each approved public charter school or statewide virtual charter school; 6. Monitor, in accordance with c harter contract terms, t he performance and legal compliance of charter schools and statewide virtual charter schools; and 7. Determine whether ea ch charter contract merits renewal, nonrenewal, or revocation. HB3545 HFLR Page 36 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 J. Sponsors shall establish a procedure for accepting, approving and disapproving charter school app lications in accordance with subsection E of this section. K. Sponsors G. The Statewide Charter School Board shall be required to develop and maintain charterin g policies and practices consistent with recognize d principles and standards for quality charter authorizing as established by the State Department of Education in all major areas of aut horizing responsibility, including organizational capacity and infrast ructure, soliciting and evaluating charter school and statewide virtual charter school applications, performance contracting, ongoing charter school and statewide virtual charter school oversight and evaluation, and charter contract renewal decision-making. L. Sponsors acting in their official ca pacity shall be immune from civil and criminal liabi lity with respect to all activities related to a charter school with which they contract. SECTION 6. AMENDATORY 70 O.S. 2021, Section 3 -136, is amended to read as follows: Section 3-136. A. A Beginning July 1, 2023, a written contract entered into between the Statewide Charter School Board and the governing board of a charter school or statewide virtual charter school shall adopt a charter which will ensure compliance with the following: HB3545 HFLR Page 37 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 1. A Except as provided for in the Oklahoma Charter Schools Act, charter schools and statewide virtual charter scho ols shall be exempt from all statutes and rules r elating to schools, boards of education, and school districts; provided, however, a charter school or statewide virtual charter school shall comply with all f ederal regulations and state and local rules and statu tes relating to health, safety, civil rights , and insurance. By January 1, 2000, the State Department of Education shall prepare a list of relev ant rules and statutes which a charter school must or statewide virtual charter school shall comply with as required by this paragra ph and shall annually provide an update to the list; 2. A charter school or statewide virtual charter school shall be nonsectarian in its programs, admission policies, employm ent practices, and all other operations. A sponsor may The Statewide Charter School Board shall not authorize a charter school, statewide virtual charter school, or program that is affiliated with a nonpublic sectarian school or religious institution; 3. The charter contract shall provide a description of the educational program to be offered . A charter school or statewide virtual charter school may provide a comprehensive p rogram of instruction for a pre kindergarten 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) an d twenty-one (21) years. A charter school or statewide virtual charter school HB3545 HFLR Page 38 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 may offer a curriculum which emphasizes a specific learning philosophy or style or certain subject areas such as mathematics, science, fine arts, p erformance arts, or foreign lang uage. The charter of a charter scho ol or statewide virtual charter school which offers grades nine through twelve shal l specifically address whether the charter school or statewide virtual charter school will comply with the graduation require ments established in Section 11- 103.6 of this title. No charter school or statewide virtual charter school shall be chartered for the purpose of offering a curriculum for deaf or blind students that is the same or si milar to the curriculum being provided by or for educating deaf or blind students that are being served by the Oklahoma Schoo l for the Blind or the Oklahoma School for the Deaf; 4. A charter school or statewide virtual charter school shall participate in the testin g 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 or statewide virtual charter school shall also provide any necessary data to the Office of Accountability within the State Department of Education ; 5. Except as provided for in the Oklahoma Charter Schools Ac t and its charter, a charter sc hool shall be exempt from all statutes and rules relating to schools, boards of education, and school districts; HB3545 HFLR Page 39 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 6. A charter school or statewide virtual charter scho ol, to the extent possible, shall be subject to the same reporting requirements, financial audits, audit procedures, and audit requirements as a school district. The State Department of Education, Statewide Charter School Board, or State Auditor and Inspector may conduct financial, program, or compliance audits. A charter school or statewide virtual charter school shall use the Oklahoma Cost Accounting System to report financial transactions to the sponsoring school district State Department of Education; 7. 6. A charter school or statewide virtual charter school shall comply with all feder al and state laws relating to t he education of children with disabilities in the same manner as a school district; 8. 7. A charter school or statewide virtual charter school shall provide for a governing body board for the school which shall be responsible for the policies and operational decisions of the charter school or statewide virtual charter school. A majority of the charter school or statewide virtual charter school governing board members shall be residents of this state and shall meet n o less than quarterly in a public meeti ng within the boundaries of the school district in which the charte r school is located or within this state if the governing board oversees multiple charter schools in this state or oversees a statewide virtual charter school . A member of the governing board of a charter school or statewide HB3545 HFLR Page 40 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 virtual charter school shall be subject to the same conflict of interest requirements as a member of a school district board of education including, but not limited to, Sections 5-113 and 5-124 of this title. Members ap pointed to the governing board of a charter school or statewide virtual charter school shall be subject to th e same instruction and continuing education requirements as members of a school district board of education an d pursuant to Section 5-110 of this title, complete twelve (12) hours of instruction within fifteen (15) months of appo intment to the governing board, and pursuant to Section 5-110.1 of this title, attend con tinuing education; 9. 8. A charter school or statewide virtual charter school shall not be used as a method of generating revenue for students who are being home schooled and a re not being educated at an org anized charter school site or by a statewide virtual charter school; 10. 9. A charter school may or statewide virtual charter school shall be as equally free and open to all students as traditional public schools and shall not charge tuition or fees; 11. 10. A charter school or statewide virtual charter school shall provide instruction each year for at least the number of days required in Section 1-109 of this title; 12. 11. A charter school or statewide virtual charter schoo l shall comply with the student suspen sion requirements provided for in Section 24-101.3 of this title; HB3545 HFLR Page 41 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 13. 12. A charter school or statewide virtual charter school shall be considered a school district for purposes of tort liability under The Governmental Tort Claims Act ; 14. 13. Employees of a charter school or statewide virtual charter school may participate as members of the Teac hers' Retirement System of Oklahoma in accordance with applicable statutes and rules if otherwise allowed pur suant to law; 15. 14. A charter school or statewide virtual charter school may participate in all health and related insurance programs available to the employees of the sponsor of the charter school a public school district; 16. 15. A charter school or statewide virtual charter school shall comply with the Ok lahoma 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 i nterest requirements as a member of a local school board; and 18. 16. No later than September 1 of each year, the governing board of each charter sch ool or statewide virtual charter school formed pursuant to the Oklahoma Charter S chools Act shall prepare a statement of actual income and expenditu res for the charter school or statewide virtual 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 statemen t of expenditures shall include HB3545 HFLR Page 42 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 functional categories as defined in rules ado pted by the State Board of Education to implement the Oklahoma Cost Accounting System pursuant to Section 5-145 of this title. Charter schools and statewide virtual charter schools shall not be permitted to submit estimates of expenditures or prorated amounts to fu lfill the requirements of this paragraph ; and 17. A charter school or statewide virtual charter school contract shall include performance provisions based on a performance framework that clearl y provides the academic and operational performance indicators, measur es, and metrics that shall guide the evaluation of a charter school or statewide virtual charter school by the Statewide Charter School Board. The Board shall require a charter school or statewide virtual charter school to submit the data required in this subsection in the identical format that is required by the State Depa rtment of Education of all public schools in order to avoid duplicative administrative efforts or allow a charter school or statewide virtual charter school to provide permission to the Dep artment to share all require d data with the Board. The performance framework shall include indicators , measures, and metrics for, at a minimum: a. student academic proficiency, b. student academic growth, c. achievement gaps in both pr oficiency and growth between major student subgro ups, HB3545 HFLR Page 43 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. student attendance, e. recurrent enrollment from year to year as d etermined by the methodology used for public schools in this state, f. in the case of high schools, graduation rates as determined by the methodology used f or public schools in this state, g. in the case of high schools, postsecon dary readiness, h. financial performance and sustainability, and i. governing board performance and stewa rdship, including compliance with all applicable laws, reg ulations, and terms of the charter contract . B. 1. The charter contract of a charter school or statewide virtual charter school shall include a description of the personn el policies, personnel qua lifications, and method of school governance , and the specific role and duties of the sponsor of the charter school. A charter school or statewide virtual charter school shall not enter into an employment contract with any teacher or other personnel until a contract has been executed with the Statewide Charter School Board . The employment contract shall provide the personnel policies of the charter sch ool or statewide virtual charter school including, but not limited to, policies related to certification, professional development evaluation, suspension, dismissal and nonreemployment, sick leave , personal business l eave, HB3545 HFLR Page 44 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 emergency leave, and f amily and medical leave. The contract shall specifically provide the salary, hours, fringe benefits, and work conditions. The contract may provide for employer-employee bargaining, but the charter s chool or statewide virtual charter school shall not be required to comply with the provisions of Sections 509.1 through 509.10 of this title. 2. Upon contracting with any teacher or other personnel, the governing board of a charter school or statewide virtual charter school shall, in writing, disclose employment rights of the employees in the event the charter school or statewide virtual charter school closes or the charter contract is not renewed or is terminated. 3. No charter school or statewide virtual charter school may begin serving students without a contract executed in accordance with the provisions of the Okla homa Charter Schools Act and approved in an open meeting of the Statewide Charter School Board. The Board may establish reasonable preopening require ments or conditions to monitor the start-up progress of newly approved charter schools or statewide virtual charter schools and ensure that each school is prepared to open on the date agreed and that each school meets all building, health, safety, insurance , and other legal requ irements for the opening of a school. C. The charter of a charter school or statewide virtual charter school may be amended at the reques t of the governing body board of HB3545 HFLR Page 45 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 charter school or statewide virtual charter school and upon the approval of the sponsor Statewide Charter School Board. D. A charter school or statewide virtual charter school may enter into contracts and sue and b e sued. E. The governing body board of a charter school may or statewide virtual charter schoo l shall not levy taxes or issue bonds. F. The charter of a charter school or statewide virtual 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 or statewide virtual charter school upon expiration or termination of the chart er or failure of the charter school or statewide virtual charter school to continue operations. Except as otherwise provided, any real or personal property purchased with state or local funds shall b e retained by the sponsoring school district Statewide Charter School Board. If a charter school that was previou sly sponsored by the boa rd 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 contract with the Statew ide Charter School Board, the charter school may retai n any personal property purchased with state or local fun ds for use in the operation of the charter school until termi nation of the new charter or failure of the charter school to continue operations. HB3545 HFLR Page 46 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 7. AMENDATORY 70 O.S. 2021, Section 3-137, is amended to read as follows: Section 3-137. A. An approved contract for a charter school Beginning July 1, 2023, a charter school c ontract approved by the Statewide Charter Sch ool Board shall be effective f or five (5) fifteen (15) years from the first day of operation. A charter contract may be renewed for successive five-year fifteen-year terms of duration, although the sponsor Board may vary the term based on the performance, demonstrated capacities , and particular circumstances of each charter school. A sponsor The Board may grant renewal with specific condi tions for necessary improvements to a charter school. B. Charter contracts shall be review ed every five (5) years. Prior to the beginning of the fourth fifth year of operation of a charter school or statewide virtual charter school, the sponsor Statewide Charter School Boa rd shall issue a charter school performance report and charter renewal application guidance to the charter school and the charter school its governing board or the statewide virtual charter school and its governing board . The performance report shall summarize the performance record to date of the charter school or statewide virtual charter school, based on the data required by the Oklahoma Charter Schools Act and the charter contract and taking into consideration the percentage of at-risk students enrolled in the school, and shall provide notice of any HB3545 HFLR Page 47 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 weaknesses or concerns perceived by the sponsor Board concerning the charter school or statewide virtual charter school that may jeopardize its position in seeking renewal if not timely rectif ied. The charter school or statewide virtual charter school shall have forty-five (45) days to respond to the performance report and submit any corrections or clarifications for the report. C. 1. Prior to the beginning of the fifth fifteenth year of operation, the charter school or statewide virtual charter school may apply to the Statewide Charter School Board for renewal of the contract with the sponsor. The renewal application guidance shall, at a minimum, provide an opportun ity for the charter school or statewide virtual charter school to: a. present additional evidence, beyond the data contained in the performance report, supporting its case for charter contract renewal, b. describe improvements undertaken o r planned for the school, and c. detail the plan for the next charter contract term for the school. 2. The renewal applicat ion guidance shall include or refer explicitly to the criteria that will shall guide the renewal decisions of the sponsor Board, which shall be bas ed on the performance framework set forth in the charter contract and consistent with the O klahoma Charter Schools Act. HB3545 HFLR Page 48 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. The sponsor Statewide Charter School Board may deny the request for renewal if it determines the charter school or statewide virtual charter school has failed to comple te the obligations of the contract or comply with the pro visions of the Oklahoma Charte r Schools Act. A sponsor The Board shall give written notice of its intent to deny the request for renewal at least e ight (8) months prior to expiration of the contract . In making charter renewal decisions, a sponsor the Board shall: 1. Ground decisions on evidence of the performance of the charter school or statewide virtual charter school over the term of the charter contract in accordance with the performance framework set forth in the charter contract and shall take into consideration the percentage of at-risk students enrolled in the school; 2. Grant renewal to charter schools or statewide virtual charter schools that have achieved t he standards, targets , and performance expectations a s stated in the charter contract and are organizationally and fiscally viable and have been faithful to the terms of the contract and applicable law; 3. Ensure that data used in making renewal decisions are available to the school and the public; and 4. Provide a public report summarizing the evidence us ed as the basis for each decision. E. If a sponsor denies a request for renewal, the governing board of the sponsor may, if requested by the charter sc hool, HB3545 HFLR Page 49 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 proceed to binding arbitration as provided for in subsection G of Section 3-134 of this title. F. A sponsor The Statewide Charter School Board may terminate a contract during the term of the contract for failure to meet the requirements for student performance contained in the contract, failure to meet the standards of fiscal management, violations of the law, or other good cause. The sponsor Board shall give at least ninety (90) days' written notice to the governing board of the charter school or statewide virtual charter school prior to terminating the contract. The governing board may request, in writing, an informal hearing before the sponsor Statewide Charter School Board within fourteen (14) days of receiving notice. The sponsor Board shall conduct an informal hearing before taking action. If a sponsor decides to terminate a contract, the governing board may, if requested by the charter school, proceed to binding arbitration as provided for in subsection G of Section 3-134 of this title. G. F. 1. Beginning in the 2016-2017 school year, the St ate Board of Education shall identify charter schools and statewide virtual charter schools in the state that are ranked in the bottom five percent (5%) of all public schools as determ ined pursuant to Section 1210.545 of th is title. 2. At the time of its charter renewal, based on an average of the current year and the two (2) prior operating years, a sponsor HB3545 HFLR Page 50 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 Statewide Charter School Board may close a charter school site or statewide virtual charter school identified as being amon g the bottom five percent (5%) of public schools in the state . The average of the curre nt year and two (2) prior operating years shall be calculated by using the percentage ranking for each year divided by three, as determined by this subsection. 3. If there is a change to the calculation described in Section 1210.545 of this title that res ults in a charter school site or statewide virtual charter school that was not ranked in the bottom five percent (5%) being ranked in the b ottom five percent (5%), then the sponsor Statewide Charter School Board shall use the higher of the two rankings to calculate the ranking of the charter school site or statewide virtual charter school. 4. In the event that a sponsor fails to close a charter school site consistent with this subsection, the sponsor shall appear before the State Board of Education to provide support for its decision. The State Board o f Education may, by majo rity vote, uphold or overturn the decision of the sponsor. If the decision o f the sponsor is overturne d by the State Board of Education, the Board may implement one of the foll owing actions: a. transfer the sponsorship of the chart er school identified in this paragraph to another sponsor, HB3545 HFLR Page 51 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 b. order the closure of the charter school identified in this paragraph at the end of the current school year, or c. order the reduction of an y administrative fee collected by the sponsor that is a pplicable to the charter school identified in this paragraph. The reduction shall become effective a t the beginning of the month following the month the hearing of the sponsor is held by the State Boa rd of Education. 5. A charter school or statewide virtual charter school that is closed by the State Board of Education Statewide Charter School Board pursuant to paragraph 4 of this subsection shall not be granted a subsequent charter by any other sponsor contract. 6. 5. The requirements of this subsection s hall not apply to a charter school or statewide virtual charter school that has been designated by the State Department of Education as implementing an alternative education program throughout the charter school. 7. 6. In making a charter school site or statewide virtual charter school closure decision, the State Board of Education Statewide Charter School Board shall consider the f ollowing: a. enrollment of students wit h special challenges such as drug or alcohol addiction, prior withdrawal from school, prior incarceration, or other special circumstances, HB3545 HFLR Page 52 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 b. high mobility of the student population resulting from the specific purpose of the charter school or statewide virtual charter school, c. annual improvement in the performance of students enrolled in the charter school or statewide virtual charter school compared with the performance of students enrolled in the charter school or statewide virtual charter school in the immediately pr eceding school year, and d. whether a majority of students attending the charter school or statewide virtual charter school under consideration for closure would lik ely revert to attending public schools with lower academic achievement, as demonstrated pursuant to Section 1210.545 of this title. 8. 7. If the State Board of Education Statewide Charter School Board has closed or transferred authorization of at least twenty- five percent (25%) of t he charter schools chartered by one sponsor pursuant to paragraph 4 of or statewide virtual charter schools proposed by one applicant pursuant to this subsection, the authority of the sponsor applicant to authorize apply for new charter schools or statewide virtual charter schools may be suspended by the Board until the Board approves the sponsor applicant to authorize propose new charter schools or statewide virtual charter schools. A HB3545 HFLR Page 53 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 determination under made pursuant to this paragraph to suspend the authority of a sponsor to authorize new charter schools shall identify the deficien cies that, if corrected, will result in the approval of the sponsor applicant to authorize apply for new charter schools or statewide virtual charter schools . H. G. If a sponsor the Statewide Charter School Board terminates a contract or the charter school or statewide virtual charter school is closed, the closure shall be conducted in accordance with the following protoco l: 1. Within two (2) calendar weeks of a final closure determination, the sponsor Statewide Charter School Board shall meet with the governing board and leadership of the charter school or statewide virtual charter school to establish a transition team composed of school staff, applicant staff , and others designated by the applicant that will attend to the closure, incl uding the transfer of students, student records, and school funds; 2. The sponsor Statewide Charter School Board and transition team shall communica te regularly and effectively with families of students enrolled in the charter school or statewide virtual charter school, as well as with school staff and other stakeholders, to keep them apprised of key information regarding the closure of the school and their options and risks; 3. The sponsor Statewide Charter Schoo l Board and transition team shall ensure that curren t instruction of students enrolled in HB3545 HFLR Page 54 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 charter school or statewide virtual charter school continues per the charter agreement contract for the remainder of the school year; 4. The sponsor Statewide Charter School Board and transition team shall ensure that all n ecessary and prudent notifications are issued to agencies, employees, insurers, contractors, creditors, debtors, and management organizations; and 5. The governing board of the charter school or statewide virtual charter school shall continue to meet as necessary to take actions needed to wind down school ope rations, manage school finances, allocate resources, and facilitate all aspects of closure. I. A sponsor shall develop revocation and nonrene wal processes that are consistent with t he Oklahoma Charter Schools Act and that: 1. Provide the charter school w ith a timely notificatio n of the prospect of revocation or nonrenewal and of the reasons for possible closure; 2. Allow the charter school a reasonable amount of time in which to prepare a response; 3. Provide the charter school with an opportunity to su bmit documents and give testimony in a public hearing challenging the rationale for closure and in sup port of the continuation of the school at an orderly proceeding held for that pu rpose and prior to taking any final nonrenewal or revocation decision rela ted to the school; HB3545 HFLR Page 55 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 4. Allow the charter school access to representation by counsel to call witnesses on its behalf; 5. Permit the recording of the proceedings; and 6. After a reasonable period for deliberation, require a final determination be made and conveyed in writing to t he charter school. J. If a sponsor revokes or does not renew a charter, the sponsor shall clearly state in a resoluti on the reasons for the revocation or nonrenewal. K. 1. Before a sponsor may issue a charter to a charter school governing body that has had its charter terminated or has been informed that its charter will not be r enewed by the current sponsor, the sponsor shall request to have the proposal re viewed by the State Board of Education at a hearing. The State Board of Education shall conduct a hearing in which the sponsor shall present information indicating that the pr oposal of the organizer is substantively different in the areas of deficiency id entified by the current sponsor from the current proposal as set forth wit hin the charter with its current sponsor. 2. After the State Board of Education conducts a hearing pursuant to this subsection, the Board sha ll either approve or deny the proposal. 3. If the proposal is denied, no sponsor may issue a charter to the charter school governing body . HB3545 HFLR Page 56 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 L. If a contract is not renewed, the governing board of the charter school may submit an application to a proposed new sponsor as provided for in Section 3 -134 of this title. M. H. If a contract is not renewed or is terminated a ccording to this section, a student who attended the charter school or statewide virtual charter school may enroll in the resident school district of the student or may apply for a transfer in accordance with Section 8-103 of this title. SECTION 8. AMENDATORY 70 O.S. 2021, Section 3-139, is amended to read as follows: Section 3-139. A. A sponsoring school district shall determine whether a teacher who is employed by or teaching at a charter school or statewide virtual charter school and who was previously employed as a teacher at the sponsoring public school district shall not lose any right of salary status or any other benefit provided by law due to teaching at a charter scho ol or statewide virtual charter school upon returning to the sponsoring public school district to teach. B. A teacher who is employed by or teaching at a charter school or statewide virtual charter school and who submits an employment application to the school district where the teacher was employed immediately before employment by or at a charter school or statewide virtual charter school shall be given employment preference by the school district if: HB3545 HFLR Page 57 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 1. The teacher submits an employment application to the s chool district no later than three (3) years after ceasing employment with the school district; and 2. A suitable position is available at th e school district. SECTION 9. AMENDATORY 70 O.S. 2021, Section 3 -140, is amended to read as follows: Section 3-140. A. Except for a charter school sponsored by the State Board of Education, a A charter school with a brick-and-mortar school site or sites shall enroll those stude nts whose legal residence is within the boundaries of the schoo l district in which the charter school is located and who submit a timely application, or those students who transfer to the district in which the charter school is located in accordance with S ection 8-103 or 8-104 of this title, unless the number of appli cations exceeds the capacity of a program, class, grade level, or building. Students who reside in a school district where a charter school is located shall not be required to obtain a transfe r in order to attend a charter school in the school district of residence. If capacity is insufficient to enroll all eligible students, the charter school shall select students through a lottery selection process. Except for a charter school sponsored by the State Board of Education, a A charter school shall give enrollment preference to eligible students who reside within the boundaries of the school district in which the charter school is located. Except for a charter school sponsored by the HB3545 HFLR Page 58 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 State Board of Education, a charter school created after November 1, 2010, shall give enrollment preference to eligible students who reside within the boundaries of the school district in which the charter school is located and who attend a school site that has been identified as in need of improvement by the State Board of Educ ation pursuant to the Elementary and Secondary Education Act of 1965, as amended or reauthorized. A charter school may limit admission to students within a given age group or grade level. A charter school sponsored by the State Board of Education Statewide Charter School Board when the applicant of the charter school is the Office of Juvenile Affairs shall limit admission to youth that are in the custody or supervision of the Office of Juveni le Affairs. B. Except for a charter school sponsored by the Sta te Board of Education, a A charter school shall admit students who reside in the attendance area of a school or in a school district that is u nder a court order of desegregation or that is a p arty to an agreement with the United States Department of Educat ion Office for Civil Rights directed towards mediating alleged or proven racial discrimination unless notice is received from the resident sch ool district that admission of the student would v iolate the court order or agreement. C. A charter school may de signate a specific geographic area within the school district in which the charter school is located as an academic enterprise zone and may li mit admissions to students who reside within that area. An academic enterprise zone shall be a HB3545 HFLR Page 59 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 geographic area in which sixty percent (60%) or more of the children who reside in the area qualify for the free or reduced school lunch program. D. Except as provided in subsections B and C of this section, a charter school or statewide virtual charter school shall not limit admission based on ethnicity, national origin, gender, income level, disabling condition, proficiency in the English language, measures of achievement, aptitude, or athletic ability. E. A sponsor of a charter school The Statewide Charter School Board shall not restrict the number of students a charter school or statewide virtual charter school may enroll. The capacity of the a charter school with a brick-and-mortar school site or sites shall be determined annually quarterly by the governing board of t he charter school based on the ability of the charter school to facilitate the academic success of the students, to achieve the other objectives specified in the charter contract and to ensure that the student enrollment does not exceed the capacity of its facility or site pursuant to the provisions of Section 8-101.2 of this title. F. Beginning July 1, 2023, each statewide virtual charter school which has been approved and sponsored by the Statewide Charter School Board or any statewide virtual charter school for which the Board has assumed sponsorship as provided for in Section 1 of this act shall be considered a statewide virtual charter school HB3545 HFLR Page 60 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 the geographic boundaries of each statewide virtual charter school shall be the borders of the state. G. Beginning July 1, 202 3, students enrolled full-time in a statewide virtual charter school sponsored by the Statewide Charter School Board shall not be authoriz ed to participate in any activities administered by the Oklahoma Secondary Schools Activities Association. However, t he students may participate in intramural activities sponsored by a statewide virtual charter school, an online provider for the statewide virtual charter school, or any other outside organization. H. 1. Beginning July 1, 2023, a public school student who wishes to enroll in a statewide virtual charter school shall be considered a transfer student from his or her resident school district. A statewide virtual charter school shall pre-enroll any public school student whose parent or legal guardian expresses intent to enroll in the school. Upon pre-enrollment, the State Department of Education shall initiate a tr ansfer on a form to be completed by the receiving statewide virtual charter school. Upon approval of the receiving statewide virtual charter school, the student may begin instructional activities. Up on notice that a public school student has tran sferred to a statewide virtual charter school, the resident school dist rict shall transmit the records of the student within three (3) school days. HB3545 HFLR Page 61 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 2. The State Department of Education shall notify the Oklahoma Legislature and Governor if it determines tha t the information technology infrastructure nec essary to process the transfer of students to a statewide virtual charter school is inadequate and additional time is needed for implementation. 3. A public school student may transfer to one statewide virtual charter school at any time during a school year. For purposes of this subsection, "school year" shall mean July 1 through the following June 30. After one statewide virtual charter school transfer during a school year, a public school student shall not be permitted to transfer to any other statewide virtual cha rter school without the concurrence of both th e resident school district and the receiving statewide virtual charter school. A student shall have a grace period of fifteen (15) school days from the first day of enrollment in a statewide virtual charter school to wi thdraw without academic penalty and shall cont inue to have the option of one statewide virtual charter school tran sfer without the concurrence of both schools during that same school year. A statewide virtual charter school student that has utilized the allowable one transfer pursuant to this subsection shal l not be permitted to transfer to another district or othe r statewide virtual charter school without first notifying his or her resident district and initiating a new transfer. Upon cancellation of a transfer , the statewide virtual charter school shall transmit the records of the student to the new HB3545 HFLR Page 62 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 school district of the student within three (3) school days. Students enrolled in a statewide virtual charter school shall not be required to submit a statewide virtual charter school transfer for consecutive years of enrollment. Any stude nt enrolled in a statewide virtual charter school the year prior to the implementation of this section shall not be required to submit a transfer in order to remain enroll ed. I. 1. Beginning July 1, 2023, a student shall be eligible to enroll in a statewide virtual charter school sponsored by the Statewide Charter School Board pursuant to Section 1 of this act if he or she is a student whose parent or legal guardian is transferred or is pending transfer to a military installation within this state while on active military duty pursuant to an official militar y order. 2. A statewide virtual charter school shall accept applications by electronic means for enrollment and c ourse registration for students described in paragraph 1 of this subsection. 3. The parent or legal guardian of a student described in paragraph 1 of this subsection shall provide proof of residence in this state within ten (10) days after the published a rrival date provided on official documentation. A parent or legal guardian may use one of the following addresses as proof of residence: a. a temporary on-base billeting facility, b. a purchased or leased home or apartment, or HB3545 HFLR Page 63 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. federal government or p ublic-private venture off-base military housing. 4. The provisions of paragraph 3 of subsection H of this section shall apply to students described in paragraph 1 of this subsection. 5. For purposes of this subsection: a. "active military duty" means full-time military duty status in the active uniformed service of the United States including members of the National Guard and Military Reserve on active duty orders, and b. "military installation " means a base, camp, post, station, yard, center, homeport facility for any ship , or other installation under the jurisdiction of the Department of Defense or the United States Coast Guard. SECTION 10. AMENDATORY 70 O.S. 2021, Section 3 -142, is amended to read as follows: Section 3-142. A. The student membership and attendance of the a charter school or statewide virtual charte r school shall be considered separate from the student membership and attendance of the sponsor for the purpose of cal culating enrollment and funding including 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. A charter school or statewide virtual charter school HB3545 HFLR Page 64 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 shall receive the State Aid allocation, federal funds to which it is eligible and qualifies for , and any other state-appropriated revenue generated by its stu dents for the applicable year. Not more than three percent (3%) of the State Aid allocation may be charged by the sponsor as a fee for administrative services rendere d. The State Board Department of Education shall determine the policy and procedure for making payments to a charter school or statewide virtual charter school. The fee for administrative services as authorized in this subsection shall only be assessed on the State Aid allocation amount and shall not be assessed on any other appropriated amounts. A sponsor of a charter school The Statewide Charter School Board shall not charge any additional State Aid allocation or charge the charter school or statewide virtual charter school any additional a fee above the amounts allo wed by this subsection unless the additional fees are for additional administrative or other services rendered. The charter school sponsor shall provide to the State Department of Education financial records documenting any state funds charged by the sponsor for administrative servi ces 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 en rollment of students as of August 1 by 1.333. The charter schoo l shall receive revenue equal to that which would be generated by the estimated weighted average daily HB3545 HFLR Page 65 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 membership calculated pursuant to this paragraph. At midyear, the allocation for the cha rter 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 da ily 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 of a full-time statewide virtual charter school sponsored by the State wide Virtual Charter School Board shall be determined by multiplying the actual enrollment of students as of August 1 by 1.333. The full-time statewide virtual charter school shall receive revenue equal to that which would be generated by the estimated weighte d average daily membership calculated pursuant to this paragraph. At midyear, the allocation for the full-time statewide virtual charter school shall be adjusted using the first quarter weighted average daily membership for the statewide virtual charter school calculated pursuant to subsection A of this section . C. Except as explicitly authorized by state law, a charter school or statewide virtual charter school shall not be eligible to receive state-dedicated, local, or county revenue; provided, a charter school or statewide virtual charter school may be eligible to receive any other aid, grants, or revenues allowed to other HB3545 HFLR Page 66 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 schools. A charter school or statewide virtual charter school shall be considered a local education agency for purposes of funding. D. Any unexpended funds received by a charter school or statewide virtual charter school may be reserved and used for future purposes. The governing body board of a charter school or statewide virtual charter school shall not levy taxes or issue bonds. If otherwise allowed by law, the governing body board of a charter school or statewide virtual charter school may enter into private contracts for the purposes of borrowing money from lenders. If the governing body board of the charter school or statewide virtual charter school borrows money, the charter school or statewide virtual charter school shall be solely responsible for repaying the debt, and the state or the sponsor Statewide Charter School Board shall not in any way be responsible or obligated to repay the debt. E. Any charter school or statewide virtual charter school which chooses to lease property shall be eligible to receive current government lease rates. F. Except as otherwise provided in this subsection, each charter school shall pay to the Charter Scho ol Closure Reimbursement Revolving Fund created i n 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) week s of the school year. Each charter school shall complete the payment every school year within HB3545 HFLR Page 67 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 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 Doll ars ($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 Statewide Charter School Board to be designated the "Charter School Closure Reimbursement Revolving Fund". The fund shall be a conti nuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the State Department of Education Statewide Charter School Board from charter schools as provided in subsection F of this section. All monies accruing to t he credit of said fund are hereb y appropriated and may be budgeted and expended by the State Department of Education Statewide Charter School Board for the purpose of reimbursing charter school sponsors for costs paying for expenditures incurred due to the clo sure of a charter school. Expenditures from said fund shall be made upon warrants issued by the State Treasurer against claims filed as 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 11. AMENDATORY 70 O.S. 2021, Section 3-143, is amended to read as follows: HB3545 HFLR Page 68 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 3-143. The State Board of Education Statewide Charter School Board shall issue an annual report to the Legislature and the Governor outlining the status of charter schools and statewide virtual charter schools in the state. Each charter school and statewide virtual charter school shall annually file a report with the Office of Accountability. The report Statewide Charter School Board that shall include such information as requested by the Office of Accountability, Board including but not limited to information o n enrollment, testing, curriculum, f inances, and employees. SECTION 12. AMENDATORY 70 O.S. 2021, Section 3 -144, is amended to read as follows: Section 3-144. A. There is hereby created in the State Treasury a fund to be designate d the "Charter Schools Incentive Fund". The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies appropriated by the Legislature, gifts, grants, devi ses, and donations from an y public or private source. The State Department of Education Statewide Charter School Board shall administer the fun d for the purpose of providing financial support to c harter school and statewide virtual charter school applicants and charter schools and statewide virtual charter schools for start-up costs and costs associated with renovati ng or remodeling existing buildings and structures for use by a charter school. The State Department of Education Statewide Charter School Board is authorized to allocate HB3545 HFLR Page 69 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 funds on a per-pupil basis for purposes of p roviding matching funds for the federal State Charter School Facilities Incentive Grants Program created pursuant to the No Child Left Behind A ct, 20 USCA, Section 7221d. B. The State Board of Educatio n Statewide Charter School Board shall adopt rules to implement the provisions of this section, including application and notification requirements. SECTION 13. AMENDATORY 70 O.S. 2 021, Section 3-145.5, is amended to read as follow s: Section 3-145.5 A. Notwithstanding any other prov ision of law, beginning July 1, 2014, no school district shall offer full-time virtual education to students who are not residents of the sch ool district or enter into a statewide virtual charter school contract with a provider to provide f ull-time virtual education to students who do not reside withi n the school district boundaries. B. Effective July 1, 2014, the Statewide Virtual Charter School Board shall succeed to any contractual rights and responsibilities incurred by a school distric t in a virtual charter sch ool contract executed prior to Janua ry 1, 2014, with a provider to provide full- time virtual education to students who do not reside within t he school district boundaries. All property, equipment, supp lies, records, assets, curre nt and future liability, e ncumbrances, obligations and indebte dness associated with the contract shall be transferred to the Statewide Virtual Charter School Board. HB3545 HFLR Page 70 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 Appropriate conveyances and other documents shall be executed to effectuate the transfer o f any property associated with the contract. Upon succession of the contract, the Board shall assume sponsorship of the virtual charter school for the remainder of th e term of the contract. Prior to the end of the current term of the contract, the Board shall allow the provider o f the virtual charter school to apply for renewal of the contract with the Board in accordance with the renewal procedures established pursua nt to Section 3-145.3 of this title. SECTION 14. AMENDATORY 70 O.S. 2021, Section 3-145.7, is amended to read as follows: Section 3-145.7 There A. Until July 1, 2023, there is hereby created in the State Treasury a revolving fund for the Statewide Virtual Charter School Board to be designated the "Statewide Virtual Charter School Board Revolving Fund". The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Statewide Virtual Charter School Board from State Aid pursuant to Section 3-145.3 of Title 70 of the Oklahoma Statutes this title or any other state appropriation. All monies accruing to the credit of the fund are hereby appropriated and ma y be budgeted and expended by th e Statewide Virtual Charter School Board for the purpose of supporting the mission of the Statewide Virtual Charter School Board. Expenditures from the fund shal l be made upon warrants issued by the HB3545 HFLR Page 71 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 State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. B. On July 1, 2023, the Statewide Virtual Charter School Board shall transfer any unencumbered funds in the Statewide Virtual Charter School Board Revolving Fund to the Statewide Charter School Board Revolving Fund created pursuant to Section 3 of this act. Any funds which are unexpended on Ja nuary 1, 2024, shall be transferred to the Statewide Charter School Board R evolving Fund. SECTION 15. AMENDATORY 70 O.S. 2021, S ection 3-145.8, is amended to read as follows: Section 3-145.8 A. It shall be the duty of each statewide virtual charter scho ol approved and sponsored by the Statewide Virtual School Board pursuant to the provisions of Section 3 -145.3 of Title 70 of the Oklahoma Statutes Statewide Charter School Board to keep a full and compl ete record of the attendance of all students enrolled in the statewide virtual charter school in one of the student information systems approved by the State Department o f Education and locally selected by the statewide virtual charter school from the approved list. B. By July 1, 2020, the governing body board of each statewide virtual charter school shall adopt an attendance policy. The policy may allow attendance to be a proportional amount of the re quired attendance policy provision s based upon the date of enrollment of HB3545 HFLR Page 72 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 student. The attendance policy shall include the following provisions: 1. The first date of attendance and membership shall be the first date the student completes an instructio nal activity.; 2. A student who at tends a statewide virtual charter school shall be considered in attendanc e for a quarter if the student: a. completes instructional activities on no less than ninety percent (90%) of the days within the quarter, b. is on pace for on-time completion of the course as defined by the governing board of the statewide virtual charter school, or c. completes no less than seventy -two instructional activities within the quarter of the academic year .; and 3. For a student who does not meet any of the criteria set forth in paragraph 1 or 2 of this subsection, the amount of attendance recorded shall be the greater of: a. the number of school days during which the student completed the instructional activities during the quarter, b. the number of school days prop ortional to the percentage of the course that has been completed, or HB3545 HFLR Page 73 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 number of school days proportional to the percentage of the required minimum number of completed instructional activities during the quarter .; C. For the purposes of this section, "instructional activities" shall include instructional meetings with a teacher, completed assignments that are used to record a grade for a student that is factored into the student 's grade for the semester during which the assignment is completed, testing , and school-sanctioned field trips, and orientation. D. Each statewide virtual charter school approved and sponsored by the Statewide Virtual Charter School Board pursuant to the provisions of Section 3 -145.3 of this title Statewide Charter School Board shall offer a student orientation, notify the parent or legal guardian and each student who enrolls in that school of the requirement to participate in the student orientation, and require all students enrolled to complete the student orientation prior to completing any other instructional activity. The Statewide Virtual Charter School Board shall promulgate rules to develop materials for orientation. E. Any student that is behind pace and does not complete an instructional activity for a fifteen-school-day period shall be withdrawn for truancy. The statewide virtual charter school shall submit a notification to the parent or legal guardian of a student who has been withdrawn for truancy or is approaching truancy. HB3545 HFLR Page 74 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 F. A student who is reported for truancy two times in the same school year shall be withdrawn and prohibited from enrol ling in the same statewide virtual charter school for the remainder of the school year. G. The governing body board of each statewide virtual chart er school shall develop, adopt, and post on the school 's website a policy regarding consequences for a stude nt's failure to attend school and complete in structional activities. The policy shall state, at a minimum, that if a student fails to consistently attend school and complete instructional activities af ter receiving a notification pursuant to subsection E of this section and reasonable intervention strategies have been implemented, a student shall be subject to certain consequences including withdrawa l from the school for truancy. H. If a statewide virtual charter school withdraws a student pursuant to subsections F and G of this section, the statewide virtual charter school shall immediately notify the student 's resident district in writing of the st udent's disenrollment. I. The provisions of subsections F, G, and H of this section shall not be in effect until the implementation of subsection H of Section 3-145.3 3-140 of this title. J. The Statewide Virtual Charter School Board may promulgate rules to implement the provisions of this se ction. HB3545 HFLR Page 75 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 16. AMENDATORY 70 O.S. 2021, Section 1210.704, is amended to read as follows: Section 1210.704 A. Beginning with the 2024 –2025 school year, all public high schools in this sta te shall make a minimum of four advanced placement courses available to students. B. Local School district boards of education in each district shall be responsible for ensuring annually that all high school students have access to advanced placement cour ses beginning in the 2024-2025 school year. Such access may be provided through enrollment in courses offer ed through: 1. A school site or sites within the district; 2. A career and technology institution technology center school within the district; 3. A An online learning program offered by the Statewide Virtual Charter School Board or one of its vendors; or 4. A school site or sites in another school district. C. The Statewide Virtual Charter School Board shall maintain an online learning platform to provide high quality online learning opportunities for Oklahoma students that are aligned with the subject matter standards adopted by the State Board of Education pursuant to Section 11-103.6 of Title 70 of the Oklahoma Statutes this title. The Board shall implement online courses, with an emphasis on science, technology, engineering , and math (STEM) courses, foreign language courses, and advanced placement courses. HB3545 HFLR Page 76 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 online platform shall be a vailable to all Oklahoma school districts. D. The State Department of Education shall provide information to all local boards of education, to be distributed to th eir students and parents, on available opportunities and the enrollment process for students to take advanced placement cour ses. The information shall explain the value of advanced placement courses in preparing students for postse condary-level coursework, enabling students to gain access to postsecondary opportunities, and qualifying for schola rships and other financial aid o pportunities. E. The State Department of Education shall retain records of which options outlined in subsec tion B of this section local boards of education selected for their students and make the information available on the Department's website. F. As used in this section, "advanced placement course " shall have the same meaning as provided in paragraph 1 of Section 1210.702 of Title 70 of the Oklahoma Statutes this title. SECTION 17. REPEALER 70 O.S. 2021, Sections 3-132, 3- 135, 3-145.1, 3-145.2, 3-145.3, and 3-145.4 are hereby repealed. SECTION 18. Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, and 17 of this act shall become effective July 1, 2023. SECTION 19. Sections 1, 2, and 3 of this act shall become effective July 1, 2022. HB3545 HFLR Page 77 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 20. It being immediately necessary for the p reservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof thi s act shall take effect and be in full force from and after its passage and approval. COMMITTEE REPORT BY: COMMITTEE ON COMMON EDUCATION, dat ed 03/02/2022 - DO PASS, As Amended.