Oklahoma 2022 Regular Session

Oklahoma House Bill HB3643 Compare Versions

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30-April 12, 2022
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3328 ENGROSSED HOUSE
3429 BILL NO. 3643 By: Dills, Hardin (David),
3530 Provenzano, Johns, and
3631 Waldron of the House
3732
3833 and
3934
4035 Pemberton of the Senate
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4542 An Act relating to schools; amending 70 O.S. 2021,
4643 Section 3-145.3, which relates to duties of the
4744 Statewide Virtual Charter School Board; requiring
4845 compliance with the O klahoma Charter Schools Act;
4946 modifying limitation on fee for administrative
5047 expenses and support; deleting duplicative language;
5148 subjecting virtual charter schools to t he same
5249 compliance requirements as charter schools; updating
5350 statutory language; establishing certain requirements
5451 for virtual charter school governing boards;
5552 prescribing duties for certain personnel; requiring
5653 State Department of Education and spo nsor to publish
5754 certain contracts on their websites; subjecting
5855 certain board members to instru ction and continuing
5956 education requirements; prohibiting certain conflic ts
6057 of interest and pecuniary gain; disallowing certain
6158 appointments or selections of members; designating
6259 certain funds as public funds; prohibiting transfer
6360 or conversion of state funds to private funds;
6461 clarifying provision; requiring payments from charter
6562 schools to comply with certain provisions; directing
6663 organization to provide certain documents; subjecting
6764 certain funds to audit, transparency, oversight and
6865 financial reporting; requiring certain funds to
6966 remain public funds; prescribing assignment of grade
7067 for participation in certain extracurricular or
7168 educational activities; d eclaring certain property to
7269 remain public property of the charter school;
7370 mandating an operating agreement review of certain
7471 charter schools; establishing procedures for review;
7572 requiring written agreement for certain expenditures;
73+mandating criminal hist ory record checks for certain
74+personnel; prescribing process and payment of checks;
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103-mandating criminal hist ory record checks for certain
104-personnel; prescribing process and payment of checks;
105101 prohibiting certain activities by management
106102 organizations; amending 70 O.S. 2021, Section 5-200,
107103 which relates to management organizations; adding
108104 definition for charter m anagement organization;
109105 requiring amounts paid to certain organizations be
110106 pursuant to contract terms; mandating disclosure
111107 pursuant to certain guidelines; prohibiting
112108 commingling of certain s chool funds; amending 70 O.S.
113109 2021, Section 18-118, which relates to State Aid
114110 audits; requiring return of state monies which are
115111 illegally apportioned, disbursed, or expended by
116112 certain organizations; specifying whe n state funds
117113 shall be withheld; requiring suits to recover
118114 illegally apportioned state monies; providing for
119115 codification; providing an effective date; and
120116 declaring an emergency.
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125121 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
126122 SECTION 1. AMENDATORY 70 O.S. 2 021, Section 3-145.3, is
127123 amended to read as follows:
128124 Section 3-145.3 A. Subject to the requirements of the Oklahoma
129125 Charter Schools Act, the Statewide Virtual Charter Schoo l Board
130126 shall:
131127 1. Provide oversight of the operations of statewide virtual
132128 charter schools in this state;
133129 2. Establish a procedure for accepting, approving and
134130 disapproving statewide virtual charter school applications and a
135131 process for renewal or revoca tion of approved charter school
136132 contracts which minimally meet the procedures set forth in the
137133 Oklahoma Charter Schools Act;
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165160 3. Make publicly available a list of supplemental online
166161 courses which have been reviewed and certified by the Statewide
167162 Virtual Charter School Board to ensure that the courses are high
168163 quality options and are al igned with the subject matter standards
169164 adopted by the State Board of Education pursuant to Section 11-103.6
170165 of this title. The Statewide Virtual Charter School Board shall
171166 give special emphasis on listing supplemental online courses in
172167 science, technology, engineering and math (STEM), foreign language
173168 and advanced placement courses. School districts shall not be
174169 limited to selecting supplemental online courses that have bee n
175170 reviewed and certified by the Statewide Virtual Charter School Board
176171 and listed as provided for in this paragraph; and
177172 4. In conjunction with the Office of Management and Enterprise
178173 Services, negotiate and enter into contracts with supplemental
179174 online course providers to offer a state rate price to school
180175 districts for supplemental o nline courses that have been reviewed
181176 and certified by the Statewide Virtual Charter School Board and
182177 listed as provided for in paragraph 3 of this subsection.
183178 B. Except as otherwise provided by law, each statewide virtual
184179 charter school which has been ap proved and sponsored by the Board
185180 shall be subject to and comply with the requirements of the Oklahoma
186181 Charter Schools Act. Each statewide virtual charter school which
187182 has been approved and sponsored by the Board or any virtual charter
188183 school for which the Board has assumed sponsorship of as provided
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216210 for in Section 3-145.5 of this title shall be considered a statewide
217211 virtual charter school and, except as provided in subsecti on H of
218212 this section, the geographic boundaries of each statewide virtual
219213 charter school shall be the borders of the state.
220214 C. Each statewide virtual charter school approv ed by the
221215 Statewide Virtual Charter School Board shall be eligible to receive
222216 federal funds generated by students enrolled in the charter school
223217 for the applicable year. Each statewide virtual charter school
224218 shall be considered a separate local education agency for purposes
225219 of reporting and accountability.
226220 D. As calculated as provided f or in Section 3-142 of this
227221 title, a statewide virtual charter sch ool shall receive the State
228222 Aid allocation and any other state-appropriated revenue generated by
229223 students enrolled in the virtual charter school for the applicable
230224 year, less up to five percent (5%) three percent (3%) of the State
231225 Aid allocation, which may be retained by the Statewide Virtual
232226 Charter School Board for administrative expenses and to support the
233227 mission of the Board. A statewide virtual charter school shall be
234228 eligible for any other funding any other charter school is eligible
235229 for as provided for in Section 3-142 of this title. Each statewide
236230 virtual charter school shall be considered a separate local
237231 education agency for purposes of reporting and accountability.
238232 E. A virtual charter school shall be subject to the same
239233 reporting requirements, financial audits, audit procedures, and
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267260 audit requirements as a school district and compliance requirements
268261 provided in Section 3-136 of this title. The State Department of
269262 Education or State Auditor and Inspector may conduct financial,
270263 program or compliance audits. A virtual charter school shall use
271264 the Oklahoma Cost Accounting System (O CAS) to report financial
272265 transactions to the State Department of Education.
273266 F. A virtual charter school governing body board shall be
274267 responsible for the policies tha t govern the operational decisions
275268 of the virtual charter school. The governing body board of a
276269 virtual charter school shall be subject to the same conflict of
277270 interest requirements as a member of a local school board including,
278271 but not limited to, Sectio ns 5-113 and 5-124 of this title. Members
279272 appointed to the governing body board of a virtual charter schoo l
280273 after July 1, 2019, shall be subject to the same instruction and
281274 continuing education requirements as a member of a local school
282275 board and pursuant to Section 5-110 of this title, complete twelve
283276 (12) hours of instruction within fifteen (15) months of ap pointment
284277 to the governing body board, and pursuant to Section 5-110.1 of this
285278 title, attend continuing education. Members appointed to the
286279 governing board of a vi rtual charter school prior to July 1, 2019,
287280 shall comply with the requirements of this subsec tion and, within
288281 fifteen (15) months of the effective date of t his act, shall
289282 complete twelve (12) hours of instruct ion pursuant to Section 5-110
290283 of this title.
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318310 G. Students enrolled full-time in a statewide virtual charter
319311 school sponsored by the Statewid e Virtual Charter School Board shall
320312 not be authorized to participate in any activities administered by
321313 the Oklahoma Secondary Schools Activities Association. How ever, the
322314 students may participate in intramural activities sponsored by a
323315 statewide virtual charter school, an online provider for the charter
324316 school or any other outside organization.
325317 H. 1. Beginning with the 2021-2022 school year, a public
326318 school student who wishes to enroll in a virtual charter school
327319 shall be considered a transfer student f rom their resident school
328320 district. A virtual charter school shall pre-enroll any public
329321 school student whose parent expresses intent to enroll in the
330322 district virtual charter school. Upon pre-enrollment, the State
331323 Department of Education shall initiate a transfer on a form to be
332324 completed by the receiving virtual charter school. Upon approval of
333325 the receiving virtual c harter school, the student may begin
334326 instructional activities. Upon notice that a public sc hool student
335327 has transferred to a virtual cha rter school, the resident school
336328 district shall transmit the student's records within three (3)
337329 school days.
338330 2. The State Department of Education shall notify the
339331 Legislature and Governor if it determines that the information
340332 technology infrastructure nec essary to process the transfer of
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368359 students to a virtual chart er school is inadequate and one (1)
369360 additional school year is needed for implementation.
370361 3. A public school student may transfer to one statewide
371362 virtual charter school at any time during a scho ol year. For
372363 purposes of this subsection, "school year" shall mean July 1 through
373364 the following June 30. After one st atewide virtual charter school
374365 transfer during a school year, no public school student shall be
375366 permitted to transfer to any other statew ide virtual charter school
376367 without the concurrence of both th e resident school district and the
377368 receiving virtual chart er school. A student shall have a grace
378369 period of fifteen (15) school days from the first d ay of enrollment
379370 in a statewide virtual chart er school to withdraw without academic
380371 penalty and shall cont inue to have the option of one virtual charter
381372 school transfer without the concurrence of both districts during
382373 that same school year. A statewide vi rtual charter school student
383374 that has utilized the allowable one transfer pursuant to this
384375 subsection shall not be permitted to transfer to another district or
385376 other statewide virtual charter school without first notifying his
386377 or her resident district and initiating a new transfer. Upon
387378 cancellation of a transfer the virtual charter school shall transmit
388379 the student's records to the student's new school district wit hin
389380 three (3) school days. Students enrolled in a statewide virtual
390381 charter school shall no t be required to submit a virtual charter
391382 transfer for consecutive years of enrollment. Any student enrol led
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419409 in a statewide virtual charter school the year prior t o the
420410 implementation of this section shall not be required to submit a
421411 transfer in order to remain enrolled.
422412 4. For purposes of this sub section, "parent" shall mean the
423413 parent of the student or per son having custody of the student as
424414 provided for in parag raph 1 of subsection A of Section 1-113 of this
425415 title.
426416 I. 1. A student shall be eligible t o enroll in a statewide
427417 virtual charter schoo l if he or she is a student whose parent or
428418 legal guardian is transferred or is pending transfer to a military
429419 installation within this state while on active military duty
430420 pursuant to an official military order.
431421 2. A statewide virtual charter school shall accept applications
432422 by electronic means for enrollment and c ourse registration for
433423 students described in paragraph 1 of this subsection.
434424 3. The parent or legal guardian of a student described in
435425 paragraph 1 of this subsection shall provide proof of resid ence in
436426 this state within ten (10) days after the published a rrival date
437427 provided on official documentation. A parent or legal guardian may
438428 use the following addresses as proof of residence:
439429 a. a temporary on-base billeting facility,
440430 b. a purchased or leased home or apartment, or
441431 c. federal government or p ublic-private venture off-base
442432 military housing.
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470459 4. The provisions of paragraph 3 of subsection H shall apply to
471460 students described in paragraph 1 o f this subsection.
472461 5. For purposes of this subsection:
473462 a. "active military duty" means full-time military duty
474463 status in the active uniformed service of the United
475464 States including members of the National Guard and
476465 Military Reserve on active duty orders , and
477466 b. "military installation" means a base, camp, post ,
478467 station, yard, center, homeport facility for any ship
479468 or other installation under the jurisdiction of the
480469 Department of Defense or the United States Coast
481470 Guard.
482471 J. A virtual charter school shall not accept o r deny a transfer
483472 based on ethnicity, nationa l origin, gender, income level, disabling
484473 condition, proficiency in the English language, measure of
485474 achievement, aptitude or athletic ability.
486475 K. The decision of the Statewide Virtual Charter School Board
487476 to deny, nonrenew or terminate the charter contra ct of a statewide
488477 virtual charter school may be appealed t o the State Board of
489478 Education within thirty (30) days of the decision by the Statewide
490479 Virtual Charter School Board. The State Board of Education shall
491480 act on the appeal within sixty (60) days of receipt of the request
492481 from the statewide virtual charter school applicant. The State
493482 Board of Education may reverse the decision of the Statewide Virtual
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521509 Charter School Board or may remand the matter back to t he Statewide
522510 Virtual Charter School Board for further proceeding as directed.
523511 SECTION 2. NEW LAW A new sec tion of law to be codified
524512 in the Oklahoma Statutes as Section 3-145.9 of Title 70, unless
525513 there is created a duplication in nu mbering, reads as follows:
526514 A. Beginning with the 2022-2023 school year, any governing
527515 board of a charter sc hool which contracts with an educational
528516 management organization or charter management organization as
529517 defined in Section 5-200 of Title 70 of the Oklahoma Statutes shall:
530518 1. Consist of a minimum of five (5) members, including one
531519 member who shall be a pa rent, grandparent, legal guardian , or
532520 learning coach of a student who attends the charter school. As used
533521 in this paragraph, "learning coach" means a designated person who
534522 has the primary responsibility of being actively involved in all
535523 school-related work and activities of a student. The bylaws of the
536524 charter school shall set specific terms of servic e for charter
537525 school governing board members;
538526 2. Meet at least one (1) time per month;
539527 3. Adopt a charter which shall ensure compliance with the same
540528 requirements and guidelines as provided in Section 3 -136 of Title 70
541529 of the Oklahoma Statutes;
542530 4. Appoint an encumbrance clerk as provided in Section 5-119 of
543531 Title 70 of the Oklahoma Statutes and a treasurer as provided in
544532 Section 5-114 of Title 70 of the Oklahoma Statutes. Upon
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572559 appointment, the encumbrance clerk and treasurer shall attend and
573560 complete at least eight (8) hours of instruction offered by an
574561 auditor approved by the State Auditor and Inspector. Each year, the
575562 encumbrance clerk and treasurer shall complete at least three (3)
576563 hours of continuing education offered by an auditor approved by the
577564 State Auditor and Inspector; and
578565 5. Submit to the State Departme nt of Education copies of any
579566 contract executed between the charter school governing board or
580567 charter school sponsor governing board and an educational management
581568 organization or charter management organization. The Department and
582569 the sponsor shall publish the contrac ts on their websites.
583570 B. Beginning with the 2022-2023 school year, members of a
584571 charter school governing board which co ntracts with an educational
585572 management organization or charter management organization shall:
586573 1. Not receive pecuniary gain, incidentally or otherwise, from
587574 the earnings of the educational management organization , charter
588575 management organization , or school; and
589576 2. Not be appointed or selected by any person affiliated with
590577 the educational management organization or charter management
591578 organization.
592579 SECTION 3. NEW LAW A new section of law to be codified
593580 in the Oklahoma Statutes as Section 3-145.10 of Title 70, unless
594581 there is created a duplication in numbering, reads as follows:
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622608 A. 1. State funds appropriated to any charter school which
623609 contracts with an educational management organization or charter
624610 management organization as defined in Section 5 -200 of Title 70 of
625611 the Oklahoma Statutes, including the State Aid allocation and any
626612 other state-appropriated revenue pursuant to Section 3-142 of Title
627613 70 of the Oklahoma Statutes, shall remain public funds maintained in
628614 public accounts subject to audit, transparency, oversight , and
629615 financial reporting and shall not be transferred or converted in any
630616 way to private funds except for funds which are pa id for charter
631617 school expenses and funds which a re paid to the educational
632618 management organization or charter management orga nization from the
633619 charter school pursuant to the terms of the contract and in
634620 accordance with state law and Internal Revenue Service requirements.
635621 If there is any question or potential discrepancy regarding use of
636622 funds paid to the educational management organization or charter
637623 management organization by the State Department of Education,
638624 charter school governing board or charter school sponsor, the
639625 educational managemen t organization or charter management
640626 organization shall provide invoices and financial documentation to
641627 the requesting entity proving the educational management
642628 organization or charter management organization is following the
643629 terms of the contract and is in compliance with the law.
644630 2. Any state funds which are designated as student funds are
645631 appropriated for the benefit of the student, including
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673658 extracurricular and educational activity funds, and shall remain
674659 public funds maintained in public accounts subject to audi t,
675660 transparency, oversight and financial reporting and expended in
676661 accordance with purchasing requirements provided in Section 5-135 of
677662 Title 70 of the Oklahoma Statutes. Students shall receive a grade
678663 for participation in extracurricular or educational a ctivities as
679664 described in this subsection.
680665 3. Any property purchased with public funds pursu ant to this
681666 section may be assigned to employees or students of the charter
682667 school for charter school employment, extracurricular, or
683668 educational purposes, but sha ll remain public property of the
684669 charter school.
685670 B. In the third year of the charter school contract term, an
686671 auditor selected from a list of auditors approved and maintain ed by
687672 the State Auditor and Inspector s hall conduct an operating agreement
688673 review of each charter school which contracts with an educational
689674 management organization or charter management organization to verify
690675 the charter school and the educational ma nagement organization or
691676 charter management organization are following the terms of t he
692677 contract and complying with state law, federal law, and Internal
693678 Revenue Service requirements. The auditor may request addition al
694679 documentation from the charter school , educational management
695680 organization, or charter management organization to address any
696681 question or potential discrepancy. The chart er school sponsor shall
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724708 pay for the expenses related to the review, oversee the re view, and
725709 provide a full report of the review to the go verning boards of the
726710 charter school and the charter school sponsor.
727711 C. Every provider or entity that contracts with a charter
728712 school for expenditure of sta te funds pursuant to p aragraph 2 of
729713 subsection A of this section shall:
730714 1. Have an agreement in writing with the charter school which
731715 clearly states the goods or services being provid ed by the provider
732716 or entity pursuant to the contract and the costs thereof and that
733717 such goods, services, and employees of the provider or entity comply
734718 with federal and state laws; and
735719 2. Have on file with the State Department of Education a
736720 current Oklahoma criminal history record check from the Oklahoma
737721 State Bureau of Investigation or equivale nt criminal history r ecord
738722 check from another state as well as a national cri minal history
739723 record check as defined in Section 150.9 of Title 74 of the Oklahoma
740724 Statutes for every owner and employ ee of the provider or entity who
741725 will have contact with stude nts pursuant to the c ontract. Upon
742726 receipt of the Oklahoma criminal history record check or equivalent
743727 criminal history record check from another state, the provider or
744728 entity may begin extracur ricular or educational activities until
745729 receipt of the nation al criminal history r ecord check. The provider
746730 or entity shall be responsibl e for the cost of the crimin al history
747731 record checks. Results of the check s shall be included as a
748732
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775758 requirement of the contract and reported to the governing board of
776759 the charter school.
777760 D. An educational management organization or charter management
778761 organization shall not:
779762 1. Manage or control the governing board of a charter school ,
780763 including, but not limited to, sett ing meeting agendas, adopting
781764 charter school policies, or making budget decisions on behalf of the
782765 charter school;
783766 2. Employ a charter school superintendent who is a lso an owner
784767 of the educational management organization or charter management
785768 organization, unless the ownership stake of the supe rintendent is
786769 less than ten percent (10%);
787770 3. Employ legal counsel who also represents the charter school
788771 or charter school governing board which has an agreement with the
789772 educational management organization or charter management
790773 organization; and
791774 4. Request public employees, including, but not limited to,
792775 teachers and other cha rter school employees to complete tasks or
793776 perform duties that the educational management organization or
794777 charter management organization has been contracted to fulfill .
795778 SECTION 4. AMENDATORY 70 O.S. 2021, Section 5-200, is
796779 amended to read as follows:
797780 Section 5-200. A. As used in this section, "educational title:
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825807 1. "Educational management organization" means a for-profit or
826808 nonprofit organization that rece ives public funds to provide
827809 administration and management services for a charter school,
828810 statewide virtual charter school , or traditional public school ; and
829811 2. "Charter management organization" means a nonprofit
830812 organization that receives public funds to provide administration
831813 and management services for a charter schoo l, statewide virtual
832814 charter school, or traditional publ ic school.
833815 B. A charter school that contracts w ith an educational
834816 management organization or charter management organization shall use
835817 the Oklahoma Cost Accounting System (OCAS) to report the total
836818 amount paid to an educational management organization or charter
837819 management organization pursuant to the terms of the contract as
838820 well as actual itemized expenditure information for the good s or
839821 services provided by the management organization as defined by OC AS
840822 expenditure codes, including the total compensatio n package of the
841823 superintendent including the ba se salary, insurance, retirement and
842824 other fringe benefits.
843825 C. Any Pursuant to Internal Revenue Service guidelines, any
844826 owner of an educational management o rganization or charter
845827 management organization shall be required to disclose to the
846828 governing board of the school in a public meeting any ownership
847829 position in any business that contra cts or proposes to contract with
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875856 the same public school that the educati onal management organization
876857 or charter management organization is managing.
877858 D. An educational management or ganization or a charter
878859 management organization which contracts with more than one school
879860 district shall not commingle funds of the school districts.
880861 E. Whenever any person shall enter into a c ontract with any
881862 school district or public charter school in the state to teach in
882863 such school district or public charter sc hool the contract shall be
883864 binding on the teacher and on the board of education until the
884865 teacher legally has been discharged from t he teaching position or
885866 released by the board of education f rom the contract. Except as
886867 provided in Section 5 -106A of Title 70 of the Oklahoma Statutes this
887868 title, until such teacher has been thus discharged or released, the
888869 teacher shall not have authority to enter into a contract with any
889870 other board of educatio n in Oklahoma for the same time covered by
890871 the original contract . If upon written complaint by the board of
891872 education in a district any teacher is reported to have failed to
892873 obey the terms of the c ontract previously made and to have entered
893874 into a contract with another board of education, including a public
894875 charter school board of education, without having been released from
895876 the former contract except as provided in Section 5 -106A of Title 70
896877 of the Oklahoma Statutes this title, the teacher, upon being fou nd
897878 to be employed full-time for another public school, including a
898879 public charter school in the state, at a hearing held before the
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926906 State Board of Education, shall have such teacher's certificate
927907 suspended for the remainder of the term for which the contra ct was
928908 made.
929909 SECTION 5. AMENDATORY 70 O.S. 2021, Section 18 -118, is
930910 amended to read as foll ows:
931911 Section 18-118. A. The State Auditor and Inspector shall
932912 approve auditors who shall audit the funds of the public school
933913 districts and the use made of the monies thereof, and shall make
934914 such other audits as may be required by the State Auditor and
935915 Inspector.
936916 B. School districts and officers and employees thereof who
937917 divert any monies received by a district from the purpose for which
938918 the monies were apportioned to the district shall be jointly and
939919 severally liable for any such diversion.
940920 C. If audits disclose that state monies have been illegally
941921 apportioned to, or illegally dis bursed or expended by, a school
942922 district or any of its off icers or employees or an educational
943923 management organization or charter management organizati on as
944924 defined in Section 5-200 of this title or any of its owners or
945925 employees, the State Board of Education shall make demand that the
946926 monies be returned to the S tate Treasurer by such the school
947927 district or educational management organization or charter
948928 management organization. If the monies are illegally apportioned to
949929 or disbursed or expended by a school district or any of its officers
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977956 or employees and the monies are not returned, the State Board of
978957 Education shall withhold the unreturned amoun t from subsequent
979958 allocations of state funds otherwise due the district .
980959 D. The State Board of Education shall cause suit to be
981960 instituted to recover for the state any monies illegally
982961 apportioned, disbursed, or expended, if not otherwise recovered as
983962 provided herein.
984963 SECTION 6. This act shall become e ffective July 1, 2022.
985964 SECTION 7. It being immediately necessary for the preservation
986965 of the public peace, health or safety, an emergency is hereby
987966 declared to exist, by re ason whereof this act shall take effect and
988967 be in full force from a nd after its passage and approval.
989-COMMITTEE REPORT BY: COMMITTEE ON EDUCATION
990-April 12, 2022 - DO PASS
968+Passed the House of Representatives the 14th day of March, 2022.
969+
970+
971+
972+
973+ Presiding Officer of the House
974+ of Representatives
975+
976+
977+Passed the Senate the ___ day of __________, 2022.
978+
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980+
981+
982+ Presiding Officer of the Senate