Oklahoma 2022 Regular Session

Oklahoma House Bill HB3644 Compare Versions

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28-ENGROSSED HOUSE
29-BILL NO. 3644 By: Dills, Hardin (David),
30-Johns, and Waldron of the
31-House
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
30+
31+STATE OF OKLAHOMA
32+
33+2nd Session of the 58th Legislature (2022)
34+
35+COMMITTEE SUBSTITUTE
36+FOR
37+HOUSE BILL NO. 3644 By: Dills and Hardin (David) of
38+the House
3239
3340 and
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3542 Taylor of the Senate
3643
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48+
49+COMMITTEE SUBSTITUTE
4150
4251 An Act relating to schools; amending 70 O.S. 20 21,
4352 Sections 3-135, 3-136, 3-137, and 3-142, which relate
4453 to the Oklahoma Charter Schools Act; requiring
4554 charter school to provi de certain notice to sponsor;
4655 directing sponsor to use performance framework for
4756 charter school evaluation; authorizing development of
4857 certain separate fram ework; adding minimum
4958 requirements for framework; mandating annual
5059 evaluation; directing presentatio n of results to
5160 certain governing boards; defining term; subjecting
5261 charter school to certain spending limitations;
5362 directing charter school governing board to comply
5463 with certain acts; subjecting charter school sponsor
5564 governing board to certain conflict of interest
5665 requirements; requiring charter school governing
5766 board to comply with ce rtain instruction and
5867 continuing education requirements; modifying
5968 procedures for charter school contracts; permitting
6069 sponsor to require charter school to develop a
6170 corrective action plan; authorizing nonre newal of
6271 contract in certain cases; specifying ho w sponsor fee
6372 should be used; requiring sponsor to publish certain
6473 report on its website; mandating sponsor to present
6574 report in public meeting; providing content for
6675 report; requiring sponsor board members t o complete
67-sponsor workshop requirement; amending 70 O.S. 2021,
68-Section 5-200, which relates to management
69-organizations; adding definition for charter
70-management organization; requiring amounts paid to
71-certain organizations be pursuant to contract terms;
72-mandating disclosure pursuant to certain guideli nes;
73-amending 70 O.S. 2021, Section 18-124, which relates
74-to limitations on admini strative services
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103+sponsor workshop requirement; amending 70 O.S. 2021,
104+Section 5-200, which relates to management
105+organizations; adding definition for charter
106+management organization; requiring amounts paid to
107+certain organizations be pursuant to contract terms;
108+mandating disclosure pursuant to certain guideli nes;
109+amending 70 O.S. 2021, Section 18-124, which relates
110+to limitations on admini strative services
101111 expenditures; providing applicability of limitation
102112 to certain charter school s; clarifying calculation
103113 for specified schools; modifying definition;
104114 providing for codification; providing an effective
105115 date; and declaring an emergency .
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111121 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
112122 SECTION 1. AMENDATORY 70 O.S. 2021, Section 3 -135, is
113123 amended to read as follows:
114124 Section 3-135. A. The sponsor of a charter school s hall enter
115125 into a written contract with the governing body board of the charter
116126 school. The contract shall incorporate the prov isions of the
117127 charter of the charter school and contain, but shall not be limited
118128 to, the following provisions:
119129 1. A description of the program to be offered by the school
120130 which complies with the purposes outlined in Section 3 -136 of this
121131 title;
122132 2. Admission policies and procedures;
123133 3. Management and administration of the charter school,
124134 including that a majority of the charter governing board members are
125135 residents of the State of Oklahoma and meet no less than quarterly
126-in a public meeting within the bo undaries of the school district in
127-which the charter school is located or within the St ate of Oklahoma
128-in the instance of multip le charter school locations by the same
129-sponsor;
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163+in a public meeting within the bo undaries of the school district in
164+which the charter school is located or within the St ate of Oklahoma
165+in the instance of multip le charter school locations by the same
166+sponsor;
156167 4. Requirements and procedures for program and financial
157168 audits;
158169 5. A description of how the charter school will comply with the
159170 charter requirements set forth in t he Oklahoma Charter Schools Act;
160171 6. Assumption of liability by the charter school;
161172 7. The term of the contract;
162173 8. A description of the high standards of expectation and rigor
163174 for charter school plans and assurance that charter school plans
164175 adopted meet at least those standards;
165176 9. Policies that require that the charter schoo l be as equally
166177 free and open to all students as traditional public schools;
167178 10. Procedures that require students enrolled in the charter
168179 school to be selected by lottery to ensure fairness if more students
169180 apply than a school has the capacity to accommod ate;
170181 11. Policies that require the charter school to be subject to
171182 the same academic standard s and expectations as existing public
172183 schools; and
173184 12. A description of the requiremen ts and procedures for the
174185 charter school to receive funding in accordance w ith statutory
175186 requirements and guidelines for existing public schools ; and
176-13. A requirement to promptly notify the sponsor in the
177-instance of any significant adverse actions, material findings of
178-noncompliance, or pendin g actions, claims, or proceedings in this
179-state relating to the charter school or an educational management
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214+13. A requirement to promptly notify the sponsor in the
215+instance of any significant adverse actions, material findings of
216+noncompliance, or pendin g actions, claims, or proceedings in this
217+state relating to the charter school or an education al management
206218 organization or charter management organization with which the
207219 charter school has a contract .
208220 B. A charter school shall not enter into an employment contract
209221 with any teacher or oth er personnel until the charter school has a
210222 contract with a spons oring school district. The em ployment contract
211223 shall set forth the personnel policies of the charter school,
212224 including, but not limited to, policies related to certification,
213225 professional development evaluation, suspension, dismissal and
214226 nonreemployment, sick leave, personal business leave, emergency
215227 leave, and family and medical leave. The contract shall also
216228 specifically set forth the salary, hours, fringe benefits, and work
217229 conditions. The contract may provide for employer-employee
218230 bargaining, but the charter school shall not be r equired to comply
219231 with the provisions of Sections 509.1 through 509.10 of this title.
220232 The contract shall conform to all applicable provisions set forth in
221233 Section 3-136 of this title.
222234 Upon contracting with any teacher or othe r personnel, the
223235 governing body board of the charter school shall, in writing,
224236 disclose employment rights of the emp loyees in the event the charter
225237 school closes or the charter is not renewed .
226-No charter school may begin serving students without a charter
227-contract executed in accordanc e with the provisions of the Oklahoma
228-Charter Schools Act and approved in an open meet ing of the sponsor.
229-The sponsor may establish reasonable preopening requir ements or
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265+No charter school may begin serving students without a charter
266+contract executed in accordanc e with the provisions of the Oklahoma
267+Charter Schools Act and approved in an open meet ing of the sponsor.
268+The sponsor may establish reasonable preopening requir ements or
256269 conditions to monitor the start-up progress of newly ap proved
257270 charter schools and ens ure that each school is prepared to open
258271 smoothly on the date agreed and to ensure tha t each school meets all
259272 building, health, safety, insurance and other legal requirements for
260273 the opening of a school.
261274 C. The performance pr ovisions within the charter co ntract shall
262275 be based on a performance framework that clearly sets forth the
263276 academic and operational performance indicators , measures and
264277 metrics that will guide the evaluations of the shall be used by
265278 charter school sponsors to evaluate their respective charter school
266279 by the sponsor schools. The sponsor may develop a separate
267280 performance framework to evaluate a charter school that has been
268281 designated by the Sta te Department of Education as implementing an
269282 alternative education program throughout the char ter school. The
270283 sponsor shall require a charter school to submit the data required
271284 in this section in the identical format that is required by the
272285 State Department of Education of all public schools in order to
273286 avoid duplicative administrative efforts or allow a charter school
274287 to provide permission to the Department to share all required d ata
275288 with the sponsor of the charter school. The performance framework
276-shall serve as the minimum requirement for charter school
277-performance evaluation and shall include, but not be limited to, the
278-following indicators, measures and metrics for, at a minim um:
279-1. Student academic proficiency;
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316+shall serve as the minimum requirement for charter school
317+performance evaluation and shall include, but not be limited to, the
318+following indicators, measures and metrics for, at a minim um:
319+1. Student academic proficiency;
306320 2. Student academic growth;
307321 3. Achievement gaps in both proficiency and growth between
308322 major student subgroups;
309323 4. Student attendance;
310324 5. Recurrent enrollment from year to year as determined by the
311325 methodology used for public schools in Oklahoma;
312326 6. In the case of high schools, graduatio n rates as determined
313327 by the methodology used for public schools in Oklahoma;
314328 7. In the case of high schools, postsecondary readiness;
315329 8. Financial performance and sustainability and compliance with
316330 state and Internal Revenue Service financial reporting requirements;
317331 and
318332 9. Audit findings or deficiencies;
319333 10. Accreditation and timely reporting; and
320334 11. Governing board performance and stewardship, including
321335 compliance with all ap plicable laws, regulations and terms of the
322336 charter contract.
323337 The sponsor shall annually evaluate its charter schools according to
324338 the performance framework. The results of the evaluation shall be
325-presented to the governing board of the charter school and the
326-governing board of the charter school sponsor in an open meeting.
327-D. The sponsor shall not request any metric or data from a
328-charter school that it does not produce or publish for all school
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366+presented to the governing board of the charter school and the
367+governing board of the charter school sponsor in an open meeting.
368+D. The sponsor shall not request any metric or data from a
369+charter school that it does not produce or publish for all school
355370 sites in the district or under its sponsorship, unless the metric or
356371 data is unique to a charter school.
357-E. A charter contract may shall provide for one or more schools
358-by an applicant charter district that may include multiple charter
359-sites to the extent approved by the sponsor and consist ent with
372+E. A charter contract may pr ovide for one or more schools by an
373+applicant to the extent approved by the sponsor and consist ent with
360374 applicable law. An applicant or the governing board of an applicant
361-may hold one or more charter contract s. Each charter school
362-district that is part of a charter contract shall be considered a
363-local educational agency, as defined in 20 U.S.C. Section 7801, and
364-shall be separate and distinct from any other charter school under
365-the same charter contract district. For the purposes of this
366-subsection, "separate and distinct " shall mean that a charter school
367-governing board with oversight of m ore than one charter district
368-shall not combine accounting, budgeting, recordkeeping, admissions,
369-employment, or policies and operational decisions of t he charter
370-schools it oversees.
375+may hold one or more charter contract s. Each charter schoo l that is
376+part of a charter contract shall be separate and distinct from any
377+other charter school under the same charte r contract. For the
378+purposes of this subsection, "separate and distinct " shall mean that
379+a charter school governing board with oversight of m ore than one
380+charter school shall not combine accounting, budgeting,
381+recordkeeping, admissions, employment , or policies and operational
382+decisions of the charter school s it oversees.
371383 SECTION 2. AMENDATORY 70 O.S. 2021, Section 3 -136, is
372384 amended to read as follows:
373385 Section 3-136. A. A charter school shall adopt a charter which
374386 will ensure complianc e with the following:
375387 1. A charter school shall comply with all federal regulat ions
376388 and state and local rules and statutes relating to h ealth, safety,
377389 civil rights and insurance. By January 1, 2000, the State
378-Department of Education shall prepare a list of relevant rules and
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417+Department of Education shall prepare a list of relevant rules and
405418 statutes which a charter school must comply with as requir ed by this
406419 paragraph and shall annually provide an update to the list;
407420 2. A charter school shall be nonsectarian in its programs,
408421 admission policies, employment practices, and all other operations.
409422 A sponsor may not authorize a charter school or program that is
410423 affiliated with a nonpublic sectarian school or r eligious
411424 institution;
412425 3. The charter school may provide a comprehensive program of
413426 instruction for a prekindergarten p rogram, a kindergarten progr am or
414427 any grade between grades one and twelve. Inst ruction may be
415428 provided to all persons between the ages of four (4) and twenty-one
416429 (21) years of age. A charter school may offer a curriculum which
417430 emphasizes a specific learn ing philosophy or style or c ertain
418431 subject areas such as mathematics, science, f ine arts, performance
419432 arts, or foreign language. The cha rter of a charter school which
420433 offers grades nine through twelve shall specifically address whether
421434 the charter school will comply with the graduat ion requirements
422435 established in Section 11 -103.6 of this title. No charter school
423436 shall be chartered for the purpose of offering a curriculum for deaf
424437 or blind students that is the same or similar to the curriculum
425438 being provided by or for educating deaf or blind students that are
426439 being served by the Oklah oma School for the Blind or the Oklahoma
427440 School for the Deaf;
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454468 4. A charter school shall participate in the testing as
455469 required by the Oklahoma School Testing Program Act and t he
456470 reporting of test results as is required of a school district. A
457471 charter school shall also provide any necessary data to the Office
458472 of Accountability;
459473 5. Except as otherwise provided for in the Oklahoma Charter
460474 Schools Act and its charter, a charter s chool shall be exempt from
461475 all statutes and rules relating to schools, boards of education, and
462476 school districts;
463477 6. A charter school , to the extent possible, shall be subject
464478 to the same reporting requirements, financial audits, audit
465479 procedures, and audit requirements as a school district. The State
466480 Department of Education or Stat e Auditor and Inspector may conduct
467481 financial, program, o r compliance audits. A charter school shall
468482 use the Oklahoma Cost Accounting System to report financial
469483 transactions to the sponsoring school dist rict or sponsor. The
470484 charter school shall be subjec t to the limitations on spending ,
471485 including provisions of the Oklahoma Constitution for any funds
472486 received from the state, either through the State Department of
473487 Education or other sources;
474488 7. A charter school shall comply with all federal and state
475489 laws relating to the education of children with disabilities in the
476490 same manner as a school district;
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503518 8. A charter school shall provide for a governing body board
504519 for the school which shall be responsible for the policies and
505520 operational decisions of the chart er school;
506521 9. A charter school shall not be used as a method of generating
507522 revenue for students who are being home schooled and are not being
508523 educated at an organized charter school site;
509524 10. A charter school may shall not charge tuition or fees;
510525 11. A charter school shall provide instruction each year for at
511526 least the number of days or hours required in Section 1-109 of this
512527 title;
513528 12. A charter school shall comply with the student suspension
514529 requirements provided for in Section 24 -101.3 of this title;
515530 13. A charter school shall be considered a school district for
516531 purposes of tort liability under The Governmental Tort Claims Act;
517532 14. Employees of a charter school may parti cipate as members of
518533 the Teachers' Retirement System of Oklahoma in accorda nce with
519534 applicable statutes and rules if otherwise allowed pursuant to law;
520535 15. A charter school may participate in all health and related
521536 insurance programs available to the empl oyees of the sponsor of the
522537 charter school;
523538 16. A charter school and charter school governing board shall
524539 comply with the Oklahoma Open Meeting Ac t and the Oklahoma Open
525540 Records Act;
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552568 17. The governing body board of a charter school and the
553569 governing board of a charter school sponsor shall be subject to the
554570 same conflict of inte rest requirements as a member of a local school
555571 board including, but not limited to, Sections 5-113 and 5-124 of
556572 this title; and
557573 18. Members of the charter school governing board shall be
558574 subject to the same instruction and continuing education
559575 requirements as a member of a local school board and pursuant to
560576 Section 5-110 of this title shall complete twelve (12) hours of
561577 instruction within fifteen (15) months of appointment to the
562578 governing board and pursuant to Section 5-110.1 of this title shall
563579 attend continuing education; and
564580 19. No later than September 1 of each year, the governing board
565581 of each charter school formed pursuant to the Oklahoma Charter
566582 Schools Act shall prepare a statement of actual income and
567583 expenditures for the charter school for the fiscal year that ended
568584 on the preceding June 30, in a manner compliant w ith Section 5-135
569585 of this title. The statement of expenditures shall include
570586 functional categories as defined in rules adopted by the State Board
571587 of Education to implement the Oklahoma Cost Accounting System
572588 pursuant to Section 5-145 of this title. Chart er schools shall not
573589 be permitted to submit estimates of expenditures or prorated amounts
574590 to fulfill the requirements of this paragraph.
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601618 B. The charter of a charter school shall include a description
602619 of the personnel poli cies, personnel qualifications, an d method of
603620 school governance, and the specific role and duties of the sponsor
604621 of the charter school.
605622 C. The charter of a charter school may be amend ed at the
606623 request of the governing body board of the charter school and upon
607624 the approval of the sponsor.
608625 D. A charter school may enter into contracts and sue and be
609626 sued.
610627 E. The governing body board of a charter school may shall not
611628 levy taxes or issue bonds.
612629 F. The charter of a charter school shall include a provision
613630 specifying the method or methods to b e employed for disposing of
614631 real and personal property acquired by the charter school upon
615632 expiration or termination of the charter or failure of the charter
616633 school to continue operations. Except as otherwise provided, an y
617634 real or personal property purcha sed with state or local funds shall
618635 be retained by the sponsoring school district or sponsor of the
619636 charter school. If a charter school that was prev iously sponsored
620637 by the board of education of a school district continue s operation
621638 within the school dist rict under a new charter sponsored by an
622639 entity authorized pursuant to Section 3 -132 of this title, the
623640 charter school may retain any personal propert y purchased with state
624641 or local funds for use in the operation of the ch arter school until
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651669 termination of the new charter or failure of the charter school to
652670 continue operations.
653671 SECTION 3. AMENDATORY 70 O.S. 2021, Section 3 -137, is
654672 amended to read as follows:
655673 Section 3-137. A. An The first approved contract for between a
656674 charter school and its sponsor shall be effective for five (5) years
657675 from the first day of operation. A chart er contract may be renewed
658676 for successive five-year terms of duration, although the sponsor may
659677 vary the term based on the performance, demonstrated capacit ies and
660678 particular circumstances of each charter school. A sponsor may
661679 grant renewal with specific conditions for necessary improvements to
662680 a charter school.
663681 B. Prior to the beginning of the fourth year of operation of a
664682 charter school, the sponsor shall issue a charter school performance
665683 report and charter renewal application guidance to the school an d
666684 the charter school board. The performance repor t shall summarize
667685 the performance record to date of the charter school, based on the
668686 data required by the Oklahoma Charter Schools Act, the annual
669687 performance framework evaluation, the operating agreement r eview if
670688 the charter school contracts with an educ ational management
671689 organization or charter management organization, and the charter
672690 contract and taking in to consideration the percentage of at-risk
673691 students enrolled in the school , and. The performance rep ort shall
674692 provide notice of any weaknesses or, concerns, violations, or
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701720 deficiencies perceived by the sponsor concerning the charter school
702721 that may jeopardize its position in seeking renewal if not timely
703722 rectified. If there are weaknesses, concerns, violations, or
704723 deficiencies the sponsor may require a charter school to develop a
705724 corrective action plan and corresponding timeline t o remedy any
706725 weaknesses, concerns, violations, or deficiencies. The If the
707726 sponsor requires a corrective action plan, the charter school shall
708727 have forty-five (45) days to respond to the performance report and
709728 submit any corrections or clarifications for the report. If the
710729 charter school does not substantially complete the corrective action
711730 plan, the sponsor may choose not to renew t he charter contract
712731 pursuant to the requirements of this section .
713732 C. 1. Prior to the beginning of the fifth year of operation,
714733 the charter school may appl y for renewal of the contract with the
715734 sponsor. The renewal application guid ance shall, at a minimum,
716735 provide an opportunity fo r the charter school to:
717736 a. present additional evi dence, beyond the data contained
718737 in the performance report, supporting its cas e for
719738 charter renewal,
720739 b. describe improvements undertak en or planned for the
721740 school, and
722741 c. detail the plan for the next charte r term for the
723742 school.
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750770 2. The renewal application guidance shall include or refer
751771 explicitly to the criteria that will guide th e renewal decisions of
752772 the sponsor, which shall be based on the performance f ramework set
753773 forth in the charter contract and cons istent with the Oklahoma
754774 Charter Schools Act.
755775 D. The sponsor may deny the request for renewal if it
756776 determines the charter scho ol has failed to complete the obligations
757777 of the contract or comply with the provisions of the Oklahoma
758778 Charter Schools Act. A sponsor shall give written notice of its
759779 intent to deny the request for renewal at least eight (8) months
760780 prior to expiration of the contract. In making charter renewal
761781 decisions, a sponsor shall:
762782 1. Ground decisions on evidence of the performance of the
763783 school over the term of the charter contract in a ccordance with the
764784 performance framework set forth in the charter contract and shall
765785 take into consideration the percentage of at -risk students enrolled
766786 in the school;
767787 2. Grant renewal to schools that have achieved the standards,
768788 targets and performance e xpectations as stated in the charter
769789 contract and are organizationally and fis cally viable and have been
770790 faithful to the terms of the contract and applicab le law;
771791 3. Ensure that data used in making renewal decisions are
772792 available to the school and the pub lic; and
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799820 4. Provide a public report summarizing the evidence used as the
800821 basis for each decision.
801822 E. If a sponsor denies a request f or renewal, the gover ning
802823 board of the sponsor may, if requested by the charter school,
803824 proceed to binding arbitration as provided for in subsection G of
804825 Section 3-134 of this title.
805826 F. A sponsor may terminate a contract during the term of the
806827 contract for failure to meet the requirements for student
807828 performance contained in the contract and performance framework ,
808829 failure to meet the standards of fiscal management, violations of
809830 the law or other good cause. The sponsor shall give at least ninety
810831 (90) days' written notice to the governing board prior to
811832 terminating the contrac t. The governing board may request, in
812833 writing, an informal hearing before the sponsor within fourteen (14)
813834 days of receiving notice. The sponsor shall conduct an informal
814835 hearing before taking action. If a sponsor decides to terminate a
815836 contract, the governing board may, if requested by the charter
816837 school, proceed to binding arbitration as provided for in subsection
817838 G of Section 3-134 of this title.
818839 G. 1. Beginning in the 2016-2017 school year, the State Board
819840 of Education shall identify charter schoo ls in the state that are
820841 ranked in the bottom five percent (5%) of all public schools as
821842 determined pursuant to Section 1210.545 of this title.
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848870 2. At the time of its charter renewal, based on an average o f
849871 the current year and the two (2) prior operating years, a sponsor
850872 may close a charter school site identified as being among the bottom
851873 five percent (5%) of public schools in the state. The average of
852874 the current year and two (2) pri or operating years sh all be
853875 calculated by using the percentage ranking f or each year divided by
854876 three, as determined by th is subsection.
855877 3. If there is a change to the calculation described in Sectio n
856878 1210.545 of this title that results in a charter schoo l site that
857879 was not ranked in the bottom five percent (5%) being ranked in the
858880 bottom five percent (5%), then the sponsor shall use the higher of
859881 the two rankings to calculate the ranking of the chart er school
860882 site.
861883 4. In the event that a sponsor fails to close a charter scho ol
862884 site consistent with this subsection, the sponso r shall appear
863885 before the State Board of Education to provide support for its
864886 decision. The State Board of Education may, by ma jority vote,
865887 uphold or overturn the decision of the spon sor. If the decision of
866888 the sponsor is overturned by the State Board of Education, the Board
867889 may implement one of the fol lowing actions:
868890 a. transfer the sponsorship of the charter school
869891 identified in this paragraph to another sponsor,
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896919 b. order the closure of the charter school identified in
897920 this paragraph at the end of the c urrent school year,
898921 or
899922 c. order the reduction of a ny administrative fee
900923 collected by the sponsor that is applicable to the
901924 charter school identified in this paragraph. The
902925 reduction shall become effective at the beginning of
903926 the month following the month the hearing of the
904927 sponsor is held by the State Bo ard of Education.
905928 5. A charter school that is closed by the State Board of
906929 Education pursuant to paragraph 4 of this subsection shall not be
907930 granted a charter by any other sponsor.
908931 6. The requirements of this subsection shall not apply to a
909932 charter school that has been designated by the State Department of
910933 Education as implementin g an alternative education program
911934 throughout the charte r school.
912935 7. In making a school site closure decision, the State Board of
913936 Education shall consider the following:
914937 a. enrollment of students with special challenges such as
915938 drug or alcohol addiction, prior withdrawal from
916939 school, prior incarceration or oth er special
917940 circumstances,
918941 b. high mobility of the student population res ulting from
919942 the specific purpose of the charter sc hool,
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946970 c. annual improvement in the performance of students
947971 enrolled in the charter school compared with the
948972 performance of students en rolled in the charter school
949973 in the immediately preceding school year, a nd
950974 d. whether a majority of students attending the charter
951975 school under consideration for closure would likely
952976 revert to attending public schools with lower academic
953977 achievement, as demonstrated pursuant t o Section
954978 1210.545 of this title.
955979 8. If the State Board of Education has closed or transferred
956980 authorization of at least twenty-five percent (25%) of the charter
957981 schools chartered by one sponsor pursuant to paragraph 4 of this
958982 subsection, the authority of the sponsor to authorize new charter
959983 schools may be suspended by the Board until the Board approves the
960984 sponsor to authorize new charter schools. A determination under
961985 this paragraph to suspend the authority of a sponsor to authorize
962986 new charter schools shall identify the deficiencies that, if
963987 corrected, will result in the approval of the sponsor to aut horize
964988 new charter schools.
965989 H. If a sponsor terminates a contract or the char ter school is
966990 closed, the closure shall be conducted in accordance with the
967991 following protocol:
968992 1. Within two (2) calendar week s of a final closure
969993 determination, the sponsor sh all meet with the governing board and
970994
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9961021 leadership of the charter school to esta blish a transition team
9971022 composed of school staff, applic ant staff and others designated by
9981023 the applicant that will attend to the closure, including the
9991024 transfer of students, stud ent records and school funds;
10001025 2. The sponsor and transition team shall commun icate regularly
10011026 and effectively with families of student s enrolled in the charter
10021027 school, as well as with school staff and other stakeholders, to keep
10031028 them apprised of key inform ation regarding the closure of the school
10041029 and their options and risks;
10051030 3. The sponsor and transition team shall ensure that current
10061031 instruction of student s enrolled in the charter school continues per
10071032 the charter agreement for the remainder of the school year;
10081033 4. The sponsor and transition team shall ensure that all
10091034 necessary and prudent notifications are issued to agencies,
10101035 employees, insurers, contractor s, creditors, debtors and management
10111036 organizations; and
10121037 5. The governing board of the charter school shall continue to
10131038 meet as necessary to take actions needed to wind down schoo l
10141039 operations, manage school finances, allocate resources and
10151040 facilitate all aspects of closure.
10161041 I. A sponsor shall develop revo cation and nonrenewal processes
10171042 that are consistent with the Oklahoma Charter Schools Act and that:
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10441070 1. Provide the charter scho ol with a timely notification of the
10451071 prospect of revocation or nonrenewal and of the reasons for possible
10461072 closure;
10471073 2. Allow the charter school a reasonable amount of time in
10481074 which to prepare a response;
10491075 3. Provide the charter school with an opportunity t o submit
10501076 documents and give testimony in a public hearin g challenging the
10511077 rationale for closure and in support of the continuati on of the
10521078 school at an orderly proceeding held for that purpose and prior to
10531079 taking any final nonrenewal or revocation decision related to the
10541080 school;
10551081 4. Allow the charter school acce ss to representation by counsel
10561082 to call witnesses on its behalf;
10571083 5. Permit the recording of the proceedings; and
10581084 6. After a reasonable period for deliberation, require a final
10591085 determination be made and conveyed in writing to the charter school.
10601086 J. If a sponsor revokes or do es not renew a charter, the
10611087 sponsor shall clearly s tate in a resolution the reasons for the
10621088 revocation or nonrenewal.
10631089 K. 1. Before a sponsor may issue a charter to a charter sch ool
10641090 governing body board that has had its charter termin ated or has been
10651091 informed that its charter will not be renewed by the cu rrent
10661092 sponsor, the sponsor shall request to have t he proposal reviewed by
10671093 the State Board of Education at a hearing. The State Board of
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10941121 Education shall conduct a hearing in which the sponsor shall present
10951122 information indicating that the proposal of the or ganizer is
10961123 substantively different in the areas of deficiency identified by the
10971124 current sponsor from the current proposal as set forth within the
10981125 charter with its current sponsor.
10991126 2. After the State Board of Education conducts a hearing
11001127 pursuant to this subsection, the Board shall either approve or deny
11011128 the proposal.
11021129 3. If the proposal is denied, no sponsor may issue a charter to
11031130 the charter school governing body board.
11041131 L. If a contract is not renewed, t he governing board of the
11051132 charter school may submit an application to a proposed new sponsor
11061133 as provided for in Section 3-134 of this title.
11071134 M. If a contract is not renewed or is terminated according to
11081135 this section, a student who att ended the charter sch ool may enroll
11091136 in the resident school district of t he student or may apply for a
11101137 transfer in accordan ce with Section 8-103 of this title.
11111138 SECTION 4. AMENDATORY 70 O.S. 2021, Section 3-142, is
11121139 amended to read as follows:
11131140 Section 3-142. A. The student membership and attendance of the
11141141 charter school shall be considered separate from the student
11151142 membership and attendance of the sponsor for the purpose of
11161143 calculating enrollment and funding including weighted average daily
11171144 membership pursuant to Section 18-201.1 of this title and State Aid
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11441172 pursuant to Section 18-200.1 of this title. A charter school shall
11451173 receive the State Aid allocation, federal funds to which it is
11461174 eligible and qualifies for and any other state-appropriated revenue
11471175 generated by its students for the applicable year. Not more than
11481176 three percent (3%) of the State Aid allocation may be charged by the
11491177 sponsor as a fee for administrative services rendered. For purposes
11501178 of this section, the fee for administrative services shall be used
11511179 by the sponsor to provide oversight a nd services to the charter
1152-schools it sponsors. The State Department of Education shall
1153-develop data codes for the Oklahoma Cost Accounting System which
1154-shall be used to comply with the administrative services reporting
1155-required by this section. A charter school sponsor shall publish a
1180+schools it sponsors. A charter school sponsor shall publish a
11561181 detailed report on its website and present the report in a public
11571182 meeting to the charter school governing board and the charter school
11581183 sponsor governing board. The report shall provide sponsor
11591184 performance and stewardship, including compliance with all
11601185 applicable laws, regulations, and te rms of the charter contract and
11611186 listing expenses rel ated to oversight and services provided by the
11621187 sponsor to its charter schools. The State Board of Education shall
11631188 determine the policy and procedure for making payments to a charter
11641189 school. The fee for administrative services as authorized in this
11651190 subsection shall only be assessed on the State Ai d allocation amount
11661191 and shall not be assessed on any other appropriated amounts. A
11671192 sponsor of a charter school shall not charge any additional State
1193+Aid allocation or charge the charter school any additional fee above
1194+the amounts allowed by this subsectio n unless the additional fees
1195+are for additional services rendered. The charter school sponsor
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1194-Aid allocation or charge the charter school any additional fee above
1195-the amounts allowed by this subsectio n unless the additional fees
1196-are for additional services rendered. The charter school sponsor
11971223 shall provide to the State Department of Education financial records
11981224 documenting any state funds charged by the sponsor for
11991225 administrative services rendered for the previous year.
12001226 B. 1. The weighted average daily membership for the first year
12011227 of operation of a charter school shall be determined initially by
12021228 multiplying the actual enrollment of students as of August 1 by
12031229 1.333. The charter school shall receive r evenue equal to that which
12041230 would be generated by the estimated weighted average daily
12051231 membership calculated pursuant to this paragraph. At midyear, the
12061232 allocation for the charter school shall be adjusted using the first
12071233 quarter weighted average daily memb ership for the charte r school
12081234 calculated pursuant to subsection A of this section.
12091235 2. For the purpose of calculating weighted average da ily
12101236 membership pursuant to Section 18-201.1 of this title and State Aid
12111237 pursuant to Section 18-200.1 of this title, the weighted average
12121238 daily membership for the first year of operation of a full-time
12131239 statewide virtual charter school sponsored by the State wide Virtual
12141240 Charter School Board shall be determined by multiplying the actual
12151241 enrollment of students as of August 1 b y 1.333. The full-time
12161242 virtual charter school shall receive revenue equal to that which
12171243 would be generated by the estimated weighte d average daily
1244+membership calculated pursuant to this paragraph. At midyear, the
1245+allocation for the full-time statewide virtual charter school shall
1246+be adjusted using the first quarter weighted average daily
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1244-membership calculated pursuant to this paragraph. At midyear, the
1245-allocation for the full-time statewide virtual charter school shall
1246-be adjusted using the first quarter weighted average daily
12471274 membership for the virtual charter school calculate d pursuant to
12481275 subsection A of this section.
12491276 C. Except as explicitly authorized by state law, a charter
12501277 school shall not be eligible to receive state-dedicated, local or
12511278 county revenue; provided, a charter school may be eligible to
12521279 receive any other aid, grants or revenues allowed to other schools.
12531280 A charter school shall be considered a local education agency for
12541281 purposes of funding.
12551282 D. Any unexpended funds received by a charter s chool may be
12561283 reserved and used for future purposes. The governing body board of
12571284 a charter school shall not levy taxes or issue bonds. If otherwise
12581285 allowed by law, the governing body board of a charter school may
12591286 enter into private contracts for the purposes of borrowing money
12601287 from lenders. If the governing body board of the charter school
12611288 borrows money, the charter school shall be solely responsible for
12621289 repaying the debt, and the state or the s ponsor shall not in any way
12631290 be responsible or ob ligated to repay the debt.
12641291 E. Any charter school which chooses to lease property shall be
12651292 eligible to receive current government lease rates.
12661293 F. Except as otherwise provided in this subsection, each
12671294 charter school shall pay to the Charter School Closure Reimbursement
1295+Revolving Fund created in subsection G of this section an amount
1296+equal to Five Dollars ($5.0 0) per student based on average daily
1297+membership, as defined by paragraph 2 of Section 18-107 of this
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1294-Revolving Fund created in subsection G of this section an amount
1295-equal to Five Dollars ($5.0 0) per student based on average daily
1296-membership, as defined by paragraph 2 of Section 18-107 of this
12971325 title, during the first nine (9) weeks of the sc hool year. Each
12981326 charter school shall complete the payment every school year within
12991327 thirty (30) days after the first nine (9) weeks of the school year.
13001328 If the Charter School Closure Reimbursement Revolving F und has a
13011329 balance of One Million Dollars ($1,000 ,000.00) or more on July 1, no
13021330 payment shall be required the following school year.
13031331 G. There is hereby c reated in the State Treasury a revolving
13041332 fund for the State Department of Education to be designated th e
13051333 "Charter School Closure Reimbursement Revolvin g Fund". The fund
13061334 shall be a continuing fund, not subject to fiscal year limitations,
13071335 and shall consist of all monies received by the State Department of
13081336 Education from charter schools as provided in subsect ion F of this
13091337 section. All monies accruing to t he credit of said fund are hereby
13101338 appropriated and may be budgeted and expended by the State
13111339 Department of Education for the purpose of reimbursing charter
13121340 school sponsors for costs incurred due to the closur e of a charter
13131341 school. Expenditures from said f und shall be made upon warrants
13141342 issued by the State Treasurer against claims filed as prescribed by
13151343 law with the Director of the Office of Management and Enterprise
13161344 Services for approval and payment. The Sta te Department of
1345+Education may promulgate rules regarding sponsor eligibility for
1346+reimbursement.
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1343-Education may promulgate rules regarding sponsor eligibility for
1344-reimbursement.
13451374 SECTION 5. NEW LAW A new section of law to be codified
13461375 in the Oklahoma Statutes as Sectio n 3-145.9 of Title 70, unless
13471376 there is created a duplication in numbering, reads as follows:
13481377 Beginning with the 2022-2023 school year, members of a charter
13491378 school sponsor governing board shall complete a sponsor workshop
13501379 requirement.
13511380 1. If the charter school sponsor governing board has required
13521381 school board or agency board training, the Charter School Sponsor
13531382 and Educational Management Organization Component, if applicable,
13541383 shall be included in the sponsor workshop.
13551384 2. If the charter school sponsor governing board does not have
13561385 required school board or agency board tra ining, the sponsor shall
13571386 designate a compliance representative to complete a sponsor workshop
13581387 through the Federal Charter School Programs grant holder for a
13591388 minimum of two (2) hours but not to exceed twelve (12) hours.
13601389 SECTION 6. AMENDATORY 70 O.S. 2021, Section 5 -200, is
13611390 amended to read as follows:
13621391 Section 5-200. A. As used in this section, "educational title:
13631392 1. "Educational management organization" means a for-profit or
13641393 nonprofit organization that rece ives public funds to provide
13651394 administration and management services for a charter school,
13661395 statewide virtual charter school, or traditional public school ; and
1396+2. "Charter management organization" means a nonprofit
1397+organization that receives public funds to provide administration
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1393-2. "Charter management organization" means a nonprofit
1394-organization that receives public funds to provide administration
13951425 and management services for a charter schoo l, statewide virtual
13961426 charter school, or traditional public school.
13971427 B. A charter school that contracts w ith an educational
13981428 management organization or charter management organization shall use
13991429 the Oklahoma Cost Accounting System (OCAS) to report the total
14001430 amount paid to an educational management organization or charter
14011431 management organization pursuant to the terms of the contract as
14021432 well as actual itemized expenditure information for the good s or
14031433 services provided by the management organization as defined by OCAS
14041434 expenditure codes, including the total compensation package of the
14051435 superintendent including the ba se salary, insurance, retirement and
14061436 other fringe benefits.
14071437 C. Any Pursuant to Internal Revenue Service guideli nes, any
14081438 owner of an educational managem ent organization or charter
14091439 management organization shall be required to disclose to the
14101440 governing board of the school in a public meeting any ownership
14111441 position in any business that contra cts or proposes to contract with
14121442 the same public school that the ed ucational management organization
14131443 or charter management organization is managing.
14141444 D. Whenever any person shall enter into a contract with any
14151445 school district or public charter school in th e state to teach in
1416-such school district or public charter school , the contract shall be
1446+such school district or public charter school t he contract shall be
1447+binding on the teacher and on the board of education until the
1448+teacher legally has been discharged from the teaching position or
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1443-binding on the teacher and on the board of education until the
1444-teacher legally has been discharged from the teaching position or
14451476 released by the board of education from the contract. Except as
14461477 provided in Section 5 -106A of Title 70 of the Oklahoma Statutes this
14471478 title, until such teacher has been thus discharged or released, the
14481479 teacher shall not have authority to enter into a contract with any
14491480 other board of education i n Oklahoma for the same time covered by
14501481 the original contract. If upon written complaint by the board of
14511482 education in a district any teacher is reported to have failed to
14521483 obey the terms of the contract previously made and to have entered
14531484 into a contract with another board of education, including a public
14541485 charter school board of education, without having been released from
14551486 the former contract except as provided in Section 5 -106A of Title 70
14561487 of the Oklahoma Statutes this title, the teacher, upon being found
14571488 to be employed full-time for another public school, including a
14581489 public charter school in the state, at a hearing held before the
14591490 State Board of Education, shall have such teacher's certificate
14601491 suspended for the remainder of the term for which the contract was
14611492 made.
14621493 SECTION 7. AMENDATORY 70 O.S. 2 021, Section 18-124, is
14631494 amended to read as follows:
14641495 Section 18-124. A. Any school district with an ave rage daily
14651496 attendance (ADA) of more than one thousand five hundred (1,500)
14661497 students for the preceding year which expends for adminis trative
1498+services in the 2005-06 school year or any school year thereafter,
1499+less expenditures for legal services, more than five percent (5%) of
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1493-services in the 2005-06 school year or any school year thereafter,
1494-less expenditures for legal services, more than five percent (5%) of
14951527 the amount it expends for total expenditures, less expenditures f or
14961528 legal services, shall have the amount which exceeds the five percent
14971529 (5%) withheld the following year from the Foundation and Salary
14981530 Incentive Aid for the school distri ct.
14991531 B. Any school district with an average daily attendance (ADA)
15001532 of more than five hundred (500) students but not more than one
15011533 thousand five hundred (1,500) students for the preceding year which
15021534 expends for administrative services in the 2005 -06 school year or
15031535 any school year thereafter, less expenditures for legal services,
15041536 more than seven percent (7%) of the amount it expends for total
15051537 expenditures, less expenditures for legal services, shall have the
15061538 amount which exceeds the seven percent (7%) withheld the following
15071539 year from the Foundation and Salary Incentive Aid for the school
15081540 district.
15091541 C. Any school district with an average d aily attendance (ADA )
15101542 of five hundred (500) or fewer students for the preceding year which
15111543 expends for administrative servic es in the 2005-06 school year or
15121544 any school year thereafter, less expenditures for le gal services,
15131545 more than eight percent (8%) of the amount it expends for total
15141546 expenditures, less expenditures for legal services, shall have the
15151547 amount which exceeds the eight percent (8%) withheld the following
1548+year from the Foundation and Salary Incentiv e Aid for the school
1549+district.
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1543-district.
15441577 D. The provisions of this section s hall apply to charter
15451578 schools which contract with an educational management organization
15461579 or a charter management organization as defined in Section 5-200 of
15471580 this title. The expenditure limits shall not exceed the percentages
15481581 prescribed in subsections A, B, and C of this section, and the
15491582 calculation of administrative services for schools which contract
15501583 with an educational management organization or a charter management
15511584 organization shall be the combined amount of administrative services
15521585 expended by the char ter school and the educational management
15531586 organization or charter management organization.
15541587 E. For purposes of this section, "administrative services"
15551588 means costs associated with:
15561589 1. Staff for the board of education;
15571590 2. The secretary/clerk for the board of education;
15581591 3. Staff relations;
15591592 4. Negotiations staff;
15601593 5. Immediate staff of the superintendent, any elementary
15611594 superintendent or any assistant superintendent;
15621595 6. Any superintendent, elementary superintendent, or assistant
15631596 superintendent;
1597+7. Any employee of a school district employed as a director,
1598+coordinator, supervisor, or who has responsibility fo r
1599+administrative functions of a school district; and
1600+8. Any consultant hired by the school district; and
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1590-7. Any employee of a school district employed as a director,
1591-coordinator, supervisor, or who has responsibility fo r
1592-administrative functions of a school district; and
1593-8. Any consultant hired by the school district; and
15941628 9. Administrative services paid to an educational management
15951629 organization or a charter management organization as defined in
15961630 Section 5-200 of this title.
15971631 E. F. If an employee of a school district is employed in a
15981632 position where part of the employee 's time is spent as an
15991633 administrator and pa rt of the time is spent in nonadministrative
16001634 functions, the percentage of time spent as an administ rator shall be
16011635 included as administrative services. A superintendent who spends
16021636 part of the time performing exempted nonadministrative services such
16031637 as teaching in the classroom, serving as a principal, counselor, or
16041638 library media specialist, can code up to forty percent (40%) of
16051639 their salary to other nonadministrative functions. The total amount
16061640 of time a superintendent of a school district spends performin g
16071641 services for a school district shall be included as administrative
16081642 services even if part of the t ime the superintendent is performing
16091643 nonexempted nonadministrative service functions . The total amount
16101644 received by a superintendent from the school district as salary, for
16111645 the performance of administrative and nonexempted nonadministrative
16121646 services, shall be recorded under the code for superintendent salary
16131647 as provided for in the Oklahoma Cost Accounting System.
1648+F. G. Each school site within a school distric t shall take
1649+steps to ensure that the administrative costs for the school comply
1650+with the expenditure limits established for school districts in this
1651+section.
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1640-F. G. Each school site within a school distric t shall take
1641-steps to ensure that the administrative costs for the school comply
1642-with the expenditure limits established for school districts in this
1643-section.
16441679 G. H. Funds withheld pursuant to the provisions of this section
16451680 shall be distributed through the State Aid formula to the districts
16461681 not so penalized.
16471682 H. I. For the 2003-04 and 2004-05 school year, school districts
16481683 shall report to the State Department of Education the costs
16491684 associated with administrative services for the school district as
16501685 defined in subsection D E of this section.
16511686 SECTION 8. This act shall become effective July 1, 2022.
16521687 SECTION 9. It being immediately necessary for the preservation
16531688 of the public peace, health or safety, an emergency is hereby
16541689 declared to exist, by reason whereof this act shall take effect and
16551690 be in full force from and after its pass age and approval.
1656-Passed the House of Representatives the 14th day of March, 2022.
16571691
1658-
1659-
1660-
1661- Presiding Officer of the House
1662- of Representatives
1663-
1664-
1665-Passed the Senate the ___ day of __________, 2022.
1666-
1667-
1668-
1669-
1670- Presiding Officer of the Senate
1692+COMMITTEE REPORT BY: COMMITTEE ON COMMON EDUCATION, dated 02/16/2022
1693+- DO PASS, As Amended and Coauthored.