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ENGROSSED HOUSE
BILL NO. 3644 By: Dills, Hardin (David),
Johns, and Waldron of the
House
and
Taylor of the Senate
An Act relating to schools; amending 70 O.S. 20 21,
Sections 3-135, 3-136, 3-137, and 3-142, which relate
to the Oklahoma Charter Schools Act; requiring
charter school to provi de certain notice to sponsor;
directing sponsor to use performance framework for
charter school evaluation; authorizing development of
certain separate fram ework; adding minimum
requirements for framework; mandating annual
evaluation; directing presentatio n of results to
certain governing boards; defining term; subjecting
charter school to certain spending limitations;
directing charter school governing board to comply
with certain acts; subjecting charter school sponsor
governing board to certain conflict of interest
requirements; requiring charter school governing
board to comply with ce rtain instruction and
continuing education requirements; modifying
procedures for charter school contracts; permitting
sponsor to require charter school to develop a
corrective action plan; authorizing nonre newal of
contract in certain cases; specifying ho w sponsor fee
should be used; requiring sponsor to publish certain
report on its website; mandating sponsor to present
report in public meeting; providing content for
report; requiring sponsor board members t o complete
sponsor workshop requirement; amending 70 O.S. 2021,
Section 5-200, which relates to management
organizations; adding definition for charter
management organization; requiring amounts paid to
certain organizations be pursuant to contract terms;
mandating disclosure pursuant to certain guideli nes;
amending 70 O.S. 2021, Section 18-124, which relates
to limitations on admini strative services
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expenditures; providing applicability of limitation
to certain charter school s; clarifying calculation
for specified schools; modifying definition;
providing for codification; providing an effective
date; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 3 -135, is
amended to read as follows:
Section 3-135. A. The sponsor of a charter school s hall enter
into a written contract with the governing body board of the charter
school. The contract shall incorporate the prov isions of the
charter of the charter school and contain, but shall not be limited
to, the following provisions:
1. A description of the program to be offered by the school
which complies with the purposes outlined in Section 3-136 of this
title;
2. Admission policies and procedures;
3. Management and administration of the charter school,
including that a majority of the charter governing board members are
residents of the State of Oklahoma and meet no less than quarterly
in a public meeting within the bo undaries of the school district in
which the charter school is located or within the St ate of Oklahoma
in the instance of multip le charter school locations by the same
sponsor;
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4. Requirements and procedures for program and financial
audits;
5. A description of how the charter school will comply with the
charter requirements set forth in t he Oklahoma Charter Schools Act;
6. Assumption of liability by the charter school;
7. The term of the contract;
8. A description of the high standards of expectation and rigor
for charter school plans and assurance that charter school plans
adopted meet at least those standards;
9. Policies that require that the charter schoo l be as equally
free and open to all students as traditional public schools;
10. Procedures that require students enrolled in the charter
school to be selected by lottery to ensure fairness if more students
apply than a school has the capacity to accommod ate;
11. Policies that require the charter school to be subject to
the same academic standard s and expectations as existing public
schools; and
12. A description of the requiremen ts and procedures for the
charter school to receive funding in accordance w ith statutory
requirements and guidelines for existing public schools; and
13. A requirement to promptly notify the sponsor in the
instance of any significant adverse actions, material findings of
noncompliance, or pendin g actions, claims, or proceedings in this
state relating to the charter school or an educational management
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organization or charter management organization with which the
charter school has a contract .
B. A charter school shall not enter into an employment contract
with any teacher or oth er personnel until the charter school has a
contract with a sponsoring school district. The em ployment contract
shall set forth the personnel policies of the charter school,
including, but not limited to, policies related to certification,
professional development evaluation, suspension, dismissal and
nonreemployment, sick leave, personal business leave, emergency
leave, and family and medical leave. The contract shall also
specifically set forth the salary, hours, fringe benefits, and work
conditions. The contract may provide for employer-employee
bargaining, but the charter school shall not be r equired to comply
with the provisions of Sections 509.1 through 509.10 of this title.
The contract shall conform to all applicable provisions set forth in
Section 3-136 of this title.
Upon contracting with any teacher or other personnel, the
governing body board of the charter school shall, in writing,
disclose employment rights of the emp loyees in the event the charter
school closes or the charter is not renewed .
No charter school may begin serving students without a charter
contract executed in accordanc e with the provisions of the Oklahoma
Charter Schools Act and approved in an open meet ing of the sponsor.
The sponsor may establish reasonable preopening requir ements or
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conditions to monitor the start-up progress of newly approved
charter schools and ens ure that each school is prepared to open
smoothly on the date agreed and to ensure tha t each school meets all
building, health, safety, insurance and other legal requirements for
the opening of a school.
C. The performance provisions within the charter co ntract shall
be based on a performance framework that clearly sets forth the
academic and operational performance indicators , measures and
metrics that will guide the evaluations of the shall be used by
charter school sponsors to evaluate their respective charter school
by the sponsor schools. The sponsor may develop a separate
performance framework to evaluate a charter school that has been
designated by the Sta te Department of Education as implementing an
alternative education program throughout the char ter school. The
sponsor shall require a charter school to submit the data required
in this section in the identical format that is required by the
State Department of Education of all public schools in order to
avoid duplicative administrative efforts or allow a charter school
to provide permission to the Department to share all required d ata
with the sponsor of the charter school. The performance framework
shall serve as the minimum requirement for charter school
performance evaluation and shall include, but not be limited to, the
following indicators, measures and metrics for, at a minim um:
1. Student academic proficiency;
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2. Student academic growth;
3. Achievement gaps in both proficiency and growth between
major student subgroups;
4. Student attendance;
5. Recurrent enrollment from year to year as determined by the
methodology used for public schools in Oklahoma;
6. In the case of high schools, graduatio n rates as determined
by the methodology used for public schools in Oklahoma;
7. In the case of high schools, postsecondary readiness;
8. Financial performance and sustainability and compliance with
state and Internal Revenue Service financial reporting requirements;
and
9. Audit findings or deficiencies;
10. Accreditation and timely reporting; and
11. Governing board performance and stewardship, including
compliance with all ap plicable laws, regulations and terms of the
charter contract.
The sponsor shall annually evaluate its charter schools according to
the performance framework. The results of the evaluation shall be
presented to the governing board of the charter school and the
governing board of the charter school sponsor in an open meeting.
D. The sponsor shall not request any metric or data from a
charter school that it does not produce or publish for all school
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sites in the district or under its sponsorship, unless the metric or
data is unique to a charter school.
E. A charter contract may shall provide for one or more schools
by an applicant charter district that may include multiple charter
sites to the extent approved by the sponsor and consist ent with
applicable law. An applicant or the governing board of an applicant
may hold one or more charter contract s. Each charter school
district that is part of a charter contract shall be considered a
local educational agency, as defined in 20 U.S.C. Section 7801, and
shall be separate and distinct from any other charter school under
the same charter contract district. For the purposes of this
subsection, "separate and distinct " shall mean that a charter school
governing board with oversight of m ore than one charter district
shall not combine accounting, budgeting, recordkeeping, admissions,
employment, or policies and operational decisions of t he charter
schools it oversees.
SECTION 2. AMENDATORY 70 O.S. 2021, Section 3 -136, is
amended to read as follows:
Section 3-136. A. A charter school shall adopt a charter which
will ensure complianc e with the following:
1. A charter school shall comply with all federal regulat ions
and state and local rules and statutes relating to h ealth, safety,
civil rights and insurance. By January 1, 2000, the State
Department of Education shall prepare a list of relevant rules and
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statutes which a charter school must comply with as requir ed by this
paragraph and shall annually provide an update to the list;
2. A charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations.
A sponsor may not authorize a charter school or program that is
affiliated with a nonpublic sectarian school or r eligious
institution;
3. The charter school may provide a comprehensive program of
instruction for a prekindergarten p rogram, a kindergarten progr am or
any grade between grades one and twelve. Inst ruction may be
provided to all persons between the ages of four (4) and twenty-one
(21) years of age. A charter school may offer a curriculum which
emphasizes a specific learn ing philosophy or style or c ertain
subject areas such as mathematics, science, f ine arts, performance
arts, or foreign language. The cha rter of a charter school which
offers grades nine through twelve shall specifically address whether
the charter school will comply with the graduat ion requirements
established in Section 11 -103.6 of this title. No charter school
shall be chartered for the purpose of offering a curriculum for deaf
or blind students that is the same or similar to the curriculum
being provided by or for educating deaf or blind students that are
being served by the Oklah oma School for the Blind or the Oklahoma
School for the Deaf;
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4. A charter school shall participate in the testing as
required by the Oklahoma School Testing Program Act and t he
reporting of test results as is required of a school district. A
charter school shall also provide any necessary data to the Office
of Accountability;
5. Except as otherwise provided for in the Oklahoma Charter
Schools Act and its charter, a charter s chool shall be exempt from
all statutes and rules relating to schools, boards of education, and
school districts;
6. A charter school , to the extent possible, shall be subject
to the same reporting requirements, financial audits, audit
procedures, and audit requirements as a school district. The State
Department of Education or Stat e Auditor and Inspector may conduct
financial, program, o r compliance audits. A charter school shall
use the Oklahoma Cost Accounting System to report financial
transactions to the sponsoring school dist rict or sponsor. The
charter school shall be subjec t to the limitations on spending ,
including provisions of the Oklahoma Constitution for any funds
received from the state, either through the State Department of
Education or other sources;
7. A charter school shall comply with all federal and state
laws relating to the education of children with disabilities in the
same manner as a school district;
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8. A charter school shall provide for a governing body board
for the school which shall be responsible for the policies and
operational decisions of the chart er school;
9. A charter school shall not be used as a method of generating
revenue for students who are being home schooled and are not being
educated at an organized charter school site;
10. A charter school may shall not charge tuition or fees;
11. A charter school shall provide instruction each year for at
least the number of days or hours required in Section 1-109 of this
title;
12. A charter school shall comply with the student suspension
requirements provided for in Section 24 -101.3 of this title;
13. A charter school shall be considered a school district for
purposes of tort liability under The Governmental Tort Claims Act;
14. Employees of a charter school may parti cipate as members of
the Teachers' Retirement System of Oklahoma in accorda nce with
applicable statutes and rules if otherwise allowed pursuant to law;
15. A charter school may participate in all health and related
insurance programs available to the empl oyees of the sponsor of the
charter school;
16. A charter school and charter school governing board shall
comply with the Oklahoma Open Meeting Ac t and the Oklahoma Open
Records Act;
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17. The governing body board of a charter school and the
governing board of a charter school sponsor shall be subject to the
same conflict of inte rest requirements as a member of a local school
board including, but not limited to, Sections 5-113 and 5-124 of
this title; and
18. Members of the charter school governing board shall be
subject to the same in struction and continuing education
requirements as a member of a local school board and pursuant to
Section 5-110 of this title shall complete twelve (12) hours of
instruction within fifteen (15) months of appointment to the
governing board and pursuant to Section 5-110.1 of this title shall
attend continuing education; and
19. No later than September 1 of each year, the governing board
of each charter school formed pursuant to the Oklahoma Charter
Schools Act shall prepare a statement of actual income an d
expenditures for the charter school for the fiscal year that ended
on the preceding June 30, in a manner compliant w ith Section 5-135
of this title. The statement of expenditures shall include
functional categories as defined in rules adopted by the Sta te Board
of Education to implement the Oklahoma Cost Accounting System
pursuant to Section 5-145 of this title. Chart er schools shall not
be permitted to submit estimates of expenditures or prorated amounts
to fulfill the requirements of this paragraph.
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B. The charter of a charter school shall include a description
of the personnel poli cies, personnel qualifications, an d method of
school governance, and the specific role and duties of the sponsor
of the charter school.
C. The charter of a charter school may be amended at the
request of the governing body board of the charter school and upon
the approval of the sponsor.
D. A charter school may enter into contracts and sue and be
sued.
E. The governing body board of a charter school may shall not
levy taxes or issue bonds.
F. The charter of a charter school shall include a provision
specifying the method or methods to b e employed for disposing of
real and personal property acquired by the charter school upon
expiration or termination of the charter or fai lure of the charter
school to continue operations. Except as otherwise provided, an y
real or personal property purcha sed with state or local funds shall
be retained by the sponsoring school district or sponsor of the
charter school. If a charter school t hat was previously sponsored
by the board of education of a school district continue s operation
within the school dist rict under a new charter sponsored by an
entity authorized pursuant to Section 3 -132 of this title, the
charter school may retain any pers onal property purchased with state
or local funds for use in the operation of the ch arter school until
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termination of the new charter or failure of the charter school to
continue operations.
SECTION 3. AMENDATORY 70 O.S. 2021, Sec tion 3-137, is
amended to read as follows:
Section 3-137. A. An The first approved contract for between a
charter school and its sponsor shall be effective for five (5) years
from the first day of operation. A chart er contract may be renewed
for successive five-year terms of duration, although the sponsor may
vary the term based on the performance, demonstrated capacit ies and
particular circumstances of each charter school. A sponsor may
grant renewal with specific conditions for necessary improvements to
a charter school.
B. Prior to the beginning of the fourth year of operation of a
charter school, the sponsor shall issue a charter school performance
report and charter renewal application guidance to the school an d
the charter school board. The perfo rmance report shall summarize
the performance record to date of the charter school, based on the
data required by the Oklahoma Charter Schools Act, the annual
performance framework evaluation, the operating agreement r eview if
the charter school contracts with an educational management
organization or charter management organization, and the charter
contract and taking in to consideration the percentage of at-risk
students enrolled in the school , and. The performance rep ort shall
provide notice of any weakn esses or, concerns, violations, or
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deficiencies perceived by the sponsor concerning the charter school
that may jeopardize its position in seeking renewal if not timely
rectified. If there are weaknesses, concerns, violations, or
deficiencies the sponsor may require a charter school to develop a
corrective action plan and corresponding timeline t o remedy any
weaknesses, concerns, violations, or deficiencies. The If the
sponsor requires a corrective action plan, the charter school shall
have forty-five (45) days to respond to the performance report and
submit any corrections or clarifications for the report. If the
charter school does not substantially complete the corrective action
plan, the sponsor may choose not to renew t he charter contract
pursuant to the requirements of this section .
C. 1. Prior to the beginning of the fifth year of operation,
the charter school may appl y for renewal of the contract with the
sponsor. The renewal application guid ance shall, at a minimum,
provide an opportunity fo r the charter school to:
a. present additional evi dence, beyond the data contained
in the performance report, supporting its cas e for
charter renewal,
b. describe improvements undertak en or planned for the
school, and
c. detail the plan for the next charte r term for the
school.
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2. The renewal application guidance shall include or refer
explicitly to the criteria that will guide th e renewal decisions of
the sponsor, which shall be based on the performance f ramework set
forth in the charter contract and cons istent with the Oklahoma
Charter Schools Act.
D. The sponsor may deny the request for renewal if it
determines the charter scho ol has failed to complete the obligations
of the contract or comply with the provisions of the Oklahoma
Charter Schools Act. A sponsor shall give written notice of its
intent to deny the request for renewal at least eight (8) months
prior to expiration of the contract. In making charter renewal
decisions, a sponsor shall:
1. Ground decisions on evidence of the performance of the
school over the term of the charter contract in a ccordance 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 schools that have achieved the standards,
targets and performance e xpectations as stated in the charter
contract and are organizationally and fis cally viable and have been
faithful to the terms of the contract and applicab le law;
3. Ensure that data used in making renewal decisions are
available to the school and the pub lic; and
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4. Provide a public report summarizing the evidence used as the
basis for each decision.
E. If a sponsor denies a request f or renewal, the gover ning
board of the sponsor may, if requested by the charter school,
proceed to binding arbitration as provided for in subsection G of
Section 3-134 of this title.
F. A sponsor may terminate a contract during the term of the
contract for failure to meet the requirements for student
performance contained in the contract and performance framework ,
failure to meet the standards of fiscal management, violations of
the law or other good cause. The sponsor shall give at least ninety
(90) days' written notice to the governing board prior to
terminating the contrac t. The governing board may request, in
writing, an informal hearing before the sponsor within fourteen (14)
days of receiving notice. The sponsor 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. 1. Beginning in the 2016-2017 school year, the State Board
of Education shall identify charter schoo ls in the state that are
ranked in the bottom five percent (5%) of all public schools as
determined pursuant to Section 1210.545 of this title.
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2. At the time of its charter renewal, based on an average o f
the current year and the two (2) prior operating years, a sponsor
may close a charter school site identified as being among the bottom
five percent (5%) of public schools in the state. The average of
the current year and two (2) pri or operating years sh all be
calculated by using the percentage ranking f or each year divided by
three, as determined by th is subsection.
3. If there is a change to the calculation described in Sectio n
1210.545 of this title that results in a charter schoo l site that
was not ranked in the bottom five percent (5%) being ranked in the
bottom five percent (5%), then the sponsor shall use the higher of
the two rankings to calculate the ranking of the chart er school
site.
4. In the event that a sponsor fails to close a charter scho ol
site consistent with this subsection, the sponso r shall appear
before the State Board of Education to provide support for its
decision. The State Board of Education may, by ma jority vote,
uphold or overturn the decision of the spon sor. If the decision of
the sponsor is overturned by the State Board of Education, the Board
may implement one of the fol lowing actions:
a. transfer the sponsorship of the charter school
identified in this paragraph to another sponsor,
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b. order the closure of the charter school identified in
this paragraph at the end of the c urrent school year,
or
c. order the reduction of a ny administrative fee
collected by the sponsor that is applicable to the
charter school identified in this paragraph. The
reduction shall become effective at the beginning of
the month following the month the hearing of the
sponsor is held by the State Bo ard of Education.
5. A charter school that is closed by the State Board of
Education pursuant to paragraph 4 of this subsection shall not be
granted a charter by any other sponsor.
6. The requirements of this subsection shall not apply to a
charter school that has been designated by the State Department of
Education as implementin g an alternative education program
throughout the charte r school.
7. In making a school site closure decision, the State Board of
Education shall consider the following:
a. enrollment of students with special challenges such as
drug or alcohol addiction, prior withdrawal from
school, prior incarceration or oth er special
circumstances,
b. high mobility of the student population res ulting from
the specific purpose of the charter sc hool,
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c. annual improvement in the performance of students
enrolled in the charter school compared with the
performance of students en rolled in the charter school
in the immediately preceding school year, a nd
d. whether a majority of students attending the charter
school under consideration for closure would likely
revert to attending public schools with lower academic
achievement, as demonstrated pursuant t o Section
1210.545 of this title.
8. If the State Board of Education has closed or transferred
authorization of at least twenty-five percent (25%) of the charter
schools chartered by one sponsor pursuant to paragraph 4 of this
subsection, the authority of the sponsor to authorize new charter
schools may be suspended by the Board until the Board approves the
sponsor to authorize new charter schools. A determination under
this paragraph to suspend the authority of a sponsor to authorize
new charter schools shall identify the deficiencies that, if
corrected, will result in the approval of the sponsor to aut horize
new charter schools.
H. If a sponsor terminates a contract or the char ter school is
closed, the closure shall be conducted in accordance with the
following protocol:
1. Within two (2) calendar week s of a final closure
determination, the sponsor sh all meet with the governing board and
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leadership of the charter school to esta blish a transition team
composed of school staff, applic ant staff and others designated by
the applicant that will attend to the closure, including the
transfer of students, stud ent records and school funds;
2. The sponsor and transition team shall commun icate regularly
and effectively with families of student s enrolled in the charter
school, as well as with school staff and other stakeholders, to keep
them apprised of key inform ation regarding the closure of the school
and their options and risks;
3. The sponsor and transition team shall ensure that current
instruction of student s enrolled in the charter school continues per
the charter agreement for the remainder of the school year;
4. The sponsor and transition team shall ensure that all
necessary and prudent notifications are issued to agencies,
employees, insurers, contractor s, creditors, debtors and management
organizations; and
5. The governing board of the charter school shall continue to
meet as necessary to take actions needed to wind down schoo l
operations, manage school finances, allocate resources and
facilitate all aspects of closure.
I. A sponsor shall develop revo cation and nonrenewal processes
that are consistent with the Oklahoma Charter Schools Act and that:
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1. Provide the charter scho ol with a timely notification 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 t o submit
documents and give testimony in a public hearin g challenging the
rationale for closure and in support of the continuati on of the
school at an orderly proceeding held for that purpose and prior to
taking any final nonrenewal or revocation decision related to the
school;
4. Allow the charter school acce ss 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 the charter school.
J. If a sponsor revokes or do es not renew a charter, the
sponsor shall clearly s tate in a resolution the reasons for the
revocation or nonrenewal.
K. 1. Before a sponsor may issue a charter to a charter sch ool
governing body board that has had its charter termin ated or has been
informed that its charter will not be renewed by the cu rrent
sponsor, the sponsor shall request to have t he proposal reviewed by
the State Board of Education at a hearing. The State Board of
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Education shall conduct a hearing in which the sponsor shall present
information indicating that the proposal of the or ganizer is
substantively different in the areas of deficiency identified by the
current sponsor from the current proposal as set forth within the
charter with its current sponsor.
2. After the State Board of Education conducts a hearing
pursuant to this subsection, the Board shall either approve or deny
the proposal.
3. If the proposal is denied, no sponsor may issue a charter to
the charter school governing body board.
L. If a contract is not renewed, t he 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. If a contract is not renewed or is terminated according to
this section, a student who att ended the charter sch ool may enroll
in the resident school district of t he student or may apply for a
transfer in accordan ce with Section 8-103 of this title.
SECTION 4. 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
charter school shall be considered separate from the student
membership and attendance of the sponsor for the purpose of
calculating enrollment and funding including weighted average daily
membership pursuant to Section 18-201.1 of this title and State Aid
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pursuant to Section 18-200.1 of this title. A charter school 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 students 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 rendered. For purposes
of this section, the fee for administrative services shall be used
by the sponsor to provide oversight a nd services to the charter
schools it sponsors. The State Department of Education shall
develop data codes for the Oklahoma Cost Accounting System which
shall be used to comply with the administrative services reporting
required by this section. A charter school sponsor shall publish a
detailed report on its website and present the report in a public
meeting to the charter school governing board and the charter school
sponsor governing board. The report shall provide sponsor
performance and stewardship, including compliance with all
applicable laws, regulations, and te rms of the charter contract and
listing expenses rel ated to oversight and services provided by the
sponsor to its charter schools. The State Board of Education shall
determine the policy and procedure for making payments to a charter
school. The fee for administrative services as authorized in this
subsection shall only be assessed on the State Ai d allocation amount
and shall not be assessed on any other appropriated amounts. A
sponsor of a charter school shall not charge any additional State
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Aid allocation or charge the charter school any additional fee above
the amounts allowed by this subsectio n unless the additional fees
are for additional 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 services rendered for the previous year.
B. 1. The weighted average daily membership for the first year
of operation of a charter school shall be determined initially by
multiplying the actual enrollment of students as of August 1 by
1.333. The charter school shall receive r evenue equal to that which
would be generated by the estimated weighted average daily
membership calculated pursuant to this paragraph. At midyear, the
allocation for the charter school shall be adjusted using the first
quarter weighted average daily memb ership for the charte r 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 b y 1.333. The full-time
virtual charter school shall receive revenue equal to that which
would be generated by the estimated weighte d average daily
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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 virtual charter school calculate d pursuant to
subsection A of this section.
C. Except as explicitly authorized by state law, a charter
school shall not be eligible to receive state-dedicated, local or
county revenue; provided, a charter school may be eligible to
receive any other aid, grants or revenues allowed to other schools.
A charter school shall be considered a local education agency for
purposes of funding.
D. Any unexpended funds received by a charter s chool may be
reserved and used for future purposes. The governing body board of
a charter school shall not levy taxes or issue bonds. If otherwise
allowed by law, the governing body board of a charter school may
enter into private contracts for the purposes of borrowing money
from lenders. If the governing body board of the charter school
borrows money, the charter school shall be solely responsible for
repaying the debt, and the state or the s ponsor shall not in any way
be responsible or ob ligated to repay the debt.
E. Any 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 School Closure Reimbursement
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Revolving Fund created in subsection G of this section an amount
equal to Five Dollars ($5.0 0) per student based on average daily
membership, as defined by paragraph 2 of Section 18-107 of this
title, during the first nine (9) weeks of the sc hool year. Each
charter school shall complete the payment every school year within
thirty (30) days after the first nine (9) weeks of the school year.
If the Charter School Closure Reimbursement Revolving F und has a
balance of One Million Dollars ($1,000 ,000.00) or more on July 1, no
payment shall be required the following school year.
G. There is hereby c reated in the State Treasury a revolving
fund for the State Department of Education to be designated th e
"Charter School Closure Reimbursement Revolvin g Fund". The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of all monies received by the State Department of
Education from charter schools as provided in subsect ion F of this
section. All monies accruing to t he credit of said fund are hereby
appropriated and may be budgeted and expended by the State
Department of Education for the purpose of reimbursing charter
school sponsors for costs incurred due to the closur e of a charter
school. Expenditures from said f und 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 Sta te Department of
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Education may promulgate rules regarding sponsor eligibility for
reimbursement.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sectio n 3-145.9 of Title 70, unless
there is created a duplication in numbering, reads as follows:
Beginning with the 2022-2023 school year, members of a charter
school sponsor governing board shall complete a sponsor workshop
requirement.
1. If the charter school sponsor governing board has required
school board or agency board training, the Charter School Sponsor
and Educational Management Organization Component, if applicable,
shall be included in the sponsor workshop.
2. If the charter school sponsor governing board does not have
required school board or agency board tra ining, the sponsor shall
designate a compliance representative to complete a sponsor workshop
through the Federal Charter School Programs grant holder for a
minimum of two (2) hours but not to exceed twelve (12) hours.
SECTION 6. AMENDATORY 70 O.S. 2021, Section 5 -200, is
amended to read as follows:
Section 5-200. A. As used in this section, "educational title:
1. "Educational management organization" means a for-profit or
nonprofit organization that rece ives public funds to provide
administration and management services for a charter school,
statewide virtual charter school, or traditional public school ; and
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2. "Charter management organization" means a nonprofit
organization that receives public funds to provide administration
and management services for a charter schoo l, statewide virtual
charter school, or traditional public school.
B. A charter school that contracts w ith an educational
management organization or charter management organization shall use
the Oklahoma Cost Accounting System (OCAS) to report the total
amount paid to an educational management organization or charter
management organization pursuant to the terms of the contract as
well as actual itemized expenditure information for the good s or
services provided by the management organization as defined by OCAS
expenditure codes, including the total compensation package of the
superintendent including the ba se salary, insurance, retirement and
other fringe benefits.
C. Any Pursuant to Internal Revenue Service guideli nes, any
owner of an educational managem ent organization or charter
management organization shall be required to disclose to the
governing board of the school in a public meeting any ownership
position in any business that contra cts or proposes to contract with
the same public school that the ed ucational management organization
or charter management organization is managing.
D. Whenever any person shall enter into a contract with any
school district or public charter school in th e state to teach in
such school district or public charter school , the contract shall be
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binding on the teacher and on the board of education until the
teacher legally has been discharged from the teaching position or
released by the board of education from the contract. Except as
provided in Section 5 -106A of Title 70 of the Oklahoma Statutes this
title, until such teacher has been thus discharged or released, the
teacher shall not have authority to enter into a contract with any
other board of education i n Oklahoma for the same time covered by
the original contract. If upon written complaint by the board of
education in a district any teacher is reported to have failed to
obey the terms of the contract previously made and to have entered
into a contract with another board of education, including a public
charter school board of education, without having been released from
the former contract except as provided in Section 5 -106A of Title 70
of the Oklahoma Statutes this title, the teacher, upon being found
to be employed full-time for another public school, including a
public charter school in the state, at a hearing held before the
State Board of Education, shall have such teacher's certificate
suspended for the remainder of the term for which the contract was
made.
SECTION 7. AMENDATORY 70 O.S. 2 021, Section 18-124, is
amended to read as follows:
Section 18-124. A. Any school district with an ave rage daily
attendance (ADA) of more than one thousand five hundred (1,500)
students for the preceding year which expends for adminis trative
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services in the 2005-06 school year or any school year thereafter,
less expenditures for legal services, more than five percent (5%) of
the amount it expends for total expenditures, less expenditures f or
legal services, shall have the amount which exceeds the five percent
(5%) withheld the following year from the Foundation and Salary
Incentive Aid for the school distri ct.
B. Any school district with an average daily attendance (ADA)
of more than five hundred (500) students but not more than one
thousand five hundred (1,500) students for the preceding year which
expends for administrative services in the 2005 -06 school year or
any school year thereafter, less expenditures for legal services,
more than seven percent (7%) of the amount it expends for total
expenditures, less expenditures for legal services, shall have the
amount which exceeds the seven percent (7%) withheld the following
year from the Foundation and Salary Incentive Aid for the school
district.
C. Any school district with an average d aily attendance (ADA )
of five hundred (500) or fewer students for the preceding year which
expends for administrative servic es in the 2005-06 school year or
any school year thereafter, less expenditures for le gal services,
more than eight percent (8%) of the amount it expends for total
expenditures, less expenditures for legal services, shall have the
amount which exceeds the eight percent (8%) withheld the following
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year from the Foundation and Salary Incentiv e Aid for the school
district.
D. The provisions of this section s hall apply to charter
schools which contract with an educational management organization
or a charter management organization as defined in Section 5-200 of
this title. The expenditure limits shall not exceed the percentages
prescribed in subsections A, B, and C of this section, and the
calculation of administrative services for schools which contract
with an educational management organization or a charter management
organization shall be the combined amount of administrative services
expended by the char ter school and the educational management
organization or charter management organization.
E. For purposes of this section, "administrative services"
means costs associated with:
1. Staff for the board of education;
2. The secretary/clerk for the board of education;
3. Staff relations;
4. Negotiations staff;
5. Immediate staff of the superintendent, any elementary
superintendent or any assistant superintendent;
6. Any superintendent, elementary superintendent, or assistant
superintendent;
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7. Any employee of a school district employed as a director,
coordinator, supervisor, or who has responsibility fo r
administrative functions of a school district; and
8. Any consultant hired by the school district; and
9. Administrative services paid to an educational management
organization or a charter management organization as defined in
Section 5-200 of this title.
E. F. If an employee of a school district is employed in a
position where part of the employee 's time is spent as an
administrator and pa rt of the time is spent in nonadministrative
functions, the percentage of time spent as an administ rator shall be
included as administrative services. A superintendent who spends
part of the time performing exempted nonadministrative services such
as teaching in the classroom, serving as a principal, counselor, or
library media specialist, can code up to forty percent (40%) of
their salary to other nonadministrative functions. The total amount
of time a superintendent of a school district spends performin g
services for a school district shall be included as administrative
services even if part of the t ime the superintendent is performing
nonexempted nonadministrative service functions . The total amount
received by a superintendent from the school district as salary, for
the performance of administrative and nonexempted nonadministrative
services, shall be recorded under the code for superintendent salary
as provided for in the Oklahoma Cost Accounting System.
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F. G. Each school site within a school distric t shall take
steps to ensure that the administrative costs for the school comply
with the expenditure limits established for school districts in this
section.
G. H. Funds withheld pursuant to the provisions of this section
shall be distributed through the State Aid formula to the districts
not so penalized.
H. I. For the 2003-04 and 2004-05 school year, school districts
shall report to the State Department of Education the costs
associated with administrative services for the school district as
defined in subsection D E of this section.
SECTION 8. This act shall become effective July 1, 2022.
SECTION 9. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its pass age and approval.
Passed the House of Representatives the 14th day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2022.
Presiding Officer of the Senate