An Act ENROLLED HOUSE BILL NO. 3872 By: Phillips of the House and Taylor of the Senate An Act relating to schools; amending 70 O.S. 2021, Sections 3-132 and 3-134, which relate to the Oklahoma Charter Schools Act; modifying sponsorship of certain schools which contract with the Office of Juvenile Affairs; deleting requirement of physical location for certain charter school; and declaring an emergency. SUBJECT: Schools BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 70 O.S. 2021, Section 3 -132, is amended to read as follows: Section 3-132. A. The Oklahoma Charter Schools Act shall apply only to charter schools formed and operated under the provisions of the act. Charter schools shall be sponsored only as follows: 1. By any school district located in the State of Oklahoma, provided such charter school shall only be located within the geographical boundaries of the sponsor ing district and subject to the restrictions of Section 3-145.6 of this title; 2. By a technology center school district if the charter school is located in a school district served by the technology center school district in which all or part of the scho ol district is located in a county having more than five hundred thousand (500,000) population according to the latest Federal Decennial Census; ENR. H. B. NO. 3872 Page 2 3. By a technology center sch ool district if the charter school is located in a school district served by the technology center school district and the school district has a school site that has been identified as in need of improvement by the State Board of Education pursuant to the Elementary and Secondary Education Act of 1965, as amended or reauthorized; 4. By an accredited comprehensive or regional institution that is a member of The Oklahoma State System of Higher Education or a community college if the charter school is located in a school district in which all or part of the school district is located in a county having more than five hundred thou sand (500,000) population according to the latest Federal Decennial Census; 5. By a comprehensive or regional institution that is a member of The Oklahoma State System of Higher Education if the charter school is located in a school district that has a sc hool site that has been identified as in need of improvement by the State Board of Education pursuant to the Elementary and Secondary Education Act of 1965, as amended or reauthorized. In addition, the institution shall have a teacher education program ac credited by the Oklahoma Commission for Teacher Preparation and have a branch campus or constituent agency physically located within the school district in which the charter school is located in the State of Oklaho ma; 6. By a federally recognized Indian t ribe, operating a high school under the authority of the Bureau of Indian Affairs as of November 1, 2010, if the charter school is fo r the purpose of demonstrating native language immersion instruction, and is loca ted within its former reservation or treat y area boundaries. For purposes of this paragraph, native language immersion instruction shall require that educational instruction and other activities conducted at the school site are primarily conducted in the native language; 7. By the State Board of Education when the applicant of the charter school is the Office of Juvenile Affairs or the applicant has a contract with the Office of Juvenile Affairs to provide a fixed rate level E, D, or D+ group home service and the charter school is for the purpose of providing education services to youth in the custody or supervision of the state. Not more than two charter schools shall be spo nsored by the Board as provided for in this paragraph during the period of time b eginning July 1, 2010, through July 1, 2016; ENR. H. B. NO. 3872 Page 3 8. By a federally recognized Indian tribe only when the charter school is located within the former reservation or treaty area boundaries of the tribe on property held in trust by the Bureau of Indian Affairs of the United States Department of the Inte rior for the benefit of the tribe; or 9. By the State Board of Education when the applicant has first been denied a charter by the l ocal school district in which it seeks to operate. In counties with fewer than f ive hundred thousand (500,000) population, according to the latest Federal Decennial Census, the State Board of Education shall not sponsor more than five charter schools per year each year for the first five (5) years after the effective date of this act, with not more than one charter school sponsored in a single school district per year. In order to authorize a charter school under this section, the State Board of Education shall find evidence of all of the following: a. a thorough and high-quality charter school application from the applicant based on the authorizing standards in subsection B of Section 3 -134 of this title, b. a clear demonstration of community support for the charter school, and c. the grounds and basis of objection by the school district for denying the operation of the chart er are not supported by the greater weight of evidence and the strength of the application. B. An eligible non-school-district sponsor shall give priority to opening charter schools that serve at -risk student populations or students from low-performing traditional public schools. C. An eligible non-school-district sponsor shall give priority to applicants that have demonstrated a reco rd of operating at least one school or similar program that demonstrates academic success and organizational viability an d serves student populations similar to those the proposed charter school seeks to serve. In assessing the potential for quality repli cation of a charter school, a sponsor shall consider the following factors before approving a new site or school: 1. Evidence of a strong and reliable record of academic success based primarily on student performance data, as well as other viable indicators, including financial and operational success; ENR. H. B. NO. 3872 Page 4 2. A sound, detailed, and well -supported growth plan; 3. Evidence of the ability to transfer successful practices to a potentially different context that includes reproducing critical cultural, organizatio nal and instructional characteristics; 4. Any management organization involved i n a potential replication is fully vetted, and the academic, financial and operational records of the schools it operates are found to be satisfactory; 5. Evidence the progra m seeking to be replicated has the capacity to do so successfully without diminis hing or putting at risk its current operations; and 6. A financial struct ure that ensures that funds attributable to each charter school within a network and required by law to be utilized by a school remain with and are used to benefit that school. D. For purposes of the Oklahoma Charter Schools Act, "charter school" means a public school established by contract with a board of education of a school district, an area vocatio nal-technical school district, a higher education institution, a federally recognized Indian tribe, or the State Board of Education pursuant to the Oklahoma Charter Schools Act to provide learning that will improve student achievement and as defined in the Elementary and Secondary Education Act of 1965, 20 U.S.C. 8065. E. 1. For the purposes of the Oklahoma Charter Schools Act, "conversion school" means a school created by converting all or any part of a traditional public school in order to access any or all flexibilities afforded to a charter school. 2. Prior to the board of educat ion of a school district converting all or any part of a traditional publi c school to a conversion school, the board shall prepare a conversion plan. The conversion plan shal l include documentation that demonstrates and complies with paragraphs 1, 2, 6, 7 , 8, 9, 10, 13, 14, 15, 16, 17, 19, 20, 21, 22, 23, 24, 34 and 35 of subse ction B of Section 3-134 of this title. The conversion plan and all documents shall be in writing and shall be available to the public pursuant to the requirements of the Oklahoma O pen Records Act. All votes by the board of education of a school district to approve a conversion plan ENR. H. B. NO. 3872 Page 5 shall be held in an open public session. If the board of education of a school district votes to approve a conversion plan, the board shall notify the State Board of Education within sixty (60) days after the vote. The notif ication shall include a copy of the minutes for the board meeting at which the conversion plan was approved. 3. A conversion school shall comply with all the same accountability measures as are required of a charter school as defined in subsection D of th is section. The provisions of Sections 3-140 and 3-142 of this title shall not apply to a conversion school. Conversion schools shall comply with the same laws and State Board of Education rules relating to student enrollment which apply to traditional p ublic schools. Conversion schools shall be funded by the board of education of the school district a s a school site within the school district and funding shall not be affected by the conversion of the school. 4. The board of education of a school distri ct may vote to revert a conversion school back to a traditional public school at any time; provided, the change shall only occur during a break between school years. 5. Unless otherwise provided for in this subsection, a conversion school shall retain the characteristics of a traditional public school. F. A charter school may consist of a new school sit e, new school sites or all or any portion of an existing school site. An entire school district may not become a charter school site. SECTION 2. AMENDATORY 70 O.S. 2021, Section 3 -134, is amended to read as follows: Section 3-134. A. For written applications filed after January 1, 2008, prior to submission of the application to a proposed sponsor seeking to establish a c harter school, the applicant shall be required to complete training which shall not exceed ten (10) hours provided by the State Department of Education on the process and requirements for estab lishing a charter school. The Department shall develop and implement the training by January 1, 200 8. The Department may provide the training in any format and manner that the Department determines to be efficient and effective including, but not limited to, web-based training. ENR. H. B. NO. 3872 Page 6 B. Except as otherwise provided for in Secti on 3-137 of this title, an applicant seeking to establish a charter school shall submit a written applica tion to the proposed sponsor as prescribed in subsection E of this section. The application shall include: 1. A mission statement for the charter sch ool; 2. A description includi ng, but not limited to, background information of the organizational struct ure and the governing body of the charter school; 3. A financial plan for the fi rst five (5) years of operation of the charter school and a descripti on of the treasurer or other officers or persons who shall have primary responsibility for the finances of the charter school. Such person shall have demonstrated experience in school f inance or the equivalent thereof; 4. A description of the hiring poli cy of the charter school; 5. The name of the applicant or applicants and requested sponsor; 6. A description of the facility and location of the charter school; 7. A description of th e grades being served; 8. An outline of criteria designed to measure the effectiveness of the charter school; 9. A demonstration of support for the charter school from residents of the school district which may include but is not limited to a survey of t he school district residents or a petition signed by residents of the school district; 10. Documentation that the applicants completed charter school training as set forth in subsection A of this section; 11. A description of the minimum and maximum enro llment planned per year for each term of the charter contract; 12. The proposed calendar for the ch arter school and sample daily schedule; ENR. H. B. NO. 3872 Page 7 13. Unless otherwise authorized by law or regulation, a description of the academic program aligned with state stan dards; 14. A description of the instructional design of the charter school, including the type of l earning environment, class size and structure, curriculum overview and teach ing methods; 15. The plan for using internal and external assessments to measure and report student progress on the performance framework developed by the applicant in accordance with subsection C of Section 3-135 of this title; 16. The plans for identif ying and successfully serving students with disabilities, students who are Engli sh language learners and students who are academically behind; 17. A description of cocurricular or extracurricular programs and how they will be funded and delivered; 18. Plans and time lines for student recruitment and enrollment, including lottery pro cedures; 19. The student discipline policies for the charter school, including those for special ed ucation students; 20. An organizational chart that clearly presents the organizational structure of the charter school, including lines of authority and reporting between the governing board, staff, any related bodies such as advisory bodies or parent and teacher councils and any external organizations that will play a role in managing the school; 21. A clear description of the roles and responsibilities fo r the governing board, the leadership and management team for the charter school and any other entit ies shown in the organizational chart; 22. The leadership and teacher emplo yment policies for the charter school; 23. Proposed governing bylaws; 24. Explanations of any partnerships or contractual partnerships central to t he operations or mission of th e charter school; ENR. H. B. NO. 3872 Page 8 25. The plans for providing transportation, food service and all other significant operational or ancillary services; 26. Opportunities and expectations for parental involvement; 27. A detailed school star t-up plan that identifies task s, time lines and responsible individuals; 28. A description of the financi al plan and policies for the charter school, including financial controls and audit requirements; 29. A description of the insurance coverage the cha rter school will obtain; 30. Start-up and five-year budgets with clearly stated assumptions; 31. Start-up and first-year cash-flow projections with clearly stated assumptions; 32. Evidence of anticipated fundraising contributions, if claimed in the application; 33. A sound faciliti es plan, including backup or contingency plans if appropriate; 34. A requirement that the charter school governing board meet at a minimum quarter ly in the state and that for those charter schools outside of counties with a p opulation of five hundred thousand (500,000) or more, that a majority of members are residents within the geographic boundary of the sponsoring entity; and 35. A requirement t hat the charter school follow the requirements of the Oklahoma Open Meeting Act and Oklahoma Open Records Act. C. A board of education of a public school district, public body, public or private college or university, private person, or private organization may contract with a sponsor to establish a charter school. A private school shall not be eligible to contr act for a charter school under the provisions of the Oklahoma Charter Schools Act. ENR. H. B. NO. 3872 Page 9 D. The sponsor of a charter school is the board of education of a school district, the board of education of a technology center school district, a higher education institu tion, the State Board of Education, or a federally recognized Indian tribe w hich meets the criteria established in Section 3 -132 of this title. Any board of education of a school district in the state may sponsor one or more charter schools. The physical location of a charter school sponsored by a board of education of a school district or a technology center school district shall be within the boundaries of the sponsoring school district. The physical location of a charter school sponsored by the State Board of Education when the applicant of the charter school is the Office of Juvenile Affairs shall be where an Office of Juvenile Affairs facil ity for youth is located. The physical location of a charter school otherwise spo nsored by the State Board of Education pursuant to paragraph 8 of subsection A of Section 3-132 of this title shall be in the school district in which the application origina ted. E. An applicant for a charter school may submit an application to a proposed sponsor which shall either ac cept or reject sponsorship of the charter school within ninety (90) days of receipt of the application. If the proposed sponsor rejects the application, it shall notify the applicant in writing of the reasons for the rejection. The applicant may submit a revised application for reconsideration to the proposed sponsor within thir ty (30) days after receiving notification of the rejection. The pr oposed sponsor shall accept or reject the revised application within thirty (30) days of its receipt. Should the sponsor reject the application on reconsideration, the applicant may appeal the decision to the State Board of Education with the revised appl ication for review pursuant to paragraph 8 of subsection A of Section 3 -132 of this title. The State Board of Education shall hear the appeal no later than sixty (60) days from the date re ceived by the Board. F. A board of education of a school district , board of education of a technology center school district, higher education institution, or federally recognized Indian tribe sponsor of a charter school shall notify the State Board of Ed ucation when it accepts sponsorship of a charter school. The noti fication shall include a copy of the charter of the charter school. G. Applicants for charter schools proposed t o be sponsored by an entity other than a school district pursuant to paragra ph 1 of subsection A of Section 3 -132 of this title may, upon rej ection of the revised application, proceed to binding arbitration under the ENR. H. B. NO. 3872 Page 10 commercial rules of the American Arbitr ation Association with costs of the arbitration to be borne by the proposed sponsor. Applicants for charter schools proposed to be sponsored by school districts pursuant to paragraph 1 of subsection A of Section 3 -132 of this title may not proceed to bind ing arbitration but may be sponsored by the State Board of Education as prov ided in paragraph 8 of subsection A of Section 3 -132 of this title. H. If a board of education of a technology center school district, a higher educa tion institution, the State Bo ard of Education, or a federally recognized Indian tribe accepts sponsorship of a charter school, the administrative, fiscal and oversight responsibilities of the technology center school district, the higher education institu tion, or the federally recogni zed Indian tribe shall be listed in the contract. No responsibilities shall be delegated to a school district unless the local school distr ict agrees to assume the responsibilities. I. A sponsor of a public charter school sh all have the following powers and duties: 1. Provide oversight of the operations of charter schools in the state through annual performance reviews of charter schools and reauthorization of charter schools for which it is a sponsor; 2. Solicit and evalua te charter applications; 3. Approve quality charter applications that meet identified educational needs and promote a diversity of educational choices; 4. Decline to approve weak or inadequate charter applications; 5. Negotiate and execute sound charter contracts with each approved public charter school; 6. Monitor, in accordance with charter contract term s, the performance and legal compliance of charter school s; and 7. Determine whether each charter contract merits renewal, nonrenewal or revocation. J. Sponsors shall establish a procedure for accepting, approving and disapproving charter school applicat ions in accordance with subsection E of this section. ENR. H. B. NO. 3872 Page 11 K. Sponsors shall be required to develop and maintain chartering policies and practices consist ent with recognized principles and standards for quality charter authorizing as established by the State D epartment of Education in all major areas of authorizing responsibility, including organizational capacity and infrastructure, soliciting and evaluati ng charter applications, performance contracting, ongoing charter school oversight and evaluation and charter renewal decision-making. L. Sponsors acting in t heir official capacity shall be immune from civil and criminal liability with respect to all acti vities related to a charter sc hool with which they contract. SECTION 3. 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 e ffect and be in full force from and after its passage an d approval. ENR. H. B. NO. 3872 Page 12 Passed the House of Representatives the 9th day of March, 2022. Presiding Officer of the House of Representatives Passed the Senate the 27th day of April, 2022. Presiding Officer of the Senate OFFICE OF THE GOVERNOR Received by the Office of the Governor this ____________________ day of ___________________, 20_______, a t _______ o'clock _______ M. By: _________________________________ Approved by the Governor of the State of Oklahoma this _____ ____ day of ___________________, 20_______, at _______ o'clock _______ M. _________________________________ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF STATE Received by the Office of the Secretary of State this __________ day of ___________________, 20_______, at _______ o'clock _______ M. By: _________________________________