ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED SENATE AMENDMENT TO ENGROSSED HOUSE BILL NO. 4388 By: Hilbert and Baker of the House and Pugh of the Senate [ amusements and sports - Oklahoma Education Lottery Act - Teacher Empowerment Revolving Fund - effective date - conditional effect ] AMENDMENT NO. 1. Page 1, strike the stricken title, enacting clause and entire bill and insert “An Act relating to teachers; amending 3A O.S. 2021, Section 713, which relates to the Oklahoma Education Lottery Act; requiring proceeds in excess of certain annual amount be deposited into certain fund; updating references; creating the Teacher Empowerment Revolving Fund for the State Department of Education; providing for expenditures; providing purpose of fund; amending 70 O.S. 2021, Section 6 -190, which relates to criteria for issuing te aching certificates; removing language establishing criteria for lead and master teaching certificates; allowing the State Board of Education to establish advanced, lead, and master teaching certificates; establish ing minimum salary increase for certificat es; prescribing additional one-time award for certain teachers; directing school districts to identify and designate teachers for certificates; requiring submission of designation plans to the State Department of Education for evaluation and approval; prov iding minimum requirements for district designation system; ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 authorizing use of additional factors; requiring state funding match; exempting certain teachers from certain annual evaluations; prescribing frequency an d timing of designation; providing for pro fessional development cohorts and additional training; requiring biennial review of certain evaluation system; requiring annual report on program; prescribing and modifying contract terms for teachers with advanced, lead, and master certificates; clarifying certain funding is a state match for local funds; modifying school year in which certificates are to be made available; updating statutory citations; and providing for codification . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 3A O.S. 2021, Section 713, is amended to read as follows: Section 713. A. All gross proceeds shall be t he property of the Oklahoma Lottery Commission. From its gross proceeds, the Commission shall pay the operating expenses of the Commission. At least forty-five percent (45%) of gross proceeds shall be made available as prize money. However, the provisio ns of this subsection shall be deemed not to create any lien, en titlement, cause of action, or other private right, and any rights of holders of tickets or shares shall be d etermined by the Commission in setting the terms of its lottery or lotteries. B. The Oklahoma Lottery Commission shall submit a written report of its findings and any recommendations regarding the impact of removing the requirement that net proceeds shall equal at least thirty-five percent (35%) of the gr oss proceeds. The report shall ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 be submitted to the Governor, the Speaker of the Oklahoma House of Representatives and the President Pro Tempore of the Oklahoma State Senate not later than October 1, 2020, and annually thereafter. C. There is hereby creat ed in the State Treasury a fund to be designated the "Oklahoma Education Lottery Trust Fund ". Except as otherwise provided in subsections I H and J I of this section, on or before the fifteenth day of each ca lendar quarter, the Commission shall transfer to the State Treasurer, for credit to the Oklahoma Education Lottery Trust Fund, the amount of al l net proceeds accruing during the preceding calendar quarter. Expenditures from the fund shall be made upon war rants issued by the State Treasurer against claims filed as prescribed by law wi th the Director of the Office of Management and Enterprise Serv ices for approval and payment. D. Upon their deposit into the State Treasury, any monies representing a deposit of net proceeds shall then become the unencumbered property of this state, and n either the Commission nor the board of trustees shall have the power to agree or undertake otherwise. The monies shall be invested by the State Treasurer in accordance with state investment practices. All earnings attributable to such investments shall l ikewise be the unencumbered property of the state and shall acc rue to the credit of the fund provided for in subsection C of this section. ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. Monies in 1. The first Seventy-five Million Dollars ($75,000,000.00) of monies contributed annually to the Oklahoma Education Lottery Trust Fund shall only be appropriated as follows : 1. Forty-five a. forty-five percent (45%) for the following: a. (1) kindergarten through twelfth grade public education, including but not limite d to compensation and benefits for public school teachers and support employees, and b. (2) early childhood development programs, which shall include but not be limited to costs associated with prekindergarten and full -day kindergarten programs;, 2. Forty-five b. forty-five percent (45%) for the following: a. (1) tuition grants, loans and sc holarships to citizens of this state to enable such citizens to attend colleges and universities located within this state, regardless of whether such colleges and universities are owned or o perated by the Oklahoma State Regents for Higher Education, or to attend institutions operated under the authority of the Oklahoma Department of Career and Technology Education; provided, such tuition ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 grants, loans and scholarships shall not be made to a citizen of this state to attend a college or university which is no t accredited by the Oklahoma State Regents for Higher Education, b. (2) construction of educational facilities for elementary school districts, independent school districts, The Oklahoma State Sy stem of Higher Education, and career and technology education , c. (3) capital outlay projects for elementary school districts, independent sc hool districts, The Oklahoma State System of Higher Education, and career and technology education, d. (4) technology for public elementary school district, independent school district, state higher education, and career and technology education facilities, which shall include but not be limited to costs of providing to teachers at accredited public institutions who teach leve ls kindergarten through twelfth grade, personnel at technology centers under the authority of the Oklahoma State Department of Career and Technology Education, and professors and instructors within The Oklahoma State System of Higher Education, the necessa ry training in the ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 use and application of computers a nd advanced electronic instructional technology to implement interactive learning environments in the classroom and to access the statewide distance learning network and costs associated with repairing and maintaining advanced electronic instructional technology, e. (5) endowed chairs for professors at institutions of higher education operated by The Oklahoma State System of Higher Education, and f. (6) programs and personnel of the Oklahoma School for the Deaf and the Oklahoma School for the Blind;, 3. Five c. five percent (5%) to the School Consolidation and Assistance Fund. When t he total amount in the School Consolidation and Assistance Fund from all sources equals Five Million Dollars ($5,000,000.00), all monies appropriated pursuant to this paragraph subparagraph which would otherwise be deposited in the School Consolidation and Assistance Fund in exc ess of Five Million Dollars ($5,000,000.00) shall be allocated by the State Department of Education to public schools based on the audited end-of-year average daily membership in grades 8 through 12 during ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the preceding school year for the purpose of purchasing technology equipment. If at any time the total amount in the School Consolidation and Assistance Fund drops below Five Million Dollars ($5,000,000.00), the monies appropriated pursuant to this paragraph subparagraph shall be deposited in the School Consolidation and Assistance Fund until the Fund again reaches Five Million Dollars ($5,000,000.00);, and 4. Five d. five percent (5%) to the Teachers' Retirement System Dedicated Revenue Revolving Fund. In no instance shall the annual maximum percentage for administrative costs, not including marketing and advertising costs, funds set aside for prizes, commiss ions paid to retailers, contract fees paid to gaming system vendors and instant ticket providers or emergency-related capital expenses, exceed three percent (3%) of sales. F. 2. The remaining portion of lottery annual net proceeds deposited to the Oklahom a Education Lottery Trust Fund that exceeds Seventy-five Million Dollars ($75,000,000.00) shall be deposited to the credit of the Teacher Empowerment Revolving Fund crea ted in Section 2 of this act. ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. The Legislature shall appropriate funds from the Oklahoma Education Lottery Trust Fund only for the purposes specified in subsection E D of this section. Even when funds from th e trust fund are used for these purposes, the Legislature shall not use funds from the trust fund to supplant or replace other state fun ds supporting common education, higher education, or career and technology education. G. F. In order to ensure that the funds from the trust fund are used to enhance and not supplant funding for education, the State Board of Equalization shall examine and investigate appropriations from the trust fund each year. At the meeting of the State Board of Equalization held withi n five (5) days after the monthly apportionment in February of each year, the State Board of Equalization shall issue a finding and repo rt which shall state whether appropriations from the trust fund were used to enhance or supplant education funding. If the State Board of Equalization finds that education funding was supplanted by funds from the trust fund, the Board shall specify the am ount by which education funding was supplanted. In this event, the Legislature shall not make any appropriations for th e ensuing fiscal year until an appropriation in that amount is made to replenish the trust fund. H. G. Except as otherwise provided by this subsection, no deficiency in the Oklahoma Education Lotter y Trust Fund shall be replenished by reducing any nonlott ery funds, including, ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 specifically but without limitation, the General Revenue Fund, the Constitutional Reserve Fund or the Education Ref orm Revolving Fund of the State Department of Education. No p rogram or project started specifically from lottery procee ds shall be continued from the General Revenue Fund, the Constitutional Reserve Fund or the Education Reform Revolving Fund of the State Department of Education. Such programs must be adjusted or d iscontinued according to available lottery proceeds unless the Legislature by general law establishes eligibility requirements and appropriates specific funds therefor. No surplus in the Oklaho ma Education Lottery Trust Fund shall be reduced or transferre d to correct any nonlottery deficiencies in sums available for general appropriations. The provisions of this subsection shall not apply to bonds or other obligations issued pursuant to or to t he repayment of bonds or other obligations issued pursuant to the Oklahoma Higher Education Promise of Excellence Act of 2005. I. H. There is hereby created in the S tate Treasury a revolving fund to be designated the "Oklahoma Education Lottery Revolving Fund". The fund shall be a continuing fund, not subject to fi scal year limitations, and shall consist of all monies rec eived by the Commission. The Commission shall make payments of net proceeds from the fund to the Oklahoma Edu cation Lottery Trust Fund on or before the fifteenth day of each calendar quarter as pro vided in subsection C of this section. All monies accruin g to the credit of the ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Oklahoma Education Lott ery Revolving Fund are hereby appropriated and may be budgeted a nd expended for the paymen t of net proceeds, prizes, commissions to retailers, administr ative expenses and all other expenses arising out of the o peration of the education lottery, subject to the limitations provided in the Oklahoma Education Lottery Act. Expenditures from the fun d shall be made upon warrants issued by the State Treasurer ag ainst claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. The monies in the fund shall be invested by the State Trea surer in accordance with state investment practices. All earn ings attributable to such investments shall likewise accru e to the credit of the fund. J. I. When appropriations from the Oklahoma Education Lottery Trust Fund are made t o common education purs uant to the provisions of subparagraph a of paragraph 1 of subsection E D of this section, the appropriations shall be made available on a monthly basis. In addition to the provisions of subsections C and D of this section, the following process shall be used to ensure that the appropriations are made available to c ommon education in a timely manner: 1. Beginning in July of the fiscal year in which appropriations are made to common education from the Oklahoma Education Lottery Trust Fund, the Commissio n, on or before the ninth day of each ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 month, shall transfer to th e State Treasurer, for credit to the Oklahoma Education Lottery Trust Fund, the amount of net proceed s accruing during the preceding month equal to the amount of total monthly collections due to common education as required by subparagraph a of paragraph 1 of subsection E D of this section; 2. The Director of th e Office of Management and Enterprise Services shall allocat e the transfers provided for in paragraph 1 of this subsection to the State Department of Education on a monthly basis, not to exceed one -twelfth (1/12) of the annual apportionment for the fiscal year; and 3. The total amount of transfers to the Oklahoma Education Lottery Trust Fund of net lottery proceeds made pursuant to this subsection shall not exceed the total appropriations made to co mmon education from the Oklahoma Education Lottery Trust F und for the specific fiscal year. K. J. When appropriations from the Oklahoma Education Lottery Trust Fund are made to The Oklahoma Sta te System of Higher Education, the appropriations shall be mad e available to the System on a monthly basis. In addition to the provisions of subsections C and D of this section, t he following process shall be used to ensure that the appropriations are mad e available to The Oklahoma State System of Higher Education i n a timely manner: 1. Beginning in July of the fiscal yea r in which appropriations are made to The Oklahoma State Sys tem of Higher Education from the ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Oklahoma Education Lottery Trust Fund, the Commission, on or before the ninth day of each month, shall tr ansfer to the State Treasurer, for credit to the Oklahoma Education Lottery Trust Fund, the amount of net proceeds accruing during the preceding month equal to the amount of total monthly collec tions due to the Oklahoma State Regents for Higher Education a s required by subparagraph b of paragraph 2 1 of subsection E D of this section; 2. The Director of the Office of Man agement and Enterprise Services shall allocate t he transfers provided for in paragraph 1 of this subsection to the Oklahoma State Regents for Higher Education on a monthly basis, not to exceed one -twelfth (1/12) of the annual apportionment for the fiscal y ear; and 3. The total amount of transfers to th e Oklahoma Education Lottery Trust Fund of net lottery proceeds made pursuant to this subsection shall not exceed the total appropriations made to T he Oklahoma State System for Hig her Education from the Oklah oma Education Lottery Trust Fund for the specifi c fiscal year. SECTION 2. NEW LAW A new section of law to be codif ied in the Oklahoma Statutes as Section 6-190.2 of Title 70, unless there is created a duplication in numbering, reads as follows: A. There is hereby created in the State Treasury a revolving fund for the State Department of Education to be designated the "Teacher Empowerment Revolving Fund". The revolving fund shall be a continuing fund, without legislative appropriati on, not subject to ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 fiscal year limitations, and shall be under the control and management of the State Department of Education. Expenditures from the Teacher Empowerment Revolving Fund shall be b udgeted and expended as provided for in subsection B of this section. B. The State Department of Educ ation shall utilize the funds for the program outlined in Section 6-190 of Title 70 of the Oklahoma Statutes. Funding shall go toward advanced, lead, and master certificate holders on a first-come, first-served basis until the cash is exhausted for the school year. Funds from the Teacher Empowerment Revolving Fund shall serve as a state match to local dollars each school district contributes to its advanced, lead, and master teachers as provided in Section 713 of Title 3A of the Oklahoma Statutes. SECTION 3. AMENDATORY 70 O.S. 2021, Section 6 -190, is amended to read as follows: Section 6-190. A. The board of education of each sc hool district shall employ and contract in writing, as required in Section 6-101 of this title, only with persons certified to teach by the State Board of Education in accordance with the Oklahoma Teacher Preparation Act, except as otherwise provided for b y Section 6-101 of this title and by other law. B. The Board shall issue a certificate to teach to any person who: ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Has successfully completed the teacher education program required by the Commission for Educational Quality and Accountability; 2. Has graduated from an accredited institution of higher education that has approval or accreditation for teacher education; 3. Has met all other requirements as may be established by the Board; 4. Has made the necessary application and paid the competency examination fee in an amount and as prescribed by the Commission; 5. Has successfully completed the competency examination required in Section 6-187 of this title; and 6. Beginning November 1, 2001, has on file with the Board a current Oklahoma criminal his tory record from the Oklahoma State Bureau of Investigation as well as a national criminal history record check as defined in S ection 150.9 of Title 74 of the Oklahoma Statutes. Upon receipt of the Oklahoma criminal history record, the Board may issue a temporary certificate which shall be effective until receipt of the national fingerprint -based criminal history record. The person applying for a certificate shall be responsible for the cost of the criminal history records. C. The Board shall issue a cer tificate to teach to any person who: 1. Holds an out-of-state certificate and meets the requirements set forth in subsection G of this section; ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Holds certification from the National Board for Professional Teaching Standards; 3. Holds an out-of-country certificate and meets the requirements set forth in subsection F of this section; or 4. Has successfully completed a compete ncy examination used in the majority of other states or comparable customized exam and meets the requirements set forth in subsec tion H of this section. D. Beginning July 1, 2004, any person applying for initial Oklahoma certification shall have on file w ith the Board a current Oklahoma criminal history record from the Oklahoma State Bureau of Investigation as well as a national cr iminal history record check as defined in Section 150.9 of Title 74 of the Oklahoma Statutes. Upon receipt of the Oklahoma cri minal history record, the Board may issue a temporary certificate which shall be effective until receipt of the national fingerpr int-based criminal history record. The person applying for a certificate shall be responsible for the cost of the criminal history records. E. Any person holding a valid certificate, issued prior to January 1, 1997, shall be a certified teacher for purpo ses of the Oklahoma Teacher Preparation Act, subject to any professional development requirements prescribed by the Oklahoma Te acher Preparation Act or by the State Board of Education. F. 1. The Board shall issue a certificate to teach to a person who holds a valid out-of-country certificate and meets any ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 requirements established by the Board. The certificate to teach shall only be for those subject areas and grade levels most closely aligned to the subject areas and grade levels recognized on the out- of-country certificate. 2. A person who meets the requirements of paragraph 1 of this subsection shall not be required to take a ny competency examinations in those subject areas and grade levels most closely aligned to the subject areas and grade levels rec ognized on the out-of-country certificate. 3. A person who meets the requirements of paragraph 1 of this subsection shall have on file with the Board a current Oklahoma criminal history record check from the Oklahoma State Bureau of Investigation as well as a national criminal history record check as defined in Section 150.9 of Title 74 of the Oklahoma Statutes. Upon receipt of the Oklahoma criminal history record check, the Board may issue a temporary certificate which shall be effective until receipt of the national fingerprint-based criminal history record check. The person applying for a certificate shall be responsible for the cost of the criminal history record checks. 4. The Board shall promulgate rules establishing a process by which out-of-country certificates will be reviewed and evaluated for purposes of awarding a certificate to teach pursuant to this subsection. ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G. 1. The Board shall issue a certificate to teach to a person who holds a valid out-of-state certificate. The certificate to teach shall only be for those subject areas and grade levels most closely aligned to the subject areas and grade levels recognized on the out-of-state certificate. 2. A person who meets the requirements of paragraph 1 of this subsection shall not be required to take any competency examinations in those subject areas and grade levels most closely aligned to the subject areas and grad e levels recognized on the out-of-state certificate. 3. A person who meets the requirements of this subsection shall have on file with the Board a current Oklahoma criminal history record check from the Oklahoma State Bureau of Investigation as well as a national criminal history record check as defined in Section 150.9 of Title 74 of the Oklahoma Statutes. Upon receipt of the Oklahoma criminal history record check, the Board may issue a temporary certificate which shall be effective until receipt of the national fingerprint-based criminal history record check. The person applying for a certificate shall be responsible for the cos t of the criminal history record checks. H. 1. The Board shall issue a certificate to teach to a person who has successfully completed a competency exam used in a majority of the other states. The certificate to teach shall only be for ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 those subject areas and grade levels that correspond with a certification area used in Oklahoma. 2. A person who meets the requirements of para graph 1 of this subsection shall have on file with the Board a current Oklahoma criminal history record check from the Oklahoma S tate Bureau of Investigation as well as a national criminal history record check as defined in Section 150.9 of Title 74 of the Oklahoma Statutes. Upon receipt of the Oklahoma criminal history record check, the Board may issue a temporary certificate whic h shall be effective until receipt of the national fingerprint -based criminal history record check. The person applying for a certificate shall be responsible for the cost of the criminal history record checks. I. 1. The Board shall issue a lead teachin g certificate to any person who upon application: 1. Has successfully completed the requirements of this subsection; 2. Has a minimum of five (5) years of experience as a teacher; 3. Participates in a meaningful individualized program of professional development, as provided for in Section 6-101.10 of this title; 4. Has earned a "highly effective" or "superior" rating pursuant to Section 6-101.16 of this title; and ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. May have a teaching load of not more than seventy-five percent (75%) student instruct ion to allow the teacher to mentor other teachers. J. 1. The Board shall issue a master teaching certificate to any person who upon application: a. has successfully completed the requirements of this subsection, b. has a minimum of seven (7) years of exp erience as a teacher, and c. (1) has earned a "superior" rating pursuant to Section 6-101.16 of this title, or (2) has earned a "highly effective" rating pursuant to Section 6-101.16 of this title and holds or has held a National Board certification from t he National Board for Professional Teaching Standards. 2. Teachers with a master teaching certificate may assume leadership roles that include but are not limited to: a. the planning and delivery of professional development activities designed to improve instructional strategies, b. the facilitation of an instructional leadership team within the building or school district in whi ch the lead teacher is assigned, and ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 c. the mentoring of other teachers and participation in evaluations of other teachers. 3. Teachers with a master teaching certificate may have a teaching load of not more than fifty percent (50%) student instruction to allow the lead teacher to spend time on: a. co-teaching, b. co-planning, c. peer reviews, and d. other duties mutually agreed up on by the superintendent and the master teacher, and may be used to satisfy the qualitative evaluation component for teachers as required by Section 6-101.16 of this title by performing the duties set forth in this paragraph may establish new levels of teacher certificates: advanced, lead, and master. Each level shall have a minimum salary increase requirement paid by the school district and matched with state dollars from the lottery funds as provided in Section 713 of Title 3A of the Oklahoma Statutes. The advanced certificate shall include a minimum salary increase of Three Thousand Dollars ($3,000.00), the lead certificate shall include a minimum salary increase of Five Thousand Dollars ($5,000.00), and the master certificate shall include a minimum salary increase of Ten Thou sand Dollars ($10,000.00) and maximum salary increase of Forty Thousand Do llars ($40,000.00). ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. A teacher who works in a school with an enrollment of forty percent (40%) or more of students who are economically disadvantaged as defined in Section 18 -109.5 of this title or a school district with an enrollment of fewer than one thousand students shall be paid a one-time award in addition to the salary increases provided in paragraph 1 of this subsection: a. One Thousand Five Hundred Dollars ($1,500.00) for an advanced certificate, b. Two Thousand Five Hundred Dollars ($2,500.00) for a lead certificate, and c. Five Thousand Dollars ($5,000.00) for a master certificate. 3. School districts may identify and designate the highest quality teachers for advanced, lead, and master certificates. Participating districts shall submit designation plans to the State Department of Education for evaluation and approval. Districts shall have local control and flexibility in determining how to evaluate teachers and assign designations , but, at a minimum, the designation system shall include a teacher observation , out-of- classroom time, and a student performance component. a. Teacher observation shall be based on the district's selected Teacher and Leader Effectiveness Evaluation System (TLE) evaluation tool or an alternate method of evaluation; provided, the method is evidenced based. ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Alternate methods of evaluation shall not re place the requirements of Section 6-101.16 of this title. b. Each school district that elects to participate in assigning advanced, lead, and master teacher certificates shall include an out-of-classroom component for its assigned teachers to allow for professional growth opportunities while staying in the classroom. How out-of-classroom time is allo tted and managed shall be determined by the school district and submitted as part of its designation plan to the State Department of Education for review and a pproval. c. Student performance measures may be determined by the district and may include, but shall not be limited to, pre- and post-tests, summative or formative , and portfolios. The school district application shall show evidence of validity and reliability of the measures. Districts may use additional factors in determining which teachers are eligible to receive a designat ion, such as student surveys, teacher leade rship responsibilities, teacher mentorship responsibilities, family surveys, demonstration of district core values, teacher peer surveys, and contributions to the broader school community. No more than ten percent (10%) of each school ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 district's teachers may be designated as an advanced, lead, or master teacher in any given school year. 4. If a school district chooses to participate in this program, the state shall match the amount the district pays above base pay, up to Forty Thousand Dollars ($40,000.00) per teacher. 5. School districts that designate teachers for advanced, lead, and master certificates do not have to participate in annual TLE evaluations for the designated teachers. 6. School districts may designate teachers for advanced, lead, or master certificates two times per year, once prior to the beginning of the school year, and once prior to the beginning of the second semester. Teachers statewide who receive these designations shall be placed in professional development cohorts and provided additional training opportunities from the State Department of Education. 7. After initial approval by the State Department of Education, the Department shall review and validate each participating school district's teacher evaluation system biennially. 8. The State Department of Education shall annual ly report the school districts partici pating in the program, the number of advanced, lead, and master certificates awarded, and the total amount in state match funding that was distributed to teachers . K. J. The State Board of Education shall adopt rules to implement a renewal schedule and as sociated fees for advanced, lead, ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 and master teaching certificates. The rules shall allow a teacher that no longer meets the requi rements of a an advanced, lead, or master teaching certificate to make application for the standard teaching certificate. L. K. The terms of the contracts issued to those holding advanced, lead, and master teaching certificates shall include the following: 1. Advanced: an additional five (5) days to be used to strengthen instructional lea dership. A person with an advanced teaching certificate shall receive an annual salary increase of at least Three Thousand Dollars ($3,000.00) or the district's daily rate of pay, whichever is higher, in addition to the salary for which the teacher qualif ies pursuant to Section 18-114.14 of this title. This increase shall be matched by state dollars from the lottery funds as provided in Section 713 of Title 3A of the Oklahoma Statutes and shall be paid as regular annual compensation directly to teachers through school districts; 2. Lead: an additional ten (10) days to be used to strengthen instructional leadership. A person with a lead teac hing certificate shall receive an annual salary supplement increase of at least Three Thousand Dollars ($3,000.00) Five Thousand Dollars ($5,000.00) or the district's daily rate of pay, whichever is higher, in addition to the salary for which the teacher qualifies pursuant to Section 18-114.14 of this title. This increase shall be matched by state ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 dollars from the lottery funds as provided in Section 713 of Title 3A of the Oklahoma Statutes and shall be paid as regular annual compensation directly to teachers through school districts; and 2. 3. Master: an additional fifteen (15) days to be used to strengthen leadership. A person with a master teachin g certificate shall receive an annual salary supplement increase of at least Five Thousand Dollars ($5,000.00) Ten Thousand Dollars ($10,000.00) or the district's daily rate of pay, whichever is higher, in addition to the salary for which the teacher quali fies pursuant to Section 18-114.14 of this title. This increase, up to Forty Thousand Dollars ($40,000.00) , shall be matched by state dollars from the lottery funds as provided in Section 713 of Title 3A of the Oklahoma Statutes and shall be paid as regular annual compensation directly to teachers through school districts. If a person with a an advanced, lead, or master teaching certificate changes school districts during the life of the certificate, the terms of the c ontracts required in this subsection shall be subject to approval by the new employing school district. M. 1. Any person who is eligible for a lead or master teachi ng certificate described in this section shall make application for the following school year with the State Board of Education. The application shall include a recommendation from the local board of education and determination that the applicant has met the statutory criteria. In reviewing an application, the local school board of ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 education and the superintendent shall consider the ability of the school district to fulfill the additional requirements described in subsections I and J of this section befor e making a recommendation to the State Board of Education. 2. The State Department of Edu cation shall develop an application to implement the provisions of this subsection and make it available to school districts. N. L. Beginning in the 2021-2022 2022-2023 school year, the Department shall make the teaching certificates provided for in this section available for any person who has received a recommendation from their local board of education his or her school district and who meets the eligibility criter ia as outlined in each school district's teacher evaluation system provided for in subsect ion I of this section. O. For the 2019-2020 and 2020-2021 school years, the Department shall identify school districts to implement the teaching certificates provide d for in this section on a pilot program basis with the assistance of public -private partnerships, funding from philanthropic organizations or federal grants. P. The Department shall seek funding M. The funding necessary for the administration of this se ction shall be provided from the Teacher Empowerment Revolving Fund created in Section 2 of this act. If funding for the administration of the teaching certificates listed in subsections subsection I and J is not available, the ENGR. S. A. TO ENGR. H. B. NO. 4388 Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Department shall not be required to fulfill th e requirements listed in subsections I, K, and L, M, N and O of this section. Q. N. The State Board of Education shall promulgate rules to implement the provisions of this act Section 6-180 et seq. of this title.” Passed the Senate the 28th day of April, 2022. Presiding Officer of the Senate Passed the House of Representatives the ____ day of __________, 2022. Presiding Officer of the House of Representatives ENGR. H. B. NO. 4388 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED HOUSE BILL NO. 4388 By: Hilbert and Baker of the House and Pugh of the Senate [ amusements and sports - Oklahoma Education Lottery Act - Teacher Empowerment Revolving Fund - effective date - conditional effect ] BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA: SECTION 4. AMENDATORY 3A O.S. 2021, Section 713, is amended to read as follows: Section 713. A. All gross proceeds shall be t he property of the Oklahoma Lottery Commission. From its gross proceeds, the Commission shall pay the ope rating expenses of the Commission. At least forty-five percent (45%) of gross proceeds shall be made available as prize money. However, the provisio ns of this subsection shall be deemed not to create any lien, en titlement, cause of action, or other priva te right, and any rights of holders of tickets or shares shall be d etermined by the Commission in setting the terms of its lottery or lotteries. ENGR. H. B. NO. 4388 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. The Oklahoma Lottery Commission shall submit a written report of its findings and any recommendations regar ding the impact of removing the requirement that net proceeds shall equal at least thirty-five percent (35%) of the gr oss proceeds. The report shall be submitted to the Governor, the Speaker of the Oklahoma House of Representatives and the President Pro T empore of the Oklahoma State Senate not later than October 1, 2020, and annually thereafter. C. There is hereby creat ed in the State Treasury a fund to be designated the "Oklahoma Education Lottery Trust Fund ". Except as otherwise provided in subsections I H and J I of this section, on or before the fifteenth day of each ca lendar quarter, the Commission shall transfer to the State Treasurer, for credit to the Oklahoma Education Lottery Trust Fund, the amount of al l net proceeds accruing during the preceding c alendar quarter. Expenditures from the fund shall be made upon war rants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Serv ices for approval and payment. D. Upon their deposit into the State Treasury, any monies representing a deposit of net proceeds shall then become the unencumbered property of this state, and neit her the Commission nor the board of trustees shall have the power to agree or undertake otherwise. The monies shall be invested by the State Treasurer in accordance with state investment practices. All earnings ENGR. H. B. NO. 4388 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 attributable to such investments shall like wise be the unencumbered property of the state and shall acc rue to the credit of the fund provided for in subsection C of this section. E. Monies in 1. The first Sixty Million Dollars ($60,000,000.00) of monies contrib uted annually to the Oklahoma Education Lottery Trust Fund shall only be appropriated as follows : 1. Forty-five a. forty-five percent (45%) for the following: a. (1) kindergarten through twelfth grade public education, including but not limite d to compensation and benefits for public school teachers and support employees, and b. (2) early childhood development programs, which shall include but not be limited to costs associated with prekindergarten and full -day kindergarten programs;, 2. Forty-five b. forty-five percent (45%) for the following: a. (1) tuition grants, loans and sc holarships to citizens of this state to enab le such citizens to attend colleges and u niversities located within this state, regardless of whether such colleges and universities are owned or o perated by the Oklahoma State Regents for Higher Education, or ENGR. H. B. NO. 4388 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 to attend institutions operated under the authority of the Oklahoma Department of Caree r and Technology Education; provided such tuition grants, loans and scholarships shall not be made to a citizen of this state to attend a college or university which is no t accredited by the Oklahoma State Regents f or Higher Education, b. (2) construction of educational facilities for elementary school districts, independent school districts, The Oklahoma State Sy stem of Higher Education, and career and technology education , c. (3) capital outlay projects for element ary school districts, independent school districts, The Oklahoma State System of Higher Education, and career and technology education, d. (4) technology for public elementary school district, independent school district, state higher education, and career and technology education facilities, which shall include but not be limited to costs of providing to teachers at accredited public institutions who teach leve ls kindergarten through twelfth grade, personnel at technology centers under the authority of the Oklahoma State Department of Career and ENGR. H. B. NO. 4388 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Technology Education, and professors and instructors within The Oklahoma State System of Higher Education, the necessa ry training in the use and application of computers a nd advanced electronic instructional technol ogy to implement interactive learning env ironments in the classroom and to access the statewide distance learning network and costs associated with repairing and maintaining advanced electronic instructional technology, e. (5) endowed chairs for professors at institutions of higher education oper ated by The Oklahoma State System of Higher Education, and f. (6) programs and personnel of the Oklahoma School for the Deaf and the Oklahoma School for the Blind;, 3. Five c. five percent (5%) to the School Consolidation and Assistance Fund. When the total a mount in the School Consolidation and Assistance Fund from all sources equals Five Million Dollars ($5,000,000.00), all monies appropriated pursuant to this paragraph subparagraph which would otherwise be deposited in the School Consolidation and Assistance Fund in exc ess of Five Million Dollars ($5,000,000.00) shall be ENGR. H. B. NO. 4388 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 allocated by the State Department of Education to public schools based on the audited end-of-year average daily membership in grades 8 through 12 during the preceding school year for the purpose of purchasing technology equipment. If at any time the total amount in the School Consolidation and Assistance Fund drops below Five Million Dollars ($5,000,000.00), the monies appropriated pursuant to this paragraph subparagraph shall be deposited in the School Consolidation and Assistance Fund until the Fund again reaches Five Million Dollars ($5,000,000.00);, and 4. Five d. five percent (5%) to the Teachers' Retirement System Dedicated Revenue Revolving Fund. In no instance shall the annual maximum percentage for administrative costs, not including marketing and advertising costs, funds set aside for prizes, commissions paid to ret ailers, contract fees paid to gaming system vendors and instant ticket providers or emergency-related capital expenses, exceed three percent (3%) of sales. F. 2. The remaining portion of lottery annual net proceeds deposited to the Oklahoma Education Lott ery Trust Fund that exceeds Sixty Million Dollars ($60,000,000.00) shall be deposited to the ENGR. H. B. NO. 4388 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 credit of the Teacher Empowerment Revolving Fund crea ted in Section 2 of this act. E. The Legislature shall appropriate funds from the Oklahoma Education Lottery Trust Fund only for the purposes specified in subsection E D of this section. Even when funds from the trust fund are used for these purposes, the Legislature shall not use funds from the trust fund to supplant or replace other state funds supporting common education, higher education, or career and technology education. G. F. In order to ensure that the funds from the trust fund are used to enhance and not supplant funding for education, the State Board of Equalization shall examine and investigate appro priations from the trust fund each year. At the meeting of the State Board of Equalization held within five (5) days after the monthly apportionment in February of each year, the State Board of Equalization shall issue a finding and report which shall sta te whether appropriations from the trust fund wer e used to enhance or supplant education funding. If the Sta te Board of Equalization finds that education funding was supplanted by funds from the trust fund, the Board shall specify the amount by which educ ation funding was supplanted. In this event, the Legislature shall not make any appropriations for the ensui ng fiscal year until an appropriation in that amount is made to replenish the trust fund. ENGR. H. B. NO. 4388 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 H. G. Except as otherwise provided by this subsection, n o deficiency in the Oklahoma Education Lottery Tr ust Fund shall be replenished by reducing any nonlottery fun ds, including specifically but without limitation, the General Revenue Fund, the Constitutional Reserve Fund or the Education Reform Revolving Fund of the State Department of Education. No progra m or project started specifically from lottery proceeds shal l be continued from the General Revenue Fund, the Constitutional Reserve Fund or the Education Refor m Revolving Fund of the State Department of Edu cation. Such programs must be adjusted or discon tinued according to available lottery proceeds unless the Le gislature by general law establishes eligibility requirements and appropriates specific funds theref or. No surplus in the Oklahoma Education Lotte ry Trust Fund shall be reduced or transferred to correct any nonlottery deficiencies in sums available for ge neral appropriations. The provisions o f this subsection shall not apply to bonds or other obligatio ns issued pursuant to or to the repayment of bo nds or other obligations issued pursuant to the Oklahoma Higher Education Promise of Excellence Act of 2005. I. H. There is hereby created in the S tate Treasury a revolving fund to be designated the "Oklahoma Education Lottery Revolving Fund". The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received b y the Commission. The Commission shall make payments of net proceeds from ENGR. H. B. NO. 4388 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the fund to the Oklahoma Edu cation Lottery Trust Fund on or before the fifteenth day of each calendar quarter as provided in subsection C of this section. All monies accruing to th e credit of the Oklahoma Education Lott ery Revolving Fund are hereby appropriated and may be budgeted a nd expended for the payment of net proceeds, prizes, commissions to retailers, administrative expenses and all other expenses arising out of the operatio n of the education lottery, subject to the limitations provided in the Oklahoma Education Lottery Act. Expenditures from the fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. The monies in the fund shall be invested by the State Treasurer in accordance with state investment practices. All earnings attributable to such investments shall likewise accrue to th e credit of the fund. J. I. When appropriations from the Oklahoma Education Lottery Trust Fund are made t o common education pursuant to the provis ions of subparagraph a of paragraph 1 of subsecti on E D of this section, the appropriations shall be made available on a monthly basis. In addition to the provisions of subsections C and D of this section, the following process shall be used to ensure tha t the appropriations are made available to common education in a timely manner: ENGR. H. B. NO. 4388 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Beginning in July of the fiscal year in which appropriations are made to common education from the Oklahoma Education Lottery Trust Fund, the Commissio n, on or before the n inth day of each month, shall transfer to the Sta te Treasurer, for credit to the Oklahoma Education Lottery Trust Fund, the amount of net proceed s accruing during the preceding month equal to the amount of total monthly collections due to common education as required by subparagraph a of paragraph 1 of subsection E D of this section; 2. The Director of the Offic e of Management and Enterprise Services shall allocat e the transfers provided for in paragraph 1 of this subsection to the State Department of Edu cation on a monthly basis, not to exceed one -twelfth (1/12) of the annual apportionment for the fiscal year; a nd 3. The total amount of transfers to the Oklahoma Education Lottery Trust Fund of net lottery proceeds made pursuant to this subsection shall not exceed the total appropriations made to common education from the Oklahoma Education Lottery Trust Fund for the specific fiscal year. K. J. When appropriations from the Oklahoma Education Lottery Trust Fund are made to The Oklahoma State System of Highe r Education, the appropriations shall be made ava ilable to the System on a monthly basis. In addition to the provisions of subsections C and D of this section, t he following process shall be used to ensure ENGR. H. B. NO. 4388 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 that the appropriations are made available to The Oklahoma State System of Higher Education in a t imely manner: 1. Beginning in July of the fiscal year in wh ich appropriations are made to The Oklahoma State Sys tem of Higher Education from the Oklahoma Education Lottery Trust Fund, the Commission, on or before the ninth day of each month, shall transfe r to the State Treasurer, for credit to the Oklahoma Educati on Lottery Trust Fund, the amount of net proceeds accruing during the preceding month equal to the amount of total monthly collections due to the O klahoma State Regents for Higher Education as req uired by subparagraph b of paragraph 2 1 of subsection E D of this section; 2. The Director of the Office of Man agement and Enterprise Services shall allocate t he transfers provided for in paragraph 1 of this subsection to the Oklahoma State Regents for H igher Education on a monthly basis, not to exceed one -twelfth (1/12) of the annual apportionment for the fiscal y ear; and 3. The total amount of transfers to th e Oklahoma Education Lottery Trust Fund of net lottery proceeds made pursuant to this subsection shall not exceed the total appropriations made to The Oklahoma State System for Hig her Education from the Oklah oma Education Lottery Trust Fund for the specifi c fiscal year. SECTION 5. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 6-190.2 of Title 70, unless there is created a duplication in numbering, reads as follows: ENGR. H. B. NO. 4388 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. There is hereby created in the State Treasury a revolving fund for the State Department of Education to be designated the "Teacher Empowerment Revolving Fund". The revolving fund shall be a continuing fund, without legislative appropriati on, not subject to fiscal year limitations, and shall be under the control and management of the State Department of Education. Expenditures from the Teacher Empowerment Revolving Fund shall be budgeted and expended as provided for in subsection B of this section. B. The State Department of Educ ation shall utilize the funds for the program outlined in Section 6-190 of Title 70 of the Oklahoma Statutes. Funding shall go toward advanced, lead, and master certificate holders on a first-come, first-served basis until the cash is exhausted for the school year. Funds from the Teacher Empowerment Revolving Fund shall serve as a state match to local dollars each school district contributes to their advanced, lead, and master teachers as provided in Section 713 of Title 3A of the Oklahoma Statutes. SECTION 6. This act shall become effect ive November 1, 2022. SECTION 7. The provisions of this act shall be contingent upon the enactment of the provisions of House Bill No. 4387 of the 2nd Session of the 58th Oklahoma Legislature and shall not become operative as law otherwise. ENGR. H. B. NO. 4388 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Passed the House of Representatives the 22nd day of March, 2022. Presiding Officer of the House of Representatives Passed the Senate the ___ day of __________, 2022. Presiding Officer of the Senate