Req. No. 3481 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 STATE OF OKLAHOMA 2nd Session of the 58th Legislature (2022) COMMITTEE SUBSTITUTE FOR SENATE BILL 1402 By: Dahm COMMITTEE SUBSTITUTE An Act relating to charter schools; creating th e Professional Teacher Charter Act; provi ding short title; providing purpose; defining terms; establishing eligibility to sponsor a professional teacher charter school; requiring filing of certain bond or letter of credit; allowing conversion of certain charter school; providing applicatio n process; allowing the State Board of Educati on to disapprove applications for certain reasons; requiring the Board to approve certain applications within certain time period; creating certain cause of action; allowing award of certain costs and fees; providing for governance of professional teacher charter school; providing for term of charter contract; providing eligibility to assume the terms of a charter contract; establishing powers and duties of a professional teacher chart er school; prohibiting a professional teacher charter school from being subject to certain provisions; establishing boundaries of a professional teacher charter school; providing for student enrollment; creati ng the Professional Teacher Charter Student Revolving Fund; specifying source of fund; providing for expenditures; providing purpose of fund; providing for distribution of funds to certain schools; providing for retention or distribution of certain property; providing for cal culation of weighted average daily member ship and State Aid for a professional teacher charter school; prohibiting certain school from receiving certain funds; directing the State Board of Education to determine certain policy; requiring use of certain sys tem to report transactions; providing for promulgation of Req. No. 3481 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 rules; amending 70 O.S. 2021, Section 3-138, which relates to unlawful reprisal against certain employees; adding reference to certain charter school; amending 70 O.S. 2021, Section 3 -144, which relates to the Charter Schools Incentive Fun d; allowing use of fund for certain purpose; providing for codification; providing an effective date; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new secti on of law to be codified in the Oklahoma Statutes as Section 3-146 of Title 70, unless there is created a duplication in numb ering, reads as follows: A. This act shall be known and may be cited as the “Professional Teacher Charter Act ”. B. The purpose of the Professional Teacher Charter Act is to provide for the establishment of profes sional teacher charter schools to: 1. Improve student learning; 2. Increase learning opportunities for students; 3. Allow experienced public school teachers to establish themselves as independent education practitioners; 4. Encourage the use of differe nt and innovative teaching methods; 5. Provide additional academic choices for parents and students; Req. No. 3481 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 6. Increase parental knowledge and control of student curriculum; 7. Reduce administrative interference in classroom teaching; and 8. Increase transpar ency of student performance outcomes. C. For the purposes of this act: 1. “Certified teacher” means a teacher who has been issued a certificate by the State Board of Education in accordance with the Oklahoma Teacher Preparation Act and rules of the Board ; 2. “Charter school” means a public school establi shed by contract pursuant to this 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; and 3. “Parent” means the natural or adoptive parent or legal guardian of a minor child. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes a s Section 3-146.1 of Title 70 , unless there is created a duplication in numbering, reads as follows: A. A certified teacher who has five (5) years of teaching experience or a consortium of certified teachers who each have five (5) years of teaching experi ence may sponsor a professional teacher charter school pursuant to the provisions of t his act. Req. No. 3481 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 B. A certified teacher or consortium of certified teachers shall file with the State Board of Education a surety bond or letter of credit in an amount equal to Two Thousand Dollars ($2,000.00) per student expected to enroll in the professional teacher charter school. The surety bond or letter of credit amount may be adjusted based on actual enrollment of students in the professional teacher charter school as of August 1. In no case shall the amount of surety bond or letter of credit be less than Twenty -five Thousand Dollars ($25,000.00). C. A charter school established pursuant to the Oklahoma Charter Schools Act may convert to a p rofessional teacher charter school subject to the provisions of this act. SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-146.2 of Title 70, unless there is created a duplication in numbering, reads as follows: A. A certified teacher or consortium of certified teachers seeking to establish a professional teacher c harter school pursuant to this act shall submit a written application to the State Board of Education. The Board shall make the application available on its website, and applications may be submitted online. The Board shall not charge an application fee. The application shall include: 1. The name of the applicant(s) accompanied by copies of certificates to teach issued by the B oard and proof that the Req. No. 3481 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 applicant(s) has five (5) years of teaching experience in this state; 2. Proof of filing the surety bond or letter of credit required by Section 2 of this act; and 3. The designated point of cont act between the professional teacher charter school and State Board of Education. B. 1. The State Board of Education may disapprove an application that does not meet one or more of the requirements set forth in this section or Section 4 of this act. 2. The State Board of Education shall approve an application that meets the requirements of this section and Section 4 of this act within thirty (30) days of receipt of the application and grant the applicant a charter contract . If an application that meet s the requirements of this section and Section 4 of this act is not approved within thirty (30) days of receipt, the applicant(s) shall have a cause of action in district court. The court may award costs and reasonable attorney fees to the prevailing party. C. A professional teacher charter school established pursuant to the provisions of this act may be organized as a sole proprietorship or any other business entity authorized to do business in this state. D. A professional teacher charter school shall be govern ed by the certified teacher or consortium of certified teachers who applied for the school pursuant to this section and shall have Req. No. 3481 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 exclusive control over curriculum selection, development, and delivery. Provided, however, a professional teacher charter school may have a non-teacher advisory board. E. A professional teacher charter school contract shall be a continuing contract. F. If a certified teacher or consortium o f certified teachers granted a professional teacher char ter school contract pursuant to the provisions of this section is no longer willing or able to operate the charter school , another certified teacher or consortium of teachers who meets the requirements of subsection A of Section 2 of this act may apply to the State Board of Education to assume the terms of the charter contract. The State Board of Education shall approve the transfer of the charter contract if the applicati on meets the requirements of this section and Section 4 of this act. SECTION 4. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-146.3 of Title 70, unless there is created a duplication in numb ering, reads as follows: A. A professional teacher charter school established p ursuant to this act: 1. May provide a comprehensive program of instruction for prekindergarten, kindergarten, or any grade between grades one and twelve; 2. Shall ensure that each enrolled student takes a nati onally norm-referenced test approved by the State Board of Education once Req. No. 3481 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 each school year. Individual student test results shall be delivered to the student’s parents along with aggregated charter school results. Aggregate test data shall be remitted to the State Department of Education and pu blished on the professional teacher charter school’s website; 3. Shall post on its website a statement describing the extent to which the charter school’s curriculum complies with or departs from the subject matter standards adopted by the State Board of Education pursuant to Section 11-103.6 of Title 70 of the Oklahoma Statutes; 4. Shall post on its websi te information regarding curricu lum and instructional materials to be used by charter school students and teachers; 5. Shall adopt bylaws that: a. ensure compliance with all federal regulations and state and local rules and statutes relating to health, safety, civil rights, and insuranc e, and b. require that the charter school be as equally free and open to all students as traditional public schools; 6. Shall have independent control over curriculum and personnel decisions; 7. May enter into contracts, sue, and be sued; and 8. Shall not levy taxes or issue bonds. Req. No. 3481 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 B. A professional teacher charter school establi shed pursuant to this act shall not be subject to any pr ovision of the Oklahoma Charter Schools Act except as provided for in this act. A professional teacher charter school sh all not: 1. Be required to participate in the testing required by the Oklahoma School Testing Program Act; however, the charter school may choose to participate; 2. Be required to participate in the accountability system established pursuant to Section 1 210.545 of Title 70 of the Oklahoma Statutes; however, the charter school may choose to participate; 3. Be required to employ persons who have a valid certificate issued by and in accordance with the rules of the State Bo ard of Education; 4. Be required to comply with the minimum salary and benefits set forth in Section 18 -114.14 of Title 70 of the Oklahoma Statutes; 5. Be required to comply with employer -employee bargaining provisions set forth in Sections 5 09.1 through 509.10 of Title 70 of the Oklahoma Statutes; and 6. Be required to comply with provisions regarding the length of the school day as provided for in Sect ion 1-111 of Title 70 of the Oklahoma Statutes or the length of the schoo l year as provided for in Section 1-109 of Title 70 of t he Oklahoma Statutes. C. 1. A professional teacher charter school established pursuant to this act shall be a statewide charter school , and the Req. No. 3481 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 geographic boundaries of each professional teacher charter school shall be the borders of the state. 2. Any student between the ages of five (5) on or before September 1 and twenty-one (21) years on or before September 1 shall be eligible to submit an enrollment application to a professional teacher charter school. 3. A professional teacher charter school shall not limit enrollment or discriminate based on race, sex, or religion. 4. The State Board of Education shall not restrict the number of students a professional teacher charter school may enroll. 5. A professional teacher charter school may establish enrollment criteria based on objective academic standards and educational emphasis. 6. By July 1 each year, a professional teacher charter school shall determine and post on its website the capacity for each grade level offered by the school. If capacity is insufficient to enroll all eligible students, the school shall select students through a lottery selection process. D. A professional teacher charter school may provide student transportation. SECTION 5. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-146.4 of Title 70, unless there is created a duplication in numb ering, reads as follows: Req. No. 3481 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 A. There is hereby created in the State Treasury a revol ving fund for the State Department of Education to be designated the “Professional Teacher Charter Student Revolving 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 the surety bond or irrevoca ble letter of credit required by subsection B of Section 2 of this act. All monies accruing to the credit of the fund are hereby appropriated and may be budgeted and expended by the State Department of Education for the purpose set forth in subsection B o f this section. 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 Enterp rise Services for approval and payment. B. 1. In the event that a professional teacher charter school established pursuant to the Professional Teacher Charter Act created in Section 1 of this ac t permanently ceases operations prior to the end of a school year, the surety bond or irrevocable letter of credit required by subsection B of Section 2 of this act shall be paid to the Professional Teacher Charter Student Revolving Fund created in subsection A of this section. The State Department of Education shall distribute the funds on a pro-rata basis to the school districts or public charter schools established pursuant to Req. No. 3481 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 the Oklahoma Charter Schools Act in which students who had been attending a professional te acher charter school enroll. 2. a. If a professional teacher charter school is established as a non-profit sole proprietorship or other business entity pursuant to subsection C of Section 3 of this act and permanently ceases operations, any real or personal property purchased by the charter school with public funds shall be retained by the State Board of Educati on for distribution to the school districts or public charter schools established pursuant to the Oklahoma Charter Schools Act in which students who had been attending a professional teacher charter school enroll . Priority shall be given to public charter schools in which students who had been attending a professional teach er charter school enroll. b. If a professional teacher charter school is established as a for -profit sole proprietorship or other business entity pursuant to subsection C of Section 3 of this act and permanently ceases operations, any real or personal property purchased by the charter school with public funds shall be retained by the sole proprietorship or other business entity. Req. No. 3481 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 SECTION 6. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-146.5 of Title 70, unless there is created a duplication i n numbering, reads as follows: A. For the purpose of calculating weighted average daily membership pursuant to Section 18-201.1 of Title 70 of the Oklahoma Statutes and State Aid pursuant to Section 18 -200.1 of Title 70 of the Oklahoma Statutes, the weighted average daily membershi p for the first year of operation of a professional teacher charter school established pursuant to the prov isions of this act shall be determined by multiplying the actual enrollme nt of students as of August 1 by 1.333. The professional teacher charter school shall receive revenue 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 professional teacher charter school shall be adjusted using the first quarter weighted average daily membership for the professional teacher charter school calculated pursuant to Section 18-201.1 of Title 70 of the Oklahoma Statutes . B. A professional teacher charter school shall not be elig ible to receive state-dedicated, local, or county revenue; provided, a professional teacher charter school may be eligible to receive any other aid, grants, or revenues allowed to other schools. A professional teacher charter school shall be considered a local education agency for purposes of funding. Req. No. 3481 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 C. The State Board of Education shall determine the policy and procedure for making payments to a professional teacher charter school. D. A professional teacher charter school shall use the Oklahoma Cost Accounting System to report financial transactions to the State Board of Education. E. Any unexpended funds received by a professional teacher charter school may be reserved and used for future purposes. SECTION 7. NEW LAW A new sect ion of law to be codified in the Oklahoma Statutes as S ection 3-146.6 of Title 70, unless there is created a du plication in numbering, reads as follows: The State Board of Ed ucation shall promulgate rules to implement the provisions of this act and to expedite the creation and maintenance of professional teacher charter schools . SECTION 8. AMENDATORY 70 O.S. 2021, Sec tion 3-138, is amended to read as follows: Section 3-138. A board of education of a school district or an employee of the district who has control over personnel actions shall not take unlawful reprisal action against an employee o f the school district for the reason that the employee is directly or indirectly involved in an application to establish a charter school pursuant to the Oklahoma Charter Schools Act or the Professional Teacher Charter Act created in Section 1 of this act . As used in this section, “unlawful reprisal” means an action that is taken by a Req. No. 3481 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 board of education or a school distr ict employee as a direct result of a lawful application to establish a charter school pursuant to the Oklahoma Charter Schools Act or the Professional Teacher Charter Act created in Section 1 of this act and that is adverse to an employee or an education program. SECTION 9. AMENDATORY 70 O.S. 2021, Section 3 -144, is amended to read as follows: Section 3-144. A. There is hereby created in the State Treasury a fund to be designated the “Charter Schools Incentive Fund”. The fund shall be a continuing fund , not subject to fiscal year limitations, and shall consist of all monies appropriated by the Legislature, gifts, grants, devises , and donations from any public or private source. The State Dep artment of Education shall administer the fund for the purpose of providing financial support to charter school applicants and charter schools established pursuant to the Oklahoma Charter Schools Act or the Professional Teacher Charter Act created pursuant to Section 1 of this act for start-up costs and costs associa ted with renovating or remodeling existing buildings and structures for use by a charter school. The State Department of Education is aut horized to allocate funds on a per-pupil basis for purpo ses of providing matching funds for the federal State Charter School Facilities Incentive Grants Program created pursuant to the No Child Left Behind Act, 20 USCA, Section 7221d. Req. No. 3481 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 B. The State Board o f Education shall adopt rules to implement the provisions of this section, including application and notification requirements. SECTION 10. This act shall become effective July 1, 2022. SECTION 11. It being immediately neces sary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason w hereof this act shall take effect and be in full force from and after its passage and approval. 58-2-3481 EB 2/22/2022 12:31:28 PM