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ENGROSSED HOUSE AMENDME NT
TO
ENGROSSED SENATE BILL NO . 1848 By: Montgomery of the Senate
and
Hilbert of the House
[ medical marijuana tax - apportionment - Drug and
Alcohol Abuse Revolving Fund - codification -
effective date -
emergency ]
AUTHOR: Add the following House Coauthor: Hardin (David)
AMENDMENT NO. 1. Strike the stricken title, enacting clause, and
entire bill and insert:
"An Act relating to revenue and taxation; amending 63
O.S. 2021, Sections 426 and 427.3, which relate to
the Oklahoma Medical Marijuana Authority; modifying
apportionment of excise tax proceeds; directing
Authority to establish certain programs and
providing funding; creating County Sheriff Public
Safety Grant Revolving Fund; providing for use of
apportioned funds by Authority; prescribing
procedures for expenditures; amending 68 O.S. 2021,
Section 1353, which rel ates to sales tax revenue;
directing apportionment of certain sales tax
revenues; setting maximum appo rtionment amount;
subjecting amounts to certain final estimate;
requiring surplus amounts be remitted to General
Revenue Fund; amending 70 O.S. 2021, Section 3-104,
which relates to the State Board of Education;
updating statutory citations ; establishing deadline
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for Department of Education to provide certain
information to the Oklahoma Tax Commission ;
providing for codification; providing an effective
date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O. S. 2021, Section 426 , is
amended to read as follo ws:
Section 426. A. The tax on retail medical marijuana sales will
be established at seven percent (7%) of the gross amount recei ved by
the seller.
B. This tax will be collected at the point of sale. Exc ept as
provided for in subsection D C of this section, tax proceeds will be
applied primarily to finance the regulatory office shall be
appropriated in amounts as authorized by the Oklahoma Legislature .
C. Except as provided for in subsection D, if For the fiscal
year beginning July 1, 2022, and each su bsequent fiscal year,
proceeds from the levy authorized by subsection A of this section
exceed the budgeted amount for running the regulatory office, any
surplus shall be apportioned with seventy-five percent (75%) going
to the General Revenue Fund and may only be expended for common
education including as follows:
1. Thirty-five and seven-tenths percent (35.7%) of the total
proceeds of the levy to the Oklahoma Medica l Marijuana Authority
Revolving Fund for operations, but in no event shall the total
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amount apportioned in any fiscal year pursuant to this paragraph
exceed Twenty-three Million Six Hundred Thousand Dollars
($23,600,000.00);
2. Forty-four and six hundred twenty-five thousandths percent
(44.625%) of the total proceeds of the levy to the State P ublic
Common School Building Equalization Fund for the purpose of funding
redbud school grants pursuant to Section 3 -104 of Title 70 of the
Oklahoma Statutes. Twenty-five percent (25%) shall be apportioned ,
but in no event shall the total amount apportion ed in any fiscal
year pursuant to this paragraph exceed the amount of redbud school
grant funds awarded pursuant to subsection B of Section 3-104 of
Title 70 of the Oklahoma Statutes;
3. Fourteen and eight hundred seventy-five thousandths percent
(14.875%) of the total proceeds of the levy to the Oklahoma State
Department of Mental Health and Substance Abuse Services and
earmarked for drug and alcohol rehabilitation ., but in no event
shall the total amount apportioned in any fiscal year pursuant to
this paragraph exceed Ten Million Dollars ($10,000,000.00);
4. Four and eight-tenths percent (4.8%) of the total proceeds
of the levy to the County Sheriff Public Safety Grant Revolving Fund
created pursuant to Section 3 of this act , but in no event shall the
total amount apportioned in any fiscal year pursuant to this
paragraph exceed Three Million Two Hundred Thousand Dollars
($3,200,000.00); and
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D. For fiscal year 2022 , proceeds from the levy authorized by
subsection A of this section shall be apportioned as follows:
1. The first Sixty-five Million Dollars ($65,000,000.00) shall
be apportioned as follows:
a. fifty-nine and twenty-three hundredths percent
(59.23%) to the State Public Common School Building
Equalization Fund,
b. thirty-four and sixty-two hundredths percent (34.62%)
to the Oklahoma Medical Marijuana Authority, a
division within the Oklahoma State Department of
Health, and
c. six and fifteen hundredths perc ent (6.15%) to the
Oklahoma State Departm ent of Health and earmarked for
drug and alcohol rehabilitation; and
2. 5. Any surplus collections available pursuant to the
provisions of this subsection shall be apportioned to the Genera l
Revenue Fund of the St ate Treasury.
SECTION 2. AMENDATORY 63 O.S. 2021, Se ction 427.3, is
amended to read as follows:
Section 427.3 A. There is hereby created the Oklahoma Medical
Marijuana Authority within the State Departmen t of Health which
shall address issues related to t he medical marijuana program in
Oklahoma including, but not limited to, the issuance of patient
licenses and medical marijuana business licenses, and the
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dispensing, cultivating, processing, testing, trans porting, storage,
research, and the use of and sale of medical marijuana pursuant to
the Oklahoma Medical Marijuana and Patient Protection Act.
B. The Department sh all provide support staff to perform
designated duties of the Authority. The Department sh all also
provide office space for meetings of the A uthority.
C. The Department shall implement the pr ovisions of the
Oklahoma Medical Marijuana and Patient Protecti on Act consistently
with the voter-approved State Question No. 788, Initiative Petition
No. 412, subject to the provisions of the Oklahoma Med ical Marijuana
and Patient Protection Act.
D. The Department shall exercise its respective powers and
perform its respective duties and functions as specified in the
Oklahoma Medical Marijuana and Patient Protection Act and this title
including, but not l imited to, the following:
1. Determine steps the s tate shall take, whether administrative
or legislative in natur e, to ensure that research on marijuana and
marijuana products is being conducted for publi c purposes, including
the advancement of:
a. public health policy and public safety policy,
b. agronomic and horticultural best practices, and
c. medical and pharmacopoeia best practices;
2. Contract with third-party vendors and other governmental
entities in order to carry out the respective duties and f unctions
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as specified in the Oklahoma Medical Marij uana and Patient
Protection Act;
3. Upon complaint or upon its own motion and upon a comp leted
investigation, levy fines as prescribed in applicable laws , rules
and regulations and suspend, revoke or not renew licenses pursuant
to applicable laws, rules a nd regulations;
4. Issue subpoenas for the appearance or production of persons,
records and things in connection with disciplinary or contested
cases considered by the Department;
5. Apply for injunctive or declaratory relief to enforce the
provisions of applicable laws, rules and regulations;
6. Inspect and examine all licensed premises of medical
marijuana businesses, research facilities, education fac ilities and
waste disposal facilities in which medi cal marijuana is cultivated,
manufactured, sold, st ored, transported, tested, distributed or
disposed of;
7. Upon action by the federal gove rnment by which the
production, sale and use of marijuana in Okl ahoma does not violate
federal law, work with the O klahoma State Banking Department and the
State Treasurer to develop good practices and standards for banking
and finance for medical marijuan a businesses;
8. Establish internal control procedures for lice nses including
accounting procedures, reporting pro cedures and personnel policies;
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9. Establish a fee schedule and collect fees for performing
background checks as the Commissioner deems appr opriate. The fees
charged pursuant to this paragraph shall not exceed the actual cost
incurred for each background check;
10. Establish a fee schedule and collect fees for material
changes requested by the licensee; and
11. Establish regulations, which require a medical marijuana
business to submit information to t he Oklahoma Medical Marijuana
Authority, deemed rea sonably necessary to assist the Authority in
the prevention of diversion of medical marijuana by a licensed
medical marijuana business. Such information required by the
Authority may include, but shall no t be limited to:
a. the square footage of the licen sed premises,
b. a diagram of the licensed premises ,
c. the number and type of lights at the licensed medical
marijuana commercial grower bus iness,
d. the number, type and production capacity of equipment
located at the medical marijuana processing facilit y,
e. the names, addresses and telephone numbers of
employees or agents of a medical marijuana business,
f. employment manuals and standard o perating procedures
for the medical marijuana business, and
g. any other information as the Authority reasonably
deems necessary; and
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12. Establish programs and prov ide funding, from the revenues
apportioned pursuant to paragraph 4 of subsection C of Section 426
of this title, to support county sheriffs to enforce the
requirements of state law with respect to the comm ercial growth of
medical marijuana or other related business activity for which a
license is required pursuant to the provisions of law governing the
production, cultivation, transportation, distribution, sale, or
other actions related to medical marijuana .
SECTION 3. NEW LAW A ne w section of law to be codified
in the Oklahoma Statutes as Section 427.3A of Title 63, unless there
is created a duplication in numbering, reads as follo ws:
There is hereby crea ted in the State Treasury a revolving fund
for the Oklahoma Medical Marijuana Authority to be designated the
"County Sheriff Public Safe ty Grant Revolving Fund". The fund shall
be a continuing fund, not subject to fiscal year limit ations, and
shall consist of all monies received by the Oklahoma Medical
Marijuana Authority from the apportionment of the excise tax on
medical marijuana as pro vided by Section 426 of Title 63 of the
Oklahoma Statutes. All monies accruing to the credit o f said fund
are hereby appropriated and may be budg eted and expended by the
Oklahoma Medical Marijuana Authority for the purpose specified by
paragraph 12 of subs ection D of Section 427.3 of Title 63 of the
Oklahoma Statutes. Expenditures from said fund s hall be made upon
warrants issued by the State Trea surer against claims filed as
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prescribed by law wit h the Director of the Office of Management and
Enterprise Services for approval and payment.
SECTION 4. AMENDATORY 6 8 O.S. 2021, Section 1353, is
amended to read as follows:
Section 1353. A. It is hereby declared to be the purpose of
the Oklahoma Sales Tax Code to provide funds for the financing of
the program provided for by the Oklahoma Social Security Act and to
provide revenues for the support of the functions of the state
government of Oklahoma, and for this purpose it is here by expressly
provided that, revenues derived pursuant to the provisions of the
Oklahoma Sales Tax Code, subject to the apportionment require ments
for the Oklahoma Tax Commission and Office of Management an d
Enterprise Services Joint Computer Enhancement Fu nd provided by
Section 265 of this title, shall be apportioned as follows:
1. Except as provided in subsections C and D of this section,
the following amounts shall be paid to t he State Treasurer to be
placed to the credit of the General Revenue Fund to b e paid out
pursuant to direct appropriation by the Legislature:
Fiscal Year Amount
FY 2003 and FY 2004 86.04%
FY 2005 85.83%
FY 2006 85.54%
FY 2007 85.04%
FY 2008 through FY 2022 83.61%
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FY 2023 through FY 2027 83.36%
FY 2028 and each fiscal year thereafter 83.61%;
2. The following amounts shall be paid to the State Treasurer
to be placed to the credit of the Education Reform Revolving Fund of
the State Department of Education:
a. for FY 2003, FY 2004 and F Y 2005, ten and forty-two
one-hundredths percent (1 0.42%),
b. for FY 2006 through FY 2020, ten and forty -six one-
hundredths percent (10.46%),
c. for FY 2021:
(1) for the month beginning July 1, 2020, through the
month ending August 31, 2020, ten and forty -six
one-hundredths percent (10.46%), and
(2) for the month beginning September 1, 2020,
through the month ending June 30, 2021, eleven
and ninety-six one-hundredths percent (11.96%),
d. for FY 2022 and each fiscal year thereafter , ten and
forty-six one-hundredths percent (10.46%);
3. The following amounts shall be paid to the State Treasurer
to be placed to the credit of the Teachers' Retirement System
Dedicated Revenue Revolving Fund:
Fiscal Year Amount
FY 2003 and FY 2004 3.54%
FY 2005 3.75%
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FY 2006 4.0%
FY 2007 4.5%
FY 2008 through FY 2020 5.0%
FY 2021:
a. for the month beginning July
1, 2020, through the month
ending August 31, 2020 5.0%
b. for the month beginning
September 1, 2020, throug h
the month ending June 30,
2021 3.5%
FY 2022 5.0%
FY 2023 through FY 2027 5.25%
FY 2028 and each fiscal year therea fter 5.0%;
4. a. except as otherwise provided in subparagraph b of this
paragraph, for the fiscal year beginning July 1, 2015,
and for each fiscal year thereafter, eighty-seven one-
hundredths percent (0.87 %) shall be paid to the State
Treasurer to be furth er apportioned as follows:
(1) thirty-six percent (36%) shall be placed to the
credit of the Oklahoma Tourism Promotion
Revolving Fund, but in no event shall such
apportionment exceed Five Million Dollars
($5,000,000.00) in any fiscal year, and
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(2) sixty-four percent (64%) shall be placed to the
credit of the Oklahoma Tourism Capital
Improvement Revolving Fund, but in no event shall
such apportionment exceed Nine Million Dollars
($9,000,000.00) in any fisca l year, and
b. any amounts which exceed the limitat ions of
subparagraph a of this paragraph shall be placed to
the credit of the General Revenue Fund; and
5. For the fiscal year beginning Ju ly 1, 2015, and for each
fiscal year thereafter, six one-hundredths percent (0.06%) shall be
placed to the credit of the Oklahoma Historical Society Capital
Improvement and Operations Revolving Fund, but in no event shall
such apportionment exceed the tota l amount apportioned pursuant to
this paragraph for the fiscal ye ar ending on June 30, 2015. Any
amounts which exceed the limitations of this paragraph shall be
placed to the credit of the General Revenue Fund.
B. Provided, for the fiscal year beginning July 1, 2007, and
every fiscal year th ereafter, an amount of reve nue shall be
apportioned to each municipality or co unty which levies a sales tax
subject to the provisions of Section 1357.10 of this title and
subsection F of Section 2701 of this title equa l to the amount of
sales tax revenue of such municipality or coun ty exempted by the
provisions of Section 1357.10 of this title and subsection F of
Section 2701 of this title. The Oklahoma Tax Commission shall
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promulgate and adopt rules necessary to imple ment the provisions of
this subsection.
C. From the monies that would otherwise be apportioned to the
General Revenue Fund pursuant to subsection A of this section, there
shall be apportioned the following amounts:
1. For the month ending August 31, 2019 :
a. Nine Million Six Hundred Thousand Dollars
($9,600,000.00) to the credit of the State Highway
Construction and Maintenance Fund created in Section
1501 of Title 69 of the Oklahoma Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolv ing Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
2. For the month ending September 30, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintena nce Fund
created in Section 1501 of Ti tle 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
3. For the month ending October 31, 2019:
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a. Twenty Million Dollars ($20,000,00 0.00) to the credit
of the State Highway Constructi on and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the cred it of
the Oklahoma Railroad Maintenanc e Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
4. For the month ending November 30, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and M aintenance Fund
created in Section 150 1 of Title 69 of the Oklaho ma
Statutes, and
b. Two Million Dollars ($2,000,000 .00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes; and
5. For the month ending December 31, 2019 :
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroa d Maintenance Revolving Fun d
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created in Section 309 of Title 66 of the Oklahom a
Statutes.
D. For fiscal year 2023, and each subsequent fiscal year,
before any other apportionment otherwise required by this section is
made to the General Revenue Fund, ther e shall be apportioned to the
State Public Common School Building Equalization Fund an amount, if
any, as required pursuant to Section 3 -104 of Title 70 of the
Oklahoma Statutes amounts, not to exceed the state sales t ax
generated by medical marijuana sale s in the preceding fiscal y ear as
reported determined by the Oklahoma Tax Commission , as follows:
1. Thirty-five and seven-tenths percent (35.7%) of the total
proceeds of the levy to the Oklahoma Medical Marijuana Authority
Revolving Fund for operations, but in no event shall the total
amount apportioned in any fiscal year pursuant to this pa ragraph
exceed Thirteen Million Four Hundred Thousand Dollars
($13,400,000.00);
2. Forty-four and six hundred twenty -five thousandths perce nt
(44.625%) of the total proceeds of the levy to the State Publi c
Common School Building Equalization Fund for the purpose of funding
redbud school grants pursuant to Section 3 -104 of Title 70 of the
Oklahoma Statutes, but in no event shall the total amou nt
apportioned in any fiscal year pursuant to this paragraph exce ed the
amount of redbud school grant funds awarded pursuant to subsection B
of Section 3-104 of Title 70 of the Oklahoma Statutes;
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3. Fourteen and eight hundred seventy -five thousandths perc ent
(14.875%) of the total proceeds of the levy to the Department of
Mental Health and Substance Abuse Services and earmarked for drug
and alcohol rehabilitation, but in no event shall the total amount
apportioned in any fiscal year pursuant to this paragr aph exceed
Five Million Five Hundred Thousand Dollars ($5,500,000 .00);
4. Four and eight-tenths percent (4.8%) of t he total proceeds
of the levy to the County Sheriff Public Safety Grant Revolving Fund
created pursuant to Section 3 of this act , but in no event shall th e
total amount apportioned in any fiscal year pursu ant to this
paragraph exceed One Million Eight Hund red Thousand Dollars
($1,800,000.00);
5. The dollar amounts otherwise prescribed by para graphs 1
through 4 of this subsection sh all be subject to an estimate of the
state sales tax generated by medical mariju ana as determined by the
Oklahoma Tax Commiss ion monthly for each fiscal year; and
6. Any surplus amounts a vailable pursuant to the provisions of
this subsection shall be remitted to the General Revenue Fund.
SECTION 5. AMENDATORY 70 O.S. 2021, Section 3 -104, is
amended to read as fol lows:
Section 3-104. A. The supervision of t he public school system
of Oklahoma shall be vested in the State Board of Education and,
subject to limitations o therwise provided by law, the St ate Board of
Education shall:
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1. Adopt policies and make rules f or the operation of the
public school system of the state;
2. Appoint, prescribe the duties and fix the compensation of a
secretary, an attorney and all other personnel necessary for the
proper performance of the functions of the State Board of Education.
The secretary shall not be a member of the Board;
3. Submit to the Governor a departmental bud get based upon
major functions of the Department as prepared b y the State
Superintendent of Pu blic Instruction and supported by detailed data
on needs and proposed operations as partially determined by the
budgetary needs of local school districts filed wi th the State Board
of Education for the ensuing fiscal year. Appropriations therefor
shall be made in lump-sum form for each major item in the budget as
follows:
a. State Aid to schools,
b. the supervision of all other functions of general and
special education including general control, free
textbooks, school lunch , Indian education and all
other functions of the Board and an amount sufficient
to adequately staff and administer these services, and
c. the Board shall determine the details by which the
budget and the appropriations are administered.
Annually, the Board shall make preparations to
consolidate all of the functions of the Department in
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such a way that the budget can be based on two items,
administration and aid to schools. A maximum amount
for administration shall be designated as a part of
the total appropriation;
4. On the first day of December preceding each regular session
of the Legislature, p repare and deliver to the Governor and the
Legislature a report for the year ending June 30 immed iately
preceding the regular session of the Legislature. The report shall
contain:
a. detailed statistics and other information concerning
enrollment, attendance, expenditures including State
Aid, and other pertinent data for all public schools
in this state,
b. reports from each and every division within the State
Department of Education as submi tted by the State
Superintendent of Public Instruction and any ot her
division, department, institution or other agency
under the supervision of the Board,
c. recommendations for the improvement of the public
school system of the state,
d. a statement of the receipts and expenditures of the
State Board of Education for t he past year, and
e. a statement of plans and recommendations for the
management and improvement of public schools and such
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other information relating to the e ducational
interests of the stat e as may be deemed necessary and
desirable;
5. Provide for the f ormulation and adoption of curricula,
courses of study and other instructional aids necessary for the
adequate instruction of pupils in the public schools;
6. Have authority in matters perta ining to the licensure and
certification of persons for instructi onal, supervisory and
administrative positions and services in the public schools of the
state subject to the provisions of Section 6-184 of this title, and
shall formulate rules governing th e issuance and revocation of
certificates for superintendents of schools, principals,
supervisors, librarians, clerical employees, school nurses, school
bus drivers, visiting teachers, classroom teachers and for other
personnel performing instructional, ad ministrative and supervisory
services, but not including members of boards of education and other
employees who do not work directly with pupils, and may charge a nd
collect reasonable fees for the issuance of such certificat es:
a. the State Department of E ducation shall not issue a
certificate to and shall revoke the ce rtificate of any
person who has been convicted, whether upon a verdict
or plea of guilty or upon a plea of nolo contendere,
or received a suspended sentence or any probationary
term for a crime or an attempt to commit a crime
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provided for in Section 843.5 of Title 21 of the
Oklahoma Statutes if the offense involved sexual abuse
or sexual exploitation as those terms are defined in
Section 1-1-105 of Title 10A of the Oklahoma Statutes,
Section 741, 843.1, if the offense included sexual
abuse or sexual exploitation, 865 et seq., 885, 888,
891, 1021, 1021.2, 1021.3, 1040.13a, 1087, 1088,
1111.1, 1114 or 1123 of Title 21 of the Oklahoma
Statutes or who enters this sta te and who has been
convicted, received a suspended sentence or received a
deferred judgment for a crime or attempted crime
which, if committed or attempted in this state, would
be a crime or an attempt to commit a crime provided
for in any of said laws,
b. all funds collected by the State Department of
Education for the issuance of certificate s to
instructional, supervisory and administrative
personnel in the public schools of the state shall be
deposited in the "Teachers' Certificate Fund" in the
State Treasury and may be expended by the State Board
of Education to finance the activities of th e State
Department of Education necessary to admin ister the
program, for consultative services, publication costs,
actual and necessary travel expenses as provided in
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the State Travel Reimbursement Act incurred by persons
performing research work, and othe r expenses found
necessary by the State Board of E ducation for the
improvement of the preparati on and certification of
teachers in Oklahoma. Provided, any unobligate d
balance in the Teachers' Certificate Fund in excess of
Ten Thousand Dollars ($10,000.00) on June 30 of any
fiscal year shall be transferre d to the General
Revenue Fund of the State of Oklahoma. Until July 1,
1997, the State Board of Education shall have
authority for approval of teacher education programs.
The State Board of Education shall also have authority
for the administration of tea cher residency and
professional development, subject to the provisions of
the Oklahoma Teacher Preparation Act;
7. Promulgate rules governing the classification, inspection,
supervision and accrediting of all public nursery, kindergarten,
elementary and secondary schools and on-site educational serv ices
provided by public school districts or state -accredited private
schools in partial hospitalization programs, day treatment programs,
and day hospital progr ams as defined in this act for persons between
the ages of three (3) and twenty-one (21) years of age in the state.
However, no school shall be denied accreditation s olely on the basis
of average daily attendance.
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Any school district which maintains an elementary school and
faces the necessity of relocati ng its school facilities because of
construction of a lake, either by state or federal authority, which
will inundate the school facilities, shall be entitled to receive
probationary accreditation from the State Board of Education for a
period of five (5) years after the effective date of this act an d
any school district, otherwise qualified, shall be entitled to
receive probationary accreditation from the State Board of Education
for a period of two (2) consecutive years to attain the minimum
average daily attendance. The Head Start and public nurse ries or
kindergartens operated from Community Action Program funds shal l not
be subjected to the accrediting rules of the State Board of
Education. Neither will the State Board of Education make rules
affecting the operation of the public nurseries and ki ndergartens
operated from federal funds secured through Community Actio n
Programs even though they may be operating in the public schools of
the state. However, any of the Head Start or public nurseries or
kindergartens operated under federal regulations may make
application for accrediting from the State Board of Education but
will be accredited only if application for the approval of the
programs is made. The status of no school district shall be changed
which will reduce it to a lower classification un til due notice has
been given to the proper authorities thereof and an opportunity
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given to correct the conditions which otherwise would be the cause
of such reduction.
Private and parochial schools may be accre dited and classified
in like manner as public schools or, if an accrediting association
is approved by the State Boa rd of Education, by procedures
established by the State Board of Education to accept accreditation
by such accrediting association, if appli cation is made to the State
Board of Education for such accrediting;
8. Be the legal agent of the State of Oklahoma to accept, in
its discretion, the provisions of any Act of Congress appropriating
or apportioning funds which are now, or may hereafter be, provided
for use in connection with any phas e of the system of public
education in Oklahoma. It shall prescribe su ch rules as it finds
necessary to provide for the proper distribution of such funds in
accordance with the state and federal laws;
9. Be and is specifically hereby designated as the ag ency of
this state to cooperate and deal with any officer, board or
authority of the United States Government under any law of the
United States which may require or recommend cooperation with any
state board having charge of the administration of public s chools
unless otherwise provided by law;
10. Be and is hereby designat ed as the "State Educational
Agency" referred to in Public Law 396 of the 79th Congress of the
United States, which law states that said ac t may be cited as the
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"National School Lunch A ct", and said State Board of Education is
hereby authorized and directe d to accept the terms and provisions of
said act and to enter into such agreements, not in conflict with the
Constitution of Oklahoma or th e Constitution and Statutes of the
United States, as may be necessary or appropriate to secure for the
State of Oklahoma the benefits of the school lunch program
established and referred to in said act;
11. Have authority to secure and administer the ben efits of the
National School Lunch Act, Public Law 396 of the 79th Congress of
the United States, in the State of Okla homa and is hereby authorized
to employ or appoint and fix the compensation of such additional
officers or employees and to incur such exp enses as may be necessary
for the accomplishmen t of the above purpose, administer the
distribution of any state funds appropriated by the Legislature
required as federal matching to reimburse on children's meals;
12. Accept and provide for the administra tion of any land,
money, buildings, gifts, donat ion or other things of value which may
be offered or bequeathed to the schools under the supervision or
control of said Board;
13. Have authority to require persons having administrative
control of all school districts in Oklahoma to make such regular and
special reports regarding the activities of the schools in said
districts as the Board may deem needful for the proper exercise of
its duties and functions. Such authority shall include the right of
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the State Board of Education to withhold all state fund s under its
control, to withhold official recognition, including accred iting,
until such required reports have been filed and accepted in the
office of said Board and to revoke the certificates of persons
failing or refusing to make such reports;
14. Have general supervision of the school lunch program. The
State Board of Education may sponsor workshops for personnel and
participants in the school lunch program and may develop, print and
distribute free of charge or sell any materials, books and bulletins
to be used in such school lunch programs. There is hereby created
in the State Treasury a revolving fund for the Board, to be
designated the School Lunch Workshop Revolving Fund. The fund shall
consist of all fees derived from or on behalf of any partic ipant in
any such workshop sponsored by the State Board of Education, o r from
the sale of any materials, books and bulletins, and such funds shall
be disbursed for expenses of such workshops and for develop ing,
printing and distributing of such materials, books and bulletins
relating to the school lunch program. The fund sha ll be
administered in accordance with Section 155 of Title 62 of the
Oklahoma Statutes;
15. Prescribe all forms for school district a nd county officers
to report to the State Board of Education where required. The State
Board of Education shall also pres cribe a list of appropriation
accounts by which the funds of school districts shall be budgeted,
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accounted for and expended; and it sh all be the duty of the State
Auditor and Inspector in prescribing all budgeting, accounting and
reporting forms for school funds to conform to such lists;
16. Provide for the establishment of a uniform system of pupil
and personnel accounting, records an d reports;
17. Have authority to provide for the he alth and safety of
school children and school personnel while under the jurisdiction of
school authorities;
18. Provide for the supervision of the transportation of
pupils;
19. Have authority, upon request of the local school board, to
act in behalf of the public schools of the state in the purchase of
transportation equipm ent;
20. Have authority and is hereby required to perform all duties
necessary to the adminis tration of the public school system in
Oklahoma as specified in the Oklahoma School Code; a nd, in addition
thereto, those duties not specifically mentioned herein if not
delegated by law to any other agency or official;
21. Administer the State Public Com mon School Building
Equalization Fund established by Section 32 of Article X of the
Oklahoma Constitution. Any monies as may be appropriated or
designated by the Legislature, other than ad valorem taxes, any
other funds identified by the State Department of Education, which
may include, but not be limited to, grants-in-aid from the federal
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government for building purposes, the proceeds of all property that
shall fall to the state by escheat, penalties for unlawful holding
of real estate by corporations, an d capital gains on assets of the
permanent school funds, shall be deposited in the State Pu blic
Common School Building Equalization Fund. The fund shall be used to
aid school districts and charter schools in acquiring buildings,
subject to the limitations fixed by Section 32 of Article X of the
Oklahoma Constitution. It is hereby declared that the term
"acquiring buildings" as used in Section 32 of Article X of t he
Oklahoma Constitution shall mean acquiring or improving school
sites, constructing, repairi ng, remodeling or equipping buildings,
or acquiring school furniture, fixtures, or equipmen t. It is hereby
declared that the term "school districts" as used in Section 32 of
Article X of the Oklahoma Co nstitution shall mean school districts
and eligible charter schools as defined in subsection B of this
section. The State Board of Education sh all disburse redbud school
grants annually from the State Public Common School Building
Equalization Fund to public schools and eligible charter schools
pursuant to subsection B of this sec tion. The Board shall
promulgate rules for the implementation of d isbursing redbud school
grants pursuant to this section. The State Board of Education shall
prescribe rules for making grants of aid from, and for otherwise
administering, the fund pursuan t to the provisions of this
paragraph, and may employ and fix the d uties and compensation of
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technicians, aides, clerks, stenographers, attorneys and other
personnel deemed necess ary to carry out the provisions of this
paragraph. The cost of administering the fund shall be paid from
monies appropriated to the State Board of Education for the
operation of the State Department of Education. From monies
apportioned to the fund, the State Department of Education may
reserve not more than one-half of one percent (1/2 of 1%) for
purposes of administering the fund;
22. Recognize that the Director of the Oklahoma Departme nt of
Corrections shall be the administrative authority for the sch ools
which are maintained in the state reformatories and shall appoint
the principals and teachers in such schools. Provided, that rules
of the State Board of Education for the classificat ion, inspection
and accreditation of public schools shall be applic able to such
schools; and such schools shall comply with standards set by the
State Board of Education; and
23. Have authority to administer a revolving fund which is
hereby created in the State Treasury, to be designated the
Statistical Services Revolvin g Fund. The fund shall consist of all
monies received from the various school districts of the state, the
United States Government, and other s ources for the purpose of
furnishing or financing statistical services and for any other
purpose as designated b y the Legislature. The State Board of
Education is hereby authorized to enter into agreements with school
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districts, municipalities, the United States Government, foundations
and other agencies or individuals for services, programs or research
projects. The Statistical Services Revolving Fund shall be
administered in accordance with Section 155 of Title 62 of the
Oklahoma Statutes.
B. 1. The redbud school grants shall be determined by th e
State Department of Education as follows:
a. divide the county fo ur-mill levy revenue by four to
determine the nonchargea ble county four-mill revenue
for each school district,
b. determine the amount of new re venue generated by the
five-mill building fund levy as authorized by Section
10 of Article X of the Oklahoma Con stitution for each
school district as reported in the Ok lahoma Cost
Accounting System for the preceding fiscal year,
c. add the amounts calculat ed in subparagraphs a and b of
this paragraph to determine the nonchargeable millage
for each school district,
d. add the nonchargeable millage in each district
statewide as calculated in subparagraph c of this
paragraph and divide the total by the average daily
membership in public schools statewide based on the
preceding school year's average daily membership,
according to the provisions of Section 18-107 of this
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title. This amount is the statewide nonchargeable
millage per student, known as the baseline local
funding per student,
e. all eligible charter schools shall be included in
these calculations as unique sc hool districts,
separate from the school district that m ay sponsor the
eligible charter school, and the total number of
districts shall be used to determine the statewide
average baseline local funding per student,
f. for each school district or eligible c harter school
which is below the baseline local funding per student,
the Department shall subtract the baseline local
funding per student from the average nonchargeable
millage per student of the school district or eligible
charter school to determine the nonchargeable millage
per student shortfall for each dis trict, and
g. the nonchargeable millage per student shortfall for a
school district or eligible charter school shall be
multiplied by the average daily membership of the
preceding school year of the e ligible school district
or eligible charter school. Thi s amount shall be the
redbud school grant amount for the school district or
eligible charter school.
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2. For fiscal year 2022, m onies for the redbud school grants
shall be expended from the funds apportioned pursuant to Section 2
426 of this act Title 63 of the Oklahoma Statutes . For fiscal year
2023 and each subsequent fiscal year, monies for the redbud school
grants shall be appropriated apportioned pursuant to Section 2 426
of this act, not to exceed three-fourths (3/4) of the tax collected
in the preceding fiscal year pursuant to Section 426 of Title 63 of
the Oklahoma Statutes as determined by the Oklahoma Tax Commission.
For fiscal year 2023 and each subs equent fiscal year, if such
appropriated funds are insufficient to fund the redbud school
grants, then an additional apportionment of funds shall be made from
sales tax collections as provided by subsection D of Section 3 of
this act Title 63 of the Oklaho ma Statutes and Section 1353 of Title
68 of the Oklahoma Statutes. If the apportionment of both funds
revenue sources are insufficient, the Department s hall promulgate
rules to permit a decrease to the b aseline local funding per st udent
to the highest amount allowed with the funding available. The
Department shall ensure the amounts necessary to fund the redbud
school grants are provided to the Oklahoma Tax Commission by July 1
of the applicable fiscal year .
3. As used in this section, "eligible charter school" shall
mean a charter school which is sponsored pursuant to the provisions
of the Oklahoma Charter School Act. Provided, however, "eligible
charter school" shall not include a charter school sponsored by the
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Statewide Virtual Charter School Board but shall only include those
which provide in-person or blended instruction , as provided by
Section 1-111 of this title, to not less than two-thirds (2/3) of
students as the primary means of instructional service delivery.
4. The Department shall d evelop a program to acknowledge the
redbud school grant recipients and shall include elected members of
the Oklahoma House of R epresentatives and Oklahom a State Senate who
represent the school districts and eligible charter schools.
5. The Department shall create a dedicated page on its website
listing annual redbud school grant recipients, amount awarded to
each recipient and other pertinent information about the Redbud
School Funding Act.
6. The Department shall provide the Chair of the House
Appropriations and Budget Committee and the Chair of the Se nate
Appropriations Committee no later than February 1 of each year with
an estimate of the upcoming yea r's redbud school grant allocation as
prescribed by this section.
SECTION 6. This act shall become effective July 1, 2022.
SECTION 7. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reas on whereof this act shall t ake effect and
be in full force from and after its passage and approval. "
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Passed the House of Representatives the 28th day of April, 2022.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of _______ ___, 2022.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 1848 By: Montgomery of the Senate
and
Hilbert of the House
[ medical marijuana tax - apportionment - Drug and
Alcohol Abuse Revolving Fund - codification -
effective date -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 8. AMENDATORY 63 O.S . 2021, Section 426, as
amended by Section 2, Chapter 563, O.S.L. 2021, is amended to read
as follows:
Section 426. A. The tax on retail medical marijuana sales will
be established at seven percent (7%) of the gross amount received by
the seller.
B. This tax will be collected at t he point of sale. Except as
provided for in subsection D, tax proceeds will be applied primarily
to finance the regulatory office.
C. Except as provided for in subsection D, if proceeds from the
levy authorized by subsection A of this section exceed the budgeted
amount for running the regulatory office, any surplus shall be
apportioned with seventy-five percent (75%) going to the General
Revenue Fund and may only be expended for commo n education including
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funding redbud school grants pursuant to Section 3 -104 of Title 70
of the Oklahoma Statutes. Twenty-five percent (25%) shall be
apportioned to the Oklahoma State Department of Health and earmarked
for drug and alcohol rehabilitation.
D. For fiscal year 2022 and subsequent fiscal years, proceeds
from the levy authoriz ed by subsection A of this section shall be
apportioned as follows:
1. The first Sixty-five Million Dollars ( $65,000,000.00) shall
be apportioned as follows:
a. fifty-nine and twenty-three hundredths percent
(59.23%) sixty-four percent (64%) to the State Public
Common School Building Equalization Fund,
b. thirty-four and sixty-two hundredths percent (34.62%)
thirty percent (30%) to the Oklahoma Medical Mari juana
Authority, a division within the Oklahoma State
Department of Health, and
c. six and fifteen hundredths percent (6.15%) six percent
(6%) to the Oklahoma State Department of Health and
earmarked for drug and alcohol rehabilitation Drug and
Alcohol Rehabilitation Fun d created in Section 2 of
this act; and
2. Any surplus collections shall be apportioned to the General
Revenue Fund of the State Treasury .
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SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2-312 of Title 43A, unless there
is created a duplication in numbering, reads as follow s:
There is hereby created in the State Treasury a revolving fund
for the Oklahoma Department of Mental Health and Substance Abuse
Services to be designated the “Drug and Alcohol Abuse Revolving
Fund”. The fund shall be a continuing fund, not subject to f iscal
year limitations, and shall consist of all monies recei ved by the
Oklahoma Department of Mental Health an d Substance Abuse Services
from apportionments pursua nt to Section 426 of Title 63 of the
Oklahoma Statutes. All monies accruing to the credit o f the fund
are hereby appropriated and may be budgeted and ex pended by the
Oklahoma Department of Mental Health and Substance Abuse Services
for the purpose of drug and alcohol rehabilitation and prevention .
Expenditures from the fund shall be made upon w arrants 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.
SECTION 10. This act shall become effective July 1, 2022.
SECTION 11. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason where of this act shall take effect and
be in full force from and after its passage and appr oval.
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Passed the Senate the 23rd day of March, 2022.
Presiding Officer of the Senate
Passed the House of Repre sentatives the ____ day of __________,
2022.
Presiding Officer of the House
of Representatives