An Act
ENROLLED SENATE
BILL NO. 22 By: Floyd of the Senate
and
West (Tammy) of the House
An Act relating to boards of education; amending 70
O.S. 2011, Section 5 -117, as last amended by Section
1, Chapter 149, O.S.L. 2018 (70 O.S. Supp. 2020,
Section 5-117), which relates to powers and duties of
boards of education; directing a lessee of certain
property be given the right of first refusal to
purchase the property; establishing terms and
conditions for such sale; providing an effective
date; and declaring an emergency.
SUBJECT: Boards of education property
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2011, Section 5-117, as
last amended by Section 1, Chapter 149, O.S.L. 2018 (70 O.S. Supp.
2020, Section 5-117), is amended to read as follows:
Section 5-117. A. The board of education of each school
district shall have power to:
1. Elect its own officers; provided that the chair of the board
authorized in Section 5-107B of this title shall be elected by the
electors of the school district;
2. Make rules, not inconsiste nt with the law or rules of the
State Board of Education, governing th e board and the school s ystem
ENR. S. B. NO. 22 Page 2
of the district, including conve rting all or part of a traditional
public school to a conversion school;
3. Maintain and operate a complete public school s ystem of such
character as the board of education shall deem best suit ed to the
needs of the school district;
4. Designate the scho ols to be attended by the children of the
district;
5. Provide and operate, when deemed advisable, cafeterias or
other eating accommodations, thrift banks or other facilities for
the teaching and practice of thrift an d economy, bookstores, print
shops, and vocational and other shops;
6. Provide informational material concerning school bond
elections and millage elections, inc luding but not limited to all
pertinent financial information relative to the bond issue, a
statement of revenue sources necessary t o retire proposed bonds, a
statement of current bonded indebtedness of the school district, and
a statement of proposed use of funds to be generated by the proposed
bond issue. The informationa l material shall not con tain the words
“vote yes” or “vote no” or any similar words or statement any place
on such informational material;
7. Purchase, construct or rent, and operate an d maintain,
classrooms, libraries, auditoriums, gymnasiums, stadiums, recreation
places and playgrounds, teacherages, school bus gar ages,
laboratories, administration buildings, and other schoolhouses and
school buildings, and acquire sites and equipment f or the operation
of public schools or conversion schools;
8. a. Insure the school district or its employees against
any loss, damage or liability as defined by Sections
702 through 708 of Title 36 of the Oklahoma Statutes,
or other forms of insurance provi ded for in Title 36
of the Oklahoma Statutes.
b. Subject to the restri ctions of liability in t he
Governmental Tort Claims Act:
ENR. S. B. NO. 22 Page 3
(1) insure the school district against all or any
part of any liability it may incur for death,
injury or disability of any perso n, or for damage
to property, either real or personal,
(2) insure any employee of the school d istrict
against all or any part of the employee’s
liability for injury or damage resulting from an
act or omission in the scope of employment, or
(3) insure against the expense of defending a claim
against the school district or its employee,
whether or not liability exists on such claim.
c. As used in this subsection, “employee” means any
person who has acted in behalf of a school district,
whether that person is acting on a permanent or
temporary basis with or without being compens ated or
on a full-time or part-time basis. Employee also
includes all elected or appointed officers, members of
governing bodies of a school district, and persons
appointed, and other p ersons designated by a school
district to act in its behalf.
d. The cost or premium of any suc h insurance is a proper
expenditure of the school district.
e. Any insurance authorized by law to be purchased,
obtained or provided by a school district may be
provided by:
(1) self-insurance, which may be, but is not required
to be, funded by appropriati ons to establish or
maintain reserves for self-insurance purposes.
Any self-insurance reserve fund shall be
nonfiscal and shall not be considered in
computing any levy when the school district makes
its annual estimate for needed a ppropriations,
(2) insurance in any insurer authorized to tran sact
insurance in this state,
ENR. S. B. NO. 22 Page 4
(3) insurance secured in accordance with any other
method provided by law, or
(4) any combination of insurance authorized by this
section.
f. Two or more school dis tricts or public agencie s, by
interlocal agreement made purs uant to the Interlocal
Cooperation Act, may provide insurance for any purpose
by any one or more of the methods specified in t his
section. The pooling of self -insured reserves, claims
or losses among governments as authorized in this
section shall not be construed to be transacting
insurance nor otherwise subject to the provisions of
the laws of this state regulating insurance o r
insurance companies, except as to the provisions of
Section 607.1 of Title 36 of the Oklahom a Statutes.
Two or more school dist ricts may also be insured under
a master policy or contract of insurance. Premium
costs may be set individually for each scho ol district
or apportioned among participating school districts as
provided by the master poli cy or contract;
9. Acquire property by condemnation proceedings in the same
manner as land is condemned for railroad purposes. School district
funds may be used to erect buildings on leased land on which other
buildings have been erected prior to April 3 , 1969, or on land which
is leased from a governmental entity;
10. Lease real or personal property to the state or any
political subdivision thereof or a not -for-profit entity operating
pursuant to Section 868 of Title 18 of the Ok lahoma Statutes for
nominal cash consideration for so long as the use of the property by
the lessee substantially benefits, in whole or in part, the same
public served by the school dist rict;
11. a. Dispose of personal or real property no longer needed
by the district by sale, exchange, lease, lease-
purchase, sale and partial lease back, or otherwise.
Real property shall be conveyed pursuant to a public
sale, public bid, or private sale; provided however,
unless otherwise prohibited by law, the board of
ENR. S. B. NO. 22 Page 5
education of a consolidated or annexed school district
or any other school district may convey real property
to a local political subdivision or to an educational
institution within The Ok lahoma State System of Higher
Education or to a housing authority form ed pursuant to
the provisions of Section 1057 of Title 63 of the
Oklahoma Statutes without consideration. Prior to the
sale of any real property, the board of education
shall have the real property appraised. The appraisal
shall be confidential until the real property is sold.
When the real property is sold, the board of education
shall make the appraisal available for public
inspection. Prior to the conveyance of any real
property by private sale, the board of education shall
have offered the real prop erty for sale by public sale
or public bid. Any conveyance of real property by
private sale to a nonprofit organization, association,
or corporation to be used for public purposes, unle ss
for exchange, shall contain a reversionary clause
which returns the real property to the board of
education upon the cessation of the use without profit
or for public purposes by the purchaser or the assigns
of the purchaser,
b. If a board of education makes the decision to dispose
of real or personal property that is leased at the
time the decision is made, whether such disposal is by
public sale, public bid or private sale, the lessee
shall have a right of first refusal to purchase the
property on the following terms and condit ions:
(1) if a board of education receives a bid or offer
in a public sale, public bid or private sale for
any real or personal property that it desires to
accept, then it shall provide notice to the
lessee of the property. The notice shall include
the identity of the prospective purchaser of the
property, the terms and conditions of the
proposed sale and the purchase price to be paid
by the prospective purchaser, and
ENR. S. B. NO. 22 Page 6
(2) the lessee shall have thirty (30) days afte r
receipt of the notice to inform the board of
education that it elects to purchase the property
on the same terms and conditions set forth in the
notice, in which event the board of ed ucation
shall convey the property to the lessee on all
the same terms and conditions set forth in the
notice; provided, however, that if any portion of
the consideration included in the purchase price
set forth in the notice is not in cash, then the
lessee shall be entitled to pay the fair market
value in cash of such noncash consideration;
12. Purchase necessary p roperty, equipment, furniture, and
supplies necessary to maintain and operate an adequate school
system;
13. Incur all expenses, within the l imitations provided for by
law, necessary to perform all powers grante d by the provisions of
this section;
14. Contract with and fix the duties and compensation of
physicians, dentists, optometrists, nur ses, attorneys,
superintendents, principals, teache rs, bus drivers, janitors , and
other necessary employees of the distric t;
15. Establish a written policy for reimb ursement of necessary
travel expenses of employees and members of the board. The policy
may include in-district travel from the site of emp loyment
assignment which is necessary in the performance of employment
duties. The written policy shall specify pro cedures, contain
documentation requirements, and may include payment of meal expenses
during authorized travel on a per diem allowance basis rather than
itemized documentation;
16. Pay necessary travel expenses and other related expenses of
prospective employees for sponsored visits to the school district
pursuant to a written policy specifyin g procedures containing
documentation requirement s equal to or greater than the requirements
specified by law for state em ployees in the State Travel
Reimbursement Act;
ENR. S. B. NO. 22 Page 7
17. Provide for employees’ leaves of absence without pay;
18. Exercise sole control o ver all the schools and property of
the district, subject to other provision s of the Oklahoma School
Code;
19. Allow district-owned school buses to be used for
transportation of students from other districts or educational
institutions while within the di strict on educational tours. This
shall not restrict the authority of the b oard to authorize any other
use of such buses which may now be permitted by law or rule of the
State Board of Education;
20. Enter into contractual agreements with the board of
trustees of a multicounty library system, as defined in Section 4-
103 of Title 65 of the Oklahoma Statutes, a city-county library
commission, as defined in Section 152 of Title 65 of the Oklahoma
Statutes, or a rural single county library system, as defined in
Section 1-104 of Title 65 of the Oklahoma Statutes, on such terms as
may be mutually agreed, except no district board o f education may
enter into any agreement und er which the library services for the
school would be provided at any site other than the school site or
which would result in library services that do not meet
accreditation standards as required by law or rule;
21. Perform all functions necessary to the administration of a
school district in Oklahoma as specified in the Oklahoma School
Code, and in addition thereto, those powers necessarily implied but
not delegated by law to any other agency or official;
22. Prepare and distribute at the expense of the school
district any and all material which has the purpose of informing the
public about district activities;
23. Solicit and accept any gift, grant, or donation of money or
property for the use of the school d istrict. Any gift, grant, or
donation of money may be deposited in the general fund or building
fund of the school district; and
24. Pay necessary meal and lodging expenses of school district
students and sponsors involved in authorized school-sponsored
cocurricular activities. The board of educa tion shall establish a
ENR. S. B. NO. 22 Page 8
written policy for reimbursement of necessary meal and lodging
expenses of school district students and sponsors. The written
policy shall specify procedures, contain documentation require ments,
and designate the funds from which re imbursement may be made.
Reimbursement may be made from the General Fund.
B. The board of education of any school district may rent real
and personal property, if s uch items are necessary for the operation
of the school, and pay the rental charges for th e usage during any
fiscal year, or portion thereof, out of appropriations made and
approved for current expense purposes during the fiscal year. Any
rental contract extending beyond June 30 of the fiscal year sh all be
void unless it contains provisions fo r mutual ratification of
renewal pursuant to the conditions provided for in this subs ection.
It is the intent of this subsection to authorize boards of education
to enter into lease contracts but not to incur an y obligation
against the school district in excess of the income and revenue
provided for such purposes for the fiscal year in wh ich the lease
contract is operative. Any lease or lease-purchase agreement
entered into by any board of education shall state the purchase
price of real or personal prope rty so leased. The lease or lease-
purchase shall not be extended so as to cause paym ent of more than
the original purchase price of the real or personal property, pl us
interest not to exceed the legal rate. Whe n the purchase price plus
interest has been paid, the property shall belong to the lessee and
the lessor shall deliver a deed or bill of sale to the property to
the lessee. When any real or personal property h as been leased or
rented during any fiscal yea r pursuant to the provisions of any
contract which permits continuance of the rental for the remainder
of the fiscal year, the re nting or leasing of the property shall be
continued for the remainder of the fisc al year unless the board of
education renting or leasing the same certifies by proper reso lution
entered in the minutes of the board of education that the
continuance of the r ental is unnecessary and contrary to the public
interest. Any lease -purchase agreement entered into shall include
the right of a school district to acquire buildings, equ ipment or
other facilities or discrete components thereof or improve school
sites through a lease-purchase agreement. A school district may use
proceeds derived from the sale of bonds as authorized by Section 26
of Article X of the Oklahoma Constitution t o make lease-purchase
payments, including interest, under a lease -purchase agreement. For
purposes of this subsection, the term “acquired” as used in Section
ENR. S. B. NO. 22 Page 9
26 of Article X of the Oklahoma Constitution shall me an the
possession, control, or power to disp ose of personal or real
property.
C. The boards of education of two or more school districts may
enter into cooperative agreements and maintain joint programs
including, but not limited to, courses of instructio n for
handicapped children, courses of instr uction in music and other
subjects, practical instruction for trades and vocations, practical
instruction in driver training courses, and health programs
including visual care by persons legally licensed for such purpose,
without favoritism as to either pr ofession. The revenues necessary
to operate a joint program approved in cooperative agreements,
whether from federal, state or local sources, including the
individual contributions of participating school distri cts, shall be
deposited into a fund separate from all other appropriated funds.
The beginning fund balance each year, combined with all actual
revenues, including collected and estimated revenues, must be
appropriated before being expended. Purchase orde rs shall be issued
against available appropr iations and, once goods or services have
been received, either payable or nonpayable warrants shall be issued
in payment of all purchase orders. The fund shall be re ported as a
separate appropriated fund in all the financial reports of the
school district which is chosen by the other school districts to
keep the accounting records of the joint program.
D. The boards of education of two or more school districts may
enter into a mutual contract or separate contrac ts with a
superintendent, administrator, or teacher or with a person to
provide support services, to serve as superintendent, a dministrator,
or teacher, as appropriately qualified, or to provide support
services, for each contracting district upon such ter ms and
conditions as the parties may agree. Nothing in this act section
shall be construed to authorize or require annexation or
consolidation of any school districts or the closing of any school
site except pursuant to law as set forth in Section 7-101 et seq. of
this title.
E. Any school distric t may operate or maintain a school or
schools on any military reservation which is within the boundaries
of the school district or which is adjacent to the school dis trict,
and provide the instruction in the scho ol or schools to children of
ENR. S. B. NO. 22 Page 10
personnel on the military reservation and, in doing so, shall
conform to all federal laws and req uirements.
F. The board of education of each school district shall adopt
and maintain on file in the office of the superintendent of schools
appropriate personnel policy and sick leave guide. The guide shall
be made available to the public.
G. The board of education of any school district with an
average daily membership of thirty thou sand (30,000) or more and all
or part of which school district is located in a county havi ng more
than five hundred thousand (500,000) population according to the
latest Federal Decennial Census may contract w ith a public or
private nonsectarian entity for that entity to provide educational
and administrative services for the school district. The
educational services provided by a contracting entity may include
but are not limited to the delivery of instructio nal service in core
and noncore academic subjec ts to the students enrolled in the school
district at one or more school sites or parts of sites within the
district pursuant to the terms of an educational services cont ract.
All educational service provider s and their employees and
representatives and a ll educational and administrative services
provided under an educational services contract shall be exempt from
all statutes and rules relating to schools, boards of educ ation and
school districts to the same extent that a charter school is exempt
under the Oklahoma Charter Schools Act. For all purpo ses, including
but not limited to attendance , funding from all sources and
accountability, all students who are provided ser vices by a
contracting entity pursuant to an educational services contract
shall at all times be and remain students of the school d istrict.
SECTION 2. This act shall become effective July 1, 2021.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason wh ereof this act shall take effect and
be in full force from and after its passage and approval.
ENR. S. B. NO. 22 Page 11
Passed the Senate the 3rd day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representa tives the 14th day of April, 2021.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _____ ____
day of _________________ __, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this _______ ___
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________