ENGR. H. B. NO. 2358 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. 2358 By: Boles of the House and Pemberton of the Senate An Act relating to schools; amending 70 O.S. 2021, Sections 18-113.1, 18-113.2, and 18-113.4, which relate to class size limitations and p enalties; providing an exception for certain transfer student s; excepting kindergarten class size penalty for certain transfer students; providing an ex emption from certain class size penalties; providing an effective date; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 70 O.S. 2021, Section 18 -113.1, is amended to read as follows: Section 18-113.1 A. The provisions of this subsection shall apply only to grades one through three. 1. Except as otherwise provided for in this section, no child shall be included in the average daily member ship of a school district for the pur pose of computing and paying state -appropriated funds if that child is regularly assigned t o a teacher or to a class that includes more than twenty (20) students. ENGR. H. B. NO. 2358 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 2. If a class or classes in a grade exceed the class si ze limitation provided for in this su bsection, the class size limitation and penalty shall not apply if: a. the creation of an a dditional class would cause a class to have fewer than ten (10) students ;, and b. a teacher's assistant, as defined in Section 6 -127 of this title, is employed to se rve with each teacher in a class that exceeds the class size limitation provided for in this subsection, or c. beginning with the 2023-2024 school year, the class size limitation provided for in this su bsection is exceeded because the school district received students transferred in accordance with Sections 8-101 and 8- 113, subsection A of Section 8-101.2 for siblings and children in foster care , or subsection B of Section 8- 103.1 of this title. 3. No school district shall be penalized for exceeding class size limitations set forth in this subsection if the limitations are exceeded beginning aft er the first nine (9) weeks of the school year. Any school district found to be in violation of the provisions of this subsection shall receive a penalty in the Stat e Aid formula as a reduction to State Aid to be deter mined as follows: ENGR. H. B. NO. 2358 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 a. Multiply each pupil in excess of the class size membership limit as provided in this subsection by the grade level weight and by the Base Foundation Support Level for the current sch ool year, and b. Multiply each pupil in excess of the class size membership limit as provid ed in this subsection by the grade level weight and by the Incentive Aid guarantee for the current school year times twenty (20), and c. Sum the products of subparag raphs a and b of this paragraph. B. The provisions o f this subsection shall apply only to grades four through six. 1. Except as otherwise provided for in this section, no child shall be included in the average daily membership of a school district for the purpose of computing and paying state -appropriated funds if that child is regularly assig ned to a teacher or to a class that includes more than twenty (20) students. 2. If a class or clas ses in a grade exceed the class size limitation provided for in th is subsection, the class size limitation and penalty shall not apply if the creation of an additional class would cause a class to have fewer than sixteen (16) students. 3. No school distri ct shall be penalized for exceeding class size limitations set for th in this subsection if the limitations are ENGR. H. B. NO. 2358 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 exceeded beginning after the first nine (9) we eks of the school year. 4. Any school district found to be in violation of the provisions of this subsection shall receive a penalty in the State Aid formula as a reduction to State Aid to be determined as follows: a. Multiply each pupil in excess of the class size membership limit as provided in this subsection by the grade level weight and by the Ba se Foundation Support Level for the current school year, and b. Multiply each pupil in excess of the class size membership limit as provided in this subsecti on by the grade level weight and by the Incentive Aid guarantee for the current school year times t wenty (20), and c. Sum the products of subparagraphs a and b of th is paragraph. C. Classes in the following subjects s hall not be subject to the class size limitations provided for in subsections A and B of this section: 1. Physical education; and 2. Chorus, band, orchestra and similar music classes. D. If a school district groups its grades as grades one through five, grades six through eight, and grades nine through twelve, then as to such district the provisions of subsection B of this section shall apply to grades four and five rather than grades four through ENGR. H. B. NO. 2358 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 six, and the provisions of Section 18 -113.3 of this title shall apply to grades six through twe lve. E. Any violations of the provisions of this section shall result in denial of accreditation i n accordance with the requirements of Section 3 -104.4 of this title. F. Any school district which at the beginning of the school year does not have sufficie nt classrooms to meet the class size limitation provided for in this section as determined by guide lines established by the State Board of Education shall not be pen alized for failure to meet the class size limitations provided for in this section if: a. the school district has voted indebtedness, at any time within the five (5) years preceding the year the district exceeds the class size limitations or during the year the district exceeds the class size limitations, through the issuance of bonds or approva l by voters of issuance of new bonds for more than eighty-five percent (85%) of the maximum allowab le pursuant to the provisions of Section 26 of Article X of the Oklahoma Constitution as shown on the school district budget filed with the State Equalizatio n Board for the current school year and certifications by the Attorney General prior to February 1 of the current school year; and ENGR. H. B. NO. 2358 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 b. on the date of filing of the sc hool district budget with the State Equalization Boar d, the school district is voting the maximum millage allowable for the support, maintenance and construction of schools as provided for in subsections (a), (c), (d) and (d -1) of Section 9 of Article X of the Oklahoma Constitution and Section 10 of Article X of the Oklahoma Constitution. G. Any school district which exceeds the class size limitations as set forth in this section shall submi t a written report to the State Board of Education, on or before J uly 1 of each year, setting forth the procedures that the district will follow in order to comply with this section. H. School districts which receive state -appropriated funds pursuant to the provisions of Section 18 -112.2 of this title and do not comply with the provisions of this section shall be subject to loss of State Aid for each child i n excess of the class size limitations specified in this section. SECTION 2. AMENDATORY 70 O.S. 2021, Section 18 -113.2, is amended to read as follows: Section 18-113.2 A. The provisions of this section shall apply only to kindergarten. 1. No child shall be included in the average daily membership of a school district for the purpose of computing and paying state - ENGR. H. B. NO. 2358 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 appropriated funds if that child is regularly assigned to a teacher or to a class that includes more than twenty (20) students. 2. If a class or classes in a grade exceed the class size limitation provided for in thi s subsection, the class size limitation and penalty shall not appl y if: a. the creation of an additional class would cause a class to have fewer than ten (10 ) students;, and b. a teacher's assistant, as defined in Section 6 -127 of this title, is employed t o serve with each teacher in a class that exceeds the class size l imitation provided for in this subsection , or c. beginning with the 2023 -2024 school year, the class size limitation provided for in this subsection is exceeded because the school district received students transferred in accordance with Sections 8-101 and 8- 113, subsection A of Section 8-101.2 for siblings and children in foster care , or subsection B of Section 8- 103.1 of this title. 3. No school district shall be penalized for exceeding class size limitations set forth in this section if the limitations are exceeded beginning af ter the first nine (9) weeks of the school year. 4. Any school district which at the beginning of the school year does not have sufficient classrooms to meet the class size ENGR. H. B. NO. 2358 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 limitation provided for in this section as determined by guidelines established by the State Board of Education shall not be penalized for failure to meet the class size limitations provided for in this section if: a. the school district has voted indebtedness, at any time within the five (5) years preceding the year the district exceeds the class size limitations or during the year the district excee ds the class size limitations, through the issuance of bonds or approval by voters of issuance of new bonds for more than eighty-five percent (85%) of the maximum al lowable pursuant to the provisions of Section 26 of Article X of the Oklahoma Constitution as shown on the school district budget filed with the State Equalization Board for the current school year and certifications by the Attorney General prior to Februa ry 1 of the current school year; and b. on the date of filing of the school district budget with the State Equalization Board, the school district is voting the maximum millage allowable for the support, maintenance and construction of schools as provided for in subsections (a), ( c), (d) and (d-1) of Section 9 of Article X of the Oklahoma Consti tution ENGR. H. B. NO. 2358 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 and Section 10 of Article X of the Oklahoma Constitution. 5. Any school district found to be in violation of the provisions of this subsection shall receive a penalty in the State Aid formula as a reduction to State Aid to be determined as follows: a. Multiply each pupil in excess of the class size membership limit as provided in this subsection by the grade level weight and by the Base Foundation Support Level for the current school year, and b. Multiply each pupil in excess of the class size membership limit as provided in this subsection by the grade level weight and by the Incentive Aid guarantee for the current school year times twenty (20), and c. Sum the products of subparagraph s a and b of this paragraph. B. Any violations of the provisions of this section shall result in denial of accreditation in accordance with the requirements of Section 3 -104.4 of this title. C. School districts which receive stat e-appropriated funds pursuant to the provisions of Section 18 -112.2 of this title and do not comply with the provisions of this section shall be subject to loss of State Aid for each child in excess of the class size limitations specified in this section. ENGR. H. B. NO. 2358 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 SECTION 3. AMENDATORY 70 O.S. 2021, Section 18 -113.4, is amended to read as follows: Section 18-113.4 A. Beginning with the 1997 -98 school year, the penalties for exceeding class size limitations established in Sections 18-113.1, 18-113.2 and 18-113.3 of this title shall not apply if the class size limitations, as set forth in said sections, are exceeded beginning after the first nine (9) weeks of the school year. If the class size limitations are exceeded during the first nine (9) weeks, the penalties shall apply. B. Beginning with the 2023 -2024 school year, the penalties for exceeding class size limitations established in Sections 18 -113.1, 18-113.2, and 18-113.3 of this title shall not apply if the class size limitations provided in those sections are exceeded because the school district received students transferr ed in accordance with Sections 8-101 and 8-113, subsection A of Section 8-101.2 for siblings and children in foster care , or subsection B of Section 8- 103.1 of this title. C. For the purposes of ca lculating class size penalties established in Sections 1 8-113.1, 18-113.2 and 18-113.3 of this title, school districts shall use only the full -time-equivalency of the instructional staff who are under contract to work the f ull school year in question. C. D. Beginning July 1, 2003, school districts that participate in consolidation or annexation pursuant to the ENGR. H. B. NO. 2358 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 provisions of the Oklahoma School Voluntary Consolidation and Annexation Act shall be exempt from the provisions o f Sections 18- 113.1, 18-113.2 and 18-113.3 of this title for the year in which the consolidation or annexation occurs and for the next five (5) fiscal years. SECTION 4. This act shall beco me effective July 1, 2023. SECTION 5. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof thi s act shall take effect and be in full force from and after its passage and approval. Passed the House of Representatives the 7th day of March, 2023. Presiding Officer of the House of Representatives Passed the Senate the ___ day of __________, 2023. Presiding Officer of the Senate