Oklahoma 2023 Regular Session

Oklahoma House Bill HB2414 Compare Versions

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28-ENGROSSED HOUSE
29-BILL NO. 2414 By: Johns and Waldron of the
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29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
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31+STATE OF OKLAHOMA
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33+1st Session of the 59th Legislature (2023)
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35+HOUSE BILL 2414 By: Johns
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47+AS INTRODUCED
3948
4049 An Act relating to schools; amending 70 O.S. 20 21,
4150 Sections 3-135, 3-136, 3-137, and 3-142, which relate
4251 to the Oklahoma Charter Schools Act; requiring
4352 charter school to provide certain notice to sponsor;
4453 directing sponsor to use performance framework for
4554 charter school evaluation; authorizing development of
4655 certain separate framework; adding minimum
4756 requirements for framework; mandating annual
4857 evaluation; directing presentation of results to
4958 certain governing boards; defining term; subjecting
5059 charter school to certain spending limitations;
5160 prohibiting charter school from providing inst ruction
5261 to certain students; directing charter school
5362 governing board to comply with certain acts;
5463 subjecting charter school sponsor governing board to
5564 certain conflict of interest requirements; modifying
5665 procedures for charter school contracts; requiring
5766 sponsor to develop a corrective action plan;
5867 authorizing nonrenewal of contract in certain cases;
5968 specifying how sponsor fee should be used; requiring
6069 sponsor to publish certain report on its website;
6170 amending 70 O.S. 2021, Section 3-145.3, which relates
6271 to duties of the Statewide Virtual Charter S chool
6372 Board; requiring compliance with the Oklahoma Charter
6473 Schools Act; modifying limitation on fee for
6574 administrative expenses and supp ort; subjecting
6675 certain charter schools to the same purchasing
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67103 procedures and compliance requirements as school
68104 districts; prohibiting commingling of certain school
69105 funds; modifying instruction and continuing education
70106 obligations for certain governing bo ard members;
71107 establishing requirements for governing boards which
72108 contract with educational management organizations ;
73109 prescribing duties for board membership; requiring
74110 State Department of Education and sponsor to publish
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101111 certain contracts on their websites ; directing
102112 Department to publish list of fees paid; subjecting
103113 certain board members to instruction and continuing
104114 education requirements; prohibiting certain conflicts
105115 of interest and pecuniary gain; disallowing certain
106116 appointments or selections of memb ers; requiring
107117 sponsor board members to complete instruction and
108118 continuing education requirements; specifying entity
109119 to pay for instruction and continuing education;
110120 prescribing requirements for instruction and
111121 continuing education; defining term; designa ting
112122 certain funds as public funds; prohibiting transfer
113123 or conversion of state funds to private funds;
114124 clarifying provision; requiring payments from charter
115125 schools to comply with certain provisions; directing
116126 organization to provide certain documents; subjecting
117127 certain funds to audit, transparency, oversight and
118128 financial reporting; requiring certain funds to
119129 remain public funds; prescribing grade for
120130 participation in certain extracurricular or
121131 educational activities; declaring certain property to
122132 remain public property of the charter school;
123133 mandating an operating agreement rev iew of certain
124134 charter schools; establishin g procedures for review;
125135 requiring written agreement for certain expenditures;
126136 mandating criminal history record checks for certain
127137 personnel; prescribing process and payment of checks;
128138 prohibiting certain activit ies by educational
129139 management organizations ; amending 70 O.S. 2021,
130140 Section 5-200, which relates to educational
131141 management organizations ; requiring amounts paid to
132142 certain organizations be pursuant to contract terms;
133143 mandating disclosure pursuant to certai n guidelines;
134144 amending 70 O.S. 2021, Section 18-124, which relates
135145 to limitations on administrative services
136146 expenditures; providing app licability of limitation
137147 to certain charter schools; clarifying calculation
138148 for specified schools; modifying definition;
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139176 providing for codification; providing an effective
140177 date; and declaring an emerge ncy.
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145182 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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172183 SECTION 1. AMENDATORY 70 O.S. 2021, Section 3 -135, is
173184 amended to read as foll ows:
174185 Section 3-135. A. The sponsor of a charter school shall enter
175186 into a written contract with the governing body board of the charter
176187 school. The contract shall incorporate the provisions of the
177188 charter of the charter school and contain, but shall not be limited
178189 to, the following provisions:
179190 1. A description of the program to be offered by the school
180191 which complies with the purposes outlined in Section 3 -136 of this
181192 title;
182193 2. Admission policies and p rocedures;
183194 3. Management and administration of the charter school,
184195 including that a majority of the charter governing board members are
185196 residents of the State of Oklahoma and meet no less than quarterly
186197 in a public meeting within the boundaries of the sch ool district in
187198 which the charter school is located or within the State of Oklahoma
188199 in the instance of multi ple charter school locations by the same
189200 sponsor;
190201 4. Requirements and procedures for program and financial
191202 audits;
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192230 5. A description of how the cha rter school will comply with the
193231 charter requirements set forth in the Oklahoma Charter Schools Act;
194232 6. Assumption of liability by the charter school;
195233 7. The term of the contract;
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222234 8. A description of the high standards of expectation and rigor
223235 for charter school plans and assurance that charter school p lans
224236 adopted meet at least those standards;
225237 9. Policies that require that the charter school be as equally
226238 free and open to all students as traditional public schools;
227239 10. Procedures that require student s enrolled in the charter
228240 school to be selected by lottery to ensure fairness if more students
229241 apply than a school has the capacity to accommodate;
230242 11. Policies that require the charter school to be subject to
231243 the same academic standards and expectations as existing public
232244 schools; and
233245 12. A description of the requirements and procedures for the
234246 charter school to receive funding in accordance with statutory
235247 requirements and guidelines for existing public schools ; and
236248 13. A requirement to promptly notify the sponsor in the
237249 instance of any significant adverse actions, material findings of
238250 noncompliance, or pendi ng actions, claims, or proceedings in this
239251 state relating to the charter school or an education al management
240252 organization with which the charter school has a contract .
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241280 B. A charter school shall not enter into an employment contract
242281 with any teacher or oth er personnel until the charter school has a
243282 contract with a sponsoring school district. The employment contract
244283 shall set forth the personnel policies of the charter school,
245284 including, but not limit ed to, policies related to certification,
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272285 professional development evaluation, suspension, dismissal and
273286 nonreemployment, sick leave, personal business leave, emergency
274287 leave, and family and medical leave. The contract shall also
275288 specifically set forth th e salary, hours, fringe benefits, and work
276289 conditions. The contract may provide for employer -employee
277290 bargaining, but the charter school shall not be required to comply
278291 with the provisions of Sections 509.1 through 509.10 of this title.
279292 The contract shall conform to all applicable provisions set forth in
280293 Section 3-136 of this title.
281294 Upon contracting with any teacher or other personnel, the
282295 governing body board of the charter school shall, in writing,
283296 disclose employment rights of the employees in the eve nt the charter
284297 school closes or the charter is not renewed .
285298 No charter school may begin serving students without a charter
286299 contract executed in accordance with the provisions of the Oklahoma
287300 Charter Schools Act and approved in an open meeting of the sponso r.
288301 The sponsor may establish reasonable preopening requir ements or
289302 conditions to monitor the start -up progress of newly approved
290303 charter schools and ensure that each school is prepared to open
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291331 smoothly on the date agreed and to ensure that each school me ets all
292332 building, health, safety, insurance and other lega l requirements for
293333 the opening of a school.
294334 C. The performance provisions within the charter contract shall
295335 be based on a performance framework that clearly sets forth the
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322336 academic and operational performance indicators, measures and
323337 metrics that will guide the evaluations of the shall be used by
324338 charter school sponsor s to evaluate their respective charter school
325339 by the sponsor schools. The sponsor may develop a separate
326340 performance framework to ev aluate a charter school that has been
327341 designated by the St ate Department of Education to implement an
328342 alternative education program throughout the charter school . The
329343 sponsor shall require a charter school to submit the data required
330344 in this section in the identical format that is required by the
331345 State Department of Education of all public schools in order to
332346 avoid duplicative administrative efforts or allow a charter school
333347 to provide permission to the Department to share all required data
334348 with the sponsor of the charter school. The performance framework
335349 shall serve as the minimum requirement for charter school
336350 performance evaluation and shall include, but not be limited to, the
337351 following indicators, measures and metrics for, at a minimum :
338352 1. Student academic proficiency;
339353 2. Student academic growth;
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340381 3. Achievement gaps in both proficiency and growth between
341382 major student subgroups;
342383 4. Student attendance;
343384 5. Recurrent enrollment from year to year as determined by the
344385 methodology used for public scho ols in Oklahoma;
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371386 6. In the case of high schools, graduation rates as determined
372387 by the methodology used for public schools in Oklahoma;
373388 7. In the case of high schools, postsecondary readin ess;
374389 8. Financial performance and sustainability and compliance with
375390 state and Internal Revenue Service financial reporting requirements;
376391 and
377392 9. Audit findings or deficiencies;
378393 10. Accreditation and timely reporting; and
379394 11. Governing board performance and stewardship, including
380395 compliance with all applicable laws, r egulations and terms of the
381396 charter contract.
382397 The sponsor shall annually evaluate its charter schools according to
383398 the performance framework. The results of the evaluation shall be
384399 presented to the governing board of the charter school and the
385400 governing board of the charter school sponsor in an open meeting and
386401 posted on the website of the charter school.
387402 D. The sponsor shall not request any metric or data from a
388403 charter school that it does not produce or publish for all school
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389431 sites in the district or un der its sponsorship, unless the metric or
390432 data is unique to a charter school.
391433 E. A charter contract may provide for one or more schools by an
392434 applicant to the extent approved by the sponsor and consistent with
393435 applicable law. An applicant or the governin g board of an applicant
394436 may hold one or more charter contract s. Each charter school that is
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421437 part of a charter contract shall be separate and distinct from any
422438 other charter school under the same charter contract. For the
423439 purposes of this subsection, "separate and distinct" shall mean a
424440 charter school governing board with oversight of more than one
425441 charter school shall not combine accounting, budgeting,
426442 recordkeeping, admissions, employment or policies and operational
427443 decisions of the charter school s it oversees.
428444 SECTION 2. AMENDATORY 70 O.S. 2021, Section 3-136, is
429445 amended to read as follows:
430446 Section 3-136. A. A charter school shall adopt a charter which
431447 will ensure compliance with the following:
432448 1. A charter school shall compl y with all federal regulations
433449 and state and local rules and statutes relating to health, safety,
434450 civil rights and insurance. By January 1, 2000, the State
435451 Department of Education shall prepare a list of relevant rules and
436452 statutes which a charter school must comply with as required by this
437453 paragraph and shall annu ally provide an update to the list;
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438481 2. A charter school shall be nonsectarian in its programs,
439482 admission policies, employment practices, and all other operations.
440483 A sponsor may not authorize a charter school or program that is
441484 affiliated with a nonpublic sectarian school or religious
442485 institution;
443486 3. The charter school may provide a comprehensive program o f
444487 instruction for a prekindergarten program, a kindergarten program or
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471488 any grade between gr ades one and twelve. Instruction may be
472489 provided to all pers ons between the ages of four (4) and twenty-one
473490 (21) years of age. A charter school may offer a curricu lum which
474491 emphasizes a specific learning philosophy or style or certain
475492 subject areas such as mathematics, science, fine arts, performance
476493 arts, or foreign language. The charter of a charter school which
477494 offers grades nine through twelve shall specificall y address whether
478495 the charter school will comply with the graduation requirements
479496 established in Section 11-103.6 of this title. No charter school
480497 shall be chartered for the purpose of offering a curriculum for deaf
481498 or blind students that is the same or s imilar to the curriculum
482499 being provided by or for educating deaf or blind students that are
483500 being served by the Oklahoma School for the Blind or the Okl ahoma
484501 School for the Deaf;
485502 4. A charter school shall participate in the testing as
486503 required by the Okla homa School Testing Program Act and the
487504 reporting of test results as is required of a schoo l district. A
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488532 charter school shall also provide any necessar y data to the Office
489533 of Accountability;
490534 5. Except as otherwise provided for in the Oklahoma Charter
491535 Schools Act and its charter, a charter school shall be exempt from
492536 all statutes and rules rela ting to schools, boards of education, and
493537 school districts;
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520538 6. A charter school, to the extent possible, shall be subject
521539 to the same reporting requirements, financ ial audits, audit
522540 procedures, and audit requirements as a school district. The State
523541 Department of Education or State Auditor and Inspector may conduct
524542 financial, program, o r compliance audits. A charter school shall
525543 use the Oklahoma Cost Accounting Syst em to report financial
526544 transactions to the sponsoring school district or sponsor. The
527545 charter school shall be subject to the limitations on spending ,
528546 including provisions of the Oklahoma Constitution , for any funds
529547 received from the state, either through th e State Department of
530548 Education or other sources ;
531549 7. A charter school shall comply with al l federal and state
532550 laws relating to the education of child ren with disabilities in the
533551 same manner as a school district;
534552 8. A charter school shall provide for a go verning body board
535553 for the school which shall be responsible for the policies and
536554 operational decisions of the charter school;
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537582 9. A charter school sh all not provide or otherwise s upplement
538583 instruction of students enrolled in private schools or be used as a
539584 method of generating revenue for students who are being home
540585 schooled and are not being e ducated at an organized charter school
541586 site;
542587 10. A charter school may shall not charge tuition or fees;
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569588 11. A charter school shall provide instruction each yea r for at
570589 least the number of days or hours required in Section 1 -109 of this
571590 title;
572591 12. A charter school shall comply with the student suspension
573592 requirements provided for in Section 24 -101.3 of this title;
574593 13. A charter school shall be considered a school d istrict for
575594 purposes of tort liability under The Governmental Tort Claims Act;
576595 14. Employees of a charter school may participate as members of
577596 the Teachers' Retirement System of Oklahoma in accordance with
578597 applicable statutes and rules if otherwise allowe d pursuant to law;
579598 15. A charter school may participate in all health and related
580599 insurance programs available to the employees of the sponsor of the
581600 charter school;
582601 16. A charter school and charter school governing board shall
583602 comply with the Oklahoma O pen Meeting Act and the Oklahoma Open
584603 Records Act;
585604 17. The governing body board of a charter school and the
586605 governing board of a charter school spons or shall be subject to the
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587633 same conflict of interest requirements as a member of a local school
588634 board; and
589635 18. No later than September 1 of each year, the governing board
590636 of each charter school fo rmed pursuant to the Oklahoma Charter
591637 Schools Act shall pre pare a statement of actual income and
592638 expenditures for the charter school for the fiscal year that ended
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619639 on the preceding June 30, in a manner compliant with Section 5 -135
620640 of this title. The state ment of expenditures shall include
621641 functional categories as defined in rules adopted by the State Board
622642 of Education to implement the Oklahoma Cost Accounting System
623643 pursuant to Section 5 -145 of this title. Charter schools shall not
624644 be permitted to submit estimates of expenditures or prorated amounts
625645 to fulfill the requirements of this paragraph.
626646 B. The charter of a charter school shall include a description
627647 of the personnel policies, personnel qualifications, and method of
628648 school governance, and the spec ific role and duties of the sponsor
629649 of the charter school.
630650 C. The charter of a charter school may be amended at the
631651 request of the governing body board of the charter school and upon
632652 the approval of the sponsor.
633653 D. A charter school may enter into contrac ts and sue and be
634654 sued.
635655 E. The governing body board of a charter school may shall not
636656 levy taxes or issue bonds.
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637684 F. The charter of a charter school shall include a provision
638685 specifying the method or methods to be employed for disposing of
639686 real and personal property acquired by the charter school upon
640687 expiration or termination of the charter or failure of the charter
641688 school to continue operations. Except as otherwis e provided, any
642689 real or personal property purchased with state or local funds shall
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669690 be retained by the sponsoring school district or sponsor of the
670691 charter school. If a charter school that was previously sponsored
671692 by the board of education of a school dis trict continues operation
672693 within the school district under a new charter sponsored by an
673694 entity authorized pursuant to Section 3 -132 of this title, th e
674695 charter school may retain any personal property purchased with state
675696 or local funds for use in the opera tion of the charter school until
676697 termination of the new charter or failure of the charter s chool to
677698 continue operations.
678699 SECTION 3. AMENDATORY 70 O.S. 2021, Section 3 -137, is
679700 amended to read as follows:
680701 Section 3-137. A. An The first approved contract for between a
681702 charter school and its sponsor shall be effective for five (5) years
682703 from the first day of operation. A charter contract may be renewed
683704 for successive five-year terms of duration, although the sponsor may
684705 vary the term based on the performance, demonstrated capacities and
685706 particular circumstances of each ch arter school. A sponsor may
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686734 grant renewal with specific co nditions for necessary improvements to
687735 a charter school.
688736 B. Prior to the beginning of the fourth year of operation of a
689737 charter school, the sponsor shall issue a ch arter school performance
690738 report and charter renewal application guidance to the school and
691739 the charter school governing board. The performance report shall
692740 summarize the performance record to date of the charter school,
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719741 based on the data required by the Oklahoma Ch arter Schools Act, the
720742 annual performance framework evaluation, the operating agr eement
721743 review if the charter school contracts with an educational
722744 management organization, and the charter contract and taking into
723745 consideration the percentage of at -risk students enrolled in the
724746 school, and. The performance report shall provide notice o f any
725747 weaknesses or, concerns, violations, or deficiencies perceived by
726748 the sponsor concerning the charter school that may jeopardize its
727749 position in seeking renewal if not tim ely rectified, and the charter
728750 school sponsor shall develop a corrective action plan and
729751 corresponding timeline to remedy any violations or deficiencies .
730752 The charter school shall have forty -five (45) days to respond t o the
731753 performance report and submit an y corrections or clarif ications for
732754 the report. If the charter school does not substantially complete
733755 the corrective action plan developed by the sponsor, the sponsor may
734756 choose not to renew the charter contract pursuant to the
735757 requirements of this section .
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736785 C. 1. Prior to the beginning of the fifth year of operation,
737786 the charter school may apply for renewal of the contract with the
738787 sponsor. The renewal application guidanc e shall, at a minimum,
739788 provide an opportunity for the charter school to:
740789 a. present additional e vidence, beyond the data contained
741790 in the performance report, suppo rting its case for
742791 charter renewal,
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769792 b. describe improvements undertaken or planned for the
770793 school, and
771794 c. detail the plan for the next charter term for the
772795 school.
773796 2. The renewal applicati on guidance shall include or refer
774797 explicitly to the criteria that will guide the renewal decisions of
775798 the sponsor, which shall be based on the performance fram ework set
776799 forth in the charter contract and consistent with the Oklahoma
777800 Charter Schools Act.
778801 D. The sponsor may deny the request for renewal if it
779802 determines the charter school has failed to complete the obligations
780803 of the contract or comply with the pro visions of the Oklahoma
781804 Charter Schools Act. A sponsor shall give written notice of its
782805 intent to deny the request for renewal at least eight (8) months
783806 prior to expiration of the contract. In making charter renewal
784807 decisions, a sponsor shall:
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785835 1. Ground decisions on evidence of the performance of the
786836 school over the term of the charter contract in accordance with the
787837 performance framework set forth in the charter contract and shall
788838 take into consideration the percentage of at -risk students enrolled
789839 in the school;
790840 2. Grant renewal to schools that have achieved the standards,
791841 targets and performance expectations as stated in the charter
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818842 contract and are organizatio nally and fiscally viable and have been
819843 faithful to the terms of the contract and applicable law;
820844 3. Ensure that data used in making renewal decisions are
821845 available to the school and the p ublic; and
822846 4. Provide a public report summarizing the evidence use d as the
823847 basis for each decision.
824848 E. If a sponsor denies a request for renewal, the governin g
825849 board of the sponsor may, if requested by the charter school,
826850 proceed to binding arbitration a s provided for in subsection G of
827851 Section 3-134 of this title.
828852 F. A sponsor may terminate a contract during the term of the
829853 contract for failure to meet the re quirements for student
830854 performance contained in the contract and performance framework,
831855 failure to meet the standards of fiscal management, violations of
832856 the law or other good cause. The sponsor shall give at least ninety
833857 (90) days' written notice to the governing board prior to
834858 terminating the contract. The governing board may request, in
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835886 writing, an informal hearing before the sponsor within fourteen (14)
836887 days of receiving notice. The sponsor shall conduct an informal
837888 hearing before taking action. If a sponsor decides to termi nate a
838889 contract, the governing board may, if requested by the charter
839890 school, proceed to binding arbitration as provided for in subsectio n
840891 G of Section 3-134 of this title.
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867892 G. 1. Beginning in the 2016 -2017 school year, the State Board
868893 of Education shall identify charter schools in the state that are
869894 ranked in the bottom fi ve percent (5%) of all public schools as
870895 determined pursuant to Sec tion 1210.545 of this title.
871896 2. At the time of its charter renewal, based on an average of
872897 the current year and the tw o (2) prior operating years, a sponsor
873898 may close a charter school site identified as being among the bottom
874899 five percent (5%) of public s chools in the state. The average of
875900 the current year and two (2) prior operating years shall be
876901 calculated by using th e percentage ranking for each year divided by
877902 three, as determined by this subsection.
878903 3. If there is a change to the calculation descri bed in Section
879904 1210.545 of this title that results in a charter school site that
880905 was not ranked in the bottom five perc ent (5%) being ranked in the
881906 bottom five percent (5%), then the sponso r shall use the higher of
882907 the two rankings to calculate the ranking of the charter school
883908 site.
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884936 4. In the event that a sponsor fails to close a charter school
885937 site consistent with this subsection, the sponsor shall appear
886938 before the State Board of Educati on to provide support for its
887939 decision. The State Board of Educati on may, by majority vote,
888940 uphold or overturn the decision of the sponsor. If the decision of
889941 the sponsor is overturned by the State Board of Education, the Board
890942 may implement one of the f ollowing actions:
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917943 a. transfer the sponsorship of the charter school
918944 identified in this paragraph to another sponsor,
919945 b. order the closure of the charter school identified in
920946 this paragraph at the end of the current school year,
921947 or
922948 c. order the reduction of any administrative fee
923949 collected by the sponsor that is applicable to the
924950 charter school identified in this paragraph. The
925951 reduction shall become effective at the beginning of
926952 the month following the month the hearing of the
927953 sponsor is held by the State Board of Education.
928954 5. A charter school that is closed by the Stat e Board of
929955 Education pursuant to paragraph 4 of this subsection shall not be
930956 granted a charter by any other sponsor.
931957 6. The requirements of this subsection shall not apply to a
932958 charter school that has been designated by the State Department of
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933986 Education as implementing an alternative education program
934987 throughout the charter school.
935988 7. In making a school site closure deci sion, the State Board of
936989 Education shall consider the following:
937990 a. enrollment of students with special challenges such as
938991 drug or alcohol addiction, prior withdrawal from
939992 school, prior incarceration or other special
940993 circumstances,
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967994 b. high mobility of the student population resulting from
968995 the specific purpose of the charter school,
969996 c. annual improvement in the performance of students
970997 enrolled in the charter school compared with the
971998 performance of students enrolled in the charter school
972999 in the immediately pr eceding school year, and
9731000 d. whether a majority of students attending t he charter
9741001 school under consideration for closure would likely
9751002 revert to attending public schools with lower academic
9761003 achievement, as demonstrated pursuant to Section
9771004 1210.545 of this title.
9781005 8. If the State Board of Education has closed or transferred
9791006 authorization of at least twenty-five percent (25%) of the charter
9801007 schools chartered by one sponsor pursuant to paragraph 4 of this
9811008 subsection, the authority of the sponsor to authorize new charter
9821009 schools may be suspended by the Board until the Board approve s the
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9831037 sponsor to authorize new charter schools. A determination un der
9841038 this paragraph to suspend the authority of a sponsor to authorize
9851039 new charter schools shall identify the deficienci es that, if
9861040 corrected, will result in the approval of the sponsor to a uthorize
9871041 new charter schools.
9881042 H. If a sponsor terminates a contrac t or the charter school is
9891043 closed, the closure shall be conducted in accordance with the
9901044 following protocol:
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10171045 1. Within two (2) calendar weeks of a final closure
10181046 determination, the sponsor shall meet with the governing board and
10191047 leadership of the charter s chool to establish a transition team
10201048 composed of school staff, applicant staff and others designated by
10211049 the applicant that will attend to the closure, including the
10221050 transfer of students, st udent records and school funds;
10231051 2. The sponsor and transition team shall communicate regularly
10241052 and effectively with families of students enrolled in the charter
10251053 school, as well as with school staff and other stakeholders, to keep
10261054 them apprised of key info rmation regarding the closure of the school
10271055 and their options and r isks;
10281056 3. The sponsor and transition team shall ensure that current
10291057 instruction of students enrolled in the charter sch ool continues per
10301058 the charter agreement for the remainder of the schoo l year;
10311059 4. The sponsor and transition team shall ensure that all
10321060 necessary and prudent notifications are issued to agencies,
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10331088 employees, insurers, contractors, creditors, debtors and man agement
10341089 organizations; and
10351090 5. The governing board of the charter scho ol shall continue to
10361091 meet as necessary to take actions needed to wi nd down school
10371092 operations, manage school finances, allocate resources and
10381093 facilitate all aspects of closure.
10391094 I. A sponsor shall develop revocation and nonrenewal processes
10401095 that are consistent with the Oklahoma Charter Schools Act and that:
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10671096 1. Provide the charter school with a timely notification of the
10681097 prospect of revocation or nonrenewal and of the reasons for possible
10691098 closure;
10701099 2. Allow the charter school a reasonable amount of time in
10711100 which to prepare a response;
10721101 3. Provide the charter school with an opportunity to submit
10731102 documents and give testimony in a public hearing challenging the
10741103 rationale for closure and in sup port of the continuation of the
10751104 school at an orderly proceeding held f or that purpose and prior to
10761105 taking any final nonrenewal or revocat ion decision related to the
10771106 school;
10781107 4. Allow the charter school access to representation by counsel
10791108 to call witnesses on its behalf;
10801109 5. Permit the recording of the proceedings; and
10811110 6. After a reasonable period for deliberation, require a final
10821111 determination be made and conveyed in writing to the charter school.
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10831139 J. If a sponsor revokes or does not renew a charter, the
10841140 sponsor shall clearly state in a resolution the reasons for the
10851141 revocation or nonrenewal.
10861142 K. 1. Before a sponsor may issue a charter to a charter school
10871143 governing body board that has had its charter terminated or has been
10881144 informed that its charter will not be r enewed by the current
10891145 sponsor, the sponsor shall request to have the proposal reviewed by
10901146 the State Board of Education at a hearing . The State Board of
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11171147 Education shall conduct a hearing in which the sponsor shall present
11181148 information indicating that the pr oposal of the organizer is
11191149 substantively different in the areas of deficiency identified by the
11201150 current sponsor from the current pr oposal as set forth within the
11211151 charter with its current sponsor.
11221152 2. After the State Board of Education conducts a hearing
11231153 pursuant to this subsection, the Board shall either approve or den y
11241154 the proposal.
11251155 3. If the proposal is denied, no sponsor may issue a charter to
11261156 the charter school governing body board.
11271157 L. If a contract is not renewed, the governing board of the
11281158 charter school may submit an application to a proposed new sponsor
11291159 as provided for in Section 3-134 of this title.
11301160 M. If a contract is not renewed or is terminated according to
11311161 this section, a student who attended the charter school may enroll
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11321189 in the resident school dis trict of the student or may apply for a
11331190 transfer in accordance with Section 8-103 of this title.
11341191 SECTION 4. AMENDATORY 70 O.S. 2 021, Section 3-142, is
11351192 amended to read as follows:
11361193 Section 3-142. A. The student membership and attendance of the
11371194 charter school shall be considered separate from the student
11381195 membership and attendance of the sponsor for the purpose of
11391196 calculating enrollment and funding including weighted average daily
11401197 membership pursuant to Section 18 -201.1 of this title and State Aid
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11671198 pursuant to Section 18-200.1 of this title. A charter school shall
11681199 receive the State Aid allocation, federal funds to which it is
11691200 eligible and qualifies for and any other state-appropriated revenue
11701201 generated by its stu dents for the applicable year. Not more than
11711202 three percent (3%) of the State Aid allocation may be charged by the
11721203 sponsor as a fee for administrat ive services rendere d. For purposes
11731204 of this section, the fee for administrative services shall be used
11741205 by the sponsor to provide oversight and services to the charter
11751206 schools it sponsors. A charter school sponsor shall publish a
11761207 detailed report on its we bsite listing expenses related to oversight
11771208 and services provided by the sponsor to its charter schools. The
11781209 State Board of Education shall determine the policy and procedure
11791210 for making payments to a charter school. The fee for administrative
11801211 services as authorized in this subsection shall only be assessed on
11811212 the State Aid allocation amount and shall not be assessed on any
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11821240 other appropriated amounts. A sponsor of a charter sc hool shall not
11831241 charge any additional State Aid allocation or charge the charter
11841242 school any additional fee above the amounts allowed by this
11851243 subsection unless the additional fees are for additional services
11861244 rendered. The charter school sponsor shall provide to the State
11871245 Department of Education financial records documenting any state
11881246 funds charged by the sponsor for administrative services rendered
11891247 for the previous year.
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12161248 B. 1. The weighted average daily membership for the first year
12171249 of operation of a charter school shall be dete rmined initially by
12181250 multiplying the actual enrollment of students as of August 1 by
12191251 1.333. The charter school shall receive revenue equal to that which
12201252 would be generated by the estimated weighted average daily
12211253 membership calculated pursuant to this parag raph. At midyear, the
12221254 allocation for the charter scho ol shall be adjusted using the first
12231255 quarter weighted average daily membership for the charter school
12241256 calculated pursuant to subsection A of this section.
12251257 2. For the purpose of calculating weighted ave rage daily
12261258 membership pursuant to Section 18 -201.1 of this title and State Aid
12271259 pursuant to Section 18 -200.1 of this title, the weighted average
12281260 daily membership for the first year of operation of a full-time
12291261 statewide virtual charter school sponsored by the Statewide Virtual
12301262 Charter School Board shall be determined by multiplying the actual
12311263 enrollment of students as of August 1 by 1.333. The full -time
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12321291 virtual charter school shall receive revenue equal to that which
12331292 would be generated by the estimated weigh ted average daily
12341293 membership calculated pursuant to this paragraph. At midyear, the
12351294 allocation for the full-time statewide virtual charter school shall
12361295 be adjusted using the first quarter weighted average daily
12371296 membership for the virtual charter school ca lculated pursuant to
12381297 subsection A of this section.
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12651298 C. Except as explicitly authorized by state law, a charter
12661299 school shall not be eligib le to receive state-dedicated, local or
12671300 county revenue; provided, a charter school may be eligible to
12681301 receive any other aid, grants or revenues allowed to other schools.
12691302 A charter school shall be considered a local education agency for
12701303 purposes of funding.
12711304 D. Any unexpended funds received by a charter school may be
12721305 reserved and used for future purposes. The governing body board of
12731306 a charter school shall not levy taxes or issu e bonds. If otherwise
12741307 allowed by law, the governing body board of a charter school may
12751308 enter into private cont racts for the purposes of borrowing mo ney
12761309 from lenders. If the governing body board of the charter school
12771310 borrows money, the charter school shal l be solely responsible for
12781311 repaying the debt, and the state or the sponsor shall not in any way
12791312 be responsible or ob ligated to repay the debt.
12801313 E. Any charter school which chooses to lease property shall be
12811314 eligible to receive current government lease rat es.
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12821342 F. Except as otherwise provided in this subsection, each
12831343 charter school shall pa y to the Charter School Closure Reimbursement
12841344 Revolving Fund created i n subsection G of this section an amount
12851345 equal to Five Dollars ($5.00) per student based on average d aily
12861346 membership, as defined by paragraph 2 of Section 18-107 of this
12871347 title, during the first nine (9) weeks of the sc hool year. Each
12881348 charter school shall complete the payment every school year within
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13151349 thirty (30) days after the first nine (9) weeks of the school year.
13161350 If the Charter School Closure Reimbursement Revolving Fund has a
13171351 balance of One Million Dollars ($1,000 ,000.00) or more on July 1, no
13181352 payment shall be required the following school year.
13191353 G. There is hereby created in the State Treasury a rev olving
13201354 fund for the State Department of Education to be designated the
13211355 "Charter School Closure Reimbursement Revolvin g Fund". The fund
13221356 shall be a continuing fund, not subject to fiscal year limitations,
13231357 and shall consist of all monies received by the Stat e Department of
13241358 Education from charter schools as provided in subsection F of this
13251359 section. All monies accruing to t he credit of said fund are hereby
13261360 appropriated and may be budgeted and expended by the State
13271361 Department of Education for the purpose of rei mbursing charter
13281362 school sponsors for costs incurred due to the closure of a charter
13291363 school. Expenditures from said f und shall be made upon warrants
13301364 issued by the State Treasurer against claims filed as prescribed by
13311365 law with the Director of the Office of Management and Enterprise
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13321393 Services for approval and payment. The State Department of
13331394 Education may promulgate rules regarding sponsor eligibility for
13341395 reimbursement.
13351396 SECTION 5. AMENDATORY 70 O.S. 2021, Section 3-145.3, is
13361397 amended to read as follows:
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13631398 Section 3-145.3 A. Subject to the requirements of the Oklahoma
13641399 Charter Schools Act, the Statewide Virtual Charter School Board
13651400 shall:
13661401 1. Provide oversight of the operations of statewide virtual
13671402 charter schools in this state ;
13681403 2. Establish a procedure for accepting, approving and
13691404 disapproving statewide virtual charter school applications and a
13701405 process for renewal or revocation of approved charter school
13711406 contracts which minimally meet the procedures set forth in the
13721407 Oklahoma Charter Schools Act;
13731408 3. Make publicly available a list of supplemental online
13741409 courses which have been reviewed and certified by the Statewide
13751410 Virtual Charter School Board to ensure that the courses are high
13761411 quality options and are aligned with the subject matter standards
13771412 adopted by the State Board of Education pursuant to Section 11-103.6
13781413 of this title. The Statewide Virtual Charter School Board shall
13791414 give special emphasis on listing supplemental online cours es in
13801415 science, technology, engineering and math (STEM), foreign language
13811416 and advanced placement courses. School districts shall not be
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13821444 limited to selecting supplemental online courses that have been
13831445 reviewed and certified by the Statewide Virtual Charter School Board
13841446 and listed as provided for in this paragraph; and
13851447 4. In conjunction with the Office of Management and Enterprise
13861448 Services, negotiate and enter into contracts with supplemental
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14131449 online course providers to offer a state rate price to school
14141450 districts for supplemental online courses that have been reviewed
14151451 and certified by the Statewide Virtual Charter School Board and
14161452 listed as provided for in paragraph 3 of this subsection.
14171453 B. Except as otherwise provided by law, each sta tewide virtual
14181454 charter school which has been approved and sponsored by the Board
14191455 shall be subject to and comply with the requirements of the Oklahoma
14201456 Charter Schools Act. Each statewide virtual charter school which
14211457 has been approved and sponsored by the Board or any virtual cha rter
14221458 school for which the Board has assumed sponsorship of as provided
14231459 for in Section 3-145.5 of this title shall be considered a statewide
14241460 virtual charter school and , except as provided in subsection H of
14251461 this section, the geographic boundaries of each st atewide virtual
14261462 charter school shall be the borders of the state.
14271463 C. Each statewide virtual charter school approved by the
14281464 Statewide Virtual Charter School Board shall be eligible to receive
14291465 federal funds generated by students enrolled in the charter scho ol
14301466 for the applicable year. Each statewide virtual charter school
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14311494 shall be considered a separate local education agency for purposes
14321495 of reporting and accountability.
14331496 D. As calculated as provided for in Section 3 -142 of this
14341497 title, a statewide virtual cha rter school shall receive the State
14351498 Aid allocation and any other state-appropriated revenue generated by
14361499 students enrolled in the virtual charter school for the applicable
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14631500 year, less up to five percent (5%) three percent (3%) of the State
14641501 Aid allocation, which may be retained by the Statewide Virtual
14651502 Charter School Board for administrative expenses and to support the
14661503 mission of the Board. A statewide virtual charter school shall be
14671504 eligible for any other funding any other charter school is eligible
14681505 for as provided for in Section 3-142 of this title. Each statewide
14691506 virtual charter school shall be considered a separate local
14701507 education agency for purposes of reporting and accountability.
14711508 E. A virtual charter school or a charter school which contracts
14721509 with an educational management organization shall be subject to the
14731510 same reporting requirements, financial audits, audit procedures and
14741511 audit requirements as a school district and the compliance
14751512 requirements provided in Section 3 -136 of this title. The State
14761513 Department of Education or State Auditor and Inspector may c onduct
14771514 financial, program or compliance audits. A virtual charter school
14781515 or a charter school which contracts with an educational management
14791516 organization shall use the Oklahoma Cost Accounting System (OCAS) to
14801517 report financial transactions to the State Department of Education.
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14811545 An educational management organization , as defined in Section 5 -200
14821546 of this title, which contracts with more than one school district
14831547 shall not commingle funds of the schools.
14841548 F. A virtual charter school governing body board shall be
14851549 responsible for the policies that govern the operational decisions
14861550 of the virtual charter school. The governing body board of a
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15131551 virtual charter school shall be subject to the same conflict of
15141552 interest requirements as a member of a local school board inc luding,
15151553 but not limited to, Sections 5 -113 and 5-124 of this title. Members
15161554 appointed to the governing body board of a virtual charter schoo l
15171555 after July 1, 2019, shall be subject to the same instruction and
15181556 continuing education requirements as a member of a local school
15191557 board and pursuant to Section 5 -110 of this title, complete twelve
15201558 (12) hours of instruction within fifteen (15) months of ap pointment
15211559 to the governing body board, and pursuant to Section 5-110.1 of this
15221560 title, attend continuing education. The instruction and continuing
15231561 education shall include a minimum of two (2) hours of instruction
15241562 and continuing education by the State Auditor and Inspector or an
15251563 entity approved by the State Audito r and Inspector. Members
15261564 appointed to the governing boar d of a virtual charter school prior
15271565 to July 1, 2019, shall comply with the requirements of this
15281566 subsection and, within fifteen (15) months of the effective date of
15291567 this act, shall complete twelve (12 ) hours of instruction pursuant
15301568 to Section 5-110 of this title.
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15311596 G. Students enrolled full -time in a statewide virtual charter
15321597 school sponsored by the Statewide Virtual Charter School Board shall
15331598 not be authorized to participate in any activities administered by
15341599 the Oklahoma Secondary Schools Activities Association. However, the
15351600 students may participate in intramural activities sponsored by a
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15621601 statewide virtual charter school, an online provider for the charter
15631602 school or any other outside organization.
15641603 H. 1. Beginning with the 2021-2022 school year, a public
15651604 school student who wishes to enroll in a virtual charter school
15661605 shall be considered a transfer student from their resident school
15671606 district. A virtual charter school shall pre-enroll any public
15681607 school student whose parent expresses intent to enroll in the
15691608 district. Upon pre-enrollment, the State Department of Education
15701609 shall initiate a transfer on a form to be completed by the receiving
15711610 virtual charter school. Upon approval of the receiving virtual
15721611 charter school, the student may begin instructional activit ies.
15731612 Upon notice that a public school student has transferred to a
15741613 virtual charter school, the resident school district shall transmit
15751614 the student's records within three (3) school days.
15761615 2. The State Department of Education shall notify the
15771616 Legislature and Governor if it determines that the information
15781617 technology infrastructure necessary to process the transfer of
15791618 students to a virtual chart er school is inadequate and one (1)
15801619 additional school year is needed for implementation.
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15811647 3. A public school student may transfer to one statewide
15821648 virtual charter school at any time during a school year. For
15831649 purposes of this subsection , "school year" shall mean July 1 through
15841650 the following June 30. After one st atewide virtual charter school
15851651 transfer during a school ye ar, no public school student shall be
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16121652 permitted to transfer to any other statewide virtual charter school
16131653 without the concurrence of both th e resident school district and the
16141654 receiving virtual chart er school. A student shall have a grace
16151655 period of fifteen (15) school days from the first day of enrollment
16161656 in a statewide virtual charter school to withdraw without academic
16171657 penalty and shall cont inue to have the option of one virtual charter
16181658 school transfer without the concurrence of both districts during
16191659 that same school year. A statewide virtual charter school student
16201660 that has utilized the allowable one transfer pursuant to this
16211661 subsection shall not be permitted to transfer to another district or
16221662 other statewide virtual charter school without first notifying his
16231663 or her resident district and initiating a new transfer. Upon
16241664 cancellation of a transfer the virtual charter school shall transmit
16251665 the student's records to the student's new school district wit hin
16261666 three (3) school days. Students enrolled in a statewi de virtual
16271667 charter school shall not be required to submit a virtual charter
16281668 transfer for consecutive years of enrollment. Any student enrol led
16291669 in a statewide virtual charter school the year prior t o the
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16301697 implementation of this section shall not be required to submit a
16311698 transfer in order to remain enrolled.
16321699 4. For purposes of this subsection, "parent" shall mean the
16331700 parent of the student or per son having custody of the student as
16341701 provided for in parag raph 1 of subsection A of Section 1-113 of this
16351702 title.
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16621703 I. 1. A student shall be eligible to enroll in a statewide
16631704 virtual charter school if he or she is a student whose parent or
16641705 legal guardian is transferred or is pending transfer to a military
16651706 installation within this state while on active military duty
16661707 pursuant to an official military order.
16671708 2. A statewide virtual charter school shall accept applications
16681709 by electronic means for enrollment and c ourse registration for
16691710 students described in paragraph 1 of this subsection.
16701711 3. The parent or legal guardian of a s tudent described in
16711712 paragraph 1 of this subsection shall provide proof of residence in
16721713 this state within ten (10) days after the published a rrival date
16731714 provided on official documentation. A parent or legal guardian may
16741715 use the following addresses as proof of residence:
16751716 a. a temporary on-base billeting facility,
16761717 b. a purchased or leased home or apartment, or
16771718 c. federal government or p ublic-private venture off-base
16781719 military housing.
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16791747 4. The provisions of paragraph 3 of subsection H of this
16801748 section shall apply to students described in paragraph 1 o f this
16811749 subsection.
16821750 5. For purposes of this subsection:
16831751 a. "active military duty" means full-time military duty
16841752 status in the active uniformed service of the United
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17111753 States including members of the National Guard and
17121754 Military Reserve on active duty orders, and
17131755 b. "military installation " means a base, camp, post,
17141756 station, yard, center, homeport facility for any ship
17151757 or other installation under the jurisdiction of the
17161758 Department of Defense or the United States Coast
17171759 Guard.
17181760 J. A virtual charter school shall not accept or deny a transfer
17191761 based on ethnicity, national origin, gender, income level, disabling
17201762 condition, proficiency in the English language, measure of
17211763 achievement, aptitude or athletic ability.
17221764 K. The decision of the Statewide Virtual Charter School Board
17231765 to deny, nonrenew not renew, or terminate the charter contract of a
17241766 statewide virtual charter school may be appealed t o the State Board
17251767 of Education within thirty (30) days of the decision by the
17261768 Statewide Virtual Charter School Board. The State Board of
17271769 Education shall act on the appeal within sixty (60) days of receipt
17281770 of the request from the statewide virtual charter school applicant.
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17291798 The State Board of Education may reverse the decision of the
17301799 Statewide Virtual Charter School Board or may remand the matter back
17311800 to the Statewide Virtual Charter School Board for further proceeding
17321801 as directed.
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17591802 SECTION 6. NEW LAW A new section of law to be codified
17601803 in the Oklahoma Statutes as Se ction 3-145.9 of Title 70, unless
17611804 there is created a duplication in numbering, reads as follows:
17621805 A. Beginning with the 202 3-2024 school year, any governing
17631806 board of a charter school which contracts with an educational
17641807 management organization as defined in Section 5-200 of Title 70 of
17651808 the Oklahoma Statutes shall:
17661809 1. Consist of a minimum of five (5 ) members, including one
17671810 member who shall be a parent, grandparent, legal guardian or
17681811 learning coach of a stu dent who attends the charter school. As used
17691812 in this paragraph, "learning coach" means a designated person who
17701813 has the primary responsibility of b eing actively involved in all
17711814 school-related work and activities of a student. The bylaws of the
17721815 charter school shall set specific terms of service for charter
17731816 school governing board members;
17741817 2. Meet at least one time per month;
17751818 3. Adopt a charter which shall ensure compliance with the same
17761819 requirements and guidelines as provided in Section 3 -136 of Title 70
17771820 of the Oklahoma Statutes;
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17781848 4. Appoint a board clerk, m inute clerk and encumbrance clerk as
17791849 provided in Section 5 -119 of Title 70 of the Oklahoma Sta tutes and a
17801850 treasurer as provided in Section 5 -114 of Title 70 of the Oklahoma
17811851 Statutes. Upon appointment, t he board clerk, minute clerk,
17821852 encumbrance clerk and t reasurer shall attend and complete at least
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18091853 eight (8) hours of instruction offered by the Offi ce of the State
18101854 Auditor and Inspector or other organization s or associations
18111855 representing school administrators or district boards of education
18121856 in this state as approved by the State Auditor and Inspector. Each
18131857 year the encumbrance clerk and treasurer sha ll complete at least
18141858 three (3) hours of continuing education offered by the Office of the
18151859 State Auditor and Inspector or other organizations or associations
18161860 representing school administrators or district boards of education
18171861 in this state as approved by the State Auditor and Inspector . If
18181862 the board clerk, minute clerk, encumbrance clerk or treasurer is
18191863 also a member of the charter school governing board, his or her
18201864 completed instruction and continuing education requirements in this
18211865 paragraph shall count t oward the board instruction and continuing
18221866 education requirements provided in subsection F of Section 3 -145.3
18231867 of Title 70 of the Oklahoma Statutes; and
18241868 5. Submit to the State Department of Education copies of any
18251869 contract executed between the charter scho ol governing board or
18261870 charter school sponsor governing board and an educational management
18271871 organization. The Department and the sponsor shall publish the
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18281899 contracts on their websites and the Department shall publish a list
18291900 of all the management fees paid b y charter schools or charter school
18301901 sponsors to educational management organizations.
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18571902 B. Beginning with the 2023-2024 school year, members of a
18581903 charter school governing board which contracts with an educational
18591904 management organization shall:
18601905 1. Be subject to the instruction and continuing education
18611906 requirements as provided in subsection F of Section 3-145.3 of Title
18621907 70 of the Oklahoma Statutes;
18631908 2. Be subject to the same conflict of interest requirements as
18641909 a member of a local school board including, but not limited to,
18651910 Sections 5-113 and 5-124 of Title 70 of the Oklahoma Statutes. No
18661911 member shall receive pecun iary gain, incidentally or otherwise, from
18671912 the earnings of the educational management organization or school;
18681913 and
18691914 3. Not be appointed or selected by any person affiliated with
18701915 the educational management organization.
18711916 SECTION 7. NEW LAW A new section of law to be codified
18721917 in the Oklahoma Statutes as Section 3-145.10 of Title 70, unless
18731918 there is created a duplication in numbering, reads as follows:
18741919 A. Beginning with the 202 3-2024 school year, members of a
18751920 charter school sponsor governing board that sponsors a charter
18761921 school which contracts with an educational management or ganization
18771922 shall complete instruction and continuing education.
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18781950 1. The instruction and continuing education shall be provided
18791951 in accordance with Sections 5-110 and 5-110.1 of Title 70 of the
18801952 Oklahoma Statutes and shall include a minimum of two (2) hours o f
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19071953 instruction and continuing education by the Office of the State
19081954 Auditor and Inspector or an entity approved by the State Auditor and
19091955 Inspector.
19101956 2. The governing board of a charter school sponsor shall pay
19111957 for the costs of ins truction and continuing educ ation for its board
19121958 members.
19131959 3. Each member shall complete at least twelve (12) hours of
19141960 instruction within the first year of his or her appointment or
19151961 within fifteen (15) months after the effective date of this act.
19161962 4. After completing the initial twelve (12) hours of
19171963 instruction provided in paragraph 3 of this sub section, each member
19181964 shall annually complete at least three (3) hours of continuing
19191965 education.
19201966 B. As used in this section, "educational management
19211967 organization" shall have the same meaning as in Section 5-200 of
19221968 Title 70 of the Oklahoma Statutes.
19231969 SECTION 8. NEW LAW A new section of law to be codified
19241970 in the Oklahoma Statutes as Section 3-145.11 of Title 70, unless
19251971 there is created a duplicatio n in numbering, reads as follows:
19261972 A. 1. State funds appropriated to any charter school whi ch
19271973 contracts with an educat ional management organization as defined in
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19282001 Section 5-200 of Title 70 of the Okl ahoma Statutes, including the
19292002 State Aid allocation and an y other state-appropriated revenue
19302003 pursuant to Section 3-142 of Title 70 of the Oklahoma Sta tutes,
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19572004 shall remain public funds maintained in public accounts subject to
19582005 audit, transparency, oversight an d financial reporting and shall not
19592006 be transferred or con verted in any way to private funds except for
19602007 funds which are paid for charter school expens es and funds which are
19612008 paid to the educational management organization from the charter
19622009 school pursuant to the terms of the contract and in accordance with
19632010 state law and Internal Revenue Service requirements. If there is
19642011 any question or potential discrepancy regarding use of funds paid to
19652012 the educational management organization by the State Department of
19662013 Education, charter school governing board, or charter school
19672014 sponsor, the educational management organization shall provide
19682015 invoices and financial document ation to the requesting ent ity
19692016 proving the educational management organization is following the
19702017 terms of the contract and is in compliance with the law .
19712018 2. Any state funds which are designated as s tudent learning
19722019 funds are appropriated for the benefit of the student, including
19732020 extracurricular and educational activity funds, and shall remain
19742021 public funds maintained in public accounts subject to audit,
19752022 transparency, oversight and financial reporting and expended in
19762023 accordance with purchasing requirements pro vided in Section 5-135 of
19772024 Title 70 of the Oklahoma Statutes. Students shall receive a grade
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19782052 for participation in extracurricular or educational activities as
19792053 described in this subsection.
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20062054 3. Any property purchased with public funds pursuant to this
20072055 section may be assigned to emplo yees or students of the charter
20082056 school for charter school employment or extracurricular or
20092057 educational purposes, but shall remain public property of the
20102058 charter school.
20112059 B. In the third year of the charter school contract term, the
20122060 State Auditor and Inspecto r or an auditor selected from a list of
20132061 auditors approved and maintained by t he State Auditor and Inspector
20142062 shall conduct an operating agreement review of each charter sch ool
20152063 which contracts with an educational management organiz ation to
20162064 verify that the charter school and the educational management
20172065 organization are following the te rms of the contract and complying
20182066 with state law and Internal Revenue Service requirements . The
20192067 auditor may request additional documentation from the c harter school
20202068 or educational management organization to address any question or
20212069 potential discrepancy. The charter school sponsor shall pay for the
20222070 expenses related to the review, oversee the revie w and provide a
20232071 full report of the review to the governing boards of the charter
20242072 school and the charter school sponsor.
20252073 C. Every provider or entity that contract s with a charter
20262074 school for expenditure of state funds pu rsuant to paragraph 2 of
20272075 subsection A of this section shall:
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20282103 1. Have an agreement in writing with the charter school which
20292104 clearly states the goods or services being provided by the provider
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20562105 or entity pursuant to the contract and the costs thereof and that
20572106 such goods, services and employees of the provider or entity comply
20582107 with federal and state la ws; and
20592108 2. Have on file with the State Department of Education a
20602109 current Oklahoma criminal history reco rd check from the Oklahoma
20612110 State Bureau of Investigation or equivalent criminal history record
20622111 check from another state as well as a national criminal h istory
20632112 record check as defi ned in Section 150.9 of Title 74 of the Oklahoma
20642113 Statutes for every owner and employee of the provider or entity who
20652114 will have contact with students pursuant to the contra ct. Upon
20662115 receipt of the Oklahoma criminal history record check or equivalent
20672116 criminal history record check from another state, the provider or
20682117 entity may begin extracurricular or educational activities until
20692118 receipt of the national criminal history record check. The provider
20702119 or entity shall be responsible for t he cost of the criminal his tory
20712120 record checks. Results of the check s shall be included as a
20722121 requirement of the contract and reported to the governing board of
20732122 the charter school.
20742123 D. An educational management organization shall not:
20752124 1. Manage or control the governing board of a ch arter school,
20762125 including, but not limited to, setting meeting agendas, adoptin g
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20772153 charter school policies or making budget decisions on behalf of the
20782154 charter school;
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21052155 2. Employ a charter school superintendent who is also an owner
21062156 of the educational management organization, unless the ownership
21072157 stake held by the superintendent is less than ten percent (10%);
21082158 3. Employ legal counsel who also represents the charter school
21092159 or charter school governing board which has an agreement with the
21102160 educational management organiz ation; and
21112161 4. Request public employees , including, but not limited to,
21122162 teachers and other charter school employees , to complete tasks or
21132163 perform duties that the educational management organization has been
21142164 contracted to fulfill .
21152165 SECTION 9. AMENDATORY 70 O.S. 2021 , Section 5-200, is
21162166 amended to read as follows:
21172167 Section 5-200. A. As used in this section, "educational
21182168 management organization " means a for-profit or nonprofit
21192169 organization that receives public funds to provide administr ation
21202170 and management services for a charter school, statewide virtual
21212171 charter school or traditional public school.
21222172 B. A charter school that contracts with an educational
21232173 management organizati on shall use the Oklahoma Cost Accoun ting
21242174 System (OCAS) to repor t the total amount paid to an educational
21252175 management organization pursuant to the terms of the contract as
21262176 well as actual itemized expenditure information for the goods or
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21272204 services provided by the management organization as defin ed by OCAS
21282205 expenditure codes, including the total compensation package of the
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21552206 superintendent inclu ding the base salary, insurance, retirement and
21562207 other fringe benefits.
21572208 C. Any Pursuant to Internal Revenue Service guidelines, any
21582209 owner of an educational ma nagement organization shall be required to
21592210 disclose to the governing board of the school in a publ ic meeting
21602211 any ownership position in any business that co ntracts or proposes to
21612212 contract with the same public school that the educational management
21622213 organization is managing.
21632214 D. Whenever any person shall enter into a c ontract with any
21642215 school district or p ublic charter school in the state to teach in
21652216 such school district or public charter school the contract shall be
21662217 binding on the teacher and on the board of e ducation until the
21672218 teacher legally has been discharged from t he teaching position or
21682219 released by the board of education from the contract. Except as
21692220 provided in Section 5-106A of Title 70 of the Oklahoma Statutes this
21702221 title, until such teacher has been th us discharged or released, the
21712222 teacher shall not have authority to enter into a contract with any
21722223 other board of education in Oklahoma for the same time co vered by
21732224 the original contract. If upon written complaint by the board of
21742225 education in a district an y teacher is reported to ha ve failed to
21752226 obey the terms of the contract p reviously made and to have entered
21762227 into a contract with another board of education, including a public
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21772255 charter school board of education, without having been released from
21782256 the former contract except as provided in Section 5-106A of Title 70
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22052257 of the Oklahoma Statutes this title, the teacher, upon being found
22062258 to be employed full-time for another public school, including a
22072259 public charter school in the state, at a hearing held before the
22082260 State Board of Education, shal l have such teacher's certificate
22092261 suspended for the rema inder of the term for which the contract was
22102262 made.
22112263 SECTION 10. AMENDATORY 70 O.S. 2021, Section 18 -124, is
22122264 amended to read as follows:
22132265 Section 18-124. A. Any school district with an average daily
22142266 attendance (ADA) of more than one thousand five hundred (1,500)
22152267 students for the preceding year which exp ends for administrative
22162268 services in the 2005 -06 school year or any s chool year thereafter,
22172269 less expenditures for legal services, more than five percent (5%) of
22182270 the amount it expends for total expendi tures, less expenditures for
22192271 legal services, shall have t he amount which exceeds the five percent
22202272 (5%) withheld the following year from the Foundation and Sal ary
22212273 Incentive Aid for the school district.
22222274 B. Any school district with an average daily attendanc e (ADA)
22232275 of more than five hundred (500) students but not more than one
22242276 thousand five hundred (1,500) students for the precedi ng year which
22252277 expends for administrative services in the 2005 -06 school year or
22262278 any school year thereafter, less expenditures for l egal services,
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22272306 more than seven percent (7%) of the amount it expends for total
22282307 expenditures, less expenditures for legal serv ices, shall have the
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22552308 amount which exceeds the seven percent (7%) withheld the following
22562309 year from the Foundation and Salary Incenti ve Aid for the school
22572310 district.
22582311 C. Any school district w ith an average daily attendance (ADA)
22592312 of five hundred (500) or fewer students for the preceding year which
22602313 expends for administrative services in the 2005 -06 school year or
22612314 any school year thereafter , less expenditures for legal services,
22622315 more than eight percent (8%) of the amount it expends for total
22632316 expenditures, less ex penditures for legal services, sh all have the
22642317 amount which exceeds the eight percent (8%) withheld the following
22652318 year from the Foundation and Salary Incentive Aid for the school
22662319 district.
22672320 D. The provisions of this section shall apply to charter
22682321 schools which contract with an educational management organization,
22692322 as defined in Section 5 -200 of this title. The expenditure limits
22702323 shall not exceed the percentages prescribed in subsections A, B , and
22712324 C of this section, and the calculation of administrative servic es
22722325 for charter schools which contract wit h an educational management
22732326 organization shall be the combined amount of administrative s ervices
22742327 expended by the charter school and the educationa l management
22752328 organization.
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22762356 E. For purposes of this section, "administrative services"
22772357 means costs associated with:
22782358 1. Staff for the board of education;
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23052359 2. The secretary/clerk for the board of educ ation;
23062360 3. Staff relations;
23072361 4. Negotiations staff;
23082362 5. Immediate staff of the superintendent, any elementary
23092363 superintendent or any as sistant superintendent;
23102364 6. Any superintendent, elementary superintendent, or assistant
23112365 superintendent;
23122366 7. Any employee of a school district employed as a director,
23132367 coordinator, supervisor, or who has responsibility for
23142368 administrative functions of a schoo l district; and
23152369 8. Any consultant hired by the school district ; and
23162370 9. Any costs for administrative services paid to an educational
23172371 management organization as defined in Section 5-200 of this title.
23182372 E. F. If an employee of a school district is employed in a
23192373 position where part of the e mployee's time is spent as an
23202374 administrator and part of the time is spen t in nonadministrative
23212375 functions, the percentage of time spent as an admin istrator shall be
23222376 included as administrative services. A superintendent who spends
23232377 part of the time performing exempted nonadministrative services such
23242378 as teaching in the classroom, serving as a principal, counselor, or
23252379 library media specialist, can code up to forty percent (40%) of
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23262407 their salary to other nonadministrative function s. The total amount
23272408 of time a superintendent of a school district spends performing
23282409 services for a schoo l district shall be included as administrative
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23552410 services even if part of th e time the superintendent is performing
23562411 nonexempted nonadministrative service functions. The total amount
23572412 received by a superintendent from the school district as salary, for
23582413 the performance of administrative and nonexempted nonadministrative
23592414 services, shall be recorded under the code for superintendent salary
23602415 as provided for in t he Oklahoma Cost Accounting Syste m.
23612416 F. G. Each school site within a school district shall take
23622417 steps to ensure that the administrative costs for the school comply
23632418 with the expenditure limits established for school districts in this
23642419 section.
23652420 G. H. Funds withheld pursuant to the provision s of this section
23662421 shall be distributed through the State Aid formula to the di stricts
23672422 not so penalized.
23682423 H. I. For the 2003-04 and 2004-05 school year, school districts
23692424 shall report to the State Department of Education the costs
23702425 associated with administrat ive services for the school district as
23712426 defined in subsection D E of this section.
23722427 SECTION 11. This act shall become effective July 1, 2023.
23732428 SECTION 12. It being immediately necessary for the preservation
23742429 of the public peace, health or safety, an emergency is hereby
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23752457 declared to exist, by reason whereof thi s act shall take effect and
23762458 be in full force from and after its passage and approval.
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2403-Passed the House of Representatives the 21st day of March, 2023.
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2407-
2408- Presiding Officer of the House
2409- of Representatives
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2412-Passed the Senate the ____ day of __________, 2023.
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2417- Presiding Officer of the Senate
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2460+COMMITTEE REPORT BY: COMMITTEE ON COMMON EDUCATION, dated 02/28/2023
2461+- DO PASS.