ENGR. H. B. NO. 2414 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. 2414 By: Johns and Waldron of the House and Pemberton of the Senate An Act relating to schools; amending 70 O.S. 20 21, Sections 3-135, 3-136, 3-137, and 3-142, which relate to the Oklahoma Charter Schools Act; requiring charter school to provide certain notice to sponsor; directing sponsor to use performance framework for charter school evaluation; authorizing development of certain separate framework; adding minimum requirements for framework; mandating annual evaluation; directing presentation of results to certain governing boards; defining term; subjecting charter school to certain spending limitations; prohibiting charter school from providing inst ruction to certain students; directing charter school governing board to comply with certain acts; subjecting charter school sponsor governing board to certain conflict of interest requirements; modifying procedures for charter school contracts; requiring sponsor to develop a corrective action plan; authorizing nonrenewal of contract in certain cases; specifying how sponsor fee should be used; requiring sponsor to publish certain report on its website; amending 70 O.S. 2021, Section 3-145.3, which relates to duties of the Statewide Virtual Charter S chool Board; requiring compliance with the Oklahoma Charter Schools Act; modifying limitation on fee for administrative expenses and supp ort; subjecting certain charter schools to the same purchasing procedures and compliance requirements as school districts; prohibiting commingling of certain school funds; modifying instruction and continuing education obligations for certain governing bo ard members; establishing requirements for governing boards which contract with educational management organizations ; prescribing duties for board membership; requiring State Department of Education and sponsor to publish ENGR. 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NO. 2414 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 certain contracts on their websites ; directing Department to publish list of fees paid; subjecting certain board members to instruction and continuing education requirements; prohibiting certain conflicts of interest and pecuniary gain; disallowing certain appointments or selections of memb ers; requiring sponsor board members to complete instruction and continuing education requirements; specifying entity to pay for instruction and continuing education; prescribing requirements for instruction and continuing education; defining term; designa ting certain funds as public funds; prohibiting transfer or conversion of state funds to private funds; clarifying provision; requiring payments from charter schools to comply with certain provisions; directing organization to provide certain documents; subjecting certain funds to audit, transparency, oversight and financial reporting; requiring certain funds to remain public funds; prescribing grade for participation in certain extracurricular or educational activities; declaring certain property to remain public property of the charter school; mandating an operating agreement rev iew of certain charter schools; establishin g procedures for review; requiring written agreement for certain expenditures; mandating criminal history record checks for certain personnel; prescribing process and payment of checks; prohibiting certain activit ies by educational management organizations ; amending 70 O.S. 2021, Section 5-200, which relates to educational management organizations ; requiring amounts paid to certain organizations be pursuant to contract terms; mandating disclosure pursuant to certai n guidelines; amending 70 O.S. 2021, Section 18-124, which relates to limitations on administrative services expenditures; providing app licability of limitation to certain charter schools; clarifying calculation for specified schools; modifying definition; providing for codification; providing an effective date; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: ENGR. H. B. NO. 2414 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 SECTION 1. AMENDATORY 70 O.S. 2021, Section 3 -135, is amended to read as foll ows: Section 3-135. A. The sponsor of a charter school shall enter into a written contract with the governing body board of the charter school. The contract shall incorporate the provisions of the charter of the charter school and contain, but shall not be limited to, the following provisions: 1. A description of the program to be offered by the school which complies with the purposes outlined in Section 3 -136 of this title; 2. Admission policies and p rocedures; 3. Management and administration of the charter school, including that a majority of the charter governing board members are residents of the State of Oklahoma and meet no less than quarterly in a public meeting within the boundaries of the sch ool district in which the charter school is located or within the State of Oklahoma in the instance of multi ple charter school locations by the same sponsor; 4. Requirements and procedures for program and financial audits; 5. A description of how the cha rter school will comply with the charter requirements set forth in the Oklahoma Charter Schools Act; 6. Assumption of liability by the charter school; 7. The term of the contract; ENGR. H. B. NO. 2414 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 8. A description of the high standards of expectation and rigor for charter school plans and assurance that charter school p lans adopted meet at least those standards; 9. Policies that require that the charter school be as equally free and open to all students as traditional public schools; 10. Procedures that require student s enrolled in the charter school to be selected by lottery to ensure fairness if more students apply than a school has the capacity to accommodate; 11. Policies that require the charter school to be subject to the same academic standards and expectations as existing public schools; and 12. A description of the requirements and procedures for the charter school to receive funding in accordance with statutory requirements and guidelines for existing public schools ; and 13. A requirement to promptly notify the sponsor in the instance of any significant adverse actions, material findings of noncompliance, or pendi ng actions, claims, or proceedings in this state relating to the charter school or an education al management organization with which the charter school has a contract . B. A charter school shall not enter into an employment contract with any teacher or oth er personnel until the charter school has a contract with a sponsoring school district. The employment contract shall set forth the personnel policies of the charter school, including, but not limit ed to, policies related to certification, ENGR. H. B. NO. 2414 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 professional development evaluation, suspension, dismissal and nonreemployment, sick leave, personal business leave, emergency leave, and family and medical leave. The contract shall also specifically set forth th e salary, hours, fringe benefits, and work conditions. The contract may provide for employer-employee bargaining, but the charter school shall not be required to comply with the provisions of Sections 509.1 through 509.10 of this title. The contract shall conform to all applicable provisions set forth in Section 3-136 of this title. Upon contracting with any teacher or other personnel, the governing body board of the charter school shall, in writing, disclose employment rights of the employees in the eve nt the charter school closes or the charter is not renewed . No charter school may begin serving students without a charter contract executed in accordance with the provisions of the Oklahoma Charter Schools Act and approved in an open meeting of the sponso r. The sponsor may establish reasonable preopening requir ements or conditions to monitor the start -up progress of newly approved charter schools and ensure that each school is prepared to open smoothly on the date agreed and to ensure that each school me ets all building, health, safety, insurance and other lega l requirements for the opening of a school. C. The performance provisions within the charter contract shall be based on a performance framework that clearly sets forth the ENGR. H. B. NO. 2414 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 academic and operational performance indicators, measures and metrics that will guide the evaluations of the shall be used by charter school sponsor s to evaluate their respective charter school by the sponsor schools. The sponsor may develop a separate performance framework to ev aluate a charter school that has been designated by the St ate Department of Education to implement an alternative education program throughout the charter school . The sponsor shall require a charter school to submit the data required in this section in the identical format that is required by the State Department of Education of all public schools in order to avoid duplicative administrative efforts or allow a charter school to provide permission to the Department to share all required data with the sponsor of the charter school. The performance framework shall serve as the minimum requirement for charter school performance evaluation and shall include, but not be limited to, the following indicators, measures and metrics for, at a minimum : 1. Student academic proficiency; 2. Student academic growth; 3. Achievement gaps in both proficiency and growth between major student subgroups; 4. Student attendance; 5. Recurrent enrollment from year to year as determined by the methodology used for public scho ols in Oklahoma; ENGR. H. B. NO. 2414 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 6. In the case of high schools, graduation rates as determined by the methodology used for public schools in Oklahoma; 7. In the case of high schools, postsecondary readin ess; 8. Financial performance and sustainability and compliance with state and Internal Revenue Service financial reporting requirements; and 9. Audit findings or deficiencies; 10. Accreditation and timely reporting; and 11. Governing board performance and stewardship, including compliance with all applicable laws, r egulations and terms of the charter contract. The sponsor shall annually evaluate its charter schools according to the performance framework. The results of the evaluation shall be presented to the governing board of the charter school and the governing board of the charter school sponsor in an open meeting and posted on the website of the charter school. D. The sponsor shall not request any metric or data from a charter school that it does not produce or publish for all school sites in the district or un der its sponsorship, unless the metric or data is unique to a charter school. E. A charter contract may provide for one or more schools by an applicant to the extent approved by the sponsor and consistent with applicable law. An applicant or the governin g board of an applicant may hold one or more charter contract s. Each charter school that is ENGR. H. B. NO. 2414 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 part of a charter contract shall be separate and distinct from any other charter school under the same charter contract. For the purposes of this subsection, "separate and distinct" shall mean a charter school governing board with oversight of more than one charter school shall not combine accounting, budgeting, recordkeeping, admissions, employment or policies and operational decisions of the charter school s it oversees. SECTION 2. AMENDATORY 70 O.S. 2021, Section 3-136, is amended to read as follows: Section 3-136. A. A charter school shall adopt a charter which will ensure compliance with the following: 1. A charter school shall compl y with all federal regulations and state and local rules and statutes relating to health, safety, civil rights and insurance. By January 1, 2000, the State Department of Education shall prepare a list of relevant rules and statutes which a charter school must comply with as required by this paragraph and shall annu ally provide an update to the list; 2. A charter school shall be nonsectarian in its programs, admission policies, employment practices, and all other operations. A sponsor may not authorize a charter school or program that is affiliated with a nonpublic sectarian school or religious institution; 3. The charter school may provide a comprehensive program o f instruction for a prekindergarten program, a kindergarten program or ENGR. H. B. NO. 2414 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 any grade between gr ades one and twelve. Instruction may be provided to all pers ons between the ages of four (4) and twenty-one (21) years of age. A charter school may offer a curricu lum which emphasizes a specific learning philosophy or style or certain subject areas such as mathematics, science, fine arts, performance arts, or foreign language. The charter of a charter school which offers grades nine through twelve shall specificall y address whether the charter school will comply with the graduation requirements established in Section 11-103.6 of this title. No charter school shall be chartered for the purpose of offering a curriculum for deaf or blind students that is the same or s imilar to the curriculum being provided by or for educating deaf or blind students that are being served by the Oklahoma School for the Blind or the Okl ahoma School for the Deaf; 4. A charter school shall participate in the testing as required by the Okla homa School Testing Program Act and the reporting of test results as is required of a schoo l district. A charter school shall also provide any necessar y data to the Office of Accountability; 5. Except as otherwise provided for in the Oklahoma Charter Schools Act and its charter, a charter school shall be exempt from all statutes and rules rela ting to schools, boards of education, and school districts; ENGR. H. B. NO. 2414 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 6. A charter school, to the extent possible, shall be subject to the same reporting requirements, financ ial audits, audit procedures, and audit requirements as a school district. The State Department of Education or State Auditor and Inspector may conduct financial, program, or compliance audits. A charter school shall use the Oklahoma Cost Accounting Syst em to report financial transactions to the sponsoring school district or sponsor. The charter school shall be subject to the limitations on spending , including provisions of the Oklahoma Constitution , for any funds received from the state, either through th e State Department of Education or other sources ; 7. A charter school shall comply with al l federal and state laws relating to the education of child ren with disabilities in the same manner as a school district; 8. A charter school shall provide for a go verning body board for the school which shall be responsible for the policies and operational decisions of the charter school; 9. A charter school sh all not provide or otherwise supplement instruction of students enrolled in private schools or be used as a method of generating revenue for students who are being home schooled and are not being e ducated at an organized charter school site; 10. A charter school may shall not charge tuition or fees; ENGR. H. B. NO. 2414 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 11. A charter school shall provide instruction each yea r for at least the number of days or hours required in Section 1 -109 of this title; 12. A charter school shall comply with the student suspension requirements provided for in Section 24-101.3 of this title; 13. A charter school shall be considered a school d istrict for purposes of tort liability under The Governmental Tort Claims Act; 14. Employees of a charter school may participate as members of the Teachers' Retirement System of Oklahoma in accordance with applicable statutes and rules if otherwise allowe d pursuant to law; 15. A charter school may participate in all health and related insurance programs available to the employees of the sponsor of the charter school; 16. A charter school and charter school governing board shall comply with the Oklahoma O pen Meeting Act and the Oklahoma Open Records Act; 17. The governing body board of a charter school and the governing board of a charter school spons or shall be subject to the same conflict of interest requirements as a member of a local school board; and 18. No later than September 1 of each year, the governing board of each charter school fo rmed pursuant to the Oklahoma Charter Schools Act shall pre pare a statement of actual income and expenditures for the charter school for the fiscal year that ended ENGR. H. B. NO. 2414 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 on the preceding June 30, in a manner compliant with Section 5 -135 of this title. The state ment of expenditures shall include functional categories as defined in rules adopted by the State Board of Education to implement the Oklahoma Cost Accounting System pursuant to Section 5 -145 of this title. Charter schools shall not be permitted to submit estimates of expenditures or prorated amounts to fulfill the requirements of this paragraph. B. The charter of a charter school shall include a description of the personnel policies, personnel qualifications, and method of school governance, and the spec ific role and duties of the sponsor of the charter school. C. The charter of a charter school may be amended at the request of the governing body board of the charter school and upon the approval of the sponsor. D. A charter school may enter into contrac ts and sue and be sued. E. The governing body board of a charter school may shall not levy taxes or issue bonds. F. The charter of a charter school shall include a provision specifying the method or methods to be employed for disposing of real and personal property acquired by the charter school upon expiration or termination of the charter or failure of the charter school to continue operations. Except as otherwis e provided, any real or personal property purchased with state or local funds shall ENGR. H. B. NO. 2414 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 be retained by the sponsoring school district or sponsor of the charter school. If a charter school that was previously sponsored by the board of education of a school dis trict continues operation within the school district under a new charter sponsored by an entity authorized pursuant to Section 3 -132 of this title, th e charter school may retain any personal property purchased with state or local funds for use in the opera tion of the charter school until termination of the new charter or failure of the charter s chool to continue operations. SECTION 3. AMENDATORY 70 O.S. 2021, Section 3 -137, is amended to read as follows: Section 3-137. A. An The first approved contract for between a charter school and its sponsor shall be effective for five (5) years from the first day of operation. A charter contract may be renewed for successive five-year terms of duration, although the sponsor may vary the term based on the performance, demonstrated capacities and particular circumstances of each ch arter school. A sponsor may grant renewal with specific co nditions for necessary improvements to a charter school. B. Prior to the beginning of the fourth year of operation of a charter school, the sponsor shall issue a ch arter school performance report and charter renewal application guidance to the school and the charter school governing board. The performance report shall summarize the performance record to date of the charter school, ENGR. H. B. NO. 2414 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 based on the data required by the Oklahoma Ch arter Schools Act, the annual performance framework evaluation, the operating agr eement review if the charter school contracts with an educational management organization, and the charter contract and taking into consideration the percentage of at -risk students enrolled in the school, and. The performance report shall provide notice o f any weaknesses or, concerns, violations, or deficiencies perceived by the sponsor concerning the charter school that may jeopardize its position in seeking renewal if not tim ely rectified, and the charter school sponsor shall develop a corrective action plan and corresponding timeline to remedy any violations or deficiencies . The charter school shall have forty -five (45) days to respond t o the performance report and submit an y corrections or clarif ications for the report. If the charter school does not substantially complete the corrective action plan developed by the sponsor, the sponsor may choose not to renew the charter contract pursuant to the requirements of this section . C. 1. Prior to the beginning of the fifth year of operation, the charter school may apply for renewal of the contract with the sponsor. The renewal application guidanc e shall, at a minimum, provide an opportunity for the charter school to: a. present additional e vidence, beyond the data contained in the performance report, suppo rting its case for charter renewal, ENGR. H. B. NO. 2414 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 b. describe improvements undertaken or planned for the school, and c. detail the plan for the next charter term for the school. 2. The renewal applicati on guidance shall include or refer explicitly to the criteria that will guide the renewal decisions of the sponsor, which shall be based on the performance fram ework set forth in the charter contract and consistent with the Oklahoma Charter Schools Act. D. The sponsor may deny the request for renewal if it determines the charter school has failed to complete the obligations of the contract or comply with the pro visions of the Oklahoma Charter Schools Act. A sponsor shall give written notice of its intent to deny the request for renewal at least eight (8) months prior to expiration of the contract. In making charter renewal decisions, a sponsor shall: 1. Ground decisions on evidence of the performance of the school over the term of the charter contract in accordance with the performance framework set forth in the charter contract and shall take into consideration the percentage of at -risk students enrolled in the school; 2. Grant renewal to schools that have achieved the standards, targets and performance expectations as stated in the charter ENGR. H. B. NO. 2414 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 contract and are organizatio nally and fiscally viable and have been faithful to the terms of the contract and applicable law; 3. Ensure that data used in making renewal decisions are available to the school and the p ublic; and 4. Provide a public report summarizing the evidence use d as the basis for each decision. E. If a sponsor denies a request for renewal, the governin g board of the sponsor may, if requested by the charter school, proceed to binding arbitration a s provided for in subsection G of Section 3-134 of this title. F. A sponsor may terminate a contract during the term of the contract for failure to meet the re quirements for student performance contained in the contract and performance framework, failure to meet the standards of fiscal management, violations of the law or other good cause. The sponsor shall give at least ninety (90) days' written notice to the governing board prior to terminating the contract. The governing board may request, in writing, an informal hearing before the sponsor within fourteen (14) days of receiving notice. The sponsor shall conduct an informal hearing before taking action. If a sponsor decides to termi nate a contract, the governing board may, if requested by the charter school, proceed to binding arbitration as provided for in subsectio n G of Section 3-134 of this title. ENGR. H. B. NO. 2414 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G. 1. Beginning in the 2016 -2017 school year, the State Board of Education shall identify charter schools in the state that are ranked in the bottom fi ve percent (5%) of all public schools as determined pursuant to Sec tion 1210.545 of this title. 2. At the time of its charter renewal, based on an average of the current year and the tw o (2) prior operating years, a sponsor may close a charter school site identified as being among the bottom five percent (5%) of public s chools in the state. The average of the current year and two (2) prior operating years shall be calculated by using th e percentage ranking for each year divided by three, as determined by this subsection. 3. If there is a change to the calculation descri bed in Section 1210.545 of this title that results in a charter school site that was not ranked in the bottom five perc ent (5%) being ranked in the bottom five percent (5%), then the sponso r shall use the higher of the two rankings to calculate the ranking of the charter school site. 4. In the event that a sponsor fails to close a charter school site consistent with this subsection, the sponsor shall appear before the State Board of Educati on to provide support for its decision. The State Board of Educati on may, by majority vote, uphold or overturn the decision of the sponsor. If the decision of the sponsor is overturned by the State Board of Education, the Board may implement one of the f ollowing actions: ENGR. H. B. NO. 2414 Page 18 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. transfer the sponsorship of the charter school identified in this paragraph to another sponsor, b. order the closure of the charter school identified in this paragraph at the end of the current school year, or c. order the reduction of any administrative fee collected by the sponsor that is applicable to the charter school identified in this paragraph. The reduction shall become effective at the beginning of the month following the month the hearing of the sponsor is held by the State Board of Education. 5. A charter school that is closed by the Stat e Board of Education pursuant to paragraph 4 of this subsection shall not be granted a charter by any other sponsor. 6. The requirements of this subsection shall not apply to a charter school that has been designated by the State Department of Education as implementing an alternative education program throughout the charter school. 7. In making a school site closure deci sion, the State Board of Education shall consider the following: a. enrollment of students with special challenges such as drug or alcohol addiction, prior withdrawal from school, prior incarceration or other special circumstances, ENGR. H. B. NO. 2414 Page 19 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. high mobility of the student population resulting from the specific purpose of the charter school, c. annual improvement in the performance of students enrolled in the charter school compared with the performance of students enrolled in the charter school in the immediately pr eceding school year, and d. whether a majority of students attending t he charter school under consideration for closure would likely revert to attending public schools with lower academic achievement, as demonstrated pursuant to Section 1210.545 of this title. 8. If the State Board of Education has closed or transferred authorization of at least twenty-five percent (25%) of the charter schools chartered by one sponsor pursuant to paragraph 4 of this subsection, the authority of the sponsor to authorize new charter schools may be suspended by the Board until the Board approve s the sponsor to authorize new charter schools. A determination un der this paragraph to suspend the authority of a sponsor to authorize new charter schools shall identify the deficienci es that, if corrected, will result in the approval of the sponsor to a uthorize new charter schools. H. If a sponsor terminates a contrac t or the charter school is closed, the closure shall be conducted in accordance with the following protocol: ENGR. H. B. NO. 2414 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Within two (2) calendar weeks of a final closure determination, the sponsor shall meet with the governing board and leadership of the charter s chool to establish a transition team composed of school staff, applicant staff and others designated by the applicant that will attend to the closure, including the transfer of students, st udent records and school funds; 2. The sponsor and transition team shall communicate regularly and effectively with families of students enrolled in the charter school, as well as with school staff and other stakeholders, to keep them apprised of key info rmation regarding the closure of the school and their options and r isks; 3. The sponsor and transition team shall ensure that current instruction of students enrolled in the charter sch ool continues per the charter agreement for the remainder of the schoo l year; 4. The sponsor and transition team shall ensure that all necessary and prudent notifications are issued to agencies, employees, insurers, contractors, creditors, debtors and man agement organizations; and 5. The governing board of the charter scho ol shall continue to meet as necessary to take actions needed to wi nd down school operations, manage school finances, allocate resources and facilitate all aspects of closure. I. A sponsor shall develop revocation and nonrenewal processes that are consistent with the Oklahoma Charter Schools Act and that: ENGR. H. B. NO. 2414 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Provide the charter school with a timely notification of the prospect of revocation or nonrenewal and of the reasons for possible closure; 2. Allow the charter school a reasonable amount of time in which to prepare a response; 3. Provide the charter school with an opportunity to submit documents and give testimony in a public hearing challenging the rationale for closure and in sup port of the continuation of the school at an orderly proceeding held f or that purpose and prior to taking any final nonrenewal or revocat ion decision related to the school; 4. Allow the charter school access to representation by counsel to call witnesses on its behalf; 5. Permit the recording of the proceedings; and 6. After a reasonable period for deliberation, require a final determination be made and conveyed in writing to the charter school. J. If a sponsor revokes or does not renew a charter, the sponsor shall clearly state in a resolution the reasons for the revocation or nonrenewal. K. 1. Before a sponsor may issue a charter to a charter school governing body board that has had its charter terminated or has been informed that its charter will not be r enewed by the current sponsor, the sponsor shall request to have the proposal reviewed by the State Board of Education at a hearing . The State Board of ENGR. H. B. NO. 2414 Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Education shall conduct a hearing in which the sponsor shall present information indicating that the pr oposal of the organizer is substantively different in the areas of deficiency identified by the current sponsor from the current pr oposal as set forth within the charter with its current sponsor. 2. After the State Board of Education conducts a hearing pursuant to this subsection, the Board shall either approve or den y the proposal. 3. If the proposal is denied, no sponsor may issue a charter to the charter school governing body board. L. If a contract is not renewed, the governing board of the charter school may submit an application to a proposed new sponsor as provided for in Section 3-134 of this title. M. If a contract is not renewed or is terminated according to this section, a student who attended the charter school may enroll in the resident school dis trict of the student or may apply for a transfer in accordance with Section 8-103 of this title. SECTION 4. AMENDATORY 70 O.S. 2021, Section 3-142, is amended to read as follows: Section 3-142. A. The student membership and attendance of the charter school shall be considered separate from the student membership and attendance of the sponsor for the purpose of calculating enrollment and funding including weighted average daily membership pursuant to Section 18 -201.1 of this title and State Aid ENGR. H. B. NO. 2414 Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 pursuant to Section 18-200.1 of this title. A charter school shall receive the State Aid allocation, federal funds to which it is eligible and qualifies for and any other state-appropriated revenue generated by its stu dents for the applicable year. Not more than three percent (3%) of the State Aid allocation may be charged by the sponsor as a fee for administrat ive services rendered. For purposes of this section, the fee for administrative services shall be used by the sponsor to provide oversight and services to the charter schools it sponsors. A charter school sponsor shall publish a detailed report on its we bsite listing expenses related to oversight and services provided by the sponsor to its charter schools. The State Board of Education shall determine the policy and procedure for making payments to a charter school. The fee for administrative services as authorized in this subsection shall only be assessed on the State Aid allocation amount and shall not be assessed on any other appropriated amounts. A sponsor of a charter sc hool shall not charge any additional State Aid allocation or charge the charter school any additional fee above the amounts allowed by this subsection unless the additional fees are for additional services rendered. The charter school sponsor shall provide to the State Department of Education financial records documenting any state funds charged by the sponsor for administrative services rendered for the previous year. ENGR. H. B. NO. 2414 Page 24 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. 1. The weighted average daily membership for the first year of operation of a charter school shall be dete rmined initially by multiplying the actual enrollment of students as of August 1 by 1.333. The charter school shall receive revenue equal to that which would be generated by the estimated weighted average daily membership calculated pursuant to this parag raph. At midyear, the allocation for the charter scho ol shall be adjusted using the first quarter weighted average daily membership for the charter school calculated pursuant to subsection A of this section. 2. For the purpose of calculating weighted ave rage daily membership pursuant to Section 18 -201.1 of this title and State Aid pursuant to Section 18 -200.1 of this title, the weighted average daily membership for the first year of operation of a full-time statewide virtual charter school sponsored by the Statewide Virtual Charter School Board shall be determined by multiplying the actual enrollment of students as of August 1 by 1.333. The full -time virtual charter school shall receive revenue equal to that which would be generated by the estimated weigh ted average daily membership calculated pursuant to this paragraph. At midyear, the allocation for the full-time statewide virtual charter school shall be adjusted using the first quarter weighted average daily membership for the virtual charter school ca lculated pursuant to subsection A of this section. ENGR. H. B. NO. 2414 Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. Except as explicitly authorized by state law, a charter school shall not be eligib le to receive state-dedicated, local or county revenue; provided, a charter school may be eligible to receive any other aid, grants or revenues allowed to other schools. A charter school shall be considered a local education agency for purposes of funding. D. Any unexpended funds received by a charter school may be reserved and used for future purposes. The governing body board of a charter school shall not levy taxes or issu e bonds. If otherwise allowed by law, the governing body board of a charter school may enter into private cont racts for the purposes of borrowing mo ney from lenders. If the governing body board of the charter school borrows money, the charter school shal l be solely responsible for repaying the debt, and the state or the sponsor shall not in any way be responsible or ob ligated to repay the debt. E. Any charter school which chooses to lease property shall be eligible to receive current government lease rat es. F. Except as otherwise provided in this subsection, each charter school shall pa y to the Charter School Closure Reimbursement Revolving Fund created i n subsection G of this section an amount equal to Five Dollars ($5.00) per student based on average d aily membership, as defined by paragraph 2 of Section 18-107 of this title, during the first nine (9) weeks of the sc hool year. Each charter school shall complete the payment every school year within ENGR. H. B. NO. 2414 Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 thirty (30) days after the first nine (9) weeks of the school year. If the Charter School Closure Reimbursement Revolving Fund has a balance of One Million Dollars ($1,000 ,000.00) or more on July 1, no payment shall be required the following school year. G. There is hereby created in the State Treasury a rev olving fund for the State Department of Education to be designated the "Charter School Closure Reimbursement Revolvin g Fund". The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Stat e Department of Education from charter schools as provided in subsection F of this section. All monies accruing to t he credit of said fund are hereby appropriated and may be budgeted and expended by the State Department of Education for the purpose of rei mbursing charter school sponsors for costs incurred due to the closure of a charter school. Expenditures from said f und shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. The State Department of Education may promulgate rules regarding sponsor eligibility for reimbursement. SECTION 5. AMENDATORY 70 O.S. 2021, Section 3-145.3, is amended to read as follows: ENGR. H. B. NO. 2414 Page 27 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 3-145.3 A. Subject to the requirements of the Oklahoma Charter Schools Act, the Statewide Virtual Charter School Board shall: 1. Provide oversight of the operations of statewide virtual charter schools in this state ; 2. Establish a procedure for accepting, approving and disapproving statewide virtual charter school applications and a process for renewal or revocation of approved charter school contracts which minimally meet the procedures set forth in the Oklahoma Charter Schools Act; 3. Make publicly available a list of supplemental online courses which have been reviewed and certified by the Statewide Virtual Charter School Board to ensure that the courses are high quality options and are aligned with the subject matter standards adopted by the State Board of Education pursuant to Section 11-103.6 of this title. The Statewide Virtual Charter School Board shall give special emphasis on listing supplemental online cours es in science, technology, engineering and math (STEM), foreign language and advanced placement courses. School districts shall not be limited to selecting supplemental online courses that have been reviewed and certified by the Statewide Virtual Charter School Board and listed as provided for in this paragraph; and 4. In conjunction with the Office of Management and Enterprise Services, negotiate and enter into contracts with supplemental ENGR. H. B. NO. 2414 Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 online course providers to offer a state rate price to school districts for supplemental online courses that have been reviewed and certified by the Statewide Virtual Charter School Board and listed as provided for in paragraph 3 of this subsection. B. Except as otherwise provided by law, each sta tewide virtual charter school which has been approved and sponsored by the Board shall be subject to and comply with the requirements of the Oklahoma Charter Schools Act. Each statewide virtual charter school which has been approved and sponsored by the Board or any virtual cha rter school for which the Board has assumed sponsorship of as provided for in Section 3-145.5 of this title shall be considered a statewide virtual charter school and , except as provided in subsection H of this section, the geographic boundaries of each st atewide virtual charter school shall be the borders of the state. C. Each statewide virtual charter school approved by the Statewide Virtual Charter School Board shall be eligible to receive federal funds generated by students enrolled in the charter scho ol for the applicable year. Each statewide virtual charter school shall be considered a separate local education agency for purposes of reporting and accountability. D. As calculated as provided for in Section 3 -142 of this title, a statewide virtual cha rter school shall receive the State Aid allocation and any other state-appropriated revenue generated by students enrolled in the virtual charter school for the applicable ENGR. H. B. NO. 2414 Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 year, less up to five percent (5%) three percent (3%) of the State Aid allocation, which may be retained by the Statewide Virtual Charter School Board for administrative expenses and to support the mission of the Board. A statewide virtual charter school shall be eligible for any other funding any other charter school is eligible for as provided for in Section 3-142 of this title. Each statewide virtual charter school shall be considered a separate local education agency for purposes of reporting and accountability. E. A virtual charter school or a charter school which contracts with an educational management organization shall be subject to the same reporting requirements, financial audits, audit procedures and audit requirements as a school district and the compliance requirements provided in Section 3 -136 of this title. The State Department of Education or State Auditor and Inspector may c onduct financial, program or compliance audits. A virtual charter school or a charter school which contracts with an educational management organization shall use the Oklahoma Cost Accounting System (OCAS) to report financial transactions to the State Department of Education. An educational management organization , as defined in Section 5 -200 of this title, which contracts with more than one school district shall not commingle funds of the schools. F. A virtual charter school governing body board shall be responsible for the policies that govern the operational decisions of the virtual charter school. The governing body board of a ENGR. H. B. NO. 2414 Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 virtual charter school shall be subject to the same conflict of interest requirements as a member of a local school board inc luding, but not limited to, Sections 5-113 and 5-124 of this title. Members appointed to the governing body board of a virtual charter schoo l after July 1, 2019, shall be subject to the same instruction and continuing education requirements as a member of a local school board and pursuant to Section 5 -110 of this title, complete twelve (12) hours of instruction within fifteen (15) months of ap pointment to the governing body board, and pursuant to Section 5-110.1 of this title, attend continuing education. The instruction and continuing education shall include a minimum of two (2) hours of instruction and continuing education by the State Auditor and Inspector or an entity approved by the State Audito r and Inspector. Members appointed to the governing boar d of a virtual charter school prior to July 1, 2019, shall comply with the requirements of this subsection and, within fifteen (15) months of the effective date of this act, shall complete twelve (12 ) hours of instruction pursuant to Section 5-110 of this title. G. Students enrolled full-time in a statewide virtual charter school sponsored by the Statewide Virtual Charter School Board shall not be authorized to participate in any activities administered by the Oklahoma Secondary Schools Activities Association. However, the students may participate in intramural activities sponsored by a ENGR. H. B. NO. 2414 Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 statewide virtual charter school, an online provider for the charter school or any other outside organization. H. 1. Beginning with the 2021-2022 school year, a public school student who wishes to enroll in a virtual charter school shall be considered a transfer student from their resident school district. A virtual charter school shall pre-enroll any public school student whose parent expresses intent to enroll in the district. Upon pre-enrollment, the State Department of Education shall initiate a transfer on a form to be completed by the receiving virtual charter school. Upon approval of the receiving virtual charter school, the student may begin instructional activit ies. Upon notice that a public school student has transferred to a virtual charter school, the resident school district shall transmit the student's records within three (3) school days. 2. The State Department of Education shall notify the Legislature and Governor if it determines that the information technology infrastructure necessary to process the transfer of students to a virtual chart er school is inadequate and one (1) additional school year is needed for implementation. 3. A public school student may transfer to one statewide virtual charter school at any time during a school year. For purposes of this subsection , "school year" shall mean July 1 through the following June 30. After one st atewide virtual charter school transfer during a school ye ar, no public school student shall be ENGR. H. B. NO. 2414 Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 permitted to transfer to any other statewide virtual charter school without the concurrence of both th e resident school district and the receiving virtual chart er school. A student shall have a grace period of fifteen (15) school days from the first day of enrollment in a statewide virtual charter school to withdraw without academic penalty and shall cont inue to have the option of one virtual charter school transfer without the concurrence of both districts during that same school year. A statewide virtual charter school student that has utilized the allowable one transfer pursuant to this subsection shall not be permitted to transfer to another district or other statewide virtual charter school without first notifying his or her resident district and initiating a new transfer. Upon cancellation of a transfer the virtual charter school shall transmit the student's records to the student's new school district wit hin three (3) school days. Students enrolled in a statewi de virtual charter school shall not be required to submit a virtual charter transfer for consecutive years of enrollment. Any student enrol led in a statewide virtual charter school the year prior t o the implementation of this section shall not be required to submit a transfer in order to remain enrolled. 4. For purposes of this subsection, "parent" shall mean the parent of the student or per son having custody of the student as provided for in parag raph 1 of subsection A of Section 1-113 of this title. ENGR. H. B. NO. 2414 Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I. 1. A student shall be eligible to enroll in a statewide virtual charter school if he or she is a student whose parent or legal guardian is transferred or is pending transfer to a military installation within this state while on active military duty pursuant to an official military order. 2. A statewide virtual charter school shall accept applications by electronic means for enrollment and c ourse registration for students described in paragraph 1 of this subsection. 3. The parent or legal guardian of a s tudent described in paragraph 1 of this subsection shall provide proof of residence in this state within ten (10) days after the published a rrival date provided on official documentation. A parent or legal guardian may use the following addresses as proof of residence: a. a temporary on-base billeting facility, b. a purchased or leased home or apartment, or c. federal government or p ublic-private venture off-base military housing. 4. The provisions of paragraph 3 of subsection H of this section shall apply to students described in paragraph 1 of this subsection. 5. For purposes of this subsection: a. "active military duty" means full-time military duty status in the active uniformed service of the United ENGR. H. B. NO. 2414 Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 States including members of the National Guard and Military Reserve on active duty orders, and b. "military installation " means a base, camp, post, station, yard, center, homeport facility for any ship or other installation under the jurisdiction of the Department of Defense or the United States Coast Guard. J. A virtual charter school shall not accept or deny a transfer based on ethnicity, national origin, gender, income level, disabling condition, proficiency in the English language, measure of achievement, aptitude or athletic ability. K. The decision of the Statewide Virtual Charter School Board to deny, nonrenew not renew, or terminate the charter contract of a statewide virtual charter school may be appealed t o the State Board of Education within thirty (30) days of the decision by the Statewide Virtual Charter School Board. The State Board of Education shall act on the appeal within sixty (60) days of receipt of the request from the statewide virtual charter school applicant. The State Board of Education may reverse the decision of the Statewide Virtual Charter School Board or may remand the matter back to the Statewide Virtual Charter School Board for further proceeding as directed. ENGR. H. B. NO. 2414 Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 6. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Se ction 3-145.9 of Title 70, unless there is created a duplication in numbering, reads as follows: A. Beginning with the 202 3-2024 school year, any governing board of a charter school which contracts with an educational management organization as defined in Section 5-200 of Title 70 of the Oklahoma Statutes shall: 1. Consist of a minimum of five (5 ) members, including one member who shall be a parent, grandparent, legal guardian or learning coach of a stu dent who attends the charter school. As used in this paragraph, "learning coach" means a designated person who has the primary responsibility of b eing actively involved in all school-related work and activities of a student. The bylaws of the charter school shall set specific terms of service for charter school governing board members; 2. Meet at least one time per month; 3. Adopt a charter which shall ensure compliance with the same requirements and guidelines as provided in Section 3 -136 of Title 70 of the Oklahoma Statutes; 4. Appoint a board clerk, m inute clerk and encumbrance clerk as provided in Section 5 -119 of Title 70 of the Oklahoma Sta tutes and a treasurer as provided in Section 5 -114 of Title 70 of the Oklahoma Statutes. Upon appointment, t he board clerk, minute clerk, encumbrance clerk and t reasurer shall attend and complete at least ENGR. H. B. NO. 2414 Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 eight (8) hours of instruction offered by the Offi ce of the State Auditor and Inspector or other organization s or associations representing school administrators or district boards of education in this state as approved by the State Auditor and Inspector. Each year the encumbrance clerk and treasurer sha ll complete at least three (3) hours of continuing education offered by the Office of the State Auditor and Inspector or other organizations or associations representing school administrators or district boards of education in this state as approved by the State Auditor and Inspector . If the board clerk, minute clerk, encumbrance clerk or treasurer is also a member of the charter school governing board, his or her completed instruction and continuing education requirements in this paragraph shall count t oward the board instruction and continuing education requirements provided in subsection F of Section 3 -145.3 of Title 70 of the Oklahoma Statutes; and 5. Submit to the State Department of Education copies of any contract executed between the charter scho ol governing board or charter school sponsor governing board and an educational management organization. The Department and the sponsor shall publish the contracts on their websites and the Department shall publish a list of all the management fees paid b y charter schools or charter school sponsors to educational management organizations. ENGR. H. B. NO. 2414 Page 37 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. Beginning with the 2023-2024 school year, members of a charter school governing board which contracts with an educational management organization shall: 1. Be subject to the instruction and continuing education requirements as provided in subsection F of Section 3-145.3 of Title 70 of the Oklahoma Statutes; 2. Be subject to the same conflict of interest requirements as a member of a local school board including, but not limited to, Sections 5-113 and 5-124 of Title 70 of the Oklahoma Statutes. No member shall receive pecun iary gain, incidentally or otherwise, from the earnings of the educational management organization or school; and 3. Not be appointed or selected by any person affiliated with the educational management organization. SECTION 7. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-145.10 of Title 70, unless there is created a duplication in numbering, reads as follows: A. Beginning with the 202 3-2024 school year, members of a charter school sponsor governing board that sponsors a charter school which contracts with an educational management organization shall complete instruction and continuing education. 1. The instruction and continuing education shall be provided in accordance with Sections 5-110 and 5-110.1 of Title 70 of the Oklahoma Statutes and shall include a minimum of two (2) hours of ENGR. H. B. NO. 2414 Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 instruction and continuing education by the Office of the State Auditor and Inspector or an entity approved by the State Auditor and Inspector. 2. The governing board of a charter school sponsor shall pay for the costs of ins truction and continuing education for its board members. 3. Each member shall complete at least twelve (12) hours of instruction within the first year of his or her appointment or within fifteen (15) months after the effective date of this act. 4. After completing the initial twelve (12) hours of instruction provided in paragraph 3 of this sub section, each member shall annually complete at least three (3) hours of continuing education. B. As used in this section, "educational management organization" shall have the same meaning as in Section 5-200 of Title 70 of the Oklahoma Statutes. SECTION 8. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-145.11 of Title 70, unless there is created a duplicatio n in numbering, reads as follows: A. 1. State funds appropriated to any charter school whi ch contracts with an educat ional management organization as defined in Section 5-200 of Title 70 of the Okl ahoma Statutes, including the State Aid allocation and an y other state-appropriated revenue pursuant to Section 3-142 of Title 70 of the Oklahoma Sta tutes, ENGR. H. B. NO. 2414 Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 shall remain public funds maintained in public accounts subject to audit, transparency, oversight an d financial reporting and shall not be transferred or con verted in any way to private funds except for funds which are paid for charter school expens es and funds which are paid to the educational management organization from the charter school pursuant to the terms of the contract and in accordance with state law and Internal Revenue Service requirements. If there is any question or potential discrepancy regarding use of funds paid to the educational management organization by the State Department of Education, charter school governing board, or charter school sponsor, the educational management organization shall provide invoices and financial document ation to the requesting ent ity proving the educational management organization is following the terms of the contract and is in compliance with the law . 2. Any state funds which are designated as student learning funds are appropriated for the benefit of the student, including extracurricular and educational activity funds, and shall remain public funds maintained in public accounts subject to audit, transparency, oversight and financial reporting and expended in accordance with purchasing requirements pro vided in Section 5-135 of Title 70 of the Oklahoma Statutes. Students shall receive a grade for participation in extracurricular or educational activities as described in this subsection. ENGR. H. B. NO. 2414 Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. Any property purchased with public funds pursuant to this section may be assigned to emplo yees or students of the charter school for charter school employment or extracurricular or educational purposes, but shall remain public property of the charter school. B. In the third year of the charter school contract term, the State Auditor and Inspecto r or an auditor selected from a list of auditors approved and maintained by t he State Auditor and Inspector shall conduct an operating agreement review of each charter school which contracts with an educational management organiz ation to verify that the charter school and the educational management organization are following the te rms of the contract and complying with state law and Internal Revenue Service requirements. The auditor may request additional documentation from the c harter school or educational management organization to address any question or potential discrepancy. The charter school sponsor shall pay for the expenses related to the review, oversee the review and provide a full report of the review to the governing boards of the charter school and the charter school sponsor. C. Every provider or entity that contract s with a charter school for expenditure of state funds pu rsuant to paragraph 2 of subsection A of this section shall: 1. Have an agreement in writing with the charter school which clearly states the goods or services being provided by the provider ENGR. H. B. NO. 2414 Page 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 or entity pursuant to the contract and the costs thereof and that such goods, services and employees of the provider or entity comply with federal and state la ws; and 2. Have on file with the State Department of Education a current Oklahoma criminal history reco rd check from the Oklahoma State Bureau of Investigation or equivalent criminal history record check from another state as well as a national criminal h istory record check as defi ned in Section 150.9 of Title 74 of the Oklahoma Statutes for every owner and employee of the provider or entity who will have contact with students pursuant to the contract. Upon receipt of the Oklahoma criminal history record check or equivalent criminal history record check from another state, the provider or entity may begin extracurricular or educational activities until receipt of the national criminal history record check. The provider or entity shall be responsible for t he cost of the criminal his tory record checks. Results of the check s shall be included as a requirement of the contract and reported to the governing board of the charter school. D. An educational management organization shall not: 1. Manage or control the governing board of a ch arter school, including, but not limited to, setting meeting agendas, adoptin g charter school policies or making budget decisions on behalf of the charter school; ENGR. H. B. NO. 2414 Page 42 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. Employ a charter school superintendent who is also an owner of the educational management organization, unless the ownership stake held by the superintendent is less than ten percent (10%); 3. Employ legal counsel who also represents the charter school or charter school governing board which has an agreement with the educational management organiz ation; and 4. Request public employees , including, but not limited to, teachers and other charter school employees , to complete tasks or perform duties that the educational management organization has been contracted to fulfill . SECTION 9. AMENDATORY 70 O.S. 2021 , Section 5-200, is amended to read as follows: Section 5-200. A. As used in this section, "educational management organization" means a for-profit or nonprofit organization that receives public funds to provide administr ation and management services for a charter school, statewide virtual charter school or traditional public school. B. A charter school that contracts with an educational management organizati on shall use the Oklahoma Cost Accoun ting System (OCAS) to repor t the total amount paid to an educational management organization pursuant to the terms of the contract as well as actual itemized expenditure information for the goods or services provided by the management organization as defin ed by OCAS expenditure codes, including the total compensation package of the ENGR. H. B. NO. 2414 Page 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 superintendent inclu ding the base salary, insurance, retirement and other fringe benefits. C. Any Pursuant to Internal Revenue Service guidelines, any owner of an educational ma nagement organization shall be required to disclose to the governing board of the school in a publ ic meeting any ownership position in any business that co ntracts or proposes to contract with the same public school that the educational management organization is managing. D. Whenever any person shall enter into a c ontract with any school district or p ublic charter school in the state to teach in such school district or public charter school the contract shall be binding on the teacher and on the board of e ducation until the teacher legally has been discharged from t he teaching position or released by the board of education from the contract. Except as provided in Section 5-106A of Title 70 of the Oklahoma Statutes this title, until such teacher has been th us discharged or released, the teacher shall not have authority to enter into a contract with any other board of education in Oklahoma for the same time co vered by the original contract. If upon written complaint by the board of education in a district an y teacher is reported to ha ve failed to obey the terms of the contract p reviously made and to have entered into a contract with another board of education, including a public charter school board of education, without having been released from the former contract except as provided in Section 5-106A of Title 70 ENGR. H. B. NO. 2414 Page 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of the Oklahoma Statutes this title, the teacher, upon being found to be employed full-time for another public school, including a public charter school in the state, at a hearing held before the State Board of Education, shal l have such teacher's certificate suspended for the rema inder of the term for which the contract was made. SECTION 10. AMENDATORY 70 O.S. 2021, Section 18 -124, is amended to read as follows: Section 18-124. A. Any school district with an average daily attendance (ADA) of more than one thousand five hundred (1,500) students for the preceding year which exp ends for administrative services in the 2005 -06 school year or any s chool year thereafter, less expenditures for legal services, more than five percent (5%) of the amount it expends for total expendi tures, less expenditures for legal services, shall have t he amount which exceeds the five percent (5%) withheld the following year from the Foundation and Sal ary Incentive Aid for the school district. B. Any school district with an average daily attendanc e (ADA) of more than five hundred (500) students but not more than one thousand five hundred (1,500) students for the precedi ng year which expends for administrative services in the 2005 -06 school year or any school year thereafter, less expenditures for l egal services, more than seven percent (7%) of the amount it expends for total expenditures, less expenditures for legal serv ices, shall have the ENGR. H. B. NO. 2414 Page 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 amount which exceeds the seven percent (7%) withheld the following year from the Foundation and Salary Incenti ve Aid for the school district. C. Any school district w ith an average daily attendance (ADA) of five hundred (500) or fewer students for the preceding year which expends for administrative services in the 2005 -06 school year or any school year thereafter , less expenditures for legal services, more than eight percent (8%) of the amount it expends for total expenditures, less ex penditures for legal services, sh all have the amount which exceeds the eight percent (8%) withheld the following year from the Foundation and Salary Incentive Aid for the school district. D. The provisions of this section shall apply to charter schools which contract with an educational management organization, as defined in Section 5 -200 of this title. The expenditure limits shall not exceed the percentages prescribed in subsections A, B , and C of this section, and the calculation of administrative servic es for charter schools which contract wit h an educational management organization shall be the combined amount of administrative s ervices expended by the charter school and the educationa l management organization. E. For purposes of this section, "administrative services" means costs associated with: 1. Staff for the board of education; ENGR. H. B. NO. 2414 Page 46 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. The secretary/clerk for the board of educ ation; 3. Staff relations; 4. Negotiations staff; 5. Immediate staff of the superintendent, any elementary superintendent or any as sistant superintendent; 6. Any superintendent, elementary superintendent, or assistant superintendent; 7. Any employee of a school district employed as a director, coordinator, supervisor, or who has responsibility for administrative functions of a schoo l district; and 8. Any consultant hired by the school district ; and 9. Any costs for administrative services paid to an educational management organization as defined in Section 5-200 of this title. E. F. If an employee of a school district is employed in a position where part of the e mployee's time is spent as an administrator and part of the time is spen t in nonadministrative functions, the percentage of time spent as an admin istrator shall be included as administrative services. A superintendent who spends part of the time performing exempted nonadministrative services such as teaching in the classroom, serving as a principal, counselor, or library media specialist, can code up to forty percent (40%) of their salary to other nonadministrative function s. The total amount of time a superintendent of a school district spends performing services for a schoo l district shall be included as administrative ENGR. H. B. NO. 2414 Page 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 services even if part of th e time the superintendent is performing nonexempted nonadministrative service functions. The total amount received by a superintendent from the school district as salary, for the performance of administrative and nonexempted nonadministrative services, shall be recorded under the code for superintendent salary as provided for in t he Oklahoma Cost Accounting Syste m. F. G. Each school site within a school district shall take steps to ensure that the administrative costs for the school comply with the expenditure limits established for school districts in this section. G. H. Funds withheld pursuant to the provision s of this section shall be distributed through the State Aid formula to the di stricts not so penalized. H. I. For the 2003-04 and 2004-05 school year, school districts shall report to the State Department of Education the costs associated with administrat ive services for the school district as defined in subsection D E of this section. SECTION 11. This act shall become effective July 1, 2023. SECTION 12. 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. ENGR. H. B. NO. 2414 Page 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Passed the House of Representatives the 21st day of March, 2023. Presiding Officer of the House of Representatives Passed the Senate the ____ day of __________, 2023. Presiding Officer of the Senate