Oklahoma 2023 Regular Session

Oklahoma House Bill HB2414 Latest Draft

Bill / Engrossed Version Filed 03/22/2023

                             
 
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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   
 
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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:   
 
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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;   
 
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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,   
 
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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   
 
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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;   
 
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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   
 
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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   
 
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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;   
 
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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;   
 
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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   
 
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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   
 
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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,   
 
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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,   
 
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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   
 
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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.   
 
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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:   
 
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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,   
 
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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:   
 
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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:   
 
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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   
 
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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   
 
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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.   
 
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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.   
 
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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   
 
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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:   
 
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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   
 
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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   
 
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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   
 
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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   
 
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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   
 
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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.   
 
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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   
 
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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.   
 
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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   
 
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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.   
 
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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   
 
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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,   
 
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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.   
 
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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   
 
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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;   
 
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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   
 
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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   
 
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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   
 
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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;   
 
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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   
 
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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.   
 
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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