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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 579 By: Montgomery
AS INTRODUCED
An Act relating to school district funding; creating
the School District Ad Valore m Protest Assistance
Revolving Fund; providing sources of funds; stating
purpose; providing for expe nditures from fund;
authorizing the State Board of Educ ation to provide
loans and one-time funds to school districts under
certain circumstance ; stating amount of loan;
prescribing repayment of loan; stating amount of one-
time funds; authorizing school districts submit
application; requiring the Board to provide certain
forms; making issuance of loan and payment of fun d
contingent upon availability of funds; requiring
certain payment as funds become available; providing
for codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codifi ed
in the Oklahoma Stat utes as Section 3-104.12 of Title 70, unless
there is created a duplication in numb ering, reads as follows:
A. There is hereby created in the State Treasury a revolving
fund for the State Board of Education to be designated the “School
District Ad Valorem Protest Assistance Revolving Fund”. The fund
shall be a continuing fund not subject to fiscal year limitations
and shall consist of all monies appropriated or transferred to the
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fund by the Legislature. Except as otherwise provide d in this
section, all monies accruing to the credi t of the fund are hereby
appropriated and may be budgeted and expended by the State Board of
Education for the purpo se of providing financial assis tance to local
school districts pursuant to subsection B of this section.
Expenditures from the fund shall be made on warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterp rise Services for
approval and payment.
B. The State Board of Education is authorized to provide loans
to school districts whose funding is reduced from the budgeted
amount due to ad valorem protest s and one-time funds to school
districts whose funds received from the formula for State Aid
pursuant to Section 18-200.1 of Title 70 of the Oklahoma Statutes
were reduced as a result of an error in valuation by a county
assessor.
C. Loans made to a school district shall be equal to the amount
the district would have received from the taxes paid under protest
that are held separate by the county treasurer pursuant to Section
18-200.1 of Title 70 of the Oklahoma Statutes . Upon the
apportionment of funds to the district pursuant to subsection E of
Section 18-200.1 of Title 70 of the Oklahoma Statutes , the district
shall remit to the Board the funds received from the app ortionment
and the loan shall be considered paid in full.
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D. One-time funds paid to a school district shall be equal to
the difference between the amount of funds the district receiv ed for
a school year from the formula for State Aid and the amount of fun ds
the district would have received if the error in valuation had not
occurred.
E. School districts may apply for loans and one -time funds
provided pursuant to this section on forms prescribed by the Boar d.
Applications shall be processed by the Board in the order they are
received, and the issuance of loans and payments of one-time funds
shall require approval of the application by the Board and be
subject to the availability of funds on balance in the School
District Ad Valorem Protest Assistance Revolving Fund. Applications
for one-time funds made pursuant to subsection D of this section
approved by the Board but not paid due to unavailability of funds
shall be paid as funds become available.
SECTION 2. This act shall become effective November 1, 2023.
59-1-492 QD 1/17/2023 6:18:11 PM