Oklahoma 2023 2023 Regular Session

Oklahoma Senate Bill SB758 Introduced / Bill

Filed 01/18/2023

                     
 
 
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STATE OF OKLAHOMA 
 
1st Session of the 59th Legislature (2023) 
 
SENATE BILL 758 	By: Rosino 
 
 
 
 
 
 
 
AS INTRODUCED 
 
An Act relating to medical marijuana; amending 63 
O.S. 2021, Sections 426, as amended by Section 27, 
Chapter 228, O.S.L. 2022 (63 O.S. Supp. 2022, Section 
426) and 427.5, which relate to medical marijuana; 
deleting certain apportionments; modifying the 
Oklahoma Medical Marijuana Authority Fund; limiting 
funding source; requiring legislative appropriation; 
creating the Medical Marijuana Ta x Fund; providing 
for sources of funds; requiring legislative 
appropriation; amending 68 O.S. 2021, Section 1353, 
as last amended by Section 3, Chapter 412, O.S.L. 
2022 (68 O.S. Supp. 2022, Section 1353), which 
relates to sales tax; deleting certain 
apportionments; amending 70 O.S. 2021, Section 3-104, 
which relates to the State Board of Education; 
deleting certain apporti onment; updating statutory 
references; updating statutory language; providing 
for codification; and declaring an emergency. 
 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     AMENDATORY     63 O.S. 2021, Section 426, as 
amended by Section 27, Chapter 228, O.S.L. 2022 (63 O.S. Supp. 2022, 
Section 426), is amended to read as fol lows:   
 
 
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Section 426.  A.  The tax on retail medical marijuana sales 
shall be established at seven p ercent (7%) of the gross amount 
received by the seller. 
B.  This tax shall be collected at the point of sale.  Except as 
provided for in subsection D C, tax proceeds shall be deposited into 
the Medical Marijuana Tax Fund created in Section 3 of thi s act will 
be applied primarily to fi nance the regulatory office. 
C.  Except as provided for in subsection D, if proceeds from the 
levy authorized by subsection A of this section exceed the budgeted 
amount for running the regulatory office, any surplus shall be 
apportioned with seventy-five percent (75%) going to the General 
Revenue Fund and may only be expended for common education including 
funding redbud school grants pursuant to Secti on 3-104 of Title 70 
of the Oklahoma Statutes.  Twenty-five percent (25%) shall be 
apportioned to the State Department of Health and earmarked for drug 
and alcohol rehabilitation and prevention. 
D. Pursuant to Section 14 of this act Section 255.2 of Title 68 
of the Oklahoma Statutes, the Oklahoma Tax Commission shall have 
authority to assess, collect and enforce the tax specified in 
subsection A of this section including any interest and penalty 
thereon. 
E. D.  For fiscal year 2022, proceeds from the l evy authorized 
by subsection A of this sectio n shall be apportioned as follows:   
 
 
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1.  The first Sixty-five Million Dollars ($65,000,000.00) shall 
be apportioned as follows: 
a. fifty-nine and twenty-three hundredths percent 
(59.23%) to the State Public Comm on School Building 
Equalization Fund, 
b. thirty-four and sixty-two hundredths percent (34.62%) 
to the Oklahoma Medical Marijuana Authority, a 
division within the Oklahoma State Department of 
Health, and 
c. six and fifteen hundredths percent (6.15 %) to the 
Oklahoma State Department of Health and earmarked for 
drug and alcohol rehabilitation; and 
2.  Any surplus collections shall be apportioned to the General 
Revenue Fund of the State Treasury. 
SECTION 2.     AMENDATORY     63 O.S. 2021, Section 427.5, is 
amended to read as follows: 
Section 427.5.  There is hereby created in the State Treasury a 
revolving fund for the State Department of Health Oklahoma Medical 
Marijuana Authority to be designated the “Oklahoma Medical Marijuana 
Authority Revolving Fund”.  The fund shall be a continuing fund, not 
subject to fiscal year limitations, and shall consist of all monies 
received by the Department Authority from fees and fines collected 
pursuant to this act and all monies received by the Oklahoma Tax 
Commission from tax proceeds coll ected pursuant to Section 426 of   
 
 
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Title 63 of the Oklahoma Statutes.  All monies accruing to the 
credit of the fund are hereby a ppropriated and may be budgeted and 
expended by the Department for the purposes set forth in Section 426 
of Title 63 of the Oklah oma Statutes. Expenditures from the fund 
shall be made upon warrants issued by the State Treas urer against 
claims filed as prescribed by law with the Director of the Office of 
Management and Enterprise Services for approval and payment the 
Oklahoma Medical Marijuana and Patient Prote ction Act.  All monies 
accruing to the credit of the fund shall be appropriated at the 
discretion of the Legislature for the purpose of funding the medical 
marijuana regulatory office. 
SECTION 3.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statut es as Section 427.5a of Title 63, unless there 
is created a duplicat ion in numbering, reads as follows: 
There is hereby created in the State Treasury a fund for the 
Oklahoma Medical Marijuana Authority to be designated the “Medical 
Marijuana Tax Fund”.  The fund shall be a continuing fund, not 
subject to fiscal year limita tions, and shall consist of all monies 
received by the Authority from tax proceeds collected pursua nt to 
Section 426 of Title 63 of the Oklahoma Statutes .  All monies 
accruing to the credi t of the fund shall be appropriated at the 
discretion of the Legisla ture for the purpose of funding substance 
abuse programs and common education including but not limited to   
 
 
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funding redbud school grants pursu ant to Section 3-104 of Title 70 
of the Oklahoma Statutes. 
SECTION 4.     AMENDATORY     68 O.S. 2021, Section 1353, as 
last amended by Section 3, Chapter 412, O.S.L. 2022 (68 O.S. Supp. 
2022, Section 1353), is amended to read as follows: 
Section 1353.  A.  It is hereby declared to be the purpose of 
the Oklahoma Sales Tax Code to provide funds for the financing of 
the program provided for by the Oklahoma Social Security Act and to 
provide revenues for the support of the functions of the state 
government of Oklahoma, and for this purpose it is hereby expressly 
provided that, revenues derived pursuant to the provisions of the 
Oklahoma Sales Tax Code, subject to the apportionment requirements 
for the Oklahoma Tax Commission and Office of Management and 
Enterprise Services Joint Computer Enhancement Fund provided by 
Section 265 of this title, shall be apportioned as follows: 
1.  Except as provided in subsections subsection C and D of this 
section, the following amounts shall be paid to the State Treasurer 
to be placed to the credit of the General Revenue Fund to be paid 
out pursuant to direct appropriation by the Legislature: 
Fiscal Year 	Amount 
FY 2003 and FY 2004 	86.04% 
FY 2005 	85.83% 
FY 2006 	85.54% 
FY 2007 	85.04%   
 
 
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FY 2008 through FY 2022 	83.61% 
FY 2023 through FY 2027 	83.36% 
FY 2028 and each fiscal year thereafter 83.61%; 
2.  The following amounts shall be paid to the State Treasurer 
to be placed to the credit of the Education Reform Revolving Fund of 
the State Department of Education: 
a. for FY 2003, FY 2004 and FY 2005, ten and forty-two 
one-hundredths percent (10.42%), 
b. for FY 2006 through FY 2020, ten and forty-six one-
hundredths percent (10.46%), 
c. for FY 2021: 
(1) for the month beginning July 1, 2020, through the 
month ending August 31, 2020, ten and forty-six 
one-hundredths percent (10.46%), and 
(2) for the month beginning September 1, 2020, 
through the month ending June 30, 2021, eleven 
and ninety-six one-hundredths percent (11.96%), 
d. for FY 2022 and each fiscal year thereafter, ten and 
forty-six one-hundredths percent (10.46%); 
3.  The following amounts shall be paid to the State Treasurer 
to be placed to the credit of the Teachers’ Retirement System 
Dedicated Revenue Revolving Fund: 
Fiscal Year 	Amount 
FY 2003 and FY 2004 	3.54%   
 
 
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FY 2005 	3.75% 
FY 2006 	4.0% 
FY 2007 	4.5% 
FY 2008 through FY 2020 	5.0% 
FY 2021: 
a. for the month beginning July 
1, 2020, through the month 
ending August 31, 2020 	5.0% 
b. for the month beginning 
September 1, 2020, through 
the month ending June 30, 
2021 	3.5% 
FY 2022 	5.0% 
FY 2023 through FY 2027 	5.25% 
FY 2028 and each fiscal year thereafter 	5.0%; 
4.  a. except as otherwise provided in subparagraph b of this 
paragraph, for the fiscal year beginning July 1, 2022, 
and for each fiscal year thereafter, eighty-seven one-
hundredths percent (0.87%) shall be paid to the State 
Treasurer to be further apportioned as follows: 
(1) twenty-four percent (24%) shall be placed to the 
credit of the Oklahoma Tourism Promotion 
Revolving Fund, but in no event shall such   
 
 
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apportionment exceed Five Million Dollars 
($5,000,000.00) in any fi scal year, 
(2) forty-four percent (44%) shall be placed to the 
credit of the Oklahoma Tourism Capital 
Improvement Revolving Fund, but in no event shall 
such apportionment exceed Nine Million Dollars 
($9,000,000.00) in any fiscal year, and 
(3) thirty-two percent (32%) shall be placed to th e 
credit of the Oklahoma Route 66 Commission 
Revolving Fund, but in no event shall such 
apportionment exceed Six Million Six Hundred 
Thousand Dollars ($6,600,000.00) in any fiscal 
year, and 
b. any amounts which exceed the limitations of 
subparagraph a of this paragraph shall be placed to 
the credit of the General Revenue Fund; and 
5.  For the fiscal year beginning July 1, 2015, and for each 
fiscal year thereafter, six one-hundredths percent (0.06%) shall be 
placed to the credit of the Oklahoma Historical Society Capital 
Improvement and Operations Revolving Fund, but in no event shall 
such apportionment exceed the total amount apportioned pursuant to 
this paragraph for the fiscal year ending on June 30, 2015.  Any 
amounts which exceed the limitations of this paragraph shall be 
placed to the credit of the General Revenue Fund.   
 
 
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B.  Provided, for the fiscal year beginning July 1, 2007, and 
every fiscal year thereafter, an amount of revenue shall be 
apportioned to each municipality or county which levies a sales tax 
subject to the provisions of Section 1357.10 of this title and 
subsection F of Section 2701 of this title equal to the amount of 
sales tax revenue of such municipality or county exempted by the 
provisions of Section 1357.10 of this title and subsection F of 
Section 2701 of this title. The Oklahoma Tax Commission shall 
promulgate and adopt rules necessary to implement the provisions of 
this subsection. 
C.  From the monies that would otherwise be apportioned to the 
General Revenue Fund pursuant to subsection A of this section, there 
shall be apportioned the following amounts: 
1.  For the month ending August 31, 2019: 
a. Nine Million Six Hundred Thousand Dollars 
($9,600,000.00) to the credit of the State Highway 
Construction and Maintenance Fund created in Section 
1501 of Title 69 of the Oklahoma Statutes, and 
b. Two Million Dollars ($2,000,000.00) to the credit of 
the Oklahoma Railroad Maintenance Revolving Fund 
created in Section 309 of Title 66 of the Oklahoma 
Statutes; 
2.  For the month ending September 30, 2019:   
 
 
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a. Twenty Million Dollars ($20,000,000.00) to the credit 
of the State Highway Construction and Maintenance Fund 
created in Section 1501 of Title 69 of the Oklahoma 
Statutes, and 
b. Two Million Dollars ($2,000,000.00) to the credit of 
the Oklahoma Railroad Maintenance Revolving Fund 
created in Section 309 of Title 66 of the Oklahoma 
Statutes; 
3.  For the month ending October 31, 2019: 
a. Twenty Million Dollars ($20,000,000.00) to the credit 
of the State Highway Construction and Maintenance Fund 
created in Section 1501 of Title 69 of the Oklahoma 
Statutes, and 
b. Two Million Dollars ($2,000,000.00) to the credit of 
the Oklahoma Railroad Maintenance Revolving Fund 
created in Section 309 of Title 66 of the Oklahoma 
Statutes; 
4.  For the month ending November 30, 2019: 
a. Twenty Million Dollars ($20,000,000.00) to the credit 
of the State Highway Construction and Maintenance Fund 
created in Section 1501 of Title 69 of the Oklahoma 
Statutes, and 
b. Two Million Dollars ($2,000,000.00) to the credit of 
the Oklahoma Railroad Maintenance Revolving Fund   
 
 
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created in Section 309 of Title 66 of the Oklahoma 
Statutes; and 
5.  For the month ending December 31, 2019: 
a. Twenty Million Dollars ($20,000,000.00) to the credit 
of the State Highway Construction and Maintenance Fund 
created in Section 1501 of Title 69 of the Oklahoma 
Statutes, and 
b. Two Million Dollars ($2,000,000.00) to the credit of 
the Oklahoma Railroad Maintenance Revolving Fund 
created in Section 309 of Title 66 of the Oklahoma 
Statutes. 
D.  For fiscal year 2023, and each subsequent fiscal year, 
before any other apportionment otherwise required by this section is 
made to the General Revenue Fund, there shall be apportioned to the 
State Public Common School Building Equalization Fund an amount, if 
any, as required pursuant to Section 3-104 of Title 70 of the 
Oklahoma Statutes, not to exceed the state sales tax generated by 
medical marijuana sales in the preceding fiscal year as reported by 
the Oklahoma Tax Commission. 
SECTION 5.     AMENDATORY    70 O.S. 2021, Section 3 -104, is 
amended to read as follows: 
Section 3-104.  A.  The supervision of the public school system 
of Oklahoma shall be vested in the State Board of Education and,   
 
 
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subject to limitations otherwise provided by law, the State Bo ard of 
Education shall: 
1.  Adopt policies and make rules for the operation of the 
public school system of the state; 
2.  Appoint, prescribe the duties, and fix the compensation of a 
secretary, an attorney, and all other personnel necessary for the 
proper performance of the functions of the State Board of Education.  
The secretary shall no t be a member of the Board; 
3.  Submit to the Gover nor a departmental budget based upon 
major functions of the Department as prepared by the State 
Superintendent of Public Instruction and supported by detailed data 
on needs and proposed operations as parti ally determined by the 
budgetary needs of local sch ool districts filed with the State Board 
of Education for the ensuing fiscal year.  Appropriations therefor 
shall be made in lump-sum form for each major item in the budget as 
follows: 
a. State Aid to schools, 
b. the supervision of all other functions of g eneral and 
special education including general control, free 
textbooks, school lunch, Indian education , and all 
other functions of the Board and an a mount sufficient 
to adequately staff and administer thes e services, and 
c. the Board shall determine the de tails by which the 
budget and the appropriations are adminis tered.    
 
 
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Annually, the Board shall make preparations to 
consolidate all of the functions o f the Department in 
such a way that the budget can be ba sed on two items, 
administration and aid to schools .  A maximum amount 
for administration shall be designated a s a part of 
the total appropriation; 
4.  On the first day of December preceding each regu lar session 
of the Legislature, prepare and deliver to t he Governor and the 
Legislature a report for the ye ar ending June 30 immediately 
preceding the regular session of the Legislature.  The report shall 
contain: 
a. detailed statistics and other informati on concerning 
enrollment, attendance, expenditures inclu ding State 
Aid, and other pertinent data for all pu blic schools 
in this state, 
b. reports from each and every d ivision within the State 
Department of Education as submitte d by the State 
Superintendent of Public Instruction and any other 
division, department, institution, or other agency 
under the supervision of the Board, 
c. recommendations for the improvement of t he public 
school system of the state, 
d. a statement of the receipts and expenditures of the 
State Board of Education for the past year, and   
 
 
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e. a statement of plans and recommendations for the 
management and improvement of public schools and such 
other information relating to the educational 
interests of the state as may be deemed necessary an d 
desirable; 
5. Provide for the formulation and adoptio n of curricula, 
courses of study, and other instructional aids necessary for the 
adequate instruction of pupils in the public schools; 
6.  Have authority in matters pertai ning to the licensure and 
certification of persons for instructional, supervisory, and 
administrative positions and services in the publ ic schools of the 
state subject to the provisions of Section 6-184 of this title, and 
shall formulate rules governing th e issuance and revocation of 
certificates for superintendents of schools, principals, 
supervisors, librarians, clerical employees, schoo l nurses, school 
bus drivers, visiting teachers, classroom t eachers, and for other 
personnel performing instructional, a dministrative, and supervisory 
services, but not including members of boards of educa tion and other 
employees who do not work directly w ith pupils, and may charge and 
collect reasonable fees for t he issuance of such certificates: 
a. the State Department of Education shall not issue a 
certificate to and shall revoke the certificate of any 
person who has been convicted, whether upon a verdic t 
or plea of guilty or upon a plea of nolo contendere,   
 
 
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or received a suspended sentence or any probationary 
term for a crime or an attempt to commit a crime 
provided for in Section 843.5 of Title 21 of the 
Oklahoma Statutes if the offense involved sexual a buse 
or sexual exploitation as those terms are defined in 
Section 1-1-105 of Title 10A of the Oklahoma Statutes, 
Section 741, 843.1, if the offense i ncluded sexual 
abuse or sexual exploitation, 865 et seq. , 885, 888, 
891, 1021, 1021.2, 1021.3, 1040.13a, 10 87, 1088, 
1111.1, 1114 or 1123 of Title 21 of the Oklahoma 
Statutes or who enters this state and who has been 
convicted, received a suspended sentenc e, or received 
a deferred judgment for a crime or attemp ted crime 
which, if committed or attempted in this state, would 
be a crime or an attempt to commit a crime prov ided 
for in any of said the laws, 
b. all funds collected by the State Department of 
Education for the issuance of certificates to 
instructional, supervisory, and administrative 
personnel in the public schools of the state shall be 
deposited in the “Teachers’ Certificate Fund” in the 
State Treasury and may be expend ed by the State Board 
of Education to finance the activities of the State 
Department of Education necessary to administer the   
 
 
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program, for consultative services, publication costs, 
actual and necessary travel expenses as provided in 
the State Travel Reimbu rsement Act incurred by perso ns 
performing research work, and other expenses found 
necessary by the State Board of Education for the 
improvement of the preparation and certification of 
teachers in Oklahoma.  Provided, any unobligated 
balance in the Teacher s’ Certificate Fund in excess of 
Ten Thousand Dollars ($10,000.00) on June 30 of any 
fiscal year shall be transferred to the General 
Revenue Fund of the State of Oklahoma this state.  
Until July 1, 1997, the State Board of Education shall 
have authority for approval of teacher educati on 
programs.  The State Board of Education shall also 
have authority for the administration of teacher 
residency and professional development, subject to the 
provisions of the Oklahoma Teacher Preparation Act; 
7.  Promulgate rules governing the classificat ion, inspection, 
supervision, and accrediting of all pub lic nursery, kindergarten, 
elementary and secondary schools, and on-site educational services 
provided by public school districts or state-accredited private 
schools in partial hospitalization program s, day treatment programs, 
and day hospital programs as defined in this act for persons between 
the ages of three (3) and twenty-one (21) years of age in the state.    
 
 
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However, no school shall be denied accreditation solely on th e basis 
of average daily atte ndance. 
Any school district which maintains an elementar y school and 
faces the necessity of relocating its school facilities because of 
construction of a lake, either by state or federal authority, which 
will inundate the schoo l facilities, shall be entitl ed to receive 
probationary accreditation from the State Board of Education for a 
period of five (5) years a fter the effective date of this act 
September 5, 1975, and any school district, otherwise qualified, 
shall be entitled to receive probationary accreditat ion from the 
State Board of Education for a period of two (2) consecutive years 
to attain the minimum a verage daily attendance.  The Head Start and 
public nurseries or kindergartens operated from Community Action 
Program funds shall not be subjected to the accrediting rules of the 
State Board of Education.  Neither will the State Board of Education 
make rules affecting the operation of the public nurseries and 
kindergartens operated from federal funds secured through Communi ty 
Action Programs even though th ey may be operating in the public 
schools of the state.  However, any of the Head Start or public 
nurseries or kindergartens operated under federal regulations may 
make application for accrediting from the State Board of Ed ucation 
but will be accredited on ly if application for the approval of the 
programs is made. The status of no school district shall be changed 
which will reduce it to a lower classification until due notice has   
 
 
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been given to the proper authorities thereof and an opportunity 
given to correct the conditions which otherwise would be the cause 
of such reduction. 
Private and parochial schools may be accredited and classified 
in like manner as public school s or, if an accrediting association 
is approved by the S tate Board of Education, by proce dures 
established by the State Board of Education to accept accreditation 
by such accrediting associati on, if application is made to the State 
Board of Education for s uch accrediting; 
8.  Be the legal agent of the State of Oklahoma to accept, in 
its discretion, the provisions of any Act of Congress appropriating 
or apportioning funds which are now, or may h ereafter be, provided 
for use in connection with any phase of th e system of public 
education in Oklahoma.  It shall pres cribe such rules as it finds 
necessary to provide for the proper distribution of such funds in 
accordance with the state and federal law s; 
9.  Be and is specifically hereby designated as the agency of 
this state to cooperate and deal with any officer, boar d, or 
authority of the United Sta tes Government under any law of the 
United States which may require or recommend cooperation with any 
state board having charge of the administration of public schools 
unless otherwise provided by law; 
10.  Be and is hereby designated as the “State Educational 
Agency” referred to in Public Law 396 of the 79th Congress of the   
 
 
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United States, which law states that said the act may be cited as 
the “National School Lunch Act ”, and said the State Board of 
Education is hereby autho rized and directed to accept the terms and 
provisions of said the act and to enter into such agreements, not in 
conflict with the Consti tution of Oklahoma or the Constitution and 
Statutes of the Unite d States, as may be n ecessary or appropriate to 
secure for the State of Oklahoma this state the benefits of the 
school lunch program established and referred to in said the act; 
11.  Have authority to secure and administer the benefits of the 
National School Lunch Act, Public Law 396 of the 79th Congress of 
the United States, in the State of Oklahoma this state and is hereby 
authorized to employ or appoint and fix the compensation of such 
additional officers or employees and to incur such expenses as may 
be necessary for the ac complishment of the above purpose, administer 
the distribution of an y state funds appropriated by the Legislature 
required as federal matching to reimburse on children ’s meals; 
12.  Accept and provide for the administration of any land , 
money, buildings, gifts, donation, or other things of value which 
may be offered or beq ueathed to the schools under the supervision or 
control of said the Board; 
13.  Have authority to requi re persons having administrative 
control of all school districts in Oklahoma to make such regular and 
special reports regarding the activities of the sch ools in said the 
districts as the Board may deem needful for the proper exercise of   
 
 
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its duties and functions.  Such authority shall include the right of 
the State Board of Education to wit hhold all state funds under its 
control, to withhold official recogn ition, including accrediting, 
until such required reports have been filed and accepted in the 
office of said the Board and to revoke the certificates of persons 
failing or refusing to make such reports; 
14.  Have general su pervision of the school lunch pro gram.  The 
State Board of Education may sponsor workshops for personnel and 
participants in the school lunch program and may develop, print, and 
distribute free of cha rge or sell any mater ials, books, and 
bulletins to be used in such the school lunch programs.  There is 
hereby created in the State Treasury a revolving fund for the Board, 
to be designated the School Lunch Workshop Revolving Fund.  The fund 
shall consist of all fees derived f rom or on behalf of any 
participant in any such workshop sponsored b y the State Board of 
Education, or from the sale of any materials, books, and bulletins, 
and such funds shall be disbursed for expenses of such workshops and 
for developing, printing, and distributing of such the materials, 
books, and bulletins relating to the school lunch program.  The fund 
shall be administered in accordance with Section 155 of Title 62 o f 
the Oklahoma Statutes; 
15.  Prescribe all forms for school dis trict and county offi cers 
to report to the State Board o f Education where required.  The State 
Board of Education shall also prescribe a list of appropriation   
 
 
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accounts by which the funds of sc hool districts shall be budgeted, 
accounted for, and expended; and it shall be the du ty of the State 
Auditor and Inspector in prescribing all budgeting, accounting, and 
reporting forms for school funds to conform to such lists; 
16.  Provide for the establi shment of a uniform system of pupil 
and personnel accounting, re cords, and reports; 
17.  Have authority to provide for t he health and safety of 
school children and school personnel while under the jurisdiction of 
school authorities; 
18.  Provide for the su pervision of the transportation of 
pupils; 
19.  Have authority, upon request of the l ocal school board, to 
act in behalf of the public schools of the sta te in the purchase of 
transportation equipment; 
20.  Have authority and is hereby required to perform a ll duties 
necessary to the administration of the public school s ystem in 
Oklahoma as specified in the Oklahoma School Co de; and, in addition 
thereto, those duties not specifically mentioned herein if not 
delegated by law to any other agency or official; 
21.  Administer the State Public Common School Building 
Equalization Fund established b y Section 32 of Article X of the 
Oklahoma Constitution.  Any monies as may be appropriated or 
designated by the Legislature, other than ad valorem taxes, any 
other funds identified by the State Department of Education, which   
 
 
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may include, but not be limited to, grants-in-aid from the federal 
government for building purposes , the proceeds of all property that 
shall fall to the state by escheat, penalties for unlawful holding 
of real estate by corporations, and capital gains on assets of t he 
permanent school funds, shall be deposited in the Sta te Public 
Common School Building Equalization Fund. The fund shall be used to 
aid school districts and charter schools in acquiring bui ldings, 
subject to the limitations fixed by Section 32 of Articl e X of the 
Oklahoma Constitution.  It is hereby declared that the term 
“acquiring buildings” as used in Section 32 of Article X of the 
Oklahoma Constitution shall mean acquiring or improving s chool 
sites, constructing, repairing, remodeling, or equipping buildings, 
or acquiring school furniture, fixtures, or eq uipment.  It is hereby 
declared that the term “school districts” as used in Section 32 of 
Article X of the Oklahoma Constitution shall m ean school districts 
and eligible charter schools as defined in subsection B of this 
section.  The State Board of Educat ion shall disburse redbud school 
grants annually from the State Public Common School Building 
Equalization Fund to public schools and el igible charter schools 
pursuant to subsection B of this section.  The Board shall 
promulgate rules for the implementatio n of disbursing redbud school 
grants pursuant to this section.  The State Board of Education shall 
prescribe rules for making grants of aid from, and for otherwise 
administering, the fund pursuant to the provisions of thi s   
 
 
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paragraph, and may employ and fix the duties and compensation of 
technicians, aides, clerks, stenographers, attorneys, and other 
personnel deemed necessary to carry out the provisions of this 
paragraph.  The cost of administering the fund shall be paid f rom 
monies appropriated to the Stat e Board of Education for the 
operation of the State Department of Education.  From monies 
apportioned to the fund, the State Department of Education may 
reserve not more than one-half of one percent ( 1/2 of 1%) for 
purposes of administering the fund; 
22.  Recognize that the Director of th e Oklahoma Department of 
Corrections shall be the administrative authority for the schools 
which are maintained in the state reformatories and shall appoint 
the principals and teachers in such schools.  Provided, that rules 
of the State Board of Education for the classification, inspection, 
and accreditation of public schools shall be applicable to such 
schools; and such schools shall comply with standards set by the 
State Board of Educatio n; and 
23.  Have authority to admin ister a revolving fund which is 
hereby created in the State Treasury, to be designated the 
Statistical Services Revolving Fund.  The fun d shall consist of all 
monies received from the various school d istricts of the state , the 
United States Government, and other sources for the purpose of 
furnishing or financing statistical services and for any other 
purpose as designated by the Legislatur e.  The State Board of   
 
 
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Education is hereby authorized to enter i nto agreements with s chool 
districts, municipalities, th e United States Government, 
foundations, and other agencies or individuals for services, 
programs, or research projects.  The Statistica l Services Revolving 
Fund shall be administered in accordance wi th Section 155 of Tit le 
62 of the Oklahoma Statutes. 
B.  1.  The redbud school grants sha ll be determined by the 
State Department of Education as follows: 
a. divide the county four-mill levy revenue by four to 
determine the nonchargeable county four -mill revenue 
for each school district, 
b. determine the amount of new revenue generated by the 
five-mill building fund levy as authorized by Section 
10 of Article X of the Oklahoma Constitution for each 
school district as reported in the Oklahoma Cost 
Accounting System for the prece ding fiscal year, 
c. add the amounts calculated in subparagraphs a a nd b of 
this paragraph to determine the nonchargeable millage 
for each school district, 
d. add the nonchargeable millage in each district 
statewide as calculated in su bparagraph c of this 
paragraph and divide the total by t he average daily 
membership in public schools statewide based on the 
preceding school year’s average daily membership,   
 
 
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according to the provisions of Section 18-107 of this 
title.  This amount is the statewide nonchargeab le 
millage per student, known as th e baseline local 
funding per student, 
e. all eligible charter schools shall be included in 
these calculations as unique school districts , 
separate from the school district that may sponsor the 
eligible charter school, and the total number of 
districts shall be used to determine the statew ide 
average baseline local funding per student, 
f. for each school district or eligible charter school 
which is below the baseline local funding per student, 
the Department shall subtract the baseline local 
funding per student from the average nonchargeabl e 
millage per student of the school district or eligible 
charter school to determine the nonchargeable millage 
per student shortfall for each district, and 
g. the nonchargeable millage per student shortfall for a 
school district or eligible charter school shall be 
multiplied by the average daily membership of the 
preceding school year of the eligible school district 
or eligible charter school.  This amount shall be the 
redbud school grant a mount for the school district or 
eligible charter school.   
 
 
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2.  For fiscal year 2022, monies for the redbud school grants 
shall be expended from the funds apportioned pursua nt to Section 2 
Section 426 of this act Title 68 of the Oklahoma Statutes.  For 
fiscal year 2023 and each subsequent fis cal year, monies for the 
redbud school grants shall be appropriated pursuant to Section 2 of 
this act, not to exceed three-fourths (3/4) of the tax collected in 
the preceding fiscal year pursuant to Section 426 of Title 63 of the 
Oklahoma Statutes as determined by the Oklahoma Tax Commission.  For 
fiscal year 2023 and each subsequent fisca l year, if such 
appropriated funds are insufficient to fund the redbud school 
grants, then an additional apportionment of funds shall be made from 
sales tax collections as provided by subsection D of Section 3 of 
this act. If both funds are insufficient, the Department shall 
promulgate rules to pe rmit a decrease to the baseline local funding 
per student to the hig hest amount allowed with the funding 
available. 
3.  As used in this section, “eligible charter school ” shall 
mean a charter school which is spons ored pursuant to the provisions 
of the Oklahoma Charter School Schools Act.  Provided, however, 
“eligible charter school” shall not include a charter school 
sponsored by the Statewide Virtual Charter School Board but shall 
only include those which provide in-person or blended instruction, 
as provided by Section 1-111 of this title, to not less than two-  
 
 
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thirds (2/3) of students as the primary means of instructional 
service delivery. 
4.  The Department shall develop a program to acknowledge the 
redbud school grant recipients and shall include elected members of 
the Oklahoma House of Representatives and Oklahoma State Senate who 
represent the school districts and eligible chart er schools. 
5.  The Department shall create a dedicated page on its website 
listing annual redbud school grant recipients, amoun t awarded to 
each recipient, and other pertinent information about t he Redbud 
School Funding Act. 
6.  The Department shall provi de the Chair of the House 
Appropriations and Budget Committee and the Chair of the Se nate 
Appropriations Committee no later than February 1 of each year with 
an estimate of the upcoming year ’s redbud school grant allocation as 
prescribed by this section. 
SECTION 6.  It being immediat ely necessary for the preservation 
of the public peace, health or safety, an emergency is hereby 
declared to exist, by re ason whereof this act shall take effect and 
be in full force from and after its passage and approval. 
 
59-1-297 WR 1/18/2023 5:51:44 PM