SENATE FLOOR VERSION - SB758 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 15, 2023 AS AMENDED SENATE BILL NO. 758 By: Rosino of the Senate and Hilbert of the House [ medical marijuana - apportionments - Oklahoma Medical Marijuana Authority Fund - appropriation - Medical Marijuana Tax Fund - sales tax - State Board of Education - codification - 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: Section 426. A. The tax on retail medical marijuana sales shall be established at seven percent (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, tax proceeds shall be deposited into the Medical Marijuana Tax Fund created in Section 3 of this 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 t he budgeted SENATE FLOOR VERSION - SB758 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 amount 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 Sectio n 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: 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 SENATE FLOOR VERSION - SB758 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 c. 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 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 SENATE FLOOR VERSION - SB758 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Statutes 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 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 255.2, is amended to read as follows: Section 255.2. As provided in Section 426 of Title 63 of the Oklahoma Statutes, the State Department of Health Oklahoma Medical Marijuana Authority and the Oklahoma Tax Commission shall enter into a contract whereby t he Tax Commission shall have authority to assess, collect and enforce the seven percent (7%) tax on retail medical marijuana sales and any penalties and interest thereon. SENATE FLOOR VERSION - SB758 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Such assessment, collection and enforcement authority shall apply to any tax and any penalty or interest liability on retail medic al marijuana sales existing at the time of contracting. The contract shall provide for the assessment, collection and enforcement of the tax on retail medical marijuana sales in the same manner as the administration, collection and enforcement of any tax payable by any taxpayer subject to taxation under any state tax law. For providing such collection assistance, the Tax Commission shall charge the State Department of Health Oklahoma Medical Mari juana Authority a fee of one and five-tenths percent (1.5%) of the gross collection proceeds. All funds retained by the Tax Commission for the collection services shall be deposited in the Tax Commission Reimbursement Fund in the State Treasury. SECTION 5. 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 SENATE FLOOR VERSION - SB758 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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% 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: SENATE FLOOR VERSION - SB758 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (1) 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% 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 SENATE FLOOR VERSION - SB758 SFLR Page 8 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 apportionment exceed Five Million Dollars ($5,000,000.00) in any fiscal 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 SENATE FLOOR VERSION - SB758 SFLR Page 9 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. 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. SENATE FLOOR VERSION - SB758 SFLR Page 10 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. 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: 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 SENATE FLOOR VERSION - SB758 SFLR Page 11 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 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. SENATE FLOOR VERSION - SB758 SFLR Page 12 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 6. 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 v ested in the State Board of Education and, subject to limitations otherwise provided by law, the State B oard 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 Governor a departmen tal budget based upon major functions of the Department as prepared by the State Superintendent of Publi c Instruction and supported by detailed data on needs and proposed operations as parti ally determined by the SENATE FLOOR VERSION - SB758 SFLR Page 13 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 budgetary needs of local school districts f iled 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 general and special education including general control, free textbooks, school lunch, Indian education , and all other functions of the Board and an amount sufficient to adequately staff and administer thes e services, and c. the Board shall determine the details by which the budget and the appropriations are adminis tered. Annually, the Board shall make preparations to consolidate all of the functions of the Department in such a way that the budget can be ba sed on two items, administration and aid to schools. A maximum am ount for administration shall be designated a s a part of the total appropriation; 4. On the first day o f December preceding each regular session of the Legislature, prepare and deliver to t he Governor and the Legislature a report for the year ending June 30 immediately preceding the regular session of the Legislature. The report shall contain: SENATE FLOOR VERSION - SB758 SFLR Page 14 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. detailed statistics and other information concerning enrollment, attendance, expenditures inclu ding State Aid, and other pertinent data for all public schools in this state, b. reports from each and every d ivision within the State Department of Education as submitt ed 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 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 and desirable; 5. Provide for the formulation and adoptio n of curricula, courses of study, and other instructional aids nec essary for the adequate instruction of pupils in the public schools; 6. Have authority in matters perta ining to the licensure and certification of persons for instructional, supervisory, and administrative positions and services in the public schools of t he SENATE FLOOR VERSION - SB758 SFLR Page 15 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 state subject to the provisions of Section 6-184 of this title, and shall formulate rules governing t he issuance and revocation of certificates for superintendents of schools, principals, supervisors, librarians, clerical employees, school nurses, schoo l bus drivers, visiting teachers, classroom t eachers, and for other personnel performing instructional, administrative, and supervisory services, but not including members of boards of educa tion and other employees who do not work directly with pupils, and may charge and collect reasonable fees for t he issuance of such certificates: a. the State Department o f Education shall not issue a certificate to and shall revoke the certificate of any person who has been convicted, whether upon a verdict or plea of guilty or upon a plea of nolo contendere, 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 abuse 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 included sexual abuse or sexual exploitation, 865 et seq. , 885, 888, 891, 1021, 1021.2, 1021.3, 1040.13a, 1087, 1088, 1111.1, 1114 or 1123 of Title 21 of the Oklahoma Statutes or who enters this state and who has been SENATE FLOOR VERSION - SB758 SFLR Page 16 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 convicted, received a suspended sentence, 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 expen ded by the State Board of Education to finance the activities of the State Department of Education necessary to administer the program, for consultative services, publication costs, actual and necessary travel expenses as provided in the State Travel Reimb ursement Act incurred by persons 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 Teache rs’ 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. SENATE FLOOR VERSION - SB758 SFLR Page 17 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Until July 1, 1997, the State Board of Education shall have authority for approval of teacher education 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 classification, 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 programs, 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. However, no school shall be denied accreditation solely on t he basis of average daily attendance. Any school district which maintains an elementar y school and faces the necessity of relocating its school faciliti es because of construction of a lake, either by state or federal authority, which will inundate the scho ol facilities, shall be entitled to receive probationary accreditation from the State Board of Education for a period of five (5) years after the effective date of this act September 5, 1975, and any school district, otherwise qualified, shall be entitled to receive probationary accreditation from the State Board of Education for a period of two (2) consecutive years SENATE FLOOR VERSION - SB758 SFLR Page 18 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 to attain the minimum average daily attend ance. 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 op eration of the public nurseries and kindergartens operated from federal funds secured through Commun ity Action Programs even though they may be operating in the public schools of the state. However, any of the Head Start or public nurseries or kindergarte ns operated under federal regulations may make application for accrediting from the State Board of E ducation but will be accredited only 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 been given to the proper authorities thereo f and an opportunity given to correct the conditions which otherwise would be the cause of such reduction. Private and parochial schools may be accredited a nd classified in like manner as public school s or, if an accrediting association is approved by the State Board of Education, by procedures established by the State Board of Education to accept accreditation by such accrediting association, 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 SENATE FLOOR VERSION - SB758 SFLR Page 19 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 or apportioning funds which are now, or may hereafter be, provid ed for use in connection with any phase of th e system of public education in Oklahoma. It shall pre scribe such rules as it finds necessary to provide for the proper distribution of such funds in accordance with the state and federal laws ; 9. Be and is specifically hereby designated as the agency of this state to cooperate and deal with any officer, boa rd, or authority of the United States Government under any law of the United States which may require or recommend cooperation with any state board having c harge of the administration of public schools unless otherwise provided by law; 10. Be and is hereb y designated as the “State Educational Agency” referred to in Public Law 396 of the 79th Congress of the 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 auth orized and directed to accept the terms and provisions of said the act and to enter into such agreements, not in conflict with the Constitution 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 SENATE FLOOR VERSION - SB758 SFLR Page 20 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 authorized to employ or appoint and fix the compensation of such additional officers or e mployees and to incur such expenses as may be necessary for the ac complishment of the above purpose, administer the distribution of any 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 bequeathed to the schools under the supervision or control of said the Board; 13. Have authority to require persons having a dministrative control of all school districts in Oklahoma to make such regular and special reports regarding the activities of the schools in said the districts as the Board may deem needful for the proper exercise of its duties and functions. Such author ity shall include the right of the State Board of Education to wit hhold all state funds under its control, to withhold official recognition, 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 supervision of the school lunch program. The State Board of Education may sponsor workshops for personnel and participants in the school lunch program and m ay 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 SENATE FLOOR VERSION - SB758 SFLR Page 21 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 hereby created in the State Treasury a revolving fund for the Board, to be designated the School Lunch Work shop Revolving Fund. The fund shall consist of all fees derived f rom or on behalf of any participant in any such workshop sponsored by 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 of the Oklahoma Statutes; 15. Prescribe all forms for school dis trict and county offi cers to report to the State Board of Education where required. The State Board of Education shall also prescribe a list of appropriation accounts by which the funds of school districts shal l 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 establishment of a uniform system of pupil and personnel accounting, re cords, and reports; 17. Have authority to provide for the health and safety of school children and school personnel while under the jurisdiction of school authorities; 18. Provide for the supervision of the tr ansportation of pupils; SENATE FLOOR VERSION - SB758 SFLR Page 22 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 19. Have authority, upon request of the l ocal school board, to act in behalf of the public schools of the state in the purchase of transportation equipment; 20. Have authority and is hereby required to perform all duties necessary to the administration of the public school s ystem in Oklahoma as specified in the Oklahoma School C ode; and, in addition thereto, those duties not specifically mentioned herein if not delegated by law to any other agency or official; 21. Administer the S tate 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 St ate Department of Education, which 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 St ate Public Common School Building Equalization Fund. The fund shall be used to aid school districts and charter schools in acquiring buildings, subject to the limitations fixed by Section 32 of Articl e X of the Oklahoma Constitution. It is hereby declare d that the term “acquiring buildings” as used in Section 32 of Article X of the Oklahoma Constitution shall mean acquiring or improving school SENATE FLOOR VERSION - SB758 SFLR Page 23 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 sites, constructing, repairing, remodeling, or equipping buildings, or acquiring school furniture, fixtures, or e quipment. It is hereby declared that the term “school districts” as used in Section 32 of Article X of the Oklahoma Constitution shall mean school district s and eligible charter schools as defined in subsection B of this section. The State Board of Educa tion shall disburse redbud school grants annually from the State Public Common School Building Equalization Fund to public schools and eligible charter scho ols pursuant to subsection B of this section. The Board shall promulgate rules for the implementati on 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 o therwise administering, the fund pursuant to the provisions of thi s paragraph, and may employ and fi x the duties and compensation of technicians, aides, clerks, stenographers, attorneys, and other personnel deemed necessary to carry out the provisions of t his paragraph. The cost of administering the fund shall be paid f rom monies appropriated to the Sta te 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 the Oklahoma Department of Corrections shall be the administrative authority for the schools SENATE FLOOR VERSION - SB758 SFLR Page 24 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 which are maintained in the sta te reformatories and shall appoint the principals and teachers in such schools. Provided, that rule s of the State Board of Education for the classification, inspection, and accreditation of public schools shall be applicable to such schools; and such scho ols shall comply with standards set by the State Board of Educatio n; and 23. Have authority to admi nister a revolving fund which is hereby created in the State Treasury, to be designated the Statistical Services Revolving Fund. The fund shall consist of all monies received from the various school d istricts of the state , the United States Government, an d other sources for the purpose of furnishing or financing statistical services and for any other purpose as designated by the Legislature. The State Board of Education is hereby authorized to enter i nto agreements with s chool districts, municipalities, t he United States Government, foundations, and other agencies or individuals for services, programs, or research projects. The Statistical Services Revolvin g Fund shall be administered in accordance wi th Section 155 of Tit le 62 of the Oklahoma Statutes. B. 1. The redbud school grants shall 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, SENATE FLOOR VERSION - SB758 SFLR Page 25 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 b. 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 and b of this paragraph to determine the nonchargeable millage for each school district, d. add the nonchargeable millage i n each district statewide as calculated in su bparagraph c of this paragraph and divide the total by the average daily membership in public schools statewide based on the preceding school year’s average daily membership, according to the provisions of Secti on 18-107 of this title. This amount is the statewide nonchargeab le millage per student, known as t he 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 statewide average baseline local funding per student, SENATE FLOOR VERSION - SB758 SFLR Page 26 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 nonchargeable 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. 2. For fiscal year 2022, monies for the redbud school grants shall be expended from the funds apportioned pursuant to Section 2 Section 426 of this act Title 63 of the Oklahoma Statutes. For fiscal year 2023 and each subsequent fi scal 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 collec ted in the preceding fiscal year pursuant to S ection 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 redbu d school SENATE FLOOR VERSION - SB758 SFLR Page 27 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 grants, then an additional apportionm ent 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- 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 char ter 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. SENATE FLOOR VERSION - SB758 SFLR Page 28 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. The Department shall prov ide 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 7. It being immediately 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 an d approval. COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS February 15, 2023 - DO PASS AS AMENDED