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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL NO. 758 By: Rosino of the Senate
and
Hilbert of the House
COMMITTEE SUBSTITUTE
An Act relating to medical marijuan a; amending 63
O.S. 2021, Sections 426, as amended by Section 27,
Chapter 228, O.S.L. 2022 , and 427.5 (63 O.S. Supp.
2022, Section 426), which relate to medical
marijuana; deleting certain apportionments;
establishing new app ortionment schedule; modifying
fund characteristics; renaming fund; limiting
expenditure to appropriated amounts; creating the
DMHSAS Medical Marijuana Programming Revolving Fund ,
the OMMA Marijuana Oversight Revolving Fund, and the
SDH Drug and Alcohol Re habilitation Revolving Fund;
establishing fund characteristics; limiting and
providing for budgeting and expenditure of funds;
requiring certain approval of expenditures; amending
68 O.S. 2021, Section 255.2, which relates to tax on
retail sales; clarifyin g statutory references;
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;
modifying certain apportionments; amending 70 O.S.
2021, Section 3-104, which relates to the State Board
of Education; modifying certain apportionment;
updating statutory references; clarifying language;
providing for codification; providing an effective
date; and declaring an emergency.
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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
and shall be apportioned as provided for in subsection D, tax
proceeds will be applied primarily to finance the regulatory office
of this section.
C. Except as provided for in subsection D, if proceeds from the
levy authorized by subsection A of this section exceed t he 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 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
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subsection A of this section including any interest and penalty
thereon.
E. D. For state fiscal year 2022 2024 and thereafter, proceeds
from the levy authorized by sub section 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%)
Forty and five-tenths percent (40.5%) to the State Public Comm on
School Building Equa lization Fund,;
b. thirty-four and sixty-two hundredths percent (34.62%)
2. Thirty percent (30%) to the OMMA Marijuana Oversight
Revolving Fund created in Section 4 of this act;
3. Thirteen and thirty-five hundredths percent (1 3.35%) to the
Oklahoma Medical Marijuana Authority, a division within the Oklahoma
State Department of Health, and
c. six and fifteen hundredths percent (6.15%) DMHSAS
Medical Marijuana Program ming Revolving Fund created
in Section 3 of this act;
4. Ten percent (10.0%) 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 County Sheriff Public Safety
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Grant Revolving Fund created in S ection 427.3a of Title 63 of the
Oklahoma Statutes; and
5. Six and fifteen hundredths percent ( 6.15%) to the SDH Drug
and Alcohol Rehabilitation R evolving Fund created in Section 5 of
this act.
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 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 rece ived by the Department Oklahoma
Medical Marijuana Authority from fees and fines collected pursuant
to this act and all monies received by the Oklahoma Tax Commission
from tax proceeds collected pursuant to Section 426 of Title 63 of
the Oklahoma Statutes. All monies accruing to the credit of the
fund are hereby appropriated and may be budgeted and expended by the
Department for the purposes set forth in Section 426 of Title 63 o f
the Oklahoma Statutes. Expenditures from the fund shall be made
upon warrants issued by the State Treas urer against claims file d 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 Protection Act. All monies accruing to the
credit of the fund shall be appropriated at the dis cretion of the
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Legislature for the purpose of funding the medical marijuana
regulatory office and operations.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 527.5a of Title 63, unless there
is created a duplication in numbering, rea ds as follows:
There is hereby created in the State Treasury a revolving fund
for the Department of Mental Health a nd Substance Abuse Services to
be designated the "DMHSAS Medical Marijuana Programming Revolving
Fund". The fund shall be a continuing fund, not subject to fiscal
year limitations, and shall consist of all monies designated for
deposit to the fund in accordance with law. All monies accruing to
the credit of said fu nd are hereby appropriated and may be budgeted
and expended by the Department of Mental Health and Substance A buse
Services to perform the duties imposed upon th e Department by law.
Expenditures from said fund 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 Serv ices for
approval and payment .
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 527.5b of Title 63, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fun d
for the Oklahoma Medical Mariju ana Authority to be designated the
"OMMA Marijuana Oversight Revolving Fund". The fund shall be a
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continuing fund, not subject to fiscal year limitations, and shall
consist of all monies designated for deposit to the fund in
accordance with law. All moni es accruing to the credit of said fund
are hereby appropriated and may be budgeted and expended by the
Oklahoma Medical Marijuana Authority to perform the duties imposed
upon the Authority by law. Expenditures from said fu nd shall be
made upon warrants is sued 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.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 527.5c of Title 63, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the State Department of Health to be desi gnated the "SDH Drug
and Alcohol Rehabilitation Revolving Fund". The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies designated for deposit to the fund in
accordance with law. All monies accruing t o the credit of said fund
are hereby appropriated and may be budgeted and expended by the
State Department of health for the purpose of providing or
facilitating drug and alcohol rehabilitation. Expenditures from
said fund shall be made upon warrants issu ed by the State Treasurer
against claims filed as prescribed by law with the Director of the
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Office of Management and Enterprise Services for approval and
payment.
SECTION 6. 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.
Such assessment, collection and enforcement authority shall apply to
any tax and any penalty or interest liability on retail medical
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.
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SECTION 7. 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%
FY 2008 through FY 2022 83.61%
FY 2023 through FY 2027 83.36%
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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%
FY 2005 3.75%
FY 2006 4.0%
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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
apportionment exceed Five Million Dollars
($5,000,000.00) in any fiscal year,
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(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.
B. Provided, for the fiscal year beginning July 1, 2007, and
every fiscal year thereafter, an amount of revenue shall be
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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:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
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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
created in Section 309 of Title 66 of the Oklahoma
Statutes; and
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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 2024, and each subsequent fiscal year,
during the month of May 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
estimated state sales tax generated by medical marijuana sales in
the preceding fiscal year as reported by the Oklahoma Tax
Commission.
SECTION 8. 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 Board of
Education shall:
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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 necessa ry 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 Public Instruction and supported by detailed data
on needs and proposed operations as parti ally determined by the
budgetary needs of local school districts f iled with the State Board
of Education for the ensuing fiscal year. Appropriations the refor
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 pre parations to
consolidate all of the functions of the Department in
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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 of 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:
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 submitted 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
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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 pertaining to the licensure and
certification of persons for instructional, supervisory, and
administrative positions and services in the public schools of t he
state subject to the provisions of Section 6-184 of this title, and
shall formulate rules governing the 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 of 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 probati onary
term for a crime or an attempt to commit a crime
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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 h as been
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 expended 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
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the State Travel Reimbursement 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 Teachers’ 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 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 accredit ation solely on the basis
of average daily attendance.
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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 school 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
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 Community
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 Education
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 thereof and an opportunity
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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
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 prescribe 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, board, 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 hereby 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
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the “National School Lunch Act ”, and said the State Board of
Education is hereby authorized 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
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
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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
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,
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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;
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 Code; 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
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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 State 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 declared that the term
“acquiring buildings” as used in Section 32 of Article X of the
Oklahoma Constitution shall mean acquiring or improving school
sites, constructing, repairing, remodeling, or equipping buildings,
or acquiring school furniture, fixtures, or equipment. 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 Education 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 implementation 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 fix the duties and compensation of
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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 State 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
which are maintained in the sta te 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 scho ols shall comply with standards set by the
State Board of Educatio n; and
23. Have authority to administer 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, and 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
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districts, municipalities, the 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,
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
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title. This amount is the statewide nonchargeab le
millage per student, known as the 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,
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.
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2. For fiscal year 2022, monies for the redbud school grants
shall be expended primarily 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 fiscal 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 th e
Oklahoma Statutes as determined by the Oklahoma Tax Commission. For
fiscal year 2023 2024 and each subsequent fisca l year, if such
appropriated funds apportionment combined with related
appropriation, if any, are insufficient to fund the redbu d school
grants, then an additional apportionment of funds shall be made from
sales tax collections as provided by subsection D of Section 3 1353
of this act Title 68 of the Oklahoma Statutes . If both funds are
insufficient, the Department shall promulgate rules to permit a
decrease to the baseli ne local funding per student to the highest
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 char ter schools.
5. The Department shall create a dedicated page on its website
listing annual redbud school grant recipients, amount awarded to
each recipient, and other pertinent information about the Redbud
School Funding Act.
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 9. This act shall become effective July 1, 2023.
SECTION 10. 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.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AN D BUDGET, dated
04/17/2023 - DO PASS, As Amended.