Req. No. 7061 Page 1 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 OF OKLAHOMA 1st Session of the 59 th Legislature (2023) HOUSE BILL 2080 By: Caldwell (Chad) AS INTRODUCED An Act relating to schools; amending 70 O.S. 2021, Section 18-124, which relates to State Aid; removing certain limitation on administrative services expenditures; modifying school attendance requirements for certain limitation; updating definition for administrative services; deleting outdated reference; providing an effective date ; and declaring an emergency . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 70 O.S. 2021, Section 18 -124, is amended to read as follows: Section 18-124. A. Any school district with an average daily attendance (ADA) of more th an one thousand five hundred (1,50 0) students for the preceding year which expends for adminis trative services in the 2005 -06 school year or any school year thereafter, less expenditures for legal services, more than five percent (5%) of the amount it expends for total expenditures, less e xpenditures for legal services, shall have the amount which exceeds the five percent Req. No. 7061 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (5%) withheld the following year from the Foundation and Salary Incentive Aid for the school district. B. Any school district with an av erage daily attendance (ADA) of more than five hundred (500) students but not more than one thousand five hundred (1,500) students for the preceding year which expends for administrative services in the 2005 -06 school year or any school year thereafter, le ss expenditures for legal services , more than seven percent (7%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the seven percent (7%) withheld the following year from the Foundati on and Salary Incentive Aid for th e school district. C. B. Any school district with an average d aily attendance (ADA) of five hundred (500) or fewer students for the preceding year which expends for administrative services in the 2005 -06 school year or any school year thereafter, less exp enditures for legal services, more than eight percent (8%) of the amount it expends for total expenditures, less expenditures for legal services, shall have the amount which exceeds the eight percent (8%) withheld the following year from the Foundation and Salary Incentive Aid for the school district. D. C. For purposes of this section, "administrative services " means costs associated with: Req. No. 7061 Page 3 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. Staff expenditures for the administration of schools and school districts including, but not limited to, expenditures for the board of education; 2. The secretary/clerk for the board of education; 3. Staff relations; 4. Negotiations staff; 5. Immediate staff of the superintendent, any elementary superintendent or any assistant su perintendent; 6. Any superintende nt, elementary superintendent, or assistant superintendent; 7. Any employee of a school district employed as a director, coordinator, supervisor, or who has responsibility for administrative functions of a school district ; and 8. Any consultant hired by the school district administration of school districts, superintendent and other school district administrative employees and support staff , principals and other school administrative emplo yees and administrative support staff, full-time department chair persons, graduation expenses, and business and central offices expenditures including, but not limited to, fiscal services, budgeting, payroll, purchasing, storage, mate rial distribution, planning, research, evaluation, staf f recruitment, and data processing. E. D. If an employee of a school district is employed in a position where part of the employee 's time is spent as an Req. No. 7061 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 administrator and part of the time is spen t in nonadministrative functions, the percentage of time spe nt as an administrator shall be included as administrative services. A superintendent who spends part of the time performing exempted nonadministrative services such as teaching in the classroom, serving as a principal, counselor, or library media special ist, can code up to forty percent (40%) of their salary to other nonadministrative functions. The total amount of time a superintendent of a school district spends performing services for a schoo l district shall be included as administrative services even if part of the time the superinte ndent is performing nonexempted nonadministrative service functions . The total amount received by a superintendent from the school district as salary, for the performance of administrative and nonexempted nonadministrativ e services, shall be recorded unde r the code for superintendent salary as provided for in the Oklahoma Cost Accounting System. F. E. Each school site within a school district shall take steps to ensure that the administrative costs for the school comply with the expenditure limits establi shed for school districts in this section. G. F. Funds withheld pursuant to the provisions of this section shall be distributed through the State Aid formula to the di stricts not so penalized. H. For the 2003-04 and 2004-05 school year, school districts shall report to the State Department of Education the costs Req. No. 7061 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 associated with administrative services for the school district as defined in subsection D of this section. SECTION 2. This act shall become effe ctive July 1, 2023. SECTION 3. 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. 59-1-7061 EK 01/16/23