Req. No. 6165 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 59th Le gislature (2023) HOUSE BILL 2413 By: Johns AS INTRODUCED An Act relating to schools; amending 70 O.S. 2021, Section 5-200, which relates to educational management organizations ; modifying definition; requiring new contracts only be executed with certain educational management organization s; authorizing certain contracts to remain effective until expiration, termination, or renewal ; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 70 O.S. 2021, Section 5 -200, is amended to read as follows: Section 5-200. A. As used in this section, "educational management organization " means a for-profit or nonprofit an organization that receives public funds to provide administration and management services for a charter school, statewide virtual charter school or traditional public schoo l. B. Beginning November 1, 2023, a charter school or virtual charter school that executes a new contract or renews a contract with an educational management orga nization shall only contract with Req. No. 6165 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 an educational management organization that is a nonprofit organization or a benefit corporation organized pursuant to the Oklahoma Benefit Corporation Act. If a charter school or virtual charter school has an existing contract with an educational management organization that is not a nonprofit organization or benefit corporation on or before October 1, 2023 , the contract may remain in effect until the contract term expires , terminates, or is eligible for renewal. C. A charter school that contracts with an educational management organizati on shall use the Oklahoma Cost Accounting System (OCAS) to report the total am ount paid to an educa tional management organization as well as itemized expenditure information for the goods or services provided by the management organization as defined by OCAS expenditure codes, including the total compensation package of the superint endent including the base salary, insurance, retirement and other fringe benefits. C. D. Any owner of an educational management organization shall be required to disclose to the go verning board of the school in a public meeting any ownership position in a ny business that cont racts or proposes to contract with the same public school that the educational management organization is managing. D. E. Whenever any person shall enter into a c ontract with any school district or public charter school in the state t o teach in such school district or public charter school the contract shall be Req. No. 6165 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 binding on the teacher and on the board of education until the teacher legally has been discharged from t he teaching position or released by the board of education from the cont ract. Except as provided in Section 5-106A of Title 70 of the Oklahoma Statutes, until such teacher has been thus discharged or released, the teacher shall not have authority to enter into a contract with any other board of education in Oklahoma for the s ame time covered by t he original contract. If upon written complaint by the board of education in a district any teacher is reported to have failed to obey the terms of the contract p reviously made and to have entered into a contract with another board of education, including a public charter school board of education, without having been released from the former contract except as provided in Section 5 -106A of Title 70 of the Oklahoma Statutes, the teacher, upon being found to be employed full-time for another public school, including a public charter school in the state, at a hearing held before the State Board of Education, shall have such teacher 's certificate suspended for the remainder of the term for which the contract was made. SECTION 2. This act shall become effective November 1, 2023. 59-1-6165 EK 01/13/23