Oklahoma House Bill HB2413

Oklahoma 2024 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23
• Refer: 2/20/23

Caption

Schools; educational management organizations; requiring new contracts only be executed with certain educational management organizations; effective date.

Impact

The bill's passage would significantly impact the operational landscape of charter schools in Oklahoma. By restricting contracts to nonprofit EMOs, it aims to enhance the governance and oversight of how public funds are utilized in the management of charter schools. The requirement for charter schools to use the Oklahoma Cost Accounting System to report payments to EMOs and itemized expenditures is also designed to bolster transparency. Additionally, EMOs must disclose any ownership positions held by their stakeholders in related entities, promoting ethical conduct within the educational management sphere.

Summary

House Bill 2413 modifies current regulations surrounding educational management organizations (EMOs) that provide services to charter schools and virtual charter schools in Oklahoma. The bill mandates that, starting November 1, 2023, any new contracts or renewals between charter schools and EMOs must be strictly with nonprofit organizations or benefit corporations, thus excluding for-profit entities from this arrangement. Existing contracts with for-profit EMOs can continue until their expiration or until the terms of the contract are renewed or terminated. This shift aims to ensure the fiscal integrity and accountability of institutions managing public educational funds.

Contention

Despite its intentions, the bill may face contention regarding its implications for operational flexibility among charter schools. Supporters argue that the focus on nonprofit management will drive accountability and improve educational outcomes, while critics may view it as overly restrictive, potentially hindering the ability of charter schools to utilize diverse management models that could serve their unique needs. Additionally, there are concerns about the immediate availability of potential nonprofit EMOs to take on new contracts, which could create practical challenges for schools currently reliant on for-profit management.