Req. No. 2605 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 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 2nd Session of the 59th Legislature (2024) SENATE BILL 1713 By: Jech AS INTRODUCED An Act relating to interlocal cooperative agreements; amending 70 O.S. 2021, Section 5 -117b, which relates to interlocal cooperative agreements between boards of education of two or more school districts; requiring certain boards of directors to maintain certain positions on board; updating statutory language; 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 5 -117b, is amended to read as follows: Section 5-117b. A. The boards of education of any two or more school districts may enter into an interlo cal cooperative agreement for the purpose of jointly and comparatively performing any of the services, duties, functions, activities, obligations, or responsibilities which are authorized or required by law to be performed by school districts of this state . Two or more school districts may enter into an interlocal cooperative agreem ent for the purpose of forming buying po ols and purchasing cooperatives. As used in this section, “interlocal cooperative agreement ” means an Req. No. 2605 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 agreement which is entered into by the boards of education of t wo or more school districts pursuant to the provisions of this section. This section shall not prohibit school distr icts from entering into cooperative agreements authorized un der Section 5-117 of this title or interfere with existing cooperative agreements between school districts. If the boards of edu cation of any two or more school districts enter into an interlocal cooperative agreement the following conditions may apply: 1. An interlocal cooperative agreement shall estab lish a board of directors which shall be responsible for administering the joint or cooperative undertaking. The agreement shall specify the organization, terms, and composition of, and manner of appointme nt to, the board of directors and shall make provi sion for restructuring or terminating the board upon partial or complete termination of the agreement. The board of di rectors shall be selected by the board of education of each contracting school district and may include but not be limited to a board mem ber, administrator, or teacher from each contracting school district. Vacancies in the membership of the board of directors shall be filled within thirty (30) days from the date of the vacancy in the manner specified in the agreement . Provided, however, an interlocal cooperative agreement entered into pursuant to this act for the purpose of providing insurance for Oklahoma educational instit utions Req. No. 2605 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 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 shall maintain at least one of each of the following positions on the board of directors: a. an individual who is a member of the American Academy of Actuaries, and b. an individual with more than ten (10 ) years of professional experience in property and casualty insurance; 2. An interlocal cooperative agreement which is optional to school districts and shall be effective only after it is approved by the State Board of Education and the bo ard of directors may be designated as a local education agency for som e or all state and federal application, reporting, and auditing procedures. An interlocal cooperative boar d of directors that has been designated as a local education agency shall comply with state and federal law and the regulations of the State Board of Education; 3. An interlocal cooperative agreement shall be subject to change or termination by a recommen dation of the State Board of Education; 4. The duration of an interlocal coope rative agreement for joint or cooperative action in performing any of the services, duties, functions, activ ities, obligations, or responsibilities, other than the provision of special education services, which are authorized or required by law of school districts in this state, shall be for a term of not less than one (1) year. Notice of int ent Req. No. 2605 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of a school district to withdraw from the cooperative agreement must be given no later than March 15 for the ensuing school year; 5. An interlocal cooperative agr eement shall specify the method or methods to be employed for disposing of property upon partial or complete termination of the agreement; 6. Within the limitations provided by law, an interlocal cooperative agreement may be changed or modified by majority consent of the interlocal cooperative board of directors; 7. Except as otherwise speci fically provided in this section, any powers, privileges, or authority exercised or capa ble of being exercised by any school district of this state, or by any board of education thereof, may be jointly exercised pursuant to the provisions of an interlocal cooperative agreement . Federal grant money, applied for on behalf of a school district, may be disbursed directly to a an interlocal cooperative with the consent of the school districts comprising the inte rlocal cooperative. No powers, privileges, or authority with respect to the levy and collection of taxes or the application for or receip t of State Aid formula money, or the issuance of bonds sh all be created or effe ctuated for joint exercise pursuant to the provisions of an interlocal cooperative agreement; and 8. Payments from the general fund of each school district which enters into any interlocal cooperative agreement for the purpose of Req. No. 2605 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 financing the joint or cooperative undertaking provided for by t he agreement shall be operating expenses. B. Nothing contained in this section shall be construed to abrogate, interfere with, impair, qualify, or affect in any manner the exercise and enjoyment of all the powers, pr ivileges, and authority conferred upon school districts and boards of education by law, except that boards of educat ion and school districts are required to comply with the prov isions of this section when entering into an interlocal cooperative agreement that meets the definition of an interlocal cooperative agreement. SECTION 2. This act shall become effective July 1, 2024. 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 this act shall take effect and be in full force from a nd after its passage and approval. 59-2-2605 RD 1/16/2024 5:34:29 PM