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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 822 By: Daniels
AS INTRODUCED
An Act relating to students; creating the Oklahoma
Education Freedom Act; providing short title;
providing legislative intent; defining terms;
creating the Oklahoma Education Freedom Account
Program; providing for administration; providi ng
method of application; providing for parent
agreement; prohibiting certain discrimination;
providing certain construction; requiring renewal of
Oklahoma Education Freedom Accounts on annual basis;
allowing closure of accounts under certain
circumstances; requiring no tification within certain
time period of certain student enrolling in certain
school; providing for suspension of deposits into
account; providing for remittance of unused funds;
providing for calculation of State Aid amount;
requiring transfer of certa in calculated amount on a
monthly basis; prohibiting certain provider from
sharing, refunding, or rebating an amount with a
parent or certain stud ent; prohibiting personal
deposits into certain account; prohibiting certain
funds from being considered incom e; providing for
accrual of account funds; requi ring certain agency to
maintain list of certain providers; requiring certain
agency to provide certain information to certain
parents; requiring notice to be provided to parents
of certain children; allowing certain agency to
contract with certain firm or organization; allowing
withholding of certain p ercentage of funds to
administer program; requiring the establishment of
certain payment system; requiring implementation of
certain system to share information about education
service providers; providing for partial payment to
an education service provid er; authorizing certain
auditing; providing for the removal of certain parent
or student from eligibility under certain
circumstances; allowing referral for certain
investigation; providing for appeal; allowing for
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payments to cease to certain providers un der certain
circumstances; providing for appeal; al lowing
acceptance of gifts and grants for certain purposes;
providing for promulgation of rules; providing
process for approving education service providers;
directing provision of certain student records in
accordance with certain act; providing certain
construction; directing certain decrease in state
funding upon certain finding of noncompliance;
creating cause of action for certain noncompliance;
creating the Oklahoma Education Freedom Account
Revolving Fund; specifying sour ces of fund; providing
for expenditures; providing purpose of fund;
providing for establishment of burden in certain
legal proceeding; providing immunity from liability
for certain actions; allowing certain parents to
intervene in certain legal proceeding; providing for
severability; providing legislative intent to
increase certain appropriated amount; providing for
codification; providing for noncodification;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codi fied
in the Oklahoma Statutes as Section 28-100 of Title 70, unless there
is created a duplication in numbering, reads as follows:
A. This act shall be known and may be cited as the “Oklahoma
Education Freedom Act ”.
B. It is the intent of the Legislature that parents, legal
guardians, and others with legal authority over children in this
state be able to access educational services that meet the needs of
their individual children by dir ecting State Aid for which each
child is eligible to the education provider of their cho ice. The
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Legislature affirms that parents and legal guardia ns are best suited
to make decisions to help children in this state reach their full
potential and achieve a brighter future.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 28-101 of Title 70, unless there
is created a duplication in numb ering, reads as follows:
A. As used in the Oklahoma Education Freedom Act:
1. “Agency” means the Office of the Stat e Treasurer;
2. “Curriculum” means a complete course of study for a
particular content area or grade level;
3. “Oklahoma Education Freedom Account” means the account in
which funds are deposited by the Agency to pay for qualifying
education expenses for an eligible student;
4. “Education service provider” means a person, business,
public school district, public charter school, magnet school,
institution within The Oklahoma State System of Higher Education, or
organization that receives payments from a parent directing an
Oklahoma Education Freedom Account to provide educational goods
and/or services to Oklahoma Education Freedom Account students;
5. “Eligible student” means a resident of this sta te who is
eligible to enroll in a public school in th is state;
6. “Oklahoma Education Freedom Account student” means an
eligible student approved to participate in the Oklahoma Education
Freedom Account Program;
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7. “Parent” means a biological or adoptive parent, legal
guardian, custodian, or o ther person with legal authority to act on
behalf of an eligible student; and
8. “Qualified expense” means the following services provided by
an education service provider:
a. tuition and/or fees at a private school accredited or
in the process of obtaining accreditation from the
State Board of Education or another accrediting
association approved by the State Board of Education,
b. tuition and/or fees for non-public online learning
programs,
c. tutoring services pro vided by an individual or a
tutoring facility,
d. services contracted for and provid ed by a public
school district, public charter schoo l, or magnet
school including but not limited to classes and
extracurricular activities and pr ograms,
e. textbooks, curriculum, or other instructional
materials including but not limited to supplemental
materials or associated online instruction required by
an education service provider,
f. computer hardware or other tec hnological devices,
educational software, and applications that are used
to meet an eligible student’s curriculum needs,
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g. tuition and/or fees for a curricul um or program, along
with related instruments, supplies, accessories, and
materials, that provides instruction in drama, music,
speech and debate, agriculture, or other similar
activities,
h. school uniforms,
i. fees for nationally standardized assessments including
but not limited to assessments used to determine
college admission and advanced placement examinations
as well as tuition and/or fees for tutoring or
preparatory courses for the assessments,
j. tuition and/or fees for summer education programs a nd
specialized after-school education programs; provided,
however, that such expense does not include before-
school or after-school child care,
k. tuition, fees, instructional materials, and assessment
fees for a curriculum or program offered by a
technology center school,
l. educational services and therapies including but not
limited to occupational, be havioral, physical, speech-
language, and audiology therapies,
m. tuition and fees for concurrent enrollment at an
institution within The Oklahoma State System of Higher
Education,
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n. fees for transportation pa id to a fee-for-service
provider for the studen t to travel to and from an
education service provid er, or
o. any other qualified expense approved by the Agency.
B. There is hereby created the Oklahoma Education Freedom
Account Program to be administered by the Agency to provide an
Oklahoma Education Freedom Account for qualified expenses to support
the education of Oklahoma Education Freedom Account students in this
state.
C. 1. To apply for an Oklahoma Education Freedom Account, a
parent of an eligible s tudent shall submit an application to the
Agency on a form prescribed by the Agency and published on its
website. The application may be submitted online or by mail.
2. The Agency shall establish procedures to approve
applications within ten (10 ) business days after receipt. There
shall be no deadline for submission of applications. Applications
shall be approved if the parent signs an agreement to do all of the
following:
a. use the Oklahoma Education Freedom Account only for
qualified expenses to prov ide an education for an
eligible student in at least the subjects of reading,
English language art s, mathematics, science, and
social studies,
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b. not enroll the eligible student as a full-time student
in a public school district, public charter school, or
magnet school after acceptance of an Oklahoma
Education Freedom Account,
c. comply with rules and requirements of the Oklahoma
Education Freedom Account Program established by the
Agency, and
d. not accept a scholarship from the Lindsey Nico le Henry
Scholarships for Students with Disabilities Program
created by Section 13-101.2 of Title 70 of the
Oklahoma Statutes while participating in the Oklahoma
Education Freedom Account Program.
3. No student shall, on the ground s of race, color, or national
origin, be excluded from participation in, be denied the benefits
of, or be subjected to discrimination und er this program.
D. Nothing in this act shall be con strued to require that an
Oklahoma Education Freedom Account student be enrolled full time or
part time in a private school or a nonpublic online school.
E. The Agency shall renew Oklahoma Education Freedom Accounts
on an annual basis. An account may be closed if:
1. The parent of an Oklahoma Education Freedom Account student
enrolls the student as a fu ll-time student in a public school, as
provided for by subsection F of this section;
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2. The Agency closes the account due to intentional misuse as
provided for in Section 3 of this act; or
3. The Oklahoma Education Freedom Account student graduates
from high school or reaches the age of twenty-one (21), whichever
comes first.
F. The parent of an Oklahoma Education Freedom Account student
shall notify the Agency within five (5) days of the student
enrolling in a public school district, public ch arter school, or
magnet school. Upon receipt of the notific ation required by this
subsection, the Agency shall suspend deposits into the student’s
Oklahoma Education Freedom Account. Any unused funds remaining in
the Oklahoma Education Freedom Account at the end of the applicable
calendar year shall be remitted to the General Revenue Fund.
G. 1. For each eligible student approved to participate in the
Oklahoma Education Freedom Account Program, the A gency shall notify
the State Department of Education and request calculation of the
amount of State Aid for which the student is eligible. Within ten
(10) business days of receiving the request, the State Dep artment of
Education shall notify the Agency of the calculated amoun t, which
shall be equivalent to the total State Aid factors including pupil
category weights for the applicable school year multiplied by the
grade weight generated by the student for the applicable school
year.
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2. The State Department of Educatio n on a monthly basis shall
transfer to the Agency for deposit into the Oklahoma Education
Freedom Account Revolving Fund created pursuant to Section 5 of this
act an amount equal to one-twelfth (1/12) of the total amount
necessary to fund all Oklahoma Education Freedom Accounts requested
for the applicable school year. Within ten (10) business days of a
deposit required by this paragraph, the Agency shall make funds
available in Oklahoma Education Freedom Accounts.
3. Prior to the monthly deposit required by this sub section,
the Agency shall notify the State Department of Education if changes
to the number of participating Oklahoma Education Freedom Acco unt
students will result in a modification of the monthly deposit
amount.
H. An education service provider shall not share, refund, or
rebate any amount of an Oklahoma Education Freedom Account with the
parent or the Oklahoma Education Freedom Account student. A refund
or rebate for goods or services purchased with an Oklahoma Education
Freedom Account shall be credited to the Oklahoma Education Freedom
Account.
I. Parents shall be prohibited from making personal deposits
into an Oklahoma Education Freedom Account. However, no parent
shall be restricted from making payments for educational goo ds and
services not covered by funds in a stu dent’s Oklahoma Education
Freedom Account.
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J. Monies received pursuant to the Oklahoma Education Freedom
Account Program shall not constitute taxable income to the parent or
Oklahoma Education Freedom Account student.
K. Funds deposited into an Oklahoma Education Freedom Account
but unused shall accrue from month to month and from year to year
unless the account is closed pursuant to the provision s of
subsection E of this section.
SECTION 3. NEW LAW A new section of law to be c odified
in the Oklahoma Statutes as Section 28-102 of Title 70, unless there
is created a duplication in numb ering, reads as follows:
A. To implement the provisions of the Oklahoma Education
Freedom Act, the Agency shall maintain and make publicly available
on its website an updated list of education service providers.
B. The Agency shall provide parents of Oklahoma Education
Freedom Account students a written explanation of qual ified expenses
for which an Oklahoma Education Freedom Account may be used, the
responsibilities of parents, the duties of the Agency , and the role
of any private financial management firm or other pr ivate
organization with which the Agency may contract to admin ister the
Oklahoma Education Freedom Act.
C. The Agency shall provide parents of Oklahoma Education
Freedom Account students with disabilities notice that participation
in the Oklahoma Education Freedom Account Program shall have the
same effect as a parental revocation of consent pursuant to 20
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U.S.C., Sections 1414(a)(1)(D) an d 1414(C) of the Individuals with
Disabilities Education Act (IDEA) and an explanation of the rights
parents of Oklahoma Education Freedom Account students with
disabilities have under IDEA and any applicable state laws and
regulations.
D. The Agency may contract with a private financial management
firm or other private organization to administer in full or in part
the Oklahoma Education Freedom Account Program.
E. The Agency may withhold funding from deposits made pursuant
to subsection G of S ection 2 of this act to administer the Oklahoma
Education Freedom Account Program in an amount not to exceed five
percent (5%) annually for the first two years after the effective
date of this act and three percent (3 %) annually thereafter.
F. The Agency shall establish a commercially viable, cost-
effective, and parent -friendly system of payment for services from
Oklahoma Education Freedom Accounts to education service providers
by electronic or onlin e funds transfer.
1. The system of payment established pursuant to this
subsection shall provide maximum flexibility for parents by
facilitating direct payments to education service providers whenever
possible, provide a parent -friendly system for requests f or pre-
approval of qualified exp enses, and timely reimbursement for
qualified expenses.
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2. The Agency may contract with private entities to develop the
payment system.
G. The Agency shall implement a commercially viable, cost -
effective, and parent -friendly system for parents to pub licly rate,
review, and share information about education service providers.
H. If an education serv ice provider requires par tial payment of
tuition or fees to reserve a place for an Oklahoma Education Freedom
Account student prior to the start of the sc hool year, the partial
payment may be paid by the Agency prior to the start of the school
year in which the Oklahoma Education Freedom Account is opened and
may be deducted in equal amounts from month ly deposits into Oklahoma
Education Freedom Accounts. If the parent of an Oklahoma Education
Freedom Account student chooses not to use the education service
provider, the partial reservation payment shall be re mitted to the
Agency within fifteen (15 ) business days of notification of the
decision and credited to the student’s Oklahoma Education Freedom
Account.
I. The Agency shall have the authority to conduct an audit or
contract for the auditing of Oklahoma Education Freedom Accounts and
shall conduct random audits of ten percent (10%) of Oklahoma
Education Freedom Accounts on an annual basis.
J. The Agency shall have the authority to remove any parent or
Oklahoma Education Freedom Account student from eligibility for an
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Oklahoma Education Freedom Account in the event of intentional and
substantial misuse of Oklahoma Education Freedom Account funds.
1. The Agency shall create procedures to ensure a fair process
to determine whether an inte ntional and substantial misuse of
Oklahoma Education Freedom Account funds has occurred. If misuse by
a parent is established but the Oklahoma Education Free dom Account
student is determined to be free from personal misconduc t, he or she
shall be eligible for an Oklahoma Education Freedom Account in the
future if placed with a different parent, guardian, or other person
with legal authority to act on behalf of the student.
2. The Agency shall have the authority to refer suspe cted cases
of intentional and substa ntial misuse of Oklahoma Education Freedom
Account funds to the A ttorney General for investigation if evidence
of fraudulent use of funds is obtained.
3. A parent or Oklahoma Education Freedom Account student may,
pursuant to the Administrative Procedure s Act, appeal the Agency’s
decision to remove the parent or student from eligibility for an
Oklahoma Education Freedom Account.
K. The Agency may cease payments to an education service
provider from Oklahoma Education Freedom Accounts if the Agency
determines the education service provider has:
1. Intentionally an d substantially misreprese nted information
or failed to refund any overp ayments in a timely manner; or
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2. Routinely failed to provide Oklahoma Education Freedo m
Account students with promised educational goods or services.
L. The Agency shall create procedures to ensure a fair process
to determine whether an education service provider should be
prohibited from receiving payments from Oklahoma Education Freedom
Accounts.
1. If the Agency prohibits an education service provider from
receiving payments pursuant to this subsection, the Agency shall
notify parents and Oklahoma Education Freedom Acco unt students of
its decision within ten (10) days .
2. Education service providers may, pursuant to the
Administrative Procedures Act, appeal the Agency’s decision to
prohibit them from receiving Oklahoma Education Freedom Account
payments.
M. The Agency may accept gifts and grants from any source to
support administration of the Oklahoma Education Freedom Account
Program, to inform the public about the Oklahoma Education Freedom
Account Program, and to fund additional Oklahoma Education Freedom
Accounts.
N. The Agency may promulgate rules to implement the provisions
of this act, which shall include but not be limited to:
1. Establishing or contracting for the establishment of an
online anonymous fraud reporting service;
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2. Establishing an anon ymous telephone hotline for fraud
reporting;
3. Requiring a surety bond for e ducation service providers
receiving more than One Hundred Thousand Dollars ($100,000.00) in
Oklahoma Education Freedom Account funds; and
4. Refunding payments from education service providers back to
Oklahoma Education Freedom Accounts.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 28-103 of Title 70, unless there
is created a duplication in numb ering, reads as follows:
A. The Agency may approve education service providers on its
own initiative, at the request of parents, or at the request of a
prospective education service provider.
B. A prospective education servi ce provider seeking to
participate in the Oklahoma Education Freedom Account Program shall:
1. Submit notice to the Agency that it wishes to participate
and receive Oklahoma Education Freedom Account funds designated by
parents for payment of educational goods and services ; and
2. Agree not to refund, rebate, or share Oklahoma Education
Freedom Account funds with parents or Oklahoma Education F reedom
Account students in any manner, except that funds may be remitted or
refunded to an Oklahoma Education Freedom Account.
C. A public school district, public charter school, or magnet
school in which an Oklahoma Education Fre edom Account student was
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enrolled shall provide a private school that is an education servi ce
provider and that has an Oklahoma Education Freedom Account student
enrolled with a complete copy of the student’s records within five
(5) business days of receiving the request for records . The
provision of records pursuant to this subsection shall be in
accordance with the provisions of the F amily Educational Rights and
Privacy Act of 1974 (FERPA).
D. Nothing in this act shall limit the independence or autonomy
of an education service provider or make the actions of an education
service provider the actions of state government. Education service
providers shall be given maximum freedom to provide for the
educational needs of Oklahoma Education Freedom Account students
without governmental control.
1. An education service provider that accepts payment from an
Oklahoma Education Freedom Account as directed by parents pursuant
to this act shall not be considered an agent of the state or federal
government.
2. An education service provider shall not be required to alter
its creed, practices, admissions policy , or curriculum to accept
payments as directed by paren ts from an Oklahoma Education Freedom
Account.
E. Nothing in this act shall be construed to expand th e
regulatory authority of the state, its officers, or any public
school to impose any additional regulation of education service
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providers beyond those necessary to en force the requirements of the
Oklahoma Education Freedom Account Program.
F. Upon a judicial finding of noncompliance with the provisions
of subsections D and E of this section, the Agency shall receive a
five percent (5%) decrease in state funding for the fiscal year
following the year of noncompliance.
G. A parent or legal guardian of a n Oklahoma Education Freedom
Account student shall have a cause of action against the Agency for
noncompliance with the provisions of subsections D and E of this
section.
SECTION 5. NEW LAW A new secti on of law to be codified
in the Oklahoma Statutes as Section 28-104 of Title 70, unless there
is created a duplication in numb ering, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the Office of the State Treasurer to be designated the “Oklahoma
Education Freedom Account Revolving Fund”. The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies received by the Office of the State Treasurer
from appropriations, gifts, grants, donations, and bequests . All
monies accruing to the credit of the fund are hereby appropriated
and may be budgeted and expended by the Office of the State
Treasurer for the purpose of implementing the provisions of the
Oklahoma Education Freedom Act . Expenditures from the fund shall be
made upon warrants issued by the State Treasurer aga inst claims
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filed as prescribed by law with th e Director of the Office of
Management and Enterprise Services for approval and payment.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 28-105 of Title 70, unless there
is created a duplication in numbering, reads as follows:
A. In any legal proceeding challenging the application of the
Oklahoma Education Freedom Act to an education service provider, the
state shall bear the burden of establish ing both that its action is
necessary and that it does not impose any undue burden on the
education service provider.
B. No liability shall arise on the part of the Agen cy, the
state, a public school district, a public charter scho ol, or a
magnet school based on the award of or use of an Oklahoma Education
Freedom Account pursuant to this act.
C. If any part of the Oklahoma Education Freedom Act is
challenged in a state court as vio lating either the state or federal
constitutions, parents of e ligible students and Oklahoma Education
Freedom Account students shall be permitted to intervene for the
purposes of defending the Oklahoma Education Freedom Account
Program’s constitutionality. However, for the purposes of judicial
administration, a court may requir e that all parents of eligible
students and Oklahoma Education Freedom Account students file a
joint brief so long as they are not require d to join any brief filed
on behalf of any named state defendant.
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D. The provisions of the Oklahoma Education Freedom Act shall
be severable, and if any provision of the Oklahoma Education Freedom
Act or the application thereof to any person or circumstances is
held invalid, such invalidity shall not affe ct the other provisions
or applications of this act, which can be given effect without the
invalid provision or a pplication.
SECTION 7. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
It is the intent of t he Legislature to increase the amount
appropriated to the State Board of Education for the financ ial
support of public schools from the midyear adjusted level of Two
Billion Four Hundred T wenty-five Million Two Hundred Fifty -six
Thousand Five Hundred Ninet y-eight Dollars ($2,425,256,598.00) for
the fiscal year ending June 30, 2023, to Two Billion Seve n Hundred
Million Dollars ($2,700,000,000.00) for the fiscal year ending June
30, 2024, to accomplish the purposes of this act.
SECTION 8. This act shall become effective July 1, 2023.
SECTION 9. It being immediately neces sary 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 appro val.
59-1-57 EB 1/19/2023 8:41:39 AM