1| HOUSE OF REPRESENTATIVES - FLOOR VERSION |
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2| STATE OF OKLAHOMA |
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3| 1st Session of the 59th Legislature (2023) |
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4|HOUSE BILL 2414 By: Johns |
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10| AS INTRODUCED |
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11| An Act relating to schools; amending 70 O.S. 2021, |
| Sections 3-135, 3-136, 3-137, and 3-142, which relate |
12| to the Oklahoma Charter Schools Act; requiring |
| charter school to provide certain notice to sponsor; |
13| directing sponsor to use performance framework for |
| charter school evaluation; authorizing development of |
14| certain separate framework; adding minimum |
| requirements for framework; mandating annual |
15| evaluation; directing presentation of results to |
| certain governing boards; defining term; subjecting |
16| charter school to certain spending limitations; |
| prohibiting charter school from providing instruction |
17| to certain students; directing charter school |
| governing board to comply with certain acts; |
18| subjecting charter school sponsor governing board to |
| certain conflict of interest requirements; modifying |
19| procedures for charter school contracts; requiring |
| sponsor to develop a corrective action plan; |
20| authorizing nonrenewal of contract in certain cases; |
| specifying how sponsor fee should be used; requiring |
21| sponsor to publish certain report on its website; |
| amending 70 O.S. 2021, Section 3-145.3, which relates |
22| to duties of the Statewide Virtual Charter School |
| Board; requiring compliance with the Oklahoma Charter |
23| Schools Act; modifying limitation on fee for |
| administrative expenses and support; subjecting |
24| certain charter schools to the same purchasing |
| procedures and compliance requirements as school |
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1| districts; prohibiting commingling of certain school |
| funds; modifying instruction and continuing education |
2| obligations for certain governing board members; |
| establishing requirements for governing boards which |
3| contract with educational management organizations; |
| prescribing duties for board membership; requiring |
4| State Department of Education and sponsor to publish |
| certain contracts on their websites; directing |
5| Department to publish list of fees paid; subjecting |
| certain board members to instruction and continuing |
6| education requirements; prohibiting certain conflicts |
| of interest and pecuniary gain; disallowing certain |
7| appointments or selections of members; requiring |
| sponsor board members to complete instruction and |
8| continuing education requirements; specifying entity |
| to pay for instruction and continuing education; |
9| prescribing requirements for instruction and |
| continuing education; defining term; designating |
10| certain funds as public funds; prohibiting transfer |
| or conversion of state funds to private funds; |
11| clarifying provision; requiring payments from charter |
| schools to comply with certain provisions; directing |
12| organization to provide certain documents; subjecting |
| certain funds to audit, transparency, oversight and |
13| financial reporting; requiring certain funds to |
| remain public funds; prescribing grade for |
14| participation in certain extracurricular or |
| educational activities; declaring certain property to |
15| remain public property of the charter school; |
| mandating an operating agreement review of certain |
16| charter schools; establishing procedures for review; |
| requiring written agreement for certain expenditures; |
17| mandating criminal history record checks for certain |
| personnel; prescribing process and payment of checks; |
18| prohibiting certain activities by educational |
| management organizations; amending 70 O.S. 2021, |
19| Section 5-200, which relates to educational |
| management organizations; requiring amounts paid to |
20| certain organizations be pursuant to contract terms; |
| mandating disclosure pursuant to certain guidelines; |
21| amending 70 O.S. 2021, Section 18-124, which relates |
| to limitations on administrative services |
22| expenditures; providing applicability of limitation |
| to certain charter schools; clarifying calculation |
23| for specified schools; modifying definition; |
| providing for codification; providing an effective |
24| date; and declaring an emergency. |
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3|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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4| SECTION 1. AMENDATORY 70 O.S. 2021, Section 3-135, is |
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5|amended to read as follows: |
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6| Section 3-135. A. The sponsor of a charter school shall enter |
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7|into a written contract with the governing body board of the charter |
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8|school. The contract shall incorporate the provisions of the |
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9|charter of the charter school and contain, but shall not be limited |
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10|to, the following provisions: |
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11| 1. A description of the program to be offered by the school |
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12|which complies with the purposes outlined in Section 3-136 of this |
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13|title; |
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14| 2. Admission policies and procedures; |
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15| 3. Management and administration of the charter school, |
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16|including that a majority of the charter governing board members are |
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17|residents of the State of Oklahoma and meet no less than quarterly |
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18|in a public meeting within the boundaries of the school district in |
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19|which the charter school is located or within the State of Oklahoma |
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20|in the instance of multiple charter school locations by the same |
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21|sponsor; |
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22| 4. Requirements and procedures for program and financial |
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23|audits; |
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1| 5. A description of how the charter school will comply with the |
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2|charter requirements set forth in the Oklahoma Charter Schools Act; |
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3| 6. Assumption of liability by the charter school; |
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4| 7. The term of the contract; |
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5| 8. A description of the high standards of expectation and rigor |
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6|for charter school plans and assurance that charter school plans |
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7|adopted meet at least those standards; |
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8| 9. Policies that require that the charter school be as equally |
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9|free and open to all students as traditional public schools; |
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10| 10. Procedures that require students enrolled in the charter |
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11|school to be selected by lottery to ensure fairness if more students |
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12|apply than a school has the capacity to accommodate; |
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13| 11. Policies that require the charter school to be subject to |
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14|the same academic standards and expectations as existing public |
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15|schools; and |
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16| 12. A description of the requirements and procedures for the |
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17|charter school to receive funding in accordance with statutory |
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18|requirements and guidelines for existing public schools; and |
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19| 13. A requirement to promptly notify the sponsor in the |
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20|instance of any significant adverse actions, material findings of |
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21|noncompliance, or pending actions, claims, or proceedings in this |
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22|state relating to the charter school or an educational management |
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23|organization with which the charter school has a contract. |
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1| B. A charter school shall not enter into an employment contract |
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2|with any teacher or other personnel until the charter school has a |
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3|contract with a sponsoring school district. The employment contract |
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4|shall set forth the personnel policies of the charter school, |
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5|including, but not limited to, policies related to certification, |
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6|professional development evaluation, suspension, dismissal and |
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7|nonreemployment, sick leave, personal business leave, emergency |
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8|leave, and family and medical leave. The contract shall also |
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9|specifically set forth the salary, hours, fringe benefits, and work |
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10|conditions. The contract may provide for employer-employee |
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11|bargaining, but the charter school shall not be required to comply |
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12|with the provisions of Sections 509.1 through 509.10 of this title. |
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13|The contract shall conform to all applicable provisions set forth in |
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14|Section 3-136 of this title. |
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15| Upon contracting with any teacher or other personnel, the |
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16|governing body board of the charter school shall, in writing, |
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17|disclose employment rights of the employees in the event the charter |
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18|school closes or the charter is not renewed. |
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19| No charter school may begin serving students without a charter |
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20|contract executed in accordance with the provisions of the Oklahoma |
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21|Charter Schools Act and approved in an open meeting of the sponsor. |
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22|The sponsor may establish reasonable preopening requirements or |
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23|conditions to monitor the start-up progress of newly approved |
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24|charter schools and ensure that each school is prepared to open |
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1|smoothly on the date agreed and to ensure that each school meets all |
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2|building, health, safety, insurance and other legal requirements for |
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3|the opening of a school. |
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4| C. The performance provisions within the charter contract shall |
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5|be based on a performance framework that clearly sets forth the |
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6|academic and operational performance indicators, measures and |
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7|metrics that will guide the evaluations of the shall be used by |
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8|charter school sponsors to evaluate their respective charter school |
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9|by the sponsor schools. The sponsor may develop a separate |
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10|performance framework to evaluate a charter school that has been |
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11|designated by the State Department of Education to implement an |
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12|alternative education program throughout the charter school. The |
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13|sponsor shall require a charter school to submit the data required |
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14|in this section in the identical format that is required by the |
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15|State Department of Education of all public schools in order to |
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16|avoid duplicative administrative efforts or allow a charter school |
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17|to provide permission to the Department to share all required data |
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18|with the sponsor of the charter school. The performance framework |
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19|shall serve as the minimum requirement for charter school |
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20|performance evaluation and shall include, but not be limited to, the |
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21|following indicators, measures and metrics for, at a minimum: |
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22| 1. Student academic proficiency; |
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23| 2. Student academic growth; |
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1| 3. Achievement gaps in both proficiency and growth between |
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2|major student subgroups; |
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3| 4. Student attendance; |
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4| 5. Recurrent enrollment from year to year as determined by the |
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5|methodology used for public schools in Oklahoma; |
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6| 6. In the case of high schools, graduation rates as determined |
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7|by the methodology used for public schools in Oklahoma; |
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8| 7. In the case of high schools, postsecondary readiness; |
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9| 8. Financial performance and sustainability and compliance with |
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10|state and Internal Revenue Service financial reporting requirements; |
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11|and |
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12| 9. Audit findings or deficiencies; |
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13| 10. Accreditation and timely reporting; and |
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14| 11. Governing board performance and stewardship, including |
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15|compliance with all applicable laws, regulations and terms of the |
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16|charter contract. |
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17|The sponsor shall annually evaluate its charter schools according to |
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18|the performance framework. The results of the evaluation shall be |
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19|presented to the governing board of the charter school and the |
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20|governing board of the charter school sponsor in an open meeting and |
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21|posted on the website of the charter school. |
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22| D. The sponsor shall not request any metric or data from a |
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23|charter school that it does not produce or publish for all school |
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1|sites in the district or under its sponsorship, unless the metric or |
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2|data is unique to a charter school. |
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3| E. A charter contract may provide for one or more schools by an |
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4|applicant to the extent approved by the sponsor and consistent with |
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5|applicable law. An applicant or the governing board of an applicant |
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6|may hold one or more charter contracts. Each charter school that is |
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7|part of a charter contract shall be separate and distinct from any |
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8|other charter school under the same charter contract. For the |
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9|purposes of this subsection, "separate and distinct" shall mean a |
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10|charter school governing board with oversight of more than one |
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11|charter school shall not combine accounting, budgeting, |
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12|recordkeeping, admissions, employment or policies and operational |
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13|decisions of the charter schools it oversees. |
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14| SECTION 2. AMENDATORY 70 O.S. 2021, Section 3-136, is |
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15|amended to read as follows: |
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16| Section 3-136. A. A charter school shall adopt a charter which |
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17|will ensure compliance with the following: |
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18| 1. A charter school shall comply with all federal regulations |
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19|and state and local rules and statutes relating to health, safety, |
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20|civil rights and insurance. By January 1, 2000, the State |
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21|Department of Education shall prepare a list of relevant rules and |
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22|statutes which a charter school must comply with as required by this |
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23|paragraph and shall annually provide an update to the list; |
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1| 2. A charter school shall be nonsectarian in its programs, |
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2|admission policies, employment practices, and all other operations. |
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3|A sponsor may not authorize a charter school or program that is |
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4|affiliated with a nonpublic sectarian school or religious |
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5|institution; |
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6| 3. The charter school may provide a comprehensive program of |
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7|instruction for a prekindergarten program, a kindergarten program or |
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8|any grade between grades one and twelve. Instruction may be |
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9|provided to all persons between the ages of four (4) and twenty-one |
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10|(21) years of age. A charter school may offer a curriculum which |
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11|emphasizes a specific learning philosophy or style or certain |
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12|subject areas such as mathematics, science, fine arts, performance |
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13|arts, or foreign language. The charter of a charter school which |
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14|offers grades nine through twelve shall specifically address whether |
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15|the charter school will comply with the graduation requirements |
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16|established in Section 11-103.6 of this title. No charter school |
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17|shall be chartered for the purpose of offering a curriculum for deaf |
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18|or blind students that is the same or similar to the curriculum |
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19|being provided by or for educating deaf or blind students that are |
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20|being served by the Oklahoma School for the Blind or the Oklahoma |
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21|School for the Deaf; |
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22| 4. A charter school shall participate in the testing as |
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23|required by the Oklahoma School Testing Program Act and the |
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24|reporting of test results as is required of a school district. A |
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1|charter school shall also provide any necessary data to the Office |
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2|of Accountability; |
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3| 5. Except as otherwise provided for in the Oklahoma Charter |
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4|Schools Act and its charter, a charter school shall be exempt from |
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5|all statutes and rules relating to schools, boards of education, and |
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6|school districts; |
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7| 6. A charter school, to the extent possible, shall be subject |
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8|to the same reporting requirements, financial audits, audit |
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9|procedures, and audit requirements as a school district. The State |
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10|Department of Education or State Auditor and Inspector may conduct |
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11|financial, program, or compliance audits. A charter school shall |
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12|use the Oklahoma Cost Accounting System to report financial |
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13|transactions to the sponsoring school district or sponsor. The |
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14|charter school shall be subject to the limitations on spending, |
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15|including provisions of the Oklahoma Constitution, for any funds |
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16|received from the state, either through the State Department of |
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17|Education or other sources; |
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18| 7. A charter school shall comply with all federal and state |
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19|laws relating to the education of children with disabilities in the |
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20|same manner as a school district; |
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21| 8. A charter school shall provide for a governing body board |
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22|for the school which shall be responsible for the policies and |
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23|operational decisions of the charter school; |
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24| |
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1| 9. A charter school shall not provide or otherwise supplement |
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2|instruction of students enrolled in private schools or be used as a |
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3|method of generating revenue for students who are being home |
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4|schooled and are not being educated at an organized charter school |
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5|site; |
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6| 10. A charter school may shall not charge tuition or fees; |
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7| 11. A charter school shall provide instruction each year for at |
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8|least the number of days or hours required in Section 1-109 of this |
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9|title; |
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10| 12. A charter school shall comply with the student suspension |
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11|requirements provided for in Section 24-101.3 of this title; |
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12| 13. A charter school shall be considered a school district for |
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13|purposes of tort liability under The Governmental Tort Claims Act; |
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14| 14. Employees of a charter school may participate as members of |
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15|the Teachers' Retirement System of Oklahoma in accordance with |
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16|applicable statutes and rules if otherwise allowed pursuant to law; |
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17| 15. A charter school may participate in all health and related |
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18|insurance programs available to the employees of the sponsor of the |
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19|charter school; |
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20| 16. A charter school and charter school governing board shall |
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21|comply with the Oklahoma Open Meeting Act and the Oklahoma Open |
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22|Records Act; |
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23| 17. The governing body board of a charter school and the |
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24|governing board of a charter school sponsor shall be subject to the |
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1|same conflict of interest requirements as a member of a local school |
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2|board; and |
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3| 18. No later than September 1 of each year, the governing board |
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4|of each charter school formed pursuant to the Oklahoma Charter |
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5|Schools Act shall prepare a statement of actual income and |
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6|expenditures for the charter school for the fiscal year that ended |
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7|on the preceding June 30, in a manner compliant with Section 5-135 |
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8|of this title. The statement of expenditures shall include |
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9|functional categories as defined in rules adopted by the State Board |
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10|of Education to implement the Oklahoma Cost Accounting System |
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11|pursuant to Section 5-145 of this title. Charter schools shall not |
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12|be permitted to submit estimates of expenditures or prorated amounts |
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13|to fulfill the requirements of this paragraph. |
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14| B. The charter of a charter school shall include a description |
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15|of the personnel policies, personnel qualifications, and method of |
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16|school governance, and the specific role and duties of the sponsor |
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17|of the charter school. |
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18| C. The charter of a charter school may be amended at the |
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19|request of the governing body board of the charter school and upon |
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20|the approval of the sponsor. |
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21| D. A charter school may enter into contracts and sue and be |
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22|sued. |
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23| E. The governing body board of a charter school may shall not |
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24|levy taxes or issue bonds. |
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1| F. The charter of a charter school shall include a provision |
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2|specifying the method or methods to be employed for disposing of |
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3|real and personal property acquired by the charter school upon |
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4|expiration or termination of the charter or failure of the charter |
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5|school to continue operations. Except as otherwise provided, any |
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6|real or personal property purchased with state or local funds shall |
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7|be retained by the sponsoring school district or sponsor of the |
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8|charter school. If a charter school that was previously sponsored |
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9|by the board of education of a school district continues operation |
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10|within the school district under a new charter sponsored by an |
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11|entity authorized pursuant to Section 3-132 of this title, the |
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12|charter school may retain any personal property purchased with state |
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13|or local funds for use in the operation of the charter school until |
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14|termination of the new charter or failure of the charter school to |
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15|continue operations. |
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16| SECTION 3. AMENDATORY 70 O.S. 2021, Section 3-137, is |
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17|amended to read as follows: |
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18| Section 3-137. A. An The first approved contract for between a |
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19|charter school and its sponsor shall be effective for five (5) years |
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20|from the first day of operation. A charter contract may be renewed |
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21|for successive five-year terms of duration, although the sponsor may |
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22|vary the term based on the performance, demonstrated capacities and |
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23|particular circumstances of each charter school. A sponsor may |
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24| |
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1|grant renewal with specific conditions for necessary improvements to |
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2|a charter school. |
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3| B. Prior to the beginning of the fourth year of operation of a |
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4|charter school, the sponsor shall issue a charter school performance |
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5|report and charter renewal application guidance to the school and |
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6|the charter school governing board. The performance report shall |
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7|summarize the performance record to date of the charter school, |
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8|based on the data required by the Oklahoma Charter Schools Act, the |
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9|annual performance framework evaluation, the operating agreement |
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10|review if the charter school contracts with an educational |
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11|management organization, and the charter contract and taking into |
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12|consideration the percentage of at-risk students enrolled in the |
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13|school, and. The performance report shall provide notice of any |
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14|weaknesses or, concerns, violations, or deficiencies perceived by |
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15|the sponsor concerning the charter school that may jeopardize its |
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16|position in seeking renewal if not timely rectified, and the charter |
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17|school sponsor shall develop a corrective action plan and |
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18|corresponding timeline to remedy any violations or deficiencies. |
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19|The charter school shall have forty-five (45) days to respond to the |
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20|performance report and submit any corrections or clarifications for |
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21|the report. If the charter school does not substantially complete |
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22|the corrective action plan developed by the sponsor, the sponsor may |
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23|choose not to renew the charter contract pursuant to the |
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24|requirements of this section. |
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1| C. 1. Prior to the beginning of the fifth year of operation, |
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2|the charter school may apply for renewal of the contract with the |
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3|sponsor. The renewal application guidance shall, at a minimum, |
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4|provide an opportunity for the charter school to: |
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5| a. present additional evidence, beyond the data |
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6| contained in the performance report, supporting its |
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7| case for charter renewal, |
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8| b. describe improvements undertaken or planned for the |
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9| school, and |
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10| c. detail the plan for the next charter term for the |
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11| school. |
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12| 2. The renewal application guidance shall include or refer |
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13|explicitly to the criteria that will guide the renewal decisions of |
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14|the sponsor, which shall be based on the performance framework set |
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15|forth in the charter contract and consistent with the Oklahoma |
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16|Charter Schools Act. |
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17| D. The sponsor may deny the request for renewal if it |
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18|determines the charter school has failed to complete the obligations |
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19|of the contract or comply with the provisions of the Oklahoma |
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20|Charter Schools Act. A sponsor shall give written notice of its |
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21|intent to deny the request for renewal at least eight (8) months |
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22|prior to expiration of the contract. In making charter renewal |
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23|decisions, a sponsor shall: |
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24| |
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1| 1. Ground decisions on evidence of the performance of the |
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2|school over the term of the charter contract in accordance with the |
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3|performance framework set forth in the charter contract and shall |
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4|take into consideration the percentage of at-risk students enrolled |
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5|in the school; |
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6| 2. Grant renewal to schools that have achieved the standards, |
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7|targets and performance expectations as stated in the charter |
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8|contract and are organizationally and fiscally viable and have been |
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9|faithful to the terms of the contract and applicable law; |
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10| 3. Ensure that data used in making renewal decisions are |
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11|available to the school and the public; and |
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12| 4. Provide a public report summarizing the evidence used as the |
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13|basis for each decision. |
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14| E. If a sponsor denies a request for renewal, the governing |
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15|board of the sponsor may, if requested by the charter school, |
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16|proceed to binding arbitration as provided for in subsection G of |
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17|Section 3-134 of this title. |
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18| F. A sponsor may terminate a contract during the term of the |
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19|contract for failure to meet the requirements for student |
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20|performance contained in the contract and performance framework, |
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21|failure to meet the standards of fiscal management, violations of |
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22|the law or other good cause. The sponsor shall give at least ninety |
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23|(90) days' written notice to the governing board prior to |
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24|terminating the contract. The governing board may request, in |
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1|writing, an informal hearing before the sponsor within fourteen (14) |
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2|days of receiving notice. The sponsor shall conduct an informal |
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3|hearing before taking action. If a sponsor decides to terminate a |
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4|contract, the governing board may, if requested by the charter |
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5|school, proceed to binding arbitration as provided for in subsection |
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6|G of Section 3-134 of this title. |
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7| G. 1. Beginning in the 2016-2017 school year, the State Board |
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8|of Education shall identify charter schools in the state that are |
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9|ranked in the bottom five percent (5%) of all public schools as |
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10|determined pursuant to Section 1210.545 of this title. |
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11| 2. At the time of its charter renewal, based on an average of |
| |
12|the current year and the two (2) prior operating years, a sponsor |
| |
13|may close a charter school site identified as being among the bottom |
| |
14|five percent (5%) of public schools in the state. The average of |
| |
15|the current year and two (2) prior operating years shall be |
| |
16|calculated by using the percentage ranking for each year divided by |
| |
17|three, as determined by this subsection. |
| |
18| 3. If there is a change to the calculation described in Section |
| |
19|1210.545 of this title that results in a charter school site that |
| |
20|was not ranked in the bottom five percent (5%) being ranked in the |
| |
21|bottom five percent (5%), then the sponsor shall use the higher of |
| |
22|the two rankings to calculate the ranking of the charter school |
| |
23|site. |
| |
24| |
| |
arsid7413908 HB2414 HFLR Page 17
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1| 4. In the event that a sponsor fails to close a charter school |
| |
2|site consistent with this subsection, the sponsor shall appear |
| |
3|before the State Board of Education to provide support for its |
| |
4|decision. The State Board of Education may, by majority vote, |
| |
5|uphold or overturn the decision of the sponsor. If the decision of |
| |
6|the sponsor is overturned by the State Board of Education, the Board |
| |
7|may implement one of the following actions: |
| |
8| a. transfer the sponsorship of the charter school |
| |
9| identified in this paragraph to another sponsor, |
| |
10| b. order the closure of the charter school identified in |
| |
11| this paragraph at the end of the current school year, |
| |
12| or |
| |
13| c. order the reduction of any administrative fee |
| |
14| collected by the sponsor that is applicable to the |
| |
15| charter school identified in this paragraph. The |
| |
16| reduction shall become effective at the beginning of |
| |
17| the month following the month the hearing of the |
| |
18| sponsor is held by the State Board of Education. |
| |
19| 5. A charter school that is closed by the State Board of |
| |
20|Education pursuant to paragraph 4 of this subsection shall not be |
| |
21|granted a charter by any other sponsor. |
| |
22| 6. The requirements of this subsection shall not apply to a |
| |
23|charter school that has been designated by the State Department of |
| |
24| |
| |
arsid7413908 HB2414 HFLR Page 18
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1|Education as implementing an alternative education program |
| |
2|throughout the charter school. |
| |
3| 7. In making a school site closure decision, the State Board of |
| |
4|Education shall consider the following: |
| |
5| a. enrollment of students with special challenges such |
| |
6| as drug or alcohol addiction, prior withdrawal from |
| |
7| school, prior incarceration or other special |
| |
8| circumstances, |
| |
9| b. high mobility of the student population resulting |
| |
10| from the specific purpose of the charter school, |
| |
11| c. annual improvement in the performance of students |
| |
12| enrolled in the charter school compared with the |
| |
13| performance of students enrolled in the charter school |
| |
14| in the immediately preceding school year, and |
| |
15| d. whether a majority of students attending the charter |
| |
16| school under consideration for closure would likely |
| |
17| revert to attending public schools with lower academic |
| |
18| achievement, as demonstrated pursuant to Section |
| |
19| 1210.545 of this title. |
| |
20| 8. If the State Board of Education has closed or transferred |
| |
21|authorization of at least twenty-five percent (25%) of the charter |
| |
22|schools chartered by one sponsor pursuant to paragraph 4 of this |
| |
23|subsection, the authority of the sponsor to authorize new charter |
| |
24|schools may be suspended by the Board until the Board approves the |
| |
arsid7413908 HB2414 HFLR Page 19
___________________________________________________________________________
1|sponsor to authorize new charter schools. A determination under |
| |
2|this paragraph to suspend the authority of a sponsor to authorize |
| |
3|new charter schools shall identify the deficiencies that, if |
| |
4|corrected, will result in the approval of the sponsor to authorize |
| |
5|new charter schools. |
| |
6| H. If a sponsor terminates a contract or the charter school is |
| |
7|closed, the closure shall be conducted in accordance with the |
| |
8|following protocol: |
| |
9| 1. Within two (2) calendar weeks of a final closure |
| |
10|determination, the sponsor shall meet with the governing board and |
| |
11|leadership of the charter school to establish a transition team |
| |
12|composed of school staff, applicant staff and others designated by |
| |
13|the applicant that will attend to the closure, including the |
| |
14|transfer of students, student records and school funds; |
| |
15| 2. The sponsor and transition team shall communicate regularly |
| |
16|and effectively with families of students enrolled in the charter |
| |
17|school, as well as with school staff and other stakeholders, to keep |
| |
18|them apprised of key information regarding the closure of the school |
| |
19|and their options and risks; |
| |
20| 3. The sponsor and transition team shall ensure that current |
| |
21|instruction of students enrolled in the charter school continues per |
| |
22|the charter agreement for the remainder of the school year; |
| |
23| 4. The sponsor and transition team shall ensure that all |
| |
24|necessary and prudent notifications are issued to agencies, |
| |
arsid7413908 HB2414 HFLR Page 20
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1|employees, insurers, contractors, creditors, debtors and management |
| |
2|organizations; and |
| |
3| 5. The governing board of the charter school shall continue to |
| |
4|meet as necessary to take actions needed to wind down school |
| |
5|operations, manage school finances, allocate resources and |
| |
6|facilitate all aspects of closure. |
| |
7| I. A sponsor shall develop revocation and nonrenewal processes |
| |
8|that are consistent with the Oklahoma Charter Schools Act and that: |
| |
9| 1. Provide the charter school with a timely notification of the |
| |
10|prospect of revocation or nonrenewal and of the reasons for possible |
| |
11|closure; |
| |
12| 2. Allow the charter school a reasonable amount of time in |
| |
13|which to prepare a response; |
| |
14| 3. Provide the charter school with an opportunity to submit |
| |
15|documents and give testimony in a public hearing challenging the |
| |
16|rationale for closure and in support of the continuation of the |
| |
17|school at an orderly proceeding held for that purpose and prior to |
| |
18|taking any final nonrenewal or revocation decision related to the |
| |
19|school; |
| |
20| 4. Allow the charter school access to representation by counsel |
| |
21|to call witnesses on its behalf; |
| |
22| 5. Permit the recording of the proceedings; and |
| |
23| 6. After a reasonable period for deliberation, require a final |
| |
24|determination be made and conveyed in writing to the charter school. |
| |
arsid7413908 HB2414 HFLR Page 21
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1| J. If a sponsor revokes or does not renew a charter, the |
| |
2|sponsor shall clearly state in a resolution the reasons for the |
| |
3|revocation or nonrenewal. |
| |
4| K. 1. Before a sponsor may issue a charter to a charter school |
| |
5|governing body board that has had its charter terminated or has been |
| |
6|informed that its charter will not be renewed by the current |
| |
7|sponsor, the sponsor shall request to have the proposal reviewed by |
| |
8|the State Board of Education at a hearing. The State Board of |
| |
9|Education shall conduct a hearing in which the sponsor shall present |
| |
10|information indicating that the proposal of the organizer is |
| |
11|substantively different in the areas of deficiency identified by the |
| |
12|current sponsor from the current proposal as set forth within the |
| |
13|charter with its current sponsor. |
| |
14| 2. After the State Board of Education conducts a hearing |
| |
15|pursuant to this subsection, the Board shall either approve or deny |
| |
16|the proposal. |
| |
17| 3. If the proposal is denied, no sponsor may issue a charter to |
| |
18|the charter school governing body board. |
| |
19| L. If a contract is not renewed, the governing board of the |
| |
20|charter school may submit an application to a proposed new sponsor |
| |
21|as provided for in Section 3-134 of this title. |
| |
22| M. If a contract is not renewed or is terminated according to |
| |
23|this section, a student who attended the charter school may enroll |
| |
24| |
| |
arsid7413908 HB2414 HFLR Page 22
___________________________________________________________________________
1|in the resident school district of the student or may apply for a |
| |
2|transfer in accordance with Section 8-103 of this title. |
| |
3| SECTION 4. AMENDATORY 70 O.S. 2021, Section 3-142, is |
| |
4|amended to read as follows: |
| |
5| Section 3-142. A. The student membership and attendance of the |
| |
6|charter school shall be considered separate from the student |
| |
7|membership and attendance of the sponsor for the purpose of |
| |
8|calculating enrollment and funding including weighted average daily |
| |
9|membership pursuant to Section 18-201.1 of this title and State Aid |
| |
10|pursuant to Section 18-200.1 of this title. A charter school shall |
| |
11|receive the State Aid allocation, federal funds to which it is |
| |
12|eligible and qualifies for and any other state-appropriated revenue |
| |
13|generated by its students for the applicable year. Not more than |
| |
14|three percent (3%) of the State Aid allocation may be charged by the |
| |
15|sponsor as a fee for administrative services rendered. For purposes |
| |
16|of this section, the fee for administrative services shall be used |
| |
17|by the sponsor to provide oversight and services to the charter |
| |
18|schools it sponsors. A charter school sponsor shall publish a |
| |
19|detailed report on its website listing expenses related to oversight |
| |
20|and services provided by the sponsor to its charter schools. The |
| |
21|State Board of Education shall determine the policy and procedure |
| |
22|for making payments to a charter school. The fee for administrative |
| |
23|services as authorized in this subsection shall only be assessed on |
| |
24|the State Aid allocation amount and shall not be assessed on any |
| |
arsid7413908 HB2414 HFLR Page 23
___________________________________________________________________________
1|other appropriated amounts. A sponsor of a charter school shall not |
| |
2|charge any additional State Aid allocation or charge the charter |
| |
3|school any additional fee above the amounts allowed by this |
| |
4|subsection unless the additional fees are for additional services |
| |
5|rendered. The charter school sponsor shall provide to the State |
| |
6|Department of Education financial records documenting any state |
| |
7|funds charged by the sponsor for administrative services rendered |
| |
8|for the previous year. |
| |
9| B. 1. The weighted average daily membership for the first year |
| |
10|of operation of a charter school shall be determined initially by |
| |
11|multiplying the actual enrollment of students as of August 1 by |
| |
12|1.333. The charter school shall receive revenue equal to that which |
| |
13|would be generated by the estimated weighted average daily |
| |
14|membership calculated pursuant to this paragraph. At midyear, the |
| |
15|allocation for the charter school shall be adjusted using the first |
| |
16|quarter weighted average daily membership for the charter school |
| |
17|calculated pursuant to subsection A of this section. |
| |
18| 2. For the purpose of calculating weighted average daily |
| |
19|membership pursuant to Section 18-201.1 of this title and State Aid |
| |
20|pursuant to Section 18-200.1 of this title, the weighted average |
| |
21|daily membership for the first year of operation of a full-time |
| |
22|statewide virtual charter school sponsored by the Statewide Virtual |
| |
23|Charter School Board shall be determined by multiplying the actual |
| |
24|enrollment of students as of August 1 by 1.333. The full-time |
| |
arsid7413908 HB2414 HFLR Page 24
___________________________________________________________________________
1|virtual charter school shall receive revenue equal to that which |
| |
2|would be generated by the estimated weighted average daily |
| |
3|membership calculated pursuant to this paragraph. At midyear, the |
| |
4|allocation for the full-time statewide virtual charter school shall |
| |
5|be adjusted using the first quarter weighted average daily |
| |
6|membership for the virtual charter school calculated pursuant to |
| |
7|subsection A of this section. |
| |
8| C. Except as explicitly authorized by state law, a charter |
| |
9|school shall not be eligible to receive state-dedicated, local or |
| |
10|county revenue; provided, a charter school may be eligible to |
| |
11|receive any other aid, grants or revenues allowed to other schools. |
| |
12|A charter school shall be considered a local education agency for |
| |
13|purposes of funding. |
| |
14| D. Any unexpended funds received by a charter school may be |
| |
15|reserved and used for future purposes. The governing body board of |
| |
16|a charter school shall not levy taxes or issue bonds. If otherwise |
| |
17|allowed by law, the governing body board of a charter school may |
| |
18|enter into private contracts for the purposes of borrowing money |
| |
19|from lenders. If the governing body board of the charter school |
| |
20|borrows money, the charter school shall be solely responsible for |
| |
21|repaying the debt, and the state or the sponsor shall not in any way |
| |
22|be responsible or obligated to repay the debt. |
| |
23| E. Any charter school which chooses to lease property shall be |
| |
24|eligible to receive current government lease rates. |
| |
arsid7413908 HB2414 HFLR Page 25
___________________________________________________________________________
1| F. Except as otherwise provided in this subsection, each |
| |
2|charter school shall pay to the Charter School Closure Reimbursement |
| |
3|Revolving Fund created in subsection G of this section an amount |
| |
4|equal to Five Dollars ($5.00) per student based on average daily |
| |
5|membership, as defined by paragraph 2 of Section 18-107 of this |
| |
6|title, during the first nine (9) weeks of the school year. Each |
| |
7|charter school shall complete the payment every school year within |
| |
8|thirty (30) days after the first nine (9) weeks of the school year. |
| |
9|If the Charter School Closure Reimbursement Revolving Fund has a |
| |
10|balance of One Million Dollars ($1,000,000.00) or more on July 1, no |
| |
11|payment shall be required the following school year. |
| |
12| G. There is hereby created in the State Treasury a revolving |
| |
13|fund for the State Department of Education to be designated the |
| |
14|"Charter School Closure Reimbursement Revolving Fund". The fund |
| |
15|shall be a continuing fund, not subject to fiscal year limitations, |
| |
16|and shall consist of all monies received by the State Department of |
| |
17|Education from charter schools as provided in subsection F of this |
| |
18|section. All monies accruing to the credit of said fund are hereby |
| |
19|appropriated and may be budgeted and expended by the State |
| |
20|Department of Education for the purpose of reimbursing charter |
| |
21|school sponsors for costs incurred due to the closure of a charter |
| |
22|school. Expenditures from said fund shall be made upon warrants |
| |
23|issued by the State Treasurer against claims filed as prescribed by |
| |
24|law with the Director of the Office of Management and Enterprise |
| |
arsid7413908 HB2414 HFLR Page 26
___________________________________________________________________________
1|Services for approval and payment. The State Department of |
| |
2|Education may promulgate rules regarding sponsor eligibility for |
| |
3|reimbursement. |
| |
4| SECTION 5. AMENDATORY 70 O.S. 2021, Section 3-145.3, is |
| |
5|amended to read as follows: |
| |
6| Section 3-145.3 A. Subject to the requirements of the Oklahoma |
| |
7|Charter Schools Act, the Statewide Virtual Charter School Board |
| |
8|shall: |
| |
9| 1. Provide oversight of the operations of statewide virtual |
| |
10|charter schools in this state; |
| |
11| 2. Establish a procedure for accepting, approving and |
| |
12|disapproving statewide virtual charter school applications and a |
| |
13|process for renewal or revocation of approved charter school |
| |
14|contracts which minimally meet the procedures set forth in the |
| |
15|Oklahoma Charter Schools Act; |
| |
16| 3. Make publicly available a list of supplemental online |
| |
17|courses which have been reviewed and certified by the Statewide |
| |
18|Virtual Charter School Board to ensure that the courses are high |
| |
19|quality options and are aligned with the subject matter standards |
| |
20|adopted by the State Board of Education pursuant to Section 11-103.6 |
| |
21|of this title. The Statewide Virtual Charter School Board shall |
| |
22|give special emphasis on listing supplemental online courses in |
| |
23|science, technology, engineering and math (STEM), foreign language |
| |
24|and advanced placement courses. School districts shall not be |
| |
arsid7413908 HB2414 HFLR Page 27
___________________________________________________________________________
1|limited to selecting supplemental online courses that have been |
| |
2|reviewed and certified by the Statewide Virtual Charter School Board |
| |
3|and listed as provided for in this paragraph; and |
| |
4| 4. In conjunction with the Office of Management and Enterprise |
| |
5|Services, negotiate and enter into contracts with supplemental |
| |
6|online course providers to offer a state rate price to school |
| |
7|districts for supplemental online courses that have been reviewed |
| |
8|and certified by the Statewide Virtual Charter School Board and |
| |
9|listed as provided for in paragraph 3 of this subsection. |
| |
10| B. Except as otherwise provided by law, each statewide virtual |
| |
11|charter school which has been approved and sponsored by the Board |
| |
12|shall be subject to and comply with the requirements of the Oklahoma |
| |
13|Charter Schools Act. Each statewide virtual charter school which |
| |
14|has been approved and sponsored by the Board or any virtual charter |
| |
15|school for which the Board has assumed sponsorship of as provided |
| |
16|for in Section 3-145.5 of this title shall be considered a statewide |
| |
17|virtual charter school and, except as provided in subsection H of |
| |
18|this section, the geographic boundaries of each statewide virtual |
| |
19|charter school shall be the borders of the state. |
| |
20| C. Each statewide virtual charter school approved by the |
| |
21|Statewide Virtual Charter School Board shall be eligible to receive |
| |
22|federal funds generated by students enrolled in the charter school |
| |
23|for the applicable year. Each statewide virtual charter school |
| |
24| |
| |
arsid7413908 HB2414 HFLR Page 28
___________________________________________________________________________
1|shall be considered a separate local education agency for purposes |
| |
2|of reporting and accountability. |
| |
3| D. As calculated as provided for in Section 3-142 of this |
| |
4|title, a statewide virtual charter school shall receive the State |
| |
5|Aid allocation and any other state-appropriated revenue generated by |
| |
6|students enrolled in the virtual charter school for the applicable |
| |
7|year, less up to five percent (5%) three percent (3%) of the State |
| |
8|Aid allocation, which may be retained by the Statewide Virtual |
| |
9|Charter School Board for administrative expenses and to support the |
| |
10|mission of the Board. A statewide virtual charter school shall be |
| |
11|eligible for any other funding any other charter school is eligible |
| |
12|for as provided for in Section 3-142 of this title. Each statewide |
| |
13|virtual charter school shall be considered a separate local |
| |
14|education agency for purposes of reporting and accountability. |
| |
15| E. A virtual charter school or a charter school which contracts |
| |
16|with an educational management organization shall be subject to the |
| |
17|same reporting requirements, financial audits, audit procedures and |
| |
18|audit requirements as a school district and the compliance |
| |
19|requirements provided in Section 3-136 of this title. The State |
| |
20|Department of Education or State Auditor and Inspector may conduct |
| |
21|financial, program or compliance audits. A virtual charter school |
| |
22|or a charter school which contracts with an educational management |
| |
23|organization shall use the Oklahoma Cost Accounting System (OCAS) to |
| |
24|report financial transactions to the State Department of Education. |
| |
arsid7413908 HB2414 HFLR Page 29
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1|An educational management organization, as defined in Section 5-200 |
| |
2|of this title, which contracts with more than one school district |
| |
3|shall not commingle funds of the schools. |
| |
4| F. A virtual charter school governing body board shall be |
| |
5|responsible for the policies that govern the operational decisions |
| |
6|of the virtual charter school. The governing body board of a |
| |
7|virtual charter school shall be subject to the same conflict of |
| |
8|interest requirements as a member of a local school board including, |
| |
9|but not limited to, Sections 5-113 and 5-124 of this title. Members |
| |
10|appointed to the governing body board of a virtual charter school |
| |
11|after July 1, 2019, shall be subject to the same instruction and |
| |
12|continuing education requirements as a member of a local school |
| |
13|board and pursuant to Section 5-110 of this title, complete twelve |
| |
14|(12) hours of instruction within fifteen (15) months of appointment |
| |
15|to the governing body board, and pursuant to Section 5-110.1 of this |
| |
16|title, attend continuing education. The instruction and continuing |
| |
17|education shall include a minimum of two (2) hours of instruction |
| |
18|and continuing education by the State Auditor and Inspector or an |
| |
19|entity approved by the State Auditor and Inspector. Members |
| |
20|appointed to the governing board of a virtual charter school prior |
| |
21|to July 1, 2019, shall comply with the requirements of this |
| |
22|subsection and, within fifteen (15) months of the effective date of |
| |
23|this act, shall complete twelve (12) hours of instruction pursuant |
| |
24|to Section 5-110 of this title. |
| |
arsid7413908 HB2414 HFLR Page 30
___________________________________________________________________________
1| G. Students enrolled full-time in a statewide virtual charter |
| |
2|school sponsored by the Statewide Virtual Charter School Board shall |
| |
3|not be authorized to participate in any activities administered by |
| |
4|the Oklahoma Secondary Schools Activities Association. However, the |
| |
5|students may participate in intramural activities sponsored by a |
| |
6|statewide virtual charter school, an online provider for the charter |
| |
7|school or any other outside organization. |
| |
8| H. 1. Beginning with the 2021-2022 school year, a public |
| |
9|school student who wishes to enroll in a virtual charter school |
| |
10|shall be considered a transfer student from their resident school |
| |
11|district. A virtual charter school shall pre-enroll any public |
| |
12|school student whose parent expresses intent to enroll in the |
| |
13|district. Upon pre-enrollment, the State Department of Education |
| |
14|shall initiate a transfer on a form to be completed by the receiving |
| |
15|virtual charter school. Upon approval of the receiving virtual |
| |
16|charter school, the student may begin instructional activities. |
| |
17|Upon notice that a public school student has transferred to a |
| |
18|virtual charter school, the resident school district shall transmit |
| |
19|the student's records within three (3) school days. |
| |
20| 2. The State Department of Education shall notify the |
| |
21|Legislature and Governor if it determines that the information |
| |
22|technology infrastructure necessary to process the transfer of |
| |
23|students to a virtual charter school is inadequate and one (1) |
| |
24|additional school year is needed for implementation. |
| |
arsid7413908 HB2414 HFLR Page 31
___________________________________________________________________________
1| 3. A public school student may transfer to one statewide |
| |
2|virtual charter school at any time during a school year. For |
| |
3|purposes of this subsection, "school year" shall mean July 1 through |
| |
4|the following June 30. After one statewide virtual charter school |
| |
5|transfer during a school year, no public school student shall be |
| |
6|permitted to transfer to any other statewide virtual charter school |
| |
7|without the concurrence of both the resident school district and the |
| |
8|receiving virtual charter school. A student shall have a grace |
| |
9|period of fifteen (15) school days from the first day of enrollment |
| |
10|in a statewide virtual charter school to withdraw without academic |
| |
11|penalty and shall continue to have the option of one virtual charter |
| |
12|school transfer without the concurrence of both districts during |
| |
13|that same school year. A statewide virtual charter school student |
| |
14|that has utilized the allowable one transfer pursuant to this |
| |
15|subsection shall not be permitted to transfer to another district or |
| |
16|other statewide virtual charter school without first notifying his |
| |
17|or her resident district and initiating a new transfer. Upon |
| |
18|cancellation of a transfer the virtual charter school shall transmit |
| |
19|the student's records to the student's new school district within |
| |
20|three (3) school days. Students enrolled in a statewide virtual |
| |
21|charter school shall not be required to submit a virtual charter |
| |
22|transfer for consecutive years of enrollment. Any student enrolled |
| |
23|in a statewide virtual charter school the year prior to the |
| |
24| |
| |
arsid7413908 HB2414 HFLR Page 32
___________________________________________________________________________
1|implementation of this section shall not be required to submit a |
| |
2|transfer in order to remain enrolled. |
| |
3| 4. For purposes of this subsection, "parent" shall mean the |
| |
4|parent of the student or person having custody of the student as |
| |
5|provided for in paragraph 1 of subsection A of Section 1-113 of this |
| |
6|title. |
| |
7| I. 1. A student shall be eligible to enroll in a statewide |
| |
8|virtual charter school if he or she is a student whose parent or |
| |
9|legal guardian is transferred or is pending transfer to a military |
| |
10|installation within this state while on active military duty |
| |
11|pursuant to an official military order. |
| |
12| 2. A statewide virtual charter school shall accept applications |
| |
13|by electronic means for enrollment and course registration for |
| |
14|students described in paragraph 1 of this subsection. |
| |
15| 3. The parent or legal guardian of a student described in |
| |
16|paragraph 1 of this subsection shall provide proof of residence in |
| |
17|this state within ten (10) days after the published arrival date |
| |
18|provided on official documentation. A parent or legal guardian may |
| |
19|use the following addresses as proof of residence: |
| |
20| a. a temporary on-base billeting facility, |
| |
21| b. a purchased or leased home or apartment, or |
| |
22| c. federal government or public-private venture off-base |
| |
23| military housing. |
| |
24| |
| |
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1| 4. The provisions of paragraph 3 of subsection H of this |
| |
2|section shall apply to students described in paragraph 1 of this |
| |
3|subsection. |
| |
4| 5. For purposes of this subsection: |
| |
5| a. "active military duty" means full-time military duty |
| |
6| status in the active uniformed service of the United |
| |
7| States including members of the National Guard and |
| |
8| Military Reserve on active duty orders, and |
| |
9| b. "military installation" means a base, camp, post, |
| |
10| station, yard, center, homeport facility for any ship |
| |
11| or other installation under the jurisdiction of the |
| |
12| Department of Defense or the United States Coast |
| |
13| Guard. |
| |
14| J. A virtual charter school shall not accept or deny a transfer |
| |
15|based on ethnicity, national origin, gender, income level, disabling |
| |
16|condition, proficiency in the English language, measure of |
| |
17|achievement, aptitude or athletic ability. |
| |
18| K. The decision of the Statewide Virtual Charter School Board |
| |
19|to deny, nonrenew not renew, or terminate the charter contract of a |
| |
20|statewide virtual charter school may be appealed to the State Board |
| |
21|of Education within thirty (30) days of the decision by the |
| |
22|Statewide Virtual Charter School Board. The State Board of |
| |
23|Education shall act on the appeal within sixty (60) days of receipt |
| |
24|of the request from the statewide virtual charter school applicant. |
| |
arsid7413908 HB2414 HFLR Page 34
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1|The State Board of Education may reverse the decision of the |
| |
2|Statewide Virtual Charter School Board or may remand the matter back |
| |
3|to the Statewide Virtual Charter School Board for further proceeding |
| |
4|as directed. |
| |
5| SECTION 6. NEW LAW A new section of law to be codified |
| |
6|in the Oklahoma Statutes as Section 3-145.9 of Title 70, unless |
| |
7|there is created a duplication in numbering, reads as follows: |
| |
8| A. Beginning with the 2023-2024 school year, any governing |
| |
9|board of a charter school which contracts with an educational |
| |
10|management organization as defined in Section 5-200 of Title 70 of |
| |
11|the Oklahoma Statutes shall: |
| |
12| 1. Consist of a minimum of five (5) members, including one |
| |
13|member who shall be a parent, grandparent, legal guardian or |
| |
14|learning coach of a student who attends the charter school. As used |
| |
15|in this paragraph, "learning coach" means a designated person who |
| |
16|has the primary responsibility of being actively involved in all |
| |
17|school-related work and activities of a student. The bylaws of the |
| |
18|charter school shall set specific terms of service for charter |
| |
19|school governing board members; |
| |
20| 2. Meet at least one time per month; |
| |
21| 3. Adopt a charter which shall ensure compliance with the same |
| |
22|requirements and guidelines as provided in Section 3-136 of Title 70 |
| |
23|of the Oklahoma Statutes; |
| |
24| |
| |
arsid7413908 HB2414 HFLR Page 35
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1| 4. Appoint a board clerk, minute clerk and encumbrance clerk as |
| |
2|provided in Section 5-119 of Title 70 of the Oklahoma Statutes and a |
| |
3|treasurer as provided in Section 5-114 of Title 70 of the Oklahoma |
| |
4|Statutes. Upon appointment, the board clerk, minute clerk, |
| |
5|encumbrance clerk and treasurer shall attend and complete at least |
| |
6|eight (8) hours of instruction offered by the Office of the State |
| |
7|Auditor and Inspector or other organizations or associations |
| |
8|representing school administrators or district boards of education |
| |
9|in this state as approved by the State Auditor and Inspector. Each |
| |
10|year the encumbrance clerk and treasurer shall complete at least |
| |
11|three (3) hours of continuing education offered by the Office of the |
| |
12|State Auditor and Inspector or other organizations or associations |
| |
13|representing school administrators or district boards of education |
| |
14|in this state as approved by the State Auditor and Inspector. If |
| |
15|the board clerk, minute clerk, encumbrance clerk or treasurer is |
| |
16|also a member of the charter school governing board, his or her |
| |
17|completed instruction and continuing education requirements in this |
| |
18|paragraph shall count toward the board instruction and continuing |
| |
19|education requirements provided in subsection F of Section 3-145.3 |
| |
20|of Title 70 of the Oklahoma Statutes; and |
| |
21| 5. Submit to the State Department of Education copies of any |
| |
22|contract executed between the charter school governing board or |
| |
23|charter school sponsor governing board and an educational management |
| |
24|organization. The Department and the sponsor shall publish the |
| |
arsid7413908 HB2414 HFLR Page 36
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1|contracts on their websites and the Department shall publish a list |
| |
2|of all the management fees paid by charter schools or charter school |
| |
3|sponsors to educational management organizations. |
| |
4| B. Beginning with the 2023-2024 school year, members of a |
| |
5|charter school governing board which contracts with an educational |
| |
6|management organization shall: |
| |
7| 1. Be subject to the instruction and continuing education |
| |
8|requirements as provided in subsection F of Section 3-145.3 of Title |
| |
9|70 of the Oklahoma Statutes; |
| |
10| 2. Be subject to the same conflict of interest requirements as |
| |
11|a member of a local school board including, but not limited to, |
| |
12|Sections 5-113 and 5-124 of Title 70 of the Oklahoma Statutes. No |
| |
13|member shall receive pecuniary gain, incidentally or otherwise, from |
| |
14|the earnings of the educational management organization or school; |
| |
15|and |
| |
16| 3. Not be appointed or selected by any person affiliated with |
| |
17|the educational management organization. |
| |
18| SECTION 7. NEW LAW A new section of law to be codified |
| |
19|in the Oklahoma Statutes as Section 3-145.10 of Title 70, unless |
| |
20|there is created a duplication in numbering, reads as follows: |
| |
21| A. Beginning with the 2023-2024 school year, members of a |
| |
22|charter school sponsor governing board that sponsors a charter |
| |
23|school which contracts with an educational management organization |
| |
24|shall complete instruction and continuing education. |
| |
arsid7413908 HB2414 HFLR Page 37
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1| 1. The instruction and continuing education shall be provided |
| |
2|in accordance with Sections 5-110 and 5-110.1 of Title 70 of the |
| |
3|Oklahoma Statutes and shall include a minimum of two (2) hours of |
| |
4|instruction and continuing education by the Office of the State |
| |
5|Auditor and Inspector or an entity approved by the State Auditor and |
| |
6|Inspector. |
| |
7| 2. The governing board of a charter school sponsor shall pay |
| |
8|for the costs of instruction and continuing education for its board |
| |
9|members. |
| |
10| 3. Each member shall complete at least twelve (12) hours of |
| |
11|instruction within the first year of his or her appointment or |
| |
12|within fifteen (15) months after the effective date of this act. |
| |
13| 4. After completing the initial twelve (12) hours of |
| |
14|instruction provided in paragraph 3 of this subsection, each member |
| |
15|shall annually complete at least three (3) hours of continuing |
| |
16|education. |
| |
17| B. As used in this section, "educational management |
| |
18|organization" shall have the same meaning as in Section 5-200 of |
| |
19|Title 70 of the Oklahoma Statutes. |
| |
20| SECTION 8. NEW LAW A new section of law to be codified |
| |
21|in the Oklahoma Statutes as Section 3-145.11 of Title 70, unless |
| |
22|there is created a duplication in numbering, reads as follows: |
| |
23| A. 1. State funds appropriated to any charter school which |
| |
24|contracts with an educational management organization as defined in |
| |
arsid7413908 HB2414 HFLR Page 38
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1|Section 5-200 of Title 70 of the Oklahoma Statutes, including the |
| |
2|State Aid allocation and any other state-appropriated revenue |
| |
3|pursuant to Section 3-142 of Title 70 of the Oklahoma Statutes, |
| |
4|shall remain public funds maintained in public accounts subject to |
| |
5|audit, transparency, oversight and financial reporting and shall not |
| |
6|be transferred or converted in any way to private funds except for |
| |
7|funds which are paid for charter school expenses and funds which are |
| |
8|paid to the educational management organization from the charter |
| |
9|school pursuant to the terms of the contract and in accordance with |
| |
10|state law and Internal Revenue Service requirements. If there is |
| |
11|any question or potential discrepancy regarding use of funds paid to |
| |
12|the educational management organization by the State Department of |
| |
13|Education, charter school governing board, or charter school |
| |
14|sponsor, the educational management organization shall provide |
| |
15|invoices and financial documentation to the requesting entity |
| |
16|proving the educational management organization is following the |
| |
17|terms of the contract and is in compliance with the law. |
| |
18| 2. Any state funds which are designated as student learning |
| |
19|funds are appropriated for the benefit of the student, including |
| |
20|extracurricular and educational activity funds, and shall remain |
| |
21|public funds maintained in public accounts subject to audit, |
| |
22|transparency, oversight and financial reporting and expended in |
| |
23|accordance with purchasing requirements provided in Section 5-135 of |
| |
24|Title 70 of the Oklahoma Statutes. Students shall receive a grade |
| |
arsid7413908 HB2414 HFLR Page 39
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1|for participation in extracurricular or educational activities as |
| |
2|described in this subsection. |
| |
3| 3. Any property purchased with public funds pursuant to this |
| |
4|section may be assigned to employees or students of the charter |
| |
5|school for charter school employment or extracurricular or |
| |
6|educational purposes, but shall remain public property of the |
| |
7|charter school. |
| |
8| B. In the third year of the charter school contract term, the |
| |
9|State Auditor and Inspector or an auditor selected from a list of |
| |
10|auditors approved and maintained by the State Auditor and Inspector |
| |
11|shall conduct an operating agreement review of each charter school |
| |
12|which contracts with an educational management organization to |
| |
13|verify that the charter school and the educational management |
| |
14|organization are following the terms of the contract and complying |
| |
15|with state law and Internal Revenue Service requirements. The |
| |
16|auditor may request additional documentation from the charter school |
| |
17|or educational management organization to address any question or |
| |
18|potential discrepancy. The charter school sponsor shall pay for the |
| |
19|expenses related to the review, oversee the review and provide a |
| |
20|full report of the review to the governing boards of the charter |
| |
21|school and the charter school sponsor. |
| |
22| C. Every provider or entity that contracts with a charter |
| |
23|school for expenditure of state funds pursuant to paragraph 2 of |
| |
24|subsection A of this section shall: |
| |
arsid7413908 HB2414 HFLR Page 40
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1| 1. Have an agreement in writing with the charter school which |
| |
2|clearly states the goods or services being provided by the provider |
| |
3|or entity pursuant to the contract and the costs thereof and that |
| |
4|such goods, services and employees of the provider or entity comply |
| |
5|with federal and state laws; and |
| |
6| 2. Have on file with the State Department of Education a |
| |
7|current Oklahoma criminal history record check from the Oklahoma |
| |
8|State Bureau of Investigation or equivalent criminal history record |
| |
9|check from another state as well as a national criminal history |
| |
10|record check as defined in Section 150.9 of Title 74 of the Oklahoma |
| |
11|Statutes for every owner and employee of the provider or entity who |
| |
12|will have contact with students pursuant to the contract. Upon |
| |
13|receipt of the Oklahoma criminal history record check or equivalent |
| |
14|criminal history record check from another state, the provider or |
| |
15|entity may begin extracurricular or educational activities until |
| |
16|receipt of the national criminal history record check. The provider |
| |
17|or entity shall be responsible for the cost of the criminal history |
| |
18|record checks. Results of the checks shall be included as a |
| |
19|requirement of the contract and reported to the governing board of |
| |
20|the charter school. |
| |
21| D. An educational management organization shall not: |
| |
22| 1. Manage or control the governing board of a charter school, |
| |
23|including, but not limited to, setting meeting agendas, adopting |
| |
24| |
| |
arsid7413908 HB2414 HFLR Page 41
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1|charter school policies or making budget decisions on behalf of the |
| |
2|charter school; |
| |
3| 2. Employ a charter school superintendent who is also an owner |
| |
4|of the educational management organization, unless the ownership |
| |
5|stake held by the superintendent is less than ten percent (10%); |
| |
6| 3. Employ legal counsel who also represents the charter school |
| |
7|or charter school governing board which has an agreement with the |
| |
8|educational management organization; and |
| |
9| 4. Request public employees, including, but not limited to, |
| |
10|teachers and other charter school employees, to complete tasks or |
| |
11|perform duties that the educational management organization has been |
| |
12|contracted to fulfill. |
| |
13| SECTION 9. AMENDATORY 70 O.S. 2021, Section 5-200, is |
| |
14|amended to read as follows: |
| |
15| Section 5-200. A. As used in this section, "educational |
| |
16|management organization" means a for-profit or nonprofit |
| |
17|organization that receives public funds to provide administration |
| |
18|and management services for a charter school, statewide virtual |
| |
19|charter school or traditional public school. |
| |
20| B. A charter school that contracts with an educational |
| |
21|management organization shall use the Oklahoma Cost Accounting |
| |
22|System (OCAS) to report the total amount paid to an educational |
| |
23|management organization pursuant to the terms of the contract as |
| |
24|well as actual itemized expenditure information for the goods or |
| |
arsid7413908 HB2414 HFLR Page 42
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1|services provided by the management organization as defined by OCAS |
| |
2|expenditure codes, including the total compensation package of the |
| |
3|superintendent including the base salary, insurance, retirement and |
| |
4|other fringe benefits. |
| |
5| C. Any Pursuant to Internal Revenue Service guidelines, any |
| |
6|owner of an educational management organization shall be required to |
| |
7|disclose to the governing board of the school in a public meeting |
| |
8|any ownership position in any business that contracts or proposes to |
| |
9|contract with the same public school that the educational management |
| |
10|organization is managing. |
| |
11| D. Whenever any person shall enter into a contract with any |
| |
12|school district or public charter school in the state to teach in |
| |
13|such school district or public charter school the contract shall be |
| |
14|binding on the teacher and on the board of education until the |
| |
15|teacher legally has been discharged from the teaching position or |
| |
16|released by the board of education from the contract. Except as |
| |
17|provided in Section 5-106A of Title 70 of the Oklahoma Statutes this |
| |
18|title, until such teacher has been thus discharged or released, the |
| |
19|teacher shall not have authority to enter into a contract with any |
| |
20|other board of education in Oklahoma for the same time covered by |
| |
21|the original contract. If upon written complaint by the board of |
| |
22|education in a district any teacher is reported to have failed to |
| |
23|obey the terms of the contract previously made and to have entered |
| |
24|into a contract with another board of education, including a public |
| |
arsid7413908 HB2414 HFLR Page 43
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1|charter school board of education, without having been released from |
| |
2|the former contract except as provided in Section 5-106A of Title 70 |
| |
3|of the Oklahoma Statutes this title, the teacher, upon being found |
| |
4|to be employed full-time for another public school, including a |
| |
5|public charter school in the state, at a hearing held before the |
| |
6|State Board of Education, shall have such teacher's certificate |
| |
7|suspended for the remainder of the term for which the contract was |
| |
8|made. |
| |
9| SECTION 10. AMENDATORY 70 O.S. 2021, Section 18-124, is |
| |
10|amended to read as follows: |
| |
11| Section 18-124. A. Any school district with an average daily |
| |
12|attendance (ADA) of more than one thousand five hundred (1,500) |
| |
13|students for the preceding year which expends for administrative |
| |
14|services in the 2005-06 school year or any school year thereafter, |
| |
15|less expenditures for legal services, more than five percent (5%) of |
| |
16|the amount it expends for total expenditures, less expenditures for |
| |
17|legal services, shall have the amount which exceeds the five percent |
| |
18|(5%) withheld the following year from the Foundation and Salary |
| |
19|Incentive Aid for the school district. |
| |
20| B. Any school district with an average daily attendance (ADA) |
| |
21|of more than five hundred (500) students but not more than one |
| |
22|thousand five hundred (1,500) students for the preceding year which |
| |
23|expends for administrative services in the 2005-06 school year or |
| |
24|any school year thereafter, less expenditures for legal services, |
| |
arsid7413908 HB2414 HFLR Page 44
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1|more than seven percent (7%) of the amount it expends for total |
| |
2|expenditures, less expenditures for legal services, shall have the |
| |
3|amount which exceeds the seven percent (7%) withheld the following |
| |
4|year from the Foundation and Salary Incentive Aid for the school |
| |
5|district. |
| |
6| C. Any school district with an average daily attendance (ADA) |
| |
7|of five hundred (500) or fewer students for the preceding year which |
| |
8|expends for administrative services in the 2005-06 school year or |
| |
9|any school year thereafter, less expenditures for legal services, |
| |
10|more than eight percent (8%) of the amount it expends for total |
| |
11|expenditures, less expenditures for legal services, shall have the |
| |
12|amount which exceeds the eight percent (8%) withheld the following |
| |
13|year from the Foundation and Salary Incentive Aid for the school |
| |
14|district. |
| |
15| D. The provisions of this section shall apply to charter |
| |
16|schools which contract with an educational management organization, |
| |
17|as defined in Section 5-200 of this title. The expenditure limits |
| |
18|shall not exceed the percentages prescribed in subsections A, B, and |
| |
19|C of this section, and the calculation of administrative services |
| |
20|for charter schools which contract with an educational management |
| |
21|organization shall be the combined amount of administrative services |
| |
22|expended by the charter school and the educational management |
| |
23|organization. |
| |
24| |
| |
arsid7413908 HB2414 HFLR Page 45
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1| E. For purposes of this section, "administrative services" |
| |
2|means costs associated with: |
| |
3| 1. Staff for the board of education; |
| |
4| 2. The secretary/clerk for the board of education; |
| |
5| 3. Staff relations; |
| |
6| 4. Negotiations staff; |
| |
7| 5. Immediate staff of the superintendent, any elementary |
| |
8|superintendent or any assistant superintendent; |
| |
9| 6. Any superintendent, elementary superintendent, or assistant |
| |
10|superintendent; |
| |
11| 7. Any employee of a school district employed as a director, |
| |
12|coordinator, supervisor, or who has responsibility for |
| |
13|administrative functions of a school district; and |
| |
14| 8. Any consultant hired by the school district; and |
| |
15| 9. Any costs for administrative services paid to an educational |
| |
16|management organization as defined in Section 5-200 of this title. |
| |
17| E. F. If an employee of a school district is employed in a |
| |
18|position where part of the employee's time is spent as an |
| |
19|administrator and part of the time is spent in nonadministrative |
| |
20|functions, the percentage of time spent as an administrator shall be |
| |
21|included as administrative services. A superintendent who spends |
| |
22|part of the time performing exempted nonadministrative services such |
| |
23|as teaching in the classroom, serving as a principal, counselor, or |
| |
24|library media specialist, can code up to forty percent (40%) of |
| |
arsid7413908 HB2414 HFLR Page 46
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1|their salary to other nonadministrative functions. The total amount |
| |
2|of time a superintendent of a school district spends performing |
| |
3|services for a school district shall be included as administrative |
| |
4|services even if part of the time the superintendent is performing |
| |
5|nonexempted nonadministrative service functions. The total amount |
| |
6|received by a superintendent from the school district as salary, for |
| |
7|the performance of administrative and nonexempted nonadministrative |
| |
8|services, shall be recorded under the code for superintendent salary |
| |
9|as provided for in the Oklahoma Cost Accounting System. |
| |
10| F. G. Each school site within a school district shall take |
| |
11|steps to ensure that the administrative costs for the school comply |
| |
12|with the expenditure limits established for school districts in this |
| |
13|section. |
| |
14| G. H. Funds withheld pursuant to the provisions of this section |
| |
15|shall be distributed through the State Aid formula to the districts |
| |
16|not so penalized. |
| |
17| H. I. For the 2003-04 and 2004-05 school year, school districts |
| |
18|shall report to the State Department of Education the costs |
| |
19|associated with administrative services for the school district as |
| |
20|defined in subsection D E of this section. |
| |
21| SECTION 11. This act shall become effective July 1, 2023. |
| |
22| SECTION 12. It being immediately necessary for the preservation |
| |
23|of the public peace, health or safety, an emergency is hereby |
| |
24| |
| |
arsid7413908 HB2414 HFLR Page 47
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1|declared to exist, by reason whereof this act shall take effect and |
| |
2|be in full force from and after its passage and approval. |
| |
3| |
| |
4|COMMITTEE REPORT BY: COMMITTEE ON COMMON EDUCATION, dated 02/28/2023 |
|- DO PASS. |
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arsid7413908 HB2414 HFLR Page 48
