Bill Text For HB3083 - Conference Committee Substitute

 1|                          STATE OF OKLAHOMA                            |
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 2|             2nd Session of the 58th Legislature (2022)                |
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 3|CONFERENCE COMMITTEE                                                   |
  |SUBSTITUTE                                                             |
 4|FOR ENGROSSED                                                          |
  |HOUSE BILL NO. 3083                  By: Hilbert of the House          |
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  |                                         and                           |
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  |                                         Montgomery of the Senate      |
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 8|                                                                       |
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 9|                   CONFERENCE COMMITTEE SUBSTITUTE                     |
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10|       An Act relating to revenue and taxation; amending 63            |
  |       O.S. 2021, Sections 426, as amended by Section 27 of            |
11|       Enrolled Senate Bill No. 1802 of the 2nd Session of             |
  |       the 58th Oklahoma Legislature and 427.3, as amended             |
12|       by Section 30 of Enrolled Senate Bill No. 1802 of the           |
  |       2nd Session of the 58th Oklahoma Legislature, which             |
13|       relate to the Oklahoma Medical Marijuana Authority;             |
  |       modifying apportionment of excise tax proceeds;                 |
14|       establishing maximum limits for apportionments;                 |
  |       updating statutory citation; directing Authority to             |
15|       establish certain programs and providing funding;               |
  |       creating County Sheriff Public Safety Grant Revolving           |
16|       Fund; establishing expiration date for fund;                    |
  |       providing for use of apportioned funds by Authority;            |
17|       prescribing procedures for expenditures; directing              |
  |       transfer of funds upon fund expiration; amending 70             |
18|       O.S. 2021, Section 3-104, which relates to the State            |
  |       Board of Education; updating statutory citations;               |
19|       repealing Section 1 of Enrolled House Bill No. 3530             |
  |       of the 2nd Session of the 58th Oklahoma Legislature,            |
20|       which relates to the County Sheriff Public Safety               |
  |       Grant Revolving Fund; providing for codification;               |
21|       providing an effective date; and declaring an                   |
  |       emergency.                                                      |
22|                                                                       |
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23|                                                                       |
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24|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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arsid14224768 House Action _________________  Date _________       Page 1
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 1|    SECTION 1.     AMENDATORY     63 O.S. 2021, Section 426, as        |
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 2|amended by Section 27 of Enrolled Senate Bill No. 1802 of the 2nd      |
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 3|Session of the 58th Oklahoma Legislature, is amended to read as        |
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 4|follows:                                                               |
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 5|    Section 426.  A.  The tax on retail medical marijuana sales        |
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 6|shall be established at seven percent (7%) of the gross amount         |
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 7|received by the seller.                                                |
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 8|    B.  This tax shall be collected at the point of sale.  Except as   |
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 9|provided for in subsection D C of this section, tax proceeds will be   |
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10|applied primarily to finance the regulatory office shall be            |
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11|appropriated in amounts as authorized by the Oklahoma Legislature.     |
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12|    C.  Except as provided for in subsection D, if For the fiscal      |
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13|year beginning July 1, 2022, and each subsequent fiscal year,          |
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14|proceeds from the levy authorized by subsection A of this section      |
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15|exceed the budgeted amount for running the regulatory office, any      |
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16|surplus shall be apportioned with seventy-five percent (75%) going     |
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17|to the General Revenue Fund and may only be expended for common        |
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18|education including as follows:                                        |
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19|    1.  Seventy-seven and ninety-seven hundredths percent (77.97%)     |
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20|of the total proceeds of the levy to the State Public Common School    |
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21|Building Equalization Fund for the purpose of funding redbud school    |
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22|grants pursuant to Section 3-104 of Title 70 of the Oklahoma           |
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23|Statutes.  Twenty-five percent (25%) shall be apportioned, but in no   |
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24|event shall the total amount apportioned in any fiscal year pursuant   |
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 1|to this paragraph exceed the amount of redbud school grant funds       |
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 2|awarded pursuant to subsection B of Section 3-104 of Title 70 of the   |
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 3|Oklahoma Statutes;                                                     |
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 4|    2.  Thirteen and fifty-six hundredths percent (13.56%) of the      |
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 5|total proceeds of the levy to the State Department of Mental Health    |
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 6|and Substance Abuse Services and earmarked for drug and alcohol        |
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 7|rehabilitation and prevention., but in no event shall the total        |
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 8|amount apportioned in any fiscal year pursuant to this paragraph       |
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 9|exceed Eight Million Dollars ($8,000,000.00);                          |
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10|    3.  Eight and forty-seven hundredths percent (8.47%) of the        |
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11|total proceeds of the levy to the County Sheriff Public Safety Grant   |
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12|Revolving Fund created pursuant to Section 3 of this act until June    |
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13|30, 2025, and beginning July 1, 2025 and each fiscal thereafter to     |
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14|the Oklahoma Medical Marijuana Authority Revolving Fund created        |
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15|pursuant to Section 427.5 of this title, but in no event shall the     |
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16|total amount apportioned in any fiscal year pursuant to this           |
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17|paragraph exceed Five Million Dollars ($5,000,000.00); and             |
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18|    4.  Any surplus collections available pursuant to the provisions   |
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19|of this subsection shall be apportioned to the General Revenue Fund    |
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20|of the State Treasury.                                                 |
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21|    D.  Pursuant to Section 14 255.2 of this act Title 68 of the       |
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22|Oklahoma Statutes, the Oklahoma Tax Commission shall have authority    |
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23|to assess, collect and enforce the tax specified in subsection A of    |
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24|this section including any interest and penalty thereon.               |
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arsid14224768 House Action _________________  Date _________       Page 3
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 1|    E.  For fiscal year 2022, proceeds from the levy authorized by     |
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 2|subsection A of this section shall be apportioned as follows:          |
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 3|    1.  The first Sixty-five Million Dollars ($65,000,000.00) shall    |
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 4|be apportioned as follows:                                             |
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 5|         a.    fifty-nine and twenty-three hundredths percent          |
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 6|              (59.23%) to the State Public Common School Building      |
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 7|              Equalization Fund,                                       |
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 8|         b.    thirty-four and sixty-two hundredths percent (34.62%)   |
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 9|              to the Oklahoma Medical Marijuana Authority, a           |
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10|              division within the Oklahoma State Department of         |
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11|              Health, and                                              |
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12|         c.    six and fifteen hundredths percent (6.15%) to the       |
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13|              Oklahoma State Department of Health and earmarked for    |
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14|              drug and alcohol rehabilitation; and                     |
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15|    2.  Any surplus collections shall be apportioned to the General    |
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16|Revenue Fund of the State Treasury.                                    |
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17|    SECTION 2.     AMENDATORY     63 O.S. 2021, Section 427.3, as      |
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18|amended by Section 30 of Enrolled Senate Bill No. 1802 of the 2nd      |
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19|Session of the 58th Oklahoma Legislature, is amended to read as        |
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20|follows:                                                               |
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21|    Section 427.3.  A.  There is hereby created the Oklahoma Medical   |
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22|Marijuana Authority within the State Department of Health which        |
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23|shall address issues related to the medical marijuana program in       |
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24|Oklahoma including, but not limited to, the issuance of patient        |
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arsid14224768 House Action _________________  Date _________       Page 4
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 1|licenses and medical marijuana business licenses, and the              |
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 2|dispensing, cultivating, processing, testing, transporting, storage,   |
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 3|research, and the use of and sale of medical marijuana pursuant to     |
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 4|the Oklahoma Medical Marijuana and Patient Protection Act.             |
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 5|    B.  The Department shall provide support staff to perform          |
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 6|designated duties of the Authority.  The Department shall also         |
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 7|provide office space for meetings of the Authority.                    |
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 8|    C.  The Department shall implement the provisions of the           |
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 9|Oklahoma Medical Marijuana and Patient Protection Act consistently     |
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10|with the voter-approved State Question No. 788, Initiative Petition    |
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11|No. 412, subject to the provisions of the Oklahoma Medical Marijuana   |
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12|and Patient Protection Act.                                            |
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13|    D.  The Department shall exercise its respective powers and        |
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14|perform its respective duties and functions as specified in the        |
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15|Oklahoma Medical Marijuana and Patient Protection Act and this title   |
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16|including, but not limited to, the following:                          |
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17|    1.  Determine steps the state shall take, whether administrative   |
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18|or legislative in nature, to ensure that research on marijuana and     |
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19|marijuana products is being conducted for public purposes, including   |
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20|the advancement of:                                                    |
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21|         a.    public health policy and public safety policy,          |
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22|         b.    agronomic and horticultural best practices, and         |
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23|         c.    medical and pharmacopoeia best practices;               |
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24|                                                                       |
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 1|    2.  Contract with third-party vendors and other governmental       |
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 2|entities in order to carry out the respective duties and functions     |
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 3|as specified in the Oklahoma Medical Marijuana and Patient             |
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 4|Protection Act;                                                        |
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 5|    3.  Upon complaint or upon its own motion and upon a completed     |
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 6|investigation, levy fines as prescribed in applicable laws, rules      |
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 7|and regulations and suspend, revoke or not renew licenses pursuant     |
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 8|to applicable laws, rules and regulations;                             |
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 9|    4.  Issue subpoenas for the appearance or production of persons,   |
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10|records and things in connection with disciplinary or contested        |
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11|cases considered by the Department;                                    |
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12|    5.  Apply for injunctive or declaratory relief to enforce the      |
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13|provisions of applicable laws, rules and regulations;                  |
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14|    6.  Inspect and examine all licensed premises of medical           |
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15|marijuana businesses, research facilities, education facilities and    |
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16|waste disposal facilities in which medical marijuana is cultivated,    |
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17|manufactured, sold, stored, transported, tested, distributed or        |
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18|disposed of;                                                           |
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19|    7.  Upon action by the federal government by which the             |
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20|production, sale and use of marijuana in Oklahoma does not violate     |
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21|federal law, work with the Oklahoma State Banking Department and the   |
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22|State Treasurer to develop good practices and standards for banking    |
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23|and finance for medical marijuana businesses;                          |
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 1|    8.  Establish internal control procedures for licenses including   |
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 2|accounting procedures, reporting procedures and personnel policies;    |
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 3|    9.  Establish a fee schedule and collect fees for performing       |
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 4|background checks as the Commissioner deems appropriate.  The fees     |
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 5|charged pursuant to this paragraph shall not exceed the actual cost    |
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 6|incurred for each background check;                                    |
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 7|    10.  Establish a fee schedule and collect fees for material        |
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 8|changes requested by the licensee; and                                 |
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 9|    11.  Establish regulations, which require a medical marijuana      |
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10|business to submit information to the Oklahoma Medical Marijuana       |
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11|Authority, deemed reasonably necessary to assist the Authority in      |
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12|the prevention of diversion of medical marijuana by a licensed         |
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13|medical marijuana business.  Such information required by the          |
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14|Authority may include, but shall not be limited to:                    |
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15|         a.    the square footage of the licensed premises,            |
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16|         b.    a diagram of the licensed premises,                     |
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17|         c.    the number and type of lights at the licensed medical   |
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18|              marijuana commercial grower business,                    |
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19|         d.    the number, type and production capacity of equipment   |
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20|              located at the medical marijuana processing facility,    |
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21|         e.    the names, addresses and telephone numbers of           |
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22|              employees or agents of a medical marijuana business,     |
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23|         f.    employment manuals and standard operating procedures    |
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24|              for the medical marijuana business, and                  |
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 1|         g.    any other information as the Authority reasonably       |
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 2|              deems necessary; and                                     |
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 3|    12.  Establish programs and provide funding, from the revenues     |
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 4|apportioned pursuant to paragraph 3 of subsection C of Section 426     |
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 5|of this title, to support county sheriffs to enforce the               |
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 6|requirements of state law with respect to the commercial growth of     |
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 7|medical marijuana or other related business activity for which a       |
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 8|license is required pursuant to the provisions of law governing the    |
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 9|production, cultivation, transportation, distribution, sale, or        |
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10|other actions related to medical marijuana.                            |
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11|    E.  The Department shall be authorized to enter into and           |
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12|negotiate the terms of a Memorandum of Understanding between the       |
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13|Department and other state agencies concerning the enforcement of      |
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14|laws regulating medical marijuana in this state.                       |
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15|    SECTION 3.     NEW LAW     A new section of law to be codified     |
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16|in the Oklahoma Statutes as Section 427.3A of Title 63, unless there   |
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17|is created a duplication in numbering, reads as follows:               |
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18|    A.  There is hereby created in the State Treasury until June 30,   |
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19|2025, a revolving fund for the Oklahoma Medical Marijuana Authority    |
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20|to be designated the "County Sheriff Public Safety Grant Revolving     |
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21|Fund".  The fund shall be a continuing fund, not subject to fiscal     |
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22|year limitations, and shall consist of all monies received by the      |
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23|Oklahoma Medical Marijuana Authority from the apportionment of the     |
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24|excise tax on medical marijuana as provided by Section 426 of Title    |
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 1|63 of the Oklahoma Statutes and any federal funds, grants, and         |
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 2|donations from any public or private source.  All monies accruing to   |
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 3|the credit of the fund are hereby appropriated and may be budgeted     |
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 4|and expended by the Oklahoma Medical Marijuana Authority for the       |
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 5|purpose specified by paragraph 12 of subsection D of Section 427.3     |
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 6|of Title 63 of the Oklahoma Statutes.  Expenditures from the fund      |
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 7|shall be made upon warrants issued by the State Treasurer against      |
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 8|claims filed as prescribed by law with the Director of the Office of   |
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 9|Management and Enterprise Services for approval and payment.           |
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10|    B.  All unencumbered funds remaining in the County Sheriff         |
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11|Public Safety Grant Revolving Fund upon the expiration of the fund     |
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12|on June 30, 2025, shall be transferred to the State Treasurer for      |
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13|deposit in the Oklahoma Medical Marijuana Authority Revolving Fund     |
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14|created pursuant to Section 427.5 of Title 63 of the Oklahoma          |
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15|Statutes.                                                              |
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16|    SECTION 4.     AMENDATORY     70 O.S. 2021, Section 3-104, is      |
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17|amended to read as follows:                                            |
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18|    Section 3-104.  A.  The supervision of the public school system    |
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19|of Oklahoma shall be vested in the State Board of Education and,       |
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20|subject to limitations otherwise provided by law, the State Board of   |
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21|Education shall:                                                       |
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22|    1.  Adopt policies and make rules for the operation of the         |
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23|public school system of the state;                                     |
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24|                                                                       |
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 1|    2.  Appoint, prescribe the duties and fix the compensation of a    |
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 2|secretary, an attorney and all other personnel necessary for the       |
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 3|proper performance of the functions of the State Board of Education.   |
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 4| The secretary shall not be a member of the Board;                     |
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 5|    3.  Submit to the Governor a departmental budget based upon        |
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 6|major functions of the Department as prepared by the State             |
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 7|Superintendent of Public Instruction and supported by detailed data    |
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 8|on needs and proposed operations as partially determined by the        |
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 9|budgetary needs of local school districts filed with the State Board   |
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10|of Education for the ensuing fiscal year.  Appropriations therefor     |
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11|shall be made in lump-sum form for each major item in the budget as    |
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12|follows:                                                               |
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13|         a.   State Aid to schools,                                    |
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14|         b.   the supervision of all other functions of general and    |
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15|              special education including general control, free        |
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16|              textbooks, school lunch, Indian education and all        |
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17|              other functions of the Board and an amount sufficient    |
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18|              to adequately staff and administer these services, and   |
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19|         c.   the Board shall determine the details by which the       |
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20|              budget and the appropriations are administered.          |
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21|              Annually, the Board shall make preparations to           |
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22|              consolidate all of the functions of the Department in    |
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23|              such a way that the budget can be based on two items,    |
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24|              administration and aid to schools.  A maximum amount     |
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 1|              for administration shall be designated as a part of      |
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 2|              the total appropriation;                                 |
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 3|    4.  On the first day of December preceding each regular session    |
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 4|of the Legislature, prepare and deliver to the Governor and the        |
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 5|Legislature a report for the year ending June 30 immediately           |
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 6|preceding the regular session of the Legislature.  The report shall    |
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 7|contain:                                                               |
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 8|         a.   detailed statistics and other information concerning     |
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 9|              enrollment, attendance, expenditures including State     |
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10|              Aid, and other pertinent data for all public schools     |
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11|              in this state,                                           |
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12|         b.   reports from each and every division within the State    |
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13|              Department of Education as submitted by the State        |
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14|              Superintendent of Public Instruction and any other       |
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15|              division, department, institution or other agency        |
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16|              under the supervision of the Board,                      |
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17|         c.   recommendations for the improvement of the public        |
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18|              school system of the state,                              |
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19|         d.   a statement of the receipts and expenditures of the      |
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20|              State Board of Education for the past year, and          |
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21|         e.   a statement of plans and recommendations for the         |
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22|              management and improvement of public schools and such    |
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23|              other information relating to the educational            |
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24|                                                                       |
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 1|              interests of the state as may be deemed necessary and    |
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 2|              desirable;                                               |
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 3|    5.  Provide for the formulation and adoption of curricula,         |
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 4|courses of study and other instructional aids necessary for the        |
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 5|adequate instruction of pupils in the public schools;                  |
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 6|    6.  Have authority in matters pertaining to the licensure and      |
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 7|certification of persons for instructional, supervisory and            |
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 8|administrative positions and services in the public schools of the     |
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 9|state subject to the provisions of Section 6-184 of this title, and    |
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10|shall formulate rules governing the issuance and revocation of         |
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11|certificates for superintendents of schools, principals,               |
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12|supervisors, librarians, clerical employees, school nurses, school     |
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13|bus drivers, visiting teachers, classroom teachers and for other       |
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14|personnel performing instructional, administrative and supervisory     |
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15|services, but not including members of boards of education and other   |
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16|employees who do not work directly with pupils, and may charge and     |
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17|collect reasonable fees for the issuance of such certificates:         |
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18|         a.   the State Department of Education shall not issue a      |
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19|              certificate to and shall revoke the certificate of any   |
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20|              person who has been convicted, whether upon a verdict    |
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21|              or plea of guilty or upon a plea of nolo contendere,     |
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22|              or received a suspended sentence or any probationary     |
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23|              term for a crime or an attempt to commit a crime         |
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24|              provided for in Section 843.5 of Title 21 of the         |
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 1|              Oklahoma Statutes if the offense involved sexual abuse   |
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 2|              or sexual exploitation as those terms are defined in     |
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 3|              Section 1-1-105 of Title 10A of the Oklahoma Statutes,   |
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 4|              Section 741, 843.1, if the offense included sexual       |
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 5|              abuse or sexual exploitation, 865 et seq., 885, 888,     |
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 6|              891, 1021, 1021.2, 1021.3, 1040.13a, 1087, 1088,         |
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 7|              1111.1, 1114 or 1123 of Title 21 of the Oklahoma         |
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 8|              Statutes or who enters this state and who has been       |
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 9|              convicted, received a suspended sentence or received a   |
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10|              deferred judgment for a crime or attempted crime         |
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11|              which, if committed or attempted in this state, would    |
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12|              be a crime or an attempt to commit a crime provided      |
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13|              for in any of said laws,                                 |
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14|         b.   all funds collected by the State Department of           |
  |                                                                       |
15|              Education for the issuance of certificates to            |
  |                                                                       |
16|              instructional, supervisory and administrative            |
  |                                                                       |
17|              personnel in the public schools of the state shall be    |
  |                                                                       |
18|              deposited in the "Teachers' Certificate Fund" in the     |
  |                                                                       |
19|              State Treasury and may be expended by the State Board    |
  |                                                                       |
20|              of Education to finance the activities of the State      |
  |                                                                       |
21|              Department of Education necessary to administer the      |
  |                                                                       |
22|              program, for consultative services, publication costs,   |
  |                                                                       |
23|              actual and necessary travel expenses as provided in      |
  |                                                                       |
24|              the State Travel Reimbursement Act incurred by persons   |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 13
___________________________________________________________________________

 1|              performing research work, and other expenses found       |
  |                                                                       |
 2|              necessary by the State Board of Education for the        |
  |                                                                       |
 3|              improvement of the preparation and certification of      |
  |                                                                       |
 4|              teachers in Oklahoma.  Provided, any unobligated         |
  |                                                                       |
 5|              balance in the Teachers' Certificate Fund in excess of   |
  |                                                                       |
 6|              Ten Thousand Dollars ($10,000.00) on June 30 of any      |
  |                                                                       |
 7|              fiscal year shall be transferred to the General          |
  |                                                                       |
 8|              Revenue Fund of the State of Oklahoma.  Until July 1,    |
  |                                                                       |
 9|              1997, the State Board of Education shall have            |
  |                                                                       |
10|              authority for approval of teacher education programs.    |
  |                                                                       |
11|              The State Board of Education shall also have authority   |
  |                                                                       |
12|              for the administration of teacher residency and          |
  |                                                                       |
13|              professional development, subject to the provisions of   |
  |                                                                       |
14|              the Oklahoma Teacher Preparation Act;                    |
  |                                                                       |
15|    7.  Promulgate rules governing the classification, inspection,     |
  |                                                                       |
16|supervision and accrediting of all public nursery, kindergarten,       |
  |                                                                       |
17|elementary and secondary schools and on-site educational services      |
  |                                                                       |
18|provided by public school districts or state-accredited private        |
  |                                                                       |
19|schools in partial hospitalization programs, day treatment programs,   |
  |                                                                       |
20|and day hospital programs as defined in this act for persons between   |
  |                                                                       |
21|the ages of three (3) and twenty-one (21) years of age in the state.   |
  |                                                                       |
22| However, no school shall be denied accreditation solely on the        |
  |                                                                       |
23|basis of average daily attendance.                                     |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 14
___________________________________________________________________________

 1|    Any school district which maintains an elementary school and       |
  |                                                                       |
 2|faces the necessity of relocating its school facilities because of     |
  |                                                                       |
 3|construction of a lake, either by state or federal authority, which    |
  |                                                                       |
 4|will inundate the school facilities, shall be entitled to receive      |
  |                                                                       |
 5|probationary accreditation from the State Board of Education for a     |
  |                                                                       |
 6|period of five (5) years after the effective date of this act and      |
  |                                                                       |
 7|any school district, otherwise qualified, shall be entitled to         |
  |                                                                       |
 8|receive probationary accreditation from the State Board of Education   |
  |                                                                       |
 9|for a period of two (2) consecutive years to attain the minimum        |
  |                                                                       |
10|average daily attendance.  The Head Start and public nurseries or      |
  |                                                                       |
11|kindergartens operated from Community Action Program funds shall not   |
  |                                                                       |
12|be subjected to the accrediting rules of the State Board of            |
  |                                                                       |
13|Education.  Neither will the State Board of Education make rules       |
  |                                                                       |
14|affecting the operation of the public nurseries and kindergartens      |
  |                                                                       |
15|operated from federal funds secured through Community Action           |
  |                                                                       |
16|Programs even though they may be operating in the public schools of    |
  |                                                                       |
17|the state.  However, any of the Head Start or public nurseries or      |
  |                                                                       |
18|kindergartens operated under federal regulations may make              |
  |                                                                       |
19|application for accrediting from the State Board of Education but      |
  |                                                                       |
20|will be accredited only if application for the approval of the         |
  |                                                                       |
21|programs is made.  The status of no school district shall be changed   |
  |                                                                       |
22|which will reduce it to a lower classification until due notice has    |
  |                                                                       |
23|been given to the proper authorities thereof and an opportunity        |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 15
___________________________________________________________________________

 1|given to correct the conditions which otherwise would be the cause     |
  |                                                                       |
 2|of such reduction.                                                     |
  |                                                                       |
 3|    Private and parochial schools may be accredited and classified     |
  |                                                                       |
 4|in like manner as public schools or, if an accrediting association     |
  |                                                                       |
 5|is approved by the State Board of Education, by procedures             |
  |                                                                       |
 6|established by the State Board of Education to accept accreditation    |
  |                                                                       |
 7|by such accrediting association, if application is made to the State   |
  |                                                                       |
 8|Board of Education for such accrediting;                               |
  |                                                                       |
 9|    8.  Be the legal agent of the State of Oklahoma to accept, in      |
  |                                                                       |
10|its discretion, the provisions of any Act of Congress appropriating    |
  |                                                                       |
11|or apportioning funds which are now, or may hereafter be, provided     |
  |                                                                       |
12|for use in connection with any phase of the system of public           |
  |                                                                       |
13|education in Oklahoma.  It shall prescribe such rules as it finds      |
  |                                                                       |
14|necessary to provide for the proper distribution of such funds in      |
  |                                                                       |
15|accordance with the state and federal laws;                            |
  |                                                                       |
16|    9.  Be and is specifically hereby designated as the agency of      |
  |                                                                       |
17|this state to cooperate and deal with any officer, board or            |
  |                                                                       |
18|authority of the United States Government under any law of the         |
  |                                                                       |
19|United States which may require or recommend cooperation with any      |
  |                                                                       |
20|state board having charge of the administration of public schools      |
  |                                                                       |
21|unless otherwise provided by law;                                      |
  |                                                                       |
22|    10.  Be and is hereby designated as the "State Educational         |
  |                                                                       |
23|Agency" referred to in Public Law 396 of the 79th Congress of the      |
  |                                                                       |
24|United States, which law states that said act may be cited as the      |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 16
___________________________________________________________________________

 1|"National School Lunch Act", and said State Board of Education is      |
  |                                                                       |
 2|hereby authorized and directed to accept the terms and provisions of   |
  |                                                                       |
 3|said act and to enter into such agreements, not in conflict with the   |
  |                                                                       |
 4|Constitution of Oklahoma or the Constitution and Statutes of the       |
  |                                                                       |
 5|United States, as may be necessary or appropriate to secure for the    |
  |                                                                       |
 6|State of Oklahoma the benefits of the school lunch program             |
  |                                                                       |
 7|established and referred to in said act;                               |
  |                                                                       |
 8|    11.  Have authority to secure and administer the benefits of the   |
  |                                                                       |
 9|National School Lunch Act, Public Law 396 of the 79th Congress of      |
  |                                                                       |
10|the United States, in the State of Oklahoma and is hereby authorized   |
  |                                                                       |
11|to employ or appoint and fix the compensation of such additional       |
  |                                                                       |
12|officers or employees and to incur such expenses as may be necessary   |
  |                                                                       |
13|for the accomplishment of the above purpose, administer the            |
  |                                                                       |
14|distribution of any state funds appropriated by the Legislature        |
  |                                                                       |
15|required as federal matching to reimburse on children's meals;         |
  |                                                                       |
16|    12.  Accept and provide for the administration of any land,        |
  |                                                                       |
17|money, buildings, gifts, donation or other things of value which may   |
  |                                                                       |
18|be offered or bequeathed to the schools under the supervision or       |
  |                                                                       |
19|control of said Board;                                                 |
  |                                                                       |
20|    13.  Have authority to require persons having administrative       |
  |                                                                       |
21|control of all school districts in Oklahoma to make such regular and   |
  |                                                                       |
22|special reports regarding the activities of the schools in said        |
  |                                                                       |
23|districts as the Board may deem needful for the proper exercise of     |
  |                                                                       |
24|its duties and functions.  Such authority shall include the right of   |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 17
___________________________________________________________________________

 1|the State Board of Education to withhold all state funds under its     |
  |                                                                       |
 2|control, to withhold official recognition, including accrediting,      |
  |                                                                       |
 3|until such required reports have been filed and accepted in the        |
  |                                                                       |
 4|office of said Board and to revoke the certificates of persons         |
  |                                                                       |
 5|failing or refusing to make such reports;                              |
  |                                                                       |
 6|    14.  Have general supervision of the school lunch program.  The    |
  |                                                                       |
 7|State Board of Education may sponsor workshops for personnel and       |
  |                                                                       |
 8|participants in the school lunch program and may develop, print and    |
  |                                                                       |
 9|distribute free of charge or sell any materials, books and bulletins   |
  |                                                                       |
10|to be used in such school lunch programs.  There is hereby created     |
  |                                                                       |
11|in the State Treasury a revolving fund for the Board, to be            |
  |                                                                       |
12|designated the School Lunch Workshop Revolving Fund.  The fund shall   |
  |                                                                       |
13|consist of all fees derived from or on behalf of any participant in    |
  |                                                                       |
14|any such workshop sponsored by the State Board of Education, or from   |
  |                                                                       |
15|the sale of any materials, books and bulletins, and such funds shall   |
  |                                                                       |
16|be disbursed for expenses of such workshops and for developing,        |
  |                                                                       |
17|printing and distributing of such materials, books and bulletins       |
  |                                                                       |
18|relating to the school lunch program.  The fund shall be               |
  |                                                                       |
19|administered in accordance with Section 155 of Title 62 of the         |
  |                                                                       |
20|Oklahoma Statutes;                                                     |
  |                                                                       |
21|    15.  Prescribe all forms for school district and county officers   |
  |                                                                       |
22|to report to the State Board of Education where required.  The State   |
  |                                                                       |
23|Board of Education shall also prescribe a list of appropriation        |
  |                                                                       |
24|accounts by which the funds of school districts shall be budgeted,     |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 18
___________________________________________________________________________

 1|accounted for and expended; and it shall be the duty of the State      |
  |                                                                       |
 2|Auditor and Inspector in prescribing all budgeting, accounting and     |
  |                                                                       |
 3|reporting forms for school funds to conform to such lists;             |
  |                                                                       |
 4|    16.  Provide for the establishment of a uniform system of pupil    |
  |                                                                       |
 5|and personnel accounting, records and reports;                         |
  |                                                                       |
 6|    17.  Have authority to provide for the health and safety of        |
  |                                                                       |
 7|school children and school personnel while under the jurisdiction of   |
  |                                                                       |
 8|school authorities;                                                    |
  |                                                                       |
 9|    18.  Provide for the supervision of the transportation of          |
  |                                                                       |
10|pupils;                                                                |
  |                                                                       |
11|    19.  Have authority, upon request of the local school board, to    |
  |                                                                       |
12|act in behalf of the public schools of the state in the purchase of    |
  |                                                                       |
13|transportation equipment;                                              |
  |                                                                       |
14|    20.  Have authority and is hereby required to perform all duties   |
  |                                                                       |
15|necessary to the administration of the public school system in         |
  |                                                                       |
16|Oklahoma as specified in the Oklahoma School Code; and, in addition    |
  |                                                                       |
17|thereto, those duties not specifically mentioned herein if not         |
  |                                                                       |
18|delegated by law to any other agency or official;                      |
  |                                                                       |
19|    21.  Administer the State Public Common School Building            |
  |                                                                       |
20|Equalization Fund established by Section 32 of Article X of the        |
  |                                                                       |
21|Oklahoma Constitution.  Any monies as may be appropriated or           |
  |                                                                       |
22|designated by the Legislature, other than ad valorem taxes, any        |
  |                                                                       |
23|other funds identified by the State Department of Education, which     |
  |                                                                       |
24|may include, but not be limited to, grants-in-aid from the federal     |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 19
___________________________________________________________________________

 1|government for building purposes, the proceeds of all property that    |
  |                                                                       |
 2|shall fall to the state by escheat, penalties for unlawful holding     |
  |                                                                       |
 3|of real estate by corporations, and capital gains on assets of the     |
  |                                                                       |
 4|permanent school funds, shall be deposited in the State Public         |
  |                                                                       |
 5|Common School Building Equalization Fund.  The fund shall be used to   |
  |                                                                       |
 6|aid school districts and charter schools in acquiring buildings,       |
  |                                                                       |
 7|subject to the limitations fixed by Section 32 of Article X of the     |
  |                                                                       |
 8|Oklahoma Constitution.  It is hereby declared that the term            |
  |                                                                       |
 9|"acquiring buildings" as used in Section 32 of Article X of the        |
  |                                                                       |
10|Oklahoma Constitution shall mean acquiring or improving school         |
  |                                                                       |
11|sites, constructing, repairing, remodeling or equipping buildings,     |
  |                                                                       |
12|or acquiring school furniture, fixtures, or equipment.  It is hereby   |
  |                                                                       |
13|declared that the term "school districts" as used in Section 32 of     |
  |                                                                       |
14|Article X of the Oklahoma Constitution shall mean school districts     |
  |                                                                       |
15|and eligible charter schools as defined in subsection B of this        |
  |                                                                       |
16|section.  The State Board of Education shall disburse redbud school    |
  |                                                                       |
17|grants annually from the State Public Common School Building           |
  |                                                                       |
18|Equalization Fund to public schools and eligible charter schools       |
  |                                                                       |
19|pursuant to subsection B of this section.  The Board shall             |
  |                                                                       |
20|promulgate rules for the implementation of disbursing redbud school    |
  |                                                                       |
21|grants pursuant to this section.  The State Board of Education shall   |
  |                                                                       |
22|prescribe rules for making grants of aid from, and for otherwise       |
  |                                                                       |
23|administering, the fund pursuant to the provisions of this             |
  |                                                                       |
24|paragraph, and may employ and fix the duties and compensation of       |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 20
___________________________________________________________________________

 1|technicians, aides, clerks, stenographers, attorneys and other         |
  |                                                                       |
 2|personnel deemed necessary to carry out the provisions of this         |
  |                                                                       |
 3|paragraph.  The cost of administering the fund shall be paid from      |
  |                                                                       |
 4|monies appropriated to the State Board of Education for the            |
  |                                                                       |
 5|operation of the State Department of Education.  From monies           |
  |                                                                       |
 6|apportioned to the fund, the State Department of Education may         |
  |                                                                       |
 7|reserve not more than one-half of one percent (1/2 of 1%) for          |
  |                                                                       |
 8|purposes of administering the fund;                                    |
  |                                                                       |
 9|    22.  Recognize that the Director of the Oklahoma Department of     |
  |                                                                       |
10|Corrections shall be the administrative authority for the schools      |
  |                                                                       |
11|which are maintained in the state reformatories and shall appoint      |
  |                                                                       |
12|the principals and teachers in such schools.  Provided, that rules     |
  |                                                                       |
13|of the State Board of Education for the classification, inspection     |
  |                                                                       |
14|and accreditation of public schools shall be applicable to such        |
  |                                                                       |
15|schools; and such schools shall comply with standards set by the       |
  |                                                                       |
16|State Board of Education; and                                          |
  |                                                                       |
17|    23.  Have authority to administer a revolving fund which is        |
  |                                                                       |
18|hereby created in the State Treasury, to be designated the             |
  |                                                                       |
19|Statistical Services Revolving Fund.  The fund shall consist of all    |
  |                                                                       |
20|monies received from the various school districts of the state, the    |
  |                                                                       |
21|United States Government, and other sources for the purpose of         |
  |                                                                       |
22|furnishing or financing statistical services and for any other         |
  |                                                                       |
23|purpose as designated by the Legislature.  The State Board of          |
  |                                                                       |
24|Education is hereby authorized to enter into agreements with school    |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 21
___________________________________________________________________________

 1|districts, municipalities, the United States Government, foundations   |
  |                                                                       |
 2|and other agencies or individuals for services, programs or research   |
  |                                                                       |
 3|projects.  The Statistical Services Revolving Fund shall be            |
  |                                                                       |
 4|administered in accordance with Section 155 of Title 62 of the         |
  |                                                                       |
 5|Oklahoma Statutes.                                                     |
  |                                                                       |
 6|    B.  1.  The redbud school grants shall be determined by the        |
  |                                                                       |
 7|State Department of Education as follows:                              |
  |                                                                       |
 8|         a.    divide the county four-mill levy revenue by four to     |
  |                                                                       |
 9|              determine the nonchargeable county four-mill revenue     |
  |                                                                       |
10|              for each school district,                                |
  |                                                                       |
11|         b.    determine the amount of new revenue generated by the    |
  |                                                                       |
12|              five-mill building fund levy as authorized by Section    |
  |                                                                       |
13|              10 of Article X of the Oklahoma Constitution for each    |
  |                                                                       |
14|              school district as reported in the Oklahoma Cost         |
  |                                                                       |
15|              Accounting System for the preceding fiscal year,         |
  |                                                                       |
16|         c.    add the amounts calculated in subparagraphs a and b     |
  |                                                                       |
17|              of this paragraph to determine the nonchargeable         |
  |                                                                       |
18|              millage for each school district,                        |
  |                                                                       |
19|         d.    add the nonchargeable millage in each district          |
  |                                                                       |
20|              statewide as calculated in subparagraph c of this        |
  |                                                                       |
21|              paragraph and divide the total by the average daily      |
  |                                                                       |
22|              membership in public schools statewide based on the      |
  |                                                                       |
23|              preceding school year's average daily membership,        |
  |                                                                       |
24|              according to the provisions of Section 18-107 of this    |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 22
___________________________________________________________________________

 1|              title.  This amount is the statewide nonchargeable       |
  |                                                                       |
 2|              millage per student, known as the baseline local         |
  |                                                                       |
 3|              funding per student,                                     |
  |                                                                       |
 4|         e.    all eligible charter schools shall be included in       |
  |                                                                       |
 5|              these calculations as unique school districts,           |
  |                                                                       |
 6|              separate from the school district that may sponsor the   |
  |                                                                       |
 7|              eligible charter school, and the total number of         |
  |                                                                       |
 8|              districts shall be used to determine the statewide       |
  |                                                                       |
 9|              average baseline local funding per student,              |
  |                                                                       |
10|         f.    for each school district or eligible charter school     |
  |                                                                       |
11|              which is below the baseline local funding per student,   |
  |                                                                       |
12|              the Department shall subtract the baseline local         |
  |                                                                       |
13|              funding per student from the average nonchargeable       |
  |                                                                       |
14|              millage per student of the school district or eligible   |
  |                                                                       |
15|              charter school to determine the nonchargeable millage    |
  |                                                                       |
16|              per student shortfall for each district, and             |
  |                                                                       |
17|         g.    the nonchargeable millage per student shortfall for a   |
  |                                                                       |
18|              school district or eligible charter school shall be      |
  |                                                                       |
19|              multiplied by the average daily membership of the        |
  |                                                                       |
20|              preceding school year of the eligible school district    |
  |                                                                       |
21|              or eligible charter school.  This amount shall be the    |
  |                                                                       |
22|              redbud school grant amount for the school district or    |
  |                                                                       |
23|              eligible charter school.                                 |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 23
___________________________________________________________________________

 1|    2.  For fiscal year 2022, monies for the redbud school grants      |
  |                                                                       |
 2|shall be expended from the funds apportioned pursuant to Section 2     |
  |                                                                       |
 3|426 of this act Title 63 of the Oklahoma Statutes.  For fiscal year    |
  |                                                                       |
 4|2023 and each subsequent fiscal year, monies for the redbud school     |
  |                                                                       |
 5|grants shall be appropriated apportioned pursuant to Section 2 426     |
  |                                                                       |
 6|of this act, not to exceed three-fourths (3/4) of the tax collected    |
  |                                                                       |
 7|in the preceding fiscal year pursuant to Section 426 of Title 63 of    |
  |                                                                       |
 8|the Oklahoma Statutes as determined by the Oklahoma Tax Commission.    |
  |                                                                       |
 9|For fiscal year 2023 and each subsequent fiscal year, if such          |
  |                                                                       |
10|appropriated funds are insufficient to fund the redbud school          |
  |                                                                       |
11|grants, then an additional apportionment of funds shall be made from   |
  |                                                                       |
12|sales tax collections as provided by subsection D of Section 3 of      |
  |                                                                       |
13|this act Title 63 of the Oklahoma Statutes.  If both funds are the     |
  |                                                                       |
14|apportionment is insufficient, the Department shall promulgate rules   |
  |                                                                       |
15|to permit a decrease to the baseline local funding per student to      |
  |                                                                       |
16|the highest amount allowed with the funding available.                 |
  |                                                                       |
17|    3.  As used in this section, "eligible charter school" shall       |
  |                                                                       |
18|mean a charter school which is sponsored pursuant to the provisions    |
  |                                                                       |
19|of the Oklahoma Charter School Act.  Provided, however, "eligible      |
  |                                                                       |
20|charter school" shall not include a charter school sponsored by the    |
  |                                                                       |
21|Statewide Virtual Charter School Board but shall only include those    |
  |                                                                       |
22|which provide in-person or blended instruction, as provided by         |
  |                                                                       |
23|Section 1-111 of this title, to not less than two-thirds (2/3) of      |
  |                                                                       |
24|students as the primary means of instructional service delivery.       |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 24
___________________________________________________________________________

 1|    4.  The Department shall develop a program to acknowledge the      |
  |                                                                       |
 2|redbud school grant recipients and shall include elected members of    |
  |                                                                       |
 3|the Oklahoma House of Representatives and Oklahoma State Senate who    |
  |                                                                       |
 4|represent the school districts and eligible charter schools.           |
  |                                                                       |
 5|    5.  The Department shall create a dedicated page on its website    |
  |                                                                       |
 6|listing annual redbud school grant recipients, amount awarded to       |
  |                                                                       |
 7|each recipient and other pertinent information about the Redbud        |
  |                                                                       |
 8|School Funding Act.                                                    |
  |                                                                       |
 9|    6.  The Department shall provide the Chair of the House            |
  |                                                                       |
10|Appropriations and Budget Committee and the Chair of the Senate        |
  |                                                                       |
11|Appropriations Committee no later than February 1 of each year with    |
  |                                                                       |
12|an estimate of the upcoming year's redbud school grant allocation as   |
  |                                                                       |
13|prescribed by this section.                                            |
  |                                                                       |
14|    SECTION 5.     REPEALER     Section 1 of Enrolled House Bill No.   |
  |                                                                       |
15|3530 of the 2nd Session of the 58th Oklahoma Legislature, is hereby    |
  |                                                                       |
16|repealed.                                                              |
  |                                                                       |
17|    SECTION 6.  This act shall become effective July 1, 2022.          |
  |                                                                       |
18|    SECTION 7.  It being immediately necessary for the preservation    |
  |                                                                       |
19|of the public peace, health or safety, an emergency is hereby          |
  |                                                                       |
20|declared to exist, by reason whereof this act shall take effect and    |
  |                                                                       |
21|be in full force from and after its passage and approval.              |
  |                                                                       |
22|                                                                       |
  |                                                                       |
23|    58-2-11518     EK     05/10/22                                     |
  |                                                                       |
24|                                                                       |
  |                                                                       |
arsid14224768 House Action _________________  Date _________       Page 25
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