Bill Text For HB1395 - Senate Floor Version

 1|                        SENATE FLOOR VERSION                           |
  |                            April 2, 2019                              |
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 3|ENGROSSED HOUSE                                                        |
  |BILL NO. 1395                        By: Dills, Vancuren, Lawson,      |
 4|                                         McEntire, Bush, Conley,       |
  |                                         Fincher, Provenzano, Burns,   |
 5|                                         Hardin (David), Loring,       |
  |                                         Caldwell (Trey), Phillips,    |
 6|                                         May, Johns, Brewer,           |
  |                                         Nichols, Boatman,             |
 7|                                         Rosecrants, Cornwell,         |
  |                                         Luttrell, West (Tammy),       |
 8|                                         Waldron, Ford, Manger,        |
  |                                         Ranson, Kerbs, McDugle,       |
 9|                                         Sims, Fetgatter, Nollan,      |
  |                                         Pae, Virgin, Hasenbeck,       |
10|                                         Baker, Fugate, Stark,         |
  |                                         Blancett, Humphrey,           |
11|                                         Sterling, Munson, Boles,      |
  |                                         Kiger, Hilbert, Sneed, Mize   |
12|                                         and Davis of the House        |
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13|                                         and                           |
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14|                                         Pemberton and Sharp of the    |
  |                                                              Senate   |
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18|       An Act relating to school financial disclosures;                |
  |       amending Section 5, Chapter 367, O.S.L. 2012, as last           |
19|       amended by Section 1, Chapter 293, O.S.L. 2015 (70              |
  |       O.S. Supp. 2018, Section 3-145.3), which relates to             |
20|       powers and duties of the Statewide Virtual Charter              |
  |       School Board; subjecting virtual charter school to              |
21|       same financial reporting requirements as school                 |
  |       districts; authorizing financial, program or                    |
22|       compliance audits; requiring virtual charter school             |
  |       to use the Oklahoma Cost Accounting System; requiring           |
23|       governing body of virtual charter school be                     |
  |       responsible for policies; subjecting new members                |
24|       appointed to governing body to same conflict of                 |
  |       interest mandates as school board members; requiring            |
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 1|       compliance with instruction and continuing education            |
  |       requirements; defining term; mandating disclosure of            |
 2|       financial details when school contracts with an                 |
  |       educational management organization; specifying                 |
 3|       information to be disclosed; directing disclosure in            |
  |       a public meeting of certain ownership position;                 |
 4|       requiring teaching contract to be binding;                      |
  |       prohibiting new teaching contract during time of                |
 5|       original contract; providing an exception; suspending           |
  |       teaching certificate for remainder of contract if               |
 6|       violation is found; providing for codification; and             |
  |       declaring an emergency.                                         |
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10|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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11|    SECTION 1.     AMENDATORY     Section 5, Chapter 367, O.S.L.       |
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12|2012, as last amended by Section 1, Chapter 293, O.S.L. 2015 (70       |
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13|O.S. Supp. 2018, Section 3-145.3), is amended to read as follows:      |
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14|    Section 3-145.3  A.  Subject to the requirements of the Oklahoma   |
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15|Charter Schools Act, the Statewide Virtual Charter School Board        |
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16|shall:                                                                 |
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17|    1.  Provide oversight of the operations of statewide virtual       |
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18|charter schools in this state;                                         |
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19|    2.  Establish a procedure for accepting, approving and             |
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20|disapproving statewide virtual charter school applications and a       |
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21|process for renewal or revocation of approved charter school           |
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22|contracts which minimally meet the procedures set forth in the         |
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23|Oklahoma Charter Schools Act;                                          |
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 1|    3.  Make publicly available a list of supplemental online          |
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 2|courses which have been reviewed and certified by the Statewide        |
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 3|Virtual Charter School Board to ensure that the courses are high       |
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 4|quality options and are aligned with the subject matter standards      |
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 5|adopted by the State Board of Education pursuant to Section 11-103.6   |
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 6|of this title.  The Statewide Virtual Charter School Board shall       |
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 7|give special emphasis on listing supplemental online courses in        |
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 8|science, technology, engineering and math (STEM), foreign language     |
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 9|and advanced placement courses.  School districts shall not be         |
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10|limited to selecting supplemental online courses that have been        |
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11|reviewed and certified by the Statewide Virtual Charter School Board   |
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12|and listed as provided for in this paragraph; and                      |
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13|    4.  In conjunction with the Office of Management and Enterprise    |
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14|Services, negotiate and enter into contracts with supplemental         |
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15|online course providers to offer a state rate price to school          |
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16|districts for supplemental online courses that have been reviewed      |
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17|and certified by the Statewide Virtual Charter School Board and        |
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18|listed as provided for in paragraph 3 of this subsection.              |
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19|    B.  Each statewide virtual charter school which has been           |
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20|approved and sponsored by the Board or any virtual charter school      |
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21|for which the Board has assumed sponsorship of as provided for in      |
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22|Section 3-145.5 of this title shall be considered a statewide          |
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23|virtual charter school and the geographic boundaries of each           |
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24|statewide virtual charter school shall be the borders of the state.    |
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 1|    C.  Each statewide virtual charter school approved by the          |
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 2|Statewide Virtual Charter School Board shall be eligible to receive    |
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 3|federal funds generated by students enrolled in the charter school     |
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 4|for the applicable year.  Each statewide virtual charter school        |
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 5|shall be considered a separate local education agency for purposes     |
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 6|of reporting and accountability.                                       |
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 7|    D.  As calculated as provided for in Section 3-142 of this         |
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 8|title, a statewide virtual charter school shall receive the State      |
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 9|Aid allocation and any other state-appropriated revenue generated by   |
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10|students enrolled in the virtual charter school for the applicable     |
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11|year, less up to five percent (5%) of the State Aid allocation,        |
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12|which may be retained by the Statewide Virtual Charter School Board    |
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13|for administrative expenses and to support the mission of the Board.   |
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14| A statewide virtual charter school shall be eligible for any other    |
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15|funding any other charter school is eligible for as provided for in    |
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16|Section 3-142 of this title.  Each statewide virtual charter school    |
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17|shall be considered a separate local education agency for purposes     |
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18|of reporting and accountability.                                       |
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19|    E.  A virtual charter school shall be subject to the same          |
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20|reporting requirements, financial audits, audit procedures and audit   |
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21|requirements as a school district.  The State Department of            |
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22|Education or State Auditor and Inspector may conduct financial,        |
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23|program or compliance audits.  A virtual charter school shall use      |
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 1|the Oklahoma Cost Accounting System (OCAS) to report financial         |
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 2|transactions to the State Department of Education.                     |
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 3|    F.  A virtual charter school governing body shall be responsible   |
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 4|for the policies that govern the operational decisions of the          |
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 5|virtual charter school.  The governing body of a virtual charter       |
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 6|school shall be subject to the same conflict of interest               |
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 7|requirements as a member of a local school board including, but not    |
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 8|limited to, Sections 5-113 and 5-124 of this title.  Members           |
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 9|appointed to the governing body of a virtual charter school after      |
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10|July 1, 2019, shall be subject to the same instruction and             |
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11|continuing education requirements as a member of a local school        |
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12|board and pursuant to Section 5-110 of this title, complete twelve     |
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13|(12) hours of instruction within fifteen (15) months of appointment    |
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14|to the governing body, and pursuant to Section 5-110.1 of this         |
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15|title, attend continuing education.                                    |
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16|    G.  Students enrolled full-time in a statewide virtual charter     |
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17|school sponsored by the Statewide Virtual Charter School Board shall   |
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18|not be authorized to participate in any activities administered by     |
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19|the Oklahoma Secondary Schools Activities Association.  However, the   |
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20|students may participate in intramural activities sponsored by a       |
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21|statewide virtual charter school, an online provider for the charter   |
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22|school or any other outside organization.                              |
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23|    F. H.  The decision of the Statewide Virtual Charter School        |
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24|Board to deny, nonrenew or terminate the charter contract of a         |
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 1|statewide virtual charter school may be appealed to the State Board    |
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 2|of Education within thirty (30) days of the decision by the            |
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 3|Statewide Virtual Charter School Board.  The State Board of            |
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 4|Education shall act on the appeal within sixty (60) days of receipt    |
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 5|of the request from the statewide virtual charter school applicant.    |
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 6|The State Board of Education may reverse the decision of the           |
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 7|Statewide Virtual Charter School Board or may remand the matter back   |
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 8|to the Statewide Virtual Charter School Board for further proceeding   |
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 9|as directed.                                                           |
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10|    SECTION 2.     NEW LAW     A new section of law to be codified     |
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11|in the Oklahoma Statutes as Section 5-200 of Title 70, unless there    |
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12|is created a duplication in numbering, reads as follows:               |
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13|    A.  As used in this section, "educational management               |
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14|organization" means a for-profit or nonprofit organization that        |
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15|receives public funds to provide administration and management         |
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16|services for a charter school, statewide virtual charter school or     |
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17|traditional public school.                                             |
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18|    B.  A charter school that contracts with an educational            |
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19|management organization shall use the Oklahoma Cost Accounting         |
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20|System (OCAS) to report the total amount paid to an educational        |
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21|management organization as well as itemized expenditure information    |
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22|for the goods or services provided by the management organization as   |
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23|defined by OCAS expenditure codes, including the total compensation    |
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 1|package of the superintendent including the base salary, insurance,    |
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 2|retirement and other fringe benefits.                                  |
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 3|    C.  Any owner of an educational management organization shall be   |
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 4|required to disclose to the governing board of the school in a         |
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 5|public meeting any ownership position in any business that contracts   |
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 6|or proposes to contract with the same public school that the           |
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 7|educational management organization is managing.                       |
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 8|    D.  Whenever any person shall enter into a contract with any       |
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 9|school district or public charter school in the state to teach in      |
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10|such school district or public charter school the contract shall be    |
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11|binding on the teacher and on the board of education until the         |
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12|teacher legally has been discharged from the teaching position or      |
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13|released by the board of education from the contract.  Except as       |
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14|provided in Section 5-106A of Title 70 of the Oklahoma Statutes,       |
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15|until such teacher has been thus discharged or released, the teacher   |
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16|shall not have authority to enter into a contract with any other       |
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17|board of education in Oklahoma for the same time covered by the        |
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18|original contract.  If upon written complaint by the board of          |
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19|education in a district any teacher is reported to have failed to      |
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20|obey the terms of the contract previously made and to have entered     |
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21|into a contract with another board of education, including a public    |
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22|charter school board of education, without having been released from   |
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23|the former contract except as provided in Section 5-106A of Title 70   |
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24|of the Oklahoma Statutes, the teacher, upon being found to be          |
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 1|employed full-time for another public school, including a public       |
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 2|charter school in the state, at a hearing held before the State        |
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 3|Board of Education, shall have such teacher's certificate suspended    |
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 4|for the remainder of the term for which the contract was made.         |
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 5|    SECTION 3.  It being immediately necessary for the preservation    |
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 6|of the public peace, health or safety, an emergency is hereby          |
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 7|declared to exist, by reason whereof this act shall take effect and    |
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 8|be in full force from and after its passage and approval.              |
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 9|COMMITTEE REPORT BY: COMMITTEE ON EDUCATION                            |
  |April 2, 2019 - DO PASS                                                |
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