Bill Text For HB2755 - Engrossed

 1|ENGROSSED HOUSE                                                        |
  |BILL NO. 2755                        By: Echols of the House           |
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  |                                         and                           |
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  |                                         David of the Senate           |
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 7|       [ schools - requiring school districts to give                  |
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 8|         charter schools the opportunity to submit capital             |
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 9|         projects for bond proposals - modifying charter               |
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10|         school authority to issue bonds - effective date ]            |
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13|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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14|    SECTION 1.     AMENDATORY     70 O.S. 2011, Section 15-101, is     |
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15|amended to read as follows:                                            |
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16|    Section 15-101.  A.  Whenever it shall become necessary for the    |
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17|board of education of any school district to raise sufficient funds    |
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18|for the purchase of a school site or sites, or to erect or purchase    |
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19|and equip a suitable school building or buildings, either or both,     |
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20|or for the purpose of making repairs to an existing school building    |
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21|or buildings, or for the purchase of school furniture and fixtures,    |
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22|or for making improvements to any school site or sites, either or      |
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23|both, it shall be lawful for such board of education to borrow money   |
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24|for which it is hereby authorized and empowered to issue bonds         |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 1
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 1|bearing a rate of interest not exceeding seven percent (7%) per        |
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 2|annum, payable semiannually, at such place as may be shown on the      |
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 3|face of such bonds, which bonds shall be payable serially as           |
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 4|otherwise provided by law in not more than twenty-five (25) years      |
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 5|from date; and the board of education is hereby authorized and         |
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 6|empowered to sell such bonds at not less than their par value;         |
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 7|provided, before any bonds shall be issued, the board of education     |
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 8|shall cause an election to be held in such district as herein          |
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 9|provided; provided, further, bonds may be voted in one issue and at    |
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10|the same election for any or all of the purposes hereinbefore          |
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11|enumerated.                                                            |
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12|    B.  Prior to causing an election on a bond proposal to be held,    |
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13|any school district that sponsors a charter school pursuant to         |
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14|paragraph 1 of subsection A of Section 3-132 of this title shall       |
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15|give its sponsored charter schools the opportunity to submit capital   |
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16|projects beneficial to the charter school for inclusion in the bond    |
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17|proposal.  If a sponsored charter school submits capital projects      |
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18|for inclusion in the bond proposal, the board of education of the      |
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19|school district and the charter school shall collaborate to ensure     |
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20|that the value of the charter school's capital projects in the bond    |
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21|proposal is at least proportional, as a percentage of the value of     |
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22|the entire bond proposal, to the percentage of total students that     |
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23|are enrolled in the charter school.                                    |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 2
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 1|    C.  Any property purchased as the result of a capital project      |
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 2|submitted by a sponsored charter school shall be owned by the school   |
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 3|district that issued the bonds.  Except as otherwise provided in       |
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 4|this subsection, the charter school submitting the capital project     |
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 5|shall maintain possession and control of such property until           |
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 6|termination of or failure to renew the charter school contract as      |
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 7|provided in Section 3-137 of this title or the charter school fails    |
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 8|to continue operations.  Provided that, if a charter continues         |
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 9|operation within the physical boundaries of the original school        |
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10|district sponsor under a new charter sponsored by an entity            |
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11|authorized pursuant to Section 3-132 of this title, the charter        |
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12|school may maintain possession and control of the property for use     |
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13|in the operation of the charter school until termination of or         |
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14|failure to renew the subsequent charter school contract or the         |
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15|charter school fails to continue operations.  Upon termination of or   |
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16|failure to renew the subsequent charter school contract or failure     |
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17|to continue operations, possession and control of all property         |
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18|purchased with bond proceeds shall be assumed by the school district   |
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19|that owns the property.                                                |
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20|    D.  For purposes of this section:                                  |
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21|    1.  "Capital project" shall mean purchasing a school site or       |
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22|sites, erecting or purchasing and equipping a suitable school          |
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23|building or buildings, making repairs to an existing school building   |
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24|or buildings, purchasing school furniture and fixtures, making         |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 3
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 1|improvements to any school site or sites, or purchasing school         |
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 2|equipment including such equipment as enumerated in Sections 15-106    |
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 3|and 15-106.1 of this title; and                                        |
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 4|    2.  "Total students" shall mean the sum of the number of           |
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 5|students enrolled in traditional schools within the school district    |
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 6|plus the number of students enrolled in charter schools sponsored by   |
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 7|the school district.                                                   |
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 8|    SECTION 2.     AMENDATORY     70 O.S. 2011, Section 3-136, as      |
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 9|amended by Section 1, Chapter 277, O.S.L. 2014 (70 O.S. Supp. 2020,    |
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10|Section 3-136), is amended to read as follows:                         |
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11|    Section 3-136.  A.  A charter school shall adopt a charter which   |
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12|will ensure compliance with the following:                             |
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13|    1.  A charter school shall comply with all federal regulations     |
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14|and state and local rules and statutes relating to health, safety,     |
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15|civil rights and insurance.  By January 1, 2000, the State             |
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16|Department of Education shall prepare a list of relevant rules and     |
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17|statutes which a charter school must comply with as required by this   |
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18|paragraph and shall annually provide an update to the list;            |
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19|    2.  A charter school shall be nonsectarian in its programs,        |
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20|admission policies, employment practices, and all other operations.    |
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21|A sponsor may not authorize a charter school or program that is        |
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22|affiliated with a nonpublic sectarian school or religious              |
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23|institution;                                                           |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 4
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 1|    3.  The charter school may provide a comprehensive program of      |
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 2|instruction for a prekindergarten program, a kindergarten program or   |
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 3|any grade between grades one and twelve.  Instruction may be           |
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 4|provided to all persons between the ages of four (4) and twenty-one    |
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 5|(21) years.  A charter school may offer a curriculum which             |
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 6|emphasizes a specific learning philosophy or style or certain          |
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 7|subject areas such as mathematics, science, fine arts, performance     |
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 8|arts, or foreign language.  The charter of a charter school which      |
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 9|offers grades nine through twelve shall specifically address whether   |
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10|the charter school will comply with the graduation requirements        |
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11|established in Section 11-103.6 of this title.  No charter school      |
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12|shall be chartered for the purpose of offering a curriculum for deaf   |
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13|or blind students that is the same or similar to the curriculum        |
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14|being provided by or for educating deaf or blind students that are     |
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15|being served by the Oklahoma School for the Blind or the Oklahoma      |
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16|School for the Deaf;                                                   |
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17|    4.  A charter school shall participate in the testing as           |
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18|required by the Oklahoma School Testing Program Act and the            |
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19|reporting of test results as is required of a school district.  A      |
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20|charter school shall also provide any necessary data to the Office     |
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21|of Accountability;                                                     |
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22|    5.  Except as provided for in the Oklahoma Charter Schools Act     |
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23|and its charter, a charter school shall be exempt from all statutes    |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 5
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 1|and rules relating to schools, boards of education, and school         |
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 2|districts;                                                             |
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 3|    6.  A charter school, to the extent possible, shall be subject     |
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 4|to the same reporting requirements, financial audits, audit            |
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 5|procedures, and audit requirements as a school district.  The State    |
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 6|Department of Education or State Auditor and Inspector may conduct     |
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 7|financial, program, or compliance audits.  A charter school shall      |
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 8|use the Oklahoma Cost Accounting System to report financial            |
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 9|transactions to the sponsoring school district;                        |
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10|    7.  A charter school shall comply with all federal and state       |
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11|laws relating to the education of children with disabilities in the    |
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12|same manner as a school district;                                      |
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13|    8.  A charter school shall provide for a governing body for the    |
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14|school which shall be responsible for the policies and operational     |
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15|decisions of the charter school;                                       |
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16|    9.  A charter school shall not be used as a method of generating   |
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17|revenue for students who are being home schooled and are not being     |
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18|educated at an organized charter school site;                          |
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19|    10.  A charter school may not charge tuition or fees;              |
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20|    11.  A charter school shall provide instruction each year for at   |
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21|least the number of days required in Section 1-109 of this title;      |
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22|    12.  A charter school shall comply with the student suspension     |
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23|requirements provided for in Section 24-101.3 of this title;           |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 6
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 1|    13.  A charter school shall be considered a school district for    |
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 2|purposes of tort liability under The Governmental Tort Claims Act;     |
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 3|    14.  Employees of a charter school may participate as members of   |
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 4|the Teachers' Retirement System of Oklahoma in accordance with         |
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 5|applicable statutes and rules if otherwise allowed pursuant to law;    |
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 6|    15.  A charter school may participate in all health and related    |
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 7|insurance programs available to the employees of the sponsor of the    |
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 8|charter school;                                                        |
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 9|    16.  A charter school shall comply with the Oklahoma Open          |
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10|Meeting Act and the Oklahoma Open Records Act;                         |
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11|    17.  The governing body of a charter school shall be subject to    |
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12|the same conflict of interest requirements as a member of a local      |
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13|school board; and                                                      |
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14|    18.  No later than September 1 each year, the governing board of   |
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15|each charter school formed pursuant to the Oklahoma Charter Schools    |
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16|Act shall prepare a statement of actual income and expenditures for    |
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17|the charter school for the fiscal year that ended on the preceding     |
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18|June 30, in a manner compliant with Section 5-135 of this title.       |
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19|The statement of expenditures shall include functional categories as   |
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20|defined in rules adopted by the State Board of Education to            |
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21|implement the Oklahoma Cost Accounting System pursuant to Section      |
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22|5-145 of this title.  Charter schools shall not be permitted to        |
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23|submit estimates of expenditures or prorated amounts to fulfill the    |
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24|requirements of this paragraph.                                        |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 7
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 1|    B.  The charter of a charter school shall include a description    |
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 2|of the personnel policies, personnel qualifications, and method of     |
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 3|school governance, and the specific role and duties of the sponsor     |
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 4|of the charter school.                                                 |
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 5|    C.  The charter of a charter school may be amended at the          |
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 6|request of the governing body of the charter school and upon the       |
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 7|approval of the sponsor.                                               |
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 8|    D.  A charter school may enter into contracts and sue and be       |
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 9|sued.                                                                  |
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10|    E.  The governing body of a charter school may not levy taxes or   |
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11|issue bonds; provided, however, a charter school sponsored by the      |
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12|board of education of a school district may submit capital projects    |
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13|for inclusion in the school district's bond proposal as provided in    |
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14|Section 15-101 of this title.                                          |
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15|    F.  The charter of a charter school shall include a provision      |
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16|specifying the method or methods to be employed for disposing of       |
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17|real and personal property acquired by the charter school upon         |
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18|expiration or termination of the charter or failure of the charter     |
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19|school to continue operations.  Except as otherwise provided, any      |
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20|real or personal property purchased with state or local funds shall    |
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21|be retained by the sponsoring school district.  If a charter school    |
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22|that was previously sponsored by the board of education of a school    |
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23|district continues operation within the school district under a new    |
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24|charter sponsored by an entity authorized pursuant to Section 3-132    |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 8
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 1|of this title, the charter school may retain any personal property     |
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 2|purchased with state or local funds for use in the operation of the    |
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 3|charter school until termination of the new charter or failure of      |
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 4|the charter school to continue operations.                             |
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 5|    SECTION 3.     AMENDATORY     70 O.S. 2011, Section 3-142, as      |
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 6|last amended by Section 1, Chapter 122, O.S.L. 2020 (70 O.S. Supp.     |
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 7|2020, Section 3-142), is amended to read as follows:                   |
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 8|    Section 3-142.  A.  For purposes of funding, a charter school      |
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 9|sponsored by a board of education of a school district shall be        |
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10|considered a site within the school district in which the charter      |
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11|school is located.  The student membership of the charter school       |
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12|shall be considered separate from the student membership of the        |
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13|district in which the charter school is located for the purpose of     |
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14|calculating weighted average daily membership pursuant to Section      |
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15|18-201.1 of this title and State Aid pursuant to Section 18-200.1 of   |
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16|this title.  For charter schools sponsored by a board of education     |
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17|of a school district, the sum of the separate calculations for the     |
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18|charter school and the school district shall be used to determine      |
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19|the total State Aid allocation for the district in which the charter   |
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20|school is located.  A charter school shall receive from the            |
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21|sponsoring school district, the State Aid allocation and any other     |
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22|state-appropriated revenue generated by its students for the           |
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23|applicable year, less up to three percent (3%) of the State Aid        |
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24|allocation, which may be retained by the school district as a fee      |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 9
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 1|for administrative services rendered.  For charter schools sponsored   |
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 2|by the board of education of a technology center school district, a    |
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 3|higher education institution, the State Board of Education, or a       |
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 4|federally recognized Indian tribe and for statewide virtual charter    |
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 5|schools sponsored by the Statewide Virtual Charter School Board, the   |
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 6|State Aid allocation for the charter school shall be distributed by    |
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 7|the State Board of Education and not more than three percent (3%) of   |
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 8|the State Aid allocation may be charged by the sponsor as a fee for    |
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 9|administrative services rendered.  The State Board of Education        |
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10|shall determine the policy and procedure for making payments to a      |
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11|charter school.  The fee for administrative services as authorized     |
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12|in this subsection shall only be assessed on the State Aid             |
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13|allocation amount and shall not be assessed on any other               |
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14|appropriated amounts.  A sponsor of a charter school shall not         |
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15|retain any additional State Aid allocation or charge the charter       |
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16|school any additional fee above the amounts allowed by this            |
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17|subsection unless the additional fees are for additional services      |
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18|rendered.  The charter school sponsor shall provide to the State       |
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19|Department of Education financial records documenting any state        |
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20|funds retained by the sponsor for administrative services rendered     |
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21|for the previous year.                                                 |
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22|    B.  1.  The weighted average daily membership for the first year   |
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23|of operation of a charter school shall be determined initially by      |
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24|multiplying the actual enrollment of students as of August 1 by        |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 10
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 1|1.333.  The charter school shall receive revenue equal to that which   |
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 2|would be generated by the estimated weighted average daily             |
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 3|membership calculated pursuant to this paragraph.  At midyear, the     |
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 4|allocation for the charter school shall be adjusted using the first    |
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 5|quarter weighted average daily membership for the charter school       |
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 6|calculated pursuant to subsection A of this section.                   |
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 7|    2.  For the purpose of calculating weighted average daily          |
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 8|membership pursuant to Section 18-201.1 of this title and State Aid    |
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 9|pursuant to Section 18-200.1 of this title, the weighted average       |
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10|daily membership for the first year of operation and each year         |
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11|thereafter of a full-time virtual charter school shall be determined   |
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12|by multiplying the actual enrollment of students as of August 1 by     |
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13|1.333.  The full-time virtual charter school shall receive revenue     |
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14|equal to that which would be generated by the estimated weighted       |
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15|average daily membership calculated pursuant to this paragraph.  At    |
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16|midyear, the allocation for the full-time virtual charter school       |
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17|shall be adjusted using the first quarter weighted average daily       |
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18|membership for the virtual charter school calculated pursuant to       |
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19|subsection A of this section.                                          |
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20|    C.  A charter school shall be eligible to receive any other aid,   |
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21|grants or revenues allowed to other schools.  A charter school         |
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22|sponsored by the board of education of a technology center school      |
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23|district, a higher education institution, the State Board of           |
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24|Education, or a federally recognized Indian tribe shall be             |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 11
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 1|considered a local education agency for purposes of funding.  A        |
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 2|charter school sponsored by a board of education of a school           |
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 3|district shall be considered a local education agency for purposes     |
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 4|of federal funding.                                                    |
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 5|    D.  A charter school, in addition to the money received from the   |
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 6|state, may receive money from any other source.  Any unexpended        |
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 7|funds may be reserved and used for future purposes.  The governing     |
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 8|body of a charter school shall not levy taxes or issue bonds;          |
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 9|provided, however, a charter school sponsored by the board of          |
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10|education of a school district may submit capital projects for         |
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11|inclusion in the school district's bond proposal as provided in        |
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12|Section 15-101 of this title.  If otherwise allowed by law, the        |
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13|governing body of a charter school may enter into private contracts    |
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14|for the purposes of borrowing money from lenders.  If the governing    |
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15|body of the charter school borrows money, the charter school shall     |
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16|be solely responsible for repaying the debt, and the state or the      |
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17|sponsor shall not in any way be responsible or obligated to repay      |
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18|the debt.                                                              |
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19|    E.  Any charter school which chooses to lease property shall be    |
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20|eligible to receive current government lease rates.                    |
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21|    F.  Except as otherwise provided in this subsection, each          |
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22|charter school shall pay to the Charter School Closure Reimbursement   |
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23|Revolving Fund created in subsection G of this section an amount       |
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24|equal to Five Dollars ($5.00) per student based on average daily       |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 12
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 1|membership, as defined by paragraph 2 of Section 18-107 of this        |
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 2|title, during the first nine (9) weeks of the school year.  Each       |
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 3|charter school shall complete the payment every school year within     |
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 4|thirty (30) days after the first nine (9) weeks of the school year.    |
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 5|If the Charter School Closure Reimbursement Revolving Fund has a       |
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 6|balance of One Million Dollars ($1,000,000.00) or more on July 1, no   |
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 7|payment shall be required the following school year.                   |
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 8|    G.  There is hereby created in the State Treasury a revolving      |
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 9|fund for the State Department of Education to be designated the        |
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10|"Charter School Closure Reimbursement Revolving Fund".  The fund       |
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11|shall be a continuing fund, not subject to fiscal year limitations,    |
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12|and shall consist of all monies received by the State Department of    |
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13|Education from charter schools as provided in subsection F of this     |
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14|section.  All monies accruing to the credit of said fund are hereby    |
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15|appropriated and may be budgeted and expended by the State             |
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16|Department of Education for the purpose of reimbursing charter         |
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17|school sponsors for costs incurred due to the closure of a charter     |
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18|school.  Expenditures from said fund shall be made upon warrants       |
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19|issued by the State Treasurer against claims filed as prescribed by    |
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20|law with the Director of the Office of Management and Enterprise       |
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21|Services for approval and payment.  The State Department of            |
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22|Education may promulgate rules regarding sponsor eligibility for       |
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23|reimbursement.                                                         |
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24|    SECTION 4.  This act shall become effective November 1, 2021.      |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 13
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 1|    Passed the House of Representatives the 9th day of March, 2021.    |
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  |    Passed the Senate the ___ day of __________, 2021.                 |
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arsid15074749 ENGR. H. B. NO. 2755                                 Page 14
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