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1 STATE OF OKLAHOMA
1
2 2nd Session of the 60th Legislature (2026)
2
3 SENATE BILL 1193 By: Pugh
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4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to school funding; amending 70 O.S.
7 2021, Section 18-200.1, as last amended by Section 2,
8 Chapter 285, O.S.L. 2025 (70 O.S. Supp. 2025, Section
8 18-200.1), which relates to State Aid; removing
9 limitations on school district general fund
9 carryover, method for calculating carryover amount,
10 and penalties for exceeding limitations; updating
10 statutory language; repealing 70 O.S. 2021, Section
11 18-200.1, as amended by Section 1, Chapter 488,
11 O.S.L. 2021, which relates to State Aid; providing an
12 effective date; and declaring an emergency.
12
13
13
14
14
15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. AMENDATORY 70 O.S. 2021, Section 18-200.1, as
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17 last amended by Section 2, Chapter 285, O.S.L. 2025 (70 O.S. Supp.
17
18 2025, Section 18-200.1), is amended to read as follows:
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19 Section 18-200.1. A. Beginning with the 2022-2023 school year,
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20 and each school year thereafter, each school district shall have its
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21 initial allocation of State Aid calculated based on the state
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22 dedicated revenues actually collected during the preceding fiscal
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23 year, the adjusted assessed valuation of the preceding year, and the
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24 weighted average daily membership for the school district of the
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Req. No. 2409 Page 1
1 preceding school year. Each school district shall submit the
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2 following data based on the first nine (9) weeks, to be used in the
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3 calculation of the average daily membership of the school district:
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4 1. Student enrollment by grade level;
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5 2. Pupil category counts; and
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6 3. Transportation supplement data.
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7 On or before December 30, the State Department of Education
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8 shall determine each school district's current year allocation
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9 pursuant to subsection D of this section. The State Department of
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10 Education shall complete an audit, using procedures established by
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11 the Department, of the student enrollment by grade level data, pupil
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12 category counts, and transportation supplement data to be used in
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13 the State Aid Formula pursuant to subsection D of this section by
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14 December 1 and by January 15 shall notify each school district of
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15 the district's final State Aid allocation for the current school
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16 year. The January payment of State Aid and each subsequent payment
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17 for the remainder of the school year shall be based on the final
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18 State Aid allocation as calculated in subsection D of this section.
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19 Except for reductions made due to the assessment of penalties by the
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20 State Department of Education according to law, the January payment
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21 of State Aid and each subsequent payment for the remainder of the
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22 school year shall not decrease by an amount more than the amount
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23 that the current chargeable revenue increases for that district.
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24
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Req. No. 2409 Page 2
1 B. The State Department of Education shall retain not less than
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2 one and one-half percent (1 1/2%) of the total funds appropriated
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3 for financial support of schools, to be used to make midyear
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4 adjustments in State Aid and which shall be reflected in the final
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5 allocations. If the amount of appropriated funds, including the one
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6 and one-half percent (1 1/2%) retained, remaining after January 1 of
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7 each year is not sufficient to fully fund the final allocations, the
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8 Department shall recalculate each school district's remaining
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9 allocation pursuant to subsection D of this section using the
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10 reduced amount of appropriated funds.
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11 C. On and after July 1, 1997, the amount of State Aid each
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12 district shall receive shall be the sum of the Foundation Aid, the
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13 Salary Incentive Aid, and the Transportation Supplement, as adjusted
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14 pursuant to the provisions of Section 18-112.2 of this title;
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15 provided, no district having per pupil revenue in excess of three
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16 hundred percent (300%) of the average per pupil revenue of all
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17 districts shall receive any State Aid or Supplement in State Aid.
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18 The July calculation of per pupil revenue shall be determined by
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19 dividing the district's second preceding year's total weighted
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20 average daily membership (ADM) into the district's second preceding
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21 year's total revenues excluding federal revenue, insurance loss
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22 payments, reimbursements, recovery of overpayments and refunds,
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23 unused reserves, prior expenditures recovered, prior year surpluses,
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24 and less the amount of any transfer fees paid in that year.
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Req. No. 2409 Page 3
1 The December calculation of per pupil revenue shall be
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2 determined by dividing the district's preceding year's total
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3 weighted average daily membership (ADM) into the district's
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4 preceding year's total revenues excluding federal revenue, insurance
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5 loss payments, reimbursements, recovery of overpayments and refunds,
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6 unused reserves, prior expenditures recovered, prior year surpluses,
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7 and less the amount of any transfer fees paid in that year.
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8 D. For the 1997-98 school year, and each school year
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9 thereafter, Foundation Aid, the Transportation Supplement, and
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10 Salary Incentive Aid shall be calculated as follows:
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11 1. Foundation Aid shall be determined by subtracting the amount
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12 of the Foundation Program Income from the cost of the Foundation
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13 Program and adding to this difference the Transportation Supplement.
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14 a. The Foundation Program shall be a district's higher
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15 weighted average daily membership based on the first
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16 nine (9) weeks of the current school year or the
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17 preceding school year of a school district, as
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18 determined by the provisions of subsection A of
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19 Section 18-201.1 of this title and paragraphs 1, 2, 3,
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20 and 4 of subsection B of Section 18-201.1 of this
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21 title, multiplied by the Base Foundation Support
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22 Level.
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23 b. The Foundation Program Income shall be the sum of the
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24 following:
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Req. No. 2409 Page 4
1 (1) the adjusted assessed valuation of the current
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2 school year of the school district, minus the
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3 previous year protested ad valorem tax revenues
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4 held as prescribed in Section 2884 of Title 68 of
4
5 the Oklahoma Statutes, multiplied by the mills
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6 levied pursuant to subsection (c) of Section 9 of
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7 Article X of the Oklahoma Constitution, if
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8 applicable, as adjusted in subsection (c) of
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9 Section 8A of Article X of the Oklahoma
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10 Constitution. For purposes of this subsection,
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11 the "adjusted assessed valuation of the current
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12 school year" shall be the adjusted assessed
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13 valuation on which tax revenues are collected
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14 during the current school year,
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15 (2) seventy-five percent (75%) of the amount received
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16 by the school district from the proceeds of the
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17 county levy during the preceding fiscal year, as
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18 levied pursuant to subsection (b) of Section 9 of
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19 Article X of the Oklahoma Constitution,
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20 (3) motor vehicle collections,
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21 (4) gross production tax,
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22 (5) state apportionment, and
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23 (6) R.E.A. tax.
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24
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Req. No. 2409 Page 5
1 The items listed in divisions (3), (4), (5), and (6) of
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2 this subparagraph shall consist of the amounts actually
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3 collected from such sources during the preceding fiscal
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4 year calculated on a per capita basis on the unit provided
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5 for by law for the distribution of each such revenue.
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6 2. The Transportation Supplement shall be equal to the average
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7 daily haul times the per capita allowance times the appropriate
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8 transportation factor.
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9 a. The average daily haul shall be the number of children
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10 in a district who are legally transported and who live
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11 one and one-half (1 1/2) miles or more from school.
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12 b. The per capita allowance shall be determined using the
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13 following chart:
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14 PER CAPITA PER CAPITA
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15 DENSITY FIGURE ALLOWANCE DENSITY FIGURE ALLOWANCE
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16 .3000 - .3083 $167.00 .9334 - .9599 $99.00
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17 .3084 - .3249 $165.00 .9600 - .9866 $97.00
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18 .3250 - .3416 $163.00 .9867 - 1.1071 $95.00
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19 .3417 - .3583 $161.00 1.1072 - 1.3214 $92.00
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20 .3584 - .3749 $158.00 1.3215 - 1.5357 $90.00
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21 .3750 - .3916 $156.00 1.5358 - 1.7499 $88.00
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22 .3917 - .4083 $154.00 1.7500 - 1.9642 $86.00
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23 .4084 - .4249 $152.00 1.9643 - 2.1785 $84.00
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24 .4250 - .4416 $150.00 2.1786 - 2.3928 $81.00
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Req. No. 2409 Page 6
1 .4417 - .4583 $147.00 2.3929 - 2.6249 $79.00
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2 .4584 - .4749 $145.00 2.6250 - 2.8749 $77.00
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3 .4750 - .4916 $143.00 2.8750 - 3.1249 $75.00
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4 .4917 - .5083 $141.00 3.1250 - 3.3749 $73.00
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5 .5084 - .5249 $139.00 3.3750 - 3.6666 $70.00
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6 .5250 - .5416 $136.00 3.6667 - 3.9999 $68.00
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7 .5417 - .5583 $134.00 4.0000 - 4.3333 $66.00
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8 .5584 - .5749 $132.00 4.3334 - 4.6666 $64.00
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9 .5750 - .5916 $130.00 4.6667 - 4.9999 $62.00
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10 .5917 - .6133 $128.00 5.0000 - 5.5000 $59.00
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11 .6134 - .6399 $125.00 5.5001 - 6.0000 $57.00
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12 .6400 - .6666 $123.00 6.0001 - 6.5000 $55.00
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13 .6667 - .6933 $121.00 6.5001 - 7.0000 $53.00
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14 .6934 - .7199 $119.00 7.0001 - 7.3333 $51.00
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15 .7200 - .7466 $117.00 7.3334 - 7.6667 $48.00
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16 .7467 - .7733 $114.00 7.6668 - 8.0000 $46.00
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17 .7734 - .7999 $112.00 8.0001 - 8.3333 $44.00
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18 .8000 - .8266 $110.00 8.3334 - 8.6667 $42.00
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19 .8267 - .8533 $108.00 8.6668 - 9.0000 $40.00
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20 .8534 - .8799 $106.00 9.0001 - 9.3333 $37.00
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21 .8800 - .9066 $103.00 9.3334 - 9.6667 $35.00
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22 .9067 - .9333 $101.00 9.6668 or more $33.00
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23 c. The formula transportation factor shall be 2.0.
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24 3. Salary Incentive Aid shall be determined as follows:
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Req. No. 2409 Page 7
1 a. Multiply the Incentive Aid guarantee by the district's
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2 higher weighted average daily membership based on the
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3 first nine (9) weeks of the current school year or the
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4 preceding school year of a school district, as
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5 determined by the provisions of subsection A of
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6 Section 18-201.1 of this title and paragraphs 1, 2, 3,
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7 and 4 of subsection B of Section 18-201.1 of this
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8 title.
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9 b. Divide the district's adjusted assessed valuation of
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10 the current school year minus the previous year's
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11 protested ad valorem tax revenues held as prescribed
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12 in Section 2884 of Title 68 of the Oklahoma Statutes,
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13 by one thousand (1,000) and subtract the quotient from
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14 the product of subparagraph a of this paragraph. The
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15 remainder shall not be less than zero (0).
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16 c. Multiply the number of mills levied for general fund
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17 purposes above the fifteen (15) mills required to
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18 support Foundation Aid pursuant to division (1) of
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19 subparagraph b of paragraph 1 of this subsection, not
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20 including the county four-mill levy, by the remainder
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21 of subparagraph b of this paragraph. The product
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22 shall be the Salary Incentive Aid of the district.
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23 E. By June 30, 1998, the State Department of Education shall
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24 develop and the Department and all school districts shall have
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Req. No. 2409 Page 8
1 implemented a student identification system which is consistent with
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2 the provisions of subsections D and E of Section 3111 of Title 74 of
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3 the Oklahoma Statutes. The student identification system shall be
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4 used specifically for the purpose of reporting enrollment data by
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5 school sites and by school districts, the administration of the
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6 Oklahoma School Testing Program Act, the collection of appropriate
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7 and necessary data pursuant to the Oklahoma Educational Indicators
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8 Program, determining student enrollment, establishing a student
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9 mobility rate, allocation of the State Aid Formula, and midyear
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10 adjustments in funding for student growth. This enrollment data
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11 shall be submitted to the State Department of Education in
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12 accordance with rules promulgated by the State Board of Education.
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13 Funding for the development, implementation, personnel training, and
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14 maintenance of the student identification system shall be set out in
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15 a separate line item in the allocation section of the appropriation
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16 bill for the State Board of Education for each year.
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17 F. 1. In the event that ad valorem taxes of a school district
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18 are determined to be uncollectible because of bankruptcy, clerical
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19 error, or a successful tax protest, and the amount of such taxes
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20 deemed uncollectible exceeds Fifty Thousand Dollars ($50,000.00) or
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21 an amount greater than twenty-five percent (25%) of ad valorem taxes
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22 per tax year, or the valuation of a district is lowered by order of
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23 the State Board of Equalization, the school district's State Aid,
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24 for the school year that such ad valorem taxes are calculated in the
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Req. No. 2409 Page 9
1 State Aid Formula, shall be determined by subtracting the net
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2 assessed valuation of the property upon which taxes were deemed
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3 uncollectible from the assessed valuation of the school district and
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4 the state. Upon request of the local board of education, it shall
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5 be the duty of the county assessor to certify to the Director of
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6 Finance of the State Department of Education the net assessed
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7 valuation of the property upon which taxes were determined
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8 uncollectible.
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9 2. In the event that the amount of funds a school district
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10 receives for reimbursement from the Ad Valorem Reimbursement Fund is
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11 less than the amount of funds claimed for reimbursement by the
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12 school district due to insufficiency of funds as provided in Section
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13 193 of Title 62 of the Oklahoma Statutes, then the school district's
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14 assessed valuation for the school year that such ad valorem
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15 reimbursement is calculated in the State Aid Formula shall be
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16 adjusted accordingly.
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17 G. 1. Notwithstanding the provisions of Section 18-112.2 of
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18 this title, a school district shall have its State Aid reduced by an
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19 amount equal to the amount of carryover in the general fund of the
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20 district as of June 30 of the preceding fiscal year, that is in
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21 excess of the following standards for two (2) consecutive years:
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22 Total Amount of Amount of
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23 General Fund Collections, General Fund
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24 Excluding Previous Year Balance
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Req. No. 2409 Page 10
1 Cash Surplus as of June 30 Allowable
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2 Less than $1,000,000 48%
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3 $1,000,000 - $2,999,999 42%
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4 $3,000,000 - $3,999,999 36%
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5 $4,000,000 - $4,999,999 30%
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6 $5,000,000 - $5,999,999 24%
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7 $6,000,000 - $7,999,999 22%
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8 $8,000,000 - $9,999,999 19%
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9 $10,000,000 or more 17%
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10 2. By February 1 the State Department of Education shall send
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11 by certified mail, with return receipt requested, to each school
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12 district superintendent, auditor, and regional accreditation officer
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13 a notice of and calculation sheet reflecting the general fund
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14 balance penalty to be assessed against that school district.
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15 Calculation of the general fund balance penalty shall not include
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16 federal revenue. Within thirty (30) days of receipt of this written
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17 notice the school district shall submit to the Department a written
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18 reply either accepting or protesting the penalty to be assessed
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19 against the district. If protesting, the school district shall
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20 submit with its reply the reasons for rejecting the calculations and
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21 documentation supporting those reasons. The Department shall review
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22 all school district penalty protest documentation and notify each
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23 district by March 15 of its finding and the final penalty to be
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Req. No. 2409 Page 11
1 assessed to each district. General fund balance penalties shall be
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2 assessed to all school districts by April 1.
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3 3. Any school district which receives proceeds from a tax
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4 settlement or a Federal Emergency Management Agency settlement
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5 during the last two (2) months of the preceding fiscal year shall be
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6 exempt from the penalties assessed in this subsection, if the
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7 penalty would occur solely as a result of receiving funds from the
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8 tax settlement.
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9 4. Any school district which receives an increase in State Aid
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10 because of a change in Foundation and/or Salary Incentive Aid
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11 factors during the last two (2) months of the preceding fiscal year
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12 shall be exempt from the penalties assessed in this subsection, if
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13 the penalty would occur solely as a result of receiving funds from
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14 the increase in State Aid.
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15 5. If a school district does not receive Foundation and/or
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16 Salary Incentive Aid during the preceding fiscal year, the State
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17 Board of Education may waive the penalty assessed in this subsection
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18 if the penalty would result in a loss of more than forty percent
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19 (40%) of the remaining State Aid to be allocated to the school
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20 district between April 1 and the remainder of the school year and if
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21 the Board determines the penalty will cause the school district not
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22 to meet remaining financial obligations.
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23 6. Any school district which receives gross production revenue
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24 apportionment during the 2002-2003 school year or in any subsequent
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Req. No. 2409 Page 12
1 school year that is greater than the gross production revenue
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2 apportionment of the preceding school year shall be exempt from the
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3 penalty assessed in this subsection, if the penalty would occur
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4 solely as a result of the gross production revenue apportionment, as
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5 determined by the State Board of Education.
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6 7. Beginning July 1, 2003, school districts that participate in
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7 consolidation or annexation pursuant to the provisions of the
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8 Oklahoma School Consolidation and Annexation Act shall be exempt
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9 from the penalty assessed in this subsection for the school year in
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10 which the consolidation or annexation occurs and for the next three
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11 (3) fiscal years.
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12 8. Any school district which receives proceeds from a sales tax
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13 levied by a municipality pursuant to Section 22-159 of Title 11 of
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14 the Oklahoma Statutes or proceeds from a sales tax levied by a
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15 county pursuant to Section 1370 of Title 68 of the Oklahoma Statutes
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16 during the 2003-2004 school year or the 2004-2005 school year shall
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17 be exempt from the penalties assessed in this subsection, if the
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18 penalty would occur solely as a result of receiving funds from the
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19 sales tax levy.
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20 9. Any school district which has an amount of carryover in the
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21 general fund of the district in excess of the limits established in
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22 paragraph 1 of this subsection during the fiscal years beginning
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23 July 1, 2020, July 1, 2021, July 1, 2022, July 1, 2023, and July 1,
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Req. No. 2409 Page 13
1 2024, shall not be assessed a general fund balance penalty as
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2 provided for in this subsection.
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3 10. For purposes of calculating the general fund balance
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4 penalty, the terms "carryover" and "general fund balance" shall not
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5 include federal revenue.
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6 H. In order to provide startup funds for the implementation of
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7 early childhood programs, State Aid may be advanced to school
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8 districts that initially start early childhood instruction at a
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9 school site. School districts that desire such advanced funding
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10 shall make application to the State Department of Education no later
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11 than September 15 of each year and advanced funding shall be awarded
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12 to the approved districts no later than October 30. The advanced
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13 funding shall not exceed the per pupil amount of State Aid as
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14 calculated in subsection D of this section per anticipated Head
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15 Start eligible student. The total amount of advanced funding shall
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16 be proportionately reduced from the monthly payments of the
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17 district's State Aid payments during the last six (6) months of the
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18 same fiscal year.
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19 I. H. 1. Beginning July 1, 1996, the Oklahoma Tax Commission,
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20 notwithstanding any provision of law to the contrary, shall report
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21 monthly to the State Department of Education the monthly
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22 apportionment of the following information:
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23 a. the assessed valuation of property,
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24 b. motor vehicle collections,
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Req. No. 2409 Page 14
1 c. R.E.A. tax collected, and
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2 d. gross productions tax collected.
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3 2. Beginning July 1, 1997, the State Auditor and Inspector's
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4 Office of the State Auditor and Inspector, notwithstanding any
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5 provision of law to the contrary, shall report monthly to the State
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6 Department of Education the monthly apportionment of the proceeds of
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7 the county levy.
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8 3. Beginning July 1, 1996, the Commissioners of the Land
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9 Office, notwithstanding any provision of law to the contrary, shall
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10 report monthly to the State Department of Education the monthly
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11 apportionment of state apportionment.
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12 4. Beginning July 1, 1997, the county treasurers' offices,
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13 notwithstanding any provision of law to the contrary, shall report
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14 monthly to the State Department of Education the ad valorem tax
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15 protest amounts for each county.
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16 5. The information reported by the Tax Commission, the State
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17 Auditor and Inspector's Office of the State Auditor and Inspector,
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18 the county treasurers' offices, and the Commissioners of the Land
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19 Office, pursuant to this subsection shall be reported by a school
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20 district on forms developed by the State Department of Education.
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21 SECTION 2. REPEALER 70 O.S. 2021, Section 18-200.1, as
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22 amended by Section 1, Chapter 488, O.S.L. 2021, is hereby repealed.
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23 SECTION 3. This act shall become effective July 1, 2026.
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Req. No. 2409 Page 15
1 SECTION 4. It being immediately necessary for the preservation
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2 of the public peace, health, or safety, an emergency is hereby
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3 declared to exist, by reason whereof this act shall take effect and
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4 be in full force from and after its passage and approval.
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Req. No. 2409 Page 16Every fact on this page links to its source, starting with the official bill record.