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Back to SB 1199
Oklahoma Legislature· SB 1199Coauthored by Representative Hays (principal House author)

An act relating to schools, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                   STATE OF OKLAHOMA

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2                  2nd Session of the 60th Legislature (2026)

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3 SENATE BILL 1199              By: Sacchieri
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6                               AS INTRODUCED

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7   An Act relating to schools; amending 70 O.S. 2021,

7   Section 5-124, which relates to prohibitions on

8   certain school district board of education contracts;

8   making certain prohibitions applicable to technology

9   center school district boards of education;

9   clarifying when a board member is considered to have

10  certain interest; modifying exceptions to certain

10  contractual prohibitions; expanding certain

11  prohibitions to include immediate family members;

11  removing language regarding when certain member is

12  not considered interested; providing for

12  applicability; updating statutory language; and

13  declaring an emergency.

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16 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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17  SECTION 1.      AMENDATORY  70 O.S. 2021, Section 5-124, is

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18 amended to read as follows:
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19  Section 5-124. A. Except as otherwise provided in this

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20 section, no board of education of any school district or technology
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21 center school district in this state shall make any contract with
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22 any of its members or with any company, individual, or business
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23 concern in which any of its members shall be directly or indirectly
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24 interested. All contracts made in violation of this section shall
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    Req. No. 2259                                              Page 1
1 be wholly void. A For the purposes of this section, a member of a
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2 board of education shall be considered to be interested in any
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3 contract made with any company, individual, or any business concern
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4 if the member of the board of education or any member of the
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5 immediate family of the member is employed by or owns any
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6 substantial an interest of five percent (5%) or more in same the
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7 company, individual, or business concern.
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8   B. For purposes of this section, the following shall not be

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9 considered the making of a contract:
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10  1. Any contract with a qualified nonprofit Internal Revenue

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11 Code 501(c)(3) organization, except for contracts paying salaries or
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12 expenses or except a contract involving the counseling or
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13 instruction of students or staff;
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14  2. Monthly billings submitted to any school district or

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15 technology center school district for public utility companies,
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16 electric cooperatives, or telephone companies, whose services are
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17 regulated by the Oklahoma Corporation Commission, or billings of the
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18 utility companies, electric cooperatives, or telephone companies
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19 pertaining to installations or changes in service, where tariffs for
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20 the charges or billings by the companies are on file with the
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21 Oklahoma Corporation Commission; and
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22  3. The depositing of any funds in a bank or other depository.

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23  C. 1. The governing board of education of a technology center

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24 school district may enter into a contract for the technology center
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    Req. No. 2259                                             Page 2
1 school district to provide training for a company, individual, or
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2 business concern by which a member of the board or a member of his
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3 or her immediate family is employed or in which the board member or
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4 a member of his or her immediate family has an interest of five
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5 percent (5%) or more. A board member shall abstain from voting on
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6 any such contract between the technology center school district
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7 board of education and the company, individual, or business concern
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8 by which the member is employed.
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9   2. A board of education of a school district or technology

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10 center school district may enter into a contract with a company,
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11 individual, or business concern in by which a board member or a
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12 member's spouse member of his or her immediate family is employed by
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13 or in which the board member or any member of his or her immediate
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14 family has a substantial an interest of five percent (5%) or more if
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15 the company, individual, or business concern is the only supplier
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16 having a place of business located within the school district or
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17 technology center school district or within ten (10) miles of the
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18 needed services or materials. The board member shall abstain from
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19 voting on any such contract between the company, individual, or
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20 business concern in which that member has a substantial interest,
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21 and the minutes of the board meeting at which the contract is
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22 approved shall state that the contract is being made because of the
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23 lack of another supplier with a place of business located within the
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    Req. No. 2259                   Page 3
1 school district or technology center school district or within ten
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2 (10) miles of the needed services or materials.
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3   3. A board of education of a school district or technology

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4 center school district which has entered into a lease-purchase
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5 agreement, prior to the time a board member which who is employed by
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6 or has an immediate family member who is employed by or has a
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7 substantial an interest of five percent (5%) or more or has an
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8 immediate family member who has an interest of five percent (5%) or
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9 more in the company, individual, or business concern became a member
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10 of the board of education, may, after the member becomes a board
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11 member, continue to exercise any fiscal year options in the lease-
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12 purchase agreement for renewal of the lease-purchase for the balance
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13 of the contract term. The affected board member shall abstain from
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14 voting on such fiscal year renewal of the continuation of the lease-
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15 purchase agreement.
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16  4. A board of education of a school district or technology

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17 center school district may enter into a contract with a company,
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18 individual, or business concern in which a board member or a spouse
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19 of a member of his or her immediate family is employed and neither
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20 the board member nor any member of his or her immediate family has
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21 no substantial an interest of five percent (5%) or more if the
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22 school district or technology center school district does not
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23 include any part of a municipality with a population greater than
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24 two thousand five hundred (2,500) according to the latest Federal
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    Req. No. 2259                                  Page 4
1 Decennial Census and the company, individual, or business concern is
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2 located in the corporate limits of a municipality which is in the
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3 boundaries of the school district or technology center school
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4 district.
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5   D. A board member shall not be considered to be directly or

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6 indirectly interested in any contract with a company, individual, or
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7 business concern that employs such board member or the spouse of the
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8 board member if the board member or the spouse of the board member
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9 has an interest of five percent (5%) or less in the company,
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10 individual, or business concern The provisions of this section shall
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11 apply to contracts entered into on or after the effective date of
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12 this act.
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13  SECTION 2. It being immediately necessary for the preservation

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14 of the public peace, health, or safety, an emergency is hereby
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15 declared to exist, by reason whereof this act shall take effect and
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16 be in full force from and after its passage and approval.
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18  60-2-2259      EB  11/21/2025 9:15:44 AM

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    Req. No. 2259                                             Page 5
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