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 1494 By: Paxton
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6 AS INTRODUCED
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7 An Act relating to school district employees;
7 amending 70 O.S. 2021, Section 26-104, as amended by
8 Section 2, Chapter 245, O.S.L. 2024 (70 O.S. Supp.
8 2025, Section 26-104), which relates to the flexible
9 benefit allowance for school district employees;
9 requiring appropriation of adequate funding to the
10 State Board of Education for flexible benefit
10 allowances for employees of certain school districts;
11 requiring appropriation of adequate funding to the
11 Board for certain flexible benefit allowances for
12 employees of certain school districts; clarifying
12 disbursement of certain funds; updating statutory
13 language; updating statutory references; providing an
13 effective date; and 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 26-104, as
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18 amended by Section 2, Chapter 245, O.S.L. 2024 (70 O.S. Supp. 2025,
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19 Section 26-104), is amended to read as follows:
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20 Section 26-104. A. 1. Each fiscal year, the Legislature shall
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21 appropriate adequate funding to the State Board of Education and the
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22 State Board of Career and Technology Education for the purpose of
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23 providing a flexible benefit allowance to technology center school
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24 district employees pursuant to this act section.
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Req. No. 2227 Page 1
1 2. Each fiscal year, the Legislature shall appropriate adequate
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2 funding to the State Board of Education for the purpose of providing
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3 full funding to support a flexible benefit allowance to school
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4 district employees employed by school districts that provide in-
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5 person classroom instruction for a minimum of one hundred seventy
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6 (170) days or the equivalent number of hours, not including in-
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7 person classroom instruction time used for professional development
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8 or parent-teacher conferences.
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9 3. Each fiscal year, the Legislature shall appropriate adequate
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10 funding to the State Board of Education for the purpose of providing
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11 a flexible benefit allowance that shall not be less than the Plan
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12 Year 2026 benefit allowance amount to school district employees
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13 employed by school districts that provide in-person classroom
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14 instruction for fewer than one hundred seventy (170) days or the
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15 equivalent number of hours, not including in-person classroom
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16 instruction time used for professional development or parent-teacher
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17 conferences.
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18 4. Unless the Legislature appropriates adequate funding
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19 specifically for the purpose of providing a flexible benefit
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20 allowance to school district employees, the Oklahoma State Board of
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21 Education shall allocate from the funds appropriated to the Oklahoma
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22 State Board of Education for the support of public school activities
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23 an amount to fully fund the flexible benefit allowance, which shall
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24 occur first prior to allocating the funds for any other purpose.
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Req. No. 2227 Page 2
1 The amount appropriated for funding and disbursed to school
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2 districts shall be calculated by multiplying the number of eligible
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3 school district employees employed by school districts which are
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4 participating in the health insurance plan offered by the Oklahoma
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5 Employees Insurance and Benefits Board or are self-insured as
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6 counted in February of each year by the amount of the flexible
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7 benefit allowance credited to the eligible school employees as
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8 established in Section 26-105 of this title.
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9 Each 5. The State Board of Education and the State Board of
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10 Career and Technology Education shall disburse the total amount
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11 appropriated for funding the flexible benefit allowance to school
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12 districts during the fiscal year. From the total amount
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13 appropriated, each Board shall disburse the appropriate amounts,
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14 based on the number of eligible school district employees employed
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15 by that each school district or technology center school district,
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16 to each school district.
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17 B. Every school district shall establish or make available to
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18 school district employees a cafeteria plan pursuant to 26 U.S.C.,
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19 Section 125 of the United States Code. The plan shall offer, as a
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20 benefit, major medical health care plan coverage.
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21 C. The flexible benefit allowance amount established pursuant
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22 to Section 26-105 of this title shall be credited to each eligible
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23 school district employee. School district employees shall elect
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24 whether to use the flexible benefit allowance to pay for coverage in
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Req. No. 2227 Page 3
1 the health insurance plan offered by the Oklahoma Employees
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2 Insurance and Benefits Board or the self-insured plan offered by the
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3 school district and may receive the excess flexible benefit
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4 allowance as taxable compensation as provided in Section 26-105 of
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5 this title.
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6 D. The administrator of the cafeteria plan shall maintain a
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7 separate account for each participating school district employee.
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8 School districts shall forward the school district employee flexible
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9 benefit allowance amounts to the administrator for elected purchases
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10 of cafeteria plan benefits.
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11 E. Expenses included in an employee's salary adjustment
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12 agreement pursuant to the cafeteria plan shall be limited to
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13 expenses for:
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14 1. Premiums for any health insurance, health maintenance
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15 organization, life insurance, long term disability insurance, dental
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16 insurance, or high deductible health benefit plan offered to
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17 employees and their dependents; and
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18 2. All other eligible benefit programs offered under 26 U.S.C.,
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19 Section 125 of the United States Code.
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20 F. The flexible benefit allowance amount established in Section
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21 26-105 of this title shall not be included as income in computation
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22 of state retirement contributions and benefits or as part of the
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23 Minimum Salary Schedule minimum salary schedule for teachers
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24 established in Section 18-114.12 18-114.15 of this title. School
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1 districts shall not consider the flexible benefit allowance amount
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2 as income for eligible support employees and thereby shall not
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3 reduce the salary of an eligible support employee.
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4 SECTION 2. This act shall become effective July 1, 2026.
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5 SECTION 3. It being immediately necessary for the preservation
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6 of the public peace, health, or safety, an emergency is hereby
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7 declared to exist, by reason whereof this act shall take effect and
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8 be in full force from and after its passage and approval.
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10 60-2-2227 EB 1/9/2026 1:21:05 PM
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Req. No. 2227 Page 5Every fact on this page links to its source, starting with the official bill record.