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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 705 By: Pugh
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6 AS INTRODUCED
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7 An Act relating to charter schools; amending 70 O.S.
7 2021, Section 3-144, as amended by Section 13,
8 Chapter 323, O.S.L. 2023 (70 O.S. Supp. 2024, Section
8 3-144), which relates to the Charter Schools
9 Incentive Fund; renaming fund; adding source of fund;
9 adding purpose of fund; amending 70 O.S. 2021,
10 Section 3-142, as last amended by Section 1, Chapter
10 396, O.S.L. 2024 (70 O.S. Supp. 2024, Section 3-142),
11 which relates to state funding for charter schools;
11 modifying revolving fund to which certain payments
12 are to be made; directing the Statewide Charter
12 School Board to transfer certain remaining balance
13 upon certain date to certain fund; updating statutory
13 references; providing an effective date; and
14 declaring an emergency.
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17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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18 SECTION 1. AMENDATORY 70 O.S. 2021, Section 3-144, as
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19 amended by Section 13, Chapter 323, O.S.L. 2023 (70 O.S. Supp. 2024,
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20 Section 3-144), is amended to read as follows:
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21 Section 3-144. A. There is hereby created in the State
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22 Treasury a fund to be designated the "Charter Schools Incentive and
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23 Closure Reimbursement Fund". The fund shall be a continuing fund,
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24 not subject to fiscal year limitations, and shall consist of all
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1 monies appropriated by the Legislature, gifts, grants, devises, and
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2 donations from any public or private source, and all monies received
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3 by the Statewide Charter School Board from charter schools pursuant
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4 to subsection G of Section 3-142 of this title. The Statewide
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5 Charter School Board shall administer the fund for the purpose of
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6 providing financial support to charter school and virtual charter
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7 school applicants and, charter schools and virtual charter schools
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8 for start-up costs and, costs associated with renovating or
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9 remodeling existing buildings and structures for use by a charter
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10 school, and for paying expenditures incurred due to closure of a
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11 charter school. The Statewide Charter School Board is authorized to
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12 allocate funds on a per-pupil basis for purposes of providing
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13 matching funds for the federal State Charter School Facilities
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14 Incentive Grants Program created pursuant to the No Child Left
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15 Behind Act of 2001, 20 USCA U.S.C., Section 7221d.
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16 B. The Statewide Charter School Board shall adopt rules to
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17 implement the provisions of this section including application and
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18 notification requirements.
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19 SECTION 2. AMENDATORY 70 O.S. 2021, Section 3-142, as
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20 last amended by Section 1, Chapter 396, O.S.L. 2024 (70 O.S. Supp.
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21 2024, Section 3-142), is amended to read as follows:
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22 Section 3-142. A. The student membership and attendance of a
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23 charter school shall be considered separate from the student
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24 membership and attendance of the sponsor for the purpose of
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1 calculating enrollment and funding including weighted average daily
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2 membership pursuant to Section 18-201.1 of this title and State Aid
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3 pursuant to Section 18-200.1 of this title. A charter school shall
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4 receive the State Aid allocation, federal funds to which it is
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5 eligible and qualifies for, and any other state-appropriated revenue
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6 generated by its students for the applicable year. Not more than
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7 three percent (3%) of the State Aid allocation may be charged by the
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8 sponsor as a fee for administrative services rendered if the sponsor
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9 is a school district, a comprehensive or regional institution of
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10 higher education, a two-year college, a private institution of
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11 higher learning accredited pursuant to Section 4103 of this title,
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12 or a federally recognized Indian tribe pursuant to Section 3-132 of
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13 this title. The Statewide Charter School Board shall not charge any
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14 charter school or virtual charter school a fee for administrative or
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15 other services. The State Department of Education shall determine
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16 the policy and procedure for making payments to a charter school or
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17 virtual charter school. The fee for administrative services as
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18 authorized in this subsection shall only be assessed on the State
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19 Aid allocation amount and shall not be assessed on any other
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20 appropriated amounts. A sponsor of a charter school shall not
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21 charge any additional State Aid allocation or charge the charter
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22 school any additional fee above the amounts allowed by this
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23 subsection unless the additional fees are for additional services
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24 rendered. The charter school sponsor shall provide to the State
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1 Department of Education financial records documenting any state
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2 funds charged by the sponsor for administrative services rendered
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3 for the previous year.
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4 B. The fee for administrative services authorized by subsection
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5 A of this section shall be used by the sponsor to provide oversight
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6 and services to the charter schools it sponsors. The State
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7 Department of Education shall develop data codes for the Oklahoma
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8 Cost Accounting System which shall be used to comply with the
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9 administrative services reporting required by this section. A
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10 charter school sponsor shall publish a detailed report on its
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11 website and present the report in a public meeting of the charter
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12 school governing board and the charter school sponsor governing
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13 board. The report shall provide sponsor performance and stewardship
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14 including compliance with all applicable laws, regulations, and
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15 terms of the charter contract and listing expenses related to
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16 oversight and services provided by the sponsor to the charter
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17 schools it sponsors.
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18 C. For the purpose of calculating weighted average daily
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19 membership pursuant to Section 18-201.1 of this title and State Aid
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20 pursuant to Section 18-200.1 of this title, the weighted average
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21 daily membership for the first year of operation of a charter school
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22 or full-time statewide virtual charter school shall be determined
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23 initially by multiplying the actual enrollment of students as of
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24 August 1 by 1.333. The charter school or virtual charter school
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1 shall receive revenue equal to that which would be generated by the
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2 estimated weighted average daily membership calculated pursuant to
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3 this subsection. At midyear, the allocation for the charter school
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4 or virtual charter school shall be adjusted using the first quarter
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5 weighted average daily membership for the charter school or virtual
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6 charter school calculated pursuant to subsection A of this section.
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7 For each subsequent school year, weighted average daily membership
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8 shall be calculated as provided for in Section 18-201.1 of this
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9 title, and State Aid shall be calculated as provided for in Section
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10 18-200.1 of this title.
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11 D. Except as explicitly authorized by state law, a charter
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12 school or virtual charter school shall not be eligible to receive
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13 state-dedicated, local, or county revenue; provided, a charter
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14 school or virtual charter school may be eligible to receive any
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15 other aid, grants, or revenues allowed to other schools. A charter
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16 school or virtual charter school shall be considered a local
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17 education agency for purposes of funding.
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18 E. Any unexpended funds received by a charter school or virtual
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19 charter school may be reserved and used for future purposes. The
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20 governing board of a charter school or virtual charter school shall
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21 not levy taxes or issue bonds. If otherwise allowed by law, the
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22 governing board of a charter school or virtual charter school may
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23 enter into private contracts for the purposes of borrowing money
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24 from lenders. If the governing board of the charter school or
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1 virtual charter school borrows money, the charter school or virtual
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2 charter school shall be solely responsible for repaying the debt,
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3 and the state or the sponsor shall not in any way be responsible or
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4 obligated to repay the debt.
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5 F. Any charter school or virtual charter school which chooses
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6 to lease property shall be eligible to receive current government
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7 lease rates.
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8 G. Except as otherwise provided in this subsection, each
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9 charter school shall pay to the Charter School Schools Incentive and
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10 Closure Reimbursement Revolving Fund created in subsection H Section
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11 3-144 of this section title an amount equal to Five Dollars ($5.00)
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12 per student based on average daily membership, as defined by
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13 paragraph 2 of Section 18-107 of this title, during the first nine
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14 (9) weeks of the school year. Each charter school shall complete
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15 the payment every school year within thirty (30) days after the
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16 first nine (9) weeks of the school year. If the Charter School
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17 Schools Incentive and Closure Reimbursement Revolving Fund has a
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18 balance of One Million Dollars ($1,000,000.00) or more on July 1, no
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19 payment shall be required the following school year.
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20 H. There is hereby created in the State Treasury a revolving
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21 fund for Upon the effective date of this act, the Statewide Charter
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22 School Board to be designated the "Charter School Closure
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23 Reimbursement Revolving Fund". The fund shall be a continuing fund,
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24 not subject to fiscal year limitations, and shall consist of all
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1 monies received by the Statewide Charter School Board from charter
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2 schools as provided in subsection G of this section. All monies
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3 accruing to the credit of the fund are hereby appropriated and may
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4 be budgeted and expended by the Statewide Charter School Board for
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5 the purpose of paying for expenditures incurred due to the closure
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6 of a charter school. Expenditures from the fund shall be made upon
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7 warrants issued by the State Treasurer against claims filed as
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8 prescribed by law with the Director of the Office of Management and
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9 Enterprise Services for approval and payment shall transfer all
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10 funds remaining in the balance of the Charter School Closure
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11 Reimbursement Revolving Fund to the Charter Schools Incentive and
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12 Closure Reimbursement Fund created pursuant to Section 3-144 of this
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13 title.
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14 SECTION 3. This act shall become effective July 1, 2025.
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15 SECTION 4. It being immediately necessary for the preservation
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16 of the public peace, health, or safety, an emergency is hereby
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17 declared to exist, by reason whereof this act shall take effect and
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18 be in full force from and after its passage and approval.
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Req. No. 1029 Page 7Every fact on this page links to its source, starting with the official bill record.