1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1692 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 3-142, as amended by Section 11,
8 Chapter 323, O.S.L. 2023 (70 O.S. Supp. 2023, Section
8 3-142), which relates to calculation of State Aid for
9 charter schools; removing requirement for certain
9 weighted average daily membership calculation to be
10 conducted with certain frequency; providing for
10 certain calculations in subsequent school years;
11 providing an effective date; and declaring an
11 emergency.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 70 O.S. 2021, Section 3-142, as
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16 amended by Section 11, Chapter 323, O.S.L. 2023 (70 O.S. Supp. 2023,
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17 Section 3-142), is amended to read as follows:
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18 Section 3-142. A. The student membership and attendance of a
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19 charter school shall be considered separate from the student
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20 membership and attendance of the sponsor for the purpose of
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21 calculating enrollment and funding including weighted average daily
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22 membership pursuant to Section 18-201.1 of this title and State Aid
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23 pursuant to Section 18-200.1 of this title. A charter school shall
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24 receive the State Aid allocation, federal funds to which it is
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 1 eligible and qualifies for, and any other state-appropriated revenue
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2 generated by its students for the applicable year. Not more than
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3 three percent (3%) of the State Aid allocation may be charged by the
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4 sponsor as a fee for administrative services rendered if the sponsor
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5 is a school district, a comprehensive or regional institution of
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6 higher education, a two-year college, a private institution of
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7 higher learning accredited pursuant to Section 4103 of this title,
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8 or a federally recognized Indian tribe pursuant to Section 3-132 of
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9 this title. The Statewide Charter School Board shall not charge any
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10 charter school or virtual charter school a fee for administrative or
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11 other services. The State Department of Education shall determine
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12 the policy and procedure for making payments to a charter school or
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13 virtual charter school. The fee for administrative services as
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14 authorized in this subsection shall only be assessed on the State
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15 Aid allocation amount and shall not be assessed on any other
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16 appropriated amounts. A sponsor of a charter school shall not
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17 charge any additional State Aid allocation or charge the charter
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18 school any additional fee above the amounts allowed by this
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19 subsection unless the additional fees are for additional services
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20 rendered. The charter school sponsor shall provide to the State
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21 Department of Education financial records documenting any state
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22 funds charged by the sponsor for administrative services rendered
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23 for the previous year.
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 1 B. The fee for administrative services authorized by subsection
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2 A of this section shall be used by the sponsor to provide oversight
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3 and services to the charter schools it sponsors. The State
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4 Department of Education shall develop data codes for the Oklahoma
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5 Cost Accounting System which shall be used to comply with the
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6 administrative services reporting required by this section. A
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7 charter school sponsor shall publish a detailed report on its
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8 website and present the report in a public meeting of the charter
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9 school governing board and the charter school sponsor governing
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10 board. The report shall provide sponsor performance and stewardship
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11 including compliance with all applicable laws, regulations, and
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12 terms of the charter contract and listing expenses related to
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13 oversight and services provided by the sponsor to the charter
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14 schools it sponsors.
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15 C. For the purpose of calculating weighted average daily
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16 membership pursuant to Section 18-201.1 of this title and State Aid
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17 pursuant to Section 18-200.1 of this title, the weighted average
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18 daily membership for the first year of operation and each year
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19 thereafter of a charter school or full-time statewide virtual
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20 charter school shall be determined initially by multiplying the
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21 actual enrollment of students as of August 1 by 1.333. The charter
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22 school or virtual charter school shall receive revenue equal to that
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23 which would be generated by the estimated weighted average daily
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24 membership calculated pursuant to this paragraph. At midyear, the
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 1 allocation for the charter school or virtual charter school shall be
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2 adjusted using the first quarter weighted average daily membership
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3 for the charter school or virtual charter school calculated pursuant
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4 to subsection A of this section. For each subsequent school year,
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5 weighted average daily membership shall be calculated as provided
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6 for in Section 18-201.1 of this title, and State Aid shall be
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7 calculated as provided for in Section 18-200.1 of this title.
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8 D. Except as explicitly authorized by state law, a charter
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9 school or virtual charter school shall not be eligible to receive
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10 state-dedicated, local, or county revenue; provided, a charter
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11 school or virtual charter school may be eligible to receive any
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12 other aid, grants, or revenues allowed to other schools. A charter
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13 school or virtual charter school shall be considered a local
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14 education agency for purposes of funding.
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15 E. Any unexpended funds received by a charter school or virtual
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16 charter school may be reserved and used for future purposes. The
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17 governing board of a charter school or virtual charter school shall
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18 not levy taxes or issue bonds. If otherwise allowed by law, the
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19 governing board of a charter school or virtual charter school may
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20 enter into private contracts for the purposes of borrowing money
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21 from lenders. If the governing board of the charter school or
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22 virtual charter school borrows money, the charter school or virtual
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23 charter school shall be solely responsible for repaying the debt,
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 1 and the state or the sponsor shall not in any way be responsible or
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2 obligated to repay the debt.
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3 F. Any charter school or virtual charter school which chooses
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4 to lease property shall be eligible to receive current government
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5 lease rates.
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6 G. Except as otherwise provided in this subsection, each
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7 charter school shall pay to the Charter School Closure Reimbursement
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8 Revolving Fund created in subsection H of this section an amount
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9 equal to Five Dollars ($5.00) per student based on average daily
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10 membership, as defined by paragraph 2 of Section 18-107 of this
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11 title, during the first nine (9) weeks of the school year. Each
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12 charter school shall complete the payment every school year within
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13 thirty (30) days after the first nine (9) weeks of the school year.
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14 If the Charter School Closure Reimbursement Revolving Fund has a
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15 balance of One Million Dollars ($1,000,000.00) or more on July 1, no
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16 payment shall be required the following school year.
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17 H. There is hereby created in the State Treasury a revolving
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18 fund for the Statewide Charter School Board to be designated the
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19 “Charter School Closure Reimbursement Revolving Fund”. The fund
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20 shall be a continuing fund, not subject to fiscal year limitations,
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21 and shall consist of all monies received by the Statewide Charter
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22 School Board from charter schools as provided in subsection G of
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23 this section. All monies accruing to the credit of the fund are
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24 hereby appropriated and may be budgeted and expended by the
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 1 Statewide Charter School Board for the purpose of paying for
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2 expenditures incurred due to the closure of a charter school.
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3 Expenditures from the fund shall be made upon warrants issued by the
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4 State Treasurer against claims filed as prescribed by law with the
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5 Director of the Office of Management and Enterprise Services for
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6 approval and payment.
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7 SECTION 2. This act shall become effective July 1, 2024.
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8 SECTION 3. It being immediately necessary for the preservation
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9 of the public peace, health, or safety, an emergency is hereby
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10 declared to exist, by reason whereof this act shall take effect and
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11 be in full force from and after its passage and approval.
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13 59-2-2951 EB 1/16/2024 3:07:04 PM
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