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SENATE FLOOR VERSION - SB1199 SFLR Page 1
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SENATE FLOOR VERSION
February 24, 2026
AS AMENDED
SENATE BILL NO. 1199 By: Sacchieri
[ schools - contracts - prohibitions - interest -
applicability -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 5-124, is
amended to read as follows:
Section 5-124. A. Except as otherwise provided in this
section, no board of education of any school district or technology
center school district in this state shall make any contract with
any of its members or with any company, individual, or business
concern in which any of its members shall be directly or indirectly
interested. All contracts made in violation of this section shall
be wholly void. A For the purposes of this section, a member of a
board of education shall be considered to be interested in any
contract made with any company, individual, or any business concern
if the member of the board of education or any member of the
immediate family of the member is employed by or owns any
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substantial an interest of five percent (5%) or more in same the
company, individual, or business concern.
B. For purposes of this section, the following shall not be
considered the making of a contract:
1. Any contract with a qualified nonprofit Internal Revenue
Code 501(c)(3) organization, except for contracts paying salaries or
expenses or except a contract involving the counseling or
instruction of students or staff;
2. Monthly billings submitted to any school district or
technology center school district for public utility companies,
electric cooperatives, or telephone companies, whose services are
regulated by the Oklahoma Corporation Commission, or billings of the
utility companies, electric cooperatives, or telephone companies
pertaining to installations or changes in service, where tariffs for
the charges or billings by the companies are on file with the
Oklahoma Corporation Commission; and
3. The depositing of any funds in a bank or other depository.
C. 1. The governing board of education of a technology center
school district may enter into a contract for the technology center
school district to provide training for a company, individual, or
business concern by which a member of the board or a member of his
or her immediate family is employed or in which the board member or
a member of his or her immediate family has an interest of five
percent (5%) or more. A board member shall abstain from voting on
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any such contract between the technology center school district
board of education and the company, individual, or business concern
by which the member is employed.
2. A board of education of a school district or technology
center school district may enter into a contract with a company,
individual, or business concern in by which a board member or a
member’s spouse member of his or her immediate family is employed by
or in which the board member or any member of his or her immediate
family has a substantial an interest of five percent (5%) or more if
the company, individual, or business concern is the only supplier
having a place of business located within the school district or
technology center school district or within ten (10) miles of the
needed services or materials. The board member shall abstain from
voting on any such contract between the company, individual, or
business concern in which that member has a substantial interest,
and the minutes of the board meeting at which the contract is
approved shall state that the contract is being made because of the
lack of another supplier with a place of business located within the
school district or technology center school district or within ten
(10) miles of the needed services or materials.
3. A board of education of a school district or technology
center school district which has entered into a lease-purchase
agreement, prior to the time a board member which who is employed by
or has an immediate family member who is employed by or has a
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substantial an interest of five percent (5%) or more or has an
immediate family member who has an interest of five percent (5%) or
more in the company, individual, or business concern became a member
of the board of education, may, after the member becomes a board
member, continue to exercise any fiscal year options in the lease-
purchase agreement for renewal of the lease-purchase for the balance
of the contract term. The affected board member shall abstain from
voting on such fiscal year renewal of the continuation of the lease-
purchase agreement.
4. A board of education of a school district or technology
center school district may enter into a contract with a company,
individual, or business concern in which a board member or a spouse
of a member of his or her immediate family is employed and neither
the board member nor any member of his or her immediate family has
no substantial an interest of five percent (5%) or more if the
school district or technology center school district does not
include any part of a municipality with a population greater than
two thousand five hundred (2,500) according to the latest Federal
Decennial Census and the company, individual, or business concern is
located in the corporate limits of a municipality which is in the
boundaries of the school district or technology center school
district.
D. A board member shall not be considered to be directly or
indirectly interested in any contract with a company, individual, or
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business concern that employs such board member or the spouse of the
board member if the board member or the spouse of the board member
has an interest of five percent (5%) or less in the company,
individual, or business concern The provisions of this section shall
apply to contracts entered into on or after the effective date of
this act.
SECTION 2. It being immediately necessary for the preservation
of the public peace, health, or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON EDUCATION
February 24, 2026 - DO PASS AS AMENDED