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ENGROSSED SENATE
BILL NO. 366 By: Hines, Daniels, Jett,
Deevers, and Stewart of the
Senate
and
Hall and Caldwell (Chad) of
the House
An Act relating to school district boards of
education; amending 70 O.S. 2021, Section 5-117,
which relates to powers and duties of school district
boards of education; directing a board of education
to provide certain notice if a lessee does not timely
elect to purchase certain property; defining term;
requiring certain boards of education to provide
certain notice regarding certain proposed
transactions; defining term; requiring notice to
include certain information if a board of education
decides to accept certain bid, offer, or proposal;
providing certain time period for certain
notification; providing for lottery selection if more
than one eligible charter school elects certain
purchase or lease; prohibiting the establishment of
certain covenants, policies, or other agreements;
providing certain construction; updating statutory
language; providing an effective date; and declaring
an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 5-117, is
amended to read as follows:
Section 5-117. A. The board of education of each school
district shall have power to:
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1. Elect its own officers; provided, that the chair of the
board authorized in Section 5-107B of this title shall be elected by
the electors of the school district;
2. Make rules, not inconsistent with the law or rules of the
State Board of Education, governing the board and the school system
of the district, including converting all or part of a traditional
public school to a conversion school;
3. Maintain and operate a complete public school system of such
character as the board of education shall deem best suited to the
needs of the school district;
4. Designate the schools to be attended by the children of the
district;
5. Provide and operate, when deemed advisable, cafeterias or
other eating accommodations, thrift banks or other facilities for
the teaching and practice of thrift and economy, bookstores, print
shops, and vocational and other shops;
6. Provide informational material concerning school bond
elections and millage elections, including, but not limited to, all
pertinent financial information relative to the bond issue, a
statement of revenue sources necessary to retire proposed bonds, a
statement of current bonded indebtedness of the school district, and
a statement of proposed use of funds to be generated by the proposed
bond issue. The informational material shall not contain the words
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“vote yes” or “vote no” or any similar words or statement any place
on such informational material;
7. Purchase, construct, or rent, and operate and maintain,
classrooms, libraries, auditoriums, gymnasiums, stadiums, recreation
places and playgrounds, teacherages, school bus garages,
laboratories, administration buildings, and other schoolhouses and
school buildings, and acquire sites and equipment for the operation
of public schools or conversion schools;
8. a. Insure the school district or its employees against
any loss, damage, or liability as defined by Sections
702 through 708 of Title 36 of the Oklahoma Statutes,
or other forms of insurance provided for in Title 36
of the Oklahoma Statutes.
b. Subject to the restrictions of liability in the The
Governmental Tort Claims Act:
(1) insure the school district against all or any
part of any liability it may incur for death,
injury, or disability of any person, or for
damage to property, either real or personal,
(2) insure any employee of the school district
against all or any part of the employee’s
liability for injury or damage resulting from an
act or omission in the scope of employment, or
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(3) insure against the expense of defending a claim
against the school district or its employee,
whether or not liability exists on such claim.
c. As used in this subsection, “employee” means any
person who has acted in behalf of a school district,
whether that person is acting on a permanent or
temporary basis with or without being compensated or
on a full-time or part-time basis. Employee also
includes all elected or appointed officers, members of
governing bodies of a school district, and persons
appointed, and other persons designated by a school
district to act in its behalf.
d. The cost or premium of any such insurance is a proper
expenditure of the school district.
e. Any insurance authorized by law to be purchased,
obtained, or provided by a school district may be
provided by:
(1) self-insurance, which may be, but is not required
to be, funded by appropriations to establish or
maintain reserves for self-insurance purposes.
Any self-insurance reserve fund shall be
nonfiscal and shall not be considered in
computing any levy when the school district makes
its annual estimate for needed appropriations,
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(2) insurance in any insurer authorized to transact
insurance in this state,
(3) insurance secured in accordance with any other
method provided by law, or
(4) any combination of insurance authorized by this
section.
f. Two or more school districts or public agencies, by
interlocal agreement made pursuant to the Interlocal
Cooperation Act, may provide insurance for any purpose
by any one or more of the methods specified in this
section. The pooling of self-insured reserves,
claims, or losses among governments as authorized in
this section shall not be construed to be transacting
insurance nor otherwise subject to the provisions of
the laws of this state regulating insurance or
insurance companies, except as to the provisions of
Section 607.1 of Title 36 of the Oklahoma Statutes.
Two or more school districts may also be insured under
a master policy or contract of insurance. Premium
costs may be set individually for each school district
or apportioned among participating school districts as
provided by the master policy or contract;
9. Acquire property by condemnation proceedings in the same
manner as land is condemned for railroad purposes. School district
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funds may be used to erect buildings on leased land on which other
buildings have been erected prior to April 3, 1969, or on land which
is leased from a governmental entity;
10. Lease real or personal property to the state or any
political subdivision thereof or a not-for-profit entity operating
pursuant to Section 868 of Title 18 of the Oklahoma Statutes for
nominal cash consideration for so long as the use of the property by
the lessee substantially benefits, in whole or in part, the same
public served by the school district;
11. a. Dispose of personal or real property no longer needed
by the district by sale, exchange, lease, lease-
purchase, sale and partial lease back, or otherwise.
Real property shall be conveyed pursuant to a public
sale, public bid, or private sale; provided, however,
unless otherwise prohibited by law, the board of
education of a consolidated or annexed school district
or any other school district may convey real property
to a local political subdivision or to an educational
institution within The Oklahoma State System of Higher
Education or to a housing authority formed pursuant to
the provisions of Section 1057 of Title 63 of the
Oklahoma Statutes without consideration. Prior to the
sale of any real property, the board of education
shall have the real property appraised. The appraisal
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shall be confidential until the real property is sold.
When the real property is sold, the board of education
shall make the appraisal available for public
inspection. Prior to the conveyance of any real
property by private sale, the board of education shall
have offered the real property for sale by public sale
or public bid. Any conveyance of real property by
private sale to a nonprofit organization, association,
or corporation to be used for public purposes, unless
for exchange, shall contain a reversionary clause
which returns the real property to the board of
education upon the cessation of the use without profit
or for public purposes by the purchaser or the assigns
of the purchaser,
b. If a board of education makes the decision to dispose
of real or personal property that is leased at the
time the decision is made, whether such disposal is by
public sale, public bid, or private sale, the lessee
shall have a right of first refusal to purchase the
property on the following terms and conditions:
(1) if a board of education receives a bid or offer
in a public sale, public bid, or private sale for
any real or personal property that it desires to
accept, then it shall provide notice to the
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lessee of the property. The notice shall include
the identity of the prospective purchaser of the
property, the terms and conditions of the
proposed sale, and the purchase price to be paid
by the prospective purchaser, and
(2) the lessee shall have thirty (30) days after
receipt of the notice to inform the board of
education that it elects to purchase the property
on the same terms and conditions set forth in the
notice, in which event the board of education
shall convey the property to the lessee on all
the same terms and conditions set forth in the
notice; provided, however, that if any portion of
the consideration included in the purchase price
set forth in the notice is not in cash, then the
lessee shall be entitled to pay the fair market
value in cash of such noncash consideration, and
(3) if the lessee does not timely elect to purchase
the property pursuant to division (2) of this
subparagraph, the board of education shall
provide the notice described in division (1) of
this subparagraph to eligible charter schools.
For the purposes of this section, “eligible
charter school” means a public charter school
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authorized pursuant to the Oklahoma Charter
Schools Act and is located within the geographic
boundaries of the school district,
c. (1) If a board of education proposes to sell, lease,
or otherwise transfer a district facility to any
person or entity, the board of education shall
provide written notice of the proposed
transaction to each eligible charter school. For
the purposes of this section, “district facility”
means any school building or portion of a school
building with or without improvements that is
owned, leased, or otherwise controlled by the
school district and that is used for classroom
instruction or was used for classroom instruction
within the previous twenty (20) years,
(2) if the board of education decides to accept a
bid, offer, or proposal to sell, lease, or
otherwise transfer a district facility, the
notice required by division (1) of this
subparagraph shall include the identity of the
prospective purchaser or lessee, the material
terms and conditions of the proposed transaction,
and the proposed purchase or lease rate,
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(3) an eligible charter school shall have thirty (30)
days after receipt of the notice to notify the
board of education that it elects to purchase or
lease the district facility on the same terms and
conditions. Upon timely election, the board of
education shall convey or lease the property to
the eligible charter school on those terms and
conditions,
(4) if more than one eligible charter school timely
elects to purchase or lease a district facility,
the board of education shall conduct a random
lottery selection among the eligible charter
schools,
(5) a board of education shall not establish
covenants, policies, or other agreements that
prevent or restrict the sale or lease of district
facilities to eligible charter schools, and
(6) the provisions of this subparagraph shall not be
construed to limit the right of first refusal
granted to a lessee pursuant to subparagraph b of
this paragraph;
12. Purchase necessary property, equipment, furniture and
supplies necessary to maintain and operate an adequate school
system;
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13. Incur all expenses, within the limitations provided for by
law, necessary to perform all powers granted by the provisions of
this section;
14. Contract with and fix the duties and compensation of
physicians, dentists, optometrists, nurses, attorneys,
superintendents, principals, teachers, bus drivers, janitors, and
other necessary employees of the district;
15. Establish a written policy for reimbursement of necessary
travel expenses of employees and members of the board. The policy
may include in-district travel from the site of employment
assignment which is necessary in the performance of employment
duties. The written policy shall specify procedures, contain
documentation requirements, and may include payment of meal expenses
during authorized travel on a per diem allowance basis rather than
itemized documentation;
16. Pay necessary travel expenses and other related expenses of
prospective employees for sponsored visits to the school district
pursuant to a written policy specifying procedures containing
documentation requirements equal to or greater than the requirements
specified by law for state employees in the State Travel
Reimbursement Act;
17. Provide for employees’ leaves of absence without pay;
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18. Exercise sole control over all the schools and property of
the district, subject to other provisions of the Oklahoma School
Code;
19. Allow district-owned school buses to be used for
transportation of students from other districts or educational
institutions while within the district on educational tours. This
shall not restrict the authority of the board to authorize any other
use of such buses which may now be permitted by law or rule of the
State Board of Education;
20. Enter into contractual agreements with the board of
trustees of a multicounty library system, as defined in Section 4-
103 of Title 65 of the Oklahoma Statutes, a city-county library
commission, as defined provided in Section 152 of Title 65 of the
Oklahoma Statutes, or a rural single county library system, as
defined in Section 1-104 of Title 65 of the Oklahoma Statutes, on
such terms as may be mutually agreed, except no district board of
education may enter into any agreement under which the library
services for the school would be provided at any site other than the
school site or which would result in library services that do not
meet accreditation standards as required by law or rule;
21. Perform all functions necessary to the administration of a
school district in Oklahoma as specified in the Oklahoma School
Code, and in addition thereto, those powers necessarily implied but
not delegated by law to any other agency or official;
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22. Prepare and distribute at the expense of the school
district any and all material which has the purpose of informing the
public about district activities;
23. Solicit and accept any gift, grant, or donation of money or
property for the use of the school district. Any gift, grant, or
donation of money may be deposited in the general fund or building
fund of the school district; and
24. Pay necessary meal and lodging expenses of school district
students and sponsors involved in authorized school-sponsored
cocurricular activities. The board of education shall establish a
written policy for reimbursement of necessary meal and lodging
expenses of school district students and sponsors. The written
policy shall specify procedures, contain documentation requirements,
and designate the funds from which reimbursement may be made.
Reimbursement may be made from the General Fund district’s general
fund.
B. The board of education of any school district may rent real
and personal property, if such items are necessary for the operation
of the school, and pay the rental charges for the usage during any
fiscal year, or portion thereof, out of appropriations made and
approved for current expense purposes during the fiscal year. Any
rental contract extending beyond June 30 of the fiscal year shall be
void unless it contains provisions for mutual ratification of
renewal pursuant to the conditions provided for in this subsection.
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It is the intent of this subsection to authorize boards of education
to enter into lease contracts but not to incur any obligation
against the school district in excess of the income and revenue
provided for such purposes for the fiscal year in which the lease
contract is operative. Any lease or lease-purchase agreement
entered into by any board of education shall state the purchase
price of real or personal property so leased. The lease or lease-
purchase shall not be extended so as to cause payment of more than
the original purchase price of the real or personal property, plus
interest not to exceed the legal rate. When the purchase price plus
interest has been paid, the property shall belong to the lessee and
the lessor shall deliver a deed or bill of sale to the property to
the lessee. When any real or personal property has been leased or
rented during any fiscal year pursuant to the provisions of any
contract which permits continuance of the rental for the remainder
of the fiscal year, the renting or leasing of the property shall be
continued for the remainder of the fiscal year unless the board of
education renting or leasing the same certifies by proper resolution
entered in the minutes of the board of education that the
continuance of the rental is unnecessary and contrary to the public
interest. Any lease-purchase agreement entered into shall include
the right of a school district to acquire buildings, equipment, or
other facilities or discrete components thereof or improve school
sites through a lease-purchase agreement. A school district may use
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proceeds derived from the sale of bonds as authorized by Section 26
of Article X of the Oklahoma Constitution to make lease-purchase
payments, including interest, under a lease-purchase agreement. For
purposes of this subsection, the term “acquired” “acquiring” as used
in Section 26 of Article X of the Oklahoma Constitution shall mean
the possession, control, or power to dispose of personal or real
property.
C. The boards of education of two or more school districts may
enter into cooperative agreements and maintain joint programs
including, but not limited to, courses of instruction for
handicapped children, courses of instruction in music and other
subjects, practical instruction for trades and vocations, practical
instruction in driver training courses, and health programs
including visual care by persons legally licensed for such purpose,
without favoritism as to either profession. The revenues necessary
to operate a joint program approved in cooperative agreements,
whether from federal, state, or local sources, including the
individual contributions of participating school districts, shall be
deposited into a fund separate from all other appropriated funds.
The beginning fund balance each year, combined with all actual
revenues, including collected and estimated revenues, must shall be
appropriated before being expended. Purchase orders shall be issued
against available appropriations and, once goods or services have
been received, either payable or nonpayable warrants shall be issued
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in payment of all purchase orders. The fund shall be reported as a
separate appropriated fund in all the financial reports of the
school district which is chosen by the other school districts to
keep the accounting records of the joint program.
D. The boards of education of two or more school districts may
enter into a mutual contract or separate contracts with a
superintendent, administrator, or teacher or with a person to
provide support services, to serve as superintendent, administrator,
or teacher, as appropriately qualified, or to provide support
services, for each contracting district upon such terms and
conditions as the parties may agree. Nothing in this section shall
be construed to authorize or require annexation or consolidation of
any school districts or the closing of any school site except
pursuant to law as set forth in Section 7-101 et seq. of this title.
E. Any school district may operate or maintain a school or
schools on any military reservation which is within the boundaries
of the school district or which is adjacent to the school district,
and provide the instruction in the school or schools to children of
personnel on the military reservation and, in doing so, shall
conform to all federal laws and requirements.
F. The board of education of each school district shall adopt
and maintain on file in the office of the superintendent of schools
appropriate personnel policy and sick leave guide. The guide shall
be made available to the public.
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G. The board of education of any school district with an
average daily membership of thirty thousand (30,000) or more and all
or part of which school district is located in a county having more
than five hundred thousand (500,000) population according to the
latest Federal Decennial Census may contract with a public or
private nonsectarian entity for that entity to provide educational
and administrative services for the school district. The
educational services provided by a contracting entity may include,
but are not limited to, the delivery of instructional service in
core and noncore academic subjects to the students enrolled in the
school district at one or more school sites or parts of sites within
the district pursuant to the terms of an educational services
contract. All educational service providers and their employees and
representatives and all educational and administrative services
provided under an educational services contract shall be exempt from
all statutes and rules relating to schools, boards of education, and
school districts to the same extent that a charter school is exempt
under the Oklahoma Charter Schools Act. For all purposes including,
but not limited to, attendance, funding from all sources and
accountability, all students who are provided services by a
contracting entity pursuant to an educational services contract
shall at all times be and remain students of the school district.
SECTION 2. This act shall become effective July 1, 2026.
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SECTION 3. 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.
Passed the Senate the 17th day of March, 2026.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2026.
Presiding Officer of the House
of Representatives