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An Act
ENROLLED SENATE
BILL NO. 674 By: Pugh of the Senate
and
Caldwell (Chad) of the
House
An Act relating to charter schools; amending 70 O.S.
2021, Section 3-144, as amended by Section 13,
Chapter 323, O.S.L. 2023 (70 O.S. Supp. 2024, Section
3-144), which relates to the Charter Schools
Incentive Fund; renaming fund; adding source of fund;
adding purpose of fund; amending 70 O.S. 2021,
Section 3-142, as last amended by Section 1, Chapter
396, O.S.L. 2024 (70 O.S. Supp. 2024, Section 3-142),
which relates to state funding for charter schools;
modifying certain calculation of weighted average
daily membership; modifying revolving fund to which
certain payments are to be made; directing the
Statewide Charter School Board to transfer certain
remaining balance upon certain date to certain fund;
and updating statutory references.
SUBJECT: Charter schools
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 3-144, as
amended by Section 13, Chapter 323, O.S.L. 2023 (70 O.S. Supp. 2024,
Section 3-144), is amended to read as follows:
Section 3-144. A. There is hereby created in the State
Treasury a fund to be designated the “Charter Schools Incentive and
Closure Reimbursement Fund”. The fund shall be a continuing fund,
not subject to fiscal year limitations, and shall consist of all
monies appropriated by the Legislature, gifts, grants, devises, and
donations from any public or private source, and all monies received
ENR. S. B. NO. 674 Page 2
by the Statewide Charter School Board from charter schools pursuant
to subsection G of Section 3-142 of this title. The Statewide
Charter School Board shall administer the fund for the purpose of
providing financial support to charter school and virtual charter
school applicants and, charter schools and virtual charter schools
for start-up costs and, costs associated with renovating or
remodeling existing buildings and structures for use by a charter
school, and for paying expenditures incurred due to closure of a
charter school. The Statewide Charter School Board is authorized to
allocate funds on a per-pupil basis for purposes of providing
matching funds for the federal State Charter School Facilities
Incentive Grants Program created pursuant to the No Child Left
Behind Act of 2001, 20 USCA U.S.C., Section 7221d.
B. The Statewide Charter School Board shall adopt rules to
implement the provisions of this section including application and
notification requirements.
SECTION 2. AMENDATORY 70 O.S. 2021, Section 3-142, as
last amended by Section 1, Chapter 396, O.S.L. 2024 (70 O.S. Supp.
2024, Section 3-142), is amended to read as follows:
Section 3-142. A. The student membership and attendance of a
charter school shall be considered separate from the student
membership and attendance of the sponsor for the purpose of
calculating enrollment and funding including weighted average daily
membership pursuant to Section 18-201.1 of this title and State Aid
pursuant to Section 18-200.1 of this title. A charter school shall
receive the State Aid allocation, federal funds to which it is
eligible and qualifies for, and any other state-appropriated revenue
generated by its students for the applicable year. Not more than
three percent (3%) of the State Aid allocation may be charged by the
sponsor as a fee for administrative services rendered if the sponsor
is a school district, a comprehensive or regional institution of
higher education, a two-year college, a private institution of
higher learning accredited pursuant to Section 4103 of this title,
or a federally recognized Indian tribe pursuant to Section 3-132 of
this title. The Statewide Charter School Board shall not charge any
charter school or virtual charter school a fee for administrative or
other services. The State Department of Education shall determine
the policy and procedure for making payments to a charter school or
virtual charter school. The fee for administrative services as
ENR. S. B. NO. 674 Page 3
authorized in this subsection shall only be assessed on the State
Aid allocation amount and shall not be assessed on any other
appropriated amounts. A sponsor of a charter school shall not
charge any additional State Aid allocation or charge the charter
school any additional fee above the amounts allowed by this
subsection unless the additional fees are for additional services
rendered. The charter school sponsor shall provide to the State
Department of Education financial records documenting any state
funds charged by the sponsor for administrative services rendered
for the previous year.
B. The fee for administrative services authorized by subsection
A of this section shall be used by the sponsor to provide oversight
and services to the charter schools it sponsors. The State
Department of Education shall develop data codes for the Oklahoma
Cost Accounting System which shall be used to comply with the
administrative services reporting required by this section. A
charter school sponsor shall publish a detailed report on its
website and present the report in a public meeting of the charter
school governing board and the charter school sponsor governing
board. The report shall provide sponsor performance and stewardship
including compliance with all applicable laws, regulations, and
terms of the charter contract and listing expenses related to
oversight and services provided by the sponsor to the charter
schools it sponsors.
C. For the purpose of calculating weighted average daily
membership pursuant to Section 18-201.1 of this title and State Aid
pursuant to Section 18-200.1 of this title, the weighted average
daily membership for the first year of operation of a new charter
school site or grade level or full-time statewide virtual charter
school shall be determined initially by multiplying the actual
enrollment of students as of August 1 by 1.333. The charter school
or virtual charter school shall receive revenue equal to that which
would be generated by the estimated weighted average daily
membership calculated pursuant to this subsection. At midyear, the
allocation for the charter school or virtual charter school shall be
adjusted using the first quarter weighted average daily membership
for the charter school or virtual charter school calculated pursuant
to subsection A of this section. For each subsequent school year,
weighted average daily membership shall be calculated as provided
ENR. S. B. NO. 674 Page 4
for in Section 18-201.1 of this title, and State Aid shall be
calculated as provided for in Section 18-200.1 of this title.
D. Except as explicitly authorized by state law, a charter
school or virtual charter school shall not be eligible to receive
state-dedicated, local, or county revenue; provided, a charter
school or virtual charter school may be eligible to receive any
other aid, grants, or revenues allowed to other schools. A charter
school or virtual charter school shall be considered a local
education agency for purposes of funding.
E. Any unexpended funds received by a charter school or virtual
charter school may be reserved and used for future purposes. The
governing board of a charter school or virtual charter school shall
not levy taxes or issue bonds. If otherwise allowed by law, the
governing board of a charter school or virtual charter school may
enter into private contracts for the purposes of borrowing money
from lenders. If the governing board of the charter school or
virtual charter school borrows money, the charter school or virtual
charter school shall be solely responsible for repaying the debt,
and the state or the sponsor shall not in any way be responsible or
obligated to repay the debt.
F. Any charter school or virtual charter school which chooses
to lease property shall be eligible to receive current government
lease rates.
G. Except as otherwise provided in this subsection, each
charter school shall pay to the Charter School Schools Incentive and
Closure Reimbursement Revolving Fund created in subsection H Section
3-144 of this section title an amount equal to Five Dollars ($5.00)
per student based on average daily membership, as defined by
paragraph 2 of Section 18-107 of this title, during the first nine
(9) weeks of the school year. Each charter school shall complete
the payment every school year within thirty (30) days after the
first nine (9) weeks of the school year. If the Charter School
Schools Incentive and Closure Reimbursement Revolving Fund has a
balance of One Million Dollars ($1,000,000.00) or more on July 1, no
payment shall be required the following school year.
H. There is hereby created in the State Treasury a revolving
fund for Upon the effective date of this act, the Statewide Charter
ENR. S. B. NO. 674 Page 5
School Board to be designated the “Charter School Closure
Reimbursement Revolving Fund”. The fund shall be a continuing fund,
not subject to fiscal year limitations, and shall consist of all
monies received by the Statewide Charter School Board from charter
schools as provided in subsection G of this section. All monies
accruing to the credit of the fund are hereby appropriated and may
be budgeted and expended by the Statewide Charter School Board for
the purpose of paying for expenditures incurred due to the closure
of a charter school. Expenditures from the fund shall be made upon
warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment shall transfer all
funds remaining in the balance of the Charter School Closure
Reimbursement Revolving Fund to the Charter Schools Incentive and
Closure Reimbursement Fund created pursuant to Section 3-144 of this
title.
ENR. S. B. NO. 674 Page 6
Passed the Senate the 21st day of May, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the 6th day of May, 2025.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________