School Laws of Oklahoma

Chapter 1 - Oklahoma School Code
Article IV: School Districts and Boards of Education

Section 49. School Districts - Designation. (70 O.S. § 5-101)

All school districts in Oklahoma, now in existence or which may hereafter be created, shall be designated only as independent, elementary or technology center school districts. Independent school districts, elementary school districts and technology center school districts shall be under the supervision and the administration of the respective boards of education thereof.

Section 50. Independent School Districts. (70 O.S. § 5-102)

All independent school districts in Oklahoma shall be those which shall have maintained during the previous year a school offering high school subjects fully accredited by the State Board of Education.

A reasonable deviation from any of the requirements enumerated herein shall not operate to prohibit the State Board of Education from designating any district as independent if the other requirements are sufficiently superior to the minimum standards required herein, but standards therefor shall be reduced to writing and a copy thereof sent to all districts maintaining high schools in Oklahoma at least one (1) year prior to the time requirements become effective. Until the effective date thereof, the requirements hereinabove enumerated shall remain in full force and effect.

As a basis for attaining the status of independent school district, high schools shall be inspected by a member of the division of secondary education of the State Board of Education or such other representative as the State Board of Education shall designate, and all of the standards prescribed by the State Board of Education shall be carefully checked in the presence of the district superintendent of schools or board of education of the district. A written report shall be made and mailed to the district superintendent of schools and board of education within thirty (30) days after time of such inspection. Such report shall indicate if the high school meets the requirements and, if not, a statement shall be made as to what must be done in order to comply therewith.

After any school district has become independent, it shall remain so until removed from independent status by the State Board of Education, which, however, shall not remove any school district from independent status until it is satisfied that the minimum standards for independent school districts are not being maintained. Any order of the State Board of Education removing a school district from independent status shall not become effective until the close of the fiscal year in which such order is made, and any order removing a school district from independent status which has heretofore been made by the State Board of Education, regardless of notice or effective date thereof, is hereby validated. A reasonable variation from year to year in the minimum number of teachers required shall not affect the status of any independent school district.

Section 51. Elementary School Districts. (70 O.S. § 5-103)

Elementary school districts shall offer grade kindergarten through eight and are those which have not met the minimum standards for, and have not been designated as, independent school districts by the State Board of Education. On and after July 1, 1991, every place in the Oklahoma Statutes which refers to “dependent school district” shall mean “elementary school district”.

Section 52. Elementary School Districts Offering Grades Above Eighth Grade. (70 O.S. § 5-103.1)

On or after the effective date of this act, except upon approval of the State Board of Education, an elementary school district that did not offer any grade above the eighth grade during the 1993-94 school year may not offer grades above the eighth grade during the 1994-95 school year or any school year thereafter. No later than August 1, 1994, the State Board of Education shall promulgate rules to implement the provisions of this section.

Section 53. Designation of District Retained on Records. (70 O.S. § 5-104)

Only for the purpose of identifying a district that originally incurred an indebtedness so as to avoid confusion in discharging such indebtedness, the designation of a district when an indebtedness was incurred may be retained in the records of the county assessor, county treasurer, and other public officials charged with the duty of levying and collecting taxes for the payment of obligations of school districts irrespective of whether such indebtedness has been assumed by another school district.

Section 54. School District - Body Corporate - Powers. (70 O.S. § 5-105)

Every school district shall be a body corporate and shall possess the usual powers of a corporation for public purposes by the name and style of “Independent (or Elementary, if it is an elementary school district) School District Number ______ (such a number as may be designated by the State Board of Education) of ________________________ (the name of the county in which the district is located, or if lying in more than one county the name of the county where supervision is located) County, Oklahoma,” and in that name may sue and be sued and be capable of contracting and being contracted with and holding such real and personal estate as it may come into possession of or by will or otherwise and as authorized by law.

School district employees may not perform certain electrical tasks without an electrician’s license. February 6, 1990 (AG Op. No. 89-56)

Board of Education has authority to enter into a compromise or settlement in lawsuit pending against it. July 9, 1979 (AG Op. No. 79-191)

School district is a political subdivision of the State. December 30, 1971 (AG Op. No. 71-372)

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Section 55. Governing Body of School District. (70 O.S. § 5-106)

A. The governing board of each school district in Oklahoma is hereby designated and shall hereafter be known as the board of education of such district. Except as otherwise provided in this section, the superintendent of schools appointed and employed by the board shall be the executive officer of the board and shall perform duties as the board directs.

B. The board may contract with a superintendent for a term as mutually agreed upon but not to exceed three (3) years beyond the fiscal year in which the contract is approved by the board and accepted by the superintendent. The contract shall include all other terms and conditions as agreed upon in writing by the board and the superintendent.

C. The boards of two or more school districts may contract with one superintendent to serve as superintendent of the school districts as provided in Section 4 of this act.

D. No board of a school district having average daily membership (ADM) of fewer than five hundred (500) pupils shall be prohibited from allowing a superintendent to serve simultaneously as a principal.

E. The chief executive officer of the board of education of a district in which a public developmental research school is established shall be the director of the school appointed as provided in Section 1210.577 of this title.

Note: For authority for multi-year contracts see Section 599.

Under the Oklahoma City Charter, an Oklahoma City firefighter can not hold a position on a school board because it is a public office under Oklahoma law. Sallee v. City of Oklahoma City, 2011 OK CIV APP 5.

Section 55.1. Joint Contracts. (70 O.S. § 5-106A)

A superintendent, administrator, teacher, or person providing support services may contract with more than one school district to serve as superintendent, administrator, or teacher, as appropriately qualified, or to provide support services for each contracting district. The contract may be mutual with all the districts as parties, or the contracts may be separate; provided, that a superintendent, administrator, teacher, or person providing support services may not enter into contracts with more than one school district without the assent and knowledge of all the school districts with which they are contracting. The districts who contract either mutually or separately with a superintendent, administrator, or teacher, or with a person to provide support services may enter into agreements upon such terms and conditions as the parties may agree and may include terms related to the division of payments for items including, but not limited to, payment of benefits or travel for the superintendent, administrator, teacher, or person providing support services. Unless otherwise provided by contract, each district shall pay into the Teachers’ Retirement System of Oklahoma the district’s pro rata share of the payment required to be paid into the System on behalf of the employee.

Section 56. Independent and Dependent School Districts - Board of Education - Members - Election. (70 O.S. § 5-107A)

The following provisions and the provisions of Section 13A-101 et seq. of Title 26 of the Oklahoma Statutes shall govern the election of members of the board of education for a school district:

A. For purposes of this section, temporary positions added to a board of education pursuant to Section 7-101 or 7-105 of this title and the chair of the board of education elected pursuant to Section 1 of this act shall not be considered in determining the size of the board. The number and term of each board of education shall be as follows:

District	Members	Term (Years)
Elementary	3	3
Independent	5
1. districts having a five-member board		5
2. districts having a seven-member board unless an election is conducted pursuant to subsection C of this section	7	4

B. In all school districts, the members of the board of education shall be elected as follows:

a. Between August 1 and December 31 of the year following the submission by the United States Department of Commerce to the President of the United States of the official Federal Decennial Census, the board of education shall reapportion the territory of the school district into board districts. Beginning with the reapportionment following the 1990 Federal Decennial Census, all boundaries of board districts shall follow clearly visible, definable and observable physical boundaries which are based upon criteria established and recognized by the Bureau of the Census of the United States Department of Commerce for purposes of defining census blocks for its decennial census and shall follow, as much as is possible, precinct boundaries. Board districts shall be compact, contiguous and shall be as equal in population as practical with not more than a ten percent (10%) variance between the most populous and least populous board districts.

b. School districts having fewer than one thousand eight hundred (1,800) students in average daily membership during the preceding school year may choose not to establish board districts and may nominate and elect all board members at large.

c. Elementary school districts shall have board members elected at large.

d. A city located in an independent school district having four or more wards and an outlying area with such outlying area comprising no more than twenty percent (20%) of the population of such independent school district, then such independent school district may adopt such wards and outlying area in lieu of the board districts provided for in subparagraph a of this paragraph, and at least one member of the board of education of such independent school district shall be a member of each ward; and

2. One member of the board of education shall be elected by the electors of the school district to represent each such board district. Provided, however, that in any school district where the electors of each board district, rather than the electors of the entire school district, elect board members to represent that board district, that district shall elect board members in that manner.

If during the term of office to which a person was elected, that member ceases to be a resident of the board district for which the person was elected, the office shall become vacant and such vacancy shall be filled as provided in Section 13A-110 of Title 26 of the Oklahoma Statutes; and

3. In a school district having more than ten thousand (10,000) children in average daily membership, the following provision and the provisions of Section 13A-101 et seq. of Title 26 of the Oklahoma Statutes shall control as to election of the members of the school district’s board of education:

a. There shall be held an election in which the electors of each board district in which a term is expiring or in which a vacancy exists shall select two candidates from among the candidates for board member to represent the board district,

b. If, in the election, one candidate has a majority of all votes cast, then a run-off election is not required. If no candidate receives a majority of all votes cast, then the two candidates receiving the greatest number of votes shall become the candidates for the board district in the general election, and

c. At the run-off election, all of the electors of the board district shall select one of the two candidates as the member of the board of education representing the board district.

C. Any seven-member board shall have the option of reducing its board to a five-member board either after approval of a board resolution or a vote of the electors of the school district to take such action pursuant to Section 13A-109 of Title 26 of the Oklahoma Statutes. The election pursuant to a vote of the electors of the school district shall be called upon the submission of a petition requesting the election signed by ten percent (10%) of the school district electors in the school district, the percentage being applied to the highest number of voters voting in a regular school district election in the district in the preceding five (5) years as determined by the secretary of the county election board, who shall certify the adequacy of the number of signatures on the petition. If the question is put before the voters of the district, such election shall be held along with and at the same time and place as the next school election if all requirements of Section 13A-101 et seq. of Title 26 of the Oklahoma Statutes for such election are met.

After such resolution or election, the board shall reapportion the district, determining by resolution or by lot which board member offices shall be abolished at the end of the current board member’s term and which shall become one of the offices of the new board.

Election of the resulting board members shall be carried out according to procedures stated in this section and Section 13A-101 et seq. of Title 26 of the Oklahoma Statutes.

School board members currently serving in offices abolished pursuant to this subsection shall continue serving until the end of their current terms as at-large members.

D. Except for the chair of the board of education elected pursuant to Section 1 of this act, offices of members of the board of education shall be designated by consecutive numbers and shall correspond with board districts when applicable.

E. Except for those members elected prior to July 1, 1992, the terms of office of the members of a five-member board of education shall commence on the first regular, special or emergency school board meeting after the date of the annual school election and after the member has been certified as elected:

Office No. 1 1991

Office No. 2 1992

Office No. 3 1993

Office No. 4 1994

Office No. 5 1995

The terms of office of the members of a seven-member board of education shall be staggered, with one member being elected in 1991, two members being elected in 1992, two members being elected in 1993 and two members being elected in 1994 and shall commence on the first regular, special or emergency school board meeting after the date of the annual school election and after the member has been certified as elected; provided, in districts needing to elect two members in 1991 to maintain a full complement of board members, two members shall be elected in 1991, one for a full term and one for a one-year term, as determined by the local board. If a seven-member board is formed upon consolidation pursuant to Section 7-105 of this title, or upon annexation pursuant to Section 7-101 of this title, the formation agreement shall specify initial short terms as necessary to extend until the beginning of the regular terms for seven-member boards established herein.

Upon reduction of a seven-member board pursuant to subsection C of this section, the terms of the five-member board shall be staggered pursuant to this subsection.

One member of a three-member board of education shall be elected each year, and the terms of office shall commence on the first regular, special or emergency school board meeting after the member has been certified as elected.

F. The term of office of each board member elected after July 1, 1992, shall commence on the first regular, special or emergency school board meeting after the date of the annual school election and after the member has been certified as elected. Board members elected prior to July 1, 1992, may remain in office until their successor is elected and seated pursuant to Sections 13A-101 through 13A-111 of Title 26 of the Oklahoma Statutes. The remaining term of any member who completes the term for which the member was elected but not wishing to serve until the successor of the member takes office on the first regular, special or emergency school board meeting after the successor has been certified as elected, shall be filled by appointment by the remaining members of the board of education.

School board member must remain a resident of the school district during the term of office to retain eligibility to serve on board. May 4, 2000 (AG Op. No. 00-24).

If a school board member was elected prior to July 1, 1994 and ceased to be a resident of the board district after July 1, 1994, the office shall become vacant. October 17, 1995 (AG Op. No. 95-71)

Three options for electing board members in school districts having less than 1,000 students in average daily membership during the preceding year are as follows: (1) The school district “may choose not to establish board districts and. . . nominate and elect all board members at large.” (2) The school district may establish board districts and elect board members at large; or (3) The school district may establish board districts and each respective board member may be elected only by the electors of that particular board district. April 30, 1992 (AG Inf. Op. No. 92-580) City charter cannot prescribe procedures for conducting school district elections. March 2, 1981 (AG Op. No. 81-17)

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Section 56.1. Expansion of Board. (70 O.S. § 5-107B)

A. The board of education of a district with an average daily membership (ADM) of more than thirty thousand (30,000) students may be expanded to add a member who shall be elected at large for a term of four (4) years and who shall serve as chair of the board. The chair of the board position may be added upon a majority vote of the district board of education to add the position. If the board opts to add the chair of the board position, the chair of the board shall be elected at the next regular election of board members, held pursuant to Section 13A 103 of Title 26 of the Oklahoma Statutes, following the decision of the board.

B. The chair of the board of education shall possess the same qualifications as required for other board members, shall assume office as provided for other members of the board of education, shall be a full, voting member of the board, and shall count for purposes of a quorum or a majority, or other requirements based on number of members on the board. The chair shall preside at all meetings of the board of education in accordance with rules of parliamentary procedure which have been adopted by a majority vote of the board, provided that, in the absence of rules adopted by the board, the chair shall determine and set forth the rules of parliamentary procedure that shall apply at board meetings; assemble and control the agenda for board meetings, provided that, upon approval of a majority of the members of the board, an item shall be placed on the agenda for the same or a subsequent meeting, in accordance with the Oklahoma Open Meeting Act; appoint all committees whose appointment is not otherwise provided for by law; and shall sign all warrants ordered by the board of education to be drawn upon the treasurer for school money. The chair of the board shall possess all powers otherwise provided by law for a member of a board of education, all powers provided by law for the president of a board of education, and such other lawful powers as may be conferred upon the chair by majority vote of the board. The chair shall receive compensation and benefits as conferred upon other members of the district board of education.

C. For a district in which a chair of the board has been elected, the district board of education, during the meeting at which the chair of the board assumes office, shall elect a vice-chair who shall serve a one-year term and until a successor is elected and qualified. The vice-chair shall perform all duties of the chair of the board in case of the chair’s absence or disability. The board shall also elect clerks and deputies as provided in Section 5-119 of this title. The board shall not elect a president or vice president.

D. If a district board of education is expanded to include the chair of the board position , the chair of the board position shall not be abolished except by a majority vote of the voters of the school district voting on such question at a special election called for that purpose. The question may be presented only upon a resolution adopted by three-fourths (¾) of the board membership or upon petition for an election on the question, that complies with the requirements for petition and election set forth in Section 7-101 of this title. If the question is approved, the chair of the board position shall be abolished at the end of the term of the chair who holds the office when the election is held or upon the chair’s resignation or vacancy of the office following the election on the question.

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Section 57. Workshops for New Board Members - Expenses of Members Attending. (70 O.S. § 5-110)

A. Except as provided in subsection B of this section, at the time a school district elector files a notification and declaration of candidacy for the office of school district board of education membership or is appointed to be a member of a school district board of education, the elector shall agree and pledge in writing that, within fifteen (15) months of election or appointment as a member of the district board of education, such member will complete at least twelve (12) hours of instruction on education issues, including school finance, Oklahoma education laws, and ethics, duties and responsibilities of district board of education members. This requirement may be satisfied by attending a two-day workshop to be held within the state by the State Department of Education, by the Oklahoma Department of Career and Technology Education, or by attending workshops, seminars or classes which address the above-mentioned subject matter, and which are sponsored by any organization approved by the State Board of Education, including but not limited to institutions of higher education. The State Board of Education shall promulgate rules by which an organization or particular courses offered by an organization may be approved for purposes of fulfilling the instructional requirements set out in this section.

B. When an incumbent of a district board of education files a notification and declaration of candidacy for reelection to the district board of education, the member shall not be required to comply with the provisions of subsection A of this section but shall be required to agree and pledge in writing that upon reelection the member will complete six (6) hours of instruction, within fifteen (15) months of election, emphasizing changes in school law, particularly changes in the areas set forth in subsection A of this section.

C. The State Department of Education shall, immediately after the annual elections of various district board of education members, determine the members of the district boards of education pledged to complete the instructional requirements established in subsections A and B of this section, and shall notify the members of the time and place where workshops, classes and seminars are to be conducted. Upon completion of the instructional requirements, the certificate of completion shall be included in the public records of the school board’s minutes. Each school board member, except for an incumbent member, shall be required within fifteen (15) months following or preceding election to complete the workshop established by subsection A of this section or to attend twelve (12) hours of other state workshops, classes or seminars conducted as instruction on the subjects of school finance, the Oklahoma School Code and related laws, and the ethics, duties and responsibilities of district board of education members.

D. If a school board member, including an incumbent member, has not satisfied the instructional requirements as set forth in this section within fifteen (15) months of election, reelection or appointment, the district board of education shall declare the seat of the member vacant and fill the vacancy according to law. A school board member who is required to vacate a school board seat pursuant to this subsection shall be ineligible to be reappointed or to run for reelection to that respective board seat on the school district board of education or to run for election to any other board seat on the board of education for a three-year period for three-member boards, for a four-year period for seven-member boards or for a five-year period for five-member boards.

E. All government departments, agencies and institutions of this state are directed to lend assistance as may be required by the State Department of Education for the proper conduct and administration of the workshops as authorized in subsection A of this section. The State Department of Education shall maintain a permanent record of each district board of education member who successfully completes a workshop and shall issue a certificate of completion to the member.

F. The State Department of Education, the Oklahoma Department of Career and Technology Education, and, upon approval of the State Board of Education, any organization or association representing district boards of education in this state are authorized to charge persons pledged to attend a workshop, class of seminar for purposes of meeting the instructional requirements of this section, a registration fee sufficient to defray the estimated costs of presenting the workshop, class or seminar and to collect the fees at the time of registration.

G. Any member of a district board of education or any individual elected, certified as the elected member by the county election board, but not sworn in and seated as a member of a district board of education at the time of a workshop, class or seminar presented by the State Board of Education, the Oklahoma Department of Career and Technology Education, or an organization or association representing district boards of education within the state who attends and successfully completes a workshop, class or seminar as required by subsection A or B of this section shall be reimbursed by the school district in accordance with the travel reimbursement policy of the district.

Section 58. Continuing Education for Board Members - Registration Fees - Reimbursement. (70 O.S. § 5-110.1)

A. In addition to the requirements of Section 5-110 of this title, every member of a school district board of education elected to a full term of office of five (5) years or more shall be required to attend a minimum of fifteen (15) hours of continuing education, each member elected to a full four-year term of office shall be required to attend a minimum of twelve (12) hours of continuing education, and each member elected to a full three-year term of office shall be required to attend a minimum of nine (9) hours of continuing education, prior to the date set for filing for reelection to that respective board seat. The continuing education courses, workshops, seminars, conferences, and conventions which shall satisfy the continuing education requirement shall be approved jointly by the State Department of Education and the Oklahoma Department of Career and Technology Education.

B. Local and state continuing education programs conducted pursuant to the provisions of this section shall be held in all regions of the state at institutions of higher learning, area technology centers or other approved sites. Notice of such courses and seminars shall be provided to all school board members and to the public schools.

C. This section shall not apply to those school board members who file for reelection prior to July 1, 1991.

D. Failure by a board member to satisfy the continuing education requirements of this section shall result in the ineligibility of the member to be reappointed or run for reelection to that respective board seat on the school district board of education or to run for election to any other board seat on the board of education for a three-year period for three-member boards, for a four-year period for seven-member boards or for a five-year period for five-member boards.

E. The State Department of Education, the Oklahoma Department of Career and Technology Education, and any organization approved by the State Board of Education, including but not limited to institutions of higher education, may charge persons attending continuing education courses a registration fee sufficient to defray the estimated costs of presenting the course. The registration fees for each course shall be announced prior to the date of such course.

F. Any member of a school district board of education who attends and completes a course which satisfies in part or in full the requirements of this section shall be reimbursed by the school district for expenses incurred. In addition, a school district board of education may reimburse members of the board of education for expenses incurred in registering and attending board member training programs or activities approved by the board which are in addition to the minimum school board training requirements established by law.

If an incumbent member of a board of education fails to satisfy the 15-hour continuing education requirement during any full term of office, that board member is ineligible to run for reelection. If, however, no one challenges his/her candidacy and the member is reelected, the member is eligible to hold office. Once reelected, the school board member possesses a proper certificate of election, and the school board cannot refuse to seat the member. Even if the re-elected incumbent member holds office illegally, the actions taken by the board are valid. July 16, 2001 (AG Op. No. 01-33)

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Section 59. Records of Attendance. (70 O.S. § 5-110.2)

The State Board of Education shall maintain records of attendance by school board members at continuing education events required pursuant to Sections 5-110 and 5-110.1 of this title and prior to the final opportunity for each school board member who has not completed the continuing education requirements to complete the same, shall notify the school board member by mail of any final opportunity to complete these requirements.

Section 60. Relation by Affinity or Consanguinity - Prohibition. (70 O.S. § 5-113)

A. No person shall be eligible to be a candidate for or serve on a board of education if the person is currently employed by the school district governed by that board of education or is related within the second degree by affinity or consanguinity to any other member of the board of education or to any employee of the school district governed by the board of education. The purpose of this section is both to prohibit persons who are related within the second degree by affinity or consanguinity from serving simultaneously on the same board of education of any school district of this state and to prohibit persons who are related within the second degree of consanguinity or affinity to an employee of a school district from serving on the board of education governing the school district while such relative is employed.

B. If the relationship is based on affinity, the prohibitions in this section shall not apply to prevent members of boards of education who are serving on September 1, 1995, from serving the term for which they were elected or from serving successive terms for which they may be elected, unless it is the member's spouse who is a member of the board of education or an employee of the school district, then such prohibitions shall apply.

C. The prohibitions set forth in this section shall not apply if the person related to the board member within the second degree of affinity or consanguinity is employed as a substitute teacher by the school district pursuant to the provisions of Section 6-105 of this title or as a temporary substitute support employee if the school district has an Average Daily Membership (ADM) of less than five thousand (5,000).

D. Any member of a board of education who violates the provisions of this section shall be subject to the penalties prescribed by Sections 485 and 486 of Title 21 of the Oklahoma Statutes.

Note: Enrolled Senate Concurrent Resolution No. 45 of the 1996 Reg. Sess. states that it is the intent of the Oklahoma State Legislature that the amendments contained in Section 60 above not be interpreted to apply retroactively so as to prevent board members who were serving on the effective date of such act and who have a spouse who is a member of the board or an employee of the school district, from serving the remainder of the term for which such board members were elected.

The second degree of relationship includes a spouse, child, child’s spouse, parent, parent’s spouse, grandchild, grandchild’s spouse, grandparent, grandparent’s spouse, brother, brother’s spouse, sister, sister’s spouse, spouse’s child, spouse’s parent, spouse’s grandchild, spouse’s grandparent, spouse’s brother, and spouse’s sister.

Section 5-113 is constitutional. The state’s interest in avoiding conflicts of interest, avoiding favoritism and the appearance of favoritism, is sufficient to uphold the legitimate regulation of candidacy. While this Court holds sacred the right to vote and to participate in the political process as a candidate, we also recognize that the latter is not an absolute nor fundamental right, but that the state may impose reasonable, non-discriminatory regulations. We find Section 5-113 to be one of these reasonable, non-discriminatory impositions. Sharp v. Tulsa County Election Board, 890 P.2d 836 (Okla.1994)

Section 5-113 specifically states who is ineligible for candidacy. Section 5-113.1 specifically states who may be employed by the school district. Section 5-113.1 states that it is not to be construed to prevent an individual from being a candidate. But that statement does not lend itself to allowing family members to be candidates for school board. Instead it is an acknowledgment that school board eligibility requirements are governed by a separate statute, namely Section 5-113. In fact, it is clear that the intent behind Section 5-113 was to determine and set forth the eligibility requirements for individuals seeking to run for a seat on the school board. The two provisions are consistent with one another. Sharp v. Tulsa County Election Board, 890 P.2d 836 (Okla.1994)

The provisions of 70 O.S. Supp. 1992, §5-113, which provide that no person shall be eligible to be a candidate to serve on a board of education if he or she (1) is currently employed by the school district governed by the board of education, or (2) is related within the second degree by affinity or consanguinity to any other member of the board of education, or (3) is related within the second degree by affinity or consanguinity to any employee of the school district governed by the board, do not constitutionally restrict a person’s right to be a candidate for public office. January 11, 1983 (AG Op. No. 92-19)

Person may serve on board of education of independent school district while spouse is serving on a separate board of education of an area vocational-technical school district. August 31, 1983 (AG Op. No. 83-177)

Marriage of a board member’s daughter to a member’s nephew is not relationship of affinity or consanguinity of board members. AG Op. January 9, 1976

Member of board of education elected in 1961 ceased to be de jure member when he married sister of board member elected in 1961, but such marriage did not disqualify latter member from continuing to serve. AG Op. August 10, 1962 Person elected as member of board of education cannot qualify for such office while his aunt is serving on the board of education and office becomes vacant upon expiration of 30 days, unless his aunt resigns before expiration of such 30-day period. AG Op. April 9, 1953

No conflict between statute prohibiting relatives within the third degree from serving on the same board of education, and the nepotism law prohibiting public officers from employing relatives within the third degree. AG Op. March 4, 1953

Where “A” was a school board member before the school election in March and at the March election of that year, his father-in-law, “B” was elected to that board and in the following year “A’s” term of office expired and he was re-elected, “A” would be legally entitled to serve as a member of said board and “B,” his father-in-law, would not be eligible to serve. AG Op. August 8, 1941

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Section 61. Employment of Relative of Member of Board of Education. (70 O.S. § 5-113.1)

A. Except as otherwise provided in this section, no person may be employed or put under contract by a school district if that person is related to a member of the board of education of that school district within the second degree of consanguinity or affinity. A teacher or employee already under contract to or otherwise employed by the school district at the time the relationship is established may continue in said employment. Except as otherwise provided, a board member already serving at the time the relationship is established may serve out the term for which the member was elected but shall not be eligible to be a candidate for or serve successive terms of office for which the member may be elected.

B. The provisions of this section shall not prevent a board member from serving successive terms of office if otherwise eligible under the provision of Section 5-113 of this title. No member of the board of education who has resigned from the board before the term of the person has expired may be reappointed to the board to complete the remainder of the term if a teacher or employee related to the resigned member of the board within the second degree of consanguinity or affinity was put under contract or otherwise employed by the school district after the board member resigned.

C. The provisions of this section shall not prevent a person who is related to a member of the board of education within the second degree of consanguinity or affinity from being employed by the school district as a substitute teacher pursuant to the provisions of Section 6-105 of this title or as a temporary substitute support employee if the school district has an Average Daily Membership (ADM) of less than five thousand (5,000).

D. Any member of a board of education who is related to a teacher or other employee of the district within the second degree of consanguinity or affinity shall not attend or participate in any regular or executive session of the board held to consider any personnel matter or litigation relating to said teacher or employee. The member may vote on collective bargaining agreements or the renewal of contracts as a group if the vote is necessary to form a quorum of the board of education members. If more than one member of the board of education is related to a teacher or employee, only the minimum number of those members which is necessary to form a quorum shall be allowed to vote. Each board of education so affected shall adopt a written policy establishing procedures on when such a member may vote on the renewal of contracts or collective bargaining agreements.

E. Any member of a board of education who violates the provisions of this section shall be subject to the penalties prescribed by Sections 485 and 486 of Title 21 of the Oklahoma Statutes.

Note: See Section 732 for additional annotations regarding prohibited relationships.

Section 5-113 specifically states who is ineligible for candidacy. Section 5-113.1 specifically states who may be employed by the school district. Section 5-113.1 states that it is not to be construed to prevent a individual from being a candidate. But that statement does not lend itself to allowing family members to be candidates for school board. Instead it is an acknowledgment that school board eligibility requirements are governed by a separate statute, namely Section 5-113. In fact, it is clear that the intent behind Section 5-113 was to determine and set forth the eligibility requirements for individuals seeking to run for a seat on the school board. The two provisions are consistent with one another. Sharp v. Tulsa County Election Board, 890 P.2d 836 (Okla.1994)

School district may approve a cooperative agreement with Department of Human Services (“DHS”) even if DHS intends to assign an employee who is spouse of board member to perform services required under the agreement. March 30, 2004 (AG Op. No. 04-11).

Appointment of board member’s wife to Staff Development Committee violates nepotism statutes. January 27, 1982 (AG Op. No. 81-288)

Section 62. Excluding Litigious Board Member from Proceedings. (70 O.S. § 5-113.2)

Any school board member who, before serving or while serving on the board of education, initiated litigation against the school district, school board of education, or an individual board member of the board of education on which he/she serves, or who is a governing member of a group, organization, or entity that has authorized and initiated litigation against that school district, school board of education, or an individual board member of the board of education on which he/she serves, may be excluded upon a majority vote of the board members from any executive session where the litigation is discussed or from any other form of participation in the board’s defense of the litigation, including any vote on issues related to that legal action.

A member of the board of education may be excluded from participation and attendance at regular and executive sessions where personnel and litigation matters concerning his/her relative are subject to discussion and/or possible board action. This exclusion includes matters which affect other employees and/or teachers if the relative of the board member is included in such class. However, the member is free to attend and participate in other agenda items during regular and executive sessions even if they take place during the same meeting of the board as the excluded activity. June 23, 1991 (AG Inf. Op. No. 91-659)

Section 63. School District Treasurer - Assistant Local Treasurer. (70 O.S. § 5-114)

A. The county treasurer of each county shall be the treasurer of all school districts in the county, except that the board of education of a school district may appoint a local treasurer for the school district and, in its discretion, an assistant local treasurer of the district, each of whom shall serve at the pleasure of the board for such compensation as the board may determine. The assistant local treasurer may perform any of the duties and exercise any of the powers of the local treasurer with the same force and effect as if the same were done or performed by the local treasurer. Before entering upon the discharge of the duties of the assistant treasurer, the assistant treasurer shall give a bond in such amount as the board of education may designate, with good and sufficient sureties to be approved by the board, conditioned for the faithful performance of his or her duties. A local treasurer or assistant local treasurer need not be a resident of the school district where appointed to serve although any local treasurer or assistant local treasurer shall be a resident of this state. Nothing herein shall prevent a local treasurer or assistant local treasurer from being appointed for more than one school district.

B. Whenever a county treasurer is designated as the treasurer for a school district, the county treasurer may elect to charge for such services. If said charges are assessed, the treasurer shall prepare a special estimate of needs each fiscal year, covering all expenditures of the office on behalf of any school districts for which the county treasurer serves as treasurer. The estimate for treasurer services shall be itemized by personal services and maintenance and operation expenditures and shall be filed with the county excise board. In reviewing and approving this estimate, the county excise board shall authorize and levy amounts for treasurer services which in the judgment of the board will be sufficient to perform the services. The board shall apportion the cost among the school districts for which the treasurer services are to be charged in the ratio which each school district’s total appropriations for the preceding year bears to the total appropriations of all such school districts receiving treasurer services for the preceding year. The amounts shall be included in, or added to, the estimates of needs or budget of each such school district. The amount as approved and appropriated by the county excise board shall be paid by the school district, by appropriate warrants, to the county for deposit in the county general fund.

County Treasurer serves as Treasurer of area school district, without additional bond, unless board of education appoints local Treasurer. AG Op. September 25, 1968

School District treasurer must handle Federal funds for vocational work-study programs allocated to district to provide employment to students needing earnings to continue to work toward their vocational objectives. AG Op. April 19, 1966

County Treasurer can pay warrant not bearing personal endorsement of payee. AG Op. March 3, 1959

Only duty of school district treasurer in registering warrant is to determine whether warrant is within appropriation, and he has no duty to determine whether warrant, regular on its face, was issued in payment of a lawful claim. AG Op. December 14, 1955

School District electors cannot elect the school district treasurer. AG Op. February 17, 1951

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

Section 64. Local Treasurer - Surety Bond - Duties - Cash and Investment Ledgers. (70 O.S. § 5-115)

A. Unless the context clearly shows otherwise, the term “treasurer”, as used in this section, includes a county treasurer acting as the treasurer of a school district pursuant to the provisions of Section 5-114 of this title. The treasurer so appointed shall execute, before entering upon the duties of the office of the treasurer, a surety bond in an amount which it is estimated by the board of education the treasurer will have on hand at any one time during the current year, and the amount of securities held as investments shall not be considered. The board of education is empowered to require the treasurer to increase or decrease the bond of the treasurer as the amount of funds on hand may require. Provided, the bond of a school district shall not, in any event, be required to be in an amount greater than that of the county treasurer of the county. The premium on the bond shall be paid by the board of education out of district funds. Provided, however, the treasurer of such district shall require the depository wherein school district funds are deposited to insure or guarantee the deposit by proper securities, which shall be of the same class of securities as are required to insure deposits of county treasurers of the various counties, and the securities shall be pledged, taken and kept in the manner provided by Sections 517.1 through 517.7 of Title 62 of the Oklahoma Statutes.

B. In all districts which are permitted by law to select a local treasurer, the county treasurer shall act as treasurer thereof until such time as a local treasurer shall be appointed and has executed the surety bond required by this section. In no instance in which the county treasurer is the treasurer of any school district shall any additional bond be required, but the official bond of the county treasurer shall stand for any and all funds and securities coming into the hands of the county treasurer.

C. The local treasurer of a district, when required by the board of education, shall prepare and submit in writing a report of the condition of the finances of the district and shall produce at any meeting of the board or to any committee appointed for the purpose of examining the accounts of the treasurer all books and papers pertaining to the office of the treasurer. Upon failure to make reports as provided for herein or as may otherwise be required by law, the board may at any regular or special meeting thereof summarily suspend the treasurer, and while so suspended the treasurer shall perform no act pertaining to the office of the treasurer. Such suspension shall continue until ended by order of the board or by judgment of a court of competent jurisdiction.

D. The local treasurer of a school district shall keep a separate cash ledger for each fund in the custody of the treasurer. The local treasurer shall enter each collection and disbursement in the cash ledger of the applicable fund by recording the date and classification of each transaction and such other information as may be deemed desirable. Additional ledgers shall also be maintained to record the investments made from each fund. Such investment ledgers shall disclose the date, description and principal amount paid for each investment purchased and the date and principal amount received for each investment liquidated.

E. Upon suspension by the board, the treasurer shall immediately turn over to the board of education or to the acting treasurer if one has been appointed by the board all books and papers and other property pertaining to the office of the treasurer.

F. Except as otherwise provided by law, no treasurer of any district shall pay out school district funds in the care of the treasurer except upon warrants signed by the proper school district officials authorized by the law to sign such warrants, provided, this restriction shall not apply to sinking funds or to the investment of school district funds. Authorized sinking fund payments and payment for investments or receipt of liquidated investments may be made by check, wire transfer or other instrument or method through the Federal Reserve System.

G. The board of education shall, each month, set aside funds to an operating account and to an investment account. Investments by the treasurer shall be made in accordance with a written policy adopted by the board of education. The written investment policy shall address liquidity, diversification, safety of principal, yield, maturity, quality of the instrument, and capability of investment management. Acting within the investment policy, the treasurer shall place primary emphasis on safety and liquidity in the investment of funds. Taking into account the need to use sound investment judgment, school districts shall, to the extent practicable, use competitive bids when they purchase direct obligations of the United States Government or other obligations of the United States Government, its agencies or instrumentalities. Such system shall be designed to maximize yield within each class of investment instrument, consistent with the safety of the funds invested. The board of education must review the investment performance of the treasurer on a regular basis and no less than each month. The treasurer of every school district shall invest the full amount of the investment account in:

1. Direct obligations of the United States Government to the payment of which the full faith and credit of the Government of the United States is pledged; provided, a treasurer of a school district who has completed the program pursuant to the provisions of subsection H of this section may invest funds in the investment account in other obligations of the United States Government, its agencies or instrumentalities;

2. Obligations to the payment of which the full faith and credit of this state is pledged;

3. Certificates of deposits of banks when such certificates of deposits are secured by acceptable collateral as in the deposit of other public monies;

4. Savings accounts or savings certificates of savings and loan associations to the extent that such accounts or certificates are fully insured by the Federal Savings and Loan Insurance Corporation. Provided, that the income received from the investments may be placed in the general fund of the governmental subdivision to be used for general governmental operations;

5. Repurchase agreements that have underlying collateral consisting of those items specified in paragraphs 1 and 2 of this subsection including obligations of the United States, its agencies and instrumentalities, and where the collateral has been deposited with a trustee or custodian bank in an irrevocable trust or escrow account established for such purposes;

6. County, municipal or school district direct debt obligations for which an ad valorem tax may be levied or bond and revenue anticipation notes, money judgments against such county, municipality or school district ordered by a court of record or bonds or bond and revenue anticipation notes issued by a public trust for which such county, municipality or school district is a beneficiary thereof. All collateral pledged to secure public funds shall be valued at no more than market value. The income received from an investment may be placed in the general fund of the governmental subdivision to be used for general governmental operations, the sinking fund, the building fund, or the fund from which the investment was made;

7. Money market mutual funds regulated by the Securities and Exchange Commission and which investments consist of obligations of the United States, its agencies and instrumentalities, and investments in those items and those restrictions specified in paragraphs 1 through 6 of this subsection;

8. Warrants, bonds or judgments of the school district; or

9. Qualified pooled investment programs, the investments of which consist of those items specified in paragraphs 1 through 8 of this subsection, as well as obligations of the United States agencies and instrumentalities, regardless of the size of the district’s budget. To be qualified, a pooled investment program for school funds must be governed through an interlocal cooperative agreement formed pursuant to Section 5-117b of this title, and the program must competitively select its investment advisors and other professionals. Any pooled investment program used must be approved by the board of education; or

10. Investment programs administered by the State Treasurer.

H. The board of education is hereby empowered to require the treasurer to satisfactorily complete an investment education program approved by the State Board of Education and the State Board of Career and Technology Education. Such program shall be designed to allow treasurers to make informed decisions regarding the safety, return, liquidity, costs and benefits of various investment options allowed under this section.

I. The income received on an investment may be placed in the fund from which the investment was made, the general fund, the building fund, or the sinking fund.

See Sections 646.2-646.8, Security for Local Public Deposits Act. See also Sections 663 & 664, Sinking Fund.

The statutory provision allowing a school treasurer to allocate interest earned on the building fund or the sinking fund violates Article X, Section 19 of the Oklahoma Constitution. October 2, 2000 (AG Op. No. 00-48) (non-binding advisory opinion).

School districts may not, as a general rule, deposit funds in financial institutions which are located outside the state; however, school districts may deposit district funds in building and loan associations, i.e., savings and loans, located outside of Oklahoma, so long as, and to the extent that, such deposits are federally insured [pursuant to 62-513]. June 24, 1991 (AG Inf. Op. No. 91-608)

School district treasurer (1) must invest funds held in investment account; (2) has authority to execute orders to buy and/or sell investment instruments through a licensed broker and pay a reasonable commission or fee for this service; (3) may permit a Federal Reserve bank or a registered broker or brokerage firm to hold investments for the district; and (4) may not invest in money market mutual funds. June 19, 1990 (AG Op. No. 89-64)

School District cannot establish payroll cash account by issuing purchase orders against accounts within General Fund, depositing warrants in payroll account, and writing payroll checks against payroll account. AG Op. June 23, 1972

County Treasurer serves as Treasurer of area school district, without additional bond, unless board of education appoints local Treasurer. AG Op. September 25, 1968

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

Section 65. Repealed.

Section 65.1. Payment of Warrants When Insufficient Funds. (70 O.S. § 5-115b)

Upon the expiration of the term of office, the treasurer shall deliver check or warrant registers to the succeeding treasurer, and each successor in office shall act as though check or warrant entries were registered by the successor, who shall continue registration of all district checks or warrants. If a check or warrant cannot be paid for want of sufficient funds, a district may enter into an agreement not to extend beyond the current fiscal year with the depository bank to honor payment of these checks at an annual rate of interest as negotiated by the district and depository bank, which shall not exceed a rate equal to five percent (5%) above the average United States Treasury Bill rate of the preceding calendar year as determined by the State Treasurer on the first regular business day of each year.

Section 66. Oath of Office. (70 O.S. § 5-116)

Each member of the board of education and the treasurer and assistant treasurer of a school district shall take and subscribe to the following oath:

“I, _____________________________ (Name of officer), hereby declare under oath that I will faithfully perform the duties of _______________________ (Name of position) of________________________ (Name of school district) to the best of my ability and that I will faithfully discharge all of the duties pertaining to said office and obey the Constitution and laws of the United States and Oklahoma.”

See also Section 742 for additional oath.

Section 67. Requirements for Bonds for Employees and Officers. (70 O.S. § 5-116a)

A. The superintendent and any financial officer of a school district shall be required to furnish a surety bond in the penal sum of not less than One Hundred Thousand Dollars ($100,000.00) or an amount otherwise set by law or set by the State Board of Education, to be approved as provided by law, and to assure the faithful performance of the duties of the covered officer and employees.

B. Whenever the superintendent or any officer or other employee of any school district is required to furnish a surety bond as a prerequisite to employment as provided for in this section or any other law, the requirement as to terms, conditions, penalty, amount or quality or type of surety shall be deemed to mean the furnishing of a separate bond or surety contract for each individual officer or employee, or the furnishing of a “blanket bond”. For purposes of this section, “blanket bond” means a school district officer and employees blanket position bond which covers all officers and employees up to the penalty of the bond for each officer and employee and the full penalty of the bond is always enforced during its term and no restoration is necessary and there is no additional premium after a loss is paid.

C. All surety bonds as required by this section or other laws shall be furnished by a company duly qualified under the insurance laws of this state and shall be purchased by the school district. Each surety bond shall be payable to the school district and, whenever possible, conditioned on the faithful performance of the duties of the individuals covered during their employment or term of office and that they will properly account for all monies and property received by virtue of their position or employment.

Section 67.1. Forfeited Bonds. (70 O.S. § 18-118.1)

A. When a bond is forfeited due to illegal activity of a school district officer or employee and an audit performed by the Office of the State Auditor and Inspector reported the illegal activity, the school district shall forward ten percent (10%) of the amount of the forfeited bond to the State Board of Education for deposit to the School Investigative Audit Revolving Fund.

1. Every person convicted of the crime of theft, embezzlement, conversion, or misappropriation of school district funds shall be assessed an amount equivalent to ten percent (10%) of any court-ordered restitution costs.

2. The assessment shall be mandatory and in addition to and not in lieu of any fines, restitution costs, other assessments, or forfeitures authorized or required by law for the offense. The assessment required by this subsection shall not be subject to any order of suspension. The court shall order either a lump-sum payment or establish a payment schedule.

3. Willful failure of the offender to comply with the payment schedule shall be considered contempt of court.

4. For purposes of collection, the assessment order shall not expire until paid in full, nor shall the assessment order be limited by the term of imprisonment prescribed by law for the offense, nor by any term of imprisonment imposed against the offender, whether suspended or actually served.

5. The assessment provided for in this subsection shall be collected by the court clerk as provided for collection of fines and costs. When assessment payments are collected by the court clerk pursuant to court order, the funds shall be forwarded to the State Board of Education for deposit into the School Investigative Audit Revolving Fund created by this section.

1. There is hereby created in the State Treasury a revolving fund for the State Board of Education to be designated the “School Investigative Audit Revolving Fund”. The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies paid to and received by the State Board of Education from school districts, officers, or employees for the performance of audits, for the forfeiture of bonds, or for assessments ordered in addition to court-ordered restitution costs, and monies appropriated or transferred to the fund by the Legislature.

2. All monies accruing to the credit of the fund are hereby appropriated and may be budgeted and expended by the State Board of Education to reimburse the Office of the State Auditor and Inspector for costs incurred in the performance of special audits conducted pursuant to the provisions of Section 213 of Title 74 of the Oklahoma Statutes.

3. Prior to approval of any payment from this fund, the State Board of Education shall determine that a school district that is liable for expenses incurred due to the performance of an audit is unable to pay such expenses. Payments from this fund shall only be made to the extent that monies are available in the fund. 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 State Finance for approval and payment.

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

Section 68. Powers and Duties. (70 O.S. § 5-117)

A. The board of education of each school district shall have power to:

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;

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 “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 therefor;

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 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

(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,

(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. 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 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. 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 without consideration. Prior to the sale of any real property, the board of education shall have the real property appraised. The appraisal 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;

12. Purchase necessary property, equipment, furniture, and supplies necessary to maintain and operate an adequate school system;

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;

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 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;

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 schoolsponsored 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.

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. 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 leasepurchase agreement. A school district may use 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” 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 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 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 act 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. (70-5-117)

ATHLETICS:

OSSAA is a voluntary organization. Absent fraudulent collusive, unreasonable, arbitrary or capricious decisional process, a court may not overturn a voluntary association’s enforcement of its rules. The Association must be allowed to enforce its rules and orders without undue interference by the courts. Morgan v. Oklahoma Secondary School Activities Association, 2009 OK 21, 207 P.3d 362.

School districts have the implied power to charge and collect broadcast rights fees. Oklahoma Sports Properties, Inc. v. ISD No. 11 of Tulsa County, 1998 OK CIV APP 40, 957 P.2d 137.

Where a school board has become a member of a voluntary association which regulates school activities the member school is bound by the association’s rules. A local school district which is a member of the voluntary association would be prohibited from promulgating a rule which requires students wishing to participate in a program of one hundred (100) hours of basketball practice during the summer when school is not in session, where school board rule is contrary to the rules of the voluntary association. June 3, 1987 (AG Op. No. 87-18)

Oklahoma Secondary School Activities Association rule placing age restriction on student’s eligibility for athletics is lawful. March 31, 1977 (AG Op. No. 77-126)

BENEFITS:

A board of education may adopt a written policy for reimbursement of travel expenses which includes allowing per diem meal expense reimbursement to employees and members of the board, subject to the documentation requirements of the State Travel Reimbursement Act. January 29, 1999 (AG Op. No. 98–42)

A school board is without authority to pay moving expenses of teachers and administrators hired by the school district. However, this would not preclude a district from agreeing to increase the salary for the incoming administrator in an amount related to his proposed moving expenses. Since school districts have some latitude in their authority to negotiate contracts, the negotiation for a salary that includes monies to cover moving expenses would not be prohibited. September 27, 1991 (AG Inf. Op. No. 91-571)

A school district may reimburse a teacher for itemized and documented travel expenses provided such expenses are related to the teacher’s duties as expressed in the contract with the school district. April 10, 1991 (AG Inf. Op. No. 90-670)

If the teacher’s attendance at such conference constitutes a contractual duty of the teacher, the reimbursement of itemized and documented expenses may be made. However, if the teacher attends such a conference on personal business leave as provided in 70 O.S. 1981, § 6-104, or on leave without pay as provided in 70 O.S. 1981, § 5-117 (A) (16) then the school district may not compensate the teacher for itemized and documented expenses. April 10, 1991 (AG Inf. Op. No. 90-670)

Independent school district may offer employees a “cafeteria plan” and select provider subject to statutory limitations on collective bargaining and purchasing procedures. Fees to offset the cost of administering such a plan may be collected from the companies providing the benefits. July 24, 1989 (AG Op. No. 88-43)

School districts may purchase health insurance for students if they meet the statutory definition of “employees.” February 6, 1990 (AG Op. No. 86-58)

A school board is without authority to pay moving expenses of teachers and administrators hired by the school district. October 1, 1970 (AG Op. No. 70-197)

BUILDINGS/CONSTRUCTION:

School district has statutory authority to rent privately owned classroom space. November 10, 1999 (AG Op. No. 99-73)

“Engineer in attendance” means engineer employed by School District who has assumed and is exercising the engineering functions of a construction project. July 2, 1979 (AG Op. No. 79-161)

District erecting building costing more than $40,000 and having engineer in attendance is not required to employ an architect. December 12, 1978 (AG Op. No. 78-306)

Amount contractor has not paid for labor and materials on public works project may be withheld from contractor’s current earnings on project. March 1, 1977 (AG Op. No. 77-309)

CONTRACTS:

A multi-year lease contract between a school district and a vendor which contains a nonappropriation clause is not authorized. A multi-year contract between a school district and a vendor must contain a provision for mutual ratification of renewal, which is contrary to the operation of a valid nonappropriation clause. April 27, 2005 (AG Op. No. 05-14)

Board of Education has authority to enter into a compromise or settlement in lawsuit pending against it. July 9, 1979 (AG Op. No. 79-191)

Interlocal Cooperation Act permits agreements between independent school district and city government when purpose behind agreement is to further efficient use of respective powers enjoyed by each. June 14, 1979 (AG Op. No. 79-147)

Lawful for board of education to contract with law firm on contingent fee basis. December 12, 1978 (AG Op. No. 78-158)

Const. X §26 and 70 O.S. 5-117 Nonappropriation addenda purporting to extend contract beyond current fiscal year is not sufficient to ratify or confirm renewal or extension for lease of photocopiers. District not liable for any payments owed or unpaid where unratified. Where school district accepted benefits of use of copier and vendor accepted payment, the parties mutually confirmed contract extensions. GE Capital Information Technology Solutions v. OKCPS, 2007 OK CIV APP 117

ELECTIONS/POLITICAL ACTIVITIES:

School boards have the implied power to lobby the Legislature, and power to lobby is essential to purpose of school board. Thus, a private association representing school board members may expend association funds to lobby the Legislature regardless of the fact that some of funds are derived from dues paid from public funds. May 13,1996 (AG Op. No. 95-14)

There is no statutory or constitutional authority for officials to use public funds to advocate a specific election result. Generally, public funds cannot be used to promote a specific election result unless there are particular factual circumstances which create an exception. Use of public funds to oppose or support matters referred to the voters by initiative or referendum is specifically prohibited by 26 O.S., §16-119. That statute, however, only applies to school bond elections that are referred to the voters by means of initiative or referendum. June 23, 1992 (AG Op. No. 91-27)

Constitution prohibits any person from displaying on a vehicle owned by a public school district a bumper sticker promoting a candidate for political office. October 28, 1986 (AG Op. No. 86-22)

School district funds may be expended to provide informational material concerning school bond elections; and medium by which material is provided is left to discretion of board of education. December 20, 1983 (AG Op. No. 83-115)

Political activities of school administrators and teachers in school board elections may be restricted by Board of Education. April 29, 1977 (AG Op. No. 77-142)

MISCELLANEOUS:

Oklahoma school districts lack the legal authority to enter into “swap” or “derivative financial product” agreements, as that power is beyond that necessary or implied to carry out the powers expressly granted to school districts. November 28, 2005 (AG OP No 05-43)

A school district which is the subject of a grand jury investigation has the authority to hire legal counsel to represent and advise it with regard to the grand jury proceedings and the matters being investigated. Such authority includes the authority to have legal counsel advise and assist individual members of the board of education and employees of the district to the extent that those individuals are acting and have acted in good faith in the course of their employment. July 26, 1996 (AG Op. No. 96-43)

Statute requiring State-owned automobiles to have certain markings does not apply to automobiles owned by school districts or area school districts. January 27, 1984 (AG Op. No. 83-86)

Advertising merits of an institution by schools furnishing common education is unauthorized. October 20, 1980 (AG Op. No. 80-236)

Cost of publication and informational requirements of Title 74, Sections 3103 and 3015 Okla. Stat., do not apply to school districts. April 4, 1980 (AG Op. No. 80-61)

Surrogate parent of handicapped child receiving educational services is not insulated from legal liability for failure to exercise reasonably care in performance of duties undertaken for the child. April 30, 1979 (AG Op. No. 79-84)

State may not lawfully administer or otherwise provide educational services for private school children under Title IV programs. April 30, 1979 (AG Op. No. 79-60)

Political subdivisions are not exempt from collecting and remitting sales tax on sales made by such political subdivisions. March 31, 1977 (AG Op. No. 77-107)

Fee may not be charged for any course or activity, whether “required” or “nonrequired” course or activity. January 28, 1977 (AG Op. No. 76-322)

Parking fees may be charged by District for student vehicles. January 28, 1977 (AG Op. No. 76-322)

POWERS OF BOARD IN GENERAL:

A school district is authorized to expend monies to effectuate the purposes of the district and is not prohibited from using credit cards as a method of payment. June 27, 2001 (AG Op. No. 01-30)

Member of school district’s board of education has no statutory authority to encumber funds or expend funds solely on own initiative. Board may, by majority vote at lawfully called meeting, ratify unilateral action of board member. May 26, 2000 (AG Op. No. 00-32).

A school board does not have either the express or implied power to appropriate public funds in support of a local school foundation. To construe the statutes as allowing a board such power would violate the Constitutional provision prohibiting the Legislature from authorizing a school district to appropriate money or loan its credit to any corporation, association, or individual. May 20, 1998 (AG Op. No. 98-7).

A school district has no authority to reimburse an individual school board member for legal expenses incurred in defending criminal charges brought against the member for alleged violations during the performance of the member’s duties even if the charges are dismissed. January 29, 1997 (AG Op. No. 96-101)

Formal board approval of a contract for services was not required because 1) the contract was made by a “proper officer” in carrying out the officer’s express authority; 2) there was no fraud; 3) the existence of the contract and the receipt of services were disclosed to the Board by the submission of a purchase order; 4) partial payment of the contract was approved by the Board; and 5) the District received and retained the benefits of the contract. Education Service Center v. McLoud Public Schools, 932 P.2d 37 (Okla. App. 1996)

While the Oklahoma School Code does not directly address a reduction in force (RIF), a school district may exercise its express powers and eliminate a subject from a curriculum if it is deemed best suited to the needs of the district. Patterson v. Board of Education of Francis Tuttle Vocational Technical School District No. 21, 894 P.2d 433 (Okla. App. 1994)

School board has and can exercise those powers that are granted in express words, that are fairly implied in or necessarily incidental to the powers expressly granted, and that are essential to the declared objects and purposes of the corporation. Carlyle v. ISD No. I-71, 811 P.2d 618 (Okla. App. 1991)

A school district is without power to act as a motor vehicle license agent. December 18, 1986 (AG Op. No. 86-109)

School districts’ duties and powers are established by statute and do not include installation and maintenance of traffic control devices or measures, lighting, or police protection on public streets. Ochoa v. Taylor, 635 P.2d 604 (Okla.1981)

School boards may not exercise unrestricted authority over persons; school boards possess only that power derived from statutory enactment. ISD No. 8 v. Swanson, 553 P.2d 496 (Okla.1976)

PROPERTY:

While a consolidated or annexed school district may not lawfully convey real property to an Oklahoma institution of higher education or a college technology center school district without consideration, it may lawfully convey real property to an technology center school district, established pursuant to 70 O.S. Supp.2008, §14-108, without consideration. (AG Op. No. 09-2)

A school district may not lawfully pay interest on its lease-purchase obligations from the proceeds of bonds issued pursuant to Okla. Const. art. X, § 26, but must pay such interest from money available in the district's general fund or its capital improvement fund. December 19, 2007 (AG Op. No. 07-42)

When annexation of a school district occurs, the annexing school district can convey real property to a municipality or other local political subdivision in which the property is located without consideration. August 31, 1998 (AG Op. No. 98-17)

Local school board is only one to exercise control over school property; board may grant permission for municipal annexation of school property. November 10, 1994 (AG Op. No. 94-015)

Where lease-purchase contract exists between private party as lessor and state agency or political subdivision as lessee and contractual obligations must be performed within the year, the lessor holds merely a lien on property and governmental body is owner, making property exempt from ad valorem taxation. March 16, 1989 (AG Op. No. 88-73)

District receiving Government surplus property may sell such property to private individuals or interests if property has become surplus to needs of the district and sale is conducted so as to produce highest and best price. September 10, 1982 (AG Op. No. 82-160)

Retail liquor store cannot be established within 300 feet of property used by a public school for school purposes, whether or not a school building is located on the property. March 10, 1982 (AG Op. No. 82-70)

District can sell mineral interests located beneath school-owned property and has discretion in selecting manner of sale. November 23, 1981 (AG Op. No. 81-175)

A “public sale” of school district property to a nonprofit charitable or public educational corporation under this Section requires notice and an opportunity to bid to the public, but the notice should inform the public of the terms and conditions of the sale, including qualifications and restrictions in statute. December 23, 1980 (AG Op. No. 80-286)

City or city library board is not a “nonprofit charitable or public educational corporation” for purposes of public sale under this Section. December 23, 1980 (AG Op. No. 80-286)

Conveyances under this Section must be supported by adequate consideration determined by all circumstances and conditions surrounding transaction. December 23, 1980 (AG Op. No. 80-286)

Lease-rental agreement may provide rate of interest not to exceed 10%; if rate is not stipulated in agreement, rate is 6%. November 5, 1976 (AG Op. No. 76-324)

Land owned by School District cannot be conveyed as a gift, to a city. September 30, 1976 (AG Op. No. 76-300)

Retail liquor store cannot be located in same block as church or school, and block is defined by reference to intersecting streets and not a linear measurement in feet. June 11, 1979 (AG Op. No. 79-193)

STUDENTS:

Board of Education can authorize use of students to grade papers and tests of other students. April 27, 1983 (AG Op. No. 83-66)

Area of student conduct is within rule-making power of local school boards. ISD No. 8 v. Swanson, 553 P.2d 496 (Okla.1976)

TEACHERS/EMPLOYEES:

Nothing in the United States Constitution, applicable statutes or Oklahoma case law prohibits a school district from implementing a dress code policy for employees. To be valid, a dress code must have a reasonable connection to the education function, and it must be necessary to create and preserve a proper atmosphere for learning. December 30, 1993 (AG Inf. Op. No. 93-509)

Any regulation promulgated by a school board prohibiting outside employment by teachers and school personnel must serve a legitimate state purpose. A prohibition against pursuit of outside employment is not, per se, impermissible; its appropriateness would be determined by the particular facts and circumstances of the situation. March 25, 1992 (AG Inf. Op. No. 91-635)

Board of education’s authority to establish mandatory retirement age is not express, is not necessarily incidental to, and cannot be implied from provisions providing authority for adopting personnel policies; authority to establish mandatory retirement age is not essential to declared objects and purposes of school. Carlyle v. ISD No. 1-71, 811 P.2d 618 (Okla. App. 1991)

School board may not abdicate power to admonish, suspend, dismiss, or not reemploy teacher; such power is vested by statute and may not be submitted as part of binding arbitration. Raines v. ISD No. 6, 796 P.2d 303 (Okla. 1990)

Decisions statutorily vested in the exclusive authority and discretion of the school board including the decision to nonrenew the employment of a probationary teacher cannot be subject to binding arbitration pursuant to a collective bargaining agreement. Mindemann v. ISD No. 6, 771 P.2d 996 (Okla. 1989)

Legislator cannot be employed by a school district as a teacher when he is paid from State-appointed funds. August 11, 1982 (AG Op. No. 82-48)

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

Section 69. Manufacturers and Countries of Origin - Disclosure. (70 O.S. § 5-117a)

A. Any board of education for a school district may require each bidder for a school district contract for supplies, equipment or materials to provide information as to the manufacturer and country of origin of any supplies, equipment or materials for the school district as specified by labels attached to the supplies, equipment or materials where such identification is required by federal or state law.

B. Any school district contract for the purchase of supplies, equipment or materials may require the contractor to obtain from all of his subcontractors information as to the manufacturer and country or countries of origin of any such supplies, equipment or materials provided to the school district as specified by labels attached to the supplies, equipment or materials where such identification is required by federal or state law.

C. The provisions of this section shall not apply to:

1. Component parts or accessories; or

2. The purchase of supplies, equipment or material by any board of education, if such purchase is made through an open market contract or a statewide contract executed by the Department of Central Services.

Section 70. Interlocal Cooperative Agreements Between School Districts. (70 O.S. § 5-117b)

A. The boards of education of any two or more school districts may enter into an interlocal cooperative agreement for the purpose of jointly and comparatively performing any of the services, duties, functions, activities, obligations or responsibilities which are authorized or required by law to be performed by school districts of this state. Two or more school districts may enter into an interlocal cooperative agreement for the purpose of forming buying pools and purchasing cooperatives. As used in this section, “interlocal cooperative agreement” means an agreement which is entered into by the boards of education of two or more school districts pursuant to the provisions of this section. This section shall not prohibit school districts from entering into cooperative agreements authorized under Section 5-117 of this title or interfere with existing cooperative agreements between school districts. If the boards of education of any two or more school districts enter into an interlocal cooperative agreement the following conditions may apply:

1. An interlocal cooperative agreement shall establish a board of directors which shall be responsible for administering the joint or cooperative undertaking. The agreement shall specify the organization, terms, and composition of, and manner of appointment to, the board of directors and shall make provision for restructuring or terminating the board upon partial or complete termination of the agreement. The board of directors shall be selected by the board of education of each contracting school district and may include but not be limited to a board member, administrator or teacher from each contracting school district. Vacancies in the membership of the board of directors shall be filled within thirty (30) days from the date of the vacancy in the manner specified in the agreement;

2. An interlocal cooperative agreement which is optional to school districts and shall be effective only after it is approved by the State Board of Education and the board of directors may be designated as a local education agency for some or all state and federal application, reporting and auditing procedures. An interlocal cooperative board of directors that has been designated as a local education agency shall comply with state and federal law and the regulations of the State Board of Education;

3. An interlocal cooperative agreement shall be subject to change or termination by a recommendation of the State Board of Education;

4. The duration of an interlocal cooperative agreement for joint or cooperative action in performing any of the services, duties, functions, activities, obligations or responsibilities, other than the provision of special education services, which are authorized or required by law of school districts in this state, shall be for a term of not less than one (1) year. Notice of intent of a school district to withdraw from the cooperative agreement must be given no later than March 15 for the ensuing school year;

5. An interlocal cooperative agreement shall specify the method or methods to be employed for disposing of property upon partial or complete termination of the agreement;

6. Within the limitations provided by law, an interlocal cooperative agreement may be changed or modified by majority consent of the interlocal cooperative board of directors;

7. Except as otherwise specifically provided in this section, any powers, privileges or authority exercised or capable of being exercised by any school district of this state, or by any board of education thereof, may be jointly exercised pursuant to the provisions of an interlocal cooperative agreement. Federal grant money, applied for on behalf of a school district, may be disbursed directly to a interlocal cooperative with the consent of the school districts comprising the interlocal cooperative. No powers, privileges or authority with respect to the levy and collection of taxes or the application for or receipt of State Aid formula money, or the issuance of bonds shall be created or effectuated for joint exercise pursuant to the provisions of an interlocal cooperative agreement; and

8. Payments from the general fund of each school district which enters into any interlocal cooperative agreement for the purpose of financing the joint or cooperative undertaking provided for by the agreement shall be operating expenses.

B. Nothing contained in this section shall be construed to abrogate, interfere with, impair, qualify or affect in any manner the exercise and enjoyment of all the powers, privileges and authority conferred upon school districts and boards of education by law, except that boards of education and school districts are required to comply with the provisions of this section when entering into an interlocal cooperative agreement that meets the definition of an interlocal cooperative agreement.

Note: Amended by SB 275, Sec. 1 of the 2011 Reg. Sess.

A school district cannot provide educational services outside of its boundaries and within the boundaries of another district for the students of the other district without a cooperative agreement or an interlocal agreement. June 5, 1996 (AG Op. No. 96-3)

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

Section 71. Cooperative Agreement with District in Adjacent State. (70 O.S. § 5-117.1)

The board of education of any school district in this state which is contiguous to any other school district located in an adjacent state is hereby authorized to enter into contracts with the board of education of the school district located in the adjacent state for the purpose of providing better educational opportunities for students residing in both school districts. Such contracts may provide for:

1. The transfer of students between the two school districts;

2. The payment and acceptance of transfer fees for students transferred between the two school districts, the amount of which will be agreed upon by the boards of education thereof;

3. The use of district-owned school buses to transport students to and from the schools operated in the school districts; and

4. Such other cooperative agreements as will be necessary to provide quality education for all students residing or attending schools in the school districts.

A board of education of any school district which is contiguous to a school district located in an adjacent state may enter into operative contract with the board of education of out of state school district. June 27, 1995 (AG Op. No. 95-2)

Section 71.1. Correctional Facilities May Be Allowed. (70 O.S. § 5-117.1a)

The board of education of a school district or a private school may, through a majority vote of the board, allow a correctional facility operated by the Department of Corrections, a county, a municipality, or a private corporation to operate within the areas restricted by Section 563 and 563.1 of Title 57 of the Oklahoma Statutes.

Note: See Sections 1003 and 1004.

Political subdivision is immune from liability based on implied or noncontractual indemnity. The political subdivision is not immune from contractually incurred indemnity obligations. The Estate of King v. Wagoner County Board of Commissioners, 2006 OK CIV APP 118, 146 P.3d 833

A school board may grant permission for a county to build a detached annex to the county jail even though the annex will be located within 1,000 feet of the school district. March 3, 1999 (AG p. No. 98-47)

Section 72. State Board of Education - Rules and Regulations. (70 O.S. § 5-117.2)

The State Board of Education is hereby authorized to adopt such rules and regulations as may be necessary to assist any school district located in this state in carrying out the provisions of Sections 5-117.1 and 5-117.3 of this title.

Section 73. Average Daily Attendance. (70 O.S. § 5-117.3)

Students who reside within the boundaries of a school district located in this state, but who have attended school in a contiguous school district located in an adjacent state, shall be included in the average daily attendance of the school district located in this state for the purpose of calculation and payment of all state aid and for distribution of all other revenue required by law to be apportioned on an average daily attendance basis.

Under no circumstances shall students who reside outside of the State of Oklahoma be counted as ADM for the purpose of calculation of State Aid in Oklahoma.

In calculating average daily attendance, an Oklahoma school district may include those students residing within boundaries of school district who attend school in school district located in adjacent state. June 27, 1995 (AG Op. No. 95-2)

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

Section 74. Adoption of Four-Year Improvement Plan by Board of Education. (70 O.S. § 5-117.4)

A. Each local board of education shall, after convening an advisory council that includes teachers and parents, and after holding at least one public hearing, adopt a six-year school improvement plan for the district. Each school improvement plan shall include stated goals that clearly delineate educational expectations, and shall be annually monitored and updated as necessary. The alternative education plan for the school district as required in subsection B of Section 1210.566 of this title shall be included in the school improvement plan. The plan shall also include a specific program of improvement through academic skill reinforcement and/or remediation pursuant to the provisions of the Oklahoma School Testing Program Act. The plan shall include an evaluation of the instructional program in the basic skills areas as specified in paragraphs 1 and 2 of subsection A of Section 11-103 of this title and specific plans whereby schools within the district will initiate the planning process of meeting or exceeding the accreditation requirements in Section 3-104.4 of this title. The six-year school improvement plan shall include a consideration of the feasibility of participation in any programs which consist of state exemption from educational-related statutes or rules.

B. As set forth in Section 1210.544 of this title, the State Board of Education shall establish a process to identify schools in the state that are consistently listed as persistently low-achieving schools in accordance with subsection (g) (6) of Section 1003 of Title I of the Elementary and Secondary Education Act of 1965 (ESEA), as amended. A school district board of education with a school identified as being among the persistently lowest-achieving schools in the state shall, in addition to the requirements set forth in Section 1210.544 of this title, submit an annual update to the school improvement plan to the State Board of Education. The annual update to the school improvement plan shall be submitted electronically.

C. The State Board of Education shall promulgate rules for monitoring compliance with the provisions of this section by school districts.

D. The State Department of Education shall provide training for regional accreditation officers in alternative education program compliance.

Section 75. Health Insurance Plan Required by School District. (70 O.S. § 5-117.5)

A. The board of education of each school district in this state shall provide a health insurance plan for the employees of the school district. School districts may obtain health and dental insurance coverage as provided for in the State and Education Employees Group Insurance Act or may obtain other health insurance coverage. Any school district that does not participate in the health and dental insurance plans offered through the State and Education Employees Group Insurance Act shall obtain health insurance coverage for the employees which provides open enrollment, and provide for the continuation of health insurance coverage, including supplemental Medicare insurance coverage, for those district employees who retire from said district after September 30, 1991 with a vested benefit in the Teachers’ Retirement System of Oklahoma. A retired person who begins receiving benefits from the Teachers’ Retirement System of Oklahoma after September 30, 1991, who retires from a school district that provides other health insurance coverage and who elects to continue said health insurance coverage shall pay to the school district the premium rate for the health insurance minus an amount equal to the premium rate of the Medicare supplement or the amount determined pursuant to subsection (4) of Section 1316.3 of Title 74 of the Oklahoma Statutes, whichever is less, which shall be paid by the Teachers’ Retirement System of Oklahoma to the school district. The school district shall remit to the health insurance coverage provider the total premium due less any uncollected amounts payable from retired school district employees or their qualified survivors.

B. A school district that participates in health insurance coverage other than the health insurance plan offered by the State and Education Employees Group Insurance Act shall not be required to pay any portion of the premiums for the employees or the dependents of the employees of said school district, except as may otherwise be provided by law. Unless a school district negotiates an agreement with its employees regarding health insurance pursuant to Sections 509.1 through 509.9 of this title, and to the extent that the agreement provides for the members of the recognized bargaining unit, a school district that participates in health insurance coverage other than the health insurance plan offered by the State and Education Employees Group Insurance Act is prohibited from acquiring additional or supplemental health or dental insurance for any board member, school superintendent or any other employee which is not available to all employees of said district, and said school district shall not pay a greater portion of the employee or dependent premium for any health or dental insurance plan or plans provided by said school district on behalf of any board member, school superintendent or employee than that portion paid on behalf of all participating employees of said district.

C. If a school district obtains health insurance coverage from a source other than through the State and Education Employees Group Insurance Act, the employees of the school district who would be eligible to participate in the health and dental plans may require the board of education of the school district to call an election to allow said employees to vote as to whether the school district shall participate in the health and dental insurance plans offered through the State and Education Employees Group Insurance Act. Upon the filing with the board of education of a petition calling for such an election which is signed by no less than thirty percent (30%) of the eligible employees of the school district, the board of education shall call an election for the purpose of determining whether the school district shall participate in the health and dental insurance plans offered through the State and Education Employees Group Insurance Act. The election shall be held within thirty (30) days of the filing of the petition. If a majority of those eligible employees voting at the election vote to participate in the health and dental insurance plans offered through the State and Education Employees Group Insurance Act, the board of education of the school district shall apply for such participation within thirty (30) days of the election.

D. If a school district does not have any health insurance coverage of the type required by this section that school district shall immediately be enrolled in the health and dental insurance plans offered through the State and Education Employees Group Insurance Act.

E. A carrier providing health insurance coverage for employees of a school district health insurance group which replaces a previous carrier for such school district employees shall provide coverage for each retired employee who is receiving a benefit or terminates employment with a vested benefit from the Teachers’ Retirement System of Oklahoma and who is enrolled in the health insurance group by the previous carrier at the time the previous carrier providing health insurance coverage is replaced. Notwithstanding any provision in this section to the contrary, any person who retires pursuant to the provisions of the Teachers’ Retirement System of Oklahoma prior to May 1, 1993, or terminates service with a vested benefit, pursuant to the provisions of the Teachers’ Retirement System of Oklahoma prior to May 1, 1993, may continue to participate in the health and dental plans authorized by the provision of the State and Education Employees Group Insurance Act.

F. In the event a school district ceases to exist, the assets and duties of said school district are transferred to one or more other school districts, said other school district or districts do not agree to employee all of the former employees of the school district that is ceasing to exist, and said former employees who are not being reemployed have rights under federal or state law to continue group insurance coverage, the school district receiving all or a portion of the assets and duties of the annexing school district having the largest general fund revenue for the most recent preceding fiscal year for which data is available shall provide group insurance coverage to said former employees not being retained during the period as required by law.

G. Any member of a district board of education who terminates service on or after July 1, 2002, who has served ten (10) or more years as a district board of education member in this state, and who is participating at the time of termination in a health and/or dental insurance plan offered by the school district, may elect upon termination of such service to continue participation in the health and/or dental insurance plan that the member was participating in at the time of termination. The election provided in this subsection shall be made within thirty (30) days from the date of the school board member’s termination of service. The school board member shall pay the full cost of the insurance premium for such after-termination coverage at the rate and pursuant to the terms and conditions of such health and/or dental plan.

A school district which does not participate in the state health insurance plan may not pay greater health insurance premiums for the superintendent than the premiums paid for other participating employees, regardless of the language in the superintendent’s contract. August 28, 1995 (AG Op. No. 95-57)

In determining whether private health insurance policies for school district employees are “comparable” to the state insurance plan, the amount of the premium is a necessary consideration. The proper measure of the premium to be considered in determining whether policies are “comparable” is the amount of premium paid by the employee. April 13, 1990 (AG Op. No. 90-3)

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

Section 75.1. Regulating Dogs on School District Property. (70 O.S. § 5-117.6)

The board of education of any school district which has property that lies outside the boundaries of a municipality may regulate or prohibit dogs from running at large on such property or on public property within five hundred (500) feet of such property, and cause the dogs to be impounded and may authorize the humane killing or disposal of such dogs. The board of education may contract for the control of such dogs.

Section 76. Meetings of Board - Executive Sessions Compensation of Members of Boards of Districts with ADA Exceeding 15,000 or Population Exceeding 100,000. (70 O.S. § 5-118)

Regular meetings of the board of education of each school district shall be held upon the first Monday of each month, or upon such day as may be fixed by the board. Special meetings may be held from time to time as circumstances may demand.

All meetings of the boards of education shall be public meetings, and in all such meetings the vote of each member must be publicly cast and recorded. Executive sessions will be permitted only for the purpose of discussing the employment, hiring, appointment, promotion, demotion, disciplining, or resignations of any or all of the employees or volunteers of the school district, and for the purpose of discussing negotiations concerning employees and representatives of employee groups, and for the purpose of hearing evidence and discussing the expulsion or suspension of a student or students only when requested by the student involved or his or her parent, attorney, or legal guardian; provided, however, that any vote or action thereon must be taken in a public meeting with the vote of each member publicly cast and recorded. It is required that the board of education shall provide notice to the student, his or her parent, attorney or legal guardian that said student is entitled to an executive session regarding the discussion of expulsion or suspension of said student.

Any action taken in violation of the provisions of this act shall be invalid.

Each member of the board of education of a school district with an average daily attendance exceeding fifteen thousand (15,000) or a school district where boundaries encompass a total population exceeding one hundred thousand (100,000) persons according to the last preceding Federal Decennial Census may be paid from the district's general fund a stipend of Twenty-five Dollars ($25.00) for each regular, special or adjourned meeting of the board of education that he or she attends, but not for more than four meetings in any calendar month.

Note: See Sec. 62 – Excluding Litigious Board Member from Proceedings.

Board of education, and not its president, determines place where board meetings will be held. AG Op. April 26, 1938

Section 77. Officers of Board. (70 O.S. § 5-119)

A. Except for districts that elect a chair of the board pursuant to Section 1 of this act, the board of education of each school district shall elect from its membership at the first regular, special or emergency meeting following the annual school election and certification of election of new members, a president and vice president, each of whom shall serve for a term of one (1) year and until a successor is elected and qualified. The board shall also elect a clerk and, in its discretion, a deputy clerk, either of whom may be one of the members of the board, and each of whom shall hold office during the pleasure of the board and each of whom shall receive such compensation for services as the board may allow. If the board elects a board clerk who is not one of the members of the board, the board clerk may also be employed as the encumbrance clerk and minute clerk. Provided, no superintendent, principal, treasurer or assistant treasurer, instructor, or teacher employed by such board shall be elected or serve as clerk or deputy clerk of the board nor as encumbrance clerk or minute clerk except that a treasurer or assistant treasurer may serve as a minute clerk. No board member shall serve as encumbrance clerk or minute clerk. The deputy clerk may perform any of the duties and exercise any of the powers of the clerk with the same force and effect as if the same were done or performed by the clerk. Before entering upon the discharge of the duties of the deputy clerk, the deputy clerk shall give a bond in a sum of not less than One Thousand Dollars ($1,000.00) with good and sufficient sureties to be approved by the board conditioned for the faithful performance of the duties of the deputy clerk.

B. The board of education shall employ an encumbrance clerk and minute clerk, both functions of which may be performed by the same employee. The encumbrance clerk shall keep the books and documents of the school district and perform such other duties as the board of education or its committees may require. The minute clerk shall keep an accurate journal of the proceedings of the board of education and perform such other duties as the board of education or its committees may require. The board of education may designate a deputy minute clerk. The deputy minute clerk may perform any of the duties and exercise any of the powers of the minute clerk with the same force and effect as if the same were done or performed by the minute clerk. Before entering upon the discharge of the duties of the deputy minute clerk, the deputy minute clerk shall give a bond in a sum of not less than One Thousand Dollars ($1,000.00) with good and sufficient sureties to be approved by the board conditioned for the faithful performance of the duties of the deputy minute clerk. Before entering upon the discharge of their duties, the encumbrance clerk and minute clerk shall each give a bond in a sum of not less than One Thousand Dollars ($1,000.00) with good and sufficient sureties to be approved by the board conditioned for the faithful performance of their duties. If both functions are performed by the same person only one bond in a sum of not less than One Thousand Dollars ($1,000.00) shall be required.

The minute clerk is not statutorily required to take the minutes of a board of education’s executive session. Any person legally present during an executive session may take the minutes of the executive session. January 27, 1997 (AG Op. No. 96-100)

District Superintendent of Schools cannot assume duties of clerk of board of education and keep minutes of board meetings. April 27, 1983 (AG Op. No. 83-66)

Clerk of Board of Education may be removed as Clerk by the Board of Education at any time. AG Op. February 28, 1951

The president of the board of education of a school district cannot be “fired” by the board of education prior to the expiration of his one-year term. AG Op. August 23, 1949

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

Section 78. President - Duties. (70 O.S. § 5-120)

It shall be the duty of the president to preside at meetings of the board of education, to appoint all committees whose appointment is not otherwise provided for, and to sign all warrants ordered by the board of education to be drawn upon the treasurer for school money.

President of board of education may sign warrants by use of machine which prints facsimile of his autograph. AG Op. August 28, 1954

Section 79. Vice President - Duties. (70 O.S. § 5-121)

It shall be the duty of the vice president to perform all of the duties of the president in case of his absence or disability.

Section 80. Clerk - Duties. (70 O.S. § 5-122)

It shall be the duty of the clerk to countersign all warrants for school monies drawn upon the treasurer by the board of education and perform such other duties as required by law or as the board of education or its committees may require. The Clerk of the board of education of any school district is hereby authorized to destroy all claims, warrants, contracts, purchase orders and any other financial records, or documents including those relating to school activity funds, on file or stored in the offices of the board of education of such district for a period of longer than five (5) years.

Note: 51 O.S. 1981 § 21 authorizes clerk of board of education to administer oaths.

Board of Education can employ secretary to perform bookkeeping and clerical duties, but not to perform statutory duties of the clerk of the board. AG Op. July 20, 1962

Clerk of the board of education may countersign warrants by use of machine which prints facsimile of his autograph. AG Op. August 28, 1954

While there is no law requiring the Clerk of a Board of Education to read or make public the minutes of prior meetings, he may be required to do so by the Board of Education. AG Op. December 7, 1949.

Section 81. Expenditures - Limitations. (70 O.S. § 5-123)

No expenditure involving an amount greater than Five Hundred Dollars ($500.00) shall be made by a board of education except in accordance with the provisions of a written contract or purchase order.

District must have written contract with support employee where remuneration for services exceeds $500. March 3, 1982 (AG Op. No. 82-62)

District superintendent, who allegedly told materialman orally that he would receive payment for materials delivered on school district project, lacked authority to bind school district by his assurances; moreover, the oral promise or contract was not valid unless it was in writing and signed by the party charged. Haskell Lemon Const. Co. v. ISD No. 12, 589 P.2d 677 (Okla. 1979)

Mistake of contractor as to extent of work he contracted to do does not authorize payment of additional amount to contractor. AG Op. September 1, 1954

Section 82. Contracts With Member or Business in Which Interested. (70 O.S. § 5-124)

A. Except as otherwise provided in this section, no board of education of any 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 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 owns any substantial interest in same.

B. For the 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 billing submitted to any 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.

1. The governing board 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 is employed. A board member shall abstain from voting on any such contract between the technology center school district board and the company, individual or business concern by which the member is employed.

2. A board of education may enter into a contract with a company, individual, or business concern in which a board member or a member’s spouse is employed by or has a substantial interest if the company, individual, or business concern is the only supplier having a place of business located within the 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.

3. A board of education which has entered into a lease-purchase agreement, prior to the time a board member which has a substantial interest 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 may enter into a contract with a company, individual or business concern in which a board member or a spouse of a member is employed and has no substantial interest if the 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.

D. A board member shall not be considered to be directly or indirectly interested in any contract with a company, individual, or 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.

Neither a school board member nor the board member’s spouse can have an ownership interest in the Department of Human Services (“DHS”). Therefore, the board member does not have a direct or indirect interest in a cooperative agreement with DHS, and there is no violation of this section of law. March 30, 2004 (AG Op. No. 04-11).

Provisions relieving school board members of certain conflicts of interest are not unconstitutional. April 28, 2003 (AG Op. No. 03-17).

Prohibitions of 70 O.S. §5-124 and 62 O.S. §371 are not avoided by the abstinence from voting by an affected board of education member. September 18, 1992 (AG Inf. Op. No. 92-549)

Member of board of education may also serve as member of a trust where school is the beneficiary without automatically violating the law. February 7, 1989 (AG Op. No. 88-88)

Members of public trusts who serve also as board members should avoid repeated contractual dealings where they are voting to approve both sides of the same contract. February 7, 1989 (AG Op. No. 88-88)

Spouse of board member cannot sell athletic equipment to District even though spouse waives his commission. May 18, 1983 (AG Op. No. 83-119)

Existence of sibling relationship between member of school board and person contracting with board does not on the basis of that fact alone cause contract to be unlawful. May 18, 1981 (AG Op. No. 81-70)

Oklahoma law prohibits a board of education for a school district from entering into a contract with a business concern which employs any member of the board or that member’s immediate family. Immediate family means members of the same household. However, 70 O.S. §5-124 and 62 O.S. §371 do not cause contracts in existence at the time of an election to become void by the subsequent election of a business’ employee to a board of education. May 18, 1981 (AG Op. No. 81-70)

Board of Education cannot purchase natural gas from a gas company which president and principal stockholder is a member of the board of education. July 29, 1980 (AG Op. No. 80-134)

This section is violated where a board member sells goods to another who in turn sells the goods to the School District. June 28, 1979 (AG Op. No. 79-183)

Member of board of education is “indirectly interested” in contract let by board where member has or is likely to have a pecuniary or personal interest in the contract which interest is likely or would tend to interfere with member’s objective performance of his public duty. June 28, 1979 (AG Op. No. 79-183)

Board cannot make occasional purchases of materials and supplies in open market from firm or company employing one of Board members. July 13, 1977 (AG Op. No. 77-167)

Municipality can purchase land from brother of member of municipality’s governing board if member has no pecuniary interest in sale of the property. September 28, 1979 (AG Op. No. 76-267)

District funds may be deposited in bank with which a member of the board of education is associated. June 28, 1971 (AG Op. 71-224)

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

Section 83. Claims - False - Voting for - Liability. (70 O.S. § 5-125)

A. Every member of the board of education or board of county commissioners who shall hereafter vote for the payment of any money or transfer of any property belonging to the school district in settlement of any claim known to such member to be fraudulent or void, or in pursuance of any unauthorized, unlawful or fraudulent contract or agreement made or attempted to be made, for any school district, by any officer or officers thereof, and every person having notice of the facts with whom such unauthorized, unlawful or fraudulent contract shall have been made, or to whom, or for whose benefit such money shall thereafter be paid, or such transfer of property shall be made, shall be liable in damage to all innocent persons in any manner injured thereby and shall be liable to the school district affected for double the amount of all sums of money so paid, and double the value of property so transferred, as a penalty to be recovered by civil suit brought by the board of education of such school district, or by any school district elector thereof, as provided in Section 5-126 of this Title.

B. Any member of a board of education of a school district who votes for the payment of any money or transfers any property belonging to the school district in settlement of any claim known to such member to be fraudulent, void or in pursuance of any unauthorized, unlawful or fraudulent contract or agreement made or attempted to be made for any such district shall be guilty of a misdemeanor. Every person having notice of the facts with whom any unauthorized, unlawful or fraudulent contract shall have been made or to whom or for whose benefit such money or property shall have been or thereafter will be paid shall be guilty of a misdemeanor. Upon conviction of a misdemeanor described in this section, the person shall make full restitution of all monies and/or property misallocated and be punished by a fine of not less than One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for not to exceed one (1) year, or by both such fine and restitution and imprisonment and if such person is a member of a board of education, shall be removed from office pursuant to Section 1181 et seq. of Title 22 of the Oklahoma Statutes or Section 91 et seq. of Title 51 of the Oklahoma Statutes.

C. Such illegal payment of money shall include, but shall not be limited to, salaries or any compensation paid to any person for teaching or performing other services for the district when such person does not have a written contract required by law or does not hold a valid certificate as required by law or by rules and regulations of the State Board of Education for the subjects taught or services performed and which is valid for the entire time for which such person has been paid. Any person receiving an illegal payment knowing or having reasonable cause to believe such payment to be illegal shall be guilty of a misdemeanor and shall be subject to the punishment prescribed in subsection B of this section.

A private association representing school board members may not expend association funds partially derived from membership dues paid from public funds to support or to oppose an initiative or a referendum if the dues were paid and received with this intent. May 13,1996 (AG Op. No. 95-14)

State Board of Education can deviate from its own regulations in the exercise of its authority and discretion and issue a superintendent’s certificate retroactively. State ex rel. Pate v. ISD No. 67, 789 P.2d 251 (Okla. App. 1989)

Section 84. Refusal, Failure or Neglect of Board - Elector May Institute Action. (70 O.S. § 5-126)

Upon refusal, failure or neglect of the board of education of any school district, after written demand made upon them by ten school district electors of such school district, or by the State Board of Education, either to return the money or to institute and diligently prosecute the proper proceedings at law or in equity for the recovery of any money or property belonging to such district, paid out or transferred by any officer thereof, in pursuance of any unauthorized, unlawful, fraudulent or void contract, made or attempted to be made by the board of education of any such school district, or for the penalty provided in Section 5-125 of this title, any school district elector of the school district affected by such payment or transfer, may, in the name of the State of Oklahoma as plaintiff, institute and maintain any proper action at law or in equity which the board of education of the school district might institute and maintain, for the recovery of such property or for said penalty, for the benefit of the district, and any judgment thus obtained shall provide for payment of attorney fees and court costs to the prevailing party.

Electors of school district have power to file an action at law for return of moneys paid out in pursuance of a void contract and have standing to seek a declaratory judgment to determine the contract’s validity. Brandon v. Ashworth, 1998 OK 20, 955 P.2d 233.

Section 84.1. Discussion of Audit Findings Prior to Release. (70 O.S. § 5-127.1)

Except for audits requested by a prosecutorial agency, the findings of an audit performed on any school district by any state agency, or on behalf of or at the direction of any state agency, shall be discussed with the members of the board of education and the superintendent or a designee of the affected school district at least fourteen (14) days prior to the release of the audit to the public.

Section 85. Annual Statistical and Financial Reports. (70 O.S. § 5-128)

Boards of education of all school districts are hereby required to make annual statistical and financial reports to the State Board of Education. The statistical report shall be made as of June 30. Each of such reports shall be filed with the State Board of Education as soon as information is available following the effective date of such reports.

Section 86. Itemized Expenditure Budget and Request for State Appropriated Funds - Estimate of Revenue. (70 O.S. § 5-128.1)

No later than October 1 of each year the board of education of each school district shall file with the State Board of Education an itemized expenditure budget and request for state appropriated funds for the ensuing fiscal year, and an estimate of the revenues from all sources to be received by the district during the ensuing fiscal year.

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Section 86.1. Electronic Filing. (70 O.S. § 5-128.2)

A. The State Board of Education shall not require school districts to submit a written paper copy of any documents that are filed electronically with the Board in a format that is compatible with the State Department of Education computer system.

Any correspondence between the State Department of Education and a school district concerning an electronically filed report, plan or grant, may also be conducted by electronic transmission. If a signature is required on any electronically filed document, a facsimile signature shall be submitted with the document.

B. Nothing in this section shall prohibit a school district from filing any reports with the State Department of Education in a written paper format.

Section 87. School Activity Fund. (70 O.S. § 5-129)

A. The board of education of each school district shall exercise control over all funds and revenues on hand or hereafter received or collected, as herein provided, from student or other extracurricular activities or other revenuegenerating sources listed in subsection B of this section that are conducted in the school district. Such funds shall be deposited to the credit of the account maintained for the benefit of the particular activity within the school activity fund. Deposits of funds subject to the requirements of this section shall be made by the end of the next business day; however, if the deposit for a day totals less than One Hundred Dollars ($100.00), a school district may accumulate monies required to be deposited into the fund on a daily basis until the total accumulated balance of deposits equals or exceeds One Hundred Dollars ($100.00). Provided, a school district shall deposit accumulated monies into the fund not less than one (1) time per week, regardless of whether the monies total One Hundred Dollars ($100.00). Disbursements from each of the activity accounts shall be by check countersigned by the school activity fund custodian and shall not be used for any purpose other than that for which the account was originally created. The board of education, at the beginning of each fiscal year and as needed during each fiscal year, shall approve all school activity fund subaccounts, all subaccount fund-raising activities and all purposes for which the monies collected in each subaccount can be expended. Provided, the board of education may direct by written resolution that any balance in excess of the amount needed to fulfill the function or purpose for which an account was established may be transferred to another account by the custodian.

B. The board of education of each school district may designate that any of the following revenue be deposited for the use of specific school activity accounts, or to a general activity fund within the school activity fund:

1. Admissions to athletic contests, school or class plays, carnivals, parties, dances and promenades;

2. Sale of student activity tickets;

3. Concession sales, including funds received from vending concession contracts and school picture contracts approved by the district board of education, and cafeteria or luncheon collections;

4. Dues, fees and donations to student clubs or other organizations, provided that membership in such clubs or organizations shall not be mandatory;

5. Income or revenue resulting from the operation of student organizations or club projects, provided, such revenue is not derived from the lease, rental or sale of property, supplies, products or other assets belonging to the school district. When approved by the board of education, student organizations or club projects may include fund-raising activities, the revenues from which may be used for the purpose of purchasing goods or services otherwise considered to be general fund expenditures;

6. Deposits for or collections for the purchase of class pictures, rings, pins, announcements, calling cards, annuals, banquets, student insurance and other such personal items; provided the cost of such items shall not be charged against other school funds; and
7. Other income collected for use by school personnel and other school-related adult functions.

C. The board of education of each district may establish petty cash accounts to be used only for the purpose of making small cash expenditures, such as postage, freight or express charges; provided, no single expenditure from a petty cash account shall be made in excess of Seventy-five Dollars ($75.00), and the total expenditures during any one (1) fiscal year shall not exceed Two Thousand Five Hundred Dollars ($2,500.00) per school building. The school activity fund custodian shall initiate petty cash accounts by filing a claim against the general fund of the school district for the authorized amount of each petty cash account which shall not exceed Two Hundred Dollars ($200.00) per school building. The general fund warrants issued in payment of said claim shall be deposited in a “Petty Cash Account” in the school activity fund.

All disbursements from the petty cash accounts shall be made in the same manner as other disbursements from the school activity fund, except no disbursement shall be made from a petty cash account unless a prenumbered, dated receipt be obtained and signed by the person receiving payment. A school board may designate a petty cash custodian to countersign petty cash checks in place of the activity fund custodian. The school activity fund custodian shall file claims against the general fund of the school district for reimbursement of a petty cash account whenever the need shall arise. Such claims shall be itemized in the same manner as other claims filed against the general fund and shall have attached thereto the receipts covering each of the expenditures claimed for reimbursement. The total of a petty cash account balance and the receipts on hand awaiting reimbursement should equal at all times the authorized amount of a petty cash account.

None of the provisions pertaining to a petty cash account shall be construed to authorize the use of one (1) fiscal year's fund to pay obligations of another fiscal year. Any remaining balance in each petty cash account shall be transferred to the general fund on or before June 30 of each year.

D. The State Board of Education shall adopt appropriate rules and regulations and design standard forms for the proper conduct of the various school activity accounts.

E. The school activity fund custodian and the petty cash custodian shall be appointed by the board of education of the school district. The school activity fund custodian and the petty cash custodian shall give a surety bond in an amount determined by the board of education, but not less than One Thousand Dollars ($1,000.00). The premium of the surety bond shall be paid from the school activity fund or the general fund.

F. The local board of education is hereby authorized to invest activity funds as it determines appropriate. Upon direction of the local board of education, the custodian of the activity fund shall invest activity funds in any or all of the investments permitted and listed in Section 5-115 of this title.

G. The board of education of a school district may establish, by board resolution, a general fund refund subaccount within the school activity fund. The balance in the subaccount shall be determined by need, and it shall be funded by refunds and reimbursements received, including but not limited to, rental income, reimbursements for lost and damaged textbooks, summer school and adult tuition, overpayments and tax refunds, as well as transfers, by treasurer's check, from the school district general fund. The subaccount may be expended only for the refund of revenues previously received and deposited either into the subaccount or directly into the general fund. Any remaining balance in the refund subaccount shall be transferred to the school district general fund on or before June 30 of each year.

H. The board of education of a school district may authorize the custodian of the school activity funds to provide cash advances to the sponsors for travel expenses on behalf of school district students and sponsors of certain school activities. The cash advances may only come from the school activity fund subaccount directly involved in the travel of such students or sponsor and only if the travel is one of the stated functions or purposes for the establishment of the subaccount. Receipts for all expenditures of the cash advances shall be kept and turned in to the custodian of the school activity fund following said trip.

I. Any invoice submitted to a school district which is to be paid from a school activity fund and is for payment of an authorized expenditure in an amount equal to or greater than the threshold amount stated in Section 310.9 of Title 62 of the Oklahoma Statutes shall conform to the requirements set forth in that section. (70-5-129)

Money received by school districts from vendors pursuant to vending concession contracts and school picture contracts is school district money. Fact that money from these sources is deposited in a school activity fund does not change its character. Public money in a school activity fund may only be disbursed to private persons or organizations for a valid public purpose. The determination of what constitutes a valid public purpose is a matter for the governing body to decide. Absent a showing of fraud or arbitrariness, a finding by a governing body that a project serves a public purpose will not be disturbed by the courts. May 15, 2003 (AG Op. No. 03 21).

A school district may use its school activity fund account to deposit and disperse monies raised for the purpose of making charitable and/or benevolent gifts or contributions to individuals or organizations if the board of education has approved the fund-raising activity and the dispersement. The monies deposited in the school activity fund which are raised by student fund raising activities are not public funds subject to the constitutional restrictions. June 12, 1997 (AG Op. No. 97-6)

A school district may not use tax-generated funds to purchase awards for student activities, but may pay expenses for awards for student activities if the board of education has established a student activity fund subaccount for such purpose. November 28, 1995 (AG Op. No. 95-33)

“Casino nights” where 1) patrons receive chips or paper money to play various casino games, 2) at the conclusion of the games, are issued credits or vouchers for the chips or papermoney won, and 3) are allowed to purchase prizes with the credits or vouchers issued, violate the anti-gambling and anti- lottery laws of Oklahoma. March 30, 1995 (AG Op. No. 95-6)

Student Activity Fund can be used to defray expense of transporting students to and from student activities, or to reimburse teacher for expenses or otherwise compensate teacher for transporting students. January 17, 1980 (AG Op. No. 79-338)

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

Section 88. Exemption of Certain Funds. (70 O.S. § 5-129.1)

Those funds which are collected by programs for student achievement and by parent-teacher associations and organizations that are sanctioned by the school district board of education shall be exempt from the provisions as outlined in Section 5-129 of this title. Each school district board of education shall adopt policies providing guidelines for the sanctioning of organizations and associations exempted or applying to be exempted pursuant to the provisions of this section. The guidelines may include but not be limited to examinations of financial and performance audits performed on each such organization and association.

Section 89. Separate Accounts. (70 O.S. § 5-129.2)

A. In conformance with any other law providing procedures for the deposit of such funds, area school districts shall be authorized to establish separate accounts for deposits received for live work, resale items, student financial aid, tuitions and other fees. Such funds shall be deposited to the credit of the account maintained for that particular purpose. Disbursements from each account shall be by check countersigned by the custodian of the account and shall not be used for any purpose other than that for which the account was originally created.

B. The board of education of the technology center school district, at the beginning of each fiscal year and as needed during each fiscal year, shall approve all accounts created pursuant to this section and all purposes for which the monies collected in each account may be expended. Provided, the board of education may direct by written resolution that any balance in excess of the amount needed to fulfill the function or purpose for which an account was established may be transferred to another account by the custodian.

Section 90. School Buildings and Property - Permission to Use for Other Purposes. (70 O.S. § 5-130)

A. The board of education of any school district may, under such regulations and conditions as it may prescribe:

1. Open any school building and permit the use of any property belonging to such district for religious, political, literary, community, cultural, scientific, mechanical, agricultural, or parental involvement purposes, and other purposes of general public interest including the provision of public library services pursuant to agreements with governing boards or commissions of public libraries or library systems;

2. Contract to provide transportation equipment as defined in Section 9-104 of this title for any purpose specified in paragraph 1 of this subsection; and

3. Make a reasonable charge to cover the cost of the use of such building, property or transportation equipment.

B. The State Board of Education shall encourage each board of education to inquire into and promote the use of its school buildings and property for the purposes provided in subsection A of this section for such activities both before and after regular school hours.

If Board of Education opens buildings to outside organizations, policy as to who will have access cannot be discriminatory. Hennessey v. ISD No. 4, 552 P.2d 1141 (Okla. 1976)

School district property may be rented on occasional basis to religious organization for religious services if fair and reasonable charge is made to cover cost of use of property. April 8, 1975 (AG Op. No. 75-157)

Board of education may make reasonable classifications as to use of school facilities by private organizations. AG Op. March 11, 1975

Parent-Teacher associations may not be denied use of school facilities if comparable organizations are permitted such use. AG Op. March 11, 1975

Churches cannot be permitted to conduct prayer meetings and religious instruction in public school buildings during school day. AG Op. April 10, 1959

Board of education not required to permit use of buildings for public gatherings. AG Op. November 13 , 1953

Section 91. Educational Courses - Buildings and Equipment. (70 O.S. § 5-131)

The board of education of every school district in this state is hereby authorized to provide educational courses for all persons and said board is authorized to provide necessary buildings, equipment, and other facilities for such persons. Such educational courses may include grades one to twelve, inclusive, for persons between the ages of six (6) and twenty-one (21) years and may also include nursery and kindergarten classes, junior college grades, vocational and technical instruction, adult and part-time classes and other special classes. The curricula and qualifications of teachers shall be determined by the State Board of Education except as otherwise provided herein. Provided, any district offering educational courses shall charge tuition fees for such courses unless the school district has funds available to pay the cost thereof which are not needed to maintain the common school program.

Section 92. Sewage Disposal System. (70 O.S. § 5-131.1)

The board of education of any school district, which by reason of its location is unable to secure service from a municipally owned sewer system, is hereby authorized to design, construct, own and operate a sewage disposal system of such type and size as will be best suited to the needs of the particular school district. The board of education of any such school district is also authorized to accept from the State, Federal Government, or any agency, department or instrumentality of either, grants for or in aid of the construction and engineering of any such sewage disposal system.

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Section 92.1. Energy Conservation Measures. (70 O.S. § 5-131.2)

A. As used in this section, “energy conservation measures” means one or more of the following items:

1. Insulation of the building structure or systems within the building;

2. Storm windows or doors, caulking or weather-stripping, multiglazed windows or doors, heat-absorbing or heat-reflective, glazed, and coated window or door systems, additional glazing, reductions in glass area, or other window and door system modifications that reduce energy consumption;

3. Automatic or computerized energy control systems;

4. Heating, ventilating or air conditioning system modifications or replacements;

5. Replacement or modification of lighting fixtures to increase the energy efficiency of the lighting system, but not for the sole purpose of increasing the overall illumination of a facility, unless an increase in illumination is necessary to conform to the applicable state or local building codes for the lighting system after the proposed modifications are made;

6. Indoor air quality improvements;

7. Energy recovery systems; and

8. Energy awareness education programs.

B. The board of education of any school district in compliance with the provisions of this section, may enter into an energy conservation contract for the purpose of implementing energy conservation measures designed to reduce the energy consumption of school facilities.

1. The board of education shall require the provider of the energy conservation measures to file with the board of education a performance bond that is in an amount the board finds reasonable and necessary to protect the interests of the board and that covers the value of the guaranteed savings on the contract and is conditioned on the faithful execution of the terms of the contract.

2. If bonding industry limitations prevent execution of a performance bond which covers guaranteed savings for the entire term of the lease-purchase agreement the contract may allow an option for:

a. a performance bond which covers guaranteed savings for a shorter term. At the completion of the bond term, a new bond may be executed which covers guaranteed savings for an additional period of years. This process may be continued in like manner for the duration of the lease-purchase agreement as specified by subsection D of this section, or

b. a performance bond which covers guaranteed savings for a shorter term. At the completion of the bond term, if the bond cannot be renewed as provided in subparagraph a of this paragraph and if there has been a guaranteed savings shortfall during the last twelve (12) months, the board of education may assume a continued annual shortfall of the same amount and request repayment from the contractor of the net present value of the shortfall through the end of the lease repayment period. The discount factor to calculate the net present value shall be the annual percentage rate of the lease-purchase agreement.

1. The board of education may enter into an energy conservation contract for a period of more than one (1) year for the implementation of energy conservation measures with a person or business entity if the board of education finds that the amount the school district would spend on the energy conservation measures, excluding any initial partial payment, will not exceed the total savings over the repayment period of the energy conservation contract from the date of installation.

2. The term of the energy conservation contract and the lease-purchase agreement shall include the installation period and the lease repayment period.

3. If the term of an energy conservation contract exceeds one (1) year, the contractual obligation of the school district, excluding any initial partial payment, in any year during the term of the energy conservation contract may not exceed the total savings including, but not limited to, electrical, gas, or other utility cost savings and savings from lowered maintenance, as determined by the board of education. Savings shall be guaranteed by the entity providing the energy conservation measures.

4. Energy conservation contracts shall not permit the carry-forward of savings above the guaranteed amount from one year to a future year shortfall.

5. Maintenance for energy conservation measures may be a part of the energy conservation contract.

6. The board of education shall consider all costs of the energy conservation measures, including costs of design, engineering, installation, maintenance, maintenance tools and equipment, spare parts, repairs, and debt service.

E. In addition to any other provisions, the energy conservation contract shall:

1. Provide that all savings should be tracked and audited by the contractor with an annual report provided to the board of education along with a payment by the provider for reimbursement of savings not realized;

2. Be for a term of years that is not less than the term of years of any associated lease-purchase agreement;

3. Provide that the board of education may terminate the agreement for nonperformance by the contractor;

4. Contain a nonappropriation clause; and

5. Contain a baseline calculation and an energy savings calculation. The calculations shall be performed in accordance with the procedures used by the International Protocol for Measurement and Verification Procedures (IPMVP) or succeeding standard of the United States Department of Energy.

1. An energy conservation contract, with respect to existing buildings or facilities, may be funded through a lease-purchase agreement that meets federal tax requirements for tax-free municipal leasing or long-term financing.

2. The repayment period of the lease-purchase agreement shall not exceed the lesser of fifteen (15) years or the weighted average equipment life to be installed under the energy conservation contract.

3. Lease-purchase agreements for energy conservation measures shall be considered separate from the energy conservation contract and shall contain a nonappropriation clause.

1. Energy conservation contracts and lease-purchase agreements executed pursuant to this section shall be let under competitive proposal procedures.

2. Notice of the request for proposals shall be published in the manner provided for competitive bidding. Requests for proposals must solicit quotations and must specify the relative importance of guaranteed savings, price, financial performance and stability, quality, technical ability, experience and other evaluation factors.

3. The board of education shall review the proposals it receives, and shall select at least two for more detailed consideration. The initial screening should consider the ability of the offer or to provide energy conservation measures as well as the following factors:

a. specialized experience in the type of work contemplated,

b. capacity to accomplish the work in the required time,

c. past performance, and

d. estimated savings.

4. The board of education shall negotiate the contract with the selected offeror. The negotiated scope and contract rate shall be reported to the board of education for the approval of the award of the contract.

a. If the board of education and the first-choice offer or cannot reach an agreement, their negotiations shall be terminated and negotiations with the second-choice offer or shall commence.

b. If the board of education and the second-choice offer or cannot reach an agreement, then all negotiations shall be terminated.

c. Should the board of education be unable to negotiate a satisfactory contract with any of the two selected offerors, the board of education shall select additional offerors in order of their competency and qualifications and shall continue negotiations in accordance with the provisions of this subsection until an agreement is reached.

6. The energy conservation contract and lease-purchase agreement shall be awarded to the responsible offeror whose proposal, following negotiations, is determined to be the most advantageous to the school district considering the guaranteed savings and other evaluation factors set forth in the request for proposals. In order to determine the energy savings measures to be considered by proposers, the board of education may hire an independent energy consultant.

7. Fees assessed by the consultant will be paid from proceeds of any financing associated with the energy conservation contract.

H. If provided in a request for proposals under subsection G of this section, proposals shall be opened in a manner that avoids disclosure of the contents to competing offerors and keeps the proposals confidential during negotiations.

I. All proposals shall be open for public inspection after the contract with the selected provider has been executed, but trade secrets and proprietary information clearly identified in the proposals shall not be open for public inspection.

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Section 93. Students of Legal Age - Completion of Twelfth Grade. (70 O.S. § 5-132)

A. Any person who is of legal age and a resident of Oklahoma, over the age of twenty-one (21) and under the age of twenty-six (26), and who has not completed the twelfth grade in school shall be given the same educational privileges and opportunities provided by law for children over the age of five (5) and under the age of twenty-one (21), upon submitting to the board of education of the school district in which said person resides evidence satisfactory to that board showing that during the time before he was twenty-one (21) years of age he was unable to attend school for a definite period or periods of time because of physical disability, or service in the United States Armed Forces or auxiliary organizations, by reason whereof it was impossible for him to complete the twelfth grade before reaching the age of twenty-one (21). Provided, further, said pupil shall be counted in the average daily attendance of the district where he attends school during the period of time provided for in this article for the purpose of calculating State Aid for the district.

B. Any resident of the state who is nineteen (19) years of age or older, who is not enrolled in any high school program, and who has not completed the twelfth grade may attend any adult high school completion program which is established by a school district and approved by the State Board of Education if such attendance has the approval of the district offering the program. Such attendance shall not be counted in the average daily attendance of the district unless the Legislature appropriates monies for adult high school completion programs. Such attendance shall not be counted to meet minimum numbers for accreditation of the school district involved, and such students shall not attend classes which are a part of the normal class structure of the district.

Attendance of person before he is 26 years old can be counted in daily attendance only for same number of school days he missed school because of physical disability or military service. AG Op. August 3, 1962

Section 94. Completion of Requirements for High School Diploma. (70 O.S. § 5-132.1)

A. Any person other than those persons provided for in Section 5-132 of this title, who is twenty-one (21) years of age or older and who has not completed the requirements for a high school diploma or received a General Education Diploma, upon proper application to an independent school district may be given the opportunity to complete the requirements for and receive a regular high school diploma.

B. The school district or technology center school district in which such person resides may give the person the option of attending regular classes if class size restrictions are not violated, or of participating in other programs which may be provided pursuant to provisions of the Oklahoma Statutes or rules promulgated by the State Board of Education or State Board of Career and Technology Education. Providing, however, that the school district may deny admittance of persons over twenty-one (21) to its classes.

C. The school district or technology center school district may charge such person an amount of tuition not to exceed the average expenditure per pupil of the district for the preceding school year. Said tuition may be prorated by the number of contact hours for which the person is enrolled.

Section 95. Apportionment of Taxes Each Year. (70 O.S. § 5-133)

A. There is hereby regularly apportioned to each and every school district of the State of Oklahoma in each taxable year five (5) mills on the dollar out of the fifteen (15) mills on the dollar total taxes for all purposes on an ad valorem basis provided by Section 9(a), Article X, of the Oklahoma Constitution, as amended on April 5, 1955. Provided, that the regular apportionment hereby made shall not prevent or take away from the county excise board of any county the right to apportion to any school district or class of school districts in such county more than five (5) mills out of the fifteen (15) mills to be apportioned in pursuance of the provisions of said amended Section 9(a), Article X, of the Oklahoma Constitution among county, city, town and school district.

B. In accordance with the provisions of Section 9(c), Article X, of the Oklahoma Constitution, as amended on April 5, 1955, an additional tax of not to exceed fifteen (15) mills on the dollar valuation of all taxable property in the district shall be levied upon certification of a need therefor by the board of education.

C. An amount equal to the district’s proportionate part of the ninety percent (90%) of the amount obtained by multiplying the total net assessed valuation of the school districts of the county by four (4) mills may be estimated as probable revenue from the four (4) mills county-wide levy made under the provisions of Section 9(b), Article X, of the Oklahoma Constitution, as amended on April 5, 1955, and the amount so estimated may be used to finance the appropriations of the district.

The provisions of said Section 9(b) relating to school districts lying in more than one county shall not affect the status of any such school district, and for the purposes of apportionments under said Section 9(b), any such district shall be deemed a school district of the county of which it is now considered a school district, unless the State Board of Education, upon written petition by the board of education of such district, decrees that such district shall be deemed a school district of another county in which any of its territory lies, and unless the District Court of Oklahoma County in an action filed for such purposes reverses such decree, and revenue from the tax levied under said Section 9(b) on the assessed valuation of the district in other counties shall, when collected, be transmitted to the county treasurer of that county of which such district is deemed a school district, and be apportioned as provided for the proceeds of such tax on the assessed valuation of such county.

Legislature may allow school districts more than 5 mills over regular fifteen (15) mills authorized by Section 9, Article X, Oklahoma Constitution. AG Op. November 2, 1962

Money received by school district from four (4) mill levy should be appropriated and credited to fiscal year in which received. AG Op. October 13, 1955

School district may have a total levy in excess of twenty (20) mills. St. Louis-San Francisco Ry. Co. v. Craig County Excise Board, 230 P.2d 896 (Okla. 1951)

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Section 96. Estimates - Emergency, Local Support and Building Levies - Elections. (70 O.S. § 5-134)

A. No later than December 31 of each year the board of education of each school district of the state shall prepare, on a form prescribed by the State Board of Education, a preliminary estimate of the amount or amounts of money and tax rate or rates which it then believes will be required for the district for the ensuing fiscal year; and if such preliminary estimate shows an estimated need for a levy requiring the approval of the school district electors of the district under Section 9 or Section 10 of Article X of the Oklahoma Constitution, as amended on April 5, 1955, such preliminary estimate shall contain a call for an election to be held on the second Tuesday in February, or on such other date as may be provided for the election of the members of the board of education to vote on the question of making such levy or levies. In determining the eligibility of the school district to make an emergency levy under the provisions of subsection (d) of Section of Article X of the Oklahoma Constitution, as amended, the legal current expenses of the district shall be all the expenditures from the general fund of the district during the preceding year, except (1) expenditures for transportation of pupils; (2) capital outlay; (3) debt service; and (4) the amount appropriated from any previous emergency levy; and the Two Hundred Fifty Dollars ($250.00) per capita cost fixed by said subsection (d) of Section of Article X of the Oklahoma Constitution, for the fiscal year ending June 30, 1956, is hereby increased to One Thousand Dollars ($1,000.00) for the fiscal year ending June 30, 1963, and said sum of One Thousand Dollars ($1,000.00) shall thereafter be increased or decreased by the State Board of Education in proportion to the increase or decrease in the per capita income of Oklahoma citizens. Such preliminary estimate shall be published in one issue of a newspaper having general circulation in the district at least ten (10) days before such election. Provided, that the county excise board or the board of education of any school district may call a special election for any date for the purpose of voting upon a levy authorized by Section 9 or 10 of Article X of the Oklahoma Constitution, as amended. Notice of any election called under the provisions of this section shall be given by publication in one issue of a newspaper having general circulation in the school district at least ten (10) days before such election.

B. The requirements of this section shall not apply to school districts that have adopted a permanent millage pursuant to subsection (d-2) of Section 9 of Article X of the Oklahoma Constitution.

The statute is unambiguous and authorizes the calling of a special election for the re-submission of a levy election which has failed. Protest Against Tax Levy of Ardmore Independent School No. 19, 1998 OK 43, 959 P.2d 580.

Expenditure of public funds to influence outcome of school millage election is unlawful. February 23, 1981 (AG Op. No. 80-310)

School district funds cannot be expended for publication of notice of a millage election except as provided by this Section. July 3, 1980 (AG Op. No. 80-102)

Section 97. Repealed.

Section 98. Alternate System of Accounting. (70 O.S. § 5-135)

A. The board of education of each school district shall use the following system of initiating, recording and paying for all purchases, salaries, wages or contractual obligations due from any of the funds under the control of such board of education. However, a school district board of education may use the procedures outlined in Section 304.1 of Title 62 of the Oklahoma Statutes for the payment of salaries and wages only if the board so votes. The provisions contained herein shall not apply to the sinking fund and school activity fund.

B. The encumbrance clerk and treasurer of the school district shall each enter the authorized amounts in the various appropriation accounts of the funds to which this system is applied. The authorized amounts of appropriations shall be the general fund and building fund appropriations approved by the county excise board and such additional amounts as may be applied in the manner provided by law, the amount received for deposit in a special cash fund where such special cash fund is authorized by law or required by the person or agency providing such funds, or the amount of the net proceeds realized from the sale of bonds of the school district and any other income due such fund.

C. It shall be the duty and responsibility of the board of education of the school district to prescribe and administer adequate business procedures and controls governing the purchase or confirmation of purchase and delivery of goods or services. The procedures shall include delivery of an acceptable invoice by document, facsimile, electronic or other standard form that includes the information required by the district. Such procedures shall include the designation of authorized persons to purchase goods or services for the district and the method of determining the school employee receiving delivery of each purchase.

D. Prior to the issuance of a purchase order, the encumbrance clerk must first determine that the encumbrance will not exceed the balance of the appropriation to be charged. The encumbrance clerk shall charge the appropriate appropriation accounts and credit the affected encumbrances outstanding accounts with the encumbrances. Encumbrances must be submitted to the board of education in the order of their issuance on a monthly basis, subject to a monthly business cycle cut-off date determined by the board of education. Approved encumbrances shall be listed in the minutes by the minute clerk.

E. Before any purchase is completed, a purchase order or encumbrance must be issued. No bill shall be paid unless it is supported by an itemized invoice clearly describing the items purchased, the quantity of each item, its unit price, its total cost and proof of receipt of such goods or services. The bill and/or invoice shall be filed in the encumbrance clerk's official records. If a district has the ability to electronically utilize evaluated receipt settlement (ERS), the district may remit to vendors on that basis if the requirements of this subsection are fulfilled. In the event a district is establishing electronic data interchange, electronic entries will suffice in lieu of paper documents. In order for a district to be authorized to utilize an evaluated receipt settlement system:

1. The ERS must result in payment by the district from vendor receipts that have been matched to the purchase order date;

2. The ERS may only be used when there is an agreement between the district and the vendor for use of an ERS; and

3. The ERS must be included in the district's journal ledger/accounts payable/purchase order software.

F. The encumbrance clerk shall debit the encumbrances outstanding account and credit the accounts payable account for the amount of the approved bill. The board of education shall determine the extent such costs may fluctuate without additional board action. Minor adjustments not requiring additional board approval shall be referenced to the original encumbrance.

G. An approved bill may be paid by issuing a warrant or check against the designated fund only after ascertaining that proper accounting of the purchase has been made and that the files contain the required information to justify the expenditure of public funds, except as otherwise provided in subsection I of this section. The warrants or checks so issued shall be recorded in an orderly numerical system established by the district. The encumbrance clerk shall charge the warrant or checks against the accounts payable account and credit it to the warrants or checks issued account. Provided, if payment is to be made immediately and the board of education deems it advisable, the postings to the accounts payable account may be omitted and the payment of the approved bill may be credited directly to the warrants or checks issued account. The warrant or check shall show on its face the name of the school district, the date of issue, the payee, the amount, the expenditure classification code, and such other information as may be necessary or desirable. The president and clerk of the board of education shall each sign the warrant or check, or approved facsimile thereby denoting to the public that the warrant or check is for the purpose and within the amount of the appropriation charged.

H. The treasurer shall register the warrant or check in the warrant or check register, charging the appropriation account and crediting the warrants or checks outstanding account of the designated fund. Provided, no warrant or check shall be registered in excess of the appropriation account's balance. All warrants or checks shall be registered in the order of their issuance. Voided warrants or checks shall be registered and filed with the treasurer. The treasurer shall sign each warrant or check through individual signature or approved facsimile showing its registration date and if issuing a warrant, shall state whether it is payable or nonpayable. When a warrant or check is paid, the treasurer shall maintain evidence the warrant or check has been processed and paid. Nothing in this subsection shall prohibit any governing board from using automated recordkeeping procedures, provided the information required in this subsection can be accessed.

I. Any board of education of a school district of this state may make a payment which would otherwise be made by warrant or check, by disbursement through an Automated Clearing House, bank account debit system, wire transfer through the Federal Reserve System, or any other automated payment system operated by a financial institution insured by the Federal Deposit Insurance Corporation. The internal controls over such payment system shall be reviewed and approved by the independent auditor of the district during the annual audit. The provisions of Sections 601 through 606 of Title 62 of the Oklahoma Statutes shall apply to instruments or payment authorized by this subsection.

J. School districts complying with the provisions of this act shall use only those forms and accounting systems approved by the State Board of Education. Such forms and systems shall be considered in substantial compliance with this act if they are sufficient to convey the meaning and sequence of transactions contained herein. Provided, nothing contained herein shall be construed to limit or prevent the use of additional or subsidiary accounts, forms, or files which may be deemed necessary or advisable by the board of education of the district or the State Board of Education.

K. Any school district desiring to utilize the services of a data processing center to furnish any or all of the records herein required may do so if the center and its system complies with this act and the rules and regulations of the State Board of Education. Such center shall furnish an honesty bond in an amount to be set by the board of education but not less than Ten Thousand Dollars ($10,000.00).

L. The State Board of Education shall notify the board of education of the school district of the tentative amount the district is to receive from state and federal aid funds or allocations, and the board of education of the school district may include such tentative estimate as an item of probable income in the preparation of the school district's Estimate of Needs and Financial Statement; provided, no such federal aid estimate shall be used in any way to reduce the State Foundation Aid or Incentive Aid for such school district or sustain a protest for the reduction of a tax levy.

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Section 99. Oklahoma Cost Accounting System. (70 O.S. § 5-135.2)

A. For the 1991-92 school year, school districts shall report financial transactions for all funds, except for the school activity fund, using the Oklahoma Cost Accounting System, as adopted by the State Board of Education pursuant to Section 5-135 of this title. Costs shall be reported by curricular subject area where applicable. For the 1992-93 school year and in each subsequent school year, school districts shall report financial transactions for all funds using the Oklahoma Cost Accounting System. Costs shall be reported by curricular subject area where applicable.

B. Beginning July 1, 1991, and in each subsequent school year, the State Department of Education shall reduce the monthly payment of a district's State Aid funds if, at the time of such payment, the district is not operating pursuant to the Oklahoma Cost Accounting System. The amount of the reduction shall be one percent (1%) for the first payment, two percent (2%) for the second payment, three percent (3%) for the third payment, four percent (4%) for the fourth payment, and five percent (5%) for each subsequent payment. The reduction may be waived by the State Board of Education if the district can demonstrate that failure to operate pursuant to such system was due to circumstances beyond the control of the district and that every effort is being made by the district to operate pursuant to such system as quickly as possible.

C. No later than September 1 each year, every district board of education shall prepare a statement of actual income and expenditures of the district for the fiscal year that ended on the preceding June 30. The statement of expenditures shall include functional categories as defined in rules adopted by the State Board of Education to implement the Oklahoma Cost Accounting System pursuant to Section 5-135 of this title.

D. No later than September 1 each year, every school district shall transmit a copy of the income and expenditures data required pursuant to subsection C of this section to the State Department of Education. The Department shall post the income and expenditure data on the Internet web site for the Department in a form that is accessible to the public.

Section 99.1. Notarized Statement of Architect. (70 O.S. § 5-135.3)

The following signed and notarized statement shall be required on an invoice submitted to any school district or technology center school district in the state, for payment to an architect, contractor, engineer or supplier of material of Two Thousand Dollars ($2,000.00) or more:

STATE OF OKLAHOMA )
) ss
COUNTY OF )

The undersigned (architect, contractor, supplier or engineer), of lawful age, being first duly sworn, on oath says that this invoice or claim is true and correct. Affiant further states that the (work, services or materials) as shown by this invoice or claim have been (completed or supplied) in accordance with the plans, specifications, orders or requests furnished the affiant. Affiant further states that (s)he, has made no payment directly or indirectly to any elected official, officer or employee of the school district or technology center school district, of money or any other thing of value to obtain payments of the invoice or procure the contract or purchase order pursuant to which an invoice is submitted.

(Contractor, supplier, engineer or architect)

Subscribed and sworn to before me this day of , 19 .

Notary Public (or Officer having Power to Administer Oaths)

Note: See also Section 634.

Section 99.2. School District Transparency Act. (70 O.S. § 5-135.4)

A. This section shall be known and may be cited as the “School District Transparency Act”.

B. By January 30, 2011, the State Department of Education shall make school district expenditure data available on its website. Data shall be made available in an open-structured data format that may be downloaded by the public and that allows the user to systematically sort, search, and access all data without any fee or charge for access.

C. The database shall provide information on school district expenditures of state, federal, and local funds, whether appropriated or nonappropriated, excluding payments of voluntary payroll deductions for employees to receiving parties. The database shall further provide information, including, but not limited to, the following:

1. Identification of the school district;

2. The Oklahoma Cost Accounting System (OCAS) code designation for each expenditure;

3. The name and principal location of the entity or recipient of the funds, excluding release of information relating to an individual’s place of residence and release of information prohibited by subsection D of Section 24A.7 of Title 51 of the Oklahoma Statutes or by federal law relating to privacy rights;

4. The amount of funds expended;

5. The type of transaction;

6. A descriptive purpose of the funding action or expenditure;

7. Copies of all credit card statements, identified by department responsible for each credit card;

8. The budgeted and audited actual expenditure figures for each fiscal year, ensuring each set of figures can be identified as budgeted or audited figures; and

9. The per-pupil spending figure, derived by dividing total expenditures by the total number of students enrolled for each school year.

D. The Department shall make the data available on its website within one hundred twenty (120) days of transmission of the expenditures to the Department by the school district.

E. School districts shall provide information requested by the Department to accomplish the purposes of this section.

F. If a school district maintains a website, the district shall provide the information required in subsection C of this section in the manner prescribed in subsection B of this section on the district website.

G. Nothing in this section shall require the disclosure of information which is required to be kept confidential by state or federal law.

H. The disclosure of information required by this section shall create no liability whatsoever, civil or criminal, to the State of Oklahoma, the State Department of Education, school districts, or any employee thereof for disclosure of required information or for any error or omission in the disclosure.

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Section 100. Certificate of Indebtedness. (70 O.S. § 5-136.1)

A. With respect to school districts seeking cash-flow management during any fiscal year, any school district may issue and deliver certificates of indebtedness bearing a stated maturity date for the purpose of participating in a short-term cash management program pursuant to the provisions of Section 177.2 of Title 60 of the Oklahoma Statutes to fund the estimated costs of operations, capital expenditures or other lawful costs of the school district for the current fiscal year. The proceeds of certificates of indebtedness shall be set aside in a separate account and used only for the purpose of meeting expenditures and obligations which would otherwise be lawfully payable from the revenue certified by the County Excise Board. As proceeds from the certificates are used to pay such lawful expenditures and obligations, the financial records of the school district shall reflect the amounts of these obligations paid with such proceeds so that a like amount of revenue collected and available to the school district may be used to repay the certificates of indebtedness, in whole or in part. The State Auditor and Inspector shall adopt uniform accounting procedures for use by the school districts to ensure that the issuance of certificates of indebtedness and the use of the proceeds derived from these certificates will be documented and will not result in a district overspending its authorized budget. All certificates of indebtedness executed pursuant to a cash management program shall be issued, delivered and registered for payment in the specific manner designated by the State Auditor and Inspector; provided, any such certificates of indebtedness shall be made payable on any date within the then current fiscal year and may be purchased for value through the funding of uncollateralized investments made for the benefit of and on behalf of the school district. Short-term cash management programs of any school district may lawfully provide for the investment of note or bond proceeds by the issuer of the obligations with the benefit and use of such proceeds assured to the school district when needed by the school district for that fiscal year and as approved by the Oklahoma Commission on School and County Funds Management. In no case may a school district participate in a short-term cash management program in any given fiscal year beyond that fiscal year. Monies received by a school district pursuant to a short-term cash management program may be used only for those purposes for which other monies of the school district may be lawfully expended.

B. For school districts electing to participate in the payment security procedure set forth in this subsection, which procedure shall serve as additional security for the payment of any bond or note of a participating school district, the State Board of Education shall cure any delinquencies in payment by withholding State Aid due the participating district as determined pursuant to Section 18-200.1 of this title. Whenever the designated paying agent for receipt of payments for the school district does not receive a payment when due pursuant to the authorizing documents, the paying agent shall be entitled to payment from the withheld State Aid in any amount sufficient to cure the payment deficiency. The paying agent shall notify the State Department of Education and the superintendent of the school district of the delinquent payment by telephone, facsimile, or other similar communication, followed by written verification. Unless the Department determines that payment has been made by the school district and there is no longer a payment deficiency, the Department shall withhold from the next distribution of State Aid for the school district an amount sufficient to cure the deficiency and remit the amount to the paying agent. In the event that the amount of State Aid next due to be distributed to the delinquent school district is not sufficient to cure the delinquency, the Department shall continue to withhold State Aid as due and remit it to the paying agent until the payment deficiency has been cured.

70 O.S., § 5-136.1 does not authorize school districts to issue certificates of indebtedness for the purpose of generating additional investment revenue. If proceeds are intentionally used to acquire higher yielding investments, the certificates of indebtedness may be stripped of their tax exempt status. Certificates of indebtedness must be issued, registered and delivered in a “method” similar to that set forth for school district warrants. May 1, 1991 (AG Op. No. 91-3)

Section 101. Registered Nurses - Increments. (70 O.S. § 5-137)

Registered nurses who are employed full time by a school district shall qualify for yearly increments the same as any other teacher in public schools.

Section 102. School District Employees - Residence. (70 O.S. § 5-138)

No school district board of education shall require any employee to reside within the boundaries of that school district; however, a district board may establish a policy that may require the district superintendent to reside within the boundaries of the district.

Section 103. Payroll Deductions for Organization Dues and Political Contributions. (70 O.S. § 5-139)

School districts shall make payroll deductions for either or both professional organization dues and political contributions upon the request of any school employee and shall transmit deducted funds to the organization designated by the school district employee. Such deductions shall be on a ten-month basis unless otherwise designated by the employee organization. However, a school employee may request in writing at any time for the school district to immediately terminate or initiate payroll deductions to a professional organization. Upon receipt of a request the school district shall within five (5) business days or by the next pay period, whichever is earlier, terminate or initiate any future payroll deductions of the requesting school employee to a professional organization. Upon receipt of a request the school district shall notify the professional organization of the initiation or termination of payroll deductions within fifteen (15) business days. If the request is to terminate a deduction, the school district shall not make any advance payments to any professional organization of any future dues on behalf of the school employee.

Dues to organization must be deducted from payroll upon request of employee, whether professional or non-professional. April 8, 1980 (AG Op. No. 80-60)

Professional organization dues of superintendent and principals cannot be paid from school district funds. March 20, 1979 (AG Op. No. 79-38)

Principals cannot be required to belong to any particular professional organization. March 20, 1979 (AG Op. No. 79-38)

A school district may not pay out of its own funds the professional dues of administrators but are required to make payroll deductions on behalf of those administrators who request such deductions for the purpose of paying professional organization dues. A school district may not require an administrator to belong to any professional organization. March 20, 1979 (AG Op. No. 79-38)

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Section 104. Payment of Additional Salary in Lieu of Employee Insurance. (70 O.S. § 5-140)

A local school district, by action of a majority of its school board, may, in lieu of a particular insurance or similar benefit granted by the district to its employees, allow and pay to the employee additional salary or wages equal to the cost of such insurance or similar benefit.

Independent school district may offer employees a “cafeteria plan” and select provider subject to statutory limitations procedures. Fees to offset the cost of administering such a plan may be collected from the companies providing the benefits on collective bargaining and purchasing. July 24, 1989 (AG Op. No. 88-43)

Section 105. Minimum Salary Schedules. (70 O.S. § 5-141)

A. Each school district of this state shall adopt a minimum salary schedule and shall transmit a copy of it to the State Board of Education within thirty (30) days after adoption. A school district shall not calculate salaries of teachers solely as a proportion of the salaries of the administrators of the district.

B. Districts shall be encouraged to provide compensation schedules to reflect district policies and circumstances, including differential pay for different subject areas and special incentives for teachers in districts with specific geographical attributes. Districts may also adopt a salary schedule that provides additional compensation for achieving certain ratings under the Oklahoma Teacher and Leader Effectiveness Evaluation System (TLE) as set forth in Section 6 of this act. Any salary schedule adopted by a district pursuant to this section shall not set salaries at amounts less than those set pursuant to Section 18-114.12 of this title.

C. The State Department of Education shall compile a report of the minimum salary schedules for every school district in the state and shall submit the report to the Governor, Speaker of the House of Representatives, and President Pro Tempore of the Senate no later than December 15 of each year.

D. Each school district shall file within fifteen (15) days of signing the contract, the employment contract of the superintendent of the school district with the State Department of Education. The Department shall keep all contracts available for inspection by the public. The school district shall not be authorized to pay any salary, benefits or other compensation to a superintendent which are not specified in the contract on file and shall not pay administrators any amounts for accumulated sick leave that are not calculated on the same formula used for determining payment for accumulated sick leave benefits for other full-time employees of that school district and shall not pay administrators any amounts for accumulated vacation leave benefits that are not calculated on the same formula used for determining payment for accumulated vacation leave benefits for other twelve-month full-time employees of that school district.

E. By October 1 of each year each district board of education shall prepare a schedule of salaries and fringe benefits paid administrators employed by the district, including a description of the fringe benefits. The schedule shall be a public record and shall be disclosed as required by the Oklahoma Open Records Act board shall file a copy of the schedule with the State Department of Education within one week of completion.

F. For purposes of this section the term “administrator” shall include employees who are employed and certified as superintendents, assistant superintendents, principals, and assistant principals and who have responsibilities for supervising classroom teachers.

In the absence of a uniform formula, any provision in a superintendent’s contract which provides for the payment of accumulated and unused sick leave upon retirement is contrary to law and therefore void. Adams v. ISD No. 43 of Okmulgee County, 1998 OK CIV APP 104, 964 P.2d 237.

A school district may only pay for disability insurance for a superintendent if such a benefit is specified in the employment contract. August 28, 1995 (AG Op. No. 95-57)

Section 106. Incentive Pay Plans. (70 O.S. § 5-141.2)

A. In addition to incentive pay plans authorized pursuant to Section 4 of this act, the State Board of Education shall develop not fewer than five different model incentive pay plans and shall distribute information about each plan to every school district board of education. No plan developed by the Board or implemented by a school district board of education shall permit payment in any one (1) year of incentives to any one teacher amounting to more than fifty percent (50%) of the regular salary of the teacher, exclusive of fringe benefits or extra duty pay. Any incentive pay award shall be an annual award and shall not be a part of a continuing contract of a teacher. Any incentive pay awards received shall be excluded from the compensation of a teacher for purposes of calculating retirement pursuant to the Teachers' Retirement System of Oklahoma and shall not be subject to taxes levied by the Federal Insurance Contributions Act (F.I.C.A.), to the extent an exemption is provided by federal law.

B. A school district board of education may adopt an academically based, district incentive pay plan for the classroom teachers in the district. The district may adopt any incentive pay plan consistent with the requirements of this section, which may include any incentive pay plan developed by the State Board of Education pursuant to this section. The school district board of education shall appoint an advisory committee consisting of teachers, parents, business persons or farmers and other local citizens to advise the board in formulating an incentive pay plan. Prior to the adoption of a plan, the board of education shall place the plan on the school board agenda for public comment and shall submit the plan to the State Board of Education for final approval on or before March 1 prior to implementation of the plan during the succeeding school year. The board of education shall comply with the provisions of this subsection for any year a plan is to be modified.

C. A school district shall be required to adopt and implement an academically based, district incentive pay plan for any school year following the receipt by the school district board of education, of a petition signed by twenty percent (20%) of the classroom teachers employed in the district which calls for the adoption of an incentive pay plan for the district.

D. Student test scores shall not be the sole criterion for allocation of incentive pay under any plan developed or approved by the Board.

E. For the purposes of this section only, “classroom teacher” shall mean any employee who holds certification and assignment outside the classification of administrator.

F. The State Board of Education shall promulgate rules necessary for the effective implementation and administration of this section.

G. Each school district board of education shall provide for a local evaluation committee which shall advise the board on which teachers are to receive incentive pay awards and the amount of each incentive pay award according to the plan.

H. Nothing herein shall preclude a school district from supplementing any monies appropriated to the district for the purposes of funding the incentive pay plan of the district with monies from the general fund for the district.

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Section 107. Incentive Pay Plans - Reimbursement. (70 O.S. § 5-141.3)

Teacher Incentive Pay programs that have been approved by the State Board of Education prior to implementation and have been evaluated by the State Board of Education to have successfully completed the year according to the approved district plan shall be eligible for partial reimbursement of incentive pay awards from the funds appropriated for Teacher Incentive Pilot Programs. Such state reimbursements shall not exceed fifty percent (50%) of the amount awarded to any teacher not to exceed Five Hundred Dollars ($500.00), whichever is less. Such reimbursements shall not be provided to more than fifty percent ((50%) of the certified instructional staff of a school district. Application for reimbursement shall be submitted to the State Board of Education no later than July 1 of the year following the implementation year and reimbursement of approved claims shall occur no later than September 1.

Section 107.1. Evaluation-Based Incentive Pay. (70 O.S. § 5-141.4)

1. In addition to incentive pay plans authorized pursuant to Section 5-141.2 of Title 70 of the Oklahoma Statutes, beginning with the 2012-13 school year, a school district may implement an incentive pay plan that rewards teachers who are increasing student and school growth in achievement.

2. Teacher performance shall be measured using the Oklahoma Teacher and Leader Effectiveness Evaluation System (TLE) as set forth in Section 6 of this act.

3. Individual teacher incentive pay awards shall be based upon:

a. achieving either a “superior” or “highly effective” rating under the TLE, and

b. grade level, subject area, or school level performance success.

1. Beginning with the 2012-13 school year, a school district may implement an incentive pay plan as authorized pursuant to this section.

2. For purposes of this section, “leader” means a principal, assistant principal or any other school administrator who is responsible for supervising classroom teachers.

3. School leader effectiveness shall be measured using the Oklahoma Teacher and Leader Effectiveness Evaluation System (TLE) as set forth in Section 6 of this act.

4. Individual school leader incentive pay awards shall be based upon:

a. achieving either a “superior” or “highly effective” rating under the TLE, and

b. grade level, subject area, or school level performance success.

C. Incentive pay plans implemented pursuant to subsections A and B of this section shall be developed through a collaborative planning process involving stakeholders, including teachers and school leaders.

D. In addition to individual teacher and leader incentive pay plans, as authorized pursuant to this section, districts may develop and implement incentive pay systems for:

1. Teaching in critical shortage subject areas including, but not limited to, foreign language;

2. Teachers and leaders who work in low-performing schools as determined by the State Board of Education;

3. Teaching in the subject areas of Science, Technology, Engineering, and Math (STEM); or

4. Teachers and leaders who work in schools or school districts designated by the State Board of Education as hard-to-staff.

1. Prior to implementation of any incentive pay plan developed pursuant to this section, the school district board of education shall place the plan on the agenda for public comment at a meeting of the district board of education.

2. After approval of the incentive pay plan, the school district board of education shall submit the plan to the State Board of Education for final approval. Within sixty (60) days of receipt of the plan, the State Board shall review and approve or reject the plan. If it is determined that the plan meets the requirements of this section, the State Board shall approve the plan. If the plan does not meet the requirements of this section, the State Board shall reject the plan and provide written notification to the school district board of education along with the grounds for rejection.

3. The district board of education shall comply with the provisions of this subsection for any year a plan is to be modified.

F. Any incentive pay award shall be an annual award and shall not be a part of a continuing contract for an employee. Any incentive pay award to any teacher or leader shall not exceed more than fifty percent (50%) of the regular salary of the teacher or leader, exclusive of fringe benefits or extra duty pay. Any incentive pay awards received shall be excluded from compensation for purposes of calculating retirement pursuant to the Teachers' Retirement System of Oklahoma and shall not be subject to taxes levied by the Federal Insurance Contributions Act (F.I.C.A.), to the extent such exemption is provided by federal law.

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Section 108. Information Concerning Felony Offense Conviction of School Employee or Prospective School Employee (30,000 or less ADM). (70 O.S. § 5-142)

A. Except as otherwise provided for in subsection F of this section, for purposes of employment, a board of education may request in writing to the State Board of Education that a national criminal history record check be conducted of any employee of the school and shall request such information for any person seeking employment with the school. The Oklahoma State Bureau of Investigation (OSBI) shall obtain fingerprints of the employee or prospective employee and require that the person pay a search fee not to exceed Fifty Dollars ($50.00) or the cost of the search, whichever is the lesser amount. The fees shall be deposited in the OSBI Revolving Fund. School districts may reimburse employees for the cost of the search. The State Board of Education shall contact the Oklahoma State Bureau of Investigation for any national criminal history record of the person within fourteen (14) working days of receiving a written request from the board of education.

B. The Oklahoma State Bureau of Investigation shall provide the national criminal history record check requested by the State Board of Education within fourteen (14) working days from the receipt of the request. The Bureau may contact the Federal Bureau of Investigation to obtain the information requested.

C. The State Board of Education shall provide the information received from the Oklahoma State Bureau of Investigation to the board of education within fourteen (14) days from the receipt of the information. The State Board of Education shall provide any follow-up information received from the OSBI concerning a person for which a national criminal history record check was requested to the employing board of education.

D. For the purpose of this section:

1. “Board of education” includes both public and private boards of education within or outside this state;

2. “National criminal history record check” means a national criminal history record check as defined in Section 150.9 of Title 74 of the Oklahoma Statutes; and

3. “Prospective employee” means an individual who has received an offer of temporary employment by a school district pending the results of the national criminal history record check.

E. Each public board of education within this state shall promulgate a statement regarding the felony record search policy for that school district. The policy may permit temporary employment of prospective employees for a maximum of sixty (60) days pending receipt of results of national criminal history record check requests. The temporary employment of the prospective employee shall terminate after sixty (60) days unless the school district receives the results of the national criminal history record check. The sixty-day temporary employment period shall begin on the first day the prospective employee reports for duty at the employing school district. Prospective employees shall be notified of the requirement, the fee and the reimbursement policy when first interviewed concerning employment. The school district's reimbursement policy shall provide, at the minimum, that employees shall be promptly reimbursed in full for the fee if employed by the district at the time the national criminal history record check request is made unless the person was employed pending receipt of results as set forth above.

F. For any person applying for employment as a substitute teacher, a national criminal history record check shall be required for the school year; provided however, a board of education may choose whether to require a national criminal history record check from a prospective substitute teacher who has been employed by the school district in the last year. Any person applying for employment as a substitute teacher in more than one school district shall only be required to have one national criminal history record check, and, upon the request of the substitute teacher, that record check shall be sent to all other school districts in which the substitute teacher is applying to teach. Any person employed as a fulltime teacher by a school district in this state in the five (5) years immediately preceding an application for employment as a substitute teacher may not be required to have a national criminal history record check, if the teacher produces a copy of a national criminal history record check completed within the preceding five (5) years and a letter from the school district in which the teacher was last employed stating the teacher left in good standing.

G. The provisions of this section shall not apply to technology center employees hired on a part-time or temporary basis for the instruction of adult students only.

H. Nothing in this section shall be construed to impose liability on school districts, except in negligence, for employing prospective employees within the sixty-day temporary employment window pending the results of the national criminal history record check.

Section 108. Information Concerning Felony Offense Conviction of School Employee or Prospective School Employee (30,000 or less ADM). (70 O.S. § 5-142)
(Effective August 24, 2012)

D. For the purpose of this section:

1. “Board of education” includes both public and private boards of education within or outside this state;

2. “National criminal history record check” means a national criminal history record check as defined in Section 150.9 of Title 74 of the Oklahoma Statutes; and

3. “Prospective employee” means an individual who has received an offer of temporary employment by a school district pending the results of the national criminal history record check.

1. For any person applying for employment as a substitute teacher, a national criminal history record check shall be required for the school year; provided however, a board of education may choose whether to require a national criminal history record check from a prospective substitute teacher who has been employed by the school district in the last year.

2. Any person applying for employment as a substitute teacher in more than one school district shall only be required to have one national criminal history record check, and, upon the request of the substitute teacher, that record check shall be sent to all other school districts in which the substitute teacher is applying to teach. Any person employed as a fulltime teacher by a school district in this state in the five (5) years immediately preceding an application for employment as a substitute teacher may not be required to have a national criminal history record check, if the teacher produces a copy of a national criminal history record check completed within the preceding five (5) years and a letter from the school district in which the teacher was last employed stating the teacher left in good standing.

3. Any person employed as a full-time teacher by a school district in this state for ten (10) or more consecutive years immediately preceding an application for employment as a substitute teacher in the same school district may not be required to have a national criminal history record check for as long as the person remains employed for consecutive years by that school district as a substitute teacher, if the teacher left full-time employment in good standing. If the teacher applies for employment as a substitute teacher in another school district, a national criminal history record check shall be required.

G. The provisions of this section shall not apply to technology center employees hired on a part-time or temporary basis for the instruction of adult students only.

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Section 109. Repealed.

Section 110. Notification of Arrest for Felony. (70 O.S. § 5-144)

A. If in the course of an investigation it is discovered that a person charged in an information or indictment with a felony or violent misdemeanor is a student or employee of a school district or a public school in the state, or an employee working on school property for an entity that provides services to a school district or a public school on school property, with due regard for the provisions of subsection C of Section 2-6-102 of Title 10A of the Oklahoma Statutes, the district attorney shall notify the superintendent of the district of the charges filed against the student or employee.

B. The school district may take any action it deems necessary that is in compliance with the requirements of the Family Educational Rights and Privacy Act of 1974 with regard to such information.

Section 111. Local Foundations - Definitions - Beneficiaries. Membership - Records. (70 O.S. § 5-145)

A. District school boards of education should be encouraged to explore the potential benefits of local foundations and public school/business partnerships as supplements to basic programs publicly funded.

B. No local foundation, as defined in subsection C of this section, shall make, and no public school, public school personnel, or school district shall accept, any gift, grant or donation of real or personal property from any local foundation unless the local foundation complies with the requirements of this section and with such other requirements for such organization as are required by Title 18 of the Oklahoma Statutes.

C. As used in this section, “local foundation” means any company, trust, corporation or association:

1. that solicits money or property in the name of any public school district, public school or public school organization; and

2. which is exempt from federal income taxes or is verifiably and in good faith in the process of obtaining federal tax exemption status pursuant to the provisions of Section 501(c)(3) of the Internal Revenue Code. If the local foundation is in the process of obtaining exemption status in accordance with this paragraph, the local foundation may make gifts, grants or donations pursuant to this section provided it has advised the district board of education of the status of any application for tax exemption and continues to provide the board such information each year thereafter. Any local foundation which has been denied such exemption or ceases to qualify for such exemption by the Internal Revenue Service shall not be authorized to function pursuant to this section.

D. Student organizations or club projects whose revenue may be deposited in a school activity fund or account pursuant to Section 5-129 of this title shall not be considered “local foundations”.

E. Only school districts, public schools, school personnel and students or direct functions of a school district may be the beneficiaries of any awards, grants or other benefits of a local foundation.

F. The board of education of any school district in this state may refuse to accept any donation of real or personal property offered by or through a local foundation and shall have the final authority to accept or refuse to accept any grant or award offered by a local foundation for the benefit of the school district.

G. In order to assure the fairness, objectivity, and integrity of its operations, and that its purposes and policies are consistent with the goals of the State Board of Education, the board of education of the school district may consider the process used in selecting recipients of benefits or merit awards by any local foundation in deciding whether to accept or reject the gift, grant or donation.

H. No employee of the district shall be a voting member of a local foundation board which is established in that school district. Members of the board of education may serve on the board of a local foundation, but shall not constitute a majority of the members of the board of directors of the foundation. No other elected official of state or local government shall be compensated by the local foundation. The total number of ex officio local foundation members shall be less than the number of voting members of the local foundations. No ex officio member of the local foundation board or employee of the school district shall be compensated by the local foundation for service as an ex officio member of the local foundation.

I. Any local foundation which makes a gift, grant or donation to any school district, public school, or school personnel of this state, regardless of when established, shall make all of its financial records and documents available to auditors who are performing audits of the school district. Such financial records and documents, other than the list of contributors, shall be open for public inspection upon written request by any person.

J. A public school district shall not directly or indirectly transfer any funds to any local foundation or render services or provide any thing of value to any local foundation without receiving documented adequate payment or reimbursement therefor according to written contract. Nothing herein shall be construed as prohibiting payment by the district of claims for expenses of fund-raising for the benefit of the district if such fund-raising activities are approved in advance by the district board of education and made a part of the minutes of the meeting of the board. Nothing herein shall be construed as prohibiting the district from providing space in a school district building or on school district property to the foundation for office or business purposes in exchange for the financial benefits provided to the district by the foundation if approved by the district board of education and made a part of the minutes of the meeting of the board.

A school district may conduct a joint fund raiser with a non-profit organization that qualifies as a “local foundation.” April 28, 1992 (AG Inf. Op. No. 91-514)

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Section 111.01. Assault and Battery on School Employee. (70 O.S. § 5-146)

A. Any school employee, as defined by subsection A of Section 650.7 of Title 21 of the Oklahoma Statutes, upon whom an assault, battery, assault and battery, or aggravated battery or aggravated assault and battery is committed while in the performance of any duties as a school employee shall notify either the superintendent, building administrator, or one member of a Safe School Committee of the school district employing the school employee. The building administrator or member of the Safe School Committee shall notify the superintendent of the assault, battery, assault and battery, aggravated battery or aggravated assault and battery.

B. The superintendent shall notify the State Department of Education of all incidents described in subsection A of this section for the previous year on July 1 of each year. The report shall include a description of the battery or assault and battery, and the final disposition of each incident.

C. The State Department of Education shall submit a report to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Governor on December 1 of each year.

D. For purposes of this section, “assault” shall be defined by Section 641 of Title 21 of the Oklahoma Statutes, “battery” shall be defined by Section 642 of Title 21 of the Oklahoma Statutes, and “aggravated assault and battery” shall be defined by Section 646 of Title 21 of the Oklahoma Statutes.

E. No school employee shall be subject to any civil liability for any statement, report, or action taken in reporting or assisting in reporting a battery or assault and battery which is committed upon the school employee while in the performance of any duties unless such report or assistance was made in bad faith or with malicious purpose.

F. Every school district shall have and deliver to each school employee a written policy that such employee shall follow if an assault, battery or assault and battery is committed upon the school employee while in the performance of any school duties.

Note: See also Sec. 1041.1.

Section 111.01.A. Reporting Suspected Gang Activity. (70 O.S. § 5-146.1)

A. Any school employee, as defined by subsection A of Section 650.7 of Title 21 of the Oklahoma Statutes, who has reason to believe that a child under the age of eighteen (18) years is involved in gang activity shall notify the person designated by the school district. Upon receiving such report, the person designated by the school district may report the matter to the nearest local law enforcement agency. The report may be made by telephone, in writing, personally or by any other method prescribed by the school district.

B. A school district employee or contractor who, in good faith and exercising due care in the making of a report pursuant to subsection A of this section, shall be granted immunity from all civil or criminal liability which might be incurred or imposed by making such report.

Note: Enacted by SB 923, Sec. 3 of the 2011 Reg. Sess. Effective November 1, 2011.

Section 111.02. Foods of Minimal Nutritional Value. (70 O.S. § 5-147)

A. Each district board of education shall ensure that students in elementary schools do not have access to foods of minimal nutritional value except on special occasions.

B. Each district board of education shall ensure that students in middle and junior high schools do not have access to foods of minimal nutritional value except after school, at events which take place in the evening, and on special occasions. The only exception to the minimal nutritional value standard will be diet soda with less than ten (10) calories per bottle or can.

C. Each district board of education shall ensure that students in high schools are provided healthy food options in addition to any foods of minimal nutritional value to which they may have access at school. Each district shall provide incentives, such as lower prices or other incentives, to encourage healthy food choices for high school students.

D. For purposes of this section, “foods of minimal nutritional value” means any foods so defined in 7 CFR 210.11 and listed in Appendix B of the regulations for the National School Lunch Program.

E. The State Board of Education shall adopt rules to implement the provisions of this section.

Section 111.03. Lockdown Drills. (70 O.S. § 5-148)

Each district board of education shall ensure that a minimum of two lockdown drills are conducted at each public school within the district each school year. No lockdown drill shall be conducted at the same time of day as a previous lockdown drill conducted in the same school year, and no more than two lockdown drills shall be conducted in one semester. Additional drills may be conducted at the discretion of the district. Lockdown drills shall be conducted for the purpose of securing school buildings to prevent or mitigate injuries or deaths that may result from a threat on or near the school. The drills shall conform to the written plans and procedures adopted by the district as required by Section 681 of Title 63 of the Oklahoma Statutes. All students and employees shall participate in the drills, with the extent of student involvement to be determined by the district.

The State Board of Education shall adopt rules to implement the provisions of this section.

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Section 111.1. School District Budget Act. (70 O.S. § 5-150)

This act shall be known and may be cited as the “School District Budget Act”.

Section 111.2. Purpose of School District Budget Act. (70 O.S. § 5-151)

The purpose of the School District Budget Act is to provide an alternate budget procedure for school districts which will:

1. Establish standard and sound fiscal procedures for the adoption and administration of budgets;

2. Make available to the public and investors sufficient information as to the financial conditions, requirements and expectations of the school district; and

3. Assist school districts to improve and implement generally accepted standards of financial management as promulgated by the Governmental Accounting Standards Board (GASB).

Section 111.3. Applicability of School District Budget Act. (70 O.S. § 5-152)

The School District Budget Act shall be optional and shall apply only to a school district which, by resolution of the governing body, votes to comply with the provisions of the School District Budget Act. If the governing body of a school district votes to comply with the School District Budget Act to govern its budget procedures, the provisions of the School District Budget Act shall take precedence over any other state laws applicable to school budgets, except as otherwise provided by the School District Budget Act. Any action of a school district governing body to implement or repeal budgeting procedures in compliance with the School District Budget Act shall be effective only at the beginning or end of a budget year respectively pursuant to the School District Budget Act.

Section 111.4. Definitions. (70 O.S. § 5-153)

As used in the School District Budget Act:

1. “Account” means an entity for recording specific revenues or expenditures, or for grouping related or similar classes of revenues and expenditures and recording them within a fund;

2. “Appropriation” means an authorization and allocation of money to be expended for a purpose;

3. “Budget” means a plan of financial operations for a fiscal year, including an estimate of proposed expenditures for given purposes and the proposed means for financing them;

4. “Budget summary” means a tabular listing of revenues by source and expenditures by fund for the budget year;

5. “Budget year” means the fiscal year for which a budget is prepared or is being prepared;

6. “Chief executive officer” means the superintendent of an independent school district or the elementary superintendent of a dependent school district;

7. “Current year” means the year in which the budget is prepared and adopted, or the fiscal year immediately preceding the budget year;

8. “Deficit” means the excess of the liabilities of a fund over its assets as reflected by its books of record;

9. “Estimated revenue” means the amount of revenues estimated to be received during the budget year in each fund for which a budget is prepared;

10. “Fiscal year” means the annual period for reporting fiscal operations which begins and ends on dates as the Legislature provides;

11. “Fund” means an independent fiscal and accounting entity with a self-balancing set of accounts to record cash and other financial resources, together with all liabilities, which are segregated for the purpose of carrying on specific activities for attaining certain objectives;

12. “Fund balance” means the excess of the assets of a fund over its liabilities, as reflected by its books of record;

13. “Governing body” means the board of education of the school district;

14. “Immediate prior fiscal year” means the year preceding the current year;

15. “Levy” means to impose ad valorem taxes or the total amount of ad valorem taxes for a purpose or entity;

16. “Operating reserve” means that portion of the fund balance which has not been appropriated in a budget year; and

17. “School district” means any independent or dependent school district or a technology center school district.

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Section 111.5. Preparation of Budget. (70 O.S. § 5-154)

For a school district acting in accordance with the School District Budget Act, within the thirty-day period preceding the beginning of each fiscal year, a budget for the school district shall be approved by the governing body. The chief executive officer may require any other officer or employee who is charged with the management or control of any department or office of the school district to furnish estimates for the fiscal year covering estimated revenues and expenditures of the department or office on or before a date set by the chief executive officer.

Section 111.6. Budget Summary - Public Hearings. (70 O.S. § 5-155)

A. The school district budget shall represent a complete plan for the school district and shall present information necessary and proper to disclose the financial position and condition of the school district and the revenues and expenditures thereof, both past and anticipated.

B. A school district budget shall contain a budget summary. It shall also be accompanied by a budget message which shall explain the budget and describe its important features. It shall contain at least the following in tabular form for each fund:

1. Actual revenues and expenditures for the immediate prior fiscal year;

2. Revenues and expenditures for the current fiscal year as shown by the budget for the current year as adopted or amended; and

3. Estimates of revenues and expenditures for the budget year.

C. The school district governing body shall hold a public hearing on the proposed budget within forty-five (45) days preceding the beginning of the budget year. Notice of the date, time and place of the hearing, together with the proposed budget summary, shall be published in a newspaper of general circulation in the school district not less than five (5) days before the date of the hearing. The clerk of the board shall make available a sufficient number of copies of the proposed budget as the governing body shall determine and shall have them available for review or for distribution at the office of the chief financial officer. At the public hearing on the budget any person may present to the governing body comments, recommendations or information on any part of the proposed budget.

D. The adopted budget shall be in effect no later than the first day of the fiscal year to which it applies. The budget as adopted and filed with the State Auditor and Inspector shall constitute an appropriation for each fund, and the appropriation thus made shall not be used for any other purpose except as provided by law.

E. Each school district shall amend the original budget after June 30 of each year after the June financial activity has been recorded, the annual Foundation and Salary Incentive Aid allocation has been released, and the property tax valuations have been certified for all affected counties within the school district. The amended budget shall include all of the following information which is applicable:

1. Valuation of the school district by county and classification, excluding homestead exemptions;

2. Bonded debt and judgments outstanding, including interest rates by maturity;

3. Matured debt and judgments;

4. Sinking fund balance, including cash and investments;

5. Sinking fund levy calculations, including surplus/deficit, principal accrual, annual interest, judgment installment and interest, total net levy and delinquency;

6. Levies in millage for general fund, building fund and sinking fund;

7. Millage adjustment factor, if applicable;

8. Previous year sinking fund collections, including total proceeds as certified, additions or deductions, reserve for delinquent tax, reserve for protest pending, tax apportioned, net balance in process of collection, and excess collections; and

9. Surplus analysis, including itemized sources of excess and deductions.

F. At the time required by law, the county excise board shall levy the taxes necessary for the school district general fund, building fund and sinking fund for the budget year pursuant to Sections 397 and 399 of Title 62 of the Oklahoma Statutes, and for the school district general and building funds for the budget year pursuant to Section 9 of Article X of the Oklahoma Constitution.

Section 111.7. Taxpayer Protests. (70 O.S. § 5-156)

Within fifteen (15) days after the filing of any school district budget with the county excise board of each county in which the school district is located and with the State Auditor and Inspector, any taxpayer may file protests with the State Auditor and Inspector against any alleged illegality of the budget in the manner provided by this section and Sections 3023 through 3031 of Title 68 of the Oklahoma Statutes. The fifteen-day protest period begins upon the date the budget is received in the Office of the State Auditor and Inspector as filed by the county excise board. After receipt of a taxpayer protest, the State Auditor and Inspector shall transmit by certified mail one copy of each protest to the clerk of the board of education, and one copy of each protest to the school district treasurer and the excise board of each county in which the school district is located. The taxpayer protest shall specify the alleged illegality in the budget and the grounds upon which the alleged illegality is based. Any protest filed by any taxpayer shall inure to the benefit of all taxpayers. If no protest is filed by any taxpayer within the fifteen-day period, the budget and any appropriations thereof shall be deemed legal and final until amended by the governing body or the county excise board as authorized by law. Taxpayers shall have the right at all reasonable times to examine the budget on file with the clerk of the board of education, the county excise board, or the State Auditor and Inspector for the purpose of checking illegalities in the budget or for filing protests in accordance with this section and Sections 3023 through 3031 of Title 68 of the Oklahoma Statutes.

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Section 111.8. Expenditures - Obligations. (70 O.S. § 5-157)

A. No expenditure may be authorized or made by any officer or employee of a school district which exceeds the appropriation for any fund of the budget as adopted or amended. Any balance remaining in a fund at the end of the budget year shall be carried forward to the credit of the fund for the next budget year pursuant to law.

B. It shall be unlawful for any officer or employee of the school district in any budget year:

1. To create or authorize creation of a deficit in any fund; or

2. To authorize, make or incur expenditures or encumbrances in excess of one hundred percent (100%) of the appropriation for any fund of the budget as adopted or amended until revenues in an amount equal to at least one hundred percent (100%) of the appropriation for the fund have been collected. Any fund balance which is included in the appropriation for the fund is considered revenue in the budget year for which it is appropriated. Expenditures may then be made and authorized so long as any expenditure does not exceed any fund balance.

C. Any obligation that is contracted or authorized by any officer or employee in violation of this act shall become the obligation of the officer or employee himself and shall not be valid or enforceable against the school district. Any officer or employee who violates this act shall forfeit his office or position and shall be subject to such civil and criminal punishments as are provided by law. Any obligation, authorization for expenditure or expenditure made in violation of this act shall be illegal and void.

Section 111.9. Funds - Accounts. (70 O.S. § 5-158)

A school district shall establish funds consistent with legal and operating requirements. Each school district shall maintain according to its own needs some or all of the following funds or ledgers in its system of accounts:

1. A general fund, to account for all monies received and disbursed for general school district purposes, including all assets, liabilities, reserves, fund balances, revenues and expenditures which are not accounted for in any other fund or special ledger account;

2. Special revenue funds, as required, to account for the proceeds of specific revenue sources that are restricted by law to expenditures for specified purposes;

3. Debt service fund, which shall include the school district sinking fund, established to account for the retirement of general obligation bonds, building bonds, transportation bonds or other long term debt and payment of interest thereon and judgments as provided by law. Any monies pledged to service general obligation bonds, building bonds, transportation bonds or other long term debt must be deposited in the debt service fund;

4. Capital improvement fund, to account for financial resources segregated for acquisition, construction or other improvement related to capital facilities other than those financed by general long term debt;

5. Enterprise funds, to account for operations that are financial and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation), of providing goods or services on a continuing basis be financed or recovered primarily through user charges or where there is a periodic need to determine revenues earned, expenses incurred or net income for a service or program;

6. Trust and agency funds, to account for assets held by the school district as trustee or agent for individuals, private organizations or other governmental units or purposes, such as a retirement fund, employee health insurance fund or a school activity fund;

7. Internal service funds, to account for the financing of goods or services provided by one department or agency of the school district to another department or agency, or to another government, on a cost reimbursement basis;

8. A ledger or group of accounts in which to record the details relating to the general fixed assets of the school district;

9. A ledger or group of accounts in which to record the details relating to the general obligation bonds, building bonds, transportation bonds or other long term debt of the school district; or

10. Such other funds or ledgers as may be established by the board of education.

Section 111.10. Classifications of Revenues and Expenditures. (70 O.S. § 5-159)

Each fund shall be made up of accounts for classifying revenues and expenditures. Revenues shall be classified separately by source. Expenditures shall be classified into the dimensions required by the State Department of Education or, for technology center schools, the Oklahoma Department of Career and Technology Education.

Section 111.11. Transfers Between Funds or Accounts. (70 O.S. § 5-160)

The chief executive officer, or designee, as authorized by the governing body, may transfer any unexpended and unencumbered appropriation or any portion thereof from one account to another within the same fund; except that no appropriation for debt service or other appropriation required by law or regulation may be reduced below the minimums required. Other interfund transfers may be made only as authorized by this act or as provided in the budget as adopted or amended according to this act. Whenever the necessity for maintaining any special fund of a school district has ceased to exist and a balance remains in the fund, the governing body may authorize the transfer of the balance to the general fund. Applicable law shall govern the use or transfer of any remaining balance in any debt service or bond fund.

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Section 111.12. Amendment of Budget. (70 O.S. § 5-161)

A. The governing body may amend the budget to make supplemental appropriations to any fund up to the amount of additional revenues which are available for current expenses as shown by a fund balance for the fund due to:

1. Revenues received or allocated from sources not anticipated in the budget for that year;

2. Revenues received or allocated from anticipated sources but in excess of the budget estimates therefor; or

3. Unexpended unencumbered cash balances on hand at the end of the preceding fiscal year which had not been anticipated in the budget. Any appropriation authorizing the creating of an indebtedness shall be governed by the applicable provisions of Article X of the Oklahoma Constitution.

B. If at any time during the budget year it appears probable that revenues available will be insufficient to meet the amount appropriated, or that due to unforeseen emergencies there temporarily is insufficient money in a particular fund to meet the requirements of appropriation for the fund, the governing body may amend the budget to reduce one or more appropriations or it may amend the budget to transfer money from one fund to another fund, but no appropriation for debt service may be reduced and no appropriation may be reduced by more than the amount of the unencumbered and unexpended balance. No transfer shall be made from the debt service fund to any other fund except as may be permitted by the terms of the bond issue or by law.

C. Any budget amendment, as provided in this section, authorizing supplemental appropriations or a decrease or change in appropriation or funds shall be adopted by the governing body at a meeting held in accordance with the Oklahoma Open Meeting Act and filed with the clerk of the board of education, the county excise board of each county in which the school district is located, and the State Auditor and Inspector.

Section 111.13. Transfer of Appropriations. (70 O.S. § 5-170)

For the fiscal year ending June 30, 2004, the superintendent of a school district or designee may transfer any unexpended or unencumbered appropriation in an amount not to exceed twenty-five percent (25%) of the total appropriation from one account, fund, or program category to another account, fund, or program category. The amount to be transferred, together with all previous transfers, shall not exceed twenty-five percent (25%) of the total appropriation to the account, fund or program category from which the transfer is being made. Provided, funds shall not be transferred between the general fund and building fund of any school district. The State Department of Education shall be notified in writing or electronically of all transfers at the time the transfers are made.

Section 111.14 - 111.19. (Reserved)

Section 111.20. Registering Certificates of Indebtedness. (70 O.S. § 5-181)

The treasurer of a school district to whom a certificate of indebtedness or bond is directed for payment shall register the certificate of indebtedness or bond by entering the number, the date, the name of the payee, the fund upon which it is drawn and the amount and shall write on the certificate or bond the date of registration and the name of the treasurer. Certificates of indebtedness or bonds shall be registered in the numerical order in which they are issued and, after registration, shall be given to the encumbrance clerk. No certificate of indebtedness or bond shall be a valid charge until registration by the treasurer. A board of education may contract for and pay a registrar or transfer agent to transfer ownership or change of payee of any certificate of indebtedness or bond issued by the school district and to maintain relevant books and records. The treasurer shall record payment of certificates of indebtedness or bonds and mark “paid” on the face of paid certificates of indebtedness or bonds.

Section 111.21. Warrants in Excess of Estimated and Approved Expenses. (70 O.S. § 5-182)

It shall be unlawful for any school district officer to issue, approve, sign, or attest any check, warrant or certificate of indebtedness in any form in excess of the estimate of expenses made and approved for the current fiscal year or authorized for such a purpose by a bond issue and any such check, warrant or certificate of indebtedness issued, approved, or authorized by a bond issue shall not be a charge against the school district upon which it is issued, but may be collected by civil action from any officer issuing, drawing, approving, signing, or attesting the same, or from either or all of them, or from their bondsmen.

Section 111.22. Penalties Against Treasurer. (70 O.S. § 5-183)

Any treasurer who shall willfully or knowingly register or pay a warrant, check or certificate of indebtedness, issued in excess of the estimate made and approved by the excise board for the current fiscal year or in excess of a bond issue for such purpose, shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than One Thousand Dollars ($1,000.00) or by imprisonment in the county jail not exceeding one (1) year or by both the fine and imprisonment.

Section 111.23. Penalties Against School Officer. (70 O.S. § 5-184)

Any school district officer willfully or knowingly contracting, incurring, acknowledging, authorizing, allowing, or approving any indebtedness or any officer issuing, drawing, or attesting any check, warrant or certificate of indebtedness in excess of the estimate made and approved by the excise board for such purpose for the current fiscal year or in excess of the specific amount authorized for such purpose by a bond issue, shall be deemed guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for not to exceed one (1) year or by both the fine and imprisonment, and shall forfeit and be removed from office pursuant to state law.

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Section 111.24. Statute of Limitations on Warrants. (70 O.S. § 5-185)

Without regard to the time when funds may be collected and are available to pay a check or warrant issued by a school district, any school district check or warrant shall be due one (1) year after the close of the fiscal year for which the check or warrant was issued and action may be commenced in any court of competent jurisdiction to enforce the liability evidenced by the check or warrant. Any action to enforce the liability evidenced by the check or warrant shall thereafter be barred, and the lapse of time need not be asserted as defense in any action for the school district to be relieved of liability.

Section 111.25. Warrants in Excess of Appropriations. (70 O.S. § 5-186)

It shall be unlawful for the governing board of education to issue any check, warrant or certificate of indebtedness, in any form, in payment of, or representing or acknowledging any account, claim, or indebtedness against the school district, or to make any contracts for, or incur any indebtedness against the school district in excess of the amount then unexpended and unencumbered of the sum appropriated for the specific item of estimated needs for such purpose theretofore made, submitted, and approved, or authorized for such purpose by a bond issue. The signature of the board president and clerk shall be notification to the public that the check or warrant is for the purpose and within the amount of the appropriation charged.

Section 111.26. Publishing Notices of Claims. (70 O.S. § 5-187)

All unencumbered balances, if any, as shown by the officer charged with keeping the appropriation and expenditure records of the school district on hand at the close of day June 30, may remain as a credit for said fiscal year up to the close of day September 30. If a date earlier than September 30 is established, the encumbrance clerk shall publish, on the district’s web site for two consecutive times if also published in a daily newspaper and once if published in a weekly newspaper of general circulation in the school district, notice of the date set by the board of education for the submission of all claims against unencumbered balances of the prior fiscal year in the following form:

PUBLIC NOTICE

All having a claim against the ____ Public School District are notified that all invoices and required documentation pertaining to an approved purchase order for services rendered or goods or materials delivered pursuant to that purchase order must be recorded with the encumbrance clerk of the district on or before the ____ day of _____, 20__, covering all debts now unpaid and incurred during the period of the prior fiscal year beginning on July 1, 20__, and ending on June 30, 20___, or the claim upon which the invoice or purchase order is based shall be void and forever barred.
__________________________
District Encumbrance Clerk

This section shall not permit the incurring of new indebtedness chargeable to the appropriation account of the immediately preceding fiscal year.

Section 111.27. Supplemental Appropriation. (70 O.S. § 5-188)

Provided all fund balances reserved for unencumbered balance of appropriations for the prior fiscal year on hand at the close of day set by the board of education in the current fiscal year, but in no event later than September 30, may be appropriated by supplemental appropriation to current expense purposes in the current fiscal year in the manner now provided by law. In the event of the recording of an estimated encumbrance or in the event of an increase in the cost of supplies, equipment, material, or services, these underestimations may be provided for during the time period set by the board by the cancellation of appropriations made by the county excise board prior to June 30, subject to the approval of both the governing board and the officer in charge of the department or appropriation account only in instances as set forth and only in amounts sufficient to pay the increased encumbrances, and by reapportionment to the appropriation accounts in which an underestimated encumbrance was made, all in the manner as now provided by law for the making of supplemental appropriations.

Section 111.28. Duplicate Warrants. (70 O.S. § 5-189)

A school district may issue a second or duplicate check or warrant in lieu of any check or warrant that has been issued and subsequently lost or destroyed. No second or duplicate check or warrant shall be issued until the school district has stopped payment on said item by the payor bank or, in the alternative, until an affidavit setting forth the facts as to the loss or destruction of the original check or warrant has been received by the school district from the payee, which affidavit may be received by facsimile transmission. The district board of each school district shall establish policies and procedures as will, as nearly as possible, preclude any loss being sustained by the school district on account of the issuance of any second or duplicate check or warrant.

Section 111.29. Required Training for School Finance Officers. (70 O.S. § 5-190)

A. Before July 1, 2007, every school district treasurer shall complete at least twelve (12) hours of instruction on school finance laws of this state, accounting, ethics, and the duties and responsibilities of a school district treasurer.

B. Before July 1, 2007, every school district encumbrance clerk shall complete at least twelve (12) hours of instruction on school finance laws of this state, accounting, ethics, and the duties and responsibilities of a school district encumbrance clerk.

C. Every school district treasurer and encumbrance clerk employed after July 1, 2007, shall be required, within nine (9) months after employment in the position by a school district, to complete the instruction required pursuant to subsections A and B of this section.

D. Every school district treasurer and encumbrance clerk shall be required to complete a minimum of twelve (12) hours of continuing education every three (3) years, in addition to the requirements of subsections A and B of this section. The requirements of this section shall not apply to any county treasurer who also acts as a school district treasurer; however, nothing herein shall prevent a county treasurer from attending such training or continuing education.

Note: Amended by SB 2968, Sec. 1 of the 2011 Reg. Sess. Effective November 1, 2011.

School Laws of Oklahoma | Chapter 1 - Oklahoma School Code | Article IV: School Districts and Boards of Education | Return to Top of Page

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School Laws of Oklahoma

Chapter 1 - Oklahoma School CodeArticle IV: School Districts and Boards of Education

Section 49. School Districts - Designation. (70 O.S. § 5-101)

Section 50. Independent School Districts. (70 O.S. § 5-102)

Section 51. Elementary School Districts. (70 O.S. § 5-103)

Section 52. Elementary School Districts Offering Grades Above Eighth Grade. (70 O.S. § 5-103.1)

Section 53. Designation of District Retained on Records. (70 O.S. § 5-104)

Section 54. School District - Body Corporate - Powers. (70 O.S. § 5-105)

Section 55. Governing Body of School District. (70 O.S. § 5-106)

Section 55.1. Joint Contracts. (70 O.S. § 5-106A)

Section 56. Independent and Dependent School Districts - Board of Education - Members - Election. (70 O.S. § 5-107A)

Section 56.1. Expansion of Board. (70 O.S. § 5-107B)

Section 57. Workshops for New Board Members - Expenses of Members Attending. (70 O.S. § 5-110)

Section 58. Continuing Education for Board Members - Registration Fees - Reimbursement. (70 O.S. § 5-110.1)

Section 59. Records of Attendance. (70 O.S. § 5-110.2)

Section 60. Relation by Affinity or Consanguinity - Prohibition. (70 O.S. § 5-113)

Section 61. Employment of Relative of Member of Board of Education. (70 O.S. § 5-113.1)

Section 62. Excluding Litigious Board Member from Proceedings. (70 O.S. § 5-113.2)

Section 63. School District Treasurer - Assistant Local Treasurer. (70 O.S. § 5-114)

Section 64. Local Treasurer - Surety Bond - Duties - Cash and Investment Ledgers. (70 O.S. § 5-115)

Section 65. Repealed.

Section 65.1. Payment of Warrants When Insufficient Funds. (70 O.S. § 5-115b)

Section 66. Oath of Office. (70 O.S. § 5-116)

Section 67. Requirements for Bonds for Employees and Officers. (70 O.S. § 5-116a)

Section 67.1. Forfeited Bonds. (70 O.S. § 18-118.1)

Section 68. Powers and Duties. (70 O.S. § 5-117)

Section 69. Manufacturers and Countries of Origin - Disclosure. (70 O.S. § 5-117a)

Section 70. Interlocal Cooperative Agreements Between School Districts. (70 O.S. § 5-117b)

Section 71. Cooperative Agreement with District in Adjacent State. (70 O.S. § 5-117.1)

Section 71.1. Correctional Facilities May Be Allowed. (70 O.S. § 5-117.1a)

Section 72. State Board of Education - Rules and Regulations. (70 O.S. § 5-117.2)

Section 73. Average Daily Attendance. (70 O.S. § 5-117.3)

Section 74. Adoption of Four-Year Improvement Plan by Board of Education. (70 O.S. § 5-117.4)

Section 75. Health Insurance Plan Required by School District. (70 O.S. § 5-117.5)

Section 75.1. Regulating Dogs on School District Property. (70 O.S. § 5-117.6)

Section 76. Meetings of Board - Executive Sessions Compensation of Members of Boards of Districts with ADA Exceeding 15,000 or Population Exceeding 100,000. (70 O.S. § 5-118)

Section 77. Officers of Board. (70 O.S. § 5-119)

Section 78. President - Duties. (70 O.S. § 5-120)

Section 79. Vice President - Duties. (70 O.S. § 5-121)

Section 80. Clerk - Duties. (70 O.S. § 5-122)

Section 81. Expenditures - Limitations. (70 O.S. § 5-123)

Section 82. Contracts With Member or Business in Which Interested. (70 O.S. § 5-124)

Section 83. Claims - False - Voting for - Liability. (70 O.S. § 5-125)

Section 84. Refusal, Failure or Neglect of Board - Elector May Institute Action. (70 O.S. § 5-126)

Section 84.1. Discussion of Audit Findings Prior to Release. (70 O.S. § 5-127.1)

Section 85. Annual Statistical and Financial Reports. (70 O.S. § 5-128)

Section 86. Itemized Expenditure Budget and Request for State Appropriated Funds - Estimate of Revenue. (70 O.S. § 5-128.1)

Section 86.1. Electronic Filing. (70 O.S. § 5-128.2)

Section 87. School Activity Fund. (70 O.S. § 5-129)

Section 88. Exemption of Certain Funds. (70 O.S. § 5-129.1)

Section 89. Separate Accounts. (70 O.S. § 5-129.2)

Section 90. School Buildings and Property - Permission to Use for Other Purposes. (70 O.S. § 5-130)

Section 91. Educational Courses - Buildings and Equipment. (70 O.S. § 5-131)

Section 92. Sewage Disposal System. (70 O.S. § 5-131.1)

Section 92.1. Energy Conservation Measures. (70 O.S. § 5-131.2)

Section 93. Students of Legal Age - Completion of Twelfth Grade. (70 O.S. § 5-132)

Section 94. Completion of Requirements for High School Diploma. (70 O.S. § 5-132.1)

Section 95. Apportionment of Taxes Each Year. (70 O.S. § 5-133)

Section 96. Estimates - Emergency, Local Support and Building Levies - Elections. (70 O.S. § 5-134)

Section 97. Repealed.

Section 98. Alternate System of Accounting. (70 O.S. § 5-135)

Section 99. Oklahoma Cost Accounting System. (70 O.S. § 5-135.2)

Section 99.1. Notarized Statement of Architect. (70 O.S. § 5-135.3)

Section 99.2. School District Transparency Act. (70 O.S. § 5-135.4)

Section 100. Certificate of Indebtedness. (70 O.S. § 5-136.1)

Section 101. Registered Nurses - Increments. (70 O.S. § 5-137)

Section 102. School District Employees - Residence. (70 O.S. § 5-138)

Section 103. Payroll Deductions for Organization Dues and Political Contributions. (70 O.S. § 5-139)

Section 104. Payment of Additional Salary in Lieu of Employee Insurance. (70 O.S. § 5-140)

Section 105. Minimum Salary Schedules. (70 O.S. § 5-141)

Section 106. Incentive Pay Plans. (70 O.S. § 5-141.2)

Section 107. Incentive Pay Plans - Reimbursement. (70 O.S. § 5-141.3)

Section 107.1. Evaluation-Based Incentive Pay. (70 O.S. § 5-141.4)

Section 108. Information Concerning Felony Offense Conviction of School Employee or Prospective School Employee (30,000 or less ADM). (70 O.S. § 5-142)

Section 108. Information Concerning Felony Offense Conviction of School Employee or Prospective School Employee (30,000 or less ADM). (70 O.S. § 5-142)(Effective August 24, 2012)

Section 109. Repealed.

Section 110. Notification of Arrest for Felony. (70 O.S. § 5-144)

Section 111. Local Foundations - Definitions - Beneficiaries. Membership - Records. (70 O.S. § 5-145)

Chapter 1 - Oklahoma School Code
Article IV: School Districts and Boards of Education

Section 108. Information Concerning Felony Offense Conviction of School Employee or Prospective School Employee (30,000 or less ADM). (70 O.S. § 5-142)
(Effective August 24, 2012)