ENROLLED HOUSE
BILL NO. 2575	By:	DeWitt and Fields of the House

			and

		Myers of the Senate

An Act relating to schools; amending 70 O.S. 2001, Section 5-135.2, as amended by Section 11, Chapter 472, O.S.L. 2005 (70 O.S. Supp. 2009, Section 5-135.2), which relates to the Oklahoma Cost Accounting System; deleting obsolete language; limiting State Department of Education changes to certain codes and procedures to no more than once per year; requiring certain notification; setting certain deadlines; providing certain exception; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

SECTION 1.     AMENDATORY     70 O.S. 2001, Section 5-135.2, as amended by Section 11, Chapter 472, O.S.L. 2005 (70 O.S. Supp. 2009, Section 5-135.2), is amended to read as follows:

Section 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 School districts shall report financial transactions for all funds using the Oklahoma Cost Accounting System as adopted by the State Board of Education.  Costs shall be reported by curricular subject area where applicable.  Beginning February 1, 2011, and each year thereafter, the State Department of Education shall notify school districts of any changes to the Oklahoma Cost Accounting System reporting codes and procedures for code usage that will be in effect for the following fiscal year.  School districts may provide input on the proposed changes to the Department through March 31.  The Department shall finalize the reporting codes and the procedures for code usage and distribute to school districts by May 1 for implementation beginning July 1.  Reporting codes and procedures for code usage shall not be changed more than once per year.  The addition of source and project codes to track new sources of revenue shall not be subject to the deadlines prescribed by this subsection.

B.  Beginning July 1, 1991, and in each subsequent Each 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 the 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 the 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 the 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 2.  This act shall become effective July 1, 2010.

SECTION 3.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.

Passed the House of Representatives the 3rd day of May, 2010.

	
Presiding Officer of the House of
	Representatives

Passed the Senate the 5th day of April, 2010.

	
Presiding Officer of the Senate