ENGROSSED HOUSE
BILL NO. 2644	By:	Brumbaugh and Blackwell of the House

			    and

		Jolley of the Senate

( schools - reporting financial transactions – penalty - State Department of Education to certify compliance - School District Transparency Act - penalty - data available on its website - effective date – 		emergency )

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     70 O.S. 2011, 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 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 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 the fifth payment, and eight percent (8%) 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.
E.  By December 1, 2012, and by each December 1 thereafter, prior to distributing the next monthly payment of State Aid funds to school districts, the State Department of Education shall certify that:
1.  Each school district has complied with the requirements of the School District Transparency Act;
2.  Each school district has provided information required for the Department to comply with the provisions of the School District Transparency Act; and
3.  All requirements related to school districts in the Taxpayer Transparency Act and Section 34.11.1.1 of Title 62 of the Oklahoma Statutes have been met.
SECTION 2.     AMENDATORY     70 O.S. 2011, Section 5-135.4, is amended to read as follows:
Section 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.  If the Department does not make the data available on its website as required in this subsection, the Office of State Finance shall withhold the transfer of funds to the Department which were appropriated for the purpose of the administrative and support functions of the Department.  The amount withheld by the Office of State Finance shall be an amount equal to not less than one percent (1%) of the total amount appropriated for the administrative and support functions of the Department for the first month, two percent (2%) for the second month, three percent (3%) for the third month, four percent (4%) for the fourth month, five percent (5%) for the fifth month, and eight percent (8%) for each subsequent month.
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.
SECTION 3.  This act shall become effective July 1, 2012.
SECTION 4.  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 6th day of March, 2012.

	
Presiding Officer of the House of
	Representatives

Passed the Senate the ____ day of __________, 2012.

	
Presiding Officer of the Senate