ENROLLED SENATE
BILL NO. 275	By:	Fields of the Senate

			and

		Casey and Cannaday of the House

An Act relating to school funding; amending 70 O.S. 2001, Section 5-117b, as amended by Section 1, Chapter 327, O.S.L. 2003 (70 O.S. Supp. 2010, Section 5-117b), which relates to interlocal cooperative agreements; allowing interlocal cooperative to receive federal grant money.

SUBJECT:  Interlocal cooperative agreements

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

SECTION 1.     AMENDATORY     70 O.S. 2001, Section 5-117b, as amended by Section 1, Chapter 327, O.S.L. 2003 (70 O.S. Supp. 2010, Section 5-117b), is amended to read as follows:

Section 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.

Passed the Senate the 15th day of March, 2011.

	
Presiding Officer 	of the Senate

Passed the House of Representatives the 19th day of April, 2011.

	
Presiding Officer of the House
	of Representatives