{"data":{"id":"us-ok/okla.-stat.-tit.-70-70-5-124","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 70, § 70-5-124","heading":"Board contracts prohibited - Exceptions","body":"A. Except as otherwise provided in this section, no board of\n\neducation of any school district in this state shall make any\n\ncontract with any of its members or with any company, individual or\n\nbusiness concern in which any of its members shall be directly or\n\nindirectly interested. All contracts made in violation of this\n\nsection shall be wholly void. A member of a board of education\n\nshall be considered to be interested in any contract made with any\n\ncompany, individual, or any business concern if the member of the\n\nboard of education or any member of the immediate family of the\n\nmember owns any substantial interest in same.\n\nB. For purposes of this section, the following shall not be\n\nconsidered the making of a contract:\n\n1. Any contract with a qualified nonprofit Internal Revenue\n\nCode 501(c)(3) organization, except for contracts paying salaries or\n\nexpenses or except a contract involving the counseling or\n\ninstruction of students or staff;\n\n2. Monthly billings submitted to any school district for public\n\nutility companies, electric cooperatives or telephone companies,\n\nwhose services are regulated by the Oklahoma Corporation Commission,\n\nor billings of the utility companies, electric cooperatives or\n\ntelephone companies pertaining to installations or changes in\n\nservice, where tariffs for the charges or billings by the companies\n\nare on file with the Oklahoma Corporation Commission; and\n\n3. The depositing of any funds in a bank or other depository.\n\nC. 1. The governing board of a technology center school\n\ndistrict may enter into a contract for the technology center school\n\ndistrict to provide training for a company, individual or business\n\nconcern by which a member of the board is employed. A board member\n\nshall abstain from voting on any such contract between the\n\ntechnology center school district board and the company, individual\n\nor business concern by which the member is employed.\n\n2. A board of education may enter into a contract with a\n\ncompany, individual, or business concern in which a board member or\n\na member's spouse is employed by or has a substantial interest if\n\nthe company, individual, or business concern is the only supplier\n\nhaving a place of business located within the school district or\n\nwithin ten (10) miles of the needed services or materials. The\n\nboard member shall abstain from voting on any such contract between\n\nthe company, individual, or business concern in which that member\n\nhas a substantial interest, and the minutes of the board meeting at\n\nwhich the contract is approved shall state that the contract is\n\nbeing made because of the lack of another supplier with a place of\n\nbusiness located within the school district.\n\n3. A board of education which has entered into a lease-purchase\n\nagreement, prior to the time a board member which has a substantial\n\ninterest in the company, individual, or business concern became a\n\nmember of the board of education, may, after the member becomes a\n\nboard member, continue to exercise any fiscal year options in the\n\nlease-purchase agreement for renewal of the lease-purchase for the\n\nbalance of the contract term. The affected board member shall\n\nabstain from voting on such fiscal year renewal of the continuation\n\nof the lease-purchase agreement.\n\n4. A board of education may enter into a contract with a\n\ncompany, individual or business concern in which a board member or a\n\nspouse of a member is employed and has no substantial interest if\n\nthe school district does not include any part of a municipality with\n\na population greater than two thousand five hundred (2,500)\n\naccording to the latest Federal Decennial Census and the company,\n\nindividual or business concern is located in the corporate limits of\n\na municipality which is in the boundaries of the school district.\n\nD. A board member shall not be considered to be directly or\n\nindirectly interested in any contract with a company, individual, or\nwith\n\na population greater than two thousand five hundred (2,500)\n\naccording to the latest Federal Decennial Census and the company,\n\nindividual or business concern is located in the corporate limits of\n\na municipality which is in the boundaries of the school district.\n\nD. A board member shall not be considered to be directly or\n\nindirectly interested in any contract with a company, individual, or\n\nbusiness concern that employs such board member or the spouse of the\n\nboard member if the board member or the spouse of the board member\n\nhas an interest of five percent (5%) or less in the company,\n\nindividual, or business concern.","path":["OK Code","Title 70"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os70.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"b4693234201e19273c7be8276737da7422355ca08b683e966c85f9ab102562bd","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-70-70-5-123","next":"us-ok/okla.-stat.-tit.-70-70-5-125"},"notice":"GroundRules: Original legal text. Not legal advice."}