1|ENGROSSED SENATE AMENDMENT |
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2|ENGROSSED HOUSE |
|BILL NO. 1934 By: McCall of the House |
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| Treat of the Senate |
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7| An Act relating to parental rights; amending 25 O.S. |
| 2021, Section 2003, which relates to parental |
8| involvement; providing that school provide plan for |
| parent participation in certain areas; and providing |
9| an effective date. |
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12|AUTHOR: Add the following Senate Coauthors: Stanley, Thompson |
| (Kristen), Bullard, Haste, Green, Seifried, Standridge, |
13| Coleman, Prieto, Daniels, Bergstrom, Rader, Garvin, |
| Newhouse, Rogers, and Woods |
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15|AMENDMENT NO. 1. Page 1, strike the title, enacting clause and |
| entire bill and insert |
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17| "An Act relating to students; creating the Oklahoma |
| Parental Choice Tax Credit Act; providing short |
18| title; providing legislative intent; defining terms; |
| creating the Oklahoma Parental Choice Tax Credit |
19| Program; providing purpose; creating income tax |
| credit for certain taxpayers beginning in certain tax |
20| year; prescribing maximum credit amounts based on |
| certain income levels; directing taxpayer claiming |
21| certain credit to retain certain receipts and submit |
| them upon certain request; prescribing maximum amount |
22| of credits for certain tax years; authorizing the |
| Oklahoma Tax Commission to prescribe certain |
23| applications and certain deadline; providing for |
| advancement of certain credit in installments; |
24| providing procedures for claiming credit; directing |
| the Commission to give first preference in making |
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1| installments to certain taxpayers; authorizing dual |
| participation in certain program; authorizing the |
2| Commission to conduct or contract for certain audit; |
| authorizing prorated recapture of credits under |
3| certain circumstances; directing certain credit |
| amount to be reduced if certain event occurs; |
4| requiring the posting of certain credit amounts; |
| requiring the State Department of Education to |
5| provide certain notice; directing implementation of |
| certain system; requiring coordination of a process |
6| to verify student enrollment status; providing for |
| promulgation of rules; providing immunity from |
7| liability for certain actions; allowing certain |
| parents to intervene in certain legal proceeding; |
8| prohibiting severability of act provisions; providing |
| for codification; providing an effective date; and |
9| declaring an emergency. |
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12|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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13| SECTION 1. NEW LAW A new section of law to be codified |
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14|in the Oklahoma Statutes as Section 28-100 of Title 70, unless there |
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15|is created a duplication in numbering, reads as follows: |
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16| A. This act shall be known and may be cited as the "Oklahoma |
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17|Parental Choice Tax Credit Act". |
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18| B. It is the intent of the Legislature that parents, legal |
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19|guardians, custodians, and others with legal authority over children |
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20|in this state be able to choose educational services that meet the |
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21|needs of their individual children. The Legislature affirms that |
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22|parents and legal guardians are best suited to make choices to help |
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23|children in this state reach their full potential and achieve a |
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24|brighter future. |
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1| SECTION 2. NEW LAW A new section of law to be codified |
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2|in the Oklahoma Statutes as Section 28-101 of Title 70, unless there |
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3|is created a duplication in numbering, reads as follows: |
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4| A. As used in the Oklahoma Parental Choice Tax Credit Act: |
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5| 1. "Commission" means the Oklahoma Tax Commission; |
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6| 2. "Curriculum" means a complete course of study for a |
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7|particular content area or grade level; |
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8| 3. "Department" means the State Department of Education; |
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9| 4. "Education service provider" means a person, business, |
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10|public school district, public charter school, magnet school, or |
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11|organization that provides educational goods and/or services to |
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12|eligible students; |
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13| 5. "Eligible student" means a resident of this state who is |
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14|eligible to enroll in a public school in this state. Eligible |
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15|student shall include a student who is enrolled in and attends a |
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16|private school accredited by the State Board of Education or another |
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17|accrediting association or a student who is educated pursuant to the |
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18|other means of education exception provided for in subsection A of |
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19|Section 10-105 of Title 70 of the Oklahoma Statutes; |
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20| 6. "Qualified expense" for the purpose of claiming the credit |
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21|authorized by subparagraph a of paragraph 1 of subsection C of this |
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22|section means tuition and fees at a private school accredited by the |
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23|State Board of Education or another accrediting association; |
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1| 7. "Qualified expense" for the purpose of claiming the credit |
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2|authorized by subparagraph b of paragraph 1 of subsection C of this |
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3|section means the following expenditures: |
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4| a. tuition and fees for nonpublic online learning |
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5| programs, |
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6| b. academic tutoring services provided by an individual |
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7| or a private academic tutoring facility, |
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8| c. textbooks, curriculum, or other instructional |
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9| materials including, but not limited to, supplemental |
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10| materials or associated online instruction required by |
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11| an education service provider, and |
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12| d. fees for nationally standardized assessments |
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13| including, but not limited to, assessments used to |
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14| determine college admission and advanced placement |
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15| examinations as well as tuition and fees for tutoring |
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16| or preparatory courses for the assessments; and |
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17| 8. "Taxpayer" means a biological or adoptive parent, |
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18|grandparent, aunt, uncle, legal guardian, custodian, or other person |
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19|with legal authority to act on behalf of an eligible student. |
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20| B. There is hereby created the Oklahoma Parental Choice Tax |
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21|Credit Program to provide an income tax credit to a taxpayer for |
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22|qualified expenses to support the education of eligible students in |
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23|this state. |
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1| C. For the tax year 2024 and subsequent tax years, there shall |
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2|be allowed against the tax imposed by Section 2355 of Title 68 of |
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3|the Oklahoma Statutes a credit for any Oklahoma taxpayer who incurs |
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4|a qualified expense on behalf of an eligible student, to be |
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5|administered subject to the following amounts for each tax year: |
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6| 1. If the eligible student attends a private school accredited |
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7|by the State Board of Education or another accrediting association, |
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8|the maximum credit amount shall be: |
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9| a. (1) Seven Thousand Five Hundred Dollars ($7,500.00) |
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10| or the amount of tuition and fees for the private |
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11| school, whichever is less, if the eligible |
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12| student is a member of a household in which the |
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13| total adjusted gross income during the second |
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14| preceding tax year does not exceed Seventy-five |
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15| Thousand Dollars ($75,000.00), |
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16| (2) Seven Thousand Dollars ($7,000.00) or the amount |
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17| of tuition and fees for the private school, |
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18| whichever is less, if the eligible student is a |
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19| member of a household in which the total adjusted |
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20| gross income during the second preceding tax year |
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21| is more than Seventy-five Thousand Dollars |
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22| ($75,000.00) but does not exceed One Hundred |
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23| Fifty Thousand Dollars ($150,000.00), |
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1| (3) Six Thousand Five Hundred Dollars ($6,500.00) or |
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2| the amount of tuition and fees for the private |
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3| school, whichever is less, if the eligible |
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4| student is a member of a household in which the |
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5| total adjusted gross income during the second |
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6| preceding tax year is more than One Hundred Fifty |
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7| Thousand Dollars ($150,000.00) but does not |
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8| exceed Two Hundred Twenty-five Thousand Dollars |
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9| ($225,000.00), |
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10| (4) Six Thousand Dollars ($6,000.00) or the amount |
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11| of tuition and fees for the private school, |
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12| whichever is less, if the eligible student is a |
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13| member of a household in which the total adjusted |
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14| gross income during the second preceding tax year |
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15| is more than Two Hundred Twenty-five Thousand |
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16| Dollars ($225,000.00) but does not exceed Two |
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17| Hundred Fifty Thousand Dollars ($250,000.00), or |
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18| (5) Five Thousand Dollars ($5,000.00) or the amount |
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19| of tuition and fees for the private school, |
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20| whichever is less, if the eligible student is a |
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21| member of a household in which the total adjusted |
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22| gross income during the second preceding tax year |
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23| is more than Two Hundred Fifty Thousand Dollars |
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24| ($250,000.00), and |
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1| b. One Thousand Dollars ($1,000.00) in qualified |
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2| expenses per eligible student in each tax year if the |
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3| eligible student is educated pursuant to the other |
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4| means of education exception provided for in |
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5| subsection A of Section 10-105 of Title 70 of the |
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6| Oklahoma Statutes. To claim the credit, the taxpayer |
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7| shall submit to the Commission receipts for qualified |
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8| expenses as defined by paragraph 7 of subsection A of |
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9| this section; |
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10| 2. The taxpayer shall retain all receipts of qualified expenses |
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11|as proof of the amounts paid each tax year the credit is claimed and |
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12|shall submit them to the Commission upon request; and |
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13| 3. If the credit exceeds the tax imposed by Section 2355 of |
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14|Title 68 of the Oklahoma Statutes, the excess amount shall be |
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15|refunded to the taxpayer. |
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16| D. 1. a. For tax year 2024, the total amount of credits |
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17| authorized by subparagraph a of paragraph 1 of |
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18| subsection C of this section shall not exceed One |
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19| Hundred Fifty Million Dollars ($150,000,000.00). |
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20| b. For tax year 2025, the total amount of credits |
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21| authorized by subparagraph a of paragraph 1 of |
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22| subsection C of this section shall not exceed Two |
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23| Hundred Million Dollars ($200,000,000.00). |
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1| c. For tax year 2026, and subsequent tax years, the |
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2| total amount of credits authorized by subparagraph a |
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3| of paragraph 1 of subsection C of this section shall |
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4| not exceed Two Hundred Fifty Million Dollars |
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5| ($250,000,000.00). |
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6| 2. For tax year 2025, and subsequent tax years, the total |
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7|amount of credits authorized by subparagraph b of paragraph 1 of |
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8|subsection C of this section shall not exceed Five Million Dollars |
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9|($5,000,000.00). |
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10| E. The Commission shall prescribe applications for the purposes |
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11|of claiming the credits authorized by the Oklahoma Parental Choice |
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12|Tax Credit Act and a deadline by which applications shall be |
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13|submitted. A taxpayer claiming the credit authorized by |
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14|subparagraph a of paragraph 1 of subsection C of this section shall |
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15|submit an application prescribed by the Commission to receive the |
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16|credit in two installments, each of which shall be half of the |
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17|expected amount of tuition and fees for the private school based on |
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18|the affidavit submitted pursuant to this subsection, but in no event |
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19|shall an installment payment exceed half the amount of the credit |
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20|authorized by subparagraph a of paragraph 1 of subsection C of this |
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21|section. A taxpayer claiming the credit authorized by subparagraph |
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22|a of paragraph 1 of subsection C of this section shall submit to the |
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23|Commission an affidavit from the private school in which the |
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24|eligible student is enrolled or is expected to enroll with the |
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1|tuition and fees to be charged the taxpayer for the applicable |
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2|school year. In reviewing applications submitted by eligible |
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3|taxpayers to determine whether they qualify for a credit authorized |
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4|by subparagraph a of paragraph 1 of subsection C of this section, |
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5|the Commission shall give first preference in making installments to |
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6|taxpayers who qualify pursuant to divisions (1) and (2) of |
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7|subparagraph a of paragraph 1 of subsection C of this section. The |
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8|Commission shall make the installments based on the expected amount |
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9|of tuition and fee amounts on the affidavit submitted pursuant to |
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10|this subsection. |
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11| F. Taxpayers claiming the credit shall: |
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12| 1. Only claim the credit for qualified expenses as defined in |
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13|paragraphs 6 and 7 of subsection A of this section to provide an |
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14|education for an eligible student; |
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15| 2. Ensure no other person is claiming a credit for the eligible |
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16|student; |
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17| 3. Not claim the credit for an eligible student who enrolls as |
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18|a full-time student in a public school district, public charter |
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19|school, public virtual charter school, or magnet school; and |
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20| 4. Comply with rules and requirements established by the |
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21|Commission for administration of the Oklahoma Parental Choice Tax |
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22|Credit Program. |
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23| G. Eligible students may accept a scholarship from the Lindsey |
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24|Nicole Henry Scholarships for Students with Disabilities Program |
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1|created by Section 13-101.2 of Title 70 of the Oklahoma Statutes |
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2|while participating in the Oklahoma Parental Choice Tax Credit |
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3|Program. |
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4| H. 1. The Commission shall have the authority to conduct an |
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5|audit or contract for the auditing of receipts for qualified |
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6|expenses submitted pursuant to subparagraph b of paragraph 1 of |
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7|subsection C of this section. |
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8| 2. The Commission shall be authorized to recapture the credits |
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9|otherwise authorized by the provisions of this act on a prorated |
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10|basis if an audit conducted pursuant to this subsection shows that |
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11|the credit was claimed for expenditures that were not qualified |
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12|expenses or it finds that the taxpayer has claimed an eligible |
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13|student who no longer attends a private school or has enrolled in a |
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14|public school in the state. |
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15| I. In the event of a failure of revenue pursuant to the |
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16|Oklahoma State Finance Act, the tax credits otherwise authorized in |
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17|subsection C of this section shall be reduced proportionately to the |
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18|reduction in the amount of money appropriated to the State Board of |
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19|Education for the financial support of public schools for the fiscal |
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20|year in which the failure of revenue occurs. |
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21| J. The Commission shall make available on its website the |
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22|amount of credits claimed each tax year pursuant to subparagraphs a |
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23|and b of paragraph 1 of subsection C of this section. |
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1| SECTION 3. NEW LAW A new section of law to be codified |
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2|in the Oklahoma Statutes as Section 28-102 of Title 70, unless there |
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3|is created a duplication in numbering, reads as follows: |
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4| A. The State Department of Education shall provide parents, |
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5|legal guardians, custodians, or other persons with legal authority |
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6|of eligible students with disabilities notice that participation in |
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7|the Oklahoma Parental Choice Tax Credit Program shall have the same |
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8|effect as a parental revocation of consent pursuant to 20 U.S.C., |
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9|Sections 1414(a)(1)(D) and 1414(C) of the Individuals with |
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10|Disabilities Education Act (IDEA) and an explanation of the rights |
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11|parents, legal guardians, custodians, or other persons with legal |
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12|authority of eligible students with disabilities have under IDEA and |
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13|any applicable state laws and regulations. |
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14| B. The Department shall implement a commercially viable, |
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15|cost-effective, and user-friendly system for users to publicly rate, |
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16|review, and share information about education service providers. |
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17| C. The Oklahoma Tax Commission shall coordinate with the State |
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18|Department of Education to develop a process to review student |
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19|enrollment information in order to verify that an eligible student |
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20|who is claimed by a taxpayer receiving a tax credit is not enrolled |
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21|in a public school in the state. |
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22| D. The Commission may promulgate rules to implement the |
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23|provisions of the Oklahoma Parental Choice Tax Credit Act. The |
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1|State Board of Education may promulgate rules to implement the |
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2|provisions of this section. |
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3| SECTION 4. NEW LAW A new section of law to be codified |
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4|in the Oklahoma Statutes as Section 28-103 of Title 70, unless there |
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5|is created a duplication in numbering, reads as follows: |
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6| A. No liability shall arise on the part of the Oklahoma Tax |
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7|Commission, State Department of Education, State Board of Education, |
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8|the state, a public school district, a public charter school, a |
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9|public virtual charter school, or a magnet school based on the award |
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10|of or use of a tax credit pursuant to the Oklahoma Parental Choice |
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11|Tax Credit Act. |
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12| B. If any part of the Oklahoma Parental Choice Tax Credit Act |
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13|is challenged in a state court as violating either the Oklahoma |
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14|Constitution or United States Constitution, taxpayers shall be |
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15|permitted to intervene for the purposes of defending the Oklahoma |
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16|Parental Choice Tax Credit Program's constitutionality. However, |
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17|for the purposes of judicial administration, a court may require |
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18|that all taxpayers file a joint brief so long as they are not |
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19|required to join any brief filed on behalf of any named state |
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20|defendant. |
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21| C. The provisions of the Oklahoma Parental Choice Tax Credit |
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22|Act shall not be severable, and if any provision of the Oklahoma |
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23|Parental Choice Tax Credit Act or the application thereof to any |
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1|person or circumstances is held invalid, such invalidity shall |
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2|invalidate the other provisions or applications of this act. |
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3| SECTION 5. This act shall become effective July 1, 2023. |
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4| SECTION 6. It being immediately necessary for the preservation |
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5|of the public peace, health, or safety, an emergency is hereby |
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6|declared to exist, by reason whereof this act shall take effect and |
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7|be in full force from and after its passage and approval." |
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8| Passed the Senate the 27th day of April, 2023. |
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| Presiding Officer of the Senate |
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12| Passed the House of Representatives the ____ day of __________, |
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13|2023. |
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| Presiding Officer of the House |
16| of Representatives |
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