1|ENGROSSED HOUSE | |BILL NO. 1935 By: McCall, Bashore, Baker, | 2| Luttrell, Caldwell (Chad), | | Maynard, Echols, McBride, | 3| Hilbert of the House | | | 4| and | | | 5| Daniels and Jett of the | | Senate | 6| | | | 7| | | | 8| | | | 9| An Act relating to students; creating the Oklahoma | | Parental Choice Tax Credit Act; providing short | 10| title; providing legislative intent; defining terms; | | establishing the Oklahoma Parental Choice Tax Credit | 11| Program; providing for purpose of program; creating | | income tax credit for certain taxpayers; prescribing | 12| maximum credit amount; directing taxpayer to retain | | certain receipts; authorizing Tax Commission to | 13| prescribe forms; permitting advancement of certain | | credit; listing procedures for taxpayers claiming | 14| credit; authorizing dual participation in certain | | programs; authorizing prorated recapture of credits; | 15| suspending credits if certain funding levels are not | | met; reducing credit amount if certain event occurs; | 16| providing for confidentiality of certain records; | | requiring Department to provide notice to certain | 17| taxpayers; directing Department to implement certain | | system; mandating coordination of a process to verify | 18| student enrollment status; providing for promulgation | | of rules; providing immunity from liability for | 19| certain actions; allowing certain parents to | | intervene in certain legal proceeding; prohibiting | 20| severability of act provisions; creating the Oklahoma | | Student Fund; making the fund a continuing fund; | 21| stating source of funds; providing for budgeting and | | expenditure of monies; stating purpose; requiring | 22| expenditures to be made upon warrants; providing for | | conditional enactment; providing for codification; | 23| providing an effective date; and declaring an | | emergency. | 24| | | | arsid7287914 ENGR. H. B. NO. 1935 Page 1 ___________________________________________________________________________
1|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 2| SECTION 1. NEW LAW A new section of law to be codified | | | 3|in the Oklahoma Statutes as Section 28-100 of Title 70, unless there | | | 4|is created a duplication in numbering, reads as follows: | | | 5| A. This act shall be known and may be cited as the "Oklahoma | | | 6|Parental Choice Tax Credit Act". | | | 7| B. It is the intent of the Legislature that parents, legal | | | 8|guardians, custodians, and others with legal authority over children | | | 9|in this state be able to choose educational services that meet the | | | 10|needs of their individual children. The Legislature affirms that | | | 11|parents and legal guardians are best suited to make choices to help | | | 12|children in this state reach their full potential and achieve a | | | 13|brighter future. | | | 14| SECTION 2. NEW LAW A new section of law to be codified | | | 15|in the Oklahoma Statutes as Section 28-101 of Title 70, unless there | | | 16|is created a duplication in numbering, reads as follows: | | | 17| A. As used in the Oklahoma Parental Choice Tax Credit Act: | | | 18| 1. "Commission" means the Oklahoma Tax Commission; | | | 19| 2. "Curriculum" means a complete course of study for a | | | 20|particular content area or grade level; | | | 21| 3. "Department" means the State Department of Education; | | | 22| 4. "Education service provider" means a person, business, | | | 23|public school district, public charter school, magnet school, | | | 24|institution within The Oklahoma State System of Higher Education, or | | | arsid7287914 ENGR. H. B. NO. 1935 Page 2 ___________________________________________________________________________
1|organization that provides educational goods and/or services to | | | 2|eligible students; | | | 3| 5. "Eligible student" means a resident of this state who is | | | 4|eligible to enroll in a public school in this state. Eligible | | | 5|student shall include a student who is enrolled in and attends a | | | 6|private school accredited by the State Board of Education or another | | | 7|accrediting association or a student who is educated pursuant to the | | | 8|other means of education exception provided for in subsection A of | | | 9|Section 10-105 of Title 70 of the Oklahoma Statutes; | | | 10| 6. "Qualified expense" means the following services: | | | 11| a. tuition and fees at a private school accredited by | | | 12| the State Board of Education or another accrediting | | | 13| association, | | | 14| b. tuition and fees for nonpublic online learning | | | 15| programs, | | | 16| c. academic tutoring services provided by an individual | | | 17| or a private academic tutoring facility, | | | 18| d. textbooks, curriculum, or other instructional | | | 19| materials including, but not limited to, supplemental | | | 20| materials or associated online instruction required by | | | 21| an education service provider, | | | 22| e. fees for nationally standardized assessments | | | 23| including, but not limited to, assessments used to | | | 24| determine college admission and advanced placement | | | arsid7287914 ENGR. H. B. NO. 1935 Page 3 ___________________________________________________________________________
1| examinations as well as tuition and fees for tutoring | | | 2| or preparatory courses for the assessments, and | | | 3| f. tuition and fees for concurrent enrollment at an | | | 4| institution within The Oklahoma State System of Higher | | | 5| Education; and | | | 6| 7. "Taxpayer" means a biological or adoptive parent, | | | 7|grandparent, aunt, uncle, legal guardian, custodian, or other person | | | 8|with legal authority to act on behalf of an eligible student. | | | 9| B. There is hereby created the Oklahoma Parental Choice Tax | | | 10|Credit Program to provide an income tax credit to a taxpayer for | | | 11|qualified expenses to support the education of eligible students in | | | 12|this state. | | | 13| C. For tax years beginning after January 1, 2023, there shall | | | 14|be allowed against the tax imposed by Section 2355 of Title 68 of | | | 15|the Oklahoma Statutes a credit for any Oklahoma taxpayer who incurs | | | 16|a qualified expense on behalf of an eligible student. The credit | | | 17|shall be administered subject to the following: | | | 18| 1. The maximum credit amount shall be: | | | 19| a. Five Thousand Dollars ($5,000.00) in qualified | | | 20| expenses per eligible student in each tax year if the | | | 21| eligible student attends a private school accredited by | | | 22| the State Board of Education or another accrediting | | | 23| association, and | | | 24| | | | arsid7287914 ENGR. H. B. NO. 1935 Page 4 ___________________________________________________________________________
1| b. Two Thousand Five Hundred Dollars ($2,500.00) in | | | 2| qualified expenses per eligible student in each tax | | | 3| year if the eligible student is educated pursuant to | | | 4| the other means of education exception provided for in | | | 5| subsection A of Section 10-105 of Title 70 of the | | | 6| Oklahoma Statutes; | | | 7| 2. The taxpayer shall retain all receipts of qualified expenses | | | 8|as proof of the amounts paid each tax year the credit is claimed; | | | 9|and | | | 10| 3. If the credit exceeds the tax imposed by Section 2355 of | | | 11|Title 68 of the Oklahoma Statutes, the excess amount shall be | | | 12|refunded to the taxpayer. | | | 13| D. The Commission may prescribe forms for purposes of claiming | | | 14|the credits authorized by the Oklahoma Parental Choice Tax Credit | | | 15|Act. The Commission shall create a form for the purpose of allowing | | | 16|taxpayers to request that the credit amount provided in subparagraph | | | 17|a of paragraph 1 of subsection C of this section be advanced to the | | | 18|taxpayer in two installments of not more than Two Thousand Five | | | 19|Hundred Dollars ($2,500.00) per semester for a maximum credit of | | | 20|Five Thousand Dollars ($5,000.00) per tax year. Eligible taxpayers | | | 21|who submit the form and qualify for an advance shall be approved and | | | 22|paid within sixty (60) days of submitting the prescribed form. | | | 23| E. Taxpayers claiming the credit shall: | | | 24| | | | arsid7287914 ENGR. H. B. NO. 1935 Page 5 ___________________________________________________________________________
1| 1. Only claim the credit for qualified expenses as defined in | | | 2|paragraph 6 of subsection A of this section to provide an education | | | 3|for an eligible student; | | | 4| 2. Ensure no other person is claiming a credit for the eligible | | | 5|student; | | | 6| 3. Not claim the credit for an eligible student who enrolls as | | | 7|a full-time student in a public school district, public charter | | | 8|school, public virtual charter school, or magnet school; and | | | 9| 4. Comply with rules and requirements established by the | | | 10|Commission for administration of the Oklahoma Parental Choice Tax | | | 11|Credit Program. | | | 12| F. Eligible students may accept a scholarship from the Lindsey | | | 13|Nicole Henry Scholarships for Students with Disabilities Program | | | 14|created by Section 13-101.2 of Title 70 of the Oklahoma Statutes | | | 15|while participating in the Oklahoma Parental Choice Tax Credit | | | 16|Program. | | | 17| G. The Commission shall be authorized to recapture the credits | | | 18|otherwise authorized by the provisions of this act on a prorated | | | 19|basis if it finds that the taxpayer has claimed an eligible student | | | 20|who no longer attends a private school or has enrolled in a public | | | 21|school in the state or that the credit does not meet the | | | 22|requirements of the Oklahoma Parental Choice Tax Credit Act. | | | 23| H. Beginning July 1, 2024, and beginning on each succeeding | | | 24|July 1 if the amount of money appropriated to the State Board of | | | arsid7287914 ENGR. H. B. NO. 1935 Page 6 ___________________________________________________________________________
1|Education for the financial support of public schools for the fiscal | | | 2|year which begins July 1, 2024, is less than the amount of money | | | 3|appropriated to the State Board of Education for the financial | | | 4|support of public schools for the fiscal year ending June 30, 2024, | | | 5|including funds appropriated pursuant to Sections 1, 2, and 3 of | | | 6|Enrolled House Bill No. 2775 enacted by the 1st Session of the 59th | | | 7|Oklahoma Legislature, the tax credits otherwise authorized in | | | 8|subsection C of this section shall be suspended until the amount of | | | 9|money appropriated to the State Board of Education for the financial | | | 10|support of public schools is greater than or equal to the amount | | | 11|appropriated for the fiscal year ending June 30, 2024. | | | 12| I. In the event of a failure of revenue pursuant to the | | | 13|Oklahoma State Finance Act, the tax credits otherwise authorized in | | | 14|subsection C of this section shall be reduced proportionately to the | | | 15|reduction in the amount of money appropriated to the State Board of | | | 16|Education for the financial support of public schools for the fiscal | | | 17|year in which the failure of revenue occurs. | | | 18| J. The Tax Commission shall keep all records relating to the | | | 19|Oklahoma Parental Choice Tax Credit Act confidential including, but | | | 20|not limited to, the Social Security numbers of eligible students. | | | 21| SECTION 3. NEW LAW A new section of law to be codified | | | 22|in the Oklahoma Statutes as Section 28-102 of Title 70, unless there | | | 23|is created a duplication in numbering, reads as follows: | | | 24| | | | arsid7287914 ENGR. H. B. NO. 1935 Page 7 ___________________________________________________________________________
1| A. The State Department of Education shall provide parents, | | | 2|legal guardians, custodians, or other persons with legal authority | | | 3|of eligible students with disabilities notice that participation in | | | 4|the Oklahoma Parental Choice Tax Credit Program shall have the same | | | 5|effect as a parental revocation of consent pursuant to 20 U.S.C., | | | 6|Sections 1414(a)(1)(D) and 1414(C) of the Individuals with | | | 7|Disabilities Education Act (IDEA) and an explanation of the rights | | | 8|parents, legal guardians, custodians, or other persons with legal | | | 9|authority of eligible students with disabilities have under IDEA and | | | 10|any applicable state laws and regulations. | | | 11| B. The Department shall implement a commercially viable, | | | 12|cost-effective, and user-friendly system for users to publicly rate, | | | 13|review, and share information about education service providers. | | | 14| C. The Oklahoma Tax Commission shall coordinate with the State | | | 15|Department of Education to develop a process to review student | | | 16|enrollment information in order to verify that an eligible student | | | 17|who is claimed by a taxpayer receiving a tax credit is not enrolled | | | 18|in a public school in the state. | | | 19| D. The Commission and Department may promulgate rules to | | | 20|implement the provisions of the Oklahoma Parental Choice Tax Credit | | | 21|Act. | | | 22| SECTION 4. NEW LAW A new section of law to be codified | | | 23|in the Oklahoma Statutes as Section 28-103 of Title 70, unless there | | | 24|is created a duplication in numbering, reads as follows: | | | arsid7287914 ENGR. H. B. NO. 1935 Page 8 ___________________________________________________________________________
1| A. No liability shall arise on the part of the Oklahoma Tax | | | 2|Commission, State Department of Education, State Board of Education, | | | 3|the state, a public school district, a public charter school, a | | | 4|public virtual charter school, or a magnet school based on the award | | | 5|of or use of a tax credit pursuant to the Oklahoma Parental Choice | | | 6|Tax Credit Act. | | | 7| B. If any part of the Oklahoma Parental Choice Tax Credit Act | | | 8|is challenged in a state court as violating either the Oklahoma | | | 9|Constitution or United States Constitution, taxpayers shall be | | | 10|permitted to intervene for the purposes of defending the Oklahoma | | | 11|Parental Choice Tax Credit Program's constitutionality. However, | | | 12|for the purposes of judicial administration, a court may require | | | 13|that all taxpayers file a joint brief so long as they are not | | | 14|required to join any brief filed on behalf of any named state | | | 15|defendant. | | | 16| C. The provisions of the Oklahoma Parental Choice Tax Credit | | | 17|Act shall not be severable, and if any provision of the Oklahoma | | | 18|Parental Choice Tax Credit Act or the application thereof to any | | | 19|person or circumstances is held invalid, such invalidity shall | | | 20|invalidate the other provisions or applications of this act. | | | 21| SECTION 5. NEW LAW A new section of law to be codified | | | 22|in the Oklahoma Statutes as Section 28-104 of Title 70, unless there | | | 23|is created a duplication in numbering, reads as follows: | | | 24| | | | arsid7287914 ENGR. H. B. NO. 1935 Page 9 ___________________________________________________________________________
1| There is hereby created in the State Treasury a revolving fund | | | 2|for the State Board of Education to be designated the "Oklahoma | | | 3|Student Fund". The fund shall be a continuing fund, not subject to | | | 4|fiscal year limitations, and shall consist of all monies designated | | | 5|for deposit to the fund by law. All monies accruing to the credit | | | 6|of the fund are hereby appropriated and may be budgeted and expended | | | 7|by the State Board of Education for the purpose of funding public | | | 8|school districts as provided in Sections 2 and 3 of Enrolled House | | | 9|Bill No. 2775 enacted by the 1st Session of the 59th Oklahoma | | | 10|Legislature. Expenditures from the fund shall be made upon warrants | | | 11|issued by the State Treasurer against claims filed as prescribed by | | | 12|law with the Director of the Office of Management and Enterprise | | | 13|Services for approval and payment. | | | 14| SECTION 6. The provisions of this act shall be contingent upon | | | 15|the enactment of Enrolled House Bill No. 2775 of the 1st Session of | | | 16|the 59th Oklahoma Legislature. | | | 17| SECTION 7. This act shall become effective July 1, 2023. | | | 18| SECTION 8. It being immediately necessary for the preservation | | | 19|of the public peace, health or safety, an emergency is hereby | | | 20|declared to exist, by reason whereof this act shall take effect and | | | 21|be in full force from and after its passage and approval. | | | 22| Passed the House of Representatives the 22nd day of February, | |2023. | 23| | | | 24| | | | arsid7287914 ENGR. H. B. NO. 1935 Page 10 ___________________________________________________________________________
1| Presiding Officer of the House | | of Representatives | 2| | | | 3| Passed the Senate the ___ day of __________, 2023. | | | 4| | | | 5| | | Presiding Officer of the Senate | 6| | | | 7| | | | 8| | | | 9| | | | 10| | | | 11| | | | 12| | | | 13| | | | 14| | | | 15| | | | 16| | | | 17| | | | 18| | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | arsid7287914 ENGR. H. B. NO. 1935 Page 11