1|ENGROSSED SENATE AMENDMENTS | | TO | 2|ENGROSSED HOUSE | |BILL NO. 1935 By: McCall, Bashore, Baker, | 3| Luttrell, Caldwell (Chad), | | Maynard, Echols, McBride, | 4| Hilbert of the House | | | 5| and | | | 6| Daniels and Jett of the | | Senate | 7| | | | 8| | | | 9| An Act relating to students; creating the Oklahoma | | Parental Choice Tax Credit Act; *** system; mandating | 10| coordination of a process to verify student | | enrollment status; *** providing for conditional | 11| enactment; providing for codification; providing an | | effective date; and declaring an emergency. | 12| | | | 13| | | | 14|AUTHOR: Add the following House Coauthor: Culver | | | 15|AUTHOR: Remove as principal Senate author Daniels and substitute as | | principal Senate author Treat | 16| | |AUTHOR: Add the following Senate Coauthors: Pugh, Daniels, Rosino, | 17| McCortney, Thompson (Roger), Hall, Coleman, Paxton, Rader, | | Seifried, Green, Newhouse, Stewart, Prieto, Murdock, | 18| Montgomery, Pederson, Dugger, Pemberton, Weaver, Stanley, | | Haste, Garvin, Stephens, Burns, Alvord, Bergstrom, Thompson | 19| (Kristen), Rogers, Bullard, and Woods | | | 20|AMENDMENT NO. 1. Page 1, strike the title, enacting clause and | | entire bill and insert | 21| | | | 22| "An Act relating to students; creating the Oklahoma | | Parental Choice Tax Credit Act; providing short | 23| title; providing legislative intent; defining terms; | | creating the Oklahoma Parental Choice Tax Credit | 24| Program; providing purpose; creating income tax | | credit for certain taxpayers beginning in certain tax | Page 1 ___________________________________________________________________________
1| year; prescribing maximum credit amounts; directing | | taxpayer to retain certain receipts and submit them | 2| upon certain request; authorizing the Oklahoma Tax | | Commission to prescribe certain forms; providing for | 3| advancement of certain credit in installments; | | providing procedures for claiming credit; authorizing | 4| dual participation in certain program; authorizing | | the Commission to conduct or contract for certain | 5| audit; authorizing prorated recapture of credits | | under certain circumstances; directing certain credit | 6| amount to be reduced if certain event occurs; | | requiring the posting of certain credit amounts; | 7| requiring the State Department of Education to | | provide certain notice; directing implementation of | 8| certain system; requiring coordination of a process | | to verify student enrollment status; providing for | 9| promulgation of rules; providing immunity from | | liability for certain actions; allowing certain | 10| parents to intervene in certain legal proceeding; | | prohibiting severability of act provisions; providing | 11| for codification; providing conditional effective | | date; and declaring an emergency. | 12| | | | 13| | | | 14|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 15| SECTION 1. NEW LAW A new section of law to be codified | | | 16|in the Oklahoma Statutes as Section 28-100 of Title 70, unless there | | | 17|is created a duplication in numbering, reads as follows: | | | 18| A. This act shall be known and may be cited as the "Oklahoma | | | 19|Parental Choice Tax Credit Act". | | | 20| B. It is the intent of the Legislature that parents, legal | | | 21|guardians, custodians, and others with legal authority over children | | | 22|in this state be able to choose educational services that meet the | | | 23|needs of their individual children. The Legislature affirms that | | | 24|parents and legal guardians are best suited to make choices to help | | | Page 2 ___________________________________________________________________________
1|children in this state reach their full potential and achieve a | | | 2|brighter future. | | | 3| SECTION 2. NEW LAW A new section of law to be codified | | | 4|in the Oklahoma Statutes as Section 28-101 of Title 70, unless there | | | 5|is created a duplication in numbering, reads as follows: | | | 6| A. As used in the Oklahoma Parental Choice Tax Credit Act: | | | 7| 1. "Commission" means the Oklahoma Tax Commission; | | | 8| 2. "Curriculum" means a complete course of study for a | | | 9|particular content area or grade level; | | | 10| 3. "Department" means the State Department of Education; | | | 11| 4. "Education service provider" means a person, business, | | | 12|public school district, public charter school, magnet school, | | | 13|institution within The Oklahoma State System of Higher Education, or | | | 14|organization that provides educational goods and/or services to | | | 15|eligible students; | | | 16| 5. "Eligible student" means a resident of this state who is | | | 17|eligible to enroll in a public school in this state and who is a | | | 18|member of a household in which the total adjusted gross income | | | 19|during the preceding tax year does not exceed Two Hundred Fifty | | | 20|Thousand Dollars ($250,000.00). Eligible student shall include a | | | 21|student who is enrolled in and attends a private school accredited | | | 22|by the State Board of Education or another accrediting association | | | 23|or a student who is educated pursuant to the other means of | | | 24| | | | Page 3 ___________________________________________________________________________
1|education exception provided for in subsection A of Section 10-105 | | | 2|of Title 70 of the Oklahoma Statutes; | | | 3| 6. "Qualified expense" for the purpose of claiming the credit | | | 4|authorized by subparagraph a of paragraph 1 of subsection C of this | | | 5|section means tuition and fees at a private school accredited by the | | | 6|State Board of Education or another accrediting association; | | | 7| 7. "Qualified expense" for the purpose of claiming the credit | | | 8|authorized by subparagraph b of paragraph 1 of subsection C of this | | | 9|section means the following expenditures: | | | 10| a. tuition and fees for nonpublic online learning | | | 11| programs, | | | 12| b. academic tutoring services provided by an individual | | | 13| or a private academic tutoring facility, | | | 14| c. textbooks, curriculum, or other instructional | | | 15| materials including, but not limited to, supplemental | | | 16| materials or associated online instruction required by | | | 17| an education service provider, and | | | 18| d. fees for nationally standardized assessments | | | 19| including, but not limited to, assessments used to | | | 20| determine college admission and advanced placement | | | 21| examinations as well as tuition and fees for tutoring | | | 22| or preparatory courses for the assessments; and | | | 23| | | | 24| | | | Page 4 ___________________________________________________________________________
1| 8. "Taxpayer" means a biological or adoptive parent, | | | 2|grandparent, aunt, uncle, legal guardian, custodian, or other person | | | 3|with legal authority to act on behalf of an eligible student. | | | 4| B. There is hereby created the Oklahoma Parental Choice Tax | | | 5|Credit Program to provide an income tax credit to a taxpayer for | | | 6|qualified expenses to support the education of eligible students in | | | 7|this state. | | | 8| C. For the tax year 2023 and subsequent tax years, there shall | | | 9|be allowed against the tax imposed by Section 2355 of Title 68 of | | | 10|the Oklahoma Statutes a credit for any Oklahoma taxpayer who incurs | | | 11|a qualified expense on behalf of an eligible student. Provided, the | | | 12|credit allowed for tax year 2023 shall only be for qualified | | | 13|expenses made on or after July 1, 2023. The credit shall be | | | 14|administered subject to the following: | | | 15| 1. The maximum credit amount shall be: | | | 16| a. Seven Thousand Five Hundred Dollars ($7,500.00) in | | | 17| qualified expenses per eligible student in each tax | | | 18| year if the eligible student attends a private school | | | 19| accredited by the State Board of Education or another | | | 20| accrediting association or the amount of tuition and | | | 21| fees for the private school, whichever is less, and | | | 22| b. One Thousand Dollars ($1,000.00) in qualified | | | 23| expenses per taxpayer in each tax year if one or more | | | 24| eligible students is educated pursuant to the other | | | Page 5 ___________________________________________________________________________
1| means of education exception provided for in subsection | | | 2| A of Section 10-105 of Title 70 of the Oklahoma | | | 3| Statutes. To claim the credit, the taxpayer shall | | | 4| submit to the Commission receipts for qualified | | | 5| expenses as defined by paragraph 7 of subsection A of | | | 6| this section; | | | 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 and | | | 9|shall submit them to the Commission upon request; 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 Three Thousand Seven | | | 19|Hundred Fifty Dollars ($3,750.00) per semester for a maximum credit | | | 20|of Seven Thousand Five Hundred Dollars ($7,500.00) per tax year or | | | 21|the amount of tuition and fees for the private school, whichever is | | | 22|less. Eligible taxpayers who submit the form and qualify for an | | | 23|advance shall be approved and paid within sixty (60) days of | | | 24|submitting the prescribed form. | | | Page 6 ___________________________________________________________________________
1| E. Taxpayers claiming the credit shall: | | | 2| 1. Only claim the credit for qualified expenses as defined in | | | 3|paragraphs 6 and 7 of subsection A of this section to provide an | | | 4|education for an eligible student; | | | 5| 2. Ensure no other person is claiming a credit for the eligible | | | 6|student; | | | 7| 3. Not claim the credit for an eligible student who enrolls as | | | 8|a full-time student in a public school district, public charter | | | 9|school, public virtual charter school, or magnet school; and | | | 10| 4. Comply with rules and requirements established by the | | | 11|Commission for administration of the Oklahoma Parental Choice Tax | | | 12|Credit Program. | | | 13| F. Eligible students may accept a scholarship from the Lindsey | | | 14|Nicole Henry Scholarships for Students with Disabilities Program | | | 15|created by Section 13-101.2 of Title 70 of the Oklahoma Statutes | | | 16|while participating in the Oklahoma Parental Choice Tax Credit | | | 17|Program. | | | 18| G. 1. The Commission shall have the authority to conduct an | | | 19|audit or contract for the auditing of receipts for qualified | | | 20|expenses submitted pursuant to subparagraph b of paragraph 1 of | | | 21|subsection C of this section. | | | 22| 2. The Commission shall be authorized to recapture the credits | | | 23|otherwise authorized by the provisions of this act on a prorated | | | 24|basis if an audit conducted pursuant to this subsection shows that | | | Page 7 ___________________________________________________________________________
1|the credit was claimed for expenditures that were not qualified | | | 2|expenses or it finds that the taxpayer has claimed an eligible | | | 3|student who no longer attends a private school or has enrolled in a | | | 4|public school in the state. | | | 5| H. In the event of a failure of revenue pursuant to the | | | 6|Oklahoma State Finance Act, the tax credits otherwise authorized in | | | 7|subsection C of this section shall be reduced proportionately to the | | | 8|reduction in the amount of money appropriated to the State Board of | | | 9|Education for the financial support of public schools for the fiscal | | | 10|year in which the failure of revenue occurs. | | | 11| I. The Commission shall make available on its website the | | | 12|amount of credits claimed each tax year pursuant to subparagraphs a | | | 13|and b of paragraph 1 of subsection C of this section. | | | 14| SECTION 3. NEW LAW A new section of law to be codified | | | 15|in the Oklahoma Statutes as Section 28-102 of Title 70, unless there | | | 16|is created a duplication in numbering, reads as follows: | | | 17| A. The State Department of Education shall provide parents, | | | 18|legal guardians, custodians, or other persons with legal authority | | | 19|of eligible students with disabilities notice that participation in | | | 20|the Oklahoma Parental Choice Tax Credit Program shall have the same | | | 21|effect as a parental revocation of consent pursuant to 20 U.S.C., | | | 22|Sections 1414(a)(1)(D) and 1414(C) of the Individuals with | | | 23|Disabilities Education Act (IDEA) and an explanation of the rights | | | 24|parents, legal guardians, custodians, or other persons with legal | | | Page 8 ___________________________________________________________________________
1|authority of eligible students with disabilities have under IDEA and | | | 2|any applicable state laws and regulations. | | | 3| B. The Department shall implement a commercially viable, | | | 4|cost-effective, and user-friendly system for users to publicly rate, | | | 5|review, and share information about education service providers. | | | 6| C. The Oklahoma Tax Commission shall coordinate with the State | | | 7|Department of Education to develop a process to review student | | | 8|enrollment information in order to verify that an eligible student | | | 9|who is claimed by a taxpayer receiving a tax credit is not enrolled | | | 10|in a public school in the state. | | | 11| D. The Commission may promulgate rules to implement the | | | 12|provisions of the Oklahoma Parental Choice Tax Credit Act. The | | | 13|State Board of Education may promulgate rules to implement the | | | 14|provisions of this section. | | | 15| SECTION 4. NEW LAW A new section of law to be codified | | | 16|in the Oklahoma Statutes as Section 28-103 of Title 70, unless there | | | 17|is created a duplication in numbering, reads as follows: | | | 18| A. No liability shall arise on the part of the Oklahoma Tax | | | 19|Commission, State Department of Education, State Board of Education, | | | 20|the state, a public school district, a public charter school, a | | | 21|public virtual charter school, or a magnet school based on the award | | | 22|of or use of a tax credit pursuant to the Oklahoma Parental Choice | | | 23|Tax Credit Act. | | | 24| | | | Page 9 ___________________________________________________________________________
1| B. If any part of the Oklahoma Parental Choice Tax Credit Act | | | 2|is challenged in a state court as violating either the Oklahoma | | | 3|Constitution or United States Constitution, taxpayers shall be | | | 4|permitted to intervene for the purposes of defending the Oklahoma | | | 5|Parental Choice Tax Credit Program's constitutionality. However, | | | 6|for the purposes of judicial administration, a court may require | | | 7|that all taxpayers file a joint brief so long as they are not | | | 8|required to join any brief filed on behalf of any named state | | | 9|defendant. | | | 10| C. The provisions of the Oklahoma Parental Choice Tax Credit | | | 11|Act shall not be severable, and if any provision of the Oklahoma | | | 12|Parental Choice Tax Credit Act or the application thereof to any | | | 13|person or circumstances is held invalid, such invalidity shall | | | 14|invalidate the other provisions or applications of this act. | | | 15| SECTION 5. The provisions of this act shall not become | | | 16|effective as law unless Enrolled House Bill No. 2775 of the 1st | | | 17|Session of the 59th Oklahoma Legislature becomes effective as law. | | | 18| SECTION 6. 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| | | | 23| | | | 24| Passed the Senate the 30th day of March, 2023. | | | Page 10 ___________________________________________________________________________
1| | | | 2| | | Presiding Officer of the Senate | 3| | | | 4| Passed the House of Representatives the ____ day of __________, | | | 5|2023. | | | 6| | | | 7| | | Presiding Officer of the House | 8| of Representatives | | | 9| | | | 10| | | | 11| | | | 12| | | | 13| | | | 14| | | | 15| | | | 16| | | | 17| | | | 18| | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | Page 11