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