Bill Text For SB0990 - Introduced

 1|                          STATE OF OKLAHOMA                            |
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 2|             1st Session of the 59th Legislature (2023)                |
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 3|SENATE BILL 990                      By: Garvin                        |
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 6|                            AS INTRODUCED                              |
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 7|       An Act relating to family leave benefits; creating              |
  |       the Oklahoma Paid Family Leave Program; requiring the           |
 8|       Oklahoma Employment Security Commission to manage the           |
  |       Program; authorizing certain employers and employees            |
 9|       to participate in the Program; requiring certain                |
  |       deductions and contributions; providing benefit                 |
10|       eligibility after certain period; requiring benefits            |
  |       to be paid by the Commission; providing benefit                 |
11|       amount; creating the Oklahoma Paid Family Leave                 |
  |       Program Revolving Fund; providing sources of funds;             |
12|       providing for expenditures from fund; providing an              |
  |       income tax credit for certain deductions from wages;            |
13|       stating amount of credit; making credit refundable;             |
  |       amending 68 O.S. 2021, Section 2352, which relates to           |
14|       apportionment of income tax revenues; providing                 |
  |       apportionment to the Oklahoma Paid Family Leave                 |
15|       Program Revolving Fund; requiring Commission to                 |
  |       determine certain amount; providing for codification;           |
16|       and providing an effective date.                                |
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17|                                                                       |
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18|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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19|    SECTION 1.     NEW LAW     A new section of law to be codified     |
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20|in the Oklahoma Statutes as Section 710 of Title 40, unless there is   |
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21|created a duplication in numbering, reads as follows:                  |
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22|    A.  There is hereby created the Oklahoma Paid Family Leave         |
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23|Program.                                                               |
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24|                                                                       |
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   Req. No. 639                                                    Page 1
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 1|    B.  The Oklahoma Employment Security Commission shall manage the   |
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 2|Oklahoma Paid Family Leave Program.                                    |
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 3|    C.  Any employee and employer in this state may elect to           |
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 4|participate in the Program.  Upon election to participate:             |
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 5|    1.  An employer shall contribute an amount equal to forty-five     |
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 6|hundredths of one percent (0.45%) of the wages paid to each            |
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 7|participating employee;                                                |
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 8|    2.  For an employee of an employer who elects to participate in    |
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 9|the Program, the employer of the employee shall deduct forty-five      |
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10|hundredths of one percent (0.45%) of the employee's salary;            |
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11|    3.  For an employee of an employer who elects not to participate   |
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12|in the Program, the employer of the employee shall deduct nine         |
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13|tenths of one percent (0.9%) of the employee's salary; and             |
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14|    4.  For an employee of this state who elects to participate in     |
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15|the Program, the employer of the employee shall deduct nine tenths     |
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16|of one percent (0.9%) of the employee's salary.                        |
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17|    Employers shall remit the deductions and contributions made        |
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18|pursuant to this subsection by the fifth day after each month.         |
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19|    D.  Employees that have contributed to the Program through         |
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20|deductions, as provided in subsection C of this section, for a         |
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21|period of six (6) consecutive months shall be eligible to receive      |
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22|benefits upon approval and shall be paid during use of leave           |
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23|pursuant to the Family and Medical Leave Act of 1993, 29 U.S.C.,       |
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24|Section 2601 et seq.                                                   |
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   Req. No. 639                                                    Page 2
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 1|    E.  Benefits shall be paid to the employee by the Commission       |
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 2|from funds in the Oklahoma Paid Family Leave Program Revolving Fund    |
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 3|created pursuant to Section 2 of this act.                             |
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 4|    F.  Benefits shall be paid on a weekly basis in the amount of      |
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 5|ninety percent (90%) of the employee's average weekly wage but shall   |
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 6|not exceed fifty percent (50%) of the statewide average weekly wage    |
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 7|for the preceding calendar year, as determined by the Commission.      |
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 8|    SECTION 2.     NEW LAW     A new section of law to be codified     |
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 9|in the Oklahoma Statutes as Section 711 of Title 40, unless there is   |
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10|created a duplication in numbering, reads as follows:                  |
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11|    There is hereby created in the State Treasury a revolving fund     |
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12|for the Oklahoma Employment Security Commission to be designated the   |
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13|"Oklahoma Paid Family Leave Program Revolving Fund".  The fund shall   |
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14|be a continuing fund, not subject to fiscal year limitations, and      |
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15|shall consist of all monies received by the apportionment of           |
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16|revenues pursuant to Section 2352 of Title 68 of the Oklahoma          |
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17|Statutes and employee remittances and employer contributions paid      |
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18|pursuant to Section 1 of this act.  All monies accruing to the         |
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19|credit of the fund are hereby appropriated and may be budgeted and     |
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20|expended by the Commission for the purpose of providing benefits       |
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21|pursuant to the Oklahoma Paid Family Leave Program.  Up to one         |
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22|percent (1%) of the average monthly balance of the fund may be used    |
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23|by the Commission for administrative expenses to implement the         |
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24|Program.  Expenditures from the fund shall be made upon warrants       |
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   Req. No. 639                                                    Page 3
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 1|issued by the State Treasurer against claims filed as prescribed by    |
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 2|law with the Director of the Office of Management and Enterprise       |
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 3|Services for approval and payment.                                     |
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 4|    SECTION 3.     NEW LAW     A new section of law to be codified     |
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 5|in the Oklahoma Statutes as Section 2357.305 of Title 68, unless       |
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 6|there is created a duplication in numbering, reads as follows:         |
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 7|    A.  For tax year 2024 and subsequent tax years, a qualified        |
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 8|employee shall be allowed a credit against the tax imposed pursuant    |
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 9|to Section 2355 of Title 68 of the Oklahoma Statutes equal to          |
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10|deductions made exceeding forty-five hundredths of one percent         |
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11|(0.45%) of the wages paid to the employee for any pay period in the    |
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12|tax year for participation in the Oklahoma Paid Family Leave Program   |
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13|created pursuant to Section 1 of this act.                             |
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14|    B.  If the credit provided in subsection A of this section         |
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15|exceeds the tax imposed by Section 2355 of Title 68 of the Oklahoma    |
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16|Statutes, the excess amount shall be refunded to the taxpayer.         |
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17|    SECTION 4.     AMENDATORY     68 O.S. 2021, Section 2352, is       |
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18|amended to read as follows:                                            |
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19|    Section 2352.  It is hereby declared to be the purpose of          |
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20|Section 2351 et seq. of this title to provide revenue for general      |
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21|governmental functions of state government; and, for that purpose      |
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22|and to that end, it is expressly declared that the revenue derived     |
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23|herefrom and penalties and interest thereon, subject to the            |
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24|apportionment requirements for the Rebuilding Oklahoma Access and      |
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   Req. No. 639                                                    Page 4
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 1|Driver Safety Fund, the Oklahoma Tourism and Passenger Rail            |
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 2|Revolving Fund, the Public Transit Revolving Fund and the Education    |
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 3|Reform Revolving Fund to be derived from income tax revenue that       |
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 4|would otherwise be apportioned to the General Revenue Fund as          |
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 5|provided by Section 1521 of Title 69 of the Oklahoma Statutes,         |
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 6|subject to the apportionment requirements for the Oklahoma Tax         |
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 7|Commission and Office of Management and Enterprise Services Joint      |
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 8|Computer Enhancement Fund provided by Section 265 of this title, and   |
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 9|subject to the apportionment requirements for the Oklahoma State       |
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10|Capitol Building Repair and Restoration Fund provided by Section 19    |
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11|of Title 73 of the Oklahoma Statutes, shall be distributed as          |
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12|follows:                                                               |
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13|    1.  For the fiscal year beginning July 1, 2002, the first Five     |
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14|Million Eight Hundred Thousand Dollars ($5,800,000.00) of revenue      |
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15|derived pursuant to the provisions of subsections A, B and E of        |
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16|Section 2355 of this title shall be apportioned to the Education       |
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17|Reform Revolving Fund.  For the fiscal year 2024 and subsequent        |
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18|fiscal years, an amount determined to be necessary to provide for      |
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19|benefit payments and administrative expenses of the Oklahoma Paid      |
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20|Family Leave Program created pursuant to Section 1 of this act shall   |
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21|be deposited in the Oklahoma Paid Family Leave Program Revolving       |
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22|Fund created pursuant to Section 2 of this act.  The remainder of      |
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23|such revenue for the fiscal year beginning July 1, 2002, and all       |
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24|                                                                       |
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   Req. No. 639                                                    Page 5
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 1|such revenue for each fiscal year thereafter shall be apportioned      |
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 2|monthly as follows:                                                    |
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 3|         a.   the following amounts shall be paid to the State         |
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 4|              Treasurer to be placed to the credit of the General      |
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 5|              Revenue Fund of the state for such fiscal year for the   |
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 6|              support of the state government to be paid out only      |
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 7|              pursuant to appropriation by the Legislature:            |
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 8|              Fiscal Year                                 Amount       |
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 9|              FY 2003 and FY 2004                     87.12%           |
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10|              FY 2005                                 86.91%           |
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11|              FY 2006                                 86.66%           |
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12|              FY 2007                                 86.16%           |
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13|              FY 2008 through FY 2022                 85.66%           |
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14|              FY 2023 through FY 2027                 85.41%           |
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15|              FY 2028 and each fiscal year thereafter 85.66%           |
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16|              Of the funds apportioned to the General Revenue Fund     |
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17|              pursuant to this subparagraph, until the expiration of   |
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18|              the Filmed in Oklahoma Act of 2021 as provided in        |
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19|              Section 11 of this act, Thirty Million Dollars           |
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20|              ($30,000,000.00) shall be transferred to the Oklahoma    |
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21|              Tax Commission for deposit in the Filmed in Oklahoma     |
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22|              Program Revolving Fund,                                  |
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   Req. No. 639                                                    Page 6
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 1|         b.    the following amounts shall be paid to the State        |
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 2|              Treasurer to be placed to the credit of the Education    |
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 3|              Reform Revolving Fund of the State Department of         |
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 4|              Education:                                               |
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 5|              (1)   for FY 2003 through FY 2020, eight and             |
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 6|                   thirty-four one-hundredths percent (8.34%),         |
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 7|              (2)   for FY 2021:                                       |
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 8|                   (a)  for the month beginning July 1, 2020,          |
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 9|                        through the month ending August 31, 2020,      |
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10|                        eight and thirty-four one-hundredths percent   |
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11|                        (8.34%), and                                   |
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12|                   (b)  for the month beginning September 1, 2020,     |
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13|                        through the month ending June 30, 2021, nine   |
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14|                        and eighty-four one-hundredths percent         |
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15|                        (9.84%),                                       |
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16|              (3)   for FY 2022 and each fiscal year thereafter,       |
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17|                   eight and thirty-four one-hundredths percent        |
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18|                   (8.34%) shall be paid to the State Treasurer to     |
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19|                   be placed to the credit of the Education Reform     |
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20|                   Revolving Fund,                                     |
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21|         c.    the following amounts shall be paid to the State        |
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22|              Treasurer to be placed to the credit of the Teachers'    |
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23|              Retirement System Dedicated Revenue Revolving Fund:      |
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24|              Fiscal Year                                 Amount       |
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   Req. No. 639                                                    Page 7
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 1|              FY 2003 and FY 2004                      3.54%           |
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 2|              FY 2005                                  3.75%           |
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 3|              FY 2006                                   4.0%           |
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 4|              FY 2007                                   4.5%           |
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 5|              FY 2008 through FY 2020                   5.0%           |
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 6|              FY 2021:                                                 |
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 7|              (1)  for the month beginning                             |
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 8|                   July 1, 2020, through                               |
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 9|                   the month ending August                             |
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10|                   31, 2020  5.0%                                      |
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11|              (2)for the month beginning September 1, 2020, through    |
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12|                   the month ending June 30, 2021       3.5%           |
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13|              FY 2022                                   5.0%           |
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14|              FY 2023 through FY 2027                  5.25%           |
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15|              FY 2028 and each fiscal                                  |
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16|                year thereafter                         5.0%           |
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17|         d.    for FY 2003 and each fiscal year thereafter, one        |
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18|              percent (1%) shall be placed to the credit of the Ad     |
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19|              Valorem Reimbursement Fund;                              |
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20|    2.  Beginning July 1, 2003, for any period of time as certified    |
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21|by the Oklahoma Development Finance Authority and the Oklahoma         |
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22|Department of Commerce to be necessary for the repayment of            |
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23|obligations issued by the Oklahoma Development Finance Authority       |
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24|pursuant to Section 3654 of this title if the other sources of         |
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   Req. No. 639                                                    Page 8
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 1|revenue paid to or apportioned to the Quality Jobs Program Incentive   |
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 2|Leverage Fund are not adequate including the proceeds from payment     |
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 3|pursuant to the guaranty required by subsection M of Section 3654 of   |
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 4|this title, an amount certified by the Oklahoma Development Finance    |
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 5|Authority to the Oklahoma Tax Commission shall be apportioned to the   |
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 6|Quality Jobs Program Incentive Leverage Fund before any other          |
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 7|apportionments are made as otherwise authorized by this paragraph.     |
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 8|The Oklahoma Development Finance Authority shall certify to the        |
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 9|Oklahoma Tax Commission the time as of which the revenue authorized    |
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10|for apportionment pursuant to this paragraph is no longer required.    |
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11|After the certification, the revenue derived from the income tax       |
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12|shall be apportioned in the manner otherwise provided by this          |
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13|section.  Except as otherwise provided by this paragraph, for the      |
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14|fiscal year beginning July 1, 2002, the first Forty-one Million One    |
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15|Hundred Ninety Thousand Eight Hundred Dollars ($41,190,800.00) of      |
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16|revenue derived pursuant to the provisions of subsections D and E of   |
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17|Section 2355 of this title shall be apportioned to the Education       |
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18|Reform Revolving Fund.  The remainder of such revenue for the fiscal   |
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19|year beginning July 1, 2002, and all such revenue for each fiscal      |
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20|year thereafter, subject to the apportionment requirements for the     |
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21|Oklahoma Tax Commission and Office of Management and Enterprise        |
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22|Services Joint Computer Enhancement Fund provided by Section 265 of    |
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23|this title, shall be apportioned monthly as follows:                   |
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   Req. No. 639                                                    Page 9
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 1|         a.    the following amounts shall be paid to the State        |
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 2|              Treasurer to be placed to the credit of the General      |
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 3|              Revenue Fund of the state for such fiscal year for the   |
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 4|              support of the state government to be paid out only      |
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 5|              pursuant to appropriation by the Legislature:            |
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 6|              Fiscal Year                                 Amount       |
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 7|              FY 2003 and FY 2004                     78.96%           |
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 8|              FY 2005                                 78.75%           |
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 9|              FY 2006                                 78.50%           |
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10|              FY 2007                                  78.0%           |
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11|              (1)  (a)  FY 2018 through FY 2022                        |
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12|                        until the apportionment to                     |
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13|                        the General Revenue Fund                       |
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14|                        equals the moving                              |
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15|                        five-year average amount                       |
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16|                        for corporate income tax                       |
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17|                        as prescribed by paragraph                     |
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18|                        3 of this section  77.50%                      |
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19|                   (b)FY 2023 through FY 2027 until the                |
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20|                        apportionment to the General Revenue Fund      |
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21|                        equals the moving five-year average amount     |
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22|                        for corporate income tax as prescribed by      |
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23|                        paragraph 3 of this section  77.25%            |
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24|                                                                       |
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   Req. No. 639                                                    Page 10
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 1|                   (c)FY 2028 and each fiscal year thereafter until    |
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 2|                        the apportionment to the General Revenue       |
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 3|                        Fund equals the moving five-year average       |
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 4|                        amount for corporate income tax as             |
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 5|                        prescribed by paragraph 3 of this section      |
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 6|                        77.50%                                         |
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 7|              (2)   there shall be apportioned from the tax levy       |
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 8|                   imposed on corporate income tax to the Revenue      |
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 9|                   Stabilization Fund created by Section 34.102 of     |
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10|                   Title 62 of the Oklahoma Statutes, or to the        |
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11|                   Constitutional Reserve Fund, as provided by         |
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12|                   Section 34.102 of Title 62 of the Oklahoma          |
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13|                   Statutes, the amount of revenue, if any, which      |
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14|                   exceeds the moving five-year average amount as      |
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15|                   defined pursuant to paragraph 3 of this section,    |
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16|         b.    the following amounts shall be paid to the State        |
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17|              Treasurer to be placed to the credit of the Education    |
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18|              Reform Revolving Fund of the State Department of         |
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19|              Education:                                               |
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20|              (1)   for FY 2003 through FY 2020, sixteen and           |
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21|                   five-tenths percent (16.5%),                        |
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22|              (2)   for FY 2021:                                       |
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23|                                                                       |
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24|                                                                       |
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   Req. No. 639                                                    Page 11
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 1|                   (a)  for the month beginning July 1, 2020,          |
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 2|                        through the month ending August 31, 2020,      |
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 3|                        sixteen and five-tenths percent (16.5%), and   |
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 4|                   (b)  for the month beginning September 1, 2020,     |
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 5|                        through the month ending June 30, 2021,        |
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 6|                        eighteen percent (18%),                        |
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 7|              (3)   for FY 2022, and each fiscal year thereafter,      |
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 8|                   sixteen and five-tenths percent (16.5%),            |
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 9|         c.    the following amounts shall be paid to the State        |
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10|              Treasurer to be placed to the credit of the Teachers'    |
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11|              Retirement System Dedicated Revenue Revolving Fund:      |
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12|              Fiscal Year                                 Amount       |
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13|              FY 2003 and FY 2004                      3.54%           |
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14|              FY 2005                                  3.75%           |
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15|              FY 2006                                   4.0%           |
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16|              FY 2007                                   4.5%           |
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17|              FY 2008 through FY 2020                   5.0%           |
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18|              FY 2021:                                                 |
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19|              (1)  for the month beginning                             |
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20|                   July 1, 2020, through                               |
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21|                   the month ending August                             |
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22|                   31, 2020  5.0%                                      |
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23|                                                                       |
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24|                                                                       |
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   Req. No. 639                                                    Page 12
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 1|              (2)  for the month beginning                             |
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 2|                   September 1, 2020,                                  |
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 3|                   through the month ending                            |
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 4|                   June 30, 2021    3.5%                               |
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 5|              FY 2022                                   5.0%           |
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 6|              FY 2023 through FY 2027                  5.25%           |
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 7|              FY 2028 and each fiscal                                  |
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 8|                year thereafter                         5.0%           |
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 9|         d.    for FY 2003 and each fiscal year thereafter, one        |
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10|              percent (1%) shall be placed to the credit of the Ad     |
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11|              Valorem Reimbursement Fund; and                          |
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12|    3.  "Moving five-year average for corporate income tax" means,     |
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13|for purposes of the apportionments prescribed by this section, the     |
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14|amount of income tax on corporations, as determined by the State       |
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15|Board of Equalization in the manner prescribed by Section 34.103 of    |
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16|Title 62 of the Oklahoma Statutes.                                     |
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17|    SECTION 5.  This act shall become effective November 1, 2023.      |
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18|                                                                       |
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19|    59-1-639       QD        1/19/2023 4:35:14 PM                      |
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   Req. No. 639                                                    Page 13
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