Oklahoma 2024 Regular Session

Oklahoma House Bill HB1935 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 1 1
	2	+
	3	+	SENATE FLOOR VERSION - HB1935 SFLR Page 1
	4	+	(Bold face denotes Committee Amendments) 1
3	5		2
4	6		3
5	7		4
6	8		5
7	9		6
8	10		7
9	11		8
10	12		9
11	13		10
12	14		11
13	15		12
14	16		13
15	17		14
16	18		15
17	19		16
18	20		17
19	21		18
20	22		19
21	23		20
22	24		21
23	25		22
24	26		23
25	27		24
26	28
27		-	ENGROSSED SENATE AMENDMENTS
28		-	TO
29		-	ENGROSSED HOUSE
30		-	BILL NO. 1935 By: McCall, Bashore, Baker,
	29	+	SENATE FLOOR VERSION
	30	+	March 27, 2023
	31	+
	32	+
	33	+	COMMITTEE SUBSTITUTE
	34	+	FOR ENGROSSED
	35	+	HOUSE BILL NO. 1935 By: McCall, Bashore, Baker,
31	36		Luttrell, Caldwell (Chad),
32	37		Maynard, Echols, McBride,
33		-	Hilbert of the House
	38	+	Hilbert, and Culver of the
	39	+	House
34	40
35	41		and
36	42
37		-	Daniels and Jett of the
38		-	Senate
39		-
	43	+	Treat, Jett, Pugh, Daniels,
	44	+	Bullard, Rogers, Rosino,
	45	+	Thompson (Kristen),
	46	+	Bergstrom, McCortney,
	47	+	Thompson (Roger), Hall,
	48	+	Coleman, Paxton, Rader,
	49	+	Seifried, Green, Newhouse,
	50	+	Stewart, Prieto, Murdock,
	51	+	Montgomery, Pederson,
	52	+	Dugger, Pemberton, Weaver,
	53	+	Stanley, Haste, Garvin,
	54	+	Stephens, Burns, and Alvo rd
	55	+	of the Senate
40	56
41	57
42	58
43	59		An Act relating to students; creating the Oklahoma
44		-	Parental Choice Tax Credit Act; *** system; mandating
45		-	coordination of a process to verify student
46		-	enrollment status; *** providing for conditional
47		-	enactment; providing for codification; providing an
48		-	effective date; and declaring an emergency.
49		-
50		-
51		-
52		-
53		-	AUTHOR: Add the following House Coauthor: Culver
54		-
55		-	AUTHOR: Remove as principal Senate author Daniels and subs titute as
56		-	principal Senate author Treat
57		-
58		-	AUTHOR: Add the following Senate Coauthors: Pugh, Daniels, Rosin o,
59		-	McCortney, Thompson (R oger), Hall, Coleman, Paxton, Rader,
60		-	Seifried, Green, Newhouse, Stewart, Prieto, Murdock,
61		-	Montgomery, Pederson, Dugger, Pemberton, Wea ver, Stanley,
62		-	Haste, Garvin, Stephens , Burns, Alvord, Bergstrom, Thompson
63		-	(Kristen), Rogers, Bullard, and Woods
64		-
65		-	AMENDMENT NO. 1. Page 1, strike the title, enacting clause and
66		-	entire bill and insert
67		-
68		-
69		-	"An Act relating to students; creating the Oklahoma
70	60		Parental Choice Tax Credit Act; providing short
71	61		title; providing legislative intent; defining terms;
72	62		creating the Oklahoma Parental Choice Tax Credit
73	63		Program; providing purpose ; creating income tax
74		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 2 1
	64	+	credit for certain taxpayers beginning in certain tax
	65	+	year; prescribing maximum credit amount s; directing
	66	+	taxpayer to retain certain receipts and submit them
	67	+	upon certain request; authorizing the Oklahoma Tax
	68	+	Commission to prescribe certain forms; providing for
	69	+	advancement of certain credit in installments;
	70	+	providing procedures for claiming credit; authorizing
	71	+	dual participation in certain program ; authorizing
	72	+	the Commission to conduct or contract for certain
	73	+	audit; authorizing prorated recapture of credits
	74	+	under certain circumstances ; directing certain credit
	75	+	amount to be reduced if certain event occurs;
	76	+
	77	+	SENATE FLOOR VERSION - HB1935 SFLR Page 2
	78	+	(Bold face denotes Committee Amendments) 1
75	79		2
76	80		3
77	81		4
78	82		5
79	83		6
80	84		7
81	85		8
82	86		9
83	87		10
84	88		11
85	89		12
86	90		13
87	91		14
88	92		15
89	93		16
90	94		17
91	95		18
92	96		19
93	97		20
94	98		21
95	99		22
96	100		23
97	101		24
98	102
99		-	credit for certain taxpayers beginning in certain tax
100		-	year; prescribing maximum credit amount s; directing
101		-	taxpayer to retain certain receipts and submit them
102		-	upon certain request; authorizing the Oklahoma Tax
103		-	Commission to prescribe certain forms; providing for
104		-	advancement of certain credit in installments;
105		-	providing procedures for claiming credit; authorizing
106		-	dual participation in certain program ; authorizing
107		-	the Commission to conduct or contract for certain
108		-	audit; authorizing prorated recapture of credits
109		-	under certain circumstances ; directing certain credit
110		-	amount to be reduced if certain event occurs;
111	103		requiring the posting of certain credit amounts;
112	104		requiring the State Department of Education to
113	105		provide certain notice; directing implementation of
114	106		certain system; requiring coordination of a process
115	107		to verify student enrollment status; providing for
116	108		promulgation of rules; providing immunity fro m
117	109		liability for certain actions; a llowing certain
118	110		parents to intervene in certain legal proce eding;
119	111		prohibiting severability of act provisions; providing
120	112		for codification; providing conditional effective
121	113		date; and declaring an emergency .
122	114
123	115
124	116
125	117		BE IT ENACTED BY THE PE OPLE OF THE STATE OF O KLAHOMA:
126	118		SECTION 1. NEW LAW A new section of law to be codified
127	119		in the Oklahoma Statutes as Section 28 -100 of Title 70, unless there
128	120		is created a duplication in numbering, reads as follows:
129	121		A. This act shall be known and may be cited as the “Oklahoma
130	122		Parental Choice Tax Credit Act ”.
131	123		B. It is the intent of the Legislature that parents, legal
132	124		guardians, custodians, and others with legal authority over children
133	125		in this state be able to choose educational services that meet the
134	126		needs of their individual children. The Legislature affirms that
135	127		parents and legal guardians are best suited to make choices to help
136		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 3 1
	128	+	children in this state reach their full potential and achieve a
	129	+	brighter future.
	130	+	SECTION 2. NEW LAW A new s ection of law to be codified
	131	+	in the Oklahoma Statut es as Section 28-101 of Title 70, unless there
	132	+	is created a duplication in numbering, reads as follows:
	133	+	A. As used in the Oklahoma Parental Choice Tax Credit Act:
	134	+
	135	+	SENATE FLOOR VERSION - HB1935 SFLR Page 3
	136	+	(Bold face denotes Committee Amendments) 1
137	137		2
138	138		3
139	139		4
140	140		5
141	141		6
142	142		7
143	143		8
144	144		9
145	145		10
146	146		11
147	147		12
148	148		13
149	149		14
150	150		15
151	151		16
152	152		17
153	153		18
154	154		19
155	155		20
156	156		21
157	157		22
158	158		23
159	159		24
160	160
161		-	children in this state reach their full potential and achieve a
162		-	brighter future.
163		-	SECTION 2. NEW LAW A new s ection of law to be codified
164		-	in the Oklahoma Statutes as Section 28-101 of Title 70, unless there
165		-	is created a duplication in numbering, reads as follows:
166		-	A. As used in the Oklahoma Parental Choice Tax Credit Act:
167	161		1. “Commission” means the Oklahoma Tax C ommission;
168	162		2. “Curriculum” means a complete course of study for a
169	163		particular content area or grade level;
170	164		3. “Department” means the State Department of Education;
171	165		4. “Education service provider ” means a person, business,
172	166		public school district, public c harter school, magnet school,
173	167		institution within Th e Oklahoma State System of Higher Education, or
174	168		organization that provides educational goods and/or services to
175	169		eligible students;
176	170		5. “Eligible student” means a resident of this state who is
177	171		eligible to enroll in a public school in this state and who is a
178	172		member of a household in which the total adjusted gross income
179	173		during the preceding tax year does not exceed Two Hundred Fifty
180	174		Thousand Dollars ($250,000.00). Eligible student shall include a
181	175		student who is enrolled in and attends a private school accredited
182	176		by the State Board of Education or another accrediting association
183	177		or a student who is educated pursuant to the other means of
184		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 4 1
	178	+	education exception provided for in subsection A of Section 10 -105
	179	+	of Title 70 of the Oklahoma Statutes;
	180	+	6. “Qualified expense” for the purpose of claiming the credit
	181	+	authorized by subparagraph a of paragraph 1 of subsection C of this
	182	+	section means tuition and fees at a private school accredited by the
	183	+	State Board of Education or another accrediting association;
	184	+
	185	+	SENATE FLOOR VERSION - HB1935 SFLR Page 4
	186	+	(Bold face denotes Committee Amendments) 1
185	187		2
186	188		3
187	189		4
188	190		5
189	191		6
190	192		7
191	193		8
192	194		9
193	195		10
194	196		11
195	197		12
196	198		13
197	199		14
198	200		15
199	201		16
200	202		17
201	203		18
202	204		19
203	205		20
204	206		21
205	207		22
206	208		23
207	209		24
208	210
209		-	education exception provided for in subsection A of Section 10 -105
210		-	of Title 70 of the Oklahoma Statutes;
211		-	6. “Qualified expense” for the purpose of claiming the credit
212		-	authorized by subparagraph a of paragraph 1 of subsection C of this
213		-	section means tuition and fees at a private school accredited by the
214		-	State Board of Education or another accrediting association;
215	211		7. “Qualified expense” for the purpose of claiming the credit
216	212		authorized by subparagraph b of paragraph 1 of subsection C of this
217	213		section means the following expenditures:
218	214		a. tuition and fees for nonpublic onl ine learning
219	215		programs,
220	216		b. academic tutoring services provide d by an individual
221	217		or a private academic tutoring facility,
222	218		c. textbooks, curriculum, or other instructional
223	219		materials including, but not limited to, supplemental
224	220		materials or associated online in struction required by
225	221		an education service provider, and
226	222		d. fees for nationally standardized assessments
227	223		including, but not limited to, assessments used to
228	224		determine college admission and advanced placement
229	225		examinations as well as tuition and fees for tuto ring
230	226		or preparatory courses for the assessments ; and
231		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 5 1
	227	+	8. “Taxpayer” means a biological or adoptive parent,
	228	+	grandparent, aunt, uncle, legal guardian, custodian, or other person
	229	+	with legal authority to act on behalf of an eligible student.
	230	+	B. There is hereby created the Oklahoma Parental Choice Tax
	231	+	Credit Program to provide an income tax credit to a taxpayer for
	232	+	qualified expenses to support the education of eligi ble students in
	233	+	this state.
	234	+
	235	+	SENATE FLOOR VERSION - HB1935 SFLR Page 5
	236	+	(Bold face denotes Committee Amendments) 1
232	237		2
233	238		3
234	239		4
235	240		5
236	241		6
237	242		7
238	243		8
239	244		9
240	245		10
241	246		11
242	247		12
243	248		13
244	249		14
245	250		15
246	251		16
247	252		17
248	253		18
249	254		19
250	255		20
251	256		21
252	257		22
253	258		23
254	259		24
255	260
256		-	8. “Taxpayer” means a biological or adoptive parent,
257		-	grandparent, aunt, uncle, legal guardian, custodian, or other person
258		-	with legal authority to act on behalf of an eligible student.
259		-	B. There is hereby created the Oklahoma Parental Choice T ax
260		-	Credit Program to provide an income tax credit to a taxpayer for
261		-	qualified expenses to support the education of eligi ble students in
262		-	this state.
263	261		C. For the tax year 2023 and subsequent tax years, there shall
264	262		be allowed against the tax imposed by Section 2355 of Title 68 of
265	263		the Oklahoma Statutes a credit for any Oklahoma taxpayer who incurs
266	264		a qualified expense on behalf of an eligible student. Provided, the
267	265		credit allowed for tax year 2023 shall only be for qua lified
268	266		expenses made on or after July 1, 2023. The credit shall be
269	267		administered subject to the following:
270	268		1. The maximum credit amount shall be:
271	269		a. Seven Thousand Five Hundred Dollars ($7,500.00) in
272	270		qualified expenses per eligible student in each tax
273	271		year if the eligible student attends a private school
274	272		accredited by the State Board of Education or another
275	273		accrediting association or the amount of tuition and
276	274		fees for the private school, whichever is less , and
277	275		b. One Thousand Dollars ($1, 000.00) in qualified expenses
278	276		per taxpayer in each tax year if one or more eligible
279	277		students is educated pursuant to the othe r means of
280		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 6 1
	278	+	education exception provided for in subsection A of
	279	+	Section 10-105 of Title 70 of the Oklahoma Statutes .
	280	+	To claim the credit, the taxpayer shall submit to the
	281	+	Commission receipts for qualified expense s as defined
	282	+	by paragraph 7 of subsection A of this section;
	283	+
	284	+	SENATE FLOOR VERSION - HB1935 SFLR Page 6
	285	+	(Bold face denotes Committee Amendments) 1
281	286		2
282	287		3
283	288		4
284	289		5
285	290		6
286	291		7
287	292		8
288	293		9
289	294		10
290	295		11
291	296		12
292	297		13
293	298		14
294	299		15
295	300		16
296	301		17
297	302		18
298	303		19
299	304		20
300	305		21
301	306		22
302	307		23
303	308		24
304	309
305		-	education exception provided for in subsection A of
306		-	Section 10-105 of Title 70 of the Oklahoma Statutes .
307		-	To claim the credit, the taxpayer shall submit to the
308		-	Commission receipts for qualified expense s as defined
309		-	by paragraph 7 of subsection A of this section;
310	310		2. The taxpayer shall retain all receipts of qualified expenses
311	311		as proof of the amounts paid each tax year the credit is claimed and
312	312		shall submit them to the Commission up on request; and
313	313		3. If the credit exceeds the tax imposed by Sectio n 2355 of
314	314		Title 68 of the Oklahoma Statutes, th e excess amount shall be
315	315		refunded to the taxpayer.
316	316		D. The Commission may prescribe forms for purposes of claiming
317	317		the credits authorized by t he Oklahoma Parental Ch oice Tax Credit
318	318		Act. The Commission shall c reate a form for the purpose of allowing
319	319		taxpayers to request that the credit amount provided in subparagraph
320	320		a of paragraph 1 of subsection C of this s ection be advanced to the
321	321		taxpayer in two installments of no t more than Three Thousand Seven
322	322		Hundred Fifty Dollars ($3,750.00) per semester for a maxim um credit
323	323		of Seven Thousand Five Hundred Dollars ($7,500.00) per tax year or
324	324		the amount of tuition and fe es for the private school, whichever is
325	325		less. Eligible taxpayers who submit the form and qualify for an
326	326		advance shall be approved and paid within sixt y (60) days of
327	327		submitting the prescribed form.
328	328		E. Taxpayers claiming the credit shall:
329		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 7 1
	329	+	1. Only claim the credit for qualified expenses as defined in
	330	+	paragraphs 6 and 7 of subsection A of this section to prov ide an
	331	+	education for an eligible student;
	332	+	2. Ensure no other person is claiming a credit for the eligible
	333	+	student;
	334	+
	335	+	SENATE FLOOR VERSION - HB1935 SFLR Page 7
	336	+	(Bold face denotes Committee Amendments) 1
330	337		2
331	338		3
332	339		4
333	340		5
334	341		6
335	342		7
336	343		8
337	344		9
338	345		10
339	346		11
340	347		12
341	348		13
342	349		14
343	350		15
344	351		16
345	352		17
346	353		18
347	354		19
348	355		20
349	356		21
350	357		22
351	358		23
352	359		24
353	360
354		-	1. Only claim the credit for qualified expenses as defin ed in
355		-	paragraphs 6 and 7 of subsection A of this section to prov ide an
356		-	education for an eligible student;
357		-	2. Ensure no other person is claiming a credit for the eligible
358		-	student;
359	361		3. Not claim the credit for an elig ible student who enrolls as
360	362		a full-time student in a public school district, public charter
361	363		school, public virtual charter s chool, or magnet school; and
362	364		4. Comply with rules and requirements established by the
363	365		Commission for administration of the Oklahoma Parental Choice Tax
364	366		Credit Program.
365	367		F. Eligible students m ay accept a scholarship from the Lindsey
366	368		Nicole Henry Scholarshi ps for Students with Disabilities Program
367	369		created by Section 13-101.2 of Title 70 of the Oklahoma Statutes
368	370		while participating in th e Oklahoma Parental Choice Tax Credit
369	371		Program.
370	372		G. 1. The Commission shall have the authority to conduc t an
371	373		audit or contract for the auditing of receipts fo r qualified
372	374		expenses submitted pursuant to subparagraph b of paragraph 1 of
373	375		subsection C of this s ection.
374	376		2. The Commission shall be authorized to recapture the credits
375	377		otherwise authorized by the prov isions of this act on a p rorated
376	378		basis if an audit conducted pursuant to this subsectio n shows that
377	379		the credit was claimed for expenditures that were no t qualified
378		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 8 1
	380	+	expenses or it finds that the taxpayer has claim ed an eligible
	381	+	student who no longer attends a private school or has enrolled in a
	382	+	public school in the state.
	383	+	H. In the event of a failure of revenue pursuant to the
	384	+	Oklahoma State Finance Act, the tax credits otherwise authorized in
	385	+
	386	+	SENATE FLOOR VERSION - HB1935 SFLR Page 8
	387	+	(Bold face denotes Committee Amendments) 1
379	388		2
380	389		3
381	390		4
382	391		5
383	392		6
384	393		7
385	394		8
386	395		9
387	396		10
388	397		11
389	398		12
390	399		13
391	400		14
392	401		15
393	402		16
394	403		17
395	404		18
396	405		19
397	406		20
398	407		21
399	408		22
400	409		23
401	410		24
402	411
403		-	expenses or it finds that the taxpayer has claim ed an eligible
404		-	student who no longer attends a private school or has enrolled in a
405		-	public school in the state.
406		-	H. In the event of a failure of revenue pursuant to the
407		-	Oklahoma State Finance Act, the tax credits otherwise authorized in
408	412		subsection C of this section shall be reduced proportionately to the
409	413		reduction in the amo unt of money appropriated to the State Board of
410	414		Education for the financial support of public scho ols for the fiscal
411	415		year in which the failure of revenue occurs.
412	416		I. The Commission shall make available on its website the
413	417		amount of credits claimed each tax year pursuant to subparagraphs a
414	418		and b of paragraph 1 of subse ction C of this section.
415	419		SECTION 3. NEW LAW A new section of law to be codified
416	420		in the Oklahoma Statu tes as Section 28-102 of Title 70, unless th ere
417	421		is created a duplicat ion in numbering, reads as follows:
418	422		A. The State Department o f Education shall provide parents,
419	423		legal guardians, custodians, o r other persons with legal authority
420	424		of eligible students wi th disabilities notice that participation in
421	425		the Oklahoma Parental Ch oice Tax Credit Program shall have the same
422	426		effect as a parental revocation of consent pursuant to 20 U.S.C.,
423	427		Sections 1414(a)(1)(D) and 1414(C) of the Individuals with
424	428		Disabilities Education Act (IDEA) and an explanation of the ri ghts
425	429		parents, legal guard ians, custodians, or other persons with legal
426		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 9 1
	430	+	authority of eligible students with disabilities hav e under IDEA and
	431	+	any applicable state laws and regulations.
	432	+	B. The Department shall impl ement a commercially viable, cost-
	433	+	effective, and user-friendly system for users to publicly rate,
	434	+	review, and share information abo ut education service providers.
	435	+
	436	+	SENATE FLOOR VERSION - HB1935 SFLR Page 9
	437	+	(Bold face denotes Committee Amendments) 1
427	438		2
428	439		3
429	440		4
430	441		5
431	442		6
432	443		7
433	444		8
434	445		9
435	446		10
436	447		11
437	448		12
438	449		13
439	450		14
440	451		15
441	452		16
442	453		17
443	454		18
444	455		19
445	456		20
446	457		21
447	458		22
448	459		23
449	460		24
450	461
451		-	authority of eligible students with disabilities hav e under IDEA and
452		-	any applicable state laws and regulations.
453		-	B. The Department shall impl ement a commercially viable, cost-
454		-	effective, and user-friendly system for users to publicly rate,
455		-	review, and share information abo ut education service providers.
456	462		C. The Oklahoma Tax Commission s hall coordinate with the State
457	463		Department of Education to de velop a process to review student
458	464		enrollment information in order to verify that an eligible student
459	465		who is claimed by a taxpayer r eceiving a tax credit is not enrolle d
460	466		in a public school in the s tate.
461	467		D. The Commission may promulgate rules to implement t he
462	468		provisions of the Oklahoma Parental Choic e Tax Credit Act. The
463	469		State Board of Education may promulgate rules to implement the
464	470		provisions of this section.
465	471		SECTION 4. NEW LAW A new section of law to be codified
466	472		in the Oklahoma Statutes as Section 28-103 of Title 70, unless there
467	473		is created a duplication in numbering, reads as follows:
468	474		A. No liability shall arise on the part of the Oklahoma Tax
469	475		Commission, State Departme nt of Education, State Board of Education,
470	476		the state, a public school district, a public charter school, a
471	477		public virtual charter s chool, or a magnet school based on the award
472	478		of or use of a tax credit pursuant to the Oklahoma Parental Choice
473	479		Tax Credit Act.
474		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 10 1
	480	+	B. If any part of the Oklahoma Parental Choice Tax Credit Act
	481	+	is challenged in a state court as violat ing either the Oklahoma
	482	+	Constitution or United States Constitution, taxpayers shall be
	483	+	permitted to intervene for the purposes of defending the Oklaho ma
	484	+	Parental Choice Tax Credit Program’s constitutionality. Ho wever,
	485	+	for the purposes of judicial administ ration, a court may requi re
	486	+
	487	+	SENATE FLOOR VERSION - HB1935 SFLR Page 10
	488	+	(Bold face denotes Committee Amendments) 1
475	489		2
476	490		3
477	491		4
478	492		5
479	493		6
480	494		7
481	495		8
482	496		9
483	497		10
484	498		11
485	499		12
486	500		13
487	501		14
488	502		15
489	503		16
490	504		17
491	505		18
492	506		19
493	507		20
494	508		21
495	509		22
496	510		23
497	511		24
498	512
499		-	B. If any part of the Oklahoma Parental Choice Tax Credit Act
500		-	is challenged in a state court as violat ing either the Oklahoma
501		-	Constitution or United States Constitution, taxpayers shall be
502		-	permitted to intervene for the purposes of defending the Oklaho ma
503		-	Parental Choice Tax Credit Program’s constitutionality. Ho wever,
504		-	for the purposes of judicial administ ration, a court may requi re
505	513		that all taxpayers file a joint brief so long as they are not
506	514		required to join any brief filed on behalf of any named stat e
507	515		defendant.
508	516		C. The provisions of the Oklahoma Parental Choic e Tax Credit
509	517		Act shall not be severable, and if any provision of the Oklahoma
510	518		Parental Choice Tax Credit Act or the application thereof to any
511	519		person or circumstances is held invalid, such invalidity shall
512	520		invalidate the other provisions or applications of this act.
513	521		SECTION 5. The provisions of this act sha ll not become
514	522		effective as law unless Enrolled House Bill No. 2775 of the 1st
515	523		Session of the 59th Oklahoma Legislature becomes effective as law.
516	524		SECTION 6. It being immediately necessary for the preservation
517	525		of the public peace, health , or safety, an emergency is hereby
518	526		declared to exist, by reason whereof this act shall take effect and
519		-	be in full force from and a fter its passage and approval."
520		-
521		-
522		-
523		-
524		-	ENGR. S. A. TO ENGR. H . B. NO. 1935 Page 11 1
525		-	2
526		-	3
527		-	4
528		-	5
529		-	6
530		-	7
531		-	8
532		-	9
533		-	10
534		-	11
535		-	12
536		-	13
537		-	14
538		-	15
539		-	16
540		-	17
541		-	18
542		-	19
543		-	20
544		-	21
545		-	22
546		-	23
547		-	24
548		-
549		-	Passed the Senate the 30th day of March, 2023.
550		-
551		-
552		-
553		-	Presiding Officer of the Senate
554		-
555		-
556		-	Passed the House of Representatives the ____ day of __________,
557		-	2023.
558		-
559		-
560		-
561		-	Presiding Officer of the House
562		-	of Representatives
563		-	ENGR. H. B. NO. 1935 Page 1 1
564		-	2
565		-	3
566		-	4
567		-	5
568		-	6
569		-	7
570		-	8
571		-	9
572		-	10
573		-	11
574		-	12
575		-	13
576		-	14
577		-	15
578		-	16
579		-	17
580		-	18
581		-	19
582		-	20
583		-	21
584		-	22
585		-	23
586		-	24
587		-
588		-	ENGROSSED HOUSE
589		-	BILL NO. 1935 By: McCall, Bashore, Baker,
590		-	Luttrell, Caldwell (Chad),
591		-	Maynard, Echols, McBride,
592		-	Hilbert of the House
593		-
594		-	and
595		-
596		-	Daniels and Jett of the
597		-	Senate
598		-
599		-
600		-
601		-
602		-
603		-
604		-	An Act relating to students; creating the Oklahoma
605		-	Parental Choice Tax Credit Act; providing short
606		-	title; providing legislative intent; defining terms;
607		-	establishing the Oklahoma Parental Choice Ta x Credit
608		-	Program; providing for purpose of program; creating
609		-	income tax credit for certain taxpayers; prescribing
610		-	maximum credit amount; directing taxpayer to retain
611		-	certain receipts; authorizing Tax Commission to
612		-	prescribe forms; permitting advancement of certain
613		-	credit; listing procedures for taxpayers claiming
614		-	credit; authorizing dual participation in certain
615		-	programs; authorizing prorated recapture of credits;
616		-	suspending credits if certain funding levels are not
617		-	met; reducing credit amount if certain ev ent occurs;
618		-	providing for confidentiality of certain records;
619		-	requiring Department to provide notice to certain
620		-	taxpayers; directing Department to implement certain
621		-	system; mandating coordination of a process to verify
622		-	student enrollment status; providing for promulgation
623		-	of rules; providing immunity from liability for
624		-	certain actions; allowing certain parents to
625		-	intervene in certain legal proceeding; prohibiting
626		-	severability of act provisions; creating the Oklahoma
627		-	Student Fund; making the fund a continuing fund;
628		-	stating source of funds; providing for budgeting and
629		-	expenditure of monies; stating purpose; requiring
630		-	expenditures to be made upon warrants; providing for
631		-	conditional enactment; providing for codification;
632		-	providing an effective dat e; and declaring an
633		-	emergency.
634		-
635		-	ENGR. H. B. NO. 1935 Page 2 1
636		-	2
637		-	3
638		-	4
639		-	5
640		-	6
641		-	7
642		-	8
643		-	9
644		-	10
645		-	11
646		-	12
647		-	13
648		-	14
649		-	15
650		-	16
651		-	17
652		-	18
653		-	19
654		-	20
655		-	21
656		-	22
657		-	23
658		-	24
659		-
660		-	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
661		-	SECTION 7. NEW LAW A new section of law to be codified
662		-	in the Oklahoma Statutes as Section 28-100 of Title 70, unless there
663		-	is created a duplication in numbering, reads as follows:
664		-	A. This act shall be known and may be cited as the "Oklahoma
665		-	Parental Choice Tax Credit Act".
666		-	B. It is the intent of the Legislature that parents, legal
667		-	guardians, custodians, and others with legal authority over children
668		-	in this state be able to choose educational services that meet the
669		-	needs of their individual children. The Legislature affirms that
670		-	parents and legal guardians are best suited to make choices to help
671		-	children in this state reach their full potential and achieve a
672		-	brighter future.
673		-	SECTION 8. NEW LAW A new section of law to be codified
674		-	in the Oklahoma Statut es as Section 28-101 of Title 70, unless there
675		-	is created a duplication in numbering, reads as follows:
676		-	A. As used in the Oklahoma Parental Choice Tax Credit Act:
677		-	1. "Commission" means the Oklahoma Tax Commission ;
678		-	2. "Curriculum" means a complete course of study for a
679		-	particular content area or grade level;
680		-	3. "Department" means the State Department of Education;
681		-	4. "Education service provider" means a person, business,
682		-	public school district, public charter school, magnet schoo l,
683		-	institution within Th e Oklahoma State System of Higher Education, or
684		-	ENGR. H. B. NO. 1935 Page 3 1
685		-	2
686		-	3
687		-	4
688		-	5
689		-	6
690		-	7
691		-	8
692		-	9
693		-	10
694		-	11
695		-	12
696		-	13
697		-	14
698		-	15
699		-	16
700		-	17
701		-	18
702		-	19
703		-	20
704		-	21
705		-	22
706		-	23
707		-	24
708		-
709		-	organization that provides educational goods and/or services to
710		-	eligible students;
711		-	5. "Eligible student" means a resident of this state who is
712		-	eligible to enroll in a public school in this state. Eligible
713		-	student shall include a student who is enrolled in and attends a
714		-	private school accredited by the State Board of Education or another
715		-	accrediting association or a student who is educated pursuant to the
716		-	other means of education exception p rovided for in subsection A of
717		-	Section 10-105 of Title 70 of the Oklahoma Statutes;
718		-	6. "Qualified expense" means the following services:
719		-	a. tuition and fees at a private school accredited by the
720		-	State Board of Education or another accrediting
721		-	association,
722		-	b. tuition and fees for nonpublic online learning
723		-	programs,
724		-	c. academic tutoring services provided by an individual
725		-	or a private academic tutoring facility,
726		-	d. textbooks, curriculum, or other instruc tional
727		-	materials including, but not limited to, supplemental
728		-	materials or associated online instruction required by
729		-	an education service provider,
730		-	e. fees for nationally standardized assessments
731		-	including, but not limited to, assessments used to
732		-	determine college admi ssion and advanced placement
733		-	ENGR. H. B. NO. 1935 Page 4 1
734		-	2
735		-	3
736		-	4
737		-	5
738		-	6
739		-	7
740		-	8
741		-	9
742		-	10
743		-	11
744		-	12
745		-	13
746		-	14
747		-	15
748		-	16
749		-	17
750		-	18
751		-	19
752		-	20
753		-	21
754		-	22
755		-	23
756		-	24
757		-
758		-	examinations as well as tuition and fees for tutoring
759		-	or preparatory courses for the assessments, and
760		-	f. tuition and fees for concurrent enrollment at an
761		-	institution within The Oklahoma State System of Higher
762		-	Education; and
763		-	7. "Taxpayer" means a biological or adoptive parent,
764		-	grandparent, aunt, uncle, legal guardian, custodian, or other person
765		-	with legal authority to act on behalf of an el igible student.
766		-	B. There is hereby created the Oklahoma Parental Cho ice Tax
767		-	Credit Program to provide an income tax credit to a taxpayer for
768		-	qualified expenses to support the education of eligible students in
769		-	this state.
770		-	C. For tax years beginning after January 1, 2023, there shall
771		-	be allowed against the tax imposed by Section 2355 of Title 68 of
772		-	the Oklahoma Statutes a credit for any Oklahoma taxpayer who incurs
773		-	a qualified expense on behalf of an eligible student. The credit
774		-	shall be administered subject to the following:
775		-	1. The maximum credit amount shall be:
776		-	a. Five Thousand Dollars ($5,000.00) in qualified expenses
777		-	per eligible student in each tax year if the eligible
778		-	student attends a private school accredited by the
779		-	State Board of Education or another accrediting
780		-	association, and
781		-	ENGR. H. B. NO. 1935 Page 5 1
782		-	2
783		-	3
784		-	4
785		-	5
786		-	6
787		-	7
788		-	8
789		-	9
790		-	10
791		-	11
792		-	12
793		-	13
794		-	14
795		-	15
796		-	16
797		-	17
798		-	18
799		-	19
800		-	20
801		-	21
802		-	22
803		-	23
804		-	24
805		-
806		-	b. Two Thousand Five Hundred Dollars ($2,500.00) in
807		-	qualified expenses per eligible student in each tax
808		-	year if the eligible student is educated pursuant to
809		-	the other means of education exception provided for in
810		-	subsection A of Section 10-105 of Title 70 of the
811		-	Oklahoma Statutes;
812		-	2. The taxpayer shall retain all receipts of qualified expenses
813		-	as proof of the amounts paid each tax year the credit is claimed;
814		-	and
815		-	3. If the credit exceeds the tax imposed by Section 2355 of
816		-	Title 68 of the Oklahoma Statutes, the excess amount shall be
817		-	refunded to the taxpayer.
818		-	D. The Commission may prescribe forms for purposes of claiming
819		-	the credits authorized by the Oklahoma Parental Choice Tax Credit
820		-	Act. The Commission shall create a form for the purpose of allowing
821		-	taxpayers to request that the credit amount provided in subparagraph
822		-	a of paragraph 1 of subsection C of this section be advanced to the
823		-	taxpayer in two installments of not more than Two Thousand Five
824		-	Hundred Dollars ($2,500.00) per semester for a maximum credit of
825		-	Five Thousand Dollars ($5,000.00) per tax year. Eligible taxpayers
826		-	who submit the form and qualify for an advance shall be approved and
827		-	paid within sixty (60) days of submitting the prescribed form.
828		-	E. Taxpayers claiming the credit shall:
829		-	ENGR. H. B. NO. 1935 Page 6 1
830		-	2
831		-	3
832		-	4
833		-	5
834		-	6
835		-	7
836		-	8
837		-	9
838		-	10
839		-	11
840		-	12
841		-	13
842		-	14
843		-	15
844		-	16
845		-	17
846		-	18
847		-	19
848		-	20
849		-	21
850		-	22
851		-	23
852		-	24
853		-
854		-	1. Only claim the credit for qualified expenses as defined in
855		-	paragraph 6 of subsection A of this section to provide an education
856		-	for an eligible student;
857		-	2. Ensure no other person is claiming a credit for the eligible
858		-	student;
859		-	3. Not claim the credit for an eligible student who enrolls as
860		-	a full-time student in a publi c school district, public charter
861		-	school, public virtual charter school, or magnet school; and
862		-	4. Comply with rules and requirements established by the
863		-	Commission for administration of the Oklahoma Parental Choice Tax
864		-	Credit Program.
865		-	F. Eligible students may accept a scholarship from the Li ndsey
866		-	Nicole Henry Scholarships for Students with Disabilities Program
867		-	created by Section 13-101.2 of Title 70 of the Oklahoma Statutes
868		-	while participating in the Oklahoma Parental Choice Tax Credit
869		-	Program.
870		-	G. The Commission shall be authorized to recapture the credits
871		-	otherwise authorized by the provisions of this act on a prorated
872		-	basis if it finds that the taxpayer has claimed an eligible student
873		-	who no longer attends a private school or has enrolled in a public
874		-	school in the state or that the credit does not meet the
875		-	requirements of the Oklahoma Parental Choice Tax Credit Act.
876		-	H. Beginning July 1, 2024, and beginning on eac h succeeding
877		-	July 1 if the amount of money appropriated to the State Board of
878		-	ENGR. H. B. NO. 1935 Page 7 1
879		-	2
880		-	3
881		-	4
882		-	5
883		-	6
884		-	7
885		-	8
886		-	9
887		-	10
888		-	11
889		-	12
890		-	13
891		-	14
892		-	15
893		-	16
894		-	17
895		-	18
896		-	19
897		-	20
898		-	21
899		-	22
900		-	23
901		-	24
902		-
903		-	Education for the financial support of public schools for the fiscal
904		-	year which begins July 1, 2024, is less than the amount of money
905		-	appropriated to the State Board of Education for the financial
906		-	support of public schools for the fiscal year ending June 30, 2024,
907		-	including funds appropriated pursuant to Sections 1, 2, and 3 of
908		-	Enrolled House Bill No. 2775 enacted by the 1st Session of the 59th
909		-	Oklahoma Legislature, the tax credits otherwise authorized in
910		-	subsection C of this section shall be suspended until the amount of
911		-	money appropriated to the State Board of Education for the financial
912		-	support of public schools is greater than or equal to the amount
913		-	appropriated for the fiscal year ending June 30, 2024.
914		-	I. In the event of a failure of revenue pursuant to the
915		-	Oklahoma State Finance Act, the tax credits otherwise authorized in
916		-	subsection C of this section shall be reduced proportionately to the
917		-	reduction in the amount of money appropriated to the State Boar d of
918		-	Education for the financial support of public schools for the fiscal
919		-	year in which the failure of revenue occurs.
920		-	J. The Tax Commission shall keep all records rela ting to the
921		-	Oklahoma Parental Choice Tax Credit Act confidential including, but
922		-	not limited to, the Social Security numbers of eligible student s.
923		-	SECTION 9. NEW LAW A new se ction of law to be codified
924		-	in the Oklahoma Statutes as Sec tion 28-102 of Title 70, unless there
925		-	is created a duplication in numbering, reads as f ollows:
926		-	ENGR. H. B. NO. 1935 Page 8 1
927		-	2
928		-	3
929		-	4
930		-	5
931		-	6
932		-	7
933		-	8
934		-	9
935		-	10
936		-	11
937		-	12
938		-	13
939		-	14
940		-	15
941		-	16
942		-	17
943		-	18
944		-	19
945		-	20
946		-	21
947		-	22
948		-	23
949		-	24
950		-
951		-	A. The State Department of Education shall provide parents,
952		-	legal guardians, custodians, or ot her persons with legal authority
953		-	of eligible students with disabilities notice that participation in
954		-	the Oklahoma Parental Choice Tax Credit Program shall have the same
955		-	effect as a parental revocation of consent pursuant to 20 U.S.C.,
956		-	Sections 1414(a)(1)(D) and 1414(C) of the Individuals with
957		-	Disabilities Education Act (IDEA) and an explanation of the rights
958		-	parents, legal guardians, custodians, or ot her persons with legal
959		-	authority of eligible students with disabilities have under IDEA and
960		-	any applicable state laws and regulat ions.
961		-	B. The Department shall implement a co mmercially viable, cost-
962		-	effective, and user-friendly system for users to publicly rate,
963		-	review, and share information about education service providers.
964		-	C. The Oklahoma Tax Commission shall coordinate with the State
965		-	Department of Education to develop a process to review student
966		-	enrollment information in order to verify that an eligible student
967		-	who is claimed by a taxpayer receiving a tax credit is not enrolled
968		-	in a public school in the state.
969		-	D. The Commission and Department may promulgate rules to
970		-	implement the provisions of the Oklahoma Parental Choice Tax Cred it
971		-	Act.
972		-	SECTION 10. NEW LAW A new section of law to be codified
973		-	in the Oklahoma Statutes as Section 28-103 of Title 70, unless th ere
974		-	is created a duplication in numbering, reads as follows:
975		-	ENGR. H. B. NO. 1935 Page 9 1
976		-	2
977		-	3
978		-	4
979		-	5
980		-	6
981		-	7
982		-	8
983		-	9
984		-	10
985		-	11
986		-	12
987		-	13
988		-	14
989		-	15
990		-	16
991		-	17
992		-	18
993		-	19
994		-	20
995		-	21
996		-	22
997		-	23
998		-	24
999		-
1000		-	A. No liability shall arise on the part of the Oklahoma Tax
1001		-	Commission, State Department of Education, State Board of Education,
1002		-	the state, a public school district, a public charter school , a
1003		-	public virtual charter school, or a magnet school based on the award
1004		-	of or use of a tax credit pursuant to the Oklahoma Parental Choi ce
1005		-	Tax Credit Act.
1006		-	B. If any part of the Oklahoma Parental Choice Tax Credit Act
1007		-	is challenged in a state court as violatin g either the Oklahoma
1008		-	Constitution or United States Constitution, taxpayers shall be
1009		-	permitted to intervene for the purposes of defending the Oklahoma
1010		-	Parental Choice Tax Credit Program's constitutionality. However,
1011		-	for the purposes of judicial administra tion, a court may require
1012		-	that all taxpayers file a joint brief so long as they are not
1013		-	required to join any brief filed on behalf of any named state
1014		-	defendant.
1015		-	C. The provisions of the Oklahoma Parental Choice Tax Credit
1016		-	Act shall not be severable, and if any provision of the Oklahoma
1017		-	Parental Choice Tax Credit Act or the application thereof to any
1018		-	person or circumstances is held invalid, such invalidity shall
1019		-	invalidate the other provisions or applica tions of this act.
1020		-	SECTION 11. NEW LAW A new section of law to be codified
1021		-	in the Oklahoma Statutes as Section 28-104 of Title 70, unless there
1022		-	is created a duplication in numbering, reads as follows:
1023		-	ENGR. H. B. NO. 1935 Page 10 1
1024		-	2
1025		-	3
1026		-	4
1027		-	5
1028		-	6
1029		-	7
1030		-	8
1031		-	9
1032		-	10
1033		-	11
1034		-	12
1035		-	13
1036		-	14
1037		-	15
1038		-	16
1039		-	17
1040		-	18
1041		-	19
1042		-	20
1043		-	21
1044		-	22
1045		-	23
1046		-	24
1047		-
1048		-	There is hereby created in the S tate Treasury a revolving fund
1049		-	for the State Board of Education to be designated the "Oklahoma
1050		-	Student Fund". The fund shall be a continuing fund, not subject to
1051		-	fiscal year limitations, and shall consist of all monies designated
1052		-	for deposit to the fund b y law. All monies accruing to the credit
1053		-	of the fund are hereby appropriated and may be budgeted a nd expended
1054		-	by the State Board of Education for the purpose of funding public
1055		-	school districts as provided in Sections 2 and 3 of Enrolled House
1056		-	Bill No. 2775 enacted by the 1st Session of the 59th Oklahoma
1057		-	Legislature. Expenditures from the fund shall be made upon warrants
1058		-	issued by the State Treasure r against claims filed as prescribed by
1059		-	law with the Director of the Office of Management and Enterprise
1060		-	Services for approval and payment.
1061		-	SECTION 12. The provisions of this act shall be contingent upon
1062		-	the enactment of Enrolled House Bill No. 2775 of the 1st Session of
1063		-	the 59th Oklahoma Legislatu re.
1064		-	SECTION 13. This act shall become effective July 1, 2023.
1065		-	SECTION 14. It being immediately necessary for the pres ervation
1066		-	of the public peace, health or safety, an emergency is hereby
1067		-	declared to exist, by reason whereof this act shall take effect and
1068	527		be in full force from and a fter its passage and approval.
1069		-	ENGR. H. B. NO. 1935 Page 11 1
1070		-	2
1071		-	3
1072		-	4
1073		-	5
1074		-	6
1075		-	7
1076		-	8
1077		-	9
1078		-	10
1079		-	11
1080		-	12
1081		-	13
1082		-	14
1083		-	15
1084		-	16
1085		-	17
1086		-	18
1087		-	19
1088		-	20
1089		-	21
1090		-	22
1091		-	23
1092		-	24
1093		-
1094		-	Passed the House of Representatives the 22nd day of February,
1095		-	2023.
1096		-
1097		-
1098		-
1099		-
1100		-	Presiding Officer of the House
1101		-	of Representatives
1102		-
1103		-
1104		-	Passed the Senate the ___ day of __________, 2023.
1105		-
1106		-
1107		-
1108		-
1109		-	Presiding Officer of the Senate
1110		-
1111		-
1112		-
	528	+	COMMITTEE REPORT BY: C OMMITTEE ON FINANCE
	529	+	March 27, 2023 - DO PASS AS AMENDED BY CS