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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1446 By: Rader
AS INTRODUCED
An Act relating to income tax credit; defining terms;
providing income tax credit for certain individuals
who conduct a preceptorship rot ation; providing
amount of and basis for credit; providing limitations
on credits allowed; requiring certification with
specified agency; requiring certifications by
specified agency; establishing requireme nts for
individuals claiming credit; establishing certain
requirements related to the Health Care Workforce
Training Commission; requiring evaluation by
Incentive Evaluation Commission; amending 70 O.S.
2021, Section 697.5, as amended by Section 19,
Chapter 407, O.S.L. 2022 (70 O.S. Supp. 2023, Section
697.5), which relates to the Health Care Workforce
Training Commission; providing additional duties;
updating statutory language; providing for
codification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.409 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. As used in this section:
1. “Advanced Practice Registered Nurse student” means an
individual participating in a state-supported training program in
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this state that is accredited by a nationally re cognized accrediting
body for advanced practice registered nursing programs for the
training of individuals to become Advanced Practice Registered
Nurses as defined in Section 567.3a of Title 59 of the Oklahoma
Statutes;
2. “Faculty preceptor” means a medical doctor, a doctor of
osteopathy, an Advanced Practice Registered Nurse, or a physician
assistant who:
a. is licensed in this state, and
b. practices in a location not less than forty (40) miles
from the city center of a city with a p opulation not
less than two hundred fifty thousand (250,000);
3. “Medical school” means a legally chartered allopathic
medical school recognized by the Oklahoma State Regents for Higher
Education;
4. “Medical student” means a student currently enrolled in a
medical school in this state or a school or college of osteopathic
medicine in this state;
5. “Physician assistant student” means an individual
participating in a state-supported training program in t his state
that is approved by the State Board of Medical Licensure and
Supervision for the training of individuals to become physician
assistants as defined in Section 519.2 of Title 59 of the Oklahoma
Statutes;
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6. “Preceptorship rotation” means a period of preceptorship
training of one or more me dical students, residents, physician
assistant students, or Advanced Practice Registered Nurse students
that in aggregate totals one hundred sixty (160) hours;
7. “Preceptorship training” means uncompensated training of a
medical student, resident, Advanced Practice Registered Nurse
student, or physician assistant student enrolled in a training
program in Oklahoma;
8. “Resident” means a medical doctor or doctor o f osteopathy
pursuing post-graduate medical educ ation at a program su pported by a
state-supported school, a medical sch ool, or a school or college of
osteopathic medicine in this state; and
9. “School or college of osteopathic medicine” means a legally
chartered and accredited school or college of osteopathic medicine
requiring:
a. for admission to its courses of s tudy, a preliminary
education equal to the r equirements established by the
Bureau of Professiona l Education of the American
Osteopathic Association, and
b. for granting the D.O. degree, Doctor of Osteopathy, or
Doctor of Osteopathic Medicine, actual attendance at
the osteopathic school or college an d demonstration of
successful completion of the curr iculum and
recommendation for graduation.
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B. 1. For tax years 2025 through 2034 , there shall be allowed
a credit against the tax imposed pursuant to Section 2355 of Title
68 of the Oklahoma Statutes for a faculty preceptor who conducts a
preceptorship rotation.
2. The credit shall be allowed for no greater than ten (10)
preceptorship rotations completed in a calendar year, and shall be
equal to the following amounts:
a. for a licensed medical doctor or doctor of osteopathy,
Five Hundred Dollars ($500.00) each for the first,
second, or third preceptorship rotatio ns and One
Thousand Dollars ($1,000.00) each for up to seven (7)
subsequent rotations, and
b. for a licensed Advanced Practice Registered Nurse or a
physician assistant, Three Hundred Seventy-five
Dollars ($375.00) each for the first, second, or third
preceptorship rotations and Seven Hundred Fifty
Dollars ($750.00) each for up to seven (7) subsequent
rotations.
C. The credit authorized by this section shall not be used to
reduce the tax liability of the taxpayer to less than zero (0).
D. To the extent not used, the credits authorized by this
section may be carried over, in order, to each of the five (5)
subsequent tax years.
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E. 1. For tax year 2027 and any subsequent tax year during
which the credit is allowed, the total amount of credits authorized
by subsection B of this section used to offset tax shall be adjusted
annually to limit the annual amount of credits to Two Million Two
Hundred Thousand Dollars ($2,200,000.00). The Oklahoma Tax
Commission shall annually calculate and publish a percentage by
which the credits authorized by subsection B of this section shall
be reduced so the total amount of credits used to offset tax does
not exceed Two Million Two Hundred Thousand Dollars ($2,200,000.00)
per year. The formula to be used for the percenta ge adjustment
shall be Two Million Two Hundred Thousand Dollars ($2,200,000.00)
divided by the credits claimed in the second precedin g tax year.
2. Pursuant to paragraph 1 of this subsection, in the event the
total tax credits authorized by subsection B of this section exceed
Two Million Two Hundred Thousand Dollars ($2,200,000.00) in any tax
year, the Tax Commission shall permit any excess over Two Million
Two Hundred Thousand Dollars ($2,200,000.00), but shal l factor such
excess into the percentage adjustment formula for subsequent years.
F. A faculty preceptor shall not be eligible for the credit
created under this section if he or she is not certified by the
Health Care Workforce Training Commission as provided by Section
697.5 of Title 70 of the Oklahoma Statutes.
G. The Health Care Workforce Training Commission shall certify
preceptorship rotations on behalf of all eligible public and private
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training programs for medicine, osteopathic medicine, advanced
practice registered nursing, and physician assistants at
institutions in this state for the purpose of determining
eligibility for the income tax credit create d under this section and
shall provide to the taxpayer the information as may be required
pursuant to subsection I of this section.
H. In order to receive the credit provided pursuant to this
section, a faculty preceptor shall:
1. Claim the credit for the tax year in which the preceptorship
rotation was completed;
2. Certify that he or she did not receive payment during the
tax year from any source for providing the training; and
3. Supply supporting documentation as may be required by the
Tax Commission.
I. The credit provided by this secti on shall be evaluated by
the Incentive Evaluation Commiss ion at least once in every four-year
period, as provided in Section 7004 of Title 62 of the Oklahoma
Statutes. In addition to any other data, the evaluation shal l
include data on the annual:
1. Number of faculty preceptors claiming the credit;
2. Total number of preceptorship rotations completed;
3. Number and type of trainees who participated in a
preceptorship rotation; and
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4. The total amount of credits allowed pursuant to this
section.
SECTION 2. AMENDATORY 70 O.S. 2021, Section 69 7.5, as
amended by Section 19, Chapter 407, O.S.L. 2022 (70 O.S. Supp. 2023,
Section 697.5), is amended to read as follows:
Section 697.5. The Health Care Workforce Training Commission,
in order to perform its official function in establishing and
administering physician training programs, shall ha ve the following
specific powers, duties, and responsibilities:
1. To review all available data on health care workforce in
Oklahoma in order to determine the current and projected
distribution of physicians by geographic location and by type of
practice, and, to accomplish this review, the Commission shall
obtain information from and work in conjunctio n with the State
Department of Health and all other agencies which gather data and
evaluate health care workforce needs;
2. To review data and information on accredited physician
internship and residency programs currently operated by Oklahoma
hospitals and other approved clinical situations, in order to
ascertain the number and distribution by physician s pecialty
training and by geographic location of available internship and
residency positions and to evaluate the impact of internship and
residency placement on the establishment of practices by physicians
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in that geographic area or similar areas within th e state where
their services are urgently needed;
3. To serve as an agent to advise hospitals, clinics, and
communities on setting up and planning internship and residency
programs which emphasize the provision of additional primary care
physicians to service the rural areas of Oklahoma with primary care
specialties to be defined to incl ude training in the area of
internal medicine, obstetrics and gynecology, pediatrics, emergency
trauma, and family practice;
4. To provide general counsel and advice in th e development,
operation and evaluation of physici an internship and residency
programs throughout the State of Oklahoma in cooperation with the
efforts of the Oklahoma State Regents for Higher Education and the
state’s physician training institutions such as the Oklahoma
University College of Medicine, Oklahoma City and Tulsa campuses,
and the Oklahoma College of Osteopathic Medicine and Surgery, and
subject to accreditation by official and appropriate accrediting
agencies;
5. To develop the criteria for d etermining the physician
training cost component or associated clinical and hospital training
costs which are or may be nonreimbursable by third party payers in
programs proposed by accredited hospitals, clinical situ ations, or
hospital and clinical progra ms affiliated with and administered by
the College of Medicine, College of Medicine – Tulsa, or College of
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Osteopathic Medicine and Surgery in order to determine the share for
the state in supporting the salary, benefits, training and program
administration costs incurred by hospitals in supporting of the
interns and residents;
6. To develop the criteria and procedure by which state
matching funds will be awarded to hospitals, accredited clinical
situations, in cooper ation with the University of Oklahoma Co llege
of Medicine, University of Oklahoma College of Medicine - Tulsa, and
the Oklahoma College of Osteopathic Medicine and Surgery which shall
administer programs in hospital and clinical situations in the state
to be used to underwrite the salaries, bene fits and associated
training and administration costs provided for the physician int erns
and residents during their period of training in such a way as to
create an incentive for the development and establishment of
residency and internship positions by ho spitals, clinical
establishments or by affiliation agreement with the University of
Oklahoma College of Medicine, University of Oklahoma College of
Medicine – Tulsa, and the Oklahoma College of Osteopathic Medicine
and Surgery by providing funds to cover an d to supplement the
nonreimbursable or additiona l costs incurred in hospitals for
training activities or for delivery of service in outreach and
ambulatory clinical situations which are outside but associated with
the hospitals and clinical establishments participating in the
program;
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7. To review and to approve for inclusion in the prog rams
funded the applications for funds submitted by accredited hospitals
and clinical situations participating in physician training programs
in cooperation with the Univer sity of Oklahoma College of Medicine,
University of Oklahoma College of Medicine - Tulsa and the Oklahoma
College of Osteopathic Medicine and Surgery for the costs of
supplying residents and interns in programs which they administer by
affiliation agreemen ts with hospitals and clinical situations
throughout the state in which the interns and residents are
supervised and funded by the University of Oklahoma College of
Medicine, University of Oklahoma College of Medicine - Tulsa and the
Oklahoma College of Os teopathic Medicine and Surgery and the
hospitals and clinical establishments pay for the patient care
services rendered in their institutions by these residents and
interns during the period of training;
8. To determine the specific level of funding and t he
priorities used for granting state support to approved hospitals and
clinical situations, in cooperation with the University of Oklahoma
College of Medicine, University of Oklahoma College of Medicine -
Tulsa and the Oklahoma College of Osteopathic Medi cine and Surgery
for approved hospital physici an training programs for interns and
residents and to recommend to the Governor and the Oklahoma
Legislature the total funds needed to carry out the purpose of this
program;
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9. To employ a director and any sta ff personnel required to
administer the funding of approved physician training progr ams and
to contract with other state agencies and institutions to conduct
and to perform specified services, functions and aspects in
administering state funds on the speci fied cost-sharing basis
determined by the Com mission or for developing programs and
community and institutional participation in these training
programs;
10. To ensure that hospitals or clinical situations that can
qualify in all sections of Oklahoma be u tilized, and to take all
steps necessary to assist such hospitals or clinics in obta ining
necessary recognition or status, or in meeting standards for
accreditation or affiliation so that they may participate in these
physician training programs;
11. To ensure that in programs administered and ope rated by the
University of Oklahoma Colle ge of Medicine, University of Oklahoma
College of Medicine - Tulsa and the Oklahoma College of Osteopathic
Medicine and Surgery in hospitals and clinical situations through out
the state that funds allocated to the colleges are paid by the
hospitals and clinical situations in which the patient care services
are rendered, the funds are expended for such purposes in funding
residents and interns in the physician training progra ms that the
colleges have established with the approved hospitals and clinical
situations which programs are designed to provide primary health
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care services to the rural and medically underserved parts of the
state;
12. To conduct and to administer a pro gram of physician and
health care workforce placement services throughout the State of
Oklahoma. Placement services shall be made available to
communities, hospitals, health care facilities, physician and health
professional training institutions, health profess ional associations
and organizations, individual physicians, health professiona ls,
students in physician and health professional training institutions
and schools, and other interested parties in such a way so as to
further the purposes of improving the di stribution of physicians and
health professionals practicing or available for pra ctice in the
state and improving in the availability of health care services to
the people of the state. Said The placement service shall include
but not be limited to assist ing communities in matching with,
contacting and recruiting physicians and heal th professionals to
practice in communities in the state. The Commission shall develop
criteria and procedures for the conduct and performance of placement
services and employ any staff, contract for services with any
private agency, nonprofit corporation , or institution to facilitate
the performance of placement services; and
13. For purposes of the income tax credit authorized pursua nt
to Section 1 of this act and in cooperation with the Oklahoma Tax
Commission:
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a. to certify preceptorship rotations for allopathic
medicine, osteopathic medicine, advance practice
registered nursing, and physician assistant training
programs in this stat e and to register faculty
preceptors who provide certified training, and
b. to promulgate any addit ional rules necessary for the
implementation of this act.
SECTION 3. This act shall become effective November 1, 2024.
59-2-3263 QD 12/15/2023 5:09:49 PM