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SENATE FLOOR VERSION
February 19, 2024
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 1504 By: Thompson (Kristen) and
Garvin of the Senate
and
McEntire of the House
An Act relating to medical preceptorship training;
defining terms; providing income tax credit for
certain individuals who conduct a preceptorship
rotation; providing amount of and basis for credit;
providing limitations on credits allowed; prohibiting
refundability of credit; authorizi ng the carry
forward of credit; directing the State B oard of
Medical Licensure and Supervision , the State Board of
Osteopathic Examiners , and the Oklahoma Board of
Nursing to award credit; limiting the amount of
credit awarded to balance of certain revolving funds;
authorizing allocation of partial credit; a uthorizing
credits not allowed to be claimed in subsequent year;
specifying eligibility for credit; directing the
State Board of Medical Licensure and Supervision , the
State Board of Osteopathic Examiner s, and the
Oklahoma Board of Nursing to deposit certa in fees in
revolving fund for certain purpose; requiring
submission of information; authorizing promulgation
of rules; creating the Physician Preceptor Tax Credit
Revolving Fund, the Physician Assistant Preceptor Tax
Credit Revolving Fund, the Osteopathic Physician
Preceptor Tax Credit Revolving Fund , and the Advanced
Practice Registered Nurses Preceptor Tax Credit
Revolving Fund; specifying sources of funds;
providing for transfer of monies to Oklahoma T ax
Commission; requiring apportionment of monies;
authorizing administrative expenditures; stating
purpose; providing for codification; providing an
effective date; and declaring an emergency .
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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. “Faculty preceptor” means an allopathic physician,
osteopathic physicia n, physician assistant, or advanced practice
registered nurse licensed in this state and who is either a p rimary
care physician or, with respect to a physician assistant or advanced
practice registered nurse, is performing most of his or her
professional services for a primary car e physician;
2. “Medical school” means a legally chartered medical school
recognized by the Oklahoma State Regents for Higher Education ;
3. “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;
4. “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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5. “Preceptorship rotation” means a period of preceptorship
training of one or more medical students, residents, physician
assistant students, or advanced practice registered nurses that in
aggregate totals one hundred sixty (160) hours;
6. “Preceptorship training” means uncompensated training of a
medical student, resident, physician assistant student, or advanced
practice registered nurse enrolled in a training program in this
state;
7. “Primary care physician ” shall mean a physician practicing
in family medicine, geriatrics, ge neral internal medicine, or
general pediatrics;
8. “Resident” means an allopathic physician or osteopath ic
physician pursuing postgraduate medical education at a program
supported by a medical school or a school or college of osteopathic
medicine in this state; and
9. “School or college of osteopathic me dicine” shall have the
same meaning as provided by Section 631 of Title 59 of the Oklahoma
Statutes.
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. Except as provided for by subsection F of this section,
credit shall be allowed for no greater than ten preceptorship
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rotations completed in a calendar year, and shall be equal to the
following amounts:
a. for a medical student or resident, 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 subsequent rotations,
and
b. for a physician assistant student or advanced practice
registered nurse, 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 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 cred its authorized by this
section may be carried over, in order, to each of the five (5)
subsequent tax years.
E. 1. The State Board of Medical Licensure and Supervision
shall award the credit authorized by subsection B of this section to
faculty preceptors for preceptorship rotati ons of:
a. medical students enrolled in a medical school in this
state,
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b. residents who are allopathic physicians pursuing
postgraduate medical education at a program supported
by a medical school in this state, and
c. physician assistant students.
2. The State Board of Osteopathic E xaminers shall award the
credit authorized by subsection B of this section to faculty
preceptors for preceptorship rotations of:
a. medical students enrolled in a school or colle ge of
osteopathic medicine in this state, and
b. residents who are osteopathic physicians pursuing
postgraduate medical edu cation at a program supported
by a school or college of osteopathic medicine in this
state.
3. The Oklahoma Board of Nursing shall award the credit
authorized by subsection B of this section to faculty precept ors for
preceptor rotations with respect to advanced practice registered
nurses.
F. 1. The credits awarded by the State Board of Medical
Licensure and Supervision under subparagraphs a and b of paragraph 1
of subsection E of this section for the tax year shall not exceed
the amount deposited to the Physician Preceptor Tax Credit Revolving
Fund created in Section 2 of this act during the fiscal year ending
on the June 30 date immediately pre ceding the date upon which the
applicable income tax year begins .
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2. The credits awarded by the State Board of Medical Lic ensure
and Supervision under subparagraph c of pa ragraph 1 of subsectio n E
of this section for the tax year shall not exceed the amount
deposited to the Physician Assistant Preceptor Tax C redit Revolving
Fund created in Section 3 of this act during the fiscal year ending
on the June 30 date immediately p receding the date upon which the
applicable income tax year begins .
3. The credits awarded by the State Board of Osteopathic
Examiners under paragraph 2 of subsection E of this section for the
tax year shall not exceed the amount deposited to the Osteopathic
Physician Preceptor Tax Credit Revolving Fund created in Section 4
of this act during the preceding fiscal year ending on the June 30
date immediately preceding the date upon which the applicable income
tax year begins.
4. The credits awarded by the Oklahoma Board of Nursing under
paragraph 3 of subsection E of this section for the tax year shall
not exceed the amount deposited to the Advanced Practice Registered
Nurses Preceptor Tax Credit Revolving Fund created in Se ction 5 of
this act during the preceding fiscal year ending on the June 30 date
immediately preceding the date upon which the applicable income tax
year begins.
G. Partial claims for credit may be awarded. Credits e arned
but not allowed due to the application of the limitation provided in
this section shall be considered suspended and authorized to be used
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in the subsequent tax year and applied to the next tax year ’s
limitation.
H. In order to receive the credit pro vided 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 tra ining; and
3. Supply supporting documentation a s may be required by the
State Board of Medical Licensure and Supervision , the State Board of
Osteopathic Examiners, or the Oklahoma Board of Nursing.
I. 1. The State Board of Medical Li censure and Supervision
shall reserve Five Dollars ( $5.00) of every annual licensu re fee
received from allopathic physicians and shall deposit the sum to the
Physician Preceptor Tax Credit Revolving Fund created in Section 2
of this act for the purpose of providing funding for the credit
authorized by this section.
2. The State Board of Medical L icensure and Supervision shall
reserve Two Dollars ($2.00) of every annual licensure fee received
from physician assistant s and shall deposit the sum to the Physician
Assistant Preceptor Tax Credit Revolving Fund cr eated in Section 3
of this act for the purpose of providing funding for the credit
authorized by this section.
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3. The State Board of Osteopathic Examiners shall r eserve Five
Dollars ($5.00) of every annual licensure fee rece ived from
osteopathic physician s and shall deposit the sum to the Osteopathic
Physician Preceptor Tax Credit Re volving Fund created in Section 4
of this act for the purpose of providing funding for the credit
authorized by this section .
4. The Oklahoma Board of Nursing shall reserve Two Dollars
($2.00) of every annual licen sure fee received from advanced
practice registered nurses and shall deposit the sum to the Advanced
Practice Registered Nurses Preceptor Tax Credit Revolving Fund
created in Section 5 of this act for the purpose of providing
funding for the credit authorize d by this section.
J. With respect to each tax year for which any tax credit
authorized by this section is awarded , the State Board of Medical
Licensure and Supervision, the State Board of Osteopathic Examiners,
and the Oklahoma Board of Nursing shall electronically submit
information to the Oklahoma Tax Commission , which shall include:
1. The number and amount of tax credits awarded;
2. The name of the taxpayers that were awarded credits; and
3. The amount deposited in the Physician Preceptor Tax Credit
Revolving Fund created in Section 2 of this act , the Physician
Assistant Preceptor Tax Credit Revolving Fund created in Section 3
of this act, the Osteopathic Physician Preceptor T ax Credit
Revolving Fund created in Section 4 of this act, and the Advanced
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Practice Registered Nurses Preceptor Tax Credit Revolving Fund
created in Section 5 of this act .
K. The Oklahoma Tax Commission, the State Board of Medical
Licensure and Supervision, the State Board of Osteop athic Examiners,
and the Oklahoma Board of Nursing may promulgate rules to e ffectuate
the provisions of this act.
SECTION 2. NEW LAW A new section of law to be codifie d
in the Oklahoma Statutes as Section 495i of Title 59, unless there
is created a duplication in numbering, re ads as follows:
There is hereby created in the State Treasury a revolving fund
for the State Board of Medical Licensure and Supervision to be
designated the “Physician Preceptor Tax Credit Revolving Fund”. The
fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of the monies received by the Board
from a portion of licensure f ees received from allopathic physicians
under subsection I of Section 1 of this act. All monies accruing to
the credit of the fund are hereby appropriated and the fund shall be
used to make a transfer payment to the Oklahoma Tax Commission in an
amount equal to the amount of tax cre dits awarded pursuant to this
act. The Oklahoma Tax Commission shall apportion monies transferred
from the fund in the same manner as provided by Section 2352 of
Title 68 of the Oklahoma Statutes. Monies in the fund which are not
required for payment of adminis trative expenses, which shall not
exceed five percent (5%) o f monies apportioned to the fund, or which
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are not required to be transferred to the Ok lahoma Tax Commission as
otherwise required b y this act to offset the revenue impacted by the
use of the income tax credits awarded pursuant to Section 1 of this
act may be used to implement programs required or authorized by law.
SECTION 3. NEW LAW A new section o f law to be codified
in the Oklahoma Statutes as Section 519.8a of Title 59, unless there
is created a duplication in numbering, reads a s follows:
There is hereby created in the State Treasury a revolving fund
for the State Board of Medical Licensure and Supervision to be
designated the “Physician Assistant Preceptor Tax Credit Revolving
Fund”. The fund shall be a continuing fund, not subject t o fiscal
year limitations, and shal l consist of the monies received by the
Board from a portion of licensure fees received from physician
assistants under subsection I of Section 1 of this act. All monies
accruing to the credit of the fund are hereb y appropriated and the
fund shall be used to make a transfer payment to the Oklahoma Tax
Commission in an amount equal to the amount of tax credits awarde d
pursuant to this act. The Oklahoma Tax Commission shall apportion
monies transferred from the fund in the same manner as provided by
Section 2352 of Title 68 of the Oklahoma Statutes. Monies in the
fund which are not required for payment of administrative expenses ,
which shall not exceed five percent (5%) of monies appo rtioned to
the fund, or which are not required to be transferred to the
Oklahoma Tax Commission as otherwise required b y this act to offset
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the revenue impacted by the use of the inc ome tax credits awarded
pursuant to Section 1 of this act may be used to implement programs
required or authorized by law.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sec tion 645.1 of Title 59, unless there
is created a duplication in numbe ring, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the State Board of Osteopathic Examiners to be designated the
“Osteopathic Physician Preceptor Tax Credit Revolving Fund”. The
fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of the monies received by the Board
from a portion of licensure fees received from osteopathic
physicians under subsection I of Section 1 of this act. All monies
accruing to the credit of the fund are hereby appropriated and the
fund shall be used to make a transfer payment to the Oklahoma Tax
Commission in an amount equal to the amount of tax credits awarded
pursuant to this act. The Oklahoma Tax Commission shall apportion
monies transferred from the fund in the same manner as provided by
Section 2352 of Title 68 of the Oklahoma Statutes. Monies in the
fund which are not required for payment of administrative expenses ,
which shall not exceed five percent (5%) of monies appo rtioned to
the fund, or which are not required to be transferred to the
Oklahoma Tax Commission as otherwise required b y this act to offset
the revenue impacted by the use of the inc ome tax credits awar ded
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pursuant to Section 1 of this act may be used to implement programs
required or authorized by law.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 567.31 of Title 59, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the Oklahoma Board of Nursing to be designated the “Advanced
Practice Registered Nurses Preceptor Tax Credit Revolving Fund”.
The fund shall be a continuing fund, not subject t o fiscal year
limitations, and shal l consist of the monies received by the Board
from a portion of licensur e fees received from advanced practice
registered nurses under subsection I of Section 1 of this act. All
monies accruing to the credit of the fund are hereby appropriated
and the fund shall be used to make a transfer payment to the
Oklahoma Tax Commission in an amount equal to the amount of ta x
credits awarded pursuant to t his act. The Oklahoma Tax Commission
shall apportion monies t ransferred from the fund in the same manner
as provided by Section 2352 of Title 68 of the Oklahoma Statutes.
Monies in the fund which are not required for paym ent of
administrative expenses , which shall not exceed five percent (5%) of
monies apportioned to the fund, or which are not required to be
transferred to the Ok lahoma Tax Commission as otherwise required b y
this act to offset the revenue impacted by the use of the income tax
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credits awarded pursuant to Section 1 of this act may be used to
implement programs required or authorized by law .
SECTION 6. This act shall become effective July 1, 2024.
SECTION 7. It being immediate ly necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage an d approval.
COMMITTEE REPORT BY: COMMITTEE ON FINANCE
February 19, 2024 - DO PASS AS AMENDED BY CS