Oklahoma 2024 2024 Regular Session

Oklahoma Senate Bill SB1504 Engrossed / Bill

Filed 03/12/2024

                     
 
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ENGROSSED 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 precepto rship 
rotation; providing amount of and basis for credit; 
providing limitations on credits allowed; prohibiting 
refundability of credit; authorizing the carry 
forward of credit; directing the Health Care 
Workforce Training Commission to award credit; 
limiting the amount of credit awarded to balance of 
certain revolving funds; authorizing allocation of 
partial credit; authorizing 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 Examiners, and the Oklahoma Board of 
Nursing to deposit certain 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 Tax Commission; requiring 
apportionment of monies; authorizing payment of 
administrative expenditures; stating purpose; 
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; 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.  “Advanced practice registered nursing student ” means an 
individual participating in a state -supported training program in 
this state that is approved by the Oklahoma Board of Nursing for the 
training of individu als to become Advanced Practice Registered 
Nurses as defined in Section 567.3a of Title 59 of the Oklahoma 
Statutes; 
2.  “Faculty preceptor” means an allopathic physician, 
osteopathic physician, physician assistant, or Advanced Practice 
Registered Nurse licensed in this state and who provides primary 
care services; 
3.  “Medical school” means a legally chartered 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 this state 
that is approved by the State Board of Medical Licens ure and   
 
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Supervision for the training of individuals to become physician 
assistants as defined in Section 519.2 of Title 59 of the Oklahoma 
Statutes; 
6.  “Preceptorship rotation ” means a period of preceptorship 
training of one or more medical students, resi dents, physician 
assistant students, or advanced practice registered nursing students 
that in aggregate totals one hundred sixty (160) hours; 
7.  “Preceptorship training ” means uncompensated training in 
primary care services of a medical student, resident, physician 
assistant student, or advanced practice registered nursing student 
enrolled in a training program in this state; 
8.  “Primary care services ” means family medicine, geriatrics, 
general internal medicine, general pediatrics, or the substantial 
equivalent of such services when performed by a physician assistant 
or Advanced Practice Registered Nurse; 
9.  “Resident” means an allopathic physician or osteopathic 
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 
10.  “School or college of osteopathic medicine ” 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   
 
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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 allow ed for no greater than ten preceptorship 
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 rotations 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 nursing student, 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 us ed, 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.  The Health Care Workforce Training Commission shall award 
the credit authorized by subsection B of this section to faculty 
preceptors for preceptorship rotations of: 
1.  Medical students enrolled in a medical school in this state; 
2.  Residents who are allopathic physicians pursuing 
postgraduate medical education at a program supported by a medical 
school in this state; 
3.  Physician assistant students; 
4.  Medical students enrolled in a school or college of 
osteopathic medicine in this state ; 
5.  Residents who are osteopathic physicians pursuing 
postgraduate medical education at a program supported by a school or 
college of osteopathic medicine in this state; and 
6.  Advanced practice registered nursing students. 
F.  1.  The credits awarded by the Health Care Workforce 
Training Commission under paragraphs 1 and 2 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 preceding the date upon which the applicable income tax 
year begins. 
2.  The credits awarded by th e Health Care Workforce Training 
Commission under paragraph 3 of subsection E of this section for the 
tax year shall not exceed the amount deposited to the Physician   
 
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Assistant Preceptor Tax Credit Revolving Fund created in Section 3 
of this act during the fiscal year ending on the June 30 date 
immediately preceding the date upon which the applicable income tax 
year begins. 
3.  The credits awarded by the Health Care Workforce Training 
Commission under paragraphs 4 and 5 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 Health Care Workforce Training 
Commission under paragraph 6 of subsection E of this section for the 
tax year shall not exceed the amount deposited to the Advanced 
Practice Registered Nurses Pre ceptor Tax Credit Revolving Fund 
created in Section 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.  Cr edits earned 
but not allowed due to the application of the limitation provided in 
this section shall be considered suspended and authorized to be used 
in the subsequent tax year and applied to the next tax year ’s 
limitation.   
 
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H.  In order to receive the cre dit 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 
Health Care Workforce Training Commission. 
I.  1.  The State Board of Medical Licensure and Supervision 
shall reserve Five Dollars ($5.00) of every annual licensure 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 Lice nsure and Supervision shall 
reserve Two Dollars ($2.00) of every annual licensure fee received 
from physician assistants and shall deposit the sum to the Physician 
Assistant Preceptor Tax Credit Revolving Fund created in Section 3 
of this act for the purpo se of providing funding for the credit 
authorized by this section. 
3.  The State Board of Osteopathic Examiners shall reserve Five 
Dollars ($5.00) of every annual licensure fee received from 
osteopathic physicians and shall deposit the sum to the Osteopath ic 
Physician Preceptor Tax Credit Revolving Fund created in Section 4   
 
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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 licensure 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 authorized b y this section. 
J.  1.  With respect to each tax year for which any tax credit 
authorized by this section is awarded, the Health Care Workforce 
Training Commission shall electronically submit information to the 
Oklahoma Tax Commission, which shall include the number and amount 
of tax credits awarded and the name of the taxpayers that were 
awarded credits. 
2.  With respect to each fiscal year the State Board of Medical 
Licensure and Supervision, the State Board of Osteopathic Examiners, 
and the Oklahoma Boar d of Nursing shall electronically submit to the 
Health Care Workforce Training Commission and the Oklahoma Tax 
Commission the amount deposited in the Physician Preceptor Tax 
Credit Revolving Fund created in Section 2 of this act, the 
Physician Assistant Pr eceptor Tax Credit Revolving Fund created in 
Section 3 of this act, the Osteopathic Physician Preceptor Tax 
Credit Revolving Fund created in Section 4 of this act, and the   
 
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Advanced Practice Registered Nurses Preceptor Tax Credit Revolving 
Fund created in Section 5 of this act. 
K.  The Oklahoma Tax Commission, the Health Care Workforce 
Training Commission, the State Board of Medical Licensure and 
Supervision, the State Board of Osteopathic Examiners, and the 
Oklahoma Board of Nursing may promulgate rules to effectuate the 
provisions of this act. 
SECTION 2.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statutes as Section 495i 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 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 fees 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 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 to the Health Care   
 
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Workforce Training Commission, which shall not exceed five percent 
(5%) of monies apportioned to the fun d, or which are not required to 
be transferred to the Oklahoma Tax Commission as otherwise required 
by 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 of law to be codified 
in the Oklahoma Statutes as Section 519.8a of Title 59, unless there 
is created a duplication in numbering, reads as follows: 
There is hereby crea ted 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 to fiscal 
year limitations, and shall 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 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 
to the Health Care Workforce Training Commission, which shall not   
 
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exceed five percent (5%) of monies apportioned to the fund, or which 
are not required to be transferred to the Oklahoma Tax Commission as 
otherwise required by 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 progra ms required or authorized by law. 
SECTION 4.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statutes as Section 645.1 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 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 
to the Health Care Workforce Training Commission, which shall not 
exceed five percent (5%) of monies apportioned to the fund, or which   
 
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are not required to be transferred to the Oklahoma Tax Commission as 
otherwise required by 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 req uired 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 to fiscal year 
limitations, and shal l consist of the monies received by the Board 
from a portion of licensure 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 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 to the Health Care Workforce Training 
Commission, which shall not exceed five percent (5%) of monies 
apportioned to the fund, or which are not required to be transferred   
 
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to the Oklahoma Tax Commission as otherwise required by 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 6.     AMENDATORY     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), is amended to read as follows: 
Section 697.5.  The H ealth Care Workforce Training Commission, 
in order to perform its official function in establishing and 
administering physician training programs, shall have the following 
specific powers, duties , and responsibilities: 
1.  To review all available data on h ealth 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 conjunction 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 specialty 
training and by geographic location of available internship and 
residency positions and to evaluate the impact of internship and   
 
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residency placement on the establishment of practices by physicians 
in that geographic area or similar areas within the state where 
their services are urgently needed; 
3.  To serve as an agent to advise hospitals, clinics, and 
communities on setting up and planning intern ship 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 include training in the area of 
internal medicine, obstetrics and gynecolo gy, pediatrics, emergency 
trauma, and family practice; 
4.  To provide general counsel and advice in the development, 
operation and evaluation of physician internship and residency 
programs throughout the State of Oklahoma this state 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 University of Oklahoma College of Medicine, Oklahoma City 
and Tulsa campuses, and the Oklahoma State University College of 
Osteopathic Medicine and Surgery, and subject to accreditation by 
official and appropriate accrediting agencies; 
5.  To develop the criteria for determining 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 situations, or 
hospital and clinical programs affiliated with and administered by   
 
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the University of Oklahoma College of Medicine, University of 
Oklahoma College of Medicine – Tulsa, or Oklahoma State University 
College of 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 i n 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 cooperation with the University of Oklahoma College 
of Medicine, University of Oklahoma College of Medicine - Tulsa, and 
the Oklahoma State University 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, 
benefits and associated training and administration costs provided 
for the physician interns 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 
hospitals, clinical establishments or by affiliation agreement with 
the University of Oklahoma College of Medicine, University of 
Oklahoma College of Medicine – Tulsa, and the Oklahoma State 
University College of Osteopathic Medicine and Surgery by providing 
funds to cover and to supplement the nonreimbursable or additional 
costs incurred in hospitals for training activities or for delivery 
of service in outreach and ambulatory clinical situations which are   
 
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outside but associated with the hospitals and clinical 
establishments participating in the program; 
7.  To review and to approve for inclusion in the programs 
funded the applications for funds submitted by accredited hospitals 
and clinical situations participating in physician training programs 
in cooperation with the U niversity of Oklahoma College of Medicine, 
University of Oklahoma College of Medicine – Tulsa, and the Oklahoma 
State University College of Osteopathic Medicine and Surgery for the 
costs of supplying residents and interns in programs which they 
administer by affiliation agreements 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 State University College of Osteopathic 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 the 
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 State University College of Osteopathic 
Medicine and Surgery for approved hospital physician training 
programs for interns and residents and to recommend to the Governor   
 
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and the Oklahoma Legislature the total funds needed to carry out the 
purpose of this program; 
9.  To employ a director and any staff personnel required to 
administer the funding of approved physician training programs and 
to contract with other state agencies and institutions to conduct 
and to perform specified services, func tions and aspects in 
administering state funds on the specified cost -sharing basis 
determined by the Commission or for developing programs and 
community and institutional participation in these training 
programs; 
10.  To ensure that hospitals or clinical s ituations that can 
qualify in all sections of Oklahoma be utilized, and to take all 
steps necessary to assist such hospitals or clinics in obtaining 
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 operated by the 
University of Oklahoma College of Medicine, University of Oklahoma 
College of Medicine – Tulsa, and the Oklahoma State University 
College of Osteopathic Medicine and Surgery in hospitals and 
clinical situations throughout 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   
 
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training programs that the colleges have established with the 
approved hospitals and clinical situations which programs are 
designed to provide primary health care services to the rural and 
medically underserved parts of the state; 
12.  To conduct and to administer a program of physician and 
health care workforce placement services throughout the State of 
Oklahoma this state.  Placement services shall be made available to 
communities, hospitals, health care facilities, physician and health 
professional training institutions, health professional associations 
and organizations, individual physicians, health professionals, 
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 distribution of physicians and 
health professionals practicing or available for practice 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 assisting communities in matching with, 
contacting and recruiting physicians and health professionals to 
practice in communities in the state.  The Commission shall de velop 
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   
 
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13.  For purposes of the income tax credit authorized pursuant 
to Section 1 of this act and in cooperation with the Oklahoma Tax 
Commission: 
a. to certify preceptorship rotations for allopathic 
medicine, osteopathic medicine, advance d practice 
registered nursing, and physician assistant training 
programs in this state and to register faculty 
preceptors who provide certified training, 
b. to charge administrative expenses to the State Board 
of Medical Licensure and Supervision, the State Board 
of Osteopathic Examiner s, and the Oklahoma Board of 
Nursing pursuant to Sections 2 through 5 of this act, 
and 
c. to promulgate any additional rules necessary for the 
implementation of this act . 
SECTION 7.  This act shall become effective July 1, 2024. 
SECTION 8.  It being immediately 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 and approval.   
 
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Passed the Senate the 11th day of March, 2024. 
 
 
  
 	Presiding Officer of the Senate 
 
 
Passed the House of Representatives the ____ day of __________, 
2024. 
 
 
  
 	Presiding Officer of the House 
 	of Representatives