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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 282 By: Deevers
AS INTRODUCED
An Act relating to federal taxes; creating the Budget
Accountability for State’s Economic Defense (BASED)
Act; providing short title; stating intent; creating
the Taxpayer Protection Escrow Revolving Fund;
providing sources of funds; providing for
disbursement of funds by the State Treasurer;
requiring deposit of interest from investment of
funds in certain revolving fund; requiring all
taxpayers and employers of this state to make payment
to the State Treasurer in lieu or payment to the
federal government; requiring the State Treasurer to
deposit payments in certain revolving fund; requiring
submission of report; prescribing reporting
requirements; prohibiting the federal government from
certain punishment or retaliation; deeming the
withholding of certain funds to be unlawful;
declaring certain federal actions null and void;
requiring the Attorney General to indemnify certain
individuals and entities; requiring the Attorney
General to provide legal defense upon cert ain
request; authorizing the Attorney General to request
certain funds; creating the Taxpayer Defense Fund;
providing sources of funds; providing for expenditure
of funds; providing for noncodification; providing
for codification; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
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This act shall be known and may be cited as the “Budget
Accountability for State ’s Economic Defense (BASED) Act”.
SECTION 2. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows :
A. The Legislature hereby finds:
1. State sovereignty and constitutional duty : The tenth
amendment to the United States Constitution reserves to the states
all powers not delegated to the federal government. Oklahoma has
both the constitutional autho rity and the fiduciary duty to protect
its citizens from economic harm caused by federal fiscal
mismanagement;
2. The failure of Congress to promote the general welfare :
Section 8 of Article I of the United States Constitution grants
Congress the power t o tax to provide for the common defense and
general welfare. However, Congress’s continued failure to enact a
balanced federal budget has resulted in a national debt exceeding
Thirty-six Trillion Dollars ($36,000,000,000,000.00), or more than
One Hundred Thousand Dollars ($100,000.00) per U.S. citizen, which
creates an existential threat to the general welfare. Congress ’s
failure to fulfill its constitutional duty renders its exercise of
taxing power unconstitutional in effect, as funding such
irresponsible deficits, which, if allowed to continue, will
necessarily lead to financial ruin for American citizens, and
clearly undermines, and does not promote, the general welfare. In
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United States v. Butler (1936), the Supreme Court held that
Congress’s taxing power must align with promoting the general
welfare. Funding an unbalanced bu dget violates this principle;
3. Existential threat to national defense : Continuing to run
deficits while the national debt already exceeds Thirty -six Trillion
Dollars ($36,000,000,000,000.00) compromises America ’s ability to
provide for the nation’s common defense by:
a. weakening the nation ’s economic stability and
eventually leading to economic ruin and the inability
to adequately fund the U.S. military, and
b. undermining its capacity to respond to national
emergencies and foreign threats.
The federal government’s fiscal recklessness jeopardizes the
very foundations of national security and economic health;
4. Fiduciary responsibility and the public trust doctrine :
Congress, under Section 8 of Article I of the United States
Constitution, holds a fiduciary duty to tax and spend for the
benefit of the American people. Decades of deficits and ballooning
debt represent a breach of this public trust, imposing undue
financial burdens on the citizens and states. Under the Public
Trust Doctrine, when a fidu ciary fails to act in a way that could be
reasonably characterized as responsible, beneficiaries , or in this
case the states, have the right and obligation to intervene to
ensure proper use of resources. Oklahoma, as a sovereign state,
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must shield its citizens from participation in this irresponsible
and unconstitutional fiscal system;
5. This state’s obligation to protect property rights : Section
2 of Article II of the Oklahom a Constitution states, “All persons
have the inherent right to life, liberty, the pursuit of happiness,
and the enjoyment of the gains of their own industry ”. The
devaluation of citizens ’ labor and property through inflation and
unbalanced federal spendin g undermines this fundamental right.
Oklahoma has an obligation to protect its citizens’ income and
wealth from the economic harm currently being inflicted and the
unimaginable harm to come if the federal deficit continues to grow;
6. Emergency doctrine and state intervention : The current
fiscal crisis, including decades of unbal anced budgets and
unsustainable debt, constitutes an economic and national emergency.
Under the emergency doctrine, states have the authority to take
extraordinary measures to p reserve the welfare of the ir citizens.
In Home Building & Loan Association v. Blaisdell (1934), the Supreme
Court upheld state actions during emergencies to protect the public
welfare. This state asserts that the withholding of federal taxes
until Congress enacts a balanced budget is a temporary and necessary
action to avert econo mic catastrophe caused by willful fiscal
negligence;
7. Temporary, defensive, and constructive action : The Taxpayer
Protection Escrow Fund is a temporary, non -violent assertion of the
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sovereign duty of this state to protect its citizens. It does not
seek to nullify federal law but , instead, establishes conditions for
compliance based on constitutional principles. The action of this
state is:
a. temporary - withholding continue s until Congress
enacts a balanced budget,
b. defensive - shielding the citize ns of this state from
economic harm caused by federal fiscal
irresponsibility, and
c. constructive - encouraging Congress to restore fiscal
discipline and fulfill its constitutio nal duty to
promote the general welfare ; and
8. DOGE proposals are on the table : The Department of
Government Efficiency is in the process of making proposals to
reduce federal spending by Two Trillion Dollars
($2,000,000,000,000.00) which could balance the budget if
implemented by Congress and voters gave lawmakers a clear mandate to
do so.
B. It is the intent of the Legislature to:
1. Withhold the remittance of federal income taxes collected
within this state until the United States Congress passes a balanced
federal budget; and
2. Protect Oklahoma taxpayers, state employees, agencies,
businesses, and entities from retaliation by the federal government
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for this state’s lawful assertion of its constitutional duty to
safeguard citizens.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 37 of Title 62, unless there is
created a duplication in numbering, reads as follows:
A. There is hereby created in the State Treasury a revolving
fund for the Office of the State Treasurer to be designated the
“Taxpayer Protection Escrow Revolving Fund ”. The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies received by the Treasurer from federal income
tax withholdings collected in this state. All monies accruing to
the credit of the fund are hereby appropriated and may be budgeted
and expended by the Treasu rer for the purpose provided for in this
section and Section 4 of this act. Expenditures from th e fund shall
be made upon warrants issued by the State Treasurer against claims
filed as prescribed by law with the Director of the Office of
Management and Enterprise Services for approval and payment.
B. Upon certification of a balanced federal budget a t least
thirty (30) days prior to the beginning of the federal fiscal year,
the State Treasurer shall disburse the funds deposited pursuant to
the provisions of Section 4 of this act to the United State s
Treasury.
C. If no balanced federal budget is certi fied pursuant to
subsection B of this section, the State Treasurer shall, within
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ninety (90) days, return payments made by employers and taxpayers
pursuant to Section 4 of this act. Employers shall pay the
withholdings of each employee to the employee wit hin one (1) week of
receiving the funds.
D. Interest earned from the investme nt of funds deposited in
the Taxpayer Protection Escrow Revolving Fund shall be deposited in
the Taxpayer Defense Fund created pursuant to Section 6 of this act.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 37.1 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. Upon the effective date of this act, all employers in this
state required to withhold federal taxes pursuant to Publication 15
of the Internal Revenue Service using the federal form W -4 of an
employee shall withhold the amount prescribed pursuant to
Publication 15 and form W -4 and make payment of the withholding to
the Office of the State Treasurer. All taxpayers required to submit
estimated tax pursuant to Publication 505 of the Internal Revenue
Service using federal Form 1040 -ES or 1040-SS or any other
withholdings required pursuant to Publication 505 of the Internal
Revenue Service shall calculate the amount of estimated tax or
withholding pursuant to the publication and make payment to the
Office of the State Treasurer.
B. The State Treasurer, upon receipt of funds pursuant to
subsection A of this section, shall dep osit the funds in the
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Taxpayer Protection Escrow Revolving Fund created in Section 3 of
this act.
C. The Office of the State Treasurer shall electronically
submit a quarterly report to the Legislature detailing deposits,
account transfers, interest earned , and the balance of the Taxpayer
Protection Escrow Revolving Fund. The State Auditor and Inspector
shall annually audit the Taxpayer Protection Escrow Revolving Fund.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 37.2 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. The federal government is prohibited from any punitive
action against any citizen, state employee, state agency, political
subdivision, business, or entity within this state for compliance
with the provisions of th is act. Any attempt by the federal
government to withhold federal funds otherwise lawfully allocated to
this state shall be deemed unlawful and unconstitutional.
B. Any federal fines, sanctions, punishment s, or penalties
levied or enforced against any individual or employer for compliance
with the provisions of this act shall be null and void.
C. The Attorney General shall indemnify any citizen, entity,
and agency penalized by the federal government due to compliance
with the provisions of this act. The Attorney General shall, if
requested by a citizen, entity, or government entity of this state,
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provide legal defense against retaliation by the federal government
due to compliance with the provisions of this act.
D. The Attorney General may request from the State Treasurer
funds deposited in the Taxpayer Defense Fund created pursuant to
Section 6 of this act for costs associated with effectuating the
provisions of subsection C of this section.
SECTION 6. NEW LAW A new section of l aw to be codified
in the Oklahoma Statutes as Section 37.3 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created in the S tate Treasury a revolving
fund for the Office of the State Treasurer to be designated the
“Taxpayer Defense Fund ”. The fund shall be a continuing fund, not
subject to fiscal year limitations, and shall consist of all monies
earned as interest from investment of funds in the Taxpayer
Protection Escrow Revolving Fund created pursuant to Section 3 of
this act. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Treasurer for
the purpose provided for i n this section. Expenditures from the
fund shall be made upon warrants issued by the State Treasurer
against claims filed as prescribed by law with the Director of the
Office of Management and Enterprise Services for approval and
payment.
B. The State Treasurer shall expend deposits to this fund on
legal protection and defense for any citizen, entity, or government
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entity of this state from federal retaliation for compliance with
this act.
SECTION 7. 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.
60-1-1461 QD 12/30/2024 11:00:09 PM