Bill Text For HB1247 - Proposed Committee Substitute

 1|                          STATE OF OKLAHOMA                            |
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 2|             1st Session of the 57th Legislature (2019)                |
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 3|COMMITTEE SUBSTITUTE                                                   |
  |FOR ENGROSSED                                                          |
 4|HOUSE BILL NO. 1247                  By: McBride and Fincher of the    |
  |                                                               House   |
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  |                                         and                           |
 6|                                                                       |
  |                                         Pemberton of the Senate       |
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 8|                                                                       |
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 9|                        COMMITTEE SUBSTITUTE                           |
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10|       [ education scholarships - mandating quadrennial                |
  |       submission of financial statement to Oklahoma Tax               |
11|       Commission - requiring annual reporting by                      |
  |       scholarship-granting organization - effective date ]            |
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14|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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15|    SECTION 1.     AMENDATORY     68 O.S. 2011, Section 2357.206, as   |
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16|last amended by Section 1, Chapter 288, O.S.L. 2017 (68 O.S. Supp.     |
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17|2018, Section 2357.206), is amended to read as follows:                |
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18|    Section 2357.206.  A.  This act shall be known and may be cited    |
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19|as the "Oklahoma Equal Opportunity Education Scholarship Act".         |
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20|    B.  1.  Except as provided in subsection F of this section,        |
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21|after August 26, 2011, there shall be allowed a credit for any         |
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22|taxpayer who makes a contribution to an eligible                       |
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23|scholarship-granting organization.  The credit shall be equal to       |
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24|fifty percent (50%) of the total amount of contributions made during   |
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   Req. No. 2135                                                   Page 1
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 1|a taxable year, not to exceed One Thousand Dollars ($1,000.00) for     |
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 2|single individuals, Two Thousand Dollars ($2,000.00) for married       |
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 3|individuals filing jointly, or One Hundred Thousand Dollars            |
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 4|($100,000.00) for any taxpayer which is a legal business entity        |
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 5|including limited and general partnerships, corporations, subchapter   |
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 6|S corporations and limited liability companies; provided, if total     |
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 7|credits claimed pursuant to this paragraph exceed the caps             |
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 8|established pursuant to paragraph 1 of subsection D of this section,   |
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 9|the credit shall be equal to the taxpayer's proportionate share of     |
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10|the cap for the taxable year, as determined pursuant to subsection H   |
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11|of this section.                                                       |
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12|    2.  For any taxpayer who makes a contribution to an eligible       |
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13|scholarship-granting organization and makes a written commitment to    |
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14|contribute the same amount for an additional year, the credit for      |
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15|the first year and the additional year shall be equal to               |
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16|seventy-five percent (75%) of the total amount of the contribution     |
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17|made during a taxable year, not to exceed the amounts established in   |
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18|paragraph 1 of this subsection for the taxable year in which the       |
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19|credit provided in this subsection is claimed.  The taxpayer shall     |
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20|provide evidence of the written commitment to the Oklahoma Tax         |
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21|Commission at the time of filing the refund claim.                     |
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22|    3.  The credits authorized pursuant to the provisions of this      |
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23|subsection shall be allocable to the partners, shareholders, members   |
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24|or other equity owners of a taxpayer that is authorized to be          |
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   Req. No. 2135                                                   Page 2
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 1|treated as a partnership for purposes of federal income tax            |
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 2|reporting for the taxable year for which the tax credits authorized    |
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 3|by this subsection are claimed on the applicable return, together      |
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 4|with required schedules, forms or reports of the partners,             |
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 5|shareholders, members or other equity owners of the taxpayer.  Tax     |
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 6|credits which are allocated to such equity owners shall only be        |
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 7|limited in amount for the income tax return of a natural person or     |
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 8|persons based upon the limitation of the total credit amount to the    |
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 9|entity from which the tax credits have been allocated and shall not    |
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10|be limited to One Thousand Dollars ($1,000.00) for single              |
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11|individuals or limited to Two Thousand Dollars ($2,000.00) for         |
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12|married persons filing a joint return.                                 |
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13|    4.  On or before December 31, 2017, and once every four (4)        |
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14|years thereafter, such scholarship-granting organization and           |
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15|educational improvement granting organization shall submit to the      |
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16|Oklahoma Tax Commission, Governor, President Pro Tempore of the        |
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17|Senate and the Speaker of the House of Representatives, an audited     |
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18|financial statement for the organization along with information        |
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19|detailing the benefits, successes or failures of the program.  The     |
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20|Tax Commission shall publish and make publicly available on its        |
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21|website the financial statement and information submitted pursuant     |
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22|to this paragraph.                                                     |
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23|    C.  1.  Except as provided in subsection F of this section,        |
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24|after August 26, 2011, there shall be allowed a credit for any         |
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   Req. No. 2135                                                   Page 3
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 1|taxpayer who makes a contribution to an eligible educational           |
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 2|improvement grant organization.  The credit shall be equal to fifty    |
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 3|percent (50%) of the total amount of contributions made during a       |
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 4|taxable year, not to exceed One Thousand Dollars ($1,000.00) for       |
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 5|single individuals, Two Thousand Dollars ($2,000.00) for married       |
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 6|individuals filing jointly, or One Hundred Thousand Dollars            |
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 7|($100,000.00) for any taxpayer which is a legal business entity        |
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 8|including limited and general partnerships, corporations, subchapter   |
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 9|S corporations and limited liability companies; provided, if total     |
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10|credits claimed pursuant to this paragraph exceed the cap              |
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11|established pursuant to paragraph 1 2 of subsection D of this          |
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12|section, the credit shall be equal to the taxpayer's proportionate     |
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13|share of the cap for the taxable year, as determined pursuant to       |
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14|subsection H of this section.                                          |
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15|    2.  For any taxpayer who makes a contribution to an eligible       |
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16|educational improvement grant organization and makes a written         |
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17|commitment to contribute the same amount for an additional year, the   |
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18|credit for the first year and the additional year shall be equal to    |
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19|seventy-five percent (75%) of the total amount of the contribution     |
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20|made during a taxable year, not to exceed the amounts established in   |
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21|paragraph 1 of this subsection for the taxable year in which the       |
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22|credit provided in this subsection is claimed; provided, if total      |
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23|credits claimed pursuant to this paragraph exceed the cap              |
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24|established pursuant to paragraph 3 of this subsection, the credit     |
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   Req. No. 2135                                                   Page 4
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 1|shall be equal to the taxpayer's proportionate share of the cap for    |
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 2|the taxable year, as determined pursuant to subsection H of this       |
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 3|section.  The taxpayer shall provide evidence of the written           |
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 4|commitment to the Oklahoma Tax Commission at the time of filing the    |
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 5|refund claim.                                                          |
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 6|    3.  The credits authorized pursuant to the provisions of this      |
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 7|subsection shall be allocable to the partners, shareholders, members   |
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 8|or other equity owners of a taxpayer that is authorized to be          |
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 9|treated as a partnership for purposes of federal income tax            |
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10|reporting for the taxable year for which the tax credits authorized    |
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11|by this subsection are claimed on the applicable return, together      |
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12|with required schedules, forms or reports of the partners,             |
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13|shareholders, members or other equity owners of the taxpayer.  Tax     |
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14|credits which are allocated to such equity owners shall only be        |
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15|limited in amount for the income tax return of a natural person or     |
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16|persons based upon the limitation of the total credit amount to the    |
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17|entity from which the tax credits have been allocated and shall not    |
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18|be limited to One Thousand Dollars ($1,000.00) for single              |
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19|individuals or limited to Two Thousand Dollars ($2,000.00) for         |
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20|married persons filing a joint return.                                 |
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21|    D.  Except as otherwise provided pursuant to subsection H of       |
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22|this section, for tax years 2017 and thereafter:                       |
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   Req. No. 2135                                                   Page 5
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 1|    1.  The total credits authorized pursuant to subsection B of       |
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 2|this section for all taxpayers shall not exceed Three Million Five     |
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 3|Hundred Thousand Dollars ($3,500,000.00) annually;                     |
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 4|    2.  The total credits authorized pursuant to subsection C of       |
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 5|this section for all taxpayers shall not exceed One Million Five       |
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 6|Hundred Thousand Dollars ($1,500,000.00) annually; and                 |
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 7|    3.  The cap on total credits provided for in this subsection       |
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 8|shall be allocated by the Tax Commission as provided in subsection H   |
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 9|of this section.                                                       |
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10|    E.  For credits claimed for eligible contributions made during     |
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11|tax year 2014 and thereafter, a credit shall not be allowed by the     |
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12|Oklahoma Tax Commission for contributions made to a                    |
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13|scholarship-granting organization or an educational improvement        |
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14|grant organization if that organization's percentage of funds          |
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15|actually awarded is less than ninety percent (90%).  For purposes of   |
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16|this section, the "percentage of funds actually awarded" shall be      |
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17|determined by dividing the total amount of funds actually awarded as   |
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18|educational scholarships or educational improvement grants over the    |
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19|most recent twenty-four (24) months by the total amount available to   |
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20|award as educational scholarships or educational improvement grants    |
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21|over the most recent twenty-four (24) months.                          |
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22|    F.  Any tax credits which are earned by a taxpayer pursuant to     |
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23|this section during the time period beginning on the effective date    |
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24|of this act through December 31, 2012, may not be claimed for any      |
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   Req. No. 2135                                                   Page 6
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 1|period prior to the taxable year beginning January 1, 2013.  No        |
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 2|credits which accrue during the time period beginning on the           |
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 3|effective date of this act through December 31, 2012, may be used to   |
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 4|file an amended tax return for any taxable year prior to the taxable   |
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 5|year beginning January 1, 2013.                                        |
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 6|    G.  As used in this section:                                       |
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 7|    1.  "Eligible student" means a child of school age who is          |
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 8|lawfully present in the United States and who is a member of a         |
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 9|household in which the total annual income during the preceding tax    |
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10|year does not exceed an amount equal to three hundred percent (300%)   |
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11|of the income standard used to qualify for a free or reduced           |
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12|reduced-price school lunch or who, during the immediately preceding    |
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13|school year, attended or, by virtue of the location of such            |
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14|student's place of residence, was eligible to attend a public school   |
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15|in this state which has been identified for school improvement as      |
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16|determined by the State Board of Education pursuant to the             |
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17|requirements of the No Child Left Behind Act of 2001, P.L. No.         |
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18|107-110.  Once a student has received an educational scholarship, as   |
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19|defined in paragraph 3 of this subsection, the student and any         |
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20|siblings who are members of the same household shall remain eligible   |
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21|until they graduate from high school or reach twenty-one (21) years    |
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22|of age, whichever occurs first;                                        |
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23|    2.  "Eligible special needs student" means a child who has been    |
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24|provided services under an Individual Family Service Plan through      |
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   Req. No. 2135                                                   Page 7
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 1|the SoonerStart program and during transition was evaluated and        |
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 2|determined to be eligible for school district services, a child of     |
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 3|school age who has attended public school in our state with an         |
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 4|individualized education program pursuant to the Individuals With      |
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 5|Disabilities Education Act, 20 U.S.C.A., Section 1400 et seq. or a     |
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 6|child who has been diagnosed by a clinical professional as having a    |
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 7|significant disability that will affect learning and who has been      |
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 8|approved by the board of a scholarship-granting organization;          |
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 9|    3.  "Educational scholarships" means:                              |
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10|         a.   scholarships to an eligible student of up to Five        |
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11|              Thousand Dollars ($5,000.00) or eighty percent (80%)     |
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12|              of the statewide annual average per-pupil expenditure    |
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13|              as determined by the National Center for Education       |
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14|              Statistics, U.S. Department of Education, whichever is   |
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15|              greater, to cover all or part of the tuition, fees and   |
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16|              transportation costs of a qualified school which is      |
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17|              accredited by the State Board of Education or an         |
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18|              accrediting association approved by the Board pursuant   |
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19|              to Section 3-104 of Title 70 of the Oklahoma Statutes,   |
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20|         b.   scholarships to an eligible student of up to Five        |
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21|              Thousand Dollars ($5,000.00) or eighty percent (80%)     |
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22|              of the statewide annual average per-pupil expenditure    |
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23|              as determined by the National Center for Education       |
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24|              Statistics, U.S. Department of Education, whichever is   |
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   Req. No. 2135                                                   Page 8
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 1|              greater, to cover the educational costs of a qualified   |
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 2|              school which does not charge tuition, which enrolls      |
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 3|              special populations of students and which is             |
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 4|              accredited by the State Board of Education or an         |
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 5|              accrediting association approved by the Board pursuant   |
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 6|              to Section 3-104 of Title 70 of the Oklahoma Statutes,   |
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 7|              or                                                       |
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 8|         c.   scholarships to an eligible special needs student of     |
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 9|              up to Twenty-five Thousand Dollars ($25,000.00) to       |
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10|              cover all or part of the tuition, fees and               |
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11|              transportation costs of a qualified school for           |
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12|              eligible special needs students which is accredited by   |
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13|              the State Board of Education or an accrediting           |
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14|              association approved by the Board pursuant to Section    |
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15|              3-104 of Title 70 of the Oklahoma Statutes;              |
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16|    4.  "Low-income eligible student" means an eligible student or     |
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17|eligible special needs student who qualifies for a free or             |
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18|reduced-price lunch lives in a household which has an income of less   |
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19|than one hundred eighty-five percent (185%) of the federal poverty     |
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20|level;                                                                 |
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21|    5.  "Qualified school" means an early childhood, elementary or     |
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22|secondary private school in this state, including schools which        |
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23|provide special educational programs for three-year-olds or            |
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24|prekindergarten educational programs for four-year-olds, which:        |
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   Req. No. 2135                                                   Page 9
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 1|         a.   is accredited by the State Board of Education or an      |
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 2|              accrediting association approved by the Board pursuant   |
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 3|              to Section 3-104 of Title 70 of the Oklahoma Statutes,   |
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 4|         b.   is in compliance with all applicable health and safety   |
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 5|              laws and codes,                                          |
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 6|         c.   has a stated policy against discrimination in            |
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 7|              admissions on the basis of race, color, national         |
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 8|              origin or disability, and                                |
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 9|         d.   ensures academic accountability to parents and           |
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10|              guardians of students through regular progress           |
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11|              reports;                                                 |
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12|    6.  "Qualified school for eligible special needs students" means   |
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13|an early childhood, elementary or secondary private school in a        |
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14|county in this state, including schools which provide special          |
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15|educational programs for three-year-olds or prekindergarten            |
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16|educational programs for four-year-olds;                               |
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17|    7.  "Scholarship-granting organization" means an organization      |
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18|which:                                                                 |
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19|         a.   is a nonprofit entity exempt from taxation pursuant to   |
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20|              the provisions of the Internal Revenue Code, 26          |
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21|              U.S.C., Section 501(c)(3),                               |
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22|         b.   distributes periodic scholarship payments as checks      |
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23|              made out to an eligible student's or eligible special    |
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24|                                                                       |
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   Req. No. 2135                                                   Page 10
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 1|              needs student's parent or guardian and mailed to the     |
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 2|              qualified school where the student is enrolled,          |
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 3|         c.   spends no more than ten percent (10%) of its annual      |
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 4|              revenue on expenditures other than educational           |
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 5|              scholarships as defined in paragraph 3 of this           |
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 6|              subsection,                                              |
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 7|         d.   spends each year a portion of its expenditures on        |
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 8|              educational scholarships for low-income eligible         |
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 9|              students, as defined in paragraph 4 of this              |
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10|              subsection, in an amount equal to or greater than the    |
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11|              percentage of low-income eligible students in the        |
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12|              state,                                                   |
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13|         e.   ensures that scholarships are portable during the        |
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14|              school year and can be used at any qualified school      |
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15|              that accepts the eligible student or at any qualified    |
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16|              school for special needs students that accepts the       |
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17|              eligible special needs student,                          |
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18|         f.   registers with the Oklahoma Tax Commission as a          |
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19|              scholarship-granting organization, and                   |
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20|         g.   has policies in place to:                                |
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21|              (1)  carry out criminal background checks on all         |
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22|                   employees and board members to ensure that no       |
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23|                   individual is involved with the organization who    |
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24|                                                                       |
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   Req. No. 2135                                                   Page 11
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 1|                   might reasonably pose a risk to the appropriate     |
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 2|                   use of contributed funds, and                       |
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 3|              (2)  maintain full and accurate records with respect     |
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 4|                   to the receipt of contributions and expenditures    |
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 5|                   of those contributions and supply such records      |
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 6|                   and any other documentation required by the Tax     |
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 7|                   Commission to demonstrate financial                 |
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 8|                   accountability;                                     |
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 9|    8.  "Annual revenue" means the total amount or value of            |
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10|contributions received by an organization from taxpayers awarded       |
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11|credits during the organization's fiscal year and all amounts earned   |
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12|from interest or investments;                                          |
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13|    9.  "Public school" means public schools as defined in Section     |
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14|1-106 of Title 70 of the Oklahoma Statutes;                            |
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15|    10.  "Eligible school" means any public school that is not         |
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16|located within a ten-mile radius of a qualified school in this         |
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17|state, or any public school that is located within a ten-mile radius   |
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18|of a qualified school in this state but offers grade-level             |
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19|instruction different from the qualified school or any public school   |
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20|located within a public school district with fewer than four           |
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21|thousand five hundred (4,500) students;                                |
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22|    11.  "Early childhood education program" means a special           |
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23|educational program for eligible special needs students who are        |
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24|three (3) years of age or a prekindergarten educational program        |
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   Req. No. 2135                                                   Page 12
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 1|provided to children who are at least four (4) years of age but not    |
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 2|more than five (5) years of age on or before September 1;              |
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 3|    12.  "Innovative educational program" means an advanced academic   |
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 4|or academic improvement program that is not part of the regular        |
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 5|coursework of a public school but that enhances the curriculum or      |
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 6|academic program of the school or provides early childhood education   |
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 7|programs to students;                                                  |
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 8|    13.  "Educational improvement grant" means a grant to an           |
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 9|eligible public school to implement an innovative educational          |
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10|program for students, including the ability for multiple public        |
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11|schools to make an application and be awarded a grant to jointly       |
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12|provide an innovative educational program; and                         |
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13|    14.  "Educational improvement grant organization" means an         |
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14|organization which:                                                    |
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15|         a.   is a nonprofit entity exempt from taxation pursuant to   |
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16|              the provisions of the Internal Revenue Code, 26          |
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17|              U.S.C., Section 501(c)(3), and                           |
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18|         b.   contributes at least ninety percent (90%) of its         |
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19|              annual receipts as grants to eligible schools for        |
  |                                                                       |
20|              innovative educational programs.  For purposes of this   |
  |                                                                       |
21|              subparagraph, an educational improvement grant           |
  |                                                                       |
22|              organization contributes its annual cash receipts when   |
  |                                                                       |
23|              it expends or otherwise irrevocably encumbers those      |
  |                                                                       |
24|              funds for expenditure during the then current fiscal     |
  |                                                                       |
   Req. No. 2135                                                   Page 13
___________________________________________________________________________

 1|              year of the organization or during the next succeeding   |
  |                                                                       |
 2|              fiscal year of the organization.                         |
  |                                                                       |
 3|    H.  Total credits authorized by this section shall be allocated    |
  |                                                                       |
 4|as follows:                                                            |
  |                                                                       |
 5|    1.  By January 10 of the year immediately following each           |
  |                                                                       |
 6|calendar year, a scholarship-granting organization or an educational   |
  |                                                                       |
 7|improvement grant organization which accepts contributions pursuant    |
  |                                                                       |
 8|to this section shall provide electronically to the Tax Commission     |
  |                                                                       |
 9|information on each contribution accepted during such taxable year.    |
  |                                                                       |
10|At least once each taxable year, the scholarship-granting              |
  |                                                                       |
11|organization or the educational improvement grant organization shall   |
  |                                                                       |
12|notify each contributor that Oklahoma law provides for a total,        |
  |                                                                       |
13|statewide cap on the amount of income tax credits allowed annually;    |
  |                                                                       |
14|    2.   a.    If the Tax Commission determines the total combined     |
  |                                                                       |
15|              credits claimed for contributions made to                |
  |                                                                       |
16|              scholarship-granting organizations during the most       |
  |                                                                       |
17|              recently completed calendar year by all taxpayers are    |
  |                                                                       |
18|              in excess of the statewide caps provided in paragraph    |
  |                                                                       |
19|              1 of subsection D of this section, the Tax Commission    |
  |                                                                       |
20|              shall first allocate any amount of credits not claimed   |
  |                                                                       |
21|              for contributions made to educational                    |
  |                                                                       |
22|              improvement-granting organizations, then shall           |
  |                                                                       |
23|              determine the percentage of the contribution which       |
  |                                                                       |
24|              establishes the proportionate share of the credit        |
  |                                                                       |
   Req. No. 2135                                                   Page 14
___________________________________________________________________________

 1|              which may be claimed by any taxpayer so that the total   |
  |                                                                       |
 2|              maximum credits authorized by this section are not       |
  |                                                                       |
 3|              exceeded.                                                |
  |                                                                       |
 4|         b.    If the Tax Commission determines the total combined     |
  |                                                                       |
 5|              credits claimed for contributions made to educational    |
  |                                                                       |
 6|              improvement grant organizations during the most          |
  |                                                                       |
 7|              recently completed calendar year by all taxpayers are    |
  |                                                                       |
 8|              in excess of the statewide caps provided in paragraph    |
  |                                                                       |
 9|              2 of subsection D of this section, the Tax Commission    |
  |                                                                       |
10|              shall first allocate any amount of credits not claimed   |
  |                                                                       |
11|              for contributions made to scholarship-granting           |
  |                                                                       |
12|              organizations, then shall determine the percentage of    |
  |                                                                       |
13|              the contribution which establishes the proportionate     |
  |                                                                       |
14|              share of the credit which may be claimed by any          |
  |                                                                       |
15|              taxpayer so that the maximum credits authorized by       |
  |                                                                       |
16|              this section are not exceeded.                           |
  |                                                                       |
17|         c.    Beginning for tax year 2016, credits earned, but not    |
  |                                                                       |
18|              allowed due to the application of statewide caps         |
  |                                                                       |
19|              provided in subsection D of this section will be         |
  |                                                                       |
20|              considered suspended and authorized to be used in the    |
  |                                                                       |
21|              next immediate tax year and applied to the next year's   |
  |                                                                       |
22|              statewide cap; and                                       |
  |                                                                       |
23|    3.  The Tax Commission shall publish the percentage of the         |
  |                                                                       |
24|contribution which may be claimed as a credit by contributors for      |
  |                                                                       |
   Req. No. 2135                                                   Page 15
___________________________________________________________________________

 1|the most recently completed calendar year on the Tax Commission        |
  |                                                                       |
 2|website no later than February 15 of each calendar year for            |
  |                                                                       |
 3|contributions made the previous year.  Each scholarship-granting       |
  |                                                                       |
 4|organization or educational improvement grant organization shall       |
  |                                                                       |
 5|notify contributors of that amount annually.                           |
  |                                                                       |
 6|    I.  The credit authorized by this section shall not be used to     |
  |                                                                       |
 7|reduce the tax liability of the taxpayer to less than zero (0).        |
  |                                                                       |
 8|    J.  Any credits allowed but not used in any tax year may be        |
  |                                                                       |
 9|carried over, in order, to each of the three (3) years following the   |
  |                                                                       |
10|year of qualification.                                                 |
  |                                                                       |
11|    K.  1.  In order to qualify under this section, an educational     |
  |                                                                       |
12|improvement grant organization shall submit an application with        |
  |                                                                       |
13|information to the Oklahoma Tax Commission on a form prescribed by     |
  |                                                                       |
14|the Tax Commission that:                                               |
  |                                                                       |
15|         a.   enables the Tax Commission to confirm that the           |
  |                                                                       |
16|              organization is a nonprofit entity exempt from           |
  |                                                                       |
17|              taxation pursuant to the provisions of the Internal      |
  |                                                                       |
18|              Revenue Code, 26 U.S.C., Section 501(c)(3), and          |
  |                                                                       |
19|         b.   describes the proposed innovative educational program    |
  |                                                                       |
20|              or programs supported by the organization.               |
  |                                                                       |
21|    2.  The Tax Commission shall review and approve or disapprove      |
  |                                                                       |
22|the application, in consultation with the State Department of          |
  |                                                                       |
23|Education.                                                             |
  |                                                                       |
24|                                                                       |
  |                                                                       |
   Req. No. 2135                                                   Page 16
___________________________________________________________________________

 1|    3.  In order to maintain eligibility under this section, an        |
  |                                                                       |
 2|educational improvement grant organization shall annually report the   |
  |                                                                       |
 3|following information to the Tax Commission by September 1 of each     |
  |                                                                       |
 4|year:                                                                  |
  |                                                                       |
 5|         a.   the name of the innovative educational program or        |
  |                                                                       |
 6|              programs and the total amount of the grant or grants     |
  |                                                                       |
 7|              made to those programs during the immediately            |
  |                                                                       |
 8|              preceding school year,                                   |
  |                                                                       |
 9|         b.   a description of how each grant was utilized during      |
  |                                                                       |
10|              the immediately preceding school year and a              |
  |                                                                       |
11|              description of any demonstrated or expected innovative   |
  |                                                                       |
12|              educational improvements,                                |
  |                                                                       |
13|         c.   the names of the public school schools and school        |
  |                                                                       |
14|              districts where innovative educational programs that     |
  |                                                                       |
15|              received grants during the immediately preceding         |
  |                                                                       |
16|              school year were implemented,                            |
  |                                                                       |
17|         d.   where the organization collects information on a         |
  |                                                                       |
18|              county-by-county basis, and                              |
  |                                                                       |
19|         e.   the total number and total amount of grants made         |
  |                                                                       |
20|              during the immediately preceding school year for         |
  |                                                                       |
21|              innovative educational programs at public school         |
  |                                                                       |
22|              schools by each county in which the organization made    |
  |                                                                       |
23|              grants.                                                  |
  |                                                                       |
24|                                                                       |
  |                                                                       |
   Req. No. 2135                                                   Page 17
___________________________________________________________________________

 1|    4.  The information required under paragraph 3 of this             |
  |                                                                       |
 2|subsection shall be submitted on a form provided by the Tax            |
  |                                                                       |
 3|Commission.  No later than May 1 of each year, the Tax Commission      |
  |                                                                       |
 4|shall annually distribute sample forms together with the forms on      |
  |                                                                       |
 5|which the reports are required to be made to each approved             |
  |                                                                       |
 6|organization.                                                          |
  |                                                                       |
 7|    5.  The Tax Commission shall not require any other information     |
  |                                                                       |
 8|be provided by an organization, except as expressly authorized in      |
  |                                                                       |
 9|this section.                                                          |
  |                                                                       |
10|    L.  1.  In order to maintain registration, a                       |
  |                                                                       |
11|scholarship-granting organization shall annually report to the Tax     |
  |                                                                       |
12|Commission by September 1 of each year the following information       |
  |                                                                       |
13|regarding the educational scholarships funded by the organization in   |
  |                                                                       |
14|the previous academic year:                                            |
  |                                                                       |
15|         a.    the name and address of the scholarship-granting        |
  |                                                                       |
16|              organization,                                            |
  |                                                                       |
17|         b.    the names of the qualifying schools that received       |
  |                                                                       |
18|              funding for educational scholarships, the total amount   |
  |                                                                       |
19|              of funds paid to each qualifying school and the total    |
  |                                                                       |
20|              number of scholarship recipients enrolled in each        |
  |                                                                       |
21|              qualifying school,                                       |
  |                                                                       |
22|         c.    the total number and total dollar amount of             |
  |                                                                       |
23|              contributions received during the previous academic      |
  |                                                                       |
24|              year,                                                    |
  |                                                                       |
   Req. No. 2135                                                   Page 18
___________________________________________________________________________

 1|         d.    the total number and total dollar amount of             |
  |                                                                       |
 2|              educational scholarships awarded and funded during the   |
  |                                                                       |
 3|              previous academic year,                                  |
  |                                                                       |
 4|         e.    the total number, total dollar amount and percentage    |
  |                                                                       |
 5|              of educational scholarships awarded and funded during    |
  |                                                                       |
 6|              the previous academic year disaggregated into the        |
  |                                                                       |
 7|              following categories:                                    |
  |                                                                       |
 8|              (1)   students who qualify for the federal free and      |
  |                                                                       |
 9|                   reduced-price lunch program,                        |
  |                                                                       |
10|              (2)   students who during the immediately preceding      |
  |                                                                       |
11|                   school year attended or who were eligible by        |
  |                                                                       |
12|                   virtue of the residence of the student to attend    |
  |                                                                       |
13|                   a public school in the state which was identified   |
  |                                                                       |
14|                   for school improvement by the State Board of        |
  |                                                                       |
15|                   Education,                                          |
  |                                                                       |
16|              (3)   eligible special needs students, and               |
  |                                                                       |
17|              (4)   students who were first-time recipients of a       |
  |                                                                       |
18|                   scholarship, including information about the type   |
  |                                                                       |
19|                   of public or private school the student was         |
  |                                                                       |
20|                   enrolled in during the entire previous academic     |
  |                                                                       |
21|                   year,                                               |
  |                                                                       |
22|         f.    the percentage of the total amount of education         |
  |                                                                       |
23|              scholarship expenditures spent on low-income eligible    |
  |                                                                       |
24|              students, and                                            |
  |                                                                       |
   Req. No. 2135                                                   Page 19
___________________________________________________________________________

 1|         g.    the percentage of annual revenue received by the        |
  |                                                                       |
 2|              organization which was not expended on scholarships.     |
  |                                                                       |
 3|    2.  The Tax Commission shall publish and make available on its     |
  |                                                                       |
 4|website:                                                               |
  |                                                                       |
 5|         a.    the information submitted by the scholarship-granting   |
  |                                                                       |
 6|              organization pursuant to paragraph 1 of this             |
  |                                                                       |
 7|              subsection, and                                          |
  |                                                                       |
 8|         b.    a list of participating schools.                        |
  |                                                                       |
 9|    3.  A scholarship-granting organization shall annually submit      |
  |                                                                       |
10|verification to the Tax Commission that the organization still meets   |
  |                                                                       |
11|the criteria set forth in paragraph 7 of subsection G of this          |
  |                                                                       |
12|section.                                                               |
  |                                                                       |
13|    M.  In consultation with the State Department of Education, the    |
  |                                                                       |
14|Tax Commission shall promulgate rules necessary to implement this      |
  |                                                                       |
15|act.  The rules shall include procedures for the registration of a     |
  |                                                                       |
16|scholarship-granting organization or an educational improvement        |
  |                                                                       |
17|grant organization for purposes of determining if the organization     |
  |                                                                       |
18|meets the requirements of this act or for the revocation of the        |
  |                                                                       |
19|registration of an organization, if applicable, and for notice as      |
  |                                                                       |
20|required in subsection H of this section.                              |
  |                                                                       |
21|    SECTION 2.  This act shall become effective November 1, 2019.      |
  |                                                                       |
22|                                                                       |
  |                                                                       |
23|    57-1-2135      EB        3/28/2019 1:23:27 PM                      |
  |                                                                       |
24|                                                                       |
  |                                                                       |
   Req. No. 2135                                                   Page 20
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