1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1504 By: Thompson (Kristen)
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6 AS INTRODUCED
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7 An Act relating to medical preceptorship training;
7 defining terms; providing income tax credit for
8 certain individuals who conduct a preceptorship
8 rotation; providing amount of and basis for credit;
9 providing limitations on credits allowed; prohibiting
9 refundability of credit; authorizing the carry
10 forward of credit; directing the State Board of
10 Medical Licensure and Supervision and State Board of
11 Osteopathic Examiners to award credit; limiting the
11 amount of credit awarded to balance of certain
12 revolving funds; authorizing allocation of partial
12 credit; authorizing credits not allowed to be claimed
13 in subsequent year; specifying eligibility for
13 credit; directing the State Board of Medical
14 Licensure and Supervision and State Board of
14 Osteopathic Examiners to deposit certain fees in
15 revolving fund for certain purpose; requiring
15 submission of information; authorizing promulgation
16 of rules; creating the Physician Preceptor Tax Credit
16 Revolving Fund, the Physician Assistant Preceptor Tax
17 Credit Revolving Fund, and the Osteopathic Physician
17 Preceptor Tax Credit Revolving Fund; specifying
18 sources of funds; requiring accrued funds to be
18 deposited in the General Revenue Fund; stating
19 purpose; providing for codification; and providing an
19 effective date.
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22 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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 1 SECTION 1. NEW LAW A new section of law to be codified
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2 in the Oklahoma Statutes as Section 2357.409 of Title 68, unless
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3 there is created a duplication in numbering, reads as follows:
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4 A. As used in this section:
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5 1. “Faculty preceptor” means an allopathic physician,
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6 osteopathic physician, or physician assistant licensed in this
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7 state;
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8 2. “Medical school” means a legally chartered medical school
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9 recognized by the Oklahoma State Regents for Higher Education;
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10 3. “Medical student” means a student currently enrolled in a
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11 medical school in this state or a school or college of osteopathic
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12 medicine in this state;
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13 4. “Physician assistant student” means an individual
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14 participating in a state-supported training program in this state
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15 that is approved by the State Board of Medical Licensure and
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16 Supervision for the training of individuals to become physician
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17 assistants as defined in Section 519.2 of Title 59 of the Oklahoma
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18 Statutes;
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19 5. “Preceptorship rotation” means a period of preceptorship
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20 training of one or more medical students, residents, or physician
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21 assistant students that in aggregate totals one hundred sixty (160)
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22 hours;
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 1 6. “Preceptorship training” means uncompensated training of a
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2 medical student, resident, or physician assistant student enrolled
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3 in a training program in this state;
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4 7. “Resident” means an allopathic physician or osteopathic
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5 physician pursuing post-graduate medical education at a program
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6 supported by a medical school or a school or college of osteopathic
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7 medicine in this state; and
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8 8. “School or college of osteopathic medicine” shall have the
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9 same meaning as provided by Section 631 of Title 59 of the Oklahoma
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10 Statutes.
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11 B. 1. For tax years 2025 through 2034, there shall be allowed
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12 a credit against the tax imposed pursuant to Section 2355 of Title
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13 68 of the Oklahoma Statutes for a faculty preceptor who conducts a
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14 preceptorship rotation.
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15 2. Except as provided for by subsection F of this section,
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16 credit shall be allowed for no greater than ten (10) preceptorship
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17 rotations completed in a calendar year, and shall be equal to the
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18 following amounts:
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19 a. for a medical student or resident, Five Hundred
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20 Dollars ($500.00) each for the first, second, or third
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21 preceptorship rotations and One Thousand Dollars
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22 ($1,000.00) each for up to seven (7) subsequent
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23 rotations, and
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 1 b. for a physician assistant student, Three Hundred
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2 Seventy-five Dollars ($375.00) each for the first,
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3 second, or third preceptorship rotations and Seven
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4 Hundred Fifty Dollars ($750.00) each for up to seven
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5 (7) subsequent rotations.
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6 C. The credit authorized by this section shall not be used to
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7 reduce the tax liability of the taxpayer to less than zero (0).
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8 D. To the extent not used, the credits authorized by this
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9 section may be carried over, in order, to each of the five (5)
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10 subsequent tax years.
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11 E. 1. The State Board of Medical Licensure and Supervision
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12 shall award the credit authorized by subsection B of this section to
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13 faculty preceptors for preceptorship rotations of:
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14 a. medical students enrolled in a medical school in this
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15 state,
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16 b. residents who are allopathic physicians pursuing post-
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17 graduate medical education at a program supported by a
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18 medical school in this state, and
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19 c. physician assistant students.
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20 2. The State Board of Osteopathic Examiners shall award the
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21 credit authorized by subsection B of this section to faculty
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22 preceptors for preceptorship rotations of:
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23 a. medical students enrolled in a school or college of
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24 osteopathic medicine in this state, and
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 1 b. residents who are osteopathic physicians pursuing
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2 post-graduate medical education at a program supported
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3 by a school or college of osteopathic medicine in this
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4 state.
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5 F. 1. The credit awarded by the State Board of Medical
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6 Licensure and Supervision under subparagraphs a and b of paragraph 1
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7 of subsection E of this section for the tax year shall not exceed
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8 the amount deposited in the preceding fiscal year to the Physician
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9 Preceptor Tax Credit Revolving Fund created in Section 2 of this
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10 act.
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11 2. The credit awarded by the State Board of Medical Licensure
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12 and Supervision under subparagraph c of paragraph 1 of subsection E
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13 of this section for the tax year shall not exceed the amount
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14 deposited in the preceding fiscal year to the Physician Assistant
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15 Preceptor Tax Credit Revolving Fund created in Section 3 of this
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16 act.
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17 3. The credit awarded by the State Board of Osteopathic
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18 Examiners under paragraph 2 of subsection E of this section for the
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19 tax year shall not exceed the amount deposited in the preceding
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20 fiscal year to the Osteopathic Physician Preceptor Tax Credit
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21 Revolving Fund created in Section 4 of this act.
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22 G. Partial claims for credit may be awarded. Credits earned
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23 but not allowed due to the application of the limitation provided in
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24 this section shall be considered suspended and authorized to be used
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 1 in the subsequent tax year and applied to the next tax year’s
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2 limitation.
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3 H. In order to receive the credit provided pursuant to this
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4 section, a faculty preceptor shall:
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5 1. Claim the credit for the tax year in which the preceptorship
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6 rotation was completed;
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7 2. Certify that he or she did not receive payment during the
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8 tax year from any source for providing the training; and
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9 3. Supply supporting documentation as may be required by the
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10 State Board of Medical Licensure and Supervision or the State Board
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11 of Osteopathic Examiners.
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12 I. 1. The State Board of Medical Licensure and Supervision
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13 shall reserve Five Dollars ($5.00) of every annual licensure fee
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14 received from allopathic physicians and shall deposit the sum to the
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15 Physician Preceptor Tax Credit Revolving Fund created in Section 2
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16 of this act for the purpose of providing funding for the credit
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17 authorized by this section.
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18 2. The State Board of Medical Licensure and Supervision shall
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19 reserve Two Dollars ($2.00) of every annual licensure fee received
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20 from physician assistants and shall deposit the sum to the Physician
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21 Assistant Preceptor Tax Credit Revolving Fund created in Section 3
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22 of this act for the purpose of providing funding for the credit
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23 authorized by this section.
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 1 3. The State Board of Osteopathic Examiners shall reserve Five
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2 Dollars ($5.00) of every annual licensure fee received from
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3 osteopathic physicians and shall deposit the sum to the Osteopathic
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4 Physician Preceptor Tax Credit Revolving Fund created in Section 4
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5 of this act for the purpose of providing funding for the credit
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6 authorized by this section.
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7 J. Each tax year, the State Board of Medical Licensure and
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8 Supervision and the State Board of Osteopathic Examiners shall
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9 electronically submit information to the Oklahoma Tax Commission,
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10 which shall include:
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11 1. The number and amount of tax credits awarded;
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12 2. The name of the taxpayers that were awarded credit; and
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13 3. The amount deposited in the Physician Preceptor Tax Credit
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14 Revolving Fund, created in Section 2 of this act, the Physician
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15 Assistant Preceptor Tax Credit Revolving Fund, created in Section 3
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16 of this act, and the Osteopathic Physician Preceptor Tax Credit
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17 Revolving Fund, created in Section 4 of this act.
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18 K. The Oklahoma Tax Commission, the State Board of Medical
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19 Licensure and Supervision, and the State Board of Osteopathic
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20 Examiners may promulgate rules to effectuate the provisions of this
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21 act.
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22 SECTION 2. NEW LAW A new section of law to be codified
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23 in the Oklahoma Statutes as Section 495i of Title 59, unless there
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24 is created a duplication in numbering, reads as follows:
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 1 There is hereby created in the State Treasury a revolving fund
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2 for the State Board of Medical Licensure and Supervision to be
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3 designated the “Physician Preceptor Tax Credit Revolving Fund”. The
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4 fund shall be a continuing fund, not subject to fiscal year
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5 limitations, and shall consist of the monies received by the Board
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6 from a portion of licensure fees received from allopathic physicians
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7 under subsection I of Section 1 of this act. All monies accruing to
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8 the credit of the fund are hereby appropriated and the entire
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9 balance of the fund shall be deposited to the General Revenue Fund
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10 at the end of each fiscal year. The deposits to the General Revenue
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11 Fund shall be for the purpose of mitigating the impact of awarding
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12 the tax credit authorized under Section 1 of this act to allopathic
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13 physicians.
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14 SECTION 3. NEW LAW A new section of law to be codified
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15 in the Oklahoma Statutes as Section 519.8a of Title 59, unless there
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16 is created a duplication in numbering, reads as follows:
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17 There is hereby created in the State Treasury a revolving fund
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18 for the State Board of Medical Licensure and Supervision to be
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19 designated the “Physician Assistant Preceptor Tax Credit Revolving
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20 Fund”. The fund shall be a continuing fund, not subject to fiscal
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21 year limitations, and shall consist of the monies received by the
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22 Board from a portion of licensure fees received from physician
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23 assistants under subsection I of Section 1 of this act. All monies
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24 accruing to the credit of the fund are hereby appropriated and the
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 1 entire balance of the fund shall be deposited to the General Revenue
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2 Fund at the end of each fiscal year. The deposits to the General
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3 Revenue Fund shall be for the purpose of mitigating the impact of
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4 awarding the tax credit authorized under Section 1 of this act to
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5 physician assistants.
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6 SECTION 4. NEW LAW A new section of law to be codified
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7 in the Oklahoma Statutes as Section 645.1 of Title 59, unless there
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8 is created a duplication in numbering, reads as follows:
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9 There is hereby created in the State Treasury a revolving fund
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10 for the State Board of Osteopathic Examiners to be designated the
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11 “Osteopathic Physician Preceptor Tax Credit Revolving Fund”. The
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12 fund shall be a continuing fund, not subject to fiscal year
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13 limitations, and shall consist of the monies received by the Board
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14 from a portion of licensure fees received from osteopathic
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15 physicians under subsection I of Section 1 of this act. All monies
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16 accruing to the credit of the fund are hereby appropriated and the
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17 entire balance of the fund shall be deposited to the General Revenue
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18 Fund at the end of each fiscal year. The deposits to the General
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19 Revenue Fund shall be for the purpose of mitigating the impact of
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20 awarding the tax credit authorized under Section 1 of this act to
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21 osteopathic physicians.
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22 SECTION 5. This act shall become effective November 1, 2024.
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24 59-2-2475 QD 12/15/2023 10:50:53 PM
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Statutes affected:
Floor (House): 70-697.5
Engrossed: 70-697.5