STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

HOUSE BILL 2069	By:	Key

AS INTRODUCED

An Act relating to public finance; enacting the State Sovereignty Act; defining terms; making findings regarding the Tenth Amendment to the United States Constitution; making findings regarding impermissible exercises of federal power; making declaration of sovereignty; creating the Federal Tax Fund; providing for deposit of interest and penalty amounts; imposing remitting responsibilities upon certain taxpayers; providing for credits to Federal Tax Fund; providing for transfer of monies to the Internal Revenue Service; prescribing procedures; providing for suspension of payment from Federal Tax Fund based upon certain actions of the federal government; prescribing procedures for release of monies; authorizing surcharge; prescribing civil penalty amount; providing for deposit of monies into Federal Tax Fund; 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 to be codified in the Oklahoma Statutes as Section 7001 of Title 62, unless there is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "State Sovereignty Act".
SECTION 2.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 7002 of Title 62, unless there is created a duplication in numbering, reads as follows:
As used in this act, "person" means natural persons, corporations, partnerships, limited liability companies, associations, and other legal entities.
SECTION 3.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 7003 of Title 62, unless there is created a duplication in numbering, reads as follows:
A.  The Tenth Amendment of the United States Constitution defines the total scope of federal power as being that specifically granted by the federal Constitution and no more.  The Legislature recognizes that the United States Congress has the right to levy and collect taxes under the federal Constitution.  The Legislature finds, however, that the Congress does not have the right under the federal Constitution to withhold from the states the benefits of those taxes through unconstitutional mandates.
B.  The Legislature further finds that most unconstitutional mandates prohibit Oklahoma from implementing programs of excellence that would exceed federal expectations.  Oklahoma has significant technical expertise in resource management in the areas of air, earth, and water, but the persistent threat of sanctions renders that expertise ineffective.
C.  In light of the continuing unconstitutional withholding of the benefits of the taxes, the State of Oklahoma hereby asserts its claim of sovereignty.
SECTION 4.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 7004 of Title 62, unless there is created a duplication in numbering, reads as follows:
A.  There is created in the Oklahoma State Treasury the Federal Tax Fund, which shall be an escrow account.  Any interest earned on the deposit of monies in the fund along with any civil penalties assessed under Section 5 of this act shall remain in the fund and shall not revert to the General Revenue Fund of the state at the end of any fiscal year.  The interest earned on the deposit of monies and any civil penalties shall be used to pay any necessary administrative costs incurred under this act and any excess interest and penalties shall be transferred to the State Highway Construction and Maintenance Fund.
B.  Any person liable for any excise tax shall remit the tax when due along with the person's federal taxpayer number to the Oklahoma Tax Commission for deposit into the fund.
C.  All monies collected under subsection B of this section shall be transmitted to the State Treasurer who, as a fiduciary agent, shall credit the same to the Federal Tax Fund on behalf of the person that remitted the tax.
D.  1.  Except as provided in paragraph 2 of this subsection, the State Treasurer shall transfer at the end of each month the monies held in the Federal Tax Fund less any interest earned on the deposit to the Internal Revenue Service in payment of the tax obligation of those persons who remitted the tax to the Oklahoma Tax Commission.  As a part of the transfer, the State Treasurer shall identify the federal taxpayer number and amount received from each person who remitted any tax to the Oklahoma Tax Commission.
2.  If the federal government imposes any sanctions on the State of Oklahoma for failing to enact legislation required by federal law, which the Legislature deems to be unconstitutional, by withholding or reprogramming any federal aid monies from, among other things, highway construction to highway safety or other programs, the State Treasurer shall not transfer any taxes held in the Federal Tax Fund but shall retain the monies in the fund until such time as the sanctions are lifted.  If the lifting of the sanctions occurs within ninety (90) days, the State Treasurer shall transfer the amounts held in the fund to the Internal Revenue Service within ten (10) days of the lifting of the sanctions.  If the sanctions are not lifted within ninety (90) days, the state shall impose a surcharge on the monies in the fund to be used for payment to continue highway project funding.
SECTION 5.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 7005 of Title 62, unless there is created a duplication in numbering, reads as follows:
Any person who fails to comply with Section 4 of this act is subject to a civil penalty in an amount equal to one hundred fifty percent (150%) of the tax owed for each day the person fails to comply with Section 4 of this act.  Any civil penalties assessed under this section shall be deposited into the Federal Tax Fund established in Section 4 of this act.
SECTION 6.  It being immediately necessary for the preservation of the public peace, health and 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.

53-1-5174	MAH	01/10/11