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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 282 By: Deevers
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6 AS INTRODUCED
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7 An Act relating to federal taxes; creating the Budget
7 Accountability for State's Economic Defense (BASED)
8 Act; providing short title; stating intent; creating
8 the Taxpayer Protection Escrow Revolving Fund;
9 providing sources of funds; providing for
9 disbursement of funds by the State Treasurer;
10 requiring deposit of interest from investment of
10 funds in certain revolving fund; requiring all
11 taxpayers and employers of this state to make payment
11 to the State Treasurer in lieu or payment to the
12 federal government; requiring the State Treasurer to
12 deposit payments in certain revolving fund; requiring
13 submission of report; prescribing reporting
13 requirements; prohibiting the federal government from
14 certain punishment or retaliation; deeming the
14 withholding of certain funds to be unlawful;
15 declaring certain federal actions null and void;
15 requiring the Attorney General to indemnify certain
16 individuals and entities; requiring the Attorney
16 General to provide legal defense upon certain
17 request; authorizing the Attorney General to request
17 certain funds; creating the Taxpayer Defense Fund;
18 providing sources of funds; providing for expenditure
18 of funds; providing for noncodification; providing
19 for codification; and declaring an emergency.
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22 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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23 SECTION 1. NEW LAW A new section of law not to be
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24 codified in the Oklahoma Statutes reads as follows:
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1 This act shall be known and may be cited as the "Budget
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2 Accountability for State's Economic Defense (BASED) Act".
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3 SECTION 2. NEW LAW A new section of law not to be
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4 codified in the Oklahoma Statutes reads as follows:
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5 A. The Legislature hereby finds:
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6 1. State sovereignty and constitutional duty: The tenth
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7 amendment to the United States Constitution reserves to the states
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8 all powers not delegated to the federal government. Oklahoma has
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9 both the constitutional authority and the fiduciary duty to protect
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10 its citizens from economic harm caused by federal fiscal
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11 mismanagement;
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12 2. The failure of Congress to promote the general welfare:
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13 Section 8 of Article I of the United States Constitution grants
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14 Congress the power to tax to provide for the common defense and
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15 general welfare. However, Congress's continued failure to enact a
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16 balanced federal budget has resulted in a national debt exceeding
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17 Thirty-six Trillion Dollars ($36,000,000,000,000.00), or more than
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18 One Hundred Thousand Dollars ($100,000.00) per U.S. citizen, which
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19 creates an existential threat to the general welfare. Congress's
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20 failure to fulfill its constitutional duty renders its exercise of
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21 taxing power unconstitutional in effect, as funding such
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22 irresponsible deficits, which, if allowed to continue, will
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23 necessarily lead to financial ruin for American citizens, and
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24 clearly undermines, and does not promote, the general welfare. In
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1 United States v. Butler (1936), the Supreme Court held that
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2 Congress's taxing power must align with promoting the general
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3 welfare. Funding an unbalanced budget violates this principle;
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4 3. Existential threat to national defense: Continuing to run
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5 deficits while the national debt already exceeds Thirty-six Trillion
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6 Dollars ($36,000,000,000,000.00) compromises America's ability to
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7 provide for the nation's common defense by:
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8 a. weakening the nation's economic stability and
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9 eventually leading to economic ruin and the inability
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10 to adequately fund the U.S. military, and
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11 b. undermining its capacity to respond to national
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12 emergencies and foreign threats.
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13 The federal government's fiscal recklessness jeopardizes the
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14 very foundations of national security and economic health;
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15 4. Fiduciary responsibility and the public trust doctrine:
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16 Congress, under Section 8 of Article I of the United States
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17 Constitution, holds a fiduciary duty to tax and spend for the
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18 benefit of the American people. Decades of deficits and ballooning
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19 debt represent a breach of this public trust, imposing undue
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20 financial burdens on the citizens and states. Under the Public
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21 Trust Doctrine, when a fiduciary fails to act in a way that could be
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22 reasonably characterized as responsible, beneficiaries, or in this
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23 case the states, have the right and obligation to intervene to
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24 ensure proper use of resources. Oklahoma, as a sovereign state,
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1 must shield its citizens from participation in this irresponsible
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2 and unconstitutional fiscal system;
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3 5. This state's obligation to protect property rights: Section
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4 2 of Article II of the Oklahoma Constitution states, "All persons
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5 have the inherent right to life, liberty, the pursuit of happiness,
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6 and the enjoyment of the gains of their own industry". The
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7 devaluation of citizens' labor and property through inflation and
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8 unbalanced federal spending undermines this fundamental right.
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9 Oklahoma has an obligation to protect its citizens' income and
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10 wealth from the economic harm currently being inflicted and the
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11 unimaginable harm to come if the federal deficit continues to grow;
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12 6. Emergency doctrine and state intervention: The current
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13 fiscal crisis, including decades of unbalanced budgets and
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14 unsustainable debt, constitutes an economic and national emergency.
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15 Under the emergency doctrine, states have the authority to take
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16 extraordinary measures to preserve the welfare of their citizens.
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17 In Home Building & Loan Association v. Blaisdell (1934), the Supreme
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18 Court upheld state actions during emergencies to protect the public
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19 welfare. This state asserts that the withholding of federal taxes
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20 until Congress enacts a balanced budget is a temporary and necessary
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21 action to avert economic catastrophe caused by willful fiscal
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22 negligence;
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23 7. Temporary, defensive, and constructive action: The Taxpayer
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24 Protection Escrow Fund is a temporary, non-violent assertion of the
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1 sovereign duty of this state to protect its citizens. It does not
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2 seek to nullify federal law but, instead, establishes conditions for
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3 compliance based on constitutional principles. The action of this
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4 state is:
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5 a. temporary - withholding continues until Congress
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6 enacts a balanced budget,
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7 b. defensive - shielding the citizens of this state from
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8 economic harm caused by federal fiscal
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9 irresponsibility, and
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10 c. constructive - encouraging Congress to restore fiscal
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11 discipline and fulfill its constitutional duty to
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12 promote the general welfare; and
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13 8. DOGE proposals are on the table: The Department of
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14 Government Efficiency is in the process of making proposals to
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15 reduce federal spending by Two Trillion Dollars
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16 ($2,000,000,000,000.00) which could balance the budget if
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17 implemented by Congress and voters gave lawmakers a clear mandate to
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18 do so.
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19 B. It is the intent of the Legislature to:
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20 1. Withhold the remittance of federal income taxes collected
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21 within this state until the United States Congress passes a balanced
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22 federal budget; and
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23 2. Protect Oklahoma taxpayers, state employees, agencies,
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24 businesses, and entities from retaliation by the federal government
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1 for this state's lawful assertion of its constitutional duty to
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2 safeguard citizens.
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3 SECTION 3. NEW LAW A new section of law to be codified
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4 in the Oklahoma Statutes as Section 37 of Title 62, unless there is
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5 created a duplication in numbering, reads as follows:
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6 A. There is hereby created in the State Treasury a revolving
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7 fund for the Office of the State Treasurer to be designated the
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8 "Taxpayer Protection Escrow Revolving Fund". The fund shall be a
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9 continuing fund, not subject to fiscal year limitations, and shall
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10 consist of all monies received by the Treasurer from federal income
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11 tax withholdings collected in this state. All monies accruing to
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12 the credit of the fund are hereby appropriated and may be budgeted
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13 and expended by the Treasurer for the purpose provided for in this
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14 section and Section 4 of this act. Expenditures from the fund shall
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15 be made upon warrants issued by the State Treasurer against claims
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16 filed as prescribed by law with the Director of the Office of
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17 Management and Enterprise Services for approval and payment.
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18 B. Upon certification of a balanced federal budget at least
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19 thirty (30) days prior to the beginning of the federal fiscal year,
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20 the State Treasurer shall disburse the funds deposited pursuant to
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21 the provisions of Section 4 of this act to the United States
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22 Treasury.
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23 C. If no balanced federal budget is certified pursuant to
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24 subsection B of this section, the State Treasurer shall, within
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1 ninety (90) days, return payments made by employers and taxpayers
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2 pursuant to Section 4 of this act. Employers shall pay the
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3 withholdings of each employee to the employee within one (1) week of
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4 receiving the funds.
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5 D. Interest earned from the investment of funds deposited in
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6 the Taxpayer Protection Escrow Revolving Fund shall be deposited in
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7 the Taxpayer Defense Fund created pursuant to Section 6 of this act.
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8 SECTION 4. NEW LAW A new section of law to be codified
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9 in the Oklahoma Statutes as Section 37.1 of Title 62, unless there
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10 is created a duplication in numbering, reads as follows:
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11 A. Upon the effective date of this act, all employers in this
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12 state required to withhold federal taxes pursuant to Publication 15
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13 of the Internal Revenue Service using the federal form W-4 of an
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14 employee shall withhold the amount prescribed pursuant to
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15 Publication 15 and form W-4 and make payment of the withholding to
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16 the Office of the State Treasurer. All taxpayers required to submit
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17 estimated tax pursuant to Publication 505 of the Internal Revenue
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18 Service using federal Form 1040-ES or 1040-SS or any other
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19 withholdings required pursuant to Publication 505 of the Internal
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20 Revenue Service shall calculate the amount of estimated tax or
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21 withholding pursuant to the publication and make payment to the
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22 Office of the State Treasurer.
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23 B. The State Treasurer, upon receipt of funds pursuant to
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24 subsection A of this section, shall deposit the funds in the
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1 Taxpayer Protection Escrow Revolving Fund created in Section 3 of
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2 this act.
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3 C. The Office of the State Treasurer shall electronically
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4 submit a quarterly report to the Legislature detailing deposits,
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5 account transfers, interest earned, and the balance of the Taxpayer
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6 Protection Escrow Revolving Fund. The State Auditor and Inspector
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7 shall annually audit the Taxpayer Protection Escrow Revolving Fund.
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8 SECTION 5. NEW LAW A new section of law to be codified
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9 in the Oklahoma Statutes as Section 37.2 of Title 62, unless there
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10 is created a duplication in numbering, reads as follows:
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11 A. The federal government is prohibited from any punitive
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12 action against any citizen, state employee, state agency, political
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13 subdivision, business, or entity within this state for compliance
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14 with the provisions of this act. Any attempt by the federal
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15 government to withhold federal funds otherwise lawfully allocated to
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16 this state shall be deemed unlawful and unconstitutional.
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17 B. Any federal fines, sanctions, punishments, or penalties
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18 levied or enforced against any individual or employer for compliance
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19 with the provisions of this act shall be null and void.
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20 C. The Attorney General shall indemnify any citizen, entity,
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21 and agency penalized by the federal government due to compliance
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22 with the provisions of this act. The Attorney General shall, if
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23 requested by a citizen, entity, or government entity of this state,
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1 provide legal defense against retaliation by the federal government
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2 due to compliance with the provisions of this act.
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3 D. The Attorney General may request from the State Treasurer
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4 funds deposited in the Taxpayer Defense Fund created pursuant to
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5 Section 6 of this act for costs associated with effectuating the
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6 provisions of subsection C of this section.
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7 SECTION 6. NEW LAW A new section of law to be codified
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8 in the Oklahoma Statutes as Section 37.3 of Title 62, unless there
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9 is created a duplication in numbering, reads as follows:
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10 A. There is hereby created in the State Treasury a revolving
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11 fund for the Office of the State Treasurer to be designated the
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12 "Taxpayer Defense Fund". The fund shall be a continuing fund, not
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13 subject to fiscal year limitations, and shall consist of all monies
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14 earned as interest from investment of funds in the Taxpayer
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15 Protection Escrow Revolving Fund created pursuant to Section 3 of
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16 this act. All monies accruing to the credit of the fund are hereby
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17 appropriated and may be budgeted and expended by the Treasurer for
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18 the purpose provided for in this section. Expenditures from the
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19 fund shall be made upon warrants issued by the State Treasurer
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20 against claims filed as prescribed by law with the Director of the
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21 Office of Management and Enterprise Services for approval and
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22 payment.
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23 B. The State Treasurer shall expend deposits to this fund on
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24 legal protection and defense for any citizen, entity, or government
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1 entity of this state from federal retaliation for compliance with
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2 this act.
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3 SECTION 7. It being immediately necessary for the preservation
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4 of the public peace, health or safety, an emergency is hereby
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5 declared to exist, by reason whereof this act shall take effect and
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6 be in full force from and after its passage and approval.
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Req. No. 1461 Page 10Every fact on this page links to its source, starting with the official bill record.