Bills Considered By Legislature
Legislation had to pass the house of origin and be sent to the other chamber by March 17. Once in the other house, bills had to be approved by the assigned committee(s) by April 14, and must be approved by the full body in the opposing chamber by April 28. If changes were made in the opposing chamber, the bill must to be returned to the house of origin for another vote. If the changes (amendments) are rejected by the house of origin, the legislation is sent to a conference committee composed of members appointed from both houses. The conference committee version of the bills is then returned to both chambers for consideration. The same version of the legislation must be approved by both chambers by the May 27 deadline.
A description and the status of some of the bills attracting interest during the 2011 legislative session are presented here:
Aerospace Tax Credit
Gov. Mary Fallin signed a bill into law on April 8 that restores the Aerospace Engineer Workforce and Recruitment Tax Credit. House Bill 1008, removes the aerospace job creation incentives from a list of tax credits that were placed on moratorium last year when the state was experiencing $1.2 billion budget shortfall. The tax credit cost the state about $3.5 million during its first year. During that time, 348 new engineers were hired in Oklahoma which works out to about $10,000 in tax credits per job. It has been estimated that the restored credit could total in as much as $6 million in the first year. "The aerospace industry is one of the top industries in our state, and having this aerospace engineers tax credit will go a long ways in not only helping us retain jobs, but (will) certainly be more attractive to new jobs coming to the state of Oklahoma," Fallin said. "We have almost 500 aerospace companies in our state, and it's a very important part of our economy."
The tax credits are available only to companies that create new jobs by hiring aerospace engineers. It allows companies to be reimbursed for up to 10 percent of the salary paid to qualified engineers for up to five years if the engineer graduated from a university in Oklahoma. The reimbursement is 5 percent if the engineer graduated outside of the state. The program also provides a tax credit for 50 percent of the tuition cost of an employee who attends a qualified engineering program at a public institution in Oklahoma. HB 1008 passed the House 69-28 on March 9. It passed the Senate 41-6 on March 30. It was Fallin's first public bill signing as governor.
Second Amendment Day
Legislation designating June 28 of each year as "Second Amendment Day" was signed into law Gov. Mary Fallin on April 14. HB 1511, by state Rep. Steve Vaughan (R-Ponca City), designates the observance. "June 28 was a historic day in the battle for Second Amendment rights because that is the date the Supreme Court issued its landmark decision making it clear citizens have the right to own firearms for self-defense," said Vaughan. In the case of McDonald V. City of Chicago, Illinois, the U.S. Supreme Court struck down Chicago's ban on handguns. The case involved a man in his 70s who lived in a crime-infested neighborhood and purchased a gun for protection, violating the city's ban on handguns. In ruling against the ban, the court made clear that Americans have the right to own a gun for self-defense where they live.
"The McDonald decision was a major blow against gun control and a victory for the rights of citizens, and it is appropriate that Oklahomans celebrate that day with activities that focus on civic responsibility and constitutional rights," Vaughan said. "I hope citizens will observe this day by honoring and thanking the men and women, past and present, who were willing to pay the ultimate sacrifice so the rest of us still have the right to keep and bear arms. Without those men and women willing to stand on the line, we would not enjoy the rights we have in this country." House Bill 1511 passed the House 77-0 on March 17 and passed the state Senate 42-3 on April 7.
Expansion of Make My Day Law
Legislation that would expand Oklahoma's "Make My Day" law to include places of business was sent to Gov. Mary Fallin on April 19. House Bill 1439, by state Rep. Steve Vaughan (R-Ponca City), would give business owners and workers the right to use deadly force to defend themselves. "There's confusion on where the legal line is drawn between self-defense and an attack," said Vaughan. "At the same time, I think most Oklahomans are not confused about where it should be drawn. If an armed robber approaches a business, I think most Oklahomans would think it was appropriate for a business owner or employee to use deadly force against that armed robber. Under current law, that business owner or employee could be charged with murder." The bill passed the House by a vote of 87 to 6 on March 17. It was approved by the Senate 42-3 on April 18.
Open Carry of Firearms
Senate Bill 129, authored by Senator Steve Russel (R-Oklahoma City), would allow the "open carry" of firearms in locations that allow the carrying of concealed firearms. The bill passed the Senate 36-8 on March 15 and was sent to the House. There, the measure was assigned to the House Public Safety Committee, which voted 9-8 against the measure. The bill is dead for the year. The defeat was a surprise and a blow to advocates of the open carrying of handguns. Rep. Leslie Osborn (R-Tuttle), House author of the bill, said she was surprised at the loss. "I totally expected that bill to pass," she said. Similar legislation passed last year, but was vetoed by then-Gov. Brad Henry, a Democrat. The Republican-controlled House and Senate, and Republican Mary Fallin elected governor, supporters expected to be successful this year.
Anti-Discrimination Amendment
Oklahoma voters could soon have the opportunity to outlaw state-sanctioned discrimination under legislation approved by a House committee on April 7. "State government policies simply should not discriminate against Oklahoma citizens based on race or gender," said state Rep. Leslie Osborn (R-Tuttle). "This constitutional amendment will allow the voters to take a stand for equality." Senate Joint Resolution 15, by state Sen. Rob Johnson and Osborn, would submit a proposed constitutional amendment to a vote of the people. The proposed amendment declares, "The state shall not grant preferential treatment to, or discriminate against, any individual or group on the basis of race, color, sex, ethnicity or national origin in the operation of public employment, public education or public contracting."
"Government employment and contracting decisions should be based on merit alone," Osborn said. "The only way to guarantee all citizens have the opportunity to compete is to treat them all equally. I believe Oklahoma citizens will overwhelmingly approve this constitutional amendment at the polls." SJR 15 previously passed the state Senate on a 31-15 vote. It now proceeds to the floor of the Oklahoma House of Representatives.
End "Art" in Public Places Act
Legislation that would temporarily end a state law that requires millions of tax dollars to go to "art" projects awaits the signature of Gov. Mary Fallin. "It is difficult to justify spending millions on public "art' at the same time schools are facing funding cuts and the Department of Corrections is furloughing workers," said state Rep. Leslie Osborn (R-Tuttle). "Government needs to focus on its core functions, and this legislation will free up more money for those purposes." House Bill 1665, by Osborn, would eliminate the Arts in Public Places Act for the next three years.
Under current law, anytime the state has a building project or renovation costing $250,000 or more, 1.5 percent of the cost must be dedicated to "public art." The cost of that "art" can be as much as $500,000 per project. Those expenditures are occurring even as the state faces a $500 million shortfall just one year after grappling with a $1.2 billion shortfall. The art law recently drew attention after the state paid a reported $450,000 to mount large rusted disc blades in front of the new Office of State Finance building at 30th and Lincoln, North of the Capitol. The bill passed the House in a bipartisan 69-20 vote on March 9. It was approved by the Senate 29-18 on April 20.
Municipal Collective Bargaining Repeal
Legislation repealing a state law requiring collective bargaining for non-uniformed workers in nine Oklahoma cities is now headed to Gov. Mary Fallin to be signed into law. Oklahoma cities with a population greater than 35,000 would be relieved of a seven-year-old state mandate under House Bill 1593, by state Rep. Steve Martin (R-Nowata, Washington, Osage Counties). The bill repeals the Oklahoma Municipal Employee Collective Bargaining Act (OMECBA) passed and signed into law in 2004. "In 2004 the state of Oklahoma imposed upon Oklahoma's 13 largest cities the requirement of collective bargaining with non-uniformed employees," said Martin. "This unfunded mandate by a state that does not even allow collective bargaining with its own employees is no more justified than would be a federal mandate interfering with a state's employment policies."
Four of the 13 affected municipalities had approved collective bargaining with non-uniformed prior to the passage of OMECBA, according to Martin. "We are not outlawing collective bargaining for non-uniformed municipal employees in Oklahoma. We are simply removing an unwarranted mandate," Martin said. The bill passed the Senate in a 29-19 vote on April 19. It previously passed the Senate in a 59-38 vote on March 16.
Candidate ID
Under legislation approved by the state Senate 34-10 on March 14, candidates for public office would be required to provide proof of identity and eligibility to hold office. The amended measure was approved in the House Rules Committee on April 7, and is ready for consideration on the House floor. Referencing strong support for State Question 746, a voter ID ballot measure approved last year, Sen. Rick Brinkley (R-Owasso), said it was sensible that candidates meet the same minimal requirement. "In November, 74 percent of Oklahoma voters were in agreement that they should have to show an ID and prove who they were and that they were eligible to vote," said Brinkley. "I believe the voters would agree that those on the ballot should have to do the same thing."
Senate Bill 91, authored by Brinkley, would require candidates to submit valid photo identification and proof that they meet all requirements and qualifications for the office they seek. The bill requires the State Election Board to promulgate a set of rules that would allow candidates to prove at the time of filing that they meet qualifications. Brinkley noted that under current law, the election board must accept at face value that candidates meet the qualifications for the office they seek.
Quick Action Closing Fund
On April 7, the Senate Finance Committee gave approval to legislation designed to help Oklahoma compete for major economic development projects. House Bill 1953, by Sen. Mike Mazzei (R-Tulsa) and Rep. Skye McNiel (R-Bristow), has been a top priority this session for Gov. Mary Fallin. "Oklahoma has a great package of economic development incentives, but we're lacking a very important item," said Mazzei,. "About 30 other states have a special closing fund to attract high impact projects by providing resources for infrastructure and capital needs. If we want to remain competitive, we need this same tool in our toolbox."
Under HB 1953, the Department of Commerce will administer the Quick Action Closing Fund. Although no public funds will be appropriated this session, the bill does contain a five-year sunset provision that will take effect beginning the fiscal year after the program is funded. The legislation now moves to the full Senate for further consideration. It previously passed the House 79-17 on March 16.
State Agency Consolidation
House Bill 2140, which proposes to consolidate the shared services of several of Oklahoma's central service state agencies, passed the House of Representatives 65-38 on March 3 and was approved by the Senate Appropriations Committee on April 11. It is goes to the full Senate for consideration.
Under the bill, several shared functions of the Department of Central Services, Office of Personnel Management, Oklahoma Merit Protection Commission, Oklahoma State Employees Benefits Council and Oklahoma State and Education Employees Group Insurance Board would be streamlined while the policy-setting governance structures would remain intact and overseen by the Office of State Finance. "This legislation initiates the important process of consolidating a series of state agencies, saving millions of taxpayer dollars which are currently wasted through inefficient processes, and provides a one-stop process by which state employees can have quick and efficient access to the state's shared services," said Rep. Jason Murphey (R-Guthrie).
IT Consolidation and Reform
Echoing Gov. Mary Fallin, state Rep. David Derby (R-Owasso) urged his colleagues to support House Bill 1304, which would streamline technology systems in state government. "Failure to modernize information technology in state government will also be a failure to generate savings and a guarantee of larger budget cuts that could harm schools, roads and other important needs," said Derby.
HB 1304, by Derby, would generate savings by consolidating and streamlining IT services in state government. A report by the Capgemini consulting firm found that the state utilizes 76 separate redundant financial tracking systems despite the fact that the state has one enterprise-wide financial software that all agencies should be using. There are 22 unique time and attendance systems, 17 imaging systems, 48 reporting and analytics applications, 30,000 desktop computers (of which 2,000 are not in use), 25 different desktop operating systems, 133 email systems, and 27 SQL Server and Oracle systems with 92 percent of the SQL Server programs not being supported. The Capgemini study also referenced a report by the Gartner Group, which indicates Oklahoma is spending $35.6 million more than the average IT spend of other state governments.
Fallin is seeking to realize $140 million of savings in the state's fiscal year 2012 budget from the incorporation of IT reforms such as those in the bill. "There's no reason to maintain antiquated, duplicative and expensive IT services in state government," Derby said. The legislation passed the House 52-45 on March 16 and was approved as amended in the Senate Appropriations Committee on April 7. It must now be considered by the full Senate.
Financial Services Reform
Senate Bill 541 is designed to transform inefficient state agency financial services systems. The legislation by state Rep. Jason Murphey, (R-Guthrie) and state Sen. Anthony Sykes (R- Moore), was proposed following a report by the Hackett Group, which demonstrated massive inefficiencies in the way state agencies conducts financial services. The report compared Oklahoma agencies' financial services processes to those of other public and private sector peer organizations of like complexity. The report demonstrated the inefficiencies by stating that it costs Oklahoma taxpayers $20.05 to process one accounts payable invoice while comparable peer groups pay $3.58 for each similar service. "It is incredible and unacceptable that Oklahoma taxpayers are paying nearly six times the cost of what comparable groups are spending for that same process," Murphey declared. "This legislation is designed to fix that."
The study also stated that Oklahoma state government has a significantly higher number of full time employees employed to conduct these operations than peer organizations. Oklahoma processes 2,039 accounts payable occurrences for each employee while peer groups are able to account for 15,693 of these same processes with each employee. The House approved SB 541 by a vote of 61-34 on April 18. It originally passed the Senate 42-0 on March15 and now returns to the Senate for consideration of the House amendments.
Eminent Domain
House Bill 1226 would ensure that Oklahomans who lose property -- due to a city or other authority's use of eminent domain -- have the right to buy back any part of the property that goes unused."My legislation gives a property owner the first right to buy back property acquired through eminent domain. I think it will not hurt those entities using eminent domain, but will benefit those individuals who have had to give up their property,"said Rep. Pat Ownbey (R-Ardmore). In a 94-0 vote on March 2, the House approved the measure. The Senate passed the bill in a 41-4 vote on April 19. It returns to the House for consideration of the Senate amendments.
Education Scholarships
Senate Bill 969 by Sen. Dan Newberry (R-Sand Springs) creates a tax credit scholarship program. If enacted, the bill would allow tax credits of up to $1,000 a year for individuals and $2,000 a year for couples for contributions to eligible scholarship-granting organizations. Credits would also be available to businesses. The total value of the program would be limited to $5 million. Scholarships could go to families making up to 300 percent of the income standard used for the free or reduced school lunch program. Higher grants for special-needs children would be allowed. Scholarships could only be used at accredited schools with accountability, and criminal background checks of teachers and staff.
Newberry said that the bill will save tax dollars because local school districts will experience a savings on students that are no longer enrolled in the local public school. Remaining students will benefit from money being made available to educate a reduced number of students. He said that the infusion of private dollars will result in a savings and benefit for all students, from both public and private schools. "This bill provides more opportunity to students that currently do not have access to quality education," said Newberry. The bill passed the Senate with bi-partisan support by a vote of 30-14 on March 16. It was amended by committee substitute in the House Appropriations and Budget Committee on April 7. It now awaits action in the full House.
State Board of Education Duties
On April 11, Gov. Mary Fallin signed into law House Bill 2139, a measure that reforms the duties of the state Board of Education and the superintendent of public instruction. The bill, authored by House Speaker Kris Steele and Senate Pro Tem Brian Bingman, streamlines the operations of the state Department of Education by placing control of the department with the superintendent rather than the state Board of Education. The bill also clarifies the superintendent's authority to give advice and make recommendations to the state Board of Education on all matters pertaining to the policies and administration of the public school system. It also directs the state board to submit a budget, as prepared by the state superintendent, to the governor's office.
"In Oklahoma, the superintendent of public instruction is elected based upon the ideas and agenda they present to voters. And the superintendent -- not the unelected Board of Education -- should have the power to run the Education Department. This legislation will help to make the department more accountable and responsive to the will of the people," Fallin said. The bill passed the House 63-33 on March 7, and 31-16 on March 31.
End of Trial De Novo
House Bill 1380 ends the process known as "trial de novo" and empowers local school boards to dismiss ineffective teachers. Gov. Mary Fallin signed the bill into law April 12. It passed the House 69-31 on March 8, and the Senate 30-16 on March 31. The legislation by Rep. Corey Holland (R-Marlow) simplifies the process for dismissing ineffective or bad teachers, saving schools tens of thousands of dollars on court costs while still protecting the rights of teachers. "HB 1380 is a key education reform which will have a positive impact on student learning. This reform empowers local boards elected by local parents to make decisions necessary to provide the best education to local children. Our children deserve to have a quality teacher in every classroom, and I believe this bill is a strong step towards that goal," said Holland.
Ending Social Promotion
The Oklahoma House of Representatives voted 48-36 on April 14 to end social promotion in Oklahoma schools, ensuring that grade school students have mastered reading before they advance to more challenging courses. Senate Bill 346 returns to the state Senate for consideration of House amendments. It previously passed the Senate in its original form, 36-8 on March 14.
"When a child is promoted to the fourth grade without having mastered reading, we are setting that child up for failure," said state Rep. Sally Kern, an Oklahoma City Republican and former school teacher. "For Oklahoma's children to succeed throughout life, it is crucial that we ensure they have mastered reading skills." Authored by state Sen. Clark Jolley (R-Edmond) and Kern, the legislation would require students entering first grade in the 2011-2012 school year to master grade-appropriate reading skills by the end of third grade in order to be promoted to the fourth grade. If a reading deficiency is not remedied by the end of third grade, as demonstrated by scoring at the limited knowledge level on annual assessments, the student must be retained in third grade.
Freedom Trail Act
Under House Bill 1979, by state Rep. Anastasia A. Pittman (D-Oklahoma City) and state Sen. Judy Eason McIntyre (D-Tulsa), state historical sites associated with the African-American freedom and civil rights movement would be incorporated into an official Oklahoma Freedom Trail. The bill would direct the state historical society, tourism and transportation department, and film and music commission to establish and promote the Oklahoma Freedom Trail. "Oklahoma has a unique part in the history of the African-American freedom and civil rights movements," said Pittman,. "The state has historic all-black towns that were formed as part of a movement to make Oklahoma an all-black state. We had the Buffalo soldiers and our own chapter of the civil rights movement. There are visitors from all over the nation who come here to learn more about that history and experience it firsthand. The landmarks and historic all-black towns in Oklahoma should be a part of the state's tourism promotion and that's why I authored this legislation."
HB 1979 passed the House 58-20 on March 17. An amendment was added to the legislation in Senate committee that would require the Legislature to approve the Department of Tourism's closing of multiple state parks. The bill failed in a 14-25 vote on April 19. Sen. Eason McIntyre served notice to reconsider the vote at a later date.
Tulsa's Greenwood District
Legislation providing a tax check-off to support Tulsa's Greenwood District is headed to the floor of the House. Under Senate Bill 21, by state Sen. Judy Eason McIntyre (D-Tulsa) and state Rep. Jabar Shumate (D-Tulsa), Oklahomans would have the option of donating money to support music festivals in the Greenwood District through an income tax check-off. The money collected would be deposited into a "Historic Greenwood District Music Festival Revolving Fund" administered by the Oklahoma Historical Society. "The income tax check-off is a simple, voluntary way for Oklahomans to support the activities that have made the Historic Greenwood District a thriving cultural center in Tulsa," said Shumate.
The Historic Greenwood District in Tulsa was once know as the "Black Wall Street" before the 1921 race riot, one of the nation's worst, devastated it. Today, however, the area is on the mend and a center of cultural activities. "The resurgence of the Historic Greenwood District is an inspiration to all who face adversity," Shumate said. Senate Bill 21 previously passed out of the state Senate on a bipartisan 33-7 vote on March 10. It was passed out of the House Appropriations and Budget Committee on April 14 and will next get a vote on the floor of the House.
Immigration Reform Proposals
Sen. Ralph Shortey (R-Oklahoma City) proposed two Immigration Reform Proposals, but both failed to be approved. He won Senate approval for Senate Bill 908, which would establish criminal forfeiture provisions for crimes related to illegal immigration. The bill passed the Senate 29-15 on March 16, but failed to get a vote in the House.
Senate Bill 90, the Oklahoma Official English Language Implementation Act, would affirm the will of voters who last year approved a ballot measure making English the official language of the state. "This proposal simply codifies the language, giving the voters what they asked for in November," Shortey said. The Senate approved the bill, 40-3 on March 15, but the bill did not get a vote in the House.
Health Care Choice Act
SB 57, by state Sen. Bill Brown (R-Broken Arrow) and state Rep. Mike Ritze (R-Broken Arrow), would create the Health Care Choice Act. Under the bill, Oklahomans could purchase health insurance policies from out-of-state insurance companies. "By increasing consumer choice and competition, this legislation could drive down health insurance costs for working families," said Ritze, who is a physician. "Because this proposal relies on the free market, it will give greater power to consumers and, ultimately, a better product."
Under the bill, the state insurance commissioner would negotiate compacts with other states to allow the interstate purchases. The compacts would be subject to disapproval by the Legislature or governor. The commissioner would then administer and enforce any requirements placed on an insurance company under the compacts. Senate Bill 57 previously passed the state Senate on a bipartisan 42-3 vote on March 3. It passed out of the House Insurance Committee on March 31. It now awaits action on the floor of the House.
Lawmakers Opt Out
House Bill 1062 would free up taxpayer money by letting lawmakers opt out of the state employees' group health and life insurance plans was approved by the House 70-26 on March 17. It was amended by committee substitute in the Senate Retirement and Insurance committee on April 11, and passed the Senate 45-0 on April 20.
"The intent of this legislation is to allow state lawmakers who receive coverage through a private business or practice to opt out of receiving state-funded benefits," Rep. Roberts (R-Durant). "The monthly rate for coverage ranges from $602 to $1,578 depending on the number of family members covered. If 25 percent of state lawmakers were to opt out in a given plan year, the savings could add up to about a half a million dollars." HB 1062 would let lawmakers opt out as long as they are covered by a separate insurance plan. Under the legislation, any money saved would be retained by the state and could be spent elsewhere.
Abortion Is Not Health Care
Senate Bill 547 was signed into law by Gov. Mary Fallin on April 20. The bill will ensure that Oklahomans are not forced to fund abortions when they purchase health insurance. The legislation, by state Sen. Anthony Sykes (R-Moore) and state Rep. Mike Ritze (R-Broken Arrow), will ensure that standard health insurance policies sold in Oklahoma do not include elective abortion coverage. Under the bill, individuals wanting abortion coverage could do so through optional supplemental coverage with a separate premium.
"Oklahomans who believe in the sanctity of life should not be forced to indirectly subsidize the abortion industry," said Ritze, a Republican and a Board Certified Family Practice Physician and Surgeon who has delivered over 2,000 babies. "This legislation prevents Oklahomans from having to violate their moral beliefs if they purchase health insurance coverage." SB 547 passed the state Senate on a bipartisan 36-10 vote on March 8. It passed House on a bipartisan 84-10 vote on April 13.
Pain-Capable Unborn Child Protection Act
House Bill 1888 was signed into law by Gov. Mary Fallin on April 20. The bill by Rep. Pam Peterson (R-Tulsa) creates the "Pain-Capable Unborn Child Protection Act." The proposed law will require abortion providers to determine fetal age prior to an abortion and make it illegal to perform an abortion on an unborn child who is 20-or-more weeks of age. The bill exempts situations in which the life of the mother is at risk or when the mother faces "serious risk of substantial and irreversible physical impairment." A similar law has already been enacted in Nebraska.
The legislation is based on the latest medical research, which now shows that pain receptors are present throughout an unborn child's entire body by no later than 16 weeks after fertilization, and nerves linking receptors to the brain's thalamus and subcortical plate are present no later than 20 weeks. The House approved the bill by a vote of 94-2 on March 9. It passed the Senate 38-8 on April 5 with amendments. The House accepted the amended version 85-7 on April 13.
Regulation of Abortionists
House Bill 1642 would provide regulatory oversight of abortion providers and increase safeguards for women. "I am strongly pro-life, but also believe we should not ignore the potential medical risks faced by women who undergo abortions," said state Rep. Mike Ritze (R-Broken Arrow), a Board Certified Family Practice Physician and Surgeon who has delivered over 2,000 babies. "This legislation would increase regulatory protection provided women and ensure disreputable abortionists are not able to escape oversight."
The legislation authored by Ritze would require any abortion provider to have "clinical privileges at a hospital which offers obstetrical or gynecological care" that is located within 30 miles of the site where abortion is performed or induced. "The people once derided as "back-alley butchers' were allowed to simply hang a shingle on their front door and continue doing business as usual after Roe v. Wade," said Ritze. "That is why the law must provide greater regulation of abortion clinics." House Bill 1642 passed on a bipartisan vote of 89-7 in the House on March 15. It was referred to the Senate Health and Human Services on March 22 and did not receive a hearing by the deadline.
Unborn Children Defined as Persons
Legislation which failed in the Senate would have expanded the legal definition of a person to include unborn children. House Bill 1571 by state Rep. Steve Vaughan (R-Ponca City) defines a person as a "human being at all stages of human development of life, including the state of fertilization or conception, regardless of age, health, level of functioning, or condition of dependency." The legislation also states that "All persons are created free and have inalienable rights." The legislation passed the House by a bipartisan vote of 74-2 on March 17. It was referred to the Senate Health and Human Services on March 23 and did not receive a hearing by the deadline.
Lawsuit Reform Bills
Gov. Mary Fallin signed three lawsuit reform bills on May 5. The measures are a critical part of the Republican lawsuit reform package supported by Fallin, House Speaker Kris Steele and Senate President Pro-Tempore Brian Bingman.
The bills by Rep. Dan Sullivan (R-Tulsa) and Sen. Anthony Sykes (R-Moore) eliminate joint and several liability, require that juries receive accurate information regarding tax impact on awards, and cap non-economic damages at $350,000.
SB 862 removes a requirement that a defendant, in certain civil actions, will be jointly and severally liable for all damages if the defendant is found to be more than 50% at fault. Under current law, defendants can be held responsible for paying a higher portion of awards beyond the percentage of their fault to plaintiffs, based on their ability to pay. SB 862 would eliminate this practice. The measure passed the Senate 32-15 on February 2, and the House by a 64-32 vote on March 29.
SB 865 would instruct juries that no part of an award for damages for personal injury or wrongful death is subject to federal or state income tax and the jury should not consider income taxes when determining a proper compensation award. The Senate approved the bill 30-17 on March 1, and the House approved by a vote of 65-30 on March 29.
House Bill 2128 caps non-economic damages at $350,000 in all civil actions and repeals the previously created indemnity fund. It also includes language stating that for any civil action arising from a claimed bodily injury, the amount of compensation which the judge and jury may award a plaintiff for economic loss shall not be subject to any limitation. The bill passed the House 57-40 on March 16, and the Senate 30-14 on April 4.
Reform State Legal Services
House lawmakers voted March 17 to reform the way the state handles legal services, particularly the hiring of outside attorneys, in an effort to ultimately reduce legal costs for state government. "In recent years, Oklahoma government has come under the spotlight for the millions of taxpayer dollars expended on private law firms," said state Rep. Mark McCullough (R-Sapulpa). House Bill 1223, by McCullough, would create the "Legal Services Reform Act." Under the proposed law, state agencies would have to receive approval from the Office of the Attorney General for all outside attorney contracts. If an agency receives permission to seek outside counsel, the contract would then have to go through a Request For Proposal (RFP) process. In addition, all outside attorney contracts would have to be posted online on the agency's website within four months.
"The Office of the Attorney General is where state agencies' legal representation was originally vested, and this bill returns that power to the office -- not with contract lawyers," McCullough said. In recent years, he noted Oklahoma has been criticized by the Wall Street Journal in an editorial citing the lack of transparency in the state's hiring of private attorneys. House Bill 1223 passed the Oklahoma House of Representatives on 64-34 on March 17. It was approved by the Senate Appropriations Committee on April 7 and is ready for consideration by the full Senate.
TV Broadcast of Legislature
On April 7, the Oklahoma House of Representatives defeated a proposal that would have required the Oklahoma Educational Television Authority (OETA) to televise legislative sessions and committee meetings on its statewide network. Senate Bill 89 failed by a vote of 82-15 in the House. But, it previously passed the Senate without opposition, 43-0 on March 14. The switch was the result of OETA supporters and some detractors joining in opposition. The supports did not want funds diverted from OETA's current mission, while some of those who regularly vote against money for OETA did not want to add something to its mission which might make it more difficult to end funding in the future. Also, some legislators may have worried about more people being able to see what goes on in legislative proceedings.
The proposal was estimated to cost at least $150,000 for robotic cameras and other equipment necessary for the telecasts. Staff and operating costs were estimated at $100,000 per year. While OETA receives over $4 million of state funding each year, some legislators worried that the requirement could jeopardize other programing. Rep. Doug Cox (R-Grove), a liberal Republican, said it might interfere with the ability to watch Lawrence Welk on OETA. Rep. Jason Murphey, (R-Guthrie), House sponsor of SB 89, told members "If the state's going to invest taxpayer dollars in public television, transparency of the governing body should be one of the No. 1 goals of that organization."
Currently the House and Senate sessions are available over the internet via the state legislative website, www.oklegislature.com Murphey noted that not all Oklahomans have high-speed Internet which is necessary to view the legislative coverage. OETA, televises for free several digital channels of mostly nationally produced shows, such as "Sesame Street" and "Nova." It has available channel space that could be dedicated for legislative sessions and meetings.
Pension Reform
State lawmakers approved major reforms that will shore up Oklahoma's state pensions. "In the past, this problem has been passed on to future generations of Oklahomans to solve," said Rep. Randy McDaniel (R-Oklahoma City). "No more. The time has come for meaningful pension reform."
HB 2132 requires the legislature to provide a funding source when a cost-of-living adjustment (COLA) is offered. This measure requires the Legislature to pay for costs as they go. "One of the primary causes of the current unfunded liability is that past COLAs were enacted without actually paying for them," said House Speaker Kris Steele. "As a result, money was drained from pension systems, leaving them in an increasingly difficult position for future generations. Under the reforms we are advancing the focus is on financial stability."
According to official actuarial reports, the unfunded liability now totals more than $16 billion -- more than twice the size of the entire state budget. Steele noted that 10 years ago the state's unfunded pension liability was just over $6 billion. The measure passed the House 62-28 on March 2. It was approved as amended by committee substitute in the Senate Retirement and Insurance Committee on April 5. The amended version passed the Senate in a 33-13 vote on April 19. The bill returns to the House for consideration of the Senate amendments.
Petitions to Identify Funding Source
House Bill 1225 was approved by the House by a vote of 52-46 on February 28 and would require initiative petitions that mandate new spending to identify a funding source. It was approved as amended in the Senate Rules Committee on March 31 and awaits consideration by the full Senate. "After last year's fiasco of a state question, lawmakers are keen to protect the citizens from petitions that could bankrupt government services," said state Rep. Pat Ownbey (R-Ardmore), who authored the bill. "State Question 744 mandated new education spending but failed to say where that money could come from. It took a large-scale effort on the part of numerous state organizations to let people know exactly what the effects of that state question would be because no funding source was identified." HB 1225 would require those submitting a petition to include a statement "outlining all sources of funding to be used in the measure."
Cap for Property Tax Valuations
House Joint Resolution 1002, by Rep. David Dank (R-Oklahoma City) and Sen. Jim Reynolds (R-Oklahoma City), would give voters the option of lowering the current property valuation cap from a maximum of five percent to three percent, or the rate of inflation, whichever is lower. The five percent cap, approved by voters in 1996, was supposed to keep annual property valuations under that cap, but many County Assessors have automatically raised those levels the maximum amount of five percent every year. The Senate has approved this language in the past, but it previously stalled in the House. The bill originally passed the House 81-16 on March 16. It was approved 26-19 on April 13 by the Senate, with amendments. On April 20, the House accepted the Senate amendments and approved the bill 77-16. The proposed Constitutional Amendment now goes to the Secretary of State's Office to be placed on the ballot for a vote of the people in 2012.
Protections for Utility Customers
State Rep. Scott Martin (R-Norman) praised passage of legislation that would protect customer data being collected by electric utility companies who are installing smart meters. House Bill 1079 would require electric utility companies to maintain the confidentiality of customer data and allow customers access to that data. The legislation would especially protect Norman residents. "OG&E has started their smart grid implementation in Norman as a pilot program and so Norman residents would be the first Oklahomans that would be vulnerable to the misuse of their data," Martin said. "Basically, the utility industry is converting the electric grid from the current analog system to a modern digital system. OG&E has already converted 100,000 standard meters to smart meters in Norman and Oklahoma City and plans to have some 800,000 meters converted in the next two years."
Customers will see energy savings and reduced energy bills from the conversion to smart meters, but are vulnerable to potential access of their data by third parties. "Utility companies like OG&E already have access to customer data, but the smart grid makes it possible for third parties to better access the data," Martin said. "This legislation should ensure customers can reap the many benefits of this new system without having to fear someone getting access to their data without permission. Technology is great, but it shouldn't come at the expense of consumer privacy." The bill has OG&E's support, Martin said. House Bill 1079 passed by a vote of 86 to 10 on March 16, and approved by Senate Energy Committee on April 4 and awaits consideration by the full Senate.
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