By Constitution Staff

Oklahoma voters will have six state questions on the November 6, 2012 General Election ballot. While State Questions are sometime the result of a initiative petition where proponents gather signatures, all of the referendums this year were placed on the ballot by an act of the Legislature.

State Question 758 would lower the Ad valorem tax limit on valuation increases. It was proposed last year in HJR 1002 by Rep. David Dank and Sen. Jim Reynolds. The constitutional amendment would limit the annual increase in the fair cash value of a homesteaded or agricultural property to 3 percent. The current annual cap on ad valorem tax valuation increases is 5 percent.

State Question 759 would prohibit state and local governments from giving preferential treatment or discriminating against individuals for education, employment, and contracting based upon race, color, gender, ethnicity or national origin. The measure was proposed through SJR 15 by Sen. Rob Johnson and Rep. Leslie Osborn. The change to the state constitution would eliminate most state or local government affirmative action programs. Exceptions are allowed where gender is a bonafide qualification, where existing court orders and consent decrees require it, or where necessary to receive federal funds.

This has been the most controversial of the questions, with opposition coming from the American Civil Liberties Union (ACLU) and a coalition of groups called Keep the Door Open. Groups such as the Oklahoma Federation of Democratic Women, Change Oklahoma, the Oklahoma chapter of the Council on American-Islamic Relations (CAIR), and Coalition For the American Dream are part of the coalition. The proposal is being supported by the American Civil Rights Institute which has been pushing for similar measures in other states. The organization is headed by Ward Connerly, the black Univeristy of California Regent who won approval of the California Civil Rights Initiative (Preposition 209) in 1996. Connerly visited Oklahoma in October to support State Question 759.

State Question 762 would take the Governor out of the parole process for nonviolent convictions. It was proposed in SJR 25 by Sen. Josh Brecheen and Rep. Kris Steele. The constitutional amendment would change the current parole process by giving the Pardon and Parole Board the final authority to grant paroles for persons convicted of certain nonviolent crimes. Currently, the Pardon and Parole Board only makes recommendations to the Governor who then makes the final decision. This proposal was one of the recommendations coming out of a 2007 performance audit of the Oklahoma Department of Corrections conducted by MGT of America, Inc. The audit concluded that the state could save over $40 million over ten years, or $4 million per year, by removing the Governor from the parole process which would result in more inmates being paroled. In September, the Oklahoma District Attorneys Association voted unanimously to oppose the ballot measure. Some argue that the governor should continue to have a say, in order to provide a check on the Pardon and Parole Board.

State Question 764 would allow the state to commit to up to $300 million of new debt to finance water infrastructure projects. It was proposed with HJR 1085 by Rep. Phil Richardson and Sen. Brian Crain. The constitutional amendment would create the Water Infrastructure Credit Enhancement Reserve Fund and would allow the Oklahoma Water Resources Board to issue bonds for water infrastructure projects after other funding sources are exhausted, subject to legislative appropriation and authority. Many opponents see this as another example of the state circumventing the constitutional requirement for a balanced budget put into place at the urging of Governor Leon C . Phillips.

State Question 765 would abolish the unelected Oklahoma Public Welfare Commission which oversees the Department of Human Services (DHS) and allow the Legislature to create a new department for the care and relief of the indigent, elderly, children, and the disabled. The intent is to have the director of the new entity directly appointed by and accountable to the Governor. The proposal is the result of HJR 1092 by Rep. Kris Steele and Sen. Greg Treat. The Commission has been a constitutionally-mandated, nine-member group of appointed volunteers that has overseen the operations of DHS since 1936. The proposal removes the Commission and its related entities and duties from the state Constitution.

State Question 766 would exempt all intangible personal property from ad valorem taxation. If intangible property is taxed, it would be an added hardship to businesses in the state, may cause business to leave the state, and discourage businesses from coming to Oklahoma. Schools and other government entities see it as a potential new source of revenue, perhaps as much as $50 million per year. The measure was proposed through SJR 52 by Sen. Mike Mazzei and Rep. David Dank. The constitutional amendment is in response to a 2009 Oklahoma Supreme Court ruling involving Southwestern Bell Telephone that determined that businesses could be required to pay property taxes on intangible personal property such as customer lists, databases, patents, designs, technology, lease agreements, trademarks, trade names, licensed software, insurance policies and more. The court determined that only the items specifically listed in the Constitution are exempt and that any intangible property that was not listed was taxable. Currently, the state Constitution exempts stocks, bonds, and cash on hand, from taxation. Intangible items are difficult to quantify and assess for taxation purposes and assessed values for similar businesses could vary widely from county to county within the state. Support of this measure was one of the ten bills included in the 2012 Oklahoma Conservative Index rating state legislators, published in our Summer edition.

The text of the State Questions as they will appear on the ballot are listed below:

STATE QUESTION NO. 758

LEGISLATIVE REFERENDUM NO. 358

This measure amends the State Constitution. It amends Section 8B of Article 10. The measure deals with real property taxes also called ad valorem taxes. These taxes are based on several factors. One factor is the fair cash value of the property. The measure changes the limits on increases in fair cash value. Now, increases are limited to 5% of fair cash value in any taxable year. The measure changes the cap on increases to 3% for some property. The 3% cap would apply to homestead exempted property. The cap would also apply to agricultural land. The measure also removes obsolete language.

SHALL THE PROPOSAL BE APPROVED?

FOR THE PROPOSAL - YES

AGAINST THE PROPOSAL - NO

STATE QUESTION NO. 759

LEGISLATIVE REFERENDUM NO. 359

This measure adds a new section to the State Constitution. It adds Section 36 to Article II. The measure deals with three areas of government action. These areas are employment, education and contracting. In these areas, the measure does not allow affirmative action programs. Affirmative action programs give preferred treatment based on race, color or gender. They also give preferred treatment based on ethnicity or national origin. Discrimination on these bases is also not permitted. The measure permits affirmative action in three instances. 1. When gender is a bonafide qualification, it is allowed. 2. Existing court orders and consent decrees that require preferred treatment will continue and can be followed. 3. Affirmative action is allowed when needed to keep or obtain federal funds. The measure applies to the State and its agencies. It applies to counties, cities and towns. It applies to school districts. It applies to other State subdivisions. The measure applies only to actions taken after its approval by the people.

SHALL THE PROPOSAL BE APPROVED

FOR THE PROPOSAL - YES

AGAINST THE PROPOSAL - NO

STATE QUESTION NO. 762

LEGISLATIVE REFERENDUM NO. 360

This measure amends Section 10 of Article 6 of the Oklahoma Constitution. It changes current law, decreasing the power and authority of the Governor by removing the Governor from the parole process for persons convicted of certain offenses defined as nonviolent offenses. It enlarges the power and authority of the Pardon and Parole Board by authorizing that Board, in place of the Governor, to grant parole to persons convicted of certain offenses defined as nonviolent offenses. The Legislature defines what offenses are nonviolent offenses and the Legislature may change that definition. The measure authorizes the Pardon and Parole Board to recommend to the Governor, but not to itself grant, parole for persons convicted of certain offenses, specifically those offenses identified by law as crimes for which persons are required to serve not less than eighty-five percent of their sentence prior to being considered for parole and those designated by the Legislature as exceptions to nonviolent offenses. For those offenses for which persons are required to serve a minimum mandatory period of confinement prior to being eligible to be considered for parole, the Pardon and Parole Board may not recommend parole until that period of confinement has been served.

SHALL THE PROPOSAL BE APPROVED?

FOR THE PROPOSAL - YES

AGAINST THE PROPOSAL - NO

STATE QUESTION NO. 764

LEGISLATIVE REFERENDUM NO. 361

This measure amends the Oklahoma Constitution. It adds a new Section 39A to Article 10. It would allow the Oklahoma Water Resources Board to issue bonds. Any bonds issued would be used to provide a reserve fund for the Board. The fund would be a reserve fund for certain water resource and sewage treatment funding programs. The fund could only be used to pay other bonds and obligations for the funding programs. The bonds could only be issued after other monies and sources are used for repayment. The bonds would be general obligation bonds. Not more than Three Hundred Million Dollars worth of bonds could be issued. The Legislature would provide the monies to pay for the bonds. The Legislature would provide for methods for issuing the bonds. The Legislature would provide for how the fund is administered.

SHALL THE PROPOSAL BE APPROVED?

FOR THE PROPOSAL - YES

AGAINST THE PROPOSAL - NO

STATE QUESTION NO. 765

LEGISLATIVE REFERENDUM NO. 362

The measure amends the Oklahoma Constitution. It abolishes the Oklahoma Department of Human Services, the Oklahoma Commission of Human Services and the position of Director of the Oklahoma Department of Human Services. These entities were created under different names by Sections 2, 3 and 4 of Article 25 of the Oklahoma Constitution and given duties and responsibilities related to the care of the aged and needy. The measure repeals these sections of the Constitution and consequently, removes the power of the Commission of Human Services to establish policy and adopt rules and regulations. Under the measure, the Legislature and the people by initiative petition retain the power to adopt legislation for these purposes. The measure adds a provision to the Constitution authorizing the Legislature to create a department or departments to administer and carry out laws to provide for the care of the aged and the needy. The measure also authorizes the Legislature to enact laws requiring the newly-created department or departments to perform other duties.

SHALL THE PROPOSAL BE APPROVED?

FOR THE PROPOSAL - YES

AGAINST THE PROPOSAL - NO

STATE QUESTION NO. 766

LEGISLATIVE REFERENDUM NO. 363

This measure amends Section 6A of Article 10 of the Oklahoma Constitution. At present that section exempts some intangible personal property from ad valorem property taxation. This measure would exempt all intangible personal property from ad valorem property taxation. An ad valorem property tax is a tax imposed upon the value of property. Intangible Personal Property is property whose value is not derived from its physical attributes, but rather from what it represents or evidences. Intangible Personal Property which is still currently taxed but would not be taxed if the measure is adopted, includes items such as:

- patents, inventions, formulas, designs, and trade secrets;

- licenses, franchise, and contracts;

- land leases, mineral interests, and insurance policies;

- custom computer software; and

- trademarks, trade names and brand names.

If adopted, the measure would apply to property taxation starting with the tax year that begins on January 1, 2013.

SHALL THE PROPOSAL BE APPROVED?

FOR THE PROPOSAL - YES

AGAINST THE PROPOSAL - NO