House Approves Debt Reduction Fund

 Members of the Oklahoma House of Representatives voted today to use future “spillover” funds to shore up the state’s pension systems.

            When revenue collections exceed projections, the Oklahoma Constitution provides for the extra cash to go into the state’s “Rainy Day” fund. Once Rainy Day fund deposits equal 15 percent of the certified amount, deposits exceeding that total are considered “spillover” that can be and have historically been appropriated for a wide range of uses.

            Senate Bill 1264, by state Sen. Dan Newberry and state Rep. Randy McDaniel, creates the Oklahoma Debt Reduction Fund and would require that a significant portion of spillover funds be automatically directed to the reduction of pension liability debt.  Once all pensions systems are funded at 80 percent or more, the same share of spillover funding would then be dedicated to reducing the state’s other indebtedness. 

            “Reducing our pension liability debt is critical to ensure the long-term sustainability and strength of the state,” said McDaniel, R-Oklahoma City.  “This legislation ensures that we take care of our past obligations before new spending proposals are considered.”

            “We must reduce our debt to assure our state’s long-term economic health,” said Newberry, R-Tulsa.  “When debt grows, it creates pressure to increase taxes. I would prefer that Oklahoma grow jobs.  This legislation is an important part of that effort.”

            Senate Bill 1264 would ensure that 30 percent of any spillover funding is applied toward the reduction of pension liability debt.  Once a system’s pension liability is funded at 80 percent or more, the same percentage of spillover funding would be dedicated to reducing the state’s bonded indebtedness. 

Although Rainy Day Fund spillover is not a routine occurrence, it has happened in recent years, including in Fiscal Year 2008 when lawmakers had roughly $150 million in spillover funding.

            House passage of Senate Bill 1264 occurred the same week it was reported that the Medicare and Social Security trust funds will be exhausted by 2024 and 2033.

McDaniel said pension reform will protect Oklahoma from the financial problems many other states and the federal government now face.

“This legislation will make debt reduction a higher priority. It requires us to first pay current obligations before committing to new spending programs,” McDaniel said. “By retiring debt more quickly and limiting the growth of government, we can ensure greater stability for Oklahoma in the future.”

Senate Bill 1264 passed the Oklahoma House of Representatives on a 76-12 vote.

Weekly Capitol Wrap

House Votes to Phase Out Venture Capital Tax Credits

            House lawmakers voted this week to phase out the issuance of tax credits through programs associated with the Oklahoma Capital Investment Board. The board was launched roughly two decades ago when Oklahoma was still reeling from the impact of the oil bust.

            Created to facilitate venture capital for start-up companies in Oklahoma, the fund has millions in tax credits at its disposal to aid in that mission. The tax credits are used as collateral to support both bank loans and investments in certain venture capital partnerships. Today, approximately $30 million in tax credits have been sold because of losses.

            However, last year the Task Force on State Tax Credits and Economic Incentives determined that tax credits were used to support activity occurring largely outside Oklahoma, even though the OCIB was created to bring jobs to Oklahoma.

            During the task force meetings last year, the OCIB was not able to show “who, what, where, when and why” when asked those basic questions about its investment and results.

            As a result, House lawmakers have approved Senate Bill 1159, which would gradually phase out the OCIB tax credit programs in an orderly fashion.

            Under the bill, entities that obtained tax credits from the OCIB venture capital by contract prior to 1996 would be allowed to fully utilize those credits.

            Moving ahead, the bill prohibits the Oklahoma Capital Investment Board from entering into or modifying any contract authorizing or requiring the investment of any funds in a general partnership, limited partnership, corporation, limited liability company, private equity or hedge fund or any other lawfully recognized business entity. 

            After all required debt has been repaid, any profit payments to the board in the future will be deposited in the state’s General Revenue Fund under Senate Bill 1159.

            The reason for the long-term phase-out of the program is to allow business entities that received tax credits under good-faith efforts in the past to use those credits as promised. The legislation is designed to reduce the likelihood of the credits being sold in a greater amount than originally designed, which could occur if the program was ended immediately. Instead, it is hoped that the venture capital program will come to an end while minimizing the state’s revenue loss and ensuring that tax credit purchasers are protected based on contracts executed in the early 1990s.

            The legislation will steadily reduce the state’s exposure through the program by preventing the issuance of new credits as the old ones are expended or expire.

            Senate Bill 1159 passed the Oklahoma House of Representatives on a 67-27 vote. The bill now returns to the state Senate for consideration.

House Approves Reform of Insure Oklahoma

Members of the Oklahoma House of Representatives have approved a bill directing the Oklahoma Health Care Authority to create a sliding scale for the state’s premium assistance program (Insure Oklahoma). Under the legislation, premium assistance provided to employees will decline as their salaries increase.

Insure Oklahoma is funded by dedicated revenue received from Tobacco Tax along with matching Federal Medicaid dollars.  The program provides those funds as a match to small employer contributions for health insurance, making coverage an option at many businesses that would otherwise struggle to afford employee coverage.

By requiring more buy-in from employees as their salaries increase, the legislation will free up money to help other low-income workers who might otherwise not be able to afford insurance while making too much to qualify for Medicaid.

Senate Bill 1397 passed the Oklahoma House of Representatives on an 82-0 vote and is now expected to go to a conference committee.

House Votes to Reform Pet Breeder Regulation

House lawmakers have voted to approve legislation abolishing the Oklahoma State Board of Commercial Pet Breeders.

Senate Bill 1919 would put the state Department of Agriculture in charge of regulating dog kennels, transferring that power from the Board of Commercial Pet Breeders, which would be eliminated.

The current system of regulation had become wildly controversial because the Pet Breeder Board imposed rules more stringent than federal regulations and threatened many businesses with significant fines and closure.

Senate Bill 1919 passed the Oklahoma House of Representatives on an 86-1 vote. The bill now returns to the state Senate.

House Approves Personhood Resolution

A resolution approved by the Oklahoma House of Representatives declares that a fetus or embryo is a person and that all people are created free and have inalienable rights.

            House Resolution 1054 declares that a person means 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. It also declares that all persons are created free and have inalienable rights.

            Although the resolution does not have the force of law, it declares the official position of the House. The bill’s author said the resolution does make a statement to speak for those who cannot speak for themselves.

            House Resolution 1054 was approved by a vote of 74-13.

Governor Signs Privacy Bill

Legislation that makes information on the deferred deposit lenders’ database confidential and exempt from open record requests has been signed into law by Governor Mary Fallin.

            Senate Bill 1082 states that information contained in the deferred deposit lenders’ database shall be confidential and exempt from disclosure under the Oklahoma Open Records Act.

            Under the legislation, the database may still be accessed by deferred deposit lenders to verify whether a transaction is outstanding for a particular person and by the Department of Consumer Credit for regulatory purposes.

Human trafficking bill signed into law

A measure to better protect youth from human trafficking was signed into law this week.  House Bill 2518 strengthens Oklahoma’s human trafficking laws in the hopes of deterring the industry in the state.

Unfortunately, Oklahoma’s location along the I-40 and I-35 corridor makes it a prime location for trafficking people from Mexico and Texas port cities.

Officials with U.S. Immigration and Customs Enforcement say that human trafficking is one of the fastest growing crimes in the country.  It is estimated that over 300,000 young girls in the U.S. are enslaved in human trafficking each year and that number is expected to increase in the future.  

            House Bill 2518 modifies the definition of “human trafficking for commercial sex” to include the recruiting, enticing, harboring, maintaining, transporting, providing, purchasing or obtaining, by any means, a minor for purposes of engaging the minor in a commercial sex act. 

            Currently, under Oklahoma law if a minor consents to a sex trafficking recruiter then that recruiter is provided some legal protection.  Under HB 2518, consent of a minor cannot be used as a defense in court. 

            Furthermore, under current law sex traffickers can only be penalized if they recruit through fraud, deception or coercion.  Under the new law, anyone found recruiting for sex trafficking, regardless of how they do it, will be penalized.

            House Bill 2518 goes into effect November 1, 2012.

Bill to Encourage Charitable Clinics Signed into Law

Legislation signed into law would encourage greater access to health care in the form of charitable clinics.

            House Bill 2521 redefines a free clinic as a charitable clinic and limits liability for volunteer physicians and other health care providers working at the clinic. The legislation defines a charitable clinic as a nonprofit entity organized for the purpose of providing health care services at no charge or for a minimal fee.

Bill to Sell Unneeded State Properties Signed into Law

Legislation recently signed into law authorizes the sale of unneeded state properties and directs that the money generated be used to maintain other buildings.

            House Bill 2262 creates a Maintenance of State Buildings Revolving Fund, which will receive the revenue generated by proceeds from the sale of state-owned land and buildings. Money in the fund would then be used to maintain and repair other state properties and buildings.

            In addition, the bill requires that the state’s Long Range Capital Plan include an index ranking state buildings based on maintenance needs. Money in the Maintenance of State Buildings Revolving Fund would be allocated to projects based on those with greatest need.

            House Bill 2262 builds on the Oklahoma State Government Asset Reduction and Cost Savings Program, a measure enacted last year. That legislation required the Director of the Department of Central Services to identify 5 percent of the most underutilized state-owned properties on a yearly basis with an eye toward liquidating them.

            There are thousands of state-owned properties, according to recent estimates.

House Approves Personhood Resolution

A resolution approved today by the Oklahoma House of Representatives declares that a fetus or embryo is a person and that all people are created free and have inalienable rights.

            House Resolution 1054, by state Rep. Steve Vaughan, declares that a person means 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. It also declares that all persons are created free and have inalienable rights.

            “A majority of House lawmakers are pro-life and wanted the opportunity to declare their position today,” Vaughan, R-Ponca City, said. “This resolution had bipartisan support and passed with an overwhelming majority of support in the House. I was pleased by the support of my colleagues.”

            Although the resolution does not have the force of law, it declares the official position of the House. Vaughan believes that it does make a statement to speak for those who cannot speak for themselves.

            “The resolution helps keep a promise that I would stand for the sanctity of life,” said Vaughan. “I am proud to honor that commitment.”

            House Resolution 1054 was approved by a vote of 74-13.

House Approves Heartbeat Informed Consent Act

The Oklahoma House of Representatives voted today to provide women the opportunity to hear the fetal heartbeat prior to an abortion.

            Senate Bill 1274, by state Sen. Dan Newberry and state Rep. Pam Peterson, creates the Heartbeat Informed Consent Act.

            “Thanks to advances in modern medicine, we’ve gone from the days when people claimed a baby was ‘just a clump of cells’ to being able to see the truly astounding process of development in the womb,” said Peterson, R-Tulsa. “This legislation simply ensures that a woman is given the opportunity to assess that information. Our laws should not be stuck in the 1950s when it comes to medical issues.”
            Senate Bill 1274 would apply to situations where the unborn baby is eight weeks or older, and the woman would have the choice of whether or not to hear the heartbeat during a standard pre-procedure exam.

            “It is important to ensure informed-consent rights,” Peterson said. “There’s a much greater array of medical data now available to women, and we should not allow them to be denied access to that knowledge.”

            Senate Bill 1274 passed the Oklahoma House of Representatives on a bipartisan 75-12 vote.

            Peterson noted the bill is in keeping with U.S. Supreme Court rulings. In Planned Parenthood v. Casey, the court’s majority declared, “In attempting to ensure that a woman apprehend the full consequences of her decision, the State furthers the legitimate purpose of reducing the risk that a woman may elect an abortion, only to discover later, with devastating psychological consequences, that her decision was not fully informed…”

            “This legislation simply gives a woman the opportunity to hear the heartbeat of her unborn child through the use of the fetal heart monitor,” Peterson said. “A pregnant woman who enters an abortion clinic is faced with a decision that will forever change two lives.  It is for that reason the woman needs to be fully informed. Whether you're pro-life or pro-choice you should be for this bill if you do not want women misled.”

            The bill now proceeds to the governor to be signed into law.

Weekly Capitol Wrap

Lawmakers Target Drug Crime

Legislation approved by the House this week would allow a larger group of law enforcement officials to participate in anti-drug efforts.

            Senate Bill 1544 exempts state officers who are also reserve special agents for the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control from the prohibition against dual office holding.

            As a result, the legislation would allow a county officer to be dual commissioned his employer and the Oklahoma Bureau of Narcotics and Dangerous Drugs, giving local authorities greater ability to be involved in anti-drug efforts.

            Senate Bill 1544 passed the Oklahoma House of Representatives on a 65-22 vote today and now goes to the Governor’s desk to sign.

House Approves Improved Data Gathering

Legislation that would help lawmakers with appropriation and policy decisions was approved unanimously this week by the Oklahoma House of Representatives.

            Titled the Oklahoma Program Performance Budgeting and Accountability Act, Senate Bill 1451 would require state agency strategic plans to include an analysis of the appropriated level needed to achieve certain listed measures for each of the five fiscal years of the plan.

            The legislation will now return to the Senate. If House amendments are approved, it will continue onto the governor’s desk.

House Approves Bill to Increase Career Tech Opportunities

Legislation that would help increase trade-specific industry certifications was approved unanimously by the Oklahoma House of Representatives.

            Senate Bill 1056 would allow technology center school districts to establish pilot programs to increase the number of students obtaining trade-specific industry certifications. The districts would be able to spend general funds to cover the costs of trade-specific industry certification examinations and licenses related to the program of study.

            The legislation now proceeds to the governor’s desk.

Severe weather liability policy in development

House lawmakers are developing a comprehensive liability protection policy for Oklahomans who offer shelter to others during severe weather.

House Bill 2296, which would offer liability protection to mobile home park owners who allow residents to seek shelter in their offices during severe weather, was recently vetoed by Gov. Mary Fallin, who cited concerns about possible unintended consequences.

To address the governor’s concerns, House lawmakers are working on a more comprehensive liability protection policy that will be included in an amended version of House Bill 2419. The amended version of HB 2419 will offer liability protection to any individual who offers shelter to another during severe weather rather than offering protection only to mobile home park owners.

The proposed compromise measure will offer more protection to more people.

Lawmakers Send Lake Murray Lodge Bill to Governor

Legislation approved by House lawmakers would authorize $15 million for the construction of a new lodge in Lake Murray State Park.

            Senate Bill 1913 would allow the Department of Tourism to draw on the State Park Fund, which in turn receives money from mineral lease payments, royalties and other payments associated with oil and gas in state parks.

            The 12,496-acre Lake Murray State Park, the largest state-owned park in Oklahoma, currently draws an average 13,000 vacationers annually. Those visitors contribute an estimated $1 million to the economy.

            However, the existing lodge has deteriorated badly and a new facility is needed to maintain and even increase the number of visitors to the area.

            Senate Bill 1913 was approved by a vote of 75-16 and sent to governor’s desk to be signed into law.

House Votes to Increase Insurance Options

Oklahoma citizens would have the ability to purchase insurance policies from companies across the nation under legislation approved by the Oklahoma House of Representatives.

            Senate Bill 1059 would create the “Health Care Choice Act.” The measure would allow the state of Oklahoma to enter compacts with other states that allow the sale of insurance products across state lines.

            Under the legislation, the state insurance commissioner would be authorized to negotiate compacts with other states that allow insurers domiciled those states to sell accident and health coverage in Oklahoma.

Each compact would be subject to disapproval by a majority vote of both chambers of the Oklahoma Legislature, or the governor could disapprove a compact through an executive order. 

Out-of-state insurers covered by the compacts would not be required to offer or provide state-mandated health benefits required by Oklahoma law, potentially allowing less expensive basic policies to be sold to Oklahomans.

Senate Bill 1059 passed the Oklahoma House of Representatives today on a 57-35 vote. The bill now returns to the Senate for consideration of House amendments.

Severe weather liability policy in development

 House Republicans are developing a comprehensive liability protection policy for Oklahomans who offer shelter to others during severe weather.

House Bill 2296, which would offer liability protection to mobile home park owners who allow residents to seek shelter in their offices during severe weather, was vetoed Friday by Gov. Mary Fallin, who cited concerns about possible unintended consequences.

To address the governor’s concerns, House Republicans are working on a more comprehensive liability protection policy that will be included in an amended version of House Bill 2419. The amended version of HB 2419 will offer liability protection to any individual who offers shelter to another during severe weather rather than offering protection only to mobile home park owners.

“The House Republican Caucus cares about this issue and is moving forward with Governor Fallin to develop appropriate liability protection for those who open their doors to others during disasters,” said House Speaker Kris Steele, R-Shawnee. “The amended bill will address the governor’s concerns through a more comprehensive policy that meets and exceeds the intent of House Bill 2296. It will offer more protection to more people.”

Fallin plans to work with legislators to develop the comprehensive policy.

“After a thorough review of House Bill 2296, I felt that it had the potential to provide legal amnesty to individuals who encouraged the residents of mobile home parks to take shelter in structures that were unsafe. This would have the unfortunate and unintended consequence of actually putting lives in jeopardy rather than protecting them. This was obviously not the intent of the authors of this bill, which is why I vetoed the legislation,” Fallin said.

“Moving forward, I am absolutely committed to working with lawmakers on new legislation that accomplishes the intended goal of HB 2296, which is to encourage our citizens to open their businesses or homes to other citizens in times of crisis. Speaker Steele has already shared with my office an early draft of a ‘Good Samaritan’ law that not only achieves those goals, but broadens the scope of HB 2296 in a way that will positively affect even more Oklahomans,” Fallin said.

Fallin concluded: “Having just returned from Woodward, I have talked to families very recently whose ability to reach a storm shelter or sturdy building meant the difference between life and death. I will continue to do everything in my power to improve access to those safe places in times of emergency.”

On Monday, the House postponed action on an attempt to override the veto of HB 2296.

“The intent was never to block a vote on the veto override, but to ensure an informed vote on the veto override,” Steele said. “In the course of our caucus deliberations on the veto, we identified a House bill currently awaiting action in the Senate that could be amended to address the issue and secured a commitment from the governor to work on compromise language for that bill.”

Steele extended an offer Monday evening to House Democrats to work together to develop a compromise, but Rep. Eric Proctor opted instead to try to override the veto again Tuesday. The veto override attempt failed.

“A good faith offer was made to House Democrats to work on a compromise bill with Governor Fallin and they rejected that offer to work together in favor of an all-or-nothing approach with the veto override,” Steele said. “I communicated to Representative Proctor that I wanted him to take a lead on this compromise, but he declined. It’s disappointing that some would rather play politics with this issue than work collectively on a compromise. Nonetheless, we are doing our jobs and moving forward with the governor to address this issue.”

Cockroft Bill Targets Drugs

Legislation approved today would allow a larger group of law enforcement officials to participate in anti-drug efforts.

Senate Bill 1544, by state Rep. Josh Cockroft and Sen. Ralph Shortey, exempts state officers who are also reserve special agents for the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control from the prohibition against dual office holding.

“It makes no sense for it to be illegal for someone to be a county officer and commissioned by the Oklahoma Bureau of Narcotics and Dangerous Drugs,” said Cockroft, R-Tecumseh. “My legislation will allow officers to obtain a dual commission, which will increase the manpower available for anti-drug efforts. This is an important step to fighting drug crimes in our local communities." 

            Senate Bill 1544 passed the Oklahoma House of Representatives on a 65-22 vote today and now goes to the Governor's desk to sign.

Weekly Capitol Wrap

Below is a list of bills and issues that the Oklahoma House of Representatives debated and voted on this week.

House Urges Congress to Adopt Balanced Budget Amendment

            House lawmakers voted this week to urge Congress to adopt a Balanced Budget Amendment to the U.S. Constitution.

            Senate Concurrent Resolution 33 declares that the Oklahoma Legislature “hereby calls upon the President and Congress of the United States of America to initiate the process of amending the Constitution of the United States to require a balanced budget annually, and to reduce both annual deficit spending levels and the national debt.”

            The resolution notes that national debt is now more than $15 trillion, an amount greater than the gross domestic product of the United States, and interest payments on the national debt now exceed $200 billion annually. The resolution also notes that the federal government has failed to approve a budget since 2009 and has not produced a balanced budget since 2001, and that the credit rating of the United States in 2011 was lowered for the first time.

            The measure states that “the fiscal policies of the United States federal government have placed our country on an unsustainable path, creating unprecedented debt, hindering job creation and threatening future generations of Americans with a diminished future” and “our nation's fiscal crisis threatens our economy and national security, has contributed to an erosion of trust in government, and exposes future generations to dire economic consequences.”

            Oklahoma has had a balanced budget amendment since 1941.

Committee Votes to Protect Second Amendment Rights

Members of a state House committee have voted to increase the legal protection of citizens’ constitutional rights.

            Senate Bill 1760 would specify that Oklahomans’ Second Amendment rights cannot be taken away during a declared state of emergency.

            Law enforcement officials reportedly seized guns from citizens who were not engaged in acts of lawlessness after Hurricane Katrina hit New Orleans, which led many states to reconsider laws dealing with an official state of emergency.

            Senate Bill 1760 amends the Oklahoma Riot Control and Prevention Act to state that “neither the governor nor any official of a municipal or state entity shall prohibit or suspend the sale, ownership, possession, transportation, carrying, transfer and storage of firearms, ammunition and ammunition accessories during a declared state of emergency that are otherwise legal under state law.” The bill would apply to situations where a state of emergency has been declared to deal with a public disorder, disaster, or riot.

            Under the bill, the Oklahoma Riot Control and Prevention Act would continue to allow the governor to issue proclamations imposing a curfew, banning the sale of alcohol, targeting individuals using explosive devices,  and other activities the governor “reasonably believes should be prohibited to help preserve and maintain life, health, property or the public peace” during a disaster or riot.

            Senate Bill 1760 passed the House Public Safety Committee on a bipartisan 12-0 vote. It now proceeds to the floor of the Oklahoma House of Representatives.

House Approves Laser-sight Bill

House lawmakers have voted to allow individuals with physical challenges to participate in hunting by using modern technology.

            Senate Bill 1420 would allow individuals with physical disabilities to use laser-sighting devices when hunting.

            The bill would apply only to a select group of Oklahomans, including those who are certified as being afflicted with paraplegia or quadriplegia. Individuals covered by the exemption would have to be accompanied by a licensed hunter on private property.

            Senate Bill 1420 passed the Oklahoma House of Representatives on a 92-0 vote. It now returns to the state Senate.

State Revenue Picture Changing

Declining natural gas prices have apparently impacted the Oklahoma economy, according to a report issued by the state treasurer’s office, which announced that total revenue collections declined in March compared to prior-year numbers.

That is the first year-to-year decline experienced in two years.

            According to the state treasurer, March collections totaled $920.6 million, which was down $2.6 million or 0.3 percent from March 2011.

            The major decline came in with gross production tax revenue, which fell 36 percent.

            Income tax collections also dropped 1.5 percent, although sales tax collections were roughly 15 percent ahead of the same month last year.

            The treasurer’s report of gross sales tax collections includes remittances on behalf of municipalities, which means the true impact on the revenue available for appropriation won’t be known until later.

Lankford Opposes President’s Supreme Court Pressure for Decision

Representative James Lankford issued the following statement after President Obama warned against “judicial activism” in the impending Supreme Court decision on the national healthcare law.

“Yesterday, President Obama took the national stage to apply political pressure on the Supreme Court to encourage them to fall into line with his understanding of the Constitution and not overturn his health insurance law,” said Representative Lankford.  “The President seems to have forgotten that the Legislative and Judicial branches are co-equal branches of government.  The Supreme Court does not work for the President; they work for the American people and have their own mandate to uphold the Constitution.  The President seems to promote the idea that if a legislature passes a bill and the President signs it, the Supreme Court should not evaluate the law’s constitutionality.  Every citizen has the right to disagree with the Supreme Court, but for the President to proactively undercut the integrity of the justices is appalling.

“The President worked to protect his signature legislation by adding to the court one of the key proponents of the law, Justice Kagan.  Now, the President has applied public pressure to further influence the Justices.  I believe our nation’s highest court has the responsibility to honor the intent of the Constitution by adjudicating free from personal bias and without pressure from any President on what is likely the most significant decision of the early 21^st century,” continued Representative Lankford.  

“If judicial activism is truly the product of a politically charged court, the President could alleviate some of the political pressure by allowing them to do their job free of pre-emptive criticism,” concluded Representative Lankford.