Weekly Wrap May 5, 2011

School Grade Gains Final Approval, Signed by Governor

Legislation requiring that Oklahoma school districts be issued letter grades based on student performance was sent to Gov. Mary Fallin and signed into law this week.

Under House Bill 1456, Oklahoma’s public schools would be given an annual grade of “A” to “F” based on student performance on state tests.

Under the legislation, annual reports would be issued giving letter grades to schools based on student performance on the Oklahoma School Testing Program.

The grades would be as follows:

•           “A”  means schools making excellent progress;

•           “B”  means schools making above average progress;

•           “C” means schools making satisfactory progress;

•           “D” means schools making less than satisfactory progress; and

•           “F” means schools failing to make adequate progress.

Under the bill, 33 percent of a school’s grade would be based upon test scores, 17 percent learning gains in reading and mathematics, 17 percent on improvement of the lowest 25th percentile of students in the school in reading and mathematics, and 33 percent on whole school improvement.

For middle school grades and elementary school grades, total school improvement will be based upon the drop-out rate, the percentage of students taking higher level coursework at a satisfactory or higher level, and any other factors selected by the superintendent of public instruction.

The legislation is based on a similar plan in Florida.

In 1999, the first year Florida issued letter grades for schools, there were 515 schools that received an A or B, while 677 received Ds or Fs. Performance continually improved until 2,317 schools received As or Bs in 2009, and just 217 received Ds or Fs.

House Bill 1456 gained final passage in the Oklahoma House of Representatives on a 59-31 vote and now goes to Gov. Mary Fallin to be signed into law.

Social Promotion Restrictions Signed by Governor

Legislation requiring grade school students to master reading skills before advancing to more challenging courses was sent to the governor and signed into law his week.

            Senate Bill 346 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.

House Approves Pension Reform

The Oklahoma House of Representatives voted this week to shore up the state’s pension systems, which rank among the worst-funded in the nation.

            House Bill 2132 would require lawmakers to fully fund any cost-of-living adjustments (COLAs) approved in the future.

            Current law assumes an automatic 2-percent COLA each year without designating a funding source.

The state’s seven retirement systems currently have $16 billion in unfunded liability, a dramatic increase compared to $6 billion in unfunded liability just a decade ago.

            To be considered actuarially sound, pension systems must have a minimum 80-percent funded status. Passage of House Bill 2123 would help improving the status of the state’s major pension systems.

            According to Legislative Actuary calculations, removal of COLA assumptions will impact the Unfunded Actuarially Accrued Liabilities (UAAL) and the Funded Ratios of the pension systems as follows: 

•           Oklahoma Teachers Retirement System- UAAL will decrease by approximately $2.9 billion and increase OTRS’s funded ratio from 48 percent to 56 percent;

•           Oklahoma Public Employees Retirement System - UAAL will decrease by approximately $1.4 billion and increase the OPERS funded ratio from 66 percent to 77 percent;

•           Uniform Retirement System for Justices and Judges - UAAL will decrease by approximately $43.4 million and increase the URSJJ funded ratio from 81 percent to 96 percent;

•           Oklahoma Firefighters Pension and Retirement System - UAAL will decrease by approximately $472.4 million and increase the FPRS funded ratio from 53 percent to 63 percent;

•           Oklahoma Police Pension And Retirement System - UAAL will decrease by approximately$414.3 million and increase the PPRS funded ratio from 75 percent to 91 percent; and

•           Oklahoma Law Enforcement Retirement System - according to officials at OLERS their Funded Ratio increase would be minimal because OLERS has a statutory provision that adjusts retiree benefits, in the place of ad hoc COLAs, based on increases in active employee pay.

            House Bill 2132 passed the Oklahoma House of Representatives today on a 64-25 vote. The bill now goes to Gov. Mary Fallin to be signed into law.

Bill imposing new consequences on child abusers sent to Governor

            Legislation that would create new penalties for child abusers was sent to the governor to be signed into law this week.

            House Bill 1549 would allow any individual who was exploited as a child in the production of pornography to “bring a civil action against the producer, promoter, or intentional possessor of such child pornography, regardless of whether the victim is now an adult.”

            House Bill 1549 passed unanimously in the Oklahoma House of Representatives on final passage and was sent to Gov. Mary Fallin to be signed into law.

Weekly Wrap April 28, 2011

Governor Signs Gun Rights Law

This week, Gov. Mary Fallin signed legislation that strengthens Oklahomans’ Second Amendment rights.

House Bill 1439 expands the right to use deadly force to business employees who have reason to fear death or great bodily harm. Previously, state law allowed individuals to use deadly force only in their homes; HB 1449 expands that right to include their place of business.

House Approves Scholarship Act for Needy Children

The Oklahoma House of Representatives voted this week to increase educational opportunity for needy children through a new scholarship tax credit program.

Senate Bill 969 would create the “Oklahoma Equal Opportunity Education Scholarship Act.”

The bill would allow a tax credit equal to 50 percent of the amount contributed to a scholarship-granting organization up to $1,000 per person, $2,000 per couple or up to $100,000 per business entity.

The total credit authorized could not exceed $1.75 million annually. 

Scholarships funded through the tax credit program would serve children from low-income families and allow them to attend private schools. The privately funded scholarships would pay up to $5,000 or 80 percent of the average per-pupil expenditure in the school district where the recipient student resides. Scholarships for special needs students under the bill would cover up to $25,000.

The measure further allows the same tax credit to any taxpayer who makes a contribution to an eligible educational improvement grant organization. For any taxpayer who makes a commitment to contribute the same amount for two additional years, the credit would be equal to 75 percent of the amount of the contribution. 

Overall, the bill provides for a maximum $5 million in annual credits allowed – $3.5 million would go to individual scholarships, while the remaining $1.5 million would fund grants to help rural schools in areas where private school is not an option.

Senate Bill 969 passed the Oklahoma House of Representatives on a 64-33 vote. It now returns to the state Senate for further consideration.

House Approves Teachers’ Retirement Reforms

Lawmakers voted this week to implement reforms that will shore up the financially troubled state teacher’s retirement fund and put it on a path to greater solvency.

Senate Bill 377 will increase the retirement age for future teachers.  The increased retirement age would apply only to those entering the Teachers’ Retirement System of Oklahoma on or after November 1, 2011.

Under the bill, career teachers whose age and years of service equal 90 would be allowed to retire at age 60 in order to receive full benefits.  Non-traditional teachers with fewer years of service could retire at age 65 with full benefits.

The changes to the Oklahoma Teachers’ Retirement System take into account changes that have occurred since plan was established in 1943. During the 1940s, life expectancy was age 64, but the normal retirement age for teachers in the system was 70. Today, life expectancy is 78, but many teachers can retire in their 50s. Offering early retirement benefits coupled with increased longevity have been significant factors to the poor funding status of OTRS.

The Teachers’ Retirement System of Oklahoma is currently one of the worst-funded public pension plans in the country at 48 percent funded with $10.4 billion in unfunded liability.

The reforms in Senate Bill 377 will help reverse that status. According to estimates, the proposed changes would produce $1.4 billion in savings over the next 30 years, and achieve even greater savings of $4.8 billion over 50 years.

Senate Bill 377 passed the Oklahoma House of Representatives today on a bipartisan vote of 66-24. The bill now returns to the state Senate for consideration.

House Approves State Gospel Song

The Oklahoma House of Representatives voted this week to make “Swing Low, Sweet Chariot” the official gospel song of the state of Oklahoma.

Senate Bill 73 officially designates the song. The bill passed the Oklahoma House of Representatives on an 89-0 vote and now goes to Gov. Mary Fallin to be signed into law.

“Swing Low, Sweet Chariot” was written in Indian Territory in 1862 by Wallis Willis, a Choctaw Freedman. The Red River reminded Wallis of the Jordan River, and the song was loosely based on the passage in the Bible that speaks of the Prophet Elijah being taken to heaven in a chariot.

Well known in the United States, the song is also part of the culture in Europe. It was adopted by the England Rugby Union fans during the last match of the 1988 season and recorded by the band UB40 for the team’s performance in the World Cup.

            Gov. Fallin has now signed the bill into law.

Legislation to Reform Medical Examiner Appeal Process Passes House

House lawmakers have passed “Chanda Turner Reform Act” to reform the process of appealing the findings of the state medical examiner’s office.

Senate Bill 250 would give the family members of the deceased one year to appeal the findings of the Board of Medicolegal Investigations. If the family members of the deceased reject the written findings of the board upon appeal, they could next appeal to the District Court of Oklahoma County. The legislation would allow the appeal of reports made before the enactment of the legislation.

Chanda Turner died of a gunshot wound at her home in Pauls Valley on July 12, 2000. Her boyfriend claimed she had committed suicide and the medical investigator at the time closed the case. The family did not agree with the findings and repeatedly requested an autopsy for almost 10 years before finally getting one.

The pathologist who conducted the 2009 autopsy ruled that the cause of death was a homicide, but was subsequently fired. Legislation enacting similar reforms passed the Legislature in 2010 but was vetoed by Gov. Brad Henry because of another provision that would have created an $80,000 administrative position he deemed inappropriate.

House Approves Anti-Discrimination Measure

Oklahoma voters will have the opportunity to outlaw state-sanctioned discrimination under legislation approved by House lawmakers.

Senate Joint Resolution 15 submits 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.”

Senate Joint Resolution 15 passed the Oklahoma House of Representatives on a 59-14 vote. It now goes to the November 2012 ballot.

House Approves New Restrictions on Telemarketers

The Oklahoma House of Representatives voted this week to impose new restrictions on telemarketers.

Senate Bill 398 amends the Telemarketer Restriction Act so that cell phone numbers and text messages are off-limits to telemarketers if a citizen is on the statewide registry for those not wishing to be contacted by telemarketers.

Senate Bill 398 passed the Oklahoma House of Representatives on a 97-0 vote. The measure will now return to the state Senate for further consideration.

Bill naming Red River Bridge for Pres. Bush heads to Gov.

A bill naming the southbound I-44 Bridge over the Red River in honor of President George W. Bush is on its way to Gov. Mary Fallin for consideration.  This week, the state House of Representatives joined the Senate in approval of Senate Bill 304 by a vote of 66 to 25. 

SB 304 now awaits Gov. Mary Fallin’s signature.

Legislation moving 2012 presidential primary heads to Governor

Following Senate passage this week, House Bill 1614 now awaits the governor’s signature. The bill would move Oklahoma’s presidential primary from February to March. New national rules adopted by Republicans and Democrats are forcing states like Oklahoma to move their primaries to March if they want to participate in the national conventions.

Under the new national rules, only Iowa, New Hampshire, South Carolina and Nevada can have February, 2012 presidential primaries. Oklahoma’s primary will be the first Tuesday in March, the earliest date allowed under the new rules.

Rail Expansion Bill Signed into Law

Gov. Mary Fallin has signed into law HB1686, the Eastern Flyer Passenger Rail Initiative.

            This measure originated as an interim study and has evolved through the process to emerge as a vehicle to advance mutual understanding of Transportation P3 (Public-Private Partnership) with the goal of extending passenger rail to Tulsa.

The Heartland Flyer presently carries passengers from Ft. Worth to Oklahoma City, and according to studies done by the Texas Transportation Institute, small towns along the route are benefiting to the profit level of $18 million in lodging, meals, shopping and entertainment, annually.

            New projects either now in development or on the drawing board for future development could benefit from exposure to the proposed Tulsa route. Chandler, Bristow and Sapulpa are directly in line to receive rail traffic.

House Passes Bill to Prevent Political Violence

Legislation that would make it a felony to willfully and knowingly enter a restricted area where state officials are being provided protection by the Department of Public Safety has passed the Oklahoma House of Representatives.

            Senate Bill 285 would also make it a felony to enter a restricted area to engage in violence or disorderly conduct and specifically mentions the Governor’s Mansion.

            The measure was filed partly in response to the shooting of an Arizona congresswoman.

            If the offender is carrying a dangerous weapon or causes bodily harm, the penalty would be a fine of $1,000 or imprisonment for up to 10 years. Otherwise, the penalty would be a fine of $500 or imprisonment for up to one year.

            Senate Bill 285 passed the Oklahoma House of Representatives on a 69-23 vote. The legislation will now return to the Senate.

Weekly Wrap April 21, 2011

New Conference Committee Process Begins, Providing Historic Transparency

Starting this week, the Oklahoma House of Representatives will have standing conference committees that hold meetings open to the public – a historic first for the Legislature.

The rules changes adopted this year dramatically increase the opportunity for public input into the legislative process and provide greater safeguards against last-minute changes escaping thorough review.

            When the House and Senate pass different versions of the same bill, the legislation is then sent to a joint conference committee where a final version is negotiated. In the past, those conference committees rarely convened in any actual meeting of the members and votes were seldom cast in public.

            Under the new process, the House has established permanent standing conference committees to handle its half of the process. Those permanent conference committees will hold public meetings and all votes will be cast in public. Advance public notice that includes a detailed listing of bills on the agenda will be required for each conference committee meeting.

            Prior to receiving a vote in conference committee, proposed versions of each bill will be publicly posted online for member and public review.

The reforms also include a hard 24-hour rule that requires a House conference committee report to be filed and posted online for a full day before it can be considered on the House floor. Previously, there was no 24-hour rule during the final two days of session.

Road Investments Paying Off

            A report released by Washington, D.C.-based The Road Information Program, or TRIP, shows that Oklahoma’s investment in roads is paying off.

            The report found that the increased road funding approved over the past five years has dramatically reduced the number of deficient bridges and possibly saved lives.

            The report shows Oklahoma has reduced the number of structurally deficient, state-maintained bridges by 32 percent - from 1,168 in 2005 to 797 in 2010. Over the last five years lawmakers have pumped an additional $700 million into the state’s transportation system and an addition $1 billion is scheduled to be provided over the next five years.

            Based on an anticipated $1.1 billion in state appropriations for road and bridge repair through 2015, TRIP projects Oklahoma will reduce the number of structurally deficient state bridges to 504 by 2015, a 57 percent reduction from 2005 levels.

            In spite of those successes, Oklahoma still has a long way to go. The state still ranks second in the nation, behind only Pennsylvania, in the number of bridges rated structurally deficient.

            The group also noted that the new funding allowed installation of median barriers along hundreds of miles of roadways, which likely reduced the number of traffic-related fatalities.

            The number of people killed in traffic accidents on Oklahoma roadways dropped from 737 in 2009 to 625 in 2010 – the lowest number of traffic fatalities in the state since 1992, according to the Oklahoma Highway Patrol.

Union Reform Headed to Governor

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.

House Bill 1593 would repeal a 2004 law that required unionization for non-uniformed employees in cities with at least 35,000 residents.

According to information provided by The Oklahoma Municipal League, the amount saved will vary from city to city but one city could save in excess of $900,000.

            The bill would not affect the four cities that had collective bargaining agreements with non-uniformed workers prior to 2004 – Oklahoma City, Tulsa, Norman and Muskogee.

            House Bill 1593 previously passed the Oklahoma House of Representatives on a 59-38 vote. This week it passed the state Senate on a 29-19 vote. It will next go to Gov. Mary Fallin to be signed into law.

Federal Law Could Result in Changes to Oklahoma’s Election System

            A federal law designed to ensure overseas military voters are able to participate in elections in their home states could result in significant changes to Oklahoma’s election calendar.

            The federal Military and Overseas Voter Empowerment Act of 2009 requires that absentee ballots for federal elections be mailed at lest 45 days in advance.

            To comply with that law and also allow time to print ballots and deal with candidacy challenges, the state of Oklahoma must have nine to 10 weeks between elections – which is less than the current amount of time between the primary and runoff elections.

            To comply with the federal law, state lawmakers are considering two options. One plan would move the primary from July to June, which would also move the filing period for office to April. If that plan is adopted state lawmakers would be filing for re-election while the Legislature is still in session.

            Another proposal would leave the primary in July (ensuring that filing occurs when lawmakers are not in session), but would eliminate runoff elections. This plan would also save some taxpayer money.

            Both ideas remain alive for consideration and are working their way through the Legislature.

Property Tax Reforms Headed to Voters

            Legislation reforming Oklahoma’s property tax laws will go before the voters next year.

            House Joint Resolution 1002 would allow Oklahoma citizens to vote to impose a 3-percent (or rate of inflation) annual cap that would limit future property tax increases.

            Under current law, property tax valuations can increase 5 percent each year.

            House Joint Resolution 1002 passed the Oklahoma House of Representatives on a 77-16 vote. It now goes to the general election ballot for 2012 to be decided by the voters.

According to an analysis by the Oklahoma Tax Commission, 42 percent of residential and commercial property parcels may be subject to a full 5 percent valuation increase at some point in future years. Reducing the growth to 3 percent would shave off $6.56 million from the growth in property tax payments by FY-14. The estimate is based on current county databases.

Governor Fallin Signs Measure Requiring Legislative Approval of Rules Changes

Governor Mary Fallin has signed into law House Bill 1044, which requires legislative approval of agency rule changes related to fee increases and scope of practice issues. 

House Bill 1044 requires legislative approval of any rule that establishes or increases fees or any rule by an agency, board or commission created by or that receives authority from Title 59, relating to professions and occupations.  If the Legislature fails to approve the rule by the last day of the session, the rule is deemed “disapproved.”

Weekly Wrap April 14, 2001

State Revenue Picture Improving

            Although Oklahomans continue to feel the impact of the national recession, state tax collections are on the upswing, indicating that Oklahoma may be finally emerging from the downturn.

            For March, total General Revenue Fund collections surpassed last year’s receipts for the same month by $37.3 million and exceeded the estimates used to develop the current year state budget by $42 million.

            In fact, the Office of State Finance reports that total year-to-date collections this year have now come within 15 percent of meeting total collection numbers through March 2008 before the recession impacted Oklahoma.

            All major tax collection categories for March increased over the same month a year ago. Sales taxes, a strong indicator of economic activity, were up 11.2 percent from March 2010 and ran 3.9 percent higher than the estimate.

The OSF report showed total, year-to-date General Revenue Fund collections are $3.541 billion, which is $142.7 million or 4.2 percent above the estimate for the fiscal year and $308.6 million or 9.5 percent above prior year collections for this same period of time.

Congressional Redistricting Plan Unveiled

            Congressional redistricting could soon be approved now that the House has unveiled its proposed map for the state’s five congressional seats.

House Bill 1527 creates the “Oklahoma Congressional Redistricting Act of 2011.” According to the 2010 Census, Oklahoma’s total population is 3,751,351; therefore, each congressional district should have approximately 750,270 people.

The proposed map makes only minor modifications to the current congressional lines while meeting the population goals specified by federal law. In fact, four of the five districts have exactly the same number of people, and the other congressional district has just one extra person. It is amazing how precise the process has become.

Congressional District 1 would be composed of Tulsa, Wagoner, and Washington counties, as well as portions of Creek and Rogers counties, totaling 750,270 people.

Congressional District 2 would be composed of Adair, Atoka, Bryan, Cherokee, Choctaw, Coal, Craig, Delaware, Haskell, Hughes, Johnston, Latimer, LeFlore, Marshall, Mayes, McCurtain, McIntosh, Muskogee, Nowata, Okfuskee, Okmulgee, Ottawa, Pittsburg, Pushmataha, and Sequoyah counties, and a majority of Rogers County, totaling 750,270 people.

Congressional District 3 would be composed of Alfalfa, Beaver, Beckham, Blaine, Caddo, Cimarron, Custer, Dewey, Ellis, Garfield, Grant, Greer, Harmon, Harper, Jackson, Kay, Kingfisher, Kiowa, Lincoln, Logan, Major, Noble, Osage, Pawnee, Payne, Roger Mills, Texas, Washita, Woods, and Woodward Counties, and a majority of Canadian and Creek counties, totaling 750,270 people.

Congressional District 4 would be composed of Carter, Cleveland, Comanche, Cotton, Garvin, Grady, Jefferson, Love, McClain, Murray, Pontotoc, Stephens, and Tillman counties, and portions of Canadian and Oklahoma Counties, totaling 750,270 people.

Congressional District 5 would be composed of Pottawatomie and Seminole counties, and a majority of Oklahoma County, totaling 750,271 people.

If approved, the Oklahoma Congressional Redistricting Act of 2011 will be effective at the beginning of the terms of U.S. Representatives elected in November 2012, provided the State Election Board is required to conduct elections for Oklahoma congressional offices according to the act.

Execution Drug Bill Sent to Governor

            Legislation that would address a problem in implementing the death penalty has been sent to the governor to be signed into law.

            The legislation authorizes the Department of Corrections to use a lethal quantity of any “drug or drugs” when the state carries out the death penalty.

            Current law requires the state to use an “ultra short acting barbiturate in combination with a paralytic agent.” Because that law is so specific, the state could face legal complications if the formula is changed.

A recent nationwide shortage of sodium thiopental recently forced the state to replace one of the drugs typically used to execute inmates.

Under House Bill 1991, that problem will not lead to any delay of justice.

Governor Signs Education Reform Bill Eliminating ‘Trial de Novo’

This week Governor Mary Fallin signed into law House Bill 1380, an education reform measure that makes it easier to dismiss underperforming teachers.

            Under the current system, tenured teachers who are dismissed by local school boards can appeal that decision in district court. The appeals process, known as “trial de novo,” assures that dismissing underperforming teachers is both a lengthy and expensive process for schools.

The Oklahoman recently reported that it cost Purcell Public Schools around $80,000 to fire a teacher later charged with lewd acts with a child.

HB 1380 eliminates “trial de novo” and reforms the system to allow locally elected school boards to let teachers go without a long and costly appeals process.

House Sends Pain-Capable Unborn Child Bill to Governor

The Oklahoma House of Representatives gave final approval this week to legislation to make it illegal to perform an abortion on an unborn child who is capable of feeling pain.

            The legislation passed with broad bipartisan support.

            House Bill 1888 creates the “Pain-Capable Unborn Child Protection Act.” The proposed law would 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 sub cortical plate are present no later than 20 weeks.

            In addition, it has been determined that by eight weeks of age an unborn child will react by recoiling from stimuli that would be recognized as painful if applied to an adult.

Research has also found that the application of painful stimuli is associated with significant increases in stress hormones in an unborn child.     That is one reason that fetal anesthesia is routinely administered when surgery is done on unborn children.

            House Bill 1888, which is one of two priority bills for pro-life groups this year, passed Oklahoma House of Representatives on 85-7 vote. It now goes to Gov. Mary Fallin to be signed into law.

Pro-life Insurance Measure Headed to Governor

Members of the Oklahoma House of Representatives voted this week to ensure that Oklahomans are not forced to fund abortions when they purchase insurance.

            Senate Bill 547 would 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 by optional supplemental coverage with a separate premium.

            Senate Bill 547 previously passed the state Senate on a bipartisan 36-10 vote. This week it passed out of the Oklahoma House of Representatives on a bipartisan 84-10 vote.

            Senate Bill 547 now goes to Gov. Mary Fallin to be signed into law.

Bill Benefiting Greenwood District Headed to House Floor

Legislation providing a tax check-off to support Tulsa’s Greenwood District is headed to the floor of the Oklahoma House of Representatives.

            Under Senate Bill 21, by state Sen. Judy Eason McIntyre and state Rep. Jabar Shumate, Oklahomans would have the option of donating money through an income tax check-off to support music festivals in the Greenwood District.

The money collected would be deposited into a “Historic Greenwood District Music Festival Revolving Fund” administered by the Oklahoma Historical Society.

            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.

            Senate Bill 21 previously passed out of the state Senate on a bipartisan 33-7 vote. It has now passed out of the full House Appropriations and Budget Committee and will next get a vote on the floor of the Oklahoma House of Representatives.

Weekly Wrap April 7, 2011

Lawsuit Reform Measures Signed by Governor

Although the session is barely past the halfway point, major pieces of legislation are already being sent to the governor’s desk and signed into law, showing that legislators are getting more work done in a shorter amount of time compared to past sessions.

House Bill 2128 caps vague noneconomic damages (commonly known as “pain and suffering”) at $350,000 in all civil actions.

Under the bill, individuals could still receive unlimited awards for actual economic damages, such as lost wages and medical expenses.

The $350,000 limit on noneconomic damages can also be lifted in cases where the defendant is determined to have acted with gross negligence or with reckless disregard.

The governor also signed Senate Bill 862, which eliminates joint and several liability, sometimes known as the “deep pocket” rule, where each and every defendant in a tort lawsuit is liable for the entire amount of a plaintiff’s damage regardless of their degree of fault. SB 862 ensures that plaintiffs seek defendants who are most at fault rather than defendants with the most financial assets.

Another measures signed into law, Senate Bill 865, requires that juries be instructed in civil cases 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.

Caps on non-economic damages have been proven to help create jobs and lower medical liability insurance premiums in other states. A 2008 study by the Perryman Group reports that after implementing non-economic damage caps, the state of Texas created 223,700 jobs, increased annual consumer and business spending by $55.3 billion, and grew state revenues by $1.4 billion. The study also reported that medical liability insurance premiums decreased by 21.3 percent and the number of lawsuits filed against hospitals decreased by 70 percent. Thirty states have now placed similar hard caps on non-economic damages, not including Oklahoma.

House Committee Advances Anti-Discrimination Measure

Oklahoma voters could soon have the opportunity to outlaw state-sanctioned discrimination under legislation approved by a House committee today.

Senate Joint Resolution 15 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.”

Senate Joint Resolution 15 previously passed the state Senate on a 31-15 vote. The measure passed the House Rules Committee today on a 10-3 vote and now proceeds to the floor of the Oklahoma House of Representatives.

State School Board Reform Approved by House

House lawmakers approved Senate Bill 435, a reform bill that would reconstitute the State Board of Education. The board would be comprised of appointments made by the governor upon election.  The members would represent each congressional district and one at-large appointment as well as the State Superintendent.  Senate Bill 435 passed the Oklahoma House of Representatives 63-35 and now returns to the state Senate.

Bill Could Give State Greater Control of Federal Funds

            Legislation advancing from committee this week would allow Oklahoma to participate in an interstate compact that would give states greater control over federal Medicaid and Medicare funds.

            Senate Bill 722 would allow Oklahoma to enter into a multi-state health care compact that would create a funding formula for the federal programs based on population and inflation. Oklahoma receives about $9.1 billion a year in Medicaid and Medicare money.

            Similar legislation has been filed this year in 11 other states and two of those states have already approved the concept.

Ultimately, the U.S. Congress would have to agree to allow the states to carry out the terms of the compact since federal money is involved.

Senate Bill 722 passed out of the House Judiciary Committee and now advances to the floor of the Oklahoma House of Representatives.

Bill Requiring Candidates to Prove Eligibility for Office Advances

Under Senate Bill 91, candidates filing with the state Election Board would be required to provide proof of identity and eligibility to hold the office

The bill also contains language requiring presidential candidates to present certified copies of a birth certificate, a U.S. certificate of birth abroad or a report of birth abroad of a U.S. citizen to suffice for proof of citizenship

Senate Bill 91 passed out of the House Rules Committee and now awaits a vote from the full Oklahoma House of Representatives.

Legislation Would End Social Promotion in Oklahoma Schools

            House lawmakers have advanced a second piece of legislation that would prevent Oklahoma schools from promoting third-grade students who cannot read at grade level. 

Under Senate Bill 345, students entering first grade in the 2011-2012 school year would be required to pass a reading test when they complete the third grade to be promoted to the fourth grade.

The legislation requires school districts to notify parents when a child has a reading deficiency and notifying them that their child could be held back if they do not improve. Public schools would be required to develop a plan to work with parents to help address a child’s reading needs.

The bill allows for aggressive intervention in the first and second grades to avoid retention in the third grade and to also help schools better address a student’s challenges over several years instead of having a “one and done” approach in the third grade.

Weekly Wrap March 31, 2011

Legislation to Save Taxpayer Dollars on Prison Health Care

Legislation approved this week by the House Appropriations and Budget Subcommittee on Public Safety would give the Department of Corrections more flexibility in how it addresses the health care needs of Oklahoma inmates.

            Senate Bill 180 would allow the Department of Corrections to contract with physicians and other providers of health care services, equipment and health care-related products beyond the professional capabilities of the agency.

            According to the Department of Corrections, if the legislation had been in effect in fiscal year 2010, the department would have saved approximately $2 million in medical costs.

            Supporters said that early treatment is usually far cheaper than the cost of addressing disease that has reached an advanced stage. By contracting with physicians, the state will be able to avoid the greater long-term medical expenses associated with prisoners.

            Senate Bill 180 now proceeds to the House Appropriations and Budget Committee for consideration.

Lawmakers Approve Tax Exemption Tradeoff

            Members of the House Revenue and Taxation Committee voted this week to trade a sales tax exemption that some have called “nonsense” for one that benefits the surviving spouses of disabled veterans.

            In an unusual move, lawmakers voted to remove a 2006 sales tax exemption granted to rock quarries and replace it with one that extends an existing sales tax exemption for 100-percent disabled veterans to their surviving unmarried spouses.

            The rock quarry sales tax exemption was originally added to legislation in the closing hours of the 2006 special legislative session.

            However, similar businesses such as sandpits and brickyards do not receive a comparable tax break.

The fiscal impact of the 2006 exemption for rock quarries was estimated at about $360,000. The impact of extending the existing sales tax exemption for disabled vets to their widows or widowers was set at some $400,000.

            The amendment stripping the rock quarry sales tax exemption from law was added to Senate Bill 46. The amended bill will now go to the House Appropriations and Budget Committee for action.

Veteran’s License Bill Advances

Oklahoma veterans would have an American flag emblem placed on their driver’s licenses beginning 2012 under Senate Bill 138.

Supporters noted that placing an American flag emblem on veterans’ driver’s licenses would make it easier for them to demonstrate to retailers that they are eligible for certain tax breaks and discounts provided to veterans.

The legislation passed unanimously in the House Veterans and Military Affairs Committee. It now goes to the full House.

Legislation to Improve Tracking of Registered Sex Offender Headed to Governor

Under legislation that now awaits Gov. Mary Fallin’s signature, sex offenders with out-of-state convictions would be required to provide local law enforcement with certified copies of their judgment and sentencing reports.

            Senate Bill 282 would require individuals subject to the Sex Offenders Registration Act or the Mary Rippy Act who have an out-of-state conviction to provide local officials a copy of the judgment and sentence within 30 days of registration in Oklahoma.

            Senate Bill 282 was approved unanimously by the Oklahoma House of Representatives.

House Sends Lawsuit Reform Bills to the Governor

The Oklahoma House of Representatives passed two bills this week to bring some sanity to the legal system.

Senate Bills 862 and 865 would eliminate joint and several liability and require that juries receive accurate information regarding tax impact on awards.

The measures are part of the Republican lawsuit reform package supported by Governor Mary Fallin, House Speaker Kris Steele and Senate President Pro-Tempore Brian Bingman.

            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 percent 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 his or her ability to pay. SB 862 would eliminate this practice, ensuring that individuals pay for their portion of fault and would not be held financial liable for another person’s actions.

The measure passed the House by a 64-32 vote.

            The House also approved Senate Bill 865 by a vote of 65-30. It 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.

            Both bills now go to Gov. Mary Fallin, who is expected to sign them into law.

House Committee Passes State Board of Education Reform

This week the House Common Education Committee passed Senate Bill 435, which would allow the governor to appoint new members to the State Board of Education. The House Common Education Committee approved the legislation on a vote of 11-4.

            Senate Bill 435 provides that governor will appoint one member from each congressional district and one member from the state at-large to the seven-member State Board of Education. Terms will be four years and each member will serve at the pleasure of the governor.

            Under the terms of the bill, the governor must make new appointments to the Board by August 1 of this year.

            The bill now moves to the floor of the Oklahoma House of Representatives.

Weekly Wrap March 24, 2011

House Begins Work on Senate Bills

            The Oklahoma House of Representatives has passed the first major deadline of the session and completed work on measures filed in the House.

            At the start of session in February, there were 1,209 bills and joint resolutions filed in the Oklahoma House of Representatives.

            By the March 17 deadline, the House passed 257 of those bills and six joint resolutions off the floor and sent them to the state Senate.

            Approximately 200 other appropriations measures also remain alive and await action in a joint budget committee.

            Now House members will begin reviewing the legislation sent to us by the state Senate, which approved 367 Senate bills and joint resolution out of the 1,016 that were introduced.

            House members have until April 14 to complete committee work on Senate bills and then have until April 28 to give Senate bills a hearing on the floor of the Oklahoma House of Representatives.

House Committee Passes Additional Lawsuit Reform Measures

The House Judiciary Committee passed two lawsuit reform measures this week that are part of a full reform package supported by Governor Mary Fallin and legislative leaders.

Senate Bill 862 and Senate Bill 865 would eliminate joint and several liability and require juries receive accurate information regarding tax impact on awards. 

            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.  Senate Bill 862 would eliminate this practice.

            Senate Bill 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.  The measure would also require that any exhibit relating to damage awards shall reflect accurate tax ramifications.

            Both measures passed 10-5 and will now be considered by the full House of Representatives.

Committee Approves Bill Banning the Use of Children in Lottery Ads

            A state House committee voted this week to ban the use of children in advertisements that promote the Oklahoma lottery.

            Senate Bill 42 would implement the policy change. Supporters said the use of children in lottery television ads is inappropriate since the kids cannot even legally play the games.

            The measure is now headed to the floor of the Oklahoma House of Representatives.

Anti-Bullying Efforts Focus of Rally

            Students from around the state participated in a rally in the Senate Chamber on March 23 to discuss legislation to address bullying and cyberbullying.

            House Bill 1461 adds cyberbullying to current state laws that specify how schools should address bullying behavior. The legislation also adds law enforcement to the list of groups that should be involved in coming up with a school’s anti-bullying policy.

The event included testimonials about the effects of bullying and cyberbullying and a call to put Ty Field name on the bill.

Field took his life at 11 years old after being bullied.

House Bill 1461 previously passed the Oklahoma House of Representatives on a 74-23 vote and now awaits 
a hearing in a state Senate committee.

Weekly Wrap March 17, 2011

Property Tax Reforms Sent to Senate

            Legislation reforming Oklahoma’s property tax laws passed out of the Oklahoma House of Representatives this week.

House Joint Resolution 1001 would impose a permanent freeze on property tax levels for seniors over 65 for as long as they own their homes.

One recent study by the Tax Foundation showed that Oklahoma has the eighth-fastest growing property tax levy in the nation.

            House Joint Resolution 1001 passed on a bipartisan 83-13 vote. It now goes to the state Senate.

House Joint Resolution 1002 would allow Oklahoma citizens to vote to impose a 3-percent annual cap that would limit future property tax increases.

            Under current law, property tax valuations can increase 5 percent each year.

            House Joint Resolution 1002 passed the Oklahoma House of Representatives on an 81-16 vote. It now goes to the state Senate for consideration.

Corrections Reform Clears House

            Legislation that would revise Oklahoma’s correction law to increase the use of alternative sentencing programs gained easy approval in the Oklahoma House of Representatives this week.

            House Bill 2131 proposes a number of reforms including changing the default sentencing structure from consecutive to concurrent terms, enhancing eligibility for community sentencing and Global Position System Monitoring programs, and limiting the governor’s role in the parole process for non-violent offenders.

            The legislation is intended to reduce taxpayer expenditures on corrections while also reducing recidivism among offenders, ultimately improving public safety.

            House Bill 2131 passed the Oklahoma House of Representatives on an 87-4 vote. It now proceeds to the state Senate.

Lawmakers Vote to Prevent Corrections Furloughs

            House lawmakers voted this week to allow the Department of Corrections to access millions of dollars sitting idle in a special fund to pay officers and avoid significant furlough days.

            Senate Bill 970 will allow the Department of Corrections to use up to $4 million from the Correctional Industries’ fund to reduce planned furlough days of corrections officers.  The DOC is currently authorized to access only $1.25 million.

            The bill’s passage will enable the Department of Corrections to reduce planned furloughs from four days a month to just one day a month. 

            The legislation also helps address critical needs in the Department of Corrections (DOC) without adding to the $500 million gap facing the state.

            Senate Bill 970 passed the Oklahoma House of Representatives on a 92-7 vote. It now goes to Gov. Mary Fallin, who is expected to sign it into law.

Lawsuit Reform Advances

            Legislation enacting lawsuit reform to reduce frivolous lawsuit seeking “jackpot justice” gained House approval this week.

            House Bill 2128 would limit noneconomic damages (so called “pain and suffering” awards) for bodily injury to $350,000.

The bill includes an exception so there is no limit on the amount of noneconomic damages in a civil action for bodily injury resulting from negligence if the defendant acted recklessly, fraudulently, or intentionally, or was grossly negligent.

Because “pain and suffering” damages involve no direct economic loss and have no precise value, it is very difficult for juries to assign a dollar value to these losses. As a result, awards tend to be erratic and, because of the highly charged environment of personal injury trials, can become wildly excessive. The reforms of House Bill 2128 would provide greater clarity and predictability for the legal system.

            The bill would continue to allow full recover for actual damages, such as medical expenses, lost wages, etc.

            House Bill 2128 passed the Oklahoma House of Representatives on a 57-40 vote. The bill now goes to the state Senate.

House Approves “Closing Fund”

The Oklahoma House approved legislation to create the Oklahoma Quick Action Closing Fund.

House Bill 1953 would allow the governor to dip into the fund to provide financial incentives to companies considering relocating or expanding in Oklahoma.

            The incentives would have to be performance based and companies receiving state funds would enter into an agreement with the Department of Commerce. The bill contains guidelines should a company fail to meet the required performance provisions.

            House Bill 1953 passed 79-17 and now goes to the state Senate.

House Votes to Reform Union Law

House lawmakers approved legislation that repeals a state law requiring collective bargaining for nonuniformed workers in nine cities.

            House Bill 1593 would repeal a 2004 law that required unionization for nonuniformed employees in cities with at least 35,000 residents.

            The bill would not affect the four cities that had collective bargaining agreements with nonuniformed workers prior to 2004 – Oklahoma City, Tulsa, Norman and Muskogee.

            The legislation would only affect nine cities.

            House Bill 1593 passed 59-38 and now goes to the state Senate.

IT Modernization Advances; Measure Could Save Millions

            The Oklahoma House of Representatives has approved legislation proposed to save millions of taxpayers dollars thought the implementation of information technology (IT) process reforms.

The reforms are part of Governor Mary Fallin’s plan to generate $190 million in savings this year – $140 million from the incorporation of the IT reforms, along with $50 million in savings from a temporary freeze on IT purchases.

            House Bill 1304 seeks to implement a report from the Capgemini consulting firm, which 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 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.

            House Bill 1304 passed the Oklahoma House of Representatives on a 52-45 vote and now to the state Senate for consideration.

Bill to combine school superintendents advances

Legislation providing financial incentives to school districts that hire the same superintendent as part of an effort to consolidate administrative functions gained House approval this week.

            House Bill 2115 would allow school districts that share administrators to receive funding from the School Consolidation Assistance Fund. The extra funding would cover up to 50 percent of the superintendent’s salary for three consecutive years up to $200,000 total.

            Cash in the School Consolidation Assistance Fund comes from the state lottery.

            The bill’s author said it is an incentive for school districts to reduce administrative costs and devote more money to the classroom.

            Oklahoma currently has 526 school districts.

            House Bill 2115 passed the Oklahoma House of Representatives on a 90-7 vote. It now goes to the state Senate.

Music Therapy Gets House Approval

Legislation that would allow licensure of music therapists and potentially increase a form of treatment for children with special needs, including those with autism, gained House approval this week.

House Bill 1462 creates the Music Therapy Practice Act. Under the legislation, the Disability Determination Services Division (DDSD) of the Department of Human Services (DHS) would have oversight of the profession, including licensure power.

 To be eligible to work as a licensed music therapist, an applicant would have to be a graduate of an approved bachelor’s degree program and successfully complete a board certification exam.

The bill declares that licensure is necessary “to safeguard the public health, safety and welfare, to protect the public from being misled by incompetent and unauthorized persons, to assure the highest degree of professional conduct on the part of music therapists and to assure the availability of music therapy services of high quality to persons in need of such services…”

House Bill 1462 passed the Oklahoma House of Representatives on an 83-12 vote. It now goes to the state Senate.

House Votes to Reduce Vending Machine Fee

The Oklahoma House of Representatives has voted overwhelmingly to roll back last year’s fee increase on vending machines, potentially helping many small businesses survive.

            Last year, lawmakers voted to triple the fee paid by vending machine operators, increasing it from $50 per machine to $150 apiece. The increase was, in part, a response to last year’s budget shortfall.

            House Bill 1634 would reduce the fee from $150 to $75.

            According to Tax Commission records, there are 54,323 vending machines across the state.

            Members of the vending machine association and soft drink bottlers have predicted the fee increase will result in a 30-percent reduction in machines on the Oklahoma market.

If that prediction is correct, the $150 fee could actually result in a loss of $6.5 million to the state once associated job reductions are included. That is a dramatic contrast with the $8.5 million increase originally estimated.

House Bill 1634 passed the Oklahoma House of Representatives on a 96-0 vote. It now goes to the state Senate.

House Votes to Increase Regulation of Abortionists

House lawmakers voted this week to increase regulatory oversight of abortion providers and increase safeguards for women.

            House Bill 1642 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.

            House Bill 1642 passed on a bipartisan vote of 89-7 in the Oklahoma House of Representatives. It now goes to the state Senate.

Bill to Improve Response to Family Challenges Advances

House Lawmaker’s have voted to streamline state services directed at preserving Oklahoma’s families

            House Bill 1220 creates the “Prevention Services Efficiency and Consolidation Act of 2011.”

            The bill declares “the prevention of family fragmentation” to be a priority of state government due to “attendant human and financial cost to the citizens of Oklahoma.”

Under the legislation, the Department of Mental Health and Substance Abuse Services would be the coordinating agency in charge of streamlining services and carrying out the act pursuant to the requirements of the Strategic Prevention Framework State Incentive Grant.

            The measure proposes utilizing an existing state board to analyze various state services that are designed to “identify, mitigate and prevent the negative social consequences of addiction, abuse, mental illness, psychological trauma, family fragmentation and dysfunction.”

            The Department of Mental Health and Substance Abuse Services would be required to develop an annual plan to combine services and improve delivery in a way that achieves a minimum savings of 20 percent overall on statewide expenditures for those services. 

            The legislation was the result of over two years of study that suggested that significant savings could be achieved.

One study, “The Taxpayer Costs of Divorce and Unwed Childbearing,” was an early catalyst that precipitated the efforts that led to House Bill 1220. That study conservatively estimated that the impact of divorce on the cost of state government (largely through public assistance programs) was as much as $430 million per year in Oklahoma.

            Research also shows children from broken homes are 12 times more likely to be incarcerated, seven times more likely to live in poverty and three times more likely to be expelled and receive lower grades. They also are more susceptible to substance abuse and mental health disorders.

            House Bill 1220 passed the Oklahoma House of Representatives on a bipartisan 93-2 vote. It now goes to the state Senate.