Weekly Wrap May 28, 2010

Lawmakers Finish Session

The 2010 legislative session adjourned on time this week as we completed work on both budget and policy issues. Among this year’s highlights are the following items.

GOVERNMENT MODERNIZATION

Transparency Website to Provide More Information

Legislation requiring further detailed disclosure of state expenditures on the state’s transparency website was sent to the governor.

            House Bill 3422 would make state expenditures more transparent and available online, allowing the public to see exactly where their tax dollars are being spent.

The bill:

• requires that all purchases made with state funds be disclosed on the online database, regardless of the amount of the expenditure 
• requires that each individual expenditure be listed separately instead of being lumped together as one purchase (for example, instead of listing several purchases under ‘office expenses,’ detail would be required for each item purchased) 
• requires that the information provided on the website be searchable, either by using the name of the recipient, the entity making the purchase, or the date of the expenditure 
• requires that the data provided on the website be in a format users can easily export into a separate document 
• requires that the Office of State Finance create an online archive database where users can access data older than 18 months

Tax Credit Recipients to Be Identified

We passed legislation requiring the Oklahoma Tax Commission to prepare and maintain a list of all taxpayers who have claimed any tax credit, which will also be included on the state’s taxpayer transparency website.

The tax credit information will include the identity of all taxpayers or organizations having any part in the chain of custody of the tax credit, and will also be searchable and downloadable. The bill would make the tax credit information available beginning with the 2011 tax year.

Medical Examiners Office to Move

The state Medical Examiner’s Office would be allowed to move near the world-class University of Central Oklahoma’s Forensic Science Institute if legislation passed by the House becomes law.

Senate Bill 738 would require that the ME’s office be located in "close proximity" to the Forensic Science Institute in Edmond.

The legislation also requires the Office of the Chief Medical Examiner to obtain legislative approval before closing any satellite office, including the Tulsa branch.

Based on recommendations made earlier this year by Health Commissioner Terry Cline, the bill also modifies the membership of the Board of Medicolegal Investigations, outlines the qualifications and duties of the Chief Administrative Officer and allows the CAO to hire a transition coordinator to oversee the transition of the office to Edmond.

The legislation passed the House with a vote of 58-40 and now goes to the governor for final review.

OBAMACARE REJECTED

The Legislature passed several bills this session opposing the federal takeover of our health care system and personal health decisions.

            During the final week of session, legislators voted to give Oklahomans an opportunity to change the state constitution to opt out of a federal health care mandate requiring them to purchase expensive health care policies.

            Senate Joint Resolution 59 will appear on the Nov. 2 ballot and, if approved, would prohibit any penalty for failure to purchase insurance and allow doctors to continue to accept direct payment.

            The constitutional amendment bypasses the governor, who vetoed an earlier statutory change to block the federal health care mandate.

            Senate Joint Resolution 59 is based on American Legislative Exchange Council’s model Freedom of Choice in Health Care Act. The measure has already been enacted in statute form by the Virginia, Idaho, and Arizona legislatures, and constitutional amendments will appear on the Arizona and Florida ballots. Statutory measures have also passed one chamber in Missouri and Tennessee, and active citizen initiatives are underway in Colorado, Michigan, and Mississippi.

Just because Congress passes a law does not make that law constitutional, and we have every right as a state to challenge the new federal health care law. The federal takeover will raise the cost paid by the state of Oklahoma above what we can afford, especially in light of our current budget difficulties. The new federal law also ignores state efforts to reduce the number of uninsured and create systems of health care for our citizens. Oklahomans know what is best for Oklahoma.

OTHER HEALTH CARE ISSUES PASSED

• Legislation Streamlining Health Insurance Services for State and Education Employees Goes to Governor

            Senate Bill 2052 consolidates the Oklahoma State and Education Employees Group Insurance Board and the Oklahoma Employees Benefits Council into one entity called the Oklahoma Health and Wellness Board.

            The legislation also requires a competitive and winner-take-all bidding process for a statewide HMO for state employees, in addition to current PPO insurance offerings. This change will work to lower the cost of an HMO plan for state employees through volume purchasing and decreased administrative costs, and will in turn bring the state employee benefit allowance more in line with actual health insurance costs.

            So as to not negatively impact existing state employees, the state employee benefit allowance is frozen, and will be indexed to the cost of the basic HealthChoice insurance plan.

The Oklahoma Education Association and the Oklahoma Public Employees Association have both endorsed the bill.

            Currently, the benefit allowance is calculated based on an average of all the current insurance plan offerings, including two HealthChoice options and multiple HMO plans.

            Though the majority of state employees select one of the HealthChoice plans, the more-expensive HMO plans drive up the benefit allowance to a level often above the actual cost of the employee’s health insurance costs.

            The legislation also directs the new board to create a wellness program for state employees and requires the board to spend surplus funds on wellness programs, health savings accounts (HSAs) or flexible spending accounts (FSAs). Utilization of HSAs, FSAs and successful wellness programs have been proven to contain the growth of rapidly increasing health care costs by encouraging personal responsibility and better health outcomes.

            Finally, the bill requires an annual ongoing savings of 15 percent on administrative overhead and directs the board to eliminate any duplicative positions, services or assets.

            The bill passed the House with a vote of 87-9 and now moves to the governor for final review.

OUT-OF-STATE INSURSERS CAN SELL INSURANCE IN OK

Under new legislation, the insurance commissioner could negotiate compacts with other states to allow out-of-state insurers to sell insurance in Oklahoma.

           Senate Bill 2046 increases the availability of health insurance coverage by allowing insurers authorized to offer insurance in other states to offer accident and health policies in Oklahoma. The legislation authorizes the insurance commissioner to negotiate compacts with other states that must include consumer protections and that are subject to disapproval by a majority vote of both legislative houses or the governor.

            The bill also requires compacted out-of-state insurers to be subject to premium taxes and authorizes high risk pools to be funded from those premiums.

            Senate Bill 2046 passed 89-8 and now awaits the governor’s signature.

PUBLIC SAFETY ISSUES

Option to Jail Time Passes

Legislation was passed to encourage re-entry and diversion program as opposed to jail time for nonviolent female offenders to allow them to receive rehabilitative services while maintaining contact with their children.

Legislation Would Allow Law Enforcement To Impound Uninsured Vehicles

House Bill 2331 would allow law enforcement, upon making a traffic stop, to seize an uninsured vehicle and have it towed to an impoundment lot until it can be legally redeemed by the owner.

The legislation would take advantage of a recently activated instant-verification system available to law enforcement officers.  The system allows officers to determine within seconds of a traffic stop if vehicles are covered by qualifying liability insurance. 

The instant verification system, ordered by an act of the state legislature in 2006, has been created through cooperation of the insurance industry and the State of Oklahoma.  It is now fully operational and has been available to law enforcement for several months.  Up to this time, however, law enforcement has had no power to seize an uninsured vehicle.  Many times the uninsured driver who was the cause of an accident would be allowed to drive away from the scene while the innocent victim, whose car was disabled in the accident, was towed by a wrecker.

House Bill 2331 passed the Oklahoma House of Representatives 93-3 and the Oklahoma Senate 41-4. It now awaits the governor’s signature.

TRANSPORTATION

Even with the severe budget climate, we cannot kill the momentum we have generated in recent years when it comes to transportation funding. This session we worked trying to keep the eight-year ODOT plan whole, including through the use of bond financing. After decades of neglect, we are investing in our infrastructure, which is an economic development tool in our state. Transportation has been one of the core functions of government that needs to be protected from cuts as much as possible.

EDUCATION

Many education accountability reforms Republicans have been pushing for years were passed.  Including, the expansion of charter schools and performance pay for teachers. Education is a workforce driver, and to attract quality jobs to our state, we have to have a well-educated workforce. Education was also been identified as a core function of government and was shielded from cuts as much as possible.

Teacher Performance pay

The House passed legislation establishing an evaluation system that will help determine, through transparent and fair measurements, how our schools, teachers and students are truly doing in an effort to improve student learning and outcomes.

            Senate Bill 2033 allows districts to adopt a salary schedule that provides additional compensation for teachers and administrators who help improve student achievement.

            The legislation sets up certain criteria under the newly-created Oklahoma Teacher and Leader Effectiveness (TLE) Evaluation System that must be included in any performance pay plan, but outside of those requirements, the district can set up its own plan subject to approval of the state Department of Education.

            Under the plan, incentive pay will remain optional for districts.

            Any incentive pay plan will be based not only on the individual teacher evaluation system, but also on team success in improving school, grade level or subject area achievement.

            Before a school district can implement an incentive pay plan, it must develop the plan using a collaborative planning process involving stakeholders, including teachers and school leaders; place the plan on agenda for public comment at a meeting of the district board; submit the plan to State Board of Education for review; and the State Board must approve or reject plans within 60 days.

            Another reform included in the legislation requires teachers meet new standards before attaining ‘career teacher’ status. Additionally, principals will be held accountable for ensuring success in their schools.

            Finally, schools consistently listed as persistently low-achieving for at least four consecutive years will be required to take corrective action to improve student achievement.

            The bill passed the House with a vote of 75-25 and now goes to the governor for final review.

Law Easing School Mandates Passes

Legislation directing more money into school classrooms during this budget shortfall passed.

            House Bill 3029 includes the following provisions for the next two fiscal years:

1. Suspends library media expenditures

2. Eliminates financial penalties for any district given a deficiency in accreditation status.

3. Exempts districts from having to convene or participate in any advisory councils (excluding councils or committees required by federal law or regulation)

4. Allows districts to elect to not adopt, participate or offer professional development programs

5. Freezes only new applications for the National Board certification process and the certification bonuses for new applicants

6. Delays the textbook adoption cycle by two years and allows districts to spend that money for purposes related to the support and maintenance of schools.

7. Allows for districts to spend any carryover money from the current fiscal year for purposes related to the support and maintenance of schools.

            These reforms have been based on recommendations from school boards and superintendents across the state.

Combined, relaxing the mandates for fiscal year 2011 and 2012 will save school districts millions of dollars that can instead be used for general operations.

            The bill passed the House with a vote of 64-36.

Legislation to Improve School Audit Oversight Goes to Governor

Legislation formulated in response to recent financial scandals at state schools with the goal of improving oversight of school audits overwhelmingly passed the House this week.

            Senate Bill 2034 would give the Office of the State Auditor and Inspector more responsibility when it comes to reviewing school district audits.

            All Oklahoma school districts are required to have their financial records independently audited each year. Currently, those audits are forwarded to the Department of Education.

            This legislation would allow the State Auditor and Inspector to authorize four special audits a year, contingent upon availability of funding, of school districts with any size average daily membership.

            Additionally, each school district would be required to forward a copy of its audit to the state auditor to determine if it complies with law.

            Under the bill, if the state auditor authorizes an audit of a school district for not complying with audit requirements, the district shall pay for the audit.

            Finally, the legislation requires that all firms entering into audit contracts with school districts carry a minimum of $500,000 accountants’ professional liability insurance or total amount of the budget being audited, whichever is less. The independent auditors hired by school districts will also be required in the bill to complete a minimum of eight hours of continuing education credit in school district accountancy.

            A recent audit of Skiatook Public Schools, conducted by the Office of the State Auditor and Inspector, found the school wasted $570,000 on over-priced supplies during a five-year period. The excess purchases included spending up to $60 apiece for $8 trash cans and $1,500 for a $500 vacuum, among other things.

            Although the Skiatook district had been audited each year and that audit sent to the Department of Education, the wasteful spending was not identified until the Office of the State Auditor and Inspector became involved.

            Senate Bill 2034 passed the House today with a vote of 98-1 and now goes to the governor for his consideration.

Restrictions on Charter Schools Removed

Legislation removing several restrictions on charter school creation and expansion passed the House this week.

            Senate Bill 1862 deletes the limit on the number of new charters that can be established in any given year, which will expand public school choices for Oklahoma schoolchildren. House Bill 2753 makes similar changes.

            Current population and average daily membership requirements for establishing charter schools will remain in place, which currently restrict charter schools to Oklahoma and Tulsa counties. But the bills create three exceptions:

• A school district with a school site on the state’s school improvement list would be able to sponsor a charter school. 
• Technology center school districts would be able to sponsor a charter school if the local school district has a site on the school improvement list.
• Comprehensive or regional higher education institutions would be able to sponsor a charter school only when the local school district has a site on the school improvement list and when the institution has a branch campus located within the charter’s school district. The institution must also have a teacher education program accredited by the Oklahoma Commission for Teacher Preparation.

Additionally, the bills require that all newly-created charter schools give enrollment preference to eligible students who reside within the boundaries of the school district in which the charter school is located and who attend a school site listed on the state’s school improvement list.

Senate Bill 1862 allows an Indian tribe to form a charter school for the purposes of native language instruction. House Bill 2753 allows the Office of Juvenile Affairs to sponsor one charter school to serve the youth in the custody or supervision of the office.

Scholarship Bill Headed to Governor

Legislation providing scholarships to special needs students was sent to Gov. Brad Henry to be signed into law.

House Bill 3393 would allow students with disabilities who have an individualized education program (IEP) to qualify for a scholarship to attend any public or private school that meets the accreditation requirements of the State Board of Education.

The scholarship program would not require new spending, but would merely redirect existing state funds that are currently spent on the student.

            Other states with similar laws include Florida, Georgia, Utah, Ohio and Arizona. The Florida program has been in place since 1999 and now serves approximately 20,000 students with special needs. House Bill 3393 closely mirrors the Florida and Georgia laws.

            The legislation received strong support from the families of special-needs children.

WORKERS’ COMP REFORM

Legislation that would improve the state’s workers’ compensation system for injured workers and reduce costs for Oklahoma employers advanced.

            The four bills comprise a bipartisan agreement that was negotiated over the course of this legislative session with House and Senate leaders, the executive branch and other stakeholders.

            The package includes House Bill 2650, House Bill 2652, House Bill 1611 and Senate Bill 1973. Together, it is estimated the bills would save businesses in the state at least $60.5 million.

            The reforms included in the bills will:

• Cap the Partial Payment Disability (PPD) rate at $323/week for five years
• Limit Permanent Total Disability to 100 percent Social Security retirement age or 15 years, whichever is longer
• Increase the power of the Physician Advisory Council and require the court to follow its recommendations unless there is clear and convincing evidence to the contrary
• Reduce the number of Workers’ Compensation Court judges from ten to eight
• Require five judges to be permanently assigned to Oklahoma City and three to Tulsa
• State that the next two positions to become vacant after July 1, 2010, shall not be refilled
• Restrict judges to one eight-year term
• Allow a former judge to reapply after three years off the Court
• Require current judges to go back through the Judicial Nominating Commission if they want to reapply
• Require Senate confirmation on any Workers’ Compensation judge
• Requires that any Workers’ Compensation judge to have not less than five years of workers’ compensation experience
• Tighten up definitions of "major cause" and "objective medical evidence"
• Allow the Supreme Court to review workers comp claims just like any other civil case
• Require that the claimant shall be in attendance unless all parties agree, and all parties shall be represented during the entire mediation by a person with full settlement authority to settle any issue of the claim
• Require all claims adjusters to have six hours of continuing education on Oklahoma’s workers’ compensation act as part of the required twenty-four hours of continuing education
• Further define what is a work-related activity for purposes of being covered under the workers’ comp act
• Clarify light-duty work and the employee’s refusal to participate
• Set up a task force to look at vocational rehabilitation for injured workers
• Unless recommended by the treating doctor at the time claimant reaches maximum medical improvement, Continuing Maintenance Medical shall not be awarded by the Workers’ Compensation Court unless there is clear and convincing evidence to the contrary
• Tighten up benefits for soft tissue injuries
• Provide for early mailing of a notice that will notify workers of free counseling services offered by the workers’ comp court
• Define an intentional tort that will allow a lawsuit to be filed in district court rather than in workers’ comp court

PRO-LIFE MEASURES

            Lawmakers advanced several pro-life measures this year, and worked in a bipartisan fashion to see them become law even after facing vetoes from the governor.

            House Bill 2780 requires that doctors provide women information obtained from an ultrasound prior to performing an abortion.

            Although ultrasounds are already routinely conducted immediately prior to an abortion, those pictures and the information obtained from the ultrasound are not provided to women.

            This legislation simply gives women as much information as possible before they make the life-altering decision to have an abortion. Too often, abortion is presented as a minor procedure.

            The governor’s veto of this important measure was easily overridden.

            The Legislature also voted to override the governor’s veto of House Bill 2656, which makes it illegal to sue a doctor claiming “wrongful birth” because the doctor failed to convince the mother to abort a child.

            This bill simply states that a doctor cannot be sued based on the opinion after birth that a child would have been better off if he or she had been aborted.

 A bipartisan coalition also voted to override Gov. Brad Henry’s veto of legislation that would enhance reporting of abortions and any resulting complications.

House Bill 3284 creates the Statistical Abortion Reporting Act and requires physicians who perform abortions to report certain information to the Oklahoma State Department of Health. The bill directs the department to publish annual statistical reports on its website.

The information obtained will be used to inform public policy decisions in the future.

The legislation specifically declares that reports cannot contain the name, address, hometown, county of residence, or any other identifying information of any individual female. The annual report will contain absolutely no personally indentifying information – only accumulated statistics.

      The questionnaire would include information on basic demographics, age of the child aborted, methods used, the reasons given for obtaining an abortion, and resulting complications.

      In addition, the question asking the reasons given for an abortion was based on a survey conducted by the Guttmacher Institute, the former research division of Planned Parenthood, hardly a pro-life organization.

      Also, women can decline to answer questions.

            The governor did sign three other bills that aim to protect life in Oklahoma.

            Senate Bill 1890 forbids an abortion based solely on the sex of the child.

Senate Bill 1891 creates the Freedom of Conscience Act, which would protect the rights of health care professionals to refuse to take part in the destruction of innocent human life.

            The legislation simply protects doctors, nurses, pharmacists and other health care workers from being forced to take a life against their will.

            Senate Bill 1902 makes it illegal for a person other than a physician to provide or administer the chemical abortion pill, RU-486, for the purposes of inducing an abortion.

ENERGY

We worked to keep Oklahoma on the forefront of the alternative energy discussions and influence national policy. We built on the successes of last year with the creation of an energy stabilization fund and renewable portfolio standard goal for our state to encourage further usage and expansion of our local resources, especially natural gas and wind energy.

OTHER MEASURES ADVANCING DURING THE FINAL WEEK OF ACTIVITY

Bill Makes Texting and Driving a Crime for Young Drivers

Lawmakers voted to make it illegal for Oklahoma teens to text while driving.

            Senate Bill 1908 would prohibit any driver operating under a learner’s permit or an intermediate driver’s license from using a hand held electronic device to talk or text when the car is in motion. 

            In addition, learner’s permit holders would only be able to drive between the hours of 5 a.m. and 10 p.m.

            Violation would result in the suspension of the driver’s license, payment of court costs and ticket fees.

            Senate Bill 1908 passed the House on a 90-5 vote and now goes to the governor to be signed into law.

Bill to Strengthen Organized Crime Penalties Heads to Governor

Under legislation headed to the governor’s desk, the attorney general and all 27 district attorneys would be authorized to initiate forfeiture actions against those involved in human trafficking, the transportation and harboring of illegal immigrants, organized voter fraud and terrorism-related offenses.

            House Bill 2983 modernizes and renames the Corrupt Organization Prevention Act to the Oklahoma Racketeering Influenced and Corrupt Organizations Act (RICO).

House Bill 2983 passed by a vote of 95-2 in the House and by a vote of 46-0 in the Senate. It awaits the governor’s signature. 

Lawmakers Ask Voters: Should Foreign Court Rulings Impact Our Rights?

Lawmakers have decided to let Oklahomans vote on a proposal that would prevent judicial rulings in foreign countries from impacting local court decisions.

House Joint Resolution 1056 places the “Save Our State” constitutional amendment on next fall’s election ballot.

      The proposed amendment to the Oklahoma Constitution would require the courts to “uphold and adhere to the law” as provided in the United States Constitution, the Oklahoma Constitution, the United States Code and federal regulations, Oklahoma Statutes and rules, and established common law.

The proposed amendment would prohibit all Oklahoma courts from considering the legal precepts of other nations or cultures, even in cases of first impression.

      The proposed amendment declares that courts “shall not consider international law or Sharia Law.”

Bill to Exempt Deployed Military Members from Vehicle Tag Renewal Fine

Legislation exempting deployed military personnel from being fined if they fail to renew their vehicle tag while deployed was sent to the governor this week.

            Senate Bill 1816 would make military personnel deployed outside the state exempt from penalty during their assignment and for 60 days after that assignment ends.

            In addition to the numerous Oklahomans who serve in other branches of the military, around 400 members of the Oklahoma National Guard are currently deployed in Iraq and Afghanistan. Maj. Gen. Myles Deering has recently said he expects some 4,000 Oklahoma National Guard soldiers and airmen will be deployed.

Senate Bill 1816 passed the House by a vote of 93-2 and now awaits the governor's signature.