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ONE VOICE PRIORITIESOSU Medical Center: HB 1127
The OSU Medical Center was signed over to the Oklahoma State University Medical Center Trust on Wednesday, March 18. This is a significant achievement for the Tulsa community and the culmination of years of work for many community partners. This keeps both the Oklahoma State University Medical Center and all residencies in Tulsa. Under the plan, the state will contribute $5 million per year for the next five years to be matched with another $7 million annually in private funds raised in the Tulsa community.
The state funds will go to the Oklahoma State University Medical Authority, which will then contract with the trust for the operation of the hospital with St. John Healthcare System.
Obtaining funding for the OSU Medical Center was the number one priority on the Chamber’s agenda and the regional OneVoice legislative agenda.
The Chamber and regional partners recognize and sincerely appreciate the swift actions of the Oklahoma state legislature and the leadership of Gov. Henry.
Arkansas River Dams: SB 239
On April 27, Gov. Henry signed into law SB 239, which will finance construction of badly-needed dams on the Arkansas River.
SB 239, carried on the floor by Sen. Mike Mazzei (R-Tulsa) and Rep. Dan Sullivan (R-Tulsa), authorizes a $25 million bond issue to pay for dams for the Arkansas River at Sand Springs and Jenks and to refurbish Zink Dam. This has been a longstanding goal of our community and a top priority of the Tulsa Metro Chamber since the structure of last year's legislation to accomplish this goal was ruled unconstitutional earlier this year by the Oklahoma Supreme Court.
We believe development of the Arkansas River is critical to the continued prosperity of Tulsa and Oklahoma. We appreciate the efforts of our state legislature and Gov. Henry in enacting this important measure.
Alternative Energy Development
HB 1952, by Speaker Chris Benge (R-Tulsa) and Senator Brian Bingman (R-Sapulpa), would expand access to Compressed Natural Gas (CNG) vehicles and infrastructure through the Department of Central Services to include not only state agencies, but also municipalities, counties and school districts. A state tax credit on the purchase of a CNG vehicle and home refueling station was extended when a similar bill, HB 1949, was signed by the governor on May 22.
The legislation is part of an overall goal to craft an energy plan for the state, which will work to interject Oklahoma into any discussions of a national energy policy.
Supporting development of renewable and alternative energy sources is a regional OneVoice legislative agenda priority. HB 1952 was sent to the governor on May 22 for his signature.
LEGAL REFORMComprehensive Tort Reform: HB 1603
HB 1603, authored by Rep. Dan Sullivan (R-Tulsa) and Senate President Pro Tempore Glenn Coffee (R-Oklahoma City) was signed into law by the governor on May 21. The pro tem and speaker and their representatives were in discussions for several weeks to craft compromise language between all interested parties, and an agreement was reached on a wide array of issues.
The agreement is comprehensive and includes reforms, which will improve health care access for all Oklahomans, as well as assuring small business’ health and viability in the state.
Major points of the agreement include a cap on noneconomic damages at $400,000, except in extraordinary cases, such as gross negligence or severe disfigurement. It would create a task force to issue recommendations on the newly created indemnity fund, which would cover court awarded costs up to $20 million a year.
Comprehensive tort reform has been a top priority of the Tulsa Metro Chamber for years and has consistently been included in the regional OneVoice agenda.
“Passage of this measure is quite possibly the single most valuable, pro-business legislation of this decade,” said Mike Neal, Tulsa Metro Chamber president and CEO.
We appreciate the efforts of Rep. Dan Sullivan, Senate Pro Tempore Glenn Coffee, and all parties who put the interests of Oklahoma’s businesses and employees first.
Capping Legal Contingency Fees: HB 1602
HB 1602, by Senate Pro Tempore Glenn Coffee (R-Oklahoma City) and Rep. Dan Sullivan (R-Tulsa), would have capped legal contingency fees at 33 percent on the first $1 million award or judgment and 20 percent above $1 million, but it failed to pass the Senate by a vote of 23-23. It would have sent the issue to a vote of the people.
Workers’ Compensation Reform: SB 609
SB 609 by Rep. Dan Sullivan (R-Tulsa) would have required gubernatorial appointments to the Workers’ Compensation Court be approved by Senate confirmation. District Court judges are directly elected and Civil and Criminal Appeals Court and Supreme Court judges all appear on a retention ballot at the end of their appointed term.
This legislation would have brought about positive changes to the workers’ compensation system, ensuring the court is more accountable to the people. The legislation also eliminated two positions on the court, which currently consists of 10 judges. If the bill had become law, four of the eight judges would have been permanently assigned to cases in Oklahoma City, while the remaining four judges would be assigned to Tulsa. Currently, only one member of the 10-member court is permanently assigned to the Tulsa court.
A comprehensive change in workers’ compensation laws in our state is a OneVoice agenda priority. Unfortunately Gov. Henry vetoed this bill on April 21.
Workers’ Compensation: HB 1600
Gov. Henry vetoed HB 1600, which would have clarified workers’ compensation statutes covering surgery for a soft tissue injury. Authored by Rep. Dan Sullivan (R-Tulsa) & Senate Pro Tempore Glenn Coffee (R-Oklahoma City), HB 1600 would have corrected the flawed rule on eight-week limit on soft tissue injuries in Oklahoma’s workers’ compensation law that has been a problem for the courts since 2006. In November 2006, the Court of Civil Appeals identified a conflict in two sections of the same state statute, Title 85. Not until May 2008 did the Oklahoma Supreme Court issue an interpretation that gave heed to the legislative intent to limit soft tissue injuries to eight weeks of benefits. HB 1600 lists situations in which the eight-week limit for a soft tissue injury could be extended. The bill would have allowed a claimant who had surgery for a soft tissue injury as a result of a recommendation by a treating physician to petition the court for an extension of benefits, not to exceed 16 additional weeks. This bill was supported by the Tulsa Metro Chamber.
Small Business Workers’ Compensation: HB 1003
House Bill 1003 by Rep. Kern (R-Oklahoma City) and Sen. Bill Brown (R-Broken Arrow) alters the definition of "employer" as it applies to workers' compensation laws.
A 2007 legal opinion by our state attorney general may have inadvertently caused many family-owned businesses thousands of dollars in workers' compensation premiums. HB 1003 would expand the definition of “employer,” the effect of which would allow an employer with five or less total employees, all of whom are related by blood or marriage to the employer, to be exempt from the Workers' Compensation Act.
The Tulsa Metro Chamber supports all responsible workers’ compensation reform measures, especially those which benefit small businesses. This bill was signed into law by the governor on May 20.
EDUCATIONEducational Accountability Reform Act: SB 1111
SB 1111, by Senator Clark Jolley (R-Edmond), would have removed testing and student records from the state Department of Education and moved them into a new agency.
Currently, Oklahoma has accountability functions in the State Department of Education, which is also responsible for curriculum and instruction. It is similar to a corporation allowing the chief financial officer to also perform the annual audit – something that would never be allowed. This merely moves the accountability function to another agency. The employees and budget for these activities will also move, making the bill revenue neutral.
This legislation was the Tulsa Metro Chamber’s highest priority for education reform this year and we continue to view these changes as the most significant education reform opportunities since HB 1017 some 20 years ago. Separating student assessment from instruction will increase student achievement, and public confidence, in the education system. On April 30, Gov. Henry vetoed this legislation.
Educational Accountability: SB 222
In order to still achieve some of the important reforms included in the vetoed SB 1111, similar language was added to SB 222. The Tulsa Metro Chamber was pleased Sen. Jolley and Gov. Brad Henry agreed on new statutory language to improve Oklahoma’s educational accountability systems, both assessment and student records, in order to improve the two systems for Oklahoma educators, administrators and parents. The impact of these changes will have a very positive impact on teachers’ ability to design the best curriculum for their students, and students and parents will also be better served by a data system following student progress from kindergarten through postsecondary education and/or training. This bill passed the legislature and was sent to the governor for his signature on May 26.
Education Flexibility: SB 834
SB 834, authored by Sen. John Ford (R-Bartlesville), establishes the School District Empowerment Program. This legislation would have eliminated many unfunded mandates on local school districts, which have negatively impacted their ability to develop innovative approaches and programs. Lack of flexibility hinders the school district's ability to ensure students will master the skills and curriculum necessary to compete in a global workplace once they graduate. On May 11, Gov. Henry vetoed this bill.
Performing Arts Education: HB 1737
HB 1737 by Rep. Peters and Sen. Burrage creates the Oklahoma School for the Visual and Performing Arts. This legislation authorizes a long-sought visual and performing arts high school in Tulsa. Leaders for the proposed Oklahoma School for the Visual and Performing Arts plan to raise $20 million in private donations to pay for land, buildings and equipment for the charter school that would recruit juniors and seniors from across the state. Oklahoma State University has agreed to sponsor the school and the industrial site known as Evans-Fintube, near the OSU-Tulsa campus, has been identified as a possible location. This bill was sent to the governor on May 22 for his signature. The Tulsa Metro Chamber supports this legislation.
Teach For America: SB 394
SB 394, by Sen. Stanislawski (R-Tulsa) and Rep. Sullivan (R-Tulsa) requires teachers not under contract to notify the State Board of Education in writing within 15 days of the end of the school year if they desire to stay employed. These provisions make it possible for Tulsa to bring Teach for America (TFA) to Tulsa Public Schools and to our Educare and HeadStart programs. Teach For America brings outstanding recent college graduates and professionals of all academic majors and career interests to a community who commit for two years to teach in urban and rural public schools and become leaders in an effort to expand educational opportunity. Their mission is to eliminate educational inequity by enlisting the nation's most promising future leaders in local education. The Tulsa philanthropic community raised more than $4 million to support establishing TFA in the Tulsa Public School system and TFA is excited to be coming into Tulsa. This bill was signed into law by the governor on May 23.
Charter Schools
The Tulsa School Board has ended a legal challenge of the Oklahoma Charter Schools Act, originally filed in 2007. The board voted 6-0 to not appeal the case to the Oklahoma Supreme Court. The panel also decided to end a moratorium on new charter school applications.
Alternative Teacher Certification: SB 582
SB 582, by Sen. Clark Jolley and Rep. Tad Jones was signed into law by the governor on April 22. It expands alternative teacher certification and provides for licensure and certification of individuals eligible through the Troops to Teachers and the Passport to Teaching Programs.
The Chamber supported this legislation. This type of certification allows prospective teachers to earn state certification without enduring the expensive coursework, but rather by passing the rigorous American Board for Certification of Teacher Excellence teaching knowledge and subject area exams. This will ensure that talented but uncertified applicants are encouraged to enter the teaching profession, with the goal of recruiting the highest-quality teachers for our children.
ECONOMIC DEVELOPMENTEconomic Development: SB 909
SB 909 by Sen. Mike Mazzei (R-Tulsa) and Rep. Dan Sullivan (R-Tulsa) is a bill to offer enhanced incentives for job creation in Oklahoma. It was signed into law on May 23.
Under current Oklahoma law, employers can qualify for Quality Jobs tax rebates if they create new jobs with a minimum payroll of $2.5 million. Employers also have the option of applying for tax credits if they invest $40 million in the state. However, in about eight other states, they can take advantage of both at the same time, which they cannot currently do in Oklahoma. This legislation levels the playing field by allowing existing and new businesses in our state to take advantage of both the rebates and credits if they meet the criteria for payroll and job creation.
In particular, this bill will allow the Holly Corporation, which is purchasing Tulsa’s Sunoco Refinery, to upgrade operations so it can maintain the 400 high-paying refinery jobs and add new jobs in the future.
The original Quality Jobs Act has created about 400,000 new jobs in Oklahoma, and other states have since emulated this successful incentive tool. Some have even gone a step farther by coupling it with additional tax credits. SB 909 will help Oklahoma remain competitive with those states.
Economic Development: HB 2067
HB 2067, by Rep. Skye McNiel (R-Bristow) and Sen. Todd Lamb (R-Edmond) creates a program allowing the Oklahoma Development Finance Authority (ODFA) to issue bonds for joint local government projects. It allows two or more local government entities to pool bonds issued through the ODFA for various infrastructure and economic development projects.
This measure would greatly benefit municipalities that may not otherwise have access to such bonds. The language was changed to make it budget-neutral to the state, thus improving the overall legislation. This bill was signed into law by the governor on May 26.
Economic Development: HB 1786
HB 1786 establishes a program to capture growth in sales tax revenue to be used by local governments for qualified infrastructure projects for a period of five years. The revenue can only be used for actual direct costs for capital projects consisting of tangible personal property associated with development specifically undertaken by local or county governments. The Senate Conference Committee report was submitted on May 21 and it has not yet been signed into law by the governor.
Economic Development: SB 907
SB 907 by Senate Pro Tempore Glenn Coffee and House Speaker Chris Benge seeks to identify a continuing source of funding for the Economic Development Generating Excellence Trust Fund, also known as EDGE. It would ensure that revenue not spent in the EDGE fund in one year could be carried over to the next year.
This fund is important to our entire state. It helps bolster Oklahoma’s long-term economic growth by investing the earnings from the EDGE endowment in the state’s knowledge infrastructure, including technology-based research and development, commercialization of technology and entrepreneurial business successes attract capital. It helps to create more high-paying jobs in our state and expand and diversify the state’s economy. This bill is currently in conference committee. We will continue to monitor the status of this important legislation. Since the conferees were unable to agree on final language, this bill did not become law this session.
Elimination of sales tax exemptions/income tax exemptions: SB 430
Sen. Mike Mazzei (R-25) introduced legislation that relates to sales and income tax exemptions, deductions and credits. This bill particularly affects Oklahoma’s museum and tourism industry by diminishing the sales tax exemptions now allowed for museums accredited by the American Association of Museums. Due to legislative procedures, this bill became dormant pursuant to the rules on February 20 and did not become law.
Downtown Ballpark
Legislation passed the Senate this session, which endangered ONEOK Field’s funding mechanism. The Tulsa Metro Chamber continues to support the new ballpark and the use of traditional assessments in order to build it. The onerous language was removed from HB 1424 and the bill was signed into law by the governor on May 21.
QUALITY JOBSQuality Jobs Act
State Rep. Mike Reynolds (R-Oklahoma City) and state Sen. Randy Brogdon (R-Owasso) asked the Office of the Attorney General to issue an opinion on the constitutionality of certain provisions of the Oklahoma Quality Jobs Act. They have asked if the Department of Commerce can constitutionally “bind the state of Oklahoma to payments beyond one fiscal year” under the Quality Jobs Act without violating the balanced budget requirement of the state constitution.
The Tulsa Metro Chamber has consistently supported the Quality Jobs Act, which provides tax incentives to certain businesses for multiple years based on the creation of new employment in Oklahoma. We believe, given the tax incentives of surrounding states, Oklahoma is at a distinct disadvantage without such tools. We will continue to monitor this issue closely.
Quality Jobs: SB 938
SB 938 by Sen. Mike Mazzei (R-Tulsa) and Rep. Dan Sullivan (R-Tulsa) creates the 21st Century Quality Jobs Program that targets high impact jobs in 21st century growth industries.
This bill targets knowledge-based employment opportunities by focusing on areas such as scientific and technical services, finance and insurance, as well as health care and alternative energy. Companies creating the jobs specified in SB 938 would be eligible to receive a quarterly cash rebate of up to 10 percent of new taxable payroll if they achieve wage and performance job creation targets. According to the Oklahoma Tax Commission, the incentive program would be revenue neutral.
This is an important bill for improving the number of quality jobs in the Tulsa region and is a Tulsa Metro Chamber priority, in addition to the OneVoice agenda. It was signed into law by the governor on May 23.
TRANSPORTATIONBridge Repair: SB 832
SB 832 by Sen. Brian Bingman (R-Sapulpa) and Rep, T.W. Shannon (R-Lawton) would create a partnership between the Oklahoma Turnpike Authority and county governments to repair functionally obsolete and structurally deficient county bridges over turnpike systems. These bridges represent some of the most dangerous infrastructure we have in Oklahoma.
The OTA would designate 10 percent of their Capital Improvement Fund (approximately $5-6 million annually), money that would not otherwise be dedicated to county bridges, to create a funding pool available for counties. Projects would require an application with final selection being based on objective criteria such as sufficiency rating and traffic count. This bill was signed into law by the governor on May 23.
QUALITY EVENTSOklahoma Quality Events Bill: HB 1529
Rep. Guy Liebmann (R-82) introduced a bill to allow Oklahoma to be more competitive in the area of attracting major quality events to the state. This bill would allow any county or incorporated city through its governing body to host or assist in the presentation of a quality event. On February 27, this bill became dormant pursuant to the rules and thus did not become law.
HEALTHHealth Regulations: SB 572
SB 572 was signed into law by the governor on May 6. This legislation, introduced by Sen. Brian Crain (R-Tulsa) and Rep. Ron Peters (R-Broken Arrow), prohibits local health regulations from being more stringent than state law.
This is legislation the Tulsa Metro Chamber supported and has watched closely because of its impact on local restaurants. It can be very difficult for restaurants to have a clear understanding of whether they are in violation of a municipal health code versus state regulations. We applaud the efforts of the authors of this legislation, the state legislature and Gov. Henry in ensuring the consistency of these regulations for local business owners.
Insure Oklahoma: HB 2026
Gov. Brad Henry signed House Bill 2026 into law, which will allow people to sign up for the Insure Oklahoma program at the point of delivery of healthcare services.
The program, which has been a national model for several other states, is a successful public-private partnership giving premium assistance to small business workers and employers. The legislation is based on the work last interim in the bipartisan House Health Care Reform Task Force, whose members sought ways to reduce Oklahoma’s high number of uninsured. The task force released a report unanimously endorsed by the Republican and Democrat members alike. In addition, HB 2026 establishes the Oklahoma Exchange, a Web site designed to assist, inform and empower individuals seeking to enroll in an affordable insurance plan.
Under the program, participating employers and employees pay portions of health insurance premiums with the state picking up the rest of the costs.
The state pays 60 percent, employers pay 25 percent and employees pay 15 percent.
The bill also allows greater flexibility in options for standard health benefit plans.
The measure will enable providers to offer basic, preventive plans with catastrophic coverage by relaxing mandates so that more low-cost choices can be offered to uninsured Oklahomans.
We greatly appreciate the House Speaker Chris Benge, who formed the interim task force, and for all state lawmakers who helped the bill reach this point.
STATE BUDGETBudget Deal Announced
Gov. Brad Henry, House Speaker Chris Benge and Senate President Pro Tempore Glenn Coffee announced a budget agreement that protects the four core functions of government, including education, health care, public safety and transportation. Those four areas are at least held harmless in this agreement, all while not tapping the state’s Rainy Day fund, leaving about $600 million in place for future needs if necessary.
Even with the help of stimulus funds, which helped protect a number of priority areas, cuts to many worthy agencies and programs were necessary. Most agencies, including the House, Senate and Governor’s Office, received a 7 percent cut in this budget agreement. Common and higher education will experience a nearly 2 percent increase compared to last fiscal year, which is expected to prevent the need for increased tuition. Transportation and health care also see increases over last year’s budget, and corrections, veterans’ affairs and Career Tech are all held harmless under the agreement.
Although cuts were necessary, a minimal impact will be felt to critical state agencies so that core services remain intact. The plan also maintains the commitment to roads and infrastructure, which will help grow Oklahoma’s economy and create jobs.
OTHER TOP ISSUESJohn Hope Franklin Race Riot Memorial: HB 1077
A bill, by Rep. Lucky Lamons (D-66) and Sen. Judy Eason McIntyre (D- 11), to transfer all property related to the 1921 Race Riot held by Oklahoma Historical Society to the city of Tulsa was signed into law by the governor on May 22.
The state of Oklahoma currently has control of those assets, but Tulsa officials could soon receive control of all historical assets under this legislation as plans are being developed for the John Hope Franklin Reconciliation Memorial and Museum in Greenwood.
English-Only: HJR 1042
The state legislature passed HJR 1042, a constitutional amendment declaring English is the "common and unifying language" of Oklahoma.
It was originally called an "English Only" bill. Sen. Anderson, the sponsor of a rival plan stating English is Oklahoma's "common language," was dropped in the compromise. The compromise will bar state driver's license testing in Spanish.
It makes exceptions for documents federal law requires be made available in other languages. Chad Smith, Cherokee Nation principal chief, said the compromise version "lacks the spiteful nature of the House version."
The Chamber supports this compromised language. We opposed the "English only" legislation originally introduced in the House, which would bring negative national and international attention to our state, portraying Oklahoma as restrictive to other cultures and unreceptive to international business and visitors. This compromise is a major step to resolving this issue. We greatly appreciate President Pro Tempore Coffee, Sen. Bingman and Sen. Anderson for their efforts on this issue. This joint resolution was filed with the secretary of state on May 7 to be sent to a vote of the people.
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