Steele, Brecheen in support of Pardon, Parole SQ762

OKLAHOMA CITY – Passage of State Question 762 is a major component of Oklahoma’s effort to build a more efficient government with a stronger criminal justice system, the authors of the ballot measure said Wednesday.

SQ 762 would remove the governor from the parole process for nonviolent offenders so that the governor can focus solely on parole matters for violent crimes. Voter approval of the measure would end Oklahoma’s distinction as the only state requiring gubernatorial review of all nonviolent paroles.

House Bill 2131, signed by Gov. Mary Fallin in May 2011, contained a provision removing the governor from the parole process for nonviolent offenders. A subsequent attorney general’s opinion determined a state question would be necessary in order to make that reform, leading to the placement of State Question 762 on this year’s ballot via Senate Joint Resolution 25.

See: Fallin Concerned About Effect of Passage of Pardon, Parole SQ762

SJR 25, authored by Sen. Josh Brecheen, R-Coalgate, and House Speaker Kris Steele, R-Shawnee, won overwhelming bipartisan support during the 2012 legislative session, passing the Senate 39-1 and the House 86-8. It received more yes votes than the other five resolutions the Legislature approved for placement as state questions on this year’s ballot, making it the most heavily-supported ballot measure of the 53rd Legislature.

Via the campaign Citizens for a Safer Oklahoma, Steele and Brecheen today issued the following statements in response to the governor’s recently-announced opposition to SQ 762:

“This was good policy when the governor signed it into law last year, and it remains so today. All the facts show that a vote for SQ 762 creates a stronger, more effective criminal justice system. No other state requires the governor to review every nonviolent parole because no evidence exists that doing so actually increases public safety. Voters can confidently support this state question knowing that it is a nationally-accepted best practice that can serve as a foundation for further improvements to the parole process. I believe the parole board concerns recently raised by District Attorney Prater are being addressed, and that we should not let that situation prevent this good policy from taking effect.” 

– House Speaker Kris Steele, R-Shawnee

“Approving this state question is consistent with our shared desire to improve public safety and create a more effective, efficient government. Focusing the governor’s parole responsibilities solely on violent offenders will save tens of millions of dollars currently lost to nonviolent parole delays that can instead be used for initiatives that truly reduce and prevent crime. Parole board members will still have every offender’s entire criminal history provided to them under this reform, just as they do today. They have ample facts before them to make their decisions, just as voters have ample facts before them showing that this is a proven, smart on crime, fiscally conservative reform that deserves support.” 

– Sen. Josh Brecheen, R-Coalgate

Reaction to SCOTUS Health Care Law Decision

State Rep. Jason Nelson, R-Oklahoma City, today issued the following statement regarding the U.S. Supreme Court decision upholding the Patient Protection and Affordable Care Act. Nelson last year served as a member of the Joint Task Force to Study the Federal Health Care Law.

“I want Oklahoma to stand strong in its continuing fight against the implementation of this destructive Federal law at every turn and I will do everything I can to assist in the effort.

“Chief Justice John Marshall’s 1819 axiom, ‘The power to tax is the power to destroy,’ came to mind as I heard the news of the U.S. Supreme Court decision today upholding Obamacare on the basis that it is a tax. Clearly that power has been trained on individual and religious liberty by President Obama and Democrat Leaders in Congress.

“It is unimaginable that our Founding Fathers could have intended for the Federal government to compel American citizens to buy health insurance or pay a tax.”

Governor Mary Fallin released the following statement:

“Oklahomans have voiced their opposition to the federal health care bill from the very beginning, having approved a constitutional amendment to block the implementation of this bill in our state. We believe that, rather than Big Government bureaucracy and one-size-fits-all solutions, the free-market principles of choice and competition are the best tools at our disposal to increase access to health care and reduce costs.

“I’m extremely disappointed and frustrated by the Supreme Court’s decision to uphold the federal health care law.  President Obama’s  health care policies will limit patients’ health care choices, reduce the quality of health care in the United States, and will cost the state of Oklahoma more than a half billion dollars in the process. 

“Today’s decision highlights the importance of electing leaders who will work to repeal the federal health care law and replace it with meaningful reform focused on commonsense, market based changes.”

House Speaker Kris Steele issued the following statement:

“It’s unprecedented to see America’s highest court rule that the federal government is more powerful than the individual despite the fact that our nation’s founding principles say the opposite. This was a deeply divided opinion, with the dissenting justices explaining precisely why Oklahoma has opposed this law from the beginning. The constitutional concerns that led Oklahoma to tread carefully with policy decisions on all elements of this law – big and small – have proven valid, given the narrowly split opinion. Our best hope now is to elect those willing to repeal this law and work together to find better solutions to the significant health care challenges faced by our state and nation.” – House Speaker Kris Steele, R-Shawnee

The Oklahoma Republican Party released the following statement:

The Oklahoma Republican Party released the following statement upon today's Supreme Court decision to uphold Obamacare - including the controversial individual mandate:

"It was over two years ago that Nancy Pelosi said, 'We have to pass the bill so you can find out what is in it.' Well, Americans did find out what was in it and they've been against this massive government-growing, budget-busting, hyper-partisan bill ever since," said OKGOP Chairman Matt Pinnell.

"The Supreme Court has provided us one more strong argument for why Governor Romney must defeat Barack Obama this November. Governor Romney has been crystal clear: he will repeal and replace Obamacare," concluded Pinnell.


The Facts About Obamacare

Nearly Three-Quarters Of Small-Business Owners Blame Obamacare For Impeding Job Creation. “As part of the explanation for the general economic pessimism, 78 percent of small businesses believe that taxation, regulation and legislation from Washington make it harder for businesses to hire more employees — and 74 percent blame the recent health care reforms passed by the Obama administration for creating an impediment to job creation.” (Tim Mak, “Chamber Poll: Small Biz Blames D.C.,” Politico, 1/18/12)

Obamacare Contained “The Largest Tax Increase Since 1993.” “Keep in mind that Mr. Obama has already signed the largest tax increase since 1993. While everyone focuses on the Bush tax rates that expire after 2012, other tax increases are already set to hit the economy thanks to the 2010 Affordable Care Act.” (Editorial, “Taxes Upon Taxes Upon…,” The Wall Street Journal, 7/11/11)

The Nonpartisan Congressional Budget Office Estimated That Obamacare Will Raise Taxes By Hundreds Of Billions Of Dollars Over Its First 10 Years. (CBO Director Douglas W. Elmendorf, Testimony, U.S. House Of Representatives, 3/30/11)

Supt. Barresi Thanks Legislative Leaders for Additional Funds

State Superintendent Janet Barresi last week thanked legislative leaders for shepherding approval of additional dollars so that school districts across the state can receive a total of $33 million for instructional and textbook purposes.

“Our first goal should be to get dollars to the classroom, where funds can help students,” said Barresi. “These additional dollars will help to lessen the impact of a tough budget year.”

Senate Bill 1535 passed the House of Representatives last week 88 to 3. The bill appropriates an additional $3 million to Oklahoma’s education budget. The money will help to offset a potential shortfall and will allow $33 million to be disbursed to districts to help them cover costs for a variety of instructional purposes. Traditionally earmarked for textbook expenses, for the past few years local districts have been given flexibility to spend the dollars on other needs.

Barresi said that same flexibility for districts would continue and that the full $33 million would be distributed to districts. Lawmakers earlier passed legislation that diverted a portion of the textbooks fund to the general education budget, something Supt. Barresi had not sought. The additional funds approved today ensures those dollars can be used for their original purpose.

“While the standstill state budget passed for education will create funding challenges, we will continue to work with lawmakers to seek supplemental appropriations in the upcoming legislative session next year,” Barresi said.

State Sen. Clark Jolley (R-Edmond), chair of the Senate Appropriations Committee; State Sen. Jim Halligan (R-Stillwater), chair of the Senate Appropriations Subcommittee on Education; State Rep. Earl Sears (R-Bartlesville), chair of the House Appropriations and Budget Committee; and State Rep. Lee Denney (R-Cushing), chair of the House Appropriations and Budget Education Subcommittee, have pledged to work to restore funding for the state education budget in the next legislative session beginning in February 2013.

“I’m grateful to Senator Jolley, Senator Halligan, Representative Sears and Representative Denney for their work on this issue — as well as to Speaker Steele and Senate President Pro Temp Brian Bingman,” Barresi said.

House won’t take up any bill that raises taxes

OKLAHOMA CITY – House Republicans on Wednesday advanced a new income tax reduction measure that ensures Oklahomans receive either an income tax reduction or no tax change at all.

HB 3038 was signed out of the House General Conference Committee on Appropriations on Wednesday. The Senate now must act to advance it from the Senate General Conference Committee on Appropriations in order for it to be heard by both chambers.

“The House has kept this issue alive and it’s now up to the Senate to deliver tax relief for working Oklahomans,” said House Speaker Kris Steele, R-Shawnee. “The next step is for the Senate to hear the bill in their committee. I hope they pass this plan and uphold the commitment we’ve all made to the people of Oklahoma to lower their taxes. The ball is in their court.”

If House Bill 3038 is implemented, a large majority of taxpayers would receive tax reductions, a small amount would see no change and no taxpayers would experience a tax increase, according to the Oklahoma Tax Commission. 

HB 3038 proposes three growth triggers that would reduce the top personal income tax rate to 4.5 percent within three to ten years, dependent upon revenue growth. Each trigger would result in a .25 percent reduction. In order for the trigger to take effect, there must be a 5 percent annual growth in collections of motor vehicle taxes, use taxes, sales taxes, income taxes and corporate taxes apportioned to the general fund (for details, see attached bill and attached summary document).

“This plan is a lot like the tax reductions Oklahoma Republicans have enacted consistently for nearly 15 years in order to lower the rate from 7 percent in 1998 to 5.25 percent today. It allows us to continue down that path in a responsible, methodical manner that won’t cause any taxpayers to pay more,” Steele said.

The new plan keeps the current tax bracket structure and personal exemption intact. The tax bracket structure change and personal exemption modification proposed in HB 3061 – the bill supported by Senate leaders – are among the reasons why some taxpayers would see a tax liability increase under HB 3061.

“The House won’t take up any bill that raises taxes. Raising taxes isn’t what conservatives stand for, it’s not what Republicans stand for and it’s not what the House stands for,” Steele said.

Rep. Leslie Obsorn, R-Mustang, said HB 3038 is a responsible way to continue the economic momentum Oklahoma has experienced in recent years.

“This is a simple, straightforward way to lower taxes without having to raise anyone’s taxes,” said Osborn, the principal House author of HB 3038. “It’s not overly complicated. It doesn’t pick winners and losers, like the previous plan. It just says when government revenues grow, tax reductions should occur. That’s what we fundamentally believe as Republicans.”

HB 3038 would not affect the proposed fiscal year 2013 state budget because it does not mandate a tax reduction in fiscal year 2013.

“It won’t cost us a cent next year,” said Rep. Earl Sears, R-Bartlesville, chairman of the House Appropriations and Budget Committee. “It’s a win-win deal. Tying these triggered tax cuts to actual growth makes them far easier to pay for because they won’t go into effect unless the state has far more revenue than it did the previous year.”

New income tax cut plan proposed by House Republicans

New proposal contains no tax increases

OKLAHOMA CITY – House Republicans plan to introduce a new income tax reduction measure Wednesday that ensures Oklahomans receive either an income tax reduction or no tax change at all.

“We came here to lower taxes for hardworking Oklahomans we’re going to do exactly that with this new plan,” said House Speaker Kris Steele, R-Shawnee. “We’re excited about this plan, we believe in this plan and we’re going to pass this plan along to the Senate. Anyone who is for lower taxes should be for this plan.”

The new plan proposes three growth triggers that would reduce the top personal income tax rate to 4.5 percent within three to ten years, dependent upon revenue growth. Each trigger would result in a .25 percent reduction. In order for the trigger to take effect, there must be a 5 percent annual growth in collections of motor vehicle taxes, use taxes, sales taxes, income taxes and corporate taxes apportioned to the general fund. The criteria for the triggers are the same criteria used for the trigger in HB 3061, the previous income tax reduction proposal.

The new income tax plan will be contained in an amended version of HB 3038 that will be introduced during the House General Conference Committee on Appropriations meeting at 1:30 p.m. Wednesday.

Speaker Kris Steele

“This plan is a lot like the tax reductions Oklahoma Republicans have enacted consistently for nearly 15 years in order to lower the rate from 7 percent in 1998 to 5.25 percent today. It allows us to continue down that path in a responsible, methodical manner that won’t cause any taxpayers to pay more,” Steele said.

The new plan keeps the current tax bracket structure and personal exemption intact. The tax bracket structure change and personal exemption modification proposed in HB 3061 are among the reasons why some taxpayers would see a tax liability increase under HB 3061.

“This House cannot fully embrace that plan because it would raise the tax liability of too many Oklahomans,” Steele said. “While the bill as a whole does represent a net tax decrease, we just can’t embrace the portion of it that leads to a tax increase. We had serious discussions about this matter and have come out more determined than ever to reduce taxes for all Oklahomans.”

House Republicans rallied in support of the new plan.

Rep. Leslie Osborn
R-Mustang

“This is a simple, straightforward way to lower taxes without any having to raise anyone’s taxes,” said Rep. Leslie Osborn, R-Mustang, the principal House author of HB 3038. “It’s not overly complicated. It just says when government revenues grow, tax reductions should occur. That’s what we fundamentally believe as Republicans.”

The new plan would not affect the proposed fiscal year 2013 state budget because it does not mandate a tax reduction in fiscal year 2013.

“It won’t cost us a cent next year,” said Rep. Earl Sears, R-Bartlesville, chairman of the House Appropriations and Budget Committee. “It’s a win-win deal.”

The earliest possible trigger would be for fiscal year 2014. Preliminary Tax Commission estimates show the cost of the first trigger as $120.5 million, $152.3 million for the second trigger and $172.9 million for the third trigger. The cost of each trigger would be spread across two fiscal years due to the difference between tax years and fiscal years.

“Tying these triggered tax cuts to actual growth makes them far easier to pay for because they won’t go into effect unless the state has far more revenue than it did the previous year,” Sears said.

Budget Deal Reached

OKLAHOMA CITY – Governor Mary Fallin and leaders in the Oklahoma House and Senate today came to a budget agreement that includes targeted funding increases for core services. Fallin and other state leaders said the proposed $6.8 billion budget was a fiscally conservative roadmap for the state that controls spending while allowing for improvements to be made in health and human services, public safety, transportation, education and other important areas of government (see attached documents for more information).

“This budget deal is a responsible, fiscally conservative agreement that appropriately funds core government services,” Fallin said. “The targeted increases we are pursuing will help to improve child welfare services, repair structurally deficient bridges, increase access to health care in rural areas, and boost resources for public safety. Additionally, this budget agreement will also ensure the state supports common education and keeps its promise to teachers by funding health benefits and bonuses.  All of these things will help to improve state government services and make Oklahoma a better place to live and raise a family.” 

House Speaker Kris Steele said the budget deal successfully limited unnecessary government growth.

“This budget moves Oklahoma forward on multiple fronts,” said Steele (R-Shawnee). “It represents a commitment to responsible fiscal conservatism by limiting unnecessary government growth while still increasing resources for government’s core services. It’s a straightforward, balanced budget that will benefit the public and private sectors alike in many different ways.”

Senate Pro Tem Brian Bingman said the proposal represented a common sense, conservative approach to budgeting.

“Oklahomans deserve a conservative budget that reflects our values,” Bingman (R-Sapulpa) said.  “Budget dollars should be targeted to fund important core functions of government—giving Oklahoma’s kids a better education, fixing our broken roads, and protecting society’s most vulnerable children from abuse and neglect. This agreement demonstrates a commitment to govern in a fiscally responsible way-- I’m proud of our common-sense, conservative approach.”

Budget agreement summary by agency

FY 2013 Budget Proposal: Funding Increase Highlights

• State Department of Education: 

• Annualization of FY 2012 $52.4 million supplemental for flexible benefit allowance for teachers and support staff and National Board Certified Teacher bonuses.

• CareerTech : 

• Annualization of FY 2012 $1.4 million supplemental for operations

• Higher Education: 

• Annualization of FY 2012 $10 million supplemental for operations.

• Military:  

• $500,000 for renovation of armories

• Transportation: 

• $99 million increase to repay FY 2012 fund transfer; ensures eight year road and bridge plan remains intact and anticipates implementation of the Bridge Improvement and Highway Modernization plan proposed by the governor in future fiscal years

• Health Department:

• $1 million increase for infant mortality initiatives
• $500,000 for Cord Blood Bank

• Health Care Authority:

• $3.080 million to fund the rural residency program to increase access to health care in rural and underserved areas.
• $57 million – Maintenance of Effort and Growth
• Transfer of Behavioral Health dollars to the Department of Mental Health - $118,492,703

• Department of Human Services: 

• $25 million to fund Pinnacle Plan reforms
• $17 million for maintenance of effort and replacement of one-time funding in FY-2012
• $1.5 million for Advantage Waiver Program to provide reimbursement rate increases for home health care providers that serve the elderly
• $1.5 million to provide Developmental Disabilities Services Division (DDSD) reimbursement rate increases
• $1 million to reduce the current DDSD waiting list

• Department of Mental Health and Substance Abuse Services:

• $5.5 million for Systems of Care Grant and for an additional crisis center. 
• $667,000 for mental health screenings to determine the risks and needs of each offender; justice reinvestment. 
• Transfer of Behavioral Health dollars from OHCA - $118,492,703

• Department of Rehabilitation Services : 

• $300,000 increase to reduce the waiting list for services

• University Hospitals Authority: 

• $3 million increase for  Tisdale center in Tulsa

• Veterans Affairs : 

• $1 million increase to increase nursing staff and reduce staff/patient ratios

• Commerce:  

• $500,000 for Base Realignment and Closure Commission

• Conservation Commission: 

• $500,000 increase for water monitoring projects

• Water Resources Board:  

• $1.5 million increase for water monitoring projects

• Attorney General: 

• $5 million supplemental for water lawsuit and $2 million for justice reinvestment grants to local law enforcement agencies

• Corrections:

• $2.9 million to close designated wings of the Oklahoma State Penitentiary in McAlester, build a lethal fence, transfer up to 800 prisoners to private beds
• $1 million for justice reinvestment

• Medicolegal Investigations: 

• $1 million supplemental and $1.5 million annualization of supplemental to obtain re-accreditation (personnel, equipment and infrastructure improvement)

• Department of Public Safety:

• $5 million for  authorization of an annual trooper academy with capacity for 40 participants

Fallin, House, Senate Leaders Unveil Tax Cut, Tax Simplification Plan

OKLAHOMA CITY -- Governor Mary Fallin and leaders in both the House and Senate today introduced a joint plan for income tax cuts and tax code simplification. The proposal lowers the top income tax rate from 5.25 percent to 4.8 percent in Fiscal Year 2013 and includes a one-time additional tax cut tied to a revenue growth trigger in FY 2015. If state revenue grows by at least 5 percent in that year, the income tax rate would be reduced further to 4.5 percent.

The joint proposal represents a tax cut of over $218 million to Oklahomans when fully implemented in FY 2014, and would cut taxes by an additional $121.4 million in FY 2015 should the growth trigger be reached. Lost revenue is partially offset by tax reforms totaling $117 million when fully implemented in FY 2014. These reforms include the elimination of 33 tax credits, the elimination of certain deductions and the elimination of the personal exemption for single filers making over $35,000 and joint filers making over $70,000 (see attached one pager for new details).     

The new plan also simplifies the tax code by dropping the total number of tax brackets from seven to three. New rates will be set at 1 percent, 3.3 percent and 4.8 percent.

“This proposal represents a significant income tax cut and an important step forward for Oklahoma,” Fallin said. “Our plan is a responsible proposal that will go hand in hand with a budget that protects and supports all core functions of government. It also delivers a substantial tax cut that will allow Oklahomans to keep more of their hard-earned money while improving the environment for job recruitment and job retention in the state. I applaud both House and Senate leaders for coming together on this issue and giving the people of Oklahoma some well-deserved tax relief.”

House Speaker Kris Steele also spoke in support of the plan.

“Collections through April of this year are now $350 million higher than originally expected,” said Steele. “Oklahoma is growing. We have a choice to either spend all that money on more government, or give it back to the hardworking people of Oklahoma. We choose the latter. An income tax cut is not only the smart thing to do for Oklahoma’s economy, it’s the right thing to do for our citizens.”

Senate Pro Tem Brian Bingman said the tax cut would help small business owners while protecting core government services. 

“Today’s tentative agreement gives the people of Oklahoma a real and meaningful tax cut,” said Bingman.  “Senate Republicans have always believed lowering the tax burden is an important part of creating jobs and economic freedom in Oklahoma.  And today, we’ve taken an important step forward that shows the people of Oklahoma they can count on us to keep our word.  This plan will help more of our private sector citizens and small business owners be the innovators, entrepreneurs, and drivers of our state economy—all while protecting important core government services like teaching in the classroom.”

House announces major DHS reforms

OKLAHOMA CITY – House Speaker Kris Steele and the House DHS Working Group today announced plans to finalize legislation designed to significantly improve components of the Oklahoma Department of Human Services.

The legislation comes as the agency prepares to implement the Pinnacle Plan, the child welfare services improvement plan the agency is developing with a panel of national experts.

“DHS is on the verge of the sweeping culture change it has so desperately needed for years,” said Steele, R-Shawnee. “The House DHS Working Group was just as involved in making the Pinnacle Plan the strong plan it is today as it was in developing these vital reforms. If these measures pass and the Pinnacle Plan is implemented, the most vulnerable Oklahomans will be far better served and the state as a whole will benefit tremendously.”

Among the group’s policy recommendations this session are to:

• Vertically integrate the agency’s child welfare division;
• Abolish the Commission for Human Services;
• Allow for gubernatorial appointment of the DHS director;
• Disclose more information on child welfare cases;
• Establish a worker certification program.

Specific legislative language outlining those proposals and others will be introduced this week into DHS reform measures that are awaiting action in conference committees.

The policy proposals were developed collectively by the bipartisan House DHS Working Group comprised of Reps. Jason Nelson, R-Oklahoma City, Pam Peterson, R-Tulsa, Pat Ownbey, R-Ardmore, and Wade Rousselot, D-Okay.

“This legislation is about culture change from the top to the bottom,” said Nelson, the leader of the working group.

Since October, the House DHS Working Group has engaged in an aggressive, four-pronged strategy to improve DHS through significant study of and reforms to the agency’s governance, structure, personnel policy and resource allocation. Steele formed the group in response to a shared desire between House members, agency officials and other stakeholders to improve delivery of services by DHS, particularly for children in state custody.

The working group operated in an unconventional manner by holding nearly all of its meetings outside the Capitol, often times on the front lines with DHS workers across the state. So far, the group has met with more than 400 workers in 22 counties. The group will continue working in the future.

“Many of our recommendations are based on what we’ve learned from the DHS workers who do these critical jobs day in and day out. We wanted to hear from them rather than them hearing from us,” Peterson said. “A lot of our group’s ideas went into the Pinnacle Plan. Some of these bills complement parts of the Pinnacle Plan and others go beyond it with reforms that will reshape DHS for the better.”

THE LEGISLATION

Democrats Put Politics Before Policy on Severe Weather Liability Law

Veto Override Attempt Fails

OKLAHOMA STATE CAPITOL -- An attempt to override a governor’s veto of House Bill 2296, which would offer limitless liability protection to mobile home park owners who allow residents to seek shelter in their offices during severe weather, failed by a vote of 47-50 in the Oklahoma House of Representatives.

House Bill 2296 passed the House unanimously last month.

On Friday, Governor Fallin vetoed HB 2296, by Rep. Eric Proctor, D-Tulsa, and Sen. Brian Crain, R-Tulsa, citing concerns about possible unintended consequences.

Gov. Mary Fallin

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

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

On Monday, the House postponed action on an attempt to override the veto of HB 2296 when Speaker Kris Steele’s motion to table the move to override passed.

Speaker Kris Steele

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

Proctor said he hoped to insert the language of his bill into another piece of legislation. 

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

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

HB 2419 by Rep. Enns contains an emergency clause which would allow the more comprehensive liability protection to become effective immediately. HB 2296 by Rep. Proctor would not become effective until November 1, well after the severe storm season this spring. 

Fallin is working with legislators to develop the comprehensive policy.

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

Fallin visited Woodward earlier this week where a tornado killed six people and injured many more early Sunday morning. 

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

Steele expressed regret that Democrats opted for politics over policy. 

Rep. Eric Proctor

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

Proctor said that if the bill carried by Rep. Enns is not signed next week he will again attempt a veto override on HB2296. 

House Republicans outline tax credit reforms

OKLAHOMA CITY – Oklahoma’s tax credit system would undergo widespread reforms under a plan outlined by House Republican leaders last week.

“A tax credit should benefit taxpayers more than it costs them. Period. That hasn’t been the case in Oklahoma, but under this plan, it would always be the case,” said Rep. David Dank, R-Oklahoman City, chairman of the joint legislative Task Force for the Study of Tax Credits and Economic Incentives.

Dank said meaningful tax credit reform is an important first step for the Legislature to take as it considers reducing and phasing out the state’s personal income tax.

“We need to remember that we cannot accomplish real tax relief for all Oklahomans until we put an end to the costly sweetheart deals that have been handed to a very few in the past. Those giveaways cost us hundreds of millions of dollars each year. Ending tax credit abuse is one vital ingredient in assuring lasting tax relief for all,” Dank said.

The strategy outlined today would save between $250 and $300 million in fiscal year 2013 and continue saving millions of dollars annually in the future. It proposes:

• Extending the current moratorium on all tax credits another two years;
• Enacting a constitutional amendment establishing specific criteria for tax credits;
• Ending transferability of tax credits; and
• Requiring all future tax credits and all credits placed on moratorium to meet the constitutionally-required criteria and receive legislative approval in order to be enacted or removed from moratorium.

“Oklahoma’s tax credit system today is a big block of Swiss cheese with no rhyme or reason whatsoever to all its holes and cutouts. It’s time to wipe the slate clean and start over,” said House Speaker Kris Steele, R-Shawnee. “This policy is as pro-growth and fiscally conservative as it gets. It’s the right thing to do for taxpayers and will result in a better tax credit system that leads to economic growth without wasting taxpayer dollars.”

If all the reforms are enacted, all tax credits placed on moratorium would have to be brought back one-by-one by affirmative votes of the Legislature under criteria that would be in the state Constitution. Future credits would also require legislative approval and would have to meet the constitutionally-required criteria.

Steele plans to seek a constitutional amendment that would place the tax credit criteria adopted by the task force in the Oklahoma Constitution. House Joint Resolution 1089, by Steele, would send the criteria to a vote of the people in November. If approved, the criteria would be placed in the Constitution.

Under the criteria:

• All credits would require pre-approval by the Legislature;
• No tax credit would be transferable;
• All tax credits would be subject to full transparency and regular auditing by the State Auditor;
• Any proposed tax credit would have to be accompanied by a fiscal impact statement detailing how it would affect the state budget;
• All tax credits would be subject to caps and specific termination dates;
• No tax credit could be enacted within the final five days of any legislative session.

“It protects taxpayer dollars – plain and simple – and ensures all tax credits actually benefit the state,” Steele said. “But get ready, because as soon as we speak a word of this proposal, special interest groups are going to start lobbying tooth and nail in defense of their credits. Our message to them is simple: If the credit meets the criteria, the credit is useful and can stay, but if it fails the criteria, it’ll have to go.”

House Bill 2978, by Dank, would statutorily enact the criteria.

House Bill 2976, by Dank, would extend the tax credit moratorium that has been in place since 2010 for another two years. The extended moratorium only applies to tax credits. It does not apply to tax incentives such as the Quality Jobs program and certain engineering and oil and gas incentives that Dank said have adequate safeguards and produce net economic gains that exceed the cost of the incentives.

“An extended moratorium gives the Legislature additional time to consider the worthiness of each individual tax credit and to put in place specific criteria the task force believes must apply to all tax credits, be they existing or future proposals,” Dank said.

HB 2979, by Dank, would end transferability of tax credits.

“Transferable credits are bought and sold like poker chips by folks who’ve provided zero services to the state. This practice was identified by the task force as perhaps the most constitutionally questionable aspect of the entire system. It must end,” Dank said.

House Bill 2977, by Dank, would extend the Task Force for the Study of Tax Credits and Economic Incentives for another year, until January 2013.

“It benefits us to have the task force continue the analysis it started last year and serve as a watchdog as this reform process plays out over the next few years,” Dank said.

Rep. Earl Sears, the House Appropriations and Budget Committee chairman, said the reforms will have a direct benefit on the FY 13 state budget and future budgets.

“We’re talking about hundreds of millions of dollars here that we can use to fund core services or return to taxpayers. It’s a significant opportunity for us,” said Sears, R-Bartlesville. “I’ve been honored to be part of the task force and believe Chairman Dank’s leadership has been outstanding. This is what good, honest government is all about.”

NOTE: For accompanying video, go to http://www.okhouse.tv/iViewVideo.aspx?VideoID=403