Nelson Praises Rule Reforms that Open Legislative Process

State Rep. Jason Nelson today praised House lawmakers for enacting the most comprehensive open-government reforms in the chamber’s history.

“The rule reforms adopted this week will dramatically increase public scrutiny of the legislative process and deter the last-minute shenanigans that have often embarrassed our state,” said Nelson, R-Oklahoma City. “I was proud to support these reforms and advance the cause of open and transparent government.”

House lawmakers voted to dramatically reform the chamber’s rules of operation this week by requiring that conference committees hold public meetings with recorded votes.

The rule changes adopted were the result of a working group, which Nelson served on. Many of the proposals adopted had previously been endorsed by both Democrats and Republicans.

House of Representatives Passes Historic Conference Committee Rules

Since statehood conference committees have not met in an open meeting. A conference committee was nothing more than a petition that the author of a bill circulated to members assigned by the speaker of the House. When the author secured enough signatures on the conference committee report the bill was “passed” out of the committee.

This practice resulted in all kinds of crazy stuff added to bills late in session with little or no scrutiny. Certainly the public was never able to attend a conference committee meeting to hear a bill discussed.


That all changed today in the State House of Representatives. Representatives passed historic House rules that included reforming the conference committee process. The new rules will govern House activity for the next two years. 

Steele and Bingman Join Forces In Effort to Reform Board of Education

House Speaker Kris Steele announced today that he and Senate President Pro Tempore Brian Bingman have co-authored legislation to reform the State Board of Education.

“As a statewide-elected official chosen by the citizens of Oklahoma, State Superintendent of Public Instruction Janet Barresi must be allowed to hire her own staff and implement promised reform at the Department of Education,” said Steele, R-Shawnee. “Senate Bill 718 will give her that authority. It is important to advance this necessary reform so we can truly begin the important work of improving Oklahoma schools to benefit all children of this state.”

Under Senate Bill 718, the State Superintendent of Public Instruction would have clear operational control of the Oklahoma Department of Education while the State Board of Education would continue to have an advisory role in supervision of the public school system.

While the board’s recent refusal to approve the hiring of qualified personnel at the agency has generated the most controversy and headlines, the group has established a pattern of behavior that led legislative leaders to immediately advance the reform measures.
Among other things, the board has:

• voted to divert $18 million from the teachers’ retirement system last summer violating an executive order from former Democratic Gov. Brad Henry. The board did not reverse course until former Democratic Attorney General Drew Edmondson issued a formal opinion declaring the fund shift illegal.
• violated guidelines over the use of federal stimulus funds and, after redirecting the funds for purposes authorized by the federal American Recovery and Reinvestment Act of 2009, failed to provide correct reporting guidelines to schools using the money; and
• failed to approve a budget work program that complies with former Gov. Brad Henry’s executive order 2010-26, issued last June. As a result, the Department of Education has been operating on temporary allotments.

“Under current law, an unelected board has the ability to thwart the will of the voters,” Steele said. “It is imperative that state government be responsive to the voice of Oklahoma citizens, and I believe this reform will provide a clear line of accountability at the agency.”

Location:NE 63rd St,Oklahoma City,United States

Superintendent Janet Barresi's Weekly Video Message

Dr. Barresi discusses the effects recent winter storms have had on the school calendar as well as other timely information.

Two Leaders in Education Reform Scheduled to Speak in Tulsa

Deborah Gist

Two leaders in education reform will be in Tulsa on Saturday, February 26^th for the second Community Conversation.  Deborah Gist, Rhode Island’s Commissioner of Elementary and Secondary Education, and Janet Barresi, Oklahoma’s newly elected State Superintendent of Public Instruction, will share their perspectives on education reform in Oklahoma and across the nation. 

Before the Conversation, attendees will enjoy an encore screening of Waiting for Superman. Both activities will take place at the Circle Cinema, Tulsa’s Non-Profit and Independent Movie Theatre located at 10 South Lewis Avenue.  Sessions are offered without cost.  Seating is limited and will be available on a first come, first served basis.    

Janet Barresi

Saturday, February 26, 2011

9:30 a.m.      Meet & Greet

10:00 a.m.    Encore showing of Waiting for Superman

Noon             Conversation with Commissioner Gist and Superintendent Barresi    

The first Community Conversation was held at the Circle Cinema on November 3, 2010, and featured a panel representing the Bill & Melinda Gates Foundation, Tulsa Public Schools, Tulsa Classroom Teachers Association and KIPP*Tulsa.  This event is hosted by Circle Cinema with support from the Charles and Lynn Schusterman Family Foundation.   

For more information click here.

Rep. Dank to Examine Tax Incentives

Rep. David Dank
Chair, Tax & Revenue
Committee

By Patrick B. McGuigan, CapitolBeatOK.com

State Rep. David Dank, an Oklahoma City Republican, is leading a critical examination of tax credits, exemptions and other business incentives in the 2011 session of the State Legislature, which begins Monday, February 7. 

In his capacity as Chairman of the Revenue and Taxation Subcommittee, he answered a quartet of questions from CapitolBeatOK this week. 

The perspective he brings to the issue is, he says, nuanced: “There is a place for incentives and even tax credits when the jobs those incentives would create are substantial. New jobs return more revenue to the state through added payroll, and they especially help our economy grow. But too many tax credits enacted in the past failed to pass that test. Some were simply giveaways. 

“We need to ask a couple of fundamental questions about any tax credit. Will it create or sustain added jobs? And is it fair to everyone involved, especially the taxpayers, who are the ones footing the bill? That means we need to halt the practice of issuing transferable tax credits in particular. A legitimate tax credit should benefit only the industry it was supposed to help and not be bought and sold like securities or commodities.”

Fatalities and Injuries Due to Winter Storm

One fatality* is attributed to the winter storm, according to the Oklahoma Office of the State Medical Examiner. A 20-year-old Moore woman died Tuesday following a sledding accident. Cause of death was multiple blunt force trauma to the head.

The Oklahoma Highway Patrol reports troopers have worked 81 storm related crashes, including 7 involving injury since the storm began. OHP also responded to 278 motorist assist calls. The Oklahoma State Department of Health reports 77 falls, 4 carbon monoxide poisonings, 24 transportation related accidents, two exposure cases, 13 cut/pierce injuries and 5 injuries involving a person struck by or against an object related to the storm.

*(News stations are reporting three people died today when the vehicle they were traveling in near Miami, OK went into a body of water)

Location:Nw Expy,Oklahoma City,United States

It's Four Chaplains Day Today, As the Ship Slid Under They were Praying for the Safety of the Men

The Four Chaplains were four United States Army chaplains who gave their lives to save other soldiers during the sinking of the troop ship USAT Dorchester during World War II. They helped other soldiers board lifeboats and gave up their own life jackets when the supply ran out. The chaplains joined arms, said prayers, and sang hymns as they went down with the ship.


The chaplains, who all held the rank of lieutenant, were the Methodist Reverend George L. Fox, Rabbi Alexander D. Goode, the Roman Catholic Priest John P. Washington and the Reformed Church in America Reverend Clark V. Poling. 

"Tim Gilpin’s description of recent State Board meeting a classic in 'Photoshop' history"

Dr. Janet Barresi
State Superintendent

State Superintendent Janet Barresi writes in the Oklahoma Gazette this week: 

"The recent meeting (of the State Board of Education) was not only dominated by the partisan obstruction of board members, but also by the misogynist actions of Herb Rozell and Gilpin."

Barresi says Gilpin wanted to act in secret: 

"As he admits in his column, Gilpin wanted to conduct personnel issues in secret, behind closed doors in executive session, and I refused to allow him to hide behind a veil of secrecy." 

Barresi provides history of hiring decisions by the State Board of Education: 

"Over the past five years, 88 percent of Department of Education employees were put on the state payroll without prior review by the board. In fact, 37 percent of employees were never submitted for board approval at all. It is clear the board has suddenly decided to actively obstruct my ability to perform my duties as State Superintendent, which I assume has to do with my party affiliation."

Tim Gilpin Cautions Against Overreaction

An AP story reports that Superintendent Janet Barresi has spoken to Attorney General Scott Pruitt about possible open meeting violations by members of the State Board of Education at the last meeting.

The most interesting comment in the story is from board member Tim Gilpin. Gilpin is quoted as saying “everyone needs to take a deep breath, cool down ... and move forward to bigger, more important things.” This is sage advice coming from the guy who apparently instigated the spit-flecked vitriol at the last board meeting. It's fine for him to loudly accuse someone else of wrongdoing in public but when the same is done to him he wants everyone to take a deep breath. I hope he's not waiting on everyone to hyperventilate.

Price Gouging Statute In Effect

Oklahoma’s price gouging statute is in effect in all of Oklahoma’s 77 counties due to the State of Emergency. The price gouging statute prohibits an increase of more than 10 percent in the price of most goods and services when a State of Emergency has been declared. Anyone who suspects price gouging is urged to contact the Attorney General’s Consumer Protection Unit at (405) 521-2029.

Location:NW 58th St,Oklahoma City,United States

Hope and change come to the Small family

By Jonathan Small, CPA

ObamaCare

On March 23, 2010, President Barack Obama signed the Patient Protection and Affordable Care Act, commonly known as Obamacare. This despite warnings from many people—including Oklahoma’s U.S. Senator Tom Coburn and Insurance Commissioner Kim Holland—that this flawed legislation would limit health insurance access and raise costs.

One of Obamacare’s “gifts” is the poorly conceived and poorly implemented provision regarding pre-existing conditions in children. Insurance carriers who choose to cover children now have to sell health insurance policies regardless of a child’s health history. So if a child has no coverage, but has cancer or some other illness, a company must issue a policy to the child. This provision is like requiring property insurance carriers to sell home insurance policies to any homeowner, even if the policy is purchased while the house is on fire. Clearly, under rules like this, either everyone’s premiums would skyrocket or property insurance carriers would go out of business.

So, to respond to this provision, companies across the nation and throughout Oklahoma have simply stopped writing children’s policies, or policies that might lead them to have to write a policy for a child in the future.


Here is where Obamacare greets the Small family. I just changed employers, and it so happens my beautiful wife is pregnant. Since my new employer (OCPA) has a small group plan, there is a 90-day waiting period, so I need to buy temporary coverage. So, trying to be responsible by purchasing coverage to take care of my family, I began to look for coverage other than the ridiculously priced COBRA that is offered by my former employer, the State of Oklahoma. As was the case before Obamacare, my wife will remain on COBRA. But before Obamacare, I and my two daughters could buy coverage with a lower-cost private sector plan that would last until we get on the new employer plan, and it costs about $130 a month. But, thanks to the glorious hope and change ushered in by Mr. Obama, no one will sell coverage to my two daughters and me—because if they did, my third child’s birth is a qualifying event, which could require them to have to offer to put the child on a plan, and if my child was unhealthy they would have to take the unhealthy child.

In sum, Mr. Obama has spread throughout the health insurance market discrimination against healthy children—children who, prior to his meddling, could buy health insurance products as needed. Ironically, this discrimination is preventing my bi-racial children (Obama too is bi-racial) from getting affordable coverage, coverage which could have been purchased with no problem before all this hope and change set in.

Emergency Weather Update 2

ROAD CONDITIONS

ODOT crews report heavy but intermittent snow in the Panhandle with varied ground cover and slickness. Elsewhere, crews continue to monitor conditions.
For information regarding Oklahoma road conditions, call 888-425-2385. For the latest conditions on Oklahoma Turnpikes, call 1-877-403-7623. For road conditions in neighboring states call: Texas, 800-452-9292; Kansas, 866-511-5368; Arkansas, 800-245-1672; and Missouri, 800-222-6400.

OKLAHOMANS URGED TO AVOID TRAVEL



Oklahomans are urged to avoid travel once the storm arrives. If travel is unavoidable, make sure you let someone know where you are going and the route you are taking and be sure to have the following items with you in your vehicle.

• A cell phone with charger and a battery powered radio.
• Windshield scraper, deicer, snow shovel and small broom for ice and snow removal.
• Several blankets or sleeping bags.
• Rain gear, warm coats and extra sets of dry clothing, mittens, socks and a cap.
• Non-perishable snacks like dried fruit, nuts and other high energy “munchies.”
• Several bottles of water. Eating snow will lower your body temperature so melt it first.
• Sand or cat litter for generating traction under wheels and a set of tire chains.
• Jumper cables, flashlight with extra batteries, first aid kit and brightly colored cloth to tie to antenna if you get stranded.

UPDATED: Weather Information; Governor Mary Fallin Declares Emergency as Winter Storm Approaches

(Jan. 31 at 10:45PM) The Commissioner of Public Safety, as authorized by the Governor, has announced that state agencies may temporarily reduce services beginning at 12:01 a.m. February 1 until 11:59 p.m. February 1 for the following counties: Canadian, Cleveland, Lincoln, Logan, McClain, Oklahoma, and Pottawatomie. State employees designated to maintain basic minimum services (staff essential functions) should remain at work or report to work as scheduled.

Governor Mary Fallin’s Statement on Florida Judge’s Health Care Ruling

Governor Mary Fallin today released the following statement in support of Judge Roger Vinson’s ruling declaring key provisions in the federal health care reform law unconstitutional. Vinson is a federal judge in Florida, where officials of that state and 25 others are challenging the constitutionality of the Patient Protection and Affordable Care Act in court. Fallin’s statement:

“I am thrilled that Judge Vinson has taken such a bold stand against a law that is unconstitutional, unworkable and unaffordable. The people of Oklahoma have made it clear that under no circumstances should the federal government be able to force our citizens to buy health insurance. This ruling is a victory for all of us who believe the ‘individual mandate’ contained in the federal health care bill is in conflict with the United States Constitution and the free market principles that make this nation great.”

Speaker Steele Appoints Redistricting Committee

House Speaker Kris Steele today announced the appointment of a bipartisan House Redistricting Committee, which will oversee the redrawing of state and federal legislative lines during the 2011 legislative session.

Henry says Barresi should be able to pick, hire staff

See more at the McCarville Report Online

Barresi requests AG investigation into possible open meeting law violations by Board

The Tulsa World is reporting that State Superintendent Janet Barresi is requesting that Attorney General Scott Pruitt investigate the possibility that board members violated the State's open meeting law.

I noted in my statement last week that, "Clearly they (the board members) had organized this effort before yesterday’s meeting in a pathetic attempt to embarrass Superintendent Barresi." I'm aware that Tim Gilpin has been attempting to frustrate Barresi beginning soon after the elections.

Gilpin was reportedly a financial contributor to Barresi's opponent. It's important that we not allow a few sore losers to negatively impact such an important agency.

http://www.tulsaworld.com/news/article.aspx?subjectid=11&articleid=20110129_19_A1_StateS86354

Superintendent Barresi Says Dismal NAEP Results Are a Call to Action

“The Nation’s Report Card” Shows Only One-Fourth of Oklahoma Students Are Proficient in Science

New results from the 2009 National Assessment of Educational Progress (NAEP) released today show most Oklahoma students are not proficient in science. Seventy- two percent of Oklahoma fourth-graders taking the test and 75 percent of eighth-graders taking the test fell below “proficient” - meaning they scored at “basic” or “below basic.”

Dr. Janet Barresi

State Superintendent of Public Instruction Janet Barresi said the scores come just as Oklahoma students are entering a new testing period for NAEP, beginning this week and running until March 4. Barresi urged the more than 300 Oklahoma schools selected for NAEP testing to ensure that teachers and parents understand the critical importance of the exams.

“Oklahoma‟s economic future and the success of our young people depend on our ability to produce students who are ready for the demands of the 21st century marketplace,” said Barresi. “It‟s not enough now to just say „we‟re doing okay.‟ Mediocre doesn‟t cut it anymore. These results are a dash of cold water and should jolt us into action.”

The science assessment is administered to a sample of students from each state by the National Center for Education Statistics (NCES), which is an arm of the U.S. Department of Education. NAEP measures students‟ knowledge and abilities in the areas of physical science, life science, and Earth and space sciences. Only 28 percent of Oklahoma fourth-graders scored at “proficient” or “advanced,” while only 24 percent of eighth-graders scored at the same levels. In each case, Oklahoma scored four percentage points below the national average.

“States that pass reforms to boost math, reading and science proficiency will be the states that lead and the states that stand to benefit in the new knowledge economy,” said Barresi. “If Oklahoma is not prepared to compete in the areas of science, technology, engineering and math, then we will lose out in this century and our children will fall further behind.”

“Governor Fallin is focused on creating a vibrant economic environment through job creation,” continued Barresi. “She and I both agree that the way we sustain a positive trajectory is through assuring we have a well-educated workforce.”

Nationally, less than one-third of U.S. elementary- and high-school students have a solid grasp of science, according to the NAEP scores. The Nation‟s Report Card: Science 2009 Grades 4, 8, and 12 is available at www.nationsreportcard.gov. More materials are at www.nagb.org/science2009/.

NCES previously released 2009 NAEP scores in reading and mathematics for the state and nation. Those results also indicated Oklahoma students are trailing their peers nationally and reflected low proficiency rates.

Weekly Message from Superintendent Janet Barresi

Information about the Members of the State Board of Education

Tim Gilpin

Tim Gilpin, Tulsa
Represents Congressional District 1. Tim was born and raised in Tulsa, Oklahoma. He graduated Cascia Hall High School in 1979, and earned a B.A. degree from George Washington University, Washington, D.C. in 1983. He attended law school at the University of Tulsa College of Law obtaining a J.D. degree in 1986. Tim worked his way through college and law school. After law school and working in several Tulsa law firms, he was honored when asked to serve Oklahoma as an Assistant Attorney General under Robert Henry. Afterwards, he returned to Tulsa to private practice. Tim has two children who attend Tulsa Public Schools. Tim has a solo law practice and is active in community affairs. Tim is also a member of the Downtown Tulsa Rotary Club, past member of the Southeast Tulsa Jaycees and, among his activities, has served on the Board of The Parent Child Center of Tulsa, The Public Policy Committee of the Mental Health Association in Tulsa, the Mayor's Commission on Concerns of the Disabled and United Way Investment Panel.Contact
1874 South Boulder Avenue, Tulsa, OK 74119
Office: (918) 583-8900, Fax: (918) 796-5724

Herb Rozell

Herb Rozell, TahlequahRepresents Congressional District 2. More Information Coming SoonContact
1106 West 4th Street, Tahlequah, OK 74464
Phone: (918) 456-8408




Here are the rest of the members of the State Board of Education

Rep. Billy Condemns Misogynist Bullying by State Board of Ed Members

Rep. Lisa Billy

Notes Board Members' Harassment Directed at Women

State Rep. Lisa J. Billy today joined the chorus of officials condemning the actions and sexist comments of State Board of Education members and called for their immediate resignation to “restore the integrity of the Board of Education.”

            “I am utterly disgusted by the sexist comments and unprofessional actions of State Board of Education members,” said Billy, R-Purcell. “The board has embarrassed the state of Oklahoma and its members have disgraced themselves.”

            During a discussion on the possible hiring of a woman expecting her first child at yesterday’s meeting, board member Herb Rozell referred to the woman as being “worthless” because of her pregnancy.

            Board member Tim Gilpin immediately added, “Can we have a motion that she not have her baby in April or May?” In a subsequent interview with News 9 in Oklahoma City, Gilpin referred to the same employee as being an “individual in a less than full capacity.”

            Billy noted those comments appeared to violate employment discrimination laws.

            “For these men to claim a woman is ‘worthless’ if she is pregnant ranks among the most repugnant things I have ever heard any state official say,” Billy said, “and that alone justifies their immediate resignation.”

            Billy noted board members engaged in bullying behavior throughout the meeting, and directed most of their fire at women. (I noticed this as well)

The board refused to hire Jennifer Carter as chief of staff, even though Carter is an attorney with a higher level of educational attainment than her predecessors. Carter previously worked as Assistant Insurance Commissioner for Government Relations for Democrat Insurance Commissioner Kim Holland and as Director of Legal Services/Government Relations for the Association of Professional Oklahoma Educators (APOE). In that position, Carter mediated and filed grievances on behalf of teachers and represented educators at board hearings and in lawsuits.

            Board members also refused to hire Jill Geiger for Director of Finance even though she was most recently a Deputy Director of the Division of the Budget at the Office of State Finance with six years experience in state education finances.

            “No one can argue with a straight face that these women are not well qualified,” Billy said. “It appears to me the board’s actions were based on sexist views of women, and had nothing to do with job duties.

“As someone who has campaigned with her small children in tow and served as a legislator while pregnant, I know firsthand that women can easily handle job and family. Apparently, the board members can’t even handle just one of those two tasks.”

Rep. Brumbaugh says Tim Gilpin has history of disruptive behavior

Rep. David Brumbaugh

State Rep. David Brumbaugh (R – Broken Arrow) said today he would support a review by House Speaker Kris Steele into the actions of several State Board of Education members during their January 27 meeting with State Superintendent Janet Barresi to determine if legislative action is needed.

“The lack of civility and inappropriate comments by several of the State Board of Education members does not represent what the public should expect of our officials,” Brumbaugh said.

Brumbaugh noted that he was in the audience at an event in 2010 sponsored by the Broken Arrow Chamber of Commerce to discuss State Question 744 where State Board of Education Member Tim Gilpin was speaking.

He noted that debate was stopped by the moderator before its conclusion because Gilpin engaged in a similar type of inappropriate conduct and comment as seen at the State Board of Education meeting.

“This type of behavior has no place in the public discourse,” Brumbaugh said. “As George Washington noted, ‘Every action done in company ought to be done with some sign of respect to those that are present.’ This minimal courtesy was not shown to our State Superintendent and her staff, and several of the Board of Education member’s comments were reprehensible.”

Rep. Jason Nelson Calls on Members of the Board of Ed to Rebuke Rozell, Gilpin

State Rep. Jason Nelson (R-Oklahoma City) issued the following statement today on the actions of the State Board of Education during yesterday’s meeting.

“I’ve listened to nearly two hours of a recording of yesterday’s state board of education meeting. I can only describe it as disturbing.

“I'm stunned by the board members' appalling behavior at Dr. Janet Barresi’s first board meeting as our newly elected State Superintendent. I’m not surprised by Dr. Barresi's professionalism under fire. It only serves to confirm she is the right person for this job.

“Listening to the recording you hear a few members of the board attempt to provoke Dr. Barresi with constant harassment and interruptions over the course of five hours. Clearly they had organized this effort before yesterday’s meeting in a pathetic attempt to embarrass Superintendent Barresi. That plan backfired. Two of the board members in particular played the classic school yard bully.

“I can’t help but wonder if other board members were embarrassed or even intimidated by the disgraceful actions of board members Tim Gilpin and Herb Rozell. At one point a member of the board indicates that she supports approving the hiring of an individual recommended to the board by Dr. Barresi only to hear Mr. Gilpin overpower the conversation and blurt out a motion to the opposite effect. It's now public record that they underestimated Dr. Barresi and that they are not fit to continue serving on the board.

“I hope the other board members will quickly clarify that they do not share or endorse Gilpin’s and Rozell’s complete lack of respect and civility. It is important to know if the other board members believe the behavior exhibited by Mr. Gilpin and Mr. Rozell was appropriate and if they believe that these two men should continue serving on the board. I hope their silence sense yesterday’s meeting is not their assent to the unacceptable behavior.”

Rep. Kern asks for A.G. opinion on scholarship taxation, Tulsa attorney rebuts assertion in story

By Patrick B. McGuigan, Published 26-Jan-2011, CapitolBeatOK.com

State Rep. Sally Kern has asked Attorney General Scott Pruitt for a formal opinion concerning assertions by some public school officials that scholarships supporting special needs scholarships are subject to federal taxation.

Meanwhile, an attorney with the controversial Tulsa law firm of Rosenstein, Fist and Ringold has directly rebutted the conclusion reached in a CapitolBeatOK news storythat the firm was “apparently” directing public school clients to tell parents they faced such taxation.

In her letter to Pruitt, dated yesterday (Tuesday, January 25), Rep. Kern wrote:

“I would like to request an opinion concerning an issue that has arisen because of the Lindsey Nicole Henry special needs scholarship Bill.

“It has come to my attention that school districts are asking for W-9s from the parents of the students using this scholarship. This scholarship money should be non-taxable.

“I request an official opinion on the following two questions:

1)   Is this scholarship money taxable?
2)   Does a school district need to send a W-9 to the parents utilizing this scholarship?

“I respectfully ask that you publish an opinion as soon as possible as these school districts seek to confuse and raise doubts about the program in the minds of parents and these parents are preparing to file their taxes in the near future.”

Today, CapitolBeatOK received an email from Rosenstein Fist Ringold. CapitolBeatOK appreciates the information received. The email reads as follows:

“My name is Jerry Zimmerman and I am the tax partner with the law firm of Rosenstein, Fist and Ringold (‘RFR). I had an opportunity to read your article that was published on Jan 25th in CapitolBeatOK, with respect to the taxation of the Lindsey Nicole Henry Scholarships. I am also making the assumption in responding, that RFR is the controversial law firm to which you refer in your article.

“Please allow me to provide you with the facts. When RFR has been requested by its school district clients to analyze the tax reporting matters concerning the scholarships, the task of responding to those requests has been assigned exclusively to me.

“In fact, I have specifically and unambiguously advised the school districts that have requested advice, that the school districts are NOT required to issue forms 1099 to the recipients of the scholarships. We have never been asked by any of our clients to issue an opinion, nor have we ever rendered an opinion, as to whether the receipt of the scholarship proceeds is a taxable event. I suspect that we have not been asked to issue such an opinion because our clients are the school districts as opposed [to] the recipients of the scholarship awards.

“As such, our clients have asked about their respective duties to report or forbear from reporting the issuance of the scholarship proceeds. I appreciate your article and I thought that it was incumbent on me to advise you of the facts. Very truly yours, Jerry Zimmerman.”

Speaker Steele Announces Formation of Investigatory Committee

House Speaker Kris Steele today announced that he will form a special bipartisan committee to investigate the allegations that led to state Rep. Randy Terrill being charged with felony bribery.

            

“The circumstances surrounding this situation are serious and merit inquiry to determine if misuse or abuse of office occurred. According to the Oklahoma Constitution Article 5 section 30, the House of Representatives is responsible to oversee the conduct of its members. After carefully reviewing our options and obligations, I believe it is appropriate for the House to conduct its own investigation of this matter,” said Steele, R-Shawnee. “I am confident a bipartisan committee can conduct a thorough review and facilitate an investigatory process that complies with the rule of law, respects the rights of the accused, and fulfills our duty to the public.”

School Districts Estimate HB 3393 Lawsuit Costs

The four Tulsa area school districts that are suing Attorney General Scott Pruitt have estimated the minimum cost of the lawsuit at $66,515. I think this is likely the starting point - my guess is that the cost will only increase from this point. It should be noted that they are quick to explain in great detail what the scholarships supposedly cost but they mask the estimated cost of their lawsuit. Here is the Q&A from the Union website:

Q: How much will this lawsuit cost?

A: The districts involved in this lawsuit have agreed to share in the cost, and should other districts join in the lawsuit, the costs will be further divided.  With only the four districts participating, it is estimated that this lawsuit will cost $1.56 per student over the course of the suit.   

Current enrollment for the four districts is 42,638: Jenks, 10,371; Union, 14,931; Broken Arrow, 16,732; and Liberty, 604. 

They were not willing to stay the course and continue to ignore HB 3393 because board members would have been required to pay their own legal bills in any legal action brought by the Attorney General. Evidently it's a lot cheaper to sue the Attorney General and to charge it to the students. 

School officials and law firm claim Henry Scholarships are taxable, IRS disagrees

By Patrick B. McGuigan, CapitolBeatOK.com, Published 25-Jan-2011

Some local public school officials who are opposed to implementation of the Lindsey Nicole Henry Scholarships for special needs children have told parents seeking to access the historic new program that benefits are subject to federal taxation.

Attorneys for some parents have told CapitolBeatOK that in a few cases have been issued 1099s and told they must report the value of the scholarship as income.

The assertion about taxation of the benefits appears contrary to public policy, and has apparently been made at the direction of a controversial law firm that represents the majority of Oklahoma’s public school districts.

In a recent commentary on the blog of state Rep. Jason Nelson, the Oklahoma City Republican who sponsored Lindsey’s Law and carried it to passage last year, reflected:

“This effort to confuse and raise doubts about the program in the minds of parents is not new. This specter was raised during the debate on House Bill 3393 during the 2010 legislative session.

“It seems parents were led to believe that the Lindsey Nicole Henry Scholarship Program is a Qualified State Tuition Program - which are 529 college savings accounts. Lindsey's Law is not a 529 college savings account.

“To my knowledge the IRS has not considered any scholarships from programs similar to Lindsey's Law to be taxable. And there are currently a number of scholarship programs around the country - some have been in place for more than a decade. Oklahoma was the sixth state to pass a special-needs scholarship program into law.”

Rep. Nelson has been sending constituents and other interested Oklahomans to official Internal Revenue Service information, saying, “I'm passing it along as general information - not as tax advice.”

CapitolBeatOK has independently reviewed information on similar programs, posted online by the federal government. It reads as follows: 

“Tax-Free Scholarships and Fellowships

“A scholarship or fellowship is tax free only if:

·    You are a candidate for a degree at an eligible educational institution, and
·    You use the scholarship or fellowship to pay qualified education expenses.

“Candidate for a degree.   You are a candidate for a degree if you:

1.  Attend a primary or secondary school or are pursuing a degree at a college or university, or

2.  Attend an accredited educational institution that is authorized to provide:

a.  A program that is acceptable for full credit toward a bachelor's or higher degree, or

b.  A program of training to prepare students for gainful employment in a recognized occupation.

“Eligible educational institution.  An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities.

“Qualified education expenses.   For purposes of tax-free scholarships and fellowships, these are expenses for:

·    Tuition and fees required to enroll at or attend an eligible educational institution, and
·    Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. These items must be required of all students in your course of instruction.”

This and related information can be viewed in full context here. For further information, visit here.

Rep. Shumate will seek Senate seat

According to the McCarville Report Online, Senator Judy Eason McIntyre of Tulsa has announced that she will retire from the Senate at the end of her current term in two years.

State Rep. Jabar Shumate has reportedly said he will run to fill Sen. McIntyre's open seat.

My favorite reader comment of the day

Here is one of my favorite reader comments on Today's Tulsa World story about House Bill 3393, which I authored, posted by "prattville dad":

"Whoever thought up this no brainer law needs to be booted from office for good and sent for a mental evaluation!"