April 7, 2008
News and Views
by Pat Hall
Since
January 1, 2008, Oklahoma politics have
experienced a few bumps as well as a few bruises. Since the first of
this year, Oklahoma has participated in the Super Tuesday primary
elections for each political party to choose their nominee for the
November presidential election. Also, Oklahoma Auditor and Inspector,
Jeff McMahan (Democrat) is facing an 11 count federal indictment and has
taken a paid leave of absence from that position. The 2008 budget
projections for Oklahoma State government have certainly not been as
rosy as in past years and even before session began the Speaker of the
House stepped down leaving a void. These are just a few of the issues
and topics that will be discussed in this legislative report.
On February 5th,
Oklahoma participated with approximately 24 other
states in the “Super Tuesday” presidential primary. Oklahoma Democrats
went to the polls in a greater number than ever projected or in recent
memory. Former U.S. Senator John Edwards had been perceived as the
front runner, but prior to Super Tuesday, he dropped out. When the
smoke cleared on the Democratic side for Super Tuesday, U.S. Senator
Hillary Clinton was the clear winner with approximately 54% of those
Democrats voting in a closed primary voting for her and Senator Barrack
Obama receiving approximately 34% from those same eligible voters. On
the Democratic side, which is not a winner take all, that means that
Senator Clinton would receive 25 delegates to the convention in Denver
this August and Senator Obama 15 delegates. The Republican presidential
primary did not cause much excitement in Oklahoma where U.S. Senator
John McCain received the bulk of the vote with former Arkansas Governor
Huckabee coming in second. Because the Republican election is a winner
take all for delegates, Senator McCain will head to Minneapolis this
summer with 41 delegates from Oklahoma. [See attached election
information]
Since February 5th and the
excitement of the presidential primary, not much has really happened in
this state. Both parties have held their state conventions with the
Democratic State convention being exciting because delegates were
selected for both Senator Clinton and Senator Obama. Many Oklahomans
now believe that the election for the Democratic nominee will not be
decided until the Denver
convention. Other political pundits (including myself) believe that it
will not be a brokered convention, and that a clear nominee will be
decided. On the Republican side, Oklahomans going to the Republican
convention in Minneapolis-St. Paul are making their plans and as of
right now, not much else is being discussed.
The only real discussions in
Oklahoma about presidential politics is
that it appears Oklahoma broke a cycle of being compared to the rest of
the southern states. All traditional southern states had the top vote
getter on the Republican side as Governor Huckabee and on the Democratic
side Senator Obama. Of course in Oklahoma, the Republican victor was
Senator McCain and the Democratic victor was Senator Clinton. Oklahoma
did not look like or act like a southern state during this presidential
primary season. Oklahoma will more than likely vote for the Republican
nominee in November. It has been since 1964 that the electoral votes
from Oklahoma went to the Democratic candidate and at that time it was
to the incumbent U.S. President Lyndon B. Johnson. Since 1964 Oklahoma
has voted for the Republican nominee for President and many believe that
will happen again in 2008. What does that mean for Oklahoma? It
probably means that very little attention will be paid to this state by
either the Republican or Democratic nominees for the office of
President. They will look to Oklahoma to raise money from the energy
industry and maybe from several Native American tribes, but outside of
those two groups, Oklahoma is not known for contributing large sums of
money to Presidential politics. It may also mean that the presidential
election, because of a lack of advertising in this state, will not have
much of an impact on ‘down ballot’ races come November. The big down
ballot race will be the race for the United States Senate. Current
Republican incumbent Jim Inhofe has amassed a large political
contribution war chest and is already campaigning hard to be re-elected
to a third full six year term in that body. His principal Democratic
opponent is freshman state Senator Andrew Rice from Oklahoma City.
State Senator Rice is campaigning hard and trying to use a new
Democratic party formula of attracting outside money, especially from
environmental groups to battle Inhofe this November. At this time it
does not look like either Senator Inhofe or State Senator Rice have
opponents in their primaries but that could change in the next several
months with filing not closing
until June.
Oklahoma has five members of the United States House of Representatives
and all have announced for re-election. The lone Democrat, Congressman
Dan Boren from Muskogee has not as of this time drawn any opposition and
continues to have a positive image with Oklahomans as a member of
Congress. The four Republican incumbents, Congressmen John Sullivan,
Frank Lucas and Tom Cole, who are joined by Congresswoman Mary Fallin
also have not had any announced serious opponents in either their
primary or in the November general election. It does not appear that
there will be a serious challenge to any of our five incumbent U.S.
Representatives. That may be a good sign for those running for either
the statewide office of Corporation Commissioner or any of the hundred
and one House of Representative seats up for election or the approximate
24 state Senate seats because campaign dollars usually going to
congressional seats may move to these races.
The only statewide elected races on
the ballot in 2008 are the six year term for the Oklahoma Corporation
Commission and a completion of former Commissioner Denise Bode’s term
for a 2 year election. Incumbent Republican Commissioner Jeff Cloud has
not yet announced if he is running for the six year term of office.
Cloud, many believe, is still evaluating that campaign. It has been
rumored that Commissioner Cloud may move into the private sector as a
consultant, but still has political ambition and may return in 2010 for
a run for either Governor or Lt. Governor. Currently Democrat Jim Roth
is filling out the term of former Commissioner Bode and has announced
that he will run for either a full two year or a six year term of office
in November. Governor Brad Henry appointed former Oklahoma County
Commissioner Jim Roth to fill Republican Commissioner Bode’s term of
office.
The Oklahoma State Senate is currently
tied with 24 Republicans and 24 Democrats. The tie breaking vote, if
needed, is Democrat Lt. Governor Jari Askins, who also is the President
of the State Senate. In the last two legislative sessions Lt. Governor
Askins has only had to break a tie vote one time. That tie vote was not
along partisan party lines, but in fact was divided among Democrats and
Republicans mixed on both sides. Both the Republicans and Democrats are
working hard to become the majority party in the State Senate in 2009.
Currently, if one was a betting person, they would put their money on
the Republicans becoming the majority in the State Senate after the
November ’08 elections. Republicans have been recruiting hard in
several of the ‘open seats’ due to term limits as well as recruiting
candidates to run against what they see as vulnerable Democrats. The
Republicans have targeted current Co-President Pro Tempore Mike Morgan’s
seat because of term limits. They have recruited the former President
of Oklahoma State University, Jim Halligan, to run as a Republican in
that open seat. The Republican Senate members have also targeted former
Republican State Senator Nancy Riley from the
Tulsa area as a potential take over, giving them
the majority of seats. Senator Riley, after running as a Republican for
Lt. Governor in 2006, switched parties ,
which ensured that the Senate was tied. When she did this, she placed a
bull’s-eye on her back by the current Senate Republicans. The
Democratic State Senators are starting to get into motion and recruiting
against those Republicans that are in urban areas which contain swing
Democratic voters. The Democrats have also targeted freshman Republican
Senator Don Barrington from Lawton. Lawton and Comanche County have
always been Democratic strongholds, but Barrington, the former Fire
Chief of Lawton Fire Department who is well known and respected in his
community had run for an open seat in 2004 and easily won election and
will be difficult to unseat. It will be hard for the Democrats to
retain the majority, but this is a historical election. Since
statehood, the Republicans have never held the majority in the Oklahoma
State Senate and this would be a complete change as was the change in
party leadership in the House of Representatives in 2004. The
difference between the House and Senate change is that State Senator
Glenn Coffee, the Republican Co-Pro Tem,
now has two years of experience leading his caucus and being a leader.
That leadership should allow him to govern more effectively and
efficiently than what happened to the House Republicans in 2005.
The
Oklahoma House of Representatives, which has been controlled by
Republicans since the 2004 election, was in much disarray prior to the
start of this session in early February. Former Speaker Lance Cargill
had stepped down as Speaker prior to the first day of session after an
article appeared in the Daily Oklahoman newspaper saying that Speaker
Cargill had not paid his personal taxes for the last several years. A
subsequent article in the same newspaper also said he had failed to pay
property tax on his building which housed his law firm. Cargill decided
that to maintain the integrity of the House of Representatives, he would
step down. That meant that Speaker pro Tempore Gus Blackwell from the
panhandle of Oklahoma would be the
interim Speaker and had announced that he would seek that position. The
Daily Oklahoman also did a story on property tax which said that new
Speaker Gus Blackwell had not paid property tax on his home in a timely
manner for many years. In then-Speaker Blackwell’s defense, he had paid
it on a date he thought was appropriate, but it was several months after
the statutory date for filing your property taxes. The series of
articles in the Daily Oklahoma newspaper also exposed a few Democrats
that had not paid their personal income tax in a timely manner, but they
were not in leadership positions. The damage that was done was done to
the House Republicans who quickly regrouped as a caucus and elected
Republican Appropriations Chairman from the Tulsa area, Chris Benge, as
the compromise Speaker. Benge is well respected by both Democrats and
Republicans as well as by lobbyists and others that frequent the
Oklahoma State Capitol. Benge has always had a reputation as a very
fair and open type of person. That proved true when on the first day of
the legislative session, the Democratic House caucus did not put up an
opposition opponent and the Minority Leader, Danny Morgan, actually
embraced the nomination of Chris Benge as Speaker. Because of the
selection, what could have proved to be chaos for the House Republicans
and a potential gain in November ’08 by the House Democrats has and will
not come to fruition. It now looks like the House Republicans have
righted their ship and will continue after the November ’08 elections to
be the majority party in the State House. What Benge being elevated to
Speaker has done, is it has allowed some of the more radical members of
the House Republican caucus an opportunity to have some of their ideas
heard in forms of legislation. Last session under Speaker Cargill and
this session under Speaker Benge, it appears that some ideas that are
not being accepted within the business or the university and college
community are gaining traction by a small element of House Republicans.
In 2007 immigration reform was the buzz phrase at
the State Capitol and created a lot of hard feelings by many in the
business community, especially those in the restaurant and construction
as well as agriculture industries. The passage of a “mean immigration
reform bill” as dubbed by USA Today newspaper has led to the U.S.
Chamber of Commerce joined by the State Chamber as well as Oklahoma City
and Tulsa Chambers of Commerce to file a lawsuit against the legislation
of 2007 (House Bill 1804). This year the leadership has been able to
stop the “son of 1804”, but that does not stop some onerous felony
penalties and other penalties being placed on business ,
which will go into effect
July 1, 2008. There is a group of businesses,
also those from the faith-based community that have joined together to
try to delay that implementation as well as to talk about the unintended
consequences of House Bill 1804. They have formed a group called A
Better Way , which will potentially be a
campaign to bring attention to the problems with the original
Immigration Reform Act, but to also make Oklahoma not seem a bigoted
state, as it is in the eyes of many across the country today. This
year, instead of immigration reform, the agenda appears to be passage of
an “English only” bill as well as allowing students to carry guns on our
university and college campuses. What this type of legislation does is
bog down the process and cause constant heartburn on both sides of the
aisle with Republicans, Democrats, as well as with the House and the
Senate. The only constitutional mandate the legislature has is to pass
a balanced budget. These side issues are in the way, many believe, of a
swift passage of the budget to adequately fund education and other
governmental entities which would draw a meaningful close to this
session. Oklahoma state government is not suffering a recession, it is
suffering a revenue shortfall. Past obligations to be funded this year
as well as the numerous tax acts that have passed in the last four years
have caused the recent growth of state budget revenues to shrink. Those
tax cuts along with obligations to bridges and roads, education and
other groups mean that this legislature has less than $32 million new
dollars to spend on projects. From that $32 million they are trying to
determine how to fund a pay raise for public school teachers as well as
state employees. They also must determine how to adequately fund
corrections while at the same time, not having any adverse impact on
health programs for the children and elderly. Balancing the budget is a
monumental task, especially in an election year when tempers can get a
little strained and jockeying for political position sometimes is the
order of the day. To add
to that, some of these very controversial
bills, such as guns in the classroom, create a partisan environment and
creates potential havoc and chaos.
The good news though is that there are bright men
and women who are serving in the Oklahoma State House and State Senate.
Those bright people, as usual, will get together, evaluate the
situation, and more than likely, develop a peaceful exit strategy for
this legislative session. The reason that must happen is that those
that are standing for re-election do not want special sessions where
they will be spending their summer at the State Capitol instead of on
the doors of potential voters. Also, the public has a perception that
the legislature should get its business done in the time allotted by the
Constitution. When that does not happen, the voters get restless and
opponents have an opportunity to point out the fallacies of the
incumbent legislator to the voters.
In conclusion,
Oklahoma, this past November, celebrated their 100th
year anniversary as a state. Being such a new state, the Oklahoma
political process constantly goes through peaks and valleys. The good
news is that the energy industry, specifically the oil and gas
industries, is still doing great, allowing the revenues for the state to
grow. The bad news is that the State Legislature and Governor in the
past several years have cut taxes anticipating a greater continual
growth than has actually happened. That means that this year schools,
corrections and healthcare may have to tighten their belts a little bit,
while, hopefully, smart people make smart decisions to create an
economic model to allow Oklahoma to not continually fight to be last in
the nation in healthcare, education, bridges and roads and numerous
other topics. Oklahoma needs to fight for the top in public education,
healthcare, transportation and a state that is friendly to both domestic
and foreign investments as well as domestic and foreign people.
Back to top
April 3, 2008
News and Views
by Pat Hall
The
Oklahoma legislative session has nearly reached its second deadline for this
year. Bills that originated in the Oklahoma House had to be heard in the
State Senate Committee by Thursday, April 3rd. Bills that originated in the
Senate have a little more time in the House due to their different committee
structure. In the Oklahoma House of Representatives, a bill first goes to a
sub-committee, then to the full committee, and then to the floor of that
body. We mention these deadlines to provide a roadmap of the legislation
that the SouthWestern Association is supporting, monitoring or opposing. Not
only is the SouthWestern Association monitoring, supporting and opposing
legislation, the organization is also deeply concerned about topics such as
immigration reform, lawsuit reform and maintaining the tax exemption on farm
equipment sales. These three topics have been hotly debated during the 2007
and now the 2008 legislative sessions in Oklahoma. This report is lengthier
than most so we can play catch-up and then, in the future, this report will
be structured in bullet points with an opportunity for members to contact
the Association for further information where needed.
Probably the most important piece of legislation specifically written by,
supported by and lobbied by the
Oklahoma members of the SouthWestern
Association has been the Dealers and Manufacturer’s legislation. In 2007,
State Senator J. Paul Gumm (D) from Durant, and State Representative Rob
Johnson (R) from Kingfisher, introduced a bill to support the farm implement
and equipment dealers in clarifying and extending many of the rights they
currently have when purchasing, exchanging or even selling their business.
In 2007, Senate Bill 1069 moved through the legislative process with
opposition from trailer manufacturers, FEMA and the DitchWitch Company in
Oklahoma. This opposition was
not strong enough to defeat the bill, but it was strong enough to force us
to continue negotiations and to lay the bill over in a conference committee
for the 2008 legislative session. During the interim, CEO Jeff Flora
continued negotiations with FEMA and the DitchWitch Company and some of the
concerns were alleviated, but others still remain from those two groups. In
order to satisfy the small trailer manufacturers there is now language in
the conference committee report that will exempt trailers from the
legislation. The SouthWestern Association has negotiated in good faith with
FEMA as well as with DitchWitch Company, but we have reached an impasse and
it is time for us to have your legislation heard in both the House and
Senate and hopefully sent to the Governor for his signature. In the next 10
days, you will hear from the Association and be asked to call your State
Senator and your House member to support the Dealer’s and Manufacturer’s
legislation. It may or may not still be Senate Bill 1069 and further
information will be forthcoming from Association headquarters.
This year, in order to have another Dealer’s and
Manufacturer’s bill kept alive, Senator Gumm introduced a specific change to
the laundry list of those items that are contained in the dealer’s and
manufacturer’s current legislation. Senator Gumm and Representative Dan
Sullivan (R),
Tulsa, at our request, have
included ATVs on that list. This legislation, Senate Bill 1608,
is moving through the process and may or may not continue depending
upon the success of the Senate Bill 1069 from 2007 session.
The attempt by Senator Mike Mazzei (R), Tulsa, to
evaluate and sunset (eliminate at some point in the future) the numerous
sales tax exemptions and tax credits contained within the Oklahoma state
statutes did not pass out of the Oklahoma State Senate this year. Many
members of the SouthWestern Association were concerned that this was an
attempt to remove the sales tax exemption from farm implement sales. That
particular exemption was in the Mazzei bill but, as previously mentioned,
that bill is no longer alive. That does not mean that during this session
there will not be another attempt to evaluate the sales tax exemptions and
to possibly attempt to remove those exemptions. The lobbyists for the
SouthWestern Association will be monitoring all tax bills to ensure that
exemption is not removed and we will be working with all in the Agriculture
community to preserve and protect those agriculture exemptions.
In 2007, there was an attempt by the Oklahoma Motorcycle
Dealers Association to place a tax and licensing requirement on the sale of
ATVs. The attempt by the Motorcycle Dealers Association also would have
placed that burden on members of Southwestern Association that sell ATVs.
Working with Association members, we were successful last year in ensuring
that bill was not signed into law. Over the interim, Tag Webb and the
Association’s lobbyists worked hard with the representatives from the
Motorcycle Dealers Association to ensure there would be an exemption for
those farm implement dealers that also sold ATVs and legislation introduced
this year clearly has that exemption in it. Working with the Motorcycle
Dealers Association has resulted in cooperation and compromise while at the
same time we are trying to help the Motorcycle Dealers solve a serious
problem to their business from what they have told us are non-regulated
sellers.
Lawsuit or tort reform for 2008 does not have very good
prospects. In 2007, Senate Bill 507, a comprehensive lawsuit reform bill,
was sent to Governor Henry and, because of several issues, he vetoed that
bill. There were not enough votes to override his veto in the State Senate
so everyone went back to negotiating lawsuit reform. Since 2008 is an
election year, the chances of a comprehensive lawsuit reform bill being
brought up in the legislature are not good. There are rumors that the
Governor and legislative leaders are meeting behind closed doors to talk not
only about lawsuit reform, but also about the budget, immigration reform and
other items. We can hope that in 2009 lawsuit reform will be a major
priority of the legislature.
Last year the business, agriculture, faith based and
education communities were asleep at the wheel when immigration reform or
House Bill 1804 was passed and signed into law. Many believe that the bill
had no enforcement dollars in it and all it did was mirror current federal
law. Today, the agriculture community as well as the business community,
many times the same people, along with those in the faith-based community to
include the Southern Baptist Convention, Methodist church, and numerous
other denominations, have realized that House Bill 1084 had unintended
consequences. The unintended consequences were that thousands of Hispanics,
both legal and illegal, have moved out of
Oklahoma into other states.
This movement of both legal immigrants, as well as illegal immigrants, has
caused a tremendous work shortage in the construction, restaurant,
landscaping and, possibly the hardest hit, agriculture businesses. They have
guarantees from the legislative leadership that there will be no further
immigration reform or burdens placed on businesses this legislative session.
But on July 1, 2008, the penalties on businesses that knowingly or
unknowingly have illegal immigrants on their payrolls will take effect. For
the past year, the provisions of House Bill 1804 were really only applying
to the public sector or state employees, schools and hospitals: those
entities that took tax dollars. But, as previously stated, on July 1, 2008,
the criminal penalties will also be placed on businesses. I know prior to
that date if we have not been able to eliminate that provision of the bill
or to move the date forward one year, while further study is implemented,
the Association will be notifying members about the provisions of the
original bill. For the record, the
Association is not supporting illegal immigration or the drain on your tax
dollars for services to illegal aliens.
The Association is in favor of more reasonable approaches to this
Federal problem.
Also, beginning
January 1, 2008,
the relationship with the SouthWestern Association and the Capital Group
headed by longtime Association lobbyist Pat Hall has changed. In 2008, Pat
Hall has joined with former Republican legislator from
Bartlesville, Jim Dunlap, in a
company named Majority Plus, LLC. This company has existed for the past four
years, but Hall has moved his contract with SouthWestern Association to
Majority Plus so that the membership would have truly a bipartisan look and
would have lobbyists with deep ties in both the Republican and Democratic
Party circles.
Back to top
March 27, 2007
Legislative
Report
Tracking List Bills
ATV
HB1606
Short
Title: An Act relating to motor vehicles; amending 47 O.S. 2001,
Section 11-202, which relates to traffic control signals; authorizing drivers
of motorcycles and bicycles to proceed through certain intersections;
providing that certain actions do not constitute a defense; amending 47 O.S.
2001, Section 1102, as last amended by Section 2, Chapter 295, O.S.L. 2006 (47
O.S. Supp. 2006, Section 1102), which relates to definitions used in the
Oklahoma Vehicle License and Registration Act; modifying certain definition;
and providing an effective date. (Amended by House)
Paraphrase:
HB1606, by Rep. T.W. Shannon, R-Lawton and Sen. Harry Coates, R-Seminole,
provides circumstances under which a motorcycle or bicycle may proceed through
an intersection when facing a steady red traffic control signal. The measure
modifies the definition of "all-terrain vehicle" under the Oklahoma Vehicle
License and Registration Act. (Amended by House)
Classification: Important Position: Support
Principal
Authors: Shannon, T.W. (H); Coates, Harry (S)
Status:
Second Reading - Referred to Senate Committee Status Date: 03/15/2007
Committee: Public
Safety and Homeland Sec (S)
HB1686
Short
Title: (motor vehicles - all-terrain vehicles - codification -
effective date ) (Amended by House, Stricken Title, Committee Substitute)
Paraphrase:
HB1686, by Rep. Bill Nations, D-Norman and Sen. Andrew Rice, D-Oklahoma City,
requires persons under age 18 to wear a crash helmet while operating or riding
as a passenger on all-terrain vehicle (ATV) on public lands. The measure
prohibits passengers on ATVs unless that vehicle was designed to carry
passengers. Peace officers, including park rangers, would be responsible for
enforcement of the bill's provisions. Punishment for violation would be a $25
fine. (Amended by House, Stricken Title, Committee Substitute)
Classification: Important Position:
Principal
Authors: Nations, Bill (H); Rice, Andrew (S)
Status:
Second Reading - Referred to Senate Committee Status Date: 03/26/2007
Committee: Public
Safety and Homeland Sec (S)
SB0086
Short
Title: [ motor vehicles - Oklahoma Vehicle License and Registration
Act - effective date - emergency ] (Amended by Senate, Stricken Title,
Emergency Measure)
Paraphrase:
SB0086, by Sen. Harry Coates, R-Seminole and Rep. Ron Peterson, R-Broken
Arrow, modifies the definition of an all-terrain vehicle to be 48 inches or
less in width, weigh 800 pounds or less and include a seat meant to be
straddled by the operator and is steered by handlebars. (Amended by Senate,
Stricken Title, Emergency Measure)
Classification: Important Position: Support
Principal
Authors: Coates, Harry (S); Peterson, Ron (H)
Status:
Committee Reassignment - House Status Date: 03/15/2007
Committee: Judiciary
& Public Safety (H)
Manufacturer/Dealers
SB1069
Short
Title: An Act relating to motor vehicles; creating the Fair Practices
of Equipment Manufacturers, Distributors, Wholesalers and Dealers Act;
providing short title; stating purpose; defining terms; providing violations;
providing for termination of certain dealer agreements without cause;
providing for certain notice; stating certain provisions do not apply to
certain agreements between a single-line dealer and its single-line supplier;
prohibiting suppliers from terminating certain agreements without good cause;
defining term; stating when good cause shall exist; providing for notice of
termination of a dealer agreement by a supplier; providing certain time to
cure certain deficiencies; providing termination notice be void upon certain
cure; prohibiting termination under certain circumstances; stating when notice
and right to cure shall not apply; providing procedures for supplier with
contractual authority or an equity ownership interest therein to approve or
deny certain request for sale or transfer of a dealer's business; providing
procedures for supplier with contractual authority or an equity ownership
interest therein to approve or deny certain request for sale or transfer of a
dealer's business upon the death of a dealer; stating certain provisions do
not apply to certain agreements between a single-line dealer and its
single-line supplier; stating certain provisions shall apply to certain dealer
agreements between a single-line dealer and its single-line supplier;
prohibiting supplier from terminating certain dealer agreements without good
cause; defining term; stating when good cause exists; providing procedures for
notice of certain termination; providing certain time to cure certain
deficiencies; providing termination notice be void upon certain cure;
providing for certain reasonable period of time for certain good cause;
stating when notice and right to cure shall not apply; providing procedures
for a supplier to consider and make certain determination relating to certain
request by a family member upon the death of a dealer; requiring certain
agreements relating to succession rights be observed; providing for the
acceptance or rejection of certain warranty claims; providing for certain
disapproved claims; providing for compensation of certain warranty work;
stating what will be deemed to create certain warranty claims; providing for
certain audits of warranty claims; stating when certain requirements apply to
certain warranty claims and when such claims are unreasonable; providing for
certain alternate reimbursement terms and conditions; providing for certain
payments to a supplier if certain agreements are cancelled; providing for the
title to certain inventory to pass to a supplier; providing for certain
payments for certain credit due; providing for certain refusal to repurchase
certain inventory; providing for certain payment for certain shipping;
providing for the retainage of certain lien; construing language; stating
certain repurchase shall not be required under certain circumstances;
providing for violations; stating certain actions shall be void; stating what
dealer agreements the act shall apply to; stating that provisions of the act
shall be supplemental to certain dealer agreements; allowing dealer to pursue
certain remedies; providing an exception; providing for codification; and
providing an effective date. (Amended by Senate)
Paraphrase:
SB1069, by Sen. Jay Paul Gumm, D-Durant and Rep. Rob Johnson, R-Kingfisher,
creates the Fair Practices of Equipment Manufacturers, Distributors,
Wholesalers and Dealers Act to regulate the business relations between
independent dealers and equipment suppliers of agricultural, construction,
utility, industrial, mining, outdoor power, forestry and lawn and garden
equipment. (Amended by Senate)
Classification: Important Position: Support
Principal
Authors: Gumm, Jay Paul (S); Johnson, Rob (H)
Status:
Second Reading - Referred to House Committee Status Date: 03/19/2007
Committee: Gen
Govt & Transportation (H)
Back to top
March 1, 2007
Pat Hall
Oklahoma Legislative Report
The Oklahoma Legislature is only four weeks
old, but the direction and agenda for both the Republican and Democrat
members of the Oklahoma House and Senate are starting to become clear.
Governor Brad Henry (D) opened up the legislative session by a very positive
and upbeat State of the State Address. Henry kept his address to
discussions on education, healthcare, economic development and certainly
discussion on Oklahoma’s Centennial (100-year anniversary). Henry’s speech
was interrupted approximately 24 times by Democrats in attendance and many
of those times Republicans also joined in. At the Speaker’s table were also
new Lt. Governor Jari Askins (D) and new Speaker of the Oklahoma House Lance
Cargill (R). The one unusual thing that all Oklahomans observed on the first
Monday in February was that there was not just one leader of the Oklahoma
State Senate, but two. The Oklahoma State Senate is tied 24 Democrats and 24
Republicans. The two leaders, Senator Morgan (D) and Senator Coffee (R),
have hammered out a power-sharing agreement, which will ensure that all
committees are equally divided between the two parties; and the leadership
will be divided so that legislation must be agreed upon by both parties
(with some exceptions) before it will be heard before a committee or on the
floor of the State Senate. There are numerous particulars within the rules
that have forced lobbyists, media, state agencies and all political pundits
to become better informed on the rules of the State Senate to have passage
of legislation.
The Governor’s State of the State was not
controversial and he declared that the economy of Oklahoma continues to
prosper and thus creates opportunities for additional public education
funding, as well as economic development growth to include research dollars
put into “EDGE” program. Maybe the only real disagreement during the
Governor’s 40-plus minute speech between the two political parties was his
agenda to create early childhood development opportunities and allow schools
to open their doors to three-year-old programs. Currently Oklahoma does have
mandatory kindergarten as well as opportunities for four year olds to enter
into the public education system. Governor Henry’s proposal is a first to
lower that age to three year olds and to create early childhood development
opportunities at those schools that wish to participate. This program has been
backed by a very successful businessman from Tulsa, George Kaiser, who has
been consistently rated as one of the wealthiest Americans in Forbes magazine
and other such reporting entities. Mr. Kaiser has been in favor of early
childhood development for many years and has actually put millions and
millions of dollars into programs to advance his belief in early childhood
development. This may be a case of the public sector catching up with the
private sector and not vice versa. What many Republicans heard was another
unfunded mandate on public schools. Also a belief by some conservative
Republicans is that the home should be providing early childhood development
and not the schools. This debate and controversy will continue even though
Henry-supported legislation was defeated in a Senate Committee during the
third week of the legislative session.
Oklahoma’s budget for the 2007 Legislative
Session (to be appropriated for actually the 2008 fiscal year) is in excess of
$7 billion. Those government services that cannot seem to get enough funding
are higher education, corrections and transportation. This year,
transportation will receive approximately $120,000,000 of the projected growth
revenue. Oklahoma’s roads and bridges have been in constant need of repair and
it has only been in the last two years that the legislature has become serious
about funding Oklahoma’s transportation infrastructure. Again, for the first
time in recent memory, the Oklahoma legislature is appropriating revenue to
the Department of Transportation for a bridge repair and removal program.
Corrections does not seem to be shrinking in Oklahoma and the State continues
to lead the nation in the percentage of incarceration of women. Some
discussion has actually taken place prior to the legislative session between
the Republican Speaker and Democrat Governor on alternatives to incarceration
to include increased funding for drug courts and to effectively launch the
mental health court system. The mental health courts have been more of a pilot
program the last few years to determine if, in fact, they are effective and
appropriate for the treatment of non-violent inmates as a way to keep them out
of the penal system. Higher education has always been under-funded in Oklahoma
and the Legislature is beginning to recognize, along with the private sector,
that one of the best answers to trying to tackle Oklahoma’s poverty rates is
an educated work force. With an educated work force, economic development has
a better tool to recruit with. The 2007 Legislation, of course, will have its
bumps. It will have its political fights, but as in the last 99 years of
Oklahoma State history, the peoples’ business will get done. The difference in
the last decade versus the first eight is that there is now a constitutional
time limit on the number of days the legislature can meet. They must sine die
(adjourn) by 5:00 p.m. on the last Friday in May. At that time, all bills that
are on the desk will remain there for the second year of this legislative
session or the Governor must call the legislature into a special session for a
specific purpose.
Some of the other issues that will be discussed
during this legislative session are:
-
Lawsuit reform:
There is, as usual, much discussion about the issue of lawsuit reform, not
just as a political issue, but certainly, as a medical access issue. This
year will be no different. Discussion on lawsuit reform, or as some refer to
it, tort reform, has already surfaced at the Oklahoma State Capitol and,
unlike most years, a Democrat has taken charge of this process. Democrat
State Senator Susan Paddock from Ada has successfully gotten a lawsuit
reform bill through the powerful Senate Judiciary Committee on an almost
unanimous vote. The next months will tell if the legislature is serious
about lawsuit reform for the medical profession and others or if it, one
more time, will become a political football.
-
Immigration:
This issue has not been as prevalent in Oklahoma as many other Southwestern
and Southern states. There have been numerous bills introduced to try to
deny benefits from “illegal immigrants” but the tension has not been as
great as we have been led to believe that other states are experiencing. The
one issue on the immigration subject that is really controversial in
Oklahoma is the attempt to pass laws for “English only.” In Oklahoma, the
“English only” legislation is strongly opposed by the 38 federally
recognized Native American tribes in the state. Many of the leaders of
Native American tribes, such as the Cherokees, the Chickasaws and the
Creeks, have expressed outrage and anger at the attempt by the Oklahoma
legislature to legislate and dictate to Native American people. This issue
of “English only” may or may not pass through the Oklahoma legislature but
most political pundits firmly believe that Governor Brad Henry will veto any
“English only” legislation because of his past statements and relationships
with Native American people.
-
Water: Most
Oklahomans are not yet aware that one of the most pressing issues at the
Oklahoma State Capitol and probably for the entire state is what to do with
water – and not just what to do with water, but how to make sure that those
than don’t have it, get it, as well as to determine who owns it. Most
legislators are starting to come to recognize and realize that water issues
will probably replace most other economic development or infrastructure
discussions maybe for the next decade. Southeastern Oklahoma has an
abundance of water, but most in that area are unwilling to sell that
precious commodity. In Western Oklahoma, there is no water and Federal Corps
of Engineer lakes that were built originally for water sheds and for flood
control are now being perceived by many as recreational lakes. A conflict
has arisen between those needing water for irrigation of cotton and wheat
versus those in the tourism industry who believe the lake levels need to be
kept full in order to attract tourism and hard-earned economic dollars.
Tarrant County, Texas has sued the State of Oklahoma to force Oklahoma to be
able to negotiate water sales to that county. All fights are not over water
for irrigation or drinking or even the sale of water to Texas. Another
raging battle is in Eastern Oklahoma over the pollution of once pristine
rivers and lakes allegedly by Arkansas and Oklahoma poultry companies and
growers. Oklahoma’s Attorney General Drew Edmondson has filed lawsuits
against numerous poultry companies demanding that they clean up Oklahoma’s
rivers and lakes in Eastern and Northeastern Oklahoma. This has led to
public and media battles by both sides, both accusing the other of either
not playing fair or of exaggerating their cause. Edmondson was recently
re-elected to a fourth term as Attorney General by a margin of 65 percent of
the vote. That does not seem to deter the Arkansas poultry companies who,
working with other entities of the agriculture community, are continuing to
battle A.G. Edmondson over this issue.
Those are the big issues that are at the
Oklahoma State Capitol this year, but another problem has been recognized and
is being addressed in a slower and maybe more subtle way: Oklahoma has too
many uninsured, especially children. Access to healthcare has become a major
issue since most national healthcare reporting entities have listed Oklahoma
as either being critical or if a letter grade has been given, we receive a “D”
or an “F.” One part of economic development is quality of life. Oklahoma not
only wants to make sure that their children have adequate healthcare, it has
also become very recognizable that without adequate healthcare, companies will
not relocate here and the economic development opportunities for Oklahoma, no
matter how low the taxes or how cheap the utilities, will still not attract
companies without adequate healthcare access in facilities. Speaker of the
House Lance Cargill has launched a Florida-like plan called 100 Ideas. Speaker
Cargill has asked Oklahomans to submit ideas to make the State better or more
productive. His critics have claimed it is nothing but a partisan move, but
his supporters have said it is to try to get ideas from real Oklahomans and
not just those engaged in the political process. Time will tell if Speaker
Cargill has come onto a good idea himself or if politics prevail. I know
political pundits such as me believe that if even one good idea comes out of
the 100 Ideas then, politics or not, his exercise is worth it.
The 2007 Oklahoma Legislative Session will be
memorable for several reasons. A popular Democratic Governor has been
re-elected in a “red state” by a margin of 65 percent to 35 percent. The
Oklahoma Legislature is now in predominantly Republican control. Since
statehood 99 years ago, the Republicans have never controlled the Oklahoma
House, Senate and Governor’s office at the same time. This year will be no
different. The Republicans control the House, it is even in the Senate and a
Democrat controls the Governor’s office. What has happened recently is that
because of income tax collections falling below estimates, the Equalization
Board, which certifies the amount of money that is able to be spent by the
legislature, had to decrease their original estimates by approximately
$200,000,000. What will that hold for agencies, public education and tax cuts
is yet to be seen. This will be a year of cooperation in the Oklahoma State
Senate, as well as an opportunity for the Governor to create a legacy for
himself and his administration. As they have said in television for many
years, the final statement about the 2007 Oklahoma Legislative is simply “stay
tuned”!
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February 12, 2007
Pat Hall
Oklahoma Legislative Report
The first week of the Oklahoma Legislature is now
in the history books without any real incidents, problems or excitement. The
Republicans have a healthy majority in the House but,
for the first time in Oklahoma history,
the Senate is tied at 24 Democrats and 24
Republicans. The Democrats have a slight edge because the President of the
Senate is the Lieutenant Governor and that is Democrat Jari Askins,
who can vote in case of a tie. Most political pundits do not expect Askins
will have to vote but because of her service in the Oklahoma House she does
understand the process, issues and would not hesitate to lead if the
circumstances required her to do so.
On February 5th,
Democrat Governor Brad Henry gave his State of the State speech to a joint
session of the legislature. The popular Governor has been very fortunate to
have a state where the revenue (taxes, fees
etc) has increased so he did not have to
propose unpopular cuts to programs. Instead,
Governor Henry got to talk about more funding for education, healthcare and
economic research to include “biofuels.”
As expected, the Democrats applauded at every
idea but, surprisingly,
the Republicans also applauded at many of the Governor’s
proposals.
Since last week was the first week of a four-month
legislative session [NOTE: the Oklahoma Constitution was amended in the early
1990s to mandate that the session start on the first Monday in February and
end at 5PM on the last Friday in May], not
much actual legislative business was conducted.
The Association has sponsored two legislative bills
that will properly define ATVs in the Oklahoma statutes and have been agreed
to by the manufacturers and us. Those bills
are House Bill 1606 by Representative Shannon (R-Lawton)
and Senate Bill 86 by Senator Coates (R-Seminole).
The SouthWestern Association has also spent several
years working with the manufacturers to
prepare and draft a Dealer/Manufacturer
Uniform (fair practices) model piece of legislation for introduction this
legislative session. The Association has asked two prominent members of the
Oklahoma legislature to introduce the fair dealer
legislation. We asked State Senator Jay Paul Gumm (D-Durant)
to introduce Senate Bill 1069 and State Representative Rob Johnson (R-Kingfisher)
to introduce the exact same bill in the House,
HB1454. This legislation is very important to all members of the Association
and hopefully you will contact your legislators immediately and ask them to
"fall on their swords" for these two bills. The SouthWestern Association has
sent action information to each of you
outlining what we hope you will do to help Tag Webb, Jimmy Durant, Pat Hall
and Jeff Flora pass one of these measures into law.
Just think, all of
this is happening in just one week!
Tracking
List Bills
ATV
HB1426
Short Title:
An Act relating to motor vehicles; amending 47 O.S. 2001, Section
1-135, as amended by Section 3, Chapter 521, O.S.L. 2004 (47 O.S. Supp. 2006,
Section 1-135), which relates to motor vehicle definitions; modifying certain
definition; amending 47 O.S. 2001, Section 562, as last amended by Section 2,
Chapter 213, O.S.L. 2006 (47 O.S. Supp. 2006, Section 562), which relates to
definitions concerning regulation of dealers of new motor vehicles; modifying
certain definition; amending 47 O.S. 2001, Section 1102, as last amended by
Section 2, Chapter 295, O.S.L. 2006 (47 O.S. Supp. 2006, Section 1102), which
relates to definitions concerning the Oklahoma Vehicle License and
Registration Act; modifying and adding certain definitions; and providing an
effective date.
Classification: Important Position: Oppose
Principal Authors: Jordan, Fred (H)
Status: Second Reading - Referred to House
Committee Status Date: 02/06/2007
Committee : Appropriations & Budget (H)
HB1606
Short Title:
An Act relating to motor vehicles; amending 47 O.S. 2001, Section
1102, as last amended by Section 2, Chapter 295, O.S.L. 2006 (47 O.S. Supp.
2006, Section 1102), which relates to definitions used in the Oklahoma Vehicle
License and Registration Act; modifying certain definition; and providing an
effective date.
Classification: Important Position: Support
Principal Authors: Shannon, T.W. (H)
Status: Subcommittee - Laid Over Status Date:
02/07/2007
Committee : Judiciary & Public Safety (H)
Homeland Security
SB0086
Short Title:
An Act relating to motor vehicles; amending 47 O.S. 2001, Section
1102, as last amended by Section 2, Chapter 295, O.S.L. 2006 (47 O.S. Supp.
2006, Section 1102), which relates to the Oklahoma Vehicle License and
Registration Act; modifying definition; providing an effective date; and
declaring an emergency. (Emergency Measure)
Classification: Important Position: Support
Principal Authors: Coates, Harry (S)
Status: Second Reading - Referred to Senate
Committee Status Date: 02/08/2007
Committee : Transportation (S)
Manufacturer/Dealers
HB1454
Short Title:
An Act relating to motor vehicles; creating the Fair Practices of
Equipment Manufacturers, Distributors, Wholesalers and Dealers Act; stating
legislative purpose; defining terms; specifying acts that constitute
violations of the act; providing for termination of dealer agreements;
providing circumstances for existence of good cause; providing procedures for
notice of termination of dealer agreement; providing procedures for requesting
the sale or transfer of business; providing for termination of single-line
dealer agreements; providing circumstances for existence of good cause;
providing notice requirements; providing for consideration of request for new
dealer agreement upon death of dealer; prohibiting entitlement to operate
dealership without certain consent; providing for observation of previously
executed agreement; providing procedures for acceptance or rejection of
warranty claim; providing for resubmission of warranty claim; providing for
compensation of warranty work; providing for audit of warranty claims;
providing for alternate reimbursement terms and conditions; providing
repurchase obligations of supplier upon cancellation or discontinuance of
dealer agreement; providing procedures for payment or allowance of credit to
certain account; providing for civil liability under certain circumstances;
requiring retainment of lien against inventory; stating circumstances in which
repurchase from a dealer is not required; authorizing filing of action for
certain damages; making certain action void; stating applicability of the act;
providing for choice of remedies; providing for severability; providing for
codification; and providing an effective date.
Classification: Important Position: Support
Principal Authors: Johnson, Rob (H)
Status: Second Reading - Referred to House
Committee Status Date: 02/06/2007
Committee : Gen Govt & Transportation (H)
SB1069
Short Title:
An Act relating to motor vehicles; providing short title; creating
the Fair Practices of Equipment Manufacturers, Distributors, Wholesalers and
Dealers Act; stating purpose; defining terms; providing violations; providing
for termination of certain dealer agreements without cause; providing for
certain notice; stating certain provisions do not apply to certain agreements
between a single-line dealer and its single-line supplier; prohibiting
suppliers from terminating certain agreements without good cause; defining
term; stating when good cause shall exist; providing for notice of termination
of a dealer agreement by a supplier; providing certain time to cure certain
deficiencies; providing termination notice be void upon certain cure;
prohibiting termination under certain circumstances; stating when notice and
right to cure shall not apply; providing procedures for supplier with
contractual authority or an equity ownership interest therein to approve or
deny certain request for sale or transfer of a dealer's business; providing
procedures for supplier with contractual authority or an equity ownership
interest therein to approve or deny certain request for sale or transfer of a
dealer's business upon the death of a dealer; stating certain provisions do
not apply to certain agreements between a single-line dealer and its
single-line supplier; stating certain provisions shall apply to certain dealer
agreements between a single-line dealer and its single-line supplier;
prohibiting supplier from terminating certain dealer agreements without good
cause; defining term; stating when good cause exists; providing procedures for
notice of certain termination; providing certain time to cure certain
deficiencies; providing termination notice be void upon certain cure;
providing for certain reasonable period of time for certain good cause;
stating when notice and right to cure shall not apply; providing procedures
for a supplier to consider and make certain determination relating to certain
request by a family member upon the death of a dealer; requiring certain
agreements relating to succession rights be observed; providing for the
acceptance or rejection of certain warranty claims; providing for certain
disapproved claims; providing for compensation of certain warranty work;
stating what will be deemed to create certain warranty claims; providing for
certain audits of warranty claims; stating when certain requirements apply to
certain warranty claims and when such claims are unreasonable; providing for
certain alternate reimbursement terms and conditions; providing for certain
payments to a supplier if certain agreements are cancelled; providing for the
title to certain inventory to pass to a supplier; providing for certain
payments for certain credit due; providing for certain refusal to repurchase
certain inventory; providing for certain payment for certain shipping;
providing for the retainage of certain lien; construing language; stating
certain repurchase shall not be required under certain circumstances;
providing for violations; stating certain actions shall be void; stating what
dealer agreements the act shall apply to; stating that provisions of the act
shall be supplemental to certain dealer agreements; allowing dealer to pursue
certain remedies; providing for codification; and providing an effective date.
Classification: Important Position: Support
Principal Authors: Gumm, Jay Paul (S)
Status: Second Reading - Referred to Senate
Committee Status Date: 02/08/2007
Committee : Business & Labor (S)
This legislative update is sent as a member service during
the legislative session only.
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For more information about the SouthWestern Association's
lobbying activities, contact
Jeff Flora.
