Oklahoma Aerospace ALLIANCE

February 27, 2011

  • January 01, 1970

    This week in the Oklahoma Legislature, double-assigned Senate bills had to be reported from their first committee.  This next week marks deadlines for the House and Senate committees, as they have to complete their committee work. Please see calendar below for deadline details and additional deadlines.

    Budget

    Oklahoma lawmakers will have $106.4 million more to spend this year than expected, after the state Board of Equalization certified new revenue estimates for fiscal year 2012. The increase in revenue will reduce the state’s budget shortfall to about $500 million.

    Meeting this week at the state Capitol for the first time, the new board – Gov. Mary Fallin, Lt. Gov. Todd Lamb, Auditor and Inspector Gary Jones, state Treasurer Ken Miller, school Superintendent Janet Barresi, Attorney General Scott Pruitt and Agriculture Secretary Jim Reese – voted unanimously to certify $5.025 billion in funds available for appropriations.

    That figure was 95 percent of the $5.289 billion in revenue certified by the board. Oklahoma’s constitution prevents lawmakers from spending the entire amount of certified revenue, limiting available funds to 95 percent. The revenue increase also would allow lawmakers to deposit about $71 million in the state’s rainy day fund.

    Documents released by the Office of State Finance this week showed the state’s revenue had grown from $4.888 billion to $5.246 billion. That figure was up by about $358 million.

    The board also took the final step that would allow the state’s individual income tax rate to be reduced from 5.5 percent to 5.25 percent for fiscal year 2012.

    State lawmakers have until May 27 to finalize the FY 2012 budget.

    Transportation

    Governor Mary Fallin and Congressman James Lankford welcomed Congressman John Mica (R-FL), Chairman of the House Transportation & Infrastructure Committee, to Oklahoma City for a field hearing on “Improving and Reforming our Nation’s Surface Transportation Programs.” Congressman Mica said he hopes to have a six-year surface transportation bill on the House floor in April, to replace the previous multiyear law that expired in September 2009. Hearings like these are being held in a few cities to garner public input.

    The Committee heard testimony from Gov. Mary Fallin, Sec of Transportation Gary Ridley, Former Sec of Transportation Neal McCaleb and other stakeholders to gain a better understanding of transportation issues in the state. During her testimony, Gov. Fallin expressed her desire for a long-term federal funding strategy “free of unfunded mandates or rigid one-size-fits-all requirements” that often slow road projects in the state.

    She took issue with the U.S. Department of Labor‘s proposal to divide Oklahoma into 66 territories with 36 different job classifications. Currently there are four territories and 22 job classifications. Fallin also said states shouldn’t have to acquire a new right of way or undergo a full environmental review, at an added expense, to repave an existing stretch of road.

    The Committee also discussed the possibility of adding freight lanes to interstates and turning over turnpikes to private companies.

    For more information, please see the following stories:

    •       Oklahoman: Oklahoma Gov. Fallin testifies at Congressional roads hearing

    •       AP: U.S. House panel hears roads testimony in Oklahoma

    Construction ends on IDL: For the first time since 2009, all legs of the Inner Dispersal Loop are open to traffic. Barriers on the eastbound lanes of the loop’s north leg came down about the same time local, state and federal officials celebrated the highway’s dedication. The dedication celebrated the $75 million stimulus-funded repaving

    Participants of the dedication included representatives of the Oklahoma Department of Transportation, Tulsa Mayor Dewey Bartlett, Gov. Mary Fallin, U.S. Rep. John Sullivan of the Tulsa area and U.S. Rep. John Mica, R-Fla., who leads the House Transportation and Infrastructure Committee.

    According to the Tulsa Metro Chamber, work on the loop created 382 new jobs and 210 indirect jobs. Its economic impact totaled $137 million.

    For more information, please see the following story:

    •       Tulsa World: No more detours: Construction ends on IDL

    Also this week, HB 1514, by Rep. Guy Liebmann, R-Oklahoma City, passed the House Appropriations and Budget Committee this week 13 to 1. HB 1514 would lift the cap by $100M for the Rebuilding Oklahoma Access and Driver Safety Fund to $500M. It would not become effective until 2017 and will help secure the continued  investment in the eight-year plan for ODOT operations.

    Lawsuit Reform

    One of the lawsuit reform measures, Senate Bill 863 by Sen. Anthony Sykes, R-Moore, has received full Senate has given approval. Supporters said the bill will help end Oklahoma’s reputation as a lawsuit destination state while preserving the right to a fair trial.  The measure received bi-partisan support with a vote of 29-18.

    Senate Bill 863 will put a hard cap on non-economic damages at $250,000, although that cap can be disregarded in certain cases if the court and jury determine a higher amount is justified.  SB 863 provides parameters for such cases.  The bill contains no provisions for capping economic damages.

    The bill will now move to the House of Representatives for further consideration.

    For more information, please see the following stories:

    •       Senate Press Release: Senate Approves Lawsuit Reform Legislation; Bill is a Part of Senate Republican Pro-Jobs Agenda

    •       Oklahoman Editorial: Tort reform effort brings return of same arguments

    •       Tulsa World: Bill to cap lawsuit damages passed by Oklahoma Senate 

    Workers’ Compensation

    Republican Gov. Mary Fallin’s plan to overhaul Oklahoma’s workers’ compensation system has cleared its first legislative hurdle and now heads to the state Senate for a vote. The Senate Judiciary Committee on Tuesday voted 6-3 along party lines to approve the 215-page bill (SB 878). Democrats on the committee opposed the measure. The bill would implement a standardized system of medical care that specifies how injuries are treated.

    For more information, please see the following stories:

    •       AP:  Oklahoma Gov. Mary Fallin’s workers’ comp plan clears state Senate panel

    •       Enid News and Eagle: Workers’ comp bill is approved

    Public Health

    The House Public Health Committee unanimously passed legislation this week which makes modifications to the Oklahoma Public Health Code. HB 2017 by Rep. Doug Cox (R-Grove), removes the maximum number of doctors who can participate in the Oklahoma Medical Loan Repayment Program. It also sets limits for each award based on the year of involvement in the program.

    Legislation designed to attract licensed physicians to rural areas passed the Senate Finance Committee 14 to 1. Senate Bill 233 by Senator Patrick Anderson, R-Enid, allows for a tax credit after January 1, 2012, for licensed primary care physicians practicing in a rural area. The credit is limited to $5,000 per year.

    The Supplemental Hospital Offset Payment Program (SHOPP), HB1381, by Rep Doug Cox; Passed out of House Appropriations Subcommittee on Public Health and Social Services and will be considered in House A&B this week.  The bill is designed to maximize federal opportunities for Medicaid, to achieve the Upper Payment Limit (UPL) for hospitals and to provide consistent and predictable funding for Medicaid and indigent care providers.

    Economic Development

    Clearing the House Revenue and Taxation Committee this week, House Bill 1008 by Rep. Skye McNiel, R-Bristow, now goes to the full House Appropriations and Budget Committee for consideration. HB 1008 reinstates an Oklahoma tax credit for aerospace companies that hire engineers.  The aerospace tax was included in a list of tax credits targeted for a two-year moratorium by lawmakers and the governor last session. The tax credits allow aerospace engineers to receive some tuition reimbursement if they come to work for a company in Oklahoma within one year of graduation. The law also grants a tax credit to an aerospace company for compensation paid to a qualified employee.

    Also, HB1953, by Rep Skye McNiel; passed out of House Committee on Economic Development, Tourism and Finance.  Thelegislation creates a Quick-Action Closing Fund for Economic Development.  The fund—which will share similarities with the Texas Enterprise Fund and the Arkansas Quick Action Closing Fund—will help Oklahoma compete with other states for much-needed jobs and investment.  HB 1953, makes substantial changes to the Oklahoma Opportunity Fund, which was first created in 2006. The changes include:

    •       changing the name to the Oklahoma Quick Action Closing fund

    •       addressing the project approval process by authorizing the governor to make the final decision on a project, subject to consultation with the Speaker of the House and President Pro Tempore of the Senate

    •       requiring a project to enter into an agreement with The Department of Commerce, who shall administer the Fund, and mandating that the agreement be performance based,  providing a “net economic benefit” to the state

    •       a “claw back” provision for failure to meet performance provisions

    For more information, please see the following stories:

    •       AP: Oklahoma House panel votes to spare aerospace tax credit

    •       Oklahoma Aerospace Alliance Press Release: Bills Restoring Engineering Tax Incentives Pass First Committee Hurdles in House and Senate

    Insurance

    To increase the incentive for all Oklahoma drivers to carry mandatory liability auto insurance, a House committee voted this week to prohibit uninsured drivers from being able to sue for vague “pain and suffering” damages after an accident. HB 1045 by George Faught, (R-Muskogee) sets the “maximum amount” an uninsured driver could receive through a lawsuit following an automobile accident, that would be limited to “the amount of medical costs, property damage, and lost income.”

    The bill would not allow uninsured drivers to sue for vague “pain and suffering” awards that often result in large settlements, potentially lowering the cost of auto insurance premiums in Oklahoma. The bill contains an exemption for situations where an uninsured driver is hit by a drunk driver or if the uninsured motorist was a passenger in a wreck. HB 1045 now advances to the floor of the Oklahoma House of Representatives.

    Senate Bill 876 by Anthony Sykes, R-Oklahoma City, contains similar language and has been referred to the Senate Judiciary Committee.

    The House Insurance Committee passed 7 to 4 House Bill 2080 by Rep. Charles Key, R-Oklahoma City, which would eliminate stacking of uninsured motorist limits. Currently, a person could choose to have uninsured motorist coverage on multiple vehicles under one policy, which means a 100/300 coverage would actually double with two vehicles under the policy The purpose of the bill is to help clarify the issue by requiring a separate premium for each policy and making clear what is covered for each vehicle.

    Review Weekly Bill Track

    Please see the below listing of all action taken on legislation being tracked for you in this first week of the first session of the 53rd Oklahoma Legislature Please thoroughly review the bill track and let me know of any concerns or any additional comments or insight you have about any legislation you see listed.

    In order to take full advantage of the bill track listing, please note the following:

    • At the top of each track is a “legend” showing the progress a bill has made which represents the color-coded bar just beneath the bill number.
    • The “bill number” can be clicked on to read the legislation in its entirety, simply click on the bill number, then click on the word “Introduced” to open the bill.
    • The name just to the right of the bill number shows the legislation’s author.
    • To the right of the bill author, you will see the “bill caption” which provides a brief overview of what the legislation pertains to.
    • Underneath the caption you will see the “bill history” and a listing of the last five actions taken as the bill moves through the legislative process.
    • Should you see a red “A” beside a bill number it indicates the bill has advanced and action has been taken since the prior week’s bill track.

    Should you wish to review any other 2011 legislation filed, in addition to what is provided you in this bill track, you may do so by visiting the Oklahoma Legislative Service Bureau website at http://www.lsb.state.ok.us/.

    February 2011

    • February 21 – SENATE – Double-assigned Senate Bills Reported from 1st Committee Deadline*
    • February 28 – SENATE – Single-assigned Senate Bills in Senate Committees Deadline*

    March 2011

    • March 3 – SENATE - Double-assigned Senate Bills Reported from 2nd Committee Deadline
    • March 3 – HOUSE – Bills to be heard in House Committee Deadline
    • March 17 – HOUSE & SENATE – Final Legislative Day for Final Passage of a Measure in House of Origin
    • March 31 – SENATE – Double-assigned House Bills Reported from 1st Committee Deadline

    SPIRITBANK AERO TRACKING REPORT 2/27/11

    02-27-2011 – 13:48:03


     

    HB 1008 

    McNiel Creates the “Engineering Tax Incentive Modification Act of 2011″.

     

    General Remarks: Aerospace Tax Credits Reinstatement

     

    Bill History: 02-07-11 H First Reading
    02-08-11 H Referred to House Committee on House A&B
    02-11-11 H Sent to subcommittee House A&B Sub on Revenue and Tax
    02-24-11 H Meeting set for 1:30 p.m., Room 432A, State Capitol, House A&B Sub on Revenue and Tax
    02-24-11 H Voted from subcommittee-Do Pass as substitute House A&B Sub on Revenue and Tax

     

    HB 1009 

    McNiel Creates the “Venture Capital Formation Tax Incentive Modification Act of 2011″.

     

    General Remarks: Venture Capital Formation Tax Incentive Modification Act of 2011

     

    Bill History: 11-17-10 H Filed
    02-07-11 H First Reading
    02-08-11 H Referred to House Committee on House A&B
    02-11-11 H Sent to subcommittee House A&B Sub on Revenue and Tax

     

    HB 1030 

    Reynolds Repeals two sections of law related to the Economic Development Generating Excellence Fund and the Economic Development Generating Excellence Fund Policy Board; EMERGENCY.

     

    Bill History: 12-20-10 H Filed
    02-07-11 H First Reading
    02-08-11 H Referred to House Committee on House A&B
    02-11-11 H Sent to subcommittee House A&B Sub on Gen. Gov. & Transportation

     

    HB 1285 

    Dank Creates the Task Force for the Study of State Tax Credits and Economic Incentives; outlines the membership and duties of the task force; EMERGENCY.

     

    Bill History: 02-07-11 H First Reading
    02-08-11 H Referred to House Committee on House A&B
    02-11-11 H Sent to subcommittee House A&B Sub on Revenue and Tax
    02-21-11 H Meeting set for 4:30 p.m., Room 412C, State Capitol, House A&B Sub on Revenue and Tax
    02-21-11 H Voted from subcommittee-Do Pass House A&B Sub on Revenue and Tax

     

    HB 1953 

    McNiel Establishes the “Opportunity Fund Act of 2011″; EMERGENCY.

     

    General Remarks: Deal Closing Fund

     

    Bill History: 01-20-11 H Filed
    02-07-11 H First Reading
    02-09-11 H Referred to House Committee on House Econ. Dev., Tourism & Financial Svcs.
    02-23-11 H Meeting set for 3:00 p.m., Room 412C, State Capitol, House Econ. Dev., Tourism & Financial Svcs
    02-23-11 H Voted from committee – Do Pass as substituted House Econ. Dev., Tourism & Financial Svcs.

     

    HB 1990 

    Sullivan Creates the “Oklahoma Multi-modal Transportation Authority Act”.

     

    Bill History: 01-20-11 H Filed
    02-07-11 H First Reading
    02-09-11 H Referred to House Committee on House Econ. Dev., Tourism & Financial Svcs.
    02-23-11 H Meeting set for 3:00 p.m., Room 412C, State Capitol, House Econ. Dev., Tourism & Financial Svcs.
    02-23-11 H Voted from committee – Do Pass as substituted House Econ. Dev., Tourism & Financial Svcs.

     

    HB 2161 

    Hickman Creates the Airport Improvement Act of 2011.

     

    Bill History: 01-20-11 H Filed
    02-07-11 H First Reading
    02-09-11 H Referred to House Committee on House Rules

     

    SB 3 

    Mazzei
    McNiel
    Reduces the time that aerospace sector employers are eligible to receive tax credits for tuition reimbursement and salaries paid to their employees by one year; EMERGENCY.

     

    General Remarks: Aerospace Tax Credits Reinstatement

     

    Bill History: 02-08-11 S Meeting set for 10:30 a.m., Room 511A, State Capitol, Senate Finance
    02-07-11 S First Reading
    02-08-11 S Title stricken in committee Senate Finance
    02-08-11 S Voted from committee – Do Pass as amended Senate Finance
    02-28-11 S Set on the Senate Floor Agenda

     

    SB 154 

    Mazzei
    Dank
    Changes the cutoff date for incentive payments to July 1, 2003; makes an exception for a change of control event pursuant to the Oklahoma Quality Jobs Program Act.

     

    Bill History: 02-08-11 S Meeting set for 10:30 a.m., Room 511A, State Capitol, Senate Finance
    02-07-11 S First Reading
    02-08-11 S Title stricken in committee Senate Finance
    02-08-11 S Voted from committee – Do Pass as amended Senate Finance
    02-28-11 S Set on the Senate Floor Agenda

     

    SB 192 

    Schulz Expands definition of “turnpike project” to include real estate and development projects designed to increase traffic and generate revenue while mitigating toll activity and potentially decreasing fees; EMERGENCY.

     

    General Remarks: Transform the Oklahoma Turnpike Authority (OTA) into an economic development tool

     

    Bill History: 02-07-11 S First Reading
    02-15-11 S Meeting set for 3:30 p.m., Room 534A, State Capitol, Senate Transportation
    02-15-11 S Not heard in committee Senate Transportation
    02-22-11 S Meeting set for 3:30 p.m., Room 534A, State Capitol, Senate Transportation
    02-22-11 S Not heard in committee Senate Transportation

     

    SB 323 

    Sparks Creates tax credits for the production of a payload rocket system; sets rules on payments and penalties; EMERGENCY.

     

    Bill History: 01-14-11 S Filed
    01-31-11 S Prereferred to Committee Senate Finance
    02-07-11 S First Reading

     

    SB 593 

    Brinkley Account procedures for the Port Authority are required to be the same procedures enforced by the State Treasurer for state funds under the Treasurer’s office; EMERGENCY.

     

    General Remarks: Port Authority bill

     

    Bill History: 02-07-11 S First Reading
    02-09-11 S Referred to Senate Committee Senate Finance
    02-22-11 S Meeting set for 10:30 a.m., Room 511A, State Capitol, Senate Finance
    02-22-11 S Title stricken in committee Senate Finance
    02-22-11 S Voted from committee – Do Pass as amended Senate Finance

     

    SB 594 

    Brinkley Updates the statutory reference to “Section 85.3 of this title” for the “Aerospace Development Act of 2008″; EMERGENCY.

     

    Bill History: 01-19-11 S Filed
    02-07-11 S First Reading
    02-09-11 S Referred to Senate Committee Senate Rules

     

    SB 705 

    Barrington Modifies sections regarding possession of certificates for people operating aircraft in the state and violations of such requirements; modifies sections regarding traffic offenses; EMERGENCY.

     

    Bill History: 01-20-11 S Filed
    02-07-11 S First Reading
    02-09-11 S Referred to Senate Committee Senate Judiciary

     

    SB 747 

    Brinkley Modifies Section 891.1 to be cited as Oklahoma Community Economic Development Pooled Finance Act.

     

    Bill History: 01-20-11 S Filed
    02-07-11 S First Reading
    02-09-11 S Referred to Senate Committee Senate Rules

     

     All   Track 
    Total Bills: 15 0

    - End of Report -

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