MIKE JACKSON

Issue Areas: Economic Development, Taxation and Financial Services; Energy/Natural Resources

Issues are heating up, and the sunny mood at the capitol is starting to fade, which is typical at this point in the legislative process. This week is the second committee deadline, and many of the bills we’re watching and supporting are becoming more controversial as the political stakes get higher.

The good news is that some priority, pro-business legislation continues to advance. SB 1 and HB 2484 would improve accountability, enhance transparency and produce better results for the state. These two bills create a Legislative Office of Fiscal Transparency (LOFT) or Government Accountability Office (GAO). These bills are a priority for State Chamber members and are also part of the OK2030 plan. LOFT and GAO are designed to give lawmakers tools to hold agencies accountable and provide independent data on budgets and performance.

Three additional bills that will help strengthen Oklahoma’s economy remain in play: SB 797 and HB 2095 extend the compressed natural gas (CNG) tax credit on vehicles and infrastructure. The bills incentivize investment and purchase of natural gas vehicles, CNG infrastructure and electric vehicle infrastructure. These two bills follow the Incentive Evaluation Commission’s recommendation to extend the credit. HB 2665 is needed for Oklahoma businesses to continue deducting state and local taxes from federal taxes. The legislation, known as the SALT Parity Fix, protects nearly 135,000 Oklahoma businesses at risk of losing a SALT deduction this year.

We also continue to oppose bills that would increase taxes on businesses. HB 1404 permits counties to levy a tax on the severance of natural materials mined for the production of aggregate (e.g., rock, gravel, sand, limestone or "any other natural materials") within the county. These new taxes will increase construction and infrastructure costs for businesses, state government and public schools. 

Another concerning bill, HB 2248, would remove the "sworn to" oath protection of tax returns and could make confidential tax return documents subject to open records requests. This bill removes the requirement that county assessors swear to the completion and accuracy of certain forms submitted to the Tax Commission.

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EMILY CROUCH

Issue Areas: Health Care; Workforce Development

One bill we continue to keep an eye on, HB 2134 , focuses on occupational licensing reform for individuals with criminal records. The bill has been assigned to Senate Business, Commerce & Tourism and needs to be heard next week. We support the bill as a responsible reform to help individuals with criminal records get back to work.

In the House Appropriations and Budget meeting on Wednesday, SB 773 , which provides mental health professionals with loan repayment assistance, received unanimous support. This bill will move to the House floor for a vote in the coming weeks.

Oklahoma has more than 2,000 emergency-certified teachers who have stepped up to fill the needs in classrooms across the state. HB 1316 requires those teachers with emergency certifications to complete professional development training before and during the school year. The bill passed in Senate Education this week and now heads to the Senate Appropriations committee for additional consideration.

Education priorities differ in the House and Senate and we could soon see which ideas will prevail as we near another committee deadline. The House passed a teacher pay raise bill in February, which provides $1,200 pay raise to all teachers. It is estimated to cost approximately $70 million annually. The Senate passed a bill that adjusts a school district’s option for a 4-day school week .

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CORDON DEKOCK

Aerospace, Defense, Technology and Telecommunications;

Transportation & Infrastructure

This week Governor Kevin Stitt signed HB 1210 by Rep. Carl Newton and Sen. Darcy Jech into law, and the bill will take effect later this year. This legislation streamlines the registration and payment of associated fees for commercial vehicle fleets with at least three vehicles. This common-sense legislation will help to reduce the paperwork burden on businesses of all sizes.

Before the committee deadline next week, two other pieces of legislation are likely to be passed from the Senate Appropriations Committee. HB 2142 and HB 2143, both by Rep. Chris Sneed and Sen. Kim David, will help the ports and businesses along the McClellan-Kerr Arkansas River Navigational System (MKARNS). HB 2142 creates the Tri-State Commission on MKARNS—along with Arkansas and Kansas—to seek appropriate federal funding for the backlog of $235 million in critical needs maintenance. HB 2143 creates a new fund at the state-level that can receive federal or state money that can be used for maintenance or economic development projects along MKARNS. The State Chamber Research Foundation's issue brief on MKARNS discusses the maintenance backlog as well as the economic benefits to the state of Oklahoma. 

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ADRIA BERRY

Human Resources & Labor Law; Legal Reform; Workers' Compensation

HB 2601, a bill related to medical marijuana that passed through the House by a 90-3 vote, received a hearing in the Senate Health & Human Services committee this week. It passed unanimously and will now head to the full Senate. This bill gives counties the authority to establish, assess and collect a fee of $250.00 from medical marijuana patients or caregivers who, upon request and approval by the county where they reside, exceed the maximum possession limits established in the law. This bill also gives the Department of Health the authority to exercise its powers to determine steps the state should take to ensure that research on marijuana is being conducted for public purposes including the advancement of public health & safety, agronomic best practices and medical best practices.

The Governor recently signed  HB 2612, the Oklahoma Medical Marijuana and Patient Protection Act. The bill will go into effect 90 days after the Legislature adjourns for the year, making right now a great time for employers to review their drug testing and employment policies to ensure that they are in line with the new law.  Get answers to frequently asked questions related to the workplace safety provisions of the bill.  

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Despite all the recent debates about oil and gas tax rates, the issue is still not widely understood. In the latest episode of In Session With the State Chamber , Dr. Mark Snead and Dr. Jennifer Lepard break down key findings from a new research report to provide a clear, comprehensive picture of Oklahoma oil & gas taxes – and how they compare to other states. Tune in to hear more and be sure to download the Oklahoma Oil & Gas Activity and Tax Contribution report .

You can also subscribe to the podcast on  iTunes or  Google Play to get all upcoming episodes.

Job growth continues to be a source of strength for the economy as U.S. employers have added an average of 180,000 jobs each month in 2019, and new claims for unemployment benefits dropped to the lowest level since 1969. With a strong labor market, wages are rising at a healthy rate. Average hourly earning for private-sector workers increased to $27.70 an hour in March.

The U.S. Department of Labor reported in March that Oklahoma had one of the largest decreases in initial claims for unemployment, along with California, Pennsylvania, Wisconsin and Ohio. Oklahoma’s unemployment statistics can be viewed in this dashboard developed by the Oklahoma Department of Commerce.