Notes
Oklahoma’s 2022 Legislative Session
THE STATE CHAMBER
2022 LEGISLATIVE AGENDA ACHIEVEMENTS
WORKFORCE SOLUTIONS HB 1933: Indexing Unemployment Benefits
Indexes unemployment benefits to economic conditions, getting individuals back in the workforce faster and preserving the solvency of the unemployment insurance (UI) trust fund. Authors: Rep. Ryan Martinez and Sen. Zack Taylor
HB 4388: Keeping Great Teachers in the Classroom
Provides new teaching level certificates to allow teachers who want to stay in the classroom with leadership roles and responsibilities. State lottery funds coupled with local matching funds will give targeted performance pay increases to new teaching level certificates. Authors: Rep. Kyle Hilbert and Sen. Adam Pugh
COMPETITIVE TAX CODE HB 3418: Making Oklahoma the First State to Make Full Expensing Permanent
Businesses can continue to fully expense equipment and machinery at the state level when the federal law implemented in 2017 expires. Oklahoma is the first to make this tax cut permanent, allowing businesses to continue to utilize this progrowth tax policy. Authors: Rep. Scott Fetgatter and Sen. John Michael Montgomery
HB 4455: LEAD Act
Creates the Large Scale Economic Activity Development (LEAD) Act, an incentive program to create new jobs and additional economic growth in Oklahoma. Authors: Rep. Kevin Wallace and Sen. Roger Thompson
BETTER BUSINESS CLIMATE SB 957: Formal Recusal Process for Oklahoma’s Judiciary
Establishes a formal recusal process for justices on the Oklahoma Supreme Court and Court of Criminal Appeals. Authors: Sen. Brent Howard and Rep. Anthony Moore
SB 984: State Lawsuit Accountability
Brings transparency and accountability to lawsuits brought by the state on a contingency fee with outside attorneys by requiring a request for proposal (RFP) and capping the contingency fee, guaranteeing taxpayers realize the majority of the funds recovered. Authors: Sen. Kim David and Rep. Terry O’Donnell
2
2022 SESSION
By Senior Vice President of Government Affairs Emily Crouch Just when you think session is out for summer, you find out you’ve been assigned to summer school. The legislature adjourned May 27 but before I could grab my beach towel and sunglasses, the legislature convened a special session (the second one for this legislature) and the governor called yet a third one (but hey, who’s counting). My team and I will keep you updated on our assignments. In the meantime, let’s take a quick look at what happened this legislative session that matters to the business community. This year, the legislature focused on these core subjects: 5 Rural broadband expansion
5 Data privacy
5 Regulation of the state’s medical marijuana industry
5 Education reform
5 Medicaid managed care
5 Spending of federal pandemic relief funds
5 Economic development incentives
BUDGET
The general appropriations bill, SB 1040, became law without the governor’s signature. He did line item a couple of appropriations bills – SB 1052 and SB 429. • SB 1052 provides raises for private prisons. • SB 429 appropriates ARPA funds to the Oklahoma Water Resources Board (OWRB) for water infrastructure in rural communities.
VETO OVERRIDES SB 1052: Provides raises for private prisons. HB 3501: Requires the Oklahoma Department of Public Safety (DPS) to work with tribes and treat convictions in tribal courts the same way they do state and municipal courts. HB 4457: Creates the Route 66 Commission. SB 1695: Requires governor appointment to file financial disclosures. HB 2046: Allows two-year colleges to create higher education districts. HB 4412: Creates a soil preservation program under the Oklahoma Conservation Commission.
3
Economic Development
Bill Notes
HB 4455: Creates the Large Scale Economic Activity Development (LEAD) Act, an incentive program to attract large scale economic activity and development to Oklahoma. Authors: Rep. Kevin Wallace and Sen. Roger Thompson Effective date: 4/25/2022
HB 3484: Requires vendor contracts with state agencies to detail where the services are being provided and if an Oklahoma company is not being used, an explanation why. Authors: Rep. Ryan Martinez and Sen. Bill Coleman Effective date: 1/11/2022
HB 4085: Creates the Oklahoma Rural Jobs Act, providing individuals making certain capital investments a tax credit for supporting Oklahoma rural communities. Authors: Rep. Kevin Wallace and Sen. Brent Howard Effective date: 1/11/2022
SB 1543: Strengthens the Oklahoma Medical Marijuana Authority (OMMA), removing it from the Oklahoma State Department of Health (OSDH) and making it a standalone agency. Authors: Sen. Greg Treat and Rep. Jon Echols Effective date: 3/14/2022
HB 4451: Waives the payroll eligibility requirement for 2021 for manufacturing facilities receiving the five-year ad valorem tax exemption since many were not able to meet it due to COVID-19. Authors: Rep. Kevin Wallace, Rep. Ryan Martinez, Sen. Chuck Hall and Sen. Roger Thompson Effective date: 3/14/2022
SB 1079: The post-COVID-19 economic downturn caused workforce issues. Manufacturers were unable to make the hires needed to meet the payroll threshold for the five-year ad valorem tax exemption. This measure keeps those manufacturers eligible. Authors: Sen. Chuck Hall, Sen. Roger Thompson, Rep. Kevin Wallace and Rep. Kyle Hilbert Effective date: 8/25/2022
HB 4354: The Oklahoma Research and Development Attraction Act will foster growth and innovation for small Oklahoma businesses that bring new products to market within the state’s key industries. This will ensure Oklahoma is a leader in a variety of industries, including aerospace and autonomous systems, life sciences and energy diversification. Authors: Rep. Brian Hill and Sen. Chris Kidd Effective date: 11/1/2022
HB 4456: The Progressing Rural Economic Prosperity Fund (“PREP Fund”) will help Oklahoma’s rural communities retrofit and upgrade industrial parks to spur economic development. Authors: Rep. Kevin Wallace and Sen. Roger Thompson Effective date: 7/1/2022
HB 4464: Funding mechanism for HB 4456. Authors: Rep. Kevin Wallace and Sen. Roger Thompson Effective date: 5/27/2022
4
Bad for Business, Bad for Oklahoma
HB 2969: The Oklahoma Computer Data Privacy Act of 2022 would have been detrimental to business and ineffective at providing consumers comprehensive protections. It only added to the patchwork of burdensome regulations on business. The best solution is a federal one. Authors: Rep. Collin Walke, Rep. Josh West and Sen. Jake Merrick Effective date: Dead - Senate committee did not hear.
Energy & Natural Resources
HB 2627: Modifies the use of third-party appraisers by county assessors. Third-party appraisers can no longer be a part of any valuation negotiations or protests. Allows county assessors to notify schools of protests impacting the district. Authors: Rep. Dick Lowe and Sen. John Michael Montgomery Effective date: 7/1/2022
HB 3901: Directs appeals from a county board of equalization over ad valorem taxes by a county assessor to the Court of Tax Review instead of district court. Authors: Rep. John Pfeiffer and Sen. John Michael Montgomery Effective date: 1/1/2023
SB 1325: Transfers the power to promulgate water quality standards from the Oklahoma Water Resources Board (OWRB) to the Department of Environmental Quality (DEQ) Board. Authors: Sen. Julie Daniels and Rep. Anthony Moore Effective date: 11/1/2022
SB 1352: Prohibits municipalities from dictating what energy sources can or cannot be used in their jurisdiction, allowing consumers to have access to the energy of their choice. Authors: Sen. Zack Taylor and Rep. Brad Boles Effective date: 11/1/2022
SB 1410: Creates the Oklahoma Emergency Energy Availability Act requiring state agencies and other entities to include diverse sources of energy in emergency plants, allowing Oklahoma to be prepared for winter storms. Authors: Sen. Zack Taylor and Rep. Garry Mize Effective date: 11/1/2022
SB 1852: Expands the Oklahoma Energy Initiative to include hydrogen production in Oklahoma’s Core Energy Competencies, fostering research and development in this up and coming energy source. Authors: Sen. Kim David and Rep. Marcus McEntire Effective date: 11/1/2022
SB 1856: Requires the Secretary of Energy and Environment to create and administer a grant program for entities using hydrogen energy if there are federal funds available. Authors: Sen. Mark Allen and Rep. Brad Boles Effective date: 11/1/2022
5
Bad for Business, Bad for Oklahoma
SB 1239: Would have dictated to regulated public utilities which energy sources to use and how to respond to a predicted winter storm. Authors: Sen. Mark Allen and Rep. Mark McBride Effective date: Dead - not heard on Senate floor.
SB 1210: Would have required applicants for stream water permits to give notice to each resident on the stream within two miles and to every stream water permit holder or pending application. Authors: Sen. David Bullard and Rep. Justin Humphrey Effective date: Dead - not heard in Senate committee.
HB 3636: Would have required instream flow studies on certain bodies of water to determine economic impacts from water usage. Authors: Rep. Eddy Dempsey and Sen. David Bullard Effective date: Dead - not heard on Senate floor.
Healthcare
SB 1337: After years of negotiations, Oklahomans will realize improved health outcomes and cost savings with the implementation of a managed care structure for the delivery of Medicaid benefits for certain individuals. Authors: Sen. Greg McCortney and Rep. Marcus McEntire Effective date: 11/1/2022
SB 1396: To ensure the state’s Medicaid program remains financially feasible with the implementation of managed care, changes to the Supplemental Hospital Offset Payment Program (SHOPP) fee were implemented. Authors: Sen. Greg McCortney and Rep. Kevin Wallace Effective date: 11/1/2022
HB 4228: Any laws enacted related to health benefit plans will only apply to new or renewed health benefit plans. This limits government interference with the private right to contract. Authors: Rep. Chris Sneed and Sen. Marty Quinn Effective date: 11/1/2022
HB 3495: A change made in 2021 to certain health savings accounts put Oklahoma’s law in conflict with federal law. This measure ensures compliance with federal law and ensures continuity of health savings accounts. Authors: Rep. Marcus McEntire and Sen. John Michael Montgomery Effective date: 5/16/2022
SB 1323: Employers with self-funded benefit plans will be able to access the state’s premium assistance program, Insure Oklahoma (IO). IO offers commercial health insurance products with financial support from the state and federal government to eligible working Oklahomans. Authors: Sen. Jessica Garvin and Rep. Marcus McEntire Effective date: 11/1/2022
6
Bad for Business, Bad for Oklahoma
SB 1860: Would have raised the cost of prescription drugs by removing the tools employers use to offer lower drug costs. Also placed businesses under regulation from the Oklahoma Insurance Department by expanding the definitional functions of a pharmacy benefits manager. Authors: Sen. Greg McCortney and Rep. Marcus McEntire Effective date: Recalled from Governor’s desk.
SCR 26: Recalls SB 1860 from becoming law due to a recent court case that nullified portions of existing law. The recall of SB 1860 ensures businesses who self administer pharmacy benefit plans are not regulated under the Oklahoma Insurance Department and can continue to keep prescription drug costs low for employees. Authors: Sen. Greg McCortney and Rep. Marcus McEntire Effective date: 4/25/2022
HR & Labor Law
SJR 51: Approves the proposed workers’ compensation fee schedule, which sets the rates for the maximum rates of reimbursement paid to medical providers. Authors: Sen. Greg Treat and Rep. Charles McCall Effective date: 7/1/2022
HB 2239: A comprehensive workers’ compensation bill to address post traumatic stress disorder (PTSD) for first responders, extension of the Workers’ Compensation Court of Existing Claims and various other provisions beneficial to the business community. Authors: Rep. Danny Sterling and Sen. Julie Daniels Effective date: Dead - failed to make it out of conference committee.
HB 3002: Occupational licensing and criminal justice reform bill to remove certain crimes preventing individuals from obtaining licensure in several occupations. Authors: Rep. Cyndi Munson and Sen. Zack Taylor Effective date: 11/1/2022
HB 3729: Would have removed the $3,000 cap on wages owed to a deceased employee’s beneficiary. Also allowed wages to be paid via direct deposit. Authors: Rep. Josh West and Sen. Chis Kidd Effective date: Dead - not heard on Senate floor.
HB 3878: Would have required an employer to provide medical, religious or moral exemptions for mandatory employee vaccinations. Author: Rep. Mark Lepak Effective date: Dead - not heard on House floor.
HB 3899: Would have provided workers’ compensation coverage to first responders with post traumatic stress disorder (PTSD) and removed the current requirement that a physical injury accompany the PTSD. Authors: Rep. Chris Kannady and Sen. Brent Howard Effective date: Dead - Not head in Senate committee.
7
SB 1345: Provides another means for employers to pay employees by allowing the use of a payroll card. Authors: Sen. Chuck Hall and Rep. Jeff Boatman Effective date: 11/1/2022
SB 1691: Eliminates the automatic denial of an occupational license or certificate based on a criminal conviction or pending criminal charge, unless the offense relates to the duties and responsibilities of the license substantially. This measure will allow many Oklahomans the opportunity to enter the workforce. Authors: Rep. Zack Taylor and Sen. Brad Boles Effective date: 11/1/2022
SB 1725: Dissolves the Occupational Licensing Advisory Commission on Dec. 31, 2022. Authors: Sen. Adam Pugh and Rep. Mike Osburn Effective date: 7/1/2022
HB 4413: Oklahoma Employment Security Commission (OESC) omnibus bill, making several changes to the administration of the state’s unemployment system, including closing a loophole that allowed part-time employees to claim unemployment benefits when their hours were not reduced by the employer. Authors: Rep. Dick Lowe and Sen. John Michael Montgomery Effective date: 11/1/2022
SB 524: For employers that would otherwise not be able to obtain workers’ compensation coverage, CompSource Mutual Insurance Company will no longer be the sole provider. Instead, the Oklahoma Insurance Commissioner will develop and administer an assigned risk plan, spreading the coverage out among multiple insurance companies. Authors: Sen. Marty Quinn and Rep. Chris Sneed Effective date: 11/1/2022
Bad for Business, Bad for Oklahoma
HB 3144: Would have prohibited the state from entering into contracts over $100,000 with companies employing at least 10 full-time individuals that discriminates against a firearm entity or trade association. Authors: Rep. Kevin West and Sen. Casey Murdock Effective date: Dead - failed to make it out of conference committee.
SB 925: Would have expanded Oklahoma’s self-defense law as it relates to firearms and other weapons to allow use of these weapons when occupying any premises an individual is authorized to be on. It would have removed the right of the property owner to set weapons policies. Authors: Sen. Micheal Bergstrom and Rep. Jay Steagall Effective date: Dead - failed to make it out of conference committee.
SB 1157: Individuals could have claimed unemployment benefits when they were terminated based on vaccination status. Authors: Sen. Nathan Dahm and Rep. Sean Roberts Effective date: Dead - not heard on Senate floor.
8
Infrastructure
HB 3363: Ensures Oklahoma’s broadband services are fully realized and accurate by setting up new entities to oversee and manage the process of broadband mapping and access in Oklahoma. Authors: Rep. Charles McCall and Sen. Greg Treat Effective date: 5/6/2022
HB 3835: Creates the Facilitating Internet Broadband Rural Expansion (FIBRE) Act, providing a formula to use when a communications service provider wishes to attach its service lines to the poles owned by rural electric cooperatives and the parties cannot agree to the rate. Authors: Rep. Ryan Martinez and Sen. Brent Howard Effective date: 11/1/2022
SB 1541: Puts Oklahoma policy in line with border states to create uninterrupted access to the interstate system for those operating fully autonomous vehicles. Authors: Sen. Paul Rosino and Rep. Ryan Martinez Effective date: 11/1/2022
HB 4459: Increases the cap on the County Improvements for Roads and Bridges Fund by $5 million over the next five years to provide upgrades to infrastructure, increasing economic development across the state. Authors: Rep. Kevin Wallace and Sen. Roger Thompson Effective date: 7/1/2022
HB 3037: Apportions an additional $5 million to the Municipal Road Drilling Activity Fund for use in counties with under 15,000 residents with roads damaged from heavy industrial traffic. Authors: Rep. Brad Boles and Sen. Mark Allen Effective date: 7/1/2022
SB 258: Directs all revenue from the aircraft excise tax be deposited in the Oklahoma Aeronautics Commission Revolving Fund. Authors: Sen. Paul Rosino and Rep. Jon Echols Effective date: 7/1/2022
HB 3419: The issuance of driver licenses and motor vehicle registration in Oklahoma will now be housed in one place Service Oklahoma - a new division within the Office of Management and Enterprise Services (OMES). It was previously under the Department of Public Safety (DPS). Authors: Rep. Dell Kerbs and Sen. Chuck Hall Effective date: 5/19/2022
Bad for Business, Bad for Oklahoma
SB 1610: Would have stalled the construction of the new South Extension Turnpike in Norman by requiring a study be completed prior to bond issuance. Authors: Sen. Robert Standridge and Rep. Danny Sterling Effective date: Dead - did not make it out of conference committee.
9
Legal Reform
HB 3381: Makes it easier for a plaintiff to serve a defendant at the start of a lawsuit by allowing service personally or at an agreed upon place with someone living with the defendant. Authors: Rep. Mike Dobrinski and Sen. Brent Howard Effective date: 11/1/2022
HB 3384: Would have removed the 30-day response delay for discovery responses when no answer is filed. Author: Rep. Anthony Moore Effective date: Dead - not heard on House floor.
HB 3385: Limited liability companies (LLC’s) could have had a lawsuit filed against it in an county in which the LLC was situated, had its principal office or place of business or where any members, principal officers or co-defendants resided. Authors: Rep. Anthony Moore and Sen. Julie Daniels Effective date: Dead - not heard on House floor.
HB 3450: Parties wishing to amend a pleading by leave of court must now submit the proposed amendment with a motion for leave of court. Authors: Rep. Terry O’Donnell and Sen. Julie Daniels Effective date: 11/1/2022
HB 3541: Increases the garnishment fee paid to a bank from $25 to $35 and clarifies the bank does not have to act until the fee is paid. Authors: Rep. Chad Caldwell and Sen. Adam Pugh Effective date: 11/1/2022
HB 4077: In lawsuits not involving a contract, the court can dismiss an action or motion for summary judgment if the court determines the claim is knowingly false. Authors: Rep. Kevin Wallace and Sen. Jessica Garvin Effective date: 11/1/2022
SB 1308: Would have set forth certain provisions that must be included in contracts that automatically renewed. Author: Sen. Zack Taylor Effective date: Dead - not heard on Senate floor.
SB 1428: Would have simplified and condensed Oklahoma’s offer of judgment statute. Authors: Sen. Brent Howard and Rep. Preston Stinson Effective date: Dead - not heard in House committee.
Bad for Business, Bad for Oklahoma
HB 2990 & SB 1182: Would have expanded the powers of county commissioners to create ordinances, assessment districts, economic development initiatives, sales and property tax incentive zones, along with capital improvement projects. Authors: Rep. Carol Bush and Sen. Dave Rader Effective date: Dead - not heard in House committee. 10
HB 3313: Would have allowed COVID-19 patients and visitors to bring a lawsuit against hospitals for not allowing visitation. Authors: Rep. Cynthis Roe and Sen. Jessica Garvin Effective date: Dead - not heard in Senate committee.
Manufacturing
HB 3054: Modifies the weight calculation for an electric or hydrogen fuel cell electric vehicle. Authors: Rep. Brad Boles and Sen. Kim David Effective date: 5/4/2022
HB 4354: Creates a research and development attraction program to foster innovation and growth in Oklahoma for key industries in the state. Authors: Rep. Brian Hill and Sen. Chris Kidd Effective date: 11/1/2022
SB 1855: Allows the Oklahoma Department of Labor the authority to inspect hydrogen fueling stations or pumps, providing a framework for future use. Authors: Sen. Frank Simpson and Rep. Brad Boles Effective date: 11/1/2022
SB 1857: Creates a tax credit for clean burning motor vehicles, including those originally equipped to use a hydrogen fuel cell electric battery, while capping the tax credit at $10 million total and sunsetting it in 2028. This will help foster the development and use of hydrogen fuel cells. Authors: Sen. John Michael Montgomery and Rep. Kevin Wallace Effective date: 11/1/2023
Bad for Business, Bad for Oklahoma
HB 1011: A carryover bill from last year, the bill would have created the Digital Fair Repair Act, placing a mandate on businesses to disclose all information concerning any repair of any type of electronic device. Authors: Rep. Logan Phillips and Sen. Casey Murdock Effective date: Dead - not heard on House floor.
Workforce
HB 3024: Expands expungement eligibility to individuals with felony convictions that occurred more than 10 years ago providing employers with a skilled workforce and giving Oklahomans a second chance. Authors: Rep. Randy Worthen and Sen. Dave Rader Effective date: 11/1/2022
HB 3564: Oklahoma needs teachers to educate the future workforce. The Oklahoma Future Teacher Scholarship provides employment incentive payments for teachers who remain in Oklahoma after graduating with a teaching degree from an Oklahoma college or university. Authors: Rep. Mark McBride and Sen. Dwayne Pemberton Effective date: 7/1/2022
11
HB 4362: The Oklahoma Center for the Advancement of Science and Technology (OCAST) Intern Partnership for STEM Workforce Pipeline Program creates a public private partnership opportunity to provide students with internships and training in STEM fields that lead to potential employment opportunities down the road. Authors: Rep. Brian Hill and Sen. Jessica Garvin Effective date: 7/1/2022
HB 4388: Provides new teaching level certificates to allow teachers who want to stay in the classroom with leadership roles and responsibilities. State lottery funds coupled with local matching funds will give targeted performance pay increases to teachers. Authors: Rep. Kyle Hilbert and Sen. Adam Pugh Effective date: 11/1/2022
12
THE STATE CHAMBER GOVERNMENT AFFAIRS TEAM
CHAD WARMINGTON
President & CEO chad@okstatechamber.com
DALTON MILLER
Government Affairs Manager dalton@okstatechamber.com
EMILY CROUCH
SVP Government Affairs ecrouch@okstatechamber.com
TYLER NORVELL
Government Affairs Consultant
KINSEY WESTWOOD
VP Government Affairs kwestwood@okstatechamber.com
BRITTNEE PRESTON
Government Affairs Consultant
THE STATE CHAMBER RESEARCH FOUNDATION TEAM
BEN LEPAK
Executive Director ben@okstatechamber.com
AMANDA HALL
Policy & Research Manager amanda@okstatechamber.com 13