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October 31, 2018 2018 Legislative Summary and Budget Overview Session Overview appropriations bill passed during the 1st Special Session. Prior to the 2nd Session of the 56th Legislature, the Senate and House convened the 1st and 2nd Special Appropriation Overview Session of the 56th Legislature. Due to the funding shortfall resulting from the Oklahoma Supreme The 2nd Special Session General Appropriations bill Court’s decision in Naifeh v. The State of Oklahoma (HB 1020xx) appropriated $6,802,482,813.00 to state (2017 OK 63), the Legislature needed to raise or cut agencies. The Legislature passed the bill following spending by $215 million to balance the budget. The the Governor’s line item veto of the 1st Special loss of this revenue primarily affected the Oklahoma Session’s General Appropriations bill (HB 1019x). Health Care Authority, Oklahoma Department of Mental Health and Substance Abuse, and the The General Appropriations Bill for the 2nd Session Department of Human Services. The 1st Special of the 56th Legislature (SB 1600) appropriated Session convened on September 25, 2017, to deal $7,545,075,719.00 to state agencies. Compared to the with the funding shortfall. On November 17, the FY'18 budget passed during the 2nd Special Session, Legislature passed a revised budget (HB 1019x) the FY'19 budget represented an increase of 10.92%. along with two other measures (HBs 1081x and HB As a result of the passage of HB 1010xx (an increase 1085x) that somewhat reduced the severity of the in the Gross Production Tax (GPT) rate for horizontal cuts. The 1st Special Session adjourned on November and deep wells, an additional 50 mils imposed on 17, 2017. cigarettes equal to $1.00, and a $0.03 increase in the gas tax) and HB 1019xx (remote sale collections), the Following the passage of HB 1019x, Governor Fallin Legislature increased revenues by an estimated line item vetoed all but 5 of the 170 sections $494,296,000.00 with HB 1010xx and HB 1019xx contained in the appropriations bill. Governor Fallin alone. stated that the bill did not address long-term structural deficiencies that led to a recurring budget Change Subcommittee Special Session shortfall as well as dangerously depleted the state’s GA Bill FY'19 From Budget FY'18 GA Bill reserves. Without a workable budget for FY'18, the Original Legislature convened a second time on December 18, Education $3,355,483,464 $3,857,233,820 14.95% nd nd 2017. The 2 Special Session overlapped with the 2 General th Session of the 56 Oklahoma Legislature. Government $302,976,319 $329,528,846 8.76% and nd th The 2 Session of the 56 Oklahoma Legislature Transportation th nd convened on February 5 , 2018. The 2 Special Health $1,479,956,958 $1,609,508,445 8.75% Session of the 56th Oklahoma Legislature convened on February 12, 2018. During the Special Session, HHS $817,448,405 $856,162,178 4.74% Lawmakers addressed the salary schedule for NRR $105,981,962 $106,566,974 0.55% teachers (HB1023xx), funding shortfalls for FY'18 Public Safety $731,508,888 $775,948,639 6.08% (HB 1020xx), revenue (HB 1010xx, HB 1011xx, and and Justice HB 1019xx), and the FY'19 Budget (SB 1600). Other Total FY'18 issues addressed by the 56th Legislature during the Appropriation $6,802,482,813 $7,545,075,719 10.92% regular and special sessions included criminal justice vs. Total FY'19 reform, opioid prescriptions, funding the university Appropriation hospital system as a result of the loss of $141 million in federal funding, and budget limits for agencies. Prior to the FY’19 budget, the state’s overall appropriations remained relatively stagnant. For three The Senate welcomed 4 new members into the body. fiscal years (FY’16-FY'18), the Legislature attempted Senators Casey Murdock (District 27), Allison Ikely- to hold agencies harmless and maintain spending Freeman (District 37) Michael Brooks (District 44), levels in core areas such as Public Safety and and Paul Rosino (District 45) were elected following Education. This led to the Legislature appropriating special elections to fill the seats. $6.7-$6.8 billion starting in FY’16-FY’18 in an effort to maintain crucial areas of government despite The Legislature enacted 22 measures during the 1st repeated revenue failures and declining GPT receipts. and 2nd Special Sessions and 324 measures during the 2nd Session of the 56th Legislature. The Governor vetoed 18 measures and line item vetoed the general Senate Committee Staff 1 October 31, 2018 2018 Legislative Summary and Budget Overview HB 2950 (Bush/Smalley) Forbids scrap metal businesses from selling copper wire that is 4 gauge or larger in size. Requires the Department to designate a single, internet based method for all internet based reporting. HB 2952 (Coody/Scott) Allows experimental aircraft to be used with regards to managing depredating animals. HB 3319 (Fetgatter/Fields) Modifies the controlled Agriculture & Rural Development hunting fee to $10.00 per hunt choice. SB 1180 (Boggs/Coody) Allows the waterfowl HB 3416 (Pfeiffer/Boggs) Removes the requirement license and stamp to be paid separately at $9.00 each. for a landowner to charge a minimum of $10.00 to be covered by the Oklahoma Limitation of Liability for SB 1181 (Fields/Pfeiffer) Removes the requirement Farming and Ranching Land Act. for a landowner to charge a minimum of $10.00 to be covered by the Oklahoma Limitation of Liability for HB 3417 (Pfeiffer/Boggs) Brings the Red Cedar Farming and Ranching Land Act. Registry under the Department of Agriculture. SB 1183 (Fields/Pfeiffer) Authorizes the State Board Banking, Finance, & Securities of Agriculture to issue certificates of free sale. SB 1151 (Leewright/Hilbert) Allows those engaged SB 1186 (Boggs/Hilbert) Creates the Red cedar in the practice of lending supervised loans to attach a Directory. The measure places the directory under the convenience fee. Agriculture and the Conservation Commission. SB 1493 (Leewright/McEntire) Authorizes SB 1266 (Pederson/Russ) Exempts persons holding a supervised loan entities to sell other goods provided commercial driving license from acquiring a the goods are purchased through a loan and the hazardous material license when they are acting Administrator of the Department of Credit is under the scope of their employment of a custom informed of the nature of said goods. harvester operation or transporting 1,000 gallons or less. Business & Labor SB 1606 (David/Wallace) Directs the ODAFF to use SB 1061 (Daniels/Martinez) Prohibits automatic from appropriated funds, $3,400,991.00 for the Rural renewal of contracts for monitoring and services on a Fire Operational Assistance Grants; $325,000.00 for yearly basis in the alarm and locksmith industry. the 80/20 Reimbursable Grant Program; and $343,325.00 to be used for the “Made in Oklahoma” SB 1171 (Jech/Wright) Creates the Work-based program. Learning Program to be placed under the Governor’s Council on Workforce and Economic Development. HB 2885 (Josh West/Murdock) Allows the Allows the collection of fees and expenditures of the importation of deer from areas with Chronic Wasting fees (capped at $500,000.00). Disease upon the approval of Wildlife Conservation. SB 1273 (Leewright/Hall) Allows owners to have HB 2913 (Dollens/Paxton) Creates the Oklahoma vehicles towed from storage facilities following Industrial Hemp Agricultural Pilot Program. The failure to pay for storage services. Authorizes owners measure authorizes the Department of Agriculture to to provide notice electronically. Protects owners from process applications to grow hemp. liability on towed property. HB 2917 (Coody/Boggs) Removes the requirement SB 1388 (Treat/Thomsen) Creates the "Oklahoma to possess an Oklahoma driver license when applying Small Wireless Facilities Deployment Act." The Act for a hunting license. The measure allows applicants to use any driver license. Senate Committee Staff 2 October 31, 2018 2018 Legislative Summary and Budget Overview establishes regulations to ease the development of sentence modified after 10 years of imprisonment. wireless infrastructure to rural communities. Authorizes the courts to waive fees for service. SB 1529 (Rader/Newton) Requires new, non- SB 786 (Shaw/Loring) Creates a new category for residential elevators to be inspected before operation burglary. Burglary in the 3rd degree is defined as begins. The measure also authorizes elevator breaking into automobile, truck, trailer or vessel of inspection by a third-party inspector. another, in which any property is kept, with intent to steal any property therein. Removes the minimum SB 1535 (Griffin/Mike Osburn) Defines "labor only sentence for burglary in the 2nd degree. crews" and "prefabricated structures" under the Roofing Contractor Registration Act. SB 793 (Treat/Kannady) Removes the ability for an offender to be sentenced to life in prison for drug HB 1826 (Kannady/Treat) Increases the fee that a possession. For Schedule I & II, a 1st time conviction buyer must pay for a copy or a certified copy of all carries a maximum sentence of 7 years. The the recorded covenants and restrictions of a real punishment escalates with the number of convictions. estate development. Marijuana and Schedule III & IV drugs carry a maximum of 5 years for a 1st time conviction. A 1st HB 2522 (McDaniel/Stanislawski) Appropriates $6 time conviction for manufacturing a drug carries up million to the Oklahoma Employment Security to 10 years. Commission. SB 904 (Shaw/Cleveland) Clarifies eligibility for HB 2523 (McDaniel/Daniels) Clarifies how base community service. The Act clarifies that the proper period wages are determined. The bill also clarifies reference for “eligible offender” can be found in OS how benefits apply in educational institutions, when 22-988.2. services are performed in two successive academic years.
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