LEGISLATIVE ISSUES REPORT

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1 LEGISLATIVE ISSUES REPORT Legislation, Lobbying Advocacy Jennifer McCollum, APR Division Director MARCH 2018

2 REPORT SOURCES, RESOURCES OML Reports OCPA (Oklahoma Council for Public Affairs) OPA (Oklahoma Policy Institute) NADO (National Association of Development Organizations) NARC (National Association of Regional Councils) REMINDER: Bill Tracking and Monitoring Service This report with hyperlinks available at acogok.org/march2018legislative

3 LEGISLATIVE UPDATES BUDGET NEWS Oklahoma Board of Equalization certified on February 20, that the state faces a $167.8 million revenue hole for the Fiscal Year 2019 budget. $270 million in obligations $104 million in growth Cuts to ODOT, Corrections, DHS, and other state agencies still not restored OMES Presentation on ACOG Website MARCH 28: HJR1050, a resolution proposing a vote of the people to lower the threshold for legislative approval of revenue-raising measures failed to receive the approval of the Senate Rules Committee.

4 ORGANIZATIONS CALLED ON LAWMAKERS TO PASS REVENUE SOLUTIONS (MARCH 26) Allied Communities of Tulsa Inspiring Our Neighborhoods American Civil Liberties Union of Oklahoma American Federation of Labor and Congress of Industrial Organizations American Federation of Teachers Oklahoma Community Service Council League of Women Voters of Oklahoma Let's Fix This OK Waiting List Families Mental Health Association Oklahoma National Association of Social Workers - Oklahoma Oklahoma Conference of Churches Oklahoma Education Association Oklahoma Hospital Association Oklahoma Parent Teacher Association Oklahoma Policy Institute Oklahoma Primary Care Association Oklahoma Public Employees Association Oklahoma Retired Educators Association Oklahoma Women's Coalition Pastors for Oklahoma Kids Sigma Sigma Omega Chapter of Alpha Kappa Alpha Sorority, Inc. TARC, Together Oklahoma Tulsa Metropolitan Ministry Voices Organized in Civic Engagement (VOICE)

5 OKLAHOMA REVENUE-RAISING PACKAGE HB1010 PASSED (MARCH 27) Three votes more than the three-fourths needed for passage of a revenue-raising measure. Increases the cigarette tax $1 per pack. It changes the method of taxing little cigars to the same as cigarettes. The bill apportions revenue from the tax on little cigars to the General Revenue Fund in fiscal year 2019 and to the Health Care Enhancement Fund in subsequent fiscal years. Increases tax on diesel $0.06 and the tax on gasoline $0.03. The bill apportions revenue from the motor fuel taxes to the General Revenue Fund in fiscal year 2019 and to the Rebuilding Oklahoma Access and Driver Safety Fund in subsequent fiscal years.

6 TAX RATES, NEW TAX GROSS PRODUCTION, OCCUPANCY TAX ACT Increases the gross production tax discount rate from 2 percent to 5 percent. Provides the gross production tax discount rate will be reduced to 2 percent if State Question 795 is approved by voters. The bill modifies apportionment of the gross production tax. Creates the Oklahoma Occupancy Tax Act. It imposes a $5 per room per night tax on hotel rooms. It provides for exceptions. The bill repeals language related to the taxation of little cigars.

7 HB1010 FORECAST HOUSE ANALYSIS A House analysis forecasts the bill will generate a total of $474.7 million in fiscal year 2019, the upcoming fiscal year, including $447.4 million that would be deposited in the General Revenue Fund for appropriation by the Legislature. Much of that money would be used to fund the teacher pay raise in HB1023 and the state employee pay raise in HB1024 and the education support personnel pay raise in HB1026.

TENSION BUILDLING: TEACHERS, STATE EMPLOYEES TEACHERS STRIKE Oklahoma Education Association announced on that on April 2, teachers will rally at the Capitol.

8 TENSION BUILDLING: TEACHERS, STATE EMPLOYEES TEACHERS STRIKE Oklahoma Education Association announced on that on April 2, teachers will rally at the Capitol. Revenueraising measures passed the House on Monday, but OEA does not count it as a victory because it has not been passed by the Senate or signed by the Governor. STATE EMPLOYEES HB1024 passed on Monday. It authorizes $64 million for state employee raises. The Oklahoma Public Employees Association (OPEA) said it falls far short of what is needed, and wants the Senate to amend the bill and return it the House. $213 MILLION State employees asked lawmakers for $213 million State employees have not had a raise in 10 years. $64 million does not cover years of increased healthcare costs.

9 EV LEGISLATION (TAX CREDIT) HB2756 HB2756 modifies a tax credit for investments in qualified clean burning motor vehicle fuel property to allow credits to be issued for the purchase of Evs and home charging equipment. It extends the sunset date of the credit until December 31, 2023 and changes the procedure for calculating credits. It increases the amount of years that unused credits can be carried six years and establishes a $32 million annual cap on credits claimed effective tax year It directs the Oklahoma Tax Commission to use a percentage adjustment formula to determine a percentage by which the credits authorized are to be reduced to satisfy the $32 million annual cap. It requires the Commission to notify the State Secretary of Energy and Environment when the amount of credits claimed reaches 80 percent of the annual limit, and requires the Secretary to notify the Governor, Speaker and Pro Tempore.

10 ELECTRIC VEHICLE FEE HB2638 HB2638 Failed to pass House prior to deadline. An EV fee may still be brought in during Joint Committee on Appropriations and Budget (JCAB) meetings. Due to bill s failure the $10k revenue cutout for alt fuel corridor development is unlikely.

11 TRANSPORTATION LEGISLATION HB3438 FAILED HB3438 would have replaced the Transportation Commission districts with the circuit engineering districts as the recipients and administrators of the funds from the County Improvements for Roads and Bridges Fund (CIRB). It would have allowed projects previously approved by the Transportation Commission prior to July 1, 2018 to continue to be funded, and would have authorized funds dedicated to a specific project to be used to obtain additional federal matching funds for any road or bridge project for which federal matching funds are available. The bill enjoyed a lively debate, but failed in committee by a vote of 5-7.

12 TRANSPORTATION LEGISLATION (MARCH 27) BILLS PASS COMMITTEE HB1560, by Rep. Avery Frix, R-Muskogee, and Sen. A J Griffin, R-Guthrie, allows the Commissioner of Public Safety or an authorized representative of the Commissioner in consultation with ODOT while specifying the highways to be used, consistent with public convenience and safety to issue special permits for vehicles and loads exceeding 13-and-a-half feet in height. HB2650, by Rep. Steven Vaughan, R-Ponca City, and Sen. Dave Rader, R-Tulsa, modifies standards related to Merge Now traffic-control devices.

13 TRANSPORTATION LEGISLATION HB2921 HB2921, by Rep. Avery Frix, R-Muskogee, and Sen. Dewayne Pemberton, R- Muskogee, requires the Transportation Commission to submit a waiver request to the FHWA of the USDOT seeking exception from any federal regulation preventing the sale of land owned by the commission and deemed surplus for 10 years or more for less than fair market value.

14 OKLAHOMA LEGISLATION HB3388, HB2519 HB3388, by Rep. Roger Ford, R-Midwest City, and Sen. Jack Fry, R-Midwest City, requires any railroad company or corporation that fails to construct and maintain a crossing in accordance with the recommendations in the USDOT Transportation Railroad-Highway Grade Crossing, for 30 days after written notice by the Oklahoma Corporation Commission to the agency or employee of any railroad company or corporation in the county be subject to a contempt proceeding before the Commission. HB2519, by Vaughan and Sen. Darcy Jech, R-Kingfisher, creates the Highway and Bridge Naming Act of (Laid over and may be taken up at a later meeting.)

15 OKLAHOMA LEGISLATIVE UPDATES SB1374: Dockless Bikes ACOG coordinated with INCOG, OML and COTPA to provide information to legislators about the impact of this bill on local governments. March 21 Referred to House Rules Committee; Not Expected to Pass According to the North American Bikeshare Association, the bill is problematic It preempts local control over bikeshare implementation It preempts local control over the public right of way It preempts local control over safety standards It does not outline sufficient safety standards for shared public-use bicycles It preempts local control over bikeshare operational requirements It does not outline sufficient operational requirements It does not address privacy protection of sensitive customer data

16 SB1374 Dockless Bikes The bill seeks to preempt local governmental power to make decisions about bikeshare issues including safety, equipment quality and life cycle, maintenance, rebalancing, customer service, fleet size, user data privacy, etc. It is the local decision-makers that know the needs of their citizens and city streets. Bikeshare is not one-size-fits-all. Opportunities and obstacles in each jurisdiction s right-of-way, as well as travel patterns and needs of citizens are different in each place. Local authorities that know their communities best and are positioned to create reasonable standards for bikeshare implementation; their ability to regulate their jurisdiction should not be restricted.

17 SB1374 Dockless Bikes The burden of cost and oversight is at the local level. As each community has different capacities for bikeshare management, local jurisdictions need control over the level of burden and have the opportunity to recoup costs from the for-profit bikeshare vendor(s). Local decision-makers must have the ability to manage the public right-of-way in adherence to ADA and other equity and safety ordinances. Taking decision-making power away may inhibit their ability to make sure their communities comply with local, state and federal regulations. Bikeshare has been successful in hundreds of cities and towns across the country because of strong local involvement. This bill handicaps, municipalities by preventing them from protecting the safety and welfare of their citizens. OML Podcast on SB 1374

OKLAHOMA LEGISLATIVE UPDATES LEGISLATIVE RECEPTION The Oklahoma Association of Regional Councils served as host for a legislative reception on Tuesday, March 27.

18 OKLAHOMA LEGISLATIVE UPDATES LEGISLATIVE RECEPTION The Oklahoma Association of Regional Councils served as host for a legislative reception on Tuesday, March 27. Executive Directors from the State s 11 Councils of Governments attended along with nearly two dozen legislators. John M. Sharp, Acting Executive Director, represented ACOG. OARC recently published and distributed its 2018 Legislative Priorities. They are posted on the ACOG website: More information on OARC at oarcok.org

19 FEDERAL LEGISLATIVE UPDATE FISCAL YEAR 2019 BUDGET of the U.S. GOVERNMENT On March 22, the House and Senate passed an omnibus spending bill for fiscal year FY2018. The Consolidated Appropriations Act of 2018 funds federal programs through September 30, House members approved the bill by a vote of ; the Senate passed the measure on a vote. President Trump signed the bill into law on March 23. The package totals $1.2 trillion in discretionary spending and would boost funding for the military and domestic discretionary programs by more than $100 billion over last year s levels. The path was cleared for these funding increases by passage of a budget deal in February which raised spending limits imposed under the 2011 Budget Control Act.

20 FEDERAL LEGISLATIVE UPDATE FY2018 Funding for Key Federal Agencies and Programs U.S. Economic Development Administration $301.5 million for EDA, $25.5 million above the FY2017 level $33 million for Partnership Planning, $1.5 million above the FY2017 level $117.5 million for Public Works, $17.5 million above the FY2017 level $37 million for Economic Adjustment Assistance, $2 million above the FY2017 level $13 million for Technical Assistance, $4 million above the FY2017 level $1.5 million for Research and Evaluation, level funding from last year $13 million for Trade Adjustment Assistance, level funding from last year $21 million for Regional Innovation Program, $4 million above the FY2017 level $30 million for Assistance to Coal Mining Communities, level funding from last year $39 million for Salaries and Expenses, level funding from last year 71 NADO members signed a nonpartisan letter to Congress in support of U.S. EDA. Click here to read the letter and see the signature.

21 FEDERAL LEGISLATIVE UPDATE FY2018 Funding for Key Federal Agencies and Programs U.S. Department of Housing and Urban Development Community Planning and Development $3.365 billion for Community Development Block Grant formula grants, $365 million above the FY2017 level $1.362 billion for HOME, $412 million above the FY2017 level $150 million for Choice Neighborhoods, $12.5 million above the FY2017 level

22 FEDERAL LEGISLATIVE UPDATE FY2018 Funding for Key Federal Agencies and Programs U.S. Department of Transportation The omnibus bill appropriates an additional $4.4 billion from the general fund to transportation programs, supplemental funding that address the desire of Congress to spend an additional $10 billion in FY2018 on infrastructure $1 billion for the Airport Improvement Program (discretionary grants with an emphasis on non-primary and non-hub airports) $2.5 billion for federal-aid highways ($225 million for a new competitive bridge program in states with a population density of less than 100 persons per square mile) $834 million for mass transit formula grants $1.5 billion for TIGER grants, $1 billion above the FY2017 level $2.5 billion for transit Capital Investment Grants, $1 billion above the FY2017 level

23 FEDERAL LEGISLATIVE UPDATE FY2018 Funding for Key Federal Agencies and Programs U.S. Department of Health and Human Services $2.171 billion for Administration for Community Living, $178 million above the FY2017 level Other Provisions Included in the FY2018 Omnibus Extension of Federal Aviation Administration programs through September 30 Text of the Brownfields Utilization, Investment, and Local Development (BUILD) Act of 2018, legislation to reauthorize the U.S. Environmental Protection Agency s brownfields program Enables up to 5 percent of grant to be used for administrative cost Provides $1,500,000 for small communities technical assistance

24 THANK YOU Jennifer McCollum, APR Division Director ASSOCIATION OF CENTRAL OKLAHOMA GOVERNMENTS acogok.org Office:

Monthly Legislative Update. September 26, 2017

Monthly Legislative Update. September 26, 2017 Monthly Legislative Update September 26, 2017 Presentation Overview FY2018 Appropriations Update Status of Threatened Programs September Congressional To-Do List Looking Ahead: Tax Reform and Infrastructure