Oklahoma Farm Bureau Successful in 2010 Session Despite Budget Shortfall

Facing a serious budget shortfall and looking ahead to the 2010 elections, the Oklahoma Legislature reached a budget agreement.  In general terms, almost every state agency received a budget cut; however, the cuts were less than many had anticipated.  Common education received a 2.9% budget cut while higher education was cut about 3.3%.  Other state agencies received various cuts ranging from 1% to more than 10%.  The most controversial part of the budget agreement is a 1% fee on health care claims.  Supporters of the fee focused on the federal matching funds which would be generated for the state’s Medicaid programs.  Opponents say the fee is a tax in disguise that should go to a statewide vote because of State Question 640.  An almost $80 million part of the $6.68 billion budget agreement, some questions still remain with respect the fee/tax on health care claims.    

Oklahoma Farm Bureau Supported Legislation Signed Into Law:

Protecting Traditional Animal Husbandry Practices

HB 3202, Oklahoma Farm Bureau’s priority legislation for the 2010 session was signed into law by Governor Henry on April 19th.  The bill clarifies that acts of animal husbandry are not prohibited by the Veterinary Practice Act.  It also requires that of the five veterinarian members of the State Board of Veterinary Medical Examiners (Board), one must be an equine practitioner and one must be a large animal practitioner.  HB 3202 also sets up a certification process for equine teeth floaters under the Board.    

Invasive Species

A request bill from Oklahoma Farm Bureau, SB 1330 will set up a task force to look at invasive species, particularly musk thistle and what efforts the state can take to help mitigate this problem.  The legislation was authored by Sen. Mike Schulz and Rep. Don Armes and signed into law on April 20th. 

Removal of Wheat Commission from the Central Purchasing Act

Supported by Oklahoma Farm Bureau, HB 3204 has been signed into law by Governor Henry.  The bill, authored by Rep. Don Armes and Sen. Ron Justice removes the Wheat Commission from the requirement of the Central Purchasing Act.  HB 3204 is a cost saving measure for the Wheat Commission, a non-appropriated agency that runs completely on producer dollars. 

Annexation Reform

SB 1864, authored by Sen. Brian Bingman and Rep. Skye McNiel, will allow a landowner who was wrongfully annexed to recover attorney fees and would also allow owners of agriculture land previously annexed to have an exemption from municipal ordinances relating to agriculture use of the land.  The legislation addressed sections of law relating to annexation by towns just as legislation in 2009 addressed annexation laws for cities.  A request of the Oklahoma Farm Bureau, SB 1864 has been signed into law by the Governor and will likely be of value in a pending issue with the Oklahoma Farm Bureau Legal Foundation.      

Landowner Rights for Wind Energy Development

HB 2973, authored by Rep. Mike Sanders and Sen. Bryce Marlatt seeks to address some concerns for landowners wishing to develop wind rights, such as the decommissioning of commercial wind energy facilities while still encouraging wind development in Oklahoma.      

Prohibiting the Severance of Wind Rights from Surface

SB 1787 by Sen. Mike Schulz and Rep. Fred Jordan prohibits the severance of wind rights from the surface of the land.  Prior to the bill’s passage there was no clear legal precedent that allowed for the severance of wind rights, nor was there a definition of “wind rights.”  SB 1787 resolves this important question of state law and also preserves the rights of Oklahoma landowners.  Oklahoma landowners will not have to secure the permission of a holder of wind rights, which could include out-of-state landowners and developers, for things as simple as crop cultivation or building improvements on the land.  

Agriculture Transportation Exemption for Hauling of Hazardous Materials

HJR 1089, authored by Rep. John Enns and Sen. Ron Justice, disapproves a Department of Public Safety rule that would have eliminated an exemption for farmers and ranchers to haul hazardous materials such as fuel and certain fertilizers.  The rule was put in place due to federal mandates; however there are some exceptions that can be made under the new federal rule. Oklahoma Farm Bureau is working closely with the Oklahoma Department of Public Safety and the Highway Patrol to write a new rule that is in compliance with federal law while still allowing producers to haul materials within 150 air miles of their farm.  This will continue to allow agricultural producers to operate as they have previous to proposed changes in federal law.    

Administrative Procedures Act 

HB 2852 authored by Rep. John Wright and Sen. Cliff Aldridge has been signed into law by Governor Henry and requires any agency to include the need for an emergency rule in the rule impact statement as required by the Administrative Procedures Act.  This is a step in the right direction, but additional reform is certainly needed.  Other legislation seeking to require legislative approval of agency promulgated rules failed to be heard in the House of Representatives.

Business Activity Tax In Lieu of Ad Valorem Tax on Intangible Property    

In 2009, the Oklahoma Supreme Court ruled that with exception to items listed in Article 10, Section 6A of the Oklahoma Constitution, locally assessed business should be paying ad valorem taxes on their intangible personal property.  This means that things such as trademarks, patents, licenses, contracts, customer lists and goodwill are now taxable as intangible personal property.  In response, the legislature passed SJR 61 to address the potential problem of assessment of ad valorem tax on intangible property.  Supportive by Oklahoma Farm Bureau and many other business friendly organizations, the legislation requires a $25 business activity to be paid in lieu of any taxes on intangible personal property.  It also creates a task force to review the different types of taxes imposed on business and individuals in Oklahoma and develop recommendations for improvement to the state’s tax structure.  

Waste Tire Program to Include Agriculture Tires

SB 441 has been signed into law by the Governor.  The legislation states that beginning in July of this year, tires used on implements of husbandry and agriculture equipment that are not more than fourteen inches wide and forty-four inches in diameter shall be assessed a waste tire recycling fee.  In July of 2013 larger agriculture tires will be included in the program.  Supported by Oklahoma Farm Bureau, no fee shall be assessed if the owner retains the used agricultural tire for use on a farm or ranch.