Showing posts with label Tobacco. Show all posts
Showing posts with label Tobacco. Show all posts

Saturday, January 24, 2026

Contraband: OK Corrections seizes 2,000 pounds of substances, 10,000 banned items during 2025

I have so many questions after reading this...

Oklahoma Corrections seizes millions in contraband during 2025

(January 14th) The Oklahoma Department of Corrections seized millions of dollars in contraband during 2025 as part of ongoing efforts to protect staff, inmates and the public and to disrupt illegal activity inside state correctional facilities.

The seizures result from joint efforts by facility staff and the Office of the Inspector General. Contraband was confiscated from inmates, staff members and individuals attempting to smuggle illegal items into facilities through visits, drones, perimeter drops and other methods.

Friday, June 27, 2025

Small: Congress should end tax loophole for foreign businesses


Congress should end tax loophole for foreign businesses
By Jonathan Small

The “double drawback” loophole is a technical policy within federal trade law that is not widely known, yet it has a surprising connection to Oklahoma. The repeal of this loophole was included in the version of the One Big, Beautiful Bill that passed the House, but is missing from the Senate version of the bill.

That needs to change.

Here’s how the loophole works.

Thursday, July 20, 2023

Gov. Stitt sets record straight on tribal tobacco compacts, touts 'One Oklahoma' effort


Gov. Kevin Stitt is out with two short videos dealing with continued fallout from the disastrous McGirt decision (in short, recognizing most of Oklahoma as Indian reservation land, contrary to a century of interpretation) as it relates to tribal tobacco compacts, and a recent 10th Circuit court case that said Tulsa cannot enforce municipal violations, such as traffic tickets, against tribal citizens.

Watch below:

Friday, June 30, 2023

Gov. Stitt sends letter to tribes, renews call for tobacco compact agreement


GOVERNOR STITT SENDS LETTER TO TRIBES, RENEWS CALL FOR COMPACT AGREEMENT

OKLAHOMA CITY (June 29, 2023) - Today, Governor Kevin Stitt sent a letter to all tribes whose tobacco compacts are set to expire this year, reiterating his previous call to extend the compacts previously negotiated by Oklahoma's Governor and tribal counterparts.

The letter reads, in part: "It is my sincere hope that this letter paves the way toward an agreement that will benefit all 4 million Oklahomans... I extend this offer in good faith and remain steadfast in my belief that we must find common ground to move our state forward."

Saturday, June 03, 2023

Small: Push for auto-renewal of tribal tobacco, license-tag compacts bad for Oklahoma


Renewing compacts bad for Oklahoma
By Jonathan Small

Special interest attempts to force automatic renewal of existing tobacco and license-tag compacts will create enormous challenges for the state.

The legal reality that undergirded current compacts is under attack by special interests who are inaccurately wielding the U.S. Supreme Court’s 2020 ruling in McGirt v. Oklahoma, which declared the Muscogee (Creek) Nation’s Oklahoma reservation was never formally disestablished for purposes of federal major-crimes law, in an effort to exploit that decision.

Tuesday, February 18, 2020

Bill to raise minimum age for tobacco products passes Senate committee


Senate Committee approves McCortney legislation to raise minimum age on tobacco

The Senate’s Health and Human Services Committee voted Monday in favor of legislation increasing the age to buy or use tobacco products from 18 to 21.  Senator Greg McCortney, chair of the committee, is the author of Senate Bill 1423.

In December, President Donald Trump signed the Tobacco-Free Youth Act into law, prohibiting the sale of cigarettes, e-cigarettes, cigars and other tobacco products to anyone under the age of 21.  McCortney, R-Ada, said SB 1423 brings Oklahoma into line with that federal change.

“Even though the federal law has changed, we still needed to follow through in the Legislature, because enforcement takes place at the state and local level,” McCortney said.  “This change will help avoid confusion or ambiguity and ensure clarity for the public, businesses, state agencies and law enforcement.”

Currently, state law sets a minimum age of 18 for tobacco sales and use.  Under SB 1423, the minimum age would be raised to 21 for purchasing or using tobacco products, and it would be illegal to sell or give tobacco products to anyone younger than 21.

McCortney said the change would also help improve Oklahoma’s health outcomes.  According to the Centers for Disease Control and Prevention (CDC), approximately 90 percent of adult cigarette smokers report they first tried smoking before the age of 18.

“Tobacco use remains the leading cause of preventable disease disability and death in this country.  Raising the age limit for tobacco products has long been promoted as a way of reducing tobacco use, so this change will help us with our goal to improve public health in our state,” McCortney said.

SB 1423 will next be considered by the full Senate.

Thursday, January 09, 2020

Governor Stitt, Seminole Nation agree to one-year tobacco compact extension


GOVERNOR AGRESS TO ONE-YEAR EXTENSION WITH SEMINOLE NATION ON TOBACCO COMPACT

Oklahoma City, Okla. (Jan. 3, 2020) – Governor Kevin Stitt announced today that the State of Oklahoma has agreed to a one-year extension with Seminole Nation on a Tobacco Tax Compact.

“The Tobacco Tax Compact is an agreement between the State and the Seminole Nation that the two sovereigns will split evenly the tax revenue generated from the sale of cigarettes and tobacco products at the Nation’s business locations,” said Gov. Kevin Stitt.

The Tobacco Tax Compact between the State of Oklahoma and the Seminole Nation was constituted in November 2013 under the Fallin administration. The compact establishes a Compact Tax rate of 100 percent of the State tax rate on cigarettes and other tobacco products. The state will collect the Compact Tax directly from the wholesalers, and then the State will remit back to the Seminole Nation 50 percent of all Compact Taxes collected. The one-year extension maintains current compact terms and adjusts the expiration date to Dec. 31, 2020.

A copy of the compact can be read here.

Over the past year, the Governor signed a total of five extensions for the State on various tribal compacts, with the other four as follows:

  • The State of Oklahoma and Cherokee Nation signed a 1-year extension on a hunting and fishing compact, which can be read here.
  • The State of Oklahoma and Choctaw Nation signed a 1-year extension on a hunting and fishing compact, which can be read here.
  • The State of Oklahoma and the Kialegee Tribal Town signed an 8-month extension on the Model Gaming Compact, which can be read here.
  • The State of Oklahoma and the United Keetoowah Band of Cherokee Indians signed an 8-month extension on the Model Gaming Compact, which can be read here.

Tuesday, December 11, 2018

OCPA column: A new direction for TSET


 A new direction for TSET
by Jonathan Small, president of the Oklahoma Council of Public Affairs

If you haven’t heard, Oklahoma’s Tobacco Settlement Endowment Trust (TSET) is searching for a new director. But what this small state agency with a giant bank account really needs is a new direction.

While TSET does some important work, like funding cancer research, it also does silly things, like spending $700,000 advertising “water recipes” in the middle of a state budget crunch. The agency has also spent $1.1 million promoting bars and nightclubs that prohibit indoor smoking.

Unfortunately, many of the non-outrageous things that TSET spends money on are low priorities. The agency replaced working drinking fountains in schools with fancier (and much more expensive) drinking fountains.

TSET was set up as an endowment that will grow with no limit. It collects payments owed to Oklahoma from the 1990s tobacco lawsuit, puts those payments in the bank, and spends the earnings.

That account has grown to $1.2 billion, with TSET expecting to earn $64.8 million from those investments during fiscal year 2018. Over the last five years, TSET’s earnings have averaged $50 million per year.

The good news is that TSET sometimes makes really good decisions. Last year, TSET’s board of directors approved $3 million in one-time funds for senior nutrition services and mental health crisis teams.

The Legislature should reform TSET so that it can continue doing important work while redirecting future settlement payments to critical state health care needs.

One good target would be rural medical care, which is more expensive to provide than medical care in urban and suburban areas. The funds could help cover the actual losses of medical facilities in rural Oklahoma, keeping hospitals open.

Revenues could also go to the Physician Manpower Training Commission, also focused on medical care in rural Oklahoma, and to shore up nursing home provider rates.

These are core services that citizens rely on. Does anyone think “water recipe” billboards or ads for smoke-free booze is more important?

And frankly, reforming TSET this way would leave the agency with exactly as much money as it has right now. What we’re really talking about is letting TSET continue with its current projects, while assuring Oklahomans are taken care of by using future settlement payments.

Excess tobacco settlement payments have approached $60 million per year for the last few years while core services continue to suffer. TSET’s spending is just one example of a government entity making highly questionable spending decisions at a time when we need to prioritize core services. Imagine how far $60 million could go to help rural health care.

Jonathan Small serves as president of the Oklahoma Council of Public Affairs.

Saturday, March 24, 2018

Education, State Employee Unions push $900M tax increase

Proposed $900M tax hike plan
Three education and state employee unions have proposed a massive $900M tax increase to go toward their $3.3 billion increased spending plan. Below is their press release, with details of their tax hikes in the image above:


Organizations Outline $906 Million in Funding Sources to Fund Education and Provide Raises for State Employees
School Closures Still a Real Possibility If Legislature Doesn’t Act Soon

OKLAHOMA CITY ­­– The Oklahoma Education Association, the Oklahoma City American Federation of Teachers and the Oklahoma Public Employees Association today outlined a number of funding sources the Oklahoma Legislature could tap to fund education and avoid a state-wide school shutdown.

The plan, as outlined by OEA Executive Director David DuVall during a press conference, identifies $905.7 million in recurring revenue.

“When we announced the possibility of closing schools earlier this month we intentionally left out a specific plan because we thought the legislature knew where to find money to properly fund our schools,” DuVall said. “While we appreciate the efforts to find some answers, they have all fallen woefully short.

“What we are offering today is a road map to sustainable funding for our state.”

OEA’s funding suggestions include:

  • $158.7 million through a 5 percent gross production tax
  • $222.9 million in tobacco taxes
  • $149.1 million in motor fuel taxes
  • $177 million in income tax reform, restoration of the earned income tax credit and elimination the capital gains deduction.

Other revenue sources include taxes on alcohol, car tags, ball and dice games at Native American casinos, a hotel/motel tax, sales tax reform and a tax on wind generation.

If the legislature were to use all of the proposed revenue sources, it would find more than enough money to provide teachers with a $6,000 raise for the 2018-19 school year, a $2,500 raise for education support professionals (e.g. custodians, food service workers, secretaries, transportation workers, etc.) next year, general revenue for schools to reduce class sizes and purchase classroom materials, a raise for state employees and money to fund health care services that have been cut in recent months.

“Our students are the real victims of the legislature’s failure to properly fund education and our state core government services,” said OEA President Alicia Priest.  “Our class sizes have ballooned to impossible numbers. Our schools can’t buy text books for every child. We’ve dropped not only fine arts and foreign language courses, we’ve also dropped advanced placement classes.”

The OEA was joined at the press conference by OPEA Communications Director Tom Dunning and Oklahoma City AFT President Ed Allen.

Allen said the teacher shortage has been caused by low salaries.

“The last thing educators want to do is walk out of school on April 2. But believe me, that is exactly what will happen if they don’t see a substantial and adequate pay increase,” Allen said “Teachers have been leaving the school district on a regular basis because of the miserable salaries. There was a 25 percent turnover in Oklahoma City in 2017 and it’s mostly because of the low wages. We need to keep and attract great teachers and a good start is to pay them a livable wage.”

Dunning pointed out that state employees are need of a pay increase, too.

“State employees, whose pay is more than 20 percent below market, stand with public educators to insist Oklahoma’s leaders pass a significant pay raise plan and begin to restore funding because they are fed up with excuses for why they can’t have a pay raise,” said Tom Dunning. “While they continue to serve, despite lack of support from many state leaders, employees expect lawmakers to fund a substantial pay raise plan and restore state agency funding. If lawmakers don’t act, state employees and those they serve will have many questions as they go to the polls this fall.”

Priest said the association is moving forward with closing all Oklahoma schools if the legislature can’t find a way to fund education by April 1. As of the press conference, more than 125 school boards had passed resolutions supporting teachers who walk out.

“The legislature has the ability to keep us in the classroom on April 2,” she said. “There is time in the next week to pass these measures and invest in our children.”

Monday, February 19, 2018

OCPA column: A Better Plan

A Better Plan
by OCPA President Jonathan Small

It’s easy for insiders to support tax increases–much easier than it is for low- and middle-income families and small businesses to pay higher taxes.

That’s why the Oklahoma Council of Public Affairs has offered a revenue and reform plan. Our plan even received the endorsement of former U.S. Sen. Tom Coburn.

What’s missing from our plan? A messy income tax hike on those who can’t afford it. Included is the same $5,000 teacher pay raise that big government advocates keep using for their bait-and-switch games. It’s time to give teachers the pay raises they deserve and stop the rest of the bureaucracy from using teachers as pawns while state agencies refuse to reform.

“It’s time for the circus to end,” Sen. Coburn said, noting that “teachers, the most vulnerable, working Oklahomans, and small businesses are being held captive and will suffer damaging tax increases that will harm families and ruin future efforts for pro-growth tax reform.”

Our alternative plan would set gross production taxes to 5 percent on new wells for 36 months. It would increase cigarette taxes by 75 cents a pack. Wind tax credits would be capped at $10 million. Voters would be asked to approve shifting new settlement payments from the Tobacco Settlement Endowment Trust to the state’s Medicaid program, surely a worthy way to spend money earmarked for health. And, the Indian tribes would be asked to forgo $67 million in rebates on tobacco sales since they are also citizens of Oklahoma.

Those measures would pump $505.4 million into the state treasury to fund a $5,000 teacher pay raise. They wouldn’t make the tax code more complex or make revenue promises that are unlikely to materialize. And, they avoid burdening most families and working Oklahomans with more taxes.

If lawmakers are dead set on raising taxes, at least they should do it in the least damaging way. The more challenging but vital work remains: reforming and restructuring state government to prevent this annual exercise in panic budgeting from ever happening again.

We could start with rigorous audits of every state agency, questioning outcomes rather than just accounting for inputs, and by passing some real reforms like work requirements for able-bodied Medicaid recipients and allowing schools to use local revenues for top priorities like teacher pay. We should also end Oklahoma's Hollywood film handout that paid millions to Harvey Weinstein.

As Sen. Coburn said, “It’s time for politicians to do their number one job, which is tough and accountable oversight.”

Jonathan Small serves as president of the Oklahoma Council of Public Affairs.

Thursday, February 15, 2018

Jones playing dealmaker? House Dems join his budget proposal


At a press conference held a short time ago, State Auditor Gary Jones offered his solution to for a teacher and state employee pay raise, flanked by the House Democratic caucus, which endorsed his plan.

Jones' plan has some similarity to the OCPA proposal released on Monday, with the addition of the fuel tax increase. Jones said that this would simplify taxes by making the fuel taxes the same (diesel is currently taxed 3 cents less than gasoline) and the GPT and income tax the same (5%)

House Minority Leader Steve Kouplen (D-Beggs) pledged all 28 Democratic House votes for the plan, while Democrats also added that they'd like to take up the itemized-deduction cap bill that is sitting in the Senate (another ~$100M in more taxes new revenue).

Monday, February 12, 2018

OCPA offers ‘a plan that can pass’


OCPA offers ‘a plan that can pass’

OKLAHOMA CITY (Feb. 12, 2018) — On Monday, the Oklahoma Council of Public Affairs (OCPA) offered a revenue plan in hopes of breaking the tax-and-budget impasse at the state Capitol.

“Oklahomans want to see teachers receive a $5,000 pay raise, but they know this can be done without unnecessarily heavy tax increases on working families and small businesses,” OCPA chairman Larry Parman said.

“Many people have asked OCPA for, in their words, ‘a plan that can pass,’ something that doesn’t raise taxes on working families, something simple that doesn’t require lawmakers to go through much gnashing of teeth from state government bureaucrats and tax consumers, but that still funds a $5,000 teacher pay raise and prevents nursing homes and other critical services from going under.”

OCPA’s “plan that can pass” includes:

  • A gross production tax increase to 5 percent for existing wells taxed at 2 percent and for all future wells for 36 months, and 7 percent thereafter—$199.5 million in new annual revenue
  • A $0.75 per pack cigarette tax increase—$121.9 million in new annual revenue
  • A cap of $10 million on the zero-emission tax credit for wind—$60 million in new annual available revenue
  • Send to Oklahoma voters a ballot measure dedicating all new tobacco settlement payments that currently go to the Tobacco Settlement Endowment Trust (TSET) to the state’s Medicaid budget—$57 million in new annual revenue
  • Tribes in Oklahoma step up and decline to accept any future rebates from the state for the sale of cigarettes and tobacco products—at least $67 million in new annual revenue

The OCPA plan provides the revenue necessary—$505.4 million annually—to address a $5,000 pay raise for every classroom teacher in Oklahoma public schools statewide.

“It’s time to give teachers the pay raise they deserve and provide the funding for it and stop the rest of the bureaucracy from using teachers as pawns while state agencies refuse to reform,” OCPA president Jonathan Small said. “This plan, once passed, would make revenues available within 90 days. We believe this plan is the fastest way to get our teachers the raise they deserve.”

A close reading of Gov. Mary Fallin’s Fiscal Year 2019 budget, released last week, reveals that the gap between base agency appropriations and estimated certified revenue has been completely eliminated. Gov. Fallin’s budget also indicates that recurring certified revenue exceeds last year’s recurring appropriations by $59 million.

Small said that with the budget deficit now resolved for Oklahoma’s state government, it’s time to focus on a narrowly tailored package that solves the teacher pay raise challenge and doesn’t include cumbersome, damaging tax increases on working Oklahoma families.

“We acknowledge there is not currently the political will at the state Capitol to enact targeted reform of nonessential spending or to rein in the mismanagement that has taken place at state agencies like the Health Department, the Health Care Authority, and elsewhere,” Small said.

Small added that several proposals from state lawmakers this legislative session should also be approved to ensure that existing taxpayer resources are directed to areas of highest priority.

“Each legislative session should be devoted to reforming government and exploring the expenditure of every penny paid in by taxpayers,” Small said. “Unfortunately, this hasn’t happened.”

A few such proposals under consideration in the current session include:

  • A proposal to dedicate Commissioners of the Land Office funds for salary increases for teachers and other public-school personnel
  • A proposal to place on the 2018 ballot a measure allowing public schools to utilize a larger percentage of ad valorem funds for teacher and staff compensation and other classroom-related expenditures, as opposed to being restricted to facility and technology upgrades
  • A proposal to institute more thorough and frequent eligibility audits of the state’s Medicaid rolls, as has recently been done in Arkansas
  • A proposal to model successful reforms in other states by implementing work requirements for able-bodied adults to empower them and protect Oklahoma’s exploding Medicaid program for the most vulnerable
  • A proposal to end Oklahoma’s Hollywood film credit subsidy, which paid $4.6 million to Harvey Weinstein

Parman also called for a return to oversight and responsible governance.

“This plan solves the state government problem with which there is consensus and allows for a clean slate for the rest of special session and the regular session to focus on structurally reforming and transforming Oklahoma’s structurally flawed government,” Parman said. “It is a violation of the Oklahoma Standard for policymakers and government personnel to neglect their number one responsibility which is to responsibly govern and protect the most vulnerable and taxpayers.”

“Not another penny in tax increases after this package passes should be considered at least until all of Oklahoma’s top twenty appropriated agencies have thorough financial audits, thorough performance and process improvement audits, and government personnel employment structures are reformed.”


Statement from Dr. Tom Coburn:
“For nearly eight years now, the executive branch, the bureaucracy, special interests, and even some legislators have predominantly been obsessed with trying to figure out how to get more revenue out of Oklahomans or expand government’s spending role in Oklahomans’ lives. They have thwarted efforts to truly transform government so it works better with less—and now are insisting on either tax increases or even more dysfunctional government.

“Because of their false choices, and the accompanying deterioration, teachers, the most vulnerable, working Oklahomans, and small businesses are being held captive and will suffer damaging tax increases that will harm families and ruin future efforts for pro-growth tax reform.

“To prevent that damage from occurring, this proposal by OCPA provides the best way, given the unfortunate circumstances, to give hardworking teachers the pay raise they have earned, protect the most vulnerable, and protect working Oklahomans and small businesses from damaging tax increases.

“It’s time for the circus to end. This narrowly tailored package proposed by OCPA will prioritize what’s important. It’s time for politicians to do their number one job which is tough and accountable oversight. It’s a violation of the Oklahoma Standard to raise taxes on the most vulnerable, working Oklahomans and small businesses when fraud and mismanagement is occurring at the Oklahoma Health Department, the state Medicaid budget is out of control and scores of opportunities for efficiency and savings are avoided. It’s time for politicians to do the tough work of responsible fiscal governance, structural reform and transformational policy solutions that end income the failed status quo of government operation — as promised.”

BONUS: Video of the press conference is below.

Tax Hike vote expected today: contact your legislators!

 
The Oklahoma Legislature is expected to vote on about $620M in new taxes and expanded gambling today.

These tax increases include:

  • ~$243M in higher cigarette taxes
  • ~$172M in higher gasoline and diesel fuel taxes
  • ~$133M in a Gross Production Tax increase on oil and natural gas
  • ~$20M in higher wind energy taxes
  • ~$14M in taxes on little cigars and smokeless tobacco
  • Expanding gambling games to bring in $22M per year
  • Changes in the standard deduction ($40M in new income tax collections)

Multiple groups are working to stop these tax increases from passing, and have set up handy tools to help Oklahomans contact their legislators. Use the links below to contact your local legislators:

OCPA Impact: Tax Increases Are Moving Fast! Take Action Now!

AFP-Oklahoma: Tell Your Lawmakers "Oklahoma Can Do Better!"

No New Oklahoma Taxes: Tell Oklahoma's Leaders Not to Support a $1 BILLION Tax Increase!

To call, use the phone numbers below:

House of Representatives: 405-521-2711
State Senate: 405-524-0126
Gov. Fallin: 405-521-2342

Tuesday, November 07, 2017

House does reboot on $454M tax increase, floor vote tomorrow



Yesterday, the State Senate passed HB1035X in a manner that brought up constitutionality questions (I posted on that here). Rather than proceeding down a road that could result in another Supreme Court ruling it unconstitutional, the State House decided today to avoid those issues, and do a "reboot" of the measure.

Here's what Majority Floor Leader Jon Echols (R-OKC) said on Twitter:

From State Rep. Josh Cockroft (R-Tecumseh):
Yesterday the Oklahoma Senate heard HB1035 which had passed off the House Floor two weeks ago. This bill included a cigarette tax, a motor vehicle fuel tax, and an alcohol tax. They added language including a 4% Gross Production Tax on the Senate Floor and passed it 37-5. This essentially made it the same bill which I voted for in the Budget Committee last week(HB1054), but failed to gain enough support in that committee.

This is where it gets tricky: Questions of constitutionality were immediately raised since a revenue raising bill must start in the House. Because HB1035 passed from the House with 54 votes, but failed to gain the required 76 votes a revenue raising measure must have, constitutionally it wasn’t viewed as a revenue raising measure. Instead it would have gone to the ballot for the people to vote on. When the Senate changed the revenue raising language and voted it through with over the 75% required, it called into question the legality of advancing the bill any further.

Today during negotiations between the Governor, Senate, and House an agreement was reached not to hear HB1035 in the House. Instead, HB1054 with the exact same language as HB1035 as passed by the Senate, would be brought up again in the House budget committee and moved forward.


The language from HB1035X was placed into HB1054X (which deadlocked in a tie during committee vote on October 27th), and the Joint Committee on Appropriations passed the measure 19-6. The measure will now be taken up on the House floor tomorrow.

HB1054X is projected to bring in $455M in taxes annually, and $140M for the remainder of the current fiscal year:

  •  Cigarette tax increase: $243.5M annually
  • Mixed beverage tax on low-point beer: $14.5M annually
  • 6-cent increase on gasoline and diesel tax: $170.4M annually
  • GPT increase from 2% to 4% after 36 months: $13.4M annually
  • Miscellaneous tobacco taxes: $12.9M annually
  • TOTAL = $454,859,000 annually

Thursday, September 28, 2017

Drunk on cash? TSET promotes nightclubs, bars, drag shows


OCPA’s Center for Investigative Journalism revealed some shocking news this week about the spending habits of Oklahoma’s Tobacco Settlement Endowment Trust (TSET). TSET is a state agency created to fund programs that help people quit smoking and help pay for the costs of smoking-related health care.

TSET was formed as a result of the state's lawsuit against tobacco companies in the 1990s, and currently sits on an endowment worth over $1 billion. It brings in and spends about $50 million every year on tobacco cessation campaigns or health issues related to tobacco use. Or rather, that's what TSET is supposed to use the money for.

These days, you often find TSET promoting drinking water instead of surgery drinks, exercising, eating fruits and vegetables... which, while good things to encourage, are not what TSET was set up to spend money on. Oh, and TSET apparently now pushes nightclubs, bars, and drag shows for teenagers -- at non-smoking locales, of course.

Because alcohol is so much better than tobacco for Oklahomans' health and safety.

From the OCPA-CIJ article (they warn that the many links in their article showing what TSET is pushing "will lead to content that some will consider offensive"):
Smoking and second-hand smoke are health risks. So are many other behaviors. But one Oklahoma state agency is so focused on opposition to smoking that it promotes bars and night clubs as long as the venues promise to be smoke free.

One promoted Oklahoma City night club specifically advertises to teenagers “15 and up” and hosts regular “drag shows.” Other boosted bars and clubs feature similarly racy fare, putting Oklahoma in the odd place of promoting alcohol and risky behaviors just because they are not accompanied by smoking.

[...]

One TSET project that is about smoking is Free The Night, which offers "promotional opportunities to smokefree bars and clubs.” TSET created the program in 2013 and spent $653,150 on it in fiscal years 2015 and 2016.

On its website and various social media pages, Free The Night promotes 35 “partners” that are “smokefree bars and clubs.” Many are traditional bars, sports bars, or dance clubs, but some of these TSET-promoted businesses offer racier fare.

One Tulsa club specializes in scantily-clad women performing burlesque shows, another recently featured male strippers, and a third is advertising “torture acts” and a “spanking booth” as part of an upcoming event. A fourth Tulsa venue specializes in programs featuring men dressed as women and hosts watch parties for “Ru Paul’s Drag Race.”

Perhaps most startling is the Oklahoma City club that TSET’s Free The Night website calls “a safe, supervised, and smokefree place to hang out” and “an exciting, different place for youth to spend their weekends.” The Free The Night site links to the club’s Facebook page, which shows that most of the programs involve men dressed, but often barely dressed, as women. With TSET’s help, the club targets teenagers, inviting people as young as 15 to attend programs like “drag 101” and making show times earlier “so our younger crowd can actually stay and see the show.” There is no upper age limit at the club.

According to a presentation last year by the Oklahoma Department of Mental Health and Substance Abuse Services, “excessive alcohol use cost $3.08 billion [in Oklahoma] in 2010 as a result of lost workplace productivity, healthcare expenses, and crime.” Part of the Department’s mission is to provide services to the 251,000 Oklahomans who are dependent on or otherwise abusing alcohol. But while one state agency tries to combat alcohol abuse, another—TSET—actually spends state money to promote bars and nightclubs.

Read the full article, along with the aforementioned and warned links, here

From another OCPA article on the shocking program:
Beyond the hypocrisy of spending state dollars to promote shots, cocktails, and vodka infusions, consider what else those funds could buy. The state share of nursing home costs is $51.45 per day. That means TSET’s Free The Night spending could have covered the state’s share of 12,694 days of nursing home care.

TSET appears to be yet another example of a runaway government agency in need of oversight.

Thursday, August 10, 2017

House, Senate Democrats respond to cigarette tax ruling

The House and Senate Democratic caucuses have now issued statements over the Oklahoma Supreme Court striking down SB 845, the Cigarette Tax Smoking Cessation Fee.


House Democratic Caucus Releases Statement in Response to Oklahoma Court Ruling

OKLAHOMA CITY – The Oklahoma Supreme Court has unanimously ruled that Senate Bill 845 is unconstitutional.

SB845 was projected to raise more than $200 million for the current state budget by charging cigarette wholesalers a $1.50 per pack tax. During the legislative session, however, House Democrats warned Republicans that passing the unconstitutional legislation would have a detrimental impact on our state budget and state agencies. The measure passed the House with a partisan vote of 51 to 43.

The proposed revenue from the tax affects 7 percent of the appropriated budget to the Oklahoma Health Care Authority, 10 percent of the appropriated budget to the Department of Human Services, and 23 percent of the appropriated budget to the Department of Mental Health and Substance Abuse Services.

The court’s ruling will likely prompt a special session, costing the state an additional $30,000 per day, and requiring lawmakers to return to the capitol to fix the now incomplete budget.

“In order to appease special interests, Republicans made a decision to ignore the House Democratic Caucus, Oklahoma citizens and the Oklahoma Constitution,” said Rep. Monroe Nichols, D-Tulsa. “As a result of that decision, we are now facing a $200 million hole in our current budget. It is time for the Republican Leadership to stop playing political games and to start working on real solutions to fund state government. As we have been all year, the Democratic Caucus stands ready to negotiate a long-term solution to fix Oklahoma’s funding crisis.”

Rep. Collin Walke, D- Oklahoma City, a freshman Legislator said that he was elected to work for every day Oklahomans, and reiterated, “The Democratic Caucus will not support a solution that depends on regressive taxes while wealthy individuals and corporations continue to receive government handouts through tax credits, exemptions, and a decade of irresponsible tax cuts. It is time for the Republican majority to realize that an investment in the people of Oklahoma is an investment in the future of our state and it is absolutely imperative that the cycle of crisis created by negligent budgeting practices end.”

House Democrats held a public budget forum in the House Chamber on August 3rd, inviting all members of the House to listen to statements regarding the importance of these now threatened core services and to begin the work to reach an agreement in the event any of the revenue raising measures were struck down.

After the Forum, Rep. Emily Virgin, D-Norman stated, “We were sent to the Capitol to act in the best interest of the people, to provide core services for those most in need, to fund our schools, and build infrastructure for growth. The Democratic Caucus released a compromise budget plan that incorporated stable revenue to not only fill the budget shortfall, but also began the process of restoring cuts that have taken place over the last ten years. We put out a call to ask the Majority Caucus to come to table and prepare for Special Session. Not a single member of the Republican Caucus showed up.”

The House Democratic Caucus is urging the Governor to call a Special Session immediately. Several members are requesting legislation be drafted reflecting proposals contained in the Restoring Oklahoma Plan, released in March of this year, with the intention to maximize the time used in a Special Session to not only restore cuts tied to the cigarette tax but also to put Oklahoma on a better path forward.



Oklahoma Senate Democrats Issue Statement on Today’s Supreme Court Ruling Declaring “Cigarette Fee” Unconstitutional

The Oklahoma Senate Democratic caucus issued a statement Thursday through their leader, Sen. John Sparks, D-Norman, commenting on the Supreme Court’s ruling striking down the “cigarette fee” and declaring it an unconstitutional tax:

“The opinion issued today by the Oklahoma Supreme Court finding that the so-called “cigarette fee” passed by the legislature was, in fact, an unconstitutional tax comes as no surprise. We knew this tax was unconstitutional when it was passed by the legislature back in May. We made the same arguments that the Court has articulated in today’s opinion when Republican leadership at the Capitol was playing partisan political games and pushing this desperate revenue measure through during the last hours of the 2017 regular session.

“This kind of unconstitutional legislation is nothing new from the Republican leadership at the Capitol. Unfortunately, we are used to wasting money paying lawyers to defend their unconstitutional bills. What makes this situation new, and worse, is that now we are going to have to spend hundreds of thousands of taxpayer dollars in a special session doing the job that should have been done back in May.

“We need to approach a special session thoughtfully with real plans for revenue measures that can fill the $215 million budget hole which has been created at the Oklahoma Department of Mental Health and Substance Abuse Services, the Oklahoma Healthcare Authority and the Department of Human Services. We need to set clear priorities, take hard votes and make tough choices with all revenue options on the table for open, transparent discussion and debate. This is a time for cooperation and compromise. This is the time for a plan of action, accountability and real results. This is what our constituents demand of us and what they deserve from us with no exceptions and no excuses.

“We cannot continue to let the most vulnerable Oklahomans suffer because of a continued lack of leadership among the Republicans at the Capitol and their unwillingness to do the hard work and take the hard votes necessary to properly and fully fund our healthcare agencies.”

Lamb, Richardson comment on Oklahoma Supreme Court ruling

Continuing comments on the Supreme Court striking down the Cigarette Tax Smoking Cessation Fee, here are statements from two of the top Republican candidates for governor: current Lieut. Gov. Todd Lamb and attorney Gary Richardson:


Lamb Issues Statement Regarding OSC Ruling on Cigarette Fee Proposal

OKLAHOMA CITY, OK - Lt. Governor Todd Lamb issued the following statement this
morning regarding the Oklahoma Supreme Court’s ruling that a proposed fee increase on
cigarettes is unconstitutional:

“I am not surprised by the court’s ruling regarding the cigarette fee measure as I believe it
contradicts the intent of SQ 640. With the ruling, the legislature must now focus first and
foremost on identifying existing state funds to allocate to the healthcare-related programs that
were scheduled to receive appropriations from the cigarette fee measure. It is my belief this can
be done without drastic cuts to agencies. State government can and must operate more
efficiently, and this ruling provides an excellent opportunity to start that process.”



Richardson Issues Statement in Response to Supreme Court Striking Down Tobacco Tax 

Tulsa, OK, August 10, 2017 – Gary Richardson issued a statement today in response to the Oklahoma Supreme Court striking down the revenue raising portion of SB 845, which levied a $1.50 per pack "fee" on cigarettes.  "We are encouraged by the Supreme Court upholding the intent of SQ 640, which was passed by the voters in 1992 to require either a supermajority of the legislature to raise revenue or send the measure to a vote of the people," said Richardson.  "We were fully supportive of this challenge as it violates Article 2, Section 33 of the Oklahoma Constitution just like the three bills I challenged in court."

Richardson then highlighted part of Justice Wyrick's opinion in paragraph 49, which stated the following:
"If this quintessential excise tax can be transformed into a fee merely by calling it a fee and adding some regulatory gloss to the measure enacting it, then the promise of Article V, Section 33-a promise made to citizens in 1992 when they went to the polls and enacted the amended version-will be an empty one. The 'tax relief' to be expected from the requirement that all 'future bills "intended to raise revenue" . . . be approved by either a vote of the people or a three-fourths majority in both houses of the Legislature' will have been illusory. And that, we think, would be an abject failure to carry out 'the manifest purpose of the framers and the people who adopted it.'"
(NAIFEH v. STATE ex rel. OKLAHOMA TAX COMMISSION)
"It is heartening to see the Supreme Court bring clarity to this issue," said Richardson.  "We hope that Supreme Court will view our challenges to the car sales tax, electric and hybrid vehicle fees, and the decoupling of the standard deduction through the same lens when they release their decision on the other challenges to the revenue-raising measures."

Fallin, McCall, Schulz comment on Cigarette Tax ruling

State leaders are starting to weigh in on the Oklahoma Supreme Court striking down the Cigarette Tax Smoking Cessation Fee. First up, the three members of state government who pushed the unconstitutional tax and were named in the lawsuit: Governor Mary Fallin, House Speaker Charles McCall, and Senate Pro Tem Mike Schulz.


Governor Mary Fallin Statement on the Oklahoma Supreme Court 
Striking Down Smoking Cessation Fee

OKLAHOMA CITY – Governor Mary Fallin today issued the following statement in response to the Oklahoma Supreme Court striking down a smoking cessation fee approved this past legislative session:

 “I am disappointed to hear the Supreme Court struck down the smoking cessation fee, but I certainly respect the justices’ authority. I will be discussing with legislative leaders from both parties the need to address the $215 million shortfall this will create for the Department of Human Services, the Department of Mental Health and Substance Abuse Services and the Oklahoma Health Care Authority, the three agencies that received the bulk of the money that was to be generated by the cessation fee.

“These agencies and the people they serve cannot sustain the kind of cuts that will occur if we do not find a solution. My belief is we will have to come into special session to address this issue.”


House Speaker McCall Releases Statement after Court Ruling

OKLAHOMA CITY – House Speaker Charles McCall issued the following statement today regarding the Oklahoma Supreme Court's decision on Senate Bill 845.

"The Court has made their ruling and now it is up to the Governor and legislative leaders to agree on the best course of action moving forward.

"It is important to remember that the reason our budget has been suffering is because Oklahoma families and businesses have been struggling.  State revenues are a reflection of the people of our
state.  When our citizens have less money in their pockets to spend the state will realize less revenues.  I am a firm believer that government must live within its means.

"The tobacco fee for health care was passed in an effort to avoid significant budget cuts. After House Democrats refused time and again to support increased revenue measures, the fee was our only opportunity to balance the budget without deeper cuts. The minority party decided to play games with the budget, and now that opportunity has passed.

"I look forward to working with the Governor and the Senate to overcome this latest challenge."


Senate Pro Tem comments on Supreme Court ruling

Statement from Senate President Pro Tempore Mike Schulz on Thursday’s Oklahoma Supreme Court ruling regarding the cigarette fee.

“While I disagree, I appreciate the Oklahoma Supreme Court’s quick ruling allowing the governor and the Legislature to immediately address the matter. There are several options available to us, and Senate leadership will continue to work with the governor’s office and House on deciding the best move forward.” – Pro Tem Mike Schulz, R-Altus

Thursday, June 08, 2017

Lawsuit filed over new cigarette tax


A lawsuit has been filed to block the new $257M cigarette tax "smoking cessation fee" passed by legislators in the final week of the legislative session last month. The lawsuit was filed by R.J Reynolds Tobacco Co. and Phillip Morris USA (the two largest tobacco companies in the country), along with two convenience stores, a wholesaler, and two individuals.

Specifically noted by the lawsuit:

  • Passage of SB845 violated the Constitution's requirement that revenue-raising measures receive 3/4ths vote majority in both houses
  • Passage of SB845 violated the Constitution's requirement that revenue-raising measures originate in the House, rather than the Senate
  • Passage of SB845 violated the Constitution's ban on revenue-raising measures being passed in the final five days of session

The full brief as filed can be viewed here (courtesy of KFOR-TV).

Conservatives, and even Democrats, warned that this measure (and others) would fail to meet constitutional muster, but Governor Fallin and legislative leaders plowed ahead anyway.

If struck down, it would create a hole in the FY18 budget that would either trigger a special session this summer, create automatic cuts down the road, or mean that legislators would need to pass a supplemental funding bill very early in the 2018 session for the end of FY18.

Friday, May 26, 2017

Session ends today; votes on cigarette "fee", vehicle sales tax, state budget


As the Oklahoma Legislature prepares to adjourn sine die by 5:00pm, there is still unfinished business to vote on. The House will take up the $6.8B FY2018 budget, as well as the $257M cigarette tax "smoking cessation" fee.

According to Article 5, Section 33 of the Oklahoma Constitution, passing measures that raise revenue is clearly unconstitutional, per passage of State Question 640 by Oklahoma voters in 1992. Legislative leadership thinks they can get around that ban by calling the cigarette tax (and other measures) a fee instead. That is simply wrong, and the Oklahoma Supreme Court will likely get a chance to weigh in on the matter.

Whether it's a tax or a fee, it has the same effect on whomever pays it: more money is taken from their wallet by the government. Whether it's a tax or a fee, it has the same effect on state government: more money is taken from citizens and placed in state coffers.

The State Senate will be taking up HB2433, which raises $123M by charging a 1.5% sales tax on the sale of vehicles. This measure passed the House 52-47 on Wednesday.


Oklahoma voters clearly spoke in 1992 that they don't want new revenue, be it taxes or fees, passed in the final week of the legislative session, or passed with less than 3/4ths of the Legislature voting in favor. Further, Oklahoma voters clearly spoke just six months ago by shooting down a $615M tax increase that would have been dedicated to education, which most voters consider to be the top state funding priority.

The Oklahoma Legislature should honor and uphold the letter and spirit of the people's will, and not increase taxes, or fees (as the late Labor Commissioner Mark Costello said, "A fee is nothing more than a tax by another name").