Cortes To Seek HD88 Seat

Steve Cortes, former general counsel to Governor Brad Henry, has announced he'll seek the House District 88 seat held by Representative Al McAffrey, who is running for the Senate seat previously held by Andrew Rice.

Cortes is an attorney with  Riggs Abney Neal Turpen Orbison & Lewis.

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Henry's Highway 'Spy' Cam Plan Runs Out Of Gas

Plans to use highway traffic cameras to identify motorists without vehicle insurance have come to an abrupt halt, The Oklahoman reports today.

The idea, suggested by Gov. Brad Henry in his budget proposal to legislators when this year's session began, was intended to raise about $50 million its first year.

[To read The McCarville Report Online's extensive reporting on this issue, type InsureNet in the search block at top left.]

Read all of Michael McNutt's story in The Oklahoman: http://www.newsok.com/oklahoma-puts-brakes-on-highway-camera-system-plan/article/3484128?custom_click=lead_story_title#ixzz0wHr1fHMQ.

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Debate Stalls Use Of Cameras As Insurance Spies; Oklahoman Focuses On Henry's Fundraising Plan

By Randy Ellis/The Oklahoman ~ A proposed traffic camera system being counted on by state leaders to generate at least $50 million in revenues from uninsured drivers this fiscal year has run into roadblocks.

Read the history of the highway traffic 'spy' camera proposal by typing InsureNet in the TMRO archives block at top left.

American Insurance Association attorney Jeramy Rich says existing technology has weaknesses, and claims many insured Oklahoma motorists are going to be harassed with undeserved fine notices if the system is implemented.

Jonathan Miller, chairman of a company that is part of a consortium competing for the contract, disagrees. Miller contends a good system can be put in place, but says continued delays could jeopardize the system's ability to produce $50 million this fiscal year.

Bids for the project were opened more than 2½ months ago.

Wellon Poe, general counsel for the Oklahoma Department of Public Safety, can't predict how much longer the bid review process might take.

"We're trying to evaluate everything from how it's going to be done to who's going to do it," he said. "There have been no final decisions on any of it."

Oklahoma Insurance Department officials estimate between 18 and 23 percent of vehicles on Oklahoma roads are uninsured. The contract calls for fixed or mobile cameras to photograph license plates on moving vehicles. Computers would transmit the data and match it to insurance verification information on national, state and insurance company databases

Read more from this Tulsa World article at http://www.tulsaworld.com/news/article.aspx?subjectid=12&articleid=20100801_12_A20_OKLAHO442166.

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Noted Quote: About Those Spy Cameras...

The 76 cameras in Arizona didn't produce the revenue stream politicians had anticipated. According to the state, less than a third of the 1.2 million tickets mailed out were ever paid, which meant the government received just $78 million in fine payments -- not the $120 million it projected. Add political pressure to the equation and the disincentives to keep the cameras grew. Dilip Sarangan, security analyst with Frost and Sullivan, agrees that red-light cameras aren't useful for generating revenue. "If you're just looking to get more money into a state, that's not the best idea: It's really too easy for people to contest the charges," he told FoxNews.com. ~ From an analysis on www.foxnews.com

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Pennsylvania Governor Pushes 'Spy' Camera Plan

From The Newspaper ~ Pennsylvania Governor Ed Rendell is struggling in his latest budget with the desire to spend more money while lacking tax revenue due to the economic recession. Nonetheless, the $28 billion budget for 2011 expends $200 million more than the previous year. Rendell yesterday testified before the state Senate Transportation Committee about how he intended to hit up motorists to make up much of that amount.

"If you did the increase in fees for inflation and the four cents at the pump -- again, I think my idea is the best idea -- but if you did that, you've got almost $100 million more," Rendell testified. "If you did the InsureNet -- that's the plan with the cameras -- the state would generate $75 million more."

Rendell specifically asked committee members to index various registration and driving fees to inflation so that they would automatically increase every year without a vote. He also suggested the gas tax should rise by at least four cents, although he preferred to index the gas tax to inflation as well.

Lobbyist Wayne Pettigrew had testified on March 2 before the state House Transportation Committee about the InsureNet made system which would generate automated citations for motorists who may have missed an auto insurance premium by as little as a few hours.

"I'll use myself as an example," Pettigrew explained. "Let's say my premium is due March 1st, today is March 2nd, I haven't paid my premium. If I'm driving by a site as of 2:00 last night, that site is now going to know through the NLETS database that my insurance is unpaid today. So therefore, today, if I'm driving past that site, it's going to show me as an uninsured vehicle... Most states there is no grace period for vehicle liability on insurance."

The for-profit company would set up cameras across the state to monitor and track all passing motorists, automatically generating tickets for anyone whose information does not appear in the insurance database. The state would pay nothing.

"We provide all the equipment, all the direct costs, the whole thing," Pettigrew said.

Rendell promoted a similar no-cost program to expand red light cameras throughout the state. Currently, automated ticketing machines are only legal in Philadelphia. The state Senate on July 3 voted 49-1 to allow cameras in second and third-class cities, generating an estimated $25 million in net profit for the state.

Rendell was upset that his plan to toll Interstate 80 was blocked, but he insisted tolling as many roads as possible through "public private partnerships" was essential to his overall plan. The governor was optimistic that this suite of taxes, fees and tolls could be enacted.

"Although I do think it's not an easy political lift, I don't think it's quite as hard as everyone makes it out to be," Rendell said.

[Access stories about Oklahoma's plan for similar cameras by entering InsureNet in the TMRO search block at top left.]

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Vehicle Insurance Ticket? Talk To Camera Company

From Traffic Technology Today (UK) ~ The US state of Oklahoma is preparing an unprecedented statewide deployment of automated ticketing machines designed to generate US$95 million in revenue. Instead of using red light cameras and speed cameras, the Oklahoma Department of Public Safety (DPS) is preparing to sign a contract with a company that will track all passing motorists with a network of at least 20 ALPR cameras. The devices would also generate additional revenues by issuing US$250 citations for expired insurance using the Oklahoma Compulsory Insurance Verification System (OCIVS) database that went live in July 2009.

The proposal includes a requirement for the ability to keep daily statistics and related data on vehicles for which license plate data was captured, which could include logging the date, time, and location any particular vehicle passes a stationary camera. The two largest red light camera vendors, Australia’s Redflex Traffic Systems and American Traffic Solutions (ATS), offer a nationwide tracking service that uses automated ticketing machines. ATS has filed a bid for the Oklahoma contract along with several other companies including InsureNet.

6th Amendment Violation?
“It poses a serious threat to privacy and civil liberties whenever the government compels private companies to turn over customers’ personal information,” one expert said. “It is not inherently troubling that police raise revenue from law enforcement activities. Fines help deter illegal behavior, and increased revenue can help motivate officers to do their job well.

“But the Bill of Rights keeps a motivated police force in check,” he added. “And I believe that the cameras likely violate a citizen’s Sixth Amendment right to confront his accuser. Absent an actual witness, the accused cannot cross-examine a camera.”

The winning company would install, test, maintain and operate the cameras. It would mail tickets to vehicle owners. It would run a toll-free hotline and conduct hearings where motorists would contest camera tickets before a camera company employee instead of a judge. It would also collect fines and generate statistics. In return for the right to issue tickets, the company would pay DPS a bounty on each citation collected.

Hat tip: Kaye Beach

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Henry Silent On Traffic Camera Controversy

It's his plan, it's in his budget, but Governor Henry has been remarkably silent thus far about the system of highway traffic "spy" cameras he wants to nab vehicle insurance scofflaws and raise a claimed $50 million in new revenue.

While the controversy over the system has bubbled for weeks now, with privacy concerns and questions about how the idea for the system was developed, where the $50 million in revenue figure came from, and how his campaign fundraiser Barry Switzer became involved in it, Henry has been silent.

The system was proposed by Henry in his budget, which was agreed to by Republican leaders in the House and Senate, without comment or explanation from any of them. And despite questions, House Speaker Chris Benge and Senate President Pro Tem Glenn Coffee have remained silent.

The lack of comment, by Henry in particular, appears to be generating unrest among some legislators. Democrat Mike Shelton brought the plan to the attention of the American Civil Liberties Union, which has filed an Open Records request with the Department of Public Safety. Shelton cites privacy concerns about information gathered through the system.

Several Republicans question the authority for instituting the plan and note they can find no law specifically authorizing it.

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Highway Traffic Camera Plan Draws ACLU Concern

By Randy Ellis/The Oklahoman ~ A local civil rights organization Wednesday said it is concerned that privacy rights of Oklahomans could be violated by a proposed state contract to use highway traffic cameras to identify motorists without vehicle insurance.

To read The McCarville Report Online's detailed coverage of this issue, search Highway Cameras in the box at top left.

The American Civil Liberties Union of Oklahoma issued a news release announcing it has submitted an open records request to the state Department of Public Safety seeking information about a proposed insurance verification enforcement system.

"While the state has a vested interest in demanding all drivers are insured, it is not acceptable if the information captured from this elaborate camera system is used for any other purposes,” said C.S. Thornton, deputy director of ACLU of Oklahoma.

For example, it would be an abuse of authority to use information obtained under the guise of insurance verification to identify locations of people with outstanding arrest warrants, contends Tamya Cox, legislative counsel and program director for ACLU Oklahoma.

The Department of Public Safety is evaluating bids submitted by four companies that are competing for the contract.

Former University of Oklahoma and Dallas Cowboys football coach Barry Switzer has been promoting InsureNet, which is part of the Oklahoma Public Safety Consortium which is one of the bidders seeking the contract. The other bidders are Canadian-based Intelligent Imaging Systems of Edmonton, Alberta; MV VeriSol, headquartered in Kingston, Ga.; and American Traffic Solutions, based in Scottsdale, Ariz.

State officials are counting on the system to raise at least $50 million in additional revenue next fiscal year.

"I have many concerns of the potential authorized and unauthorized abuse of government intrusion,” said state Rep. Mike Shelton, D-Oklahoma City, who brought the proposed contract to the attention of the local ACLU affiliate. "The idea that private information may be handed over by insurance companies to a third party without strong safeguards should worry all Oklahomans.”

Jonathan Miller, chairman of InsureNet, and Charles Pecchio, chairman of MV VeriSol, both previously told The Oklahoman that their proposed systems are designed to protect privacy rights.

A Department of Public Safety spokesman did not return telephone calls Wednesday seeking comment.

Read more: http://www.newsok.com/article/3470777?searched=aclu&custom_click=search#ixzz0rlfRVpJK.

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Sources: Barry Switzer, J. C. Watts Stand To Share In Huge Highway Traffic Camera Plan Fee

The McCarville Report Online has been told that former University of Oklahoma football coach Barry Switzer and his former star quarterback, ex-Congressman J. C. Watts, will share in a huge fee if the Chicago-based InsureNet is successful in its bid to help implement a system of highway traffic cameras to catch insurance scofflaws in Oklahoma and other states.

Thus far, however, Oklahoma is the only state where the firm's system has won gubernatorial and legislative approval and is in the process of being adopted; it has been rejected in other states, including Nevada and Pennsylvania, primarily because of privacy concerns raised by opponents. Failure by the company to win contracts in those, and other, states apparently means the two have been paid nothing for their efforts to date. In Oklahoma, the company is one of four bidders and may or may not be awarded the contract.

One of those involved says he knows nothing about any fees promised Switzer, Watts, or others, including himself.

Switzer has been the company's out-front representative in Oklahoma, meeting with Governor Henry's chief budget writer, Treasurer Scott Meacham, to push for inclusion of the company's plan in Henry's budget.

While Switzer has contended Henry "has nothing to do with this," it was Henry's action in including the plan in his budget that would make possible the fee due Switzer and others for their lobbying if InsureNet were to be awarded the contract. Switzer was one of Henry's chief fundraisers in his 2002 campaign and is credited with helping Henry win his upset victory over Republican Steve Largent.

Bids on the plan, which Henry claims will generate $50 million for the state in its first year of operation, have been taken by the Department of Central Services after being outlined by the Department of Public Safety and its expert, David Beatty; a contract has not yet been awarded. Payment due the firm chosen to implement the plan is estimated in the 25-30 percent range.

InsureNet reports on its website that it now has formed a partnership with Intelligent Imaging Systems (IIS) to "blend their respective technologies in order to provide added functionality relating to vehicle insurance verification. IIS is a leading supplier of Smart Roadside™ solutions for the Transportation Safety and Security market. IIS’ automated electronic screening systems represent the evolution in effectiveness and efficiency of roadside law enforcement operations. With technology deployed in almost half the States and Provinces in North America, IIS is leading the way in helping public agencies use technology to improve highway safety and security."

Watts, a Republican who is now a Washington lobbyist, has not been publicly visible in working for InsureNet. Sources say, however, that he has worked behind the scenes on the company's behalf, "opening doors" in several states. Oklahoma City lobbyist Chad Alexander, Watts' former campaign manager and spokesman, is InsureNet's Oklahoma lobbyist. Alexander did not respond to questions about Watts' involvement, nor did House Speaker Chris Benge. Senate President Pro Tem Glenn Coffee, through spokesman Randy Swanson, said he's had no contact with Watts. TMRO has been told that Watts had contact with a key member of Benge's staff when the push to land the contract for InsureNet began a year ago.

Former Rep. Wayne Pettigrew, whose contract with InsureNet expired May 31st, said he doesn't believe Watts is active in the Oklahoma effort: "I believe JC’s consulting company was only used in Louisiana."

Efforts to determine if Watts has been active on the company's behalf in Canada, where he was a popular professional football player, have been unproductive. InsureNet has pursued its automated license plate recognition system in that country.

Capitol sources say it may be the involvement of Republicans Watts, Pettigrew and Alexander that resulted in no questions about the plan from Republican House and Senate leaders, or from Republican Rep. Randy Terrill of Moore, chairman of the House Budget Subcommittee with jurisdiction over the Department of Public Safety budget. Some observers found it curious that Republicans asked no public questions about the controversial use of the cameras, opposed by civil libertarians and privacy advocates, or about how the revenue figure was determined. Benge and Coffee approved the plan, apparently without question, when they signed off on Henry's budget.

Identified by The McCarville Report Online as part of the InsureNet "team" through company documents and sources are Switzer, Watts, former OU players and brothers Tinker and Steve Owens, Alexander, and Pettigrew. Tinker and Steve Owens are Norman insurance agents. Steve Owens says he was approached to join the InsureNet "team" but declined to do so; he was unaware a company document with his photograph was being used.

Pettigrew told TMRO he was contacted more than a year ago by Tinker Owens and asked to arrange a meeting with InsureNet's top official and Rep. Ken Miller, chairman of the House Budget Committee. Pettigrew said they subsequently had lunch. Miller confirmed the lunch and said he took no action as a result, and did not advocate InsureNet's plan with anyone.

A source with access to details of the alleged agreement involving Switzer and Watts says Switzer is to be paid 2 percent of the company's possible revenue in the states where he's been active, while Tinker Owens is listed also at 2 percent, with Watts, Pettigrew and Texan Jack West listed at 1 percent. West, who is in the insurance business, is a former pro football star known as the player who once ran into a goal post.

Pettigrew, however, told TMRO he knows nothing about those percentages or any contract outlining them.

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Meacham Confirms Highway Traffic 'Spy' Camera System Meeting With Barry Switzer; J. C. Watts Involved In Louisiana, Wayne Pettigrew Says

Governor Henry's chief budget writer confirms to The McCarville Report Online that he met with former OU and Dallas Cowboys football coach Barry Switzer as Switzer advocated one company's plan for a system of controversial highway traffic "spy" cameras to nab insurance scofflaws that Switzer wanted Henry to include in his budget.

And while sources say former OU football star and ex-Congressman J. C. Watts also has been involved in Switzer's effort here, one of those involved says Watts joined Switzer on the company's behalf only in Louisiana and "shied away" from involvement in Oklahoma. Louisiana's governor, Republican Bobby Jindal, is a former Washington appointee in the Bush Administration and a former congressman.

Later Today: Has The InsureNet Push Run Aground?

Henry adopted the plan Switzer advocated and included it in his budget as a measure that would generate $50 million in new revenue (and more millions for a company chosen to administer the plan). It also apparently would generate considerable sums for Switzer and others lobbying for it in fees for their efforts.

Switzer says he is working on a contingency basis for InsureNet, the Chicago-based firm that has bid on the multi-million dollar Oklahoma contract.

Treasurer Scott Meacham, through Deputy Treasurer Tim Allen, told The McCarville Report Online that he met with Switzer. Said Allen: "Yes, he (Meacham) did meet several months ago with Coach Switzer."

Allen said Meacham, Henry's chief budget adviser, didn't immediately recall all the details, or the date of the meeting, but last Friday said he would provide that information.

Switzer has confirmed TMRO's initial report that he represents InsureNet in numerous states, but denied his advocacy of the firm's system in Oklahoma has anything to do with the governor or their close personal and political affiliation.

Henry's 'Not even involved'?
"Brad Henry is not even involved in this," Switzer told The Oklahoman's Randy Ellis despite the fact that the entire purpose of the Meacham meeting was for Switzer and others to advocate the InsureNet system to spot vehicle insurance scofflaws for inclusion in Henry's budget. It was included as a revenue measure by Henry after Meacham's meeting with Switzer; bids have been taken by the Department of Central Services but a contract has not yet been awarded.

Switzer said he doesn't believe his relationship to Henry had anything to do with InsureNet seeking him out to lobby on its behalf although it appears to be the company's method of operation to secure politically-connected public figures and former elected officials as its advocates.

Switzer's ties to Henry are long-standing. In Henry's 2002 campaign, Switzer emerged as a key fundraiser and his support of Henry is credited by some with helping Henry stage his upset win over Republican Steve Largent.

The connection has prompted the suggestion that Henry's adoption of the plan pushed by Switzer is political payback from Henry since Switzer stands to profit from the transaction. Switzer told The Oklahoman he's not yet been paid, but expects to be if the InsureNet plan is adopted: "If these states go on these contracts, I'm sure I'll get paid for doing it."

Contingency Fee Payments Prohibited
That statement has resulted in the citation, by some, of Oklahoma's law prohibiting contingency fees. The law, OS 21.9334, reads, "Contingency fee prohibited. No person may retain or employ a lobbyist ... for compensation contingent in whole or in part on the passage or defeat of any official action or the approval or veto of any legislation, issuance of an executive order or approval or denial of a pardon or parole by the Governor. No lobbyist may accept any employment or render any service for compensation contingent on the passage or defeat of any legislation or the approval or veto of any legislation by the Governor. Any person convicted of violating the provisions of this section shall be guilty of a felony punishable by a fine of not more than One Thousand Dollars or by imprisonment in the State Penitentiary not exceeding two years or by both such fine and imprisonment."

Pettigrew said, "I don’t know if Switzer had a contract or if he did if it was similar to mine with InsureNet but mine has a provision that if the contract would be in violation of any state or federal law, then it is null and void."

'All I do is open the door for them'
Switzer said InsureNet officials asked him to help introduce them to Meacham and others. He said he was introduced to InsureNet by Tinker Owens, the former OU wide receiver who is now a Norman insurance agent. (An internal InsureNet document viewed by TMRO shows Switzer, Tinker Owens and his brother, former OU star Steve Owens, as members of the "InsureNet Team" in Oklahoma. Steve Owens, however, says he was invited to join the team but declined. He was not aware the document is in circulation.)

Switzer said he introduced InsureNet officials to executives in Oklahoma, Texas, Tennessee, Kansas, Missouri and New Mexico. "All I do is open the door for them," he said.

Switzer said he does not have a contract with InsureNet, only a handshake. Company officials did not respond to inquiries about the relationship of Switzer and others to the company, nor did Oklahoma City InsureNet lobbyist Chad Alexander, the former Oklahoma Republican Party chairman and former campaign manager for Watts. Governor Henry's office did not respond when asked when Henry met with Switzer.

Former Rep. Wayne Pettigrew, Edmond insurance agent who is partners with Tinker Owens in a Tulsa-based life insurance company, says he doesn't believe Watts has been active in Oklahoma for InsureNet: "I believe JC’s consulting company was only used in Louisiana," he told TMRO. However, another source said Watts made "introductory" phone calls for the company and Switzer in Louisiana, Nevada and other states.

Pettigrew has been a national representative of InsureNet and helped push the company's plan across the nation; he said today his contract expired on May 31st and he no longer is helping the company.

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$50 Million Revenue Estimate A Mystery As Those Involved Contradict Each Other, Point Fingers

There is a mystery that still hangs over Governor Henry's plan to raise $50 million in new revenue from a statewide system of highway traffic "spy" cameras to catch insurance scofflaws and the mystery is this: Why does no one seem to know for certain where that income estimate came from?

It's an important question because if the estimate is not accurate, there's a hole in the revenue side of the budget that will have to be filled some other way. In addition, the perception appears to be growing that despite years of planning, the system was placed for bids with far too many unanswered questions.

There also appears to be information about the system itself that contradicts other information. For example, the governor's budget suggests 220 of the cameras. Yet a DPS document outlining specifications mentions only "12 to 20" cameras. Questions from vendors, and DPS responses, indicate confusion in other areas of the plan as well ranging from how the system will be administered to where fines would be paid.

The McCarville Report Online has asked everyone in a position to know where the estimate came from after noticing that the Department of Public Safety, charged with putting information together for bidders and in overall charge of the plan, responded "Unknown" to questions from several bidders about the source of the estimate, and how it was derived.

The Governor's Office Says The Treasurer Helped Put The Estimate Together; The Treasurer's Office Says The Governor, Senate President Pro Tem and House Speaker Put It Together; The House Speaker Says It Came From The Governor; An Expert Says The Estimate Is 'Probably Worthless'

TMRO first asked Governor Henry's spokesman, Paul Sund, where the estimate came from. He replied, "I think OSF budget division and Scott's (Meacham) staff put that together after looking at what some other states were doing."

But Treasurer Scott Meacham, via Deputy Treasurer Tim Allen, said, "the revenue estimate was based on responses to a DPS RFP (Request For Proposal) and was reduced (from an original estimate of $95 million) by agreement between the Governor, Pro Tem and Speaker...."

Senate President Pro Tem Glenn Coffee, on vacation in Arkansas, apparently could not be reached by his staff.

House Speaker Chris Benge, spokeswoman Jennifer Monies said, "just indicated that number came from the governor. Other than that, he is unaware of the source."

Former Rep. Wayne Pettigrew, a national officer of InsureNet, one firm interested in the state contract that also retains Barry Switzer as a consultant, followed closely the development of information about the new system.

He tells TMRO, "As far as I know, it is 6 months anticipated revenue from a vehicle insurance verification system that has a national database. I believe it assumes a 24% uninsured rate on 70% of the vehicles (from Oklahoma) and a 70% collection rate on the fines levied. I do not know what the anticipated uninsured rate is for the out-of-state vehicles. I think the RFP from DCS (Department of Central Services) went to a single state type system for the database (not the InsureNet one) and so this number ($50 million) is probably worthless now."

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The Oklahoman Plays Catch-up On Traffic 'Spy' Camera Controversy, Cites Switzer's Involvement

The Oklahoman is out with an article by Randy Ellis about Governor Henry's highway traffic "spy" camera plan designed to generate $50 million in new revenue by fining drivers of uninsured vehicles.

Ellis' Page 1 article focuses on a revelation first reported (on May 24th) by The McCarville Report Online, the involvement of former OU and Dallas Cowboys football coach Barry Switzer in opening doors for one of the firms bidding on the Oklahoma contract.

Read the article at www.newsok.com.

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The $50 Million Question: Origin Of Governor Henry's Highway Traffic Camera Revenue Estimate

Governor Henry's budget hinges, in part, on the generation of $50 million in new revenue from fines levied against uninsured motorists nabbed by a new statewide system of highway traffic cameras, but there seems little agreement today the system will generate that sum and the origin of the estimate itself is in question.

It seems no one knows for certain where that revenue estimate came from. One of those who has followed development of the system says the $50 million figure "is probably worthless now."

The Department of Public Safety, which handled the requests for information (RFI) and the requests for proposals (RFP) from bidders, flatly says it doesn't have a clue about the estimate. "Unknown" is how DPS responded to two questions from potential vendors who asked upon what basis the estimate was made.

Paul Sund, Henry's director of communications, told The McCarville Report Online, "I think OSF budget division and Scott's (Meacham) staff put that together after looking at what some other states were doing."

A Tuesday inquiry to the treasurer's office has not yet been answered.

Former Rep. Wayne Pettigrew, a national officer of InsureNet, one firm interested in the state contract, followed closely the development of information about the new system. He tells TMRO, "As far as I know, it is 6 months anticipated revenue from a vehicle insurance verification system that has a national database. I believe it assumes a 24% uninsured rate on 70% of the vehicles (from Oklahoma) and a 70% collection rate on the fines levied. I do not know what the anticipated uninsured rate is for the out-of-state vehicles. I think the RFP from DCS (Department of Central Services) went to a single state type system for the database (not the InsureNet one) and so this number is probably worthless now."

It is estimated that more than 750 motorists without insurance would have to be fined per day to produce $50 million for the state given that the vendor would be paid 25 to 30 percent of the fines collected for administering the system. DPS reports there are 3.9 million vehicles in the state with 3.5 million of them being properly insured. That means there are 400,000 uninsured vehicles; at 750 per day, 273,750 fines would be levied in the first year. That appears to indicate that even if the system produced $50 million in the first year, revenue would drop dramatically in year two and following years unless huge numbers of additional vehicles go uninsured. Those in the industry say that's unlikely and, using this analysis, they view the future revenue stream from the system as tenuous unless huge numbers of out-of-state vehicles are included.

The initial plan, apparently, was for a system that would scan out-of-state license plates as well to catch those uninsured motorists and Governor Henry cited that as a large part of the revenue stream and the Department of Central Services Request For Proposals (RFP) sent on behalf of DPS does mention the multi-state function, as does a question-and-answer document on the DCS website.

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DPS Doesn't Have A Clue Where Highway Traffic 'Spy' Camera Revenue Estimate Came From

The Department of Public Safety admits in a solicitation for vendors bidding on Governor Henry's new statewide system of highway traffic "spy" cameras that it doesn't have a clue where an estimate of $50 million in new revenue for the state from the system came from.

That revelation is found in reading questions submitted by bidders, and the DPS response to them (Bid #5850000395). The DPS response to the questions is somewhat surprising given that it is the entity that has been in charge of requesting information from bidders.

Two bidders asked for the source of the revenue estimate; in both cases, DPS replied, "Unknown."

Reading the proposals also reveals that initially, the estimate of new revenue was $95 million. The income would flow from fines assessed against those without vehicle insurance. Even at $50 million, the sum listed in Henry's budget, it is estimated that more than 750 motorists without insurance would have to be fined per day to produce that much money for the state given that the vendor would be paid 25 to 30 percent of the fines collected. DPS reports there are 3.9 million vehicles in the state with 3.5 million of them being properly insured.

A DPS source told The McCarville Report Online he believes the first estimate came during one of the initial discussions about the Oklahoma system. He named the person he believes made the estimate, but TMRO was unable to contact that person during the Memorial Day holiday for confirmation.

The system, which would place 220 cameras across the state to photograph the license plates of passing vehicles, is designed to catch insurance scofflaws, those without the mandatory vehicle insurance.

But privacy advocates and civil libertarians see a much more sinister use of the information that would be gathered by the cameras. They note the apparent ease of tracking the movements of motorists, and the ability of the state to harvest unrelated information about the vehicle owner and place it into a computer database. That fear appears to be reinforced by advocates of the "Automated License Plate Recognition" (ALPR) system.

Governor Henry proposed the system as part of an effort to raise new revenue. The push to put the system in place, and those involved, was not revealed in full until The McCarville Report Online published a series of stories about it. (Access those stories by clicking on the Highway Cameras label below.) Norman blogger Kaye Beach first reported on the plan; she and Oklahoma City blogger Andrew Griffin followed its development. Journal-Record columnist Scott Carter also called attention to the plan.

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Noted Quote: Traffic 'Spy' Cameras Create 'Additional business for insurance companies'

"Use of the InsureNet System will result in additional business for Delaware's insurance companies because all owners of vehicles registered in Delaware will be forced to maintain insurance coverage." ~ Delaware newspaper article explaining that state's system of traffic "spy" cameras.

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The DPS Control Room On Memorial Day 2011?

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KTOK's Matthews Talks 'Spy' Cam Controversy

KTOK's afternoon drive show host, Program Director Lee Matthews, has been discussing the controversial highway traffic "spy" camera plan proposed by Governor Henry in his budget.

The controversial plan, designed to determine if motorists have the required state insurance and generate $50 million per year in state income, has drawn considerable interest since details about it have been revealed by Oklahoma bloggers Kaye Beach, Andrew Griffin and Mike McCarville.

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Bloggers Asked 'Spy Cam' Questions Months Ago

It was with very little fanfare, and only an occasional news story, that Governor Henry's budget proposed a new revenue stream from a controversial source: Highway traffic, or "spy," cameras designed to catch vehicle insurance scofflaws, or those without the mandated insurance.

No attention was drawn to the $50 million-in-new-revenue plan until The McCarville Report Online began a series of articles about it last Friday.

No attention in a major way, that is. But months ago, Norman blogger Kaye Beach was asking pointed questions about the plan. She, along with fellow blogger Andrew Griffin, delivered a letter to Governor Henry's office asking that "sunlight" be allowed to shine on the plan. She never got a response.

In retrospect, Henry might today wish he had addressed the subject then because today, the lack of public discussion about the plan figures in the theory by some that Henry and others wanted the plan to "fly under the radar" and they hoped few outside state government would notice it.

Even some in state government didn't have a clue about the program until TMRO reported on it. Said one House member: "I had never heard of this until I saw your first story."

Beach's December 19th letter to Henry, which got no response:

Governor Henry,

I am writing you to express my concern about the proposed automobile license plate scanning cameras to be placed in fixed locations around Oklahoma. This is allegedly a way for the state to automatically verify the insurance status of our vehicles as they pass.

We all agree that the damage caused by uninsured motorists is a big problem, but now, on top of the risk of uncompensated personal loss or damaged property caused by an irresponsible driver we learn that we will also be subjected to unwarranted monitoring by the state of Oklahoma.

My question to you, Gov. Henry, is will you refrain from using the executive powers of the state to decide the matter and allow the people and their representatives an open examination of this issue so that they can properly weigh its merits and cast their votes accordingly?

This is a decision that should not be made without ample sunlight.

I appreciate your consideration.

Sincerely,
Kaye Beach
Norman, Oklahoma

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Holy Batcameras! 767 Insurance Stops Per Day?

Will Governor Henry's estimate of $50 million in new revenue from vehicle insurance scofflaws caught with his new highway traffic "spy" camera system turn out to be similar to his inflated estimate of how much the lottery would raise?

Some say so today. One enterprising reader of Charles G. Hill's popular blog www.dustbury.com, figures out the figures are mind-boggling, based on a formula by which the system administration firm (not yet chosen) will be paid 30 percent of fines collected: "...for our chunk to be $50m, the total has to be $70m. At $250 a fine, that means we would have to ticket 280,000 vehicles. Not being given a time frame in which this $50m would be raised a lot of folks assume that it would be in a year (we always think in timeframes of a year) but that would mean stopping 767 cars a day!"

(The governor's budget estimates the $50 million in income for one year.)

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Pettigrew: Switzer's Involvement Minimal

Former Rep. Wayne Pettigrew, now a national officer of a firm (InsureNet) bidding to handle the new highway traffic "spy" camera system in Oklahoma, told The McCarville Report Online today that former OU and Dallas Cowboys football coach Barry Switzer, who represents the same firm, has had minimal involvement in trying to land the contract.

The system was proposed by Governor Henry in his budget to raise $50 million in new revenue by determing whether vehicles have the required state insurance. If they do not, fines of $250 are leveled.

Switzer was a Henry donor and fundraiser in his 2002 and 2006 campaigns. Switzer told Fox News 25 yesterday that he has never discussed the system with Henry.

Said Pettigrew: "I don’t think Switzer’s involvement with InsureNet was more than the initial introduction in Oklahoma. The PR firm that was hired by them was Capital Design Group (Chad Alexander) and I believe he is still under contract. I also believe that any lobbying activities were suspended when the RFI came out so as not to convolute the process. Once the RFI was complete the state immediately issued a RFP.

"The three other companies that are bidding on the RFP have probably hired a lobbyist or PR firm as well. In fairness that should be mentioned as well.

"The competitive bidding process in Oklahoma is a good one and one that was reformed in the legislature several years ago. I believe now that all bids are eventually open to the public once a decision is made by the state.

"The security and privacy provisions of the InsureNet system far exceed the other systems that are available. It is the only system that was accepted as the standard for NLETS and it is my understanding that it took them three years to accomplish this."

Privacy advocates and civil libertarians object to such camera systems as an invasion of privacy.

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