Senate, House Clear Lawsuit Reform Bill

The State Senate and House today passed a comprehensive lawsuit reform bill that represents an agreement with lawmakers, business advocates, doctors, mineral owners and trial lawyers. The measure now goes to Governor Henry for action.

House leaders said the deal will reduce the number of frivolous lawsuits in Oklahoma, which will help lower health care costs for all Oklahomans, recruit and retain Oklahoma doctors and bring more cost certainty to businesses in our state, especially small companies.

“The collaboration that occurred between all interested parties to reach this landmark agreement is exactly the type of work the people of Oklahoma expect from their leaders,” said House Speaker Chris Benge, R-Tulsa. “This deal is a compromise, which means everyone didn’t get everything they wanted, but it represents true reform for our state.”

Under the compromise, House Bill 1603 will contain the following major provisions:

Vague noneconomic damages (so-called “pain and suffering” awards) would be capped at $400,000 outside of exceptional circumstances. In rare cases where the cap is lifted, any amount greater than $400,000 could be paid with a reinsurance policy the state would purchase. The bill creates a task force that will study the details of the policy and payment options prior to implementation.

The reinsurance policy would pay up to $20 million a year to injured Oklahomans in exceptional circumstances of gross negligence or severe disfigurement. It is estimated such a policy would cost less than $1 million annually for the additional protection.
In order to have access to the reinsurance policy, doctors are required by the legislation to carry at least $1 million in medical liability insurance, which covers the majority malpractice cases. There is currently no state minimum requirement for insurance coverage.

“This change places the burden on doctors to carry higher levels of insurance to further protect injured Oklahomans, but also adds some certainty to the system in rare catastrophic cases,” said Rep. Dan Sullivan, House author of HB 1603 and the bill’s chief negotiator from the House.

The policy is a unique agreement that gives physicians a hard cap for medical liability insurance purposes but allows Oklahomans who have extenuating circumstances to receive awards above the cap.

As a result of that compromise, insurers will be able to sell medical liability insurance to doctors at lower rates because they won’t have to build up enormous reserves to cover the rare “jackpot” award that would otherwise bankrupt the company.

One of the main reasons doctor’s insurance currently costs so much is the impact of frivolous lawsuits – even though 70 percent of medical liability claims were dismissed between 2004 and 2007, Oklahoma’s major doctor’s insurance company spent $50 million defending those cases.

That cost should be significantly reduced following passage of House Bill 1603, allowing for cheaper insurance policies to be sold to doctors.

In turn, those lower insurance rates will make it easier to attract doctors to currently underserved areas of Oklahoma, particularly rural communities. Today, women all across Oklahoma often have to drive to Oklahoma City or Tulsa to deliver a baby because few local doctors will perform that service due to litigation threat and high insurance rates.

“Doctor and nurse shortages are a serious problem in Oklahoma. We have some of the best physician training in the country, but other states are stealing our doctors away,” said Rep. Doug Cox, an emergency room doctor in Grove. “We are training—often with taxpayer dollars—doctors who are being recruited to lawsuit reform-friendly states, it is a fact. This bill will give those physicians a chance to practice in this state.”

House Bill 1603 also contains other reforms. In the area of class-action lawsuits, court shopping for class-action suits would be restricted, and attorney fees could be reviewed.
The bill also requires an expert to certify that a professional negligence case has merit before it can proceed. That requirement would be waived for plaintiffs who cannot afford the costs associated with finding an expert.

Senator Jay Paul Gumm said he's pleased that a tort reform provision he had authored for several years was included in the lawsuit reform bill. The provision would prevent a gun manufacturer from being sued if their product was used in the commission of a crime.

“These are products that are legally manufactured and owned, and it just makes good sense to make sure this liability protection is part of our state law,” Gumm said. “We’ve come close to getting this proposal to the governor’s desk in the past, only to see it fall victim to politics. I’m very optimistic about its chances this year.”

The Democrat from Durant said most firearm manufacturing facilities are located in states hostile to gun ownership. In contrast, Gumm pointed out most Oklahomans are strong advocates of the 2nd Amendment right to own firearms.

“Whether it is for hunting or for self-protection, owning firearms is part of Oklahoma’s heritage and culture,” Gumm said. “In addition, we have one of the best gunsmith programs in the nation at Murray State College.”

Gumm said firearm manufacturing is a multi-billion dollar industry with high-paying jobs. Tort reform protecting manufacturers coupled with the program at Murray State College would give Oklahoma a greater edge in attracting those jobs.

“I’m excited about the possibility we have to attract an important manufacturing facility to our state. The jobs and revenue such a facility would create would ultimately benefit all of Oklahoma.”

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Gumm, Senate Honor Choctaw Nation

The Choctaw Nation was honored by the Oklahoma State Senate today for its outstanding support of the National Guard and Reserve as well as veterans.

Senator Jay Paul Gumm, D-Durant, was author of Senate Resolution 48, praising the tribe which was the recipient of the 2008 Pro Patria Award—the highest honor bestowed for support of military men and women.

The Choctaw Nation was also awarded the 2008 Secretary of Defense Employer Support Freedom Award.

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Jay Paul Gumm: Writing The State Budget

The most important job of the Legislature each year – writing the state budget – is largely undone. This, to me, is very strange as we face a significant budget shortfall.

By Senator Jay Paul Gumm

Cuts will be unavoidable; the challenge is to ensure the cuts do not unduly impact state services on which Oklahomans depend. I certainly hope during the final four weeks of session, more attention must be given to what should have been “job number one.”

Dozens of bills were considered by the Senate each day this past week. There simply are too many to mention, but I do want to share with you one measure that could mean big benefits for Oklahoma families.

Last year I passed a bill that created the Oklahoma umbilical cord blood bank. That would allow new parents to bank the umbilical cord blood from the birth of a child.

Umbilical cord blood, which is currently discarded as medical waste after the birth of a healthy baby, is rich in adult stem cells which can be used to treat a variety of diseases. More than 70 maladies that can be treated through therapies developed with adult stem cells.

It is beyond the financial means of most Oklahoma families to privately bank umbilical cord blood. A fully-funded public cord blood bank would allow every family who chooses to do so to bank cord blood, ensuring a wider genetic diversity of available adult stem cells.

Because of the budget shortfall, we have been struggling to find a funding mechanism for the cord blood bank. This week, a possible solution appeared as we considered a proposed constitutional amendment that would allow Oklahoma voters to direct up to 10 percent of the Tobacco Trust Fund to pay for adult stem cell research.

I proposed an amendment that would allow the money to be used to fund the start-up of the cord blood bank as well. Given the fact the proposed amendment would allow Tobacco Trust money to be spent on adult stem cell research, it just makes sense to allow the money to be spent on the most efficient means of gathering adult stem cells.

The amended bill was approved and sent to a conference committee where a final version will be worked out. It is my hope the funding for the cord blood bank survives the conference committee; it would be a great first step in helping families fight more than 70 disorders today, and countless more in the years ahead.

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New Law Honors Those Killed In Combat

Governor Henry has signed into law a bill that requires the governor to order flags on state property flown at half-staff on the day of the memorial service for Oklahomans killed in combat.

Senator Jay Paul Gumm is the principal author of the new law.

All state agencies, interested organizations, groups and individuals are authorized and requested to fly the flag at half-staff. The director of the Department of Central Services is charged with implementing the new law.

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Gumm: 'Worse Bill I Have Ever Seen'

Every session of the Legislature, we see bills that may sound like good ideas on the surface. The deeper you study, however, the worse these bills become.

By Senator Jay Paul Gumm

This week, the Senate Appropriations Committee – on a straight party-line vote with Republicans voting “yes” and Democrats voting “no” – gave its approval to what may be the worst bill I have ever seen in all my years at the Capitol.

The bill is a proposed amendment to the Oklahoma Constitution that, on the surface, sounds fairly reasonable.

The proposal says that the Legislature shall not be required to use a “predetermined formula of any kind” when writing budgets. On its face, that is not a bad idea. We learn in government class that the top job of the legislative branch of government is writing budgets.

Where this idea goes horribly wrong is in the first words of this proposed amendment to our Constitution. The proposal begins with the words, “Notwithstanding any other provisions of the Oklahoma Constitution to the contrary…”

That would set this one amendment up to be superior to the every other section of the Oklahoma Constitution. Oklahoma’s balanced budget amendment is a “predetermined formula”; the restrictions voters have put on us to raise taxes is a “predetermined formula.”

In a single stroke, this unprecedented power grab would wipe out our balanced budget amendment and restrictions on the Legislature’s ability to raise taxes. It might even prohibit this section from ever be amended or repealed by voters in the future.

In all of state history, we have never seen legislative leaders attempt to consolidate so much power into its own hands. It is shocking, it is frightening, and it is a slap in the face to every voter in this state.

Everyone knows the target of this proposal. An education organization has gathered enough signatures to put a constitutional amendment on the ballot to put more money into public schools. That would put in our constitution a “predetermined formula” that this legislative power grab would trump.

Clearly, legislative leaders behind this power grab think voters might support the education funding proposal. Instead of trusting the people to make the right decision, legislative leaders decided to use sleight-of-hand in a pitiful attempt to overrule what may or may not be the people’s will.

It is not too late to stop this power grab in the Legislature. Even if it passes there, thankfully, Oklahomans would have the final say on it. Only the people have the power to amend the Constitution. However, the fact this bill has already passed the House and made it through a Senate committee should concern every Oklahoman.

That is why we must dig deeper into every bill. Only by learning their true intentions can we stop measures to empower legislative leaders at the expense of Oklahomans.

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Gumm: The Fight For Autism Insurance

Regular readers of my column know I am fighting to help children with autism. The effort has taken the form of “Nick’s Law,” which would require health insurance in Oklahoma to cover autism spectrum disorders. Last year, we enjoyed bipartisan support in the Senate on this issue.

By Senator Jay Paul Gumm, D-Durant

Not everyone supported it, and I understand that, but senators from both parties joined hands to pass “Nick’s Law” in the Senate numerous times. In the House of Representatives, it quickly became partisan, with the majority Republicans denying the bill even a hearing.

This year, House Republicans shot down “Nick’s Law” very quickly – in hopes of washing their hands of a sticky political issue early in the session. Now, it appears Senate Republicans have decided to be as partisan as their House brethren as two separate votes – right down party lines – suggest they fear even discussing the issue.

The first vote was on a bill about the Oklahoma High Risk Insurance Pool. The pool is the “insurer of last resort,” a creation of the Legislature to provide coverage for those Oklahomans who cannot get health insurance elsewhere. It seems a perfect way to provide autism coverage.

I proposed requiring the pool to cover autism consistent with “Nick’s Law.”

The one change I made was to lower the annual cap to $36,000, the same as the Republican-sponsored Louisiana law that requires health insurers in that state to cover autism.

Instead of allowing the amendment to be considered, the author of the bill moved to “advance” the bill beyond the ability to amend. The motion to advance was approved on a staight party-line vote with Republicans voting “yes” and Democrats voting “no.”

The second vote – again, down party lines – was on a bill to create a Health Insurance Mandate Review Task Force. This task force would be horribly tilted in favor of big insurance and against consumers.

Republican legislative leaders would have eight of 10 appointments to the task force. The governor would have two appointments; the state Insurance Commissioner would be the 11th member.

I proposed an amendment to give the governor two more appointments and require they come from the consumer side of the equation. Legislative leaders and big insurance still would have enjoyed a two-to-one advantage on the task force under my amendment.

That wasn’t good enough; the author of that bill moved to advance the measure beyond amendment, which was approved on a partisan vote. Given the composition of the task force, the results it would propose are a foregone conclusion.

There will be other chances to vote on variations of “Nick’s Law” as I refuse to give up on Oklahoma’s children with autism. The question is: Will Republican members – many of whom have voted for “Nick’s Law” in the past – have the courage to vote their conscience or will they cower under pressure from their leadership?

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Gumm Promises New Grocery Tax Push

Senator Jay Paul Gumm, D-Durant, says he'll continue his fight to eliminate the sales tax on groceries in the 2009 session of the Legislature.

That word comes as others offer proposals that also would impact the sales tax, thus ensuring it is likely to be hot topic next year.

Gumm's proposal to eliminate the tax was introduced for the 2008 session, but died at the hands of those opposed to it.

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Advocacy Group Honors Jay Paul Gumm

TARC, a Tulsa-based organization advocating for the rights of citizens with developmental disabilities, has chosen Senator Jay Paul Gumm as its “Elected Official of the Year.”

Gumm received the award during TARC’s annual awards dinner at Tulsa’s Southwood Baptist Church.

The Durant lawmaker was honored for his efforts to require insurance companies to cover diagnosis and treatment of autism spectrum disorders. The measure, known as “Nick’s Law,” has been reintroduced for the 2009 legislative session as Senate Bill 1.

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Electronic Transmittal Bill Signed By Henry

A bill requiring the hundreds of reports submitted by state agencies to legislators be transmitted electronically has been signed by Governor Henry.

Senate Bill 1507 could potentially save taxpayers thousands of dollars in printing and postage costs every year. The measure was sponsored by Senator Jay Paul Gumm, D-Durant, and Rep. Joe Dorman, D-Rush Springs.

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Gumm Notes Editorial Nods For 'Nick's Law'

Two more newspapers have published editorials in support of “Nick’s Law,” a measure by Senator Jay Paul Gumm that would require health insurance policies cover diagnosis and treatment for autistic children.

The Edmond Sun and The Enid News & Eagle both published editorials supportive of the proposal. The plan passed the Oklahoma Senate on four separate occasions but stalled in the House.

“Republicans, Democrats and independent voters across the state overwhelmingly support “Nick’s Law’,” said Gumm, D-Durant. “Supportive editorials in newspapers serving ‘rock-ribbed Republican’ communities further illustrate how amazingly out of step those are who will not even allow a vote on the bill.”

The Enid newspaper acknowledged the effort by families with autistic children, relating the families “have not been deterred in trying to make lawmakers see the light.” Further, the newspaper wrote it believes “this situation deserves more consideration and that families of autistic children need consideration by insurance companies.”

In the Edmond paper, which serves the hometown of 10-year-old Nicholas Rohde, the Nick of “Nick’s Law,” editorial writers noted, “Bearing the cost of autism alone is hurting these Oklahoma families.”

In addition, the newspaper wrote about the Rubicon School in Edmond, which serves autistic children. The editorial described some of the financial threats to the school and services on which parents and children depend.

Finally, the Edmond paper wrote, “Clearly as the number of families battling autism rises, more aid will be needed. Ensuring insurance coverage for medical treatment of this epidemic is a clear first step in providing the help necessary for a brighter future for these children and their families.”

The papers join the Tulsa World, which weeks ago expressed its editorial support.

“We are seeing more support for ‘Nick’s Law’ across the political spectrum,” he said. “Speaker Benge has a chance to become a hero, and I pray he takes that opportunity rather than continuing down a shadowy path that is completely out of step with Oklahoma’s values.”

Acknowledging it would take a miracle to make “Nick’s Law” a reality before the Legislature adjourns Friday, Gumm said none of the families and their advocates would ever give up until the measure becomes law.

“It might take a miracle,” he said. “But anyone who has seen these parents and the love they have for their children know that miracles can happen. I have seen how much they care for their children; they are the most inspiring of parents."

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Umbilical Cord Blood Bank Bill Due Action

Legislation that would authorize a public cord blood bank to provide potentially life-saving treatments for Oklahomans is headed to the governor's desk today.

House Bill 3060, by Rep. Rebecca Hamilton (D-OklahomaCity) and Senator Jay Paul Gumm (D-Durant), allows the State Department of Health to establish a public umbilical cord blood bank "for the purpose of collecting and storing umbilical cord blood and placental tissue donated by maternity patients at hospitals licensed in this state."

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Gumm Challenges Benge On 'Nick's Law'

Senator Jay Paul Gumm, D-Durant, today sent House Speaker Chris Benge a letter asking Benge for a proposal to help families struggling to provide services to children with autism. Gumm said he asked for the proposal since his has been rejected by the House on four occasions.

Gumm is the primary author of “Nick’s Law,” the bill that would require health insurance policies to cover autism diagnosis and treatment.

Last week, Benge announced he would not allow the bill to be considered by the House.

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Electronic Reports Bill Passes Senate

A bill requiring hundreds of reports submitted by state agencies to legislators be transmitted electronically passed the Oklahoma Senate today.

Senator Jay Paul Gumm, D-Durant, said Senate Bill 1507, which passed 47-1, could potentially save taxpayers thousands of dollars in printing and postage costs every year. The bill now goes to Governor Brad Henry for his approval.

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Gumm Inducted Into Child Advocates Hall Of Fame

The Oklahoma Institute for Child Advocacy (OICA) has inducted Senator Jay Paul Gumm into its Child Advocates Hall of Fame.

Gumm, a Democrat from Durant, was enshrined during OICA’s 25th Anniversary “Friends of Children” Hall of Fame celebration, held April 22 at the Skirvin Hilton Hotel in Oklahoma City.

Anne Roberts, OICA executive director, said Gumm was honored for his ongoing legislative efforts to protect children. Specifically, Gumm was noted for his work to reduce childhood poverty in Oklahoma.

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Gumm Decries Legislature's 'Partisan Divide'

By Senator Jay Paul Gumm ~ With half the session gone, the seeming inability for a number of issues to cross the partisan divide is troubling.

[Senator Gumm, Durant Democrat, is pictured with his then-seven-week-old son, Jacob Taylor, in 2006.]

My bill requiring health insurance coverage for autism diagnosis and treatment and another called “Steffanie’s Law” – requiring insurance companies to continue covering patients participating in clinical trials – ran into partisan roadblocks in the House of Representatives.

In other states, both measures were enacted with bipartisan support. In the Oklahoma Senate – which is divided evenly between Democrats and Republicans – both bills enjoyed bipartisan support. Only when they arrive in the Republican-controlled House of Representatives do they fall victim to partisan politics.

Certainly, there are differences between the parties. Political campaigns are where those differences are and should be discussed. When campaign season is over, and it comes time to govern, the responsibility should shift away from winning elections and toward finding those areas of agreement on issues that affect us all.

Autism strikes Republicans and Democrats alike. Cancer strikes Democrats and Republicans alike. Partisanship should be checked at the door when we are discussing issues relating to health. Working to make Oklahoma a healthier state is in everyone’s best interest – Democrat, Republican and Independent.

On both the autism and clinical trial insurance bills, “no” is the only answer we have thus far received from the House committee chairman who is single handedly holding them up. He has never said to the media, “I am opposed to these bills, but here is another idea how to help these families.”
None of us who are fighting for these families is so inflexible that we would not look at another answer. “No,” however, is simply unacceptable – for whatever the reason. These bills both make sense; both will improve the quality of life for thousands of Oklahomans – and in some cases they might even save lives.

If we cannot help families facing the most difficult health issues of their lives, then I truly do not know why we are here. The phrase “family values” often gets tossed around in political discussions, but I do not know how anyone can talk about “family values” if they do not support issues that value families.

When it comes to standing up for the people of Oklahoma, I will always employ every legislative means at my disposal. While that tenacity has been criticized on the editorial pages of one of the major metropolitan newspapers, I see it as a fundamental part of being a lawmaker.

For me, the battle comes down to this: If we cannot enact policies to help families facing health challenges like autism or cancer, then we will have a difficult time enacting policies that help us all. This battle is about Oklahoma’s soul and Oklahoma’s families, and no partisan political interest should trump either.

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Gumm: Newcomers Tax Break 'Backwards'

A rural leader with a successful background in economic development says a tax break for newcomers is a “backwards way” to grow rural Oklahoma.

Senator Jay Paul Gumm, D-Durant, said proposed amendments to the bill intended to help bring the Seattle SuperSonics to Oklahoma City would create a “grossly unfair” tax scheme in which current residents of the state pay more income tax than newcomers.

The proposal, advocated by some rural legislators, is called the “Come Home to Oklahoma” bill, and would give a five-year income tax exemption to people who move into some rural areas from another state and buy or build a home there. Under the proposal, individuals who already live in Oklahoma would continue to pay their full income tax bills.

“I do not know how any leader can look his or her constituents in the eye and tell them they should pay more tax than someone who just arrived in Oklahoma,” Gumm said. “We ought to call this the ‘Oklahomans Pay More Taxes’ bill.

“It is unfair, potentially unconstitutional, and nothing short of a ‘deal-breaker’ for me.”

Gumm is the former executive director of the Durant Chamber of Commerce. According to records from the last five years, Durant has attracted a higher percentage of new jobs than any community in Oklahoma. The experience of his hometown, he said, shows the newcomers’ tax break does not make sense from an economic development standpoint.

“While we need an adequate workforce to attract business and industry, jobs rarely follow people; people follow jobs,” he said. “If we attract residents to these areas before there are jobs for them, then the problem this idea attempts to solve is made even worse.”

Gumm said a better way to encourage rural legislators to support the “Sonics” bill is to make a significant investment in rural Oklahoma’s infrastructure. One way to do that would be through the Rural Economic Action Program, which provides grant money to small communities for economic development and infrastructure improvements.

“It is woefully under funded at only $15 million annually,” he said. “Pumping an additional $20 or $30 million into REAP, spread across the state to deserving communities, stands a better chance of growing small town economies.

“It doesn’t matter how many people move to rural Oklahoma if the infrastructure is not adequate and there are no jobs. Build the infrastructure, create the jobs and the people will come.”

In a recent edition of Gumm’s regular column to his constituents, the lawmaker wrote the idea behind the “Come Home to Oklahoma Act” was noble, but that proposal is “as patently unfair” as any bill he has ever seen.

“Tax policy says who we are and who we value,” Gumm said. “This wrong-headed proposal says we value newcomers more than we do the people who have already invested in our state. I cannot and will not support any plan to puts lesser value and higher taxes on the people I represent.”

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Bill's Proponents Not Allowed To Speak

By Mick Hinton/Tulsa World ~ Parents crowded into a committee meeting Wednesday to express their support for "Nick's Law," which would force insurance companies to provide health coverage for autistic children. But no one was allowed to speak.

The parents blamed Rep. Ron Peterson, R-Broken Arrow, chairman of the House Economic Development and Financial Services Committee, for blocking the legislation from being heard.

Peterson has been an outspoken critic of the legislation because he said it would raise the insurance premiums of all policy holders at a time when rising medical costs are the No. 1 concern of Oklahomans.

Democratic members of the committee vocally protested when a Republican member made a motion that effectively cut off debate on adding an amendment to provide health coverage for autism to another bill.

"It was orchestrated and I'm ashamed and, more importantly, the Republicans should be embarrassed for running a disgusting meeting," said Rep. Mike Shelton, D-Oklahoma City.

Read the entire story at www.tulsaworld.com.

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'Nick's Law' On Autism Disorders Passes Senate

An amendment that would require health insurance policies to cover diagnosis, treatment and therapy for autism disorders passed the Oklahoma Senate on a bipartisan vote today.

The plan, called “Nick’s Law,” will give Oklahoma families a better opportunity to fight a disability affecting more children than ever. Both Senator Jay Paul Gumm, D-Durant, and Senator Mary Easley proposed amendments to a pair of bills that were subsequently approved and sent to the House of Representatives.

The lawmakers said empowering parents and holding powerful insurance companies accountable to their policyholders is the right thing to do. Gumm said the proposal is fiscally responsible to taxpayers and morally responsible to children in Oklahoma.

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Senate Passes Electronic Reports Bill

A bill that could potentially save the state thousands of dollars in printing and postage costs annually passed by a 44-1 vote today in the Oklahoma State Senate.

Authored by Senator Jay Paul Gumm, D-Durant, Senate Bill 1507 would require the hundreds of reports submitted by state agencies to legislative leaders be transmitted electronically. In addition, the measure would require agency budget requests and the governor’s annual budget to be transmitted electronically rather than through hard copies in the mail.

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'In God We Trust' Wins Senate Approval

Oklahomans are a step closer to being able to purchase a license plate displaying the national motto of “In God We Trust" with Senate approval of Senate Bill 1146. The bill, by Senator Jay Paul Gumm, D-Durant, passed on a rare unanimous 48-0 vote.

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