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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Nichols Raises $47,500 At Norman Event

Republican State Senator Jonathan Nichols' backers are jubilant after he reportedly raised $47,500 at a Tuesday night fundraiser, setting what they say is a new single-event record for a legislative candidate.

The event was held in the home of Norman businessman and investor Stanton Nelson with Steve Owens and Barry Switzer as headliners.

There were an estimated 120 attendees and Nichols raised $47,500 at the door: "This is a one-day state legislative record" said a source. "No one has ever raised that much money that quickly for a single legislative campaign."

Nichols' campaign warchest is said to now be in excess of $150,000.

Democrat Diane Manchester Drum, a trial lawyer, seeks her party's nomination to oppose Nichols. She is the daughter of the late prominent trial attorney Robert Manchester.

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