Pettigrew Draws Thompson Endosement In 2nd

Wayne Pettigrew

Second District congressional candidate Wayne Pettigrew drew the endorsement of the 2010 Republican nominee Dr. Charles Thompson today.

“I believe that Wayne Pettigrew has the business and financial experience that we need right now in the United States Congress,”  said Thompson. “If we don’t get a handle on the out of control spending and huge federal deficits, we stand to lose our Republic and Wayne has the best grasp of the reforms that are needed to balance our budget and reign in spending. He will stand up to the liberal big spenders in Congress and help get the country back on track,” Thompson said.

Thompson received 43% of the vote in the general election against Democrat Dan Boren in 2010 despite being outspent by $55,000 to $1.2 million. Many had considered that Thompson would face Boren in a possible re-match in 2012 but Boren announced on June 8th that he would not seek re-election. Thompson himself also decided not to run but instead will focus on his veterinary medical practice that he is expanding to the Grand Lake/Langley area. Thompson is retired from the U.S. Army Reserves and lives in Hulbert near Tahlequah.

“Wayne is the only candidate in the race that has proven conservative legislative experience and a proven business record of actually creating jobs right here in Oklahoma. He has the ability to have an immediate impact in Washington”, Thompson added.

Pettigrew now lives in McAlester; he served in  the Legislature representing Edmond.

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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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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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Benge Clams Up, Refuses To Answer Questions

House Speaker Chris Benge has refused to answer questions posed by The McCarville Report Online about Governor Henry's plan to install highway traffic cameras to catch vehicle owners without the required insurance.

Benge's spokeswoman, Jennifer Monies, responded to TMRO's repeated questions today with, "I am sorry, but the Speaker does not have a comment on either question."

TMRO asked Benge if he'd had any contact about the plan with former Congressman J. C. Watts, or anyone on his behalf.

Purpose of the questions, in part, was to confirm or deny information provided TMRO that Watts spoke with his "contacts" in Benge's office on June 10, 2009, and that InsureNet official Wayne Pettigrew spoke with Jim Reese, Benge's policy director, in May of 2009 as the company worked to gain approval of its plan in 2010.

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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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Privacy Concerns Kill Nevada License Plate Plan

From The Las Vegas Review-Journal ~ A proposal to raise $30 million by using cameras to catch insurance and vehicle registration scofflaws on Nevada roads appears to be dead in the Assembly.

Speaker Barbara Buckley, D-Las Vegas, asked the body on Wednesday for a show of hands from people interested in pursuing the idea, proposed by Gov. Jim Gibbons to help reduce the state's $887 million budget shortfall.

Only Assemblyman Lynn Stewart, R-Henderson, raised his hand.

"Let's cross that off the list," Buckley said as the special session of the Legislature continued for a second day.

The proposal also had been criticized by Senate Majority Leader Steven Horsford, D-Las Vegas.

Robin Reedy, Gibbons' chief of staff, had said that a Chicago company, InsureNet, guaranteed Nevada $30 million if it implemented its system of photographing license plates and determining whether vehicles are insured and properly registered.

Twenty-two percent of Nevada motorists drive without insurance, she said.

The state collects a $250 fine from owners of uninsured vehicles and a $500 fine from each vehicle owner who does not have a valid registration, if it can catch them.

Critics raised the privacy issue, although a spokesman for InsureNet said any information collected by the company would go into a national law enforcement computer network, and the company itself would not retain the information.

InsureNet is not yet operating its insurance verification system in any state. The company now verifies whether people have medical insurance.

Edmond insurance agent and former Rep. Wayne Pettigrew was a registered lobbyist for the InsureNet Nevada effort; he is a national officer in the firm.

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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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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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Even DPS Was Confused By Those Barcodes

The Oklahoma Department of Public Safety apparently has been among those confused by the intent of those barcodes on the new license plates.

The codes have been the source of considerable speculation in recent days as The McCarville Report Online has shed light on Governor Henry's plan to install 220 highway "spy" cameras to gather information on possible insurance scofflaws, those who do not carry the required vehicle insurance.

All of those involved now say the barcodes are simply administrative devices used by the Oklahoma Tax Commission for "inventory control."

But on October 16, 2009, DPS issued a "Request For Information" by possible vendors to administer the state's new license plate scanning system and the RFI included this section on system requirements:
• capture vehicle license plate data from stationary locations along selected highways using:
• cameras
• barcode scanners. Oklahoma's new license plates include a barcode. All license plates will be replaced with the new license plate by December 31, 2009. It should be noted that some license plate mounts or surrounds obscure, partially or in whole, the barcode.
• other technology proposed by the responder.

Hat Tip to Kaye Beach at www.axiomamuse.wordpress.com.

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Blogger Tracks Use Of Highway 'Spy' Cameras

Oklahoma blogger Kaye Beach (http://www.axiomamuse.wordpress.com/) has been reporting on the use of highway "spy" cameras for months. Following The McCarville Report Online's series of articles that began last Friday on the proposed Oklahoma camera system, she posted this interesting information:

InsureNet, Inc. (InsureNet) and Intelligent Imaging Systems (IIS) have formed a partnership 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.

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Fox 25 News Examines Highway Cam Controversy

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Pettigrew: Barcode Much Ado About Nothing

Former State Rep. Wayne Pettigrew, an official with the Chicago firm that apparently would administer a new highway "spy" camera system in Oklahoma as proposed by Governor Henry, told The McCarville Report Online today that the controversy, in essence, is much ado about nothing.

Said Pettigrew in an email: "I was forwarded your recent report on the state projecting $50 million in the recently passed budget in anticipation of revenues to be received from the possible procurement of a statewide vehicle insurance verification program.

"I have been involved in promoting this program nationally for the past year with one of the possible vendors such a program.

"The company that I have been working with (InsureNet) does not use the bar-code and was not in any way instrumental in it being in the legislation passed in Oklahoma. In fact the legislation authorizing the state to contract for such a program was passed in 2006. This was 3 years before I became affiliated with InsureNet and also before they began marketing their current insurance verification model. It is my understanding that the bar-code is used by tag agency officials for inventory purposes. To my knowledge we have not lobbied for the passage of additional legislation in Oklahoma and only had a cursory interest in Rep. Ken Miller’s bill last year since we were at that time marketing our system. He asked for the company’s views on the bill at that time and our lobbyist submitted some language that was not used in the bill.

"The automated license plate scanners (ALPR) used in the verification system by Insurenet is identical to the hardware currently in use on Oklahoma Turnpikes. The system we are proposing does not photograph the driver of the vehicle and does not retain any data on non-cited vehicles longer than 60 seconds. They scan the numbers or letters on the plate and check insurer data that is available thru NLETS to see if the vehicle has current vehicle liability insurance. This system does not have the ability to track non-cited vehicles.

"The Department of Public Safety in Oklahoma has been interested in some type of a vehicle insurance verification system for years. InsureNet responded to a request for information that was put out by the department last October as did several companies. We also have responded to the request for proposal that the department issued in March. This process has done under the normal procurement procedures and has respondents from several companies that provide these services and equipment. To my knowledge, a vendor has not been selected."

Pettigrew did not speak to the involvement of Henry fundraiser and donor Barry Switzer on behalf of InsureNet here and in other states.

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Is It Public Safety...Or Political Payback?

[REVISED] Governor Henry's advocacy of a new, statewide system of highway "spy" cameras to catch vehicle insurance scofflaws is touted as a means to public safety, a step forward in the use of new technology to make certain insurance laws are being obeyed.

But is the proposed new system all about public safety, or is it political payback to the man many believe is responsible for Henry's surprise election victory in 2002?

The questions arise because The McCarville Report Online has identified former OU and Dallas Cowboys football coach Barry Switzer as a key player in the nationwide movement to land lucrative highway camera administration contacts for the Chicago-based firm InsureNet. The firm is considered a "sole source provider," meaning that governmental entities using the system must hire it to administer it if they want to scan all license plates (including those from other states).

Switzer, research shows, has surfaced in at least two states on behalf of InsureNet, which is the only firm in the nation (it claims on its website) with the ability to institute the new highway "spy" camera system that would scan all plates.

Henry proposed the scanning plan to raise, he claims, $50 million in additional revenue for the state. But what doesn't show in the budget is that InsureNet, for example, would be paid 30 percent of everything collected; in short, the firm's "windfall" would be in the millions of dollars in the first year of operation alone.

Read More: www.axiomamuse.wordpress.com

Switzer's name had not publicly surfaced in connection with the plan before TMRO began researching the use of the cameras. And Switzer denies he's discussed the plan with Henry; he told Fox 25 News reporter Michael Henrich he's had no contact with the governor on the issue.

The name of Edmond insurance agent Wayne Pettigrew, a former Republican House leader, had not emerged, either. Yet Pettigrew and Switzer, records in Kansas show, both represent InsureNet in its efforts to launch the highway camera systems here and across the nation. Pettigrew also has been the firm's registered lobbyist in Nevada.

The name of Norman insurance agent Tinker Owens, who played tight end for Switzer at OU, had not emerged, either, but he, too, surfaced in the Kansas effort.

Following the thread of disjointed information about InsureNet's efforts to bring the controversial cameras to Oklahoma highways also shines light on the involvement of others, including Republican Rep. Ken Miller of Edmond, the chairman of the powerful House Appropriations and Budget Committee and a candidate for state treasurer. Miller authored House Bill 3326 in the 2008 session which authorized creation of the new license plates, which apparently became the first step in instituting the system and was a member of the committee that designed the plates. Miller, however, says the system would have worked with the state's previous license plates.

And, as with Henry, there's a political connection between Switzer and Miller.

Oklahoma Ethics Commission reports show Switzer donated $2,500 to Miller's 2010 reelection campaign.

But Miller today told The McCarville Report Online there is no connection between the two, that he never advocated the highway camera system and that the barcode on the new plates has nothing to do with InsureNet's system; he said its system reads the actual license letters and numbers.

Miller said the barcode is not necessary for InsureNet's purposes. This is how InsureNet describes its system on its website: "The InsureNet technology assigns a 'UC', (Unique Code), to each combination of policy and VIN, (Vehicle Identification Number), which becomes the 'bridge' between insurers and government entities and records." (The phrase "unique code" indicates "barcode" to most of those in the industry.)

Miller said any inference that he has been involved in a scheme to implement the system is in error.

Miller said he was aware that Switzer and Pettigrew were involved because they came to several hearings at which he was present.

Switzer was a key factor in Henry's election in 2002; some credit the popular former coach with being instrumental in Henry's victory. Switzer endorsed Henry and raised a huge sum of money for him as part of his campaign finance operation. Switzer made hundreds of telephone calls seeking donations. He also placed and arranged payment for a last-minute series of radio commercials that included a Henry campaign jingle. That jingle became the hallmark of Henry's campaign and gets credit by some for pushing Henry to victory over Republican Steve Largent.

In Henry's reelection campaign in 2006, Switzer repeated his 2002 donation generosity to Henry; he donated the maximum, $5,000.

Henry's communications director, Paul Sund, said no political payback in involved and any suggestion it is is "absolutely untrue." He noted the vendor will be chosen by competitive bid. It appears at least four firms, including InsureNet, submitted bids.

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New License Plate Part Of 'Spy Cam' Plan?

[UPDATED] Governor Henry's plan to install more than 220 highway "spy" cameras to record vehicle license plates has been flying below the radar in state government for years and despite a few sporadic news stories, the full extent of the system, and those involved in implementing it, has not become apparent until now.

Read all of The McCarville Report Online's revealing stories by clicking on InsureNet Oklahoma in "Labels" below.

It appears planning for the system has been underway for at least four years.

Henry's budget proposal listed the system as the generator of $50 million in new revenue for the state. But in all the discussions, there's been no public mention that can be found of the tiny barcodes on the new plates.

The new license plates were designed to allow the use of highway "spy cameras" to read them and identify the vehicle as insured or uninsured, state records show.

The plates, first issued last year, contain the small barcode across the bottom on the right that is inconspicuous and not noticed by most owners. The sample plates issued by the state and distributed to the media did not contain a barcode sample; that space was empty. Defenders of the system say today that the barcode is not part of the highway camera plan.

The new plate movement sparked interest more than a year ago when Republican Rep. Ken Miller discussed his House Bill 2013, and what he said was the need for a new plate design, on the House floor. During the discussion, he was questioned by Reps. Charles Key and Mike Reynolds.

At one point in the discussion, Miller was asked if there had been discussion between involved parties and InsureNet and if the new or altered language is the result of that communication. Miller said (paraphrasing) that, “Yes,” there had been communication and while InsureNet submitted suggestions, none of their language was used.

Reynolds asked what would be InsureNet’s interest in changes. Miller says because they (InsureNet) would like to be the carrier (for a new highway camera license-reading system).

Miller said he has never advocated the highway camera plan, that his desire to see a new license plate for the state is not related to the plan in any way, and that the barcode is not a part of the technology.

InsureNet technology assigns a "UC", (Unique Code), to each combination of policy and VIN, (Vehicle Identification Number), which becomes the 'bridge' between insurers and government entities and records. In other words, the code allows instant access to information about the vehicle and its owner.

The use of codes on license plates has raised privacy concerns; in Nevada, gun owners protested a similar plan because they said it would allow others to trace them by using their license plate information. InsureNet assures that privacy is protected, but skeptics remain.

Said Reynolds of the highway cameras last year: “That’s a horrible idea. It’s Big Brother at its finest.”

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Gov. Jim Gibbons recently announced that he is reconsidering a plan -- already rejected by the 2009 Legislature -- to install a surveillance net of cameras throughout Nevada's roadways to catch "insurance scofflaws." The plan's efficacy is questionable at best. All we know for sure is that it would be a big step forward to making Nevada a surveillance state.

Nevada Views:

Fostering Big Brother

A Surveillance State Is Not A Budget Solution

By Maggie McLetchie

Special To The Las Vegas Review-Journal

Under this particular surveillance network, every license plate would be scanned, captured and analyzed by a private company. There is an astonishing lack of control over how private businesses use or disseminate all the data they collect about us. But what we do know is that in every case where massive amounts of data are stored by private companies -- Internet providers, Web site operators, phone companies, cell phone GPS systems, for example -- the government has later attempted to obtain that information without oversight, accountability or, most importantly, a warrant.

The government could, for example, seek the camera records of every car attending a particular political rally; could track the daily traffic patterns of individuals; could even request that InsureNet provide them with real-time location of a particular car -- without any court oversight or warrant.

And no one should understand the privacy risks like residents of Las Vegas. In 2004, the FBI requested and received hundreds of thousands of customer records from private car rental, air and hotel companies -- and all of this data, which many tourists probably hoped would stay in Vegas, remains somewhere in an FBI centralized data bank to be mined, compared and analyzed by the government. Las Vegas is already a surveillance city; why turn Nevada into a surveillance state?

The continuingly increasing presence of cameras in Nevada symbolizes the potential for a dark future, where our every move, our every location and our every communication, is recorded, compiled and stored away, ready to be examined and used against us by the authorities whenever they want.

The supposed justification for the plan? Money.

Our civil liberties should not be for sale, no matter how grim the budget crisis is.

Additionally, the theoretical collection of these insurance fines is just that -- a theory. The company has never built a system in the United States. Even insurance industry organizations question whether it could work. And it would require already burdened court resources to collect fines.

If it does work, it's InsureNet that stands to profit -- without competitive bidding for the state contract. If there are fines to be collected, the DMV should be collecting them without giving a cut to InsureNet -- and they should be collected in a way that does not subject every driver on Nevada's freeways to surveillance. The DMV just spent our tax money to upgrade its own insurance verification system, greatly reducing any justification for the InsureNet proposal to actually prevent unlicensed motorists from driving on our roads.

Moreover, the premise that we should fund our long-term budget gaps with the income of consistent lawbreaking is bizarre. Nevadans should resist the temptation to fill shortfalls with the profits of crime, because it means as a public policy we want people violating the law. If they don't, our budget problems come back -- but we've still got the surveillance technology in place. This type of short-sighted budgeting is not only fiscally unreliable and arbitrary -- it gives the government unnecessarily broad surveillance powers and also the perverse incentives to see every citizen as a walking dollar sign. We want law enforcement to be enforcing good public policy -- not a fine or fee at any cost.

The Legislature rightly rejected this unsound legislation in 2009. Let's hope that support for the principles of privacy, good sense and good government once again leads to this idea's demise at the special session.

Maggie McLetchie is interim southern program director for the American Civil Liberties Union of Nevada.

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Pettigrew, Switzer, Tinker Owens Made InsureNet Pitch To Kansas House Transportation Committee

From The Minutes Of the Kansas House Transportation Committee Meeting 3/10/10: There being no other bill introductions the Chairman recognized the “InsurNet (sic) the Paperless Verification of Uninsured Motorists” presenters. (Attachment #1) The first presenter was Wayne Pettigrew, National Marketing Director of InSureNet. Mr. Pettigrew introduced the other consortium members with them who included Scott Bolkema, Board Member and Human Resources Department of InsureNet, Barry Switzer, Sooner Communications Group and Tinker Owens, Sooner Communications Group and Bonnie Sharp, KS
Legislative lobbyist. According to Mr. Pettigrew a couple of changes have allowed InsureNet to become available. One being a decision in 2007 that has allowed interstate and intrastate citations to be collectible in all states. He said today there are no “escapes” and the days of ignoring a citation are over. Vehicle reregistration and drivers license renewal depend on paying and clearing any fines - including those regarding insurance - from any jurisdiction. Mr. Pettigrew then introduced Dr. Jonathan Miller, President and Chairman of the Board of InsureNet. Testimony was that this system can now meet the exact needs of many divisions of government. In each state, the Departments of Motor Vehicles, Public Safety/Law Enforcement and others can be fully and professionally supported. He said this system is owned and controlled by State Government. This system is connected to over 35,000 U.S. Law Enforcement Agencies and 1.2 million officers. Dr. Miller said this product is an accurate and automatic, non-invasive bridge between insurers and governmental entities, consisting of seven data elements. He said the system is accurate, instantaneous, easy to implement and exceeds all privacy protection laws for vehicle owners and insurers. After the presentation they stood for questions. When all questions were answered the Chairman thanked the group for their presentation.

[Pettigrew and Owens are members of the board of directors of First Trinity Financial. Owens, former OU and New Orleans Saints wide receiver, is the owner of Tinker Owens Insurance in Norman.]

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