[UPDATE: Link to 4/25/13 House video now noted below. SB 804 audio begins at minute marker 02:06:36 in the Afternoon.]
OK-SAFE, Inc. – What can you buy with $14,500? A small car, a boat, or perhaps a garden makeover from Reader’s Digest.
In Oklahoma, $14,500 can buy you a piece of legislation.
After looking into SB 804 by Marlatt/Jackson, Creating the Affordable Housing Act, allowing tax credits for builders for certain low-income housing, it is evident that there are serious concerns with the legitimacy of this bill.
Some of the concerns include the fact that one particular builder of low-income housing projects, namely Jeffrey E. Smith, a real estate developer out of Columbia, MO, made $14,500 in campaign contributions in 2012 to 9 legislators and the (Republican) Majority Fund. (See List below). The legislators who received Smith contributions included Speaker T.W. Shannon and Senate Pro-Tem Brian Bingman, as well as Sen. Bryce Marlatt and Rep. Mike Jackson. The latter two authored SB 804.
Jeffrey E. Smith is president of Affordable Equity Partners and JES Holdings headquartered in Missouri. According to the OK Ethics Commission 2013 lobbyist report, Affordable Equity Partners hired James Milner as their lobbyist in Oklahoma.
The fiscal analysis report on this bills indicates there is $9.2 million in tax credits for this. According to the bill’s language, these tax credits would be transferable, meaning there is no telling who may actually end up benefiting financially from this re-direct of our tax dollars. SB 804 seems to be the means to assure the direction of those tax credits.
Several advisory board members of JES Holdings and Affordable Equity Partners have ties to the International Insurance Society, Price Waterhouse Coopers, and KPMG – all large corporations. Is that where the tax credits are heading?
SB 804 reeks of being “favor-factory” legislation and is not really a “conservative” idea, as its advocate claims. [Unless conservative means protecting the status quo of the economic elite at the expense of the citizen taxpayer?]
The advocate for SB 804 refers to Jack Kemp and Ronald Reagan as evidence of “conservatism”. That tactic is a blatant Appeal to Authority, a method used by those who do not have a solid argument of their own. There is no credible evidence that low-income housing has done anything more than make builder/developers wealthy and the residents more likely to be dependent on state- subsidized rental rates.
The advocate for this bill is not demonstrating compassion for people – his compassion is for his own bank account.
SB 804 is corporate welfare, plain and simple.
Thursday, April 25, 2013 Vote in the House:
SB804 Tax credits; creating Oklahoma Affordable Housing Act; providing tax credits for builders of certain low-income housing. Effective date.
4/25/2013 H Motion to reconsider adopted: Ayes: 52 Nays: 20
4/25/2013 H Third Reading, Measure failed: Ayes: 39 Nays: 40
4/25/2013 H Notice served to reconsider vote by Representative Jackson
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“H” denotes House action.
House Video of Floor Debate
SB 804 was debated in the late afternoon on Thursday 4/25/13 and defeated by a vote of 39 Aye/40 Nay, thanks in large part to all the calls and emails from the grassroots in OK.
Video of this debate will be is posted here. Debate on SB 804 begins at minute marker 02:06:36 in the afternoon session.
2012 Campaign Contributions, from the OK Ethics Commission reports:
Transaction Date Contributor Name Contributor Address Committee Info Transaction Amount
- 9/5/12 SMITH, JEFFERY E PO BOX 342 BRANAN FOR SENATE – 2010 $1,000.00
SELF COLUMBIA, MO 65205
REAL ESTATE DEVELOPER
- 10/17/12 SMITH, JEFFERY P.O. Box 342 Brian Bingman For Senate 2014 $2,500.00
SELF EMPLOYED Columbia, MO 77777
REAL ESTATE DEVELOPER
- 11/2/12 SMITH, JEFFREY E P O Box 342 Friends Of Bryce Marlatt 2012 $2,000.00
SELF Columbia, MO 65205
REAL ESTATE DEVELOPER
- 9/6/12 SMITH, JEFFREY PO BOX 342 Friends Of Mike Sanders 2012 $500.00
SELF COLUMBIA, MO 65202
REAL ESTATE DEVELOPER
- 9/20/12 SMITH, JEFFREY PO Box 342 Clark Jolley For Oklahoma Senate 2012 $1,000.00
JES HOLDINGS Columbia, MO 65205
REAL ESTATE DEVELOPER
- 10/24/12 SMITH, JEFFREY P.O. Box 342 Friends Of Rob Johnson 2014 $1,000.00
SELF Columbia, MO 65205
REAL ESTATE DEVELOPER
- 9/13/12 SMITH, JEFFREY E P O Box 342 Mike Jackson For House Seat 40 2012 $1,000.00
AFFORDABLE EQUITY PARTNERS Columbia, MO 65205
REALESTATE DEVELOPER
- 9/13/12 SMITH, JEFFREY E. P.O. Box 342 Colby Schwartz For State House 2012 $1,000.00
SELF Columbia, MO 65205
REAL ESTATE DEVELOPER
- 9/10/12 SMITH, JEFFREY E P O Box 342 Friends Of TW Shannon 2012 $2,000.00
SELF-EMPLOYED Columbia, MO 65205
REAL ESTATE DEVELOPER
- 10/22/12 SMITH, JEFFREY PO Box 342 Majority Fund $2,500.00
JES HOLDINGS Columbia, MO 65205
BUSINESSMAN
- Total 2012 Campaign Contributions: $14,500.00