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Oklahoma State Question 800, Oil and Gas Development Tax Revenue Investment Fund Amendment (2018)

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Oklahoma State Question 800: Oil and Gas Development Tax Revenue Investment Fund Amendment
Flag of Oklahoma.png
Election date
November 6, 2018
Topic
State and local government budgets, spending and finance
Status
Defeatedd Defeated
Type
Constitutional amendment		Origin
State legislature

The Oklahoma Oil and Gas Development Tax Revenue Investment Fund Amendment, State Question 800, was on the ballot in Oklahoma as a legislatively referred constitutional amendment on November 6, 2018.[1] It was defeated.

A "yes" vote supported amending the state constitution to establish a fund for the investment of 5 percent of the state's oil and gas development tax revenue and for the annual transfer of 4 percent of the fund's capital to the general fund.
A "no" vote opposed this constitutional amendment to establish a fund for the investment of 5 percent of the state's oil and gas development tax revenue.

Election results

Oklahoma State Question 800

Result Votes Percentage
Yes 488,612 42.78%

Defeated No

653,630 57.22%
Results are officially certified.
Source

Overview

What would the amendment have done?

This measure would have set aside 5 percent of revenue from the state’s oil and gas production tax revenue each year into a fund—called the Oklahoma Vision Fund—to be invested by the Oklahoma State Treasurer, including investments in private companies and stocks and subject to what is known as the prudent investor rule. Between July 1 and September 30 each year, 4 percent of the average of the money in the fund over the previous five years—calculated annually on June 30—would have been transferred to the state’s general revenue fund. The amendment was also designed to prohibit any more than 5 percent of the money in the Oklahoma Vision Fund from being spent to pay bond debt or to pay back other financing mechanisms under the amendment.[2]

Implementing legislation

The legislature passed House Bill 1401 (HB 1401) in order to provide a statutory framework to implement State Question 800. It was approved in the House by a vote of 55 to 0 with 45 excused and in the Senate by a vote of 41 to 0, with six excused. On May 11, 2018, Oklahoma Governor Mary Fallin vetoed HB 1401.[3]Cite error: Invalid <ref> tag; name cannot be a simple integer. Use a descriptive titleIn Oklahoma, two-thirds of members in both chambers must vote to override a veto, which is 68 of the 101 members in the Oklahoma House of Representatives and 32 of the 48 members in the Oklahoma State Senate. As of 2018, Oklahoma was one of 36 states that requires a two-thirds vote from both of its legislative chambers to override a veto.

Text of measure

Ballot title

The ballot title of the amendment is below.[4]

“

This measure would create a new fund called "The Oklahoma Vision Fund" in the Oklahoma Constitution. Money could be appropriated to the Fund. Beginning July 1, 2020, five percent (5%) of gross production taxes on both oil and gas would be deposited into the Fund. After that fiscal year, the percentage would increase by two-tenths percentage points each year. Other monies could be deposited into the Fund if provided by law. The State Treasurer would deposit four percent (4%) of the principal amount of the Fund into the State General Revenue Fund each year. The Fund would be subject to an investment standard known as the prudent investor rule. The Fund could be invested in stocks and similar securities. Not more than five percent (5%) of the monies in the Fund could be used for payment of debt obligations issued by the State of Oklahoma, state government entities or local government entities.


SHALL THE PROPOSAL BE APPROVED?

FOR THE PROPOSAL – YES

AGAINST THE PROPOSAL – NO[5]

”

Constitutional changes

See also: Article X, Oklahoma Constitution

The measure would have added section 44 to Article X of the state constitution. The following text would have been added:[2]

Note: Hover over the text and scroll to see the full text.

Section 44. A. There is hereby created in the State Treasury a trust fund to be designated the "Oklahoma Vision Fund" to support the operation of state government and to provide tax relief.

B. The Oklahoma Vision Fund principal shall consist of:

1. Any amounts appropriated by the Legislature;
2. Any other deposits and apportionments from other sources as may be provided by law;
3. For the fiscal year beginning July 1, 2020, and for each fiscal year thereafter, five percent (5%) of total actual revenue from the gross production tax on oil and gas which percentage shall increase in increments of two-tenths percentage points each year thereafter; and
4. Investment and income returns from the fund principal.

C. Four percent (4%) of the average annual amount of the principal of the Oklahoma Vision Fund for the immediately preceding five (5) complete fiscal years, shall be apportioned to the General Revenue Fund not later than September 30 each year. The State Treasurer shall determine the balance of the Oklahoma Vision Fund as of June 30 each year and for the preceding five (5) years in order to apportion the required amount to the General Revenue Fund each fiscal year as required by this subsection. The deposit required by this subsection shall not begin before July 1, 2020.

D. The balance of the Oklahoma Vision Fund shall be invested by the State Treasurer in a manner consistent with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims and by diversifying the investments of the Oklahoma Vision Fund so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.

E. The Oklahoma Vision Fund shall not be subject to the restriction of Section 15 of Article X of the Oklahoma Constitution with regard to investment of public funds and the monies in the Oklahoma Vision Fund may be invested in equity of lawful for-profit business enterprises, whether denominated as shares, stock, membership interests or similar equity securities.

F. Not more than five percent (5%) of the monies in the Oklahoma Vision Fund may be used for debt service payments due on bonds or other financing instruments issued by the State of Oklahoma, counties, municipalities, authorities, commissions, political subdivisions or any other governmental entities within the State of Oklahoma, subject to such restrictions as may be provided by law. [5]

Readability score

See also: Ballot measure readability scores, 2018
Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure.


The FKGL for the ballot title is grade level 10, and the FRE is 55. The word count for the ballot title is 148, and the estimated reading time is 39 seconds.

In 2018, for the 167 statewide measures on the ballot, the average ballot title or question was written at a level appropriate for those with between 19 and 20 years of U.S. formal education (graduate school-level of education), according to the FKGL formula. Read Ballotpedia's entire 2018 ballot language readability report here.

Support

Sponsors

The following elected officials sponsored this amendment in the legislature:

Opposition

Opponents

  • Oklahoma State School Boards Association[6]

Arguments

The Oklahoma State School Boards Association Executive Director Shawn Hime said, "Simply put, this state question is vague, filled with unknowns and could erode millions of dollars in dedicated funding for public schools. There’s nothing visionary about the planned erosion of dedicated funding for public education. It’s bad policy, and a step backward. The state’s largest ever teacher pay raise that passed last session was a great first step, but the work of properly investing in public education isn’t finished. Our per-student investment in education is still last in our region. Our students deserve better. I appreciate the intent behind the question and the desire to stabilize the state budget, but this isn’t the answer.”[6]

Media editorials

See also: 2018 ballot measure media endorsements

Support

  • The Oklahoman said: "The idea behind the fund is valid, and the state clearly cannot continue down the path it has traveled in recent years when it comes to budgets and spending. SQ 800 represents a slight improvement, which is better than none. Oklahomans should vote “yes” on SQ 800."[7]
  • The Enid News & Eagle said: "While there is no way to control deposits in years where revenue is down, the measure is a forward-thinking approach to deal with Oklahoma’s boom-and-bust economy. It’s not a panacea, but SQ 800 makes sense from a long-term funding standpoint if the state can stand the short-term sacrifice."[8]

Opposition

  • Tulsa World said: "We oppose State Question 800. The constitutional amendment would create a state stabilization fund to invest 5 percent of state gross production tax revenue. Four percent of the earnings and principle would be returned annually to the general fund. The idea is sound — a more stable, predictable source of revenue that is less reliant on a diminishing resource and, somewhere around the 15th year, producing more money — but the ballot language is arcane and needed follow-up legislation was vetoed by Gov. Mary Fallin. A stabalization fund may be a good idea, but this stabalization fund is ill-timed and requires voters to simply trust the Legislature to work out its shortcomings later."[9]
  • The Muskogee Phoenix said: "Once in the Constitution, a vote of the people will be required to fix any unintended consequences. This issue should be addressed legislatively, not by amending the constitution."[10]

Campaign finance

See also: Campaign finance requirements for Oklahoma ballot measures

One committee, Yes on SQ 800, was registered to support State Question 800. The support committee had reported $150,100 in contributions, all from the State Chamber of Oklahoma. The committee reported expenditures totaling 175,000. Ballotpedia had not identified any committees registered in opposition to State Question 800.[11] If you are aware of a committee registered to support or oppose this measure, please email editor@ballotpedia.org.

Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures
Support $150,100.00 $0.00 $150,100.00 $175,000.00 $175,000.00
Oppose $0.00 $0.00 $0.00 $0.00 $0.00
Total $150,100.00 $0.00 $150,100.00 $175,000.00 $175,000.00

Support

The following table includes contribution and expenditure totals for the committees in support of the measure.[11]

Committees in support of State Question 800
Committee Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures
Yes on SQ 800 $150,100.00 $0.00 $150,100.00 $175,000.00 $175,000.00
Total $150,100.00 $0.00 $150,100.00 $175,000.00 $175,000.00

Background

Projected revenues

The total projected revenue from oil and gas development taxes was $639 million for fiscal year 2018 and $722 million for fiscal year 2019. Under the amendment, 5% of the revenue would have been put into the Vision Fund. For FY2018, that amount would have been $31.95 million. For FY2019, the amount would have been $36.1 million. For FY2019, total state tax revenue was projected to be $6.09 billion.[12][13]

The projected revenue from oil and gas development taxes for FY2019 ($722 million) was 11.9% of the state's total projected revenue for FY2019.

House Bill 1401

The legislature passed House Bill 1401 (HB 1401) in order to provide a statutory framework to implement State Question 800. It was approved in the House by a vote of 55 to 0 with 45 excused and in the Senate by a vote of 41 to 0, with 6 excused.Cite error: Invalid <ref> tag; name cannot be a simple integer. Use a descriptive title On May 11, 2018, Oklahoma Governor Mary Fallin vetoed HB 1401. Fallin stated:[3]

“

While I believe that HB 1401 is well intentioned, it raises some significant concerns. Under HB 1401, 5% of all receipts from gross production taxes on oil and gas is to be placed in a "Vision Fund" that will be invested by the State Treasurer. The amount deposited is to increase by 0.2% each subsequent year but sets no cap on the percentage of total actual revenue that is to be diverted away from current apportionments and general revenue into the fund. Presumably, by not having a cap in place, future legislatures would see an ever increasing amount of monies being diverted into this fund and away from other funds, like the Energy Stabilization Fund, which currently receive monies from gross production taxes. Lastly, up to 5% of the monies in the fund may be used for debt service payments by local counties, municipalities, authorities, commissions, political subdivisions, or any other governmental entities within the State of Oklahoma. The state should not be paying for obligations that are not its own. ... Due to potential problems that would inevitably arise from the bill as written, I have chosen to veto HB 1401.[5]

”

Rep. John M. Montgomery (R-62) said, "Gov. Fallin’s veto is both surprising and confusing in a lot of respects. With constitutional changes like we would have if State Question 800 passes, we would need to make statutory changes as well. The objective of these changes is to mitigate the ebb and flow of our oil and gas industry and the impact it has on our revenue.”[3]

Sen. Nathan Dahm (R-33) proposed a call for a special session so legislators could re-author and pass any bills that the governor vetoed or vote to override them. In Oklahoma, a special session can be called if two-thirds of senators and representatives sign a petition. Dahm said, "The call that I am proposing would be for any legislation that the Governor has vetoed over the last 8 years. All things that she campaigned on, said she would be supportive of, but then her actions prove otherwise. And these would all be things that the majority of the legislature has supported in the past, that the majority of the people of Oklahoma seems like they would support, so this would give us an opportunity to correct some of those errors."[14] Rep. George Faught (R-14) supports the call for a special session. Faught said, "Gov. Fallin has failed Oklahoma citizens by vetoing legislation that is important to the Muskogee area and the state as a whole. This veto-override special session would give us a chance to correct those problems, advance Oklahoma in a positive direction, and protect citizens from government overreach.”[15]

Two-thirds of members in both chambers must vote to override a veto, which is 68 of the 101 members in the Oklahoma House of Representatives and 32 of the 48 members in the Oklahoma State Senate. Oklahoma is one of 36 states that requires a two-thirds vote from both of its legislative chambers to override a veto.

Oklahoma Constitutional Reserve Fund (Rainy Day Fund)

Rainy day funds (also referred to as budget stabilization funds) are used by states to set aside surplus revenues for future use and as backup funding in times of revenue shortfall or budget deficit.[16] Oklahoma's rainy day fund was created in 1985, "in response to the dramatic revenue that accompanied that decade’s oil bust," according to the Oklahoma Policy Institute.[17] Any revenue beyond the estimated general revenue fund's collections must be deposited into the rainy day fund. The Constitution allows the money in the rainy day fund to be spent in four ways:[17]

  • Up to three-eighths of the amount in the fund can be used to make up for a shortfall in the current year's collections;
  • Up to three-eights of the amount in the fund can be put towards the next year's budget if revenue projections are expected to be less than the current year's collections;
  • Up to one-fourth of the amount in the fund can be used for an emergency; and
  • Up to $10 million can be used for tax incentives to help at-risk manufacturing companies that may be forced to close or move elsewhere. This provision was adopted by voters through State Question 725 of 2006.

Referred amendments on the ballot

From 1996 through 2016, the Oklahoma State Legislature referred 63 constitutional amendments to the ballot. Voters approved 52 and rejected 11 of the referred amendments. All but one of the amendments were referred to the ballot for elections during even-numbered election years. The average number of amendments appearing on even-year ballots was between five and six. The approval rate of referred amendments at the ballot box was 82.5 percent during the 20-year period from 1996 through 2016. The rejection rate was 17.5 percent.

The table below shows referred amendments in even-numbered years only (excluding the one amendment that was on the ballot in odd-numbered years that is included in the paragraph above):

Legislatively-referred constitutional amendments, 1996-2016, even-numbered years
Total number Approved Percent approved Defeated Percent defeated Annual average Annual median Annual minimum Annual maximum
62 51 82.26% 11 17.74% 5.64 6.00 3 9

Reports and analyses

Note: The inclusion of a report, white page, or study concerning a ballot measure in this article does not indicate that Ballotpedia agrees with the conclusions of that study or that Ballotpedia necessarily considers the study to have a sound methodology, accurate conclusions, or a neutral basis. To read a full explanation of Ballotpedia's policy on the inclusion of reports and analyses, please click here.

Resources for the Future: US State and Local Oil and Gas Revenues

Resources for the Future is a nonprofit research institution which describes its mission as to "improve environmental, energy, and natural resource decisions through impartial economic research and policy engagement."[18]

A November 2016 report was released by Resources for the Future which studied the top 16 oil and gas producing states during fiscal year 2013: Alaska, Arkansas, California, Colorado, Kansas, Louisiana, Montana, North Dakota, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia, and Wyoming. The report found that the states used revenue from oil and gas development taxes to fund current state expenditures and current education expenditures as well as education trust funds and state trust funds for future uses.


The full study can be read here.

Path to the ballot

See also: Amending the Oklahoma Constitution

To put a legislatively referred constitutional amendment before voters, a simple majority is required in both the Oklahoma State Senate and the Oklahoma House of Representatives.

This amendment was sponsored by State Senator John Sparks (Oklahoma) (D-16) and State Representative Charles McCall (R-22) as Senate Joint Resolution 35. It was first read on February 6, 2017, and was approved by the state Senate in a vote of 42 to 0 with six excused on March 14, 2018. The House passed an amended version of SJR 35 in a vote of 94 to 3. The Senate rejected the House's amendments and called for a conference.[1]

The conference committee provided a version that was approved by the Senate and the House on May 2 and May 3 respectively. Final approval was unanimous in both chambers.[1]

Vote in the Oklahoma State Senate
May 2, 2018
Requirement: Simple majority vote of all members in each chamber
Number of yes votes required: 25  Approveda
YesNoNot voting
Total4304
Total percent91.49%0%8.51%
Democrat701
Republican3603
Vote in the Oklahoma House of Representatives
May 3, 2018
Requirement: Simple majority vote of all members in each chamber
Number of yes votes required: 51  Approveda
YesNoNot voting
Total81019
Total percent81.00%0.00%19.00%
Democrat2305
Republican58014

How to cast a vote

See also: Voting in Oklahoma

Poll times

In Oklahoma, all polls are open from 7 a.m. to 7 p.m. Central Time. Anyone in line when the polls close must be allowed to vote.[19]

Registration requirements

Check your voter registration status here.

To vote in Oklahoma, one must be at least 18 years old, a United States citizen, and a resident of Oklahoma.[20]

The deadline for registration is 25 days prior to the election. Voters can register using the following methods:

“
  • Fill out a Voter Registration Application using the OK Voter Portal "wizard." (You must print, sign, and mail or hand deliver the application to your County Election Board to complete the process.)
  • Download a Voter Registration Application from the State Election Board website. Applications are also available at your County Election Board, most tag agencies, libraries, and post offices.
  • Applications must be mailed or hand delivered to your County Election Board to complete the process.
  • Register at your County Election Board office.
  • Register at your local tag agency when you apply for, update, or renew your Driver License or State ID. Submitted applications will be mailed to the State Election Board by the agent at no cost.
  • Register with select public assistance agencies when you apply for, update, or renew services. Submitted applications will be mailed to the State Election Board by the agent at no cost.[5]
 ”
—Oklahoma State Election Board[20]

Once an applicant has been successfully registered, the county election board will mail him or her a voter identification card.[20]

Automatic registration

See also: Automatic voter registration

Oklahoma does not practice automatic voter registration.[21]

Online registration

See also: Online voter registration

Oklahoma has implemented an online voter registration system. Residents can register to vote by visiting this website.

Same-day registration

See also: Same-day voter registration

Oklahoma does not allow same-day voter registration.[22]

Residency requirements

To register to vote in Oklahoma, you must be a resident of the state.[20] State law does not specify a length of time for which you must have been a resident to be eligible.

Verification of citizenship

See also: Laws permitting noncitizens to vote in the United States

Oklahoma does not require proof of citizenship for voter registration. An individual must attest that they are a U.S. citizen when registering to vote. According to the state's voter registration application, a voter who submits false information commits a "felony punishable by not more than five years in prison, by a fine of not more than $50,000, or both."[23]

All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment.[24] Eight states — Alabama, Arizona, Kansas, Louisiana, New Hampshire, South Dakota, Utah, and Wyoming — have laws requiring individuals provide proof of citizenship at the time of voter registration, whether in effect or not. Three states, Florida, Georgia and Mississippi, require a person provide proof of citizenship if their citizenship status cannot be verified by other means.[25] One state, Ohio, requires proof of citizenship only when registering to vote at a Bureau of Motor Vehicles facility. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters.

Verifying your registration

The Oklahoma State Election Board allows residents to check their voter registration status online by visiting the OK Voter Portal.

Voter ID requirements

Oklahoma requires voters to present identification while voting.[26] Generally, voters are required to present a photo ID, but there is an exception to this requirement.

Valid forms of identification include government-issued photo IDs and county election board voter identification cards (which do not include photographs).

“ A document used for proof of identity for voting must have been issued by the United States government, the State of Oklahoma, or a federally recognized tribal government.

The law requires a document used for proof of identity for voting to contain the following information:

  • The name of the person to whom it was issued
  • A photograph of the person to whom it was issued
  • An expiration date that is after the date of the election, unless the identification is valid indefinitely[5]
 ”

To view Oklahoma law pertaining to voter identification, click here.

See also

External links

Footnotes

  1. ↑ 1.0 1.1 1.2 Oklahoma State Legislature, "Bill Information for SJR 35," accessed April 11, 2018
  2. ↑ 2.0 2.1 Oklahoma State Legislature, "SJR 35 Full text," accessed May 3, 2018
  3. ↑ 3.0 3.1 3.2 Non Doc, "Gov. Mary Fallin veto kills ‘Constitutional carry’," accessed May 17, 2018
  4. ↑ https://www.ok.gov/elections/Election_Info/State_Question_info.html Oklahoma Elections, "State Question Info," accessed September 26, 2018]
  5. ↑ 5.0 5.1 5.2 5.3 5.4 5.5 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content
  6. ↑ 6.0 6.1 Stillwater News Press, "LETTERS: Suggesting a no vote on SQ800," accessed October 13, 2018
  7. ↑ News OK, "Oklahomans should vote “yes” on SQ 800," accessed October 25, 2018
  8. ↑ Enid News & Eagle, "Suggestions on 3 statewide ballot measures," accessed November 4, 2018
  9. ↑ Tulsa World, "Tulsa World editorial: Five state question seek to redesign everything from state finance to the nature of eye care," accessed October 13, 2018
  10. ↑ Muskogee Phoenix, "Don’t support SQ 800," accessed November 4, 2018
  11. ↑ 11.0 11.1 Oklahoma Ethics Commission Electronic Reporting System , "Committee Search," accessed May 6, 2018
  12. ↑ Oklahoma Office of Management and Enterprise Services, "Proposed FY-2019 Revenue Certification," accessed May 17, 2018
  13. ↑ Region Track, "Oklahoma Oil and Gas Industry Taxation," accessed May 17, 2018
  14. ↑ News on 6, "Oklahoma Senator Calls For Overturn Of Governor's Vetoes," accessed May 17, 2018
  15. ↑ Muskogee Phoenix, "Faught backs veto-override special session," accessed May 17, 2018
  16. ↑ Urban.org, "Budget Stabilization Funds," accessed July 25, 2018
  17. ↑ 17.0 17.1 Oklahoma Policy Institute, "Rainy Day Fund," accessed July 25, 2018
  18. ↑ Resources for the Future, "About," accessed July 25, 2018
  19. ↑ Oklahoma State Courts Network, "Okla. Stat. tit. 26, § 7–104," accessed October 31, 2025
  20. ↑ 20.0 20.1 20.2 20.3 Oklahoma State Election Board, "Voter Registration in Oklahoma," accessed October 31, 2025
  21. ↑ NCSL, "Automatic Voter Registration," accessed October 31, 2025
  22. ↑ NCSL, "Same-Day Voter Registration," accessed October 31, 2025
  23. ↑ Oklahoma State Election Board, "Oklahoma Voter Registration Application," accessed October 31, 2025
  24. ↑ Under federal law, the national mail voter registration application (a version of which is in use in all states with voter registration systems) requires applicants to indicate that they are U.S. citizens in order to complete an application to vote in state or federal elections, but does not require voters to provide documentary proof of citizenship. According to the U.S. Department of Justice, the application "may require only the minimum amount of information necessary to prevent duplicate voter registrations and permit State officials both to determine the eligibility of the applicant to vote and to administer the voting process."
  25. ↑ Florida's law takes effect on January 1, 2027
  26. ↑ Oklahoma State Election Board, "Facts about Proof of Identity for Voting in Oklahoma," accessed October 31, 2025
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