Important AOC Bill Moves Forward 

NEWS FLASH!!!! 

Senate Rules supports passage of legislation to implement AOC Farmland Activities Task Force recommended legislation.   

Thursday afternoon, May 26th, the Senate Rules Committee forwarded SB 960 with the dash-8 amendments to the Senate Floor with a due pass recommendation. The bill, which is optional for counties to employ, is seen as an tool for counties to permit agri-tourism and other activities which are incidental and supportive of commercial farm use.   

Sen. Chuck Thomsen (R-Hood River), sponsor of the bill, spoke in favor of the bill providing his perspective as former Hood River County commissioner. Yamhill County Commissioner Mary Stern, AOC 2nd Vice President and Chair of the Farmland Activities Task Force; Art Schlack, AOC Policy Manager; and Richard Whitman, Governor's Natural Resource Advisor testified in support of the bill. SB 960-8 was also supported by Shawn Cleave, of the Oregon Farm Bureau. 

HB 2855, the bill that reauthorizes the Government Efficiency Task Force (GETF), cleared the Oregon House of Representatives this week. The task force is a collaborative effort between state and local governments to make government effective and cost-efficient. Rep. Nancy Nathanson (D-Eugene), chaired the GETF and is the sponsor of HB 2855. She has been a champion of the concept and a driving force behind the success of the task force so far. 

The GETF approved nearly two dozen practical recommendations, including administrative actions. A number of bills were introduced this session based on task force recommendations. So far, three of those bills have passed the Legislature and several more are pending.

AOC continues to strongly support the GETF and is working with Rep. Nathanson to get HB 2855 through the Senate and on to the Governor's desk.   

The Transportation and Economic Development Ways and Means Subcommittee decided not to take action on the Oregon Liquor Control Commission's budget on Wednesday after hearing that the Commission balked at voting to continue the 50 cent surcharge on distilled spirits. 

According to Phillip Lang, Chair of the Commission, Beam Distillery gave a compelling presentation which highlighted that spirits have had a higher burden of surcharges/taxation than beer which has not had a tax increase since 1977. Commission members did not feel it was equitable to continue the surcharge without other alcoholic beverages - beer and wine - also having an increase. 

The Subcommittee was not pleased with this news and grilled Chair Lang and OLCC Director Steve Pharo about when they would meet again to vote on the surcharge. The surcharge expires at the end of the 2009-11 biennium and the Legislature was counting on $24 million for state resources. When the Legislature imposed the surcharge it exempted it from shared revenue distributions with the cities and counties. Without action by the Commission, the Legislature will have an unexpected $24 million hole to patch. Chair Lang responded to the Subcommittee that he is trying to hold a meeting within the next week to reconsider the 50 cent surcharge.

Public Health Notes

The Public Health Division budget was heard before the Joint Ways and Means Subcommittee on Human Services this week. Public Health received several "add backs" from the Governor's recommended budget: 

1. $1.2 million to Immunization Programs
2. $264,00 to WIC/Seniors Farmers Market program
3. $850,000 to Family Planning  

In addition, $1.5 million (Babies 1st, and Maternal and Child Health Block Grant) that was proposed to be moved to the Early Learning Council was restored to the Public Health Division.

There were also approved fee increases that would raise approximately $7 million in other funds. These fees will help pay for other programs and restore reductions including: 

1. $1,750,000 to restore partial reduction to the Emergency Medical Services
2. $3,000,000 to restore partial reduction to the Drinking Water Program
3. $500,000 to restore partial reduction to School-Based Health Centers
4. $1,150,000 to restore partial reduction to Family Planning

The budget and fee increases still need to be approved by the full Ways and Means Committee. If you have any questions, please contact AOC's Mark Nystrom.

Enterprise Zones 

HB 3017 extending the sunset on the Enterprise Zones to June 30, 2025 passed unanimously out of the Senate Finance committee without any amendments. It now goes to the Senate floor for final passage with Sen. Chris Telfer (R-Bend) carrying the bill. A special thanks to all who provided letters and testimony!

On Tuesday, the Joint Tax Credit Committee heard SB 317 which deals with extending the sunset for the complementary Enterprise Zone Electronic Commerce tax credit. AOC has worked closely with the Oregon Economic Development Association and the League of Oregon Cities on both of these bills. 

Steve Dahl of Grants Pass earned strong praise from committee members for demonstrating the "net profit" or return to the state in new revenue generated from electronic commerce investments. It was also helpful to have written testimony from central Oregon, Portland businesses and SEDCOR. We are in a very competitive environment to preserve these income tax credits and there is far from sufficient revenue dollars available to extend most of these income tax credits.

Marion County Treasurer Laurie Steele testified in favor of SB 954 which changes the CAFFA payment deadline to 10 working days from the current 10 calendar days. This revision will allow counties sufficient time to process and reconcile this payment at quarter-end and is consistent with the property tax distribution deadline. She cited the example of the upcoming July 4^th holiday which will result in only five working days to reconcile the payment. Following her testimony and with the support of the Department of Revenue and AOC, SB 954 was voted out of the House Revenue Committee with a "do pass" recommendation. 

After passing the Oregon Senate on Wednesday of this week, HB 3145, which would expand the current Bottle Bill, is on its way to the Governor's office for signature.

The bill makes three primary changes to Oregon's current Bottle Bill:

1. Expands the deposit container list to cover most beverage containers. No later than 2018, beverages between four ounces and 1.5 liters will require a deposit with the exception of wine, liquor, milk, and infant formula.
2. Increases the bottle deposit from five to 10 cents, if the redemption rate is below 80 percent for two consecutive calendar years, and no sooner than 2017.
3. Permits a one-time pilot project for a larger redemption center than is allowed under existing law that will serve up to a three mile radius.

HB House Bill 3145 was introduced by Representatives Vicki Berger (R-Salem) and Ben Cannon (D-Portland).

On Thursday, the Natural Resources Subcommittee of Ways and Means approved the budget bill for the Department of Fish and Wildlife, which included an addition of state general funds for federal Wildlife Services of $250,000. This action, along with the identical action on the Department of Agriculture budget, reverses a decade-long trend by the State of receding from its responsibility to deal adequately with damage by wildlife, in spite of it being within State jurisdiction. In the meantime, counties have back-filled the role of providing funds for these services, a role they cannot continue to play.

Community Mental Health

(submitted by Andy Smith, AOCMHP)

Wednesday the Ways and Means Human Services Subcommittee gave preliminary approval to the attached Addictions and Mental Health (AMH) Division of the Oregon Health Authority (OHA) budget. This budget will be voted on again as part of the full OHA budget (SB 5529) that the Subcommittee will hear early next week.

Summary

• A relatively small increase from Governor's Recommended Budget (GRB) for Total Funds ($958.6 million---up from $950.5 million).
• A pre-emptive allotment of 3.5 percent (totaling $23.4 million); this means AMH cannot spend these dollars and this amount will supplement the State's ending balance dollars; these dollars may or may not be released to spend in year two of the 2011-13 biennium; all agencies subject to this 3.5 percent allotment.
• Early Learning Council dollars ($21.3 million) now included in the AMH budget (in GRB, these dollars had been pulled out and put into a separate, global ELC budget).
• Restoration of $15 million for community mental health (dollars that were inadvertently reduced during 2011-13 mid-cycle allotment reductions.
• Restoration of $11.9 million for OSH (Oregon State Hospital) (to prevent closure of any OSH wards).
• Two budget notes directing AMH to explore possible increases in community beds (one for PSRB population and one for local jail population).
• Rep. Mitch Greenlick (D-Portland) asked that this re-look be extended to civil and geriatric mental health populations. 

Early Learning Council

The Early Learning Design Team met two times this past week. On Saturday, the Team met for six hours to discuss service delivery and early learning team organization. The team came up with 15 points they could agree upon. One team member was very surprised at how close the members were to one another in the discussion. Another participant agreed and stated that the Design Team seemed to be 75 percent there.

The second meeting involved discussing the design of the data system that the Early Learning Council will be using. It was agreed that before designing the data system it was important to know what questions needed to be answered and what data can be collected. 

The next meeting for the Early Learning Council will be held June 6^th. 

County Veterans Service Officers 

The CVSO budget for FY 2011-13 was approved at $3,033,314 by the Transportation and Economic Development Subcommittee of Ways and Means. This is nearly 16 percent lower than 2009-11 approved budget of $3,598,865. The consequences of these cuts is the loss of several CVSO positions around the state. It was put on the record that the subcommittee recommended the co-chairs add $350,000 to CVSOs while working on the reconciliation bill. If you have a relationship with any of the members of Ways and Means, AOC staff recommends that you contact them to support this component of the reconciliation bill.

Please contact Mark Nystrom with any questions. 

The U.S Environmental Protection Agency is seeking additional public feedback and gathering more information on the final standards for boilers and certain solid waste incinerators (Boiler MACT rules) that were issued in February 2011. Additionally, the regulations, which were signed by Administrator Lisa Jackson in February, will be delayed indefinitely as EPA takes further comments from key stakeholders, including the public, industry, and public health communities.

EPA will accept additional data and information on these standards until July 15, 2011.

More information: http://www.epa.gov/airquality/combustion.

SB 437 cleared the House Transportation and Economic Development Committee with a unanimous do-pass recommendation on Wednesday. It heads to the House floor for final passage. This bill extends to cities and counties the same privilege the State of Oregon and Ports have under statute to protect trade secrets and other sensitive financial data disclosed to local government officials in the context of economic development recruitment and expansion projects.

On Wednesday, the Senate Revenue Committee passed out HB 3188 without any further amendments. HB 3188 will require that counties establish a fund for video lottery money and report how the fund is used for economic development purposes. It no longer includes the requirement that a person be hired to oversee the fund.

SRS Update

Skamania County, Washington Commissioner Paul Pearce spent three days in Washington, D.C. this week, meeting with more than two dozen members of the House and their staffs, urging them to move forward with a reauthorization of federal forest payments. 

At this point in the effort, it is too early to tell what that legislation will look like, but it is beginning to be clear that any reauthorization legislation out of the House will involve some kind of language regarding the conditions of federal lands and how they need to be managed.  

Activities on the Senate side continue at the staff level.   

Three concurrent resolutions memorializing the commissioners we've lost this year were acted on this week.

SCR 14, memorializing Mike Propes, Polk County, passed the Senate. Senator Jackie Winters, Senator Larry George and Senator Brian Boquist gave moving statements on the floor. Mike's wife Pam, his mother Alice and other family members and friends were in a place of honor on the side aisle. This resolution now heads to the House.

HCR 40, memorializing Nikki Whitty, Coos County, passed out of House Rules on Wednesday and will now go to the floor of the House.

SCR 17, memorializing Andy Jackson, Coos County, passed out of Senate Rules on Thursday and now heads to the floor of the Senate.

If you wish to submit testimony for any of these memorials there is still time. Please contact Laura Cleland or Eric Schmidt for details.

Denny Jones Honored

Thursday was D.E. "Denny" Jones day at the Capitol.  The long time state representative from Harney County was honored by two former governors and the current governor, along with a host of legislators, lobbyists and citizens.  Mr. Jones turned 100 years young last September and was able to travel to Salem this week for the ceremonial lunch that featured cowboy poetry and camp fire songs along with the tributes. 

Ready to showcase Oregon to the nation? The National Association of Counties Annual Conference will be held in Multnomah County starting July 15th. Volunteers are needed to help guide the estimated 3000 county visitors around Portland and Oregon. Please consider using some of your spare time to help make their visit to our state and region a memorable one.  

Becoming a volunteer is easy. Just register. Volunteers will get training and a t-shirt among other things for their time. If you have questions, please contact Theresa Sullivan at Multnomah County. Her phone number is 503-988-3655. 

This Week's Contributors 

Without the excellent contributions of Art Schlack, Gil Riddell, Emily Ackland, Mark Nystrom, Ann Hanus, Andy Smith (AOCMHP) and Oscar the Grouch, this newsletter would have been sadly lacking. Every word a gem. Thank you for your tolerance and patience by plowing through the content. 

Have a Great Weekend!