While the Legislature was able to reach a bi-partisan compromise on redrawing legislative lines (due in large part to Republicans not wanting to see the task fall to the Secretary of State and nobody wanting the task to fall to the courts), most observers felt the Congressional map would, in the end, go to the courts. 

However, Wednesday night the Redistricting committee announced a deal on the Congressional map, which passed both chambers Thursday, paving the way for adjournment. The compromise plan gives each side a little of what they wanted. 

Democrats managed to get Corvallis into Rep. DeFazio's district while avoiding Albany, kept Tillamook County into Rep. Schrader's district, and kept the Grants Pass area completely in Rep. Walden's district. Republican's were able to reduce the Multnomah County influence on both Rep. Wu and Rep. Schrader's districts. For example, District 1 (currently Rep. Wu) adds Suavie Island, Skyline Boulevard and the Northwest Industrial area, while District 5 (Rep. Schrader) picks up additional Clackamas County areas such as Milwaukie, Sunnyside and parts of Happy Valley. 

The redistricting efforts by the Legislature have ended in failure since 1981. This is one example of how the 76th Oregon Legislative Assembly came to a compromised in order to get the work done.

Last week, we sent out an urgent email to you asking you to contact your Senators in support of HB 3525 (punitive damage money for court facilities). When we sent out the request, the bill had just squeaked by on the House floor by a vote of 31 to 28.   As we contacted Senators shortly after we asked for your help, several let us know they had just heard from their commissioners. 

Your help paid off. HB 3525 was carried by Senator Dave Nelson (R-Pendleton) and passed on the Senate floor by a vote of 28 to one. We thought you'd like to know.  Thanks for the help!

HB 2653, which would have given Justice Courts the same ability as Circuit Courts to access the full range of Department of Revenue collection services, died in the full Ways and Means Committee Wednesday afternoon when the Senate side of the committee rejected it.   

Private collection agencies opposed the measure on the theory that the bill would shift private sector work to the public sector. In reality, the Department of Revenue would have added only one (non-general funded) FTE if the estimated six Justice Courts interested in the program had taken advantage of the option and even those courts would likely have continued using private collection agencies for some of their collections. 

While Circuit Courts, which have full DOR collection services, average collecting roughly 80 percent of outstanding debt, many Justice Courts are well below that average and AOC believes this would be a useful tool in collecting more of the millions of dollars currently being left on the table. 

Our thanks to Representative Nancy Nathanson (D-Eugene) for her work in championing this bill, as it was a recommendation of the Government Efficiency Task Force and also to Lane County lobbyist Alex Cuyler for his work. We'll continue to work on refining this concept for a future session.

After weeks of sometimes-contentious negotiations among leadership, HB's 2710 (court fees) and 2712 (court fines), along with HB 5056 (appropriation bill) emerged from the Capitol Construction Subcommittee of Ways and Means (aka the "Super-sub"), sailed through the full committee and passed both Chambers. 

HB 2710 creates uniform filing fees by eliminating "add on" fees and appropriates funds for programs that had previously been funded by the "add ons". It requires counties to provide law libraries or law library services, and declares the intent of the Legislature to fund those services and conciliation and mediation services through appropriations. HB 5056 appropriates $7.4 million to pay for law libraries through the Judicial Department.It also appropriates another $7.4 million for conciliation and mediation services to be paid through the Judicial Department.

In the less-is-more (maybe) department, HB 2712 changes fines for many offenses, including traffic offenses. It increases judicial discretion to reduce fines from the 25 percent of the fine level under current law to the 50 percent of the fine level under the bill.Legislative staff predicted the increase in the ability to reduce fines would result in less revenues. But members of the committee ultimately agreed with law enforcement and judicial veterans who said it would actually increase revenues - because it would result in more traffic citations being issued.

One aspect of the bill that may adversely affect justice and municipal court revenues is an increase in the amount that would be paid to the state and a shift of some of that state funding stream to a higher priority than it has been in the past. Justice court judges fear that may diminish the local piece of the revenue pie.  

HB 3100 (the "front door" bill), passed through the House and Senate this week. This bill requires examination by a "certified" psychiatrist or psychologist in Guilty Except for Insanity proceedings. It also states that a person convicted of misdemeanor charges will serve their time in the community, unless the court finds that the person presents a substantial danger to others. Further, a person convicted of a Class C felony may serve their sentence in the community at the discretion of the court. 

The health care transformation bill, HB 3650A was finally approved by the Senate on Thursday after being approved by the House on Tuesday and being sent back to Ways and Means on Wednesday. 

Health system transformation will change how Oregonians on the Oregon Health Plan receive care and will undoubtedly impact how counties run their mental health programs. Keep an eye on the progress that the Oregon Health Board makes in filling in the details of this ambitious program by staying in touch with AOC's Human Services Steering Committee. Or better yet, join the Human Services Steering Committee and participate in the discussions and decisions. 

SB 5508 (one of the Xmas tree bills - more on that later) allocated $3 million in general funds and $825,616 in federal funds for implementing SB 909. The Legislative Fiscal Office explained that the money will go towards creating three new positions; a Chief Investment Officer and Early Learning Systems Director (both Principal Executive/ Manager G) and one half-time Executive Support Specialist 2. An estimated $354,067 in general funds will be spent on personal services and services and supplies. 

LFO went on to say that the other funds would go towards professional services contracts for change management, development of a school-readiness assessment tool, and development of a comprehensive early childhood education and care budget.  The federal funds, from the federal State Early Childhood Advisory Council grant received during the 2009-11 biennium, will support the Early Learning System director, the half-time executive support position, associated services and supplies and professional services costs for the work of the Early Learning Council.  

SB 5508 (that Xmas tree thing) contained a note for an additional $350,000 for the CVSOs restoring a 16 percent cut in earlier budget legislation. Hopefully this will prevent any further staffing cuts.

Despite the session-long effort by the Legislative Coastal Caucus, led by Representative Jean Cowan (D-Newport), to improve the marine reserves program through HB 2009, the bill died for lack of floor action at the 12th hour. Intended to ensure safeguards for economic and social conditions on the coast, and to retain robust public involvement during program implementation, the bill joined others in a log-jam, as time ran out.

New Markets Tax Credit (SB 817). Both the Senate and House approved the creation of a new state tax credit to increase the availability of capital for businesses in low income areas. The state tax credit will leverage the federal New Markets Tax credit. 

Investors wishing to take advantage of the federal tax credit must complete an arduous application process to be authorized to use the 39 percent federal tax credit spread over a period of seven years. The new state program, called the "Oregon Low Income Community Jobs Initiative," includes a 39 percent state tax credit over seven years. However, there is no credit for the first two years. 

Proponents made a significant change to SB 817 to address criticism about using the tax credit for real estate. As a result, the state tax credit will be limited  only to access to capital for small businesses in low income areas and specifically excludes real estate transactions.  

Christmas Tree Bills

In the waning hours of the legislative session, the Legislature authorized $200.4 million in lottery bonds for the following programs and projects in HB 5036: 

• $10 million for recapitalization of the Special Public Works Fund (down from $40 million recommended in the Governor's Budget)
• $40 million for Connect Oregon IV multi-modal transportation projects (same as recommended by the Governor although down from prior biennia allocation of $100 million)
• $1.2 million for Water Resources Umatilla Basin water grants
• $5 million for affordable housing
• $3.2 million for Willow Creek/SAGE Center Improvements
• $6.4 million for Eastern Oregon Trade Center
• $2.9 million for Milton-Freewater levee and bridge improvements
• $4.2 million for Lane Transit District EmX Extension
• $2.5 million for the Oregon Historical Society
• $2.0 million for the Gilchrist State Forest
• $10.5 million for the Roseburg Veterans' Home
• $112.5 million for various University Projects 

In HB 5035, the Legislature allocated direct lottery resources for several key county related programs:

• Transfer of $37.1 million to counties for economic development programs, an increase of $8.3 million over 2009-11 of $28.8 million 
• County fairs will receive $3.6 million or $0.8 million more than the 2009-11 biennium
• The Economic Revitalization Team will be funded at $1.9 million or $0.9 million higher than the 2009-11 biennium.
• $2 million for senior and disabled transportation grants

In SB 5508 there were more add backs from the General Fund, including:

• SB 5508 added back $487,000 to the Water Resources Department to restore two of four eliminated positions and to fund groundwater studies.
• $500,000 for dispute resolution programs (Oregon University System)
• $150,000 for the Labor Education Research Center at the University of Oregon
• $180,000 for Oregon Solutions
• $176,000 for drug court payments (Oregon Criminal Justice Commission)
• $25 million for the Emergency Fund
• $400,000 for the development of an energy plan and the Governor's energy advisor
• $300,000 for Multnomah County gang intervention
• $350,000 for County veterans' service organizations
• $3,400,000 National Career Readiness Certificate and on-the-job-training programs
• $300,000 for economic gardening
• $1 million for regional governance solutions to improve economic development, developing a West Coast strategy to create jobs while reducing carbon emissions and the costs of doing business by retrofitting, and redesigning infrastructure and facilities.

This Week's Contributors 

And that's the week that was. Historic? The books will be written. Eventful? Yes and no. Interesting? For the most part. Bottom line, the Legislature is going home. Many heartfelt thanks to the contributors of this newsletter who made it possible to bring you the latest from your State Capitol. 

We would like to recognize today's contributors: Mike McArthur, Gil Riddell, Ann Hanus, Mike Eliason, Mark Nystrom, Paul Snider, Art Schlack, Emily Ackland, Doris Penwell, Jon Oshel, Cara Fischer, Laura Cleland and Walter Pidgeon.  

There will be another Oregon Trails tomorrow!!!