News From Association of Oregon Counties

Salem - This is the time of the legislative session when the rubber meets the road. Much of the mundane legislation has or will be dealt with and dispatched. The controversial measures still lurk and now is when the leadership starts looking at the end game. In that respect, this session is surprisingly like sessions of the past when one party controlled both chambers.

Some of the fiscal picture will be more focused later this week. On Thursday, legislators will be given the quarterly revenue forecast and some of the estimates floating around indicate there will be more revenue in this report than in recent reports. If that is indeed the case, then budget writers will have some wiggle room and it could simplify some of the discussions surrounding the end game. On the other hand, if the revenue projections are anemic at best, down at worst, then the discussions take on a different tone.

As in session's past, a small group of legislators from both parties will be the ultimate "deciders" of what the final budget will look like. Much of the discussion about the budget and the end game will take place out of public view, but your AOC policy managers are keeping a close eye on the goings on and as always, offer their perspective in this edition of Oregon Trails.

On the federal front, there was a great story in Sunday's Oregonian by Jeff Mapes about the fiscal plight facing several Oregon counties. If you haven't read it, click here. Mr. Mapes' reporting is solid and the story is an excellent overview of the fiscal difficulties facing many Oregon counties.

NACo Drug Discount Program

NACo Discount Drug Program

Two Water Policy Bills Flow Toward Adoption

The House Agriculture & Natural Resources Committee moved two Senate water policy bills to the House floor with a 'do pass' recommendation on Tuesday. Both bills are supported by AOC. SB 199A extends the sunset on Oregon's split-season instream leasing program by ten years. Split-season leasing is a voluntary mechanism that allows water users to capitalize on the value their water has for fish late in the summer while maintaining the productivity of their water in the spring and early summer. It allows water right holders to use their water right for irrigation or other uses for part of the year and then be compensated to lease it instream late in the summer when it matters most to fish.

SB 200A was placed on the Consent Calendar of the House. The bill addresses the instance where a property is divided and sold over the years, and one or more water right holders are ready to "prove up" their portion of the water right while the rest are not. SB 200A permits permit holders to certificate their portion of the original water right permit as they become eligible.

Tax Expenditures Could Gain More Scrutiny

Over the years, the Legislature has advanced fiscal and economic goals not merely by appropriations, but also by tax expenditures, e.g., property tax exemptions and income tax credits. Under the rate-based property tax system instituted by Measure 50 (1997), new expenditures are a direct loss of revenues for local public services. Policy begun by Representatives Phil Barnhart (D-Eugene) and Vicki Berger (R-Salem), as leaders of the House Revenue Committee, to impose a six-year sunset cycle on tax expenditures and require a statement of public policy for each expenditure to determine whether the expenditure is fulfilling its purpose, would be encoded in statute by HB 2505A. The bill, which would also direct that the revenue impact of proposed tax expenditure extend for at least three biennia, was passed to the House floor last week.

SOS Stumps for HB 3521

Oregon Secretary of State Kate Brown visited the AOC Legislative Committee meeting Monday to urge support for HB 3521, a bill she says will offer more Oregonians a chance to register to vote. Under the bill, state agencies who are able to confirm age, citizenship, address and a valid signature (currently only the DMV), would automatically register those citizens as non-partisan voters. The Secretary of State's office would then mail a card to those voters offering them an opportunity to either opt-out or declare a party affiliation. Secretary Brown admitted that there would be an expense for counties, which presented a problem for several county commissioners listening to her pitch.

The Legislative Committee, after much discussion, voted not to support HB 3521, asking instead that the concept be further developed in the interim with counties as part of a work group.

Kate Brown at Leg Comm

Secretary of State Kate Brown addresses AOC Legislative Committee. Gina Zedjlik, Legislative Director for the Secretary of State, sits to Secretary Brown's left.

AOC officers Stern, Fisher and Thompson on her right.

Definition of Farm Use Expanded

With food banks in mind, the House Revenue Committee quietly and unanimously sent HB 2788 to the floor for passage. The bill would add donation of products or byproducts of farming to a school or food bank as a "farm use" for purposes of the farm use special assessment and its income approach. Vice Chair Vicki Berger commented that if the bill becomes law she hopes food banks will keep track of resulting donations to determine how well the law works.

Forest Classification Committees Process to be Clarified

Citizen committees in each county, or group of adjoining counties, regularly evaluate lands within Department of Forestry wildfire protection districts. The intent is to identify parcels that meet the legal definitions of forest and/or grazing land. These lands are then subject to assessments to help pay the cost of fire protection. The county governing body appoints three committee members; the State Forester, OSU Extension Service, and the State Fire Marshal each appoint one.

SB 31 clarifies that the county governing body must appoint at least one forest landowner "or representative thereof," and one grazing landowner "or representative thereof," thus expanding the pool of committee candidates. The bill also allows the State Forester to defend committee orders, along with the committee or alone. This takes pressure off committee members, the county, and local resources to defend a decision made locally and openly.

SB 31 has already passed the Senate and is on the Consent Calendar in the House.

Kafoury, Bozievich Efforts Move County Bill

After hearing comments in support by Multnomah County Commissioner Deborah Kafoury and Lane County Commissioner Jay Bozievich, the Senate Finance and Revenue Committee sent HB 2676 to the Senate floor for approval. HB 2676 eliminates the sunset on a successful program to cancel the property tax in Multnomah, Clackamas, Washington, and Lane Counties on all manufactured structures taxed as personal property with an assessed value of less than $12,500. Since its inception in 2010, the program has balanced out successfully for those four counties, significantly reducing administrative expenses and providing tax relief for those least able to pay.

Temporary Property Tax Exemption for Agricultural Food Processing Equipment

With no debate, the Senate Finance and Revenue Committee sent HB 2735 to the full Senate for passage. HB 2735 extends the sunset to July 1, 2020, of a successful program supported by AOC, which provides a five-year property tax exemption for newly acquired agricultural food processing machinery and equipment. The exemption, adopted in 2005, is credited with helping to pull this industry out of an economic death spiral that threatened the food processing infrastructure. The elegant feature of this property tax expenditure is that this type of machinery and equipment holds its value well over time. When returned to the tax rolls its value is typically around 70 percent of its original value. In effect, the program provides an affordable down payment for new investment and growth by the agricultural food processing industry.

RV Re-apportionment for County Parks

SB 331 awaits assignment to a Ways and Means subcommittee. If SB 331 A-Engrossed does not pass the Legislature, counties face a reduced share of RV registration fees, dropping to 30 percent from the current 35 percent. Passage of SB 331 A-Engrossed would result in county parks receiving 45 percent. With the revenue forecast approaching and legislators starting to look toward the end of the session, it's important that you let your legislator, particularly those on Ways and Means, know what this bill will mean for your county.

Sheriffs' Day/HB 3317

Clackamas County Sheriff Craig Roberts engages with Rep. John Lively (D-Springfield), Rep. Gene Whisnant (R-Sunriver) and Rep. Jeff Barker (D-Aloha) during Sheriffs' Day in Salem

Oregon's sheriffs were in town last week for Sheriffs' Day at the Capitol. They were joined at lunchtime by a dozen legislators for a presentation on the Clackamas Town Center Shooting. Clackamas County Sheriff Craig Roberts and Undersheriff Matt Ellington briefed those in attendance about the incident. AOC hosted the event at the local government center with the Oregon State Sheriffs' Association.

Sheriffs then headed to the Capitol for appointments with legislators and to testify on key public safety bills. One bill, HB 3317-A, would extend the sunset for the 911 emergency communications tax and also extend the tax to prepaid phones. AOC, the sheriffs, and most other public safety organizations support this bill. The bill received key support in the Joint Ways and Means Committee on Public Safety.

Road User Charges

The House Revenue Committee passed HB 2453 requiring high mileage vehicles pay a user charge to pay for highway road maintenance and improvements. They approved amendments that provided for a rate of 1.55 cents per mile, local government pilot projects, multi-jurisdictional research, an expanded pilot project, setting the flat fee, and addressing several technical issues.

The Committee talked about whether it would be best to have a flat fee only or have a per mile charge option. Some members commented that the program would be too complex and whether Oregonians were ready for a change to collecting revenues for roads. Rep. Barnhart said the legislation is not set in stone and will likely be revised by future legislatures. The bill will be sent to Ways and Means before final action which will require a 3/5 vote.

The net revenue impact would be ($.69 million) in 2015-17 rising to $7.97 million in 2019-21. The numbers reflect costs of collection and administration. The 2015-17 biennium revenue impact is negative due to the ramp up costs of administration/collection. The revenue would be shared according to the agreed split of 50 percent state/30 percent counties/20 percent cities.

Voting yes: Rep. Berger, Rep. Barnhart, Rep. Read, Rep. Vega Pederson, Rep. Bailey, Rep. Gelser Voting no: Rep. Davis, Rep. Bentz and Rep. Conger.

Governance Forum Recap

AOC would like to extend a thank you to Senate President Peter Courtney for attending the AOC/OHA/DHS Governance Forum on Friday. Senator Courtney took the time to explain his vision for comprehensive community mental health reform (SB 823). A "one-pager" explaining this bill can be found here.

AOC would also like to thank Addictions and Mental Health division interim director Linda Hammond and incoming director Pam Martin for coming and explaining OHA's input into developing SB 823. Pam Martin also had an opportunity to introduce herself to the commissioners and several mental health directors. We all look forward to working with her in the future.

Finally, AOC thanks Bob Joondeph, director of Disability Rights Oregon, for explaining the intricacies around the recent US DOJ rulings. There have been a number of recent legal challenges that impact both counties and CCOs. We all developed a much better understanding of the federal government's expectations for community mental health. For more information, please contact AOC's Mark Nystrom.

NACo Steering Committee Nominations

If you are interested in serving on a NACo steering committee, now is the time to make that known. You must go through AOC to get an appointment to a steering committee. Just fill out this form and return it to Mike McArthur. Appointments will be announced at the NACo annual meeting in July. If you are already on a steering committee, Mike intends to reappoint you unless he hears otherwise.

Plan for LGPI Conference

LGPI Conference 2013

Places To Go, Things To Do, Great Opportunities

May 16, 2013, 3:30 - 5:00 pm, 107 Richardson Hall, Oregon State University. Matt Krumenauer, Senior Policy Analyst, Oregon Department of Energy will speak as part of the 2013 Starker Lecture Series. His topic: Oregon Biomass Experience, An Integrated Approach to Forest Biomass.

You are invited, May 21! Converting forest residuals and MSW wood wastes to bio-jet fuel and co-products. Provide your input on the development of a western Washington and Oregon "Pilot Supply Chain Study Region." Washington State University, Vancouver campus. More information and registration.

2013 Roadway Lighting Day, May 21, Portland

Oregon Department of Veterans Affairs, Veterans Summit: Connecting veteran service partners across Oregon, May 29, 2013, Salem Convention Center, 9 am - noon.

Coastal Fish Habitat Conservation Funding: The National Oceanic and Atmospheric Administration, along with their partners have announced the availability of up to $1.7 million to support native fish habitat conservation projects. Pre-proposals are due June 3, 2013.

Regards to Rural 2013 Conference, June 21-22, Oregon State University

US Department of Transportation TIGER V grant program. Applications are due June 3. For more information, please contact Travis Brouwer at ODOT. Put "TIGER V" in the subject line of your email.

Current Requests for Proposal and Requests for Qualifications from the Energy Trust of Oregon.

Admission

Because of Monday's meetings of AOC Steering Committees, the Legislative Committee and the Board of Directors, this week's edition of Oregon Trails is coming your way on a Tuesday. We'll be back on our Monday deadline next week.

Have a great week.

Please feel free to submit your story ideas, announcements, recipes, photos and job changes to your Oregon Trails staff for inclusion in the next riveting edition.

See you next week - your Oregon Trails staff,

Laura Cleland & Eric Schmidt

Association of Oregon Counties

503-585-8351