cap-and-invest

Lawmakers Still Puzzling over Purpose of Short Session

The 2018 Oregon legislative short session is over, but lawmakers are still trying to figure out how to use the even-year session fruitfully amid its unavoidable frenetic pace

The 2018 Oregon legislative short session is over, but lawmakers are still trying to figure out how to use the even-year session fruitfully amid its unavoidable frenetic pace

Oregon lawmakers continue to struggle to find the right mix for the short, even-year legislative session. They adjourned last Saturday after leaving a much-ballyhooed cap-and-invest bill sitting in committee along with a constitutional amendment to treat health care as a right.

Yet, lawmakers did notch notable accomplishments by tightening gun restrictions on domestic abusers, updating the state’s advance directives statute, requiring more transparency on drug pricing and changing the governance structure of Salem-Keizer Transit in return for future access to a local payroll tax.

And lawmakers didn’t totally avoid controversy. With largely Democratic votes, the legislature approved a bill that disconnected from the recently adopted federal tax cut to prevent Oregon small businesses from taking advantage of a previous Oregon tax concession and a new lower 20 percent federal tax rate. There were rumblings Governor Kate Brown might veto the state tax measure, which drew strong opposition from business groups.

The short session also served as a shadow boxing venue for Brown, who is seeking re-election this fall, and her most prominent GOP challenger, Rep. Knute Buehler of Bend. During the session, Buehler laid out his planks of his campaign platform, such as additional investments in child welfare and taking stronger measures to curb the opioid epidemic in Oregon. Brown responded by asking for $14.5 million more for child welfare case workers and pushing her own priority opioid measure.

The shadow boxing hasn’t stopped with legislative adjournment. Buehler called on Brown to veto the Democratic tax bill scrapping a small business tax break. If Brown vetoes the legislation, Buehler will claim credit. If she doesn’t veto the bill, he will condemn her for denying a tax break to small businesses.

The short session was shorter than the 35 days constitutionally allowed. Republicans wanted to head to the beach for the annual Dorchester Conference. Others sped north on the freeway to attend a retirement roast for veteran homebuilder lobbyist and stand-up comic Jon Chandler. Still others braced for filing deadline Tuesday.

As predicted after Senate Democrats hoisted the white flag on cap-and-invest legislation before the short session started, there wasn’t a lot of drama in the Capitol hallways. There was a lot of pressure, however. Short sessions resemble the flurry typical in the last month of a regular legislative session. One lawmaker observed, “In a regular session, there are deadlines followed by time to get work done. In the short session, there are just deadlines.”

Perhaps notwithstanding Brown’s potential veto of tax legislation, GOP Senator Brian Boquist is entertaining a legal challenge clarifying what legislation is truly a “revenue raiser” and on whether a measure to disconnect from the federal tax code that generates new revenue can be approved without a three-fifths majority vote.

In all likelihood, the dawning of primary election season will overshadow what did or didn’t happen in the short session. The primary will be held May 15, which is less than 10 weeks from now – plenty of time for campaign coffees, lawn signs and mailers.

Dale - prof color photo.jpg

Dale Penn II is a partner and leader of the CFM’s state affairs team. He has been deeply involved in government relations and regulatory affairs in Oregon for more than 12 years and was active on behalf of a range of clients in the 2018 Oregon legislative session.

 

Short 2018 Session May Have Less Drama

No single issue is likely to dominate the Oregon 2018 legislative session that begins Monday, but lawmakers will still be busy with issues ranging from reconnecting to the federal tax code to gun restrictions. And there will be some political jockeying in advance of the Oregon primary in May and general election this fall.

No single issue is likely to dominate the Oregon 2018 legislative session that begins Monday, but lawmakers will still be busy with issues ranging from reconnecting to the federal tax code to gun restrictions. And there will be some political jockeying in advance of the Oregon primary in May and general election this fall.

Voter approval of Measure 101 and Senate Democratic cold water on cap-and-invest legislation may remove much of the anticipated drama at the 2018 Oregon legislative session, which convenes Monday. Of course, any legislative session during an election year can have outsized political tensions.

Without a focus on patching a big budget hole or trying to thread the needle for a compromise on cap-and-invest provisions, there isn’t an apparent single issue that will dominate the session with an adjournment deadline of March 11.

One of the sleeper bills likely to draw attention is legislation to connect Oregon’s personal and corporate income tax system with federal tax changes enacted by Congress late last year. Oregon lawmakers have tended to favor connecting Oregon’s tax provisions with their federal counterparts for the ease of taxpayer filing. But there may be other considerations this time around, including how the new federal limitation on state and local tax deductions will affect Oregon taxpayers.

The Oregon business community wants to see substantial progress on reducing the unfunded liability of the Public Employees Retirement System, but that appears unlikely in the short 2018 session and during an election year. Governor Brown will ask lawmakers to create an Employer Incentive Fund to provide matching money for public employers that accelerate their contributions to PERS. The pressure to act also was relieved by the Oregon State Treasury’s announcement that the PERS fund posted a 15.3 percent gain in 2017, which is good news, but not enough to stem rising costs.

Other priorities for Brown in the short session include a measure to encourage construction industry startups in rural areas that can access low-rate loans from Business Oregon to build affordable housing. Licensing requirements also would be relaxed and grants would be available to defray the costs of apprentices.

Brown wants all licensed opioid prescribers in Oregon to register with a Prescription Drug Monitoring Program to generate information about opioid use and identify illegal prescribers. Her proposal also would provide for mentors in emergency departments to counsel people who have overdosed.

Another Brown priority is to create a reverse auction for state procurement as a way to squeeze more value and less cost for state expenditures. Her concept is to generate more competition among state vendors who benefit from the $8 billion Brown says state agencies spend every biennium. 

The governor is seeking a bill to prohibit people convicted of domestic violence or stalking from purchasing firearms. Oregon lawmakers approved legislation last year to empower courts to order the confiscation of guns owned by people deemed at risk of suicide or hurting others.

Passage of Measure 101, which secures funding for Oregon’s Medicaid program through this biennium, prompted Rep. Mitch Greenlick, D-Portland, to propose a constitutional amendment that declares health care is a right of every Oregonian. He has attracted 40 cosponsors for his referral that would appear on November 2018 general election ballot.

Likely GOP gubernatorial frontrunner Knute Buehler, R-Bend, is pushing legislation to force coordinated care organizations to repay up to $74 million in Medicaid overpayments and address transparency and management issues by the Oregon Health Authority. Buehler has called for bipartisan action, but his measure will invariably have a vapor trail of politics following it.

Some familiar legislative faces will be missing. Long-time Senate Minority Leader Ted Ferrioli and Senator Richard Devlin, the Democrat’s budget guru, have moved on to appointed posts on the Northwest Power Council. Cliff Bentz, who has served in the Oregon House since the 2009 session, assumed Ferrioli’s seat and Senator Jackie Winters was chosen to succeed Ferrioli as minority leader. Rob Wagner, a Lake Oswego School Board member, was appointed to fill Devlin’s seat.