Legislative session opens amid optimism and reform

The 2007 session of the Oregon Legislature kicked off January 8 with a much stronger tone of optimism than in recent years. Lots of money to spend always helps create a good mood, and the state’s coffers are projected to be up nearly 20% over the current 2005-07 budget period. 

Re-elected Gov. Ted Kulongoski announced an ambitious spending agenda to bolster K-12 education, higher education, workforce training, and health care, among many other key items. Despite the growth in the state budget, the Governor said he would push for increased corporate taxes and retention of the corporate kicker credit. He wants the increased corporate minimum tax to boost Head Start, college scholarships, and workforce training. He wants to save the projected $275 million corporate kicker in a rainy day fund. 

The obvious change in the Capitol is that the Democrats now control the House as well as the Senate. It’s still too early to guess how aggressive the Democrats will be in pursuing their agenda, and how they will choose to work with the business community. One thing we do know: a lot of issues that the Republicans kept off the table the past 16 years will likely get heard in the House. Whether they go on to become law is another story. We’ll be busy. 

On opening day, lawmakers in the House voted for much stricter ethics rules, essentially banning lobbyist-paid meals and entertainment, as well as privately sponsored travel. The move is a blow to the Salem restaurant industry and could mean lower attendance at Trailblazer games. The Senate did not pursue stronger ethics rule yet. 

Biggest news is the announcement that lawmakers are planning to adjourn by the end of June and come back for a short 30-day special session next February. It’s an attempt to show the value of annual sessions prior to asking the public to make such a change in the Constitution. 

Most of the first week consisted of committees getting organized, lawmakers and staff learning how to work their computers, and lobbyists scurrying about trying to get early appointments with legislators before their books fill up. 

Allen Alley joins Governor’s staff 

Local executive Allen Alley, who stepped down as CEO of Tualatin-based Pixelworks last month, will become deputy chief of staff to Gov. Ted Kulongoski. Alley was the founder of chip-maker Pixelworks and is a former chair of the AeA Oregon Council. In his new role with the Governor, Alley will oversee issues involving economic development, transportation, energy, and technology. 

He joins the new chief of staff Chip Terhune, who formerly was lead lobbyist for the Oregon teacher’s association, and the other deputy Tim Nesbitt, former head of the Oregon AFL-CIO. 

We wish Allen all the best of luck as he brings his knowledge of the high-tech industry, venture capital, and global business to the State Capitol. 

Some of the key bills we’re already tracking 

Hundreds of bills were printed in the first week of the session. AeA’s Jim Craven reads everyone of them. Here is a sampling of the issues already in play. If you have an interest in a bill and want it to be on AeA's radar screen, just let us know.

HB 2209 – Governor’s proposal to implement a “renewable portfolio standard” to mandate that 25% of the state’s new electricity comes from renewable sources by 2025. Business energy users have concerns about the impact of the mandate on rates. This will be a major battle of the 2007 session. 

HB 2214 – Governor’s proposal to dedicate 61% of the state’s general fund dollars go to education at all levels, and that future education budgets will increase at least 110 percent. It’s an interesting approach, but probably not possible for one legislature to bind the budget decisions of future legislators. But it’s an attempt by the Governor to show that education at all levels should be a funding priority of the state. 

HB 2217 – Governor’s proposal to raise the Oregon corporate minimum income tax from its outdated $10 to a new range from $250 to $5,000, depending upon corporate revenues allocated to Oregon. The Governor wants the $85 million generated from this tax hike to fund Head Start, workforce programs, and college scholarships. Along with attempts to retain the corporate income tax “kicker,” this will be a major battle of the session. 

HB 2257 – A retread of an idea introduced in 2005 by the Bureau of Labor and Industries to ban enforcement of noncompete agreements when an employee is laid off. AeA opposed the bill in 2005 and it didn’t even get a hearing in the Senate. But this time it’s been introduced in new Democratic House which has strong ties to Labor Commissioner Dan Gardner. If you have concerns about this bill, please contact Jim Craven ASAP. 

HB 2395 – Rep. Jackie Dingfelder’s comprehensive proposal to address the challenge of computer recycling. The bill is modeled after legislation that passed recently in Washington State and would require computer and television companies to take responsibility for setting up statewide recycling efforts. AeA is taking a hard look at the proposal, and member companies have differing opinions about whether to support it or not. 

SB 48 – Legislation from an interim Senate committee that would take the corporate kicker funds and dedicate them to a special fund for school capital construction. It’s possible that a change to the corporate kicker may pass this session, but many in the business community believe that IF such a change happens, the funds should be dedicated to general reserves, rather than to the specific use outlined in this proposal. 

SB 246 – Bans using a cell phone while driving. No state has yet banned cell phones in the car completely. New York, Connecticut, New Jersey and the District of Columbia require the use of hands-free devices. The bill comes from Sen. Charlie Ringo, who resigned last year, so it may not have a strong advocate in the Capitol. 

This page was last updated on 01/18/07.  
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