End of Special Session Report

The February special session just wrapped up in Salem, and although we only met for one month, we were able to get many significant bills passed into law to create jobs and protect Oregonians during these hard times. This short session shows why it's important for us to be able to meet every year. We spent this session focused on job creation, balancing the budget, and protecting education and human services. I'm pleased to report that we were able to fully fund K-12 education at the full $6 billion promised prior to the January election. I also want to let you know about some of the other accomplishments from the special session.

Working to help Small Businesses

This session we worked to help small businesses during these tough economic times. HB 3698 creates the Building Opportunities for Oregon Small Business Today Fund (BOOST Fund) and authorizes the Oregon Business Development Department to make loans or award grants to small businesses from the fund. To qualify for BOOST funds, a small business must demonstrate a reasonable capacity to increase employment, and establish a goal of creating new full-time jobs in Oregon.

Oregon House Democrats have committed to continue making Oregon an attractive place to open and grow the small businesses that are the backbone of our economy and the engine of our recovery. BOOST is part of that effort.

Another great bill to help small businesses is SB 1017, championed by Representative Doherty and Senator Bonamici. This bill temporarily expands access to capital for small businesses through the Oregon Business Development Fund (OBDF) and the Entrepreneurial Development Loan Fund (EDLF), providing loan funds for projects when private lenders can't provide the resources. OBDF will reach capacity by April of this year, so the one time injection of $3 million will provide funds for several more projects in the coming years.

I also co-sponsored HB 3627, the Entrepreneur Investment Act championed by Representative Tobias Read. This bill encourages entrepreneurship in Oregon by allowing Oregon residents to claim an income tax subtraction for investing their severance pay into a new or existing Oregon small business. The bill requires people who claim this exemption to maintain their investment for at least 24 months and makes the credit conditional on stringent requirements about the investor's participation in the business. Research shows that many successful businesses start during a recession. The Entrepreneur Investment Act helps create a bridge between unemployment and job creation and will encourage the development of new small businesses throughout our state. This program provides a quick shot in the arm to help people turn concepts into industry and speed-up the pace of re-employment and growth across Oregon.

Build America Bonds

I am proud to be a co-sponsor of HB 3646, championed by Representative Lew Frederick. This year, Oregon will sell nearly $1 billion in bonds. In previous years, Oregon has issued tax-exempt bonds for these projects. Build America Bonds (BABs), recently created as part of the federal stimulus plan, offer a far more attractive alternative. BABs are taxable bonds, but the federal government subsidizes a percentage of the interest. This effectively reduces the net interest rate below that of tax-exempt bonds. As written, statutes do not allow for the federal payments associated with BABs to be deposited into state debt service funds, rendering BABs no different from any other taxable bond. HB 3646 explicitly allows federal payments associated with BABs to be deposited into Oregon's debt service funds. This fix allows state agencies and the State of Oregon to access the full benefit of BABs, and to enjoy the associated savings.

Job Applicant Fairness Act

This session I was a co-sponsor of SB 1045, the Job Applicant Fairness Act (JAFA). SB 1045 restricts job related credit checks, making it easier for Oregonians to get back to work. When working families most need help, it's not fair to bar someone from employment for struggling to make ends meet. The bill still preserves employers' right to check criminal records and all other job-related reference checks.

Investing in Growing Clean Energy Economy

During the special session the legislature passed bills to grow our clean energy economy. I am committed to making Oregon the center of the growing clean industry while creating the high-skill, high-wage jobs of tomorrow. HB 3675 makes some technical improvements to the Energy Efficiency and Sustainable technology Act (EEAST), my priority bill from last session. This program, in partnership with Clean Energy Works Portland, is already creating good, family wage jobs for Oregonians.

We also took significant steps to reform the Business Energy Tax Credit (BETC.) HB 3680 places a cap on the total dollar amount of tax credits granted, eliminates a provision allowing projects a 10% increase for running over original project cost estimates, and stops developers from dividing up their project into smaller projects to scam the system and qualify for larger than intended subsidies. These changes will save $55 million from the state's general fund during the current biennium and a half a billion dollars over six years, while at the same time ensuring that Oregon is still a leader in the clean energy economy. Crafting the BETC reform bill was a balancing act, and I am committed to further reform in the interim that will ensure taxpayers get the most value out of the program.

Jobs in Our Oceans

HB 3613 extends the ban on offshore drilling in Oregon for 10 years. The moratorium was first adopted in the early 1990s and readopted in 2007 with bipartisan support. The moratorium expired on January 2nd of this year. This legislation was championed by Representative Ben Cannon.

Oregon's diverse coastal economy generates approximately $5.4 billion dollars in personal income, including valuable commercial fishing, aquaculture, tourism and recreational sectors that would be at risk if offshore oil drilling were allowed in Oregon's territorial sea. 28 groups signed on to support this bill - from commercial fishing organizations and businesses dependent on tourist dollars, to conservation groups.

HB 3633 also creates jobs in our oceans. Representative Deborah Boone championed this bill, which calls for the Oregon Department of Land Conservation and Development to commission a study to compile existing information and collect new data that will assist in understanding how renewable energy development will affect local coastal communities. The Territorial Sea Plan Advisory Committee will review the study and make recommendations to the Legislature for further action.

House Democrats are committed to investing in alternative energy technology to make Oregon a center of the growing clean energy industry while creating high-skill, high-wage jobs.