The 75th Oregon Legislative Assembly convened beginning on , for its biennial regular session. All of the 60 seats in the House of Representatives and half of the 30 seats in the State Senate were up for election in 2008; the general election for those seats took place on .
The results:
Senate: Democrats 18 seats, Republicans 12 seats
House: Democrats 36 seats, Republicans 24 seats
Democrats took control of the Senate in the 2004 elections, and of the House in the 2006 elections. The Senate had been controlled by Republicans since 1997 and the House since 1990. Many Republican legislators resigned or declined to run for reelection in 2008. Democrats lost one seat in the Senate, and gained five in the House.
The Republican House caucus released an agenda for the 2009 session; priorities included improving economic growth, bringing accountability to state government, improving the state's education system, extending health care and extending in-home care for seniors, enhancing public safety, and managing natural resources.Oregon House Republicans: Building a better Oregon (2009 agenda) House Majority Leader Dave Hunt (D–Gladstone) responded to the agenda in July 2008, characterizing it as a departure from the failed policies of the George W. Bush administration, and stating that the problems Republicans seek to solve resulted from 14 years of Republican leadership. The House Democrats also released an agenda for 2009.Oregon House Democrats 2009 Roadmap for Oregon's Future
The legislature, in its 2009 regular session, worked to close a budget shortfall brought on by the economic recession. One critical factor in the legislature's work is the fact that Democrats hold three fifths of the seats in each chamber, theoretically providing the three-fifths supermajority support required by the Oregon Constitution for bills to increase revenue.Measure 25, approved by voters in 1996, added the following language to the Oregon Constitution: "Three-fifths of all members elected to each House shall be necessary to pass bills for raising revenue." (Art. IV §25(2))
In the effort to balance the budget, bills were passed to raise income taxes on corporations and wealthy individuals and households. This is expected to raise US$733 million in revenue over the next two years, which is meant to lessen the need to make spending cuts to state services and programs. Opponents led an effort to force a statewide referendum on these increases, which appeared as Measures 66 and 67 on the special election ballot. They were both passed by voters and took effect .
The 2009 Legislature passed two major new laws that had been unsuccessfully attempted for several prior years:
The Jobs & Transportation Act (the largest jobs bill in Oregon history) was passed with funding for the Sunrise Highway Corridor in Clackamas County, Newberg-Dundee Bypass, Woodburn/I-5 Interchange, Highway 62 extension in Medford, Beltline/I-5 Interchange in Eugene, and major new permanent annual road funding for all Oregon cities and counties. The Act also allocated $100 to ConnectOregon to improve air, rail, and marine infrastructure.
The Healthy Kids Act was passed to provide health insurance to 90,000 uninsured children and 30,000 low-income adults, which resulted in Oregon reducing the number of uninsured children by more than any other state.
Sessions
The Oregon Constitution requires the Legislative Assembly to hold regular sessions once every two years,Oregon Constitution, Art. IV §10: "The sessions of the Legislative Assembly shall be held biennially at the Capitol of the State commencing on the second Monday of September, in the year eighteen hundred and fifty eight, and on the same day of every second year thereafter, unless a different day shall have been appointed by law." but the body can hold special sessions called by either the governor or the body itself. Only four other states' legislatures hold regular sessions every other year: Montana, Nevada, North Dakota, and Texas. Until November 2008, Arkansas was the sixth state. In recent years, the Legislative Assembly has considered switching from biennial to annual regular sessions, as recommended by the Public Commission on the Oregon Legislature. To test the idea, the 74th legislature called itself into a special session in 2008, calling it a "supplemental" session to the regular one in 2007.
Likewise, the current legislative body will hold a supplemental session in 2010, expected to start and to last four weeks. Among other tasks, the legislature plans to refer a ballot measure to voters to amend the state constitution to permanently change to annual sessions. A ballot measure is required because all constitutional amendments must be approved by voters.Oregon Constitution, Art. XVII §1: Any amendment or amendments to this Constitution may be proposed in either branch of the legislative assembly, and if the same shall be agreed to by a majority of all the members elected to each of the two houses, such proposed amendment or amendments shall, with the yeas and nays thereon, be entered in their journals and referred by the secretary of state to the people for their approval or rejection, at the next regular general election, except when the legislative assembly shall order a special election for that purpose... The legislature also plans to refer a constitutional amendment to voters to redirect tax rebate funds into a state reserve, or "rainy day," fund.
Notable legislation 2009 regular session In the effort to balance the budget, House Bills 2639 and 3405 were passed, raising taxes on corporations, and on wealthy individuals and households, respectively. HB 3405 replaced the corporate minimum tax of $10, paid by two thirds of corporations in Oregon, with a sliding scale: At the bottom of the scale, corporations with sales under $500,000 in Oregon will pay $150; at the top, corporations with sales over $100 million will pay $100,000. Corporate income greater than $250,000 will be taxed 7.9 percent for two years, then 7.6 percent afterwards. Corporate income below this threshold will be taxed 6.6 percent. Under HB 2639, taxable income greater than $125,000 for individuals and $250,000 for joint filers will pay a rate of 10.8 percent for the next three years, up from 9 percent; after that, the rate drops to 9.9 percent. Also, income higher than $250,000 for individuals and $500,000 for households will be taxed at 11 percent. These two bills are expected to raise $733 million in revenue over the next two years.
The bills cleared the Joint Ways and Means Committee on , and the House passed them . Representative Mike Schaufler (D–Happy Valley) broke with Democrats and voted against both bills, but Rep. Greg Smith (R–Heppner) supported HB 2649, and Rep. Bob Jenson (R–Pendleton) voted for both bills. On , despite expectations that the bills would pass the Senate as easily as they did the House, they "crashed in dramatic fashion" when Senator Mark Hass (D–Beaverton), believing the proposed tax increases should be temporary, joined Republicans and voted against HB 3405. Because no Republicans supported the bill, all 18 Democrats were needed to pass the bill, but Hass's rejection left only 17 votes of approval. The Senate tabled both bills and started negotiations. On , after Hass promised his support of both bills if some revenue from the corporate tax increases were added to the rainy day fund, the Senate voted again and passed both bills. Governor Ted Kulongoski signed them , over a month later.
Opponents of these tax increases said they would worsen Oregon's economy, and they led an effort to force a statewide referendum on these increases. Measures 66 and 67 qualified for the ballot on , and voters passed both measures on , less than a week before the legislature planned to hold a special session to continue to work on the budget.
Electoral fusion was made possible in Oregon with Senate Bill 326, allowing candidates to list a maximum of three party endorsements on their ballot line. This used to be legal in Oregon until 1958. Some have called this plan "fusion light" to contrast it with electoral fusion as practiced in states like New York, where each candidate gets a ballot line for each party that endorses them. SB 326 also repealed a 2005 law preventing voters who already participated in a party's nominating process from signing an independent candidate's nomination petition for a partisan office. The 2005 law was a response to Ralph Nader's 2004 US presidential candidacy as an independent, raising concerns among Democrats that similar candidates would hurt their chances of being elected. The law drew criticism when Ben Westlund, then an independent member of the state Senate, ran for governor in 2006. He had to wait until after the primary election to start his campaign and verify that the voters who signed his petition hadn't voted in any party's primary.
Other significant new laws passed by the 2009 Legislative Session:
Jobs & Transportation: Passed the Jobs and Transportation Act (the largest jobs bill in Oregon history) with funding for the long-awaited Sunrise Highway Corridor in Clackamas County, Newberg-Dundee Bypass, Woodburn/I-5 Interchange, Highway 62 extension in Medford, Beltline/I-5 Interchange in Eugene, and major new road funding for all Oregon cities and counties. Also allocated $100 to ConnectOregon to improve air, rail, and marine infrastructure.
Health Care: Enacted Healthy Kids Act to provide health insurance to 90,000 uninsured children and 30,000 low-income adults, which resulted in Oregon reducing the number of uninsured children by more than any other state.
Education: Expanded Head Start, Early Head Start, and Relief Nurseries, referred an amendment to the Oregon Constitution to allow state matching funds for K-12 school capital construction (passed by voters as Measure 68 in 2010), and passed record investments in community college facilities on all 17 Oregon campuses.
Business Assistance: Increased loans and created new grant funding for small businesses needing capital, invested in emerging industries, and broadened research and development tax credits.
Public Safety: Restored 24/7 Oregon State Police highway coverage after 15 years of drastic cuts, cracked down on methamphetamine-related metal theft, required DUII offenders to install ignition interlock devices to prevent further drunk driving, protected child abuse funding, and began to shift greater resources to crime prevention.
Environment: Helped businesses and homes become energy efficient, enacted new low carbon fuel standards to improve air quality, and increased protections for Oregon fish and sportfishermen by cracking down on California sea lions.
Veterans: Funded new Veterans Service Officers across Oregon, expanded educational opportunities for veterans, funded an emergency fund for military families, and referred a Constitutional amendment to expand the availability of home loans for veterans (passed by voters as Ballot Measure 70 in 2010).
Human Services: Expanded farmer's market vouchers for low-income families and seniors, provided more school breakfasts and lunches, more summer meals for hungry kids, and Oregon Project Independence for seniors at home.
Civil Rights: Passed the Oregon Workplace Religious Freedom Act to allow greater religious freedom in Oregon workplaces (in 2009) and repealed a 1923 KKK-inspired law that disallowed teachers from wearing religious garb in the classroom (in 2010).
Affordable Housing: The Housing Opportunity Bill created a new trust fund to increase affordable rental housing development, help more Oregonians become home owners, prevent homelessness; and maintain and expand the network of community-based nonprofit housing providers.
Fiscal Responsibility: Required for the first time a pro-active review of Oregon tax breaks each biennium.