Dec 21, 2023 | AOC Advocacy, Governance, Revenue, & Economic Development
The biennial Court Facilities Task Force, a collaboration between AOC and the Oregon Judicial Department (OJD) to evaluate and prioritize courthouse improvements and replacements, kicks off in January. Funding requests for projects recommended by the task force will be included in OJD’s 2025 legislative budget proposal, which must be submitted by April 2024.
County officials, commissioners, judges, or chairs representing counties that may want help with courthouse projects in the next few years are strongly encouraged to participate in the task force process. AOC is also actively seeking volunteers to serve as members of the task force. Please reach out to mburdick@oregoncounties.org if you are interested in serving.
A kickoff meeting will be held on Tuesday, Jan. 2. OJD staff will provide background information about the task force, review the status of projects that were prioritized last cycle, and answer your questions.
AOC-OJD Court Facility Task Force Kickoff Meeting
Tuesday, Jan. 2, 2024, 10 a.m. to 2 p.m.
AOC Hood Conference Room (2nd Floor)
1212 Court St NE, Salem Oregon
Or attend virtually: https://meet.google.com/hhj-yfbd-dtr
Or dial: (US) +1 209-862-8182 PIN: 891 906 660#
Two additional task force meetings are planned:
- Thursday, Feb. 1, 10 a.m. to 2 p.m. | Task force reviews county presentations summarizing their proposals, and counties get help identifying any missing information
- Wednesday, March 13, 10 a.m. to 2 p.m. | Final deliberation and prioritization
Counties are understood to be responsible for providing “suitable and sufficient” space for the state circuit court system to operate, as well as maintaining the space and providing security, per ORS 1.185. However, providing space to the state circuit court system is tremendously expensive, and most counties face major challenges upholding their responsibility to keep these buildings in safe conditions, as well as addressing the circuit courts’ growing need for space as populations increase. Many court buildings have historic importance, and their preservation and upkeep are especially expensive. As seismic risk has become better understood and standards have been updated, improvement needs and costs have ballooned even higher.
After the state pre-empted local control over county property tax revenue in the 1990s and strictly limited it via Measure 5 and Measure 50, it has become increasingly impossible for most counties to maintain service levels across all sorts of programs, and court buildings throughout Oregon have become increasingly problematic. The Oregon State Bar highlighted the deteriorating condition of Oregon’s courthouses in a 2006 report, and since then the state legislature has developed some mechanisms to address counties’ challenges with these costs. Grants and matching funds are typically provided every biennium, when the legislature meets in its “long session.” But the needs far outstrip the amount of funding available each session. The task force represents a partnership between OJD and AOC to try to focus limited available state assistance funds on projects that have the most critical need.
The task force began in 2014, when Chief Justice Thomas Balmer asked AOC to conduct outreach to counties and find out about their courthouse improvement and replacement needs, review those requests, and provide him with recommendations about which projects should be prioritized for funding from the legislature. In response, AOC established the Court Facilities Task Force in partnership with OJD, and the partnership has persisted ever since. The process helps prevent counties from lobbying against one another for the same money, so it helps counties work together toward a common purpose.
Some might wonder why providing space to the state’s court system is the responsibility of counties. The arrangement is a vestige of times long past. Before Oregon became a state, counties managed a multitude of functions, including judicial ones, which the state later took over. Benton County built a courthouse in 1854, five years before statehood. Oregon’s judicial system has seen many reforms since then; the last major reforms were enacted in 1981. Until a more thorough solution is available, AOC will continue working with OJD to help the legislature understand the state circuit court’s unmet needs when it comes to safe, suitable buildings, and help counties in their efforts to get those needs met.
Contributed by: Michael Burdick | AOC legislative affairs manager
Jun 26, 2023 | AOC Advocacy, AOC News, Governance, Revenue, & Economic Development
House Bill 2009 became the vehicle for negotiations that began early in session about several economic development and tax incentive programs long supported and utilized by counties. Negotiations centered on policy differences about the importance of these locally-driven tools to attract businesses to areas that need development and the alternative viewpoint that the subsidies in these programs needlessly reduce local revenues that could be used for other services, in particular schools.
AOC supported the efforts to keep these incentives as strong as possible and worked with other stakeholders, including the Oregon Economic Development Association and League of Oregon Cities to keep the programs intact.
After weeks of negotiation, public hearing testimony and advocacy from AOC members, and multiple rounds of amendments, a -15 amendment to HB 2009 was finally adopted and now goes to the governor for signature.
The compromise legislation does the following:
- Reinstates the research and development tax credit, which was discontinued by the legislature in past years
- Tax credit is in effect for 5 years, the percentage is 15 percent of the investment, and the maximum credit per taxpayer is $4 million
- Extends the Enterprise Zone and Long-term Rural Enterprise Zone programs through 2032
- “Fulfillment centers” are no longer eligible
- Increases the eligibility threshold for projects in the strategic investment program and indexes the eligibility threshold and the taxation threshold
- Adds a new “school impact fee” to the Enterprise Zone program
- Extends the Gain Share program through 2030
- Adds transparency and notice requirements
The most concerning part of HB 2009 for AOC was the addition of the new school impact fee. Fortunately, the initial proposal was negotiated down to be imposed only in years four and five for regular Enterprise Zones and year six for Long-term Rural Enterprise Zones. The fee will be negotiated between the school district and the zone sponsor and be between 15 percent and 30 percent of the property taxes that would otherwise be paid. Each fee negotiated would apply to all subsequent agreements.
Contributed by: Anna Braun, AOC contract lobbyist
May 19, 2023 | Governance, Revenue, & Economic Development
As Oregon prepares applications for hundreds of millions of dollars in federal infrastructure funds that Congress made available through the American Rescue Plan Act and the Infrastructure Improvement and Jobs Act, the state legislature is doing its part.
HB 3201, sponsored by Rep. Pam Marsh and Sen. Aaron Woods, will fix conflicts between state law and federal rules that could have significantly reduced the amount of federal broadband infrastructure funds Oregon qualifies for. Considering the hardships facing anyone who does not have good internet access today, and the tremendous difference better internet will make for communities across Oregon, passing HB 3201 has been a huge priority for AOC this session.
In terrific news, the bill cleared one of its final hurdles on Tuesday, May 9th, passing out of the Senate Committee on Veterans, Emergency Management, and Federal and World Affairs. It now moves to the Senate Floor, where it is expected to pass. On its way to the governor’s desk, the bill will make one more stop in the House for a concurrence vote, where it is nearly certain to succeed after having passed that chamber with a strong bipartisan majority in March.
HB 3201 initially faced an uncertain path due to fierce opposition from a couple of special interest groups. Many people and organizations contributed to this effort, which began last summer, when Rep. Marsh convened dozens stakeholders to collaborate on solutions, meeting multiple times over a period of months. Sen. Woods, the bill’s other chief co-sponsor, deserves special appreciation for his leadership in reaching an agreement that eliminated all known opposition to the bill, giving it an even better chance of passing. In a glaring oversight, Sen. Woods’ efforts were not acknowledged in AOC’s testimony to the Senate committee earlier this month, a lapse we sincerely regret.
AOC will continue to watch HB 3201’s progress closely, as well as ongoing efforts by the Oregon Broadband Office to obtain the federal funds and get grants out to communities.
Contributed by: Michael Burdick | Legislative Affairs Manager
Apr 28, 2023 | Governance, Revenue, & Economic Development
Tourism is a boon to any community lucky enough to have exquisite natural beauty, fun recreational activities, beaches, or other amenities that entice tourists. It’s often considered a coveted “export,” because it infuses dollars earned elsewhere into the local economy. Vacationers tend to be more affluent than locals and in the mood to splurge, giving their patronage of local restaurants, bars, shops, and artisans an outsized impact.
However, tourism presents a host of challenges. The population of many localities balloons during the tourist season, putting pressure on local public safety agencies, infrastructure, and other critical public services. Also, housing affordability problems emerge as locals are thrust into competition for housing with wealthy vacation home buyers, retirees, and vacation rental operators. Tourist destinations across the world have grappled with these challenges for decades; many communities appreciate the benefits of tourism, but some would rather not share their slice of heaven with hordes of vacationers.
Airbnb, founded in 2008, is credited with sparking a revolution in the tourism industry and spawning a proliferation of vacation rentals throughout the world, which have become a particular focus of policymakers and academic researchers. Vacation rentals are frequently blamed for problems such as illegal parking, excessive partying, noise, and other nuisances. Regulations in Oregon range from complete bans to licensure requirements and other measures aimed at minimizing neighbor conflicts. Vacation rental operators have recently challenged certain local regulatory efforts in court: Clatsop and Lincoln counties are currently in litigation over claims that their moratoria improperly curtail or extinguish non-conforming uses as per ORS 215.130(5). HB 3381 was filed in the 2023 Legislative Session to clarify that vacation rental regulations are business regulations and not land-use regulations, but it didn’t get much traction.
In most states, tourists help pay for public services and infrastructure through gas, sales, and tourist taxes (transient lodging taxes). With no sales, gas, and tourist taxes are the only ways that tourists help pay for their impacts on infrastructure and public services in Oregon. But the lodging industry persuaded the State Legislature to restrict local governments’ use of their tourist tax receipts about 20 years ago: ORS 320.350 dictates that at least 70 percent of tourist tax proceeds must be spent on promoting tourism (i.e. advertising) or tourism-related facilities. Given other state laws constraining local property tax revenue, tourist destinations across Oregon have struggled to afford adequate infrastructure, policing, firefighting, and many other basic public services.
Over the years, the Legislature has considered giving local governments flexibility around how they can spend their tourist tax proceeds, with little success. This session, HB 2494 was introduced, which would have allowed local governments to levy a tourist tax up to three percent, all of which could be directed to public safety services, but the bill is apparently dead. Another bill considered this session was HB 3589; as amended, it would have created a task force to study and recommend legislation to assist local governments with regulation and taxation of short term rentals. That bill is also apparently dead, but House Committee on Housing and Homelessness Chair, Representative Maxine Dexter (D-Portland), has announced plans to convene a work group to consider these issues. AOC hopes to participate, and will continue monitoring related policy developments.
Contributed by: Michael Burdick | Legislative Affairs Manager
Jan 26, 2023 | Governance, Revenue, & Economic Development
Hours after being officially sworn in, Governor Tina Kotek signed three executive orders focused on housing and homelessness. One creates a new advisory board to develop recommendations for speeding up home construction enough to bring an end to our chronic housing shortage within 10 years. The council is supposed to issue its recommendations by the end of 2023.
The executive order creating the council doesn’t require that local governments be represented, but the governor’s office recently contacted the Association of Oregon Counties (AOC) to encourage its members to apply. Applications are being accepted now at this website; no deadline to apply has been announced.
Contributed by: Michael Burdick | Legislative Affairs Manager
