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Chip's Clips
News from 2011 Legislative Session
Greetings!
The 76th Oregon legislature has adjourned sine die, which means without assigning a day for a further meeting. I am excited to return to the district and enjoy all that North and Northeast Portland has to offer.
With a House split 30-30, and Democrats retaining a 16-14 majority in the Senate, we knew that this would be a session mostly about passing scaled-back budgets and compromise on policy bills.
As Chair of the General Government, Consumer and Small Business Protection Committee, I set out to develop and protect small business in the short-term, but also begin to build coalitions to tackle bigger issues that the well-heeled special interests here would fight vigorously.
To be effective in the legislature, I believe one must help others first, and drive one's own agenda second. That's why I put a lot of effort into helping other senators and representatives pass their priorities in my committee. This effort will pay dividends for North and Northeast Portland in the long term.
This session, we had some wins and losses, and laid the groundwork for future success on some key issues, like making health insurance companies justify their premium increases.
I want to thank staff members MaryAlecia Briggs, Amanda Hess and interns Justin Boro, Chi Nguyen and Colin Marston for their incredible work.
I also want to give a huge "Thank you!" to the many people from North and Northeast Portland who made the trek to Salem to advocate and lobby passionately about so many important issues.
But most importantly, I want to thank my spouse Shelda Holmes and my daughter for tolerating my absence. It's hard to describe how stressful this job can be to families, but Shelda believes in the work we are doing here for North and Northeast Portland and is the key part of our team. Her sacrifices and extra work during session made it possible.
If I can ever be of service to you or your family, please don't hesitate to call my district office at 503-231-2564 or e-mail at sen.chipshields@state.or.us. My staff, MaryAlecia Briggs, and I are at your service.

Taking on the tough fights in my committee
Protecting small business by fighting anti-competitive behavior, unfair trade practices and outlandish health insurance premium increases
The General Government, Consumer and Small Business Protection committee that I chaired quickly gained a reputation as the committee that would take on the tough fights. We helped Rep. Wayne Krieger (R-Gold Beach) and fishermen and women on the coast in their fight against anti-competitive behavior by the Northwest's largest seafood processor (SB 668).
We stood up for low-wage workers by passing SB 612 on wage-theft.
We stood with small business in their efforts to keep health insurance premiums affordable and in their efforts to fight unfair trade practices by insurance companies.
I'm encouraged to hear from people affected by these and other issues that simply shining light on unfair practices often changed behavior.
We had some wins and losses, and laid the groundwork for future success. I look forward to continuing the work in the coming months.
Below are some articles that highlight the work of my committee:
The top priority -- living-wage jobs
Unemployment in North and Northeast Portland is way too high
This session I spent considerable time focusing on bills that would protect living wage jobs and help small business, while also looking at ways to protect consumers.
We preserved the manufacturing portion of the Business Energy Tax Credit, which means that companies like SoloPower and MEMC Portland can continue to create living-wage jobs in the Rivergate District and expand our solar market.
The Buy Oregon First bill (HB 3000) passed my committee and was signed into law. It will allow state agencies to prioritize the buying of goods and services from companies based in Oregon. The Grow Oregon Council bill (HB 2879) will help younger, smaller, local companies find new markets and new customers with sophisticated tools normally available only to larger businesses.
SB 944 will allow restaurant owners to purchase expensive specialty liquors by the bottle rather than buy the case, which is more cost effective. I thank Tobias Hogan of EaT: An Oyster Bar on N. Williams for bringing this to my attention.
HB 2960, the Governor's Cool Schools bill, will make low-cost loans available to school districts for energy efficiency retrofits and upgrades, paid for with future energy savings.
Rep. Lew Frederick passed HB 3325, making it easier to clean up polluted properties.
The Bottle Bill, HB 3145, added more types of containers. It shifted the location of redemption centers. It increased the current nickel deposit to a dime if redemption rates fall below 80 percent two years in a row.
SB 827 provided protections for those in foreclosure. It passed my committee and the Senate, but was never scheduled for a hearing in the House Rules Committee. However, work surrounding wrongful foreclosures is not over. My committee will be studying whether or not Oregon should become a judicial foreclosure state in the coming months.
Funding for Project Clean Slate was continued and more people in our neighborhood will be able to find work because of it. For more information you can visit their website at
www.projectcleanslate.com.
Healthcare
Progress made. More work to do.
The health reform package, passed by the Oregon Legislature in 2009, covers an additional 80,000 Oregon kids and 35,000 adults. This increased coverage should have meant lower premiums for small businesses and those who already have insurance, since fewer people have been receiving uncompensated care in Oregon's emergency rooms and more people have had access to primary and preventive care.
Lower premiums, however, have not occurred. Oregon's commercial insurance carriers, with few exceptions, are continuing to increase premiums exponentially for small businesses and individuals.
That's why my office worked to create a coalition to put more teeth into the state's health insurance rate review process to make health insurance companies justify their premium increases. (see update below, Health Insurance Rate Review).
This session, the Oregon Legislature passed the Health Care Exchange (SB 99) and the Health Care Transformation bills (HB 3650) with bipartisan support. The exchange will provide a portal for small businesses and individuals to compare health care plans. The transformation bill creates a blueprint for a new delivery system that will provide care to Medicaid beneficiaries through locally accountable coordinated care organizations (CCOs) and global budgeting, rather than through traditional fee-for-service reimbursements. The key challenge for the legislature will be to operationalize the Medicaid transformation bill in a way that improves health outcomes. Unfortunately, I don't anticipate the bill will save much money for at least three years.
I was pleased we passed SB 433, which closes a loophole in Oregon's Breast and Cervical Cancer Program so that women who are diagnosed with breast and cervical cancer outside of the Program - say, through their family physician - are still eligible for treatment through the Oregon Health Plan.
One of the key disappointments of the session was the failing of SB 97 on the House floor due to Republican opposition. It was exciting to witness so many people and groups united to improve health outcomes through cultural competency. We will work to pass this important legislation in future sessions.
Additionally, the Senate passed SB 858, which would require insurers to reimburse Nurse Practitioners in independent practice the same rate as physicians when they provide the same services as physicians. It died in the House.
Schools and education
We secured $170 million more than the Governor's budget
K-12 funding is a top priority. In the 2007 session, the legislature delivered the best K-12 budget in over a decade. It was an important step in repairing Salem's years of neglect and harm done to Portland's kids and schools. This session, with a $3.5 billion shortfall in state revenue, I vowed to put kids first and maintain a full school year, with reasonable class sizes and well-trained teachers, by any means necessary.
We could no longer afford to allow big corporations to avoid carrying their share of the burden. That's why we executed sunsets on corporate tax loopholes and passed sensible limits on the Business Energy Tax Credit (BETC). We continued some reasonable sentencing reforms in SB 730 that saved over $10 million for K-12 education.
Despite a 20% shortfall in state revenue, we focused our priorities and passed a $5.73 billion K-12 budget, which was $170 million more than the Governor's budget originally proposed.
I voted against several bills that will hurt Portland Public Schools including bills to expand virtual public schools (HB 2301) and a bill to ease inter-district transfers (HB 3681). I will monitor these laws closely and look to modify them in future sessions if they have the negative impact I expect.
The Senate also passed HB 3471, which will provide a college education for foster kids. As foster parents, spouse Shelda Holmes and I were thilled that we passed this bill.
While SBs 909 (establishes the Oregon Education Investment Board) and 242 (creates the Higher Education Coordinating Commission) passed, SB 742 (tuition equity) died in the House after passing the Senate.
Bills that didn't pass
I'll be working on these next session
Each session, thousands of bills are introduced. Few become law. Highlighted below are some key bills that didn't succeed, but will come back next session:
- SB 889 / HB 3452: My committee introduced the State Bank Bill in the Senate, while the Committee on Revenue introduced it in the House. It was frustrating to have this concept get so far, and then stall in the final days of session. I look forward to working on this bill in the 2012 session.
- SB 695: The Senate Democrats have vowed to continue the fight to pass BPA-free legislation.
- Senate Memorial 1: This memorial encourages President Obama's administration and Congress to pass the TRADE Act - a fair trade act that will require tough international environmental and labor standards. I had bipartisan support this session, and will bring it back with bi-partisan support in the next legislative session.
- SB 667: This is a bill that my office has worked on for several years with Sal Kadri, the President of ValuCad, a minority-owned drafting company. It is a classic small business protection issue that is important to small minority-owned drafting and engineering firms. DAS guidelines on indefinite quantity contracts make it virtually impossible for these small firms to obtain state work. This bill addresses that issue.
- SB 41: This bill would have brought much needed change to public records laws in Oregon. Along with Senator George's office, my staff worked closely with interested parties to try and find a reasonable middle ground. This bill stalled in the Senate Rules Committee. I anticipate another attempt at this bill during the 2012 session.
Holding office hours most Wed. mornings at Pattie's Home Plate in St. Johns
Being accessible and delivering real results
I'm holding office hours at Pattie's Home Plate Cafe at 8501 N. Lombard in St. Johns on most Wednesdays from 7:30 a.m. to 10:00 a.m. for the next several months. Please call my office at 503-231-2564 or email sen.chipshields@state.or.us to schedule a time to share your ideas and concerns.
I will hold similar hours in the Cully neighborhood in the months ahead.
Update: Health Insurance Rate Review
Making health insurance companies justify their premiums
The Oregon Senate passed a bill that would require health insurers to alert policyholders when rates increase, under certain conditions. Senate Bill 718 would also require the Oregon Insurance Division (OID) to post online detailed explanations of their approval of rate hikes. After a public hearing in the House Health Care Committee, the bill succumbed to insurance industry pressure and did not move.
This bill was part of a package of bills that would have made health insurance companies justify their premium increases. SB 717, which would require a public hearing by the Oregon Insurance Division for health insurance rate increase requests over 7% and that affect more than 1,000 people, had a good public hearing in the Ways and Means subcommittee. Unfortunately, it remained there until we adjourned. Another bill, SB 719, would have brought insurance companies under the Unlawful Trade Practices Act.
These bills were largely the product of work done by the
Reasonable Insurance Premium Coalition, a group of small business owners and lawyers familiar with the Public Utility Commission process. Although this package of bills did not become law, pressure exerted on the Oregon Insurance Division and insurance companies, particularly Regence, was helpful in bringing more scrutiny and lower rates. I'm confident that the Oregon Insurance Division would not have scheduled a rare public hearing on the proposed 22.1% rate increase by Regence were it not for the pressure exerted by small business owners across the state in my committee.
These issues are too important to small business to have happen behind closed doors. I will continue to work with the Reasonable Insurance Premium Coalition and other impacted people to change the way rates are set for individual and small business health insurance.
Below are links to editorials in support of these bills, as well as an article about the fight to bring health insurance rates under control:
Community Resources
State and local information for you to use and pass along
Below are just a few links that I hope you'll find useful. If you have questions about state agencies or need assistance in a matter, feel free to give my office a call or send an email, and my legislative aide, MaryAlecia, will be happy to assist you in whatever way she can.
- Need help finding assistance? 1-800-SAFE-NET (1-800-723-3638), a project of 211info, is a toll free number which connects Oregonians with helpful resources in their local area.
- St. Johns Neighborhood Association - sign up for their free newsletter! They have lots of good information about community activities, food pantry locations and ways to get involved:
http://www.stjohnspdx.org/
- Portland Parks and Rec offers hundreds of activities throughout the city, both educational and just plain fun:
http://www.portlandonline.com/parks/
- WorkSource Oregon helps job seekers find work and offers important links to information about unemployment insurance:
http://www.worksourceoregon.org/
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phone:
(503) 231-2564 - district office
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I'm holding my meetings at
Pattie's Home Plate, 8501 N. Lombard in St. Johns, most Wednesdays from 7:30 to 10 AM, by appointment only. Please give my office a call at 503-231-2564 or send an email to sen.chipshields@state.or.us.
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