Table of Contents 78th Oregon Legislative Session Overview . 1-3 Legislative Dashboard . 4-7 Legislation 2015 . 8-26 Selected News Coverage . 27-54 4000 Kruse Way Place Building 2, Suite 100 Lake Oswego, OR 97035 Telephone: 503-636-2204 Acronyms Found in this Report ABA Applied Behavior Analysis NP Certified Nurse Practitioner ACA Patient Protection and Affordable Care Act OAHHS Oregon Association of Hospitals and Health Systems ASC Ambulatory Surgery Center OBMI Oregon Board of Medical Imaging BON Oregon State Board of Nursing OEA Oregon Education Association CCO Coordinated Care Organization OHA Oregon Health Authority COHO Coalition for a Healthy Oregon OHLC Oregon Health Leadership Council COLA Cost of Living Adjustment PA Physician Assistant DCBS Department of Consumer and Business Services PERS Public Employee Retirement System DHS Department of Human Services PDMP Oregon Prescription Drug Monitoring Program HTPP Hospital Transformation Performance Program SEIU Service Employees International Union WWW.OAHHS.ORG | ii 78th Oregon Legislative Session t 6:04 p.m. on July 6th, the 78th Session of the Oregon Legislature adjourned “Sine Die” after 155 days of work. The 90 elected members of the Oregon Legislative AssemblyA convened the 2015 Legislative Session on February 2nd amid uncertainty around the strength of the Oregon economy, concerns regarding a looming Supreme Court decision on PERS reforms adopted by the legislature in 2013 and allegations of misconduct by Governor John Kitzhaber and First Lady Cylvia Hayes. Just 11 days after the start of session, Governor Kitzhaber announced his resignation and five days later, Kate Brown was sworn-in as Oregon’s 38th Governor. While most pundits expected chaos and a rough leadership transition to ensue, Governor Brown moved quickly to solidify her leadership team and to calm the waters within the Executive Branch. The 2015 Legislative Session was marked by sharp partisan disagreement over a number of policy issues and conflict between House and Senate Leaders who differed in personality, style and approach. 2015 LEGISLATIVE REPORT | 1 78TH OREGON LEGISLATIVE SESSION Key Influences on the 2015 Legislative Session Political Imbalance History tells us that legislatures that are more evenly divided of living adjustments (COLA) benefit for state employees. The between Democrats and Republicans tend to pass less PERS decision will impact all public employers including state controversial legislation and less legislation overall. Members agencies, municipalities, fire districts and schools. The increased of both parties have to put aside the far reaching parts of their costs will require increased revenue sources or cuts to services agendas in order to accomplish the basic work involved in in order to address them. The PERS decision had a limited balancing budgets and completing work in a timely manner. impact on the 2015 budget process and will have an even more Legislatures that are controlled too much by either party lack pronounced impact on future budgets. an important balance and alternative perspective. In 2015, Democrats control the House of Representatives by a 35 to 26 Revenue Forecast and the margin, the State Senate with a commanding 18 to 12 margin Personal “Kicker” and Governor Kate Brown is also a Democrat. While across the board Democrat control didn’t eliminate conflict and On May 14th, the official state revenue forecast revealed that disagreement between the House and Senate leadership, it did estimated revenue exceeded the threshold necessary to trigger result in the passage of a number of shared policy objectives. the personal kicker at approximately $477 million. These dollars will be returned to taxpayers as a credit on their 2015 tax returns PERS Decision (an average of $248 per taxpayer). The forecast also provided lawmakers with an additional $463 million in revenue for the At the end of April, the Oregon Supreme Court overturned a 2015-2017 budget. Of the additional $463 million, at least $105 series of Public Employees Retirement System changes that were million was immediately appropriated to K-12 education based approved by the Oregon State Legislature in 2013. The decision on the commitment the legislature made to share 40% of any resulted in a loss of millions of dollars that lawmakers expected new general fund revenue expected in 2015-2017 (40% of the to use to balance future budgets. The 2013 reforms reduced the $264.5 million). PERS liability for future pension payments by $5.3 billion with a majority of the savings coming from reductions to the cost Overarching Themes of the 78th Legislative Session Business During the 2015 Legislative Session, Democrat leadership need for critical road maintenance in large part to passage of pursued a progressive agenda focused on addressing social and a controversial low-carbon fuel standard bill within the first economic inequality under the banner of the “Fair Shot for All” two weeks of session. Negotiations started mid-session on campaign. Many of these priorities were opposed by the broader modifications to the low-carbon fuels standard that would business community including mandatory paid sick leave (SB remove the most offensive provisions and remove obstacles 454), ban the box (HB 3025), a mandatory state-run retirement to the transportation funding package. Ultimately a proposal savings plan for Oregon businesses (HB 2960) and increases was forwarded by the Senate Democrats, Republicans and the to the minimum wage (HB 2002). While efforts to increase Governor’s Office that raised 206 million ($33 million of which minimum wage failed, Democrats successfully passed the other would be bonded to create $400 million for major highway “Fair Shot” priorities. In addition, business interests failed to projects). However, significant pressure on House Democrats defeat a measure to reduce greenhouse gas emissions (SB 324) from environmental advocates, already touting the low-carbon that some believe will result in significant increases in fuel fuels standard as a major accomplishment, caused House prices due to the lack of known fuel additives necessary to meet leadership to oppose the plan. In the end, the transportation the blending requirements in the bill and the requirement that funding plan bill died in the Senate. fuel importers purchase reduction credits as an offset. Business interests also fought a host of measures designed to increase the Public Safety cost of business through taxes and fees and the elimination of A relentless number of tragic and troubling news stories business incentives through tax credits and other policies. regarding police officer conduct from around the nation had a profound impact on the perception of policing within the walls Transportation of the Oregon State Capitol during the 2015 Legislative Session. Despite apparent support for passage of a transportation This barrage of stories breathed life into bills dealing with funding package from a majority of Democrats and Republicans bias policing, deadly use of force, body-worn cameras, public in the House and Senate, the legislature failed to address the recording of police officers and grand jury recordation. While WWW.OAHHS.ORG | 2 78TH OREGON LEGISLATIVE SESSION none of these stories originated in Oregon, the political reality K-12 Education created a very challenging environment for policing advocates. Perhaps the most intense public safety policy debate during the Lawmakers approved a K-12 Education budget of $7.255 legislative session was over implementation of Ballot Measure billion early in April, a nine percent increase from the current 91 (marijuana legalization). A combined House and Senate two-year budget. Following the positive revenue forecast in committee was appointed to address a wide range of issues May, education received an additional $105 million based on related to marijuana including changes to the Oregon Medical contingency language included in the K-12 education bill. Marijuana Act, local government authority to regulate marijuana The increases in funding put pressure on other state budgets establishments, marijuana taxation, adjustments to criminal and were still not enough to satisfy the Oregon Education penalties, access to marijuana by youth, marijuana testing and Association and other education advocates who believe the regulation of grows and establishments. The Joint Committee system is funded inadequately. Future funding of education and on the Implementation of Ballot Measure 91 reached consensus other budget priorities will be in jeopardy in future biennium near the end of session on a HB 3400, an omnibus measure that due to the impact of the recent Supreme Court ruling that was passed in both chambers with significant support. overturned PERS reforms. Hospital Association Priorities Medicaid Funding Price Transparency Despite the disruption caused by the resignation of Governor During the 2015 Legislative Session, competing price Kitzhaber on February 18th, a Medicaid Funding Package was transparency measures pitted SB 900, a proposal submitted successfully negotiated by the end of the February and the by the Oregon Health Leadership Council against SB 891, policy measure to implement the package was passed by the a measure introduced by the Oregon State Public Interest legislature and signed by Governor Brown on March 23rd. Research Group (OSPIRG). Considered onerous and unfriendly The early resolution of the package was a departure from to consumers, SB 891 died in the Senate Healthcare