HB 4034 will improve conditions for sub-contractors to get paid

SALEM – A bill that makes several revisions to the public construction law that oversees requirements between a contractor and a first-tier subcontractor received unanimous support in the Senate this morning.

House Bill 4034 ensures that contractors can’t use paper work changes as a reason not to pay subcontractors in a timely fashion. The new law will require that subcontractors be notified of changes in invoicing procedures 45 days in advance and requires owners and upstream contractors to provide copies of new forms they will use.

“Prompt payment keeps living-wages flowing,” said Senator Chip Shields (D-Portland), who worked on similar legislation during the 2011 Session. “HB 4034 presents a common-sense, accountable solution that will help small businesses and make sure that funds spent on public projects are helping to create jobs.”

HB 4034 also increases penalties for late payments on public construction projects. Instead of indexing payment penalties to three times the discount rate on 90-day commercial paper, which presently sits at 0.45 percent a year, the bill establishes a flat rate of nine percent.

“Many first-tier subcontractors are small, locally-owned businesses,” said Senate Majority Leader Diane Rosenbaum (D-Portland). “This bill will help make sure that these small businesses are getting paid on time, allowing those small business owners to make payroll and pay other bills.”

The bill now goes to the Governor for his approval.

SB 1556 gives state & local agencies greater flexibility to buy in U.S.

SALEM – The Senate unanimously approved legislation this morning that will allow state agencies and local governments to give greater preference to American products when making orders for transit vehicles. SB 1556 has the potential to help U.S. companies that make buses, ferries, and streetcars – like United Streetcar in Clackamas County, the only modern streetcar manufacturer based in the U.S.

“The growth of companies like United Streetcar can have ripple effects throughout Oregon’s economy, benefitting local manufacturers and creating jobs down the supply chain,” said Senator Laurie Monnes Anderson (D-Gresham), chief sponsor of the bill. “Oregon’s communities deserve the opportunity to invest more of their public transit funds in American jobs as they see fit.”

Because of Federal rules, if an agency or local government wishes to give a preference to a bidder whose vehicle has more U.S.- made content than the 60 percent currently required by federal standards, the agency needs to be authorized to do so in statute to ensure eligibility for federal funds. SB 1556 is a permissive bill and does not impose a new mandate on local transit agencies. Instead, SB 1556 gives Oregon’s communities greater control over how their public resources are spent and provides transit agencies with the opportunity to contribute further toward the creation and ongoing sustainability of good, well-paying jobs in Oregon and nationwide.

“Mills Innovations, a small employer in Junction City, is just one example of a company that can be helped down the supply chain by legislation like SB 1556,” said Senator Chris Edwards (D-Eugene). “Their work with United Streetcar is revitalizing their previously struggling business. By enabling greater latitude for contracting, SB 1556 helps encourage growth in domestic manufacturing.”

The bill now goes to the House for consideration.

Two bills will help Oregonians struggling to keep their homes

SALEM – With the foreclosure crisis continuing to hit Oregon’s middle class families hard, the Senate took action this morning on two priority bills that will help homeowners who are facing foreclosure. The bills, Senate Bills SB 1552 and SB 1564, received bipartisan support and now head to the House for consideration.

“Helping homeowners across Oregon who are struggling to stay in their homes should be one of the most important priorities for the Legislature during this short session,” said Senate Majority Leader Diane Rosenbaum (D-Portland). “Middle class families are counting on us. They are out of time and losing their homes. We must act to give them a fair opportunity to keep a roof over their head. Both of these bills will provide meaningful and fair help for homeowners who are struggling to pay their mortgage in these tough economic times.”

SB 1564 would eliminate the dual-track process in which banks that are in the process of negotiating a mortgage modification with a homeowner are simultaneously pursuing foreclosure. SB 1552 is based on pre-foreclosure mediation programs that have proved successful in 21 other states. The bill would allow homeowners to meet with their lender in the presence of a neutral third party before a lender can proceed with a foreclosure sale.

“SB 1552 is a very simple approach that asks that lenders to sit down and talk to homeowners and explore other options before homeowners lose their homes,” said Senator Lee Beyer (D-Springfield), chief sponsor of the bill. “This is meaningful reform that will make a difference for Oregonians who are desperate to work with their lenders and find a way to keep their home.”

Oregon has continued to suffer from the foreclosure crisis. Despite a nearly 40 percent drop in foreclosure filings last year, news reports indicate that foreclosures are expected to increase in 2012 as lenders process foreclosures that had been caught in legal uncertainty. Through the second quarter of 2011, 38,176 Oregon homes were in foreclosure or seriously delinquent, and one of eleven Oregon homeowners were in foreclosure or behind on their payments.

“The legislation before us today will go a long way toward finally plugging the heavy flow of foreclosures that have stripped our state of prosperity and security for far too long,” said Senator Laurie Monnes Anderson (D-Gresham). “Every loss of a home from foreclosure is a tragedy, but for a family to lose a home that could have been saved through mediation or other means is worse than a tragedy: it is an injustice that damages whole communities and creates a major drag on our state and local economies.”

During the 2011 session, Senate Democrats took the lead on foreclosure issues, passing SB 827. That bill, similar to SB 1564 which passed today, was never scheduled for a hearing in the House. SB 1564 prohibits a foreclosure sale when a homeowner is actively engaged in mutual negotiations or in compliance with a modification agreement.

“Despite promises to improve practices, we have seen continued violations, one story echoing another as middle class homeowners who are struggling to hang on to their homes have gotten caught in a black hole of lost files and misinformation,” said Senator Alan Bates, who carried SB 1564 on the floor today. “These are middle class Oregonians engaged in good faith foreclosure avoidance negotiations who end up foreclosed on without notice – sometimes just when they think they have reached an agreement to modify their loan. They deserve better,”

Both bills now go to the House for consideration.

“Facebook bill” will give Oregon another tool to attract business to state

SALEM – The Oregon Senate approved legislation this morning that quickly responds to concerns of some large data centers located in enterprise zones. SB 1532 clarifies in statute that Facebook’s Central Oregon data center is not currently subject to central assessment, allowing Crook County and Facebook to continue honoring the agreement that brought the billion dollar company and over 55 permanent jobs to central Oregon.

“SB 1532 stabilizes Oregon’s property tax laws with respect to enterprise zones. Qualifying businesses will have the certainty of knowing that their tax rates will remain consistent as long as the enterprise zone criteria are maintained,” said Senator Ginny Burdick (D-Portland), chair of the Senate Finance and Revenue Committee. “This sends an important signal to current data centers and those looking to locate in Oregon: we won’t change the rules on you.”

In 2010, Facebook opened a data center in Prineville, Oregon located within an enterprise zone, with the understanding that the company would be taxed under the enterprise zone tax structure. However, in 2011, the Department of Revenue determined that Facebook met the definition of a communications company, dramatically changing the assessment mechanism used to determine Facebook’s tax liability to the state.

“Our laws do not always keep up with the fast-changing world of technology,” said Senator Mark Hass (D-Beaverton). “The concerns Facebook raised in Central Oregon give us an opportunity to make a small but important change that will allow the state to stay competitive while attracting additional high tech companies to Oregon.”

SB 1532 now goes to the House of Representatives for consideration.

SB 1555 requires schools to develop policies prohibiting intimidation

SALEM – Legislation that would put Oregon amongst the leading states that have proactive school policies regarding bullying and cyber bullying was approved in the Oregon Senate this morning. Introduced by Senator Joanne Verger (D-District 5), SB 1555 defines “cyber bullying” and directs school districts to come up with specific policies to deal with this troubling issue affecting Oregon youth.

“With modern technology, cyber bullying can lead to non-stop harassment for some children, during school hours and after,” said Verger, who carried the bill on the floor. “Senate Bill 1555 would create an active approach to limiting the pain and suffering associated with cyber bullying that reach into the real world.”

Earlier this week in the Senate Education and Workforce Development Committee, Verger was joined in her testimony by students from across the state. One 15-year old Oregonian who recounted her experiences as a bullying victim gave very compelling testimony until she broke down in tears. Lincoln High School’s student leadership team also spoke, explaining their work to train staff about best practices for anti-bullying classroom environments, developing anti-bullying curriculum, peer mediation, and researching best practices for student led anti-bullying efforts.

“Students across the state are taking the lead on addressing cyber bullying but the Legislature needs to back them up. SB 1555 will help ensure students have safe learning environments in Oregon,” said Verger.

SB 1555 requires school employers to act as mandatory reporters of harassment, including cyber bullying. It also allows a student to report bullying anonymously to a mandatory reporter. The National Crime Prevention Council reports that bullying is a problem that affects half of all American teenagers.

The bill now goes to the House for consideration.