Bill Text: OR HB4176 | 2012 | Regular Session | Enrolled


Bill Title: Relating to counties in fiscal distress; appropriating money; and declaring an emergency.

Spectrum: Committee Bill

Status: (Passed) 2012-03-27 - Chapter 76, (2012 Laws): Effective date March 27, 2012. [HB4176 Detail]

Download: Oregon-2012-HB4176-Enrolled.html


     76th OREGON LEGISLATIVE ASSEMBLY--2012 Regular Session

                            Enrolled

                         House Bill 4176

Sponsored by COMMITTEE ON RULES

                     CHAPTER ................

                             AN ACT

Relating to counties in fiscal distress; creating new provisions;
  amending ORS 203.095 and 203.100; repealing ORS 203.095 and
  203.100; appropriating money; limiting expenditures; and
  declaring an emergency.
  Whereas counties that received federal payments pursuant to the
Secure Rural Schools and Community Self-Determination Act of 2000
(P.L. 106-393) are experiencing significant budget shortfalls
that compromise public health and safety, undermine funding for
county roads and exacerbate job losses; and
  Whereas it is in the best interest of the state to provide
counties with a tool that would facilitate a collaborative
process to identify solutions and mitigate the impact of the loss
of Secure Rural Schools and Community Self-Determination Act of
2000 funds; now, therefore,

Be It Enacted by the People of the State of Oregon:

  SECTION 1. ORS 203.095 is amended to read:
  203.095.   { - (1) If the governing body of a county or the
Governor believes that the county is in a state of fiscal
distress that compromises the county's ability to provide a
minimally adequate level of public safety services, the governing
body or the Governor may seek a declaration of a public safety
services emergency by requesting in writing that the Oregon
Criminal Justice Commission review and analyze public safety
services provided by the county. - }
   { +  (1)(a) The governing body of a county may seek a
declaration of a fiscal emergency by requesting in writing that
the Governor review and analyze state-required services provided
by the county if:
  (A) The governing body of the county believes that the county
is in a state of fiscal distress that compromises the county's
ability to provide a minimally adequate level, currently or
within the next fiscal year, of any service that a county is
required to provide by state law; and
  (B) For the fiscal year beginning July 1, 2007, the county
received federal payments pursuant to the Secure Rural Schools
and Community Self-Determination Act of 2000 (P.L. 106-393) in an
amount equal to at least 10 percent of the county's property tax
revenues, excluding bonds.
  (b) A county making a request under this subsection shall
include with the request an estimated amount needed to fund the
fiscal assistance board that would be established under

Enrolled House Bill 4176 (HB 4176-B)                       Page 1

subsection (4) of this section and the proposed sources of those
funds. + }
  (2) When a request for review of   { - public safety - }  { +
state-required + } services is made under subsection (1) of this
section, the   { - commission - }  { +  Governor + } shall:
  (a) Consult with the governing body of the county  { - , the
sheriff, the district attorney, judges - }  and other appropriate
county officials, with labor organizations representing county
employees and with other   { - public safety - }  stakeholders to
gather information regarding the current level of   { - public
safety - }  { +  state-required + } services provided by the
county; { +  and + }
  (b) Review and analyze   { - public safety - }  { +
state-required + } services provided in the county to determine
 { - , based on the guidelines established pursuant to subsection
(9) of this section, - }  whether the county is providing a
minimally adequate level of   { - public safety - }  { +
state-required + } services { + . + }  { - ; and - }
    { - (c) Report its findings and recommendation to the
Governor within 14 days after the request for a review is
made. - }
  (3) If the   { - commission - }  { +  Governor + } finds that
the county is providing { + , or within the next fiscal year will
be providing, + } a less than minimally adequate level of
 { - public safety - }  { +  state-required + } services,
 { - the commission shall recommend to the Governor that - }  the
Governor  { + shall + } declare a   { - public safety
services - }  { +  fiscal + } emergency for the county. The
 { - commission - }  { +  Governor + } shall   { - copy its
findings and recommendation - }  { +  provide notice of the
declaration + } to the Legislative Assembly and the governing
body of the fiscally distressed county.
  (4)   { - Upon receipt of the findings and recommendation from
the commission's review and analysis the Governor shall: - }
    { - (a) Review the findings and recommendation; - }
    { - (b) Within 14 days of receipt of the commission's
findings and recommendation, either issue the declaration of a
public safety services emergency, if the Governor determines that
the county's fiscal distress prevents the county from providing a
minimally adequate level of public safety services, or issue a
determination that the county's fiscal distress does not cause
the county to provide a less than minimally adequate level of
public safety services; and - }
    { - (c) - }  If the Governor issues the declaration of a
 { - public safety services - }  { +  fiscal + } emergency under
 { - paragraph (b) of this subsection, - }  { +  subsection (3)
of this section, the Governor shall + } establish a fiscal
 { - control - }  { +  assistance + } board, as described in ORS
203.100, for the distressed county.
  (5) The fiscal   { - control - }  { +  assistance + } board
shall meet with
  { - the governing body of the county, the sheriff, the district
attorney, judges and other - }  appropriate county officials,
 { +  including but not limited to members of the county
governing body, the county assessor, clerk, tax collector, court
administrator, district attorney and judges, + } with labor
organizations representing county employees, with other
 { - public safety - } stakeholders and with members of the
public to gain a fuller understanding of the county's fiscal
alternatives { + , service delivery alternatives + } and

Enrolled House Bill 4176 (HB 4176-B)                       Page 2

 { - public safety - }  service needs and shortcomings. The board
shall   { - propose to the governing body of the county - }  { +
consider and adopt + } a recovery plan designed to restore  { +
or sustain + } minimally adequate   { - public safety - }
 { + state-required + } services. As part of the
 { - proposed - }  recovery plan, the board may
  { - recommend that the governing body of the county - } :
  (a) Reallocate  { + county + } funds;
  (b) Cut  { + county + } services, lay off  { + county + }
employees or otherwise reduce  { + county + } expenditures;
  (c) Sell or lease real or personal property of the county;
  (d) Issue bonds { +  for the county + };
  (e) Renegotiate payment terms of the county's legal and moral
indebtedness;
  (f) Refer measures to the voters { +  of the county + };
  (g) Request an emergency election under ORS 203.085;
 { - or - }
   { +  (h) Enter into intergovernmental agreements or other
service delivery structures involving other public entities;
or + }
    { - (h) - }   { + (i) + } Authorize the state to take over
services as authorized by law   { - other than this section - } .
    { - (6) The governing body of the county shall approve or
reject the recovery plan proposed by the fiscal control board. If
the governing body: - }
    { - (a) Approves the recovery plan, the board shall provide
technical assistance in support of the governing body's
implementation of the plan. - }
    { - (b) Rejects the recovery plan, the board shall monitor
the governing body's efforts to restore minimally adequate public
safety services and, at the request of the governing body, shall
provide technical assistance in support of the governing body's
efforts to restore minimally adequate public safety services in
the county. - }
    { - (7) - }  { +  (6) + } The fiscal   { - control - }  { +
assistance + } board shall periodically update the Governor and
the Legislative Assembly from the time the board
 { - proposes - }  { +  begins its consideration of + } a
recovery plan   { - to - }  { +  for + } the fiscally distressed
county until the Governor declares the   { - public safety
services - }  { +  fiscal + } emergency terminated pursuant to
subsection   { - (8) - }  { +  (7) + } of this section.  { + The
update shall include a report on the costs of the fiscal
assistance board, the revenues used by the board to pay those
costs and the sources of the revenues so used. + } When the
fiscal
  { - control - }  { +  assistance + } board concludes that
minimally adequate
  { - public safety - }  { +  state-required + } services have
been restored  { + or sustained + } in the fiscally distressed
county, the board shall recommend that Governor terminate the
 { - public safety services - }  { +  fiscal + } emergency.
    { - (8) - }  { +  (7) + } The Governor shall declare the
 { - public safety services - }  { +  fiscal + } emergency
terminated when the Governor concludes that the fiscally
distressed county has restored  { + or sustained + } minimally
adequate   { - public safety - }   { + state-required + }
services in the county.

Enrolled House Bill 4176 (HB 4176-B)                       Page 3

   { +  (8) Any actions of the fiscal assistance board must
comply with a home rule charter adopted by the county under ORS
203.710 to 203.770. + }
    { - (9) The commission shall establish, by rule, public
safety services guidelines by which to identify the minimally
adequate level at which public safety services must be delivered
in a county. In establishing the guidelines, the commission shall
seek broad input from the governing body of the county, the
sheriff, the district attorney, judges and other appropriate
county officials, labor organizations representing county
employees, other public safety stakeholders and members of the
public, and take into consideration the population density,
geographic characteristics, historical crime rates and other
relevant factors in Oregon counties. The guidelines must provide
a basis for analyzing whether the county provides a minimally
adequate level of public safety services in the areas of: - }
    { - (a) County jail operations; - }
    { - (b) Law enforcement, investigation and patrol; - }
    { - (c) Community corrections; - }
    { - (d) Juvenile justice; - }
    { - (e) Emergency operations and emergency response; - }
    { - (f) Search and rescue operations; - }
    { - (g) Criminal prosecution; and - }
    { - (h) Court facility operations. - }
  SECTION 2. ORS 203.100 is amended to read:
  203.100.   { - (1) A fiscal control board established pursuant
to ORS 203.095 consists of three nonvoting ex officio members and
five appointed members who have knowledge of and experience with
public safety services and fiscal management as follows: - }
    { - (a) The Governor shall appoint three members. - }
    { - (b) The President of the Senate shall appoint one
member. - }
    { - (c) The Speaker of the House shall appoint one
member. - }
    { - (d) The Secretary of State, the State Treasurer and the
Director of the Department of Revenue shall serve as nonvoting ex
officio members. - }
    { - (2) A fiscal control board shall perform the functions
described in this section and ORS 203.095. - }
    { - (3) A majority of the members of the board constitutes a
quorum for the transaction of business. - }
    { - (4) Official action by the board requires the approval of
a majority of the members of the board. - }
   { +  (1)(a) A fiscal assistance board established pursuant to
ORS 203.095 consists of:
  (A) Five members appointed by the Governor who have knowledge
of and experience with county services and fiscal management;
  (B) All members of the governing body of the county, who serve
as ex officio members;
  (C) The sheriff for the county, who serves as an ex officio
member, and who:
  (i) Is a voting member for matters concerning public safety
services; and
  (ii) Is a nonvoting member for all other matters;
  (D) The Secretary of State, the State Treasurer and the
Director of the Department of Revenue, who serve as nonvoting ex
officio members;
  (E) One nonvoting member appointed by the President of the
Senate; and

Enrolled House Bill 4176 (HB 4176-B)                       Page 4

  (F) One nonvoting member appointed by the Speaker of the House
of Representatives.
  (b) Prior to making appointments under this section, the
Governor shall consult with the President of the Senate and the
Speaker of the House of Representatives for the purpose of
receiving their recommendations for appointments.
  (2) A fiscal assistance board shall perform the functions
described in this section and ORS 203.095.
  (3) A majority of the members of the fiscal assistance board
who are appointed by the Governor and a majority of the county
officials listed in subsection (1)(a)(B) and (C) of this section
must be present to constitute a quorum for the transaction of
business. A meeting of the board constitutes a meeting of both
the board and the county governing body and requires appropriate
meeting notices and adherence to public meeting laws under ORS
192.610 to 192.690.
  (4) Official action by the fiscal assistance board requires the
approval of:
  (a) A majority of the members of the board who are appointed by
the Governor; and
  (b) A majority of the county officials listed in subsection
(1)(a)(B) and (C) of this section. + }
  (5) The  { + fiscal assistance + } board shall elect one of its
members to serve as chairperson.
  (6) Appointed members  { + of the fiscal assistance board + }
serve at the pleasure of the appointing authority for a term of
four years, subject to subsection (10) of this section.
  (7) If there is a vacancy for any cause, the appointing
authority shall make an appointment to become immediately
effective.
  (8) The  { + fiscal assistance + } board shall use the services
of permanent staff of the offices of the Governor, the Secretary
of State and the State Treasurer, and the Department of Revenue
to the greatest extent practicable. However, the Governor, the
Secretary of State and the State Treasurer may agree to employ
individuals to support the performance of the functions of the
board, if necessary, and the employing state official shall fix
the duties and amounts of compensation of these employees.
  (9) All agencies of state government, as defined in ORS
174.111, are directed to assist the  { + fiscal assistance + }
board in the performance of its duties and, to the extent
permitted by laws relating to confidentiality, to furnish
information and advice as the members of the board consider
necessary to perform their duties.
  (10) A fiscal   { - control - }  { +  assistance + } board
terminates when the Governor declares that the   { - public
safety services - }  { +  fiscal + } emergency declared under ORS
203.095   { - (4) - }  has ended.
  SECTION 3.  { + (1) At least one-half of the costs of
administering a fiscal assistance board established under ORS
203.095 must be paid by the county that has been declared to be
in fiscal distress. The county shall deposit the moneys necessary
to pay the county's share in the fund established under
subsection (2) of this section. The remainder of the costs of
administering a fiscal assistance board established under ORS
203.095 shall be paid from moneys appropriated from the General
Fund or allocated by the Emergency Board to the Oregon Department
of Administrative Services.
  (2) The Fiscally Distressed Counties Fund is established,
separate and distinct from the General Fund. Interest earned by

Enrolled House Bill 4176 (HB 4176-B)                       Page 5

the Fiscally Distressed Counties Fund shall be credited to the
fund. The Fiscally Distressed Counties Fund shall consist of
moneys deposited by counties under subsection (1) of this section
and moneys contributed to the fund from any other source, public
or private. Moneys in the Fiscally Distressed Counties Fund are
continuously appropriated to the Oregon Department of
Administrative Services for the purpose of establishing and
administering fiscal assistance boards for fiscally distressed
counties under ORS 203.095.
  (3) If more than one county has been declared by the Governor
as being in fiscal distress, the Fiscally Distressed Counties
Fund shall be divided into separate accounts holding moneys
dedicated to the administration of the fiscal assistance board
for each county.
  (4) When the Governor declares that the fiscal emergency for a
county has ended, all moneys remaining in the Fiscally Distressed
Counties Fund that have been deposited for the purpose of
administering the fiscal assistance board for that county must be
returned, on a pro rata basis, to the county. + }
  SECTION 4.  { + Notwithstanding any other law limiting
expenditures, the amount of $1 is established for the biennium
beginning July 1, 2011, as the maximum limit for payment of
expenses from fees, moneys or other revenues, including
Miscellaneous Receipts, but excluding lottery funds and federal
funds, collected or received by the Oregon Department of
Administrative Services from the Fiscally Distressed Counties
Fund. + }
  SECTION 5.  { + ORS 203.095 and 203.100 are repealed on January
2, 2014. + }
  SECTION 6.  { + If ORS 203.095 and 203.100 are repealed, any
moneys remaining in the Fiscal Distressed Counties Fund on
January 2, 2014, shall be returned as prescribed in section 3 (4)
of this 2012 Act. + }
  SECTION 7.  { + This 2012 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2012 Act takes effect on its
passage. + }
                         ----------

Passed by House March 2, 2012

    .............................................................
                         Ramona Kenady Line, Chief Clerk of House

    .............................................................
                                    Bruce Hanna, Speaker of House

    .............................................................
                                   Arnie Roblan, Speaker of House

Passed by Senate March 5, 2012

    .............................................................
                              Peter Courtney, President of Senate

Enrolled House Bill 4176 (HB 4176-B)                       Page 6

Received by Governor:

......M.,............., 2012

Approved:

......M.,............., 2012

    .............................................................
                                         John Kitzhaber, Governor

Filed in Office of Secretary of State:

......M.,............., 2012

    .............................................................
                                   Kate Brown, Secretary of State

Enrolled House Bill 4176 (HB 4176-B)                       Page 7
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