2014 OBA GOVERNMENT AFFAIRS UPDATE Presented by: Kevin T. Christiansen OBA Government Affairs Director

2014 OREGON LEGISLATIVE SESSION In 2014 Oregon held its second constitutionally authorized, even-year session. The session began on February 3rd and adjourned March 7. Short sessions were originally sold to voters as necessary to address budget matters and emergencies In reality these sessions have become very political In many cases the short session does not allow adequate time for proper vetting of bills Reform has been discussed but there is a lack of political will to change The Governor’s Office is currently held by Democrat John Kitzhaber. The Oregon House of Representatives is controlled by Democrats 34 to 26. The Oregon Senate is also controlled by Democrats 16 to 14.

Bills, Resolutions & Memorials … Oh My! More than 250 bills were introduced during the 2014 legislative session. The following is a small sample of the key bills with potential impact on the banking industry: Passed Limitations on Bad Faith Patent Infringement Claims (SB 1540) Killed, But Likely Back in 2015 Payoff Letter Content Requirements (HB 4033) Convenience Check Legislation (HB 4083) Finanical Aid Regulation (HB 4102) Third Party Enforcement of Tax Liens (HB 4112) Class Action Modifications (HB 4143) Work in Progress UCC Article 9 Financing Statements and Identification of Debtor (SB 1552)

But Wait, There’s More: A variety of big policy proposals that were discussed, but did not pass in February (but could be – or will be – back in 2015): Recreational Marijuana (initiative likely to qualify for November ballot) The Columbia River Crossing Bridge A Publically Run Retirement Savings Program Cover Oregon Reform

2014 Election Cycle Federal Elections Senator Merkley & All 5 Members of Oregon’s House Delegation Are Up in 2014 Challenger Wehby could make the Merkley race competitive House seats likely safe for the incumbents Statewide Elections Governor Kitzhaber: Running for an Unprecedented 4th Term Oregon has not elected a Republican for governor since 1982 No Other Statewide Officeholders Up for Election

2014 Election Cycle (con’t) Legislative Races House of Representatives: All 60 Seats are Up in 2014 Democrats hold a four seat majority and will face tough challenges to retain those seats Can Republicans gain seats in Portland suburbs to narrow the margin? Senate: 15 of 30 Seats Up in 2014 Senate races are where the action will be 16 to 14 margin means business friendly Democrats have power – will it continue? 5 to 7 races will likely determine the outcome

Burning Questions for 2015 Who will win control of the Governor’s Office and Legislature in November? Will the political environment continue to improve for the banking industry? Will Oregon voters approve the recreational use of marijuana? Is tax reform on the agenda for 2015 in Oregon? Will the economy continue to improve?

Stay Engaged and Let Your Voice be Heard!!! How You Can Help: Give to BankPAC Participate in Grassroots Be active in your Bankers Association THANK YOU!