If A Top Lawyer Can be Confused, the Law is Confusing

Chuck Sheketoff

As usual, Steve Novick has done a nice job explaining the confusion that HB 2414 aims to dispel. And it’s not just OBA who’s gotten it wrong, as Steve notes. The confusion runs so deep that even a very prominent lawyer got it wrong.

In September 2003, in a speech to the Oregon State Bar, Governor Kulongoski — a former Attorney General and former Supreme Court Justice — spoke about a referendum of a tax measure that was headed to the ballot.

He urged the OSB and its members not to sign the referendum petition and to vote “no” if it made it on the ballot.

And that’s the problem with that HB 2414 fixes. Under the law then and now voters have to vote “yes” on referenda to sustain the action being challenged.

And if former Attorney General and former Supreme Court Justice Ted Kulongoski can get it wrong (and he did), that’s proof that the law is so confusing that it needs to be fixed.

That’s why HB 2414 should be enacted.

Relevant text from the Kulongoski’s speech after the jump.

Unfortunately, opponents of the surcharge are already collecting signatures to place it on the ballot. A coalition of parents, businesses, teachers, clergy and community leaders are working to defeat the referendum. This is going to be a tough sell. We all saw what happened in Alabama. But I am here to challenge you to be part of the coalition that understands the risk to our economy if the referendum succeeds.

To begin with, basic services – including education, health care, environmental protection, and workforce training – will be seriously compromised. Just as important, Oregon schools and businesses cannot function in a perpetual state of uncertainty. But that’s what they face without a stable, balanced and adequate state budget. So this upcoming referendum is vital to Oregon’s future.

And keep in mind that the referendum is not just about the surcharge. It will also do away with the cigarette tax and the corporate minimum tax. Do we really want to go back to the days when companies like Enron paid 10-dollars in taxes? And are we really prepared to throw 85,000 people off the Oregon Health Plan? Repeal of the cigarette tax will do just that. Which means those 85,000 Oregonians will be getting their health care in expensive emergency rooms – paid for by you and your clients through higher premiums for private insurance.

Let me make one other point about what will be lost if this referendum succeeds. I tend to look at these issues through an economic prism. What do we need to do to create more jobs? What do we need to do to attract new businesses? And, yes, what do we need to do to keep commerce running smoothly in Oregon?

One thing we need to do is have a functioning court system. As I said, businesses need certainty and predictability. That includes a quick way to settle disputes. Lawyers sometimes fail to recognize the importance of a well-funded court system to our economy. First, an unstable court system makes it difficult to attract and retain the best judges. And second, when courts are closed – or not taking civil cases because their short workweek means only criminal cases can be heard – commercial disputes go unresolved. That hurts your private sector clients – and you!

The backers of this referendum do not like to talk about how they would balance the budget if the surcharge is defeated. But I will. Not only will there be major cuts in services, there will be a return to the discredited policy of emptying every reserve fund and mortgaging our children’s future through borrowing. It’s wrong. It’s shortsighted. And it has Oregonians across this state worried and ready to say: Stop! Enough! Oregon families and businesses deserve better!

I’ve said countless times – including today – that I’m born optimist. But I’m also a born realist. I used to box in the Marines. And when I would come out of my corner and look at my six foot opponent coming out of his corner, I wouldn’t be thinking: Hey, no problem! I’d be thinking: Hey, I’ve got a fight on my hands. Well now, collectively, we’ve got a fight on our hands. Our opponents have a big purse and – I can’t resist saying it – a very mean right hook.

But we can win if we work together. So I repeat: I need you to join the coalition that is fighting this referendum. The Oregon State Bar Association has one of the most powerful and respected voices in the state. And it’s not just your own voice. Bar members represents large businesses, small businesses, entrepreneurs, non-profits, farmers, academics, loggers, public employees, and just average Oregon families trying to build a better life for their children.

So you can be strong advocates for defeating the referendum. For fiscal sanity. And for not forcing cuts that the Legislature over nine months was unwilling – and wise – not to make.

In addition to supporting a no-vote on the referendum. . .

By Chuck Sheketoff June 26, 2009