Informational briefing: lawmaker urges review of ‘semi‑independent’ agencies; DAS director highlights patchwork oversight

Representative David Gomberg and Betsy Heimholt, director of the Department of Administrative Services, gave an informational briefing to the House Committee on Commerce and Consumer Protection about a proposal to reconsider how semi‑independent state agencies are budgeted and overseen.

Gomberg said the Legislative Fiscal Office’s biannual report showed a group of agencies that do not follow the same budgeting and accounting process as other state agencies. He listed agencies that receive the biannual report — including the Appraiser Certification and Licensure Board, Travel Oregon (the Oregon Tourism Commission), the Oregon Patient Safety Commission, and several professional licensing boards — and said many are small but some handle substantial funds. Gomberg said his concern is accountability: semi‑independent agencies adopt internal budgets and, in some cases, hold funds outside of standard state accounts.

Betsy Heimholt, director of the Department of Administrative Services, told the committee that state practice is mixed: some agencies use state treasury banking and are subject to procurement, personnel, IT security and audit rules, while others are exempt from one or more of those requirements and may use private banks. "That patchwork of oversight laws just make[s] it enormously complex," she said, adding the complexity slows processes and reduces efficiency. Heimholt said any change should weigh each agency’s mission and unique needs.

Committee members asked whether the list Gomberg read was exhaustive; Gomberg said it was the set of semi‑independent agencies from which the legislature receives biannual reports. Members thanked presenters and chair adjourned the meeting.

What’s next: The briefing was informational. Gomberg said he and interested agencies will continue to work on the issue and may return with proposals.