HOUSE COMMITTEE ON LAND USE AND REGULATORY FAIRNESS

 

 

June 07, 2001                                                                                                      Hearing Room 357

1:00 p.m.                                                                                                                       Tapes 25 - 27

 

 

MEMBERS PRESENT:         Rep. Max Williams, Chair

Rep. Kurt Schrader, Vice-Chair

Rep. Chris Beck

Rep. Betsy Close

Rep. Kathy Lowe

Rep. Karen Minnis

Rep. Susan Morgan

 

 

STAFF PRESENT:                 Virginia Gustafson Lucker, Counsel

Jane Bodenweiser, Committee Assistant

 

 

MEASURE/ISSUES HEARD:           HB 3998 Public Hearing

 

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 25, A

004

Chair Williams

Calls the meeting to order 1:20 p.m. and opens a public hearing on HB 3998.

HB 3998 PUBLIC HEARING

028

Rep. Morgan

Introduces the –2 amendments to HB 3998.  Gives a sectional analysis of the amendments (EXHIBIT A).

096

Chair Williams

Referring to page 3 line 24 through 30 asks about the limitation to dividing property.

101

Rep. Morgan

Explains the limitation as five acres or six parcels.

118

Vice Chair  Schrader

Asks for further explanation of dividing property.

129

Rep. Morgan

Replies that further discussion is needed on this subject.

149

Vice Chair Schrader

Discusses “tract” versus “parcel” and asks if there is a particular reason to use one over the other.

160

Rep. Morgan

Responds that a tract is defined as a platted sub-division that could introduce an element of confusion.

170

Vice Chair  Schrader

Expresses concern about the bill going beyond compensation issues to include building issues.

189

Rep. Morgan

Believes that Ballot Measure 7 refers to building as well as compensation.

238

Governor John A. Kitzhaber, M.D.

Governor, State of Oregon

Says the framework of his original principals is still the best way to respond to the issues raised by Ballot Measure 7.  Supports the establishment of a fund to compensate those who cannot build a home on their property due to the decision to preserve our farm and forestlands. Asks that the committee continue its work.

284

Vice Chair  Schrader

Asks for clarification of the framework he is referring to.

285

Gov. Kitzhaber

Replies that he is referring to the general principals as outlined at a previous meeting of this committee.

292

Rep. Beck

Asks about what date would be appropriate for an election if the committee is successful in putting something back on the ballot.

299

Gov. Kitzhaber

Replies that a general election would probably be most appropriate.

304

Vice Chair Schrader

Asks about his interpretation of compensation.

321

Gov. Kitzhaber

Says the committee needs to make that determination, but he would not support a waiver as compensation.

352

Rep. Lowe

Asks if it is possible to redefine “takings” compensation.

369

Gov. Kitzhaber

Says politically it would be difficult to use the existing judicial process.  Discusses the prospective and retrospective aspect of this legislation.

400

Rep. Morgan

Asks at what level of bureaucracy this issue should be administered.

413

Gov. Kitzhaber

Replies that retrospectively it should be administered at the state level, and prospectively there is more latitude.

443

Rep. Morgan

Asks why the retrospective aspect should be handled at the state level.

449

Gov. Kitzhaber

Replies that it should be based on the statewide land use laws.

TAPE 26, A

036

Rep. Close

Introduces the –6 amendments and gives a sectional analysis of the amendments (EXHIBIT B).

075

Chair Williams

Asks about section 2 page 2, beginning on line 22 of the amendments.

089

Harlan Levy

Oregon Association of Realtors

Explains the criteria described in the amendments and the investment-backed expectations.

 

124

Chair Williams

Reads line 15, page 2 and asks about the language needed in order for local government to make a determination about whether something is necessary to insure a fair and just system.

139

Jana Jarvis

Oregon Association of  Realtors

Replies that a determination would be made on a case-by-case basis.

 

163

Vice Chair Schrader

Asks about reference made to a Supreme Court Case.

165

Levy

Cites the Lucas v. South Carolina Coastal Commission case.


 

176

Vice Chair Schrader

Asks if the variance modification refers to use or something else.

180

Levy

Replies that the variance is to the criteria that results in undue hardship.

202

Vice Chair Schrader

Asks if businesses are defined as owners.

210

Levy

Replies that a business entity could be a current owner under this definition.

216

Vice Chair Schrader

Asks if there would be an objection to not including large timber companies as current owners for the purpose of Measure 7 compensation.

227

Levy

Replies that he does not have an answer at this time.

229

Rep. Lowe

Asks about out-of-state versus in-state owners.

243

Levy

Replies that it would be unconstitutional to differentiate.

258

Rep. Beck

Asks about the purchase of property with a zone restriction already in place.

268

Levy

Replies that the intention of this legislation is to get at someone’s reasonable investment-backed expectation.

292

Chair Williams

Asks how the court would determine what someone’s reasonable investment-backed expectation would be.

311

Levy

Replies that the court would look at the evidence.

323

Jarvis

Explains that the bill does not deal with speculation.

348

Rep. Lowe

Asks if easements and restrictions purchased by the government should run with the land.

361

Levy

Explains redressing a past wrong by the government.

391

Rep. Lowe

Asks what harm would be done by filing easements and restrictions in the deed.

403

Levy

Explains that it could make property unmarketable.

TAPE 25, B

010

Vice Chair Schrader

Asks about the Endangered Species Act.

017

Levy

Replies that is an optional program.

031

Chair Williams

Asks about a timeline for the retroactive portion of this legislation.

046

Levy

Replies that the statute of limitation deals with the proactive piece.

055

Chair Williams

Asks if it is intended that someone who is currently subject to a retroactive application would have a limited period of time to seek compensation.

058

Levy

Replies that is something to be considered.

081

Vice Chair  Schrader

Asks for clarification of section 5, page 5 of the –6 amendments.

089

Levy

Explains what this case-by-case analysis might be.


 

126

Chair Williams

Introduces the draft constitutional piece LC 4258-1 and gives a sectional analysis (EXHIBIT C).  Asks for discussion.

199

Rep. Lowe

Asks about the constitutional debt limitation.

207

John Phillips

Department of Revenue

Explains that Section11b of Article 11 of the Constitution is Measure 5, and 11 is Measure 50.

249

Chair Williams

Recesses the meeting at 2:10 p.m.

255

Chair Williams

Reconvenes the meeting at 2:40 p.m.

264

Dr. Matthew Gruber

Salem, OR

Testifies with regard to land use planning. Contends that the courts should be involved as little as possible.  Says that variances are more acceptable in many counties than compensation.

TAPE 26, B

067

Rep. Morgan

Asks for his comments on compensation and how intent of use would be established.

087

Dr. Gruber

Replies with examples of property tax statements and property sales.

123

Susan Dutton

Canby, Oregon

Testifies that she voted for Measure 7 and does not want compensation, but wants to be able to build a home on the 5-acre parcel she and her husband purchased in 1985.

 

160

Rep. Beck

Asks what the regulation is that is preventing the building of a home.

164

Dutton

Says it is under the $80,000 rule.

172

Rep. Beck

Asks if the property could be sold for the currently assessed value of $122,000.

185

Dutton

Replies, no.

197

Rep. Lowe

Asks why they didn’t build in 1985 when they had the permit to build.

200

Dutton

Says they were waiting for retirement.

207

Rep. Lowe

Asks when the zoning changed.

209

Dutton

Says it was not until March of this year, 2001.

300

David Hunnicutt

Oregonian in Action

Testifies in support of the –2 and –6 amendments.  Says that the two amendments could be melded together.  Talks about the purchase of stock versus real property as investments.

TAPE 27, A

035

Jeremy Wright

Director, Oregon Community Protection Coalition

Testifies with regard to increases of property value as opposed to decreases due to government regulation.

 

050

Rep. Lowe

Adjourns the meeting at 3:20 p.m.

 

 

Submitted By,                                                                           Reviewed By,

 

 

 

Jane Bodenweiser,                                                                    Virginia Gustafson Lucker,

Committee Assistant                                                                 Counsel

 

 

EXHIBIT SUMMARY

 

A – HB 3998, -2 amendments submitted by staff, dated 5/31/01, 5 pp

B – HB 3998, -6 amendments submitted by Rep. Betsy Close, House District 36, dated

       6/6/01, 3 pp

C – LC 4258-1, draft submitted by staff, dated 6/4/01, 2 pp