SENATE COMMITTEE ON NATURAL RESOURCES, AGRICULTURE, SALMON AND WATER

February 12, 2001 Hearing Room B

8:00 AM Tapes 28 – 29

MEMBERS PRESENT: Sen. Ken Messerle, Chair

Sen. Frank Shields, Vice-Chair

Sen. Bill Fisher

Sen. Jason Atkinson

Sen. Roger Beyer

Sen. Ryan Deckert

VISITING MEMBER PRESENT:

Sen. Joan Dukes

MEMBER EXCUSED:

Sen. Ginny Burdick

STAFF PRESENT: Judith Callens, Committee Administrator

Patricia Nielsen, Committee Assistant

MEASURE/ISSUES HEARD: SB 481 – Work Session

SB 62 – Work Session

SB 517 – Public Hearing

SB 518 – Public Hearing

Introduction of Committee Bills – LC 3265

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 28, A
005	Chair Messerle	Opens meeting at 8:05 a.m. Opens work session SB 481.
SB 481 – Work Session
010	Judith Callens	Committee Administrator. Presents bill.
015	Chair Messerle	Asks for discussion.
020	Sen. Atkinson	MOTION: Moves SB 481 to the floor with a DO PASS recommendation.
025		VOTE: 5-0 AYE: In a roll call vote, all members present vote Aye. EXCUSED: 2 – Burdick, Deckert
030	Chair Messerle	The motion CARRIES. Sen. ATKINSON will lead discussion on the floor.

030	Chair Messerle	Closes work session on SB 481. Opens work session on SB 62.
SB 62 – WORK SESSION
035	Callens	Presents bill, as well as –1, –2, and –3 amendments.
055	Chair Messerle	Adds that Ken Rocco of Legislative Fiscal has brought up some changes. Fees should go through the budget process, to allow the legislature to restrict the use of the funds.
070	Vice-chair Shields	Asks about the cause for the measure.
080	Sen. Fisher	Comments that maintenance was paid for from other sources. This fund was used for payroll and other activities. The money was accounted for.
090	Sen. R. Beyer	Asks about how much money is in the account.
100	Callens	Explains.
110	Ken Rocco	Legislative Fiscal Office (LFO). Describes the account.
115	Vice-chair Shields	Asks if the money was there to maintain hatcheries, how could it be used if being borrowed.
120	Rocco	Explains.
130	Chair Messerle	Clarifies funds were used for maintenance not hatcheries.
135	Rocco	Responds.
140	Chair Messerle	Points out that the legislature can designate on what projects the funds are to be spent.
145	Rocco	Explains.
148	Vice-chair Shields	Asks how the account will earn interest if the funds are borrowed away from it.
160	Chair Messerle	Confirms that is the problem to be corrected.
165	Vice-chair Shields	Asks how and why Oregon Department of Fish and Wildlife (ODFW) will be allowed to borrow from the fund.
170	Rocco	Elaborates.
180	Vice-chair Shields	Inquires whether there is anything in the bill which would stop the agency from borrowing from the fund and holding the loaned money out for the entire biennium.
185	Rocco	Responds.
190	Sen. Fisher	Draws analogy of a business borrowing funds from an account with a surplus to meet a short-term shortfall in another account.
210	Rocco	Confirms ODFW has accounted for the borrowed funds.
215	Sen. Fisher	Asks whether the $250,000 infusion is to accelerate the payment due, or to increase endowment fund to generate interest.
220	Rocco	Answers.
230	Sen. Fisher	Surmises this is an increase to the endowment fund itself, so there is more future interest.
235	Vice-chair Shields	States that there are strict rules about borrowing from an endowment for more than two months. Comments that ODFW borrowed millions before, and the bill doesn’t stop agency from borrowing at the beginning of biennium and not repaying until end.
255	Rocco	Describes treasury rules.
260	Chair Messerle	Recognizes Sen. Dukes.
270	Sen. Dukes	Comments on the bill. Hatcheries were in declining shape, and no money was funded to upgrade facilities. The endowment account was created so interest could be used to maintain and upgrade hatcheries. The fund hasn’t been used for that purpose, but has been borrowed from for other purposes. The fund can be of assistance to hatcheries, and it is the only money available for that purpose. The committee should not convert it into something else, and should not allow ODFW to borrow from it.
320	Chair Messerle	Reviews legislature’s authority over the budget process.
330	Sen. Dukes	Expresses reservations about that process.
335	Sen. Fisher	Suggests that it makes no difference where the interest comes from, as long as proper accounting takes place and interest money is available for maintenance of hatcheries.
365	Chair Messerle	Asks how the funds are to be paid back.
370	Rocco	Responds.
373	Vice-chair Shields	Reiterates concern that if the money can be borrowed on the first day of the biennium, and repaid with interest, that doesn’t mean any extra money for the agency.
380	Rocco	Clarifies.
390	Sen. Atkinson	Refers to the accounting of projects which have used funds, and asks whether any of these would be prevented by the bill.
410	Rocco	Responds.
435	Chair Messerle	Asks whether the Ways and Means committee will ask where project funding will come from.
440	Rocco	Confirms.
Tape 29, A
020	Sen. R. Beyer	Inquires whether the interest money from the fund is all out for the 2001-03 biennium.
025	Rocco	Responds.
030	Sen. Atkinson	Asks whether the interest money for hatchery maintenance is available now, or only if principal is repaid and not touched this biennium.
040	Rocco	Answers.
045	Sen. Atkinson	Inquires whether the fund will ever be restored to $5 million.
050	Rocco	Responds.
054	Sen. Atkinson	Asks how long it would take to restore the full fund.
060	Rocco	Estimates repayment.

070	Chair Messerle	Asks whether the borrowed money is still accruing interest for the maintenance fund.
080	Rocco	Responds.
085	Sen. Fisher	Asks about interest being charged this biennium.
095	Rocco	Responds and describes amendments.
110	Sen. Fisher	Asks about how money in fund would have been invested, and whether it would earn more than loan-rate interest. If so, asks whether agency must repay interest at that higher rate.
120	Chair Messerle	Asks Rocco whether there is a limit.
125	Rocco	Responds.
135	Sen. Fisher	Asks how that situation developed.
140	Rocco	Explains.
150	Sen. Fisher	Asks if responsibility for mismanagement should be shared between the legislature and the agency.
160	Chair Messerle	Comments that this bill tries to get the loaned funds paid back, and in future the legislature can decide how much reserve to build up.
170	Sen. R. Beyer	MOTION: Moves to ADOPT SB 62-2 amendments dated 2/6/01.
175		VOTE: 6-0 EXCUSED: 1 – Burdick
180	Chair Messerle	Hearing no objection, declares the motion CARRIED.
185	Sen. R. Beyer	MOTION: Moves to ADOPT SB 62-3 amendments dated 2/6/01.
190	Vice-chair Shields	Continues to express concern about the terms of borrowing from the fund and whether the fund can truly earn any interest.
192	Sen. R. Beyer	Comments.
200	Chair Messerle	Comments it would be a cost to the agency no matter where needed funds are borrowed from.
204	Vice-chair Shields	Objection to how the terms are defined in the bill.
205	Chair Messerle	Suggests flexibility is needed.
210	Sen. Fisher	Suggests definition of short-term, as used in bill.
215	Sen. R. Beyer	Observes that this bill at least defines and restricts terms of borrowing from fund where none exist now in statute.
220		VOTE: 6-0 EXCUSED: 1 – Burdick
225	Chair Messerle	Hearing no objection, declares the motion CARRIED.
230	Sen. R. Beyer	MOTION: Moves SB 62 as amended to the floor WITHOUT RECOMMENDATION as to passage and BE REFERRED to the committee on Ways and Means.
235	Sen. Atkinson	Expresses support for the bill but also concern about long-term strategy for hatcheries and whether the bill accomplishes goal of hatchery maintenance.

245	Chair Messerle	Agrees. Expresses concern that until Oregon resolves its wild fish policy the legislature doesn’t know where best to spend resources, and expresses optimism that some issues can be resolved this session.
255	Vice-chair Shields	Agrees with Sen. Atkinson about need for hatchery projects and asks if Ways and Means committee could require more definition of terms of borrowing and repayment.
260	Sen. R. Beyer	Confirms authority of Ways and Means.
261	Sen. Dukes	Comments that Ways and Means does not handle substantive issues.
265	Rocco	Responds.
280	Callens	Restates motion.
285	Sen. R. Beyer	Restates motion.
290		VOTE: 6-0 AYE: In a roll call vote, all members present vote Aye. EXCUSED: 1 - Burdick
	Chair Messerle	The motion CARRIES.
300	Chair Messerle	Close work session on SB 62. Opens public hearing on SB 517.
SB 517 – PUBLIC HEARING
310	Callens	Presents bill.
320	Sen. R. Beyer	Explains bill.
330	Wayne Van Dyke	Testifies in favor of bill.
360	Sen. Atkinson	Asks cost of license in Washington state.
365	Van Dyke	Responds.
390	Kay Brown	ODFW. Testifies as neutral and refers to submitted written materials (EXHIBIT A).
460	Van Dyke	Comments further.
Tape 28, B
035	Sen. R. Beyer	Asks about terms of licenses.
040	Brown	Responds.
043	Chair Messerle	Close public hearing on SB 517. Opens public hearing on SB 518.
SB 518 – PUBLIC HEARING
045	Callens	Presents bill.
050	Sen. R. Beyer	Explains bill. Expresses concern about safety for hunters and opines hunters should be trained in proper use of firearms. Explains that other western states require proof of hunter’s education before allowing purchase of hunting license. Programs in Oregon started in 1950s, which is why the target date was set at 1950. Finally, ODFW has stored preference points under social security numbers but that is forbidden by the federal government. The hunter safety completion certification number could be used instead.
100	Roy Elicker	Legislative Coordinator, ODFW. Testifies as neutral and submits written material (EXHIBIT B).
140	Paul Donheffner	Director, Marine Board, but represents only himself today. Testifies in favor and refers to written material (EXHIBIT C). Asks the committee to consider several changes to the bill.
210	Sen. Fisher	Asks Elicker why a hunter doesn’t get one hunting license number for life.
220	Elicker	Responds.
235	Sen. Fisher	Inquires whether that hunter could get a license for more than one year.
240	Elicker	Answers.
250	Sen. R. Beyer	Suggests the department use hunter’s education number for the hunter identification number.
255	Elicker	Offers to get information.
265	Sen. R. Beyer	Agrees that the hunter safety certification number could be the unique license identification number used by hunters in Oregon.
278	Rod Harder	Executive Director, Oregon Sportsmen’s Defense Fund. Testifies in favor of bill. Suggests several changes.
320	Al Elkins	Oregon Hunters Association. Testifies in supports of bill.
350	Sen. Fisher	Asks why the bill starts with controlled hunts and whether there is any concern about a discounted multi-year hunting license.
370	Harder	Responds.
390	Elkins	Responds.
415	Sen. Fisher	Suggests idea for multi-year discounted hunting license.
Tape 29, B
020	Chair Messerle	Calls Paul Donheffner again. Asks about including entire hunter population versus breaking out controlled hunts.
030	Donheffner	Explains.
050	Sen. R. Beyer	Agrees that eventually all hunters should be included. Opines that most big game hunters are in controlled hunt situations.
055	Chair Messerle	Asks about phase-in.
060	Sen. R. Beyer	Offers to work with groups on phase-in.
065	Sen. Fisher	Comments that his constituents struggle now to pay licensing fees and this is one more impediment to hunters who are hunting for the meat. Disagrees with fee for hunter safety course.
070	Sen. R. Beyer	Explains that in most places there is no fee for hunter safety courses.
075	Chair Messerle	Closes public hearing on SB 518. Opens work session for introduction of committee bills.
INTRODUCTION OF COMMITTEE BILLS – WORK SESSION
080	Callens	Presents LC 3265.
075	Sen. R. Beyer	MOTION: Moves LC 3265 BE INTRODUCED as a committee bill.
080		VOTE: 6-0 EXCUSED: 1 - Burdick
	Chair Messerle	Hearing no objection, declares the motion CARRIED.
085	Chair Messerle	Adjourns Work Session.
086	Chair Messerle	Adjourns meeting at 9:38 a.m.

Submitted By, Reviewed By,

Patricia Nielsen, Judith Callens,

Committee Assistant Committee Administrator

EXHIBIT SUMMARY

A – Written testimony on SB 517, Kay Brown, ODFW, 2 pp

B – Written testimony on SB 518, Roy Elicker, ODFW, 1 p

C – Written testimony on SB 518, Paul Donheffner, 2 pp