SENATE COMMITTEE ON NATURAL RESOURCES, AGRICULTURE, SALMON AND WATER

March 09, 2001 Hearing Room B

8:00 AM Tapes 54 - 56

MEMBERS PRESENT: Sen. Ken Messerle, Chair

Sen. Frank Shields, Vice-Chair

Sen. Bill Fisher

Sen. Ginny Burdick

Sen. Jason Atkinson

Sen. Roger Beyer

Sen. Ryan Deckert

VISITING MEMBER:

Sen. Joan Dukes

STAFF PRESENT: Judith Callens, Committee Administrator

Patricia Nielsen, Committee Assistant

MEASURE/ISSUES HEARD: SB 517 – Work Session

SB 943 – 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 54, A
005	Chair Messerle	Opens meeting at 8:05 a.m.
SB 517 – WORK SESSION
007	Judith Callens	Committee Administrator. Presents bill.
021	Chair Messerle	Refers to the notes that Sen. Dukes sent suggesting amendments. States that if a separate fee or separate license needs to be added it can be done in the future. States he would like to move the bill out today.
033	Vice-chair Shields	Asks the Chair if Sen. Dukes is more concerned about using the money to benefit that fishery, and to also track the money.
038	Chair Messerle	Notes his concern that the cost of administering the extra license and special fee would be significant. It could be added to it to the bill at a later date.
043	Vice-chair Shields	Notes that some merchants on the coast are concerned about their businesses. If it were to go on the bill we need to get something to help that particular fishery. Is unsure of the increased costs.

052	Chair Messerle	Predicts increased administrative costs and printing charges for a separate license.
057	Sen. R. Beyer	Acknowledges Vice-chair Shields’ concern but doesn’t know what it would do. Need to know what money will be generated.
072	Sen. Deckert	Suggests the Department could take this into account and return in two years with more information.
080	Sen. Beyer, R	MOTION: Moves SB 517 to the floor with a DO PASS recommendation.
081	Sen. Fisher	Asks for clarification on some of the charges.
089	Callens	Clarifies cost of licenses.
096	Sen. R. Beyer	Defines shellfish as species you must have a license to take. One-day license is $6.50.
101	Sen. Fisher	Asks about the increase in the new license fee.
105	Chair Messerle	Asks staff to clarify this point.
116	Kay Brown	Oregon Department of Fish and Wildlife. Clarifies license fees.
128	Sen. Fisher	Expresses confusion about costs noted in several sections of the bill.
139	Brown	Explains the different charges on the licenses.
149	Chair Messerle	Notes that this bill doesn’t alter the other statutes on cost of license.
155	Sen. Dukes	License fees are not new. Discusses funding needed for resources. Discusses tracking the income from the licenses. Suggests making this a separate license to harvest shellfish.
234	Sen. Fisher	Notes that he has always opposed this bill. Asks how it will be monitored.
247	Brown	Replies.
258	Sen. R. Beyer	Responds to Sen. Dukes’ comments.
298	Chair Messerle	Notes to Sen. Dukes that he will carry it forward to Ways and Means and put some budget notes in.
303	Sen. Dukes	States that she can’t see how to track it if it is not a separate license.
322	Chair Messerle	Notes that he has some out-of-state folks coming to the coast to participate in these activities.
330	Vice-chair Shields	Asks why Washington’s fishery is so much better than Oregon’s.
335	Brown	Answers.
341	Vice-chair Shields	Notes that levying this fee might raise money, but asks if there is a way to tell where the licenses were bought.
366	Chair Messerle	Notes you can track by the address on the license.
371	Brown	Agrees.
377	Chair Messerle	Notes it would not be an exact figure, but could get an indication of increased activity.
381	Sen. Atkinson	Notes that when purchasing a license, you go through a series of questions. Asks if there is a way to put another check off for shellfish on the list of questions.
410	Brown	Responds.
421	Sen. Atkinson	Asks for a cost analysis.
425	Brown	Describes.
433	Sen. Atkinson	States he is curious about the estimates made in the first year.
440	Sen. Deckert	Probably could derive revenue the same as other western states, and suggests revisiting in two years based on this discussion.
462	Sen. Fisher	Refers to Sen. Atkinson’s comments about answering questions when purchasing licenses. Notes that nothing has been said about policing this.
TAPE 55, A
023	Sen. R. Beyer	Notes that many new daily licenses will be sold by vendors without computers, and asks if another box can be put on these license forms to check, thereby tracking it through the daily license.
031	Brown	Replies.
034		VOTE: 5-2 AYE: 5 – Atkinson, Beyer R, Burdick, Deckert, Messerle NAY: 2 – Fisher, Shields
	Chair Messerle	The motion CARRIES. SEN. BEYER, R. will lead discussion on the floor.
040	Chair Messerle	Closes work session on SB 517. Opens public hearing on SB 943.
SB 943 - PUBLIC HEARING
043	Callens	Summarizes SB 943.
064	John Schoon	Former State Representative. Testifies in opposition. Submits written testimony (EXHIBITS A, B).
119	Phil Olson	Citizen. Testifies in opposition. Refers to submitted written testimony (EXHIBIT C).
238	Gretchen Olson	Citizen. Testifies in opposition to bill as written.
268	Sen. Burdick	Asks if a look-back provides a cap of 3 percent, how would the commission justify a 1.5 percent cap.
275	P. Olson	Replies.
298	Sen. Burdick	Asks about revenue impact.
303	P. Olson	Replies.
300	Chair Messerle	Summarizes that Mr. Olson is in support of the bill except for the 3-year average.
352	David Gatti	CFO of RainSweet and RS Growers. Testifies in opposition to SB 943 as written. Recommends amendment.
TAPE 54, B
010	Bryan Ostland	Administrator for four of Oregon’s Commodity Commissions. Testifies in support of bill.
081	Chair Messerle	Asks if the processor or the purchaser or the commission pays the assessment.
085	Ostland	Responds
089	Chair Messerle	Asks if the administrative costs will be a burden to the commission.
092	Ostland	Responds and clarifies.
101	Gatti	Responds further.
114	Ostland	Responds further.
120	Sen. Burdick	Asks Mr. Ostland for clarification regarding his support of the basic bill and problems with the amendment.
123	Ostland	Responds
126	Chair Messerle	Notes that the amendments basically take away the three-year average.
128	Ostland	Answers.
135	Chair Messerle	Asks how he assesses direct sales.
136	Ostland	Responds.
142	Alan Jesse	Blueberry grower. Testifies in support of the bill.
173	Marlin Rasmussen	Dairy farmer, Chair of Oregon Dairy Products Commission. Testifies in support of the bill.
219	Sen. Fisher	Asks if the blueberries are much different than the average grass seed.
233	Jesse	Elaborates.
245	Sen. Fisher	Asks if there are any complaints about different prices within the system.
254	Jesse	Responds.
265	Sen. Fisher	Comments that it must be tough for those who sell for less.
270	Jesse	Responds.
283	Sheldon Pratt	Administrator of Dairy Products Commission. Testifies in support of the bill. Bill provides for continuation of system.
343	Chair Messerle	Asks if he would have any difficulty with the removal of the 3-year average.
346	Pratt	Replies.
359	Paul Coussens	Oregon Blueberry Commission. Speaks in support of the bill.
400	Ralph Fisher	Chair, Oregon Tall and Fine Fescue Commission. Testifies in support and submits written testimony (EXHIBIT D).
449	Dave Nelson	Administrator, Oregon Tall and Fine Fescue Commission. Speaks in support of the bill.
TAPE 55, B
022	Dave Brazelton	Grower, past President Oregon Blueberry Growers Association. Speaks in support of the bill.
114	Sen. R. Beyer	Asks whether the bill allows individual commissions to use a one, two or three year look back.
118	Nelson	Explains.
126	Sen. R. Beyer	Notes that the commission may determine the three-year industry average, but it is not required.
131	Vice-chair Shields	Asks Brazelton if he is in favor of the amendment.
137	Brazelton	Responds.
160	Sen. Fisher	Asks about lawsuit.
161	Brazelton	Describes.
180	Nelson	Elaborates.
190	Sen. Fisher	Asks if this is only for the blueberry commission.
200	Nelson	Responds.
213	Sen. Fisher	Asks if an amendment is needed.
215	Nelson	Affirms.
218	Chair Messerle	Advises a Legislative Counsel opinion is forthcoming.
228	Doug Krahmer	Grower, including blueberries and others. President, Marion County Farm Bureau. Testifies in support of the bill.
267	Bob Gabriel	Grower of blueberries, ryegrass, filberts. Speaks in support of SB 943.
293	Ryan Braun	Farmer Scio, President Oregon Blueberry Growers Association. Testifies in support of SB 943.
308	Chair Messerle	Asks if the association would find a problem with the permissive time lag to each individual commission.
312	Braun	Replies.
321	Chair Messerle	Notes that these decisions should be made at an industry level.
325	Vice-chair Shields	Asks if the commissions would be supportive if the amendment was permissive.
331	Gabriel	Responds.
343	Chuck Taylor	Legislative Counsel. Clarifies the use of may not and shall not.
411	Chair Messerle	Asks Mr. Taylor to review the bill and give an opinion on it, and also asks if it allows each commission to individually decide the assessment time.
426	Taylor	Asks about specific language.
428	Sen. R. Beyer	Page 2, lines 31-35.
434	Taylor	Clarifies.
466	Chair Messerle	Asks if it is their choice.
467	Taylor	Notes they could use other sources to determine it.
469	Sen. R. Beyer	Asks if they could choose a different number of years to average.
487	Sen. Fisher	Points out line 45 on page 2.
491	Chair Messerle	Invites Taylor to return later.
498	Taylor	States his opinion regarding the meaning of the assessment time limits.
TAPE 56, A
040	Frank Conte	Taught Science at OSU. Testifies in supports of SB 943, but not amendment.
076	Chuck Craig	Deputy Director, Department of Agriculture. Testifies in support of SB 943 and submits written testimony (EXHIBIT E).
094	Sen. R. Beyer	Publicly thanks the growers for coming in and voicing their opinions.
099	Chair Messerle	Closes public hearing on SB 943. Adjourns meeting at 10:04 a.m.
100	Chair Messerle	Adjourns meeting at 10:04 a.m.

Submitted By, Reviewed By,

Patricia Nielsen, Judith Callens,

Committee Assistant Committee Administrator

EXHIBIT SUMMARY

A – SB 943, written testimony, John Schoon, 1 p

B – SB 943, proposed dash-3 amendments dated 3-9-01, John Schoon, 2 pp

C – SB 943, written testimony, Phil Olson, 1 p

D – SB 943, written testimony, Ralph Fisher, Oregon Fine Fescue Commission, 2 pp

E – SB 943, written testimony, Charles Craig, Oregon Department of Agriculture, 1 p