HOUSE SPECIAL SESSION COMMITTEE

ECONOMIC STIMULUS AND PUBLIC POLICY

 

 

February 8, 2002   Hearing Room A

10:00 A.M.     Tapes  1 - 5

 

MEMBERS PRESENT:     

                                                Rep. Carl Wilson, Chair

Rep. Alan Bates

Rep. Tom Butler

Rep. Cedric Hayden

Rep. Betsy Johnson

Rep. Jeff Kruse

Rep. Steve March

Rep. Diane Rosenbaum

Rep. Patti Smith

 

STAFF PRESENT:                 

                                                Janet Adkins, Committee Administrator

Linda K. Gatto, Committee Assistant

 

MEASURE HEARD:        

                                                Organizational Meeting

                                                    Adoption of Committee Rules

                                                Work Session -  Introduction of Committee Measures

     LC 23, LC 28, LC 29-1, LC 85, LC 67, LC 5-2 LC 84, LC 67

                                                     HR 10

     HB 4010

     SB 1000

     SB 1002

     SB 1003

     SB 1004

     HB 4022

     HJR 70

 

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 1, A

005

Chair Wilson

Calls the meeting to order at 10:05 a.m. and opens the organizational meeting.

ORGANIZATIONAL MEETING

010

Rep. Butler

Moves to ADOPT the proposed Committee Rules, (EXHIBIT A). 

015

Chair Wilson

Hearing no objection, declares the motion is CARRIED.  Opens the work session for the purpose of introducing committee measures.

WORK SESSION

010

Janet Adkins

Committee Administrator.  Provides an overview of the proposed committee measures:

LC 23, Honors the memory of September 11 victims, (EXHIBIT B)

LC 28, sine die resolution, (EXHIBIT C)

LC 29-1, regarding term limits, (EXHIBIT D)

LC 85, the ballot title for the term limits resolution,  (EXHIBIT E)

LC 67, relating to unemployment insurance, (EXHIBIT F)

030

Chair Wilson

Clarifies that LC 67 is the proposal brought forward by AFL-CIO and AOI, with changes suggested by National Federation of Independent Business (NFIB).

037

Rep. Rosenbaum

MOTION:  Moves LC 5-2 BE INTRODUCED as a committee bill, (EXHIBIT G).

042

 

VOTE:  7-2

AYE:     7 – Butler, Hayden, Kruse, March, Rosenbaum, Smith P, Wilson

NAY:     2 – Bates, Johnson

049

Chair Wilson

The motion CARRIES.

050

Rep. P. Smith

MOTION:  Moves LC 23 BE INTRODUCED as a committee bill, (EXHIBIT B).

055

 

VOTE:  9-0

AYE:            In a roll call vote, all members present vote Aye.

060

Chair Wilson

The motion CARRIES. 

064

Rep. Rosenbaum

Announces that she reserves the option to vote no on LC 5-2.

070

Rep. March

Advises that some changes will be introduced.

072

Rep. Butler

MOTION:  Moves LC 28 BE INTRODUCED as a committee bill, (EXHIBIT C).

082

Chair Wilson

Hearing no objection, declares the motion CARRIED.

087

Rep. Kruse

MOTION:  Moves LC 29-1 BE INTRODUCED as a committee bill, (EXHIBIT D).

089

Rep. March

Explains he will join for purposes of introduction, with reservations.

093

Rep. Bates

Suggests the decision regarding term limits should be given to the voters, as proposed by this LC.

107

Rep. Rosenbaum

Comments she cannot support the proposal.

120

Rep. Bates

Reiterates that the courts disallowed term limits, and the people should be allowed to decide.

133

Rep. Kruse

Describes the impact of term limits so far, and suggests this proposal is what the voters wanted.

175

Chair Wilson

Expresses support for term limits, and the ability of the voters to decide whether to reinstate more reasonable limits.

210

Rep. Butler

Explains his support for the proposal, which extends the terms allowed.

235

Rep. Johnson

Advises she will offer a courtesy yes vote.

237

 

VOTE:  7-2

AYE:     7 – Bates, Butler, Hayden, Johnson, Kruse, March, Wilson

NAY:     2 – Rosenbaum, Smith P,

246

Chair Wilson

The motion CARRIES.

252

Rep. Kruse

MOTION:  Moves LC 85 BE INTRODUCED as a committee bill (EXHIBIT E).

260

Rep. Bates

Presents overview of LC 84 and LC 85.  Explains details of ballot titles regarding term limits.

304

 

VOTE:  7-2

AYE:     7 – Bates, Butler, Hayden, Johnson, Kruse, March, Wilson

NAY:     2 – Rosenbaum, Smith P,

315

Chair Wilson

The motion CARRIES.

319

Rep. Butler

MOTION:  Moves LC 84 BE INTRODUCED as a committee bill, (EXHIBIT H).

323

Adkins

Presents overview of LC 84, (EXHIBIT H).

330

Rep. Bates

Explains details of alternative ballot title regarding term limits.

343

Rep. Hayden

Advises he cannot support the proposal because it is not comprehensive enough.

390

Rep. Kruse

Distinguishes between the ballot title and the referendum under the ballot.

404

Rep. Bates

Clarifies this LC is strictly to describe the ballot title.

425

Rep. Butler

Discusses need to clarify the ballot title.

450

 

VOTE:  5-4

AYE:     5 – Bates, Hayden, Kruse, March, Wilson

NAY:     4 –Butler, Johnson, Rosenbaum, Smith P

460

Chair Wilson

The motion CARRIES.

477

Rep. Kruse

MOTION:  Moves LC 67 BE INTRODUCED as a committee bill, (EXHIBIT F).

485

Rep. Rosenbaum

Asks whether it is possible to pass out two versions of this proposal.

490

Chair Wilson

Declines.

494

Rep. Kruse

Advises another version is on the Senate side.

496

Rep. Rosenbaum

Asks whether it is possible to amend this proposal.

498

Chair Wilson

Declines.

499

Rep. Rosenbaum

Advises she cannot support the proposal because it is insufficient.

TAPE 2, A

035

Rep. March

Comments he will also support the Senate version but not this proposal.

042

Rep. P. Smith

Explains she will support the proposal in order to move ahead.

045

Rep. Johnson

Advises she cannot support this complete substitution.

054

Rep. Kruse

Points out the situation is fluid, and because the measure is not being considered for passage, but only for introduction he will support it.

060

Chair Wilson

Assures the Senate version is not a consensus bill with labor and business because small businesses are not adequately represented.  Advises he will support this proposal.

073

Rep. Butler

Explains he may not support this proposal later but supports introduction.

081

 

VOTE:  5-4

AYE:     5 – Butler, Hayden, Kruse, Smith P, Wilson

NAY:     4 – Bates, Johnson, March, Rosenbaum

085

Chair Wilson

The motion CARRIES.

088

Chair Wilson

Recesses the meeting at 10:50 a.m. and reconvenes at 11:45 a.m. Opens the work session on HR 10.

HR 10 – WORK SESSION

012

Rep. March

MOTION:  Moves HR 10 be sent to the floor with a BE ADOPTED recommendation.

016

Rep. Butler

Expresses concern that the resolution does not mention military members.

025

Chair Wilson

Responds that there is another bill that honors military members.

 

 

VOTE:  8-0

EXCUSED:  1 – Rep. Hayden

029

Chair Wilson

Hearing no objection, declares the motion CARRIED.

REP. KRUSE will lead the discussion on the floor.

030

Chair Wilson

Closes work session on HR 10. 

032

Rep. Butler

Asks whether the other bill addresses the issue of honoring those military members who served at the Pentagon on September 11.

042

Rep. Kruse

Clarifies resolution language.

060

Rep. Butler

Recommends comment recognizing there is a separate memorial honoring the military.

078

Chair Wilson

MOTION: Requests unanimous consent that the rules be SUSPENDED to allow REP. P. SMITH and REP. KRUSE to BE RECORDED as voting AYE on HR 10.

083

Chair Wilson

Closes work session on HR 10 and recesses the committee until 1:30 p.m.

086

Chair Wilson

Reconvenes the committee at 1:40 p.m.  Opens the work session on  HB 4010.

HB 4010 – WORK SESSION

095

Rep. Bruce Starr

House District 30.  Provides an overview of HB 4010, relating to state bonding indebtedness for Department of Transportation, (ODOT) projects.  Testifies in favor of HB 4010-2 amendments, (EXHIBIT A).

134

Rep. Butler

Asks how consultant contracts will save time and money.

143

Doug Tindall

State Maintenance Engineer, ODOT.  Describes the transition of the Department from using 20% consultants to a much higher percentage, because the Department will not have staff to take on the additional workload.

155

Rep. Butler

Comments that the projects were described as ready to go.  Asks about increased staff needs.

163

Tindall

Clarifies it is the process of selecting the projects and the amount of preparation that is needed.

187

Rep. Butler

Asks about design-build method for the contracts.

192

Tindall

Affirms some projects will be contracted out as design-build, which lessens the impact on ODOT.

202

Rep. Butler

Inquires whether the increase from $400 million to $500 million contemplates additional new revenues or tax.

208

Rep. Starr

Explains the $500 million is a cap only and predicts the additional bonds will be at $67 million.

215

Rep. Butler

Clarifies that the additional bonding ability will be due to lower interest rates, and not new taxes.

220

Rep. Starr

Affirms.

221

Rep. Johnson

Inquires what is a marginal increase in staff.

224

Tindall

Predicts it would be ten or fewer.

230

Rep. Johnson

Asks whether there were two requests for staff.

235

Tindall

Explains the requests were combined.

240

Rep. Johnson

Inquires whether the positions will be permanent.

240

Mike Marsh

ODOT.  Explains the positions will be requested as permanent for the biennium with a budget note that ODOT expects the positions to last between four and eight years.

250

Rep. Johnson

Asks whether the new positions will be field personnel or located at the  head office.

254

Marsh

Answers it is a split.

259

Rep. Johnson

Recommends contacting the Department of Justice about turnaround time for contracts.

263

Marsh

Assures the committee that the Department of Justice has been involved in the process.

267

Rep. Butler

Asks if ODOT will contract with local governments for contract management needs.

277

Tindall

Affirms.

283

Marsh

Explains there is bonding authority within ODOT’s budget for local governments to bond with their own money through ODOT.

289

Rep. Bates

Requests clarification on time frame allowed for bonding.

302

Rep. Starr

Responds the Department has the option of bonding sooner to take advantage of lower interest rates now.

308

Rep. Bates

Asks about time frame for building projects once the bonding is done.

315

Rep. Starr

Answers there is a six-year time limit.

318

Marsh

Elaborates that there are penalties after three years and severe penalties after six years.

335

Rep. Bates

Inquires whether the bill allows ODOT to borrow with bonds now and reinvest at a higher interest rate later.

338

Marsh

Advises the penalties probably would not allow that now.

350

Rep. Bates

Expresses concern that the governor also has a bill on this subject.

379

Rep. Kruse

Inquires about the flexibility being afforded to ODOT to assist in meeting the needs for infrastructure and economic development locally.  Describes a project requested by the city of Oak Ridge.

416

Rep. Starr

Explains the project selection process allowed local discussion about how to fund projects, so with additional money there might be the same opportunity.

440

Tindall

Elaborates about the projects selected for funding.

460

Rep. Kruse

Inquires whether the group of projects has been finally decided.

470

Tindall

Answers there was $1.5 billion requested from $400 million in funding. Continues that the project in Oak Ridge would have another opportunity for funding in the next round of bonding.

488

Rep. March

Asks whether the Department has an estimate of costs for city and county bridge projects.

508

Rep. Starr

Explains the Oregon Transportation Investment Act, (OTIA) process did allow money to be spent on city and county bridge projects.

515

Tindall

Continues to notes that there was $100 million in local bridge projects submitted for OTIA, of which $35 million was funded.

TAPE 4, A

040

Rep. March

Comments on specific funding streams for cities and counties.

047

Rep. Starr

Confirms.

052

Pat Egan

Governor’s Transportation and Economic Development Advisor.  Testifies in support of the bill with the amendments.  Discusses the time periods for bonding.

069

Chair Wilson

Recesses the committee at 12:20 p.m.

072

Chair Wilson

Reconvenes the committee at  2:05 p.m. 

073

Rep. Kruse

MOTION:  Moves to ADOPT HB 4010-2 amendments dated  2/8/02, (EXHIBIT I).

077

Rep. March

Notes that a funding stream could help many cities and counties.  Requests that the committee discuss the governor’s recommendation.

 

 

VOTE:  9-0

090

Chair Wilson

Hearing no objection, declares the motion CARRIED.

092

Rep. Kruse

MOTION:  Moves HB 4010 to the floor with a DO PASS AS AMENDED recommendation.

098

Rep. Butler

Expresses support noting that the bill is not the best alternative.

117

 

VOTE:  9-0

AYE:     In a roll call vote, all members present vote Aye.

121

Chair Wilson

The motion CARRIES. 

REP. STARR will lead the discussion on the floor.

123

Chair Wilson

Closes the work session on HB 4010.  Recesses the meeting at         2:10 p.m., to reconvene at the call of the chair.

005

Chair Wilson

Reconvenes the meeting at 6:45 p.m. and opens the work session on  SB 1000.

SB 1000 – WORK SESSION

012

Janet Adkins

Committee Administrator.  Provides an overview of SB 1000, (EXHIBIT F) which delays implementation of HB 3842 (2001) regarding notice of liens on property.

030

Rep. Kruse

MOTION:  Moves SB 1000 to the floor with a DO PASS recommendation.

032

Chair Wilson

Hearing no objection, declares the motion CARRIED.

EXCUSED: 1 – Hayden

033

Rep. Kruse

MOTION:  Moves SB 1000 be placed on the CONSENT CALENDAR.

035

Chair Wilson

Hearing no objection, declares the motion CARRIED.  Closes work session on SB 1000.  Opens work session on SB 1002.

SB 1002 – WORK SESSION

043

Adkins

Presents overview of SB 1002, which creates a short-term borrowing account in the general fund.

058

Rep. Kruse

MOTION:  Moves SB 1002 to the floor with a DO PASS recommendation.  Comments the bill codifies current practice.

 

 

VOTE:  8-0

EXCUSED:  1 - Rep. Hayden

063

Chair Wilson

Hearing no objection, declares the motion CARRIED.

EXCUSED: 1 – Rep. Hayden

064

Rep. Kruse

MOTION:  Moves SB 1002 be placed on the CONSENT CALENDAR.

065

Chair Wilson

Hearing no objection, declares the motion CARRIED.  Closes the work session on SB 1002 and opens the work session on SB 1003.

SB 1003 – WORK SESSION

068

Adkins

Provides an overview of SB 1003, which provides assurance for back-up funding to repay lottery bonds in the event the lottery is declared illegal.

086

Rep. Kruse

MOTION:  Moves SB 1003 to the floor with a DO PASS recommendation.  Comments the bill codifies current practice.

 

 

VOTE:  7-1 

AYE:            7 - Bates, Butler, Kruse, March, Rosenbaum, Smith P, Chair Wilson

NAY:            1 –Johnson

EXCUSED:  1 - Rep. Hayden

093

Chair Wilson

The motion CARRIES.  Rep. Rosenbaum will lead discussion on the floor.  Closes work session on SB 1003.  Opens work session on SB 1004.

SB 1004 – WORK SESSION

108

Adkins

Presents overview of SB 1004, which allows adjustment of contribution of public employer to Public Employees Retirement System (PERS).

127

Rep. Kruse

MOTION:  Moves SB 1004 to the floor with a DO PASS recommendation. 

130

Rep. March

Comments the program is voluntary.

135

Rep. Butler

Expresses concern that PERS is increasing staff.

148

Rep. March

Suggests there would be a short-term workload increase, which would decline in the long term.

160

Rep. Johnson

Asks about benefit of pooling for large and small school districts.

166

Rep. Butler

Comments it would depend on district’s bonding capacity.

178

Rep. March

Explains further about additional workload for PERS.

184

Rep. Butler

Advises he will support the bill despite disagreement about whether additional staff is needed.

 

 

VOTE:  8-0

EXCUSED:  1 - Rep. Hayden

196

Chair Wilson

Hearing no objection, declares the motion CARRIED.

197

Rep. Kruse

MOTION:  Moves SB 1004 be placed on the CONSENT CALENDAR.

 

 

EXCUSED:  1 - Hayden

198

Chair Wilson

Hearing no objection, declares the motion CARRIED.  Closes work session on SB 1004.  Opens work session on HJR 70.

HJR 70 – WORK SESSION

205

Rep. Bates

Presents overview of dash-1 amendments to HJR 70 (EXHIBIT J), relating to term limits.

228

Rep. Kruse

Asks about potential reduced terms if there is a late-term appointment.

235

Rep. Bates

Clarifies the limit is twelve years.

239

Rep. Kruse

MOTION:  Moves to ADOPT HJR 70-1 amendments dated 2/8/02.

243

Chair Wilson

Hearing no objection, declares the motion CARRIED.

EXCUSED: 1 - Hayden

245

Rep. Kruse

MOTION:  Moves HJR 70 to the floor with a DO PASS AS AMENDED recommendation. 

248

Rep. Rosenbaum

Explains she cannot support the proposal because she believes the voters no longer support term limits.

266

Rep. Kruse

Comments the voters seem to want to choose and this reflects the spirit and intent of the prior initiative.

317

Rep. P. Smith

Announces that she will not support the bill.

320

Rep. Bates

Explains the intent was to remove ambiguity from the process and give the voters the choice.

361

Rep. March

Provides an explanation of his yes vote is so the measure can be debated on the chamber floor.

368

 

VOTE:  6-2 

AYE:      6 - Bates, Butler, Johnson, Kruse, March, Wilson

NAY:            2 – Rosenbaum, Smith P.

EXCUSED:  1 - Rep. Hayden

386

Chair Wilson

The motion CARRIES. 

REP. BATES and REP. KROPF will lead discussion on the floor.  Closes the work session on HJR 70 and opens the work session on    HB 4022.

HB 4022 – WORK SESSION

397

Adkins

Provides an overview of HB 4022, which specifies a ballot title for  HJR 70.

414

Rep. Kruse

MOTION:  Moves HB 4022 to the floor with a DO PASS recommendation.

 

 

VOTE:  8-0

EXCUSED: 1 - Hayden

422

Chair Wilson

Hearing no objection, declares the motion CARRIED. 

REP. BATES will lead discussion on the floor.

434

Chair Wilson

Closes the work session on HB 4022 and adjourns the meeting at     7:20 p.m.

 

 

Transcribed by

 

 

 

Patricia Nielsen,

Committee Assistant

 

 

Submitted By,                        Reviewed By,

 

 

 

Linda K. Gatto,                        Janet Adkins,

Committee Assistant                        Committee Administrator

 

EXHIBIT SUMMARY

 

A.  Proposed Committee Rules, staff, 1 p

B.  Draft LC 23 dated 2/1/02, staff, 2 pp.

C.  Draft LC 28 (not available)

D.  Draft LC 29-1 dated 2/7/02, staff, 2pp.

E.   Draft LC 85 dated 2/7/02, staff, 2 pp.

F.   Draft LC 67 dated 2/8/02, staff, 30 pp.

G.  Draft LC 5-2 dated 2/6/02, staff, 8 pp.

H.    Draft LC 84 dated 2/7/02, staff, 2 pp.

I.       HB 4010-2 dated 2/8/02, Rep. Bruce Starr, 1 p
J.      HJR70-1 dated 2/8/02, staff, 2 pp.