SENATE SPECIAL COMMITTEE ON BUDGET

June 27, 2002 Hearing Room E

11:15 A.M. Tape 17

MEMBERS PRESENT: Sen. Lenn Hannon, Chair

Sen. Peter Courtney

Sen. Avel Gordly

Sen. John Minnis

Sen. David Nelson

STAFF PRESENT: Paul Warner, Legislative Revenue Office

Ken Rocco, Legislative Fiscal Office

Rick Olson, Legislative Fiscal Office

Richard Yates, Legislative Revenue Office

Janet Adkins, Committee Assistant

MEASURES HEARD: HB 4052C Work Session

HB 4059B Work Session

HB 4051 Work Session

HB 4055B Work Session

HB 5091B Work Session

SJR 52 Public Hearing and Work Session

HB 4056 Public Hearing and Work Session

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 17, A
003	Chair Hannon		Calls the meeting to order at 12:35 p.m.
006	Paul Warner		Legislative Revenue Officer. Introduces HB 4052C which is the implementing language for the education stability fund. There are no amendments.
	Chair Hannon		Opens the work session on HB 4052C.
HB 4052C WORK SESSION
010	Sen. Courtney		MOTION: Moves HB 4052C to the floor with a DO PASS recommendation.
013	Chair Hannon		Hearing no objection, declares the motion CARRIED.
			SEN. COURTNEY will lead discussion on the floor.
	Chair Hannon		Closes the work session on HB 4052C and opens the work session on HB 4059B.
HB 4059B WORK SESSION
014	Warner		Introduces HB 4059B which sets up election procedures. In its amended form it is election procedures for HJR 80 only and contains language in case there is a referendum on HB 4051 or HB 4054.
022	Sen. Courtney		MOTION: Moves HB 4059B to the floor with a DO PASS recommendation.
028	Chair Hannon		Hearing no objection, declares the motion CARRIED.
			SEN. COURTNEY will lead discussion on the floor.
035	Chair Hannon		Opens the work session on HB 4051.
HB 4051 WORK SESSION
036	Chair Hannon		Reviews HB 4051B-23 amendments, (EXHIBIT A) which changes the cigarette tax proposal from 65-cents to 60-cents.
040	Sen. Courtney		MOTION: Moves HB 4051B-23 amendments dated 6/27/02.
046	Sen. Nelson		Objects.
047			VOTE: 4-1 AYE: 4 – Courtney, Gordly, Minnis, Hannon NAY: 1 – Nelson
			The motion CARRIES.
049	Sen. Courtney		MOTION: Moves HB 4051 as amended to the floor with a DO PASS recommendation.
053	Sen. Nelson		Objects.
			VOTE: 4-1 AYE: 4 – Courtney, Gordly, Minnis, Hannon NAY: 1 – Nelson
			The motion CARRIES.
			SEN. HANNON will lead discussion on the floor.
056	Chair Hannon		Closes the work session on HB 4051 and opens the work session on HB 4055.
HB 4055B WORK SESSION
073	Rick Olson		Senior Legislative Analyst, LFO. States that the bill is essentially the same. Refers to page one, line 13, where the number has been changed (EXHIBIT B).
079	Chair Hannon		Summarizes that the net effect is the addition of $20 million back into the school fund reduction that was made and that the figure was reduced from $112 million to $92 million.
082	Olson		Responds affirmatively.
083	Olson		Refers to page one, line 20 and states the number.
088	Sen. Minnis		MOTION: Moves the conceptual amendment to the hand engrossed bill of HB 4055B that on line 13 deletes $2,241,389,982 and inserts 2,260,657,559. AND on line 20 deletes $85,154,160 from the school fund and inserts $85,886,183.
100	Chair Hannon		Hearing no objection, declares the motion CARRIED.
103	Sen. Minnis		MOTION: Moves HB4055B as conceptually amended to the floor with a DO PASS recommendation.
107	Chair Hannon		Hearing no objection, declares the motion CARRIED.
			SEN. HANNON will lead discussion on the floor.
115	Chair Hannon		Reconvenes the meeting. Opens the work session on HB 5091.
HB 5091 WORK SESSION
123	Ken Rocco		Legislative Fiscal Officer. Refers to submitted materials (EXHIBITS C, D, E). Notes the shaded block is the only change from yesterday. Reviews what they are and states the net effect is $8.1 million in fewer cuts and $19 million in transfers that are no longer in the plan.
153	Sen. Courtney		MOTION: Moves HB 5091B-7 amendments.
158	Rocco		Notes that the HB 5091B-7 amendments are hand engrossed.
162	Sen. Courtney		MOTION: Moves to ADOPT HB 5091B-7 hand engrossed amendments to the HB 5091B-7 amendments that were adopted in committee yesterday.
167			Hearing no objection, declares the motion CARRIED.
168	Sen. Courtney		MOTION: Moves HB 5091 AS AMENDED to the floor with a DO PASS recommendation.
174	Chair Hannon		Hearing no objection, declares the motion CARRIED.
177	Chair Hannon		Acknowledges the work, cooperation, and compromises of the committee members. Thanks them for their diligence and perseverance. Acknowledges the work of Ken Rocco and the LFO staff, committee staff, Paul Warner and the LRO staff. Thanks the work of Legislative Counsel Greg Chaimov and his staff, and Pat Egan from the Governor’s office.
214	Chair Hannon		Announces that the committee will recess until 2:30 p.m.
220	Chair Hannon		Opens the work session on SJR 52.
SJR 52 PUBLIC HEARING AND WORK SESSION
230	Sen. Ferrioli		Provides background information on SJR 52. States that ORS 341.565 requires the either the Legislature or the Emergency Board approve Community College annexations before they are effective.
253	Chair Hannon		MOTION: Moves SJR 52 to the floor with a BE ADOPTED recommendation.
257	Chair Hannon		Hearing no objection, declares the motion CARRIED.
			SEN. FERRIOLI will lead discussion on the floor.
259	Chair Hannon		Closes the work session on SJR 52 and opens the hearing and work session on HB 4056.
HB 4056B PUBLIC HEARING
263	Richard Yates		Legislative Revenue Office. Reviews HB 4056B-9 amendments, (EXHIBIT F) which provide conditional authority for the Treasurer to issue revenue bonds, contingent upon the General Fund anticipated to have a negative balance.
276	Chair Hannon		States that this allows the sale of $50 million on July 1, 2002 to fund the programs already approved, and $150 million if the State Treasurer determines certain conditions have been met in the economic forecast in September.
282	Yates		Clarifies that it authorizes the Treasurer to issue bonds for any economic forecast that shows a deficit, it authorizes the Treasurer to issue bonds in the amount of that deficit not to exceed $150 million.
300	Chair Hannon		Asks if anyone wants to testify. Closes the public hearing and opens the work session on HB 4056B.
HB 4056B WORK SESSION
293	Sen. Minnis		MOTION: Moves to ADOPT HB 4056-B9 amendments dated 6/27/02.
298	Chair Hannon		Hearing no objection, declares the motion CARRIED.
304	Chair Hannon		Announces that the committee needs to reconsider the vote on SJR 52. Reconvenes the meeting at 3:40 p.m. and opens the work session on SJR 52.
SJR 52 WORK SESSION
305	Sen. Hannon		MOTION: Moves to SUSPEND the rules for the purpose of reconsidering the vote on SJR 52.
306	Chair Hannon		Hearing no objection, declares the motion CARRIED.
307	Sen. Hannon		MOTION: Moves to RECONSIDER the vote by which the committee adopted SJR 52.
308	Chair Hannon		Hearing no objection, declares the motion CARRIED.
313	Sen. Courtney		MOTION: Moves SJR 52 to the floor with a BE ADOPTED recommendation.
316	Chair Hannon		Hearing no objection, declares the motion CARRIED. SEN. FERRIOLI will lead discussion on the floor.
317	Chair Hannon		Recess the meeting.
321	Chair Hannon		Reconvenes the meeting.
322	Sen. Courtney		MOTION: Moves to SUSPEND the rules for the purpose of reconsidering the vote on SB 4056B.
325	Chair Hannon		Hearing no objection, declares the motion CARRIED.
307	Sen. Hannon		MOTION: Moves to RECONSIDER the vote by which the committee adopted SB 4056B.
308	Chair Hannon		Hearing no objection, declares the motion CARRIED.
326	Sen. Courtney		MOTION: Moves to ADOPT SB 4056-B9 amendments dated 6/27/02.
328	Chair Hannon		Hearing no objection, declares the motion CARRIED.
331	Sen. Courtney		MOTION: Moves SB 4056B AS AMENDED to the floor with a DO PASS recommendation.
335	Chair Hannon		Hearing no objection, declares the motion CARRIED.
			SEN. MINNIS will lead discussion on the floor.
341	Chair Hannon		Adjourns meeting.

Submitted By, Reviewed By,

Linda K. Gatto, Marjorie Taylor,

Committee Assistant Administrator

EXHIBITS

A. HB4051B-23 amendments dated 6/27/02, staff, 1 p

B. HB 4055B hand engrossed conceptual amendment, staff, 4 pp

C. HB 5091B-7 amendments dated 6/26/01, staff, 29 pp

D. HB 5091B, Senate proposal, staff, 1 p

E. Summary Reductions, staff, 4 pp

F. HB 4056B-9 amendments dated 6/27/02, staff, 2 pp.