HOUSE COMMITTEE ON GENERAL GOVERNMENT

 

 

February 04, 2003   Hearing Room D

8:30 AM Tapes  12 - 13

 

MEMBERS PRESENT:            Rep. Jerry Krummel, Chair

Rep. Donna Nelson, Vice-Chair

Rep. Floyd Prozanski, Vice-Chair

Rep. Brad Avakian

Rep. Derrick Kitts

Rep. John Mabrey

 

MEMBER EXCUSED:             Rep. Kelley Wirth

 

STAFF PRESENT:                  Patrick Brennan, Committee Administrator

Jeana Harrington, Committee Assistant

 

MEASURE/ISSUES HEARD:            -Public Hearing and Work Session

                                                 Introduction of Committee Measures

                                                -HB 2417 – Public Hearing

-Informational meeting – Secretary of State Audits Division

 

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 12, A

004

Chair Krummel

Calls meeting to order at 8:37 AM. Explains the committee has received a draft from the Association of Oregon Counties (AOC). Opens public hearing on LC Draft 1268 (EXHIBIT A).

LC 1268 PUBLIC HEARING

015

Bill Penhollow

AOC. Provides that the draft is an omnibus telecommunications bill. Explains the bill and how it relates to counties.

045

Rep. Nelson

States she has not had a chance to study the draft.

050

Chair Krummel

Explains that the committee does not necessarily have to agree with the draft, passage will only allow it a first-reading.

052

Rep. Nelson

Asks if the AOC has county support for this issue.

056

Penhollow

Responds about the support they have.

067

Rep. Nelson

Requests a list of counties endorsing the draft.

070

Penhollow

States he can identify the counties represented in the process as not all are.

079

Rep. Nelson

Remarks that he should find out the stance of all counties on the draft.

089

Chair Krummel

Closes public hearing and opens work session on LC Draft 1268.

LC 1268 WORK SESSION

091

Rep. Kitts

MOTION:  Moves LC 1268 BE INTRODUCED as a committee bill.

094

 

VOTE:  6-0

EXCUSED:  1 - Wirth

 

Chair Krummel

Hearing no objection, declares the motion CARRIED.

104

Chair Krummel

Closes work session on LC 1268. Opens public hearing on HB 2417.

HB 2417 PUBLIC HEARING

108

Rep. Betsy Close

House District 15. Testifies in favor of HB 2417 (EXHIBIT B). Notes that the City of Salem will probably oppose the bill due to lost revenue. Offers amendments to the bill. Provides a citizen commentary on the issue. Points out the discrepancy in terms of the accounts for lost revenue.

164

Rep. Kitts

Asks if any of the representatives have received complaints about those who have abstained from visiting the Capitol due to financial inability.

172

Rep. Close

Comments that parking does not defer people from coming, but it is an inconvenience to those who do. Believes citizens should be accommodated when they come to the Capitol.

186

Rep. Mabrey

Poses a technical question on bill regarding the prohibition of time spent in parking spaces. Points out a discrepancy.

197

Rep. Close

Provides she is unsure of this wording and adds that she did not request a time limit for parking.

205

Rep. Mabrey

Clarifies his earlier question.

207

Rep. Close

Responds to this.

214

Rep. Nelson

Inquires who owns the land.

216

Rep. Close

Assumes it belongs to the state government.

221

Rep. Nelson

Voices concern in differentiating between those visiting the Capitol, and those who need parking. States she is concerned about the amount of parking in general. Wonders if both issues can be resolved with the bill.

234

Rep. Close

States she does not believe this bill could accommodate both of those issues.

240

Nelson

Remarks about the availability of parking in the mornings and questions who those spaces are used by.

247

Rep. Close

Assumes lobbyists account for many of the spaces. States it does not bother her that under the bill paid lobbyists that come to testify could receive a free space as they are paid to represent the public opinion.

258

Rep. Prozanski

Finds it interesting that state, but not Capitol employees would be allowed to use the parking.

267

Rep. Close

Responds that Capitol employees have a parking garage and other options that the pubic does not have access to.

273

Rep. Prozanski

Clarifies whether the free parking would include both paid lobbyists and volunteer or not-for-profit lobbyists.

278

Rep. Close

Responds that both groups would be included. Adds that paid lobbyists often use their personal funds for their parking.

285

Rep. Prozanski

Asks if city employees would be included by the bill.

290

Rep. Close

Offers that city employees could be included if the committee wanted.

293

Rep. Prozanski

Believes that this action could be considered ‘a taking’ if the property is not in fact owned by the state.

299

Rep. Close

Replies she does not see it that way and believes the state has the right to this measure.

304

Rep. Prozanski

Questions whether this is a local control issue and a decision that the city should make.

309

Rep. Close

Responds it is a matter of who owns the land.  

314

Rep. Prozanski

Questions whether the bill be should extended to county seats as well.

320

Rep. Close

Responds that was not the purpose she had for the bill and adds that decision would be up to county governments.

323

Chair Krummel

Thanks her.

338

Brandon Bennett

City of Salem. Presents (EXHIBIT C). Testifies in opposition of HB 2417.

350

Rep. Avakian

Asks who owns the street, meters, and parking spaces.

353

Bennett

Answers that the City of Salem owns them.

357

Peter Fernandez

Department of Public Works, City of Salem. Clarifies the land that the city owns.

374

Rep. Avakian

Clarifies the land the city owns, including sidewalks.

378

Fernandez

Affirms his statement and adds that it does include the sidewalks.

384

Bennett

Refers to (EXHIBIT C). Points out expense discrepancies spoken of earlier with regard to rates and equipment.

TAPE 13, A

003

Bennett

Continues. Details the loss in revenue the city will incur with regard to violations and meter revenue. Points out the city has examined its program to provide better options for citizens. Believes that if parking was free, it would be used for purposes unintended by the bill. States the city cannot afford to enforce these restrictions. Explains the problems in implementing this. Refers to the citizen commentary Rep. Close offered in EXHIBIT B.

104

Chair Krummel

Clarifies whether there exists free parking in the downtown area.

108

Bennett

Affirms.

110

Fernandez

Adds that this parking is courtesy of downtown businesses, extended to their customers, and is paid for by an added tax to businesses.

117

Chair Krummel

Lists Rep. Close’s proposed amendments and requests the witnesses’ thoughts on them.

129

Bennett

Explains they have looked at some of the options listed to try and make the Capitol more accessible. Submits the city would entertain the ideas, but that a bill is unnecessary.

143

Rep. Prozanski

Refers to an earlier statement regarding the enforcement of out-of-town visitors. Asks Mr. Bennett to elaborate.

148

Bennett

Explains how the city addresses delinquent parking fees.

170

Rep. Nelson

Requests the total revenue from all state parking in Salem.

174

Bennett

Answers that it is obtained mostly from the Capitol Mall area and lists if at around $600,000 annually.

187

Doug Kapps

Executive Director, Capital Planning Commission (CPC). Notes he just heard of the bill. Mentions the types of members the commission includes. Gives examples of the purpose of the commission. States the commission is able to collaborate with them on this issue.

237

Rep. Mabrey

Asks if the state pays anything in lieu of taxes to the city.

241

Kapps

Responds regarding the free park and ride system for employees.

252

Rep. Nelson

Clarifies that the state pays nothing else to the city.

255

Kapps

Voices belief that is correct.

266

Mary Botkin

Association of Federal, State, County, and Municipal Employees (AFSCME) Council 75. Testifies against HB 2417. Presents an idea that legislators could be provided with passes for constituents. States that parking is a hassle and adds there could be a solution for the general public.

308

Chair Krummel

Thanks her. Believes they should take Mr. Kapps up on his offer and adds the committee should work with the CPC, Rep. Close, and the City of Salem on this issue. Closes public hearing on HB 2417. Opens informational meeting on the Secretary of State Audits Division.

INFORMATIONAL MEETING

351

Cathy Pollino

Director, Secretary of State Audits Division. Overviews the division with regard to constitutional authority and fiscal accountability (EXHIBIT D).

TAPE 12, B

005

Pollino

Explains the role of the division and audit standards. Elaborates on customers of the division. Touches on organizational challenges. Highlights the four types of audits and gives examples of those. Overviews audit plan. Describes audit risks. Highlights audit categories (EXHIBIT E). Explains the purpose of each category. Provides web information

317

Rep. Mabrey

Understands that they are requested to do specific audits.

322

Pollino

Answers yes and gives examples of those who request audits. States that Rep. Westlund is also working with the requests in his committee.

343

Rep. Mabrey

Asks what information they disclose with regard to audits.

350

Pollino

Explains confidentiality practices with audit requests.

356

Rep. Mabrey

Explains the purpose of his questions referencing 9-1-1.

373

Pollino

States they are required to audit ten percent of cities and counties. Explains the division’s actions around 9-1-1.

TAPE 13, B

004

Chair Krummel

Asks if an individual can request an audit.

007

Pollino

Affirms.

008

Chair Krummel

Asks if she believes they are utilized.

009

Pollino

Affirms and adds they are very well used. Speaks to the services used in 9-1-1 funds. Gives examples of audits. States the necessity of focused audits.

051

Rep. Nelson

Uses the Oregon Department of Transportation’s (ODOT) as an example of actions eligible for audits.

059

Pollino

Answers that they can be.

060

Rep. Nelson

Inquires how they audit.

063

Pollino

States they look at overall expenditures.

064

Rep. Nelson

Adds to her question.

068

Pollino

Responds it depends on the agency.

074

Rep. Nelson

Thanks her for the usefulness of their services. Gives an example of an agency with regard to audits.

086

Pollino

Comments that they do not handle policy decisions regarding examples like that.

097

Rep. Nelson

Comments on the task of the legislature to explain its funds and budget.

101

Pollino

Replies she doesn’t have those answers.

103

Rep. Nelson

Asks about billing.

105

Pollino

States that state agencies are assessed for audit work. Adds that some are billed directly for their time. Explains for the remainder of agencies it is an overhead charge.

113

Rep. Nelson

Inquires if agencies agree to upon the charge beforehand.

114

Pollino

Affirms.

115

Rep. Nelson

Inquires about their budget.

117

Pollino

Answers the staff has decreased from 83 Full-time Equivalent (FTE) Positions to 78 FTE.

121

Chair Krummel

Assumes they use Certified Public Accountants (CPAs).

123

Pollino

Affirms. Details audit staff.

132

Chair Krummel

Asks her opinion on the audit division.

137

Pollino

Answers that, unlike other states, Oregon’s audit division is separate from the Governor’s office and from the Legislature thus providing the agency with functional independence.

158

Chair Krummel

Asks if auditors have the ability to move to other agencies.

167

Pollino

States they do have independent standards that are dependent on tenure with the agency.

173

Chair Krummel

Asks if the agency has the authorization to recover data.

182

Pollino

Says they have access to all kinds of information, but they would not necessarily be the ones to recover it.

188

Chair Krummel

Clarifies with regard to destroyed evidence on computers.

192

Pollino

Responds the agency has used Oregon State Police (OSP) forensic auditing services in situations such as these.

196

Chair Krummel

Wonders if set benchmarks would help aid the division in terms of audits.

204

Pollino

Answers it would be helpful especially in the areas of economic development.

215

Rep. Nelson

Requests the annual budget of the division.

216

Pollino

Replies the biennium budget is $13 million allowing an estimated $6.5 to $7 million per annum.

222

Rep. Nelson

Poses a question regarding the funds moved within a department.

228

Pollino

Responds that as this practice is likely in many programs, a request would need to be made. 

233

Rep. Nelson

Comments about Oregon Health Plan (OHP) audit. Asks whose responsibility it is to follow up in these matters.

247

Pollino

Answers they are changing their process on that currently so that agencies will report back over time. Offers they have no power to make anyone do anything, as that is the job of the Legislature.

262

Chair Krummel

Closes informational meeting. Adjourns at 10:16 AM.

 

EXHIBIT SUMMARY

 

A – LC draft 1268, Staff, 24 p

B – HB 2417,  prepared testimony, Rep. Betsy Close, 2 pp

C – HB 2417, written testimony, Brandon Bennett, 2 pp

D – Informational, Audits and Fiscal Accountability, Cathy Pollino, 10 pp

E – Informational, Audit Report, Cathy Pollino, 24 pp