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PUBLIC
HEARING, WORK SESSION HB
2213, HB 2454 A |
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TAPE 83, 84,
A-B |
MARCH 17,
2003 8:30 AM STATE CAPITOL BUILDING
Members Present: Representative Lane Shetterly, Chair
Representative
Wayne Scott, Vice Chair
Representative
Joanne Verger, Vice Chair
Representative
Phil Barnhart
Representative
Vicki Berger
Representative
Pat Farr
Representative
Mark Hass
Representative
Elaine Hopson
Representative
Max Williams
Witness Present: Senator Ken Messerle, District 5
Representative
Joanne Verger, District 9
Gary
Letellier, Coos County Aviation District
Daren
Griffin, Oregon Department of Aviation
Dave
Tyler, Oregon Department of Transportation
Doug
Goe, Partner, Orrick, Harrington
Staff Present: Paul
Warner, Legislative Revenue Officer
Mazen
Malik, Legislative Revenue Office
Dick
Yates, Legislative Revenue Office
Kathy
Tooley, Committee Assistant
TAPE 83, SIDE A
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004 |
Chair Shetterly |
Calls meeting to order at 8:35 a.m. |
PUBLIC HEARING 2454-A
|
010 |
Mazen Malik |
Provided background and description of HB 2454-A, with no revenue
impact, (Exhibit 1, Exhibit 2). |
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035 |
Rep. Verger |
Provided description and background of HB 2454-A. Emphasized that the
airport district property is “within or contiguous to the airport property”. |
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050 |
Sen. Messerle |
Spoke in support of HB 2454-A, which redefines who maintains the
exemption. Discussed importance to
local economy and infrastructure that airport is maintained. |
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099 |
Gary Letellier |
Spoke in support of HB 2454-A, (Exhibit 3), heavily regulated by
federal statutes; must show that district can run a federally certificated
airport and manage it financially. Discovered
language in ORS which could place district at disadvantage, bill ads “any
airport district”. |
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145 |
Chair |
Makes explicit, what is implicit in statute, so anyone looking at the
ORS could find the words “airport district” right in the exemption and not
have to backtrack to get there. |
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152 |
Letellier |
Answered affirmatively. |
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125 |
Darren Griffin |
Spoke in support of Coos County airport district. This bill is to correct and ensure
airports are tax exempt. |
|
170 |
Chair Shetterly |
This was before the General Government Committee and approved with do
pass recommendation. |
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174 |
Chair Shetterly |
Closed Public Hearing on HB 2454-A. |
WORK SESSION HB 2454-A
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180 186 |
Verger |
MOTION: MOVED HB 2454-A TO
THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION ROLL CALL: MOTION PASSED 8-0-1 REPRESENTATIVES VOTING AYE:
Barnhart, Berger, Farr, Hass, Hopson, Verger, Williams, Chair
Shetterly. EXCUSED: Scott Rep. Verger will carry the bill. |
OPENED PUBLIC HEARING ON HB 2213
|
196 |
Dick Yates |
Provided background on HB 2213, (Exhibit 5). |
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200 |
Dave Tyler |
Spoke in favor of HB 2213, (Exhibit 6). Discussed issuance of bonds, housekeeping changes in the bill. Discussed four substantive changes: ·
Requesting
authority to issue Grant Anticipation Revenue Vehicle Bonds. ·
ODOT
can authorize short term borrowing arrangements, requesting authority to
increase to 3 years, increase maximums from $25 to $100 million. ·
Issuance
of general obligation bonds, do not intend to use, but changes authority to
borrow and provides for a maximum. ·
Currently
bonds can only extend to 30 years, requesting authority to extend maturities
to maximum expected economic life of project financed. |
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308 |
Doug Goe |
Spoke in support of HB 2213, discussed GARVEE bonds as a tool used by
a number of states which provides flexibility to ODOT if need arises; clarifies
and modernizes ODOT financing statutes. |
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332 |
Rep. Barnhart |
GARVEE bonds offers flexibility in what way would it leverage federal
money? |
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341 |
Tyler |
It would allow for a leveraging and flexibility technique called “advance
construction” uses 100% of federal funds directly on a project and hang on to
state funds to spending on other projects coming through the STIP. |
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356 |
Rep. Barnhart |
What’s the maximum period of time you can borrow money for now? Why
would you want to extend to 75, 100 years, extending interest payments with
little reduction in payments by the year? |
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369 |
Tyler |
Current statute limits maturity periods of Highway Tax User Revenue
Bonds to 30 years, with the possibility of constructing projects that could
extend the life of the asset to 75 to 100 years. There could be circumstances
ODOT would want to extend to 35 to 40 years, most likely not 75-100 years. |
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402 |
Rep. Barnhart |
What controls are there in this bill or statue to oversee
determinations described? |
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407 |
Tyler |
Work closely with internal financing team with approval by Treasurer’s
Office. There is a biennial bond limit bill adopted each session to contain
maximums for debt issuance for state agencies. |
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426 |
Rep. Barnhart |
Does legislature determine maximum maturity periods? |
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431 |
Tyler |
No, each agency requests a maximum debt issuance number within the
bond bill. |
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436 |
Rep. Barnhart |
Does the Treasurer support the bill? |
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442 |
Tyler |
In discussions with Chuck Smith, Director of Debt Management and is
supportive of the bill. |
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435 |
Rep. Hass |
How can Oregon depend on credit of federal government to fund
transportation programs 10-20 years from now? |
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460 |
Goe |
The rating agencies and the financial markets reflect in GARVEE bonds
for shorter maturity period of 7 to 10 year period. There is a close relationship with the Treasurer’s Office, the
rating agencies, investment banker advisory team. These are revenue bonds,
investor takes the risk that federal monies are not available. |
TAPE 84, SIDE A
|
043 |
Rep. Hass |
As policy, this is going down the wrong track with borrowing and bonding
for transportation projects, would prefer pay as we go. |
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054 |
Rep. Verger |
Closed public hearing on HB 2213. |
PUBLIC HEARING ON HB 2454
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061 |
Rep. Farr |
Shares Rep. Hass apprehension about continued reliance on borrowing
money to complete projects, but state’s situation is grave as regards transportation
needs. |
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065 |
Rep. Barnhart |
If we are to borrow money, capital expense is the type of expense
needs to be done for, not operating expenses; cites backlog of maintenance
that needs to be completed. Borrowing
for 20-30 years on an asset that will last 50-60 years is reasonable and
prudent. Concerned about borrowing
money past 30 years due to high interest payments. |
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093 |
Rep. Verger |
Reminded the committee that HB 2213 was recommended by the House
Committee on Transportation with a do pass recommendation. |
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101 110 |
Rep. Farr |
MOTION: MOVED HB 2213 TO THE HOUSE FLOOR WITH A DO PASS
RECOMMENDATION ROLL CALL: MOTION PASSED 7-0-1 REPRESENTATIVES VOTING AYE:
Barnhart, Berger, Farr, Hass, Hopson, Verger, Williams, EXCUSED: Scott, Chair Shetterly. Rep. Farr will carry the bill. |
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117 |
Rep. Verger |
Meeting adjourned at 9:10 a.m. |
Tape Log Submitted by,
Kathy Tooley, Committee
Assistant Reviewed by Kim Taylor James
Exhibit Summary:
1.
Malik,
“Staff Measure Summary, Revenue Impact HB 2434-A”, 2 pages
2.
Malik,
“House Committee on General Government Staff Measure Summary HB 2434-A”, 1 page
3.
LeTellier,
“Testimony HB 2434-A, 2 pages
4.
Oregon
Revenue Coalition written testimony, “HB 2454”, 3 pages
5.
Yates,
“Staff Measure Summary, HB 2213”, 2 pages
6.
Tyler,
“Testimony HB 2213”, 4 pages