PUBLIC HEARING, WORK SESSION HB 3616-A  

 

TAPE 167, 168, AB

 

HOUSE REVENUE COMMITTEE

MAY 16, 2003   8:30 AM   STATE CAPITOL BUILDING

 

Members Present:                        Representative Joanne Verger, Vice Chair

                                                Representative Wayne Scott, Vice Chair

                                                Representative Phil Barnhart

                                                Representative Vicki Berger

                                                Representative Pat Farr

                                                Representative Mark Hass

                                                Representative Elaine Hopson

                                                Representative Max Williams                                               

 

Members Excused:                      Representative, Lane Shetterly, Chair

 

Witnesses Present:                        Representative Jackie Dingfelder, District 45

                                                Mark Barsotti, Department of Forestry, (DOF)

                                                Andrew Bowman, Defenders of Wildlife

                                                John Phillips, Department of Revenue (DOR)

                                                Bruce Tindall, DOR

                                                Gil Riddell, Association of Oregon Counties, and League of Oregon Cities

                                                Katie Fast, Oregon Cattlemen’s Association

                                                Gail McKewan, Oregon Department of Fish and Wildlife (ODFW)

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Mazen Malik, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 167, SIDE A

 

004

Vice Chair Verger

Calls meeting to order at 8:40 a.m.

 

OPENED PUBLIC HEARING ON HB 3616-A

 

044

Rep. Jackie

Dingfelder

Spoke in support and provided an overview of HB 3616-A, (Exhibit 1). Bill comes out of recommendations from the Conservation Incentives Work Group, and was approved by the House Water Committee with amendments.  Knows of no opposition to the bill.

 

075

Rep. Dingfelder

Described –A4s, (Exhibit 2) requires the Fish and Wildlife Commission give significant weight to a city or county’s argument regarding economic burden.

 

095

Mark Barsotti

Spoke in support of HB 3616-A, discussed work group from cities, counties, and conservation group, all agreed on incentives as effective tool in meeting resource needs.

 

105

Barsotti

DOF most interested in stewardship agreements allowing the farmer/ forester to holistically work with regulators and have one plan for their property.

 

121

Andrew Bowman

Spoke in support of HB 3616-A.  Reiterated testimony by Rep. Dingfelder and Barsotti.

 

145

Rep. Barnhart

Would like to know more about the revenue impact and evaluation issues.

 

150

Mazen Malik

Discussed revenue impact of HB 3616-A, (Exhibit 3).

 

192

Rep. Hass

How is this going to work? Who is going to use this?  How would it be put into practical use?

 

203

Bowman

Provided hypothetical example, where land was moved from farm or forest assessment into wildlife habitat special assessment without being hit with higher property taxes, assumes ODFW approval of land for program. Rather than create an incentive, it removes a disincentive.

 

212

Rep. Hass

Why is that?

 

215

Bowman

If the landowner was getting a farm or forest use special assessment, and could no longer meet the criteria for the special assessment, they would be disqualified and face back taxes and a higher ongoing property tax bill.

 

229

Rep. Hass

If someone isn’t in a timber or farmland, are those the only practical places this would apply?

 

232

Bowman

There may be some circumstances where the person is at a market rate assessment. Unable to determine how often it would happen, don’t think often.  These lands are already in resource zones and probably in the special assessment.  Bill provides a safety net for cities or counties to say an economic burden exists and would like to opt out of the program.

 

246

Rep. Barnhart

What happens to old taxes due for land gone out of assessment for some other reason?

 

256

John Phillips

Disqualification would be for 10 years, taxes due as if disqualified from open space or under this program.

 

262

Rep. Barnhart

Value of program is that it prevents back taxes becoming due from a special assessed area if it goes into the habitat program. What happens to taxes otherwise due if it is disqualified from habitat program, but for this bill?

 

288

Phillips

Provided explanation of back taxes due.

 

300

Rep. Verger

Requested explanation of cities and counties being able to opt out.

 

294

Bruce Tindall

Described special assessment disqualifications, going from one special assessment to another, potential tax liability rolls with the land.

 

321

Rep. Barnhart

What happens if the county/city opts out of the program?

 

324

Tindall

Those in the special assessment stay in until disqualified or remove themselves; it is not a retroactive removal.

 

330

Gil Riddell

AOC agrees natural resources policy at this stage is more effective to provide incentives than regulations. Opt in and out provision is important for local buy in. This bill allows counties to try the program, and can petition Fish and Wildlife Commission to opt out. Also supported the –A4 amendments.

 

360

Katie Fast

Participated in work group, concerns were addressed in the Water Committee with the amendments. Supported flexibility for counties to opt in and out of the program.  Supported the Department of Agriculture addition to the stewardship agreement program.

 

388

Rep. Verger

What is the public process?  What it the county commissioners think this is a good idea and haven’t been in before, is there a public process?

 

400

Riddell

Up to the individual county, believes there would be a public process.    Cited example of individual doing something that makes sense to resource and economy without penalty.  Constituents would come to the county and enter into the public process.

 

439

Malik

ODFW is required by the bill to examine the designation periodically, is that every year, two years, or three years?

 

450

Gail McKewan

Currently, have a biologist assigned to each county to work with landowners on this program and are required to monitor properties in program at periodic intervals to ensure compliance.  Anticipate having an adequate number of staff to keep up with the program.

 

482

Rep. Berger

How many current projects are going on, and for how long?

 

487

McKewan

Gave history of program which began as a pilot project in Marion and Polk Counties, discussed expansion.

 

 

TAPE 168, SIDE A

 

039

Rep. Verger

Described emotional reaction from county, where regulatory process defines attitude that might prevent them from being open to this, in spite of the consensus building that has gone into this bill?

 

053

Barsotti

Described wildlife planning process and stewardship agreement which allows landowner to have access to other funds.  Described relationship to ODFW and Soil and Conservation and access to financial and technical resources.

 

076

Rep. Verger

Closed Public Hearing on HB 3616-A.

 

OPENED WORK SESSION ON HB 3616-A

 

082

Rep. Williams

MOTION:  MOVED ADOPTION OF THE –4 AMENDMENTS INTO HB 3616.

 

ORDER:  HEARING NO OBJECTION, THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT EXCEPT CHAIR SHETTERLY, EXCUSED).

 

086

Rep. Williams

MOTION:  MOVED HB 3616, AS AMENDED, TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

ROLL CALL:  MOTION PASSED 8-0-1

REPRESENTATIVES VOTING AYE:  Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Williams.  EXCUSED:  Chair Shetterly.

 

Rep. Dingfelder to carry the bill.

 

 

 

100

Rep. Verger

Adjourned the meeting at 9:15 a.m.

 

Tape Log Submitted by,

 

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Dingfelder, “Testimony HB 3616-A”, 2 pages

2.       Dingfelder, “HB 3616-A4 Amendment”, 1 page

3.       Malik, “Revenue Impact HB 3616-A4” 1 page

4.       Malik, “Staff Measure Summary HB 3616-A”, 2 pages