HOUSE COMMITTEE ON TRADE AND ECONOMIC DEVELOPMENT

 

 

April 18, 2003 Hearing Room D

1:00 PM  Tapes 47 - 48

 

 

MEMBERS PRESENT:            Rep. Patti Smith, Chair

Rep. Vicki Berger, Vice-Chair

Rep. Mary Gallegos, Vice-Chair

Rep. Mark Hass

Rep. Dave Hunt

Rep. Steve March

Rep. Dennis Richardson

 

STAFF PRESENT:                  Kimberly A.  Medford, Committee Administrator

Linda K. Gatto, Committee Assistant

 

MEASURES HEARD:                     HB 3584 Work Session

                                                HB 3548 Work Session

                                                HB 3613 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 47, A

003

Chair Smith

Calls the meeting to order at 1: 12 p.m. and opens the work session on      HB 3584.

HB 3584 WORK SESSION

010

Rep. Hunt

MOTION:  Moves to ADOPT HB 3584-2 amendments dated 04/16/03, (EXHIBIT A).

013

Rep. Hunt

Reviews the changes proposed in the -2 amendments.

029

 

VOTE:  7-0

 

Chair Smith

Hearing no objection, declares the motion CARRIED.

030

Rep. Hunt

MOTION:  Moves HB 3584 with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means by prior reference.

035

Rep. Hunt

Notes that it is his belief that the fiscal issues have been addressed.

040

 

VOTE:  7-0

 

Chair Smith

Hearing no objection, declares the motion CARRIED.

045

Chair Smith

Closes the work session on HB 3584 and opens the work session on HB 3548.

HB 3548 WORK SESSION

049

Rep. Richardson

MOTION:  Moves to ADOPT HB  3548-1 amendments dated 04/18/03, (EXHIBIT B).

052

Rep. Richardson

Explains the proposed changes in the -1 amendments. Reads the proposed changes and explains this is the net result.

078

 

VOTE:  7-0

 

Chair Smith

Hearing no objection, declares the motion CARRIED.

080

Rep. Richardson

MOTION:  Moves HB 3548 to the floor with a DO PASS AS AMENDED recommendation and the SUBSEQUENT REFERRAL to the committee on Ways and Means BE RESCINDED.

084

Rep. Gallegos

Asks if there is a fiscal impact.

090

Doris Penwell

Economic and Community Development Department. Explains that   HB 3548 as amended allows the department flexibility in the promotion of trade with China. Explains that as the bill stands now there is not a fiscal impact to the department.

119

Rep. Hass

Expresses concern that the department is being  micro-managed.

135

 

VOTE:  6-1

AYE:               6 - Berger, Gallegos, Hunt, March, Richardson, Smith P.

NAY:               1 – Hass

 

Chair Smith

The motion CARRIES.

 

 

REP. RICHARDSON will lead discussion on the floor.

(*see tape 48A click #160).

141

Chair Smith

Closes the work session on HB 3548 and opens the work session on HB 3613.

HB 3613 WORK SESSION

145

Rep. Hunt

MOTION:  Moves HB 3613 to the floor with a DO PASS recommendation.

148

Rep. Hunt

Reviews the discussions on HB 3613. Asks does the legislature have the role of setting guidelines or standards in terms of investments. 

166

Rep. Hunt

States that there are conceptual amendments and reviews them for the record.

  • Page 1, eliminate the section that begins on lines 27, 28, 29 and line 1 on page 2.
  • Page 2, line 36, eliminate the words “nor more than 200 million” and in line 37 after “Oregon” add the words “unless, under the circumstances, it is not prudent to do so” and delete lines 38, 39, and 40.

Explains the intent is that the prudent standard test should hold. Adds it is hopeful the senate will make these changes.

208

Randall Edwards

State Treasurer. Submits the Attorney General’s opinion and correspondence from Olympic Venture Partners, (EXHIBIT C). Reviews key concerns and requests that the bill not pass too hastily.

289

Kate Richardson

Chief of Staff, Oregon State Treasury. States that the constitutional concerns are not alleviated by the conceptual amendments.

308

Richardson

Explains concerns about amending the prudent investment standard. 

330

Rep. Hunt

Asks how do the conceptual amendments change the prudent investment standard.

335

Richardson

Responds that the conceptual amendments would still leave in 4a and 4b, and the Department of Justice’s correspondence discusses the meaning of that.

358

Rep. Hunt

Clarifies the intent of lines 6 and 7 “unless it is not prudent to do so” and the “shall up to 1%”.

380

Richardson

Responds that it adds a different implementation of the prudent investment standard and is therefore amending the standard.

392

Rep. March

Ask if there were two equally sound investments and one was in Oregon and one was not, would it be imprudent to invest in the Oregon investment.

399

Edwards

Answers that the due diligence process would establish the risk and the Oregon Investment Policy would direct that the investment be in Oregon. Explains that first and foremost the objective is to get a return on investment. 

426

Rep. Richardson

Asks Rep. Hunt if on page 2 line 36 of the proposed amendment if  deleting “no more than 200 million” is the recommended wording.

437

Rep. Hunt

Reads “the council may not have investments at any one time of less than 100 million dollars in emerging growth businesses in Oregon unless under the circumstances it is not prudent to do so”.

448

Chair Smith

Notes that this is a conceptual amendment and reminds the committee that the motion is to move the bill to the floor with a do pass recommendation.

TAPE 48, A

011

Harvey Matthews

Associated Oregon Industries, (AOI). Reviews Section 1 of HB 3613, current statute and notes that this is language that was passed in 1985.

029

Matthews

Pledges to work these amendments on the senate side. Notes for the record that Olympic Venture Partners currently benefit from the investments from the Oregon Investment Council; and that about half of the states in the union apply the prudent investment standard.

053

Rep. March

Confirms that it is the intention on page 2 line 33 to change “shall” to “may” and the prudent standard language.

064

Matthews

Answers affirmatively.

072

Rep. Berger

Explains that because there is pension money involved she is not comfortable voting on the bill.

081

Rep. Richardson

Explains that he will be a no vote because of the $100 million requirement and the use of pension money.

117

Rep. March

States that it is his intention to work on language that will address everyone’s concern. States that he will give the bill a courtesy yes vote.

124

Rep. Hass

Explains that due to the new information and possible consequences he would prefer to hold off on taking action on the bill.

140

Rep. March

Discusses the values.

150

 

VOTE:  4-3

AYE:               4 - Gallegos, Hunt, March, Smith P.

NAY:               3 - Berger, Hass, Richardson

 

Chair Smith

The motion CARRIES.

REP. GREENLICK will lead discussion on the floor.

160

Chair Smith

Closes the work session on HB 3613. *Confirms that Rep. Richardson is the carrier for HB 3548. Adjourns the meeting at 2:00 p.m.

 

 

EXHIBIT SUMMARY

 

A.  HB 3584-2 amendments dated 4/16/03, Rep. Dave Hunt, 3 pp

B.  HB 3548-1 amendments dated 4/18/03, Rep. Dennis Richardson, 1 p

C.  HB 3613, Department of Justice legal opinion and Olympic Venture Partners correspondence, Treasurer Randall Edwards, 6 pp