HOUSE COMMITTEE ON TRANSPORTATION

 

 

February 07, 2003   Hearing Room 357

9:00 AM Tapes  17 - 18

 

MEMBERS PRESENT:            Rep. Alan Brown, Chair

Rep. Elizabeth Beyer, Vice-Chair

Rep. John Mabrey Vice-Chair

Rep. Jackie Dingfelder

Rep. George Gilman

Rep. Mitch Greenlick

Rep. Cliff Zauner

 

STAFF PRESENT:                  Janet Adkins, Committee Administrator

Ryan Sherlock, Committee Assistant

 

MEASURE/ISSUES HEARD:            HB 2173 – Public Hearing and Work Session

                                                HB 2211 – Public Hearing and Work Session

                                                HB 2222 – Public Hearing

                                                HB 2223 – 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 Brown

Calls meeting to order at 9:05 a.m., and opens a public hearing on HB 2173.

HB 2173 – PUBLIC HEARING

005

Janet Adkins

Committee Administrator, offers a description of HB 2173, and introduces the Fiscal Impact Statement (EXHBIT A) for HB 2173.

030

Ann Crook

Oregon Department of Aviation, Director. Offers written testimony (EXHIBIT B) in support of HB 2173.

070

Rep. Beyer

Clarifies that the fee in question is an annual registration fee.

075

Crook

Explains that  the aircraft fee is annual, but the pilot registration fee is every two years.

080

Rep. Greenlick

Clarifies that currently the offense is a Class A violation, but this bill would make this a misdemeanor.

085

Crook

Indicates that HB 2173 does not create a misdemeanor, but offers more authority to the Aviation Department.

095

Rep. Greenlick

Reference and quotes subsection four of the measure, and questions whether this line is a new addition to current law.

100

Adkins

Indicates that subsection four is not being added, but already present in the penalty statute.

105

Lynn Rosik

Oregon Department of Justice, Assistant Attorney General. Clarifies that line four is not a change, but just moved from another part of the statute.

115

Rep. Greenlick

Acknowledges the point.

117

Rep. Gilman

Asks how much money the Department of Aviation has in the search and rescue account.

120

Crook

Estimates that the account is currently at $180,000 dollars.

123

Rep. Gilman

Asks where the money collected as fines would go.

125

Crook

Explains that the money collected as fines would go into the state aviation account, which is different from where it would currently go.

130

Chair Brown

Clarifies that if the proposed program happens there will be proper notification about the effects.

135

Crook

Discusses the proposed notification process.

140

Rep. Zauner

Asks what the recourse is, after the pilots and other affected parties are notified, for non-compliance.

142

Crook

Explains that there currently is no administrative rule for this, so she is unsure, but further discusses the penalty.

150

Rep. Zauner

Asks how they would be able to collect the proposed fee, when currently they have difficulty collecting fees.

152

Crook

Explains that they currently have the people to collect the fee, but what they don’t have is the court system to prosecute offenders.

155

Chair Brown

Thanks Ms. Crook and recognizes Mr. Trujillo.

160

Mark Trujillo

Oregon Pilots Association, President. Offers written testimony (EXHIBIT C) in support of HB 2173.

175

Rep. Zauner

Asks if the pilots being registered are asked whether they are United States citizens.

180

Crook

Explains that they do not ask if the pilots are citizens of this country, but points out that they do ask such things as contact information, color of the aircraft, the home base of the aircraft.

190

Rep. Zauner

Asks whether the Aviation Department checks the validity of the information received on applications.

195

Crook

Explains that there currently is no process to validate applications.

200

Chair Brown

Recalls that pilots licenses issued by the Federal Aviation Administration (FAA) use the applicants social security number (SSN) as their pilots number, and asks if this is also true of the state license.

202

Crook

Explains that the pilots license is tracked by the FAA number.

210

Chair Brown

Closes the public hearing on HB 2173, and opens a work session on HB 2173.

HB 2173 – WORK SESSION

215

Rep. Beyer

MOTION:  Moves HB 2173 to the floor with a DO PASS recommendation.

220

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Brown

The motion CARRIES.

GILMAN will lead discussion on the floor.

225

Chair Brown

Closes the work session on HB 2173, and opens a public hearing on HB 2211.

HB 2211 – PUBLIC HEARING

235

Adkins

Offers a description of HB 2211.

260

Dave Tyler

Oregon Department of Transportation, Chief Financial Officer. Offers written testimony (EXHIBIT D) in support of HB 2211.

330

Quintin Hess

Oregon Department of Transportation, Fuels Tax Group, Manager. Offers testimony in support of HB 2211.

380

Chair Brown

Asks about the dealers who went bankrupt while owing the state millions of dollars.

385

Hess

Responds discussing these specific cases.

400

Tyler

Explains that HB 2211 is designed to punish those who abuse the current system, and would not affect most dealers.

405

Chair Brown

Asks how expensive the bonds are.

410

Hess

Estimates that a million dollar bond would cost about five to six thousand dollars. Explains that the difficulty comes when some dealers might not be able to get a bond due to bad credit, and explains the steps taken in this case.

TAPE 18, A

010

Rep. Mabrey

Clarifies that when Mr. Tyler refers to dealers he is not referring to the retail dealer who pumps the gasoline into the cars, but rather the wholesale dealer who dispenses the gasoline to the retailers.

015

Hess

Confirms, stating that there are about 180 dealers which fall into this category.

020

Rep. Mabrey

Makes clear that these dealers are small independent wholesalers affected by this bill rather than the large oil companies.

022

Hess

Explains that those affected come from both categories.

025

Rep. Mabrey

Clarifies when the tax is assessed.

028

Hess

Discusses how licensing affects when the tax is assessed.

035

Rep. Greenlick

Asks how many dealers would be affected by the bill.

040

Hess

Estimates that they would have two dealers who would have required this higher bond.

041

Rep. Greenlick

Asks if there are any currently.

043

Hess

Responds that he assumes everyone would start fresh, and only need the higher bond with future violations.

047

Tyler

Explains that currently there are no dealers who would be subject to the higher bond.

049

Rep. Zauner

Asks how long it takes to accumulate the million dollar bond.

051

Hess

Explains when taxes are assessed vs. when they are due, and how the million dollar bond works in protecting tax liability.

055

Rep. Zauner

Asks if a million dollar fuel load can be delivered in one delivery.

060

Tyler

Explains that any fuel delivered in one month has a tax due on the 15th of the next month, further explaining the length of time it takes to suspend a license and how that affects tax collection.

070

Rep. Zauner

Clarifies that there is no prior indication that a dealer will miss a payment.

072

Tyler

Explains that in previous instances there was no prior indication.

080

Rep. Zauner

Asks why they don’t just collect in advance for every dealer, and asks who would be opposed to the bill.

085

Hess

Indicates who would be opposed, and discusses the timing of tax payments.

090

Rep. Zauner

Asks if the dealers had to pay more for bonds, the state would be able to make a deal for some of the “floated” tax.

095

Hess

Explains that there would have to be legislation to accomplish this.

098

Tyler

Explains that ODOT has worked closely with the industry over tax collection, and indicates that the industry has been extremely cooperative with sharing the tax “float,” and HB 2211 is targeted on those that abuse the system and ignore those that follow the rules.

120

Rep. Beyer

Asks how many dealers their currently are in Oregon.

121

Hess

Indicates there are about 180 currently operating in Oregon.

123

Chair Brown

Asks about the Indian tribes which operate their own gas stations, and whether they collect the Oregon road tax.

125

Hess

Answers affirmatively, and discusses those efforts.

145

Paul Romain

Oregon Petroleum Marketers Association (OPMA), Representative. Introduces Cliff Olson, Chief Financial Officer for the Marc Nelson Oil Producers. Offers testimony in support of HB 2211, Describing how Oregon Department of Transportation (ODOT) formulated the proposed bill (as well as HB 2222 and HB 2223) by working with the industry.

170

Rep. Beyer

Identifies the short time frame in which these dealers become problems, and questions whether HB 2211 would catch what it proposes to catch.

185

Romain

References HB 2222 as allowing immediate suspension of licenses giving ODOT the tool to identify and work with those who show signs of becoming problems.

190

Chair Brown

Thanks the witnesses, closes the public hearing and opens a work session on HB 2211.

HB 2211 – WORK SESSION

195

Rep. Beyer

MOTION:  Moves HB 2211 to the floor with a DO PASS recommendation.

200

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Brown

The motion CARRIES.

REP. BEYER will lead discussion on the floor.

202

Chair Brown

Closes the work session on HB 2211, and opens a public hearing on HB 2222.

 

HB 2222 – PUBLIC HEARING

205

Adkins

Offers a description of the bill.

235

Dave Tyler

Oregon Department of Transportation, Chief Financial Officer. Offers written testimony (EXHIBIT E) in support of HB 2222.

240

Quintin Hess

Oregon Department of Transportation, Fuels Tax Division Manager. Offers testimony in support of HB 2222.

295

Rep. Greenlick

Questions the link between HB 2211 and HB 2222.

305

Hess

Explains the difference between HB 2211 and HB 2222, and how they work together to better the states’ collection of fuels tax liability.

320

Rep. Greenlick

Recognizes the difference between HB 2211 and HB 2222, and acknowledges the purpose of HB 2222, but questions whether HB 2211 gives ODOT the authority to use increased bonds in conjunction with released suspension.

330

Hess

Explains how the higher bond works with the license suspension.

335

Rep. Gilman

Clarifies that when a license is suspended and the tax is passed to the next dealer, that this does not preclude the suspended dealer from conducting business.

350

Hess

Agrees, explaining that the tax is passed, but the dealer is not stopped from conducting business.

355

Rep. Gilman

Asks how the state would notify the supplier that the other party does not have a license.

360

Hess

Explains that the suspended dealer would receive a certified letter, and all the other dealers would be notified of the suspension.

375

Rep. Greenlick

Expresses concerns with the notification occurring through regular mail, and suggests that the notification occur through other means as well as regular mail.

385

Hess

Observes that Mr. Doherty will address this point, further discusses the notification efforts, and recognizes the value of an amendment that would require other forms of notification.

TAPE 17, B

001

Tyler

Discusses other notification means.

015

Brian Doherty

Western States Petroleum Association, Representative. Offers testimony in support of HB 2222, but discusses his groups’ concern regarding the notification of the policies outlined in HB 2222.

045

Chair Brown

Clarifies that Mr. Doherty intends to work with ODOT to draft an amendment which would address these concerns.

017

Doherty

Answers affirmatively.

020

Rep. Greenlick

Recommends that the amendment allow for more flexibility in notification.

030

Doherty

Agrees, and further discusses the difficulty in notification.

040

Rep. Greenlick

Asks if this could be dealt with by rule rather than statute, and recommends the statute be drafted to be flexible, while the rule supplies specificity.

045

Doherty

Agrees, but expresses concerns.

050

Chair Brown

Closes the public hearing on HB 2222, and opens a public hearing on HB 2223.

HB 2223 – PUBLIC HEARING

065

Adkins

Offers description of HB 2223.

070

Dave Tyler

Oregon Department of Transportation, Chief Financial Officer. Offers written testimony (EXHIBIT F) in support of HB 2223.    

085

Quintin Hess

Oregon Department of Transportation, Fuels Tax Division. Offers testimony in support of HB 2223.

110

Rep. Gilman

Asks how much the mentioned licenses cost.

115

Tyler

Responds that the licenses are free.

116

Rep. Zauner

Asks whether gasoline placed into underground tanks can be siphoned out, avoiding taxes.

120

Hess

Explains that at the point the gasoline enters the underground tank, it has already been taxed.

127

Adkins

Asks about deleted language in the bill.

130

Hess

Responds that the language was deleted because it was outdated.

140

Chair Brown

Closes the public hearing on HB 2223, and opens a work session on HB 2223.

HB 2223 – WORK SESSION

150

Rep. Gilman

MOTION:  Moves HB 2223 to the floor with a DO PASS recommendation.

 

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Brown

The motion CARRIES.

160

Adkins

Discusses the upcoming schedule for the committee.

167

Chair Brown

Closes the work session on HB 2223, and adjourns the meeting at 10:14 a.m.

 

 

EXHIBIT SUMMARY

 

A – HB 2173, Fiscal Impact Statement, Staff, 2 pp.

B – HB 2173, written testimony, Ann Crook, 1 p.

C – HB 2173, written testimony, Mark Trujillo, 1 p.

D – HB 2211, written testimony, Dave Tyler, 1 p.

E – HB 2222, written testimony, Dave Tyler, 1 p.

F – HB 2223, written testimony, Dave Tyler, 1 p.