HOUSE COMMITTEE ON WATER

April 10, 2003 Hearing Room B

8:00 AM Tape 53 - 56

MEMBERS PRESENT: Rep. Bob Jenson, Chair

Rep. Jackie Dingfelder, Vice-Chair

Rep. Jeff Kropf, Vice-Chair

Rep. Jeff Kruse

Rep. Linda Flores

Rep. Mike Schaufler

Rep. Carolyn Tomei

STAFF PRESENT: Pete Test, Committee Administrator

Ryan Sherlock, Committee Assistant

MEASURE/ISSUES HEARD: HB 3519 – Public Hearing

HB 2688 – Public Hearing and Work Session

HB 2659 – Public Hearing and Work Session

HB 3297 – Public Hearing and Work Session

HB 2887 – Work Session

HB 2800 – Public Hearing

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 53, A
003	Chair Jenson	Calls meeting to order at 8:10 a.m., and opens a public hearing on HB 3519.
HB 3519 – PUBLIC HEARING
010	Pete Test	Committee Administrator. Offers a description of HB 3519.
015	Chair Jenson	Explains that there could be contention on HB 3519, and may require future hearings.
030	Test	Offers a description of the proposed -1 amendment (EXHIBIT A).
050	Jeannette Holman	Division of State Lands (DSL). Offers written testimony (EXHIBIT B) regarding HB 3519, and expresses DSL’s concerns with the measure.
085	Chair Jenson	Clarifies the DSL’s position on the bill.
095	Rep. Schaufler	Clarifies that while the DSL has concerns with the bill, it would effectively limit harassment lawsuits.
100	Holman	Addresses the harassment issue.
115	Rep. Dingfelder	Questions why the bill is before the committee.
120	Chair Jenson	Explains that the Chair likes the bill.
125	Rep. Dingfelder	Asks whether the DSL makes some record of complaints to help limit harassment.
130	Holman	Defers to Mr. Purchase.
140	Steve Purchase	Division of State Lands. Offers a description of the current complaint record process including what information is obtained.
155	Rep. Dingfelder	Expresses concern for the discretionary aspect of the bill.
160	Rep. Schaufler	Clarifies that the discretionary option of the director must have some process.
170	Purchase	Explains that the DSL looks at all complaints, and that some complaints are made by the same party on numerous occasions.
180	Rep. Schaufler	Discusses the issue of frivolous complains, and the ability to assess a fee to help limit these complaints.
190	Purchase	Expresses concern that this fee could be seen as intimidation.
195	Rep. Kruse	Explains that these frivolous compliant could be seen as intimidation themselves. Further discusses the issue of complaints.
220	Holman	Discusses the need for some criteria of what harassment is.
240	Rep. Kruse	Comments on the reporting aspect, opinions that the agency would clarify the definition of “harassment” in rule.
260	Purchase	Explains that when the DSL comes to a litigious point with a compliant they rely on statute.
265	Rep. Kruse	Asks what that language should be in statute.
270	Purchase	Explains that he does not know what the language should be.
275	Rep. Kruse	Explains that he does not want to limit the discretionary ability to limit frivolous complaints.
295	Rep. Tomei	Asks how many complaints the DSL receives and how many are deemed frivolous.
300	Purchase	Explains that the division receives about two thousand complaints a year, but that he does not know how many could be considered harassment.
310	Rep. Tomei	Asks how that would break down per week, or per month.
315	Purchase	Explains that it would be around 175 – 200 per month.
325	Chair Jenson	Explains that this issue of DSL complaints is a big issue for rural communities and rural constituents.
335	Rep. Tomei	Expresses concern for reciprocity from large developers on those that raise complaints.
355	Holman	Discusses the concern of reciprocity and litigation.
375	Rep. Anderson	House District 3. Offers written testimony (EXHIBIT C) in support of HB 3519.
TAPE 54, A
025	Rep. Tomei	Asks whether Rep. Anderson has experience in frivolous complaints.
030	Rep. Anderson	Explains that he has constituents who have experienced such complaints, and offers an example.
040	Rep. Tomei	Asks whether Rep. Anderson’s intent is to punish the division as well as the frivolous complainers.
045	Rep. Anderson	Explains that the intent of the bill is to punish the complainer and the division if it furthers the process of frivolous complaints.
060	Rep. Tomei	Points out that the department has to follow each complaint.
065	Rep. Anderson	Explains that the division can follow up the complaint to deem it proper or frivolous. Explains how the bill would affect the process.
085	Rep. Tomei	Clarifies that the DSL has about 2000 complaints a year.
090	Rep. Anderson	Explains that about five of those would be frivolous.
095	Rep. Tomei	Expresses concern for increasing the work load on each complaint.
100	Rep. Anderson	Expresses his opinion that the number of complaints might be decreased with the bill.
105	Rep. Schaufler	Asks why there couldn’t be a limited fee of $50 on complaints, which were refundable if the issue were decided in favor of the complainer.
110	Chair Jenson	Thanks Rep. Anderson for bringing the bill, and discusses his intent to work on the bill further and discusses his intention regarding the bill. Explains the intent and language of the proposed -1 amendment. Closes the public hearing on HB 3519 and opens a public hearing on HB 2688.
HB 2688 – PUBLIC HEARING
170	Pete Test	Committee Administrator. Offers a description of HB 2688, and the proposed -1 amendment (EXHIBIT D).
185	Ken Armstrong	Oregon Ports Group. Offers testimony in support of HB 2688 and the proposed -1 amendment.
220	Pete Williamson	Port of St. Helens. Offers testimony in support of HB 2688.
255	Steve Purchase	Division of State Lands (DSL). Offers written testimony (EXHIBIT E) in support of HB 2688, with reference to a received letter from the Oregon State Land Board (EXHIBIT F) .
270	Rep. Dingfelder	Expresses her concerns regarding the fiscal impact of the original bill, and asks how the proposed -1 amendments have fixed this concern.
280	Purchase	Explains the intent of the -1 amendment.
315	Armstrong	Discusses the issue of “public purposes” as worded in the statute and in the bill.
340	Rep. Dingfelder	Restates her concerns that this bill could have a fiscal impact on the Common School Fund, and her hope that if the bill is passed out of committee that the DSL would ensure no impact.
350	Armstrong	Discusses the possible impact on the common school fund.
375	Rep. Schaufler	Asks whether the dredge material could be sold.
380	Purchase	Discusses the market for dredge material.
390	Rep. Schaufler	Asks whether there is a potential to make money for the common school fund.
400	Purchase	Acknowledges that there could be a positive impact on the common school fund, and further discuses the issue of marketing.
410	Williamson	Comments on the sales of the dredge material.
TAPE 53, B
015	Chair Jenson	Closes the public hearing on HB 2688, and opens a work session on HB 2688.
HB 2688 – WORK SESSION
015	Rep. Kruse	MOTION: Moves to ADOPT HB 2688-1 amendments dated 04/02/03.
		VOTE: 7-0
	Chair Jenson	Hearing no objection, declares the motion CARRIED.
025	Rep. Tomei	Asks whether the bill has a subsequent referral.
030	Pete Test	Committee Administrator. Explains that the bill will be run by the Legislative Fiscal Office before moving to the floor.
040	Chair Jenson	Points out that there could be a net gain for the common school fund from the bill.
045	Rep. Dingfelder	Expresses concern for the possible effects on the common school fund.
050	Test	Explains that fiscal would flag the bill if there is an impact.
055	Rep. Kruse	Points out that if the bill has an impact it will be sent to Ways and Means.
060	Rep. Jenson	Refers to the letter from the Land Board regarding the issue.
064	Rep. Tomei	Asks for a clarification.
065	Rep. Jenson	Discusses the membership of the State Land Board.
070	Rep. Flores	Discusses the intent of the mentioned letter.
075	Chair Jenson	Points out the focus and scope of the State Land Board.
085		VOTE: 7-0 AYE: In a roll call vote, all members present vote Aye.
	Chair Jenson	The motion CARRIES. SCHAUFLER will lead discussion on the floor.
095	Chair Jenson	Closes the work session on HB 2688, and opens a public hearing on HB 2659.
HB 2659 – PUBLIC HEARING
105	Pete Test	Committee Administrator. Offers
125	Rep. Merkley	House District 47. Offers testimony in support of HB 2659 and the proposed -1 amendment (EXHIBIT G).
150	Rep. Dingfelder	Thanks Rep. Merkley for the work he has done on the issue and the measure.
180	Paul Donheffner	Oregon State Marine Board. Offers written testimony (EXHIBIT H) in support of HB 2659 and the proposed -1 amendment.
245	Rep. Flores	Asks if the measure would impact jet skis.
255	Donheffner	Explains the possible effect of the bill on jet skis.
265	Shane Jackson	Skippers for Clean Oregon Waters. Offers testimony in support of HB 2659 and the proposed -1 amendment.
305	Trey Carskadon	Tualatin, Oregon. Offers testimony in support of HB 2659 and the proposed -1 amendments.
340	Rep. Tomei	Asks what company Mr. Carskadon works for.
345	Carskadon	Indicates that he works for Advanced Marketing Solutions Inc., and describes the scope of the company.
360	Chair Jenson	Calls Rep. Dalto to testify.
370	Rep. Dalto	House District 21. Explains that while he does not feel the -1 amendment goes far enough in effecting the issue, he supports the -1 amendment.
390	Phil Donovan	Northwest Steelheaders. Offers testimony in support of HB 2659.
415	Donheffner	Clarifies language in the measure and expresses a possible need for conceptual amendments.
430	Chair Jenson	Clarifies the proposed conceptual amendments, but points out that this can be done on the Senate side.
435	Donheffner	Acknowledges.
450	Chair Jenson	Closes the public hearing on HB 2659, and opens a work session on HB 2659.
HB 2659 – WORK SESSION
TAPE 54, B
030	Rep. Dingfelder	MOTION: Moves to AMEND the HB 2659 -1 amendments on page 1, in line 20, after "engines," insert a semicolon and delete the rest of the line.
035	Chair Jenson	Clarifies the language and intent of the conceptual amendment.
040		VOTE: 6-0 EXCUSED: 1 - Kruse
	Chair Jenson	Hearing no objection, declares the motion CARRIED.
045	Rep. Dingfelder	MOTION: Moves to ADOPT HB 2659 amendments dated 04/10/03, as conceptually amended.
050		VOTE: 5-0 EXCUSED: 2 - Kruse, Kropf
	Chair Jenson	Hearing no objection, declares the motion CARRIED.
055	Rep. Dingfelder	MOTION: Moves HB 2659 to the floor with a DO PASS AS AMENDED recommendation.
060	Chair Jenson	Asks Rep. Dingfelder if she would rescind her motion.
065	Rep. Dingfelder	Rescinds her previous motion to send HB 2659 to the floor with a Do Pass As Amended recommendation.
070	Test	Explains reason for the removal of the motion is to allow the proponents of the bill to attempt to have the subsequent referral to Ways and Means removed by eliminating the fiscal impact of the measure.
080	Rep. Dingfelder	Points out that the revised amendment effectively eliminates the fiscal impact.
085	Chair Jenson	Indicates that the speaker is the only one who can withdraw a subsequent referral.
090	Rep. Kruse	Points out that the committee can recommend to the speaker that a subsequent referral be rescinded.
100	Chair Jenson	Closes the work session on HB 2659, and opens a public hearing on HB 3297.
HB 3297 – PUBLIC HEARING
105	Pete Test	Committee Administrator. Offers a description of HB 3297.
130	John Lilly	Division of State Lands. Offers written testimony (EXHIBIT I) in opposition to HB 3297.
225	Scott Ashcom	Oregon Agricultural Alliance. Offers testimony in support of HB 3297.
360	Rep. Dingfelder	Expresses her concern regarding the impact on the common school fund, but asks about conflicts between private land owners.
375	Ashcom	Points out that currently there are no such conflicts, and he does not believe that conflicts would be created due to the measure.
385	Rep. Dingfelder	Clarifies her question; currently permits are required to build the relevant structures, and that passage of the bill would no longer require this.
390	Ashcom	Acknowledges.
395	Rep. Dingfelder	Clarifies her question.
TAPE 55, A
005	Ashcom	Expresses doubt that there would be such conflicts.
015	Rep. Dingfelder	Reiterates her concerns regarding the potential for a negative affect on the common school fund.
020	Lilly	Addresses Rep. Dingfelder’s concerns regarding creating conflicts.
035	Ashcom	Expresses uncertainty as to whether the Division of state lands has the relevant authority currently.
045	Chair Jenson	Indicates that he would like clarification from Legislative Counsel regarding the conflict concerns.
055	Rep. Schaufler	Asks how the structures in question are classified, and asks about the different permitting process.
065	Ashcom	Discusses the permitting process.
070	Lilly	Further comments on the permitting process.
080	Rep. Schaufler	Reiterates his previous question about the permitting process.
090	Lilly	Acknowledges.
100	Rep. Kropf	Disagrees with Rep. Schaufler regarding the private property issues. Refers to a meeting in his district where property concerns were expressed.
115	Chair Jenson	Explains that these concerns can be addressed in work session.
120	Rep. Kropf	Asks about specific wording in the bill, clarifying that currently there are no permits required to install a water pump.
125	Lilly	Explains that currently there is no required easement needed unless you are installing a pump under a new water right.
135	Rep. Kropf	Clarifies that when pumping locations are transferred there is a requirement for a new pump.
140	Lilly	Further discusses the issue of easement.
145	Chair Jenson	Clarifies that those issues are decided in rule, and points out the flexibility with rule.
150	Lilly	Acknowledges.
155	Chair Jenson	Comments on the flexibility of rule.
160	Rep. Kropf	Asks whether, if a landowner currently has such a permit, they are paying money into the common school fund.
165	Lilly	Explains, discussing the issue in regards to easement.
175	Rep. Kropf	Restates his previous question.
180	Lilly	Explains that if an individual owns a dock currently they are paying into the common school fund.
190	Rep. Kropf	Clarifies that as the bill is currently written, would keep those who currently own a dock from paying into the common school fund.
195	Lilly	Explains that current docks would not be required to pay into the common school fund.
200	Rep. Kruse	Clarifies that there would be no loss to the common school fund, but a possible loss of future funds.
215	Rep. Kropf	Explains that this was his point.
220	Lilly	Acknowledges.
225	Ashcom	Discusses the issue.
235	Rep. Kropf	Clarifies the possible loss to the common school fund.
245	Lilly	Offers an example to emphasis the point.
275	Rep. Kropf	Asks whether this fee would also cover improvements.
280	Lilly	Explains that these structures are not registered with the county tax assessor.
295	Brendan McCarthy	Deputy Legislative Council. Offers his opinion regarding the issue.
340	Rep. Schaufler	Clarifies the issue, offering an example situation.
380	McCarthy	Discusses Rep. Schaufler’s offered example.
410	Rep. Tomei	Points out that she own property on the river. Asks that the state owns not only the river but the bank.
TAPE 56, A
005	McCarthy	Acknowledges.
010	Rep. Tomei	Points out that she has neighbors who have property on a slew and are taxed on this ownership.
015	McCarthy	Expresses concern for offering an opinion on a specific situation which he does not have prior knowledge of.
045	Jean Wilkinson	Oregon Farm Bureau. Offers testimony in support of HB 3297.
075	Rep. Schaufler	Explains that he does not want to limit any ability to divert water for irrigation. Clarifies the intent of the bill.
095	Wilkinson	Discusses the possible outcomes of the bill.
100	Katie Fast	Oregon Cattlemen’s Association. Offers testimony in favor of HB 3297.
105	Chair Jenson	Closest the public hearing on HB 3297, and opens a work session on HB 3297.
HB 3297 – WORK SESSION
110	Rep. Kropf	MOTION: Moves HB 3297 to the floor with a DO PASS recommendation.
115	Rep. Tomei	Expresses her intent to vote NO on the measure.
120	Rep. Dingfelder	Expresses her intent to vote NO on the bill, due to the possible impact on the common school fund.
130	Rep. Kruse	Expresses his belief that there are no impacts on the common school fund.
145	Rep. Dingfelder	Expresses her concern for the children of Oregon
150	Rep. Schaufler	Explains that he will vote AYE on the bill, but expresses concern for the common school fund.
175	Rep. Kropf	Expresses his support for the measure with concern for the grandfather issue. Discusses potential losses to the common school fund.
200	Rep. Tomei	Announces a potential conflict of interest.
210	Rep. Kropf	Announces a potential conflict of interest.
215		VOTE: 5-2 AYE: 5 - Flores, Kropf, Kruse, Schaufler, Jenson NAY: 2 - Dingfelder, Tomei
	Chair Jenson	The motion CARRIES. FLORES will lead discussion on the floor.
220	Chair Jenson	Closes the work session on HB 3297, and opens a work session on HB 2887.
HB 2887 – WORK SESSION
230	Pete Test	Committee Administrator. Offers a description of HB 2887, and the proposed -2 amendments (EXHIBIT J).
240	Rep. Kruse	MOTION: Moves to ADOPT HB 2887-2 amendments dated 04/03/03.
		VOTE: 7-0
	Chair Jenson	Hearing no objection, declares the motion CARRIED.
245	Rep. Jenson	MOTION: Moves HB 2887 to the floor with a DO PASS AS AMENDED recommendation.
250		VOTE: 7-0
	Chair Jenson	Hearing no objection, declares the motion CARRIED.
255	Rep. Kruse	MOTION: Moves HB 2887 be placed on the CONSENT CALENDAR.
		VOTE: 7-0
	Chair Jenson	Hearing no objection, declares the motion CARRIED.
270	Chair Jenson	Closes the work session on HB 2887, and opens a public hearing on HB 2800.
HB 2800 – PUBLIC HEARING
280	Rep. Kropf	Indicates his support for the bill.
390	Rep. Dingfelder	Declares a potential conflict of interest on the bill.
305	Rick Gustafson	Oregon Gardens, Executive Director. Offers written testimony (EXHIBIT K) in support of HB 2800.
360	Scott Ashcom	Oregon Agricultural Alliance. Offers testimony in support of HB 2800 and the proposed -1 amendments (EXHIBIT L).
390	Chair Jenson	Clarifies that the -1 amendment change the funding from the general fund to the Oregon Watershed Enhancement Board.
400	Ashcom	Acknowledges.
TAPE 55, B
001	Rep. Tomei	Asks about specific wording in Mr. Gustafson’s testimony.
002	Chair Jenson	Clarifies the wording.
005	Rep. Kruse	Asks how the Department of Agriculture (DOA) fits into the issue.
010	Gustafson	Discusses the role of the DOA.
020	Allison Henley	Oregon Watershed Enhancement Board. Offers written testimony (EXHIBIT M) regarding HB 2800.
055	Rep. Kruse	Explains that he agrees with OWEB on their concerns for the measure, and the evasion of the current OWEB funding application process.
075	Rep. Dingfelder	Explains that she agrees with Rep. Kruse.
080	Rep. Tomei	Indicates her agreement with Rep. Kruse.
090	Chair Jenson	Expresses his concerns with micromanaging any state agency.
125	Henley	Explains that the OWEB is in talks with Oregon State University on the issue.
135	Rep. Kruse	Points out his support for the research involved.
145	Chair Jenson	Concurs, indicating his support for the Oregon Gardens. Discusses the upcoming schedule for the committee. Recesses the meeting at 11:08 a.m.
RECESS
215	Chair Jenson	Calls meeting back to order at 5:00 p.m.
220	Pete Test	Offers an explanation of what still needs to happen in committee on HB 2688, HB 2659.
295	Chair Jenson	Discusses the issues regarding those bills, adjourns the meeting at 5:05 p.m.

EXHIBIT SUMMARY

A – HB 3519, -1 amendments, Staff, 1 p.

B – HB 3519, written testimony, Jeannette Holman, 2 pp.

C – HB 3519, written testimony, Rep. Anderson, 2 pp.

D – HB 2688, -1 amendments, Staff, 2 pp.

E – HB 2688, written testimony, Steve Purchase, 2 p.

F – HB 2688, Oregon State Land Board letter, Steve Purchase, 1 p.

G – HB 2659, -1 amendments, Staff, 2 pp.

H – HB 2659, written testimony, Paul Donheffner, 2 pp.

I – HB 3297, written testimony, John Lilly, 2 pp.

J – HB 2887, -2 amendments, Staff, 1 p.

K – HB 2800, written testimony, Rick Gustafson, 4 pp.

L – HB 2800, -1 amendments, Staff, 1 p.

M – HB 2800, written testimony, Allison Hensey, 5 pp.