PUBLIC HEARING AND WORK SESSION: HB 2133, HB 2134, HB 2136

 

PUBLIC HEARING: HB 2135

 

TAPES 44-45, A-B

 

SENATE REVENUE COMMITTEE

FEBRUARY 26, 2003†† 1:00 PM†† STATE CAPITOL BUILDING

 

Members Present:††††††††††† ††††††††††† Senator Ryan Deckert, Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Ted Ferrioli, Vice Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Tony Corcoran

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Charlie Ringo

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Bruce Starr

 

Members Excused:††††††††† ††††††††††† Senator Lenn Hannon†††† ††††††††††† ††††††††††† ††††††††††††††††††††††† †††††††††††

 

Witnesses Present:††††††††††† ††††††††††† Edie Kessel, Oregon State Treasury

††††††††††††††††††††††† ††††††††††† ††††††††††† Darren Bond, Oregon State Treasury

††††††††††††††††††††††† ††††††††††† ††††††††††† Kate Richardson, Oregon State Treasury

 

Staff Present:††† ††††††††††† ††††††††††† Richard Yates, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Tara Lantz, Committee Assistant

 

TAPE 44, SIDE A

 

003

Chair Deckert

Calls meeting to order at 1:05pm.

 

OPENS PUBLIC HEARING ON HB 2133

 

010

Richard Yates

Explains HB 2133 which requires the Department of Transportation, rather than the Treasury to transfer funds relating to certain fuel tax refunds to the Departmentís Operating Fund, clarifies time period for appointment of a bank or trust company for payment of debt services, and requires Treasurer and state agencies to agree on interest rate. Exhibit 1.

 

 

 

022

Edie Kessel

Testifies in support of HB 2133 because it clarifies the existing statute and results in more cost effective management of fiscal agent contracts. Discusses each section in detail. Exhibit 2.

 

CLOSES PUBLIC HEARING ON HB 2133

 

OPENS WORK SESSION ON HB 2133

 

064

Sen. Starr

MOTION: MOVES HB 2133 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

071

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 4-0-2. SENATORS ANSWERING AYE: CORCORAN, FERRIOLI, DECKERT, STARR. SENATORS EXCUSED: HANNON, RINGO.

Sen. Starr will carry the bill on the Senate Floor.

 

CLOSES WORK SESSION ON HB 2133

 

OPENS PUBLIC HEARING ON HB 2134

 

078

Yates

Explains HB 2134 which deletes wording that could be confused and requires the Department of Administrative Services to determine the appropriate method of payment or transfer. Exhibit 3.

 

 

 

089

Darren Bond

Testifies in support of HB 2134 because it clarifies existing language in ORS 291.001. Exhibit 4.

 

CLOSES PUBLIC HEARING ON HB 2134

 

OPENS WORK SESSION ON HB 2134

 

109

Sen. Corcoran

MOTION: MOVES HB 2134 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

113

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 5-0-1. SENATORS ANSWERING AYE: CORCORAN, FERRIOLI, DECKERT, STARR, RINGO. SENATOR EXCUSED: HANNON.

Sen. Ringo will carry the bill on the Senate Floor.

 

CLOSES WORK SESSION ON HB 2134

 

OPENS PUBLIC HEARING ON 2135

 

120

Yates

Explains HB 2135 which defines the General Funds to include payments into those funds or accounts specifically established in law as funds or accounts in the General Fund, makes payments into all other funds or accounts separate and distinct, continuously appropriates moneys in trust funds to the agency administering the trust, revises procedures for registering warrants if General Fund is exhausted, clarifies authority of Treasurer to pay moneys out of State Treasury, and specifies circumstances under which Treasurer may require agency to stop issuing payment obligations. Exhibit 5.

 

 

 

140

Bond

Gives background of HB 2135. Discusses each section in detail and testifies in support of HB 2135 because it fixes inconsistencies in the statutes dealing with the definition of the General Fund, clarifies and modernizes the language dealing with the process put in place should the State run out of money and be unable to pay General Fund warrants, clarifies the language dealing with the Treasurerís authorization, provides the Treasurer authority to revoke an agencyís ability to issue payment items, and gives the Treasurer the authority to deal with agencies overdraft accounts. Exhibit 6.

 

Clarifying questions and answers interspersed.

 

 

 

320

Sen. Deckert

Asks if the Treasury currently follows the procedures in section 10.

 

 

 

330

Bond

Responds affirmatively.

 

 

 

336

Sen. Ferrioli

Asks about the purpose of overdraft charges.

 

 

 

348

Bond

Responds that an overdraft is an unauthorized interfund borrowing and that they have to issue an interest charge to compensate the agencies borrowed from.

 

Discussion follows.

 

 

 

380

Sen. Ferrioli

Asks if this bill gives the State Treasury the authority to transfer money from dedicated funds.

 

 

 

406

Bond

Responds that this wouldnít give the Treasury the authority to go into the General Fund or funds that have legal restrictions.

 

Discussion follows.

 

 

 

421

Sen. Ferrioli

Asks where the Treasury goes if there is no money in the General Fund.

 

 

 

429

Bond

Responds that the Treasury would then go to the Legislature.

 

Discussion follows.

 

TAPE 45, SIDE A

 

003

Sen. Ferrioli

Asks if the bill gives the Treasury the authority to borrow from other agencies funds to cover overdraft charges.

 

 

 

006

Bond

Responds that this bill doesnít do that, but that they already have the authority to.

 

 

 

028

Sen. Ringo

Asks if there are some circumstances for revoking a check that arenít addressed in the bill and if the Treasury should be given broader authority.

 

 

 

039

Bond

Responds that they tried not to make it so broad that agencies would be scared to write checks and testify against the bill.

 

Questions and answers interspersed.

 

 

 

068

Sen. Deckert

Asks if any agencies expressed opposition.

 

 

 

070

Bond

Responds that there were a few questions, but they were all answered.

 

 

 

075

Sen. Starr

Asks if there is a rationale that led to the statute requiring three constitutional officers and why it is being changed to two.

 

 

 

085

Bond

Responds that he doesnít know why it was that way, but that their rational is they donít want to have an outlier hold back the process because they donít understand the implications.

 

 

 

103

Sen. Deckert

Asks if there has been any situation where agencies couldnít pay their bills.

 

 

 

105

Bond

Responds that Oregon has not had to issue warrants before and that the only case he is aware of was in California 10 years ago. States that Oregon is as close as it has ever been to being in this situation.

 

Discussion follows.

 

 

 

127

Sen. Ringo

Suggests that it isnít a good idea to eliminate one constitutional officer because during such difficult times all of the top officers of the State should be on board.

 

 

 

136

Bond

Responds that the worst thing that could happen was if one of the officers didnít agree because the warrants would still be returned, just not as orderly and without interest.

 

Discussion follows.

 

 

 

192

Kate Richardson

Responds that it is a protection for the people because it allows it to be handled in an orderly manner and is interest bearing. States that it would make a bad situation much worse if one person held out for whatever reason.

 

 

 

231

Sen. Ferrioli

Asks it the Treasury looked at the history of the statute that says the three need to be unanimous.

 

 

 

235

Bond

Responds negatively.

 

Discussion follows.

 

 

 

254

Sen. Ferrioli

Argues that in a doomsday scenario, although the issuing of warrants is necessary and should be automatic, the three top officers of the state should be in agreement.

 

 

 

310

Sen. Starr

Agrees with Sen. Ferrioli.

 

 

 

313

Sen. Deckert

Asks about the circumstances of the California situation in regards to the constitutional officers.

 

 

 

314

Bond

Responds that he doesnít know.

 

CLOSES PUBLIC HEARING ON HB 2135

 

OPENS PUBLIC HEARING ON HB 2136

 

329

Yates

Explains HB 2136 which clarifies maturity date restrictions relating to certain investments by local governments. Exhibit 7.

 

 

 

337

Bond

Testifies in support of HB 2136 because it clarifies conflicting language. Exhibit 8.

 

CLOSES PUBLIC HEARING ON HB 2136

 

OPENS WORK SESSION ON HB 2136

 

366

Sen. Ringo

MOTION: MOVES HB 2136 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

373

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 5-0-1. SENATORS ANSWERING AYE: CORCORAN, FERRIOLI, DECKERT, STARR, RINGO. SENATOR EXCUSED: HANNON.

Sen. Ferrioli will carry the bill on the Senate Floor.

Placed on the consent agenda.

 

 

 

382

Sen. Deckert

States that Sen. Starr will take the lead on fixing HB 2135.

 

 

 

385

Sen. Deckert

Adjourns meeting at 1:58pm.

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.      HB 2133, Richard Yates, Staff Measure Summary, 1p.

2.      HB 2133, Edi Kessel, Written Testimony, 3pp.

3.      HB 2134, Richard Yates, Staff Measure Summary, 1p.

4.      HB 2134, Darren Bond, Written Testimony, 1pp.

5.      HB 2135, Richard Yates, Staff Measure Summary, 1p.

6.      HB 2135, Darren Bond, Written Testimony, 2pp.

7.      HB 2136, Richard Yates, Staff Measure Summary, 1p.

8.      HB 2136, Darren Bond, Written Testimony, 8pp.