WORK SESSION: SB 313, SB 292

 

PUBLIC HEARING: HB 2213

 

TAPES 101-102, A-B

 

SENATE REVENUE COMMITTEE

April 22, 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:                        Veronica Rinard, Oregon Film and Video Office

                                                Megann Ratzow, Casting Director

                                                Dave Tyler, Department of Transportation

                                                Douglas Goe, Orrick, Herrington, & Sutcliffe            

 

Staff Present:                            Paul Warner, Legislative Revenue Office

                                                Richard Yates, Legislative Revenue Office

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                Tara Lantz, Committee Assistant

 

TAPE 101, SIDE A

 

005

Chair Deckert

Calls meeting to order at 1:12pm.

 

OPENS WORK SESSION ON SB 292

 

010

Lizbeth Martin-Mahar

Explains SB 292 and discusses the revenue impact. Exhibit 1.

 

 

 

021

Sen. Starr

MOTION: MOVES SB 292 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

025

Sen. Corcoran

States that he will vote the bill out of committee but will not vote for it on the floor.

 

 

 

030

Sen. Starr

Points out that it saves the state a large amount of money in buying new technology for universities and colleges.

 

 

 

040

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 4-0-2.

SENATORS ANSWERING AYE: CORCORAN, RINGO, STARR, DECKERT. SENATORS EXCUSED: HANNON, FERRIOLI.

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

 

OPENS WORK SESSION ON SB 313

 

050

Paul Warner

Explains SB 313-3 amendments and other possible amendments. Exhibit 2.

 

 

 

090

Veronica Rinard

Explains why they have chosen to use SB 313 rather than SB 79 and discusses why this bill is important. Gives data from two studies done on the economic impact from the Production Investment Fund. Refer to written testimony. Exhibit 3.

 

 

 

155

Megan Ratzow

Testifies in support of SB 313 and gives personal account of the film industry and how the bill would positively impact the economy.

 

 

 

230

Sen. Deckert

States that they will bring the bill back on Monday with new amendments.

 

OPENS PUBLIC HEARING ON HB 2213

 

265

Richard Yates

Explains HB 2213 which allows the Treasury to issue grant anticipation revenue bonds at the request of the Department of Transportation for financing transportation projects that are eligible to receive federal transportation funds. Exhibit 5.

 

 

 

285

Dave Tyler

Testifies in support of HB 2213 and discusses the substantive changes it makes. Refer to written testimony. Exhibit 6.

 

 

 

325

Sen. Deckert

States that he has been told the Grant Anticipation Revenue Vehicle Bonds (GARVEEs) are not a good deal.

 

 

 

328

Tyler

Responds that the highway user tax revenue bonds are a better credit and that you pay a higher premium with GARVEE bonds.

 

 

 

335

Sen. Ringo

Asks if the bonds are backed by federal funds.

 

 

 

338

Tyler

Responds positively.

 

 

 

340

Sen. Ringo

Asks how much money the state gets from the funds that are subject to GARVEE bonding.

 

 

 

344

Tyler

Responds that the Department of Transportation receives approximately $300 million over a biennium.

 

 

 

350

Sen. Ringo

Asks if they currently spend that stream of revenue since they aren’t using it for bonding.

 

 

 

354

Tyler

Responds positively.

 

 

 

360

Sen. Ringo

Asks why it doesn’t make more sense to live off the stream of revenue.

 

 

 

370

Tyler

Responds that ODOT has traditionally used current revenues, but that there are serious problems with the infrastructure that wouldn’t get fixed by using the revenue.  

 

 

 

395

Sen. Deckert

Asks if this bill would be a policy switch from using revenues to a bonding scheme that would jeopardize future revenues and if this causes concern.

 

 

 

405

Tyler

Responds that it is a fundamental policy shift, but that they have a great deal of protection in bond restrictions.

 

 

 

425

Douglas Goe

Responds that even if a significant package goes forward, there would still be a significant amount of revenue used on a pay as you go basis. Discusses interest rates and the highway user tax program. Testifies in support of HB 2213 and discusses the intentions.

 

TAPE 102, SIDE A

 

065

Sen. Ringo

Asks how much more expensive GARVEEs are.

 

 

 

067

Tyler

Responds that it depends on ratings and debt coverage.

 

 

 

078

Sen. Deckert

Asks why the bill gives the authority for bonding to ODOT and then makes them come back to utilize the authority given to them. 

 

 

 

080

Tyler

Responds that the authority comes by being included in the Department of Administrative Services annual bond limit bill.

 

 

 

095

Sen. Ringo

Asks what would happen if this bill didn’t pass other than the GARVEE issue.

 

 

 

099

Tyler

Responds that they wouldn’t be able to issue GARVEE bonds or use federal funds as a pledge for highway user tax revenue bonds.

 

Discussion follows.

 

 

 

130

Sen. Deckert

Asks about lottery bonding.

 

 

 

135

Goe

Responds that lottery bonds are much more volatile, making the criteria for coverage higher.

 

 

 

170

Sen. Ringo

Asks what Goe’s firm makes on the issuance of bonds.

 

 

 

175

Goe

Responds that they are paid on an hourly basis at a substantially discounted rate.

 

Discussion follows.

 

CLOSES PUBLIC HEARING ON HB 2213

 

212

Sen. Deckert

Adjourns meeting at 1:56pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

1.      SB 292, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.

2.      SB 313, Paul Warner, Proposed SB 313-3 Amendments, 5pp.

3.      SB 313, Veronica Rinard, Written Testimony, 4pp.

4.      SB 313, Megann Ratzow, Written Testimony, 2pp.

5.      HB 2213, Richard Yates, Staff Measure Summary, 1p.

6.      HB 2213, Dave Tyler, Written Testimony, 4pp.