WORK SESSION: SB 778

PUBLIC HEARING AND WORK SESSION: HB 2029, HB 2131 A

PUBLIC HEARING: HB 2030

TAPES 105-106, A-B

SENATE REVENUE COMMITTEE

April 24, 2003 1:00 PM STATE CAPITOL BUILDING

Members Present: Senator Ryan Deckert, Chair

Senator Ted Ferrioli, Vice Chair

Senator Tony Corcoran

Senator Charlie Ringo

Members Excused: Senator Lenn Hannon

Senator Bruce Starr

Witnesses Present: Diane Belt, Oregon Association of County Tax Collectors

Dan Olsen, Washington County

Jeff Misley, Sussman Shank LLP

Pat Clancy, Municipal Debt Advisory Commission

Harvey Rogers, Preston, Gates, and Ellis

Jack Kenny, Oregon Housing and Community Services

Mike Carrier, Oregon Parks and Recreation Department

Bob Repine, Oregon Housing and Community Services

Staff Present: Paul Warner, Legislative Revenue Office

Richard Yates, Legislative Revenue Office

Lizbeth Martin-Mahar, Legislative Revenue Office

Mazen Malik, Legislative Revenue Office

Tara Lantz, Committee Assistant

TAPE 105, SIDE A

005

Chair Deckert

Calls meeting to order at 1:10pm.

OPENS PUBLIC HEARING ON HB 2029

020	Mazen Malik	Explains HB 2029 which updates the statues to allow for change in technology and medium of storage. Exhibit 1.
042	Diane Belt	Testifies in support of HB 2029 because it saves time and brings the current system up to date with technology. Refer to written testimony. Exhibit 2.
058	Sen. Corcoran	Expresses concern that people might complain that they are not able to get hard copies and asks if there is a back up system.
062	Belt	Responds that there is a back up system and that they haven’t stored anything like that for a long time. Discussion follows.

CLOSES PUBLIC HEARING ON HB 2029

OPENS PUBLIC HEARING ON HB 2030

082	Malik	Explains HB 2030 which allows for the certified mail receipt record to be on electronic format or computer printout. Exhibit 3. Explains the -3 amendment (Exhibit 4) which establishes a Tax Bankruptcy Account with recovered amounts of taxes of cases where the county could not previously collect. Discusses revenue impact. Exhibit 5.
160	Belt	Testifies in support of HB 2030 because it would save time and money by utilizing new services provided by the U.S. Postal Service. Refer to written testimony. Exhibit 6. Offers support on behalf of the Washington County Department of Assessment and Taxation for the -3 amendments because it allows counties to hire outside counsel for bankruptcy cases, resulting in more revenues. Refer to written testimony. Exhibit 7.
230	Sen. Ringo	Asks if most bankruptcy filings were from in state or out of state.
234	Belt	Responds they were all from out of state.
245	Belt	Gives data from different counties on bankruptcy filings.
251	Sen. Deckert	Asks if the other counties are okay with the -3 amendments.
253	Belt	Responds affirmatively and discusses cases that have affected numerous counties. Questions and answers follow.
290	Sen. Deckert	Asks if there should be a mechanism at the state level to help counties with bankruptcy cases.
292	Dan Olson	Responds that Multnomah County, Washington County, and Clackamas County have collaborated and hired one law firm to represent them in bankruptcy and have a fee splitting system.
309	Belt	Explains how the fund would work and gives examples of other states that have similar programs.
322	Sen. Deckert	Asks how this account would benefit the county.
325	Belt	Responds that it gives the county the opportunity to hire outside counsel to represent them in complicated bankruptcy cases. Questions and answers follow.
333	Olson	Discusses experience with bankruptcy cases and testifies in support of the -3 amendments because it provides counsel an incentive to retrieve money for the counties in bankruptcy cases.
410	Jeff Misley	Discusses experience with bankruptcy cases and why outside counsel is necessary in receiving money from the cases.

TAPE 106, SIDE A

061	Sen. Ringo	Asks if it is not reasonable to make this an opportunity for the entire state and not just the metro area.
067	Misley	Responds that there has been a greater effort on a state level.
080	Sen. Deckert	Asks about the Texas model.
081	Misley	Responds that Texas has pursued this as a collaborative effort between a number of counties. Discussion follows.

CLOSES PUBLIC HEARING ON HB 2030

OPENS PUBLIC HEARING ON HB 2131

140	Richard Yates	Explains HB 2131 which authorizes state and local government issuers of bonds to enter into agreements for exchange of interest rates. Exhibit 8.
165	Pat Clancy	Testifies in support of HB 2131, discussing the work done by the Municipal Debt Advisory Commission in coming up with the bill. States that it is an attempt to fix problems faced by local governments in issuing bonds.
182	Harvey Rogers	Gives detailed overview of HB 2131.
349	Jack Kenny	Testifies in support of HB 2131 because it gives Housing and Community Services a tool to be used in facilitating the development of affordable housing. Refer to written testimony. Exhibit 10.
370	Sen. Corcoran	Asks if there is any opposition to this bill.
373	Kenny	Responds negatively.
389	Sen. Ferrioli	Asks what the advantage is in trading bonds.
391	Kenny	Responds that if you broaden the market you get better returns and it reduces risk.

TAPE 105, SIDE B

002	Sen. Ferrioli	Asks what broadening the market means.
005	Clancy	Responds that there are several other states that are involved in swapping, allowing for additional savings.

CLOSES PUBLIC HEARING ON HB 2131

OPENS WORK SESSION ON HB 2131

032	Sen. Ringo	MOTION: MOVES HB 2131 A TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.
035	Sen. Deckert	ORDER: HEARING NO OBJECTION, MOTION PASSES: 4-0-2. SENATORS EXCUSED: HANNON, STARR. Sen. Courtney will carry the bill on the Senate Floor.

CLOSES WORK SESSION ON HB 2131

OPENS WORK SESSION ON HB 2029

040	Sen. Corcoran	MOTION: MOVES HB 2029 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.
043	Sen. Deckert	ORDER: HEARING NO OBJECTION, MOTION PASSES: 4-0-2. SENATORS EXCUSED: HANNON, STARR. Sen. Corcoran will carry the bill on the Senate Floor.

CLOSES PUBLIC HEARING ON HB 2029

OPENS WORK SESSION ON SB 778

060	Mike Carrier	States that they were opposed to the original bill, but that with the amendments it appears to be closer to what they want. Does not offer support or testify against the amendments, but states that the -2 amendments look better minus the problem that the Parks and Recreation Department is not included in the commission.
117	Bob Repine	Testifies that they don’t object with the concept of the amendments, but feel that the commission should include the historical society and an architect involved in historical architecture. Expresses concern over the language of providing administrative support.

CLOSES WORK SESSION ON SB 778

167

Sen. Deckert

Adjourns meeting at 2:17pm.

Tape Log Submitted by,

Tara Lantz, Committee Assistant

Exhibit Summary:

1. HB 2029, Mazen Malik, Staff Measure Summary, 1p.

2. HB 2029, Diane Belt, Written Testimony, 1p.

3. HB 2030, Mazen Malik, Proposed HB 2030-3 Amendments, 20pp.

4. HB 2030, Mazen Malik, Staff Measure Summary, 1p.

5. HB 2030, Mazen Malik, Revenue Impact Statement, 1p.

6. HB 2030, Diane Belt, Written Testimony, 2pp.

7. HB 2030, Diane Belt, Written Testimony, 2pp.

8. HB 2131, Richard Yates, Staff Measure Summary, 1p.

9. HB 2131, Richard Yates, Staff Measure Summary from General Government Committee, 1p.

10. HB 2131, Jack Kenny, Written Testimony, 1p.

11. SB 778, Lizbeth Martin-Mahar, Proposed SB 778-1 Amendments, 4pp.

12. SB 778, Lizbeth Martin-Mahar, Proposed SB 778-2 Amendments, 4pp.

13. SB 778, Lizbeth Martin-Mahar, Staff Measure Summary SB 778-1, 1p.

14. SB 778, Lizbeth Martin-Mahar, Staff Measure Summary SB 778-2, 1p.