WORK SESSION: HB 2131A

 

PUBLIC HEARING AND WORK SESSION: HB 2187, HB 2589

 

TAPES 110-111, A-B

 

SENATE REVENUE COMMITTEE

April 30, 2003   1:00 PM   STATE CAPITOL BUILDING

 

Members Present:                        Senator Ryan Deckert, Chair

                                                Senator Ted Ferrioli, Vice Chair

                                                Senator Tony Corcoran

                                                Senator Lenn Hannon

                                                Senator Charlie Ringo

                                                Senator Bruce Starr       

 

Witnesses Present:                        John Phillips, Department of Revenue

                                                Chip Lazenby, Portland Development Commission

                                                Jeff Tashman, Association of Oregon Redevelopment Agencies                      

 

Staff Present:                            Paul Warner, Legislative Revenue Office

                                                Richard Yates, Legislative Revenue Office

                                                Mazen Malik, Legislative Revenue Office

                                                Tara Lantz, Committee Assistant

 

TAPE 110, SIDE A

 

004

Chair Deckert

Calls meeting to order at 1:26pm

 

OPENS WORK SESSION ON HB 2131 A

 

013

Sen. Hannon

MOTION: MOVES THE RULES BE SUSPENDED FOR RECONSIDERATION OF THE VOTE BY WHICH HB 2131 A WAS SENT TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

020

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 5-0-1.

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

SENATOR EXCUSED: FERRIOLI.

 

 

 

023

Sen. Hannon

MOTION: MOVES TO RECONSIDER THE VOTE BY WHICH HB 2131 A WAS SENT TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

028

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 6-0-0.

 

 

 

032

Sen. Hannon

MOTION: MOVES THAT HB 2131-A3 AMENDMENTS DATED 4/29/03 BE ADOPTED FOR THE PURPOSE OF RESOLVING CONFLICTS.

 

 

 

040

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 6-0-0.

 

 

 

042

Sen. Hannon

MOTION: MOVES HB 2131 A TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

050

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 6-0-0.

 

OPENS PUBLIC HEARING ON HB 2187

 

055

Mazen Malik

Explains HB 2187, which requires Urban Renewal revenues raised by either a special levy or division of tax to be categorized as general government taxes by measure 5 definitions. Exhibit 2. Discusses the background of the bill and gives example data from the Shilo Inn court case. Exhibit 3.

 

 

 

126

Sen. Ringo

Asks if the Shilo Inn decision caused loss in revenues to schools or other government entities.

 

 

 

130

Malik

Responds that it has not decreased or increased revenues, but rather has allowed a release in the compression rate.

 

 

 

161

Sen. Ringo

Asks if the Shilo Inn decision helped schools and hurt local governments.

 

 

 

164

Malik

Responds positively.

 

 

 

165

Sen. Ringo

Asks if this bill is codifying that problem.

 

 

 

168

Malik

Responds positively.

 

 

 

175

Sen. Ringo

Asks if the school districts have any input on the bill.

 

 

 

178

Sen. Deckert

Responds that they are going to have some testimony.

 

 

 

180

Sen. Deckert

Asks what would happen if they did not codify the Shilo decision.

 

 

 

182

Malik

Responds that the Supreme Court has judged that this is the intent of the Constitution, so it would push it to court again.

 

 

 

200

Sen. Hannon

Asks what would happen if they do codify the decision and someone challenges it in the future.

 

 

 

208

Malik

Responds that since courts have already determined the case, it would probably not be able to be challenged.

 

 

 

216

Sen. Hannon

Asks if the Department of Revenue interpreted the decision or if it was Multnomah County’s interpretation.

 

 

 

224

John Phillips

Explains the process and reasoning for drafting HB 2187. 

 

 

 

257

Sen. Hannon

Asks if this bill changes the law to what is already being done administratively.

 

 

 

262

Phillips

Responds affirmatively.

 

 

 

265

Chip Lazenby

Testifies that the Department of Revenue chose to intervene on the lawsuit because the implications of the case were statewide.

 

 

 

280

Sen. Hannon

Asks if other areas of the state directly or indirectly affected by the court decision.

 

 

 

282

Phillips

Responds affirmatively.

 

 

 

285

Sen. Hannon

Asks what the impact is.

 

 

 

287

Phillips

Responds that it varies from account to account.

 

Discussion follows.

 

 

 

301

Sen. Deckert

Asks if this brings finality to the Shilo Inn case.

 

 

 

304

Lazenby

Responds affirmatively.

 

 

 

315

Phillips

Refers members to detailed handout on the Shilo case and what is being changed by the bill. Exhibit 5.

 

 

 

344

Sen. Ferrioli

Asks if this actually creates a shift in revenue or just a release in compression.

 

 

 

356

Phillips

Responds that it does relieve compression in some accounts but not in all.

 

 

 

366

Sen. Ferrioli

Asks if this automatically produce revenues for schools.

 

 

 

368

Phillips

Responds that he cannot answer that.

 

 

 

386

Jeff Tashman

Testifies in support of HB 2187 because it makes changes to the statute that are necessary to supplement the administrative rule adopted by the Department of Revenue.  Discusses the success of urban renewal projects. Refer to written testimony. Exhibit 6.

 

TAPE 111, SIDE A

 

060

Sen. Ringo

Asks if this bill is not required since it is already under administrative rule.

 

 

 

063

Tashman

Responds affirmatively.

 

 

 

065

Sen. Ringo

Asks if they would prefer to see it in statute.

 

 

 

067

Tashman

Responds affirmatively. Refers members to history of urban renewal in Oregon. Exhibit 7.

 

CLOSES PUBLIC HEARING ON HB 2187

 

OPENS WORK SESSION ON HB 2187

 

084

Sen. Hannon

MOTION: MOVES HB 2187 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

090

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 5-0-1.

SENATOR EXCUSED: STARR.

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

 

OPENS PUBLIC HEARING ON HB 2589

 

092

Malik

Explains HB 2589, which exempts sensitive financial information submitted to an urban renewal agency from disclosure under the public records law. Exhibit 8.

 

 

 

109

Chip Lazenby

Testifies in support of HB 2589 because disclosure of sensitive information relating to sales, marketing, and costs puts companies at a competitive disadvantage. Refer to written testimony. Exhibit 9.

 

 

 

130

Sen. Deckert

Asks for an example of a risk of information being shared.

 

 

 

134

Lazenby

Gives example of the May Company.

 

 

 

165

Sen. Ferrioli

States that it seems that a standard confidentiality agreement would be the order of the day in those kind of negotiations.

 

 

 

168

Lazenby

Discusses the controversy of the non-disclosure of PGE park in Portland.

 

 

 

196

Sen. Deckert

Expresses concern that the public has an interest in the information since there are public dollars involved.

 

 

 

201

Lazenby

Responds that the government will still have access to the information in order to make sound investments and the public to the information about the agreement, but that the bill will keep information that could financially hurt a company if disclosed private.

 

CLOSES PUBLIC HEARING ON HB 2589

 

OPENS WORK SESSION ON HB 2589

 

226

Sen. Hannon

MOTION: MOVES HB 2589 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

229

Sen. Corcoran

States that he is a no because he believes that given the environment of today, transparency should be the goal.

 

 

 

233

Sen. Ringo

Responds that they need to encourage private entities to do business with local governments on renewal projects.

 

Discussion follows.

 

 

 

271

Sen. Hannon

States that he agrees with Sen. Corcoran, but in this unique situation there is proprietary information that if leaked out, would put companies at a competitive advantage.

 

 

 

286

Sen. Deckert

States that his concern is that a company wouldn’t enter into a renewal project if they had to disclose their information.

 

 

 

294

Sen. Ferrioli

States that there would be public disclosure of all the proprietary information, it just won’t be published.

 

 

 

329

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 4-1-1.

SENATORS ANSWERING AYE: HANNON, RINGO, FERRIOLI, DECKERT

SENATOR ANSWERING NO: CORCORAN.

SENATOR EXCUSED: STARR.

 

 

 

334

Sen. Deckert

Adjourns meeting at 2:17pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

1.      HB 2131, Richard Yates, Proposed HB 2131-A3 Amendments, 8pp.

2.      HB 2187, Mazen Malik, Staff Measure Summary, 2pp.

3.      HB 2187, Mazen Malik, Shilo Inn Example, 2pp.

4.      HB 2187, John Phillips, Administrative Rule Review, 8pp.

5.      HB 2187, John Phillips, Written Testimony, 6pp.

6.      HB 2187, Jeff Tashman, Written Testimony, 4pp.

7.      HB 2187, Jeff Tashman, Urban Renewal in Oregon, 68pp.

8.      HB 2589, Mazen Malik, Staff Measure Summary from House Committee on Judiciary, 1p.

9.      HB 2589, Chip Lazenby, Written Testimony, 2pp.