PUBLIC HEARING: HB 3224 A

 

WORK SESSION: HB 2213

 

TAPES 116-117, A

 

SENATE REVENUE COMMITTEE

May 7, 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:††††††††††† ††††††††††† Rob Drake, Mayor of Beaverton

††††††††††††††††††††††† ††††††††††† ††††††††††† Jack Kenny, Oregon Housing and Community Services

††††††††††††††††††††††† ††††††††††† ††††††††††† Mike Burton, Economic and Community Development Department

††††††††††† ††††††††††† ††††††††††††††††††††††† ††††††††††† †††††††††††

Staff Present:††† ††††††††††† ††††††††††† Paul Warner, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Richard Yates, Legislative Revenue Office

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

 

TAPE 116, SIDE A

 

003

Chair Deckert

Calls meeting to order at 1:20 pm.

 

OPENS PUBLIC HEARING ON HB 3224 A

 

016

Richard Yates

Explains HB 3224 which authorizes cities with more than 50,000 residents to issue nonrecourse bonds to provide for retail, commercial, and industrial development. Exhibit 1.

 

 

 

022

Rob Drake

Testifies in support of HB 3324 A because it would give Beaverton and other cities a tool for economic development in order to solve critical problems and attract jobs.

 

 

 

048

Sen. Deckert

Asks for an example of a project.

 

 

 

050

Drake

Gives example of a health clinic in downtown Beaverton.

 

 

 

072

Sen. Ringo

Asks why there is a limit on the number of residents.

 

 

 

077

Drake

Responds that small cities donít have the technical capabilities that large cities have.

 

 

 

089

Sen. Ringo

Asks if a city of 50,000 or more is supposed to have these technical capabilities.

 

 

 

091

Drake

Responds positively.

 

 

 

093

Sen. Deckert

Points out that there is a -3 amendment that raises it to 70,000.

 

 

 

099

Sen. Ringo

Asks about the difference between retail and commercial.

 

 

 

104

Janet Young

Responds that retail could be considered a subset of commercial and that the two words are both in there to be more clear.

 

 

 

110

Sen. Ferrioli

Responds that retail is open to the public for the sale of goods and commercial relates to the provision of services.

 

Discussion follows.

 

 

 

127

Sen. Corcoran

Asks why Rep. Prozanski voted no in the House.

 

 

 

130

Drake

Responds that he doesnít know.

 

Discussion follows.

 

 

 

136

Sen. Deckert

Asks if he has an opinion on the -3 amendments.

 

 

 

140

Drake

Responds negatively.

 

 

 

144

Sen. Ferrioli

States that under 50,000 small cities have more resources that larger cities do not, and that the bill should go down to the lowest number as possible.

 

 

 

150

Sen. Starr

Asks what cities are included in the original bill and with the amendment.

 

 

 

155

Drake

Responds that Beaverton, Portland, Eugene, Hillsboro, Salem, and Gresham are above 70,000 and that Medford, Bend, Springfield, and Corvallis are in the 50,000 range.

 

 

 

164

Sen. Deckert

Asks if those cities excluded in the amendments have the capabilities to issue these bonds.

 

 

 

170

Drake

Responds affirmatively.

 

Discussion follows.

 

 

 

178

Jack Kenny

Testifies in support of the -3 amendments. States that he was opposed to the original bill in the house because in order to issue and monitor bonds, a city needs to have resources, such as a professional staff. Discusses problems with issuing too many bonds.

 

 

 

225

Sen. Deckert

Asks if the cities excluded in the amendment have the resources to issue these bonds.

 

 

 

226

Kenny

Responds that they were asked to come up with a compromise with the City of Beaverton.

 

 

 

238

Sen. Ferrioli

Asks why the housing authority didnít offer to broker these services to cities.

 

 

 

241

Kenny

Responds that already offer these services to cities.

 

 

 

256

Sen. Ringo

States that he is supportive of the -3 amendments.

 

 

 

272

Mike Burton

States that the Economic and Community Development Department has the authority to issue bonds for any economic development project in small cities and ports.

 

 

 

288

Sen. Deckert

Asks why they need this bill if there is already a system in place.

 

 

 

295

Kenny

Responds that he doesnít perceive that there is a problem and that they donít have an exclusive monopoly.

 

 

 

332

Burton

Responds that smaller jurisdictions donít have the capacity and are happy to let the state take control.

 

CLOSES PUBLIC HEARING ON HB 3224

 

OPENS WORK SESSION ON HB 3224

 

377

Sen. Starr

Asks if the cities excluded in the amendment care.

 

 

 

385

Drake

Responds that they do not know.

 

TAPE 117, SIDE A

 

013

Sen. Ferrioli

States that he would rather see the 50,000 limit, but would support the amendment to move the bill because creating the authority is the most important thing.

 

 

 

020

Sen. Starr

MOTION: MOVES HB 3224-A3 AMENDMENTS DATED 5/5/03 BE ADOPTED.

 

 

 

029

Sen. Deckert

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

SENATOR EXCUSED: HANNON.

 

 

 

030

Sen. Starr

MOTION: MOVES HB 3224 A TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

032

Sen. Deckert

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

SENATOR EXCUSED: HANNON.

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

 

OPENS WORK SESSION ON HB 2213

 

040

Sen. Starr

Argues in support of HB 2213 in its original form and for giving the authority to issue GARVEE bonds because it gives the department a tool for special projects that otherwise would not be able to happen.

 

 

 

057

Sen. Corcoran

Asks who is responsible for the amendments and what they would do.

 

 

 

059

Sen. Starr

Responds that they would remove the GARVEE language out of the bill.

 

 

 

062

Sen. Deckert

States that the amendments were written after the initial hearing because there was concern over the issuance of GARVEE bonds.

 

Discussion follows.

 

 

 

092

Sen. Ringo

States that he is uncomfortable with additional mechanisms for the state to create more debt.

 

 

 

106

Sen. Ferrioli

Expresses the same concerns about creating debt, but states that he would be willing to vote the bill to the floor as a courtesy.

 

 

 

118

Sen. Deckert

States that the only issue is the GARVEE bonds and that he can see both sides of the argument.

 

 

 

131

Sen. Starr

Points out that ODOT has historically paid as they went and have incurred very little debt and that they wouldnít issue bonds for 30 years if the lifespan of the project were only 15 years.

 

 

 

151

Sen. Ferrioli

Recognizes that these bonds are not the same as short-term borrowing in other agencies, but points out that giving agencies those authorities has not been a good experience.

 

 

 

172

Sen. Ringo

Discusses his objection to lottery backed bonds and states that in the long run the state would be better off if it paid as it went.

 

Discussion follows.

 

 

 

210

Sen. Corcoran

States that the roads and bridges are in crisis and that if ODOT feels they need this option, he supports it.

 

 

 

227

Sen. Starr

Asks if Sen. Deckert is comfortable with Sen. Ferrioliís courtesy vote.

 

 

 

229

Sen. Deckert

Responds affirmatively.

 

Discussion follows.

 

 

 

236

Sen. Starr

MOTION: MOVES HB 2213 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

240

Sen. Deckert

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

SENATORS ANSWERING AYE: CORCORAN, STARR, FERRIOLI, DECKERT.

SENATOR ANSWERING NO: RINGO

SENATOR EXCUSED: HANNON.

 

 

 

242

Sen. Deckert

Adjourns meeting at 1:56 pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

  1. HB 3224 A, Richard Yates, Staff Measure Summary, 1p.
  2. HB 3224 A, Jack Kenny, Proposed HB 3224-A3 Amendments, 1p.
  3. HB 2213, Richard Yates, Proposed HB 2213-1 Amendments, 1p.