SENATE COMMITTEE ON

TRANSPORTATION AND ECONOMIC DEVELOPMENT

 

 

June 25, 2003                                                                                                         Hearing Room D

1:00 PM                                                                                                                    Tapes 116 - 117

 

MEMBERS PRESENT:         Sen. Rick Metsger, Chair

Sen. Bruce Starr, Vice-Chair

Sen. Ryan Deckert

Sen. David Nelson

 

VISITING MEMBERS:         Sen. Charlie Ringo    

 

STAFF PRESENT:                 Janet Adkins, Committee Administrator  

Dick Yates, Legislative Revenue Staff

Ryan Sherlock, Committee Assistant

 

MEASURE/ISSUES HEARD: HB 2041B – Public Hearing and Work Session

 

                                               

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 116, A

005

Chair Metsger

Calls the committee to order at 1:22 a.m., welcomes Janet Adkins as the committee staff. Opens a public hearing on HB 2041B.

010

Janet Adkins

Committee Administrator. Offers a description of the HB 2041B packet before the members which includes: Revenue Impact Statement (EXHIBIT A), Fiscal Impact Statement (EXHIBIT B), 2003 Oregon Transportation Investment Act (III) (EXHIBIT C), HB 2041B section overview (EXHIBIT D), and Projects of Statewide Significance (EXHIBIT E). Enters into the record a submitted letter to the House Revenue Committee outlining the Multnomah County agreement (EXHIBIT F), and submitted testimony from the Oregon State Treasurer, Randall Edwards (EXHIBIT G).

050

Rep. Alan Brown

House District 10. Offers testimony in support of HB 2041B; referred to as the Transportation Funding Package (TFP).

105

Vic Backlund

House District 25. Thanks Committee Administrator Adkins for her work with the TFP. Offers testimony in support of HB 2041B.

135

Chair Metsger

Recognizes the Vice Chairs of the House Committee on Transportation; Rep. Mabrey and Rep. Beyer. Opens a public hearing on HB 2041B.

HB 2041B – PUBLIC HEARING

145

Steven Corey

Chair, Oregon Transportation Commission (OTC). Offers written testimony (EXHIBIT H) in support of HB 2041B.

235

Bruce Warner

Director, Oregon Department of Transportation (ODOT). Offers written testimony (EXHIBIT I) in support of HB 2041B.

330

Chair Metsger

Points out the importance of employing Oregonians with the investments of the TFP. Asks that a commitment to this effect be offered to the record.

355

Warner

Reiterates ODOT’s interest and intention to ensure the maximum employment of Oregonians.

365

Chair Metsger

Clarifies that the department has all the resources needed to effectively complete the projects.

375

Warner

Assures the committee that ODOT has all the resources to implement the projects.

390

Chair Metsger

Refers to an Oregon Transportation Commission policy of awarding contracts based on those that are ready to be started, and clarifies that this policy will still be utilized.

400

Corey

Acknowledges, that the projects in question will be completed using proper procedures and guidelines.

420

Chair Metsger

Thanks Mr. Corey for his service on the Oregon Transportation Commission.

430

Corey

Thanks the chair for the recognition and comments on the accomplishments of the commission.

TAPE 117, A

005

Sen. Nelson

Comments on the Oregon Transportation Commission’s work in his district.

010

Corey

Acknowledges.

020

Sen. Starr

Concurs with Chair Metsger in thanking Mr. Corey for his work with the OTC.

035

Corey

Thanks Sen. Starr for the recognition.

050

Dick Yates

Legislative Revenue Staff. Offers presentational overview (EXHIBIT J) of the Transportation Funding Package:

  • Major Provisions
  • Overview
    • Bonding
    • Income Tax Sequestering
    • Project Selection and Expediting
    • Fees for Local Governments
    • Other

085

Yates

  • Net Proceeds of Bonds
    • Bridge Replacement and Repair
    • Modernization

100

Yates

  • Annual Taxes and Fees
    • Light Vehicles
    • Heavy Vehicles
    • Total

115

Yates

  • Distribution of New Revenue
    • Highway Fund
    • Parks
    • Possible Wedge Dollars
    • Multnomah County

150

Yates

  • Income Tax Capture
    • Identified Revenues
    • Estimate by DAS
    • 2008 Sunset

170

 

  • Use of Income Tax Revenue
    • Truck Engine Tax Credit

175

Sen. Deckert

Clarifies that the federal government will soon require those who would be receiving the tax credit to buy the engines they are receiving the credit for.

180

Yates

Acknowledges that those engines will soon be required.

185

Sen. Deckert

Clarifies that this means the Truck Engine Tax Credit is a tax credit to follow federal laws.

190

Yates

Acknowledges that technically this is true, without addressing the involved political issues. Continues with testimony:

    • Mass Transit Vehicle Replacement
    • Efficient Use of Highway Capacity

210

Yates

  • Project Selection
    • Public Contracting
    • Freight Mobility Projects
    • Use Revenues to

240

Yates

  • Fees for Local Governments
    • Fee Increases
    • Distribution

245

Yates

  • Other Provisions
    • Altered Freight Routes
    • Detours
    • Quarterly Payments (IRP)
    • Advanced Construction ($200 million)
    • Special County Allocation
    • Peak Load Pricing (Pilot Projects)

280

Yates

  • Issues
    • Cost Responsibility
    • Flat Fees: Revenue Neutrality

310

Chair Metsger

Thanks Mr. Yates for his work on the issue.

320

Yates

Thanks the chair for the recognition. Continues testimony with reference to submitted charts:

  • CHART: Personal Income Tax Revenue from Bonded Highway Construction Projects
  • CHART: HB 2041-7 (HB2367 Fees)
  • CHART: Transportation Plan Goals and Results
  • CHART: Vehicles Over 8,000 Pounds

330

Chair Metsger

Thanks Mr. Yates for his work.

390

Pat Egan

Governor’s Office. Offers written testimony (EXHIBIT K) in support of HB 2041B. Commends the bipartisan efforts of all those involved.

TAPE 116, B

020

Edward Johnston

Lincoln County. Offers testimony in opposition to the bill as written. Points out the need for accountability with ODOT. Comments on the effects the fee increases will have on local communities. Offers his personal experiences regarding the effects of fee increases.

070

Mike Salsgiver

Portland Business Alliance. Offers testimony in support of HB 2041B.

110

Ralph Groener

AFSCME. Offers written testimony (EXHIBIT L) in support of HB 2041B.

175

Chair Metsger

Clarifies that Mr. Groener is in support of the bill.

180

Groener

Acknowledges his support for the bill.

185

Judge Laura Pryor

Association of Oregon Counties. Offers written testimony (EXHIBIT M).

230

Chair Metsger

Concurs with Judge Pryor’s suggestion that this is only the first step to a total fix.

240

Bob Shiprack

Executive Secretary, Oregon Building Trades Council. Offers testimony in support of HB 2041B.

280

Andrea Fogue

League of Oregon Cities. Submits written testimony (EXHIBIT N) from Jim Torrey in support of HB 2041B.

310

Steve O’Toole

Executive Director, Oregon Petroleum Marketers Association. Offers testimony in support of HB 2041B.

340

Leslie Lewis

Commissioner, Yamhill County. Offers testimony in support of HB 2041B.

440

Darrell Fuller

Oregon Highway Users Alliance. Offers written testimony (EXHIBIT O) in support of HB 2041B.

TAPE 117, B

020

Larry Campbell

American Automobile Association. Offers testimony in support of HB 2041B.

045

Bob Russell

Oregon Trucking Association. Offers testimony in support of HB 2041B.

065

Chair Metsger

Closes the public hearing on HB 2041B, and opens a work session on HB 2041B.

HB 2041B – WORK SESSION

070

Sen. Starr

MOTION:  Moves HB 2041B to the floor with a DO PASS recommendation and BE REFERRED to the committee on Revenue by prior reference.

075

Sen. Starr

States the importance of the Transportation Funding Package, and thanks all those who worked on the issue.

085

Chair Metsger

Thanks all those who helped with the process, and on the issue.

120

 

VOTE:  3-0-1

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  1 - Deckert

 

Chair Metsger

The motion CARRIES.

125

Chair Metsger

Closes the work session on HB 2041B, and adjourns the meeting at 2:56 p.m.

 

 

EXHIBIT SUMMARY

 

A – HB 2041B, Revenue Impact Statement, Staff, 2 pp.

B – HB 2041B, Fiscal Impact Statement, Staff, 3 pp.

C – HB 2041B, 2003 Oregon Transportation Investment Act (III), Staff, 1 p.

D – HB 3041B, sectional overview, Staff, 9 pp.

E – HB 2041B, Projects of Statewide Significance, Staff, 1 p.

F – HB 2041B, Multnomah County agreement letter, Staff, 1 p.

G – HB 2041B, submitted written testimony from Randall Edwards, Staff, 2 pp.

H – HB 2041B, written testimony, Steven Corey, 2 pp.

I – HB 2041B, written testimony, Bruce Warner, 4 pp.

J – HB 2041B, revenue impact presentation, Dick Yates, 7 pp.

K – HB 2041B, written testimony, Pat Egan, 3 pp.

L – HB 2041B, written testimony, Ralph Groener, 1 p.

M – HB 2041B, written testimony, Judge Laura Pryor, 7 pp.

N – HB 2041B, submitted written testimony from Jim Torrey, Andrea Fogue, 1 p.

O – HB 2041B, written testimony, Darrell Fuller, 2 pp.