SENATE COMMITTEE ON BUSINESS AND ECONOMIC DEVELOPMENT
March 22, 2005 Hearing Room B
1:00 P.M. Tapes 46 - 47
MEMBERS PRESENT: Sen. Rick Metsger, Chair
Sen. Bruce Starr, Vice-Chair
Sen. Jason Atkinson
Sen. Ryan Deckert
Sen. Laurie Monnes Anderson
GUEST MEMBER: Sen. Vicki Walker
STAFF PRESENT: Theresa Van Winkle, Committee Administrator
James Goulding, Committee Assistant
MEASURES/ISSUES HEARD:
SB 983 – Public Hearing and Work Session
SB 390 – Public Hearing
SB 671 – Public Hearing
SB 585 – Public Hearing and Work Session
SB 398 – 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 46, A |
||
|
003 |
Chair Metsger |
Calls the committee to order as a subcommittee at 1:09 p.m. Opens a public hearing on SB 983. |
|
SB 983 – PUBLIC HEARING |
||
|
007 |
Sen. Vicki Walker |
Senate District 7. Testifies in favor of SB 983 and explains the measure and its origin. |
|
039 |
Chair Metsger |
Observes that a full committee is present. |
|
040 |
Cheryl O’Neill |
Executive Director, Womenspace, Eugene, Oregon. Testifies in favor of SB 983 and submits written testimony (EXHIBIT A). |
|
070 |
O’Neill |
Relates incidents of domestic violence against women who did not have phone service to call for help. |
|
100 |
O’Neill |
Discusses the need for a payment plan for those who need access to a phone for their own safety. |
|
123 |
Denise Washington |
Executive Director, Oregon Coalition Against Domestic and Sexual Violence (OCADSV). Presents written testimony in favor of SB 983 (EXHIBIT B). |
|
140 |
Jeff Bissonette |
Citizens’ Utility Board of Oregon (CUB). Presents written testimony in favor of SB 983 (EXHIBIT C). |
|
180 |
Sybil Hebb |
Oregon Law Center. Presents the committee with a letter from Rebecca Gandy in favor of SB 983 (EXHIBIT D). Testifies in favor of SB 983. |
|
207 |
Chair Metsger |
Summarizes the measure. Closes public hearing on SB 983. Opens a work session on SB 983. |
|
SB 983 – WORK SESSION |
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|
220 |
Sen. B. Starr |
MOTION: Moves SB 983 to the floor with a DO PASS recommendation. |
|
224 |
Sen. Monnes Anderson |
Wonders why there hasn’t been any testimony from the telecommunication industry. |
|
232 |
Schelly Jenson |
Verizon. Does not have any objection to the bill. |
|
237 |
|
VOTE: 5-0-0 |
|
|
Chair Metsger |
Hearing no objection, declares the motion CARRIED. SEN. WALKER will lead discussion on the floor. |
|
242 |
Chair Metsger |
Closes work session on SB 983 and opens a public hearing on SB 390. |
|
SB 390 – PUBLIC HEARING |
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|
245 |
Dan Gardner |
Commissioner, Bureau of Labor and Industries. Presents written testimony in favor of SB 390 (EXHIBIT E). |
|
265 |
Sen. Monnes Anderson |
Comments on the current criteria for members of the commission. |
|
277 |
Gardner |
Offers he could get that info to her. |
|
280 |
Sen. Monnes Anderson |
Asks if the members have a business background. |
|
285 |
Chair Metsger |
Closes public hearing on SB 390 and opens a public hearing on SB 671. |
|
SB 671 – PUBLIC HEARING |
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|
290 |
Chair Metsger |
Mentions the -2 amendments before the committee (EXHIBIT F). |
|
310 |
Kevin Campbell |
Oregon Mutual Utility Development, INC (OMUD). Testifies in favor of SB 671 with the -2 amendments. |
|
315 |
Chair Metsger |
Clarifies the amendments and purpose of the legislation. |
|
330 |
Campbell |
Introduces Mr. Barrows and Mr. Lanz. Discusses the efforts to address options that the Oregon Public Utility Commission (PUC) in regulating the potential purchase of a public utility. |
|
360 |
Campbell |
Discusses the tools that this legislation would give the PUC to evaluate a buyer of a utility such as Portland General Electric (PGE). |
|
390 |
Campbell |
Elaborates on purchase criteria that the measure would impose. |
|
410 |
Bob Lanz |
(OMUD). Testifies in favor of the amendments and the measure. |
|
TAPE 47, A |
||
|
005 |
Lanz |
Outlines the intent of the measure to provide other options to keep a utility locally owned. |
|
027 |
Sen. Atkinson |
Asks for clarification on Mr. Lanz’s previous statement. |
|
033 |
Lanz |
Attempts to clarify his comments. |
|
035 |
Campbell |
Explains the funding and asset source handling. |
|
040 |
Sen. Deckert |
Expresses appreciation for their efforts. Asks for a ball park tariff or fee that ratepayers would pay. |
|
055 |
Lanz |
Describes the factors that would determine the ultimate cost for ratepayers. |
|
077 |
Sen. Deckert |
States the importance of the interest rate. |
|
080 |
Lanz |
Describes crafting language similar to what was acceptable in other states. |
|
087 |
Sen. Deckert |
Considers what a ratepayer’s bill would look like and the probable tariff fee. |
|
095 |
Lanz |
Replies that it is too early in the process to tell. |
|
100 |
Sen. Deckert |
Asks about the makeup of the board for PGE. |
|
105 |
Lanz |
Notes his hopes for greater representation of local interest groups on the board in addition to the investors. |
|
113 |
Sen. Deckert |
Wonders how they would handle liabilities such as the decommissioning of the Trojan plant. |
|
117 |
Lanz |
Responds that they are trying to preserve the current management of liabilities. |
|
125 |
Sen. Deckert |
Observes the factors that could assist in keeping rates low. |
|
130 |
Lanz |
Relates that PUC regulation provides a way to have safe and reliable service. |
|
140 |
Sen. Deckert |
Wonders about federal taxes. |
|
143 |
Lanz |
Offers they will continue to pay federal taxes. |
|
147 |
Chair Metsger |
Expounds upon Sen. Deckert’s question of the governance model for the board membership. |
|
153 |
Lanz |
Describes the potential makeup of the board and candidates. |
|
167 |
Chair Metsger |
Considers the particulars. |
|
170 |
Lanz |
Expands on his previous remarks. |
|
187 |
Chair Metsger |
Clarifies the use of capital and its relationship to the ratepayers. Asks for Mr. Lanz’s opinion on why this model is better than some of the other proposed models. |
|
200 |
Lanz |
Details the advantages of the proposed model. |
|
230 |
Sen. Walker |
Comments on the lengthy process with settling the Enron court cases. Wonders how a mutual utility would fare in establishing itself in a short amount of time. |
|
245 |
Lanz |
Replies that this measure would allow for expedited financing and hopefully move the process forward. |
|
265 |
Sen. Walker |
Asks if they have contacted the bankruptcy trustee for this case. |
|
267 |
Lanz |
Responds that they have. |
|
280 |
Sen. Walker |
Discusses similar proposals to mutualize other state owned assets. Expresses her concern over resolving matters in a reasonable amount of time. |
|
290 |
Sen. Monnes Anderson |
Requests additional clarification on the tax structure. |
|
300 |
Lanz |
Replies. |
|
303 |
Sen. Monnes Anderson |
Provides her observations. |
|
310 |
Sen. Deckert |
Discusses the differences between the proposal they are hearing and the proposal he is offering. |
|
317 |
Chair Metsger |
Reiterates the federal taxation issues. |
|
330 |
Lanz |
Talks about the consumer benefits. |
|
335 |
Dave Barrows |
OMUD, Inc. Testifies in favor of SB 671 with the -2 amendments. Mentions the advantages of a mutual company. Offers this proposal as another possible model that could be used to resolve this issue. |
|
370 |
Barrows |
Addresses potential creditor and trustee concerns. |
|
400 |
Chair Metsger |
Observes the that this measure creates a mechanism. |
|
TAPE 46, B |
||
|
005 |
Chair Metsger |
Recalls similar issues involved in evaluating the State Accident Insurance Fund (SAIF). |
|
007 |
Barrows |
Mentions an information packet he is passing out to the committee (EXHIBIT G). |
|
025 |
Jeff Bissonnette |
Citizens Utility Board (CUB). Testifies in favor of SB 671 in its original form. Expresses the complications of adding the -2 amendments. |
|
053 |
Brad Higbee |
Renewable Northwest Project. Testifies in favor of SB 671 with some additional language. Reads the additional language to the committee. |
|
067 |
Chair Metsger |
Asks for additional clarification on Mr. Bissonnette’s comments |
|
073 |
Bissonnette |
Clarifies his comments. |
|
077 |
Chair Metsger |
Expresses his desire to examine the -2 amendments in greater detail before moving this measure forward. Closes public hearing on SB 671. Opens a public hearing on SB 585. |
|
SB 585 – PUBLIC HEARING |
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|
105 |
Neil Jackson |
Board of Governors, Oregon Trial Lawyers Association. Presents written testimony in favor of SB 585 (EXHIBIT H). Supports the proposed -2 (EXHIBIT I) and -3 (EXHIBIT J) amendments to SB 585. |
|
135 |
John Powell |
State Farm Insurance. Expresses support for SB 585 and the -2 amendments. Testifies in opposition to the -3 amendments. |
|
160 |
Powell |
Discusses the -2 amendments and the issues resolved by them. Talks about liens against Personal Injury Protection (PIP) amounts. |
|
190 |
Vern Saboe |
Chiropractic Association of Oregon (CAO). Testifies in favor of SB 585. Explains the provisions of the bill and what it aims to prevent. |
|
213 |
Chair Metsger |
Reiterates the medical scenarios this legislation seeks to address. Asks Mr. Jackson about trends in managed care services. |
|
230 |
Jackson |
Offers that he doesn’t see a trend. States he is seeking to make it fair. |
|
237 |
Jane Myers |
Government Relations, Oregon Dental Association (ODA). Testifies to explain the intent of the -3 amendments to SB 585. |
|
280 |
Chair Metsger |
Asks if there is any additional testimony. Closes public hearing on SB 585. |
|
SB 585 – WORK SESSION |
||
|
290 |
Sen. B. Starr |
MOTION: Moves to ADOPT SB 585-2 amendments dated 3/16/05. |
|
292 |
|
VOTE: 4-0-1 EXCUSED: 1 - Deckert |
|
|
Chair Metsger |
Hearing no objection, declares the motion CARRIED. |
|
294 |
Sen. B. Starr |
MOTION: Moves SB 585 to the floor with a DO PASS AS AMENDED recommendation. |
|
297 |
|
VOTE: 4-0-1 EXCUSED: 1 - Deckert |
|
|
Chair Metsger |
Hearing no objection, declares the motion CARRIED. SEN. MONNES ANDERSON will lead discussion on the floor. |
|
300 |
Chair Metsger |
Closes work session on SB 585. Opens a public hearing on SB 398. |
|
SB 398 – PUBLIC HEARING |
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|
310 |
Sen. Ben Westlund |
Senate District 27. Testifies in favor of SB 398 and explains the measure. |
|
345 |
Jim Noteboom |
Confederated Tribes of the Warm Springs Reservation of Oregon. Presents the written testimony of Ron Suppah to the committee (EXHIBIT K). Advocates passage of the bill. |
|
390 |
Chair Metsger |
Notes his statement in regards to “amendment”. Clarifies that there are no proposed amendments to SB 398. |
|
395 |
Noteboom |
Replies that he was referring to an amendment of statute and not the measure itself. |
|
397 |
Chair Metsger |
Asks for clarification on creation of a foreign Limited Liability Corporation (LLC). |
|
400 |
Noteboom |
Clarifies the method of obtaining LLC status. |
|
415 |
Sen. Atkinson |
Asks if a reservation could create a single member LLC. |
|
416 |
Noteboom |
Believes they can. |
|
417 |
Sen. Atkinson |
Asks if the State of Oregon recognizes an S-Corporation (S-corp.) started on a reservation. |
|
420 |
Noteboom |
Details the process. |
|
425 |
Sen. Atkinson |
Considers the protections available in an LLC. Notes the need to protect land assets. |
|
430 |
Noteboom |
Relates the handling of land assets. |
|
435 |
Sen. Atkinson |
Observes the unique policy questions that are raised. |
|
445 |
Noteboom |
Addresses current uses of tribal lands. |
|
TAPE 47, B |
||
|
005 |
Sen. Atkinson |
Voices support for the measure. Points out the protection of a capitol corporation. |
|
013 |
Noteboom |
Talks about the evolving economic factors of tribes. |
|
020 |
Michael Mason |
Confederated Tribes of Warm Springs. Testifies in support of SB 398. |
|
030 |
Sen. Monnes Anderson |
Asks for clarification on foreign LLCs. |
|
035 |
Noteboom |
Explains the laws related to formations of LLCs. |
|
043 |
Sen. Monnes Anderson |
Request clarification on land acquisitions. |
|
045 |
Noteboom |
Discusses the types of LLCs that could be formed. |
|
050 |
Sen. Westlund |
Adds that it doesn’t apply outside of tribal lands. |
|
055 |
Noteboom |
Offers additional details. |
|
059 |
Sen. Atkinson |
Proposes potential scenarios where this bill would enable greater tribal business opportunities. |
|
067 |
Sen. Westlund |
Reiterates that this is a simple, but important bill. |
|
070 |
Chair Metsger |
Closes public hearing on SB 398. Opens a work session on SB 398. |
|
SB 398 – WORK SESSION |
||
|
077 |
Sen. B. Starr |
MOTION: Moves SB 398 to the floor with a DO PASS recommendation. |
|
079 |
|
VOTE: 4-0-1 EXCUSED: 1 - Deckert |
|
|
Chair Metsger |
Hearing no objection, declares the motion CARRIED. SEN. WESTLUND will lead discussion on the floor. |
|
081 |
Chair Metsger |
Closes work session on SB 398. Adjourns the committee at 2:39 p.m. |
EXHIBIT SUMMARY