SENATE COMMITTEE ON ENVIRONMENT & LAND USE

 

 

February 09, 2005                                                                                                   Hearing Room B

3:00 P.M.                                                                                                                     Tapes  17 - 18

 

MEMBERS PRESENT:         Sen. Charlie Ringo, Chair

Sen. Jason Atkinson, Vice-Chair

Sen. Roger Beyer

 

MEMBER EXCUSED:          Sen. Ginny Burdick

Sen. Frank Shields

 

MEMBERS VISITING:         Rep. Jackie Dingfelder

 

STAFF PRESENT:                 Matt Shields, Committee Administrator

Katie Lowry, Committee Assistant

 

MEASURES/ISSUES HEARD:                    

                                                SB 406 – Public Hearing

                                                Introduction of Committee Measures – 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 17, A

005

Chair Ringo

Calls meting to order at 3:06 pm. Makes opening remarks regarding Hood River meeting on Friday, 2/11/2005. Introduces Chris Crean, Counsel. Makes opening remarks regarding SB 406. Opens public hearing on SB 406.

SB 406 – PUBLIC HEARING

025

Sen. Kurt Schrader

Submits section by section summary of SB 406 (EXHIBIT A).  Gives background information on Measure 37.  States support for SB 406. Urges committee to look at SB 406 as a template for getting started.

080

Sen. Schrader

Explains SB 460 and refers to (EXHIBIT A).  

115

Chair Ringo

Asks if witness envisions a provision for waivers.

116

Sen. Schrader

Replies yes and explains.

120

Chair Ringo

Verifies that this bill contains a mechanism for allowing those waivers.

122

Sen. Schrader

Confirms this. Explains specifications of what SB 406 would accomplish.

150

Sen. Schrader

Explains funding mechanism for compensation provided for in SB 406.

151

Chair Ringo

Asks if there is some analysis for how much money would be raised.

155

Sen. Schrader

Explains.

160

Chair Ringo

Remarks that he would like to know more about the revenue source.

165

Sen. Schrader

Refers to sections 23-27 (EXHIBIT A, Page 2). Refers to section 29 subsection 3 of SB 406. (SB 406, Page 17).

190

Chair Ringo

Asks if SB 406 has Measure 5 implications.

191

Sen. Schrader

Replies yes and discusses the implications.

195

Chair Ringo

Asks what the witness has that he could show the committee about the financial analysis.

196

Sen. Schrader

Answers question. Hopes committee will use SB 406 as a template and asks to be a part of the process. Encourages committee to involve legislators.

220

Sen. Atkinson

Refers to section 12 (EXHIBIT A, Page 1). Asks about language.

222

Sen. Schrader

Explains language.

230

Sen. Atkinson

Refers to SB 432. Believes Land Use Board of Appeals (LUBA) should be a point of discussion for a future work group.

240

Sen. Schrader

Points out that this legislation would be for all Oregonians and therefore needs to be balanced.

242

Sen. Atkinson

Asks if SB 406 has compensation for landowners whose property has been devalued due to regulations.

245

Sen. Schrader

Confirms this.

250

Sen. Beyer

Notes that this is a constitutional bill and points out that a 3/5 majority is necessary.

253

Sen. Schrader

Remarks that the intent of SB 406 is to open up a discussion.

255

Sen. Beyer

Remarks that he has a lot of questions, but wants to hear what people have to say.

260

Sen. Atkinson

Asks about 3/5 majority requirement.

261

Sen. Schrader

Stresses that this is a discussion item.

265

Chair Ringo

Comments that the committee will not move SB 406 today, but would like to continue discussion.

270

Sen. Beyer

Wants to hear what people have to say.

275

Chair Ringo

Asks if there is a financial analysis for how much money there is in the short run for the existing claims under Measure 37.

285

Sen. Schrader

Responds that the claims would be categorized and the oldest claims would be addressed first based on dollars available.

305

Chair Ringo

Wonders what incentive there would be for the government to waive claims as opposed to giving compensation.

310

Sen. Schrader

Explains and gives examples.

325

Chair Ringo

Verifies that if there was no money for compensation, the government would have to waive after a year even if they preferred not to waive.

326

Sen. Schrader

Confirms this.

330

Chair Ringo

Asks about 25 percent threshold.

333

Sen. Schrader

Talks about value.

345

Chair Ringo

Asks if work group did any analysis on what the result would be in terms of on the ground development.

350

Sen. Schrader

Explains that he doesn’t know how many people would want to waive and how many would want compensation.

355

Chair Ringo

Asks about analysis on the appraisal process.

360

Sen. Schrader

Talks about fair market evaluation process. Brings up question of farm tax deferral.

379

Chair Ringo

Asks how SB 406 addresses farm tax deferral.

380

Sen. Schrader

States that SB 406 does not address it.

382

Sen. Shields

Asks about farmers.

400

Sen. Schrader

Explains different perspectives.

420

Rep. Dingfelder

Refers to section 25 (EXHIBIT A, Page 2). Asks how to address the issue of compensation when someone has already been receiving farm tax deferrals.

TAPE 18, A

010

Sen. Schrader

Explains.

020

Sen. Beyer

Asks if this is a reprint of the bill worked on in the 2001 session.

025

Sen. Schrader

Explains that it is similar to the -16 amendments done May 29, 2001 with some changes.

026

Sen. Beyer

Remarks that he does not see anywhere in SB 406 where Measure 37 is repealed.

027

Sen. Schrader

Verifies that is correct.

030

Chair Ringo

Remarks that the intent of it is to essentially replace Measure 37 with something that is functional.

031

Sen. Schrader

Clarifies the goal of SB 406.

035

Sen. Beyer

Talks about constitution. States that Measure 37 is a statute. Wants to know if the intention is to repeal Measure 37.

045

Sen. Schrader

Talks about goal of SB 406.

060

Sen. Beyer

Remarks that the proposed funding mechanism would need to go to the voters.

065

Chair Ringo

Thanks Sen. Schrader and explains that he would like to get more of the financial analysis and supporting information. Asks Sen. Schrader to make it available to committee staff.

080

Roger Kaye

Friends of Marion County. Submits a letter to Senate President Peter Courtney regarding Measure 37 issues and requests to address these issues (EXHIBIT B). Explains that the ability for neighbors to comment is lacking in Measure 37. Explains that these are the six specific requests (EXHIBIT B, Page 2) that Friends of Marion County would like to see addressed.

130

Chair Ringo

Refers to (EXHIBIT B, Page 2, and Number 3). Asks question.

135

Kaye

Clarifies that some of these concerns were delivered to him by someone else, but assumes that because neighbors to Measure 37 claims may be adversely impacted, they should have the right to file some sort of equivalent claim based on diminution of property value.

140

Bob Stacey

1000 Friends of Oregon. Submits and highlights written testimony (exhibit C) addressing SB 406.

220

Chair Ringo

Asks if other states that have a compensation mechanism have a threshold requirement.

225

Stacey

Believes that the states contain a threshold and that there is also flexibility in that it triggers a judicial review opportunity.

230

Chair Ringo

Verifies that there would be a threshold before getting to that judicial review.

231

Stacey

Believes this is true. Continues highlighting testimony (exhibit C, Page 2).

305

Chair Ringo

Clarifies that there would be a lot of details that would be added.

310

Stacey

Confirms this and explains that the legislature put together a measure that will work on the ground.

315

Chair Ringo

Asks who has the expertise to put that together.

317

Stacey

Suggests names of people to help.

335

Chair Ringo

Asks if witness knows of financial analysis that has been done.

340

Stacey

Explains that is a question for someone else. Discusses details.

355

Stacey

Points out that there are issues that are addresses in Measure 37 and are not addressed in SB 406. Gives example (EXHIBIT C, Page 2, and Number 6).

378

Chair Ringo

Asks question from Kaye’s testimony regarding loss of value of neighbor’s property Asks witness to describe.

385

Stacey

Explains that SB 406 substitute’s payment for the waiver that would cause that damage.

405

Sen. Atkinson

Addresses those who would want to be part of a work group. Expresses concerns that those who would be a part of a work group are all opposed to Measure 37 and therefore the outcome will be skewed. Asks if there is any other state in the union that stops people from building on their land just because it is zoned farm land.

TAPE 17, B

010

Stacey

Discusses Washington state. Gives example in Washington County.

025

Sen. Atkinson

Remarks that the rule doesn’t work in southern Oregon and eastern Oregon. Explains frustration of counties who passed Measure 37.

030

Stacey

Recognizes frustration.

043

Sen. Atkinson

Explains that both of the farm bureaus in his district broke away and supported Measure 37. Expresses concern about issue of payment, not waivers. Hopes that some supporters of Measure 37 will be a part of the task force.

060

Chair Ringo

Wants to address frustration. Explains that if there will be any solution, it will have to be broad based.

070

Sen. Atkinson

Believes that people knew what they were doing when they voted for Measure 37.

075

Chair Ringo

Believes that it is the legislature’s job to make it work.

076

Sen. Beyer

States that every county in the state except Benton County supported Measure 37. Explains that Benton County was the only county in the state where Measure 37 was defeated.

090

Stacey

Recognizes that if only people who campaigned against Measure 37 are a part of the work group, then it is not a work group. Wants to work to implement the will of the voters and explains that it is the details that need to be talked about.

100

Harlan Levy

Senior Staff Attorney, Oregon Association of Realtors (OAR). Explains that OAR did not take a position on Measure 37 but explains that they will be affected by it. Discusses points of opposition to SB 406:

  • New tax on real property
  • Believes that SB 406 does not provide land use reform
  • Waivers are not provided for in SB 406
  • States that Oregon is the only state in the union that prohibits a single dwelling because it is farmland

165

Sen. Beyer

States that SB 406 is clearly unconstitutional and that is a good reason to not support it as drafted.

166

Levy

Points out that this is a revenue raising bill.

175

Scott Ashcom

Executive Director, Oregon Agricultural Alliance. Submits written testimony (exhibit D) in support of SB 406. Refers to an article included in the testimony.

225

Bruce Miller

Office of the State Court Administrator. Introduces Jill Tanner.

230

Jill Tanner

Presiding Magistrate, Tax Court. Gives some preliminary observations.

  • The Tax court is a trial court, not an appellate court, but SB 406 would give them appellate court functions. Describes effect of change.

255

Chair Ringo

Verifies that this would be a shift in focus because currently the Tax Court doesn’t do any appellate work.

256

Tanner

Confirms this.

  • Speaks about staff and timeline. Talks about timeline SB 406 would implement and explains that this would be added to the court’s current tax load and some of those cases already have statutory precedence. Explains that there may or may not be issues with staffing and deadlines.
  • Explains that the process would begin in the Magistrate Division in the Oregon Tax Court.

290

Miller

Explains that it was unclear from language in SB 406 whether it meant the Tax Court Judge or the Tax Court. Explains importance of distinction.

295

Tanner

Explains that the Regular Division is a court of record and that the Magistrate Division is not a court of record.

  • SB 406 talks about the appeals from Oregon Tax Court going to the Court of Appeals. Explains that currently appeals from the Regular Division of the Tax Court go to the Supreme Court and appeals from the Magistrate Division go to the Regular Division of the Tax Court.

310

Miller

Explains that they are not suggesting there is a problem with this process, just pointing out the difference.

320

Tanner

Asks for additional guidance.

325

Chair Ringo

Comments that this is a long way from being ready.

330

Art Schlack

Association of Oregon Counties (AOC). States that there needs to be some discussion about concepts in SB 406. Discusses issues.

375

Chair Ringo

Asks witness if the concept of transferable development credits has merit.

378

Schlack

Believes it has some viability, but discusses limitations. Expresses willingness and interest to help.

400

Rep. Dingfelder

Verifies that currently cities, counties, and special districts provide services that benefit many landowners in Oregon.

415

Schlack

Confirms this.

418

Rep Dingfelder

Asks if Oregon requires landowners to compensate cities, counties, and special districts for the added value received.

423

Schlack

Responds, no. Explains.

430

Rep Dingfelder

Explains that some landowners receive more benefits than other landowners.

TAPE 18, B

015

Schlack

Remarks that SB 406 does address increases in value accrued to a piece of property because of services by local govt. Wonders how to balance between the increases that are attributed to the property by actions of local government versus limitations through restrictions that would have a negative impact.

025

Rep Dingfelder

Clarifies if witness considers it a new tax.

030

Schlack

Explains.

040

Rep Dingfelder

Explains that Measure 37 does not address any of the benefits; it only addresses the loss.

045

Schlack

Discusses appraisals.

050

Chair Ringo

Closes public hearing on SB 406 and opens work session on introduction of committee measures.

INTRODUCTION OF COMMITTEE MEASURES – WORK SESSION

055

Matt shields

Reads Legislative Counsel (LC) Draft numbers and relating to clauses.

Lists bills: 1367 (became SB 648) (EXHIBIT E), 2109 (became SB 651) (EXHIBIT F), 2166 (became SB 653) (EXHIBIT G), 2175 (became SB 654) (EXHIBIT H), 2183 (became SB 655) (EXHIBIT I), 2450 (became SB 658) (EXHIBIT J), and 2729 (became SB 662) (EXHIBIT K).

060

Sen. Ringo

MOTION:  Moves LC's:  1367, 2109, 2166, 2175, 2183, 2450, 2729 BE INTRODUCED as committee bills.

 

 

VOTE:  3-0-2

EXCUSED:  2 - Burdick, Shields

 

Chair Ringo

Hearing no objection, declares the motion CARRIED.

 

Chair Ringo

Closes work session on introduction of committee measures and adjourns meeting at 4:36 p.m.

 

EXHIBIT SUMMARY

 

A.     SB 406, summary, Sen. Kurt Schrader, 2 pp

B.     SB 406, letter, Roger Kaye, 3 pp

C.     SB 406, written testimony, Bob Stacey, 3 pp

D.    SB 406, written testimony and article, Scott Ashcom, 16 pp

E.     Introductions, LC 1367, Staff, 3 pp

F.      Introductions, LC 2109, Staff, 5 pp

G.    Introductions, LC 2166, Staff, 6 pp

H.    Introductions, LC 2175, Staff, 1 p

I.       Introductions, LC 2183, Staff, 2 pp

J.      Introductions, LC 2450, Staff, 5 pp

K.    Introductions, LC 2729, Staff, 2 pp