WORK SESSION, SB 24, SB 21

PUBLIC HEARING, SB 23, SB 28

 

TAPES 28,29-A

 

SENATE REVENUE COMMITTEE

FEBRUARY 8, 2005 8:30 AM STATE CAPITOL BUILDING

 

Members Present:††††††††††††††††† Senator Ryan Deckert, Chair

††††††††††††††††††††††††††††††††††††††††††††††† Senator Charles Starr, Vice Chair

††††††††††††††††††††††††††††††††††††††††††††††† Senator Floyd Prozanski

††††††††††††††††††††††††††††††††††††††††††††††† Senator Rick Metsger

†††††††††††††††††††††††

Members Excused:†††††††††††††††† Senator Gary George

 

Witnesses Present:††† ††††††††††† Mike Mueller, Oregon State Treasury

††††††††††††††††††††††††††††††††††††††††††††††† Pat Clancy, Municipal Debt Advisory Commission

††††††††††††††††††††††††††††††††††††††††††††††† Harvey Rogers, Preston/Gates/Ellis LLP, Portland

††††††††††††††††††††††††††††††††††††††††††††††† Michelle Deister, League of Oregon Cities††††

 

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

††††††††††††††††††††††††††††††††††††††††††††††† Steve Meyer, Economist

††††††††††††††††††††††††††††††††††††††††††††††† Mazen Malik, Economist††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

††††††††††††††††††††††††††††††††††††††††††††††† Barbara Guardino, Committee Assistant

 

 

TAPE 28, SIDE A

011

Chair Deckert

Calls meeting to order at 8:35 a.m.

Committee stands at ease to await a quorum.

 

WORK SESSION, SB 24

044

Chair Deckert

Opens work session on SB 24, authorizing sale of equity investments in the Common School Fund.

 

046

Mike Mueller

Testifies in favor of SB 24. Allows for flexibility for definition of income for the Common School Fund, giving additional discretion to State Land Board.

 

057

Chair Deckert

Requests Mueller comment on prior discussion from when bill came up Jan. 31, 2005.

 

061

Vice Chair C. Starr

MOTION: MOVES SB 24 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

064

Sen. Deckert

ASKS FOR ANY OBJECTION. THERE BEING NO OBJECTION THE CHAIR SO ORDERS.

VOTE: 3-0-2

MEMBERS VOTING AYE: PROZANSKI, VICE CHAIR C. STARR, CHAIR DECKERT

MEMBERS EXCUSED: GEORGE, METSGER

 

WORK SESSION, SB 21

079

Mazen Malik

Gives review of SB 21. Staff Measure Summary (EXHIBIT 2). Deletes prohibition on investment of certain funds in foreign securities. No revenue impact or fiscal impact statements issued.

 

103

Vice Chair C. Starr

MOTION: MOVES SB 21 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

109

Sen. Deckert

ASKS FOR ANY OBJECTION TO MOTION. THERE BEING NO OBJECTION THE CHAIR SO ORDERS.

VOTE: 3-0-2

MEMBERS VOTING AYE: PROZANSKI, VICE CHAIR C. STARR, CHAIR DECKERT

MEMBERS EXCUSED: GEORGE, METSGER

 

 

 

PUBLIC HEARING, SB 23

131

Malik

Reviews SB 23, Staff Measure Summary (EXHIBIT 3). Makes technical changes to procedures for issuing, selling and maintaining bonds issued by public users. Contains clarifying language.

 

153

Malik

Bill also addresses issue of limiting tax bonds for counties to finance pension bonds and to set 5% limit vs. 1% limit. This change is also the subject of the change in SB 28. Change allows Council of Governments to be under same laws as municipalities.

 

190

Malik

Discusses language on page 2, line 41.

 

219

Malik

Amendments proposed for this bill have not arrived yet.

 

 

 

226

Pat Clancy

Testifies in favor of SB 23. Chair of Municipal Debt Advisory Commission, which is charged with overseeing municipal debt issuance process and preparing bills to address concerns.

 

265

Harvey Rogers

Testifies in favor of SB 23. See Summary of Testimony of Harvey W. Rogers on Senate Bills and 28 (EXHIBIT 5). Will walk members through bill section-by-section. Will also discuss amendment that is not currently before the committee that is a mistake.

 

296

Sen. Prozanski

Asks Rogers to point out areas that contain differences in opinion.

 

306

Clancy

Before this committee is what has been agreed upon.

 

325

Rogers

Gives background on issue of adjustment of Oregon countiesí constitutional debt limits. Two sessions ago there became an awareness of growing unfunded actuarial government liability that governments have to Oregon Public Retirement System.

 

365

Rogers

In order to pay down unfunded PERS liability, legislature adopted statutes to authorize counties to incur indebtedness for pension liabilities. Language in SB 28 and SB 23 is an effort to say the older statute deals with borrowings that are not pension borrowings. Pension borrowing is a separate authorization.

 

423

Rogers

Continues comments concerning SB 23.

 

TAPE 29, SIDE A

019

Rogers

Begins discussion of second issue, which will appear in an amendment. Pertains to local governments and property taxes. General obligation bonds for Oregon local governments are different from the state because of local options. The amendment will deal with cash flow issues in regard to these bonds.

 

066

Rogers

An amendment will address this problem as well as a problem that Marion County is experiencing.

 

103

Sen. Prozanski

Asks questions on issue of 12% interest for late payments.

 

115

Malik

Explains.

 

139

Clancy

Explains why this last piece is coming as an amendment.

 

 

 

175

Michelle Deister

Testifies in support of upcoming amendments.

 

180

Chair Deckert

Closes public hearing on SB 23; opens public hearing on SB 28.

 

PUBLIC HEARING, SB 28

199

Malik

Reviews SB 28. Clarifies maximum amount of outstanding indebtedness that applies to limited tax bonds issued to finance pension liabilities.

 

223

Rogers

Explains, there are identical provisions in SB 23 and SB 28. The language is only needed once.

 

237

Chair Deckert

Would prefer it drafted as amendment in SB 23.

 

280

Chair Deckert

Closes public hearing on SB 28. Will bring amendments back as SB 23. Notes agenda for remainder of week: White paper on taxation of regulated utilities. Adjourns meeting at 9:22 a.m.

 

Tape Log Submitted by,

 

 

 

Barbara Guardino, Committee Assistant††††††††††††††††††††††††††††††

 

Exhibit Summary:

1.      SB 24, Staff Measure Summary, Meyer, 1 pp.

2.      SB 21, Staff Measure Summary, Malik, 1 pp.

3.      SB 23, Staff Measure Summary, Malik, 1 pp.

4.      SB 23, Legislative Fiscal Office, No Expenditure Impact Statement, Malik, 1 pp.

5.      SB 23, Summary of Testimony of Harvey W. Rogers on Senate Bills 23 and 28, Rogers, 4 pp.

6.      SB 28, Legislative Fiscal Office, No Expenditure Impact Statement, †Malik, 1 pp.

7.      SB 28, Staff Measure Summary, Malik, 1 pp.