WORK SESSION, SB 267, SB 22

PUBLIC HEARING, SB 302

TAPES 38-39, A

005

Vice Chair C. Starr

Calls meeting to order at 8:40 a.m.

WORK SESSION, SB 267

010

Mary Ayala

Gives overview and background of SB 267, Staff Measure Summary (EXHIBIT 1). Allows Oregon Tax Court to determine the real market value or the correct valuation of property that is subject to special assessment.

029

Vice Chair C. Starr

Comments on bill.

033

Chair Deckert

Ginny Lang of Qwest said the company has dropped its objection.

047

Sen. Prozanski

MOTION: MOVES SB 267 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

049

Vice Chair C. Starr

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS.

VOTE: 4-0-1

VOTING AYE: METSGER, PROZANSKI, VICE CHAIR STARR, CHAIR DECKERT

EXCUSED: GEORGE

053

Paul Warner

Gives overview of SB 22. Removes prohibition on State Treasurer investing certain funds in common stocks. See Section 1(2). Directs members’ attention to a memo from State Treasurer’s Office (EXHIBIT 2).

075

Mike Mueller

Testifies in favor of SB 22. Summarizes results of a survey of state pension funds asking whether in-house investing was allowed and what parameters were placed on their ability. Twenty states responded.

123

Sen. Metsger

Supports bill but has concerns about direct investments. Is interested in seeing a summary of investments next session.

144

Mueller

 Would be happy to report back.

150

Chair Deckert

Suggests an amendment in the House Revenue Committee that treasurer would present a formal report.

165

Sen. Prozanski

Report could be removed later if deemed unnecessary.

175

Sen. Prozanski

MOTION: MOVES SB 22 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

179

Vice Chair C. Starr

ORDER: HEARING NO OBJECTION THE CHAIR SO ORDERS.

VOTE: 4-0-1

VOTING AYE: METSGER, PROZANSKI, VICE CHAIR STARR, CHAIR DECKERT

EXCUSED: GEORGE

201

Warner

Staff Measure Summary (EXHIBIT 3). SB 302 creates term limits for Oregon Investment Council. Limits terms to 2 four-year terms in a 12-year period. Also requires written and recorded logs available to public. Specifies the council must meet every month.

212

Sen. Prozanski

Comments on term limits and asks how often council meets now.

225

Kate Richardson

Gives testimony relating to SB 302. Most of the items in the bill are codification of state treasurer’s current policy. Monthly meetings are the exception. Treasurer is asking to drop the monthly requirement.

255

Sen. Prozanski

Expresses concerns on term limits.

275

Richardson

Shares Sen. Prozanski’s concern, but does not oppose bill.

285

Sen. Metsger

Does not oppose term limits, but is reluctant to require monthly meetings.

305

Richardson

Treasury has spoken with Sen. Walker about this concern.

325

Sen. Prozanski

Asks for clarification regarding monthly meeting question.

365

Vice Chair C. Starr

Comments, there seems to be a contradiction between two sections in the bill: Section 1(2) and Section 2(2)a.

385

Richardson

Section 2 has been interpreted not to conflict with prior section.

395

Vice Chair C. Starr

Follow-up questions regarding the possible contradiction.

424

Sen. Prozanski

Agrees with Vice Chair Starr to make an amendment to clear up contradiction.

006

Sen. Vicki Walker

Explains why she introduced SB 302. Calls her OIC bills the "Diana Goldschmidt bills" because during her period of service a number of things occurred that Sen. Walker believes were against OIC’s ethics policy. There’s a caveat that says ethical standards may be waived. Finds this inappropriate.

033

Sen. Prozanski

Informs Sen. Walker that Treasurer’s office is not opposed to the bill with the exception of the monthly meetings requirement.

041

Sen. Walker

Would be willing to acquiesce to monthly meeting issue. Wants meetings to be live, not conference calls, for benefit of public.

048

Richardson

Explains, all meetings are scheduled to be attended by the public.

059

Sen. Walker

Council had a meeting in October 2004 that created the controversy.

Follow-up comments.

063

Richardson

That meeting was indeed a public meeting. Minutes were taken at that meeting. It is Treasurer’s policy to tape record. This was an off-site meeting and there was no audio equipment available.

084

Sen. Metsger

Comments, these points are valid; it’s a good piece of legislation. Asks meetings not be set by statute.

099

Sen. Walker

Will draft a bill to remove the mandatory meetings.

107

Richardson

Section 2 amendments are not part of current statute.

110

Vice Chair C. Starr

Asks for further discussion; notes amendments are needed.

115

Warner

Comments Section 6 is where the monthly requirement is mentioned.

120

Sen. Walker

Agrees to the deletion of Section 6.

127

Chair Deckert

Expresses concern about term limits for a chairman. A person doing a good job would not be able to continue.

149

Sen. Walker

Responds, OIC came up with these ethical standards. They are very good. Current chair was brought back with the express purpose as serving as chair. Contends chair serves in violation of current policies.

185

Vice Chair C. Starr

Asks for further discussion. Asks that the conflict between the two sections be addressed.

188

Sen. Prozanski

Discussion on conflict. Questions why section 2 goes into effect in 2007. Why couldn’t it be implemented sooner?

195

Richardson

This was part of PERS reform. In the past a member of the PERS board would serve on OIC. With board downsizing, there was nobody from PERS to serve. This postponement was a compromise.

216

Sen. Walker

Cites a letter to former Gov. Kitzhaber concerning a former chair’s plans to return to Investment Council as its chair.

245

Richardson

Suggests another amendment, clarification to Section 2.

259

Sen. Walker

Concurs.

267

Vice Chair C. Starr

Committee will return to this bill to discuss amendments. Closes public hearing on SB 302.

287

Warner

Discusses schedule for next week. Committee will meet Friday, February 25, for Revenue Forecast.

312

Vice Chair Starr

Adjourns meeting at 9:29 a.m.