PUBLIC HEARING: SB 899

WORK SESSION: SB 32, SB 840

 

TAPES 67, 68 A

 

SENATE REVENUE COMMITTEE

MARCH 15, 2005† †8:30 AM† †STATE CAPITOL BUILDING

 

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

††††††††††††††††††††††††††††††††††††††††††††††† Senator Gary George

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

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

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

 

Witnesses Present:††††††††††††††† Dennis Mulvihill Washington County

††††††††††††††††††††††††††††††††††††††††††††††† Tom Linhares, Multnomah County Tax Supervising and

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Conservation Commission

††††††††††††††††††††††††††††††††††††††††††††††† Marge Kafoury, City of Portland

††††††††††††††††††††††††††††††††††††††††††††††† Gerald Kubiak, Washington County public affairs staff

††††††††††††††††††††††††††††††††††††††††††††††† Ross Schultz, City of Sherwood

 

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

††††††††††††††††††††††††††††††††††††††††††††††† Mary Ayala, Economist

††††††††††††††††††††††††††††††††††††††††††††††† Lizbeth Martin-Mahar, Economist

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

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

 

 

TAPE 67, SIDE A

005

Chair Deckert

Calls meeting to order at 8:40 a.m. Opens work session on SB 32, the companion bill to the compliance and amnesty bill that allows the Dept. of Revenue to waive tax penalties.

 

WORK SESSION, SB 32

010

Sen. George

MOTION: MOVES SB 32 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

012

Chair Deckert

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS.

VOTE: 4-0-1

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

MEMBERS EXCUSED: METSGER

 

WORK SESSION, SB 840

026

Mazen Malik

Provides overview of SB 840. Allows wine manufacturers who did not owe privilege tax the past year and donít expect to owe one for the coming to year to file annual reports instead of monthly.

 

043

Malik

Explains SB 840-1 amendments (EXHIBIT 1). Changes fiscal year to calendar year.

 

068

Vice Chair C. Starr

MOTION: MOVES ADOPTION OF 840-1.

 

070

Chair Deckert

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS

VOTE: 5-0-0

MEMBERS VOTING AYE: GEORGE, METSGER, PROZANSKI, C. STARR, CHAIR DECKERT

 

074

Vice Chair C. Starr

MOTION: MOVES SB 840 AS AMENDED TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION

 

076

Chair Deckert

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS

VOTE: 5-0-0

 

PUBLIC HEARING, SB 899

080

Mary Ayala

Gives overview of SB 899. See Staff Measure Summary (EXHIBIT 2). Expands from 500,000 to 600,000 the population level above which a county must create a Tax Supervising and Conservation Commission (TSCC) if it does not have a county clerk. Gives background.

 

099

Chair Deckert

Asks why it is necessary to have a commission.

 

108

Dennis Mulvihill

Responds, because it is the law. Testifies in favor of SB 899. See written testimony: Request for Support, a letter from Tom Brian, chairman of Washington County Board of Commissioners (EXHIBIT 3), amendments (EXHIBIT 4) and letters from various jurisdictions in support of amended bill (EXHIBITS 5, 6 and 7).

 

125

Sen. Prozanski

Asks for clarification in regard to counties that already have the requirement. Will they be allowed reconsideration?

 

132

Mulvihill

Multnomah County would be required to have a supervising commission. Any county that reaches 500,000 after July 1, 2005 would not be required to have one unless it wanted one.

 

142

Sen. Prozanski

Asks why set up a double standard?

 

149

Mulvihill

Multnomah County has not yet decided to change the bill, although Washington County would welcome it. SB 899 as written corrects an oversight in Oregonís budget law.

 

173

Mulvihill

Gives history of Multnomah Countyís TSCC. Commission was created 86 years ago. Contends the law is ďarchaic and contrary to the publicís expectations of efficient government.Ē

 

205

Mulvihill

Concludes, thereís no problem, and it seems arbitrary to create this commission just because a jurisdiction reaches 500,000 people.

 

 

 

214

Chair Deckert

Agrees with Sen. Prozanski. Would move this amendment, but is curious why Multnomah County needs this commission. Would entertain an amendment to undo the whole program.

 

230

Tom Linhares

Testifies in favor of bill. Explains function of the Multnomah County Tax Supervising and Conservation Commission and the reasoning behind its creation in 1919. Thereís a lot of interconnectedness in budgetary issues. TSCC reviews budgets of the 37 taxing districts and if levies are in excess of the law, it orders them to reduce it. They hold public hearings on proposed taxing levies.

 

275

Linhares

TSCC acts as the eyes of the citizens in tax levies. Commission has 5 volunteer positions and 3 staff people including himself, the director. The law says the county has to fund the commission up to a maximum of $280,000.

 

311

Sen. Metsger

Asks what is TSCCís budget.

 

315

Linhares

Anticipates, TSCC will spend $250,000 this year.

 

319

Sen. Metsger

Asks Mr. Mulvihill how Washington County meets its responsibility to its citizens in relation to its taxing districts.

 

332

Mulvihill

Explains, Washington County follows Oregon budget law and has an auditor and a citizensí budget committee.

 

360

Sen. Metsger

Asks questions concerning whether the two county commissions duplicate each other.

 

381

Linhares

Responds, Washington County auditor audits Washington and Multnomah countiesí functions. TSCC looks at all taxing districts.

 

415

Marge Kafoury

City of Portland has an elected auditor. His budget is about $1 million per year. Can get the exact figure.

 

444

Sen. Prozanski

Asks, how many taxing districts are in Washington County.

 

451

Gerald Kubiak

Responds, there are 25-30 taxing districts in Washington County.

 

474

Sen. Prozanski

It appears this is backwards. Commissions should be in place for smaller counties, not the larger ones. Does not buy the argument that thereís more need for oversight in a larger community. Suggests giving Multnomah County the option of rethinking whether it needs this overlay. Is not comfortable setting up a dual system.

 

TAPE 68, SIDE A

033

Sen. George

Refers to City of Tigard letter (EXHIBIT 6) from Mayor Craig E. Dirksen, paragraph 5. Are the commissionís meetings open to the public?

 

044

Linhares

Responds, they are all open to the public.

 

054

Vice Chair. C. Starr

Does not favor setting up a dual standard. Taxing districts are an open process and their work is audited. Multnomah County needs to decide if it wants to continue this process and free up other counties to do likewise.

 

065

Chair Deckert

Concurs with Vice Chair Starr. Requests an amendment to undo the entire state law. Would like to talk to someone from Multnomah County whether there is a need for this commission with all the existing auditing staff.

 

079

Sen. George

Would like to eliminate a governor appointee.

 

089

Linhares

The reason for gubernatorial appointees is independence.

 

103

Chair Deckert

Senses committee is leaning toward getting rid of the law altogether.

 

115

Kafoury

Makes correction to earlier response. City of Portland has a $7.5 million budget and 66 auditors.

 

125

Ross Schultz

Testifies in support of SB 899. Favors disbanding TSCC requirement. During several years of attending TSCC public meetings not one citizen ever attended. The TSCC funded at $280,000 will review over 150 funds, try to understand them and help those municipalities, all in a two-month period. Staff doesnít need another set of rules. TSCC does not add value to the local citizens.

 

180

Schultz

Concludes, the TSCC law was written in 1919, and the technology has changed.

195

Chair Deckert

Expresses support of SB 899. Asks for an amendment to disband the TSCC. Closes public hearing at 8:23 a.m.

 

 

 

Tape Log Submitted by,

 

 

 

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

 

Exhibit Summary:

1.      SB 840, Proposed -1 amendments, 3/9/05, Malik, 1 pp.

2.      SB 899, Staff Measure Summary, 3/15/05, Ayala, 1 pp.

3.      SB 899, letter of testimony from Tom Brian, Washington County, RE: Request for Support, 3/15/05, Mulvihill, 2 pp.

4.      SB 899, Washington County Amendments Senate Bill 899, 3/15/05, Mulvihill, 1 pp.

5.      SB 899, letter of testimony from BJ Smith, Clackamas County, RE: Request for Support, 3/15/05, 2 pp.

6.      SB 899, letter of testimony from Craig E. Dirksen, City of Tigard, RE: Request for Support, 1 pp.

7.      SB 899, letter of testimony from Tom Hughes, City of Hillsboro, 1 pp.