HOUSE SPECIAL SESSION BUDGET COMMITTEE ON PERS

 

June 29, 2002  (Second meeting) Hearing Room D

10:30AM      Tapes 8 - 9

 

MEMBERS PRESENT:            Rep. Tim Knopp, Chair

Rep. Rob Patridge, Vice Chair

                                                Rep. Ralph Brown

Rep. Betsy Close

Rep. Mark Hass

Rep. Elaine Hopson

Rep. Diane Rosenbaum

Rep. Tootie Smith

Rep. Vickie Walker

 

STAFF PRESENT:                  Cara Filsinger, Administrator

Lizbeth Martin-Maher, Legislative Revenue Economist

Ted Reutlinger, Legislative Counsel Senior Deputy

Adrienne Sexton,  Legislative Fiscal Office Legislative Analyst

Jim Stembridge, Administrative Support

 

MEASURE/ISSUES HEARD:            SJR 52                        Public Hearing and Work Session

                                                HB 4063    Public Hearing and Work Session

                                                HB 4064    Public Hearing and Work Session

                                                HB 4065    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 8,  Side A

 

003

Chair Knopp

Opens meeting at 10:30  Opens hearing on SJR 52

 

SJR 52 – PUBLIC HEARING

 

 

Rep. Patti Smith

Discusses technicality that requires resolution.  States that taxing authority of community college will not go into effect if resolution is not adopted by June 30.

 

 

Rep. Walker

Asks about taxation.

 

 

Rep. Smith

Responds.

 

 

Chair Knopp

Closes hearing and opens work session on SJR 52.

 

SJR 52 – WORK SESSION

 

 

 

024

Rep. Rosenbaum

MOTION: Moves SJR 52 to the floor with “be adopted” recommendation.

 

 

 

VOTE:  7 – 0 – 2 

EXCUSED:  Brown, Close  

 

 

Chair Knopp

Declares motion CARRIED.   Rep. P. Smith will lead floor debate.

 

 

Chair Knopp

Closes work session on SJR 52.

 

035

Chair Knopp

Recesses meeting at 10:50 a.m.

 

041

Chair Knopp

Re-convenes meeting at 12:50 p.m.

 

 

 

Opens hearing on HB 4065.

 

 

 

Closes hearing on HB 4065.

 

 

 

Opens hearing on HB 4064.

 

 

 

Re-opens hearing on HB 4065.

 

HB 4064 and HB 4065 – PUBLIC HEARING

 

 

 

 

John Valley

American Cancer Society, states that tax will deter young people from wanting to smoke.  Opposes sunset provision of HB 4064.  For HB 4065, states that it is appropriate to have public vote on cigarette tax increase (EXHIBIT A).

 

078

Rep. Close

Asks about influence of Internet on cigarette sales.

 

 

Valley

States that statistics show smoking rates going down.

 

 

Rep. Close

Says statistics may not include Internet sales, so how do you know statistics are accurate.

 

 

Valley

Responds, there is information that shows the proportion of cigarette sales over the Internet are minimal, less than one percent.

 

112

Rep. Close

States that statistics shows cigarette use in Oregon basically flat.  (EXHIBIT B)

 

 

Rep. Brown

Questions Internet sales.

 

 

Valley

Provides further explanation, based on research on Jenkins Act.

 

137

Rep. Knopp

Closes public hearings on HB 4064 and 4065.

Opens work session on HB 4065.

 

HB 4065 – WORK SESSION

 

 

 

 

Rep. Rosenbaum

Asks for clarification on amount of cigarette taxes being referred.

 

 

Lizbeth Martin-Maher

Legislative Revenue Office.  States that enrolled version of HB 4051, $.60 per pack.

 

 

Rep. Rosenbaum

Asks for clarification.

 

175

Martin-Maher

Responds that currently, HB 4051 provides for permanent tax.  Describes differences between House and Senate versions.

 

 

Rep. Rosenbaum

Asks clarification on voting dates.

 

 

Ted Reutlinger

Legislative Counsel, refers to HB 4059.

 

 

Rep. Hopson

Asks cost of special election.

 

 

Reutlinger

Responds $1.5 million.

 

226

Rep. Walker

Asks about referral process.

 

 

Reutlinger

Answers, if citizens, by petition, seek referral, special election would be set up in January 2003.  If Legislature does nothing, referral would be voted on at general election in 2004.

 

 

Rep. Walker

Clarifies that if voters want to take as referendum, the sponsors could pay the cost, saving state budget.

 

 

Reutlinger

Yes, could save $1.5 million by not holding special election.

 

 

Rep. Walker

Asks what cost would be for second measure at same special election.

 

 

Reutlinger

Answers, cost would go up slightly, but not a lot.

 

290

Adrienne Sexton

Legislative Fiscal Office clarifies costs of special election.

 

 

Rep. Walker

Asks if Legislature refers measure, does it delay applicable date.

 

 

Martin-Maher

Answers yes, applicable date would be delayed.

 

330

Rep. Hopson

Asks question about impact of special election dates on smaller election offices around the state.

 

 

Sexton

Responds.

 

 

Rep. Hopson

Additional question on election dates.

 

 

Sexton

Responds.

 

360

Rep. Rosenbaum

Clarifies, bill calls for election only if law is referred by citizens.

 

 

Sexton

Answers, yes.

 

 

Rep. Rosenbaum

Asks how many signatures it takes.

 

 

Reutlinger

Answers, 44,000 or so, significantly lower than to initiate a law.

 

392

Chair Knopp

Recesses meeting at 1:10 p.m.

 

 

Chair Knopp

Re-convenes meeting at 2:50 p.m.

 

 

Rep. Patridge

MOTION: Move HB 4065 to floor with do pass recommendation.

 

 

Rep. Walker

States that Legislature should do its job not refer.  States that added cost of another referral is not that much, so not that concerned.

 

TAPE 9, Side A

 

 

 

 

 

VOTE:   6 – 3 (NO - Reps. Hass, Rosenbaum, and Walker)

 

 

Chair Knopp

Declares motion CARRIED.  Rep. Patridge will lead floor debate.

 

 

Chair Knopp

Closes work session on HB 4065; opens work session on HB 4064.

 

HB 4064 – WORK SESSION

 

 

 

 

Rep. Close

Asks about length of sunset.

 

 

Chair Knopp

Explains that the -1 amendment adjusts the sunset date.

 

 

Rep. Close

MOTION Moves adoption of  –1 amendments (dated June 29, 2002).

VOTE  9 – 0  – 0

 

 

Chair Knopp

Hearing no objection, declares motion CARRIED.

 

 

Rep. Close

MOTION: Moves HB 4064 as amended  to floor with do pass recommendation.

 

 

Rep. Walker

Expresses opposition, citing Tobacco Free Coalition document (EXHIBIT A).  Cites concern about bonding of revenue stream from cigarette tax.

 

040

Rep. Patridge

States that there is sufficient time and revenue to back the bonds.

 

 

Kate Richardson

State Treasurer’s Office.  Discusses time periods for bonding and tax.

 

 

Rep.  Walker

Asks about cost of bond issue.

 

 

Richardson

Tax backs bond, enables low rate, a little over four percent.

 

 

Rep.  Walker

Asks if these bonds take Oregon near its bonding limit?

 

 

Richardson

Answers no.

 

 

Rep. Smith

Asks if the bill contains specific language on the bond sale.

 

 

Richardson

States no, that language is in HB 4056.

 

 

Rep. Rosenbaum

Points out that changes are being made to bill that narrowly passed Senate.

 

 

 

VOTE 5 – 4  (NO - Hass, Hopson, Rosenbaum, Walker)

 

124

Chair Knopp

Declares Motion CARRIED.  Rep. Patridge will lead floor debate

 

Chair Knopp

Recesses meeting at 3:00 pm.

135

Chair Knopp

Re-convenes meeting at 3:10 pm.

Opens public hearing on HB 4063.

 

HB 4063 – PUBLIC HEARING

 

 

 

 

John Marshall

Oregon School Boards Association.  Expresses support.

 

 

Chair Knopp

Closes public hearing on HB 4063.  Opens work session on HB 4063.

 

HB 4063 – WORK SESSION

 

 

 

 

Rep. Patridge

MOTION: Moves adoption of –4 amendments (dated June 29, 2002).

VOTE:  9 – 0 – 0 

 

153

Chair Knopp

Hearing no objection, declares motion CARRIED.

 

 

Rep. Patridge

MOTION: Moves adoption of –5 amendments (dated June 29, 2002).

VOTE:  9 - 0

 

 

Chair Knopp

Hearing no objection, declares motion CARRIED.

 

 

Rep. Patridge

MOTION: Moves adoption of –6 amendments (dated June 29, 2002).

VOTE:  9 - 0

 

 

Adrienne Sexton

Legislative Fiscal staff.  Explains $20,000 appropriation to Legislative Fiscal Office for task force.

 

 

Chair Knopp

Hearing no objection, declares motion CARRIED.

 

 

Rep. Patridge

MOTION: Moves HB 4063 as amended to floor with a do pass recommendation.

 

200

Rep. Walker

Expresses support for bill.

 

 

Rep. Hass

States that this bill will provide foundation for regular-session bills.

 

 

Rep. Close

States support, but expresses caution on concept of long-term stable funding.

 

 

Rep. Brown

States that the bill is a way to address solving the problem, rather than budget-cutting.

 

253

Chair Knopp

Comments on tax reform efforts from the past.  Asks for role-call.

 

 

 

VOTE:  9 – 0 – 0  

 

 

 

Declares motion CARRIED.  Representatives V. Walker and Schrader will lead floor debate.

 

310

Chair Knopp

Adjourns meeting at 3:20 p.m.

 

 


 

Submitted By,                        Reviewed By,

 

 

Jim Stembridge                        Cara Filsinger,

Administrative Support                        Administrator

 

EXHIBIT SUMMARY

 

A – “Myths and Realities of Tobacco Industry Testimony”, submitted by John Valley, 5 pages

B – Center for Disease Control statistics, submitted by Rep. Close, 1 page