HOUSE SPECIAL SESSION COMMITTEE ON BUDGET RESTORATION

5^th Special Session

September 10, 2002 Hearing Room 343

9:00 a.m. Tapes 20 - 23

MEMBERS PRESENT: Rep. Ben Westlund, Chair Westlund

Rep. Richard Devlin

Rep. Alan Bates

Rep. Cedric Hayden

Rep. Betsy Johnson

Rep. Susan Morgan

Rep. Lane Shetterly

STAFF PRESENT: Jennifer Simmons, Committee Assistant

MEASURE/ISSUES HEARD: Introduction of Committee Measures

HB 4073 Public Hearing and Work Session

HB 4074 Public Hearing and Work Session

HB 4076 Public Hearing and Work Session

HB 4078 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 20, A
PUBLIC HEARING
001	Chair Westlund	Calls the meeting to order at 9:24 a.m. Opens a work session for the purpose of introducing committee measures.
BILL INTRODUCTION WORK SESSION
006	Paul Warner	Legislative Revenue Officer. Provides a brief explanation of LC 19-1 (EXHIBIT A), relating to Master Settlement Agreement (MSA) payments.
049	Kate Richardson	Oregon State Treasury. Provides additional background information (EXHIBIT B) regarding LC 19-1. States that the information in the exhibit assumes $200 million in proceeds and a five-year maturity.
059	Chuck Smith	Oregon State Treasury. Says that the cost of funds would be an interest rate of 3.87 percent, and the transaction would produce $200 million in net proceeds. Reviews the expected issue and maturity dates. Mentions that the measure includes a reserve fund that could be used to make the payment in the final year
089	Rep. Shetterly	Asks whether the calculation of the cost of funds includes more than just the cost of issuance.
092	Smith	Clarifies that the calculation does take into account the $263 million being borrowed.
095	Rep. Shetterly	Wonders what the effective interest rate is on the amount being borrowed.
099	Smith	Answers that the calculations include the total cost only.
107	Richardson	Adds that the average remaining revenues is anticipating the debt service related to Oregon Health and Sciences University (OHSU).
110	Rep Johnson	Asks whether that amount is the $17 million referenced in the exhibit.
112	Richardson	Replies affirmatively.
116	Smith	Confirms that the original calculation was increased to $17 million to ensure that enough money is available to pay for the debt service.
123	Rep. Morgan	Asks whether there is any way to determine the costs if the original proceeds were to be increased by $50 million.
125	Smith	Replies that the effect would be to extend the calculations by a year, with corresponding costs.
136	Rep. Bates	Inquires whether it would be possible to pay off the bonds in a shorter amount of time if the amount borrowed was substantially reduced.
144	Smith	Concedes that it is easier to calculate upward, and says that there must be access to cash flow, which will not be available until the next biennium.
150	Rep. Bates	Concludes that it would be prudent to pay off the bonds over five years, regardless of the amount borrowed.
152	Smith	Acknowledges that the calculations utilize the optimal format for short-term financing.
156	Rep. Shetterly	Asks how many states have done similar MSA settlement arrangements and the maximum amount of proceeds any state has sought.
161	Smith	Responds that nine states have made such arrangements, with the largest being Wisconsin’s $1.6 billion.
175	Rep. Shetterly	Wonders whether there is a point past which the debt management does not work.
191	Smith	Replies that most of the tobacco transactions have been relatively large in size, to maximize market reception, meaning that scaling down too far results in proportionally higher interest rates. Submits that an amount of $35 million would be too low, while $250 million is reasonable.
197	Rep. Bates	Asks if it would be reasonable to remove $100 million from the issuance.
205	Rep. Morgan	MOTION: Moves LC 19-1 BE INTRODUCED as a committee bill.
209		VOTE: 7-0
	Chair Westlund	Hearing no objection, declares the motion CARRIED.
217	Paul Warner	Provides a brief explanation of LC 26 (EXHIBIT C), which proposes a temporary increase in personal income tax rates. Indicates that the draft has no provision for a ballot referral.
235	Rep. Devlin	Indicates that his vote to introduce the measure does not represent either support or opposition to the measure once it returns to the committee for consideration.
247	Paul Warner	Notes that the measure deals with the issue of insufficient withholding.
252	Rep. Bates	MOTION: Moves LC 26 BE INTRODUCED as a committee bill.
256	Chair Westlund	Reiterates that support for the motion does not imply that members will support the measure on future motions.
258		VOTE: 6-1 AYE: 6 - Bates, Devlin, Johnson, Morgan, Shetterly, Westlund NAY: 1 - Hayden
	Chair Westlund	The motion CARRIES.
263	Chair Westlund	Declares the meeting to be in recess.
------------------------------------------------------------RECESS------------------------------------------------------------
267	Chair Westlund	Reconvenes the meeting at 12:29 p.m. Opens a public hearing on HB 4073.
HB 4073 PUBLIC HEARING
288	Chair Westlund	Closes the public hearing on HB 4073 and opens a work session on HB 4073.
WORK SESSION – HB 4073
306	Rep. Shetterly	Notes that the measure still retains the blanks and asks if the committee is prepared to amend the measure conceptually to fill them.
320	Dick Yates	Legislative Revenue Office. Provides a brief overview of HB 4073, which provides a structure for a public corporation for MSA assets and authorizes the sale of the payments to the corporation, which in turn will borrow an as-yet undetermined amount to be paid into the State School Fund. Indicates that the measure would require approximately 77 percent of MSA funds. Indicates that the measure specifies the method for appointing members to the corporation.
354	Rep. Hayden	Requests clarification as to where the measure specifies that the cash flow reverts to the state after the bonds are repaid.
363	Yates	Replies that the reference is on page 3, line 45.
376	Rep. Hayden	Wonders why the language is permissive.
380	Yates	Answers that there are other reasons that could cause the dissolution of the corporation.
TAPE 21, A
008	Rep. Hayden	Asks whether the cash flow could be used for other purposes once the bond obligation is taken care of.
013	Yates	Replies affirmatively.
026	Rep. Hayden	Wonders whether the MSA corporation could be made into a standing corporation and receive funds for other purposes at a later time.
030	Yates	Responds that HB 4073 specifies that the funds are to be designate to the State School Fund.
034	Rep. Hayden	Requests confirmation that dedicating the funds to another entity in the future would require a statutory change.
038	Yates	Explains that there are other issues to take into account, including maintaining the tax-exempt status of the bonds.
046	Harrison Conley	Legislative Counsel Office. Comments on maintaining the tax-exempt status of the bonds and says that the measure offers only a portion of the payments of the MSA to pay for the bonds and for operating costs of the corporation.
065	Rep. Shetterly	Asks whether the corporation could be classified as a trustee of the funds.
075	Conley	Replies that there may soon be an amendment limiting the corporation to the rights and duties contained in the measure.
080	Kate Richardson	Oregon State Treasury. Indicates that amendments are being drafted that clarify what the corporation is and is not authorized to do.
088	Chair Westlund	Asks when the amendments will be ready.
089	Conley	Answers that the amendments will be drafted within a matter of hours.
092	Richardson	Emphasizes the complexity of the language.
115	Rep. Bates	Says that there is a possibility that an amendment will be brought forth for a bonding amount $100 million less than the current amount and asks that preparations be made for such an amendment.
122	Richardson	Comments that the maturity length is tied to the specific amount and says that some cushion may be necessary due to the volatility of the MSA payments.
135	Rep. Morgan	Requests confirmation that the amount and payback schedule is necessary to prepare the amendments.
139	Richardson	Clarifies that it is necessary to know the net proceed in order to set the maturity date to a time that will be most advantageous for the state.
143	Conley	Explains the process for changing the maturity date.
149	Chair Westlund	Clarifies that the amount is assumed to be $250 million.
161	Rep. Johnson	Reiterates that additional amendments may make a request for $100 million less.
178	Chair Westlund	Closes the work session on HB 4073 and opens a public hearing on HB 4074.
HB 4074 PUBLIC HEARING
185	Chair Westlund	Closes the public hearing and opens a work session on HB 4074.
HB 4074 WORK SESSION
190	Dallas Weyand	Legislative Fiscal Office. Reviews the provisions of HB 4074 and the - 2 amendments (EXHIBIT D).
249	Rep. Johnson	Requests confirmation that the measure makes permanent the cuts to county fairs.
252	Weyand	Replies affirmatively.
257	Chair Westlund	Echoes the concerns of Rep. Johnson and urges committees not to focus on the permanence of reductions within the package, as the 2003 Legislature will have the opportunity to revisit the adjustments.
273	Rep. Johnson	Responds that many sacrifices have been made in many areas and subscribes that the cuts will not necessarily be permanent.
280	Chair Westlund	Reminds committee members that the budget team was under a great deal of pressure to produce a budget package in a short amount of time.
292	Weyand	Notes that the measure, if passed, addresses only the budget rollup.
300	Chair Westlund	Concurs, reiterating that the decisions in this regard were made in a very short time frame.
330	Rep. Shetterly	MOTION: Moves to ADOPT HB 4074-2 amendments dated 9/10/02.
334		VOTE: 7-0
	Rep. Morgan	Hearing no objection, declares the motion CARRIED.
366	Rep. Shetterly	MOTION: Moves HB 4074 to the floor with a DO PASS AS AMENDED recommendation.
370		VOTE: 7-0
	Rep. Morgan	Hearing no objection, declares the motion CARRIED. REP. HAYDEN will lead discussion on the floor.
378	Chair Westlund	Closes the work session on HB 4074 and opens a public hearing on HB 4076.
HB 4076 PUBLIC HEARING
386	Chair Westlund	Closes the public hearing on HB 4076 and opens a public hearing on HB 4078.
HB 4078 PUBLIC HEARING
TAPE 20, B
002	Rep. Johnson	Asks whether amendments drafted for this bill will be considered by the committee and whether the chair would be willing to recess until the amendments are ready.
005	Chair Westlund	Agrees to entertain amendments, provided that they are available in a timely manner.
012	Rep. Johnson	Asserts that the measure and any amendments should be given a timely debate on the subject.
018	Ozzie Rose	Confederation of School Administrators (COSA). Inquires about the total revenue raised by HB 4078.
023	Paul Warner	Legislative Revenue Officer. States that HB 4078 raises $395 million in the 2001-03 biennium, as well as language directed to under-withholding and surtaxes on corporate and excise taxes that are not part of the $395 million, meaning that the total revenue impact would be approximately $407 million for the 2001-03 biennium.
043	Rep. Shetterly	Asks whether there are committee amendments to the measure.
050	Warner	Replies that no amendments have been submitted for the measure. Notes that some of the issues that were to be amended into HB 4076 are included in HB 4078. Adds that the other amendments prepared for HB 4076 could be conceptually amended into HB 4078.
071	Rep. Morgan	Concludes that there are three issues for which there are potential amendments: Two years or three years Revenue neutrality for personal income tax Corporate income tax adjustment
080	Warner	Mentions that the revenue impact is comparable for the three options.
083	Rose	Testifies in support of HB 4078. Requests that the measure remain a three-year surcharge. Expresses hope that the measure will not be referred to voters.
130	Chair Westlund	Discusses potential changes that could be made to HB 4078 if and when it moves to the Senate.
150	Rep. Shetterly	Agrees with the three-year concept and asks whether Mr. Rose would prefer a February or March 2003 election to a November or December 2002 election.
155	Rose	Responds that he would prefer that the legislature pass the measure without a referral to voters.
164	Rep. Shetterly	Counters that the political reality is that it will be referred to voters, either by the legislature or by referendum.
179	Rose	Explains that the measure should include a stipulation that if it is brought to the ballot by referral the election will take place in February or March 2003.
185	Chair Westlund	Remarks that Legislative Counsel has determined that February 11^th is the earliest the measure could appear on the ballot.
195	Rep. Bates	Recalls a discussion of significant conceptual amendments to the measure and asks whether those amendments will be made prior to the measure being moved to the floor.
204	Rep. Morgan	Submits that there were amendments that could be included in the measure should the committee decide to do so.
208	Rep. Bates	Mentions that alternative amendments could be included at that time.
212	Chair Westlund	Asserts it is time to get things done in the Senate.
216	Rep. Bates	Expresses a lack of confidence in the Senate’s willingness to entertain the amendments in question.
223	Rep. Deborah Kafoury	House Democratic Leader. Testifies in support of HB 4078 and requests that the measure be left in its current form. Asserts that a straight up vote is the only responsible action.
245	Rep. Hayden	Asks whether Rep. Kafoury would support a December election.
248	Rep. Kafoury	Reiterates that a straight up vote is preferable to a December election. Acknowledges that an earlier election is no longer viable.
259	Rep Shetterly	Wonders why Rep. Kafoury prefers a February election to a December election.
266	Rep. Kafoury	Comments that neither is substantially better than the other. Asserts that the legislature is charged with fixing the budget situation and says that it should take proactive action to do so. Comments that voters are less likely to support the measure in December than in February.
279	Rep. Devlin	Asserts that the only thing lacking in HB 4078 is a backup date in the event that it is referred to voters.
286	Rep. Kafoury	Indicates that she has had drafted amendments to HB 4075 that would address the concerns regarding a backup date.
295	Chair Westlund	Acknowledges the amendments could be made conceptually.
298	Kafoury	Reiterates her desire to pass the measure without amendments.
302	Rep. Shetterly	Takes exception with Rep. Kafoury’s assertion that December is not a good time to propose a tax increase and says there is no such thing as a good time to ask voters to increase taxes. Asserts it is preferable to have the question settled before March 2003.
331	Rep. Kafoury	Restates her belief that the measure stands a better chance if it is passed without a referral. Assures that the Democratic caucus did not make this decision lightly. Requests confirmation that the committee will vote only on hard-copy amendments.
355	Chair Westlund	Confirms that the process remains the same.
364	Rep. Kafoury	Requests an opportunity to testify on the other measures before the committee.
370	Rep. Hayden	Requests confirmation on the magnitude of the entire tax measure that is to be referred to voters.
375	Warner	Answers that the total to be raised by the measure is $934 million over three biennia.
TAPE 21, B
004	Rep. Bates	Asks whether the measure will be going out in its current form.
007	Chair Westlund	Asserts that it will likely go out with a request for either $395 million or $407 million.
014	Rep. Kafoury	Testifies in support of HB 4073, so long as the total borrowing does not exceed $100 million, adding that her vote on that measure is part of a compromise to complete a package. Testifies that HB 4075 should be amended to set up a special election in February in the event of a referendum on HB 4078. Expresses opposition to HB 4076 and expresses preference for HB 4078. Says that with regard to HB 5100 it is not necessary to have a cut level above $50 million.
040	Chair Westlund	States that there is a willingness on the part of the Republicans to come to a compromise solution as well. Remarks that budget reductions cannot be voted on until the revenue measures are resolved.
050	Rep. Shetterly	Clarifies that there is a difference of $150 million in borrowing with regard to HB 4073.
063	Governor John Kitzhaber	Testifies in opposition to the budget reconciliation package under consideration. Expresses concern about borrowing money against future revenue streams to pay for current budget shortfalls, adding that there is over $800 million in one-time revenues already in the current budget. Mentions the two tax proposals under consideration and endorses a straight-up vote on the tax proposal, as opposed to a referral, which would be doomed to failure without a voter’s pamphlet explanatory statement. Downplays the assertion that the measure will be put on the ballot by referendum, adding that the same was said about the Measure 88 deferment. Warns that the other options available are hard choices. Warns of the possibility that decisions made now could worsen the budget situation next session.
135	Chair Westlund	Disagrees respectfully with the Governor’s opposition to the bonding piece of the proposal. Asserts that the real solution to the problem will be developed during the 2003 Legislative Session. Argues that cuts, borrowing, and revenues will all be part of the final solution. Maintains that whatever solution is developed now can only make the situation for next session a little better or a little worse, but cannot solve it altogether.
169	Governor Kitzhaber	Responds that the legislature has the opportunity to increase the likelihood of success for next session’s efforts.
180	Chair Westlund	Recalls negotiations that have occurred to resolve the problem.
193	Rep. Shetterly	Expresses agreement that borrowing is not necessarily good fiscal policy but says the situation is dire enough to warrant it. Asserts that the borrowing under consideration is preferable to the long-term cost of restoring programs later. Concludes that the issue of a ballot referral is one of tactics, rather than strategy, and says that the opposition must be taken into account.
242	Governor Kitzhaber	Argues that if the legislature believes that the revenue is necessary then it should not make it easier for opponents to defeat it by placing it on the ballot for them. Says that the opposition should be made to work to defeat the measure.
252	Rep. Devlin	Comments that borrowing for present needs is a drastic step to take, but says the current situation warrants it.
275	Governor Kitzhaber	Responds that the borrowing may be beneficial today, but given the budget circumstances may be threatening the long-term health of the very programs that the legislature seeks to protect.
296	Rep. Shetterly	Asks how the different election dates being considered would affect the cuts to be made by the executive branch, should the tax proposal fail at the ballot box.
301	Governor Kitzhaber	Responds that the effect of the cuts becomes more magnified the later into the biennium they are made. Comments that the primary factors that will weigh on opponents will be the potential effects of the cuts and the likelihood of success at the polls.
312	Rep. Bates	Expresses thanks to the Governor for taking on this challenge. Says that most forecasts do not foresee economic success similar to the past several years. Asks what level the state should consider for bonding.
333	Governor Kitzhaber	Responds that paying off the borrowing sooner rather than later is preferable. Adds that deeper bonding ought to be accompanied either by more revenue or deeper cuts.
361	Rep. Bill Witt	House District 28. Submits the -8 amendments (EXHIBIT E) to HB 4076 and requests that those amendments be applied to HB 4078. Provides a brief overview of the amendments, which would increase the 9-percent personal income tax bracket to 9.5 percent for three years, while leaving the other two brackets as they are. Says the proposal would bring in $303 million this biennium. Asserts that a tax increase of over $400 million stands less of a chance for success than does his proposal.
TAPE 22, A
034	Paul Warner	Legislative Revenue Officer. Indicates that he does not have the specific numbers available.
038	Rep. Witt	Indicates that the -8 amendments would raise $303 million during the remainder of the 2001-03 biennium and $382 million for the 2003-05 biennium. Asserts that those funds, combined with responsible bonding and targeted spending cuts, would close the budget gap.
047	Chair Westlund	Requests that Rep. Witt provide hard copies of the numbers to the committee as soon as possible. States his intention to move one version or another of the bill to the floor by the end of the day.
059	Sen. Rick Metsger	Senate District 26. Testifies regarding to his concerns related to HB 4078. Asserts that the proposal as written imposes a significant tax hardship on those currently at the federal poverty level. Opines that the amendments provided by Rep. Witt appear to address his concerns in this regard. Proposes imposing a surcharge only on people with incomes in excess of $20,000/year.
089	Rep. Westlund	Asks whether Sen. Metsger would support a proposal that avoids taxing people at low income levels.
092	Sen. Metsger	Answers that such an amendment would do much to gain support among the Democratic caucus.
097	Rep. Bates	Mentions there has been a discussion of setting the floor at $50,000 as opposed to $20,000, and imposing a higher burden on the upper income brackets, by increasing the top rate to 9.75. Asks whether Sen. Metsger would support such a proposal.
102	Sen. Metsger	Concludes that both concepts are similar, in that they do not place the burden upon those who have been hit hardest by the recession.
112	Bob Cantine	Association of Oregon Counties (AOC). Indicates that AOC has sought a balanced package for closing the budget gap and says that this process has done so. Expresses a concern that the final solution should not impose a disproportionate impact on any one part of the system.
152	Chair Westlund	Closes the public hearing and opens a work session on HB 4078.
HB 4078 WORK SESSION
155	Warner	Reviews the measure’s provisions and the HB 4076 -8 amendments discussed by Rep. Witt.
177	Chair Westlund	Comments regarding the procedure for discussing HB 4078 concurrently with HB 4076. Opines that Rep. Witt was correct to question why the proposal raises more taxes than are needed to fill the budget hole. Solicits opinions from the committee on that issue.
200	Rep. Hayden	Asserts that the legislature should deal solely with the specific problem of the current budget deficit in this biennium. Asserts that there is no way to know what situation the next legislature will face.
220	Rep. Devlin	Asks that the remaining members of the committee be present before taking action on the measure.
224	Chair Westlund	Declares the meeting to be in recess.
------------------------------------------------------------RECESS------------------------------------------------------------
230	Chair Westlund	Reconvenes the committee.
244	Rep. Bates	Requests that the committee take action on HB 4075 prior to voting on HB 4078, so as to provide a date-certain for a potential ballot referral or referendum. Asks for testimony from the Secretary of State Elections Division on the issue as well.
278	Chair Westlund	Closes the work session on HB 4078 and opens a public hearing on HB 4075.
HB 4075 PUBIC HEARING
295	Chair Westlund	Asks about putting a specific date into a tax referral.
329	Adrienne Sexton	Legislative Fiscal Office. States that Legislative Counsel can answer the legal question.
342	Rep. Bates	Restates the question of what date could be selected for the measure as the election date in the event of a successful referendum on the measure.
357	John Lindback	Director, Elections Division, Secretary of State’s Office. Requests clarification as to whether the date will be for a specific referral or for a referendum.
362	Rep. Bates	Replies that he is interested in the latter.
379	Rep. Shetterly	Adds the additional issue of whether it is possible to refer the measure to the ballot in December 2002.
381	Lindback	Indicates that February 11^th, 2003 is the soonest that a referendum could take place. States that there are logistical problems for a December election, taking place so soon the November 5^th General Election, but says there are no legal impediments to doing so.
TAPE 23, A
012	Rep. Devlin	Asks when the effective date would be for a February 11^th election date.
015	Ted Reutlinger	Legislative Counsel Office. Answers that the effective date would be thirty days following the election, at which time the results would be officially certified. Adds that this is the case with either the referral or referendum scenarios.
021	Rep. Devlin	Concludes that there would be nothing prohibiting a state agency from beginning the process of amending forms and other preparations based upon the election results.
025	Reutlinger	Concurs, absent some statute specifically prohibiting such action.
031	Rep. Shetterly	Asks whether the Department of Revenue would prepare the forms based upon election results.
042	Susan Browning	Department of Revenue. Responds that the department is currently in the process of working on next year’s booklet, but could nevertheless adjust to either a December or February election date.
054	Chair Westlund	Asks how early tax filers would be accommodated in the event of a February 2003 election.
057	Browning	Answers that the current tax rate would be used, with information to taxpayers about the new tax rate. Says the department would also encourage delaying filing until after the election.
069	Rep. Bates	MOTION: Moves to AMEND HB 4075, inserting a requirement that in the event of a successful referendum on the measure the election be held on February 11, 2003.
086	Rep. Hayden	Asks what cash flow problems might be created by encouraging filers not to file for six weeks.
090	Browning	Answers that the majority of revenues are collected through tax withholding, meaning that there would be little effect on the revenue stream.
096		VOTE: 7-0
	Chair Westlund	Hearing no objection, declares the motion CARRIED.
101	Chair Westlund	Closes the work session on HB 4075 and opens a work session on HB 4078.
HB 4078 WORK SESSION
155	Rep. Devlin	MOTION: Moves to AMEND HB 4078, by inserting the -5 amendments (EXHIBIT F) to HB 4076, minus lines 1-4 and other language applying to the 6.93% rate, and such language as necessary to conform them to the measure.
175		VOTE: 7-0
	Chair Westlund	Hearing no objection, declares the motion CARRIED.
201	Rep. Bates	MOTION: Moves HB 4078 to the floor with a DO PASS AS AMENDED recommendation.
230	Rep. Shetterly	Indicates that there are other sections of the amendments and the measure that will need to be changed in order to achieve the desired effect.
254	Chair Westlund	Declares the previous motion withdrawn.
270	Rep. Shetterly	MOTION: Moves to AMEND the HB 4078 by replacing sections 6, 7, 8, and 9 of the measure with lines 6-22 of the -5 amendments to HB 4076.
289		VOTE: 7-0
	Chair Westlund	Hearing no objection, declares the motion CARRIED.
291	Rep. Bates	MOTION: Moves HB 4078 to the floor with a DO PASS AS AMENDED recommendation.
		VOTE: 5-2 AYE: 5 - Bates, Devlin, Johnson, Shetterly, Westlund NAY: 2 - Hayden, Morgan
	Chair Westlund	The motion Carries. REP. BATES will lead discussion on the floor.
304	Rep. Shetterly	States that his vote was a courtesy to move the measure to the floor.
315	Chair Westlund	Closes the work session on HB 4078 and opens a public hearing on HB 4076.
HB 4076 PUBLIC HEARING
324	Chair Westlund	Closes the public hearing and opens a work session on HB 4076.
HB 4076 WORK SESSION
330	Rep. Devlin	Asks whether the corporate tax changes made to HB 4078 are included in HB 4076 in its current form.
334	Warner	Replies that the measure does not contain the updated language.
336	Rep. Devlin	MOTION: Moves to ADOPT lines 6-22 of the HB 4076-5 amendments.
338		VOTE: 7-0
	Chair Westlund	Hearing no objection, declares the motion CARRIED.
382	Warner	Provides an explanation of the -3 amendments (EXHIBIT G) to HB 4076.
390	Rep. Devlin	MOTION: Moves to ADOPT HB 4076-3 amendments dated.
398		VOTE: 7-0
	Chair Westlund	Hearing no objection, declares the motion CARRIED.
403	Rep. Westlund	MOTION: Moves HB 4076 to the floor with a DO PASS AS AMENDED recommendation.
TAPE 22, B
018		VOTE: 4-3 AYE: 4 - Hayden, Morgan, Shetterly, Westlund NAY: 3 - Bates, Devlin, Johnson
	Chair Westlund	The motion Carries. REP. WESTLUND will lead discussion on the floor.
022	Rep. Devlin	Posts notice that his vote may change on the floor.
024	Rep. Johnson	Posts notice that her vote may be different on the floor.
034	Speaker Mark Simmons	Speaker of the House. Outlines the strategy for moving the measures to the floor of the House of Representatives.
065	Chair Westlund	Recesses the committee until the call of the chair.
	(Committee Adjourned by implied consent.)

Submitted By, Reviewed By,

Patrick Brennan, Marjorie Taylor,

Committee Assistant Committee Administrator

EXHIBIT SUMMARY

A – LC 19-1, staff, 18 pp.

B – LC 19-1, budget report, Kate Richardson, 1 p.

C – LC 26, staff, 6 pp.

D – HB 4074, -2 amendments, staff, 2 pp.

E – HB 4078, HB 4076 -8 amendments, Rep. Bill Witt, 3 pp.

F – HB 4076, -5 amendments, staff, 2 pp.

G – HB 4076, -3 amendments, staff, 1 p.