PUBLIC HEARING HB 2283, HB 2043

 

TAPE 57 A-B, 58, A

 

HOUSE REVENUE COMMITTEE

FEBRUARY 25, 2003   8:30 AM   STATE CAPITOL BUILDING

 

Members Present:                        Representative Lane Shetterly, Chair

                                                Representative Wayne Scott, Vice Chair

                                                Representative Joanne Verger, Vice Chair

                                                Representative Phil Barnhart

                                                Representative Vicki Berger

                                                Representative Pat Farr

                                                Representative Mark Hass

                                                Representative Elaine Hopson

                                                Representative Max Williams                                               

 

 

Witness Present:                        Rep. Susan Morgan, House District 2

                                                Roger Martin, Oregon Golf Association

                                                   Oregon Transit Association

                                                Sen. Charlie Ringo, District 17

                                                Chris Hagerbaumer, Oregon Environmental Council

                                                Rep. Jackie Dingfelder, District 45

                                                Scott Bricker, Bicycle Transportation Alliance

                                                Lyn Lundquist, Oregon Business Association

                                                Rivka Gevurtz, Northwest Jewish Environmental Project

                                                Mitchell Rofsky, Better World Club

                                                Jenny Holmes, Ecumenical Ministries of Oregon

                                                   Environmental Ministries Committee,

                                                   Public Policy Committee,

                                                   Oregon Interfaith Global Warming Campaign

 

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 57, SIDE A

006

Chair Shetterly

Calls meeting to order at 8:36 a.m.

 

OPENED PUBLIC HEARING ON HB 2283

 

015

Mazen Malik

Presented background and history of HB 2283, (Exhibit 1), including revenue impact (Exhibit 2).

 

041

Rep. Susan Morgan

Spoke in favor and gave history of HB 2283, extends the tax exemption granted in the last session to include buildings on the golf course.

 

074

Rep. Barnhart

Are you aware of other golf courses making use of this new law?

 

077

Rep. Morgan

Purposely defined bill narrowly and is not aware of any other golf course that falls within its scope.

 

080

 

 

Chairman Shetterly

 

 

Clarifies Prineville is potentially a golf course that could benefit from the exemption, but isn’t.

 

082

Roger Martin

Spoke in support of HB 2283, suggested future legislation not be so narrowly defined.

 

115

Chair Shetterly

Closed public hearing on HB 2283.

 

 

OPENED WORK SESSION ON HB 2283

 

125

Rep. Verger

MOTION:  MOVED HB 2283 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

 

 

ROLL CALL VOTE:  MOTION PASSED 8-0-1

REPRESENTATIVES VOTING AYE:  Barnhart, Berger, Farr, Hopson, Scott, Verger, Williams, Chair Shetterly.  EXCUSED:  Rep. Hass

 

*See 57B, meter 218 – FINAL VOTE 9-0-0

 

Rep. Morgan will carry the bill.

 

 

 

 

OPENED PUBLIC HEARING HB 2043

 

161

Lizbeth Martin-Mahar

Presented background on HB 2043, (Exhibit 3), and revenue impact statement, (Exhibit 4).  There will be an amendment, as yet undrafted.

 

196

Sen. Charlie Ringo

Spoke in favor of HB 2043, citing traffic congestion, associated costs, and health impacts of air pollution.  Said reduced auto insurance rates could provide the incentive needed to reduce congestion.

 

218

Rep. Verger

Did you consider limiting this bill to congested areas?

 

232

Sen. Ringo

For all areas it makes sense to give incentives to reduce driving.  Discussed how insurance rates are based.

 

245

Rep. Verger

What about areas that don’t have a transit option?

 

255

Sen Ringo

The bill is not intended to push people out of their cars; it is intended to price insurance based on time spent on the roads.

 

280

Chris Hagerbaumer

Spoke in favor of HB 2043, (Exhibit 4). Described Pay-as-You-Drive, (PAYD) program benefits, consumer options, costs, impacts on the environment, pilot program by Progressive.  Will be proposing two amendments.

 

420

Chair Shetterly

Could you describe what the amendments would look like?

 

422

Hagerbaumer

The amendments are suggested by a business advisory committee, allowing a company with no tax liability, in the year that the premiums are sold, to roll tax credit forward to year tax liability is incurred, or to sell the credits to a company that does have tax liability. 

 

444

Verger

Did you consider using this in congested areas only?

 

449

Hagerbaumer

Insurance companies would pilot this in Oregon or the Northwest and it would be offered to interested parties.  Did not want to limit program because there was interest in rural areas for the program.

 

465

Rep. Verger

Explained and asked for comment on the many low income individuals in her district who have to commute in order to find employment, sometimes for an hour and a half.

 

480

Hagerbaumer

Insurance company to offer PAYD as an option and would be an opportunity to save money.

 

503

Rep. Verger

As a member of the Road User Fee Task Force, asked about privacy issue associated with the technology.

 

 

TAPE 58, SIDE A

 

032

Hagerbaumer

Explained that individual might stay in a fixed fee system and not opt into the program.

 

047

Rep. Scott

How do you see the audit process working and how will it be paid for?

 

051

Hagerbaumer

Expects a situation with a mechanic, or a Jiffy Lube, to certify odometer readings.  It does cost money which is why the bill would provide for sunset in a few years.

 

061

Rep. Barnhart

How many miles would be a break even point for PAYD, or a flat rate?

 

068

Hagerbaumer

ODOT estimates the average Oregon driver drives 12,000 per year, anyone who drives less might want to opt into the program.  Estimate a third of drivers, might be interested in the PAYD concept.

 

076

Barnhart

This would appeal to people that drive less than the average?

 

078

Hagerbaumer

Answered affirmatively.

 

080

Barnhart

Someone who drives more, would pay more than on a fixed rate plan?

 

083

Hagerbaumer

The bill does not tell the insurance companies how to operate the program. Feels insurance companies might require fixed payment and provide reward on back end.

 

088

Chair Shetterly

This bill does not dictate how insurance program is set up?

 

089

Hagerbaumer

No.

 

100

Rep. Dingfelder

Spoke in support of HB 2043, (Exhibit 5).  Discussed voluntary nature and affects on traffic congestion. Cited recent transportation study on travel time ranking, and congested lane miles showing declines in Portland’s ranking.  Projects passage of bill would reduce vehicle miles traveled by 5 to 15%, delaying need for highway infrastructure projects.

 

141

Rep. Verger

How can we justify tax credits on something the insurance companies could do already?

 

152

 

 

160

 

172

Rep. Dingfelder

 

 

Rep. Dingfelder

 

Rep. Dingfelder

This is a voluntary program, not requiring insurance companies to make it available. 

 

Discussed benefits and offsets to the Oregon.

 

This is a pilot project, the sunset will enable legislature to review how the program is working.

 

176

Scott Bricker

Discussed affect of incentives on transportation programs, and benefit PAYD would be to bicyclists and walkers, (Exhibit 6).  Also cited health benefits and savings to chronic disease costs.

 

250

 

Questions and discussion regarding cycling on the coast, and long distance commuting.

 

275

 

 

 

306

Lynn Lundquist

 

 

 

Lundquist

The Environment Committee and the Transportation Committee of the OBA both endorsed the concept of PAYD.  Spoke to issues that arose during the hearing.

 

·         Privacy issues can be avoided by driving to see the agent annually.

·         Principle of the bill, a person driving less, should pay less.

·         It’s a pilot project, should not subsidize the insurance industry except for start-up.

 

 

 

328

Gevurtz

Spoke in support of HB 2043, (Exhibit 7), citing Oregon Interfaith Global Warming Campaign and moral obligation to be ethical consumers and stewards of the planet.

 

413

Rep. Verger

This is an excellent bill for areas where there is congestion and where there is a great deal of pollution?  Would it be more economical and at less expense to do a pilot program in the Mid-Valley of Oregon as opposed to all of the state?

 

421

Gevurtz

Grew up in the rural community, with dollars being tight, people have to make monetary choices.  Problem is the tight timeline for world health and well being.  This bill would give industry and individuals the opportunity to be part of the solution.

 

 

TAPE 57, SIDE B

 

014

Roger Martin

Spoke as Director, Oregon Transit Association, and on behalf of members Lane County Transit District (Exhibit 8), and Transportation Alternatives Group of Oregon (TAGO), (Exhibit 9), in supporting HB 2043 as a pilot project.

 

053

Mitch Rofsky

Spoke in support of HB 2043 (Exhibit 10), cited environmental costs, risks associated with driving.  Regarding tracking and privacy issues, the market place will develop alternatives if provided incentives.

 

138

Rep. Berger

How do you intend to monitor mileage?

 

146

Mitchell Rofsky

Represented the agency viewpoint, discussed need for underwriter who will track, people are reasonably honest, as long as they know they are going to be checked.

 

 

 

167

Jenny Holmes

Spoke in support of HB 2043, citing reduction in global warming gases, while providing consumer incentives to drive less, fewer accidents, and would help low income drivers with insurance costs.

 

205

Rep. Verger

Do you have any data on trucks and its affect on global warning?

 

210

Holmes

Do not have data, but it is a significant contributor to global climate change.  See this bill as a small step forward.

 

216

Chair Shetterly

Closed the public hearing on HB 2043.

 

REOPENED WORK SESSION ON HB 2283

 

*218

Chair Shetterly

MOTION:  CHAIR MOVED TO REOPEN WORK SESSION ON HB 2283 FOR PURPOSES OF RECORDING REP. HASS’ VOTE.

 

ORDER:  HEARING NO OBJECTION SO ORDERED.

 

221

Chair Shetterly

Rep. Hass how do you vote?

 

222

Rep. Hass

Votes Aye.

 

223

Chair Shetterly

Closed Work Session on HB 2283.

 

226

Chair Shetterly

Inquired if there was testimony on revenue options to balance the 2001-2003 budget?  There being no testimony, meeting adjourned at 9:50 am.

 

 

 

 

 

 

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.       Malik, “Staff Measure Summary HB 2283”, 1 page

2.       Malik, “Revenue Impact Statement HB 2283”, 1 page

3.       Martin-Mahar, “Staff Measure Summary HB 2043”, 1 page

4.       Hagerbaumer, “Testimony HB 2043”,4 pages

5.       Dingfelder, “Testimony HB 2043”, 3 pages

6.       Scott Bricker, “Testimony HB 2043”, 1 page

7.       Gevurtz, “Testimony HB 2043”, 2 pages

8.       Martin, “Testimony HB 2043 of LTD”, 1 page

9.       Martin, “Testimony HB 2043 of TAGO”, 1 page

10.   Rofsky, “Testimony HB 2043”, 3 pages

11.   Schneider, “Written Testimony HB 2043”, 1 page

12.   Morris, “Written Testimony HB 2043”, 1 page

13.   OEC Business Advisory Board, “Written Testimony HB 2043”, 2 pages

14.   Goodstein, “Written Testimony HB 2043”, 1 page