PUBLIC HEARING AND WORK SESSION

 HB 2650, HB 2195

 

TAPE 66, 67, A-B

 

HOUSE REVENUE COMMITTEE

MARCH 4, 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                                               

 

Members Excused:                     

 

Witness Present:                        Ozzie Rose, Confederation of Oregon Administrators

                                                Clark Seeley, Department of Forestry

                                                Steve Hobbs, Oregon State University, College of Forestry

                                                  Forest Research Laboratory

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Mazen Malik, Legislative Revenue Office

                                                Dick Yates, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 66, SIDE A

004

Chair Shetterly

Calls meeting to order at 8:35 a.m.

 

OPENED PUBLIC HEARING ON HB 2650

 

018

Steve Meyer

Provided background information on HB 2650, Revenue Impact (Exhibit 1), Chart HB 2650 (Exhibit 2), -1 amendment (Exhibit 3).

 

074

Chair Shetterly

Clarified, HB 2650 is basically a technical amendment to the shift established in special session.  It has an emergency clause because it has to be done for accrual to occur in May.

 

076

Ozzie Rose

Spoke in favor of HB 2650.

 

103

 

Questions and discussion regarding options available to a district.

 

117

Chair Shetterly

Are you satisfied with the technical aspects of HB 2650, and that they work?

 

120

Rose

Answered affirmatively.

 

127

Chair Shetterly

Closed public hearing. This is a must have in order for accrual to work for school districts. Deadline is May for distribution and accrual.

 

 

OPENED WORK SESSION ON HB 2650

 

135

 

137

Rep. Hass

 

Chair Shetterly

MOTION:  MOVED -1 AMENDMENT INTO HB 2650.

 

HEARING NO OBJECTION, THE CHAIR SO ORDERS. ALL MEMBERS PRESENT.

 

139

Rep. Hass

MOTION:  MOVED HB 2650 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

ROLL CALL:  MOTION PASSED 9-0-0

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

 

*Refer to Tape 67A, Meter 267 for reconsideration.

 

Rep. Barnhart will carry the bill.

 

153

Rep. Hass

Strongly opposed the shift, but it is necessary.

 

156

Rep. Barnhart

Also opposed the shift, will carry the bill, and so comment on the House floor.  This bill is necessary to put into effect what the legislature did.

 

 

OPENED PUBLIC HEARING ON HB 2195

 

167

Chair Shetterly

This bill is reviewed every two years, with a subsequent referral to Ways and Means, because it fits within the budget.

 

174

Dick Yates

Provided background information on HB 2195, (Exhibit 4).

 

190

Chair Shetterly

This tax supports the Oregon State University Forest Research Lab and the Department of Forestry administration of the Forest Practices Act.

 

205

Clark Seely

Spoke in support of HB 2195, (Exhibit 5).

 

283

Rep. Verger

How do fires influence harvest projections?  In your research are you looking at what happens after a huge fire like the Biscuit fire and what can be done with salvage timber?

 

295

 

340

Seely

 

Seely

Discussed nature of private vs. federal lands salvage harvest.

 

Discussion of federal lands harvest and development of impact summary and will provide to the Committee.

 

365

Rep. Berger

What are OFLPF and OFRI?

 

370

 

390

Seely

 

Seely

Oregon Forest Land Protection Fund; describes function. 

 

Oregon Forest Resources Institute; describes function.

 

375

Berger

If the rate is set by statute, what mechanism funds and by what rate?

 

380

Seely

Discussed rates. (Attachment 2, Exhibit 5).

 

473

Chair Shetterly

Discusses funding addressed by HB 2195.

 

477

Yates

The rate is not necessarily fixed. The State Forester can to lower it to 0, if the balance in the Forest Land Protection Fund meets the minimum balance. The State Forester can also raise the rate if the Forest Fund is exhausted.

 

 

 

TAPE 67, SIDE A

 

028

Scott

What is the projected end balance and what causes that to occur?

 

031

 

 

035

Seely

 

 

Seely

Projecting $1 million ending balance in harvest tax revenue for this biennium.

 

Discusses statutory connection between harvest tax and general fund.

 

065

Hobbs

Testified in support of HB 2195.

 

102

 

Questions and discussion about funding ratio.

 

150

Rep. Verger

Perhaps harvest levels could be greater?  For 2005 and the future, is Oregon capable of harvesting the amount of trees necessary to keep this program going?

 

164

 

 

190

Seely

 

 

Seely

Discussed biological potential and sustainable yield and modern forestry.  Oregon is within biological capability.

 

Discussed landowner and government management objectives.

 

200

Verger

People should do what they do best. One of the things Oregon does best is grow trees.

 

216

Chair Shetterly

Closed public hearing HB 2195.

 

 

OPENED WORK SESSION ON HB 2195

 

218

Rep. Berger

Why did HB 2195 come to the Committee and then go to Ways and Means?

 

230

Chair Shetterly

Because it involves an imposition of a tax.  The amount of the tax is determined according to budget requirements coordinated by Ways and Means, and tradition.

 

229

Rep. Berger

The Committee does not set the rate, what is our role?

 

231

Chair Shetterly

Provides for a biennial policy discussion on the imposition of the tax, supporting the programs that it funds.  In this case the dollar amount is set by Ways and Means because it has to coordinate budgets between the Forestry Department and the OSU program.

 

246

 

 

Chair Shetterly

 

 

MOTION:  MOVES HB 2195 BE REFERRED TO THE FLOOR WITH A DO PASS RECOMMENDATION WITH A SUBSEQUENT REFERRAL TO WAYS AND MEANS.

 

255

 

ROLL CALL:  MOTION PASSED 9-0-0

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

 

 

 

WORK SESSION HB 2650

 

267

 

 

 

269

Chair Shetterly

 

 

 

Chair Shetterly

*MOTION:  REQUEST UNANIMOUS CONSENT TO RECONSIDER THE VOTE BY WHICH HB 2650 (AS AMENDED) WAS PASSED TO THE FLOOR WITH A DO PASS RECOMMENDATION. 

 

ORDER:  THERE BEING NO OBJECTION THE CHAIR SO ORDERS. MEMBERS PRESENT:  Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Williams, Chair Shetterly.

 

 

 

270

Chair Shetterly

Clarifies bill before the committee requires a motion with subsequent referral by prior referral to the Ways and Means Committee.

 

272

Rep. Williams

Is it supposed to go to Ways and Means?

 

275

Paul Warner

Clarifies HB 2650 (as amended) goes to Ways and Means because calculation will influence the final budget for 2003-2005.  It is part of the state school fund appropriations process.

 

280

Chair Shetterly

Will send memo to co-chairs and Ken Rocco, asking for early action because of the time requirements.

 

 

WORK SESSION HB 2195

 

292

 

 

 

297

Chair Shetterly

 

 

 

Chair Shetterly

MOTION:  MOVES HB 2195 WITH A DO PASS RECOMMENDATION AND REQUEST A SUBSEQUENT REFERRAL TO WAYS AND MEANS.

 

ROLL CALL:  MOTION PASSED 9-0-0

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

 

305

Chair Shetterly

Close Hearing on HB 2650.  Meeting adjourned at 9:25 a.m.

 

 

 

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.       Meyer, “Revenue Impact HB 2650”, 1 page

2.       Meyer, “HB 2650”, 1 page

3.       Meyer, “HB 2650-1”, 3 pages

4.       Yates, “Staff Measure Summary HB 2195”, 2 pages

5.       Seely, “Testimony HB 2195”, 4 pages

6.       Hobbs, “Testimony HB 2195”, 1 page