PUBLIC HEARING HB 2852, HB 2625,

 HB 3418, HB 3419, HB 3033, HB 2990

 

TAPE 112, 113 , A

 

HOUSE REVENUE COMMITTEE

APRIL 8, 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:                        Representative Elaine Hopson, District 32

                                                            House Education and Revenue Committees

                                                Susana Ramirez, Oregon Advocacy Center

                                                Kathryn Weit, Developmental Disabilities Coalition

                                                            and Family Action Coalition Team

                                                Ozzie Rose, Oregon Confederation of School Administrators

                                                Lynn Lundquist, Oregon Business Association,

                                                            And Quality Education Commission (QEC)

                                                Rob Douglas, Columbia River Steamship Operators Association

                                                Todd Staple, “K” Line

                                                Keith Leavitt, Port of Portland

                                                Jeff Krug, Port of Portland

                                                Gil Riddell, Association of Oregon Counties

                                                Patrick Green, AFL-CIO

                                                Representative Steve March, District 46

                                                Ken Armstrong, Oregon Fire Chiefs Association

                                                Chris Chapman, Legislative Aide, Kidney Donor

 

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Steve Meyer, Legislative Revenue Office

                                                Mazen Malik, Legislative Revenue Office

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 112, SIDE A

 

004

Chair Shetterly

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

 

 

PUBLIC HEARING HB 2852

 

018

Steve Meyer

Described HB 2852, discussed sunset (Exhibit 1).

 

046

Chair Shetterly

Public hearing only today, but has a fiscal impact with subsequent referral to Ways and Means.

 

053

 

 

 

064

 

 

098

Rep. Elaine Hopson

 

 

 

Rep. Hopson

 

 

Rep. Hopson

Spoke in support of HB 2852, (Exhibit 2), bill brought at the recommendation of the Oregon Legislative Special Education Task Force; discussed special  education needs.

 

Discussed available federal funds, but insufficient for special education issues.  This bill focuses on special education funding issues. 

 

Regarding a fiscal impact, would look at ways of reducing that cost.

 

096

Rep. Hass

Special education is not incorporated in the Quality Education Model?

 

104

Rep. Hopson

Task force discussed analysis of special education for funding and needs.  In the QEM, there are costs assigned for special education, within the special education area would like to identify the number and the needs of kids at various levels.  Some needs can be addressed in the classroom, but there are those whose needs can cost up to $60,000.  One reason for the extension is to try to determine the funding portion of unique circumstances.

 

122

Rep. Verger

Glad you are finding out about 2001-03 budget for the task force, $150,000 seems like a lot of money.  Liked that you said size of committee should be re-evaluated, it seems unwieldy to get together and get things done.

 

133

Rep. Hopson

Correct, the money comes out of the Department of Education’s budget and  will fight to not take it out of the education budget.

 

137

Chair Shetterly

The report says it takes money out of the state school fund, rather than budget.

 

140

Meyer

The state school fund is part of their budget.

 

141

Chair Shetterly

But money that is otherwise distributed.

 

140

Rep. Barnhart

Is part of the task to come up with specific recommendations for dealing financially with low incidence, high cost students?

 

150

Rep. Hopson

Answered affirmatively. That is the one of the major factors in continuing the funding part.  The double-weight has not taken care of needs. Need to look at big picture of school funding.

 

166

Rep. Barnhart

Discussed Eugene student that had to be educated out of state for $250,000 year. A small district would be in big trouble, would like to see it resolved on a statewide basis.

 

195

Susana Ramirez

Spoke in support of HB 2852, (Exhibit 3), discussed personal experience as parent of a 19 year-old autistic son.  Described need for parent to be on task force.

 

248

Kathryn Weit

Spoke in favor of HB 2852, (Exhibit 4). Discussed history of legislation for special education needs.  Supported continuation of the task force’s work, whether with large task force of smaller work groups; funding is closely tied with service delivery models, best practices, mediation issues and outcomes issues with family member partnerships.

 

278

Ozzie Rose

Spoke in support of HB 2852.  Need continuation of work of task force; needs to discuss funding further.  There is an issue of the right delivery models, the best practices at the best prices.  New federal legislation this summer coming out similar to “No child let behind”. Could use smaller task force.

 

349

Rep. Verger

This sunset is for the next biennium?

 

350

Meyer

The new sunset is for 2005.

 

355

Lynn Lundquist

Spoke in support of HB 2852.  Discussed funding level, is the system getting used as well as it should or abused in some cases?  Special education needs to be put in QEC, but appeared before the QEC, in a way that did not give committee confidence and was not placed in the report.  Special education is $1 billion and needs to have a higher confidence level on expenditures.

 

420

Closed 2852

Closed Public Hearing on HB 2852

 

OPENED PUBLIC HEARING ON HB 2625

 

404

Mazen Malik

Provided background and described HB 2625, discussed sunset, revenue impact, (Exhibit 5).

 

 

TAPE 113, SIDE A

 

030

Rob Douglas

Spoke in favor of HB 2625 as essential for Oregon commerce.  Oregon has never taxed these containers, surprised to find out it had sunset in July 2002.  Had originally asked for it to be exempted without rolling dates.

 

048

Todd Staple

Spoke in favor of HB 2625.  “K” Line is currently not taxed on containers in any state in the country.  This would increase costs and be a factor in pricing decisions and Oregon imports and exports.  Carriers are struggling currently with increased costs of national security in the wake of September 11.

 

077

Chair Shetterly

Oregon taxes rail cars.  When a container becomes affixed to a flat car is it taxable?

 

092

Rob Douglas

Did not know.

 

095

Keith Leavitt

Spoke in favor of HB 2625.  This is an important bill to continue encouraging marine commerce.

 

111

Jeff Krug

Spoke in favor of HB 2625.  Discussed number of jobs created for rail, trucking, and barge companies. Discussed carriers’ struggle to remain profitable.

 

Question and discussion regarding history of exemption.

 

161

Rep. Verger

What is the difference between container shipment by rail, truck or by ship?

 

176

Krug

Discussed central assessment, transient nature of containers.

 

180

Chair Shetterly

Clarifies these are cargo containers primarily for use on ocean going ships.

 

190

Gil Riddell

Would not argue that this exemption should be eliminated. Reminded Committee, the burden of sunset program is on those that receive the tax expenditure.  Would feel more comfortable if the evaluation was stronger, instead of this exemption “may” be effective.

 

190

Patrick Green

AFL-CIO testifying in support of HB 2625. This is essentially an extension, not a new expenditure.  In a global economy, Oregon would be at a competitive disadvantage if it is the only port that does not exempt property taxes.  Port of Portland is a strategic asset that the economy relies on; it supports living wage jobs with benefits.

 

269

Chair Shetterly

Closed Public Hearing HB 2625.

 

 

OPENED PUBLIC HEARING ON HB 3418

 

273

Chair Shetterly

There being no testimony, closed Public Hearing on HB 3418.

 

 

OPENED PUBLIC HEARING ON HB 3419

 

 

275

Chair Shetterly

There being no testimony, closed Public Hearing on HB 3419.

 

 

OPENED PUBLIC HEARING ON HB 3033

 

 

 

284

Rep. Steve March

Discussed -1 amendment, (Exhibit 6), to the bill, removing revenue component and taking it out of the House Revenue Committee’s jurisdiction.  Asked Committee to have a work session on the bill to move the amendments and pass it on to the Ways and Means Committee without recommendation.

 

306

Ken Armstrong

Had some concerns about HB 3033, the -1 amendment appears to resolve these concerns.

 

 

OPENED PUBLIC HEARING ON HB 2990

 

343

Rep. March

Spoke in support of HB 2990, (Exhibit 7).  Referred Committee to:

 

·         Line 15, purposely left the percentage of foregone earned income blank for consideration by the Committee;

·         Did not put a cap on the amount of income that an individual might be making to apply for this.

·         Line 9, discusses a recovery period ending on the 90th day, but means up to 90 days.

 

37

Chris Chapman

Spoke in support of HB 2990, (Exhibit 8).  Goal to make the transplant process easier.  Two groups benefit, those seriously ill; and those donating an organ.  Suggested a tax credit would give donors 2 to 3 months for recovery.  Would support a cap on this bill. 

 

386

Barnhart

Have there been calculations made on the costs of this bill. 

 

414

Chapman

No, understood the bill needed to be heard in Committee before numbers could be ascertained. Best guess is that between 300 and 400 per year eligible, with a potential cap of an estimated $1000.

 

440

Rep. Verger

Closed Public Hearing on HB 2990.

 

442

Rep. Verger

Closed Public Hearing on HB 3033

 

 

 

453

Rep. Verger

Meeting adjourned at 9:34 a.m.

 

 

 

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.       Meyer, “Staff Measure Summary HB 2852”, 1 page

2.       Hopson, “Oregon Legislative Special Education Task Force Final Report”, 8 pages

3.       Ramirez, “Testimony on HB 2852”, 1 page

4.       Weit, “Testimony on HB 2852”, 2 pages

5.       Malik, “Staff Measure Summary HB 2625, Revenue Impact HB 2625, Tax Expenditure Report 2.018 Cargo Containers”, 3 pages

6.       Malik, “Staff Measure Summary HB 3418”, 1 page

7.       Malik, “Staff Measure Summary HB 3419”, 1 page

8.       Martin-Mahar, “Staff Measure Summary HB 3033”, 1 page

9.       March, “HB 3033-1 Amendment”, 3 pages

10.   Martin-Mahar, “Staff Measure Summary HB 2990”, 1 page

11.   March, “Testimony HB 2990”, 1 page

12.   Chapman, “Testimony HB 2990”, 1 page