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