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WORK
SESSION HB 2168, HB 3033, HB 3183, HB 2043 PUBLIC
HEARING HB 3184 |
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TAPE 122,
123 A |
APRIL 14,
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: Matt Blevins, Oregon Environmental
Council
Representative
Deborah Kafoury, District 43
Rebecca
Shine, State Advisory Committee to the Childcare Division
Laura
Smith, Enterprise Foundation
Dexter
Johnson, Legislative Counsel
Staff Present: Paul
Warner, Legislative Revenue Officer
Lizbeth
Martin-Mahar, Legislative Revenue Office
Kathy
Tooley, Committee Assistant
TAPE 122, SIDE A
|
004 |
Chair Shetterly |
Calls meeting to order at 8:40 a.m. |
OPENED WORK SESSION ON HB 2168
|
024 |
Chair Shetterly |
Described -1 amendment (Exhibit 1), removes revenue impact for the
coming biennium and provides HB 2168 as vehicle for Senate to restructure
budget; Senate can return revenue impact. |
|
038 |
Lizbeth Martin-Mahar |
Confirmed -1 amendment restores current law cap on the total amount
and has no revenue impact. |
|
039 |
Chair Shetterly |
Qualified assignee changes are still in place? |
|
040 |
Martin-Mahar |
Answered affirmatively. |
|
051 053 |
Rep. Verger Chair Shetterly |
MOTION: MOVED ADOPTION OF THE
–1 AMENDMENT INTO HB 2168. ORDER: HEARING NO OBJECTION,
THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT EXCEPT REP. HASS AND REP. WILLIAMS,
EXCUSED). |
|
054 057 059 |
Rep. Verger |
MOTION: MOVED HB 2168 TO THE
HOUSE FLOOR WITH A DO PASS RECOMMENDATION. ROLL CALL: MOTION PASSED 7-0-2
(*See Tape 122, Meter 102 and 156). REPRESENTATIVES VOTING AYE:
Barnhart, Berger, Farr, Hopson, Scott, Verger, Chair Shetterly. EXCUSED:
Hass, Williams. Rep. Scott will carry the bill. (**See Tape 122, Meter 156.) |
OPENED WORK SESSION ON HB 3033
|
067 |
Martin-Mahar |
Provided description of HB 3033; -1 amendment deletes revenue impact. |
|
089 |
Chair Shetterly |
MOTION: MOVED ADOPTION OF THE
–1 AMENDMENT INTO HB 3033. ORDER: HEARING NO OBJECTION,
THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT EXCEPT FOR REP. WILLIAMS, EXCUSED). |
|
098 100 103 |
Chair Shetterly Chair Shetterly |
MOTION: MOVED HB 3033 TO THE
WAYS AND MEANS COMMITTEE FLOOR WITHOUT RECOMMENDATION AS AMENDED. ROLL CALL: MOTION PASSED 8-0-1.
(***See Tape 122, Meter 268.) REPRESENTATIVES VOTING AYE:
Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Chair Shetterly. EXCUSED:
Rep. Williams. Closed Work Session on HB 3033. |
|
102 |
Chair Shetterly |
MOTION: REQUESTS UNANIMOUS
CONSENT TO RETURN TO THE WORK SESSION ON HB 2168, TO ALLOW REP. HASS TO VOTE.
(*See Tape 122, Meter 057.) ORDER: THERE BEING NO
OBJECTION, THE CHAIR SO ORDERS. (ALL
MEMBERS PRESENT, EXCEPT FOR REP. WILLIAMS, EXCUSED.) |
REOPENED WORK SESSION ON HB 2168
|
106 |
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REP. HASS VOTES AYE. |
|
107 |
Chair Shetterly |
Closes the Work Session on HB 2168. |
OPENED WORK SESSION ON HB 3183
|
110 |
Martin-Mahar |
Described bill, changes the corporate apportionment formula,
describes no revenue impact for coming biennium. |
|
143 146 155 156 |
Rep. Verger |
MOTION: MOVED HB 3183 TO THE
HOUSE FLOOR WITH A DO PASS RECOMMENDATION. ROLL CALL: MOTION PASSED 8-0-1 REPRESENTATIVES VOTING AYE:
Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Chair Shetterly. EXCUSED:
Rep. Williams (****See Tape 122, Meter 273.) Rep. Scott will carry the HB 3183. Rep. Farr will carry HB 2168. (**See Tape 122, Meter 059.) |
|
157 |
Chair Shetterly |
Closed Work Session on HB 3183 |
OPENED WORK SESSION ON HB 2043
|
170 |
Martin-Mahar |
Provided description of HB 2043, (Exhibit 4), -5 amendment, (Exhibit 5),
revenue impact for 2005-2009 (Exhibit 6). |
|
210 |
Chair Shetterly |
Asked Matt Blevins if he had seen -5 amendments and if they
incorporated what was intended. |
|
213 |
Matt Blevins |
-5 amendments currently incorporate all amendments asked for in the
bill. |
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222 |
Chair Shetterly |
Described individual amendments, -5 amendment incorporates -1 and -5. |
|
224 |
Rep. Hass |
MOTION: MOVED ADOPTION OF THE
–5 AMENDMENTS INTO HB 2043. ORDER: HEARING NO OBJECTION,
THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT.) |
|
227 |
Rep. Hass |
MOTION: MOVED HB 2043 TO THE
HOUSE FLOOR WITH A DO PASS RECOMMENDATION. |
|
233 |
Rep. Verger |
For the record, believes in mileage based insurance; “this
bill is a good bill for urban areas and congested areas. I just cannot vote
for it for my district, we are a rural area, we do not have alternative
public transportation and we have people having to commute to Eugene and many
miles just to get employment.” |
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245 |
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ROLL CALL: MOTION PASSED 8-1-0 REPRESENTATIVES VOTING AYE:
Barnhart, Berger, Farr, Hass, Hopson, Scott, Williams, Chair
Shetterly. NO: Verger. Rep. Williams will carry the bill. |
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Closed public hearing on HB 2043. |
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261 263 |
Chair Shetterly Chair Shetterly |
MOTION: REQUESTS UNANIMOUS
CONSENT TO RETURN TO THE WORK SESSION ON HB 2168, TO ALLOW REP. WILLIAMS TO
VOTE. ORDER: THERE BEING NO
OBJECTION, THE CHAIR SO ORDERS. (ALL
MEMBERS PRESENT.) |
REOPENED WORK SESSION ON HB 2168
|
264 |
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REP. WILLIAMS VOTES AYE. FINAL VOTE: MOTION PASSED
9-0-0 (*See Tape 122, Meter 057) |
|
265 |
Chair Shetterly |
Closed Work Session on HB
2168. |
|
267 |
Chair Shetterly |
MOTION: REQUESTS UNANIMOUS
CONSENT TO RETURN TO THE WORK SESSION ON HB 3033, TO ALLOW REP. WILLIAMS TO
VOTE. ORDER: THERE BEING NO
OBJECTION, THE CHAIR SO ORDERS. (ALL
MEMBERS PRESENT.) |
REOPENED WORK SESSION ON HB 3033
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268 |
Rep. Williams |
REP WILLIAMS VOTES AYE. FINAL VOTE: MOTION PASSED 9-0-0. (***Tape 122, Meter 100.) |
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269 |
Chair Shetterly |
Closed Work Session on HB 3033. |
|
271 |
Chair Shetterly |
MOTION: REQUESTS UNANIMOUS
CONSENT TO RETURN TO THE WORK SESSION ON HB 3183, TO ALLOW REP. WILLIAMS TO
VOTE. ORDER: THERE BEING NO
OBJECTION, THE CHAIR SO ORDERS. (ALL
MEMBERS PRESENT.) |
REOPENED WORK SESSION ON HB 3183
|
273 |
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REP WILLIAMS VOTES AYE. FINAL VOTE: MOTION PASSED 9-0-0. (****Tape 122, Meter 146.) |
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275 |
Chair Shetterly |
Closed the Work Session on HB 3183. |
OPENED WORK SESSION ON HB 3184
|
245 |
Martin-Mahar |
Provided description, discussed sunset, (Exhibit 7), -1, (Exhibit 8)
and -2 (Exhibit 9) amendments for HB 3184. |
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370 |
Chair Shetterly |
Passed last session, due to technical problems was not implemented,
the amendments corrected those problems. |
|
372 |
Deborah Kafoury |
Spoke in support of HB 3184. Provided
history, idea to make high quality childcare more affordable and accessible
for Oregonians. |
|
385 |
Chair Shetterly |
No policy changes, just technical changes to a bill that was
unanimous in both House and Senate last year? |
|
390 |
Rep. Kafoury |
Answered affirmatively. |
|
392 |
Chair Shetterly |
Is there a revenue impact? |
|
393 |
Martin-Mahar |
Discussed revenue impact due to extension of sunset (Exhibit 10). |
|
395 |
Chair Shetterly |
That’s out, nothing in this biennium? |
|
399 |
Martin-Mahar |
Answered affirmatively. |
|
402 |
Rebecca Shine |
Spoke in support of HB 3184, private sector resources to benefit
child care. Funds would: Increase revenue for childcare businesses, decrease
parent costs, and improve the quality of care. Attorney General’s office recommended technical changes before
implementation. |
|
423 |
Laura Smith |
Recommends Committee move -2 amendments which combines -1 to allow
Child Care Division to have leeway in setting the value of tax credit based
on upcoming decision from Internal Revenue Service (IRS). |
|
437 |
Chair Shetterly |
What’s the tie-in to the IRS? |
|
439 |
Laura Smith |
Asked IRS opinion if a contributor could take a tax credit and in
addition take the Federal Charitable Contribution tax credit. Awaiting
notification, have had favorable discussions with IRS. The Childcare Division by rule could lower
the tax credit currently at $1.50 return for every $1 spent. |
|
475 |
Debra Buchanan |
There is a question with the AG’s office as to whether contributions
would be deductible for Oregon purposes if received federal credit. |
|
494 |
Chair Shetterly |
May require a further amendment? |
|
495 |
Buchanan |
Answered affirmatively. |
|
503 |
Chair |
Does it need to be a qualifying contribution for both a credit and
deduction? |
|
506 |
Shine |
The -2 covers that to allow the Childcare Division to set the ratio
appropriately pending IRS decision. |
TAPE 123, SIDE A
|
040 |
Chair Shetterly |
There’s a separate state issue irrespective of what the IRS might
rule? |
|
043 |
Buchanan |
Believe it’s correct, concerned that contributor could receive both credit
and deduction at the state level because do not have charitable intent as
money is received back through credit. |
|
047 |
Shine |
Clarified, not looking for a deduction at the state level. Looking for credit at state level and
potentially a federal deduction. Does
that help? |
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050 |
Buchanan |
Answered affirmatively. |
|
052 |
Chair |
Does it help enough? Or is an amendment necessary to clarify that
intent? |
|
053 |
Buchanan |
That statement of intent is consistent with the AG’s advice. A
contributor would not qualify for a deduction on the Oregon return if
claiming a credit for Oregon purposes. |
|
055 |
Chair Shetterly |
An amendment is not required? |
|
056 |
Buchanan |
Answered affirmatively. |
|
055 |
Dexter Johnson |
Discussed drafting concern regarding a double deduction risk at the
state level. This would have to be done in the form of an additional
subtraction. If IRS approves, an even
larger benefit might be created. |
|
072 |
Rep. Hass |
Can the state obligate federal government as to what may or may not
be deducted from federal taxes? |
|
075 |
Johnson |
No, the IRS will decide if the donation qualifies for a charitable
deduction. |
|
075 |
Rep. Barnhart |
If the IRS says a contribution is deductible, Oregon by rule will
establish a credit so that no one gets more than their money back? |
|
087 |
Johnson |
Discussed purpose of grant rule making authority is to adjust credit
so there is a financial return. The
intent is to return of more than 100%. |
|
102 |
Chair Shetterly |
Question and discussion regarding $500,000. |
|
112 |
Barnhart |
Is part of the object to get the federal government to contribute to
the process; why not an appropriation? |
|
115 |
Rep. Kafoury |
Did not anticipate credit as being a charitable contribution at the
state level. The credit will be more
than 1:1. Why is it not an
appropriation? Goes back to
discussion on tax credits vs. appropriations. |
|
126 |
Chair Shetterly |
It was not anticipated or intended for this to be taken as a
deduction in addition to a credit for state tax purposes? |
|
132 |
Rep. Kafoury |
Answered affirmatively. |
|
133 |
Johnson |
The bill and law takes the position that state law will follow
federal law. It would allow a deduction if allowed for federal purposes. If
the Committee did not want that, it would require a specific add-back. |
|
141 |
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Discussion regarding ad back. |
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|
144 |
Chair Shetterly |
Would an additional amendment make that explicit? |
|
146 |
Rep. Kafoury |
Answered affirmatively. Goal
to attract money from business and investors that has not been there; it has
worked very well in affordable housing arena and could work well in the child
care arena as well. |
|
162 |
Chair Shetterly |
Closed Public Hearing on HB 3184. |
|
170 |
Chair Shetterly |
Meeting adjourned at 9:20 a.m. |
Tape Log Submitted by,
Kathy Tooley, Committee
Assistant Reviewed by Kim Taylor James
Exhibit Summary:
1.
Chair
Shetterly, “-1 Amendment HB 2168”, 1 page
2.
Martin-Mahar,
“Staff Measure Summary HB 2168”, 1 page
3.
Martin-Mahar,
“Staff Measure Summary HB 3033-1”, 1 page
4.
Martin-Mahar,
“Staff Measure Summary HB 2043-5”, 1 page
5.
Martin-Mahar,
“-5 Amendment HB 2043-5”, 1 page
6.
Martin-Mahar,
“Revenue Impact HB 2043-5”, 1 page
7.
Martin-Mahar,
“Staff Measure Summary HB 3184-1”, 1 page
8.
Martin-Mahar,
“-1 Amendment HB 3184”, 2 pages
9.
Martin-Mahar,
“-2 Amendment HB 3184”, 4 pages
10.
Martin-Mahar,
“Revenue Impact HB 3184-1”, 1 page