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PUBLIC
HEARING, WORK SESSION HB 2999-A PUBLIC
HEARING SB 327, WORK
SESSION HB 2747-A |
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TAPE 140,
141, A |
APRIL 23,
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: Paul Romain, OPMA
Cliff
Olson, Mark Nelson Oil Products
Telemarketer’s Association
Representative
Joanne Verger, District 9
Doris
Penwell, Economic and Community Development Department
Senator
Charlie Ringo, District 17
Staff Present: Paul
Warner, Legislative Revenue Officer
Richard
Yates, Legislative Revenue Office
Mazen
Malik, Legislative Revenue Office
Kathy
Tooley, Committee Assistant
TAPE 140, SIDE A
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004 |
Chair Shetterly |
Calls meeting to order at 8:43 a.m. |
PUBLIC HEARING HB 2999-A
|
018 |
Richard Yates |
Provided description of HB 2999A (Exhibit 1). |
|
034 |
Paul Romain |
Spoke in support of HB 2999A.
Described situation where gas is delivered to a remote area and
possible nonpayment of taxes and shipment. Requests state reimbursement for
lost taxes only. |
|
073 |
Cliff Olson |
Spoke in support of HB 2999A.
Described payment time frame usually load to load or 10 days. Described
people that have taken a load of fuel and gone out of business within that
time frame. Described credit approval
process and safeguards. |
|
081 |
Rep. Verger |
Thought payment was on delivery, you’re buying on credit? |
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089 |
Romaine |
Selling on credit, company buys the fuel and pays the tax, then fuel
is sold and delivered and purchaser may have 10 days to a month to pay. |
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101 |
Rep. Verger |
Why do you sell on credit? |
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103 |
Olson |
Described three methods of payment: cash/certified check, load-to-load,
COD. |
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108 |
Romain |
Provide service by delivering gas to outlying areas. Incentive is there to go after payment as
entire amount of delivery is defaulted on, not just fuel tax. Last year tax portion amounted to $50,000. |
|
135 |
Chair Shetterly |
Any opposition to this in the Transportation Committee? |
|
136 |
Romain |
No testimony in opposition, one no vote was from Rep. Mabrey who had
the same question as Rep. Verger.
Rep. Greenlick defended distributors as providing a service to
outlying communities. |
|
141 |
Chair Shetterly |
Not general fund revenue impact, it is a highway fund revenue impact? |
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148 |
Yates |
Answered affirmatively (Exhibit 2). |
|
153 |
Chair Shetterly |
Closed Public Hearing on HB 2999-A. |
OPENED WORK SESSION ON HB 2999-A
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158 |
Rep. Farr |
MOTION: MOVED HB 2999-A TO
THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION. |
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165 |
Rep. Verger |
Distributors have chosen to do business that way, selling
to a retailer who doesn’t pay them.
We’re giving a refund to a business that has chosen to do business
that way. |
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173 |
Rep. Scott |
They have chosen to do business that way, but they are
trying to provide a service and get the product to remote areas and taking a
substantial reduction if they can’t collect their funds for fuel. |
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184 |
Rep. Farr |
Recounted experience as a purchasing agent, buying on
credit is standard operating procedure in wholesale to retail industry. |
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199 |
Rep. Berger |
This system serves the state well, in that the
taxpayer is the person at the pump, but Oregon gets their payment early in
the stream. Would hate to think of
difficulty of collecting tax if dealers not willing to collect tax up front. |
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214 |
Rep. Verger |
What we’re doing is making up for people that don’t
want to pay their bills. |
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220 |
Chair Shetterly |
What is the likely cost of a delivery fuel and tax
included to Coquille? |
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224 |
Olson |
About $15,000 to $16,000. Station does not have that cash available at the site;
deliveries often at night and there would be a safety issue having to have
cash available late at night. |
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246 |
Rep. Barnhart |
The fuel is actually used in vehicles and the expense
to the state is actually incurred. |
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259 |
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ROLL CALL: MOTION PASSED 8-0-1 REPRESENTATIVES VOTING AYE:
Berger, Farr, Hass, Hopson, Scott, Verger, Williams, Chair Shetterly. NO:
Barnhart. Rep. Scott will carry the bill. |
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266 |
Chair Shetterly |
Closed Work Session on HB 2999-A. |
OPENED PUBLIC HEARING ON SB 327
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285 |
Mazen Malik |
Described and provided background on SB 327 (Exhibit 3). Described qualifications for Enterprise
Zone and provided matrix of current designated and eligibility if SB 327 does
not pass. Provided revenue impact
(Exhibit 4). |
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362 |
Rep. Verger |
Spoke in support of SB 327.
Described enterprise zone as used for economic stimulus; described
nexus to jobs. Discussed unemployment issue in her county as well as 18 other
counties. |
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415 |
Rep. Hass |
Supported SB 327. Why is this
not included in the enterprise zone update? |
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429 |
Rep. Verger |
This was created in 1997, deferred to Doris Penwell on criteria. |
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432 |
Chair Shetterly |
Do we need conforming amendments to any other bills dealing with
enterprise zones to make sure it works together? |
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438 |
Doris Penwell |
Discussed SB 327 is for long term enterprise zone provisions, not 3-5
year enterprise zone program for rural and chronically distressed areas. Might be helpful to review with amendments
in HB 2299. |
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482 |
Chair Shetterly |
Defer action to review with HB 2299. |
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510 |
Chair Shetterly |
Close Public Hearing on SB 327. |
OPENED WORK SESSION HB 2747
TAPE 141, SIDE A
|
043 |
Sen. Charlie Ringo |
Discussed HB 2747 individually with Committee Members to see what
additional changes should be made to the bill. At the request of Rep. Farr,
asked for specific exemption relating to the wood products and timber
industry; Rep. Scott was concerned with construction trade industry vehicles;
both are incorporated in the -4 amendments (Exhibit 6). Goal of HB 2747 to reduce the financial
incentive encouraging people to buy the very largest SUVs, encouraged
Committee to adopt the -3 and -4. |
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065 |
Chair Shetterly |
Revenue impact reviewed already relating to -2 or -3? |
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067 |
Yates |
Same as the -2, although don’t believe -2 appeared before the
Committee. |
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070 |
Yates |
Discussed revenue impact on original bill as $800,000. Estimates impact with -3 or -4 amendments
as $1.2 million for 2003-05. |
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080 |
Rep. Barnhart |
That’s assuming if we do not adopt the bill; is that assuming there
would not be an increase in the sale of vehicles without the bill? |
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085 |
Yates |
Dealing with current law, sales are what they are, large vehicles get
a large depreciation allowance and Oregon is tied to that. Discussed
disconnect with the bill and addition with Oregon return intended to
neutralize incentive granted by federal government. |
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096 |
Rep. Barnhart |
If we don’t pass this bill, if there is an increase in sales the loss
to the state could be greater than $1.2 million? |
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100 |
Yates |
Answered affirmatively, but that is current loss. |
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104 |
Chair Shetterly |
The federal depreciation allowance was designed for vehicles used in
trade or business, specifically agriculture and by evolution of the market
both production and consumer, adoption of -A4 affects doctors and lawyers and
engineers for whom the allowance was not intended.. |
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118 |
Rep. Hass |
I am very supportive of the -4.
If Committee does not approve, there will be a policy incongruity with
credits incenting people to buy hybrids and electric cars vs. SUVs. |
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130 |
Yates |
Trying to determine if you can adopt just the -4 or both the -3 and
-4. |
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133 |
Sen. Ringo |
I think you have to do either the -2 or the -3, plus the -4. |
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136 |
Yates |
My feeling is Dexter Johnson could make one set of amendments. |
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152 |
Chair Shetterly |
Asked Don Schellenberg if he was concerned that the agriculture
exemption gets in. (Schellenberg
nodded affirmatively.) |
|
154 |
Chair Shetterly |
Was there any testimony in opposition to this in the Transportation
Committee? |
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156 |
Sen. Ringo |
Responded no. The only
potential opposition was Schellenberg, as it did not have the farm
exemption. It was unanimous from the
Transportation Committee. |
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167 |
Rep. Hass |
MOTION: MOVED THE -3
AMENDMENTS TO HOUSE BILL 2747. ORDER: HEARING NO OBJECTION,
THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT. |
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171 |
Rep. Verger |
MOTION: MOVED THE -4
AMENDMENTS TO HOUSE BILL 2747. ORDER: HEARING NO OBJECTION,
THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT. |
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178 |
Chair Shetterly |
Closed the Work Session on HB 2747. |
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181 |
Chair Shetterly |
Meeting adjourned at 9:22 a.m. |
Tape Log Submitted by,
Kathy Tooley, Committee
Assistant Reviewed by Kim Taylor James
Exhibit Summary:
1.
Yates,
“Staff Measure Summaries HB 2999”, 2 pages
2.
Yates,
“Revenue Impact HB 2999-A”, 1 page
3.
Malik,
“Staff Measure Summary HB 327”, 1 page
4.
Malik,
“Revenue Impact HB 327”, 1 page
5.
Malik,
“Impact of SB 327 for Long-term Rural Enterprise Zone Tax Incentives”, 1 page
6.
Ringo,
“HB 2747-A4 amendment”, 1 page