PUBLIC HEARING, WORK SESSION  

 

TAPE 162, AB

 

HOUSE REVENUE COMMITTEE

MAY 12, 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 Mike Schauffler, District 48

                                                Don Schellenberg, Oregon Farm Bureau

                                                Patrick Green, AFL-CIO

                                                Debra Buchanan, Department of Revenue (DOR)

                                                Norm Miller, DOR

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                Richard Yates, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 162, SIDE A

 

004

Chair Shetterly

Calls meeting to order at 8:45 a.m.

 

OPENED PUBLIC HEARING ON HB 3467

 

017

Lizbeth Martin-Mahar

Provided background and description of HB 3467-A, (Exhibit 1) discussed sunset, and rule making authority for DOR. Described preliminary revenue impact of $1 million.

 

063

Rep. Schaufler

Spoke in support of HB 3467-A to find relief for farmers and ranchers, as these employers are unable to pass wage increases costs on.

 

120

Rep. Schauffler

Clarified there is a floor of $6.90, as mandatory adjustments in minimum wage went up that floor would remain there; as minimum wage went up 50% would be everything above $6.90 until review at sunset.

 

147

Don Schellenberg

Spoke in support of HB 3467-A, (Exhibit 2), as it creates a connection that is returned to the farmer in the form of a tax credit.  Issue the farmer has to make a profit to take advantage of the credit discussed difficulty. Secondly, it is a 50% tax credit, to hold the farmer harmless the credit must be 100%.  Third, it is a tax expenditure from a severely strapped budget. The Farm Bureau asks the bill be amended to make the credit 100%.

 

176

Rep. Berger

Concerned by floor and ceiling language. Appears a disincentive is created for a farmer to pay a valued employee more, because if they go over the ceiling they lose the tax credit. 

 

191

Schellenberg

That’s a good point, I don’t know how to answer that either.  I don’t know if the ceiling is the problem.  I don’t know what it takes to correct that.

 

199

Chair Shetterly

That is a problem.

 

200

Rep. Berger

It has the effect of disincentivizing; rewarding good employees that you want to keep.

 

215

Schellenberg

Farmers can’t cover their costs automatically, discussed nature of world market.

 

234

Patrick Green

Spoke in opposition to HB 3467-A, when credit reaches $1 million, the Oregon Revenue Coalition would oppose as well.  For the record, there were nods of affirmation.  It appears to be a disincentive to raise wages.  Question why this industry as opposed to others.  This industry gets $311.3 million in tax credits, second to timber.  Object to amending bill to 100% subsidy.  The public pays the bill out of general fund with school days, or in grocery aisle.

 

279

Debra Buchanan

Described ambiguity in the language, discussed issue pay range, broad rule making authority would allow DOR to address.  Issue broad rulemaking authority would have DOR put themselves in the mind of the farmer in granting wage raise.  Described how it might be addressed by taking credit for difference between minimum wage from one year to another.

 

325

Chair Shetterly

Comment on cliff or phase out of credit?

 

328

Buchanan

Don’t know how to address that, unless its based on the change from prior minimum wage and the current year minimum wage.

 

336

Chair Shetterly

Closed public hearing on HB 3467-A

 

 

OPENED WORK SESSION ON HB 2188

 

344

Richard Yates

Provided background and description of HB 2188, (Exhibit 3); discussed housekeeping nature.

 

370

Chair Shetterly

Summarized testimony from prior hearing, this is a “must have” follow-up to cleaning up the rest of conflicts in the statutes?

 

385

Yates

Must have, either way

 

377

Norm Miller

It is a “must have” either way.  All the requirements for the tax stays; this bill gets rid of those requirements.

 

399

Rep. Barnhart

Inoperative means zero rate?

 

401

Miller

Answered affirmatively.

 

404

Yates

The Committee will have to deal with conflict amendments if these two bills are passed.

 

411

Rep. Scott

MOTION:  MOVED HB 2188 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.

 

Rep. Scott will carry the bill.

 

421

Chair Shetterly

Closed the Work Session on HB 2188.

 

 

425

Chair Shetterly

Meeting adjourned at 9:15 a.m.

 

 

 

 

 

 

 

Tape Log Submitted by,

 

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Martin-Mahar, “Staff Measure Summary HB 3467”, 2 pages

2.       Schellenberg, “Testimony HB 3467”, 1 page

3.       Yates “Staff Measure Summary HB 2188”, 1 page