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PUBLIC
HEARING, WORK SESSION |
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TAPE 162, AB |
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
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004 |
Chair Shetterly |
Calls meeting to order at 8:45 a.m. |
OPENED PUBLIC HEARING ON HB 3467
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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. |
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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. |
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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. |
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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%. |
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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.
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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. |
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199 |
Chair Shetterly |
That is a problem. |
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200 |
Rep. Berger |
It has the effect of disincentivizing; rewarding good employees that
you want to keep. |
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215 |
Schellenberg |
Farmers can’t cover their costs automatically, discussed nature of world
market. |
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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. |
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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. |
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325 |
Chair Shetterly |
Comment on cliff or phase out of credit? |
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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. |
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336 |
Chair Shetterly |
Closed public hearing on HB 3467-A |
OPENED WORK SESSION ON HB 2188
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344 |
Richard Yates |
Provided background and description of HB 2188, (Exhibit 3); discussed
housekeeping nature. |
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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? |
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Yates |
Must have, either way |
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Norm Miller |
It is a “must have” either way.
All the requirements for the tax stays; this bill gets rid of those
requirements. |
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399 |
Rep. Barnhart |
Inoperative means zero rate? |
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Miller |
Answered affirmatively. |
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Yates |
The Committee will have to deal with conflict amendments if these two
bills are passed. |
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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. |
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421 |
Chair Shetterly |
Closed the Work Session on HB 2188. |
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425 |
Chair Shetterly |
Meeting adjourned at 9:15 a.m. |
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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