PUBLIC HEARING SB 313-A

TAPE 175, 176, A

HOUSE REVENUE COMMITTEE

MAY 27, 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: Veronica Rinard, Oregon Film and Video Office

Debbie Williamson-Smith, Mid-Oregon Production Arts Network

Donna Jennison, Oregon Media Production Association

Debra Buchanan, Oregon Department of Revenue

Staff Present: Paul Warner, Legislative Revenue Officer

Kathy Tooley, Committee Assistant

TAPE 175, SIDE A

004

Chair Shetterly

Calls meeting to order at 8:40 a.m.

OPENED PUBLIC HEARING ON SB 313-A

010	Paul Warner	Provided background and described SB 313-A, (Exhibit 1). Discussed issue, same as for HB 3184, concerning Internal Revenue Service ruling on donations by firms in exchange for tax credit and ability to deduct donations from federal taxes. If a federal deduction could not be taken, it would be difficult to sell the credits. If allowable the program is feasible and marketable.
039	Warner	Described –A5 amendments, (Exhibit 2), as technical reviewing language and how the credit program would work. Substantive change moves the program forward from July 1 to January 1, increasing the revenue impact (Exhibit 3). Provided Fiscal Impact Statement (Exhibit 4).
051	Chair Shetterly	The –A5 amendments appear to address the relationship between predictability for federal tax purposes and the credit?
055	Warner	Answered affirmatively, it prevents double-dipping; and is the same language as in HB 3184.
057	Chair Shetterly	It’s the same fix. If they get the credit, the federal deduction is added back into Oregon taxable income?
059	Warner	Answered affirmatively. They do not get a subtraction on Oregon taxable income.
063	Veronica Rinard	Spoke in support of SB 313-A. Discussed opportunities for creating jobs and new revenues for Oregon. Governor has said the film and video industry is part of his economic development policy. Paraphrased written testimony, (Exhibit 5).
184	Rinard	Discussed recent success of Gus Van Sant’s film award at Cannes and spotlight on Oregon.
229	Rep. Barnhart	How did you come up with 1.5 to 1 return on these kinds of tax credits?
245	Rinard	Cited information sent to Committee Members’ offices prior. Explained ECONorthwest’s methodology.
255	Debbie Williamson-Smith	Spoke in support of SB 313-A. Paraphrased written testimony (Exhibit 6).
308	Dottie Jennison	Spoke in support of SB 313-A, as it supports small business and freelance businesses. Concurred with Rinard on loss of Oregon infrastructure for film-making.
351	Jennison	Discussed quality of Oregon infrastructure as high in comparison to Los Angeles and Vancouver.
361	Jennison	Described SB 313-A as an economic driver, discussed positive ripple effect on businesses.
371	Rep. Verger	Discussed movie made on Rogue River in which there was trouble with environmental regulations, and film company’s disenchantment with Oregon.
398	Rinard	Believed the reference was to the movie “River Wild”, described it as an isolated case of environmental obstacles. Described problems as a learning experience and since have worked closely with permitting entities. During filming of “Postman”, worked with Clackamas River watcher environmental group from the beginning.
410	Rep. Berger	Discussed perception of film industry as not steady and dependable, asked for assurance the industry is dependable.
441	Rinard	Cited aforementioned economic study, which shows that the industry is dependable. Infrastructure, crew and support services dependent on industry and work together to keep industry growing. Recent feature films have been hit and miss; but described other productions that go on all the time, but do not get attention because stars are not here.

TAPE 176, SIDE A

025	Rep. Farr	Spoke in support of SB 313-A, but as an Oregon business person hoped that people who bring business to the state could be encouraged to do their business within the state as much as possible.
035	Chair Shetterly	Asked Debra Buchanan if she had reviewed the –A5, and did they work for her?
036	Debra Buchanan	Answered affirmatively.
040		Questions and discussion regarding rescinding referral to Ways and Means Committee.
064	Chair Shetterly	Closed Public Hearing on SB 313-A.

067

Warner

Discussed Gary Weeks written testimony-regarding “Selected Other Funds Revenues: May 15, 2003 Forecast”.

088

Chair Shetterly

Meeting adjourned at 9:15 a.m.

Tape Log Submitted by,

Kathy Tooley, Committee Assistant

Exhibit Summary:

1. Warner, “Staff Measure Summary SB 313-A”, 1 page

2. Warner, “SB 313-A5 Amendment”, 1 page

3. Warner, “Revenue Impact SB 313-A”, 1 page

4. Warner, “Fiscal Analysis SB 313”, 1 page

5. Rinard, “Testimony SB 313-A”, 4 pages

6. Williamson-Smith, “Testimony SB 313”, 1 page

7. Warner, “Gary Weeks Memo: Selected Other Funds Revenues: May 15, 2003 Forecast”, 6 pages