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