WORK SESSION HB 2041-A

PUBLIC HEARING AND

WORK SESSION HB 3642

 

 

TAPE 188, A

 

HOUSE REVENUE COMMITTEE

JUNE 13, 2003   9:30 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

 

Members Excused:                      Representative Max Williams

 

Witness Present:                        Julie Suchanek, Community College Association

                                                Kate Richardson, Oregon State Treasury

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Richard Yates, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 188, SIDE A

 

004

Chair Shetterly

Calls meeting to order at 10:00 a.m.

 

OPENED WORK SESSION ON HB 2041

 

012

Chair Shetterly

Recapped status of HB 2041 with A engrossed bill, -A10*, -A14*

 

*(NOTE:  -A10, and -A14 are House Revenue Committee Exhibits 6 and 7 respectively, June 12, 2003.)

 

017

Chair Shetterly

Who brought the –A14s?

 

018

Richard Yates

The Department of Transportation.

 

020

Chair Shetterly

Recessed 10:02.

 

Reconvened the meeting at 10:05 a.m.

 

030

Yates

The –A10 amendments deal with the special county allocation. This amendment provides for a distribution from the special county allocation to qualifying counties on January 5, 2004.

 

038

Chair Shetterly

The –A14’s?

 

039

Yates

The -A14 amendments provide for two fees applied to light vehicles; eliminates the increase on the renewal of a Class C driver’s license.

 

049

Chair Shetterly

Understand the -A14’s are part of the stakeholder’s agreement.  Is there opposition to the –A14’s?  These were discussed between the Transportation Committee and the Revenue Committee and there is agreement on those?

 

053

Yates

Answered affirmatively.

 

054

Rep. Verger

MOTION:  MOVED ADOPTION OF THE –10 AMENDMENTS INTO HB 2041-A.

 

ORDER:  HEARING NO OBJECTION, THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT EXCEPT REP. WILLIAMS, EXCUSED)

 

059

Rep. Verger

MOTION:  MOVED ADOPTION OF THE –14 AMENDMENTS INTO HB 2041-A.

 

ORDER:  HEARING NO OBJECTION, THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT EXCEPT REP. WILLIAMS, EXCUSED)

 

061

Rep. Verger

MOTION:  MOVED HB 2041-A, AS AMENDED, TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

065

Rep. Hass

“This is probably the most significant bill that we have done to create jobs this session.  That’s what I like about it.  The three most important things about it are:  Jobs, jobs, jobs.”

 

069

Chair Shetterly

Expressed concerns of the Committee on the income tax capture piece and suggest this not become a practice regularly employed, urged care and caution for its use in the future.  Concerned also about the Multnomah County amendment, recognize that it has been agreed upon by the cities.   “There is strong support for the bill and what it represents for the future of transportation in Oregon, but also for our economy and the welfare of the people of the state.”

 

079

 

ROLL CALL:  MOTION PASSED 8-0-1

REPRESENTATIVES VOTING AYE:  Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Chair Shetterly.  EXCUSED:  Williams.

 

Rep. Alan Brown will carry the bill.

 

088

Chair Shetterly

Closed the Work Session on HB 2041-A.

 

OPENED PUBLIC HEARING ON HB 3642

 

093

 

 

 

114

Paul Warner

 

 

 

Warner

Described finding that the May 2003 Economic Forecast meets one of the Constitutional conditions for accessing the Education Stability Fund (ESB), (Exhibit 1).  Discussed conditions for access of ESB.

 

Discussed Revenue Impact, (Exhibit 2) and methods for payment transfer.

 

130

Chair Shetterly

This is drafted stating a percentage rather than dollar amount, because there is the possibility of an increase in lottery revenues in the next biennium, and would thereby capture a share of the additional revenues.

 

138

Warner

Video poker has had a tendency to exceed forecast.

 

165

Julie Suchanek

Understand difficult position and fiscal crisis Oregon is in, for the record, ESF moneys fund the Oregon Opportunity Grant which is a state-funded need-based aid grant for post secondary education students attending a community college and other institutions.  Transfers away from the ESB have a direct negative impact to the number of grants available.  Hope the process could continue to prioritize access to post secondary education and maximize opportunities to have access to post secondary education.

 

167

Warner

Fiscal is in the process of estimating lost earnings for the two months at the end of the next biennium.

 

169

Chair Shetterly

Has Treasury looked at this for technical purposes?

 

172

Kate Richardson

The Treasurer has look at this for technical purposes.

 

177

Chair Shetterly

Has the Treasurer found any technical defects in the draft; is it wanting?

 

179

Richardson

The bill as drafted appears to work technically. Transfer date is May 1, 2005. That date will maximize earnings on moneys accumulating to address the beneficiaries. It doesn’t take care of the problem of future bienniums.

 

193

Chair Shetterly

Closed the Public Hearing on HB 3642.

 

 

OPENED WORK SESSION ON HB 3642

 

196

Rep. Scott

MOTION:  MOVED HB 3642 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

 

200

Rep. Barnhart

“It is regrettable that we need to pass this bill, although the constitutional provisions that we are exercising are precisely the ones that we are facing”.

 

205

 

ROLL CALL:  MOTION PASSED 8-0-1

REPRESENTATIVES VOTING AYE:  Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Chair Shetterly.  EXCUSED:  Williams.

 

Rep. Scott will carry the bill.

 

 

 

215

Chair Shetterly

Meeting adjourned at 10:15 a.m.

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Warner, “Staff Measure Summary HB 3642”, 1 page

2.       Warner, “Revenue Impact Statement HB 3642”, 1 page