PUBLIC HEARING AND WORK SESSION: HB 2185

PUBLIC HEARING: SB 327, SB 313

TAPES 36-37, A

SENATE REVENUE COMMITTEE

FEBRUARY 19, 2003 1:00 PM STATE CAPITOL BUILDING

Members Present: Senator Ryan Deckert, Chair

Senator Ted Ferrioli, Vice Chair

Senator Tony Corcoran

Senator Lenn Hannon

Senator Charlie Ringo

Members Excused: Senator Bruce Starr

Witnesses Present: Debra Buchanan, Department of Revenue

Representative Joanne Verger, District 9

Senator Ken Messerle, District 5

Art Fish, Oregon Economic and Community Development Department

Pat Allen, Oregon Economic and Community Development Department

Staff Present: Paul Warner, Legislative Revenue Office

Mazen Malik, Legislative Revenue Office

Lizbeth Martin-Mahar, Legislative Revenue Office

Tara Lantz, Committee Assistant

TAPE 36, SIDE A

003

Chair Deckert

Calls meeting to order at 1:11pm.

OPENS PUBLIC HEARING ON HB 2185

025	Lizbeth Martin-Mahar	Explains HB 2185 which establishes a date for foreign non-resident personal income taxpayers to file personal income tax refunds. Exhibit 1. Discusses the revenue impact. Exhibit 2.
050	Debra Buchanan	Testifies in support of HB 2185 because it equalizes the treatment of foreign non-residents to the current law that refunds cannot be issued more than three years after a tax return was filed. Exhibit 4.
064	Sen. Deckert	Asks how many cases currently would fall under the statute.
065	Buchanan	Answers less than 1,000.
069	Martin-Mahar	Gives data on past foreign resident refunds.

CLOSES PUBLIC HEARING ON HB 2185

OPENS WORK SESSION ON HB 2185

090	Sen. Ringo	MOTION: MOVES HB 2185 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.
103	Sen. Deckert	ORDER: ROLL CALL VOTE: MOTION PASSES: 5-0-1 SENATORS ANSWERING AYE: CORCORAN, HANNON, RINGO, FERRIOLI, DECKERT. SENATOR EXCUSED: STARR. Sen. Ringo will carry the bill on the Senate Floor.

CLOSES WORK SESSION ON HB 2185

OPENS PUBLIC HEARING ON SB 327

114	Rep. Verger	Testifies in support of SB 327 because it would help counties that have brought their unemployment rate down as the state rate was going up and have therefore lost the enterprise zone incentives. Gives example of the American Bridge program in drawing business.
164	Sen. Messerle	Testifies in support of SB 327 because it would help several counties that have lost the ability to benefit from enterprise zone incentives. Discusses the importance of these incentives.
234	Sen. Ringo	Asks the witnesses how they know the American Bridge program would not have come without the incentives.
236	Rep. Verger	Responds that the American Bridge program had a list of demands.
255	Sen. Messerle	Responds that in the case of the American Bridge program, they were initially going to locate in St. Helens and then walked away from St. Helens and went to Reedsport because of the incentives. Discussion follows.
308	Sen. Deckert	Asks why the bill uses the language “non-urban”.
322	Art Fish	Responds that when the enterprise zone incentives were created it was directed at rural areas and that none of the urban areas would qualify for the incentives even with the passage of this bill.

CLOSES PUBLIC HEARING ON SB 327

OPENS WORK SESSION ON SB 327

360	Sen. Ferrioli	MOTION: MOVES SB 327 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.
364	Sen. Deckert	ORDER: HEARING NO OBJECTION, MOTION PASSES: 4-0-2. SENATORS ANSWERING AYE: CORCORAN, HANNON, FERRIOLI, DECKERT. SENATORS EXCUSED: RINGO, STARR. Sen. Messerle will carry the bill on the Senate Floor. *Refer to tape 37A, meter 149 for reconsideration of this order.

CLOSES WORK SESSION ON SB 327

OPENS PUBLIC HEARING ON SB 313

375	Martin-Mahar	Explains SB 313 which would allow a business to qualify for the e-commerce enterprise zone tax credit established by SB 229 (2001 Regular Legislative Session) once they are pre-certified by the Economic and Community Development Department and investments made in capital assets in connection with electronic commerce during the pre-certification period would be considered eligible new investment for the income tax credit. Exhibit 7. Discusses revenue impact. Exhibit 8.
439	Sen. Deckert	Asks Allen to brief the members on how SB 229 is doing.

TAPE 37, SIDE A

005	Pat Allen	Responds that SB 229 has been highly successful, particularly in Southern Oregon, and has created over 500 jobs and over $100 million in new capital investment. Explains the problems that occurred in implementing the tax credits and how SB 313 will fix the problem. Exhibit 10.
050	Sen. Hannon	Asks about the revenue impact in the next biennium. Discussion follows.
081	Sen. Deckert	Asks if the positive effect on revenue has been measured. Discussion follows.
120	Sen. Hannon	Asks about the status of the duplicate house bill, HB 2622.
122	Fish	Responds that the bill has been passed out of the House Trade and Economic Development Committee.
130	Sen. Deckert	States that there will be no work session because HB 2622 is moving out of the House Trade and Economic Development Committee.

CLOSES PUBLIC HEARING ON SB 313

OPENS WORK SESSION ON SB 327

149	Sen. Ferrioli	MOTION: MOVES TO RECONSIDER THE VOTE WHEREBY THE COMMITTEE PASSED SB 327 WITH A DO PASS RECOMMENDATION DUE TO ADDITIONAL FISCAL IMPACT WHICH WASN”T AVAILABLE AT THE TIME OF PASSAGE.
157	Sen. Deckert	*ORDER: HEARING NO OBJECTION, MOTION PASSES: 4-0-2. SENATORS ANSWERING AYE: CORCORAN, HANNON, FERRIOLI, DECKERT. SENATORS EXCUSED: RINGO, STARR.
159	Sen. Deckert	Adjourns meeting at 1:50pm.

Tape Log Submitted by,

Tara Lantz, Committee Assistant Reviewed by Kim Taylor James

Exhibit Summary:

1. HB 2185, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

2. HB 2185, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.

3. HB 2185, Lizbeth Martin-Mahar, Fiscal Impact Statement, 1p.

4. HB 2185, Debra Buchanan, Written Testimony, 1p.

5. SB 327, Mazen Malik, Staff Measure Summary, 1p.

6. SB 327, Art Fish, Impact of SB 327 for Long-term Rural Enterprise Zone Tax Incentives, 2pp.

7. SB 313, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

8. SB 313, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.

9. SB 313, Lizbeth Martin-Mahar, Fiscal Impact Statement, 1p.

10. SB 313, Pat Allen, Written Testimony, 2pp.