PUBLIC HEARING AND WORK SESSION: SB 327, SB 819

 

TAPES 68-69, A

 

SENATE REVENUE COMMITTEE

March 24, 2003†† 1:00 PM†† STATE CAPITOL BUILDING

 

Members Present:††††††††††† ††††††††††† Senator Ryan Deckert, Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Ted Ferrioli, Vice Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Lenn Hannon

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Charlie Ringo

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Bruce Starr

 

Members Excused:††††††††† ††††††††††† Senator Tony Corcoran††

 

Witnesses Present:††††††††††† ††††††††††† Representative Joanne Verger, District 9

††††††††††††††††††††††† ††††††††††† ††††††††††† Art Fish, Oregon Economic and Community Development Department†††††† †††††††††††

Staff Present:††† ††††††††††† ††††††††††† Steve Meyer, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Mazen Malik, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Paul Warner, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Tara Lantz, Committee Assistant

 

TAPE 69, SIDE A

 

003

Chair Deckert

Calls meeting to order at 1:12pm.

 

OPENS WORK SESSION ON SB 327

 

014

Rep. Verger 9

Gives background of rural enterprise zones. Explains the problems that have arisen and what SB 327 does to fix them.

 

 

 

051

Mazen Malik

States that there is no fiscal impact and discusses revenue impact. Exhibit 2.

 

 

 

086

Sen. Hannon

Asks about the revenue impact for local governments and state government.

 

 

 

098

Malik

Responds that the tax exemption on income, which is less than $50,000, impacts the state government, and property tax exemptions impact local governments.

 

 

 

114

Sen. Hannon

Asks what the effect will be on enterprise zones if SB 327 is not passed.

 

 

 

119

Malik

Responds that if this bill doesnít pass the number of enterprise zones would go from 30 to 18 and if it does pass it will expand it to 37.

 

 

 

142

Sen. Hannon

Expresses concern that they should be looking at eliminating credits and exemptions in this current budget crisis and not expanding them, but recognizes that some credits are important to stimulate the economy.

 

 

 

159

Sen. Deckert

Responds that it is important to balance revenues coming in and revenues going out in the form of credits. States that they also have to look at the negative impact for doing nothing and that SB 327 is one he believes is important to stimulate the economy for rural Oregon.

 

 

 

185

Sen. Ringo

Asks if it is in the governorís discretion to extend tax credits.

 

 

 

203

Malik

Responds affirmatively.

 

Discussion follows.

 

 

 

231

Sen. Ferrioli

States that enterprise zones affect the local property tax base and that passing SB 327 would not have any effect on the general fund.

 

Discussion follows.

 

 

 

249

Sen. Hannon

Asks if there is a requirement for businesses in enterprise zones to maintain a business for a certain period of time, to employ employees for a certain duration, and to pay a living wage and not a minimum wage.

 

 

 

270

Art Fish

Discusses the process of applying for an enterprise zone credit and responds that there are wage and employee requirements.

 

 

 

302

Sen. Hannon

Asks if a business in an enterprise zone would qualify for other tax credits such as job training. Asks if an existing business would get the same tax credits as a new business.

 

 

 

339

Fish

Responds that existing businesses and new businesses are on equal footing and that businesses in an enterprise zone may qualify for other tax credits.

 

 

 

376

Sen. Deckert

Explains that in about a week they will look at a few tax credit bills, but that in general they are not going to look at very many.

 

 

 

384

Sen. Hannon

Asks how much the credit would generate in revenues above the million dollars that it costs.

 

TAPE 69, SIDE A

 

005

Fish

Gives example of business that has used the enterprise zone credit.Discusses the negative and positive impacts on revenues due to the credit.

 

 

 

071

Sen. Deckert

Points out that there has to be an investment for a company to get into the program.

 

 

 

089

Sen. Starr

MOTION: MOVES SB 327 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

096

Sen. Deckert

ORDER: ROLL CALL VOTE:

SENATORS ANSWERING AYE: HANNON, RINGO, STARR, FERRIOLI, DECKERT. SENATOR EXCUSED: CORCORAN.

Sen. Messerle will carry the bill on the Senate Floor.

 

 

 

109

Sen. Deckert

Adjourns meeting at 1:48pm.

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.      SB 327, Mazen Malik, Staff Measure Summary, 2pp.

2.      SB 327, Mazen Malik, Revenue Impact Statement, 1p.

3.      SB 327, Oregon Revenue Coalition, Written Testimony, 3pp.

4.      SB 327, Art Fish, Written Testimony, 2pp.