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PUBLIC HEARING: SB 585, SJR 28 |
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TAPES 70-71,
A-B |
March 25,
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
Senator
Bruce Starr
Witnesses Present: Senator Jackie Winters, District 19
Art
Fish, Economic and Community Development Department
Betsy
Earls, Harrang, Long, Gary, and Rudnick Law Firm
Jack
M. Benton, SUMCA USA Corporation
Jim
Craven, American Electronics Association
Patrick
Green, Oregon AFL-CIO
Larry
Glassock, Salem Economic Development Corporation
John
Pascone, Albany-Millersburg Economic Development Corporation
Senator
Richard Devlin, District 19
Staff Present: Mazen
Malik, Legislative Revenue Office
Paul
Warner, Legislative Revenue Office
Tara
Lantz, Committee Assistant
TAPE
70, SIDE A
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003 |
Chair Deckert |
Calls meeting to order at 1:07pm. |
OPENS PUBLIC HEARING ON SB
858
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009 |
Sen. Winters |
Introduces SB 858 and testifies in
support because it would assist companies in maintaining jobs during the
current economic recession. |
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040 |
Art Fish |
Explains the enterprise zone program
and what SB 858 does to change it. |
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119 |
Betsy Earls |
Introduces the SB 858-1 amendments. Exhibit
2. |
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126 |
Jack Benton |
Gives historical background of the
SUMCO Corporation. Exhibit 3. Testifies in support of SB 858 because it would
help SUMCO maintain jobs in the current economic downturn. |
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294 |
Sen. Corcoran |
Asks if there is a mechanism now to
change the requirements for certification. |
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299 |
Benton |
Responds negatively. |
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322 |
Jim Craven |
Testifies in support of SB 858
because it will increase the chances that businesses that contribute greatly
to their communities, such as SUMCO, will be able to maintain and expand
employment opportunities. |
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341 |
Sen. Deckert |
Asks why the flexibility wasn’t
granted when the enterprise zone program was created. |
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350 |
Craven |
Responds that he doesn’t know. |
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355 |
Patrick Green |
Testifies in neutrality of SB 858
and raises concerns that the legislature should be cautious in making it
easier for businesses to break their commitment to creating jobs. Discusses the waiver available for first source
hiring agreements. |
TAPE 71, SIDE A
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004 |
Sen. Hannon |
Asks why the Oregon Revenue
Coalition is neutral on SB 858 when they submitted a statement on Monday
against all tax credits. |
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011 |
Green |
Responds that they are against tax
credits but that they cannot testify against SB 858 because they don’t know
the revenue impact. |
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024 |
Sen. Hannon |
Asks about the revenue and fiscal
impact. |
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028 |
Sen. Deckert |
Responds that the fiscal impact
would be to the city. |
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030 |
Sen. Hannon |
Asks if SUMCO would take a deduction
in income tax. |
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033 |
Benton |
Responds negatively. |
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047 |
Sen. Deckert |
Asks if SUMCO is aware of any
opportunities already available to get a waiver. |
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053 |
Fish |
Responds that there are options for
waivers on first source hiring agreements but that there is no flexibility
for the 10 percent hiring requirement. |
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080 |
Larry Glassock |
Gives historical background of the
Salem enterprise zone. Testifies in support of SB 858 because it is important
to retain businesses, such as SUMCO, that invest in the community. |
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137 |
John Pascone |
Testifies in support of SB 858 and
asks that the legislature look at expanding the availability of waivers to
help other businesses as well. Gives example of one company in his area that is
hurting but won’t be helped by SB 858 because they are too small. |
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199 |
Sen. Deckert |
Asks for information about the
company Pascone is referring to. Discussion follows. |
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212 |
Sen. Ringo |
States that business tax breaks are
difficult because you can only pass ones that are guaranteed to stimulate the
economy and cautions against broadening the scope of the bill. |
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218 |
Pascone |
Agrees with Senator Ringo but points
out that he is only suggesting that businesses who don’t meet the
requirements in the first year are able to apply the following year rather
than in five years and is not asking to refund taxes paid. |
CLOSES PUBLIC HEARING ON SB
858
OPENS PUBLIC HEARING ON SJR
28
|
245 |
Paul Warner |
Explains SJR 28 which creates a
separate calculation for income derived from capital gains on both personal
income and corporate income tax returns in the forecast and then if revenue
exceeds the forecast by 2 percent or more, the entire amount of the excess is
deposited in the Education Stability Fund. Discusses the history of capital
gains revenue. Exhibit 4. |
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287 |
Sen. Corcoran |
Asks about the capital gains
percentages. |
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292 |
Warner |
Responds that they are percentage
changes from the prior year. Discussion follows. |
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345 |
Sen. Devlin |
Explains reasoning for drafting SJR
28 and discusses SB 813 which was written in conjunction with the resolution.
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TAPE 70, SIDE B
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018 |
Sen. Hannon |
Expresses doubts about the economy
making such a swift recovery. |
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031 |
Sen. Devlin |
Responds that even in 2009 they are
not projected to be back to the 1999 level of capital gains. |
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039 |
Sen. Hannon |
States that he has never voted for
the kicker and points out that Measure 28 would have raised the same amount
of money the state gave back to the public the year before in the kicker. |
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047 |
Sen. Devlin |
Responds that the point of this bill
is to make the forecast much more stable so that the chances of the kicker
actually kicking would be decreased dramatically. |
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067 |
Sen. Ringo |
Expresses support for SJR 28 because
it would even out the volatility in the forecast. |
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070 |
Sen. Devlin |
Responds by saying that one of the
reasons for this bill was to create the Education Stability Fund. |
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087 |
Sen. Deckert |
Asks if the fact that it had to go
to the public for a vote was considered. |
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091 |
Sen. Devlin |
Responds that he did not ask counsel
whether the change was constitutional. |
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104 |
Sen. Deckert |
Asks what the voter receptivity is. |
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106 |
Sen. Devlin |
Responds that he believes people’s
perceptions have changed since they last talked about the kicker and that
people recognize that funding for schools is needed. |
CLOSES PUBLIC HEARING ON SJR
28
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132 |
Sen. Deckert |
Adjourns meeting at 2:09pm. |
Tape Log Submitted by,
Tara Lantz, Committee Assistant Reviewed
by Kim Taylor James
Exhibit Summary:
1.
SB 585, Mazen Malik, Staff Measure Summary, 1p.
2.
SB 585, Betsy Earl, Proposed SB 858-1 amendments, 1p.
3.
SB 585, Jack Benton, Written Testimony, 7pp.
4.
SJR 28, Paul Warner, Staff Measure Summary, 2pp.
5.
SJR 28, Paul Warner, Fiscal Impact Statement, 1p.