PUBLIC HEARING: SB 292, SB 415, SB 492, SB 798

WORK SESSION: SB 550, SB 819

TAPES 78-79, A-B

SENATE REVENUE COMMITTEE

April 2, 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: Bob Seward, Department of Education

Jim Craven, American Electronics Association

Bob Dryden, Portland State University

Ron Adams, Oregon State University

Art Keil, Oregon Association of Naturopathic Physicians

Chris Meletis, National College of Naturopathic Medicine

Wayne Centrone, Oregon Association of Naturopathic Physicians

Shawn Cleave, Senate Republican Office

David Eaton, Bend Resident

Marcia Kelley, Oregon Revenue Coalition

Staff Present: Paul Warner, Legislative Revenue Office

Lizbeth Martin-Mahar, Legislative Revenue Office

Steve Meyer, Legislative Revenue Office

Tara Lantz, Committee Assistant

TAPE 78, SIDE A

005

Chair Deckert

Calls meeting to order at 1:09pm.

OPENS WORK SESSION ON SB 550

011	Sen. Starr	MOTION: MOVES RULES BE SUSPENDED FOR THE PURPOSE OF RECONSIDERING THE VOTE ON SB 550.
020	Sen. Deckert	ORDER: ROLL CALL VOTE: MOTION PASSES: 4-1-1. SENATORS ANSWERING AYE: CORCORAN, STARR, FERRIOLI, DECKERT. SENATORS ANSWERING NO: RINGO. SENATORS EXCUSED: HANNON.
027	Sen. Starr	MOTION: MOVES TO RECONSIDER THE VOTE BY WHICH THE COMMITTEE SENT SB 550 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.
032	Sen. Deckert	ORDER: ROLL CALL VOTE: MOTION PASSES: 4-1-1. SENATORS ANSWERING AYE: CORCORAN, STARR, FERRIOLI, DECKERT. SENATORS ANSWERING NO: RINGO. SENATORS EXCUSED: HANNON.
035	Sen. Starr	MOTION: MOVES TO RECONSIDER THE VOTE BY WHICH THE COMMITTEE ADPOPTED SB 550-3 AMENDMENTS.
040	Bob Seward	Explains that the initial fiscal impact was incorrect and that there is no fiscal impact on SB 550.
065	Sen. Deckert	ORDER: ROLL CALL VOTE: MOTION PASSES: 5-0-1. SENATORS ANSWERING AYE: CORCORAN, RINGO, STARR, FERRIOLI, DECKERT. SENATORS EXCUSED: HANNON.
080	Steve Meyer	Explains SB 550-4 amendments. Exhibit 4.
090	Sen. Ferrioli	MOTION: MOVES SB 550-4 AMENDMENTS DATED 3/20/03 BE ADOPTED.
094	Sen. Deckert	ORDER: HEARING NO OBJECTION, MOTION PASSES: 5-0-1. SENATORS EXCUSED: HANNON.
095	Sen. Ferrioli	MOTION: MOVES SB 550 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.
105	Sen. Deckert	ORDER: ROLL CALL VOTE: MOTION PASSES: 4-0-2. SENATORS ANSWERING AYE: RINGO, STARR, FERRIOLI, DECKERT. SENATORS EXCUSED: CORCORAN, HANNON. Sen. Deckert will carry the bill on the Senate Floor.

OPENS PUBLIC HEARING ON SB 292

118	Sen. Ferrioli	Testifies in support of SB 292 because it builds on work already done to allow companies to receive tax credits to donate equipment to engineering programs.
142	Lizbeth Martin-Mahar	Gives history of the tax credit for donating equipment and maintenance to engineering programs to universities. Exhibit 7. Discusses revenue and fiscal impact. Exhibits 8-9.
169	Jim Craven	Testifies in support of SB 292 because it helps colleges equip engineering facilities.
236	Ron Adams	Testifies in support of SB 292 because it would help Oregon State University increase both capacity and quality of the engineering program, making it one of the top programs in the nation. Refer to written testimony. Exhibit 11.
322	Bob Dryden	Testifies in support of SB 292. Discusses the need for continued funds to purchase engineering equipment.
419	Jim Craven	Refers members to written testimony from the University of Oregon.

TAPE 79, SIDE A

005	Sen. Hannon	Asks if there is more recent revenue data.
015	Martin-Mahar	Responds negatively.
035	Sen. Hannon	States that he understands the need for donations but that this is not a time to give away money. Asks if Craven would be willing to accept a modified version of the bill.
055	Craven	Responds that he is willing to look at any suggestions the committee has and points out that his industry pays more in taxes than receives in credits.
080	Sen. Ferrioli	Asks how much value the credit has produces since it was established.
085	Craven	Responds that he doesn’t have a number for the value.
090	Sen. Ferrioli	Points out that all equipment has to be new, current technology and declares his support for the bill.
115	Sen. Hannon	Points out that there are over 200 tax credits and that he would be willing to vote for a new one if he knew that the Republicans would vote for raising new revenues.
125	Sen. Ferrioli	Agrees with Sen. Hannon.
135	Sen. Deckert	Asks about the Credence investment. Discussion follows.

CLOSES PUBLIC HEARING ON SB 292

OPENS WORK SESSION ON SB 819

162	Sen. Hannon	MOTION: MOVES RULES BE SUSPENDED FOR THE PURPOSE OF RECONSIDERING THE VOTE ON SB 819.
165	Sen. Deckert	ORDER: ROLL CALL VOTE: MOTION PASSES: 4-0-2. SENATORS ANSWERING AYE: CORCORAN, HANNON, FERRIOLI, DECKERT. SENATORS EXCUSED: RINGO, STARR.
167	Sen. Hannon	MOTION: MOVES TO RECONSIDER THE VOTE BY WHICH THE COMMITTEE PASSES SB 819 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.
175	Sen. Hannon	States that he does support SB 819, but was not supportive of it being rushed out of the committee without looking at the broader issue of rural schools.
200	Sen. Deckert	ORDER: ROLL CALL VOTE: MOTION PASSES: 4-0-2. SENATORS ANSWERING AYE: CORCORAN, HANNON, FERRIOLI, DECKERT. SENATORS EXCUSED: RINGO, STARR.

CLOSES WORK SESSION ON SB 819

OPENS PUBLIC HEARING ON SB 415

212	Martin-Mahar	Explains SB 415, which allows licensed naturopathic physicians to qualify for the rural physicians’ income tax credit. Exhibit 13. Discusses revenue impact. Exhibit 14.
256	Art Keil	Testifies in support of SB 415 because it encourages naturopathic physicians to practice in rural Oregon. Discusses possible amendments to lower the fiscal impact. Refer to written testimony. Exhibit 17.
313	Chris Meletis	Testifies in support of SB 415. Gives background on naturopathic medicine and discusses the training and practice involved. Refer to written testimony. Exhibit 19.

TAPE 78, SIDE B

005	Sen. Deckert	Asks why the credit is needed if there are already naturopathic physicians in rural areas.
012	Keil	Responds that the intent was to create an incentive so that a few people in each graduating class would go to a rural town and points out that this just gives them the same opportunities that MD’s have.
022	Wayne Centrone	Testifies in support of SB 415 because it creates incentives for naturopathic physicians to practice in underserved populations. Refer to written testimony. Exhibit 20.
035	Sen. Hannon	Appreciates what the physicians are trying to do but points out that tax credits for MD’s and optometrists have not succeeded in drawing more people into rural areas.
060	Keil	Responds that SB 415 is different in that it is only for licensed physicians. Discussion follows.
075	Meletis	Responded that the motivation for the bill was patient care.
080	Sen. Deckert	Recommends that they write an amendment to lower the revenue impact to $50,000.

CLOSES PUBLIC HEARING ON SB 415

OPENS PUBLIC HEARING ON SB 492

096	Sen. Devlin	Introduces SB 492, which creates a personal income tax credit for taxpayers with outstanding principal on student loans. Testifies in support of SB 492 because it creates an incentive for students to pay off their loans in a timely manner.
188	Sen. Starr	Asks if the bill would cover family members paying for a loan.
190	Sen. Devlin	Responds positively.
200	Sen. Deckert	Challenges Sen. Devlin to make the bill revenue neutral.

CLOSES PUBLIC HEARING ON SB 492

OPENS PUBLIC HEARING ON SB 798

220	Martin-Mahar	Explains SB 798, which establishes a state income tax credit for teachers for any expenses incurred in the tax year for purchases of educational supplies. Discusses federal income tax credit. Exhibit 28.
271	Shawn Cleave	Testifies in support of SB 798 on behalf of Senator Clarno.
280	David Eaton	Testifies in support of SB 798 because teachers are very important in providing education to the student population. Expresses concern over excluding parochial schools. Refer to written testimony. Exhibit 29.
335	Cleave	Refers members to example of Arizona’s tax credit for teachers.
359	Sen. Deckert	States that to move the bill it would have to be revenue neutral.
364	Sen. Starr	Asks if would be possible to put a cap on the credit.
377	Martin-Mahar	Responds that the easiest way would be to set it at a certain level above what the federal credit level is. Discussion follows.
421	Marcia Kelley	Testifies in opposition to SB 798 because schools should be properly funded so that teachers don’t have to pay for materials out of their pockets. Refer to written testimony. Exhibit 30.

TAPE 79, SIDE B

CLOSES PUBLIC HEARING ON SB 798

035

Sen. Hannon

Asks Warner to get information to the committee on cutting tax credits to raise revenue. Discussion follows.

110

Sen. Deckert

Adjourns meeting at 2:41pm.

Tape Log Submitted by,

Tara Lantz, Committee Assistant

Exhibit Summary:

1. SB 550, Steve Meyer, Staff Measure Summary, 1p.

2. SB 550, Steve Meyer, Revenue Impact Statement, 1p.

3. SB 550, Steve Meyer, School Transportation Grant Estimates, 2pp.

4. SB 550, Steve Meyer, Fiscal Impact Statement, 1p.

5. SB 550, Steve Meyer, Proposed SB 550-3 Amendments, 22pp.

6. SB 550, Steve Meyer, Proposed SB 550-4 Amendments, 22pp.

7. SB 292, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

8. SB 292, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.

9. SB 292, Lizbeth Martin-Mahar, Fiscal Impact Statement, 1p.

10. SB 292, Jim Craven, Written Testimony from University of Oregon, 1p.

11. SB 292, Ron Adams, Written Testimony, 3pp.

12. SB 292, Marcia Kelley, Written Testimony, 3pp.

13. SB 415, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

14. SB 415, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.

15. SB 415, Lizbeth Martin-Mahar, Oregon Rural Hospitals, 1p.

16. SB 415, Art Keil, Oregon Association of Naturopathic Physicians Brochure, 2pp.

17. SB 415, Art Keil, Written Testimony, 3pp.

18. SB 415, Art Keil, List of Naturopathic Products, 5pp.

19. SB 415, Chris Meletis, Written Testimony, 3pp.

20. SB 415, Wayne Centrone, Written Testimony, 4pp.

21. SB 415, Art Keil, National College of Naturopathic Medicine Information Packet, 102pp.

22. SB 819, Steve Meyer, Staff Measure Summary, 1p.

23. SB 819, Steve Meyer, Revenue Impact Statement, 1p.

24. SB 819, Steve Meyer, Proposed SB 819-1 Amendments, 4pp.

25. SB 492, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

26. SB 492, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.

27. SB 492, Marcia Kelley, Written Testimony, 3pp.

28. SB 798, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

29. SB 798, David Eaton, Written Testimony, 2pp.

30. SB 798, Marcia Kelley, Written Testimony, 3pp.