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PUBLIC HEARING: SB 362, SB 778 |
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TAPES 84-85,
A-B |
April 8,
2003 1:00 PM STATE CAPITOL BUILDING
Members Present: Senator Ryan Deckert, Chair
Senator Ted
Ferrioli, Vice Chair
Senator
Charlie Ringo
Senator
Bruce Starr
Members Excused: Senator Tony Corcoran
Senator
Lenn Hannon
Witnesses Present: Allen Ally, Oregon Council on
Knowledge and Economic Development
Scott
Gibson, Oregon Council on Knowledge and Economic Development
Keith
Barnes, Former Venture Capitalist
Jim
Johnson, Former Plant Manager, Intel
Michael
Slater, Revenue Coalition
Patrick
Green, Revenue Coalition
James
Hamrick, Parks and Recreation Department
Kevin
Montgomery Smith, Portland Business Alliance
Staff Present: Paul
Warner, Legislative Revenue Office
Lizbeth
Martin-Mahar, Legislative Revenue Office
Tara
Lantz, Committee Assistant
TAPE
84, SIDE A
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004 |
Chair Deckert |
Calls meeting to order at 1:07pm |
OPENS PUBLIC HEARING ON SB
362
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010 |
Lizbeth Martin-Mahar |
Explains SB 362 which provides an
income tax exemption for 7 years for venture capitalists and senior research
faculty. Exhibit 2. Discusses proposed SB 362-1 amendment (Exhibit 1) and
issues that add to the uncertainty of a revenue impact. Exhibit 3. |
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090 |
Allen Ally |
Discusses his own venture capital
company and his experiences with tax incentives. Testifies in support of SB
362 because surrounding states already have the tax expenditures in place,
putting Oregon at a disadvantage. |
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124 |
Scott Gibson |
Stresses that SB 362 has such high
standards that it would only benefit top venture capitalists who move to
Oregon and points out that a person must invest $2 million each year. Points
out that it is revenue neutral because the two people in Oregon who could
qualify have agreed not to apply. |
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202 |
Keith Barnes |
Discusses his own venture capital
experience. Testifies in support of SB 362 because it would draw companies
from outside the state to invest in the companies in Oregon. |
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268 |
Sen. Ringo |
Asks about the ambiguity of the
bill. |
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270 |
Sen. Deckert |
Asks Gibson to meet with revenue
staff to discuss any amendments that need to be drawn up. |
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287 |
Gibson |
Responds that they can tighten the
language to ensure that people must apply every year and must have primary
residence in Oregon. Discussion follows. |
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330 |
Jim Johnson |
Discusses the difference between
venture capitalists and other companies and testifies in support of SB 362
because providing incentives will make Oregon a world leader in technology research.
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TAPE 85, SIDE A
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015 |
Sen. Deckert |
States that it seems to him that
this bill is revenue positive. |
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020 |
Gibson |
Discusses new jobs and new revenues
that would be created from SB 362. Discussion follows. |
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044 |
Michael Slater |
Testifies in opposition to SB 362
because it creates a new tax expenditure but fails to remove a tax
expenditure in its place, is taxes workers but does not tax investors, and it
gives investors breaks when state agencies are suffering. |
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080 |
Patrick Green |
Adds that an OTIM analysis needs to
be done before the bill should be passed in order to see how many jobs would
be created and that they should be looking at providing incentives for
industries already in Oregon that has suffered from the recession. |
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108 |
Sen. Deckert |
Asks how SB 362 could have a
negative revenue impact. |
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120 |
Green |
Responds that it could be an
oversight in reading the bill, but that he needs to know how many jobs would
be created from it. |
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131 |
Sen. Deckert |
Declares that one job is better than
none. Discussion follows. |
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145 |
Sen. Ferrioli |
Points out that they are trying to
move towards accountability with tax expenditures by weighing the expenses
against the benefits and that industrial jobs take much more investment to
get the same benefit. |
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177 |
Sen. Ringo |
States that he is persuaded that SB
362 would not take money away from the general fund and that it would only
bring people and their money to Oregon. |
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196 |
Green |
Responds that they won’t know if it
would take away money until the revenue impact is issued. |
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214 |
Sen. Starr |
States that the bill is about adding
value to the general fund and not reallocating them. |
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247 |
Sen. Deckert |
Discusses intent of bill to provide
for economic growth. |
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248 |
Slater |
Responds that they have a difference
in philosophy. |
CLOSES PUBLIC HEARING ON SB
362
OPENS PUBLIC HEARING ON SB
778
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300 |
Sen. Starr |
Introduces SB 778 and discusses the
intent of using the relating clause to look at using historical rehabilitation
as an economic development tool. |
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333 |
James Hamrick |
Discusses long time support of the
historic property tax credit concept but expresses opposition to SB 778
because it would benefit large commercial interests and not small commercial
interests and residential historic properties. |
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419 |
Sen. Deckert |
Asks if Parks and Recreation should
administer this bill. |
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421 |
Hamrick |
Responds that the Parks department
has been managing all of the state and federal historic programs for over
thirty years and that they have all the resources to run it. Discussion follows. |
TAPE 84, SIDE B
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028 |
Kevin Montgomery Smith |
Testifies against SB 788, giving
several ideas on how the program could be improved. Discusses programs in
other states. |
CLOSES PUBLIC HEARING ON SB
788
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119 |
Sen. Deckert |
Adjourns meeting at 2:12pm. |
Tape Log Submitted by,
Tara Lantz, Committee Assistant
Exhibit Summary:
1.
SB 362, Lizbeth Martin-Mahar, Proposed SB 362-1 Amendments,
1p.
2.
SB 362, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.
3.
SB 362, Lizbeth Martin-Mahar, Issues Which Add to
Uncertainty of Revenue Impact, 1p.
4.
SB 778, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.
5.
SB 778, James Hamrick, Written Testimony, 1p.