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WORK SESSION: SB 362, SB 858, SB 313 |
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TAPES 95-96,
A-B |
April 16,
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: Veronica Rinard, Oregon Film and
Video Office
Dexter
Johnson, Legislative Counsel
Scott
Gibson, Oregon Council for Knowledge and Economic Development
Staff Present: Paul
Warner, Legislative Revenue Office
Mazen
Malik, Legislative Revenue Office
Lizbeth
Martin-Mahar, Legislative Revenue Office
Tara
Lantz, Committee Assistant
TAPE
95, SIDE A
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003 |
Chair Deckert |
Calls meeting to order at 1:07pm. |
OPENS WORK SESSION ON SB 858
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075 |
Mazen Malik |
Explains SB 858, which reduces the
minimum investment level and permits modification of employment level
required to qualify for enterprise zone property tax exemption and the -1
amendments, which increases the investment limit to $20 million and deletes
the refund for paid taxes. |
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100 |
Sen. Ringo |
MOTION: MOVES SB 858-1 AMENDMENTS
DATED 3/6/03 BE ADOPTED. |
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103 |
Sen. Deckert |
ORDER: HEARING NO OBJECTION, MOTION
PASSES: 5-0-1. SENATOR EXCUSED: STARR. |
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105 |
Sen. Ringo |
MOTION: MOVES SB 858 TO THE SENATE
FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION. |
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107 |
Sen. Corcoran |
Discusses concerns by labor over the
bill. |
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125 |
Sen. Hannon |
Explains why he is a no vote. |
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135 |
Sen. Deckert |
ORDER: ROLL CALL VOTE: MOTION
PASSES: 5-1-0. SENATORS ANSWERING AYE: CORCORAN,
RINGO, STARR, FERRIOLI, DECKERT. SENATORS ANSWERING NO: HANNON Sen. Winters will carry the bill on
the Senate Floor. |
CLOSES WORK SESSION ON SB
858
OPENS WORK SESSION ON SB 313
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147 |
Sen. Deckert |
Explains that SB 313 has been used
as a vehicle for the film industry. |
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152 |
Paul Warner |
Explains SB 313, which is an
alternative to SB 79 and would allow people to purchase tax credits and then
make a donation into the Film Development Fund to be used to offset the cost
of production in Oregon. |
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175 |
Veronica Rinard |
Explains that they are looking at
tax credits as an alternative to using general fund money and why they do not
just give tax credits to production companies. Explains the process of selling
tax credits and issues with it. Discusses other states incentives. States
that this is her second choice. |
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279 |
Warner |
Explains the revenue impact of SB
313. Discussion follows. |
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310 |
Sen. Ringo |
Asks what other states use as a
revenue source. |
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315 |
Rinard |
Responds that most other states use
general funds or lottery funds and use it as an economic development program. |
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327 |
Sen. Ringo |
Asks what the problem was with SB
79. |
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335 |
Rinard |
Responds that it would be difficult
to take money from the general fund in this budget time. |
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353 |
Sen. Deckert |
States that SB 79 needs to go to
Ways and Means and this is the proposal to keep a bill from going there. |
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356 |
Sen. Ringo |
Asks about retaining a tax credit
marketer. |
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359 |
Rinard |
Responds that one requirement is
that they have to obtain a tax credit marketer and that she would change the
language to just a marketer. |
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368 |
Sen. Ringo |
Asks what the transaction costs are
there with the tax credits. |
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373 |
Rinard |
Responds that it depends on whether
the federal government decides to label the purchase of tax credits as a
charitable donation and discusses the costs of a tax credit marketer. |
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390 |
Sen. Ringo |
Asks if there is a case pending on
the federal issue. |
TAPE 96, SIDE A
CLOSES WORK SESSION ON SB
313
OPENS WORK SESSION ON SB 362
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003 |
Scott Gibson |
Explains the intent of SB 362 of
providing an incentive only for people who would move from out of the state
and invest in Oregon. States that only two people in Oregon would qualify and
that he could get letters from them saying they would not try to obtain the
credit. Discusses the -2 amendments, which tighten the language and make it
more difficult to qualify. |
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033 |
Sen. Starr |
MOTION: MOVES SB 362-2 AMENDMENTS
DATED 4/15/03 BE ADOPTED. |
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037 |
Sen. Deckert |
ORDER: HEARING NO OBJECTION, MOTION
PASSES: 5-0-1. SENATOR EXCUSED: CORCORAN. |
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040 |
Sen. Starr |
MOTION: MOVES SB 362 TO THE SENATE
FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION. |
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043 |
Sen. Hannon |
States that in these economic times
he cannot vote for a bill to give tax breaks. |
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052 |
Gibson |
Reiterates that only two people in
Oregon would qualify for the credit and that it would only bring revenues in.
Discussion follows. |
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080 |
Sen. Ferrioli |
States that he would like to have
the letters from the two qualified Oregon capital venture firms that they
would not be applying for this incentive before the bill is moved. |
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090 |
Sen. Deckert |
States that he feels comfortable
moving the bill forward and obtaining the letters for the floor speech. |
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100 |
Sen. Ferrioli |
States that he supports the concept
but doesn’t see any reason why they can’t wait a day or two to move the bill
forward. |
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109 |
Sen. Deckert |
Responds that they will hold the
bill for a couple of days. |
CLOSES WORK SESSION ON SB
362
OPENS WORK SESSION ON SB 313
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116 |
Dexter Johnson |
Discusses the process at the state
and federal level to determine whether purchasing tax credits could be used
as a charitable donation. |
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144 |
Sen. Ringo |
Asks if a child care contribution
could be looked upon differently than one for film. |
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147 |
Johnson |
Responds that it is a contribution
to a state agent and it would not matter. |
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150 |
Sen. Ferrioli |
Asks if a disconnect from the
federal code would affect this. |
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159 |
Johnson |
Responds that there is specific
language in the child care division tax credit that deals with that question
and that the changes are legislative changes so the question of connect and
disconnect does not arise. |
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169 |
Sen. Deckert |
States that they will bring the bill
back next week. |
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174 |
Rinard |
Responds that they will do further
research and discusses problems with SB 313. |
CLOSES WORK SESSION ON SB
313
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190 |
Sen. Deckert |
Adjourns meeting at 1:49pm. |
Tape Log Submitted by,
Tara Lantz, Committee Assistant
Exhibit Summary:
1.
SB 858, Mazen Malik, Staff Measure Summary, 1p.
2.
SB 858, Mazen Malik, Revenue Impact Statement, 1p.
3.
SB 858, Betsy Earls, Written Testimony, 1p.
4.
SB 313, Paul Warner, Proposed SB 313-1 Amendments, 4pp.
5.
SB 313, Veronica Rinard, Written Testimony, 4pp.
6.
SB 313, Williamson-Smith, Written Testimony, 1p.
7.
SB 362, Lizbeth Martin-Mahar, Proposed SB 362-2 Amendments,
8pp.
8.
SB 362, Lizbeth Martin-Mahar, Staff Measure Summary, 2pp.
9.
SB 362, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.