WORK SESSION: SB 747, HB 2186 A

PUBLIC HEARING: HB 2379 A, HB 2380

TAPES 103-104, A-B

SENATE REVENUE COMMITTEE

April 23, 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: Representative Deborah Kafoury, District 43

John Christensen, Senator Margaret Carter’s Office

Marge Kafoury, City of Portland

Mike Saba, City of Portland, Bureau of Planning

Jeanne Arana, Oregon Housing and Community Services

Dan Gardner, Labor Commissioner

David Nebel, Oregon Law Center

Rob Douglas, Oregon Society of Certified Public Accountants

Kim Spaulding, Certified Public Accountant

Robert Carus, Certified Public Accountant

Bruce Krohn, Certified Public Accountant

Staff Present: Paul Warner, Legislative Revenue Office

Steve Meyer, Legislative Revenue Office

Lizbeth Martin-Mahar, Legislative Revenue Office

Mazen Malik, Legislative Revenue Office

Tara Lantz, Committee Assistant

TAPE 103, SIDE A

005

Chair Deckert

Calls meeting to order at 1: 12pm.

OPENS PUBLIC HEARING ON HB 2379

014	Mazen Malik	Explains HB 2379 A, which extends by 10 years the sunset provision of tax exemption for housing in urban distressed areas. Exhibit 1. Discusses the -2 and -3 amendments. Exhibits 2-3.
059	Rep. Kafoury	Testifies in support of HB 2379 and HB 2380 because it is important in providing low income housing to residents of Portland and offers support for the –A2 and –A3 amendments.
071	John Christensen	Testifies in support of HB 2379 on behalf of Senator Carter because it is critical for low income residents and offers support for the –A2 and –A3 amendments.
082	Marge Kafoury	Testifies in support of HB 2379, stating that there is no opposition. Offers support for the –A2 and –A3 amendments.
099	Mike Saba	Testifies in support of HB 2379 because it would allow the program adopted by Portland in 1991 of providing tax exemptions for new housing in urban distressed areas to continue. Discusses the success of the program. Refer to written testimony. Exhibit 5.
125	Malik	Adds that there is an expansion in the bill from single family units to multi-family units.
130	Sen. Deckert	Asks if Oregonians in Action is still trying to amend the bill.
135	M. Kafoury	Responds negatively.
140	Jeanne Arana	Testifies in support of HB 2379 with the –A2 amendments because it would support fair housing practices and sets up penalties for discrimination. Refer to written testimony. Exhibit 6.

CLOSES PUBLIC HEARING ON HB 2379

OPENS WORK SESSION ON SB 747

200	Sen. Ferrioli	MOTION: MOVES SB 747 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION AND A SUBSEQUENT REFERRAL TO THE WAYS AND MEANS COMMITTEE.
205	Sen. Deckert	ORDER: ROLL CALL VOTE: MOTION PASSES: 4-2-0. SENATORS ANSWERING AYE: CORCORAN, HANNON, STARR, FERRIOLI. SENATORS ANSWERING NO: RINGO, DECKERT.

CLOSES WORK SESSION ON SB 747

OPENS PUBLIC HEARING ON HB 2379

224	Dan Gardner	Testifies in support of the –A3 amendments because it allows the Bureau of Labor and Industries to contract with the United States Housing and Urban Development to raise revenues needed to investigate housing discrimination complaints. Refer to written testimony. Exhibit 7.
249	David Nebel	Testifies in support of –A2 amendments because they would prevent discrimination by landlords of domestic violence victims. Explains that the amendment does not have anything to do with the substance of the bill.

CLOSES PUBLIC HEARING ON HB 2379

OPENS PUBLIC HEARING ON HB 2186

330	Rob Douglas	Introduces book that discusses the changes resulting from federal tax reform (Exhibit 5 from 4/17/03 meeting) and three CPA’s who are going to review it.
360	Kim Spaulding	Gives brief overview of book, An Analysis of Changes Resulting From. Exhibit 5 from 4/17/03 meeting.
380	Robert Carus	Discusses the Economic Growth and Tax Relief Reconciliation Act of 2001. Discussion follows.
389	Bruce Krohn	Discusses 457 plans (Act Section 641).

TAPE 104, SIDE A

006	Spaulding	Discusses tax deadlines and sunset provisions (Act Sections 801, 802, 901). Discusses the Victims of Terrorism Tax Relief Act of 2001.
031	Krohn	Discusses the Job Creation and Worker Assistance Act of 2002. Discussion follows.
057	Spaulding	Discusses missing children as dependents (Act Section 412) and the exclusion for employer-provided educational assistance.
073	Carus	Discusses foreign sales corporation rules (Act Section 2-3 of the FSC Repeal and Extraterritorial Income Exclusion Act of 2000). Discussion follows.
100	Spaulding	Discusses the Community Renewal Tax Relief Act of 2000, the Installment Tax Correction Act of 2000, and the Economic Growth and Tax Relief Reconciliation Act of 2001.
135	Carus	Discusses changes in estate taxes due to the Economic Growth and Tax Reconciliation Act of 2001.
145	Krohn	Discusses IRA’s (Act Sections 601-602) and contribution plans (Act Sections 611, 613-617, 631, 631-32, 635, 641-44, 647, 649, 651,-52, 654, 656, 658, 662, 665, 667). Questions and answers interspersed.
310	Spaulding	Discusses the Victims of Terrorism Tax Relief Act of 2001.
320	Krohn	Discusses the Job Creation and Worker Assistance Act of 2002. Discussion follows.
390	Spaulding	Continues discussion of the Job Creation and Worker Assistance Act of 2002 (Act Sections 402-406, 411-418). Questions and answers interspersed.

TAPE 103, SIDE B

040	Sen. Deckert	Asks for any general guidance on the reconnect or disconnect bill.
042	Spaulding	Responds that the CPA’s would be happy to provide assistance with any changes to the bill and any questions.
045	Sen. Corcoran	Thanks the CPA’s for not opposing the disconnects to get through the financial situation even though it creates more work for themselves.
063	Martin-Mahar	Explains the –A7 amendments which fix the problem of disconnecting from depreciation.

CLOSES PUBLIC HEARING ON HB 2186

OPENS PUBLIC HEARING ON HB 2380

118	Malik	Explains HB 2380 which allows for application of property tax exemption of multiple-unit low income housing property to be filed prior to the property being subject to a housing assistance contract. Exhibit 11.
145	Marge Kafoury	Testifies in support of HB 2380 because it is helps keep housing affordable.
155	Saba	Testifies in support of HB 2380 because it is crucial in providing affordable housing. Refer to written testimony. Exhibit 14.
175	Sen. Ferrioli	States that this bill is very specific and has a proven track record.

CLOSES PUBLIC HEARING ON HB 2380

200	Sen. Deckert	States that they will bring back HB 2535 for a public hearing next week.
205	Sen. Deckert	Adjourns meeting at 2:24pm.

Tape Log Submitted by,

Tara Lantz, Committee Assistant

Exhibit Summary:

1. HB 2379 A, Mazen Malik, Staff Measure Summary, 1p.

2. HB 2379 A, Mazen Malik, Proposed –A2 Amendments, 9pp.

3. HB 2379 A, Mazen Malik, Proposed –A3 Amendments, 14pp.

4. HB 2379 A, Mazen Malik, Tax Expenditure 2.030 from the Tax Expenditure Report, 2pp.

5. HB 2379 A, Mike Saba, Written Testimony, 2pp.

6. HB 2379 A, Jeanne Arana, Written Testimony, 2pp.

7. HB 2379 A, Dan Gardner, Written Testimony, 1p.

8. SB 747, Lizbeth Martin-Mahar, Fiscal Impact Statement, 1p.

9. HB 2186, Lizbeth Martin-Mahar, Proposed –A7 Amendments, 3pp.

10. HB 2186, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

11. HB 2380, Mazen Malik, Staff Measure Summary, 1p.

12. HB 2380, Mazen Malik, Tax Expenditure 2.032 from the Tax Expenditure Report, 2pp.

13. HB 2380, Mazen Malik, Tax Expenditure 2.033 from the Tax Expenditure Report, 1p.

14. HB 2380, Mike Saba, Written Testimony, 3pp.

15. HB 2535, Mazen Malik, Staff Measure Summary, 1p.

16. HB 2535, Mazen Malik, Tax Expenditure 2.036 from the Tax Expenditure Report, 2pp.