PUBLIC HEARING AND WORK SESSION: HB 2664 A, HB 3184 A

 

WORK SESSION: HB 2186 A

 

TAPES 119, A-B

 

SENATE REVENUE COMMITTEE

May 12, 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: Randall Edwards, State Treasurer

Michael Parker, College Savings Network

Gratton Kerans, Oregon University System

Representative Deborah Kafoury, District 43

Rebecca Shine, State Advisory Committee to the Child Care Division

Lara Smith, Dave Barrows & Associates

 

Staff Present: Paul Warner, Legislative Revenue Office

Lizbeth Martin-Mahar, Legislative Revenue Office

Tara Lantz, Committee Assistant

 

TAPE 119, SIDE A

 

004

Chair Deckert

Calls meeting to order at 1:09 pm.

 

OPENS WORK SESSION ON HB 2186 A

 

013

Lizbeth Martin-Mahar

Explains HB 2186-A8 amendments (Exhibit 1), which clarifies the intent of the bill and resolves conflicts.

 

 

 

030

Sen. Deckert

Asks if the Department of Revenue is good with the amendments.

 

Affirmative nod.

 

 

 

033

Sen. Hannon

MOTION: MOVES HB 2186A8 AMENDMENTS DATED 5/8/03 BE ADOPTED.

 

 

 

037

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 4-0-2.

SENATORS EXCUSED: STARR, FERRIOLI.

 

 

 

039

Sen. Hannon

MOTION: MOVES HB 2186 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

045

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 5-0-1.

SENATORS ANSWERING AYE: CORCORAN, HANNON, RINGO, STARR, DECKERT.

SENATOR EXCUSED: FERRIOLI.

Sen. Deckert will carry the bill on the Senate Floor.

 

OPENS PUBLIC HEARING ON HB 2664 A

 

050

Martin-Mahar

Explains HB 2664, which allows contributions to the college savings network to be claimed as a deduction for 4 subsequent years and changes the name of the program (Exhibit 5). Discusses the revenue impact (Exhibit 6).

 

 

 

083

Randall Edwards

Testifies in support of HB 2664 because it provides an opportunity for Oregonians to save and invest. Discusses the success of the Oregon College Savings Program.

 

 

 

139

Michael Parker

Explains the major elements of HB 2664.

 

 

 

158

Sen. Hannon

Asks if the state is required to change the program here every time the federal code changes.

 

 

 

162

Parker

Responds affirmatively.

 

 

 

165

Sen. Hannon

Asks if the federal tax proposal would affect this as well.

 

 

 

170

Parker

Responds negatively.

 

Discussion follows.

 

 

 

178

Sen. Ringo

Asks about the assumptions made in the fiscal impact in regard to the tax deduction.

 

 

 

188

Edwards

Responds that the idea behind the bill is to front load the investment in order to see larger returns and that they dont have any idea if there will be an increase in investments.

 

 

 

205

Sen. Ringo

Asks why there is a tax reduction to the state of Oregon.

 

 

 

209

Parker

Responds that they dont believe it will dramatically increase the investment because most people now put in the amount of the deduction.

 

Discussion follows.

 

 

 

227

Martin-Mahar

Explains how the revenue impact was determined.

 

 

 

240

Sen. Deckert

Asks how many are contributing more than $2,000 a year.

 

 

 

242

Parker

Responds that the average account size is $3,700.

 

 

 

245

Sen. Deckert

Asks who would benefit from this bill.

 

 

 

251

Parker

Responds that most families have an income of at least $60,000 and have children that are about 7.5 years old.

 

 

 

253

Sen. Ringo

Points out that people could invest after the first year.

 

 

 

258

Martin-Mahar

Explains that after each year, it is assumed that a certain amount will roll forward to the next.

 

Discussion follows.

 

 

 

277

Edwards

States that it is hard to predict if people will invest more, but that he doubts they will see the estimated revenue impact.

 

 

 

292

Parker

States that only half of the investors took the deduction they were allowed.

 

Discussion follows.

 

 

 

334

Sen. Ringo

States that he is skeptical of the impact, but supports the idea.

 

 

 

338

Sen. Deckert

Asks what the rationale for giving additional reductions to families that are making over $60,000.

 

 

 

349

Parker

Responds that they are trying to target middle and low income residents and to get people to invest earlier to have larger returns.

 

 

 

376

Gratton Kerans

Testifies in support of HB 2664 because it is a great tool for low income residents to gain access to higher education.

 

CLOSES PUBLIC HEARING ON HB 2664 A

 

OPENS WORK SESSION ON HB 2664 A

 

TAPE 120, SIDE A

 

005

Sen. Ringo

MOTION: MOVES HB 2664 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

010

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 5-0-1.

SENATORS ANSWERING AYE: CORCORAN, HANNON, RINGO, FERRIOLI, DECKERT.

SENATOR EXCUSED: STARR.

Sen. Ringo will carry the bill on the Senate Floor.

 

CLOSES WORK SESSION ON HB 2664 A

 

OPENS PUBLIC HEARING ON HB 3184 A

 

014

Martin-Mahar

Explains HB 3184 which adds a definition for high quality child care and tax credit marketer (Exhibit 9). Discusses the A5 amendment, which makes changes to the administration of refunds for the working family tax credit (Exhibit 8).

 

 

 

053

Rep. Kafoury

Testifies in support of HB 3184 because it makes technical changes to the child care tax credit that passed last session but wasnt able to be implemented due to technical problems.

 

 

 

068

Rebecca Shine

Testifies in support of HB 3184 because it provides an incentive to the private sector to increase their investments in child care and benefits to children of low and moderate incomes. Refer to written testimony (Exhibit 11).

 

 

 

084

Lara Smith

Offers support for HB 3184.

 

Discussion follows.

 

 

 

097

Sen. Ringo

Expresses support for HB 3184.

 

 

 

103

Sen. Deckert

Asks for an example of how the program would work.

 

 

 

106

Shine

Explains the process of the program.

 

 

 

121

Sen. Deckert

Asks if this is modeled from another state.

 

 

 

123

Shine

Responds that it is modeled after the housing tax credit program.

 

CLOSES PUBLIC HEARING ON HB 3184 A

 

OPENS WORK SESSION ON HB 3184 A

 

132

Sen. Hannon

MOTION: MOVES HB 3184A5 AMENDMENTS DATED 5/12/03 BE ADOPTED.

 

 

 

135

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 5-0-1. SENATORS EXCUSED: STARR.

 

 

 

139

Sen. Hannon

MOTION: MOVES HB 3184 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

145

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 5-0-1.

SENATORS ANSWERING AYE: CORCORAN, HANNON, RINGO, FERRIOLI, DECKERT.

SENATORS EXCUSED: STARR.

Sen. Corcoran will carry the bill on the Senate Floor.

 

CLOSES WORK SESSION ON HB 3184 A

 

147

Sen. Deckert

Adjourns meeting at 1:45 pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

  1. HB 2186 A, Lizbeth Martin-Mahar, Proposed HB 2186-A8 Amendments, 10pp.
  2. HB 2186 A, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.
  3. HB 2186 A, Lizbeth Martin-Mahar, FTA Bulletin, 4pp.
  4. HB 2186 A, Lizbeth Martin-Mahar, Preliminary Revenue Impact, 2pp.
  5. HB 2664 A, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.
  6. HB 2664 A, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.
  7. HB 2664 A, Randall Edwards, Written Testimony, 2pp.
  8. HB 3184 A, Lizbeth Martin-Mahar, Proposed HB 3184-A5 Amendments, 5pp.
  9. HB 3184 A, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.
  10. HB 3184 A, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.
  11. HB 3184 A, Rebecca Shine, Written Testimony, 4pp.