PUBLIC HEARING: HB 3051 A, HB 2166 B

 

TAPES 124-125, A-B

 

SENATE REVENUE COMMITTEE

May 20, 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:††††††††††† ††††††††††† Ken Armstrong, Oregon Fire Chiefsí Association

††††††††††††††††††††††† ††††††††††† ††††††††††† Robert Garrison, State Fire Marshal

††††††††††††††††††††††† ††††††††††† ††††††††††† John Powell, State Farm & North Pacific Insurance

††††††††††††††††††††††† ††††††††††† ††††††††††† Lynn Partin, Oregon Housing and Community Services

††††††††††††††††††††††† ††††††††††† ††††††††††† Don Schellenberg, Oregon Farm Bureau

††††††††††††††††††††††† ††††††††††† ††††††††††† John McCulley, Tree Fruit Growers

††††††††††††††††††††††† ††††††††††† ††††††††††† Peter Hainley, Community and Shelter Assistance Corporation†††††††

 

Staff Present:††† ††††††††††† ††††††††††† Lizbeth Martin-Mahar, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Tara Lantz, Committee Assistant

 

TAPE 124, SIDE A

 

004

Chair Deckert

Calls meeting to order at 1:10 pm.

 

OPENS PUBLIC HEARING ON HB 3051 A

 

010

Lizbeth Martin-Mahar

Explains HB 3051 A which allows insurance companies to impose a new assessment on property and casualty insurance policy holders in order to recoup the Oregon Insurance Guaranty Association assessment which insurance companies pay (Exhibit 1). Discusses current law and reasoning for changes (Exhibit 2).

 

 

 

150

Martin-Mahar

Discusses revenue impact (Exhibit 3).

 

 

 

286

Sen. Ringo

Asks if the bill includes auto insurance companies.

 

 

 

293

Martin-Mahar

Responds that she doesnít believe so.

 

 

 

308

John Powell

Explains that each type of insurance that has a fire insurance component, such as home owner policies, are subject to a tax that goes to the fire marshals and other programs. Gives background of the bill and the reasoning behind it.

 

 

 

360

Sen. Ringo

Asks if the bill would affect the cost of auto insurance.

 

 

 

361

Powell

Responds that the affect would be small.

 

 

 

372

Sen. Ringo

Asks for an estimate of the affect on auto insurance.

 

 

 

373

Powell

Responds that he doesnít know.

 

 

 

380

Sen. Ringo

Asks if this bill was brought to them because companies are going out of business due to 9-11.

 

 

 

383

Powell

Responds that only a small number are directly related to 9-11, but that many are workerís comp companies.

 

Discussion follows.

 

TAPE 125, SIDE A

 

023

Ken Armstrong

Testifies in support of HB 3051 because the fire marshal office funding is being threatened. Refer to written testimony (Exhibit 4).

 

 

 

051

Robert Garrison

Discusses programs that are at risk due to lack of funding. Refer to written testimony (Exhibit 5).

 

 

 

088

Sen. Ringo

Asks if this bill is charging automobile drivers for the use of fire protection when the nexus used to be directly connected with fire insurance.

 

 

 

094

Powell

Responds that automobile insurance premiums currently include the tax for the fire protection component.

 

Discussion follows.

 

 

 

114

Powell

Explains why other states generally charge higher insurance rates compared to Oregon.

 

CLOSES PUBLIC HEARING ON HB 3051 A

 

OPENS PUBLIC HEARING ON HB 2166 B

 

155

Martin-Mahar

Explains HB 2166 which (Exhibit 7). Discusses revenue impact (Exhibit 8).

 

 

 

203

Lynn Partin

Gives background of the Farm worker Housing Tax Credit and testifies in support of HB 2166 because it makes improvements to the credit in order to maximize its use. Refer to written testimony (Exhibit 9).

 

 

 

273

Don Schellenberg

Offers support for HB 2166 on behalf of farm workers who are greatly in need of housing. Refer to written testimony (Exhibit 10).

 

 

 

293

John McCulley

Testifies in support of HB 2166. Refer to written testimony (Exhibit 11).

 

 

 

323

Sen. Hannon

Asks about the procedure for transferring tax credits.

 

 

 

330

Partin

Responds that the procedure is simple and essentially contractual.

 

 

 

359

Sen. Hannon

Asks if there is any follow up to ensure the farm worker housing was built and maintained.

 

 

 

369

Partin

Responds that in most cases the Department of Revenue uses audits to ensure that individuals and corporations are held accountable and discusses future plans to solve the problem of accountability. Points out that the credits arenít issued until the housing is already built.

 

TAPE 124, SIDE B

 

016

Sen. Hannon

Asks about permits being included in eligible costs.

 

 

 

020

Partin

Responds that local fees are included in costs.

 

Discussion follows.

 

 

 

046

Sen. Deckert

Expresses concern that the bill begins in 2005.

 

 

 

052

Partin

Responds that they would have been happy to begin it now, but they didnít have the votes in the house revenue committee. Points out that they canít give out any more credits, but are just wishing to carry out the ones they have already issued.

 

 

 

064

Sen. Ferrioli

States that this is good public policy and they should just do it even if it doesnít start until 2005.

 

 

 

076

Peter Hainley

Testifies in support of HB 2166 because it will ensure that these tax credits get used in the most efficient manner. Refer to written testimony (Exhibit 12).

 

CLOSES PUBLIC HEARING ON HB 2166 B

 

127

Sen. Deckert

Adjourns meeting at 2:15 pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

  1. HB 3051, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.
  2. HB 3051, Lizbeth Martin-Mahar, Current Law, 3pp.
  3. HB 3051, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.
  4. HB 3051, Ken Armstrong, Written Testimony, 3pp.
  5. HB 3051, Robert Garrison, Written Testimony, 2pp.
  6. HB 3051, Dianne Middle, Written Testimony, 2pp.
  7. HB 2166, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.
  8. HB 2166, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.
  9. HB 2166, Lynn Partin, Written Testimony, 2pp.
  10. HB 2166, Don Schellenberg, Written Testimony, 1p.
  11. HB 2166, John McCulley, Written Testimony, 1p.
  12. HB 2166, Peter Hainley, Written Testimony, 1p.