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 Chiefs’ 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 doesn’t 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 doesn’t 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 worker’s 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 aren’t 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 didn’t have the votes in the house revenue committee. Points out that they can’t 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 doesn’t 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.