PUBLIC HEARING: HB 2188

 

WORK SESSION: HB 2197 A

 

TAPES 126-127, A-B

 

SENATE REVENUE COMMITTEE

May 22, 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: Clint Bentz, Small Woodland Owner

Link Cannon, Oregon Forest Industries Council

Kristina McNitt, Oregon Small Woodlands Association

Norm Miller, Department of Revenue

 

Staff Present: Paul Warner, Legislative Revenue Office

Richard Yates, Legislative Revenue Office

Tara Lantz, Committee Assistant

 

TAPE 126, SIDE A

 

004

Chair Deckert

Calls meeting to order at 1:14 pm.

 

OPENS WORK SESSION ON HB 2197 A

 

030

Richard Yates

Explains HB 2197 A which establishes an optional small tract forestland program. Discusses the proposed A6 amendments (Exhibit 2) and A7 amendments (Exhibit 3).

 

 

 

104

Sen. Ringo

Asks how the revenue impact numbers were determined and whether the bill could be crafted to not have a negative revenue impact.

 

 

 

115

Yates

States that small wood lot owners argue that the bill is revenue neutral, but that he used his own assumptions about the behavior of the wood lot owners to determine the revenue impact. Explains that by raising the harvest tax up to cover costs, the incentive to enter the program is lost.

 

 

 

134

Sen. Ringo

Expresses concern over the negative fiscal impact.

 

 

 

142

Yates

Responds that if everyone eligible opted into the program it would raise revenue.

 

 

 

155

Clint Bentz

States that this program would allow land owners to control when they pay property taxes and that he is optimistic that most land owners would opt into the program even though they would end up paying more.

 

 

 

198

Sen. Ringo

Asks what could have been changed to make the bill revenue neutral.

 

 

 

202

Bentz

Responds that the assumption was that anyone harvesting within the next five years will not opt in, but points out that most land owners dont harvest every year.

 

Discussion follows.

 

 

 

220

Sen. Ferrioli

Points out that this bill comes after five years of work and that it has been well thought out. Expresses concern over not letting people opt in and opt out but expresses support for the amendments if it will allow the program to happen.

 

 

 

262

Sen. Hannon

Asks if the A5 and A6 are consistent with each other.

 

 

 

265

Sen. Deckert

Responds negatively.

 

 

 

268

Sen. Hannon

Asks which amendment is preferred.

 

 

 

272

Bentz

Responds that the A6 amendments are preferred and explains the reasoning. Discusses concerns that could be addressed in the future.

 

 

 

305

Link Cannon

Discusses the reasoning for the A7 amendments.

 

 

 

324

Sen. Deckert

States that the problem with the A5 amendments is that they dont allow for the transfer of property.

 

 

 

331

Kristina McNitt

Offers support for the bill and the amendments.

 

 

 

340

Sen. Hannon

MOTION: MOVES HB 2197-A6 AMENDMENTS DATED 5/22/03 BE ADOPTED.

 

 

 

345

Sen. Deckert

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

SENATORS ANWERING AYE: HANNON, RINGO, STARR, FERRIOLI, DECKERT.

SENATORS EXCUSED: CORCORAN.

 

 

 

349

Sen. Hannon

MOTION: MOVES HB 2197-A7 AMENDMENTS DATED 5/22/03 BE ADOPTED.

 

 

 

353

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES.

SENATORS EXCUSED: CORCORAN.

 

 

 

356

Sen. Hannon

MOTION: MOVES HB 2197 A TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

361

Sen. Ringo

States that he is a no because of the negative fiscal impact.

 

 

 

368

Sen. Deckert

Points out that the Governor has built the fiscal impact into the budget.

 

 

 

373

Sen. Hannon

States that this is an important bill to promote the reforestation of the state.

 

 

 

382

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 4-1-1.

SENATORS ANSWERING AYE: HANNON, STARR, FERRIOLI, DECKERT.

SENATORS ANSWERING NO: RINGO.

SENATORS EXCUSED: CORCORAN.

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

OPENS PUBLIC HEARING ON HB 2188

 

400

Yates

Explains HB 2188, which cleans up statutes made obsolete by Legislation in 2001 (Exhibit 4), and explains conflicts with the bill that need to be fixed.

 

TAPE 127, SIDE A

 

005

Sen. Deckert

Asks if they will need to hold the bill until they see what happens to HB 2197.

 

 

 

008

Yates

Responds affirmatively.

 

 

 

013

Norm Miller

Testifies in support of HB 2188 because it eliminates unnecessary work for the Department of Revenue and taxpayers. Refer to written testimony (Exhibit 6).

 

 

 

036

Sen. Ringo

Asks if this bill saves 2 full time employees.

 

 

 

039

Miller

Responds affirmatively.

 

 

 

040

Clint Bentz

Offers support for HB 2188.

 

 

 

048

Sen. Hannon

Asks if they want to hold off HB 2188 until HB 2197 passes.

 

 

 

052

Miller

Responds affirmatively.

 

CLOSES PUBLIC HEARING ON HB 2188

 

064

Sen. Deckert

Adjourns meeting at 1:47 pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

  1. HB 2197 A, Richard Yates, Proposed A5 Amendments, 1p.
  2. HB 2197 A, Richard Yates, Proposed A6 Amendments, 1p.
  3. HB 2197 A, Richard Yates, Proposed A7 Amendments, 1p.
  4. HB 2188, Richard Yates, Staff Measure Summary, 1p.
  5. HB 2188, Richard Yates, Fiscal Impact Statement, 1p.
  6. HB 2188, Norm Miller, Written Testimony, 1p.
  7. HB 2197 A, David Adams, Written Testimony, 1p.