WORK SESSION: HB 2168, HB 2372, SJR 18

 

TAPES 163-164, A

 

SENATE REVENUE COMMITTEE

August 11, 2003   2:30 PM   STATE CAPITOL BUILDING

 

Members Present:                        Senator Ryan Deckert, Chair

                                                Senator Ted Ferrioli, Vice Chair

                                                Senator Tony Corcoran

                                                Senator Lenn Hannon

                                                Senator Rick Metsger

                                                Senator David Nelson

                                                Senator Charlie Ringo

                                                Senator Bruce Starr

 

Witnesses Present:                        Jim Geisinger, Associated Oregon Loggers

                                                Gil Riddell, Association of Oregon Counties

                                                Hasina Squires, Special Districts Association of Oregon

                                                Senator Frank Morse, District 8                      

 

Staff Present:                            Paul Warner, Legislative Revenue Office

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                Tara Lantz, Committee Assistant

 

TAPE 163, SIDE A

 

004

Chair Deckert

Calls meeting to order at 2:37 pm.

 

OPENS WORK SESSION ON HB 2372

 

017

Lizbeth Martin-Mahar

Explains HB 2372-A3 amendments (Exhibit 1) which extend the sunset date from July 1, 2008 to July 1, 2012. Refer to staff measure summary (Exhibit 2). Discusses the revenue impact (Exhibit 3).

 

 

 

031

Jim Geisinger

Testifies in support of the bill because it allows loggers to stay in business and states that the loggers are okay with the amendment because they know more time will just add to the proof that the exemption is successful.

 

 

 

053

Sen. Metsger

Asks who has utilized this credit and what kind of equipment qualifies for the exemption.

 

 

 

056

Geisinger

Responds that the type of equipment involved is largely ground-based forwarders and processors that can take down a standing tree and load it on to a forwarding, leaving a very light touch on the land.

 

 

 

072

Sen. Metsger

Asks if this applies to air equipment.

 

 

 

075

Geisinger

Responds that it only applies to land equipment.

 

 

 

080

Gil Riddell

Testifies in support of the amendment because it adds the four year clause rather than eliminating the sunset in order to make sure it is a responsible exemption.

 

 

 

085

Hasina Squires

Testifies that they don’t support eliminating exemptions but they do support the amendment to extend it four additional years.

 

 

 

092

Riddell

Explains that local governments pay for exemptions, which is why they are there.

 

 

 

098

Sen. Starr

MOTION: MOVES HB 2372-A3 AMENDMENTS DATED 7/18/03 BE ADOPTED.

 

 

 

103

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 7-0-1.

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

SENATOR EXCUSED: FERRIOLI.

 

 

 

105

Sen. Starr

MOTION: MOVES HB 2372 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

109

Sen. Ringo

States that he understands that there are reasons for exemptions but he does not think this is an appropriate tax break.

 

 

 

115

Sen. Starr

Thanks the chair for working with parties to come to an agreement.

 

 

 

119

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 7-1-1.

SENATOR ANSWERING AYE: CORCORAN, HANNON, METSGER, NELSON, STARR, DECKERT.

SENATOR ANSWERING NO: RINGO.

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

 

OPENS WORK SESSION ON SJR 18

 

130

Paul Warner

Discusses SJR 18-4 amendments (Exhibit 4) which replaces the original bill. Refer to staff measure summary (Exhibit 5). Discusses revenue impact (Exhibit 6).

 

 

 

146

Sen. Morse

Discusses the need for a stability fund and the debate on also having a spending limit. Discusses analysis of unfunded voter initiatives compared to growth in spending and income levels (Exhibit 7).

 

 

 

210

Warner

Elaborates on the analysis of initiatives and expenditures.

 

 

 

258

Sen. Morse

Asks that the committee keep the kicker bills in the mix by allowing them to go to the floor for a vote.

 

 

 

271

Sen. Metsger

Discusses the argument that there is an inherent spending cap. Asks how this measure is a spending limitation as well as a saving mechanism.

 

 

 

295

Sen. Morse

Responds that there is an implied spending limit in the bill because they have lowered the threshold to anything over 1 percent going into the stability fund. States that there is a reasonable possibility that the kicker will kick in this biennium, creating a bigger hole.

 

 

 

326

Sen. Hannon

States that he would be more supportive if they were putting a referendum to the voters to repeal the kicker because people won’t understand the shifting of funds. Asserts that this won’t create discipline in the Legislature, citing the increase in spending at the same time the kicker was refunded.

 

 

 

368

Sen. Morse

Responds that this bill does create a discipline for saving.

 

 

 

378

Sen. Hannon

Replies that those were the same words used when the kicker was created.

 

 

 

392

Sen. Ferrioli

Agrees that citizens have difficulty understanding the kicker but that they understood it enough to vote it into the Constitution. States that even though he opposed the bill originally, they should be flexible as possible to keep options alive and that he will support it here today to keep it alive.

 

TAPE 164, SIDE A

 

021

Sen. Starr

MOTION: MOVES SJR 18-4 AMENDMENTS DATED 8/11/03 BE ADOPTED.

 

 

 

024

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 6-1-1.

SENATORS ANSWERING AYE: CORCORAN, METSGER, NELSON, STARR, FERRIOLI, DECKERT.

SENATOR ANSWERING NO: HANNON.

SENAOTR EXCUSED: RINGO.

 

 

 

028

Sen. Starr

MOTION: MOVES SJR 18 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

031

Sen. Starr

States that he was opposed to the original bill and reserves the right to vote no on the floor, but that he promised to help move it out of committee.

 

 

 

037

Sen. Ferrioli

States that he reserves the right to vote no on the floor but will pass it out of committee as a courtesy to the chair.

 

 

 

044

Sen. Metsger

Offers support for the bill and disagrees that the public wouldn’t understand this referendum.

 

 

 

074

Sen. Morse

States that he has only received one negative response from his constituents.

 

 

 

082

Sen. Deckert

Asks if Sen. Morse would be willing to organize a campaign on behalf of the referendum.

 

 

 

084

Sen. Morse

Responds affirmatively.

 

 

 

090

Sen. Nelson

States that something needs to be done but he doesn’t know if this it. Reserves the right to vote no on the floor after a more careful analysis of the measure.

 

 

 

096

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 6-1-1.

SENATORS ANSWERING AYE: CORCORAN, METSGER, NELSON, STARR, FERRIOLI, DECKERT.

SENATOR ANSWERING NO: HANNON.

SENATOR EXCUSED: RINGO.

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

 

OPENS WORK SESSION ON HB 2168

 

111

Warner

Explains HB 2168-4 amendments (Exhibit 10) which makes statutory changes occurring from SJR 18. Refer to staff measure summary (Exhibit 9).

 

 

 

135

Sen. Starr

MOTION: MOVES TO CONCEPTUALLY AMEND HB 2168-A4 AMENDMENTS DATED 8/11/03 BY REPLACING SJR 2 ON PAGE 9, LINES 10 AND 15 WITH SJR 18.

 

 

 

142

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 7-0-1.

SENATOR EXCUSED: RINGO.

 

 

 

145

Sen. Starr

MOTION: MOVES HB 2168-A4 AMENDMENTS DATED 8/11/03 BE ADOPTED AS CONCEPTUALLY AMENDED.

 

 

 

150

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 6-1-1.

SENATORS ANSWERING AYE: CORCORAN, METSGER, NELSON, STARR, FERRIOLI, DECKERT.

SENATOR ANSWERING NO: HANNON.

SENATOR EXCUSED: RINGO.

 

 

 

155

Sen. Starr

MOTION: MOVES HB 2168 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

165

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 6-1-1.

SENATORS ANSWERING AYE: CORCORAN, METSGER, NELSON, STARR, FERRIOLI, DECKERT.

SENATOR ANSWERING NO: HANNON.

SENATOR EXCUSED: RINGO.

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

 

170

Sen. Ferrioli

MOTION: MOVES THE RULES BE SUSPENDED FOR THE PURPOSE OF RECORDING A VOTE ON THE MOTION BY WHICH HB 2372 WAS SENT TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION. * (Refer to tape 163, side A, meter 105)

 

 

 

175

Sen. Deckert

ORDER: HEARING NO OBJECTION, SO ORDERED.

SENATORS EXCUSED: CORCORAN, HANNON, RINGO.

 

 

 

177

Sen. Ferrioli

Asks to be recorded as an aye vote.   

 

 

 

180

Sen. Deckert

Records that Sen. Ferrioli is an aye vote on HB 2372.

 

185

Sen. Deckert

Adjourns meeting at 3:17 pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

  1. HB 2372, Sen. Deckert, Proposed HB 2372-A3 Amendments, 1p.
  2. HB 2372, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.
  3. HB 2372, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.
  4. SJR 18, Sen. Morse, Proposed SJR 18-4 Amendments, 4pp.
  5. SJR 18, Paul Warner, Staff Measure Summary, 1p.
  6. SJR 18, Paul Warner, SJR 18 Simulation, 1p.
  7. SJR 18, Sen. Morse, Budget Analysis, 1p.
  8. HB 2168, Sen. Morse, Proposed HB 2168-A3 Amendments, 9pp.
  9. HB 2168, Paul Warner, Staff Measure Summary, 1p.
  10. HB 2168, Sen. Deckert, Proposed HB 2168-A4 Amendments, 9pp.