WORK SESSION: HB 2283, HB 3183

 

PUBLIC HEARING AND WORK SESSION: SB 469

 

TAPES 171-172, A

 

SENATE REVENUE COMMITTEE

August 19, 2003†† 10:00 AM†† 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:††††††††††† ††††††††††† Mike Marsh, Oregon Department of Transportation

††††††††††††††††††††††† ††††††††††† ††††††††††† Bob Russell, Oregon Transportation Association

††††††††††††††††††††††† ††††††††††† ††††††††††† Fred Hansen, Tri-Met

††††††††††††††††††††††† ††††††††††† ††††††††††† Olivia Clark, Tri-Met

††††††††††††††††††††††† ††††††††††† ††††††††††† Paul Phillips, Smart Growth Coalition

††††††††††††††††††††††† ††††††††††† ††††††††††† Jim Craven, American Electronics Association†††††† †††††††††††

 

Staff Present:††† ††††††††††† ††††††††††† Paul Warner, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Mazen Malik, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Lizbeth Martin-Mahar, Legislative Revenue Office

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

 

TAPE 171, SIDE A

 

003

Chair Deckert

Calls meeting to order at 10:07 am

 

OPENS PUBLIC HEARING ON SB 469

 

014

Dick Yates

Explains the -2 amendments (Exhibit 1) which replaces the original bill and increases the fee for obtaining an identification device in connection with the weight-mile tax and reduces fees for registration cards, plates and stickers. Refer to staff measure summary (Exhibit 2).

 

 

 

020

Mike Marsh

Testifies in support of SB 469 because it fixes problems discovered with the implementation of HB 2041.Refer to written testimony (Exhibit 3).

 

 

 

055

Bob Russell

Testifies in support of SB 469-2 amendments because it is necessary for the implementation of HB 2041.

 

 

 

060

Sen. Hannon

Asks if the truckers will stop at the point of entry to obtain a sticker.

 

 

 

062

Russell

Responds that they can obtain them at the point of entry or a variety of other ways.

 

 

 

071

Sen. Hannon

Asks if truckers will have to wait for long periods at points of entry waiting for them to open up.

 

 

 

075

Russell

Responds negatively.

 

CLOSES PUBLIC HEARING ON SB 469

 

OPENS WORK SESSION ON SB 469

 

079

Sen. Starr

MOTION: MOVES SB 469-2 AMENDMENTS DATED 8/14/03 BE ADOPTED.

 

 

 

081

Sen. Deckert

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

SENATOR EXCUSED: RINGO.

 

 

 

085

Sen. Starr

MOTION: MOVES SB 469 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

088

Sen. Deckert

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

SENATOR EXCUSED: RINGO.

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

 

OPENS WORK SESSION ON HB 2283

 

096

Mazen Malik

Explains HB 2283 which extends the property tax exemption offered to a non-profit corporation to land that is used as a golf course and for the discharge of wastewater. Refer to staff measure summary from 4/28/03.

 

 

 

110

Sen. Ferrioli

MOTION: MOVES HB 2283 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

115

Sen. Deckert

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

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

SENATOR EXCUSED: RINGO.

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

 

OPENS WORK SESSION ON HB 3183

 

125

Sen. Hannon

Explains the -2 amendments (Exhibit 4) which addresses Longview Fibre Co. and urges support.

 

 

 

145

Lizbeth Martin-Mahar

Explains the -3 (Exhibit 5) amendments which add the components of SB 549 A to allow for an increase in the maximum payroll tax rate for mass transit districts by 1% of the wages paid of each employee. Refer to staff measure summary (Exhibit 6). Discusses the revenue impact of the -3 amendment (Exhibit 7). Explains the -4 amendments (Exhibit 8) which deletes the original bill and increases the research and development tax credit. Refer to staff measure summary (Exhibit 9). Discusses the revenue impact for the -4 amendments (Exhibit 10). Explains the -7 amendments (Exhibit 11) which does not delete the existing bill and just adds the increase in the research credit to it. Discusses the revenue impact for the -7 amendments (Exhibit 12).

 

 

 

222

Sen. Deckert

Asks if the change in the research credit conforms to federal law and increases the cap to $1 million.

 

 

 

225

Martin-Mahar

Responds affirmatively.

 

 

 

233

Sen. Nelson

Asks how to sort out all these bills.

 

 

 

240

Sen. Deckert

Responds that the ones most strongly under consideration are the -2, -3, and -7 amendments.

 

 

 

250

Fred Hansen

Testifies in support of the -3 amendments because it would allow TriMet to access federal discretionary funds to expand mass transit. Discusses widespread business support. Refer to written testimony (Exhibit 13).

 

 

 

286

Sen. Starr

Asks about the federal funds that are at risk if this bill does not pass.

 

 

 

294

Hansen

Responds that the dollar amount would be over a six year period and would be around $400 million for projects that would be matched by local dollars and private investment.

 

 

 

325

Sen. Deckert

Points out that this is not imposing but rather allowing Tri-Met to go ahead with this tax.

 

 

 

332

Olivia Clark

Points out that the Lane Transit District is also in support of the amendment.

 

 

 

336

Paul Phillips

Testifies in strong support of the -7amendments because moving to a single sales factor would keep Oregon competitive and the research credit would help technology companies.

 

 

 

378

Sen. Ringo

Asks about the OTIM analysis that said this would create 20 jobs and asks for the realistic estimate.

 

 

 

387

Phillips

Responds that there are a lot more benefits than just 20 jobs and that in every other state that moves to a single sales factor, there has been a positive return and jobs created.

 

 

 

450

Sen. Starr

Asks about what the passage of this bill means to keeping headquarters in the state.

 

 

 

453

Phillips

Responds that this would help Oregon with the problem of attracting and retaining corporate headquarters.

 

TAPE 172, SIDE A

 

031

Sen. Deckert

Asks about start-up companies and how the research credit would impact them.

 

 

 

034

Jim Craven

Responds that the R&D credit increases the allowable cap and broadens the definition. States that there are exciting things going on to give a signal that economic development is in Oregonís future.

 

 

 

065

Sen. Ferrioli

Asks about the -4 amendments.

 

 

 

070

Phillips

Responds that they are not supportive of the -4 amendments.

 

 

 

072

Sen. Ferrioli

States that the next big thing could be anything and might not fit into the current definition.

 

 

 

080

Phillips

States that he agrees with Sen. Ferrioli and that is why the identical language is in the -7 amendments.

 

 

 

085

Sen. Hannon

MOTION: MOVES HB 3183-2 AMENDMENTS DATED 6/27/03 BE ADOPTED.

 

 

 

090

Sen. Metsger

Asks if this would conflict with any other portion of the bill they intend to adopt.

 

 

 

093

Sen. Hannon

Responds that before the bill is passed out it will be checked by Legislative Counsel for conflicts.

 

 

 

100

Sen. Deckert

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

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

SENATOR ANSWERING NO: RINGO.

 

 

 

105

Sen. Hannon

MOTION: MOVES HB 3183-3 AMENDMENTS DATED 8/7/03 BE ADOPTED.

 

 

 

108

Sen. Deckert

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

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

 

 

 

112

Sen. Hannon

MOTION: MOVES HB 3183-7 AMENDMENTS DATED 8/19/03 BE ADOPTED.

 

 

 

115

Sen. Deckert

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

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

SENATOR ANSWERING NO: CORCORAN.

 

 

 

120

Sen. Hannon

MOTION: MOVES HB 3183 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

124

Sen. Corcoran

States that he will be opposing the motion because increasing credits, even if there is no revenue impact until the next biennium, is how they got into the current fiscal crisis.

 

 

 

150

Sen. Deckert

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

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

SENATOR ANSWERING NO: CORCORAN.

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

 

152

Sen. Deckert

Adjourns meeting at 10:45 am.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

  1. SB 469, Richard Yates, Proposed SB 469-2 Amendments, 2pp.
  2. SB 469, Richard Yates, Staff Measure Summary, 1p.
  3. SB 469, Mike Marsh, Written Testimony, 2pp.
  4. HB 3183, Sen. Hannon, Proposed HB 3183-2 Amendments, 2pp.
  5. HB 3183, Lizbeth Martin-Mahar, Proposed HB 3183-3 Amendments, 4pp.
  6. HB 3183, Lizbeth Martin-Mahar, Staff Measure Summary for -3 Amendments, 1p.
  7. HB 3183, Lizbeth Martin-Mahar, Revenue Impact Statement for -3 Amendments, 1p.
  8. HB 3183, Lizbeth Martin-Mahar, Proposed HB 3183-4 Amendments, 4pp.
  9. HB 3183, Lizbeth Martin-Mahar, Staff Measure Summary for -4 Amendments, 1p.
  10. HB 3183, Lizbeth Martin-Mahar, Revenue Impact Statement for -4 Amendments, 1p.
  11. HB 3183, Sen. Deckert, Proposed HB 3183-7 Amendments, 4pp.
  12. HB 3183, Lizbeth Martin-Mahar, Revenue Impact Statement for -7 Amendments, 2pp.
  13. HB 3183, Fred Hansen, Written Testimony, 2pp.