PUBLIC HEARING AND WORK SESSION: HB 2267 A

 

TAPES 173, A

 

SENATE REVENUE COMMITTEE

August 20, 2003†† 1:30 PM†† STATE CAPITOL BUILDING

 

Members Present:††††††††††† ††††††††††† Senator Ryan Deckert, Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Peter Courtney

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Rick Metsger

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator David Nelson

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Bruce Starr

 

Members Excused:††††††††† ††††††††††† Senator Ted Ferrioli, Vice Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Tony Corcoran

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Lenn Hannon

††††††††††††††††††††††† ††††††††††† ††††††††††† Senator Charlie Ringo

 

Witnesses Present:††††††††††† ††††††††††† Pat Egan, Governorís Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Scott West, Oregon Lodging Association

††††††††††††††††††††††† ††††††††††† ††††††††††† Todd Davidson, Oregon Tourism Commission

††††††††††††††††††††††† ††††††††††† ††††††††††† Michelle Deister, League of Oregon Cities

††††††††††††††††††††††† ††††††††††† ††††††††††† Marge Kafoury, City of Portland

††††††††††††††††††††††† ††††††††††† ††††††††††† Larry Campbell, Oregon Lodging Association†††††† †††††††††††

 

Staff Present:††† ††††††††††† ††††††††††† Dick Yates, Legislative Revenue Office

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

 

TAPE 173, SIDE A

 

003

Chair Deckert

Calls meeting to order at 1:42 pm

 

OPENS PUBLIC HEARING ON HB 2267 A

 

016

Pat Egan

Testifies in support of HB 2267 because it is a very substantial and beneficial piece of Oregonís economic recovery.

 

 

 

023

Scott West

Offers support for HB 2267.

 

 

 

028

Todd Davidson

Offers support for HB 2267. Refer to written testimony (Exhibit 4).

 

 

 

040

Sen. Ferrioli

States that he is a no on the bill.

 

 

 

042

Sen. Starr

Asks if this institutes a 1 percent statewide lodging tax.

 

 

 

045

West

Responds affirmatively.

 

 

 

047

Sen. Starr

Asks if 2 percent would be better.

 

 

 

050

West

Responds that they feel 1 percent is appropriate.

 

 

 

052

Davidson

Responds that the 1 percent is for tourism promotion.

 

 

 

057

Sen. Starr

Asks about the distribution of the dollars.

 

 

 

060

Davidson

Responds that the dollars are allocated so that at least 80 percent of the revenues are dedicated to the Tourism Commission statewide marketing program and up to 15 percent will go back to the region on a pro rata basis to carry out their marketing programs as well.

 

 

 

073

Sen. Ferrioli

Asks if a pro rata basis is by population.

 

 

 

075

Davidson

Responds that it is based on how the dollars are collected in the region and not per capita. States that approximately 33% will be collected in the tri-counties and 20% on the coast.

 

 

 

082

Sen. Ferrioli

Asks if at least 70% would be spent west of the cascades.

 

 

 

085

Davidson

Responds that he cannot give an approximate answer but that it could be 70% west of the cascades.

 

 

 

098

Michelle Deister

Testifies that the bill in front of them is much better than the original bill and that the local communities need to not only attract tourists but to accommodate them. Discusses problems with the bill that they may need to address later.

 

 

 

114

Sen. Ferrioli

Asks about the refinancing debt in related facilities.

 

 

 

116

Deister

Responds that it may have to do with facilities that are financed and then refinanced backed with lodging taxes and that it might be language that was inserted during the 2001 session.

 

 

 

120

Sen. Ferrioli

Asks why they need additional money to refinance at a lower rate.

 

 

 

130

Marge Kafoury

Responds that this is language that was put into law in the last legislative session and that it relates specifically to an agreement that the city of Portland made with the Lodging Association. States that the language was put into this bill to ensure that they are still able to use the dollars if they refinance at a more reasonable rate.

 

 

 

145

Sen. Ferrioli

States that he is concerned that the proposal has been marketed as a way to promote tourism and is actually used to refinance existing debt.

 

 

 

148

Kafoury

Clarifies that they are talking about the amount of lodging taxes that the city has already raised.

 

 

 

152

Sen. Ferrioli

States that the proposal has been marketed to the public as money used to promote tourism and not to refinance existing debt.

 

 

 

155

Sen. Deckert

Asks why they need it in the bill.

 

 

 

157

Kafoury

Responds that she doesnít know why it was put into the bill.

 

 

 

176

Egan

States that there is an agreement for legislative intent for the use of capitalization of administrative costs relative to the issuance of debt.

 

 

 

193

Larry Campbell

Agrees with Egan about bonding. Responds to Sen. Ferrioliís question that the dollars used to refinance are local dollars raised by a local tourist tax and not the statewide 1% tax.

 

 

 

205

Egan

States that this is a priority for the Governor.

 

 

 

230

Sen. Deckert

RECESSES MEETING AT 1:59 PM

 

 

 

231

Sen. Deckert

REOPENS MEETING AT 3:33 PM

 

OPENS WORK SESSION ON HB 2267

 

262

Sen. Metsger

Asks if there was a public hearing earlier.

 

 

 

265

Sen. Deckert

Responds affirmatively.

 

 

 

270

Sen. Nelson

MOTION: MOVES HB 2267 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

274

Sen. Metsger

States that this is important for the state and has had a lot of hard work put into it.

 

 

 

279

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 5-0-4.

SENATORS ANSWERING AYE: COURTNEY, METSGER, NELSON, STARR, DECKERT.

SENATORS EXCUSED: CORCORAN, HANNON, RINGO, FERRIOLI.

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

 

285

Sen. Deckert

Adjourns meeting at 3:37 pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

  1. HB 2267, Dick Yates, Staff Measure Summary, 1p.
  2. HB 2267, Dick Yates, Revenue Impact Statement, 1p.
  3. HB 2267, Dick Yates, Fiscal Impact Statement, 2pp.
  4. HB 2267, Scott West, Written Testimony, 1p.