PUBLIC HEARING AND WORK SESSION: HB 3183 A, HB 2747 B

 

TAPES 176-177, A-B

 

SENATE REVENUE COMMITTEE

August 25, 2003 2:00 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: Marcia Kelley, League of Women Voters

Bruce Bishop, Oregon Association of Hospitals and Health Systems

Gwen Dayton, Oregon Association of Hospitals and Health Systems

Erinn Kelley-Siel, Governors Office

Lynn Read, Department of Human Services

 

Staff Present: Paul Warner, Legislative Revenue Office

Lizbeth Martin-Mahar, Legislative Revenue Office

Tara Lantz, Committee Assistant

 

TAPE 176, SIDE A

 

004

Chair Deckert

Calls meeting to order at 2:27 pm.

 

OPENS PUBLIC HEARING ON HB 3183 A

 

015

Lizbeth Martin-Mahar

Explains the -A14 amendment, which modifies the single sales corporate apportionment formula and increases the maximum payroll tax rate for mass transit districts (Exhibit 1), and discusses the revenue impact (Exhibit 2). Discusses the modified singles sales factor apportionment and the impact on different industries (Exhibit 3).

 

 

 

070

Sen. Corcoran

Asks for clarification on the winners and losers under the single sales apportionment formula.

 

 

 

077

Martin-Mahar

Responds that it is the companies that dont have the property and payroll in Oregon that end up paying more. Explains the -A15 amendment, which includes the research and development credit (Exhibit 4), and discusses the revenue impact (Exhibit 5).

 

 

 

122

Sen. Metsger

Asks for clarification on the net change in revenue.

 

Discussion follows.

 

 

 

134

Marcia Kelley

Testifies in opposition to HB 3183 A because tax credits that go into effect in future biennia should not be passed until tax reform has been addressed.

 

CLOSES PUBLIC HEARING ON HB 3183 A

 

OPENS PUBLIC HEARING ON HB 2747 B

 

180

Bruce Bishop

Testifies in support of the B15 amendments (Exhibit 6), which creates a hospital provider tax, because it will allow the same providers to access to federal funds to maintain the Oregon Health Plan.

 

 

 

232

Sen. Metsger

Asks about the advantages for this legislation.

 

 

 

240

Bishop

Responds that it is not only an appropriate step for health policy reasons and fiscal reasons but most importantly for the healthcare needs of low-income Oregonians.

 

 

 

263

Sen. Deckert

Asks for a dollar figure associated with the federal funds that this would bring in.

 

 

 

266

Bishop

Gives an estimate of $77 million in state resources and $115-$120 million in federal resources.

 

 

 

280

Sen. Deckert

Asks what the mechanics are for assessing the hospital tax.

 

 

 

282

Dayton

Responds that hospitals will be asked to complete a form that gives the Department the information they need to determine the amount of the assessment.

 

 

 

296

Sen. Nelson

Asks if this money is on top of the $275 million that was in the Human Resources budget.

 

 

 

300

Bishop

Responds affirmatively and explains that the Human Services budget did not include a hospital benefit.

 

 

 

305

Sen. Nelson

Asks if there is any provision in the bill to help health clinics in rural areas.

 

 

 

312

Bishop

Responds that this bill is targeted to hospital care.

 

 

 

316

Sen. Nelson

Asks if there has been any discussion on the inclusion of other health care providers.

 

 

 

322

Bishop

Responds that the funds that are available here will go for the purposes of hospital payments.

 

 

 

329

Sen. Starr

Clarifies that this would allow hospitals to tax themselves in order to receive federal funds.

 

 

 

332

Bishop

Agrees with Sen. Starr.

 

 

 

349

Erinn Kelley-Siel

Testifies in support of the B15 amendments because it will generate approximately $57 million in state resources to increase capitation rates for Medicaid managed care organizations and to provide an emergency hospital benefit to the Oregon Health Plan standard population. Discusses the hospital assessment.

 

TAPE 177, SIDE A

 

001

Sen. Nelson

Asks if the rural providers would qualify for funds.

 

 

 

004

Lynn Read

Responds that it would benefit any clinic where someone that was otherwise uninsured could access care.

 

 

 

011

Sen. Nelson

States that health care is an integrated system and it seems like everyone would benefit. Asks about the language change in this bill.

 

 

 

023

Martin-Mahar

Responds that it is the language in the original version on the House that didnt get incorporated into HB 2152.

 

 

 

026

Sen. Deckert

Asks how the PACE got deleted from HB 2152.

 

 

 

030

Kelley-Siel

Responds that the PACE program is a hybrid program and it isnt sure how the federal government will view it.

 

CLOSES PUBLIC HEARING ON HB 2747 B

 

056

Sen. Deckert

RECESSES UNTIL 4:00 PM

 

 

 

057

Sen. Deckert

REOPENS MEETING AT 4:44 PM

 

OPENS WORK SESSION ON HB 3183 A

 

062

Sen. Starr

MOTION: MOVES HB 3138-A15 AMENDMENTS DATED 8/25/03 BE ADOPTED.

 

 

 

068

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 5-0-3.

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

SENATORS EXCUSED: CORCORAN, HANNON, NELSON.

 

 

 

073

Sen. Starr

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

 

 

 

075

Sen. Ringo

Clarifies that the amendment adopted includes the R&D credit, the single sales factor apportionment, and the mass transit payroll tax increase.

 

Discussion follows.

 

 

 

082

Sen. Metsger

States that this is a reasonable package and that the mass transit portion is a huge opportunity. Discusses the single sales apportionment and the R&D credit and states that they are much more responsible in this version.

 

 

 

118

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 6-0-2.

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

SENATORS EXCUSED: CORCORAN, HANNON.

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

 

OPENS WORK SESSION ON HB 2747 B

 

125

Martin-Mahar

Reviews the -15 amendments (Exhibit 6) and discusses the revenue impact (Exhibit 7). Discusses the -16 amendments (Exhibit 8) and discusses the revenue impact (Exhibit 9). Discusses current and law and recent changes in federal estate tax law (Exhibit 10) and gives estate examples (Exhibit 11).

 

 

 

249

Martin-Mahar

Explains the B20 amendments (Exhibit 12) which are the same as SB 313 and provides a $2 million credit. Explains the B18 amendments (Exhibit 13).

 

 

 

269

Debra Buchanan

Testifies that there needs to be a fix to the estate tax. Gives history of the estate tax in Oregon.

 

 

 

335

Sen. Corcoran

Asks Mr. Sheketoff to speak on the estate tax.

 

 

 

343

Chuck Sheketoff

Agrees with the Department of Revenue that the statute needs to be cleaned up but disagrees that they need to connect to 2002 federal law.

 

 

 

394

Sen. Corcoran

Asks if the fix for the Department of Revenue is contained with the hospital piece.

 

 

 

396

Sen. Deckert

Responds that they are separate amendments.

 

 

 

402

Sen. Corcoran

Asks if this will hurt or help.

 

 

 

406

Sheketoff

Responds that he does not know what it will do for the future but that it would get rid of the uncertainty.

 

 

 

410

Buchanan

Responds that it will fix the prior years.

 

 

 

415

Sen. Corcoran

Asks if they have to tie in with the federal government.

 

 

 

420

Buchanan

Responds that the federal exclusion amount is increasing to $3.5 million and the amendment is capped at $1.5 million.

 

Discussion follows.

 

TAPE 176, SIDE B

 

022

Veronica Rinard

Testifies in support of the B20 amendments, which are the same as SB 313, but dont have a revenue impact until the next biennium.

 

 

 

032

Sen. Deckert

Asks if the House chair is okay with the amendments.

 

 

 

035

Rinard

Responds affirmatively.

 

 

 

039

Howard Lavine

Testifies that the Governor strongly supports the amendment.

 

 

 

050

Sen. Deckert

Asks if they will still be able to draw films to Oregon even though the credit wont begin until 2005.

 

 

 

052

Lavine

Responds that they will have to use other mechanisms such as reserve funds until then.

 

 

 

055

Rinard

Discusses film that was brought to Oregon using a method similar to the credit program and states that having that to use in the future is a marketing tool.

 

 

 

067

Sen. Deckert

States that the B15, B16, -B18, and B20 amendments are in play.

 

 

 

070

Sen. Ferrioli

States that they would move the B17 amendments if he wants to.

 

 

 

073

Sen. Deckert

Responds that he wants to but he doesnt want to decrease the chance of passage of the bill.

 

 

 

083

Sen. Starr

MOTION: MOVES HB 2747-B15 AMENDMENTS DATED 8/23/03 BE ADOPTED.

 

 

 

083

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 6-0-2.

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

SENATORS EXCUSED: HANNON, RINGO.

 

 

 

090

Sen. Starr

MOTION: MOVES HB 2747-B16 AMENDMENTS DATED 8/25/03 BE ADOPTED.

 

 

 

093

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 5-1-2.

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

SENATOR ANSWERING NO: FERRIOLI.

SENATORS EXCUSED: HANNON, RINGO.

 

 

 

100

Sen. Starr

MOTION: MOVES HB 2747-B20 AMENDMENTS DATED 8/25/03 BE ADOPTED.

 

 

 

103

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 5-1-2.

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

SENATOR ANSWERING NO: FERRIOLI.

SENATORS EXCUSED: HANNON, RINGO.

 

 

 

110

Sen. Ferrioli

MOTION: MOVES HB 2747-B18 AMENDMENTS DATED 8/25/03 BE ADOPTED.

 

 

 

113

Sen. Starr

States that he did not vote for HB 2152 but he will support this because it is just a technical change.

 

 

 

116

Sen. Ferrioli

States that he also did not support HB 2152 but will support this.

 

 

 

120

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 6-0-2.

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

SENATORS EXCUSED: HANNON, RINGO.

 

 

 

125

Sen. Corcoran

MOTION: MOVES HB 2747 TO THE SENATE FLOOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

130

Sen. Deckert

ORDER: ROLL CALL VOTE: MOTION PASSES: 6-0-2.

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

SENATORS EXCUSED: HANNON, RINGO.

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

 

CLOSES WORK SESSION ON HB 2747 B

 

135

Sen. Deckert

Adjourns meeting at 5:17 pm.

 

 

 

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

  1. HB 3183, Sen. Deckert, Proposed HB 3183-A14 Amendments, 2pp.
  2. HB 3183, Lizbeth Martin-Mahar, Revenue Impact for A14 Amendments, 1p.
  3. HB 3183, Lizbeth Martin-Mahar, Summary of Increase in Sales Factor, 7pp.
  4. HB 3183, Sen. Deckert, Proposed HB 3183-A15 Amendments, 2pp.
  5. HB 3183, Lizbeth Martin-Mahar, Revenue Impact for A15 Amendments, 2pp.
  6. HB 2747, Rep. Patridge, Proposed HB 2747-B15 Amendments, 21pp.
  7. HB 2747, Lizbeth Martin-Mahar, Revenue Impact for B15 Amendments, 3pp.
  8. HB 2747, Lizbeth Martin-Mahar, Proposed HB 2747-B16 Amendments, 9pp.
  9. HB 2747, Lizbeth Martin-Mahar, Revenue Impact for B16 Amendments, 1p.
  10. HB 2747, Lizbeth Martin-Mahar, Current Law and Recent Changes in Federal Estate Tax Law, 2pp.
  11. HB 2747, Lizbeth Martin-Mahar, Estate Tax Examples, 1p.
  12. HB 2747, Veronica Rinard, Proposed HB 2747-B20 Amendments, 6pp.
  13. HB 2747, Lizbeth Martin-Mahar, Proposed HB 2747-B18 Amendments, 5pp.
  14. HB 2747, Sen. Deckert, Proposed HB 2747-B17 Amendments 8pp.
  15. HB 2747, Lizbeth Martin-Mahar, Revenue Impact for B17 Amendments, 1p.

 

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