PUBLIC HEARING AND WORK SESSION

TAPES 21-22 A

HOUSE REVENUE COMMITTEE

JANUARY 27, 2005   1:30 PM   STATE CAPITOL BUILDING

 

Members Present:                      Rep. Tom Butler, Chair

                                                Rep. Vicki Berger, Vice-Chair

                                                Rep. Mark Hass, Vice-Chair

                                                Rep. Brian Boquist                                     

                                                Rep. Larry Galizio

                                                Rep. Betty Komp

                                                Rep. Andy Olson

                                                Rep. Chuck Riley

                       

 

Members Excused:                     Rep. Sal Esquivel

 

Witnesses Present:                      Chuck Bennett, Conference of School Administrators

                                                John Marshall, OR School Boards Assn.

                                                Debra Buchanan, Dept. of Revenue

                                                Jan Coleman, Yamhill County Clerk, OR. Assn. of County Clerks

                                                Darren Bond, Director of Finance, OR State Treasury Office

Laura Lockwood McCall, Director, Debt Management, OR State Treasury Office

                                               

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Mazen Malik, Economist

                                                Kristi Bowman, Committee Assistant

                                               

TAPE 21, SIDE A

002

Chair Butler

Calls meeting to order at 1:38 p.m. Introduces Legislative Revenue Office staff.

 

 

 

WORK SESSION – BILL INTRODUCTION

 

010

Chair Butler

Opens work session for Legislative Concept (LC) bill introduction.. Discusses summary sheet titled LC’s for Session Introduction (Exhibit 1).

 

 

 

018

Rep.Hass

Discusses LC 923 (Exhibit 3) proposing a change in the formula to change kindergarten hours from  2 ½ hours per day to 5 hours a day (Exhibit 23).

 

 

 

047

Chair Butler

Introduces LC 833 (Exhibit 2) making technical changes in OR tax statutes.

 

 

 

050

Paul Warner

Gives overview of 833. no policy impact but rather to correct erroneous material. It is called a reviser’s bill to correct OR statutes.

 

 

 

070

Chair Butler

Introduces LC 1291 (Exhibit 4) removing sunset of high cost disabilities grant and small school district grant.

 

 

 

080

John Marshall

Overview of  LC 1291, a bill to continue two components of the state school fund distribution formula that was enacted in 2003.

 

 

 

103

Rep. Komp

Asks how many schools are impacted.

 

106

Marshall

Responds that he doesn’t have that information available now, but as the discussion on this bill progresses, there will be more specifics.

 

 

 

110

Chair Butler

Introduces LC numbers 1956-1961 (Exhibits 5-10).

 

125

Debra Buchanan

Overview of LC 1956 permitting DOR to refund overpayments claimed on a return that is filed more than 3 years after the return is due. The refund would be limited to the taxes paid during the prior two years.

 

 

 

136

Chair Butler

Comments that it creates a more equitable situation for taxpayers.

 

 

 

142

Buchanan

Overview of LC 1957 clarifies the current statute to apportion estimated payments reported on a joint return.

 

 

 

154

Chair Butler

Clarifies/restates the summary information for the benefit of new committee members.

 

 

 

163

Buchanan

Overview of LC 1958 relates to the working family child care tax credit.

 

 

 

185

Buchanan

Overview of LC 1959 relates to filing returns through pass-through entities, which are partnerships or S-type corporations. This concept adopts a uniformity recommendation that the multi-state tax commission put forward.

 

 

 

209

Chair Butler

Comments that the LC assists with the administrative responsibilities of the DOR involving multi-state tax filing.

 

 

 

213

Buchanan

Overview of LC 1960 which is a matching-up provision between individual tax returns and entity (partnership or S-type corporation) tax returns.

 

 

 

236

Buchanan

Overview of LC 1961 involves pass-through entities and part-year residents. This provision prescribes how the taxpayer reports the income on the OR return.

 

 

 

253

Chair Butler

Asks if LC 1961 precludes “specific identification” (no further elaboration given on this term).

 

 

 

255

Buchanan

Responds that she will research that information for future discussion of LC 1961.

 

282

Chair Butler

MOTION: MOVES THAT LC 833 AND LC 923  BE INTRODUCED AS HOUSE REVENUE COMMITTEE BILLS.

MOTION: MOVES THAT LC 1291 BE INTRODUCED BY THE COMMITTEE ON BEHALF OF THE OR SCHOOL BOARDS ASSN. AND THE CONFERENCE OF SCHOOL ADMINISTRATORS.

MOTION: MOVES THAT LC 1956-1961 BE INTRODUCED BY THE COMMITTEE ON BEHALF OF THE DEPT. OF REVENUE.

 

 

 

283

Chair Butler

ORDER: THERE BEING NO OBJECTION, THE CHAIR SO ORDERS, MOTION PASSES 8-0-1. ANSWERING AYE: BERGER, HASS, BOQUIST, GALIZIO, KOMP, OLSON, RILEY, BUTLER. MEMBERS EXCUSED: ESQUIVEL.

 

 

 

CLOSES WORK SESSION FOR LCs 833 – 1961.

 

OPENS PUBLIC HEARING FOR  HB 2030.

 

 

 

295

Mazen Malik

Overview for HB 2030 proposing electronic funds transfer by state agencies. No new revenue impact has been determined.

 

 

 

336

Jan Coleman

Testifies on behalf of the OR Association of County Clerks in support of HB 2030 and  proposes an amendment that adds the statement “No state agency may assess a penalty to an entity that is unable to receive agency payments by electronic fund transfer.” Written testimony submitted (Exhibit 20).

 

 

 

395

Darren Bond

Reads from written testimony (Exhibit 21) in support of HB 2030. Comments that the State Treasurer would not have a problem with the amendment proposed.

 

 

 

TAPE 22 SIDE A

030

Rep. Boquist

Asks if tax refunds would be electronically processed.

 

032

Bond

Responds that tax refunds would not be applicable to this program. The cost benefit in this bill is normally realized in a recurring payment scenario, such as a weekly or monthly payment. Issuance of a card would not be effective for a one-time payment such as a tax refund.

 

040

Rep. Boquist

Follow-up statement: as the bill is currently written, an administrative rule could allow an electronic tax refund.

 

 

 

045

Bond

Concurs.

 

048

Rep. Berger

Asks Jan Coleman how many counties are affected by the bill as written.

 

050

Coleman

Responds that about 6 counties would be affected.

 

CLOSES PUBLIC HEARING ON  HB 2030

 

OPENS PUBLIC HEARING ON HB 2031

 

 

 

055

Malik

Gives overview of HB 2031. This bill allows check images to be considered without bringing a physical check into a clearinghouse. No revenue impact was determined.

 

 

 

067

Bond

Reads from written testimony in support of HB 2031 (Exhibit 22) because it cleans up current statutory language to reflect modern banking practices.

 

 

 

072

Chair Butler

Asks Mr. Bond to visit his office to discuss the issues involved with electronic funds transfer in rural Oregon.

 

 

 

CLOSES PUBLIC HEARING ON HB 2031

 

 

 

OPENS PUBLIC HEARING ON HB 2032

 

 

 

095

Malik

Gives overview of HB 2032 which clarifies the ways in which agencies follow when seeking the assistance of the State Treasurer in selling and floating bonds. No revenue impact was determined.

 

 

 

115

Laura Lockwood McCall

Testifies in favor of bill because with the introduction of new debt instruments, this clarification is needed to reflect modern reporting practices.

 

 

 

132

Chair Butler

Asks for questions from committee members. No questions asked.

 

 

 

CLOSES PUBLIC HEARING ON HB 2032

 

 

 

172

Chair Butler

Discusses OLCC field trip information on 1/28/05.

 

191

Chair Butler

Adjourns meeting at 2:21 p.m.

 

 

Tape Log Submitted by:

Reviewed by:

 

 

 

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator

 

Exhibit Summary: