WORK SESSION HB 2052, HB 2054

PUBLIC HEARING AND WORK SESSION HB 2446

 

TAPES 37 A, 38 A

 

HOUSE REVENUE COMMITTEE

FEBRUARY 10, 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. Sal Esquivel                                       

                                                Rep. Larry Galizio

                                                Rep. Betty Komp

                                                Rep. Andy Olson

                                                Rep. Chuck Riley                

 

Witnesses Present:                      Dexter Johnson, Legislative Counsel          

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Mazen Malik, Economist

                                                Kristi Bowman, Committee Assistant

                                               

 

TAPE 37, SIDE A

002

Chair Butler

Calls meeting to order at 1:30 p.m.

 

 

 

OPENS WORK SESSION FOR HOUSE BILL 2052

 

 

 

005

Mazen Malik

Gives overview (Exhibit 1). Bill originally discussed on 1/31/05. It increases the housing revenue bond limit to $2.5 billion. Notes a difference in revenue impact statement (Exhibit 2) from previous impact statement because of a change to the funding mechanism.

 

 

 

045

Chair Butler

Comments that with higher interest rates there would be more demand for the program.

 

 

 

053

Malik

Responds that most likely higher interest rates and higher costs of homes will increase the need for low income housing.

 

 

 

065

Chair Butler

Asks for further questions from committee members.

 

 

 

077

Rep. Boquist

Asks if there is an impact on the general fund.

 

 

 

078

Malik

Responds that there is no impact. The amounts of the debt and the bond proceeds are considered “non-limited” funds because they come in and go out at the same time.

 

 

 

080

Rep. Boquist

Asks for clarification of term “built-in” pertaining to the state economist’s model for this program.

090

Malik

Explains that the state economist projects the number of new housing units and construction jobs that would be created based on the already established or “built-in” structure of the housing bonds.

 

 

 

108

Rep. Boquist

MOTION: MOVES HB 2052 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION AND BE REFERRED TO THE WAYS AND MEANS COMMITTEE.

 

 

 

117

Chair Butler

ORDER: THERE BEING NO OBJECTION, THE CHAIR SO ORDERS. MOTION PASSES 9-0-0. VOTING AYE: BERGER, BOQUIST, ESQUIVEL, GALIZIO, HASS, KOMP, OLSON, RILEY, BUTLER.

 

 

 

CLOSES WORK SESSION FOR HOUSE BILL 2052

 

 

 

OPENS WORK SESSION FOR HOUSE BILL 2054

 

 

 

125

Malik

Gives overview (Exhibit 3). This bill was heard originally on 1/31/05. It allows a threshold limit from $150,000 and establishes Housing Council rules. Also extends the maturity period on Housing bonds from 42 to 47 years. Discusses new fiscal analysis (Exhibit 4) concluding that the fiscal impact is indeterminate because the amount of needed housing is not currently known.

 

 

 

200

Rep. Riley

MOTION: MOVES HB 2054 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

210

Chair Butler

ORDER: THERE BEING NO OBJECTION, THE CHAIR SO ORDERS. MOTION PASSES 9-0-0. VOTING AYE: BERGER, BOQUIST, ESQUIVEL, GALIZIO, HASS, KOMP, OLSON, RILEY, BUTLER.

 

 

 

CLOSES WORK SESSION FOR HOUSE BILL 2054

 

OPENS PUBLIC HEARING FOR HOUSE BILL 2446

 

 

 

215

Paul Warner

Gives overview (Exhibit 5). This is the first of a series of reviser’s bills that will be reviewed by the committee. It corrects errors and repeals obsolete material in the tax statute.

 

 

 

234

Dexter Johnson

Discusses changes proposed. During the interim his staff identifies certain inconsistencies and technical mistakes in the statutes, and HB 2446 seeks to correct language in the tax statute. This bill is a little different in that there is a “note” at the end of each section that describes what changes have been made.

 

 

 

260

Chair Butler

Asks about some of the wording changes, for instance, rural enterprise zone in section 2, page 3, line 17.

 

 

 

276

Johnson

The substance of the section is the same as what the language replaces. He also reviewed the changes with the Dept. of Revenue, and they agree that there are no substantive changes other than to improve the wording.

 

 

 

320

Rep. Boquist

Asks about page 19 that defines tangible personal property that does include livestock. Refers to previous committee discussions about taxing livestock.

 

 

 

339

Johnson

Explains that this is existing law. It only includes livestock as tangible personal property. It eliminates the “unless otherwise specifically provided” language, which does not conform to legislative form and style.

 

 

 

384

Rep. Riley

Comments that he wants to ensure that the right choice of words is utilized when making these changes.  

 

 

 

400

Rep. Boquist

Asks again about the tax exemption for livestock. Why not eliminate the word livestock in the text if there is already an exemption for it?

 

 

 

415

Johnson

Responds that in the future if there was a decision that tangible personal property would be subject to tax that unless someone remembered that livestock was included in the definition, livestock would remain exempt.

 

 

 

443

Rep. Boquist

Requests clarification on section 73, page 40, that referees for soccer matches are considered independent contractors. Should referees for other sports be included?

 

 

 

452

Johnson

Reviews additional information in sections 115 and 116, page 60, and provides history of previous legislation affecting this section.

 

 

 

TAPE 38,SIDE A

059

Chair Butler

Asks if there might be any amendments to this bill on the Senate side?

 

 

 

060

Johnson

Responds that he is not aware of any amendments for this bill.

 

 

 

CLOSES PUBLIC HEARING FOR HOUSE BILL 2446

 

OPENS WORK SESSION FOR HOUSE BILL 2446

 

 

 

074

Rep. Riley

MOTION: MOVES HB 2446 TO THE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

079

Chair Butler

ORDER: THERE BEING NO OBJECTION, THE CHAIR SO ORDERS. MOTION PASSES 9-0-0. VOTING AYE: BERGER, BOQUIST, ESQUIVEL, GALIZIO, HASS, KOMP, OLSON, RILEY, BUTLER.

 

 

 

086

Chair Butler

Discusses the use of the consent calendar with the committee.

 

095

Chair Butler

Adjourns meeting at 2:15 p.m.

 

 

 

 

 

Tape Log Submitted by:

Reviewed by:

 

 

 

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator

 

Exhibit Summary:

  1. 1.      HB 2052, Staff Measure Summary, Malik, 1 pg., 02/10/05
  2. 2.      HB 2052, Revenue Impact Statement, Legislative Revenue Office, Malik, 1 pg., 02/10/05
  3. 3.      HB 2054, Staff Measure Summary, Malik, 1 pg., 02/10/05
  4. 4.      HB 2054, Fiscal Analysis Report, Frawley, Legislative Fiscal Office, 1 pg., 02/10/05
  5. 5.      HB 2446, Staff Measure Summary, Warner, 1 pg., 02/10/05
  6. 6.      HB 2446, No Expenditure Impact Statement, Legislative Fiscal Office, 1 pg., 02/10/05