PUBLIC HEARING

HB 2950, 2951, 3110

 

TAPES 97-98 A-B

 

HOUSE REVENUE COMMITTEE

APRIL 4, 2005   1:00 PM   STATE CAPITOL BUILDING

 

Members Present:                      Tom Butler, Chair

                                                Rep. Vicki Berger, 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:                      Rep. Linda Flores, District 51

                                                Rep. Dave Hunt, District 40

                                                Rep. Debbie Farr, District 14

                                                Tina Kotek, One Voice for Child Care Coalition

                                                Julia Brim-Edwards, Nike, Inc.

                                                Tamara Brickman, Oregon Dept. of Employment

                                                Mark Nelson, Oregon Housing Alliance

                                                Ellen Lowe, Oregon Food Bank

                                                Michael Anderson, Oregon Housing Alliance

                                                Clyde Doctor, City Club of Portland

                                                John Blatt, Assn. of OR Community Development

                                                Julie Massa, Oregon Food Bank

                                                Channah Pastorius, Beaverton OR

                                                Phillip Kennedy-Wong, Ecumenical Ministries of Oregon

                                                Paul Rainey, Assn. of Oregon Housing Authorities

                                                Patti Whitney-Wise, Oregon Hunger Relief Task Force

                                                Sabina Riggi, Oregon Food Bank

                                                Robert Castagna, Oregon Catholic Conference

 

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Mary Ayala, Economist

                                                Lizbeth Martin-Mahar, Economist

                                                Kristi Bowman, Committee Assistant

                                               

 

TAPE 97, SIDE A

002

Chair Butler

Calls meeting to order at 1:04 p.m.

 

 

 

OPENS PUBLIC HEARING FOR HOUSE BILL 2951 AND HOUSE BILL 2950

 

 

 

010

Rep. Flores

Testifies in support of HB 2950. Reads from written testimony verbatim from Angland for HB 2950. (Exhibit 1). Testifies in support of HB 2951 because it allows businesses to provide family-friendly benefits such as child care for employees. Submits written testimony from various individuals (Exhibits 2-7).

086

Tina Kotek

Submits written testimony in support of HB 2950 and 2951 (Exhibit 8).  Comments that both bills would give an incentive to businesses to provide child care.

 

 

 

107

Chair Butler

Refers to the HB 2951 Staff Measure Summary (Exhibit 9) background information regarding 24 corporations that claimed an average of $71,184 in 2002. Comments that these must be fairly substantial companies. Asks Kotek for more specific information.

 

 

 

118

Kotek

Responds that she will get that information to Chair Butler. Comments that it is her understanding that the credits are claimed by a range of businesses, some with as few as 10 employees to several hundred.

 

 

 

125

Chair Butler

Asks for more information regarding the programs themselves.

 

 

 

127

Kotek

Responds that the Nike representative might be able to provide more program information. Kotek describes a variety of credits that can be used depending on the employer’s needs. Comments that the Coalition would like to see more employers take advantage of the tax credit, and there is a need to provide more “carrots” to encourage private investment.

 

 

 

144

Komp

Asks whether data is available regarding Kotek’s statement that on-site child care helps employees become more productive.

 

 

 

152

Kotek

Responds that there is some national research available on this, and she will provide that information to Rep. Komp.

 

 

 

164

Julia Brim-Edwards

Testifies in support of HB 2951 because “finding high-quality child care is a significant issue for working parents,” and any assistance that employers can provide is a valuable benefit. Reads from written testimony (Exhibit 10). Discusses child-care facilities at Nike’s office complex. Discusses benefits of on-site child care to Nike employees, commenting that it improves the parent’s focus and productivity.

 

 

 

242

Rep. Komp

Asks if there is a separate facility or room available for nursing mothers.

 

 

 

244

Brim-Edwards

Responds yes, and offers a tour of the Paterno child-care facility to committee members.

 

 

 

254

Rep. Riley

Asks about benefits to employers with having on-site child care centers.

 

 

 

256

Brim-Edwards

Responds with comments on the benefits to employees.

270

Rep. Riley

Asks about the “dollar” benefits to employers. Chair Butler follows up with a clarifying question on the same issue.

 

 

 

272

Brim-Edwards

Responds that Nike sees an intangible benefit. Comments that Nike hasn’t quantified the data, but feedback from employees is positive.

 

 

 

299

Chair Butler

Asks if there is demographic data on the age of Nike employees.

 

 

 

301

Brim-Edwards

Comments that Nike has a young workforce due to the nature of the company. Adds that Nike helps people return to work by providing infant care and cites a workplace example.

 

 

 

331

Chair Butler

Questions and discussion interspersed with Brim-Edwards.

 

 

 

354

Rep. Berger

Comments that child care is an ongoing issue, especially with the rising cost of living. Comments on Chemeketa Community College’s child care program for employees and staff.

 

 

 

378

Rep. Boquist

Asks about Nike child-care facilities in other states and the corresponding tax benefits.

 

 

 

380

Brim-Edwards

Responds that there is a Nike child-care facility in Tennessee, but she is not familiar with the Tennessee tax code. She will provide that information to Rep. Boquist.

 

 

 

400

Tamara Brickman

Testifies about the Dept. of Employment’s concerns about tax issues and unemployment wages. The Dept. is waiting for more information from the Dept. of Labor. Comments that there may be a need to amend the Dept. of Employment’s definition of “wages.”

 

 

 

TAPE 98, SIDE A

025

Lizbeth Martin-Mahar

Discusses revenue impact of HB 2951 (Exhibit 11) and HB 2950 (Exhibit 12). HB 2950 needs clarification from the Dept. of Employment whether the federal government allows dependent care assistance payments to be made outside of wages, and whether to disconnect from the federal tax code.

 

 

 

049

Chair Butler

General comments on both bills.

 

 

 

056

Rep. Riley

Comments that he supports both bills because he supports workplace child care, but is uncomfortable on eliminating sunset dates on any tax credits.

 

 

 

062

Chair Butler

Comments about numerous sunset extensions to HB 2951. In looking to the future, would these tax credits be considered detrimental to society and to the overall tax system.

 

 

 

CLOSES PUBLIC HEARING FOR HOUSE BILLS 2950 AND 2951

 

 

 

 

 

 

OPENS PUBLIC HEARING FOR HOUSE BILL 3110

 

 

 

080

Mary Ayala

Gives overview of HB 3110 (Exhibit 13). The bill creates a low-income rental assistance program for qualified persons under 58 years old. Discusses revenue impact (Exhibit 14).

 

 

 

134

Rep. Debbie Farr

Testifies in support of HB 3110. Discusses anecdote to illustrate the instability of housing for poverty-level families.

 

 

 

159

Rep. Dave Hunt

Testifies in support of HB 3110, not as THE solution, but as one critical piece of the solution. Paraphrases written testimony (Exhibit 15). Discusses the cost of rent and the need for rent assistance.

 

 

 

231

Mark Nelson

Testifies in support of HB 3110 because the Housing Alliance believes that low-income families should be able to afford housing and have money left over for food and other necessities.

 

 

 

259

Ellen Lowe

Testifies in support of HB 3110. Refers to information in packet submitted (Exhibit 16). Comments that a tax credit needs to be enacted for renters in order to seek some kind of fairness. Adds that stability in secure housing affects stability in schools, churches, and transportation. Discusses HJR 65 included in packet (Exhibit 16).

 

 

 

363

Michael Anderson

Testifies in support of HB 3110. Reads from written testimony (Exhibit 17).

 

 

 

TAPE 97, SIDE B

043

Clyde Doctor

Testifies in support of HB 3110. Reads verbatim from written testimony (Exhibits 18 and 19).

 

 

 

069

John Blatt

Testifies in support of HB 3110. Comments that adding this tax credit on top of what the Assn. of OR Community Development can do will increase the availability of affordable housing.

 

 

 

091

Kotek

Testifies in support of HB 3110. Comments that HB 3110 is a cost-effective way to provide assistance to working families and will reduce financial instability for families.

 

 

 

120

Rep. Riley

Asks if HB 3110 is a tax credit.

 

 

 

122

Ayala

Responds that this is a subsidy program, not a tax credit.

 

 

 

124

Chair Butler

Adds further information on the mechanics of HB 3110.

 

 

 

145

Julie Massa

Testifies in support of HB 3110. Refers to information in packet submitted by Ellen Lowe (Exhibit 16). Discusses housing affordability issues. Comments that HB 3110 is the “gateway” to home ownership opportunities for low-income people.

199

Channah Pastorius

Testifies in support of HB 3110. Comments that she needs the housing assistance provided in this bill in order to meet her day-to-day expenses. Discusses her monthly personal expenses.

 

 

 

241

Phillip Kennedy-Wong

Testifies in support of HB 3110 because it is a pro-family bill. Reads verbatim from written testimony (Exhibit 20).

 

 

 

328

Patty Whitney-Wise

Testifies in support of HB 3110 and submits written testimony (Exhibit 21). Discusses the background of “poverty level” standards.

 

 

 

374

Paul Rainey

Testifies in support of HB 3110 and submits written testimony (Exhibit 22). Comments that families must choose between housing and food, and adds that HB 3110 will help meet the state’s affordable housing need.

 

 

 

TAPE 98, SIDE B

012

Sabina Riggi

Testifies in support of HB 3110 because the bill would provide financial relief for low-income grandparents who are supporting their grandchildren.

 

 

 

033

Rep. Riley

Expresses concern about federal cuts in spending on social programs and that these costs are being passed down to the states.

 

 

 

048

Chair Butler

Asks Whitney-Wise about the administration of the program regarding:

  • ·         Students living in dorms or shared housing
  • ·         Shared rents between adult child and parents
  • ·         Utility costs paid by tenant
  • ·         Assisted Living facilities
  • ·         Household asset allocation
  • ·         Is the assistance considered taxable
  • ·         Insurance or settlement awards

Also asks for more information on: 1) the costs associated with the current senior rental assistance program; 2) the difference in percentages used for housing costs for seniors (30%) versus the 20% rate for persons under 58 as stated in HB 3110. 

 

 

 

064

Whitney-Wise

Responds that she will provide the requested information to the committee. Comments that seniors over age 58 will not be affected by HB 3110; this bill expands the rental assistance program to those under 58.

 

 

 

150

Rep. Hass

Concurs with Chair Butler about various points raised about the administration of the program.

 

 

 

 

 

183

Bob Castagna

Testifies in support of HB 3110. Asks the committee members to keep in mind the moral principle of “preferential option for the poor.”

 

 

 

213

Chair Butler

Discusses various tax credits that have been presented to the revenue committee during this legislative session. Asks Rep. Hass to form an ad-hoc committee to determine “the best of the best” of the tax credits proposed so far. Expresses concerns about administrative costs of HB 3110.

 

 

 

CLOSES PUBLIC HEARING FOR HOUSE BILL 3110

 

 

 

259

Chair Butler

Adjourns meeting at 2:47 p.m.

 

 

Tape Log Submitted by:

Reviewed by:

 

 

 

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator

 

Exhibit Summary:

  1. HB 2950, Testimony, Angland, 2 pp., 03/24/05
  2. HB 2951, Testimony, Angland, 1 pg., 03/24/05
  3. HB 2951, Testimony, Schnell, 1 pg., 04/02/05
  4. HB 2951, Testimony, Blackwell, 1 pg., 04/04/05
  5. HB 2951, Testimony, Peterson, 1 pg., 04/02/05
  6. HB 2951, Testimony, Coehlo, 1 pg., 04/04/05
  7. HB 2951, Testimony, Martinez, 1 pg., 04/04/05
  8. HB 2950, HB 2951, Testimony,  Kotek, 1 pg., 04/04/05
  9. HB 2951, Staff Measure Summary, Martin-Mahar, 1 pg., 04/01/05
  10. HB 2951, Testimony, Brim-Edwards, 2 pp., 04/04/05
  11. HB 2951, Revenue Impact Statement, Martin-Mahar, 1 pg., 04/01/05
  12. HB 2950, Staff Measure Summary, Martin-Mahar, 1 pg., 04/04/05
  13. HB 2950, Testimony, Moore, 1 pg., 03/23/05
  14. HB 3110, Staff Measure Summary, Ayala, 1 pg., 04/04/05
  15. HB 3110, Revenue Impact Statement, Ayala, 1 pg., 04/04/05
  16. HB 3110, Testimony, Rep. Hunt, 2 pp., 04/04/05
  17. HB 3110, Handouts, Lowe, 67 pp., 04/04/05
  18. HB 3110, Testimony, Anderson, 4 pp., 04/04/05
  19. HB 3110, Testimony, Doctor, 1 pg., 04/04/05
  20. HB 3110, Booklet, Doctor, 123 pp., 04/04/05
  21. HB 3110, Testimony, Kennedy-Wong, 6 pp., 04/04/05
  22. HB 3110, Testimony, Whitney-Wise, 2 pp., 04/04/05
  23. HB 3110, Handout: Section 8 Housing Assistance Shortfalls, Rainey, 2 pp., 04/04/05
  24. HB 3110, Testimony, Goplen, 1 pg., 04/04/05