PUBLIC HEARING

SB 896 A

WORK SESSION

HB 2787

SB 21, 22, 23 A, 24, 25 A

TAPES 182-183 A, 182 B

005

Chair Butler

Calls meeting to order at 1:33 p.m.

OPENS WORK SESSION FOR HOUSE BILL 2787

010

Lizbeth Martin-Mahar

Gives update of HB 2787 (Exhibit 1). Discusses the HB 2787-7 amendment (Exhibit 2) that adds certified emergency medical technicians (EMTs) for the $250 tax credit. “Rural” and “frontier” areas have been defined more specifically. Discusses the preliminary revenue impact (Exhibit 3).

070

Chair Butler

Discusses changes to the bill contained in the HB 2787-7 amendment. General comments about various definitions in the bill.

103

Rep. Boquist

Clarifies that the change in the definition of frontier and rural only applies to EMTs.

105

Martin-Mahar

Concurs with Rep. Boquist. Refers to the specific section of the amendment.

115

Chair Butler

General comments about the tax credit.

127

Rep. Berger

MOTION: MOVES THE ADOPTION OF THE HB 2787-7 AMENDMENT.

131

Chair Butler

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

133

Rep. Berger

MOTION: MOVES HB 2787 AS AMENDED TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

136

Rep. Hass

Explains why he will vote no on the bill.

153

Chair Butler

Comments that section 5 addresses some of Rep. Hass’ concerns.

164

Chair Butler

Asks for roll-call vote.

171

Chair Butler

THE MOTION HAVING RECEIVED THE REQIURED MAJORITY IS DECLARED PASSED. VOTE: 7-1-1. VOTING AYE: BOQUIST, ESQUIVEL, GALIZIO, OLSON, RILEY, BERGER, BUTLER. VOTING NO: HASS. EXCUSED: KOMP.

CLOSES WORK SESSION FOR HOUSE BILL 2787

OPENS PUBLIC HEARING FOR SENATE BILL 896 A

190

Martin-Mahar

Gives summary of SB 896 A (Exhibit 4). The tax credit only applies to new employees who assist in the manufacture of a water transit vessel. Discusses the revenue impact (Exhibit 5).

245

Chair Butler

Calls AT EASE at 1:51 P.M.

246

Chair Butler

Calls meeting to order at 1:52 p.m.

252

Sen. Bruce Starr

Discusses the SB 896 A-3 amendment (Exhibit 6). The amendment increases the incentive. The intent is to provide an incentive because of the growing demand for water transit. Oregon has a huge opportunity to move people across the Willamette River in the Portland area. The bill is about bringing new jobs, new opportunity, and new business. The fiscal impact would be minimal. 

335

Dan Yates

Testifies in support of SB 896 and reads from written testimony (not submitted to the committee).

TAPE 183, SIDE A

019

Chair Butler

Comments that the bill does not specify that the vessels are to be built in Oregon. Comments that the property tax exemption would be

for real and personal property belonging to the manufacturer that would exceed $1 M.

032

Martin-Mahar

Comments that there is no definition of “property” in the amendment.

036

Sen. Starr

His understanding is that “property” pertains to real estate and equipment. Discussion with Martin-Mahar.

040

Yates

Comments that he is only a ship buyer, not a ship builder. Discusses a potential ship builder interested in a currently empty facility in Portland.

055

Rep. Hass

Asks about the enterprise zones in north Portland and whether they would be applicable to the shipyards. Discussion with Yates and Sen. Starr.

066

Sen. Starr

Discusses his conversation with the Chair of Senate Revenue about increasing the incentive.

078

Chair Butler

Comments about the tax credits. Discussion with Sen. Starr.

090

Rep. Boquist

Asks if anyone in Oregon is currently eligible for this credit.

095

Sen. Starr

Responds that he is not aware of anyone currently eligible. Adds that the definition of “high-speed water vessel” has been more tightly defined in the amendment.

103

Yates

In response to Rep. Boquist, discusses the specifics of a high-speed water vessel that he is researching for river transit.

160

Rep. Berger

Expresses concerns about policy issues. Asks for comments on why the previous builder left.

180

Sen. Starr

Discusses policy issues previously discussed in Senate committees.

200

Yates

Discusses a ship builder in Washington who is interested in coming to Oregon.  

248

Rep. Boquist

Discusses other facilities in Oregon with Yates.

265

Rep. Galizio

Asks if Portland offers any incentives to ship builders.

274

Yates

Responds that the Portland Development Commission only extends incentives in urban renewal districts at this time.

293

Chair Butler

Discusses the SB 896 A-3 amendment with Sen. Starr.

304

Martin-Mahar

Clarifies the exemption amount as stated in the amendment with Sen. Starr.

329

Rep. Berger

Recommends a seven year sunset provision for all incentives.

331

Rep. Hass

Expresses concern about the property tax component because there may be enterprise zone issues that might apply.

352

Rep. Berger

Comments that the property exemption should be more tightly defined. Discussion with Yates.

383

Sen. Starr

Will work with staff to make requested changes.

CLOSES PUBLIC HEARING FOR SENATE BILL 896 A

OPENS WORK SESSION FOR SENATE BILL 21

TAPE 182, SIDE B

012

Mazen Malik

Gives update on SB 21. Discusses the main points of the bill regarding investments in foreign securities.

027

Rep. Berger

MOTION: MOVES SB 21 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

031

Rep. Boquist

Expresses concern about the bill, but states that he will vote for the bill.

041

Chair Butler

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

CLOSES WORK SESSION FOR SENATE BILL 21

OPENS WORK SESSION FOR SENATE BILL 22

050

Malik

Gives update on SB 22. Refers to handout (Exhibits 10 and 11) that shows the organization of the Oregon Investment Council (OIC).  Discusses the main points of the bill regarding investment of funds by the State Treasurer.  

080

Chair Butler

Clarifies the main points of the bill with Malik.

104

Rep. Berger

Comments that it is her understanding that other state and local government entities in addition to the State Treasurer make fund investments without going through an intermediary.

106

Malik

Responds that other governmental entities would go through the State Treasurer to make investments. They could not go out on their own to invest.

116

Rep. Boquist

Comments that the information contained in the Staff Measure Summary regarding what the bill does needs more clarification (see Exhibit 4 from 05/17/05).

125

Malik

Discusses the information in the Staff Measure Summaries that were presented at the Senate Revenue Committee on 01/31/05 and the House Revenue Committee on 05/17/05.

137

Rep. Berger

Asks for a new Staff Measure Summary that clarifies ownership information.

140

Malik

Responds that he will provide a new Staff Measure Summary.

148

Rep. Riley

Clarifies that local government entities own the investments, but they cannot invest on their own.

150

Malik

Responds that current statute states that local governments cannot own common stocks in any companies, but they can invest through the Investment Pool. Discussion with Chair Butler.

176

Rep. Berger

MOTION: MOVES SB 22 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

181

Chair Butler

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

CLOSES WORK SESSION FOR SENATE BILL 22

OPENS WORK SESSION FOR SENATE BILL 23 A

195

Malik

Summarizes SB 23 A. The bill clarifies language in various statutes regarding bond investments. Refers to the SB 23 A-2 amendment (Exhibit 12).

240

Chair Butler

Refers to the testimony from Harvey Rogers (see Exhibit 9 from 05/17/05) that summarized the technical changes.

249

Rep. Berger

MOTION: MOVES THE ADOPTION OF THE SB 23 A-2 AMENDMENT.

255

Chair Butler

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

258

Rep. Berger

MOTION: MOVES SB 23 A AS AMENDED TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

269

Chair Butler

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

CLOSES WORK SESSION FOR SENATE BILL 23 A

OPENS WORK SESSION FOR SENATE BILL 24

285

Steve Meyer

Summarizes SB 24 which deals with the Common School Fund.  

309

Chair Butler

Refers to the handout from the Treasurer’s Office (Exhibit 13) regarding distribution out of the Common School Fund.

347

Rep. Berger

MOTION: MOVES SB 24 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

354

Chair Butler

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

CLOSES WORK SESSION FOR SENATE BILL 24

OPENS WORK SESSION FOR SENATE BILL 25 A

360

Martin-Mahar

Gives summary of SB 25 A pertaining to the College Savings Network. Refers to the revenue impact statement (Exhibit 14).

417

Chair Butler

REP. KOMP MOVES SB 25 A TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

423

Chair Butler

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

CLOSES WORK SESSION FOR SENATE BILL 25 A

443

Chair Butler

Adjourns meeting at 2:57 p.m.

Tape Log Submitted by:

Reviewed by:

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator