WORK SESSION

HB 3481 A, HB 2070A, SB 23 A

 

TAPES 190-191 A,190 B

 

HOUSE REVENUE COMMITTEE

JUNE 9, 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. Chuck Riley

 

 

Member Excused:                     Rep. Andy Olson

                                                                       

 

                       

Witnesses Present:                      Dave Nelson, Oregon Seed Council & Oregon Dairy Farmers Assn.

                                                Paul Cosgrove, American Forest & Paper Assn.

                                                Rep. Chuck Burley, Dist. 54

                                                Maggie Vandehey, Dept. of Environmental Quality (DEQ)

 

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Lizbeth Martin-Mahar, Economist

                                                Mazen Malik, Economist

                                                Steve Meyer, Economist

                                                Kristi Bowman, Committee Assistant                                            

                                                                                               

                                                                                   

 

TAPE 190, SIDE A

006

Acting Chair Berger

Calls meeting to order at 1:49 p.m.

 

 

 

OPENS WORK SESSION FOR SENATE BILL 23 A

 

 

 

011

Mazen Malik

Discusses the SB 23 A-3 amendment (Exhibit 4 from 06/08/05).

 

 

 

023

Rep. Hass

MOTION: MOVES THE ADOPTION OF THE SB 23 A-3 AMENDMENT.

 

 

 

026

Acting Chair Berger

Discussion with Malik about the amendment. Makes reference to HB 2395 (Exhibit 6 from 06/08/05).

 

 

 

078

Chair Butler

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

 

 

 

 

084

Rep. Boquist

MOTION: MOVES SB 23 A AS AMENDED TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION AND BE PLACED ON THE CONSENT CALENDAR.

 

 

 

092

Rep. Komp

Asks why this bill would be placed on the consent calendar instead of going to the floor for debate.

 

 

 

094

Rep. Boquist

Responds that this bill contains technical changes, and it has been discussed thoroughly in the Senate.

 

 

 

100

Chair Butler

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

 

 

 

CLOSES WORK SESSION FOR SENATE BILL 23 A

 

 

 

OPENS WORK SESSION FOR HOUSE BILL 3481 A

 

 

 

103

Lizbeth Martin-Mahar

Discusses the main points of possible amendments that will clarify certain sections of the bill: (discussion interspersed)

  • ·         Definition of property that is new to the owner
  • ·         Farm storage facilities
  • ·         Agricultural producer
  • ·         Allowance of tax credit for producer and user which can be the same person; change in the tax credit amount
  • ·         Disallowance of transfer of the tax credit
  • ·         Add language to specify research and development tax credit
  • ·         Change to biomass definitions
  • ·         Exclusion of small wood chippers for the pollution control tax credit
  • ·         Dept. of  Environmental Quality (DEQ) technical changes

 

 

 

140

Rep. Berger

Asks if the references to farm storage facilities pertain to the pollution control tax credit or to the property tax credit.

 

 

 

145

Martin-Mahar

Responds that they pertain to the pollution control tax credit.

 

 

 

149

Chair Butler

General comments about the definition of storage facilities. Additional comments by Rep. Berger.

 

 

 

169

Dave Nelson

Discusses the definition of storage facilities.

 

 

 

185

Rep. Berger

Asks if the two tax credits are mutually exclusive or if they can use both.

 

 

 

187

Martin-Mahar

Explains the statutes that will apply to each credit. A person with a new storage facility for biofuel storage could use both the pollution control and property tax credits.

208

Nelson

Additional comments on storage facilities and tax credits.

 

 

 

213

Rep. Boquist

Comments that the bill has broad language regarding farm storage facilities.

 

 

 

230

Chair Butler

Expresses concern that the amendment language reflect that the credit is for new facilities only.

 

 

 

243

Rep. Komp

Asks if an existing storage facility could be retrofitted to claim a credit.

 

 

 

245

Nelson

Responds that a facility built since 1987 would be eligible for the pollution tax credit.

 

 

 

264

Paul Cosgrove

Discusses Section 6 of the bill referring to farm storage facilities.

 

 

 

278

Chair Butler

Clarifies that the credit would be for new construction only. Discussion with Nelson, Cosgrove, and Martin-Mahar about the credit.

 

 

 

338

Rep. Boquist

Comments on the “per ton of biomass” and the relating tax credit in the bill. Discussion with Nelson about the density of different commodities.

 

 

 

383

Chair Butler

Comments and discussion about whether the tax credit applies to the producer or to the user.

 

 

 

TAPE 191, SIDE A

047

Rep. Chuck Burley

Discusses the amount of the tax credit and what it is supposed to cover. Discussion with Chair Butler.

 

 

 

076

Rep. Burley

Comments that the tax credit was originally intended for the producer. Discusses the credit as it applies to a purchaser in the wood products industry. Comments on the federal program for biofuels. Discussion with Chair Butler.

 

 

 

151

Martin-Mahar

Explains the DEQ handout (Exhibit 1). 

 

 

 

199

Rep. Hass

Points out that the largest credit was claimed by PGE/Enron in 2004.

 

 

 

212

Martin-Mahar

Comments that there is not a complete fiscal analysis available at this time. Discussion with Chair Butler.

 

 

 

236

Rep. Boquist

Asks about the pollution control tax credit regarding the percentage increase of expenses stated in the Revenue Impact Statement (Exhibit 3 from 06/08/05).

 

 

 

250

Martin-Mahar

Responds that the figures add together. Once DEQ determines the type of companies involved, the other figures will be completed.

 

266

Maggie Vandehey

Discusses potential amendments from DEQ:

  • ·         Language concerning farm storage buildings
  • ·         Clarifying language needed in Sec. 3 (a) (d); pg. 4, line 29-30

 

 

 

301

Rep. Galizio

Asks about the 164 applications for PGE/Enron as stated on the handout (Exhibit 1).

 

 

 

303

Vandehey

Responds that those applications are for the life of the program. Only one application was used for the Trojan decommission.

 

 

 

337

Rep. Hass

Asks about DEQ’s opinion of the pollution tax credit program. Discussion with Vandehey about the intent of the credits.

 

 

 

360

Vandehey

Discussion with Rep. Boquist about specific industries that received tax credits. Comments that 2004 was an anomaly. Most credits that year went to wood chippers, material and recovery facilities, and high-tech firms.

 

 

 

CLOSES WORK SESSION FOR HOUSE BILL 3481 A

 

 

 

OPENS WORK SESSION FOR HOUSE BILL 2070 A

 

 

 

423

Steve Meyer

Gives overview of HB 2070 A (Exhibit 2). The bill requires that a resident school district contract with another district regarding the transfer of a student with an Individual Education Program (IEP).  

 

 

 

445

Chair Butler

General comments about the bill.

 

 

 

470

Rep. Berger

Asks if a district must agree to transfer a student, or if they can opt-out.

 

 

 

TAPE 190, SIDE B

035

Chair Butler

Responds that a district is not mandated to accept an IEP student. The resident district would transfer their allotted IEP funds to the accepting district.

 

 

 

044

Rep. Hass

Discussion with Chair Butler about the need for this bill.

 

 

 

061

Rep. Komp

MOTION: MOVES HB 2070 A TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

066

Chair Butler

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

 

 

 

CLOSES WORK SESSION FOR HOUSE BILL 2070 A

 

 

 

072

Chair Butler

Adjourns meeting at 2:49 p.m.

 

 

Tape Log Submitted by:

Reviewed by:

 

 

 

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator

 

Exhibit Summary:

  • 1.      HB 3481, Handout: Pollution Control Tax Credits, Martin-Mahar, 3 pp., 06/09/05
  • 2.      HB 2070, Staff Measure Summary, Keller, 1 pg., 05/05/05
  • 3.      HB 2070, Revenue Impact Statement, Meyer, 1 pg., 04/21/05