WORK SESSION

SB 31, SB 283, HB 2671

 

TAPES 196-197 A

 

HOUSE REVENUE COMMITTEE

JUNE 30, 2005   1:00 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:                      Larry Campbell, Magna Entertainment

                                                Mark Nelson, Oregon Restaurant Assn. (ORA)

                                                Debra Buchanan, Dept. of Revenue

 

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Lizbeth Martin-Mahar, Economist

                                                Mary Ayala, Economist

                                                Mazen Malik, Economist                             

                                                Kristi Bowman, Committee Assistant                                            

                                                                                               

                                                                                   

 

TAPE 196, SIDE A

002

Chair Butler

Calls meeting to order at 1:03 p.m.

 

 

 

OPENS WORK SESSION FOR HOUSE BILL 2671

 

 

 

012

Mazen Malik

Gives summary of HB 2671 previously discussed on 04/18/05. The bill allows Oregon race tracks to have up to 50 lottery machine game terminals. The HB 2671-3 amendment (Exhibit 1) lowers the number of machines to 30. Discusses the revenue impact (see Exhibit 7 dated 04/18/05). There is no fiscal impact (Exhibit 2).

 

 

 

042

Chair Butler

Asks if there has been additional public response to the reduced number of machines as proposed in the HB 2671-3 amendment.

 

 

 

053

Larry Campbell

Testifies in support of the HB 2671-3 amendment regarding the number of machines. It would resolve the question about the definition of casino gambling at the racetracks. The net increase for Magna Corp. would be 10 additional machines.

 

 

 

080

Mark Nelson

Testifies that the ORA opposed the HB 2671-2 amendment because of the lottery commission amount that would be paid to the racetracks. Comments that the dominant purpose/dominant use for Portland Meadows will always be horse racing. Thirty machines will not rise to the level of casino gambling. Adds that he has not received any opposition from interested parties regarding the reduction of machines.

 

 

 

110

Nelson

Comments that the Portland Meadows track has a gambling interdiction staff person on duty during the hours of operation.

 

 

 

126

Rep. Berger

MOTION: MOVES THE ADOPTION OF THE HB 2671-3 AMENDMENT.

 

 

 

130

Rep. Berger

Comments that while she appreciates the economic value of adding lottery machines to the racetracks, she opposes gambling to raise revenue. She supports the “mixed-use” gambling issue in this bill.

 

 

 

144

Chair Butler

Asks for roll call vote.

 

 

 

153

Chair Butler

ORDER: THE MOTION HAVING RECEIVED THE REQUIRED MAJORITY IS DECLARED PASSED. VOTE: 9-0-0. VOTING AYE: BOQUIST, ESQUIVEL, GALIZIO, KOMP, OLSON, RILEY, BERGER, HASS, BUTLER.

 

 

 

154

Chair Butler

Comments that he votes reluctantly for the amendment because there is some “basic opposition to gambling.” However, it is an economic activity, and the racetrack industry has demonstrated a “real responsibility” in addressing gambling issues.

 

 

 

157

Rep. Berger

MOTION: MOVES HB 2671 AS AMENDED TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

166

Chair Butler

Asks for roll-call vote.

 

 

 

173

Chair Butler

ORDER: THE MOTION HAVING RECEIVED THE REQUIRED MAJORITY IS DECLARED PASSED. VOTE: 8-1-0. VOTING AYE: BOQUIST, ESQUIVEL, GALIZIO, KOMP, OLSON, RILEY, BERGER HASS. VOTING NO: BUTLER.

 

 

 

189

Chair Butler

Calls AT EASE at 1:16 p.m.

 

 

 

190

Chair Butler

Calls meeting to order at 1:18 p.m.

 

 

 

CLOSES WORK SESSION FOR HOUSE BILL 2671

 

 

 

OPENS WORK SESSION FOR SENATE BILL 283

 

 

 

191

Mary Ayala

Gives overview of SB 283 and the SB 283-1 amendment (see Exhibit 4 dated 05/02/05) previously discussed on 05/18/05. The bill pertains to a property tax exemption for a limited liability company that is wholly owned by a non-profit corporation.

 

 

 

 

210

Chair Butler

Comments that the SB 283-2 amendment (Exhibit 3) is part of SB 31 and will not be adopted as part of SB 283. The only amendment being considered for today’s hearing is the SB 283-1 amendment.

 

 

 

212

Ayala

Discusses the revenue impact of the SB 283-1 amendment (Exhibit 5).

 

 

 

230

Chair Butler

MOTION: MOVES THE ADOPTION OF THE SB 283-1 AMENDMENT.

 

 

 

233

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.

 

 

 

246

Chair Butler

ORDER: REP. BERGER MOVES SB 283 AS AMENDED TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

250

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 283

 

 

 

OPENS WORK SESSION FOR SENATE BILL 31  

 

 

 

273

Chair Butler

Calls AT EASE at 1:23 p.m.

 

 

 

275

Chair Butler

Calls meeting to order at 1:26 p.m. General comments about the various amendments to SB 31.

 

 

 

286

Lizbeth Martin-Mahar

Gives overview of amendments previously discussed for SB 31 (Exhibit 9 handout). Discusses the SB 31-16 amendment (see Exhibit 16 dated 06/16/05). The amendment is a very narrow tax exemption for certain warehouses. The revenue impact is minimal (see Exhibit 18 dated 06/16/05).

 

 

 

324

Debra Buchanan

Testifies that the SB 31-16 amendment is written narrowly enough that it will not allow an Oregon corporation to avoid counting the throwback sales. It will allow an out-of-state corporation to have a little more presence in the state without including throwback sales in their apportionment factor. Discussion with Chair Butler.

 

 

 

358

Rep. Berger

MOTION: MOVES THE ADOPTION OF THE SB 31-16 AMENDMENT.

 

 

 

362

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.

 

 

 

 

369

Chair Butler

Comments that the SB 31-8 and SB 31-9 amendments are no longer being considered.

 

 

 

381

Martin-Mahar

Discusses the SB 31-15 amendment (Exhibit 9 handout) which expands the residential energy tax credit amount. Refers to the Revenue Impact Statement (see Exhibit 15 dated 06/16/05). This amendment is the same as SB 733.

 

 

 

437

Rep. Berger

MOTION: MOVES THE ADOPTION OF THE SB 31-15 AMENDMENT.

 

 

 

468

Chair Butler

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

 

 

 

TAPE 197, SIDE A

030

Martin-Mahar

Discusses SB 31-17 amendment (Exhibits 10 and 11). The amendment is the same as HB 3454 A that was passed out of the House Revenue Committee on 05/03/05. The amendment pertains to property tax exemptions for certain tangible and intangible property rights. Refers to the Revenue Impact Statement (Exhibit 12).

 

 

 

046

Rep. Berger

Asks if the amendment is essentially the same as HB 3454 A.

 

 

 

050

Martin-Mahar

Responds that the SB 31-17 amendment does not change HB 3454 A.

 

 

 

055

Chair Butler

Discussion with Rep. Hass and Rep. Boquist regarding why there is an amendment to SB 31 that is the same as HB 3454 A.

 

 

 

081

Chair Butler

Comments about a potential Senate amendment to HB 3454 A.

 

 

 

090

Rep. Hass

Asks if the Senate amendment is adopted, would it put SB 31 in jeopardy? Discussion with Chair Butler on policy issues in both bills.

 

 

 

122

Chair Butler

ORDER: REP. RILEY MOVES THE ADOPTION OF THE SB 31-17 AMENDMENT.

 

 

 

125

Chair Butler

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

 

 

 

130

Chair Butler

ORDER: REP. BERGER MOVES SB 31 AS AMENDED TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

 

 

135

Chair Butler

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

 

 

 

CLOSES WORK SESSION FOR SENATE BILL 31

 

141

Chair Butler

Adjourns meeting at 1:40 p.m.

 

 

Tape Log Submitted by:

Reviewed by:

 

 

 

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator

 

Exhibit Summary:

  1. 1.      HB 2671, Amendment HB 2671-3, Leg. Counsel, 1 pg., 06/30/05
  2. 2.      HB 2671, Fiscal Statement, Leg. Fiscal Office, 1 pg., 06/30/05
  3. 3.      SB 283, Amendment SB 283-2, Leg. Counsel, 2 pp., 06/20/05
  4. 4.      SB 283, Staff Measure Summary SB 283-1, Ayala, 1 pg., 06/29/05
  5. 5.      SB 283, Revenue Impact Statement SB 283-1, Ayala, 1 pg., 06/29/05
  6. 6.      SB 283, Amendment Summary, Ayala, 1 pg., 06/30/05
  7. 7.      SB 283, Staff Measure Summary SB 283-2, Ayala, 1 pg., 06/29/05
  8. 8.      SB 283, Revenue Impact Statement SB 283-2, Ayala, 1 pg., 06/29/05
  9. 9.      SB 31, SB 31 Handout: Amendments Summary, Martin-Mahar, 2 pp., 06/30/05
  10. 10.  SB 31, Amendment SB 31-17, Leg. Counsel, 2 pp., 06/20/05
  11. 11.  SB 31, Staff Measure Summary, Martin-Mahar, 2 pp., 06/30/05
  12. 12.  SB 31, Revenue Impact Statement, Martin-Mahar, 1 pg., 06/24/05