PUBLIC HEARING: SB 896, SB 866

WORK SESSION: SB 25

 

TAPE 78-A

 

SENATE REVENUE COMMITTEE

MARCH 28, 2005   8:30 AM   STATE CAPITOL BUILDING

 

Members Present:                  Senator Ryan Deckert, Chair

                                                Senator Gary George

                                                Senator Rick Metsger

                                                Senator Floyd Prozanski

                                                Senator Charles Starr, Vice Chair

 

Witnesses Present:                Senator Bruce Starr, District 15

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Lizbeth Martin-Mahar, Economist

                                                Barbara Guardino, Committee Assistant

 

 

TAPE 78, SIDE A

005

Chair Deckert

Calls meeting to order at 8:35 a.m. Notes, this week the committee will hear tax credit bills.

 

WORK SESSION, SB 25

015

Lizbeth Martin-Mahar

Gives overview of SB 25 and -1 amendments. SB 25 allows the Treasury Department the ability to accept donations for awarding scholarships, grants and other incentives to account owners and their beneficiaries (EXHIBITS 1 & 2). See-1 amendments (EXHIBIT 3), which better define the uses of the donated funds and amend Statute 348.256.

 

035

Sen. Metsger

MOTION: MOVES ADOPTION OF SB 25-1.

 

037

Chair Deckert

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS.

VOTE: 3-0-2

MEMBERS VOTING AYE: METSGER, C. STARR, DECKERT

MEMBERS EXCUSED: PROZANSKI, GEORGE

 

039

Sen. Metsger

MOTION: MOVES SB 25 AS AMENDED TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

VOTE: 4-0-1

MEMBERS VOTING AYE: METSGER, PROZANSKI, C. STARR, DECKERT

 MEMBERS EXCUSED: GEORGE

 

 

 

PUBLIC HEARINGS, SB 896, and SB 866

060

Martin-Mahar

Gives overview of SB 896. Establishes a new employer tax credit for wages paid to employees who assist in the manufacture of a water transit vessel (EXHIBITS 4, 5). The tax credit is the lesser of a certain portion. Credit amounts are yet to be determined. Revenue impact is minimal.

 

092

Chair Deckert

Comments on creation of a revenue impact statement.

 

101

Martin-Mahar

Responds to Chair Deckert’s comments.

 

115

Sen. B. Starr

Begins testimony in favor of SB 896. Notes, the bill can be amended concerning the issue of layoff and rehiring. See written testimony, verbatim (EXHIBIT 6). Notes errors in testimony – “866” should read “896.” Also see concept drawing of a ship (EXHIBIT 7).

 

155

Chair Deckert

Asks if it is necessary to further define “water transit vessel” and what are Oregon’s opportunities to entice manufacturers to come here.

 

169

Sen. B. Starr

Will provide a definition. Comments about providing incentives.

 

188

Chair Deckert

Expresses interest in SB 896. Believes it would bring new jobs to the state that pay a decent salary.

 

202

Martin-Mahar

Begins overview of SB 866 (EXHIBIT 8). Bill proposes two tax credits: One establishes a new employer tax credit for a portion of the wages paid to an expansion in the number of full-time employees of the business during the tax year. Percentage is blank. The other establishes a business tax credit for the health insurance premiums paid by an employer for the benefit of employees.

 

256

Martin-Mahar

Notes, this bill may need additional language to exclude self-employed individuals.

 

 

 

281

Sen. B. Starr

Testifies in favor of SB 866. See written testimony (EXHIBIT 9) verbatim. This bill will encourage small businesses to hire workers, thus putting Oregonians back to work. The first three sections of the bill provide incentives for businesses to hire new employees. Percentage is blank.

 

306

Sen. B. Starr

Directs members’ attention to a Corvallis Gazette-Times editorial which highlights Oregon’s unemployment (EXHIBIT 10).

 

346

Sen. Metsger

Thanks Sen. B. Starr for sponsoring this bill. Expresses particular interest in the incentive for increased health insurance coverage.

 

374

Chair Deckert

Asks Sen. B. Starr to work with Paul Warner on scheduling people to testify in regard to SB 896.

 

397

Chair Deckert

Notes issues coming up later this week; double majority and a “gut-and-stuff” on telecom taxes.

 

416

Chair Deckert

Closes public hearings on SB 896 and SB 866. Adjourns meeting at 9:02 a.m.

 

           

 

 

Tape Log Submitted by,

 

 

 

Barbara Guardino, Committee Assistant                                                      

 

Exhibit Summary:

1.      SB 25, Revenue Impact of Proposed Legislation, Martin-Mahar, 1 pp.

2.      SB 25, Staff Measure Summary, Martin-Mahar, 1 pp.

3.      SB 25, -1 amendments, Martin-Mahar, 2 pp.

4.      SB 896, Revenue Impact of Proposed Legislation, Martin-Mahar, 1 pp.

5.      SB 896, Staff Measure Summary, Martin-Mahar, 1 pp.

6.      SB 896, Testimony in Support of SB 896, Senator Bruce Starr, March 28, 2005, 1 pp.

7.      SB 896, concept drawing of a ship, B. Starr, 1 pp.

8.      SB 866, Staff Measure Summary, Martin-Mahar, 1 pp.

9.      SB 866, Testimony in Support of SB 866, Senator Bruce Starr, March 28, 2005, 1 pp.

10.  SB 866, Corvallis Gazette-Times, “Oregon’s new jobs largely bring low pay”, B. Starr, 2 pp.