WORK SESSION: SB 412-A

PUBLIC HEARING: HB 2951-A

 

TAPES 135, 136 A

 

SENATE REVENUE COMMITTEE

JUNE 8, 2005† †9:00 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:††††††††††††††† Michelle Deister, League of Oregon Cities

††††††††††††††††††††††††††††††††††††††††††††††† Dexter Johnson, Legislative Counsel

††††††††††††††††††††††††††††††††††††††††††††††† Marge Kafoury, City of Portland

††††††††††††††††††††††††††††††††††††††††††††††† Ralph Groener, AFSCME

††††††††††††††††††††††††††††††††††††††††††††††† Rep. Linda Flores, District 51

††††††††††††††††††††††††††††††††††††††††††††††† Tina Kotek, Children First for Oregon

††††††††††††††††††††††††††††††††††††††††††††††† Julia Brim-Edwards, Nike Inc.

 

Staff Present:††††††††††††††††††††††††† Paul Warner, Legislative Revenue Officer

††††††††††††††††††††††††††††††††††††††††††††††† Mary Ayala, Economist

††††††††††††††††††††††††††††††††††††††††††††††† Lizbeth Martin-Mahar, Economist

††††††††††††††††††††††††††††††††††††††††††††††† Barbara Guardino, Committee Assistant

 

TAPE 135, SIDE A

005

Chair Deckert

Calls meeting to order at 9:08 a.m. Committee will pass out SB 412-A (urban renewal) today.

 

WORK SESSION, SB 412-A

015

Chair Deckert

Notes SB 412-A5 amendment, which deletes the opt-out provision, has already been heard. Asks Michelle Deister to discuss SB 412-A6 amendment.

 

019

Michelle Deister

Testifies in support of SB 412-A6 amendment (EXHIBIT 2), which removes language inserted in the bill that relates to duration. An end date on an urban renewal plan can cause difficulties. An urban renewal agency cannot control when a private sector business chooses to make an investment. Currently, there is a limit on how big a debt can get. Maximum indebtedness gives agencies the flexibility to pay off a bond. SB 412-A6 alleviates concerns that some projects would not be completed. Businesses wonít want to invest with uncertainty.

 

052

Sen. Metsger

Asks for an explanation of line 12 of SB 412-A6 amendment, which deletes current statute (page 6, lines 1-27 of the bill).

 

062

Deister

Will check, but does not believe this deletes current statute.

 

 

 

082

Dexter Johnson

Explains that page 6, lines 1-27 is not deleted from current law, it is simply deleted from the bill.

 

099

Sen. Prozanski

Asks Deister to explain why the contents of SB 412-A6 were not brought up sooner during the group meeting.

103

Deister

Responds, this issue was discussed in the work group but there was no consensus.

 

107

Chair Deckert

Asks for an example of when deleting the duration would be a problem.

 

110

Deister

Describes a situation on South Waterfront in Portland, where Congress is delaying transportation funds and there is no way to complete the project.

 

123

Marge Kafoury

Expands on South Waterfront situation. Bonds are sold based on what the investment is expected to be. Without the investment, projects have to be scaled back.

 

140

Vice Chair C. Starr

Favors passing the SB 412-A6 amendment today.

 

151

Sen. Prozanski

Agrees with Sen. C. Starr, but asks for consideration of a periodic review for how long projects are extended.

 

181

Sen. George

Asks, who would determine whether a project needs to be ended or extended?

 

188

Deister

The urban renewal agency makes that decision.

 

197

Sen. Prozanski

Continues comments on adding a review.

 

221

Vice Chair C. Starr

MOTION: MOVES ADOPTION OF SB 412-A5 AMENDMENT.

 

223

Chair Deckert

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 4-0-1. VOTING AYE: GEORGE, PROZANSKI, C. STARRT, DECKERT. EXCUSED: METSGER.

 

226

Vice Chair C. Starr

MOTION: MOVES ADOPTION OF SB 412-A6 AMENDMENT.

 

228

Chair Deckert

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 4-0-1. VOTING AYE: GEORGE, PROZANSKI, C. STARRT, DECKERT. EXCUSED: METSGER.

 

230

Vice Chair C. Starr

MOTION: MOVES SB 412-A AS AMENDED TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

232

Chair Deckert

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 4-0-1. VOTING AYE: GEORGE, PROZANSKI, C. STARRT, DECKERT. EXCUSED: METSGER.

 

 

 

PUBLIC HEARING, HB 2951-A

244

Lizbeth Martin-Mahar

Gives overview of HB 2951-A (EXHIBIT 4). Extends the current law sunset date of January 1, 2007 on the dependent care assistance income tax credit to January 1, 2027. Extending the sunset will have an additional revenue impact (EXHIBIT 5).

260

Chair Deckert

Asks why the House Revenue Committee set the extension at 20 years.

 

269

Martin-Mahar

Responds, there was no discussion on the actual number. This is an A-engrossed bill; the original bill deleted it.

 

272

Sen. Prozanski

Asks how long itís been since the sunset was in place. Follow-up questions.

 

276

Martin-Mahar

Will get that information.

 

 

 

288

Vice Chair C. Starr

Comments, 20 years is a good alternative to removing the sunset altogether. Is willing to move the bill as-is today.

 

315

Sen. George

Comments, we need to encourage child care, not discourage it.

 

340

Ralph Groener

Testifies in favor of the bill on behalf of the union. Notes a conflict of interest with this bill. Day care tax credit benefits companies and the state. AFSCME would appreciate expansion of this program.

 

388

Rep. Linda Flores

Testifies that this bill benefits employees and is an incentive to employers. It helps child care become a viable commodity. Day care providing businesses tell her how helpful this tool is as an incentive to their employees. Employment turnover is lowered. Urges support for HB 2951-A.

 

442

Tina Kotek

Discusses One Voice for Child Care Coalition. See handout (EXHIBIT 7). The coalition supports the 20-year extension, and would like to see greater utilization of this credit and the sunset extended. Refers to a memo that lists types of businesses that use the credit (EXHIBIT 8).

 

 

 

TAPE 136, SIDE A

020

Julia Brim-Edwards

Testifies on behalf of Nike. Reads written testimony (EXHIBIT 9) paraphrased. The Joe Paterno Child Development Center on Nikeís campus in Beaverton has a large waiting list, and Nike wants to expand the center. Encourages the committee to pass this bill.

 

051

Chair Deckert

Asks whether Nike would be expanding child care without extension of the sunset on this program.

 

057

Brim-Edwards

Responds, itís a qualitative issue for Nike, but for other companies it makes the difference between child care and no child care.

 

066

Rep. Flores

Adds, day care owners she has spoken to say it would be difficult for them to enlist employees without this benefit. Not having this credit would have a severe impact on smaller employers.

 

076

Kotek

Concurs. Without this tax credit, small businesses might stop providing child care.

084

Sen. Prozanski

Asks what can be done to get more companies to use this. Only 26 companies have accessed it.

 

092

Kotek

One reason for the lack of use is that larger businesses have other deduction opportunities. As far as doing better, the legislature can continue to let businesses know this is available.

 

107

Brim-Edwards

Suggests working with business associations to raise awareness.

 

117

Chair Deckert

Asks if there is a carry-forward.

 

120

Martin-Mahar

Responds, it is five years.

 

126

Chair Deckert

Will talk to the sponsor about drafting an amendment for a 10-year sunset. Closes public hearing. Adjourns meeting at 9:45 a.m.

 

 

 

Tape Log Submitted by,

 

 

 

Barbara Guardino, Committee Assistant††††††††††††††††††††††††††††††††††††††††††††††††††††††

 

Exhibit Summary:

1.      SB 412-A, Staff Measure Summary for SB 412-A5, Ayala, 6/8/05, 1 pp.

2.      SB 412-A, Amendment SB 412-A6, Legislative Counsel, 6/7/05, 1 pp.

3.      SB 412-A, Staff Measure Summary for SB 412-A6, Ayala, 6/8/05, 1 pp.

4.      HB 2951-A, Staff Measure Summary, Martin-Mahar, 6/8/05, 1 pp.

5.      HB 2951-A, Revenue Impact of Proposed Legislation, Martin-Mahar, 4/21/05, 1 pp.

6.      HB 2951-A, Staff Measure Summary, Martin-Mahar, 4/27/05, 1 pp.

7.      HB 2951-A, ONE VOICE for Child Care, Kotek, 6/8/05, 1 pp.

8.      HB 2951-A, memo from Heidi McGowan, Commission for Child Care, Kotek, 6/8/05, 1 pp.

9.      HB 2951-A, testimony of Julia Brim-Edwards, 6/8/05, 2 pp.

10.  HB 2951-A, written testimony of Nanette Bittler, 1 pp.