WORK SESSION: HB 2945-A, HB 2933-B,

HB 2191-B, HB 3350-B, HB 2776-A, HB 3358

 

TAPES 148, 149, A-B

 

SENATE REVENUE COMMITTEE

JUNE 27, 2005   1:00 PM   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:                Rep. Brian Boquist, District 23

                                                Rep. Tom Butler, District 60

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Lizbeth Martin-Mahar, Economist

                                                Mary Ayala, Economist

                                                Barbara Guardino, Committee Assistant

 

 

TAPE 148, SIDE A

005

Chair Deckert

Calls meeting to order at 1:10 p.m. Opens work session on HB 2945-A and HB 2933-B.

 

WORK SESSIONS, HB 2945-A, HB 2933-B

019

Rep. Brian Boquist

Reports that a work group, which included Rep. Boquist, Sen. George and Rep. Dave Hunt and other veterans, met to combine veterans’ bills. Gives overview of HB 2945-A and HB 2933-B.

 

047

Mary Ayala

Gives overview of HB 2945-A2 amendment (EXHIBIT 1). It attaches to HB 3334-B, a property tax exemption on property up to $60,000. Explains combined revenue and fiscal impacts (EXHIBITS 2, 3, & 4).

 

060

Sen. Prozanski

Asks whether the committee needs to consider adoption of one or both bills.

 

066

Chair Deckert

Responds, the committee needs to adopt all amendments, which are the product of the group’s work.

 

077

Rep. Boquist

HB 2933 will become the income tax portion of the bill.

 

082

Vice Chair C. Starr

MOTION: MOVES ADOPTION OF HB 2945-A2 AMENDMENT.

 

084

Chair Deckert

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 5-0-0. VOTING AYE: GEORGE, METSGER, PROZANSKI, C. STARR, DECKERT.

 

090

Vice Chair C. Starr

MOTION: MOVES HB 2945-A AS AMENDED TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

092

Chair Deckert

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 5-0-0. VOTING AYE: GEORGE, METSGER, PROZANSKI, C. STARR, DECKERT.

098

Lizbeth Martin-Mahar

Notes that the HB 2933-B3 amendment (EXHIBIT 5) contains SB 19. It allows the Umatilla group to have the personal income tax military compensation benefit. Clears up a discrepancy. The bill will connect to changes in federal law. HB 3096 is the HB 2933-B4 amendment (EXHIBIT 6).

 

135

Martin-Mahar

Discusses HB 2933-B3 and HB 2933-B4 revenue impact statement (EXHIBIT 7).

 

148

Rep. Boquist

Explains why the revenue impact is so high over the first few years. Also discusses soldiers’ life insurance increase.

 

165

Chair Deckert, Sen. Prozanski

Thank Rep. Boquist and his group for their hard work.

 

 

184

Vice Chair C. Starr

MOTION: MOVES ADOPTION OF HB 2933-B3 AMENDMENT.

 

186

Chair Deckert

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

 

188

Vice Chair C. Starr

MOTION: MOVES ADOPTION OF HB 2933-B4 AMENDMENT.

 

190

Chair Deckert

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

 

192

Vice Chair C. Starr

MOTION: MOVES HB 2933-B AS AMENDED TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

194

Chair Deckert

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 5-0-0. VOTING AYE: GEORGE, METSGER, PROZANSKI, C. STARR, DECKERT

 

WORK SESSION, HB 3350-B, HB 2776-A, HB 3358

214

Rep. Tom Butler

Testifies in support of HB 3350-B which expands the small city investment program. It involves 21 counties and is an excellent jobs bill for small communities.

 

219

Rep. Butler

Discusses an amendment that was adopted in House Revenue, sponsored by RREDZ (Rural Renewal Energy Development Zones). It is now Section 5 of the bill. Discusses HB 2776-A, which deals with long-term preservation of historic property special assessment, and HB 2776-A3 amendment (EXHIBIT 12), which clarifies that this tax credit is for residential property only.

 

 

 

267

Chair Deckert

Recalls a conversation with the Parks and Recreation Department, which raised concerns late in the game.

 

273

Rep. Butler

Responds, the HB 2776–A3 amendment addresses the concerns of Parks and Recreation that commercial properties would take advantage of this credit.

 

332

Rep. Butler

HB 3358 creates a tax credit for withdrawing from the Individual Development Account (IDA) for settlement and closing costs of a primary residence. It assists with down payments and expands IDA for primary residences for closing costs up to $2000.

 

359

Vice Chair C. Starr

MOTION: MOVES HB 3358 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

362

Acting Chair Metsger

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 3-0-2. VOTING AYE: GEORGE, METSGER, C. STARR. EXCUSED: PROZANSKI, DECKERT

 

365

Vice Chair C. Starr

MOTION: MOVES ADOPTION OF HB 2776-A3 AMENDMENT.

 

369

Chair Metsger

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 3-0-2. VOTING AYE: GEORGE, METSGER, C. STARR. EXCUSED: PROZANSKI, DECKERT

 

374

Vice Chair C. Starr

MOTION: MOVES HB 2776-A AS AMENDED TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

376

Chair Metsger

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 3-0-2. VOTING AYE: GEORGE, METSGER, C. STARR. EXCUSED: PROZANSKI, DECKERT

 

393

Martin-Mahar

Reminds committee that Art Fish from the Office of Economic Community Development has provided background information for HB 3350-B (EXHIBIT 14).

 

403

Vice Chair C. Starr

MOTION: MOVES HB 3350-B TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

406

Chair Metsger

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 3-0-2. VOTING AYE: GEORGE, METSGER, C. STARR. EXCUSED: PROZANSKI, DECKERT

 

WORK SESSION, HB 2191-B

415

Martin-Mahar

Gives overview of HB 2191-B, which encourages investment in Oregon’s commercial film industry. Explains revenue losses.

 

439

Vice Chair C. Starr

Comments that HB 2191-B appears to be losing revenue, but it is actually encouraging the filming industry and is an investment.

 

 

 

441

Vice Chair C. Starr

MOTION: MOVES HB 2191-B TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

443

Chair Metsger

Agrees, this is an investment in revenue and jobs.

446

Chair Metsger

ORDER: THERE BEING NO OBJECTION THE CHAIR SO ORDERS. VOTE: 3-0-2. VOTING AYE: GEORGE, METSGER, C. STARR. EXCUSED: PROZANSKI, DECKERT

 

449

Chair Metsger

Reminds committee that it is on one-hour meeting notice. Adjourns meeting at 1:40 p.m.

 

 

 

Tape Log Submitted by,

 

 

 

Barbara Guardino, Committee Assistant                                                      

 

Exhibit Summary:

1.      HB 2945-A, Amendment HB 2945-A2, Legislative Counsel, 6/21/05, 4 pp.

2.      HB 2945-A, Staff Measure Summary, Ayala, 6/27/05, 2 pp.

3.      HB 2945-A, Revenue Impact of Proposed Legislation, Ayala, 6/27/05, 2 pp.

4.      HB 2945-A, Fiscal impact statement, HB 2945-A2 amendment, Staff, 6/27/05, 1 pp.

5.      HB 2933-B, Amendment HB 2933-B3, Legislative Counsel, 6/14/05, 2 pp.

6.      HB 2933-B, Amendment HB 2933-B4, Legislative Counsel, 6/21/05, 4 pp.

7.      HB 2933-B, Revenue Impact of Proposed Legislation for HB 2933-B3+B4, Martin-Mahar, 6/27/05, 2 pp.

8.      HB 2933-B, Staff Measure Summary, Martin-Mahar, 6/27/05, 2 pp.

9.      HB 3350-B, NEW “RREDZs”, Staff, 3 pp.

10.  HB 3350-B, Counties Where Business Development Taxable Income Exemption Applies, Staff, 1 pp.

11.  HB 3350-B, chart for Business Development Taxable Income Exemption, Staff, 1 pp.

12.  HB 2776-A, Amendment HB 3350-A3, Butler, 6/3/05, 1 pp.

13.  HB 2776-A, Staff Measure Summary, Ayala, 6/27/05, 2 pp.

14.  HB 3350-B, memo from Arthur Fish, 6/3/05, 6 pp.