PUBLIC HEARING & WORK SESSION

SB 1083, HB 2542-A

PUBLIC HEARING HB 3481-B

 

TAPES 158 A, 159 A

 

SENATE REVENUE COMMITTEE

JULY 7, 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:                Tim Nesbitt, Oregon AFL-CIO

                                                Don Schellenberg, Oregon Farm Bureau

                                                Scott Ashcom, Oregon Agriculture Alliance

                                                Tamara Brickman, Oregon Employment Department

                                                Dexter Johnson, Legislative Council Office

                                                Matt Blevins, Oregon Environmental Council

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                LizBeth Martin-Mahar, Economist

                                                Linda K. Gatto, Committee Assistant

 

 

TAPE 158 SIDE A

005

Chair Deckert

Calls the meeting to order at 9:10 a.m. Announces that HB 3232 will not be heard today. Opens the public hearing on SB 1083.

 

SB 1083 – Public Hearing

016

Chair Deckert

Seeing and hearing no one to testify on SB 1083 closes the public hearing and opens a work session on SB 1083.

SB 1083 – Work Session

018

Paul Warner

Legislative Revenue Officer. Explains the revenue implications of the -3 amendments (EXHIBIT 1). Reviews the chart showing the revenue impact of the credit against minimum wage increases (EXHIBIT 2).

054

Sen. Metsger

Asks if the -3 amendments address concerns raised yesterday about encompassing broader activities outside agriculture. Asks about the marketable credit.

068

Warner

Answers marketable credit is targeted to those at minimum wage and includes the group of agriculture industries included in the original SB 1083. States that the marketable credits are for those firms that have a net income.

101

Warner

Adds that marketable credits sell for 80 to 90 cents on the dollar.

104

Sen. C. Starr

Discusses the growth of employees earning minimum wage in agriculture and the increased use of mechanized harvesting. Asks where is the job growth in agriculture.

115

Warner

Explains that this estimate is not scientifically derived. The Economic and Revenue forecast is based on the non-farm payroll employment survey.  Explains that his estimate (EXHIBIT 2) is based on 1% growth a year which implies shrinkage relative to influences in the economy.

 

138

Sen. C. Starr

MOTION:  Moves to ADOPT SB 1083-3 amendments dated 7/6/05.

140

Sen. Prozanski

Refers to testimony yesterday regarding the broadness of the application of the credit; that it was his impression it was being narrowed.

154

Tim Nesbitt

President, AFL-CIO Oregon. Senses a common purpose to subsidize certain employers to support and keep jobs.

184

Sen. George

Recalls that initially he thought it would be possible to provide health care for some of those workers. States that agriculturist cannot transfer additional costs to the consumer.

195

Nesbitt

Agrees that it could be proposed that the subsidy be limited to the jobs that provide health care.

201

Sen. Metsger

Reads the list of agricultural industries that are included. Supports narrowing the definition to the first paragraph.

234

Sen. C. Starr

Agrees to a degree; notes there are family farmers trying to make a living from the land.

262

Don Schellenberg

Oregon Farm Bureau. Expresses that the entire agricultural industry is being hurt by an increased wage base. States that Idaho uses 700 H2A workers out of 33,000 to 35,000 peak employment and all are used as sheep herders or irrigators not in crop production and mostly at $5.15 minimum wage.

334

Schellenberg

Comments on the credits and states support for the -3 amendments.

341

Scott Ashcom

Oregon Agriculture Alliance. States the purpose of SB 1083 is to stop attrition and migration of jobs out of state. 

390

Ashcom

Adds that the Oregon Department of Agriculture determined last year that there was a loss of jobs and attributed that loss to the increase in minimum wage.

396

Chair Deckert

States some are globally competitive and there is no margin to pass on costs. States there are areas where the environments are competitive but not globally competitive such as honey bees.

424

Sen. C. Starr

Comments on the importance of honey bees to the agricultural industry in Oregon. Notes that farmers pay to have these bees and it is a competitive market.

461

Sen. Prozanski

Comments that he thought the tax credit would be focused on assisting those who are struggling to stay competitive and provide minimum wage jobs.

500

Tamara Brickman

Legislative Coordinator, Oregon Employment Department. Refers to the requirement to report the number of people employed within the definition. States that the department tracks covered employment and notes that not all agricultural employees are covered for purposes of unemployment insurance.

 

TAPE 159, SIDE A

052

Chair Deckert

States the bill will continue to be worked on.

059

Sen. C. Starr

Withdraws his motion on the -3 amendments.

060

Chair Deckert

Closes the work session on SB 1083 and opens the public hearing on HB 2542.

HB 2542 – PUBLIC HEARNG

067

Chair Deckert

Seeing and hearing no one to speak to HB 2542 closes the public hearing on HB 2542 and opens the work session on HB 2542.

HB 2542 – WORK SESSION

070

Sen. Metsger

MOTION:  Moves to ADOPT HB 2542-A13 amendments dated 6/30/05 (EXHIBIT 3).

073

Sen. C. Starr

Asks if the -13 amendments increase taxes, does it require a super majority on the floor.

090

Chair Deckert

Answers that this is not a revenue raising measure.

095

LizBeth Martin-Mahar

Economist, Legislative Revenue Office. Explains that Oregon has not yet connected to the federal legislation, current law is as it is. Explains that one criterion to determine if the super majority is needed is whether the intent is to not raise taxes.

113

Dexter Johnson

Legislative Counsel Office. Concludes that the reconnect bill, as presently constructed, is not a bill requiring the super majority. States that the primary purpose in this bill is to connect to recent changes in federal tax law.

131

Sen. George

Inquires whether the original disconnect required a super majority vote and could it be an issue later.

136

Martin-Mahar

Answers no, the original "A" engrossed bill had a very big revenue loss to the state.

143

Johnson

States that the federal law was different then.

161

Sen. George

Explains why he cannot support this.

168

 

VOTE:  3-2-0

AYE:               3 - Metsger, Prozanski, Deckert

NAY:               2 - George, Starr C.

170

Chair Deckert

The motion CARRIES.

173

Sen. Metsger

MOTION:  Moves HB 2542 to the floor with a DO PASS AS AMENDED recommendation.

175

 

VOTE:  3-2-0

AYE:               3 - Metsger, Prozanski, Deckert

NAY:               2 - George, Starr C.

178

Chair Deckert

The motion CARRIES.

SEN. DECKERT will lead discussion on the floor.

180

Chair Deckert

Closes the work session on HB 2542. Recesses the meeting until ten minutes following the end of business of the morning floor session.

201

Sen. C. Starr

States notice of possible minority report on HB 2542.

Meeting is recessed from 9:51 a.m. to 11:50 a.m.

209

Chair Deckert

Reconvenes the meeting at 11:50 and opens the work session on SB 1083.

212

Sen. Metsger

Explains the consensus on SB 1083 is to return to the original language as drafted in SB 1083 but equine stabling, horse shows and dog kenneling; things that are not traded sectors in agriculture are eliminated.

233

Chair Deckert

Closes the work session on SB 1083 and opens the public hearing on HB 3481.

HB 3481 – PUBLIC HEARING

238

Matt Blevins

Legislative Director, Oregon Environmental Council. Explains the -B19 amendments (EXHBIT 4) are the -B17 amendments without the fee increase funding for clean emission school buses.

251

Sen. C. Starr

Asks about the -B18 amendments (EXHIBIT 5).

255

Martin-Mahar

Believes these are a further revision of the -B12 amendments. (See the outline of proposed amendments and staff measure summary (EXHIBIT 6).

284

Sen. George

Asks if diesel vehicles would be eliminated.

306

Sen. Prozanski

Asks if the -B19 amendments incorporate the -B18 amendments.

311

Blevins

Explains that in the -B17 and -B19 amendments remove methanol from the band of fuel additives; the -B18 also added the methanol and bio-diesel plants to the siting exemption.  

332

Sen. C. Starr

Objects to the mandate.

334

Chair Deckert

Expects that this will go to a conference committee. Suggests waiting until Friday giving everyone an opportunity to review the amendments.

357

Martin-Mahar

Notes that the Tri-Met pollution control tax credit is not in the -B19 amendments.

367

Chair Deckert

States that HB 3481 and SB 1083 will post for work sessions tomorrow following floor session.

387

Chair Deckert

Closes the public hearing on HB 3481 and adjourns the meeting at noon.

 

 

 

Tape Log Submitted by,

 

 

 

Linda K. Gatto, Committee Assistant                                                

 

Exhibit Summary:

1.      SB 1083, -3 amendments, staff, 4 pp

2.      SB 1083, chart, staff, 1 p

3.      HB 2542A, -A13 amendments, staff, 5 pp

4.      HB 3481B, -B19 amendments, staff, 56 pp

5.      HB 3481B, -B18 amendments, staff, 2 pp

6.      HB 3481B, outline of proposed amendments and staff measure summary, staff, 5 pp