Item 2C: Ratification of IGR Minutes

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Ms. Wilson, responding to a question from Ms. Ortiz, noted that a revenue impact statement had been requested by State legislators in the most recent hearings regarding HB 3485 and maintained that unless such information was made available the bill was unlikely to pass in its current form. Mr. Nelson further noted that the tax credits provided in HB 3485 would be offered in perpetuity although the tax credits would only be available to businesses for five years after their initial investments in the applicable equipment or materials. Ms. Wilson noted that there was a bill currently in the legislature and was very likely to pass that would require the State to review all available tax credits to ensure that they were functioning as they were originally intended to. Ms. Taylor moved to adopt an oppose position on HB 3485. The motion died for lack of a second. Ms. Ortiz confirmed that HB 3485 would be forwarded to the Eugene City Council for further review and discussion. SB 621 - Relating to Oregon Production Investment Fund; amending ORS 284.368 and 315.514; and prescribing an effective date. Ms. Wilson provided a brief description of SB 621 to the committee members and noted that staff was currently recommending a Priority 3 support position regarding the bill. Ms. Wilson noted that the current $5 million tax credit for film production in the State of Oregon had been exhausted within six months of its inception. She further noted that SB 621 had been initiated at the request of Governor Kulongoski to help support Oregon's growing film production industry and would increase the current total tax credit to $7.5 million. Ms. Wilson, responding to a question from Ms. Taylor, commented that it was unknown whether or not film productions companies might find the State of Oregon, and the City of Eugene in particular, attractive enough on its own to the point where the tax credits would be unnecessary. Ms. Ortiz, seconded by Mr. Poling, moved to adopt a Priority 3 Support posi- tion regarding SB 621. Ms. Wilson, responding to a question from Ms. Ortiz, explained that the tax credits would be applicable to actual Oregon expenses over $750,000.00 that a production company incurred on a film or television series shot within the State Ms. Wilson, responding to a question from Ms. Taylor, noted that Governor Kulongoski apparently believed that the tax credits provided in SB 621 would encourage increased film production in the State. Ms. Piercy, responding to comments from Ms. Taylor, maintained that tax credits such as those provided in SB 621 were designed to encourage businesses and generate revenue for the State and were not necessarily a needless tax giveaway. Ms. Taylor felt that film production companies might be willing to come to Oregon without the tax credits provided under SB 621. Ms. Wilson, responding to a question from Mr. Poling, confirmed that SB 621 would increase the total tax credit from $5 million to $7.5 million and would also provide partial reimbursement for salaries and expenses for State residents hired by out of state film production companies to work on local projects. MINUTES—Council Committee on Intergovernmental Relations May 20, 2009 Page 2