70th OREGON LEGISLATIVE ASSEMBLY--1999 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2392
A-Engrossed
House Bill 2473
Ordered by the House April 30
Including House Amendments dated April 30
Sponsored by Representative WITT
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Creates Environmental Tax Study Commission. Appropriates moneys
from General Fund. Directs commission to develop proposals for
revamping state taxing structure to reflect costs to environment
of damaging activities and to encourage environmental excellence.
Directs commission to report to Seventy-first Legislative
Assembly.
Sunsets June 30, 2001.
A BILL FOR AN ACT
Relating to the Environmental Tax Study Commission; and
appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) Because taxes create incentives that
influence personal and corporate behaviors, there is hereby
created an Environmental Tax Study Commission with the purpose of
developing proposals for implementing environmental taxes that
shift the tax burden in the state toward undesirable activities
while reducing taxes on activities contributing to the
environmental health of the State of Oregon.
(2) The Environmental Tax Study Commission shall be an advisory
body comprised of 15 members who are well qualified by experience
and interest to make recommendations in the areas of concern
delineated in section 3 of this 1999 Act. The members of the
commission must be citizens of this state and shall be appointed
in the following fashion:
(a) The Governor shall appoint one member.
(b) The Speaker of the House of Representatives shall appoint
two members, at least one of whom shall be a legislator.
(c) The President of the Senate shall appoint two members, at
least one of whom shall be a legislator.
(d) The Director of the Department of Revenue and the
Legislative Revenue Officer shall appoint the balance of the
membership so that two members represent each of the following
interests:
(A) Business;
(B) Resource dependent industries;
(C) Environmental groups;
(D) Social justice or labor groups; and
(E) Public or private health.
(3) A member of the commission other than a member of the
Legislative Assembly is entitled to compensation and expenses as
provided in ORS 292.495.
(4) A member of the commission who is also a member of the
Legislative Assembly shall be entitled to a per diem and other
expense allowances to the extent authorized by the President of
the Senate or the Speaker of the House of Representatives
pursuant to ORS 171.072. Claims of members of the Legislative
Assembly for expenses incurred in performing functions of the
commission shall be paid out of funds appropriated for that
purpose. + }
SECTION 2. { + (1) The Environmental Tax Study Commission
shall select one of its members as chairperson and another as
vice-chairperson, for such terms and with duties and powers
necessary for the performance of the functions of such offices as
the commission determines.
(2) A majority of the members of the commission constitutes a
quorum for the transaction of business.
(3) The commission shall meet at least once every month at a
place, day and hour determined by the chairperson. The commission
also shall meet at other times and places specified by the call
of the chairperson or of a majority of the members of the
commission.
(4) Subject to any applicable provisions of the State Personnel
Relations Law, the commission may cause to be employed such
persons as are necessary to perform the functions of the
commission. The commission shall fix the duties and amounts of
compensation of such employees.
(5) The commission created under authority of section 1 of this
1999 Act may accept contributions of funds and assistance from
the United States, its agencies, or from any other source, public
or private, and agree to conditions thereon not inconsistent with
the purposes of the commission. All such funds are to aid in
financing the functions of the commission and shall be deposited
in the General Fund of the State Treasury to the credit of the
commission and shall be disbursed for the purpose for which
contributed in the same manner as funds appropriated for the
commission.
(6) All agencies, departments and officers of this state are
directed to assist the commission created under section 1 of this
1999 Act in the performance of its functions, and to furnish such
information and advice as the members of the commission consider
necessary to perform their functions.
(7) The Legislative Revenue Office shall provide coordination
and staff support to the commission. + }
SECTION 3. { + (1) The Environmental Tax Study Commission
shall develop a report that includes one or more detailed
proposals for review and consideration by the Seventy-first
Legislative Assembly. Each proposal shall specify how the
Seventy-first Legislative Assembly may implement a system of
environmental taxes over 10 years that incorporates environmental
costs into economic decisions made by individuals and businesses.
(2) The commission should initially consider innovative revenue
concepts, elimination of existing taxes, imposition of new taxes
and uses for revenue created by new taxes. In its deliberations,
the commission shall consider, but not be limited to, the
following potential environmental taxes, fees and concepts:
(a) Permitted air and water pollution taxes that may encourage
pollution prevention and reduce toxic emissions;
(b) Toxic household products taxes to encourage individuals to
seek out and use less environmentally damaging products;
(c) Fertilizer and pesticide taxes to improve water quality;
(d) Carbon taxes to increase energy efficiency and reduce the
risk of global climate change;
(e) Emissions taxes on automobiles to encourage change in the
driving habits of Oregonians;
(f) Water withdrawal fees to encourage water conservation;
(g) Packaging taxes to encourage resource conservation and
reuse of materials; and
(h) Shifting property taxes from buildings to land to encourage
efficient development.
(3) Following the initial review described in subsection (2) of
this section, the commission shall select a maximum of three
potential environmental taxes, fees or concepts for in-depth
study. The commission shall evaluate the selected taxes, fees or
concepts based on the following considerations:
(a) The environmental incentives and the propensity of the tax,
fee or concept to encourage pollution prevention, habitat
restoration or progress toward other environmental and natural
resource goals;
(b) The propensity of the tax, fee or concept to increase
economic prosperity and produce more jobs for Oregonians;
(c) The propensity of the tax to meet environmental or natural
resources goals at a lower cost or more quickly than would
otherwise be achieved through regulations;
(d) The negative impacts, if any, on particular industries or
persons and the feasibility of offsetting tax credits to
compensate for those impacts;
(e) The possibility that the tax, fee or concept may reduce
current taxes on earnings and investments;
(f) The administrative feasibility and costs;
(g) The potential revenue amount and revenue stability over
time; and
(h) The negative impact, if any, on poor or rural Oregonians
and the feasibility of offsetting tax credits to compensate for
those impacts. + }
SECTION 4. { + There is appropriated to the Environmental Tax
Study Commission, for the biennium beginning July 1, 1999, out of
the General Fund, the amount of $200,000 for the purpose of
carrying out this 1999 Act. + }
SECTION 5. { + This 1999 Act is repealed on June 30, 2001. + }
----------