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--> --> Lawmakers approve delay with sidestep of partial deregulation By Jessica Bujol Associated Press Writer SALEM (AP) - Lawmakers approved a delay of Oregon's move to partial deregulation of the electric markets and a capital gains tax cut as they made a push Sunday for what's expected to be the adjournment of the 2001 Legislature this week. The Oregon House was tackling a backlog of bills after Democrats spent last week in hiding to protest a Republican redistricting plan that would have circumvented Gov. John Kitzhaber's veto pen. Without the Democrats, the House lacked a quorum. The Sunday session was also an indication that time is running out on the 71st Legislature. Among the bills the House dealt with was a measure to delay electric deregulation by five months with HB 3633. Lawmakers sent the measure to the governor on a 53-6 vote. A law passed by the 1999 Legislature would as of Oct. 1 permit the biggest business customers of Portland General Electric and PacifiCorp, the state's two largest privately owned electric utilities, to buy electricity on the open market. The law doesn't end regulation of electricity rates for homes and small businesses. Legislators have been skittish about deregulation because of California's failed system and the Northwest's drought conditions that are causing doubts about hydropower supplies for next winter. The House had originally called for an 18-month delay, but Senate amendments whittled the time down to a five-month delay. "I think the prudent thing here is to accept the Senate amendments," said Rep. Jim Hill, R-Hillsboro. Rep. Donna Nelson aagreed. "I still stand firm that 18 months is needed, but unfortunately, it's this bill or none," the McMinnville Republican said. The measure also includes a provision to help low-income Oregonians pay electric bills that are expected to skyrocket this fall. There seemed to be no hint of animosity after last week's drama as lawmakers came together to start the drive toward adjournment. But there was a healthy dose of partisan debate on a measure to cut the capital gains tax. Supporters of the cut, mainly Republicans, said the tax stifles economic growth. Oregon's capital gains tax can be as high as 9 percent, making it the second-highest in the country, behind California. SB67 would phase in a drop to 4 percent over the next four years to avoid adversely affecting the current budget. The bill heads to the governor, where it is expected to face a veto. "Today we have the opportunity to stimulate investment and increase our senior citizens' portfolios," said Rep. Dan Doyle, R-Salem. Democrats railed against the cut, saying it benefits the wealthiest Oregonians at the expense of the poorest. Opponents also cited forecasts showing with the capital tax decrease, the Legislature would lose more than $500 million by the 2007 session. "We're saying we'll take the easy tax cut vote and let future Legislatures deal with the shortages," said Rep. Mark Hass, D-Beaverton. Email your... Technical questions & comments to: WebMaster Daily Tidings editorial comments & questions to: Editor Visit our other Oregon Newspapers... | Albany Democrat-Herald | Ashland Daily Tidings | Corvallis Gazette-Times | | Lebanon Express | Newport News-Times | Springfield News | Cottage Grove Sentinel | Ashland Daily Tidings 1661 Siskiyou Blvd. Ashland, OR 97520 Telephone 541-482-3456 © Copyright 2001 Lee Northwest Publishing