HOUSE SPECIAL SESSION COMMITTEE ON

ECONOMIC GROWTH AND JOB DEVELOPMENT

September 11, 2002 Hearing Room 357

4:30 pm Tapes 14 - 15

MEMBERS PRESENT: Rep. Jeff Kropf, Chair

Rep. Alan Brown

Rep. Dan Doyle

Rep. Al King

Rep. Jerry Krummel

Rep. Kathy Lowe

MEMBER EXCUSED: Rep. Elaine Hopson

STAFF PRESENT: Ray Kelly, Administrator

Nancy Massee, Administrative Support

MEASURE/ISSUES HEARD: HB 4072-6 Public Hearing and Work Session

HM 5 Work Session

These minutes are in compliance with Senate and House Rules. Only text enclosed in quotation marks reports a speaker’s exact words. For complete contents, please refer to the tapes.

TAPE/#	Speaker	Comments
TAPE 14, A
009	Chair Kropf	Opens meeting at 4:35 p.m. Introduces Rep. Doyle and Rep. Krummel as new committee members replacing Rep. G. Smith and Rep. Knopp. Explains how HM 5 came about. Explains Rep. Butler’s LC that is in progress. Explains status of HB 4072. Opens public hearing on HB 4072.
PUBLIC HEARING HB 4072
117	Chair Kropf	Explains Exhibits A and B.
155	Tamara Brickman	Oregon Employment Department. Explains where the department gets their information. Employers submit figures for unemployment insurance taxes.
161	Rep. Lowe	Asks what comprises the 38 percent services industry on Exhibit B.
176	Brickman	Replies as an example, restaurants. Will get the information.
181	Rep. Krummel	Asks for explanation of chart.
193	Brickman	Verifies Exhibit B percentages.
209	Rep. Krummel	Asks if manufacturing includes companies like Intel, Tektronix, and Mentor Graphics.
218	Brickman	Responds yes.
219	Chair Kropf	Explains sizes of companies on chart that are more than 50 employees.
240	Rep. King	Asks if this as of September 2002.
245	Brickman	Answers that the data is from the first quarter of 2000. Will get most current information.
248	Rep. King	Discusses seasonal employees. Questions the -6 amendments.
265	Chair Kropf	Discusses language in bill. Asks Counsel Dexter Johnson for clarification.
350	Dexter Johnson	Legislative Counsel (LC). Relates that the term “full time employee” is a defined term in this bill. Describes a business with fluctuating status. In order to be a full time employee one must be there at least 26 weeks.
367	Rep. King	Discusses high seasonal differences that would drive one out of the program.
384	Johnson	Explains that high turnover would not mean many full time employees who work 26 weeks.
410	Rep. King	Discusses high turnover.
TAPE 15, A
006	Chair Kropf	Refers to language on line 14 fewer than 50 employees for the calendar year beginning January 1, 2003, means an average of the entire year’s employment at any given day to be below 50 to qualify.
016	Rep. King	Replies that the bill does not deal with “average.”
022	Johnson	As soon as an employee works 26 weeks that is one employee.
033	Rep. Krummel	Asks about “employee turnover.” Discusses full time positions as related to employee turnover.
052	Johnson	Answers the bill is written in terms of employees, not in terms of positions.
060	Chair Kropf	Closes public hearing. Opens work session on HM 5. (EXHIBIT D)
WORK SESSION HM 5
065	Rep. Lowe	MOTION: Moves HM 5 be sent to the floor with a BE ADOPTED recommendation.
066		VOTE: 6-0 EXCUSED: 1 - Rep. Hopson
067	Chair Kropf	Hearing no objection, declares the motion CARRIED. REP KROPF will lead discussion on the floor.
068	Chair Kropf	Closes work session. Opens work session on HB 4072.
WORK SESSION HB 4072
075	Rep. Lowe	Comments that it is dangerous to adopt a measure that draws from the General Fund since the fiscal consequences of this bill are not fully known at this time.
134	Rep. Doyle	Comments there is some risk in taking money out of the General Fund, but there must be action to stimulate job development in Oregon. Supports the idea and the bill as a step forward.
161	Rep. Krummel	Reiterates this is only for tax year 2003 and qualifiers must be in the first six months.
203	Chair Kropf	Comments there will be some revenue impact. Says there will be $1.8 million for this bill. (EXHIBIT C)
205	Rep. Krummel	Supports the bill and its positive effect on the economy.
210	Rep. Doyle	MOTION: MOVES TO adopt the -6 amendments to HB 4072.
		VOTE: 5 – 1 Ayes: Brown, Doyle, Krummel, Kropf, King Nays: Lowe Excused: Hopson.
212	Chair Kropf	MOTION CARRIED.
214	Rep. Doyle	MOTION: MOVES HB 4072 to the floor with a DO PASS AS AMENDED recommendation.
		VOTE: 4 – 2 Ayes: Brown, Doyle, Krummel, Kropf. Nays: King, Lowe. Excused: Hopson.
		MOTION CARRIED. REP. KROPF will lead discussion on the floor.
216	Chair Kropf	Adjourns meeting at 5:22 p.m.

Transcribed by, Reviewed by,

Nancy Massee Ray Kelly

Committee Assistant Committee Administrator

EXHIBITS:

A – Model of Tax Credit example, LRO staff

B - Chart of Oregon firms, OED staff

C – HB 4072-6, staff

D – HM 5, staff