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