HOUSE COMMITTEE ON

AGRICULTURE AND NATURAL RESOURCES

 

 

April 03, 2003 Hearing Room HR D

1:00 PM Tapes  55 - 58

 

 

MEMBERS PRESENT:            Rep. Jeff Kropf, Chair

Rep. George Gilman, Vice-Chair

Rep. Kelley Wirth, Vice-Chair

Rep. Terry Beyer

Rep. Dave Hunt

Rep. Donna Nelson

Rep. Patti Smith

 

STAFF PRESENT:                  Ray Kelly, Committee Administrator

David Peffley, Committee Assistant

 

MEASURES HEARD:                     HB 2957 – Public Hearing and Work Session

                                                HB 3152 – Public Hearing

                                                HB 3269 and HB 3270 – Public Hearing

 

 

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 55, A

004

Chair Kropf

Calls the meeting to order at 1:01 p.m. and opens a public hearing on         HB 2957.

 HB 2957 – Public Hearing

014

Ray Kelly

Committee Administrator.  Summarizes HB 2957.

028

Chair Kropf

Recesses the meeting.

029

Chair Kropf

Reconvenes the meeting.

029

Joe Gilliam

Oregon Grocers Association.  Submits (EXHIBIT A) and testifies in support of HB 2957.  Explains the effects of this legislation.   

066

Jean Underhill Wilkinson

Submits (EXHIBIT B) and testifies in support of HB 2957.  Affirms Gilliam’s testimony and speaks to the undue costs on the agricultural community.

097

Gilliam

Points out the FDA’s opinion on Measure 27. Speaks to labeling criteria.

110

Rep. Hunt

Addresses -1 amendments (EXHIBIT C) and asks about preemptions of state agencies.

118

Gilliam

Affirms the state agencies jurisdictions.

121

Hunt

Asks Gilliam about the distribution of grocery food.

125

Gilliam

States that the food they distribute comes from all over the United States.

144

Hunt

Asks Wilkinson about local production amongst OFB members.

146

Wilkinson

States that she doubts much of the production is consumed locally.

156

Richard North

Submits (EXHIBIT D) and testifies in opposition to HB 2957.  States that the bill is well-intentioned but ill-conceived.  Informs as to the hazardous risks of genetically-engineered foods. Testifies to the presence of the bovine growth hormone contained in milk, which has alledgedly been linked to cancer. 

369

Mafe Chase

Speaks in opposition to HB 2957 in that genetically-engineered food often contains hazardous chemicals.  States that many other countries have outlawed genetically-engineered food and we should at least label it.

TAPE 56, A

004

Chase

Concludes testimony.

009

Jim Feldmann

Speaks in opposition to HB 2957.  States that we need to be open about the process and that we’re experiencing novel technology and we need to have knowledge about what we’re consuming.

113

Rep. Gilman

Claims that RGBH is a great enhancer of milk production. Asks why those with concerns don’t just drink organic milk.

128

North

Notes that all consumers in Oregon can not find or afford organic. Reaffirms that the main concern of this bill is to take away our right to know and to act.

165

Rep. Gilman

Asks for clarification on Vermont’s labeling laws.

170

North

States that they are made by local decisions.

182

Rep. Nelson

Asks what the witnesses want to achieve.

192

North

States that they want to retain the discussion and input on labeling.

204

Rep. Nelson

States that HB 2957 does not restrict the right to ask.

219

North

States that this is not a criticism of the USFDA, but that it’s nearly impossible to get them to reverse their stance. Assesses their chances for legislation are better at the state level.

256

Rep. Nelson

Restates that the bill does not preempt the consumer from asking for information.

268

North

States that their lawyers couldn’t decipher the intent of the bill. 

283

Chair Kropf

Restates Rep. Nelson’s concern with the bill so that they can understand.  Notes that the consumers still have the right to take action on this bill.

304

North

Asserts that Sections 1 and 2 preempt the democratic process.

316

Rep. Hunt

Asks where he bought the milk and where it was produced.

322

North

Replies that he bought the milk in Durham, OR and it was made in Pleasanton, CA.

329

Rep. Hunt

Asks North who he sees as being the most effective arbiter.

343

North

Replies that he sees the state legislature as being the best arbiter.  Discusses Oregon taking the lead in progressive legislation in previous bills, like the beach bill and the bottle bill.

373

Rep. Hunt

Asks North if he would support a state-level FDA.

381

North

Replies that he doesn’t see the need to create another state agency.

407

Chair Kropf

Closes the public hearing on HB 2957 and opens a work session on      HB 2957.

The following prepared testimony is submitted for the record without public testimony for HB 2957.

 

Ken Yates

Submits (EXHIBIT M).

 

Tosha Kauffman-Smith

Submits (EXHIBIT N).

 

Shane Smith

Submits (EXHIBIT O).

 

E. Daniel Seymour

Submits (EXHIBIT P).

HB 2957 – WORK SESSION

410

Rep. Nelson

MOTION:  Moves to ADOPT HB  2957-1 amendments dated 3/31/03.

 

 

VOTE:  7-0

416

Chair Kropf

Hearing no objection, declares the motion CARRIED.

424

Rep. Nelson

MOTION:  Moves HB 2957 to the floor with a DO PASS AS AMENDED recommendation.

433

Rep. Nelson

MOTION:  Moves HB  2957 to the floor with a DO PASS AS AMENDED recommendation.

437

Chair Kropf

VOTE:  6-1

AYE:               6 - Beyer, Gilman, Hunt, Nelson, Smith P., Kropf

NAY:               1 – Wirth

 

Chair

The motion CARRIES.

KROPF will lead discussion on the floor.

454

Chair Kropf

Closes the work session on HB 2957 and opens a public hearing on     HB 3152.

TAPE 55, B

HB 3152 – PUBLIC HEARING

019

Ray Kelly

Summarizes HB 3152.

027

Ross Holloway

Oregon Department of Forestry (ODF).  Submits (EXHIBIT E) and states support for HB 3152. citing the added flexibility it gives ODF.  Also expresses concerns with the bill.

050

Rep. Nelson

Expresses concern for the bureaucracy involved in harvesting timber..

058

Holloway

Asserts that the department is very efficient.

069

Chair Kropf

Asks if this process is routinely done on state lands.

071

Holloway

Affirms that it is.

074

Chair Kropf

Asks if the process is the same for federal government.

076

Holloway

Affirms that the process is completely different.

078

Rep. Nelson

Expresses frustration with the slow pace of forest management.

083

Holloway

States understanding of Rep. Nelson’s concerns.

101

Jim Nass

Submits (EXHIBIT F) and supplies informational testimony on the judicial review sections of the bill.

135

Rep. Nelson

Expresses concern over the federal government’s role in forestry.

142

Nass

States that he is not certain of the role of the federal government.  Restates his concern with the judicial review contained in the bill.

162

Rep. Beyer

Asks what changes to expect from this legislation.

172

Chair Kropf

Points out that the bill came from the majority office and suggests that Rep. Beyer and Andy High from the majority office might discuss this after the meeting.  Closes the public hearing on HB 3152 and opens public hearings on HB 3269 and HB 3270, en bloc.

The following prepared testimony is submitted for the record without public testimony for HB 3152.

 

Sybil Ackerman

Conservation Director, Audubon Society.  Submits (EXHIBIT Q).

HB 3269 and HB 3270 – PUBLIC HEARING

200

Chair Kropf

Introduces and explains his bills and his intention to improve the Oregon meats industry. Announces that they are drafting an amendment to HB 3270 with 1% of the proceeds from this program going to the Oregon food bank.

299

Rep. Smith

Asks about the figure of $10 million.

301

Chair Kropf

Replies that it is a random figure and open to discussion.  States that the committee may wish to work through this bill.  

307

Rep. Smith

Asks why economic development can’t give grants without this legislation.

320

Chair Kropf

States that this question should be addressed to the witnesses and notes that the property tax issue requires legislation.

350

Glen Stonebrink

Oregon Cattlemen Association (OCA).  Testifies that Oregon has a unique opportunity to improve the cattle industry and urges passage of these bills.

384

Coy Cowart

President-elect, OCA.  Submits (EXHIBIT K) and testifies in favor of HB 3269 and HB 3270.  Speaks to USDA regulations in relation to the proposed legislation. Addresses the history and background of beef industry. 

TAPE 56, B

001

Cowart

Continues testimony.  Discusses the challenges of environmental regulations and world competition.  Introduces the Oregon Country Beef and Painted Hills Co-ops. 

115

Rep. Beyer

Asks about specific barriers which need removal.

120

Cowart

Expresses concern with various environmental barriers.

141

Stonebrink

Adds that US environmental regulations are the most stringent in the world.

160

Chair Kropf

Asks about impediments to business and whether it is in complying with USDA requirements.

167

Chris Bartel

Operator, General Manager, S-Bar Pack.  Speaks to impediments and the big packers taking over businesses. Explains the operations of his slaughter house.  Talks about exports to Asia and about being able to compete in the marketplace.

279

Rep. Wirth

Addresses the unmet demand for Oregon beef.  States that removal of barriers seems like the biggest impediment to the industry.  Asks for confirmation of her assertion.

319

Cowart

States that getting by barriers has been very difficulty and discusses the new niches. Talks about the importance of the customer-demand base.

407

Rep. Beyer

Asks about S-Bar’s expansion plans.

414

Bartel

Discusses where they wish to expand to.

TAPE 57, A

039

Rep. Gilman

Asks how much it would cost to set up a plant to irradiate hamburger.

041

Bartel

Replies that it would cost about $1 million.

045

Chair Kropf

Asks Bartel the costs of expanding their enterprise.

047

Bartel

Replies $3-400,000.

060

Chair Kropf

Asks how these bills impact Oregon beef.

068

Bartel

Talks about competitive difficulties and asks the Chair to address the 1% donation.

095

Chair Kropf

Discusses the 1% and asks how it would balance the tax cut. Asks Bartel how it would impact the business.

108

Bartel

Notes the financial hardships it would cause.

111

Chair Kropf

Asks if a lower number might work.

115

Bartel

States that he likes the idea, but expresses doubt.

130

Chair Kropf

Asks how much it costs to process one head of cattle.

132

Bartel

Responds that it costs around $250 to cut and wrap.

135

Chair Kropf

Asks what would be the best method of packaging for food banks.

137

Bartel

Replies custom cut and wrap.

138

Rep. Nelson

Asks the costs to start up a plant.

149

Bartel

Replies $6 million.

155

Rep. Nelson

Asks if we could regionalize this operation.

161

Cowart

States that the best thing to do would be to tour a facility.

185

Rep. Nelson

Asks how Korea prefers their beef.

192

Bartel

States that they want it as fresh as possible, they prefer Angus and if possible would like the cow whole and live.  Adds that they like the well-marbled beef.

211

Rep. Nelson

Asks why Economic Development Department is not involved in this process.

222

Cowart

Notes the inequities in the system.

232

Ron Fox

Oregon Economic Community Development.  Speaks to the concepts of the proposed legislation.  States concern with the dedication of funds.

261

Rep. Nelson

States concern that we’re deferring our responsibilities to other states.

277

Fox

States the departments commitment to improving the value-added component of Oregon’s business.

290

Margaret Magruder

Submits (EXHIBIT H) and testifies in support of HB 3269 and         HB 3270.  Speaks to the proliferation of Oregon Lamb.

311

Glen Krebs

Reaffirms Magruder’s dedication to producing lamb and notes that Oregon is one of the top ten lamb producing states in the country.  Speaks to the need to increase value-added business, costs and benefits.

423

Rep. Nelson

Asks about the ratio of production needs amongst the various meats.

447

Krebs

Speaks to consumption trends within the industry.

TAPE 58, A

018

Rep. Nelson

Asks about facilities to handle the lamb.

020

Krebs

Notes that they are too poor to compete with those in other countries.

021

Rep. Nelson

Asks if multi-species slaughterhouses exist.

022

Krebs

Attests that it’s not practical.

028

Chair Kropf

Asks for the cost of establishing a state of the art processing plant.

030

Krebs

Replies about $2 million dollars for a lamb-processing plant.

032

Chair Kropf

Asks how much it would cost for a cattle plant.

034

Krebs

Replies that it would depend on the size.

036

Nelson

Opines that it would cost about $5 million.

038

Krebs

Speaks to the increase in the cost of lamb.

043

Magruder

Speaks to Krebs’ plant in Australia.

053

Rep. Nelson

Asks about irradiation of lamb.

055

Kreebs

Notes that irradiation is mainly for ground beef.

066

Mary Stewart

Agri-Business Council.  Submits (EXHIBIT I), (EXHIBIT J), and (EXHIBIT K).  Shares evidence of potential growth in the rural areas.  Testifies that niche sales will increase jobs and the economy.

169

Rep. Nelson

Asks why it has taken so long to introduce this kind of legislation.

177

Stewart

Echoes those same sentiments.

182

Greg Addington

Oregon Farm Bureau (OFB).   Submits (EXHIBIT L) and testifies that OFB supports the concepts of these bills. Offers help in readdressing issues which may need amending in these bills.

215

Dalton Hobbs

Oregon Department of Agriculture (ODA).  Offers perspective of the scope of this bill and the critical need for this legislation. Speaks to the need to conform to other high consumer standards, like those in Japan.

344

Rep. Nelson

Asks if we have any reciprocal agreements with other nations.

348

Hobbs

Alludes to trade agreements like the WTO and NAFTA and market-driven specifications.

355

Rep. Nelson

Asks about reciprocity with regard to trade agreements and possible restrictions.

373

Hobbs

Speaks to partnerships agreements and investment.

388

Chair Kropf

Asks how many loans have been made for the purpose of which this legislation has been directed.

393

Hobbs

States uncertainty, but doesn’t believe much has been loaned.

411

Chair Kropf

Asks about the existence of the Governor’s Strategic Reserve Fund and the Oregon Business Development Fund.

416

Hobbs

Affirms that in one form or another, they have been.

433

Chair Kropf

Notes that since the funds have not been accessed, we need to move forward in prioritizing goals for fund dedication.

439

Hobbs

Adds that new niches continue to arise and the marketplace can now support the industry, thus new opportunities are arising.

TAPE 57, B

004

Hobbs

Concludes testimony.  Offers Rep. Nelson to witness the shipping of livestock to Korea.

025

Rep. Nelson

Notes the effort to increase business development.

037

Chair Kropf

Reaffirms the desire to take advantage of the emerging markets.  Closes the public hearing on HB 3269 and HB 3270 and adjourns the meeting at 4:01.

 

EXHIBIT SUMMARY

 

A – HB 2957, written testimony, Joe Gilliam, 3 pp.

B – HB 2957, written testimony, Jean Wilkinson, 2 pp.

C – HB 2957, -1 amendments, staff, 1 p.

D – HB 2957, written testimony, Richard North, 3 pp.

E – HB 3152, written testimony, Ross Holloway, 2 pp.

F – HB 3152, written testimony, Jim Nass, 2 pp.

G – HB 3269 and HB 3270, written testimony, Coy Cowart, 1 p.

H – HB 3269 and HB 3270, written testimony, Margaret Magruder, 2 pp.

I – HB 3269 and HB 3270, written information, Mary Stewart, 1 p.

J – HB 3269 and HB 3270, written information, Mary Stewart, 1 p.

K – HB 3269 and HB 3270, written information, Mary Stewart, 1 p.

L – HB 3269 and HB 3270, written testimony, Greg Addington, 2 pp.

 

The following exhibits are listed out of order in the body of the tape log.

 

M – HB 2957, written testimony, Ken Yates, 2 pp.

N – HB 2957, written testimony, Tosha Kauffman-Smith, 1 pp.

O – HB 2957, written testimony, Shane Smith, 1 p.

P – HB 2957, written testimony, Daniel Seymour, 1 p.

Q – HB 3152, written testimony, Sybil Ackerman, 1 p.