HOUSE COMMITTEE ON

BUSINESS, LABOR AND CONSUMER AFFAIRS

 

 

February 26, 2003   Hearing Room E

8:30 A.M. Tapes  38 - 41

 

MEMBERS PRESENT:            Rep. Betsy Close, Chair

Rep. Derrick Kitts, Vice-Chair

Rep. Diane Rosenbaum, Vice-Chair

Rep. Mary Gallegos

Rep. Bill Garrard

Rep. Jeff Merkley

Rep. Mike Schaufler

 

STAFF PRESENT:                  Megan Palau, Committee Administrator

Mike Reiley, Committee Assistant

 

MEASURE/ISSUES HEARD:            HB 2649 – Public Hearing

                                                HB 2130 – Public Hearing

HB 2480 – Public Hearing

HB 2649 – 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 38, A

003

Chair Close

Calls meeting to order at 8:32 a.m. Opens public hearing on HB 2649.

HB 2649 – PUBLIC HEARING

012

Megan Palau

Committee Administrator. Summarizes HB 2649.

015

Rep. Alan Brown

House District 10. Submits and summarizes prepared testimony in support of HB 2649 (EXHIBIT A).

070

Chair Close

Asks for clarification of independent contractor requirements.

071

Rep. Brown

Clarifies independent contractor requirements.

080

Chair Close

Closes public hearing on HB 2130. Opens public hearing on HB 2130.

HB 2130 – PUBLIC HEARING

080

Megan Palau

Committee Administrator. Summarizes HB 2130 and -2 amendment (EXHIBIT B).

083

Rep. Vic Backlund

House District 25. Testifies in support of HB 2130.

129

Rep. Schaufler

Asks about savings resulting from HB 2130.

131

Rep. Backlund

Explains parity between current and retired government employees.

139

Gary Pelo

Legislative Assistant for Rep. Backlund. Offers situation that led to introduction of HB 2130.

147

Chair Close

Asks about work done in 2001 legislative session on issue.

149

Rep. Backlund

Explains work done in 2001.

161

Rep. Rosenbaum

Asks about effects of HB 2130 on current statute.

166

Rep. Backlund

Explains effects of HB 2130.

184

Leonard Hagen

Regence Blue Cross. Submits and summarizes prepared testimony in support of HB 2130 (EXHIBIT C).

192

Maxi McKibben

Department of Insurance, Department of Consumer and Business Services. States that she was on work group for HB 2130.

206

Chair Close

Asks if -2 amendment is work group recommendation.

215

McKibben

Explains work done by work group on HB 2130 and -2 amendment.

224

Chair Close

Asks for clarification of language of amendment.

228

McKibben

Offers clarification of amendment language.

252

Chair Close

Closes public hearing on HB 2130. Opens public hearing on HB 2480.

HB 2480 – PUBLIC HEARING

252

Megan Palau

Committee Administrator. Summarizes HB 2480.

258

Rep. Donna Nelson

House District 24. Submits and summarizes prepared testimony in support of HB 2480 (EXHIBIT D).

390

Chair Close

Asks for estimate of fiscal impact.

393

Rep. Nelson

Explains fiscal impact.

TAPE 39, A

017

Rep. Garrard

Asks about age limits impacted by HB 2480.

020

Rep. Nelson

Explains age limits.

027

Rep. Gallegos

Asks about potential disadvantages to law-abiding community.

035

Rep. Nelson

Explains benefits to society.

044

Rep. Kitts

Asks about inequality regarding providing tax credit for one segment of society.

052

Rep. Nelson

Explains impacts on society.

068

Rep. Kitts

Expresses reservations about HB 2480.

079

Rep. Schaufler

Asks for data on other states’ similar programs.

110

Rep. Rosenbaum

Asks about preventing employers from laying workers off to hire former inmates to take advantage of tax credits.

119

Rep. Nelson

Explains provisions of HB 2480.

131

Rep. Merkley

Expresses support for concept and reservations on HB 2480.

159

Rep. Nelson

Explains benefits of HB 2480.

190

Rep. Gallegos

Asks about tax liability in HB 2480.

206

Rep. Nelson

Explains tax liability.

212

Rep. Gallegos

Asks for further clarification of tax liability.

215

Rep. Nelson

Further clarifies tax liability.

219

Rep. Garrard

Offers example of formerly incarcerated citizen having advantage over law abiding citizen due to tax credit.

230

Rep. Nelson

Addresses example related to HB 2480.

255

Ginger Martin

Administrator for Community Corrections, Oregon Department of Corrections. Submits and summarizes prepared testimony regarding HB 2480 (EXHIBIT E).

300

Richard Sly

Director, Yamhill County Community Corrections. Testifies in support of HB 2480.

366

Rep. Gallegos

Asks if there has been increase in incarceration.

374

Martin

Explains trends in incarceration.

379

Rep. Gallegos

Asks for relationship between incarceration and unemployment.

390

Martin

Explains relationship.

395

Chair Close

Expresses support she has encountered for hiring ex-offenders.

407

Jan Dean

Assistant Director, Employment Services Division, Oregon Employment Department. States that she and Mr. Jassmann will provide information regarding HB 2480.

420

Ed Jassmann

Program Coordinator, Work Opportunity Tax Credit, Oregon Employment Department. Submits and summarizes prepared testimony (EXHIBIT F).

TAPE 38, B

001

Chair Close

Asks for clarification of tax credit legislation.

003

Jassmann

Answers that it was implemented in 1996 through Small Business Job Protection Act.

007

Rep. Kitts

Asks about data regarding low-income qualifications.

010

Jassmann

Explains how low-income qualification is determined.

014

Rep. Kitts

Asks if HB 2480 has low-income qualification.

016

Rep. Nelson

Indicates that it does not.

017

Chair Close

Asks about relationship of HB 2480 and federal regulations.

019

Jassmann

Explains differences between the two.

025

Chair Close

Asks for data regarding programs in other states.

027

Jassmann

Explains data.

032

Rep. Schaufler

Comments on drug offender treatment. Asks if law-abiding citizens would be at disadvantage.

042

Jassmann

Explains data regarding impact of tax credit on society.

056

Rep. Rosenbaum

Asks for clarification of data.

064

Jassmann

Clarifies data.

071

Rep. Rosenbaum

Asks for further clarification of data.

072

Jassmann

Further clarifies data.

083

Rep. Nelson

Provides requested data to committee.

108

Chair Close

Closes public hearing on HB 2480. Opens public hearing on HB 2649.

HB 2649 – PUBLIC HEARING

110

Megan Palau

Committee Administrator. Summarizes HB 2649.

116

Jim Welsh

Oregon State Grange. Submits and summarizes prepared testimony in support of HB 2649 (EXHIBIT G).

135

Cyndee Riggs

Laughing Rabbit Inc. (LRI). Testifies in support of HB 2649. Explains development and employment situation of LRI.

207

Chair Close

Asks if LRI owner Mr. Allen is considering moving company to China.

216

Riggs

Answers yes.

220

Alona Hartwig

LRI. Testifies in support of HB 2649.

326

Rep. Merkley

Asks about significance of work location issue with LRI and employees.

340

Riggs

Explains laws regarding manufacturing and insurance coverage.

357

Rep. Merkley

Asks about insurance obstacles.

359

Riggs

Explains insurance obstacles.

378

Debbie Borland

LRI. Explains her work situation with LRI.

414

Rep. Schaufler

Asks about independent contractor status. Expresses concern about providing exceptions for specific instances.

TAPE 39, B

018

Rep. Garrard

Asks about employees’ average monthly gross salary.

021

Hartwig

Explains her salary.

037

Borland

Explains her salary.

055

Jeanne Trudeau

Submits letters and prepared testimony (EXHIBIT H).

114

Don Schellenberg

Associate Director of Governmental Affairs, Oregon Farm Bureau. Submits and summarizes prepared testimony in support of HB 2649 (EXHIBIT I).

176

Rep. Merkley

Asks for clarification of issue addressed by HB 2649.

178

Schellenberg

Clarifies issue.

186

Rep. Merkley

Asks for clarification of employer/employee relations.

192

Schellenberg

Clarifies relationship between employers and employees.

233

Bob Shiprack

Oregon State Building and Construction Trades Council, Employment Advisory Council. Testifies in opposition to HB 2649.

330

Rep. Garrard

Asks about losing LRI jobs in Oregon.

334

Shiprack

Explains independent contractor provisions and their effect on business.

361

Rep. Kitts

Asks about LRI employees registering as independent contractors.

401

Shiprack

Explains independent contractor provisions.

TAPE 40, A

002

Lisa Trussell

Associated Oregon Industries. Testifies in opposition to HB 2649.

023

Chair Close

Asks how to prevent jobs from going to China.

028

Trussell

Explains importance of bringing jobs to and keeping jobs in Oregon.

051

Patrick Green

Oregon AFL-CIO. Concurs with testimony provided by Mr. Shiprack and Ms. Trussell.

065

Chair Close

Asks for comment on LRI situation.

070

Green

Addresses criteria for independent contractors.

075

Rep. Schaufler

Comments that it would be economical for LRI employees to become licensed independent contractors.

102

Renee Bryant

Unemployment Insurance Tax Manager, Oregon Employment Department. Submits and summarizes prepared testimony in opposition to HB 2649 (EXHIBIT J).

170

Chair Close

Asks about flexibility in allowing independent contractors.

175

Bryant

Explains relationship.

188

Rep. Gallegos

Asks about LRI situation.

201

Bryant

Explains independent contractor criteria.

214

Rep. Gallegos

Asks about ruling for independent contractors.

218

Bryant

Explains ruling for independent contractors.

223

Rep. Rosenbaum

Asks for clarification of language regarding dedicated place of employment.

230

Bryant

Offers clarification and expresses concerns about language in HB 2649.

241

Rep. Rosenbaum

Asks about status of employees regarding unemployment insurance.

248

Bryant

Explains unemployment criteria.

265

Jim Welsh

Oregon State Grange. Testifies in support of HB 2649.

349

Nargess Shadbeh

Attorney, Oregon Law Center. Testifies in opposition to HB 2649.

408

Rep. Schaufler

Asks about obtaining Rep. Brown’s information.

411

Welsh

Explains accessing information and clarifies LRI case.

TAPE 41, A

012

Rep. Merkley

Asks about obstacles to allowing workers to work in their homes.

022

Welsh

Explains relationship between employers and independent contractors.

043

Chair Close

Closes public hearing on HB 2649. Adjourns meeting at 10:56 a.m.

Written testimony submitted by Wayne Laut, Superintendent, Blachly School District, on HB 2649 (EXHIBIT K).

 

 

EXHIBIT SUMMARY

 

A – HB 2649, written information, Rep. Alan Brown, 1 p

B – HB 2130, -2 amendment, staff, 1 p

C – HB 2130, written testimony, Leonard Hagen, 1 p

D – HB 2480, written testimony, Rep. Donna Nelson, 4 pp

E – HB 2480, written testimony, Ginger Martin, 2 pp

F – HB 2480, written testimony, Ed Jassmann, 2 pp

G – HB 2649, written testimony, Jim Welsh, 2 pp

H – HB 2649, written testimony and information, Jeanne Trudeau, 6 pp

I – HB 2649, written testimony, Don Schellenberg, 3 pp

J – HB 2649, written testimony, Renee Bryant, 2 pp

K – HB 2649, written testimony, Wayne Laut, 100 pp.