HOUSE COMMITTEE ON

BUSINESS, LABOR AND CONSUMER AFFAIRS

 

 

May 16, 2003 Hearing Room E

8:30 A.M. Tapes  120 – 121

 

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:            SB 260A – Work Session

HB 3322 – Work Session

SB 604A – Public Hearing and Work Session

SB 237 – Public Hearing and Work Session

SB 207A – Public Hearing and Work Session

SB 40A – Work Session

HB 2356A – Work Session

SB 896 – 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 120, A

003

Chair Close

Calls meeting to order at 8:50 a.m. Opens work session on SB 260A.

SB 260A – WORK SESSION

010

Megan Palau

Committee Administrator. Summarizes SB 260A and -5 amendment (EXHIBIT A).

065

Rep. Kitts

MOTION:  Moves to ADOPT SB 260A-A5 amendments dated 5/15/03.

 

 

VOTE:  6-1

AYE:               6 - Gallegos, Garrard, Kitts, Merkley, Schaufler, Close

NAY:               1 - Rosenbaum

 

Chair Close

The motion CARRIES.

070

Rep. Kitts

MOTION:  Moves SB 260A to the floor with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Rules & Public Affairs.

 

 

VOTE:  4-3

AYE:               4 - Gallegos, Garrard, Kitts, Close

NAY:               3 - Merkley, Rosenbaum, Schaufler

 

Chair Close

The motion CARRIES.

080

Chair Close

Closes work session on SB 260A. Opens work session on HB 3322.

HB 3322 – WORK SESSION

081

Megan Palau

Committee Administrator. Summarizes HB 3322.

090

Rep. Kitts

MOTION:  Moves to SUSPEND the rules for the purpose of reconsidering the vote on HB 3322.

095

Rep. Merkley

Asks for clarification of action to be taken on bill.

097

Chair Close

Clarifies intent for bill.

 

 

VOTE:  7-0

 

Chair Close

Hearing no objection, declares the motion CARRIED.

100

Rep. Kitts

MOTION:  Moves to RECONSIDER the vote by which HB 3322 was sent to the floor with a DO PASS recommendation.

 

 

VOTE:  7-0

 

Chair Close

Hearing no objection, declares the motion CARRIED.

105

Rep. Kitts

MOTION:  Moves HB 3322 to the floor with a DO PASS recommendation and BE REFERRED to the committee on Ways and Means by prior reference.

107

Rep. Rosenbaum

Asks about fiscal impact of bill.

110

Palau

Clarifies fiscal impact.

117

Rep. Merkley

States desire to rescind referral to Ways and Means and move bill to the floor if there is no fiscal impact.

 

 

VOTE:  4-3

AYE:               4 - Gallegos, Garrard, Kitts, Close

NAY:               3 - Merkley, Rosenbaum, Schaufler

 

Chair Close

The motion CARRIES.

135

Rep. Rosenbaum

Expresses concern regarding the action taken on HB 3322.

138

Rep. Kitts

Expresses concern that fiscal impact information was not available when taking action.

141

Chair Close

Closes work session on HB 3322. Opens public hearing on SB 604A.

SB 604A – PUBLIC HEARING

149

Darrell Fuller

Oregon Auto Dealers Association. Submits and summarizes prepared testimony in support of SB 604A (EXHIBIT B).

168

Chair Close

Closes public hearing on SB 604A. Opens work session on SB 604A.

SB 604A – WORK SESSION

170

Rep. Kitts

MOTION:  Moves SB 604A to the floor with a DO PASS recommendation.

 

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Close

The motion CARRIES.

REP. GALLEGOS will lead discussion on the floor.

178

Chair Close

Closes work session on SB 604A. Opens public hearing on SB 237.

SB 237 – PUBLIC HEARING

185

Chair Close

Summarizes SB 237.

188

Rob Edwards

Tax Section, Oregon Employment Department. Submits and summarizes prepared testimony and information in support of SB 237 (EXHIBIT C).

Written testimony submitted by Herman Leder, Salem, Oregon, in support of SB 237 (EXHIBIT D).

193

Chair Close

Closes public hearing on SB 237. Opens work session on SB 237.

SB 237 – WORK SESSION

200

Rep. Kitts

MOTION:  Moves SB 237 to the floor with a DO PASS recommendation.

 

 

VOTE:  6-0

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  1 - Rosenbaum

 

Chair Close

The motion CARRIES.

REP. SCHAUFLER will lead discussion on the floor.

212

Chair Close

Closes work session on SB 237. Opens public hearing on SB 207A.

SB 207A – PUBLIC HEARING

217

Chair Close

Summarizes SB 207A.

220

Brian DeMarco

Manager, Policy Coordinator, Oregon Real Estate Agency. Submits and summarizes prepared testimony in support of SB 207A (EXHIBIT E).

327

Chair Close

Asks for clarification of provisions and statutes.

333

DeMarco

Offers clarification of provisions and statutes.

347

Rep. Rosenbaum

Asks about impact of increased bonds.

350

DeMarco

Explains costs of bonds.

375

Chair Close

Asks for clarification.

380

DeMarco

Clarifies language.

392

Chair Close

Closes public hearing on SB 207A. Opens work session on SB 207A.

SB 207A – WORK SESSION

395

Rep. Rosenbaum

MOTION:  Moves to ADOPT SB 207A-A5 amendments dated 5/15/03 (EXHIBIT F).

 

 

VOTE:  7-0

 

Chair Close

Hearing no objection, declares the motion CARRIED.

400

Rep. Rosenbaum

MOTION:  Moves SB 207A to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  6-0

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  1 – Kitts

 

Chair Close

The motion CARRIES.

REP. MERKLEY will lead discussion on the floor.

TAPE 121, A

007

Chair Close

Closes work session on SB 207A. Opens public hearing on SB 40A.

SB 40A – PUBLIC HEARING

014

Megan Palau

Committee Administrator. Summarizes SB 40A and –A2 amendment (EXHIBIT G).

033

Karey Schoenfeld

Tax Section, Oregon State Bar. Submits and summarizes prepared testimony in support of SB 40A (EXHIBIT H).

065

Jeff Abbott

Tax Section, Oregon State Bar; Certified Public Accountant (CPA). Submits and summarizes prepared testimony in support of SB 40A (EXHIBIT I).

107

Mark Sellers

Tax Section, Oregon State Bar. Submits and summarizes prepared testimony in support of SB 40A (EXHIBIT J).

150

John Draneas

Tax Section, Oregon State Bar, CPA. Submits and summarizes prepared testimony in support of SB 40A (EXHIBIT K).

231

Rep. Rosenbaum

Asks about reaching agreement on bill before moving forward.

248

Draneas

Explains support in Senate.

266

Rep. Schaufler

Explains interpretation of SB 40A.

287

Draneas

Explains provisions of SB 40A.

344

Rep. Schaufler

Expresses concern about provisions of SB 40A.

372

Draneas

Explains provisions.

405

Rep. Schaufler

Expresses additional concern over impact of SB 40A.

425

Draneas

Explains independent contractor provisions.

TAPE 120, B

008

Rep. Merkley

Asks for clarification of provisions regarding independent contractors and impacts of federal and state standards..

020

Draneas

Clarifies provisions.

060

Chair Close

Explains intention for bill.

070

Craig Smith

Construction Contractors Board (CCB). Submits proposed amendment to SB 40A (EXHIBIT L) and explains concerns with bill.

085

Chair Close

Asks if Mr. Smith supports concept of bill with proposed amendments.

087

Smith

Explains that CCB is neutral in regard to bill and explains concerns.

100

Tom Byerly

Assistant Director of Unemployment Insurance, Oregon Employment Department (OED). Testifies in opposition to SB 40A.

109

Chair Close

Asks about involvement in work group that created SB 40A.

110

Byerly

Answers that OED staff was present.

114

Rep. Rosenbaum

Asks about contact with Governor’s Office.

117

Byerly

Explains contact with Governor’s Office and cites letter received from Governor.

126

Chair Close

Asks about work done by Senate and Governor’s Office.

130

Byerly

Clarifies work done on bill by Senate and Governor.

134

Rep. Merkley

Asks for clarification of position of OED on impacts of SB 40A.

137

Byerly

Offers clarification of position and contested cases regarding independent contractors.

140

Rep. Merkley

Asks for additional clarification of issue of contested cases.

150

Rob Edwards

Tax Section, OED. Offers additional clarification of contested cases.

163

Tim Nesbitt

President, Oregon AFL-CIO. Testifies in opposition to SB 40A.

242

Chair Close

Asks about independent contractor/employee status.

250

Ed Glad

Pacific Northwest Regional Council of Carpenters. Explains independent contractor/employee status. Testifies in opposition to SB 40A.

326

Chair Close

Closes public hearing on SB 40A. Opens work session on HB 2356A.

HB 2356A – WORK SESSION

345

Rep. Kitts

MOTION:  Moves HB 2356A to the floor with a DO PASS recommendation and BE REFERRED to the committee on Rules & Public Affairs.

350

Rep. Rosenbaum

Expresses concern about need for bill.

358

Chair Close

Responds to concerns.

364

Rep. Merkley

Expresses concern about need for bill.

395

Chair Close

Explains reason for action.

400

Rep. Gallegos

Explains importance of issue.

TAPE 121, B

008

Rep. Garrard

Expresses views on bill.

 

 

VOTE:  4-3

AYE:               4 - Gallegos, Garrard, Kitts, Close

NAY:               3 - Merkley, Rosenbaum, Schaufler

 

Chair Close

The motion CARRIES.

015

Chair Close

Closes work session on HB 2356A. Opens public hearing on SB 896.

SB 896 – WORK SESSION

020

Megan Palau

Committee Administrator. Summarizes SB 896.

025

John Powell

Oregon Insurance Guaranty Association. Explains SB 896 and testifies that bill should be withdrawn.

070

John DiLorenzo

Attorney. Submits and summarizes prepared testimony and information in regard to SB 896 (EXHIBIT M).

155

Rep. Schaufler

Asks about -2 amendment.

158

Chair Close

Explains intention for bill and -2 amendment.

163

Rep. Merkley

Asks for clarification for impact of SB 896.

166

DiLorenzo

Clarifies impact of SB 896.

175

Chair Close

Closes work session on SB 896. Adjourns meeting at 10:27 a.m.

 

 

 

 

 

 

 

 

 

 

EXHIBIT SUMMARY

 

A – SB 260A, -5 amendment, staff, 28 pp

B – SB 604A, written testimony, Darrell Fuller, 1 p

C – SB 237, written testimony and information, Rob Edwards, 3 pp

D – SB 237, written testimony, Herman Leder, 2 pp

E – SB 207A, written testimony, Brian DeMarco, 4 pp

F – SB 207A, -A5 amendment, staff, 1 p

G – SB 40A, -A2 amendment, staff, 1 p

H – SB 40A, written testimony, Karey Schoenfeld, 2 pp

I – SB 40A, written testimony, Jeff Abbott, 33 pp

J – SB 40A, written testimony, Marc Sellers, 2 pp

K – SB 40A, written testimony, John Draneas, 2 pp

L – SB 40A, proposed amendment, Craig Smith, 1 p

M – SB 896, written testimony, John DiLorenzo, 19 pp