HOUSE COMMITTEE ON TRADE AND ECONOMIC DEVELOPMENT

 

 

March 12, 2003   Hearing Room D

1:00 PM  Tapes 25 - 26

 

 

MEMBERS PRESENT:            Rep. Patti Smith, Chair

Rep. Vicki Berger, Vice-Chair

Rep. Mary Gallegos, Vice-Chair

Rep. Mark Hass

Rep. Dave Hunt

Rep. Steve March

Rep. Dennis Richardson

 

STAFF PRESENT:                  Kimberly A.  Medford, Committee Administrator

Linda K. Gatto, Committee Assistant

 

MEASURES HEARD:                     HB 2691 – Work Session

                                                HB 2298 – Pubic Hearing and Work Session

                                                HB 2671 – Public Hearing and Work Session

HB 2300 – 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 25, A

003

Chair Smith

Calls the meeting to order at 1:10 p.m. and opens the public hearing on     HB 2691. Refers to the -4 amendments, (EXHIBIT A), and comments on the positive impact of the bill. Opens the work session on HB 2691.

HB 2691 WORK SESSION

017

Chair Smith

MOTION:  Moves to ADOPT HB 2691-4 amendments dated 03/07/03.

018

 

VOTE:  7-0

 

Chair Smith

Hearing no objection, declares the motion CARRIED.

020

Chair Smith

MOTION:  Moves HB 2691 to the floor with a DO PASS recommendation.

024

Rep. March

States for the record that this is an excellent concept.

033

Rep. Richardson

States this will be a benefit to the southern Oregon region.

044

 

VOTE:  7-0

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

 

Chair Smith

The motion CARRIES.

REP. PATTI SMITH will lead discussion on the floor.

056

Chair Smith

Closes the work session on HB 2691 and opens the work session      HB 2298.

HB 2298 – WORK SESSION

058

Kim Medford

Committee Administrator. Reviews HB 2298 and the -6 amendments, (EXHIBIT B).

085

Rep. Berger

MOTION:  Moves to ADOPT HB 2298-6 amendments dated 03/11/03.

 

Chair Smith

Hearing no objection, declares the motion CARRIED.

 

 

MOTION:  Moves HB 2298 DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Revenue by prior reference.

100

Rep. March

Recommends that the committee request a budget note for the department to report back to the legislature.

119

 

VOTE:  6-0

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

EXCUSED:  1 – Hass

120

Chair Smith

The motion CARRIES.

120

Chair Smith

Closes the work session on HB 2298 and opens the public hearing on HB 2671.

HB 2671 – PUBLIC HEARING

124

Kim Medford

Committee Administrator.  Reviews HB 2671 and the -1 amendments, (EXHIBIT C).

135

Rep. Bill Garrard

HD 56. Explains that HB 2671 would create a more positive business climate in Oregon. States that the Peoples Energy Resources Corp. project will invest $700 million. Provides details on how this will impact Klamath county.

195

Robert A. Trotta

Director, Power Generation Peoples Energy Resources Corp. States the name of the project is COB, California Oregon Border. Provides a history of Peoples Energy and its status in the market. Explains the specifics of the effects HB 2671 will have on long term Enterprise Zones.

254

Trotta

Continues to review the economic benefits to Klamath county. Reviews incentives that are offered by other states.

279

Rep. Richardson

Asks where the employees will be recruited from.

281

Trotta

Responds that a commitment has been made to the Oregon Trade Union.

290

Rep. Richardson

Asks will the 10 long term jobs be employed from Oregon or brought in from the outside.

294

Trotta

Responds that they always try to retain people from the local community but the job requires specific skills. Adds it is a job that would require being a resident of the area.

320

Rep. Berger

Notes that the statute speaks of 20 employees. Asks how many employees will staff this facility.

341

Trotta

Answers that the facility would employ from 20 – 25. States it is his understanding that the number 10 is a firm number; expresses that the number of 20 after three years would be questionable.

356

Rep. March

Asks what type of generating facility this is.

357

Trotta

Responds it will be natural gas.

365

Trey Senn

Director, Klamath County Economic Development Association. Comments on the advantages of power companies being located in Klamath County and the reasons why Peoples Energy was selected. 

399

Rep. March

Ask if 10 will be a sufficient number or should it be higher. Asks how is the number determined.

412

Trotta

Responds that 10 is number that would not put the project in jeopardy.

420

Rep. Garrard

Clarifies that presently other generation plants in the area employ approximately 22 people.

450

Rep. Gallegos

Asks if a study has been performed on the result of what these salaries will generate in the community.

465

Senn

Responds the economic impact analysis was done on a $239 million investment and looked at the ripple effect for five years. The result was $511 million for the first five years including construction, just within the county.

484

Trotta

Notes that this is a conservative number.

TAPE 26, A

037

Andrew Stuedli

Klamath/Lake County Economic Development District. States support noting that this is a positive impact on the area and will provide economic diversification.

047

Chair Smith

Announces that Senator Harper has expressed his support for HB 2671.

052

Bob Shiprack

Building and Construction Trades Council. States support for HB 2671 and notes that the building trade sector is currently dealing with a 25% unemployment rate in Oregon.

063

Rep. Hunt

Asks for suggestions on how to encourage projects like this.

072

Shiprack

Responds that the state needs to continue to work on streamlining the permit process.

148

Rep. Gallegos

Comments that it appears there are no big construction jobs scheduled.

158

Shiprack

Responds affirmatively. Explains that the unemployment rate for the trades is approximately 25% and growing.

175

Chair Smith

Closes the public hearing on HB 2671 and opens the work session on HB 2671.

HB 2671 WORK SESSION

175

Rep. March

MOTION:  Moves to ADOPT HB  2671-1 amendments dated 03/10/03.

177

 

VOTE:  7-0

 

Chair Smith

Hearing no objection, declares the motion CARRIED.

190

Rep. March

MOTION:  Moves HB 2671 with a DO PASS recommendation and BE REFERRED to the committee on Revenue by prior reference.

190

 

VOTE:  6-0

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

EXCUSED:  1 – Hass

 

Chair Smith

The motion CARRIES.

185

Chair Smith

Closes the work session on HB 2671 and opens the public hearing on HB 2300.

HB 2300 PUBLIC HEARING

203

Kim Medford

Administrator. Reviews the current status of HB 2300.

211

Mike Burton

Assistant Director, Oregon Economic and Community Development Department, (OECDD).  Begins with Section 2, page 3.

240

Vice-chair Gallegos

Clarifies that the section being reviewed is about the revolving loan fund.

244

Burton

Responds that the revolving loan fund is one the programs and the bond is a financing mechanism. Continues to testify and explains the proposal affecting Section 8, page 6.

312

Ken Armstrong

Oregon Ports Association and Oregon Ports Group. States that Oregon’s 23 ports support this bill.

336

Burton

Continues with testimony, begins review of Sections 11 and 12, page 8.

376

Burton

Discusses interest rate restrictions.

407

Burton

Discusses the Port Planning and Marketing Fund.

450

Rep. Richardson

Asks why is the recommendation to repeal the sunset completely.

TAPE 25, B

028

Burton

Responds that an extension of the sunset would be welcomed also.

032

Armstrong

Adds that the sunset is on the transfer of the interest from the revolving fund into the Port Planning and Marketing program.

048

Burton

Concludes testimony on the specific issues relating to ports. Begins testimony on community colleges.

077

Burton

Explains that there are 21 small business development centers in the state and 50-percent are funded by community colleges.

120

Burton

Expresses that this program provides businesses with the  nuts and bolts support for people who have a specialized knowledge of the business but not business operations.

145

Rep. March

Refers to the broad language of community colleges providing services inadequately and asks who would determine that. Suggests it would be better written if the language said; if the community college declines.

200

Burton

Recommends re-visiting the language in line 10.

204

Rep. Berger

Expresses interest in the community colleges position.

206

Rep. Richardson

Asks for the definition of the term service providers.

211

Burton

Responds by asking if there would be a set of potential providers that would appeal to the committee.

219

Rep. Richardson

States that this bill deals with many areas, the statement is broad and does not provide accountability on how the funds are allocated.

303

Burton

Begins overview of infrastructure programs and segregating out the grant capacity.

363

Rep. Gallegos

Express concerns about community development.

370

Burton

Responds that a community without adequate sewer and water cannot host economic development; uses the semiconductor industry as an example.

TAPE 26, B

035

Burton

Discusses Section 16, storm drainage systems.

042

Rep. Gallegos

Asks what funds the storm drain systems.

045

Burton

Answers that this section would clarify that storm drainage systems are an infrastructure project and could be funded by the Special Public Works Fund or the Water Fund.

051

Burton

Continues to review Sections 17 -20, and 21.

080

Burton

Reviews Section 23.

105

Graham Slater

Administrator for Workforce and Economic Research, Oregon Employment Department. Discusses the confidentiality of information that the Employment Department receives from businesses. States support for the OECDD’s information request, submits (EXHIBIT D). Notes the -1 amendments, (EXHIBIT E).

202

Rep. Gallegos

Asks for what reason has this information been kept confidential.

207

Slater

Answers that the bottom line is the privacy of the employer.

222

David Sparks

OR OSHA. Submits (EXHIBIT F) and summarizes the request of the   -3 amendment, (EXHIBIT G).

272

Medford

Announces that Mark Landeau has submitted testimony for the record, (EXHIBIT H).

290

Chair Smith

Closes the public hearing on HB 2300 and adjourns meeting at          2:55 p.m.

 

 

EXHIBIT SUMMARY

 

A.  HB 2691-4 amendments dated 3/7/03, Rep. Patti Smith, 2 pp

B.  HB 2298-6 amendments dated 3/11/03, staff, 7 pp

C.  HB 2671-1 amendments dated 3/10/03, staff, 1 p

D.  HB 2300, prepared testimony, Graham Slater 4 p

E.  HB 2300-1 amendments dated 3/4/03, staff, 1 p

F.  HB 2300, written testimony, David Sparks, 2 pp

G. HB 2300-3 amendments dated 3/10/03, staff, 1 p

H. HB 2300, written testimony, Mark Landeau, 2 pp