HOUSE COMMITTEE ON TRADE AND ECONOMIC DEVELOPMENT

 

 

April 14, 2003 Hearing Room D

1:00 PM  Tapes 43 - 44

 

 

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

 

MEASURE/ISSUES HEARD:            HB 2296 Public Hearing

                                                HB 2302 Public Hearing and 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 43, A

004

Chair Smith

Calls the meeting to order at 1:10 pm and opens the public hearing on     HB 2296.

HB 2296 PUBLIC HEARING

009

Rep. Allen Brown

House District 10. Explains that bills similar to HB 2296 have been presented in past sessions. Provides a brief explanation of what Enterprise Zones are.

027

Chris Chandler DiTorrice

Head of the Central Coast Economic Development Alliance. Submits (EXHIBIT A) in favor of HB 2296. States that there is only one Enterprise Zone in the Depoe Bay area. Supports HB 2296 and explains that the cost of doing business in rural areas is usually high and provides examples.

090

Rep. March

Clarifies that they would compete for an additional Enterprise Zone.

094

Rep. Hass

Expresses concern about diluting the existing Enterprise Zones.

101

Rep. Brown

Responds that each area can craft the Enterprise Zone to the type of industry that is acceptable for that area.

111

Rep. Hass

Asks if there are Enterprise Zones on the coast.

113

Rep. Brown

Responds there are Enterprise Zones in the southern part of Lincoln county but not in the Lincoln City area.

131

Rep. March

Asks can an existing Enterprise Zone boundary’s be changed.

134

Tetores

Answers yes to a point. The existing zones are 30 miles apart. Adds that the current zone allows a property tax exemption for new hotels and motels noting that Lincoln City already has over 2,000 rooms.

144

Chair Smith

Ask Rep. Brown if he has any comments about the -1 amendments.

146

Rep. Brown

Responds that he does not oppose or advocate the amendments.

143

Hasina Squires

Special Districts. Explains why Special Districts have presented the -1 amendments. Explains it would allow taxing districts listed in ORS 198 to opt out of the five new zones, (EXHIBIT B).

192

John Pascone

President of Albany/Millersburg Economic Development Corporation. Supports HB 2296 because it incentives businesses to invest and create jobs.

206

Pascone

Proposes the -2 amendments, (EXHIBIT C). Explains that Pacific Cast Technology invested $11 million in an Enterprise Zone, now the company’s numbers have dropped due to national events and the company risks meeting their first year requirements.

258

Rep. Hunt

Asks what successes have there been to date and what the potential of adding five more is.

265

Mike Burton

Assistant Director, Economic and Community Development Department. Responds that (EXHIBIT D) details the transactions over the last tax-year. Reviews the pros and cons of Enterprise Zone incentives.

325

Rep. Hass

Refers to charts 5 and 6. Reiterates a concern about removing strategic advantages from existing sites.

341

Burton

Responds there is an eligibility criterion of distress.

354

Rep. March

Notes there are multiple zones in Josephine County.

363

Burton

Responds that Josephine County, except for Grants Pass, is an Enterprise Community, (a federal status).

375

Burton

Discusses other counties with multiple Enterprise Zones.

385

Rep. March

Asks if there are counties without Enterprise Zones

390

Burton

Responds affirmatively.

395

Rep. March

Asks how are the applicants selected.

396

Burton

Answers the applicant need to be experiencing some level of distress to meet the criteria. Discusses HB 2299 that allows for different determination across a zone.

436

Chair Smith

Closes the public hearing on HB 2296 and opens the public hearing on HB 2302.

HB 2302 PUBLIC HEARING

TAPE 44, A

001

Kimberly Medford

Administrator. Explains that the amendments (EXHIBIT E) affect how HB 2302 is administered and funded.

010

Jess Carreon

President Portland Community College.  Reads prepared testimony in support of community colleges being the provider of workforce training, (EXHIBIT F).

072

Rep. Berger

Clarifies the testimony is in support of the -2 amendments.

078

Carreon

Responds affirmatively.

091

Matt Hennessee

Co-Chair, Work Force Training and Development Task Force. Seeks support for the Strategic Workforce Training Fund. The task force is recommending a timely system that anticipates the economic needs for communities and meets the changing needs of business and labor including skill gaps

186

Tim Nesbitt

President, AFL-CIO. Co-chair Work Force Training and Development Task Force. States that the primary conclusion was that programs have not been focused on economic development and lack coordination.

211

Nesbitt

Refers to the report, (EXHIBIT D) page 9 regarding regional teams.

220

Nesbitt

Notes for the record that the recommendation for enhancing coordination at the state level is not intended to imply himself but rather is intended to have a representative of statewide labor.

232

Nesbitt

Discusses the Strategic Training Fund, (EXHIBIT G).

254

Rep. Gallegos

Refers to page 2 Section 3, asks what moneys from the community colleges would go into this separate fund.

243

Hennessee

Defers the answer to the next witness.

267

Rep. Hunt

Clarifies that the base bill was a place holder and the -2 amendment is the bill.

321

Rep. March

Clarifies that this uses the existing Education and Work Force Policy Committee.

333

Nesbitt

Notes that the intention is to get more flexibility in the work group; refers to page 9 of (EXHIBIT D).

344

Eric Johnson

State Workforce Investment Board speaking on behalf of himself. Supports HB 2302 and expresses his personal commitment that the program is implemented prudently.

360

Julie Branois

Associated Oregon Industries, (AOI). Comments in support of HB 2302 noting the need to be able to quickly tap into funds.

438

Rep. March

Confirms that AOI, the community colleges and AFL-CIO are in agreement with this bill.

TAPE  43, B

005

Margaret Hallock

Office of the Governor, Policy Advisor on Workforce, Revenue and Labor issues. Notes that the state has not developed a leadership role. Employers need to have access to flexible funds for upgrading the current workforce.

037

Hallock

Explains Workforce Integrated Network Teams, a first-response team for businesses.

067

Cam Proisbrauling

Commissioner of Department of Community Colleges and Workforce Development.   Explains that the fund is necessary to provide for more training needs. Discusses the public/private partnership.

113

Rep. Berger

Asks how the funding fits together.

121

Hallock

Responds by recommending that Oregon direct more federal funds to these programs, $5 million rather than $2 million. Notes the key is to create the vehicle to redirect and add funds.

154

Rep. Gallegos

Asks will this create a greater need of general fund dollars for community colleges.

161

Proisbrauling

Answers no because the resource is federal workforce dollars and community colleges have had access to the $2 million set aside. It is not anticipated that the community college support fund will be added to this fund.

178

Rep. Gallegos

Refers to page 1, Section 2, item #4 “to reduce the needs of public assistance”. Asks for clarification.

182

Hallock

Responds that these are the intent statements. Education and training is one way to enhance the ability of attaining a family wage job.

191

Rep. Gallegos

Asks what are the incentives for existing businesses.

194

Hallock

Answers the hope is that the fund will be available for businesses that are expanding.

218

Chair Smith

Closes the public hearing on HB 2302 and opens the work session on HB 2302.

HB 2302 WORK SESSION

221

Rep. March

MOTION:  Moves to ADOPT HB 2302-2 amendments dated 04/14/03.

223

 

VOTE:  7-0

 

Chair Smith

Hearing no objection, declares the motion CARRIED.

230

Rep. Berger

MOTION:  Moves HB 2302 to the floor with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means by prior reference.

 

 

VOTE:  7-0

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

 

Chair Smith

The motion CARRIES.

240

Chair Smith

Closes the work session on HB 2302 and adjourns the meeting at       2:30 p.m.

Written testimony submitted without public testimony, (EXHIBIT H)

 

 

EXHIBIT SUMMARY

 

A.  HB 2296 written testimony, Chris Chandler DiTorrice, 2 pp

B.  HB 2296-1 amendments dated 4/14/03, Hasina Squires, 4 pp

C.  HB 2296-2 amendments dated 4/14/03, John Pascone, 2 pp

D.  HB 2296, Report, Mike Burton, 20 pp

E.  HB 2302-2 amendments dated 4/14/03, staff, 7 pp

F.  HB 2302, prepared testimony, Jesus Carreon, 2 pp

G. HB 2302, The Oregon Strategic Workforce Training Fund, Tim Nesbitt, 2 pp

H. HB 2302, written testimony, Dan Gardner, 2 pp