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