HOUSE COMMITTEE ON

BUSINESS, LABOR, AND CONSUMER AFFAIRS

 

 

March 11, 2005    NECA-IBEW Electrical Training Center, Portland

9:00 A.M. Tapes  52 - 53

Corrected 09/27/05

MEMBERS PRESENT:            Rep. Alan Brown, Chair

Rep. Sal Esquivel, Vice-Chair

Rep. Mike Schaufler, Vice-Chair

Rep. Paul Holvey

Rep. George Gilman

Rep. Derrick Kitts

Rep. Chip Shields

 

STAFF PRESENT:                  Janet Adkins, Committee Administrator

Katie Howard, Committee Assistant

 

MEASURES/ISSUES HEARD:        

Bureau of Labor and Industry – Informational Meeting

HB 3097 – Public Hearing

NECA-IBEW Electrical Training Program – Informational Meeting

NECA-IBEW Electrical Training Center – Facility Tour

 

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 52, A

003

Chair Brown

Calls the meeting to order at 9:15 a.m.  Thanks the facility for having the committee

032

Chair Brown

Opens the informational meeting on the Bureau of Labor and Industries.

BUREAU OF LABOR AND INDUSTRIES – INFORMATIONAL MEETING

036

Dan Gardner

Commissioner, Bureau of Labor and Industries (BOLI).  Submits informational packet (EXHIBIT A).  Talks about the organizational chart (EXHIBIT A, Page 1).  Gives a brief overview of the BOLI.  Talks about electrical training programs and other training facilities nearby.  Reads mission statement (EXHIBIT A, Page 4).  Discusses the technical assistance program for employers (EXHIBIT A, Page 7)

090

Gardner

Talks about a story he heard about Eastern Oregon that relates to the Technical Assistance Program.  Discusses other programs that are done through the commissioner’s office.  Mentions the budget and legislative agenda. 

110

Christie Hammond

Administrator, Wage and Hour Division, BOLI.  Mentions the Child Labor Law and how the department takes action against someone who is in violation of the Child Labor Law (EXHIBIT A, Page 7).  Talks about how they get reports of children working.  Notes the Farm and Forest Contractors and Camps Program (EXHIBIT A, Page 8).  Mentions Prevailing Wage Law and Wage Claims and Minimum Wage Enforcement (EXHIBIT A, Page 8)

160

Hammond

Continues discussing the Wage Claims and Minimum Wage Enforcement Program.  Talks about how the Unemployment Insurance Tax goes into the Wage Security Fund.  Notes the regulated private employment agencies (EXHIBIT A, Page 9).  States what the divisions goals are (EXHIBIT A, Page 9).  

201

Rep. Kitts

Asks how many complaints by workers are fraudulent.

204

Hammond

Offers to get information for the committee.  Believes that there are not very many fraudulent cases.  Explains that she does not usually see fraudulent claims in the wage area, but that it does occur in other areas.  Talks about disputes that may arise where BOLI cannot enforce the law due to lack of information

221

Rep. Kitts

Asks what happens when a worker is found to have made a fraudulent claim.

223

Hammond

States that she knows of no ramifications.

224

Rep. Schaufler

Asks if the goal of 3C is to resolve minimum wage claims quickly and asks why the target is 55% (EXHIBIT A, Page 20).

240

Hammond

States that the division would like to resolve prevailing wage rate claims within 90 days.  Discusses that the difficulty in resolving the complaints arises when trying to get workers’ records and procure the workers’ cooperation.  Says that they are trying to streamline investigations. 

253

Rep. Schaufler

Asks for a breakdown of prevailing wage rate complaints that separates union from non-union shops.

261

Hammond

Says that the Wage and Hour Division does not track what complaints are from union and non-union shops. 

270

Chair Brown

Asks if the Wage and Hour Division is involved with the enforcement of the Federal Prevailing Wage Law in Oregon.

273

Gardner

Says that they work with the federal government occasionally.  Talks about the federal rate versus the residential rate.  States that the federal survey is different from BOLI’s survey.   

296

Hammond

Mentions that state and federal law do not apply at the same time in regards to the Prevailing Wage Law.  Talks about the Davis-Bacon Law.

302

Chair Brown

Asks if the Federal Prevailing Wage Law trumps Oregon Prevailing Wage Law when federal money is involved.  Asks if there could be 36 different wage rates.

306

Gardner

States that federal law does trump state law.  Says that there could be 36 different wage rates but there usually is not.

310

Rep. Holvey

Asks what happens when there is a federal survey that comes out below Oregon’s minimum wage. 

315

Gardner

States that BOLI always makes sure that the employees are working at least at the state minimum wage law. 

327

Rep. Holvey

Asks if there are any conflicts between federal and state classifications of work.

331

Gardner

States that it does happen and talks about the bill, which will be coming before the committee, that gets rid of the separate flagger issue. 

365

Amy Claire

Administrator, Civil Rights Division.  Talks about what the Civil Rights Division does (EXHIBIT A, Page 10).  Mentions what kind of inquiries they get and says that they get 2100 to 2500 complaints, which become official each year.  Says that most cases are in the area of employment.  Notes the types of claims (EXHIBIT A, Page 10).  Says that their cause rate is 7 to 10 percent. 

414

Claire

Talks about the difficulties facing the claimant when enforcing anti-discrimination law.  Emphasizes that they are a neutral enforcement body.  Says that their goal is to investigate claims within 180 days and it is less for some other governmental bodies. 

TAPE 53, A

001

Claire

Talks about division goals (EXHIBIT A, Page 11).  Mentions that they have lost a third of their staff and have the same work load.  Talks about state and federal statutes (EXHIBIT A, Page 12).

019

Rep. Kitts

Asks if the department deals with sexual orientation issues and how big the problem is.

025

Claire

Talks about there about 40 to 80 contract cases a year for sexual orientation discrimination.

031

Rep.  Schaufler

Asks if you can be fired for being gay if you are in one of the uncovered communities.

034

Gardner

States that you can be fired for being gay.  Says that they try to find resolution to cases in the Civil Rights Division, because a resolution costs much less money than litigation in court.

048

Stephen Sims

Administrator, Apprenticeship and Training Division.  Talks about what the division does (EXHIBIT A, Page 13).  Says that there are 54 registered apprenticeships.  Mentions the statistics of who is training and who is offering training (EXHIBIT A, Page 13).  Talks about how the demographics of Oregon are not reflected in apprenticeships.  Talks about women in apprenticeships and why the numbers are so low.  Talks about benefit of services (EXHIBIT A, Page 13)

096

Sims

Believes that the state’s investment in apprentices is the best investment in employment that Oregon makes.  Talks about the infrastructure of apprenticeship training programs and how private industry picks up much of the tab for the training model (EXHIBIT A, Page 14).  States that the wages in the trade industry provide a living wage.

155

Sims

Talks about their goals for making apprenticeships more diverse in terms of women and minorities.  Notes that they set reasonable, reachable goals.  Talks about the division goals (EXHIBIT A, Page 17).  Offers to answer any questions.

185

Chair Brown

Asks if a journeyman’s license is recognized in another state and if people from other countries have to sit for tests to gain certification.

193

Sims

States that the journeyman’s license is recognized in other states.  Says that most people from other countries do have to sit for the licensing examination.  Explains that with the exception of some countries in Europe completion of a program in the United States is recognized in other countries.

200

Rep. Schaufler

Asks what the standards are relative to other states for trades’ licenses and if they are happy with the governor’s budget.

205

Sims

Talks about how federal regulations for apprenticeship programs and how states do a better job than the federal government’s program.  States that, in larger states, there is a competition to do a better job.  Asserts that Oregon has some of the best trained apprentices in the nation because of the industries whom invest in the programs. 

245

Gardner

States that BOLI, over the last decade, has been reduced in staff by 33 percent.  Says that they are a very efficient agency.  Says that they have cut their rent by $10,000 a month and he has stopped using the state car.  Says that the governor has recommended the full funding for the budget with the exception of the cuts BOLI made on its own.   

279

Chair Brown

Asks how difficult it is for a young person to get into an apprenticeship program.

281

Sims

Says that it is extremely difficult.  Talks about how the educational process in the school system does not teach them the value of the trades.  Says that the trades do not want people who just have a high school diploma, because they want someone who can do math. 

315

Chair Brown

Talks about how the vocational programs in his district have gone away and believes that it writes off a number of people who would go into the vocational trades. 

337

Gardner

Says he agrees with Chair Brown and talks about how manufacturing industries are leaving the state.  Wants to put together a program so that guidance councilors can educate their students about the trades.  Talks about how the education budget shortfall has caused many vocational programs to be eliminated.  Notes that the department is trying to target different students to bring them into the training facilities. 

391

Rep. Esquivel

Talks about the high school that needs to be built in Medford and the debate over what type of school that should be built.  Asks if there has been work with school districts to promote vocational programs. 

TAPE 52, B

001

Sims

States that they have worked on the issue of getting vocational programs in schools.  Says that there are three training centers in Medford area and that there may be room to move people in high school into the vocational trade.

018

Rep. Holvey

Asks about apprenticeship programs that are done through community colleges and the source of the funds for those programs.

030

Sims

Says that the relationship between apprenticeship programs and community colleges is changing.  Mentions that, in the past, the apprenticeship programs have been reimbursed by the community colleges.  Indicates that now the FTE cap at community colleges is hurting the apprenticeship industry, because community colleges do not have the money to fund the programs. 

065

Rep. Holvey

States that subsidized apprenticeship programs have an advantage over privately run apprenticeship programs.  Expresses desire to solve the issue and look at more educational options.

085

Sims

Agrees that the programs that are funding themselves privately are at a competitive disadvantage and wants to find a balance so that every single county will have apprenticeship programs.

090

Gardner

Says that with the NECA-IBEW Electrical Training program the student only pays for their books.  States that the brochure in the back of the packet gives a great overview of the agency (EXHIBIT A, Page 64– 65)

120

Art Ayre

State Employment Economist, Oregon Employment Department.  Submits informational packet on labor market information (EXHIBIT B).  Talks about the projected construction worker shortage in Oregon (EXHIBIT B, Page 6).  Mentions that the 17,000 jobs are expected to be added in the construction industry between 2004 and 2011 in Oregon.  Notes that, over the last year, there has been significant growth in the construction industry (EXHIBIT B, Page 6).        

165

Ayre

States that the workforce is a little bit younger than the average workforce, but over the next ten years two-thirds of the people that are older than 45 will leave the construction industry (EXHIBIT B, Page 1).  Mentions the occupational projections (EXHIBIT B, Page 3 – 5).  Explains the construction occupation projections (EXHIBIT B, Page 5).  

225

Chair Brown

Closes the informational meeting and opens the public hearing on HB 3097.

HB 3097 – PUBLIC HEARING

233

Janet Adkins

Committee Administrator.  Explains HB 3097. 

257

Mark Long

Building Codes Division.  Submits flyer explaining the electronic permitting pilot program (EXHIBIT C).  Speaks in support of HB 3097.  States that HB 3097 helps streamline the building codes process.  Mentions the minor label system.

310

Long

Continues to outline the minor labeling system and how the pilot project helps simplify the minor labeling system.  Talks about the address locator that tells contractors what jurisdiction their project is in.  Talks about how the online system will help the permitting process. 

350

Long

Expresses desire to work in Rep. Esquivel and Rep. Gilman’s districts.  Talks about how the ultimate goal is to have a statewide electronic system that would allow for electronic plan submittal and subsequent permitting for the plans.

371

Chair Brown

Asks if cities and counties like the program.

375

Long

Says that participation in the program is optional.  Anticipates that many other jurisdictions will want to participate in the program.  Believes that it makes contractors’ jobs easier.

393

Rep. Esquivel

Asks if the monies collected for each of the permits will go to the jurisdiction that the permits are issued for.

403

Long

Says that the program lists the permits that are available in the jurisdiction.  Explains how the money is collected and deposited into the jurisdictions bank account.

422

Rep. Schaufler

Speaks in support of HB 3097.  Says that the bill is good government. 

TAPE 53, B

003

Rep. Holvey

Ask how the program goes forward in terms of plan submission. 

011

Long

Talks about the master plan design capacity.  States that they are at the capacity of what can be done with the current funding levels.  Asserts that he will continue to seek support for the pilot program.

038

Chair Brown

Speaks in support of HB 3097.  Believes that the bill is good government policy.

044

Jerod Broadfoot

Oregon State Building and Construction Trade Council, National Electrical Contractors Association, Plumbing and Mechanical Contractors Association, Sheet Metal and Air Conditioning Contractors National Association.  Speaks in support of HB 3097.  Thanks them for coming to the NECA-IBEW Training Center.

066

Stan Heil

Heil Electrical, Portland.  Speaks in support of HB 3097.  States that the project helps solve licensing problems of the past.  

080

Dan Gardner

Commissioner, Bureau of Labor and Industry (BOLI).  Speaks in support of HB 3097.  Talks about the taskforce he created during the 1997 Legislative Session to look at minor label permit coordination in the tri-county area.  Explains situations where county jurisdictions complicated the process. 

104

Chair Brown

Closes the public hearing on HB 3097.  Opens the informational meeting for the NECA-IBEW Electrical Training Program

NECA-IBEW ELECTRICAL TRAINING PROGRAM – INFORMATIONAL MEETING

121

John Steffens

Training Director, Willamette Carpenter’s Training Center.  Submits written testimony explaining the apprenticeship programs (EXHIBIT D).  Explains difficulty of retaining apprentices.  States that no public money is spent on apprenticeship programs and 55 cents an hour for every hour a member works is put into apprenticeship programs.  Wants the state to mandate apprenticeship hours. 

188

Chair Brown

Asks if there is an allowance for wages paid to public work employees to flow to apprenticeship programs.

192

Steffens

States that public work employees’ wages do not help pay for apprenticeship programs.  Says that the City of Portland has mandated that some of the wages of public work employees be set aside for apprenticeship programs and believes that is what the state should do.

201

Chair Brown

Talks about the training center in Las Vegas.

210

Ken Fry

Director, NECA-IBEW Training Center.  Offers to give the committee a tour of the facility.  States that it is a $6 million facility.  Says that most apprenticeship programs are operating outside of the jurisdiction of community colleges.  Says that the industry will take care of the training needs.

248

John Coolemare

Area 1 JATC.  Talks about the relationships that they had with the Clackamas Community College and talks about how they bought the carpenter’s building.  States that as a board they have been fiscally responsible and this has helped them to buy their own facilities.  States that they put out a good product. 

289

Chair Brown

Talks about his time on the legislature and the budget difficulties that they have faced.  States that it is rewarding to see that the economy and the construction industry is turning around.  Mentions his time on the House Transportation Committee in 2003 with Rep. Gilman.  Closes the informational meeting on the NECA-IBEW Electrical Training Program.  Adjourns the meeting at 11:04 a.m.  Committee joins tour of training facility.

NECA-IBEW ELECTRICAL TRAINING CENTER – FACILITY TOUR

No recording

Committee members were shown classrooms and training equipment and heard from the training facility director about their history and current programs.

 

 

EXHIBIT SUMMARY

 

  1. Bureau of Labor and Industries, informational packet, Dan Gardner, 65pp
  2. Bureau of Labor and Industries, informational packet, Art Aris, 6 pp
  3. HB 3097, flyer, Mark Long, 2 pp
  4. NECA-IBEW Electrical Training Program, written testimony, John Steffens, 1 p