HOUSE COMMITTEE ON

BUSINESS, LABOR, AND CONSUMER AFFAIRS

 

 

April 11, 2005 Hearing Room HR B

8:30 A.M. Tapes  85 - 86

 

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:        

HB 2579 – Public Hearing and Work Session

HB 2008 – Public Hearing and Work Session

HB 3074 – Public Hearing

HB 3262 – Public Hearing and Work Session

HB 2294 – Work Session

HB 3435 – Work Session

HB 3436 – Work Session

HB 3437 – Work Session

HB 3022 – 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 85, A

002

Chair Brown

Calls the meeting to order at 8:39 a.m.  Opens the public hearing on HB 2579.

HB 2579 – PUBLIC HEARING

004

Janet Adkins

Committee Administrator.  Explains HB 2579.  Submits the -1 amendments (EXHIBIT A).

022

Don Miner

Executive Director, Oregon Manufactured Housing Association. Submits written testimony in support of HB 2579 with the -1 amendments (EXHIBIT B).  Talks about how HB 2579 corrects an oversight from SB 468 (2003). 

040

Mark Long

Administrator, Building Codes Division.  Speaks in support of HB 2579.  Talks about HB 2389 will correct oversights from SB 468 (2003).

053

Chair Brown

Closes the public hearing on HB 2579 and opens the work session on HB 2579.

HB 2579 – WORK SESSION

055

Rep. Kitts

MOTION:  Moves to ADOPT HB 2579-1 amendments dated 03/08/05.

056

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

058

Rep. Kitts

MOTION:  Moves HB 2579 to the floor with a DO PASS AS AMENDED recommendation.

061

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

065

Rep. Kitts

MOTION:  Moves HB 2579 be placed on the CONSENT CALENDAR.

066

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

067

Chair Brown

Closes the work session on HB 2579.  Opens the public hearing on HB 2008.

HB 2008 – PUBLIC HEARING

069

Janet Adkins

Committee Administrator.  Explains HB 2008 and references the -1 amendments (EXHIBIT C).

088

Don Miner

Executive Director, Oregon Manufactured Housing Association Submits written testimony in support of HB 2008 with the -1 amendments (EXHIBIT D).  References graph (EXHIBIT D, Page 8).  Notes that HB 2008 is a jobs bill.  Explains that HB 2008 allows manufacturers to manufacture modular homes to the state’s standards where the homes will be placed.  Talks about family wage jobs (EXHIBIT D, Page 9)

140

Miner

Talks about how modular homes and manufactured homes cannot be built on the same assembly line if the homes are built to Oregon’s standards.  Mentions how Idaho passed a similar law after they experienced analogous problems.  References the photo of modular homes and notes that these homes are being built in Idaho and are then shipped to California (EXHIBIT D, Page 7).  Indicates that the Oregon manufactured homes’ industry wants to be able to compete with Idaho when selling to other states such as California.    

198

Miner

References the written testimony of Forrest Barnes and talks about how current regulations have caused job losses in Oregon (EXHIBIT D, Page 10).   

210

Steve Leedom

Plant General Manager, Champion Homes of Oregon – Silverton. Speaks in support of HB 2579 and submits informational packet (EXHIBIT E).  Talks about how they produce manufactured homes.  Notes that the manufactured homes industry has been losing jobs.   Mentions that they pay $11 to $16 an hour and have health insurance benefits.  Talks about the opportunity to build modular homes for the Fort Lewis Military Base in Washington.  References the packet and the photographs of modular houses (EXHIBIT E)

260

Leedom

Indicates that $100 million will be generated by the construction of modular housing at Fort Lewis and most of the dollars will come back to Oregon.  Explains the benefits of modular housing.   

300

Rep. Schaufler

Speaks in support of HB 2579.  Asks if the houses will be built to the standards of the states where the communities will end up, if the homes built for other states could end up in Oregon, and if the families of the workers receive health benefits.

315

Leedom

Says that the families do receive health benefits.

315

Rep. Holvey

Says that he supports of the spirit of HB 2008.  Speaks in opposition to HB 2008 because it uses unlicensed plumbers and electricians to meet out of state requirements.

333

Leedom

Says that, in a site construction environment the manufacturer, the knowledge required to install plumbing and electrical systems is much greater than for modular homes.  States that, since the electrical system is so regulated in the manufacturing process, they do not need to use licensed electricians.

365

Miner

Notes that the state of California does not require licensed plumbers and electricians.  Stresses that each home comes with an identification number and does not believe that there is much risk of the homes that built for other states being bought by consumers in Oregon for use in Oregon.

381

Chair Brown

Asks if the manufactured and modular homes go through an inspection process by the Building Codes Division or another regulatory agency.

385

Leedom

States that five full-time inspectors work for Champion and two to three state inspectors examine the process.  Adds that the federal government also makes sure that the homes are in compliance with federal regulations.

393

Miner

Says that the modular process will be regulated by the state that they are shipped to and sold if HB 2008 passes.

398

Chair Brown

Asks if the state will have onsite inspectors.

400

Miner

Notes that it depends on how the state intends to inspect the homes.

404

Chair Brown

Asks if there is any history of electrical and plumbing problems that have occurred in modular and manufactured homes.

411

Miner

Says that there were problems with the older homes that were built before June of 1976.  Believes that it is not a severe problem within the manufactured housing industry.

421

Rep. Schaufler

Asks if the manufactured housing industry will be able to come before the legislature and demonstrate that HB 2008 generated more jobs.

425

Miner

States that, if the law is used, HB 2008 should generate more jobs.

TAPE 86, A

006

Mark Long

Administrator, Building Codes Division (BCD).  Says that, for Housing and Urban Development (HUD) projects, the codes are set by federal standards.  States that if a modular home is built under a HUD program the homes are inspected under the federal guidelines.  Explains HB 2008.  References the -1 amendments and talks about the report that is required by the BCD (EXHIBIT C)

031

Rep. Holvey

Asks if there is any reason why out of state requirements could not be met by using licensed electricians and plumbers.

035

Long

Says that the regulations could be met.  Talks about how the BCD has no responsibility to the state of California’s standards. 

045

Rep. Holvey

States that Oregon usually requires licensed workers and wants to know why those standards from other states cannot be met by licensed workers.

050

Long

Says that when building the HUD homes licensed electricians are not used. 

059

Rep. Holvey

Asks if the products in Oregon, that are built and stay in Oregon, are required to have licensed electricians and plumbers working on them.

062

Long

States that if it is built and stays in Oregon then the home is built to the standards set by the state unless it is a HUD project.

067

Chair Brown

Closes the public hearing on HB 2008 and opens the work session on HB 2008.

HB 2008 – WORK SESSION

072

Rep. Kitts

MOTION:  Moves to ADOPT HB 2008-1 amendments dated 04/06/05.

073

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

074

Rep. Kitts

MOTION:  Moves HB 2008 to the floor with a DO PASS AS AMENDED recommendation.

077

Rep. Schaufler

Says that he is concerned about the workers’ treatment and states that, if anyone wants to organize the manufactured housing workers, he will support them.  Wants the jobs that HB 2008 will provide in Oregon.

086

Rep. Kitts

Thanks the industry for providing HB 2008, because it will create jobs in Oregon.

099

Chair Brown

Speaks in support of HB 2008.  Says that the home construction industry will not be affected by HB 2008 and HB 2008 adds jobs to Oregon.

100

 

VOTE:  6-1-0

AYE:               6 - Esquivel, Gilman, Kitts, Schaufler, Shields, Brown

NAY:               1 - Holvey

 

Chair Brown

The motion CARRIES.

REP. KITTS will lead discussion on the floor.

106

Chair Brown

Closes the work session on HB 2008.  Opens the public hearing on HB 3074.

HB 3074 – PUBLIC HEARING

109

Janet Adkins

Committee Administrator.  Explains HB 3074.

132

Tim Kral

Executive Director, Oregon Rehabilitation Association.  Submits written testimony in support of HB 3074 (EXHIBIT F).  Talks about where their offices operate.  States that in September of 2003, the attorney general made it clear that temporary employees could only work for the state as a temporary employee for six months.  Notes that only people with disabilities will be exempt from ORS 240.309. 

174

Debi Melton

Galt Foundation.  Submits and reads from written testimony in support of HB 3074 (EXHIBIT G).  Talks about Galt’s state contract and how people with disabilities are helped.

235

Evan Burroughs

Employee, Oregon Department of Transportation representing self.  Speaks in support of HB 3074.  Describes how being a temporary employee for the Oregon Department of Transportation (ODOT) helped him meet the necessary requirements to become an ODOT Engineering Specialist.  States that being able to work continuously kept his skills up and helped him get a permanent job at ODOT. 

285

Julie Reifel

Speaks in support of HB 3074.  Talks about her experience as a data entry clerk for the Department of Motor Vehicles and her work with the state government.  Speaks about her experience being unemployed.  Notes that the interview process is difficult for her and that Galt has helped her obtain employment.   

338

Rep. Schaufler

States that this issue is the most painful issue that he faces as a legislator.  Says that, if someone is doing a job, they deserve the same wages and benefits as the other people who are doing the same job.  Shares concern that people with disabilities will not be paid the same wages and receive the same benefits if HB 3074 passes.  Asks for clarification about the definition of disabled.

394

Melton

Says that they follow the Americans with Disability Act (ADA) definition of what constitutes a disability.  States that the people who come to Galt have to have a condition that creates a barrier to their employability. 

408

Kral

Mentions the Oregon Products of Disabled Individuals Law.  States that the Oregon Revised Statutes is stricter than the ADA definition because it includes a barrier to employment definition.

TAPE 85, B

011

Rep. Schaufler

Supports flexibility in the law to help people with disabilities to receive training that helps those people get jobs.

021

Burroughs

States that the reason that it took so long to gain employment at ODOT was due to reorganization issues. 

031

Rep. Schaufler

Talks about limited duration employees.  Indicates that a person should get the wages and the benefits that other people are receiving after working for the state after a certain amount of time.

048

Rep. Shields

Asks about language on page one line 20-23 and if the language allows them to be employed in the same position longer than 1,040 hours.

053

Melton

Says that a person can be moved into another position at the state after 1040 hours, but cannot stay in the same position for longer than 1040 hours should HB 3074 pass.  Notes what was done by Galt before the 1040 hour limit was imposed. 

073

Kral

States that the language in HB 3074 should not create a temporary job that will extend beyond 1040 hours.  Says that employees do not have to stay with Galt and that these people can apply to work with the State on a permanent basis. 

083

Rep. Schaufler

Reiterates that everyone who is doing the same job should receive the same benefits and wages.

092

Rep. Kitts

Asks if people are employees of Galt and if Galt pays the employees.

095

Melton

States that Galt pays the employees and manages their retirement and unemployment insurance costs.

100

Rep. Holvey

Asks why the state would not consider a person a full time employee if they had been working at the state for more than six months.

102

Melton

Talks about the situations that create a need for temporary employees. 

113

Kral

Notes the restriction that the state has on how many permanent employees can exist and says that they use temporary employees as needed. 

120

Rep. Holvey

Reiterates that the issue is very difficult.  Speaks in support of fully integrating disabled people into the workforce.  Shares concerns about outsourcing and commissions that are taken by those who provide temporary employment to the state.

131

Kral

Says that his organization is funded by taking a very low percentage of the wages, which amounts to about $225,000 a year on a net gross of over $40 million.  

142

Rep. Holvey

Mentions concerns about the language on the DePaul website about outsourcing.  Talks about his concern that the goal is to displace workers.  Supports putting disabled people to work. 

155

Burroughs

Says that when he was working for Galt he was getting a wage higher than what ODOT was paying the original employee.  States that the perceived low wage paid to people with disabilities is inaccurate. 

181

Rep. Schaufler

Says that he believes that in Mr. Burroughs’ case he got paid a good wage, but that there are examples of workers being displaced and low wages being paid.

192

Reifel

Asserts that every state agency needs temporary employees.  Talks about how they are asking for a person with disabilities to be considered for employment.  States that she has never had the experience of being paid less than other employees who have worked in the same position.

217

Chair Brown

Notes that Ms. Reifel is correct.

219

Rep. Esquivel

States that the concern is that the system may be abused if HB 3074 passes and that they do not want people to be a permanent temporary employees who does not receive the same benefits.

230

Melton

Talks about how Ms. Reifel has difficulty interviewing and is afraid to apply for jobs.  States that Galt is a good bridge for some disabled people to obtain employment.

258

Mary Botkin

American Federation of State County and Municipal Employees.  Speaks in opposition to HB 3074.  States what the policy of the state is in relation to the employment of disabled people.  Says that a decade ago Oregon realized that the state government was exploiting temporary employees.  Notes that the difference between permanent employees and temporary employees is that the permanent employees get full benefits, seniority, and are protected by the unions.  States that an integrated workforce must include people of different races, sexes, and abilities. 

310

Botkin

Says that the private sector should have to adhere to the standards that have been set by the state.  Asserts that HB 3074 allows people to keep temporary employees on a permanent basis.  States that there is a need for temporary employees and that after six months they should be moved to limited duration status.

366

Jessica Stevens

Service Employees International Union.  Speaks in opposition to HB 3074.  Talks about the need for opportunities for disabled peoples.  Believes that the language in HB 3074 is too broad and HB 3074 may cause the elimination of family wage jobs.  States that HB 3074 may make it more difficult for people with disabilities to gain employment. 

TAPE 86, B

001

Stevens

Reiterates that HB 3074 does not address steady and permanent employment for people with disabilities. 

010

Botkin

States that if an employee does not interview well then that person should be coached to get through the interview process.  Asserts that there are other ways than those proposed under HB 3074 to help disabled people obtain employment.

023

Chair Brown

Closes the public hearing on HB 3074 and opens the public hearing on HB 3262.

HB 3262 – PUBLIC HEARING

032

Elizabeth Poecker

Employee, Department of Justice representing self.  Submits and reads from written testimony in support of HB 3262 (EXHIBIT H).  Talks about her service in the military and in the state of Oregon.  Says that veterans need to have the right to buy back four years for their Public Employment Retirement System (PERS) account at different methods rather than the highest monthly benefit requirement. 

065

Rep. Jeff Kropf

House District 17.  Submits written testimony in support of HB 3262 (EXHIBIT I).  Says that veterans need the opportunity to buyback PERS benefits.  States that HB 3262 costs the state nothing.  Thanks Steve Delaney from PERS for his hard work.

090

Rep. Kitts

Asks about the request for an emergency clause.

094

Rep. Kropf

Says that it will take an amendment.

097

Chair Brown

Suggest that it could be amended on the Senate side.

099

Rep. Kropf

Indicates that he will take care of the amendment.

103

Rep. Schaufler

Asks if the committee can make a conceptual amendment.

104

Rep. Kitts

States that there is language in HB 3262 that would have to be deleted.

108

Rep. Kropf

Recommends that the committee wait for Legislative Counsel to draft the amendments.

116

Chair Brown

Closes the public hearing on HB 3262 and opens the work session on HB 3262.

HB 3262 – WORK SESSION

118

Rep. Kitts

MOTION:  Moves HB 3262 to the floor with a DO PASS recommendation.

122

Rep. Schaufler

Thanks Ms. Poecker and Rep. Kropf for bringing the legislation forward.

126

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

130

Rep. Kitts

MOTION:  Moves HB 3262 be placed on the CONSENT CALENDAR.

132

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

133

Chair Brown

Closes the work session on HB 3262.  Opens a work session on HB 2294.

HB 2294 – WORK SESSION

136

Janet Adkins

Committee Administrator.  Explains HB 2294. 

168

Rep. Schaufler

Asks if the Labor-Management Advisory Committee (MLAC) approved HB 2294.

170

Chair Brown

States that HB 2294 was approved by MLAC.

171

Rep. Kitts

MOTION:  Moves HB 2294 to the floor with a DO PASS recommendation.

175

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

180

Rep. Kitts

MOTION:  Moves HB 2294 be placed on the CONSENT CALENDAR.

182

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

183

Chair Brown

Closes the work session on HB 2294.  Opens the work session on HB 3435, HB 3436, HB 3437, and HB 3022.

HB 3435, HB 3436, HB 3437, HB 3022 – WORK SESSION

185

Janet Adkins

Committee Administrator.  Believes that the sponsor wanted the committee to move the bills to the Joint Committee on Ways and Means without recommendation.

187

Chair Brown

States that if the bills come back they will look very different.

190

Rep. Holvey

States that he has reservations about HB 3022.   

195

Rep. Kitts

Recommends that a separate vote be taken on HB 3022.

197

Rep. Schaufler

Reiterates his right to oppose any of the bills.

200

Rep. Kitts

MOTION:  Moves HB 3435, HB 3436, and HB 3437 to the floor WITHOUT RECOMMENDATION as to passage and BE REFERRED to the committee on Ways and Means.

215

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

220

Rep. Kitts

MOTION:  Moves HB 3022 to the floor WITHOUT RECOMMENDATION as to passage and BE REFERRED to the committee on Ways and Means.

225

Rep. Holvey

States that he does have opposition to HB 3022.

230

 

VOTE:  6-1-0

AYE:               6 - Esquivel, Gilman, Kitts, Schaufler, Shields, Brown

NAY:               1 - Holvey

 

Chair Brown

The motion CARRIES.

238

Adkins

Talks about the possibility of an evening meeting.

251

Chair Brown

Closes the work session on HB 3435, HB 3436, HB 3437, and HB 3022.  Adjourns the meeting at 10:23 a.m.

           

 

EXHIBIT SUMMARY

 

  1. HB 2579, -1 amendments, staff, 1 p
  2. HB 2579, written testimony, Don Miner, 1 p
  3. HB 2008, -1 amendments, staff, 2 pp
  4. HB 2008, informational packet and written testimony of Forrest Barnes, Don Miner, 11 pp
  5. HB 2008, informational packet, Steve Leedom, 9 pp
  6. HB 3074, written testimony, Tim Kral, 1 p
  7. HB 3074, written testimony, Debi Melton, 1 p
  8. HB 3262, written testimony, Elizabeth Poecker, 1 p
  9. HB 3262, written testimony, Rep. Jeff Kropf, 1 p