HOUSE COMMITTEE ON

BUSINESS, LABOR, AND CONSUMER AFFAIRS

 

 

April 27, 2005 Hearing Room B

8:30 A.M. Tapes  105 - 106

 

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 2200 – Work Session

HB 2060 – Work Session

HB 2069 – Public Hearing and Work Session

HB 2720 – 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 105, A

003

Chair Brown

Calls the meeting to order at 8:37 a.m.  Opens the work session on HB 2200

HB 2200 – WORK SESSION

007

Janet Adkins

Committee Administrator.  Explains HB 2200.  Submits the -3 amendments (EXHIBIT A).

024

Craig Smith

Construction Contractors Board.  Speaks in support of HB 2200. 

027

Rep. Kitts

MOTION:  Moves to ADOPT HB 2200-3 amendments dated 04/25/05.

032

 

VOTE:  6-0-1

EXCUSED:  1 - Schaufler

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

034

Rep. Kitts

MOTION:  Moves HB 2200 to the floor with a DO PASS AS AMENDED recommendation.

037

 

VOTE:  6-0-1

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

EXCUSED:  1 – Schaufler

(NOTE: Please see page 3, tape 15A, of this tape log for Rep. Schaufler’s vote.)

 

Chair Brown

The motion CARRIES.

REP. ESQUIVEL will lead discussion on the floor.

044

Chair Brown

Closes the work session on HB 2200 and opens the work session on HB 2060.

HB 2060 – WORK SESSION

046

Janet Adkins

Committee Administrator.  Explains HB 2060 and the -1 amendments (EXHIBIT B).  Submits fiscal statement on -1 amendments (EXHIBIT P).

075

Lori Sattenspiel

Oregon Community College Association.  Talks about HB 2060 and the -1 amendments.  Explains that clarifications have been made.  States that they hope that only one plan will exist for all the community colleges.  Says that FTE qualifications are still under dispute in another bill.  

104

Rob Wagner

American Federation of Teachers.  Submits and reads from written testimony in opposition to HB 2060 (EXHIBIT D).  Expresses concern about the eligibility.  Says that currently under the PERS calculations you are PERS eligible.  States that they have colleges who are using only in-class time to calculate who is eligible for benefits.  Agrees with the idea of having the system wide plan.  Explains issue regarding line seven and eight of the -1 amendments.  Wants all community colleges to offer an optional retirement plan.  

160

Wagner

Shares concern that some of the provisions may drive down benefits for professors.

170

BethAnn Darby

Oregon Education Association (OEA).  Submits written testimony in opposition to HB 2060 (EXHIBIT C).  States that there are fundamental issues that need to be addressed before the OEA can consider the bill.  Expresses concern about the nature of part-time community college faculty.  Mentions the main areas of concern (EXHIBIT C, Page 1 and 2)

221

Chair Brown

Asks if they can reach an agreement.

223

Darby

Believes that they can reach an agreement.  Explains the problems that have started to emerge as they explore the issue.

234

Chair Brown

Speaks in support of HB 2060.

237

Darby

Mentions the bill on the Senate side that will address some of the issues.  Talks about a tier one or a tier two professor that will qualify and mentions the six percent contribution.  States that they do not have objections to HB 2060 coming forward.

268

Rep. Schaufler

Shares concern about the eligibility requirements.  Says that he does not have a problem with the intent of HB 2060.

276

Rep. Holvey

Wants all the eligibility requirements to be the same at each community college.  Echoes Rep. Schaufler’s concerns.

287

Rep. Esquivel

Says that the problem of who determines a full time employee needs to be addressed.  Wants to work the issue out and get every community college on the same page.

303

Rep. Shields

Shares concerns about community college funding.  Asks if they are committed to working towards a system-wide standard.

312

Sattenspiel

Asserts that they are trying to work towards a system-wide standard.

322

Chair Brown

Asks them to work on HB 2060 further.  Closes the work session on HB 2060.  Opens the public hearing on HB 2069.

HB 2069 – PUBLIC HEARING

339

Janet Adkins

Committee Administrator.  Explains HB 2069. 

353

Michael Snyder

Landscape Contractors Board.  Thanks Rep. Kitts for his hard work.  Explains the -1 amendments (EXHIBIT E).  Mentions that the issues in section two were not resolved.  States that they are allowing employees of construction contractors to do landscaping if they are working on a custom home.  

386

Bill Cross

Oregon Landscaper Contractors Association. Thanks Rep. Kitts for heading up the workgroup.  Speaks in support of HB 2069 and the -1 amendments. 

409

Rep. Kitts

Thanks everyone for their participation in the workgroup.  States that the amendments make HB 2069 a very simple bill.  Wants to work out a compromise on section two of the original HB 2069, which will not be addressed in the 2005 Legislative Session.

TAPE 106, A

004

Snyder

Says that the impact on the agency will be minor and that it will not affect the General Fund

010

Adkins

Says that the referral to Ways and Means may be rescinded. 

 

Elizabeth Rathbun

Water Wise Landscape Designs.  Submits written testimony in opposition to HB 2069 without oral testimony (EXHIBIT Q)

014

Chair Brown

Closes the public hearing on HB 2069.  Opens the work session on HB 2069.

HB 2069 – WORK SESSION

019

Rep. Kitts

MOTION:  Moves to ADOPT HB 2069-1 amendments dated 04/25/05.

021

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

022

Rep. Kitts

MOTION:  Moves HB 2069 to the floor with a DO PASS AS AMENDED recommendation and the SUBSEQUENT REFERRAL to the committee on Ways and Means BE RESCINDED.

027

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

REP. KITTS will lead discussion on the floor.

038

Chair Brown

Closes the work session on HB 2069 and opens a work session for the purpose of allowing Rep. Schaufler to vote on HB 2200.

HB 2200 – WORK SESSION

039

Rep. Kitts

MOTION:  Requests unanimous consent that the rules be SUSPENDED to allow REP. SCHAUFLER to BE RECORDED as voting AYE on the motion to move HB 2200 to the floor with a DO PASS AS AMENDED recommendation.

041

 

VOTE:  7-0-0

(NOTE: See page one, tape 10A, of this tape log for the original vote.)

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

044

Chair Brown

Closes the work session for the purpose of allowing Rep. Schaufler to vote on HB 2200 and opens the public hearing on HB 2720.

HB 2720 – PUBLIC HEARING

046

Janet Adkins

Committee Administrator.  Explains HB 2720 and submits the -1 amendments (EXHIBIT R).  Submits written testimony on the behalf of Phillip Kennedy-Wong in opposition to HB 2720 (EXHIBIT O).

058

Rep. Jeff Kropf

House District 7.  Says that farmers are going to automation to avoid hiring workers because minimum wage is too high.  States that the minimum wage in Oregon makes it difficult for farmers with labor intensive crops to compete with farmers in Idaho, because Idaho uses the federal minimum wage.  Notes that if minimum wage’s expansion is not capped it could lead to higher inflation.

124

Lynn Lundquist

Oregon Business Association.  Submits and reads written testimony in support of HB 2720 (EXHIBIT F).  Notes that HB 2720 will keep Oregon businesses competitive during inflationary periods.  Talks about companies looking at producing canola oil in Oregon.

179

Lundquist

States that Oregon farmers have to compete with Midwest farmers.  Believes that the disparity between the federal minimum wage and Oregon’s minimum wage will continue to increase.  Notes that HB 2720 is a preemptive measure and allows minimum wage to stay stable.

219

Rep. Schaufler

Talks about a tax credit for farmers that would help offset the effects of minimum wage.  Asks if he has examined this issue and how it would affect minimum wage.

240

Lundquist

States that he has not examined the agricultural tax credit.

248

Barry Bonder

Owner, Nestle Toll House Café, Beaverton.  Submits and reads from written testimony in support of HB 2720 (EXHIBIT G).  Asserts that no automatic increase should exist in relationship to Oregon’s minimum wage.  States that the high minimum wage drives companies away from Oregon.  Talks about hiring a new worker. 

306

Bonder

Continues to read from written testimony (EXHIBIT G).  States that his employees are unskilled people doing unskilled work and are not using the money to support themselves.  Notes that the minimum wage increases the cost of living. 

357

JL Wilson

National Federation of Independent Businesses.  Speaks in support of HB 2720.  Says that HB 2720 will protect businesses from “worse case scenarios”.  Believes that if there is high inflation and low economic growth increasing the minimum wage would cause employment to cease to exist.  Wants safeguards in place to protect businesses. 

398

Rep. Shields

Talks about a business possibly transferring their company to Canada because healthcare costs are lower.  Asks if people would be willing to pay a little extra for food to ensure that others have decent wages.

TAPE 105, B

006

Lundquist

Says that in competitive markets people will not pay more for a product.  Wants to preserve costs and notes the problems that can occur during times of inflation. 

020

Wilson

Notes that if all businesses just competed with other businesses in Oregon then it would be a simpler issue.  Says that the service economy does not drive economic growth and that industry drives growth.  Expresses shock about Rep. Shield’s story of a company moving to Canada and says that he has not heard of any similar stories.

036

Bonder

Says that some consumers are not going to pay the extra five percent and says that fixed costs still come into place. 

042

Rep. Shields

Asks if it is fair to cut minimum wage because one company wants to pay its employees less.

047

Bonder

Talks about how workers in Texas are not all paid minimum wage.  Notes that people get merit raises.  Says that the current minimum wage is not fair to the adults working at minimum wage.

058

Rep. Diane Rosenbaum

House District 42.  Submits and reads written testimony in opposition to HB 2720 (EXHIBIT H).   States that the majority of people working for minimum wage are over they age of 20.  Says that minimum wage is helping working people pay for the increased cost of living.  Notes that having arguments over HB 2720 goes against the will of the voters.  Submits written testimony on the behalf of Sean Brown in opposition to HB 2720 (EXHIBIT H)

123

DeEtte Peck

Gresham.  Submits and reads written testimony in opposition to HB 2720 (EXHIBIT I).  Talks about living on minimum wage while going to school and supporting her daughters.

171

Patrick Green

Oregon AFL-CIO.  Submits and reads written testimony in opposition to HB 2720 (EXHIBIT J).  Mentions the importance of keeping workers above the federal poverty level.  Talks about how jobs in Oregon have increased.  Says that the inflation of the 70s and 80s will not come back.  Notes that people who make minimum wage spend their paychecks in Oregon.  Talks about other expenses that are not being capped. 

279

Chair Brown

Talks about a bill that Rep. Schaufler and Rep. Kropf have in another committee that would allow for a tax credit tied to the Consumer Price Index’s percentage change.  Asks if Mr. Green supports the bill.

284

Green

States that the AFL-CIO does not have a position on the bill.  Says that the bill Rep. Schaufler is speaking of resembles more of a strategic investment approach.  Wants to protect workers from cost of living increases.

295

Rep. Schaufler

Speaks in opposition to HB 2720.  Believes that the state of Oregon has created barriers to business through land use laws and electricity rates.  Notes that Oregon has sustainable and abundant resources that are not used. 

369

Mark Simmons

Oregon Association of Nurseries.  Speaks in support of HB 2720.  Talks about how nurseries are the largest segment of the agricultural industry in Oregon.  Says that anyone can better themselves through initiative and that employees are not paid minimum wage for long if they take initiative.  Talks about the difficulty in competing with other states where the minimum wage is lower.   

386

Don Schellenberg

Oregon Farm Bureau.  Submits and reads from written testimony in support of HB 2720 (EXHIBIT K).  Talks about how the Consumer Price Index (CPI) is based on urban economies not rural economies.  Notes that labor intensive crops have the possibility for added-value and the non-labor intensive crops do not have much possibility for added-value processing.  Notes that a trickle effect does not get back to the farmer. 

TAPE 106, B

001

Schellenberg

Says that HB 2720 will soften the CPI problem. 

026

Simmons

Notes that the automatic increase in minimum wage counteracts incentives for workers.

052

Ellen Lowe

Oregon Law Center and the Oregon Food Bank.  Speaks in opposition to HB 2720.  Talks about the history of  minimum wage.  Says that increasing the minimum wage gradually is better than increasing it in large “jumps”.  Says that the greatest economic stimulus comes when you add to the disposable income of the working poor in Oregon.

121

Rep. Schaufler

Thanks Ms. Lowe for her tireless effort on the behalf of Oregon workers.

129

Ramon Ramirez

Northwest Tree Planters and Farm Workers United.  Speaks in opposition to HB 2720.  Talks about how many workers work for less than minimum wage.  Notes that European reporters were surprised to find that there are still third world conditions in the United States.  States that ten percent of farm workers are under the age of 13.  States that the nursery industry is booming in Oregon and says that there is no competition, because crops in the South cannot compete with crops from Oregon.  Says that the minimum wage for guest workers is $8.10 an hour.  Offers to get statistics for the committee from the Department of Labor on guest workers.  

233

Leodergario Vallejo

Speaks on behalf of Jorge Gavina.  Says that earning minimum wage does not cover their families’ living expenses.  States that if minimum wage does not go up then they will have to solicit state and federal benefits.    

286

Rep. Brad Witt

House District 31.  Speaks in opposition to HB 2720.  Talks about how a decrease in minimum wage would hurt workers in Oregon. 

320

Jeff Anderson

United Food and Commercial Workers.  States that their union contracts state that the workers pay must float above the minimum wage.  Talks about how healthcare costs are increasingly being paid by workers.

355

Mark Digerness

SEIU.  Submits and reads written testimony in opposition to HB 2720 (EXHIBIT L).  Talks about his experience working as a janitor.  Notes his pay and the cost of living in Portland. 

415

Kevin Grant

Oregon Student Association (OSA).  Submits and reads written testimony in opposition to HB 2720 (EXHIBIT M).  Mentions the difficulties that college students have paying bills and says that many of them work minimum wage jobs.  States that he will graduate $24,000 in debt and that he has worked a minimum wage job the entire time.

 

Dan Gardner

Submits written testimony in opposition to HB 2720 without oral testimony (EXHIBIT N)

450

Chair Brown

Closes the public hearing on HB 2720 and adjourns the meeting at 10:31 a.m.

 

 

EXHIBIT SUMMARY

 

  1. HB 2200, -3 amendments, staff, 2 pp
  2. HB 2060, -1 amendments, staff, 5 pp
  3. HB 2060, written testimony, BethAnn Darby, 3 pp
  4. HB 2060, written testimony, Rob Wagner, 2 pp
  5. HB 2069, -1 amendments, staff, 6 pp
  6. HB 2720, written testimony, Lynn Lundquist, 3 pp
  7. HB 2720, written testimony, Barry Bonder, 2 pp
  8. HB 2720, written testimony and written testimony of Sean Brown, Rep. Diane Rosenbaum, 2 pp
  9. HB 2720, written testimony, DeEtte Peck, 2 pp
  10. HB 2720, written testimony, Patrick Green, 3 pp
  11. HB 2720, written testimony, Don Schellenberg, 2 pp
  12. HB 2720, written testimony, Mark Digerness, 1 p
  13. HB 2720, written testimony, Kevin Grant, 2 pp
  14. HB 2720, written testimony, Dan Gardner, 2 pp
  15. HB 2720, written testimony, Phillip Kennedy-Wong, 1 p
  16. HB 2060, fiscal statement, staff, 2 pp
  17. HB 2069, written testimony, Elizabeth Rathbun, 2 pp
  18. HB 2720, -1 amendments, staff, 1 p