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