HOUSE COMMITTEE ON

BUSINESS, LABOR, AND CONSUMER AFFAIRS

 

 

May 27, 2005 Hearing Room B

1:00 P.M. Tapes  148 - 149

Corrected 10/03/05

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:        

SB 316A – Public Hearing and Work Session

HB 2535 – Public Hearing and Work Session

SB 1006 – Work Session

SB 477A – 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 148, A

003

Chair Brown

Calls the meeting to order at 10:40 a.m.  Opens the public hearing on SB 316A.

SB 316A – PUBLIC HEARING

007

Janet Adkins

Committee Administrator.  Explains SB 316A.

020

Sen. Avel Gordly

Senate District 23.  Speaks in support of SB 316A.  Reads ORS 943.325.  Talks about ORS 200.035.  States that what is missing from the statute is the requirement that the results of solicitations for the Minority, Women, and Small Businesses program be reported.

087

Lydia Muniz

Governor’s Advocate for Minority, Women, and Small Businesses. Speaks in support of SB 316A.  Wants state agencies to notify what solicitations have been made and what contracts were awarded to Minority, Women, and Small Businesses.

113

Dianne Lancaster

Oregon Chief Procurement Officer, Department of Administrative Services.  Submits written testimony in support of SB 316A (EXHIBIT A).  Says DAS will support state agencies to enact SB 316A.

124

Rep. Holvey

Asks who SB 316A affects.

126

Sen. Gordly

Says that it only affects state agencies.

129

Adkins

Asks if the purpose is to track where the awards went.

133

Muniz

Notes the current statutes implications and says that it is to track information to see if the resources of the Minority, Women, and Small Business program is working.

147

Chair Brown

Closes the public hearing on SB 316A.  Opens the work session on SB 316A.

SB 316A – WORK SESSION

149

Rep. Esquivel

MOTION:  Moves SB 316A to the floor with a DO PASS recommendation.

157

 

VOTE:  5-0-2

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

EXCUSED:  2 - Kitts, Schaufler

(NOTE: Please see page 6, tape 149, B, of this tape log for Rep. Kitts and Rep. Schauflers’ vote.)

 

Chair Brown

The motion CARRIES.

REP. ESQUIVEL will lead discussion on the floor.

161

Chair Brown

Closes the work session on SB 316A.  Opens the public hearing on HB 2535.

HB 2535 – PUBLIC HEARING

163

Janet Adkins

Committee Administrator.  Submits the -1 amendments (EXHIBIT B)

173

Rep. Greg Smith

House District 57.  Speaks in support of HB 2535 with the -1 amendments.  States that the Oregon Economic and Community Development Department (OECDD) is incorrectly perceived by people in Oregon.

267

Rep. G Smith

Explains the -1 amendments.  States that they want to look at what are the best practices in Oregon.  Wants to dedicate development to ports and small businesses. 

331

Rep. G Smith

Talks about how people perceive the OECDD as providing the means for communities in Oregon to carry out their economic development project. 

395

Chair Brown

Asks what the time frame is.

397

Rep. G Smith

States that they are starting when session ends and will complete the report by September 2006.

405

Rep. Gilman

Appreciates the September 1st deadline.

412

Rep. Holvey

Asks how the different regions were developed.

417

Rep. G Smith

Says that the Association of Oregon Counties determined the regions.

423

Rep. Schaufler

Asks if the recommendation from the committee will have to be unanimous or a majority.

TAPE 149, A

003

Rep. G Smith

States that it will be a majority.  Says they will attempt to get  a consensus. 

016

Chair Brown

States that HB 2535 sounds like a very ambitious undertaking.

019

Rep. Gilman

Talks about regional ideas and all the different regions that exist in the state.  Wants the committee to look at making the regions uniform for all the state departments.

025

Rep. G Smith

Wants to bring all the departments together to look at the state’s development. 

045

Lynn Beaton

Oregon Economic and Community Development Department (OECDD).  States that the OECDD supports the concept of having a taskforce.  Says that the agency is ready to work on the issue.  Offers comments on the membership of the taskforce.  Wants to ensure that there was a local economic development member on the taskforce and good representation from the entire state.  States that one taskforce member should be from the OECDD. 

079

Tom Gallagher

Portland Business Alliance, Schnitzer Industries.  Speaks in support of HB 2535.  Talks about permitting on the state level and the frustration that came from those committees.  Indicates that there is a need for an infrastructure that looks at the direction of economic development. 

132

Gallagher

Emphasizes that state agencies need to be aligned under the same plan.

143

Rep. Schaufler

Talks about Connect Oregon and highway projects.  Notes that as Oregonians we are not taking advantage of our natural resources.  Says that the main argument is about how to use our natural resources.

163

Gallagher

Says that in the last thirty years the areas outside of the metropolitan areas have turned into service economies.  Indicates that interest groups need to sit down and find some common ground. 

191

Chair Brown

Closes the public hearing on HB 2535.  Opens the work session on HB 2535. 

HB 2535 – WORK SESSION

195

Rep. Kitts

MOTION:  Moves to ADOPT SB 2535-1 amendments dated 05/26/05.

197

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

200

Rep. Kitts

MOTION:  Moves HB 2535 to with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Budget by prior reference.

204

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

206

Chair Brown

Closes the work session on HB 2535.  Opens the work session on SB 1006.

SB 1006 – WORK SESSION

214

Janet Adkins

Committee Administrator.  Explains SB 1006.  Submits the -1 amendments (EXHIBIT C).

232

Dugan Petty

Department of Administrative Services.  States that the -1 amendments are technical amendments and explains them.   

250

Rep. Schaufler

MOTION:  Moves to ADOPT SB 1006-1 amendments dated 05/26/05.

260

Rep. Gilman

States that 13 senators did not like SB 1006.

266

Chair Brown

States that the objection was to where the forms were going.

273

Rep. Kitts

States that SB 1006 is unnecessary and the existing language is not specific enough.

285

Rep. Esquivel

Shares concern about SB 1006.  States that he will give a courtesy vote to get it to the floor and will do some more research before the vote on the floor.

287

Rep. Kitts

States that if the committee has the concerns then it should not go to the floor.

294

Chair Brown

Speaks in support of SB 1006.  Talks about the construction in Coos County that has generated extra costs.  Believes that SB 1006 will help remedy problems in the state. 

309

Rep. Holvey

Believes that SB 1006 “helps keep the worms in the can”.

315

 

VOTE:  6-1-0

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

NAY:               1 - Kitts

 

Chair Brown

The motion CARRIES.

REP. HOLVEY will lead discussion on the floor.

323

Rep. Kitts

Points out that all four republicans on the committee had concerns with SB 1006.

327

Rep. Schaufler

Counters that he has concerns about every bill that passes through the committee.

332

Chair Brown

Closes the work session on SB 1006.  Opens the work session on SB 477A.

SB 477A – WORK SESSION

341

Janet Adkins

Committee Administrator.  Explains SB 477A.  Submits the –A5 amendments (EXHIBIT D).   

TAPE 148, B

001

Adkins

Continues explaining the –A5 amendments. 

016

Jessica Harris Adamson

Associate General Contractors.  Speaks in support of SB 477A with the -5A amendments.  Talks about the bonding portion of the amendments.  Explains that today public work contractors are required to post a performance and payment bonds.  Says that subcontractors are required by the general contractor to have bonds.  Indicates that their goal is to establish a bond that will enable BOLI to make the bond wage claims.  Offers to answer any questions.

048

Rep. Esquivel

Asks for an explanation of 7(a) on page 2 line 20 to 26. 

052

Harris Adamson

States that the section allows emerging and small businesses to get on their feet before they are required to have the bond.  Notes that often contracts require the use of these small businesses.

065

Rep. Esquivel

Asks who determines disadvantaged.

067

Harris Adamson

States that the Department of Business and Consumer Services does.

072

Rep. Kitts

Shares concern about the same section and asks if it provides an unfair advantage and if it is a public risk for people not to have bonds and how much bonds cost.

088

Harris Adamson

States that they are one and two person shops that are trying to establish a business.  Believes that it does not cause a disadvantage to other companies because there are broader advantages for other businesses. 

106

Rep. Kitts

Asks about the consumer protection component of SB 477A.

111

Harris Adamson

Says that there is a requirement that emerging small businesses must inform the general contractor and that the general contractors bond is subject to claims when the subcontractor does not have a bond.  Mentions that bonds can cost anywhere from one percent to ten percent of the bonds total amount. 

135

Chair Brown

Asks if the bond in SB 477A deals with potential labor claims and not with performance bonds.

136

Harris Adamson

States that he is correct.

137

Rep. Schaufler

Reiterates Chair Brown.

140

Harris Adamson

Notes that SB 447A is only for public works contracts.

144

Chair Brown

Notes that it will help small businesses.

150

Harris Adamson

Believes that SB 477A will provide a level of protection. 

159

Rep. Kitts

Asks what would stop the subcontractors from not paying their employees. 

171

Harris Adamson

States that kind of scenario is not occurring currently.  Believes that general contractors will weed these subcontractors out of the market.

179

Rep. Gilman

Asks about if the $50,000 upper limit on projects includes the donation level for project materials of $50,000.

188

Harris Adamson

Says that if the amount of donated materials is under $50,000 it does not count towards the total $50,000 limit.

200

Rep. Holvey

Asks about the section at the beginning of page five.  Wants to make sure that the wages that are being discussed can be recovered from the general contractor’s bond.

213

Harris Adamson

Says that intention of the provision is in line with what Rep. Holvey is saying.  States that they are trying to avoid a $500,000 claim being made.  

222

Rep. Holvey

Indicates that he wants to make sure a $5,000 wage claim could be made on another bond if one bond does not work.

228

Harris Adamson

States that SB 477A would allow it.  Talks about how it is not a huge shift for general contractors.  Notes that BOLI will create two books to look at the state and federal prevailing wage rates so that a public agency only has to determine what kind of project they are staffing. 

273

Rep. Kitts

Asks about section 7A and if any preference is given to emerging small businesses during the bidding process.

276

Harris Adamson

States that the ability does exist for an agency to give preference to minority and emerging small businesses. 

303

Rep. Holvey

References page 11 line 27 and asks if there is anything in statute that allows action to be taken against subcontractors and general contractors.

307

Harris Adamson

Says that contractors and subcontractors are required to submit truthful statements and a civil penalty does exist for untruthful statements.

340

John Jackley

Oregon Department of Transportation (ODOT).  Submits written testimony which takes a neutral position on SB 477A (EXHIBIT E).  Talks about the section that deals with prevailing wages.  Says that the construction boom that is coming will cause higher wages.  Notes that the requirement for BOLI to put together the information to implement SB 477A will greatly help ODOT.

380

Chair Brown

Asks if there are ODOT contracts under the $50,000 threshold.

385

Jackley

States that most are larger.

392

Rep. Kitts

Requests information from all the proponents of SB 477A.

406

Jon Oshel

Association of Oregon Counties.  Takes a neutral position of SB 477A.  States that their issues with SB 477A have been taken care of. 

TAPE 149, B

001

Oshel

Talks about the threshold and notes that for 2005 the counties are planning on doing 18 projects that would fall under SB 477A.  Says that the volunteer language clarifies a lot of issues. 

040

Bob Avery

Chief of Staff, Rep. Bruce Hanna, House District 7.  Submits and reads written testimony in support of SB 477A (EXHIBIT F).  Believes that there is a broad consensus in the workgroup. 

100

Rep. Kitts

MOTION:  Moves to ADOPT SB 477A-5 amendments dated 05/26/05.

102

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

105

Rep. Kitts

MOTION:  Moves SB 477A to the floor with a DO PASS  as amended recommendation.

109

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

REP. BROWN AND REP. HANNA will lead discussion on the floor.

120

Chair Brown

Closes the work session on SB 477A.  Re-opens the work session on SB 316A for the purpose of allowing Rep. Kitts and Rep. Schaufler to vote.

SB 316A – WORK SESSION

122

Rep. Shields

MOTION:  Requests unanimous consent that the rules be SUSPENDED to allow REP. KITTS AND REP. SCHAUFLER to BE RECORDED as voting AYE on the motion to move SB 316A to the floor with a DO PASS recommendation.

125

 

VOTE:  7-0-0

(NOTE: Please see page 2, tape 148, A, of this tape log for original vote.)

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

129

Chair Brown

Closes the work session on SB 316A for the purpose of allowing Rep. Kitts and Rep. Schaufler to vote.  .Adjourns the meeting at 12:16 p.m.

 

 

EXHIBIT SUMMARY

 

  1. SB 316, written testimony, Diane Lancaster, 2 pp
  2.  HB 2535, -1 amendments, staff, 8 pp
  3. SB 1006, -1 amendments, staff, 2 pp
  4. SB 477, -A5 amendments, staff, 20 pp
  5. SB 477, written testimony, John Jackley, 1 p
  6. SB 477, written testimony, Bob Avery, 2 pp