SENATE COMMITTEE ON BUSINESS AND ECONOMIC DEVELOPMENT

 

 

February 22, 2005                                                                                                   Hearing Room B

1:00 P.M.                                                                                                                     Tapes  27 - 28

 

MEMBERS PRESENT:         Sen. Rick Metsger, Chair

Sen. Bruce Starr, Vice-Chair

Sen. Jason Atkinson

Sen. Ryan Deckert

Sen. Laurie Monnes Anderson

 

STAFF PRESENT:                 Theresa Van Winkle, Committee Administrator

James Goulding, Committee Assistant

 

 

MEASURES/ISSUES HEARD:        

                                                SB 17 – Work Session

                                                SB 462 – Work Session

                                                SB 328 – 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 27, A

003

Chair Metsger

Calls the committee to order at 1:05 p.m.  Opens a work session on SB 17.

SB 17 – WORK SESSION

005

Theresa Van Winkle

Committee Administrator.  Explains the provisions of the measure and the -1 amendments.

013

Chair Metsger

Notes his approval for moving the -1 amendments.

017

Sen. Atkinson

MOTION:  Moves to ADOPT SB 17-1 amendments dated 1/25/05.

 

 

VOTE:  3-0-2

EXCUSED:  2 - Deckert, B. Starr

019

Chair Metsger

Hearing no objection, declares the motion CARRIED.

022

Sen. Atkinson

MOTION:  Moves SB 17A to the floor with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means by prior reference.

 

 

VOTE:  4-0-1

EXCUSED:  1 - Deckert

024

Chair Metsger

Hearing no objection, declares the motion CARRIED.

025

Chair Metsger

Closes work session on SB 17.  Opens a work session on SB 462.

SB 462 – WORK SESSION

027

Van Winkle

Explains the measure before the committee.

030

Chair Metsger

Recalls the details of the public hearing.

035

Sen. B. Starr

MOTION:  Moves SB 462 to the floor with a DO PASS recommendation.

 

 

VOTE:  4-0-1

EXCUSED:  1 - Deckert

037

Chair Metsger

Hearing no objection, declares the motion CARRIED.

SEN. ATKINSON will lead discussion on the floor.

040

Chair Metsger

Closes work session on SB 462.  Opens public hearing on SB 328.

SB 328 – PUBLIC HEARING

045

Sen. Morse

Senate District 8.  Begins testimony in favor of SB 328.  Explains the function of the bill to the committee.

063

Chair Metsger

Thanks Sen. Morse for his testimony.  Outlines the order in which others will testify.  Calls Don Miner to testify.

070

Don Miner

Executive Director, Oregon Manufactured Housing Association.  Presents written testimony in favor of SB 328 (EXHIBIT B).

090

Chair Metsger

Asks if Mr. Miner can articulate the difference between manufactured homes and modular homes.

095

Miner

Replies that the primary difference is that one is federally regulated and the other is state regulated.  Continues to present his testimony on the bill. 

145

Miner

Continues to testify, presenting information on the manufactured home building and sales process in Oregon.

185

Chair Metsger

Asks Mr. Miner to hold off on his testimony to allow Sen. Ben Westlund to testify.

195

Sen. Ben Westlund

Senate District 27.  Testifies in favor of SB 328.  Concurs with the assessments of prior testimony.  Emphasizes that this legislation is needed to assist Oregon’s home manufacturing industry.

230

Miner

Resumes his testimony in regards to Oregon’s manufactured housing industry.  Feels this legislation is needed to create jobs and expand the industry through exports to other states.  Mentions the -1 amendments (EXHIBIT C) and -2 amendments (EXHIBIT D) to the bill. 

275

Sen. Atkinson

Wonders if their industry is suffering under excessive construction liability insurance requirements.

280

Miner

Replies that most are self insured, but relates there are some retailers suffering under the costs.

290

Greg Harmon

Commonwealth Real Estate.  Testifies in favor of SB 328.  Outlines the expansion of the building industry.  Discusses history of modular housing industry. 

330

Steve Leedom

Champion Homes of Oregon.   Testifies in favor of SB 328.  Talks about the jobs lost in Woodburn.  Feels that with this legislation, the industry would be able to flourish and expand.

TAPE 28, A

005

Chair Metsger

Clarifies that additional modular homes would be manufactured in Oregon with the passage of this bill.

010

Leedom

Reiterates that Oregon based building operations would expand.

020

Sen. Monnes Anderson

Wonders what the difference is between the type of electrical and plumbing work in prefabricated structures as opposed to licensed work done on other construction projects.

025

Miner

Describes the differences in licensing requirements in California that allow for additional work to be done by the same people.

040

Sen. Monnes Anderson

Asks for clarification on the differences between manufacturing work and construction work.

047

Miner

Points out that page one of the bill makes clear that a manufactured home that is not built to Oregon standards cannot be sold within the state.

060

Sen. Monnes Anderson

States that the point she wanted made is that there is a significant difference in the quality of work being performed. 

070

Miner

Provides additional details on the oversight of manufacturing standards.

075

Chair Metsger

Asks what safeguards there are for modular homes exported out of state and then purchased and imported back into the state.

080

Miner

Clarifies how a home coming back into the state would have to meet standards.  Details the inspections tags on the homes.

090

Chair Metsger

Wonders about the percentage of growth in the manufactured housing market that could be expected to occur.

100

Leedom

Responds that he cannot provide exact figures.  Notes that there are many companies ready to begin the manufacturing process. 

110

Sen. B. Starr

Asks, for example, if he could buy a modular home.

115

Miner

Replies that no one builds them to Oregon standards within the state.

125

Burton Weast

Building Trades.  Testifies about his concerns over SB 328.  Feels that the bill takes jobs away from one group and gives to another.  Offers that the issue should be revisited later to make sure it is operating as anticipated. 

145

Weast

Suggests a sunset clause amendment to the bill to see if jobs are created and how.  Details that the sunset should take affect in about 4 years to ensure a review of the legislation. 

165

Jared Broadfoot

International Brotherhood Electrical Workers.  Testifies on SB 328, concurring with Mr. Weast’s proposal for an amendment.

180

Chair Metsger

Presents his concerns that a sunset clause would scare away potential investment.  Agrees that their point is valid in regards to reviewing the impact at a future date.

200

Sen. B. Starr

Agrees with Chair Metsger’s comment that a legislative review at a future date would be helpful.

205

Sen. Deckert

Concurs with Sen. B. Starr’s assessment.

207

Sen. Monnes Anderson

Adds her agreement.

220

Brian Grall

Fuqua Homes.  Presents the committee with Fuqua Homes CD-ROMs (EXHIBIT E).  Testifies in favor of SB 328.  Comments on the necessity of the bill to assist the industry.

305

Forrest Barnes

Palm Harbor Homes.  Testifies in favor of SB 328.  Discusses the huge demand for modular homes in California.  Points out their Arizona plant is handling all requests.  Comments that Oregon could tap into that part of the industry.  Presents a large handout photo of a custom home (EXHIBIT F).

360

Chair Metsger

Wonders how long after the passage of SB 328 would it be before the industry began to show improvements.

370

Barnes

Replies it could take a year or two to see tangible improvement in the industry. 

380

Grall

Concurs with Mr. Barnes.  Talks about the time needed to break ground on a new project.

390

Sen. Monnes Anderson

Asks how much a home like the one pictured in the photo would cost in Oregon.

400

Barnes

Replies he doesn’t know what it would sell for in Oregon.  Comments it would sell for around $160,000 in Arizona.

410

Chair Metsger

Points out the committee is greatly interested in growing jobs.  Discusses some of the industry concerns brought up.

TAPE 27, B

005

Chair Metsger

Continues to discuss his concern over losing businesses and jobs to other states.  Feels this bill is a positive step in the right direction.  Asks for an amendment to create a monitoring mechanism to allow the legislature to track the measure’s impact on the industry.

020

Chair Metsger

Closes the public hearing on SB 328.  Adjourns the meeting at 2:03 p.m.

 

 

EXHIBIT SUMMARY

 

  1. SB 17, -1 amendments, staff, 2 pp
  2. SB 328, Written Testimony, Don Miner, 8 pp
  3. SB 328, -1 amendments, staff, 1p
  4. SB 328, -2 amendments, staff, 1 p                           
  5. SB 328, Fuqua Homes CD-ROM, Brian Grall
  6. SB 328, Custom home large photo, Forrest Barns, 1 p