SENATE COMMITTEE ON BUSINESS AND ECONOMIC DEVELOPMENT

 

 

March 18, 2005                                                                               Hood River Valley High School

10:00 AM                                                                                                               Bowe Auditorium

                                                                                                                    1220 Indian Creek Road

                                                                                                                                 Hood River, OR                       

                                                                                                                                     Tapes  44 - 45

 

MEMBERS PRESENT:         Sen. Rick Metsger, Chair

Sen. Bruce Starr, Vice-Chair

Sen. Ryan Deckert

Sen. Laurie Monnes Anderson

 

MEMBER EXCUSED:          Sen. Jason Atkinson

 

STAFF PRESENT:                 Theresa Van Winkle, Committee Administrator

James Goulding, Committee Assistant

 

 

MEASURES/ISSUES HEARD:

                                                SB 365 – Public Hearing and Work Session

                                                SB 479 – Public Hearing and Work Session

                                                SB 421 – Public Hearing and Work Session

                                                SB 879 – Public Hearing

                                                SB 866 – Public Hearing and Work Session

                                                SB 896 – Public Hearing and 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 44, A

003

Chair Metsger

Open the committee at 10:10 am.  Asks the committee members to introduce themselves.

007

Sen. Monnes Anderson

Senate District 25.  Introduces herself.

012

Theresa Van Winkle

Committee Administrator.  Introduces herself.

014

Sen. B. Starr

Senate District 15.  Introduces himself.

016

Sen. Deckert

Senate District 14.  Introduces himself

024

Chair Metsger

Opens a public hearing on SB 365 and SB 479.

SB 365 & SB 479  - PUBLIC HEARING

034

Ken Yates

Testifies in favor of SB 365.  Submits packet of information (EXHIBIT A).

090

Yates

Discusses competitive factors hurting the food processing industry.

125

Yates

Talks about the purpose of the legislation before the committee.

150

Yates

Describes the functions of SB 365 and SB 479 in stimulating the food processing industry,

155

Chair Metsger

Asks how Oregon can face global competition even with his legislation.

175

Yates

Offers Oregon can compete in the global market through innovation.  Outlines innovation by local companies with value-added products.

195

Sen. Monnes Anderson

Inquires about payroll increases and employment decreases.

205

Yates

Clarifies the fluctuation in Oregon and Idaho.

210

Josh Reynolds

Gray and Company.  Provides background on his business in making and exporting maraschino cherries.  Points out he represents the second generation of growers.  Describes the changes in the economics of their business.  Talks about the difficulties of sustaining their business growth in Oregon. 

250

Reynolds

States the increasing pressure to relocate their business, and their motivation to stay within the state.

270

Sen. Monnes Anderson

Asks about Michigan’s minimum wage.

277

Reynolds

Notes Michigan’s minimum wage is the national minimum wage.

283

Sen. Deckert

Wonders what Oregon’s competitive advantage is.

290

Reynolds

Replies the job pool is better and Oregon’s agricultural base is better than some other states.

303

Chair Metsger

Considers what the legislature could do to impact their industry.

320

Reynolds

Talks about cost offsets that could be helpful and changes in their industry practices.

330

Sen. B. Starr

Ask about Michigan’s incentives.

340

Reynolds

Discusses the property tax relief for agriculture zones.

357

Mike Townsend

Townsend Farms.  Offers his observations on Oregon’s farm industry.  Talks about fluctuations in their industry. 

TAPE 45, A    

005

M. Townsend

Talks about changes in the food processing industry.

025

M. Townsend

Outlines the need to work together to support other industries.  Echoes the desire to remain in Oregon, but fears they may have to relocate. 

060

M. Townsend

Feels that their toughest obstacle is maintaining the payroll with a higher minimum wage.

067

Billy Townsend

Owner, Townsend Farms.  Details that they are working hard in their industry and that they are being forced in directions that make it difficult to compete.

087

Chair Metsger

Asks about Mr. Townsend’s background.

090

B. Townsend

Describes that he entered the industry as a young man and intended to build up the family business.  Talks about the importance of strong relationships with their workers.  Details the difficulties of staying competitive in a global market. 

130

B. Townsend

Relates that it is very difficult to keep his business running with the minimum wage hikes.  Implores the committee for help.

145

Chair Metsger

Discusses that it is sometimes difficult to keep focus in the legislature.  Talks about his wife’s family owned business and the similar problems they are facing. 

167

Sen. Monnes Anderson

Asks how the tax credit resulting from SB 365 and SB 479 would help them.

170

M. Townsend

Notes the increasing costs of doing business.  Offers it is a matter of having assistance to keep businesses in Oregon.

185

B. Townsend

Talks about the financial assistance they provide to their workers.

190

M. Townsend

Asks for the assistance to compete on a level playing field.

200

Sen. Deckert

Comments on the value of hearing their testimony and learning the challenges they face.

220

Jerry Gardner

Oregon Department of Agriculture.  Submits testimony and an information packet (EXHIBIT B). 

260

Gardner

Further discusses export figures.

290

Gardner

Emphasizes the increasing factor of globalization and consolidation of the industry. 

335

Chair Metsger

Wonders what his evaluation of these two bills is.

340

Gardner

Offers the bills would help Oregon’s competitive advantage.

345

Sen. Monnes Anderson

Observes that nurseries are getting more support than farmers.  Feels the bill could be more emphasized on farmer industry.

375

Gardner

Details the large size of the nursery industry. 

390

Ken Yates

Offers clarification on the target of the legislation in assisting the industries that need the most help.

410

Sen. B. Starr

Thanks them for their testimony.  Feels these measures are worth supporting.

TAPE 44, B

005

Sen. B. Starr

Speaks of the need to address food provider issues.  Talks about the greater issue of feeding the world’s growing population.

030

Yates

Talks about concerns of national dependence on outside food sources. 

045

Chair Metsger

Feels these bills need to be moved along in the process. Closes public hearings on SB 365 and SB 479.  Opens a work session on SB 365.

SB 365 – WORK SESSION

055

Sen. B. Starr

MOTION:  Moves SB 365 to the floor with a DO PASS recommendation and BE REFERRED to the committee on Revenue by prior reference.

057

 

VOTE:  4-0-1

EXCUSED:  1 – Atkinson

 

Chair Metsger

Hearing no objection, declares the motion CARRIED.

059

Chair Metsger

Closes work session on SB 365.  Opens work session on SB 479.

SB 479 – WORK SESSION

060

Sen. B. Starr

MOTION:  Moves SB 479 to the floor with a DO PASS recommendation and BE REFERRED to the committee on Revenue by prior reference.

062

 

VOTE:  4-0-1

EXCUSED:  1 - Atkinson

 

Chair Metsger

Hearing no objection, declares the motion CARRIED.

063

Chair Metsger

Closes work session on SB 479.  Opens public hearing on SB 421.

SB 421 – PUBLIC HEARING

067

Theresa Van Winkle

Committee Administrator.  Explains the provisions of SB 421.  Discusses -2 amendments (EXHIBIT C).

070

Jerod Broadfoot

Pac/West Communications.  Testifies in favor of SB 421.  Supports the -2 amendments, but has one objection.  Suggests that the word “promote” on page 1, line 10 of the amendment be changed to “provide”.

100

Chair Metsger

Asks if he has consulted other agencies about the changes.

110

Broadfoot

Replies that they are supportive. 

120

Chair Metsger

Considers if there are areas in the state that appear to have greater difficulty interpreting the uniform building code.

125

Broadfoot

States the Medford area has had some difficulty.

134

Sen. B. Starr

Observes the -2 amendment doesn’t appear to match the line numbers on the bill. 

140

Chair Metsger

Examines the measure and amendment.

145

Broadfoot

Offers that additional lines may need to be removed to match it up.

150

Sen. B. Starr

Feel it is a technical issue to be corrected.

155

Sen. Monnes Anderson

Asks if the department has seen this amendment.  Wonders about financial impact.

165

Chair Metsger

Asks that they work out the issues in the amendment before moving on. 

185

Broadfoot

Estimates the potential fiscal impact of the measure.

188

Chair Metsger

Closes public hearing on SB 421.  Opens public hearing on SB 879.

SB 879 – PUBLIC HEARING

190

Sen. Monnes Anderson

Explains the origin and intent of SB 879.

200

Paul Warr-King

Gresham City Counsel.  Testifies in support of SB 879.

245

Ken Frost

Finance Director, LSI Logic Corporation.  Testifies in support of SB 879.

310

John Fregenese

Fregenese-Calthorpe Association. Gives a PowerPoint presentation (EXHIBIT D) in support of SB 879.

360

Fregenese

Details the Springwater Community Plan. 

TAPE 45, B

010

Fregenese

Continues presentation on urban planning.

030

Sen. Monnes Anderson

Asks about businesses who would desire relocating to the Springwater region.  Wonders if it would be a difficult process.

035

Fregenese

Discusses the difficulties of the local hearings in establishing criteria.

051

Sen. Monnes Anderson

Informs the committee about the efforts of the City of Gresham developing this proposal.

060

Sen. B. Starr

Asks if they have looked at the -1 amendments (EXHIBIT E).

063

Ron Papsdorf

City of Gresham.  Observes the amendments add clarity.  Relays that there are no objections he knows of.

077

Sen. Deckert

Wonders about details related to traded sector firms in the amendment.

090

Papsdorf

Replies they didn’t want to change the overall structure of the strategic investment program.

095

Sen. Deckert

Observes that the current criteria is retained in the zone.

100

Papsdorf

Replies he is correct.

103

Chair Metsger

Appreciates their work.  Notes the omission of the City of Damascus in their presentation, hopes that information will be provided.  Close public hearing on SB 879.  Opens public hearing on SB 866 and SB 896.

SB 866 & SB 896 – PUBLIC HEARING

120

Sen. B. Starr

Testifies in favor of SB 866.  Explains the measure and the reasoning behind it.

150

Sen. B. Starr

Testifies in favor of SB 896.  Discusses the measure to create a new Portland area industry with water transit vessels.

180

Sen. B. Starr

Describes the boat design process.  Ventures that this could be an alternative form of moving people in urban areas.

210

Sen. B. Starr

States SB 896 would open the door.

220

Chair Metsger

Asks for the business implications.

225

Sen. B. Starr

Feels there is a lot of potential for this bill.

237

Chair Metsger

Closes public hearings on SB 866 and SB 896.  Opens a work session on SB 866.

SB 866 – WORK SESSION

240

Sen. B. Starr

MOTION:  Moves SB 866 to the floor with a DO PASS recommendation and BE REFERRED to the committee on Revenue by prior reference.

243

 

VOTE:  4-0-1

EXCUSED:  1 - Atkinson

 

Chair Metsger

Hearing no objection, declares the motion CARRIED.

245

Chair Metsger

Closes work session on SB 866.  Opens a work session on SB 896.

SB 896 – WORK SESSION

250

Sen. B. Starr

MOTION:  Moves SB 896 to the floor with a DO PASS recommendation and BE REFERRED to the committee on Revenue by prior reference.

253

Sen. Deckert

Discusses the issue of tax credits.

255

Chair Metsger

Responds to Sen. Deckert’s comments on the issue.

260

 

VOTE:  4-0-1

EXCUSED:  1 - Atkinson

 

Chair Metsger

Hearing no objection, declares the motion CARRIED.

284

Chair Metsger

Closes work session on SB 896.  Opens a work session SB 421.

SB 421 – WORK SESSION

287

Broadfoot

Relates his discussion with legislative counsel.  Explains the clarification needed in the -2 amendment.  Notes the proposed changes.  

320

Chair Metsger

Offers they adopt the amendments as conceptually amended (drafted as -3 amendments, EXHIBIT F). 

335

Sen. B. Starr

MOTION:  Moves to ADOPT SB 421-2 amendments dated 3/17/05 and that the measure be FURTHER AMENDED on page 1, line 10, by deleting "Promote" and by inserting "Provide".

340

Sen. Monnes Anderson

Relates past troubles with conceptual amendments not turning out as planned.  States that she will be a “no” vote.

343

Sen. Deckert

Clarifies the change being made.

350

Broadfoot

Notes that all parties are okay with the changes.

355

 

VOTE:  3-1-1

AYE:               3 - Deckert, Starr B., Metsger

NAY:               1 - Monnes Anderson

EXCUSED:     1 - Atkinson

 

Chair Metsger

The motion CARRIES.

360

Sen. B. Starr

MOTION:  Moves SB 421 to the floor with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means by prior reference.

365

 

VOTE:  3-1-1

AYE:               3 - Deckert, Starr B., Metsger

NAY:               1 - Monnes Anderson

EXCUSED:     1 - Atkinson

 

Chair Metsger

The motion CARRIES.

380

Chair Metsger

Closes work session on SB 421. 

390

Chair Metsger

Makes concluding remarks.  Adjourns committee at 12:00 p.m. 

 

 

EXHIBIT SUMMARY

 

  1. SB 365 & SB 479, Oregon Food Processors Packet, Ken Yates, 55 pp
  2. SB 365 & SB 479, “Oregon Agriculture...”, Jerry Gardner, 16 pp
  3. SB 421, -2 amendments, staff, 2 pp
  4. SB  879, Springwater Community Plan, John Fregenese, 10 pp
  5. SB 879, -1 amendments, staff, 5 pp
  6. SB 421, -3 amendments, staff, 2 pp