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HB 2429 <br />Relating Clause: Relating to enterprise zones. <br />Title: Modifies qualifications for property tax exemptions for business firms eligible to <br />participate in enterprise zone program. Requires firms engaged in private construction <br />projects with value of $5 million or more to comply with prevailing wage rate law. <br />Sponsored by: Representative SCHAUFLER (at the request of Oregon State Building and Construction <br />Trades Council) <br />URL:http://www.leg.state.or.us/09reg/measpdf/hb2400.dir/hb2429.intro.pdf <br />ContactRespondentDept Updated Priority Policy Poli Numb Recommendation <br />Larry Hill Larry Hill CS-FIN 2/6/2009 Pri 2 No No Oppose <br />Comments: <br />HB 2429 would have a negative financial impact on the City of Eugene. It would newly <br />impose a prevailing wage requirement on private capital investments of $5 or more in an <br />enterprise zone. This would require the City to monitor compliance, increasing costs to <br />the City. The State would not reimburse the City for these costs. <br />ContactRespondentDept Updated Priority Policy Poli Numb Recommendation <br />Richie Weinman PDD-DEV 2/5/2009 Pri 2 Oppose <br />Comments: <br />Summary: Requires construction projects of $5 million or more in the enterprise zone tax <br />exemption program to comply with prevailing wage rate laws. <br />Reason for Opposition: State prevailing rate laws currently exclude all tax exemption <br />programs from triggering prevailing wage laws. The average tax exemption granted in <br />the enterprise zone is approximately 3% of the total project costs. If prevailing wage is <br />required in these projects, the added construction costs would likely be equal or greater <br />than the 3% tax savings, therefore eroding all enterprise zone tax exemption benefit. <br />This disincentive could reduce investment and expansion opportunities and eliminate <br />long-term job creation that results from enterprise zone investment. Additionally, <br />monitoring payrolls for compliance in large construction projects is very labor intensive. <br />The City does not have the resources needed to monitor compliance with this unfunded <br />mandate. <br />HB 2430 <br />Relating Clause: Relating to application of prevailing rate of wage; declaring an emergency. <br />Title: Defines 'building construction' and modifies definition of 'residential construction' for <br />purposes of applying prevailing rate of wage to projects that predominantly provide <br />affordable housing. <br /> Declares emergency, effective on passage. <br />Sponsored by: Representative SCHAUFLER (at the request of Oregon State Building and Construction <br />Trades Council, Associated General Contractors, Oregon Opportunity Network) <br />URL:http://www.leg.state.or.us/09reg/measpdf/hb2400.dir/hb2430.intro.pdf <br />ContactRespondentDept Updated Priority Policy Poli Numb Recommendation <br />Richie Weinman PDD-DEV 2/5/2009 Pri 2 Yes YesIV. C Oppose <br />Comments: <br />While appearing to help, this bill actually will make it more expensive and much more <br />difficult to construct low-income housing by placing additional requirements on projects. <br />HB 2440 <br />Relating Clause: Relating to audits; declaring an emergency. <br />Title: Creates Director of Legislative Audit Office appointed by Joint Legislative Audit <br />Committee. Expands pool of members eligible to serve on committee. Authorizes director <br />to conduct performance and management audits of state agencies and programs and <br />othe <br />5 <br /> <br />