HOUSE COMMITTEE ON

 BUSINESS, LABOR AND CONSUMER AFFAIRS

 

 

February 12, 2003   Hearing Room E

8:30 A.M. Tapes  28 - 29

 

MEMBERS PRESENT:            Rep. Betsy Close, Chair

Rep. Derrick Kitts, Vice-Chair

Rep. Diane Rosenbaum, Vice-Chair

Rep. Mary Gallegos

Rep. Bill Garrard

Rep. Jeff Merkley

Rep. Mike Schaufler

 

STAFF PRESENT:                  Megan Palau, Committee Administrator

Mike Reiley, Committee Assistant

 

MEASURE/ISSUES HEARD:            HB 2389 – Public Hearing

HB 2391 – Public Hearing

HB 2383 – Public Hearing

HB 2438 – Public Hearing

HB 2383 – 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 28, A

003

Chair Close

Calls meeting to order at 8:37 am. Opens public hearing on HB 2389.

HB 2389 – PUBLIC HEARING

009

Megan Palau

Committee Administrator. Summarizes HB 2389.

016

Scott Barrie

Oregon Building Industry Association (OBIA). Testifies in support of HB 2389.

033

Dan Dorn

Sunco Homes. Testifies in support of HB 2389. Explains difficulties for builders in obtaining insurance.

078

Chair Close

Asks what Exterior Insulation and Finish System (EIFS) is.

079

Dorn

Explains it is synthetic stucco which has been involved in lawsuits.

084

Rep. Schaufler

Asks about lawsuits regarding EIFS.

087

Dorn

Explains lawsuits regarding EIFS. Concludes testimony.

159

Rep. Garrard

Asks if 90-day timeframe for complaints is appropriate.

168

Dorn

Explains ramifications of timeframe.

174

Ron Manza

Professional Insurance Agents of Oregon. Submits and summarizes prepared testimony in support of HB 2389 (EXHIBIT A).

212

Rep. Schaufler

Asks about ability of homeowner to sue for negligence.

220

Manza

Explains effect of HB 2389 on potential lawsuits.

236

Rep. Kitts

Asks for clarification of language in HB 2389.

247

Barrie

Clarifies language.

257

Rep. Kitts

Asks about liability and insurance rates.

267

Dorn

Explains liability and insurance rates.

271

Rep. Kitts

Asks for further clarification of liability and insurance process.

277

Dorn

Explains process.

305

Rep. Rosenbaum

Asks about timeframe for addressing complaints.

323

Paul Gary

OBIA. Explains process and timeframe for addressing complaints.

342

Rep. Rosenbaum

Asks about timeframe.

353

Gary

Offers further clarification of timeframe.

370

Rep. Rosenbaum

Asks about complaint process.

380

Gary

Explains complaint process.

TAPE 29, A

005

Barrie

Offers further clarification of complaint process and addresses statute of limitation.

018

Chair Close

Asks if statutes of limitation in Oregon are similar to statutes in other states.

020

Manza

Explains statutes of limitation in other states.

025

Rep. Merkley

Answers yes.

027

Barrie

Explains amendments are forthcoming.

030

Rep. Merkley

Asks about homeowner’s ability to make repairs during complaint timeframe.

052

Manza

Explains that most insurance provides for emergency repairs. Explains timeframe.

087

Bob Repine

Oregon Housing of Community Services. Testifies in support of HB 2389.

125

Bill Boyd

Manager, Claims Resolution Program, Construction Contractors Board (CCB). Describes comparisons with HB 2233. Explains claims process.

169

Chair Close

Asks for clarification of numbers of claims in resolution process.

170

Boyd

Explains claims process and resolutions.

187

Chair Close

Asks about year timeframe for filing complaint.

190

Boyd

Explains timeframe.

193

Chair Close

Asks about HB 2389 extending the process.

195

Boyd

Explains that it will not affect CCB process.

197

Rep. Garrard

Asks if HB 2389 addresses prefabricated homes.

206

Boyd

Explains provisions regarding prefabricated homes.

209

Rep. Rosenbaum

Asks about HB 2389 claims process and current claims process.

214

Boyd

Explains claims processes.

232

Rep. Rosenbaum

Expresses concern regarding litigation confusion.

240

Boyd

Explains that amendments are forthcoming to offer clarification.

246

Rep. Merkley

Asks for information about rising insurance costs.

260

Boyd

Responds he will obtain information.

272

Rep. Merkley

Asks about mandatory arbitration process and effect on litigation.

280

Boyd

Responds that there are many different clauses to prevent litigation.

300

Chair Close

Closes public hearing on HB 2389. Opens public hearing on HB 2391.

HB 2391 – PUBLIC HEARING

340

Kelly Paige

Executive Director, Oregon Board of Investigators. Submits and summarizes prepared testimony in opposition to HB 2391 (EXHIBIT B).

345

Megan Palau

Committee Administrator. Summarizes HB 2391.

350

Paige

Continues prepared testimony.

385

Mark Holady

Attorney, Washington County. Submits and summarizes prepared testimony in support of HB 2391 (EXHIBIT C).

TAPE 28, B

030

Chair Close

Asks about costs to become private investigator.

032

Holady

Explains costs.

038

Chair Close

Asks how many private investigators are in Oregon.

040

Holady

Explains numbers of private investigators.

062

Rep. Gallegos

Asks about regulation of private investigators.

064

Holady

Explains competition and regulation of private investigators.

077

Rep. Gallegos

Asks about assurances that information provided by investigators is correct.

087

Holady

Explains regulations regarding investigators and heir tracers.

096

Paige

Explains that genealogists are not exempted, but they are generally not financially compensated.

110

Chuck Bennett

Public Member, Oregon Board of Investigators. Explains heir tracer process.

118

Chair Close

Asks if investigators are paid with percentage of what they recover.

120

Nelson

Responds that it is between 10-50%.

175

Rep. Merkley

Asks about motivation for bringing HB 2391.

183

Nelson

Responds that statute is not “on point”. Explains actions of heirs in inheritance cases.

216

Chair Close

Closes public hearing on HB 2391. Opens public hearing on HB 2383.

HB 2383 – PUBLIC HEARING

225

Paul Cosgrove

Oregon Financial Services Association, United Financial Lobby, Alliance of Automobile Manufacturers. Explains concerns with HB 2383.

244

Chair Close

Asks if there is work being done to propose amendments.

246

Cosgrove

Answers yes.

250

Chair Close

Closes public hearing on HB 2383. Opens public hearing on HB 2438.

HB 2438 – PUBLIC HEARING

255

Megan Palau

Committee Administrator. Summarizes HB 2438.

268

Erin Thurber

Brooks, Oregon. Testifies in support of HB 2438.

344

Cheryl Pellegrini

Assistant Attorney General, Consumer Protection and Financial Fraud Division, Oregon Department of Justice. Submits and summarizes prepared testimony in opposition to HB 2438 (EXHIBIT D).

425

Rep. Merkley

Expresses appreciation to Mr. Thurber for speaking on behalf of HB 2438. Asks about central issue.

438

Pellegrini

Explains her opinion of central issue.

447

Chair Close

Closes public hearing on HB 2438. Opens public hearing on HB 2383.

TAPE 29, B

HB 2383 – PUBLIC HEARING

025

Monty King

Executive Director, Oregon Independent Auto Dealers Association. Submits and summarizes prepared testimony (EXHIBIT E). Explains proposed amendments.

037

Rep. Gallegos

Asks about secondary liens.

042

King

Responds and continues summarizing testimony.

077

Rep. Merkley

Asks about selling vehicles commercially or wholesale.

082

King

Explains regulations regarding selling vehicles.

090

Vice-Chair Kitts

Asks about tow operators selling vehicles and dealers’ licenses.

098

King

Responds.

103

Vice-Chair Kitts

Clarifies that tow operators in question do not have dealers’ licenses.

105

King

Answers yes.

112

Rep. Rosenbaum

Asks about moving cars without license plates.

120

King

Explains moving cars without license plates.

136

Rep. Gallegos

Asks for clarification about moving cars without license plates.

141

Kelly Taylor

Department of Transportation. Explains process for obtaining trip permit.

163

Rep. Garrard

Explains desire to protect consumers with HB 2383. Expresses concern that vehicle owners could still be liable for vehicles not under their control.

172

Taylor

Explains process for selling vehicles.

188

Rep. Garrard

Asks when liability ends.

190

Taylor

Clarifies liability in vehicle sale.

204

Rep. Garrard

Asks about consumer protection.

206

Taylor

Explains protection for consumers.

213

Rep. Garrard

Asks for clarification of consumer protections.

219

Taylor

Offers further clarification.

224

Rep. Kitts

Asks about action necessary to resolve issue.

239

Taylor

Explains action necessary to resolve issue.

254

Rep. Kitts

Asks about title transfer.

263

Taylor

Explains process for title transfer.

376

Rep. Merkley

Asks for clarification of title transfer process.

302

Taylor

Explains effect of HB 2383 on process.

316

Rep. Gallegos

Asks about enforcement of registering and insuring cars.

329

Taylor

Explains benefit of insuring cars.

371

King

Explains issues addressed by HB 2383.

413

Chair Close

Closes public hearing on HB 2383. Adjourns meeting at 10:33 am.

Written testimony submitted by Jeannette Holman, Assistant Director, Finance & Administration, Division of State Lands regarding HB 2391 (EXHIBIT F).

 

 

EXHIBIT SUMMARY

 

A – HB 2389, prepared testimony, Ron Manza, 1 p.

B – HB 2391, prepared testimony and information, Kelly Paige, 3 pp.

C – HB 2391, prepared testimony, Mark Holady, 2 pp.

D – HB 2438, prepared testimony, Cheryl Pelligrini, 1 p.

E – HB 2383, prepared testimony, Monty King, 2 pp.

F – HB 2391, written testimony, Jeannette Holman, 1 p.