HOUSE COMMITTEE ON

BUSINESS, LABOR AND CONSUMER AFFAIRS

 

 

March 03, 2003   Hearing Room E

8:30 A.M. Tapes  44 - 45

 

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:            Informational Meeting – High Tech Site Selection

                                                HB 2682 – Public Hearing

                                                HB 2737 – Public Hearing and Work Session

Introduction of Committee Measures LC 1150, 1152, 1976, 3072, 3443, 3155, 3277, 3279, 3280, & 3278 – 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 Close

Calls meeting to order at 8:37 a.m. Opens informational meeting.

INFORMATIONAL MEETING – HIGH TECH SITE SELECTION

014

Keith Thomson

Former Vice-President and Site Manager, Intel. Explains Intel expansion into Oregon.

212

Rep. Kitts

Asks what can be done to improve tax structure in Oregon to attract businesses.

221

Thomson

Explains ideas for potential tax structure improvements.

239

Rep. Kitts

Asks for primary reason why Intel located in Oregon.

246

Thomson

Explains reasons Intel moved to Oregon.

269

Rep. Schaufler

Asks what Oregon can do to attract businesses such as Intel.

287

Thomson

Explains ideas steps Oregon can take to attract businesses.

318

Rep. Schaufler

Asks about investment and return on business development.

326

Thomson

Explains that in time of his last involvement with Intel, return on investment was 10:1.

332

Rep. Garrard

Asks if lack of airline service would eliminate rural areas of Oregon from consideration for business development.

354

Thomson

Explains benefits of airline service and impact on business development.

400

Chair Close

Asks about potential sites for business development in Oregon.

410

Thomson

Explains need for infrastructure and other benefits for business development.

TAPE 45, A

020

Rep. Gallegos

States support for efforts to attract companies such as Intel to Oregon.

025

Chair Close

Asks about legislation regarding “shovel ready land.”

028

Thomson

Explains how to prepare for business development.

042

Rep. Merkley

Asks about tax incentives.

053

Jonathon Williams

Intel. Explains his knowledge and involvement.

061

Rep. Rosenbaum

Asks about education system and its effect on corporate expansion into Oregon.

068

Thomson

Explains impacts of education system on corporate expansion.

111

Chair Close

Closes informational meeting. Opens public hearing on HB 2682.

HB 2682 – PUBLIC HEARING

113

Megan Palau

Committee Administrator. Summarizes HB 2682.

123

John McCulley

Oregon Association of Mortgage Brokers. Submits and summarizes prepared testimony in support of HB 2682 (EXHIBIT A).

234

Chair Close

Asks about making language more specific to achieve objectives.

240

McCulley

Responds that it could be done.

254

Chair Close

Expresses concern about access to records.

258

Rep. Garrard

Asks if criminal background check would already be done on loan originators.

261

McCulley

Explains provisions regarding loan originators and background checks.

274

Rep. Merkley

Asks about standards for background checks.

277

McCulley

Answers that standards would be set by rulemaking process.

286

Rep. Merkley

Asks if authority would be contained in provisions.

289

McCulley

Answers yes.

291

Rep. Merkley

Asks if language is specific enough to achieve desired intent.

293

McCulley

Answers yes.

303

John Powell

State Farm Insurance. Explains forthcoming amendment addressing “full time.”

330

Chair Close

Asks for clarification of 60-day timeframe.

333

Powell

Offers clarification of 60-day timeframe.

347

Andrea Meyer

Legislative Director, American Civil Liberties Union (ACLU) of Oregon. Expresses concern about background checks.

363

Rep. Garrard

Asks about seriousness of problem.

368

Meyer

Answers that she is not familiar with specific problem.

376

Chair Close

Closes public hearing on HB 2682. Opens public hearing on HB 2737.

HB 2737 – PUBLIC HEARING

383

Megan Palau

Committee Administrator. Summarizes HB 2737.

400

Rep. Mark Hass

House District 27. Submits and summarizes prepared testimony in support of HB 2737 (EXHIBIT B).

425

Dan Lulich

Chief Technology Officer, Rulespace, Inc. Submits and summarizes prepared testimony in support of HB 2737 (EXHIBIT C).

TAPE 44, B

026

Chair Close

Asks how spam process works.

030

Lulich

Explains variations of spam.

055

Dr. Dana Smith

Submits and summarizes prepared testimony in support of HB 2737 (EXHIBIT D).

106

Chair Close

Asks about specifics of Dr. Smith’s identity theft.

108

Smith

Explains her situation.

110

Rep. Schaufler

Asks about effectiveness of Washington spam law.

116

Rep. Hass

Explains effectiveness of Washington spam law.

130

Rep. Garrard

Commends Rep. Hass and Chair Close for bringing HB 2737.

136

Rep. Gallegos

Asks how emails such as Nigerian money-laundering messages could be stopped.

144

Lulich

Explains complexities of law in addressing international cases.

163

Rep. Gallegos

Asks about effectiveness of legislation.

168

Lulich

Explains that law would be effective, but issue is difficult to address.

185

Rep. Gallegos

Asks about reciprocal legislation in other states.

186

Rep. Hass

Explains potential for HB 2737.

198

Rep. Schaufler

Asks if Dr. Smith’s practice has been negatively impacted due to problem.

200

Dr. Smith

Answers no, but notes that it could be problem for others.

207

Jim Craven

Oregon Council, American Electronics Association. Testifies in support of concept of HB 2737. Expresses reservations about specifics of legislation.

283

Chair Close

Asks for clarification of similar Senate legislation.

286

Craven

Clarifies that SB 261 and SB 121 are similar concepts.

290

Chair Close

Asks about similar laws in other states.

294

Craven

Explains similar laws in other states.

302

Jim Gardner

Microsoft Corporation. Testifies in support of concept. States that bill does not go far enough. Explains desire for ADV subject line in emails and liability shield.

365

Chair Close

Concurs with Mr. Gardner that amendments addressing ADV subject line may be warranted.

375

Rep. Rosenbaum

Asks if other states use Unlawful Trade Practices Act as enforcement for regulation.

380

Gardner

Answers that some do, but he cannot speak for all.

399

Cheryl Pelligrini

Assistant Attorney General, Financial Fraud and Consumer Protection Department, Oregon Department of Justice. Explains that legislation puts “finer point” on current law.

TAPE 45, B

019

Rep. Gallegos

Asks what consumers can do for protection.

023

Pelligrini

Explains recourse for consumers impacted by email fraud.

047

Chair Close

Asks why ADV subject line would be unconstitutional.

053

Pelligrini

Answers that Oregon Constitution does not differentiate between commercial and non-commercial use.

065

Chair Close

Asks if magazine ads designed to appear as articles would also be unconstitutional.

068

Pelligrini

Answers that she is unsure how law addresses magazine advertisements.

078

Chair Close

Argues that provisions in bill do not limit free speech, but give consumers protection against abuse.

080

Pelligrini

Explains that legislation similar to “no call” legislation.

092

Rep. Merkley

Notes constitutional issues related to spam and legislation to address it.

109

Rep. Rosenbaum

Asks about language related to Washington law.

111

Pelligrini

Explains differences between Oregon’s bills and Washington law.

114

Rep. Rosenbaum

Asks about specificity of language in bill.

120

Pelligrini

Explains that work group is addressing issue.

130

Chair Close

Closes public hearing on HB 2737. Opens work session for introduction of committee measures.

INTRODUCTION OF COMMITTEE MEASURES – WORK SESSION

135

Rep. Kitts

MOTION:  Moves LC's:  1150, 1152, 1976, 3072, 3443, 3155, 3277, 3279, 3280, & 3278 BE INTRODUCED as committee bills (EXHIBIT E).

145

Rep. Rosenbaum

Notes that introducing committee measures does necessarily indicate support for bills.

148

Chair Close

Concurs and states that committee bill introduction is done as courtesy to bill sponsors.

 

 

VOTE:  7-0

 

Chair Close

Hearing no objection, declares the motion CARRIED.

153

Chair Close

Closes work session. Adjourns meeting at 10:12 a.m.

 

EXHIBIT SUMMARY

 

A – HB 2682, written testimony and information, John McCulley, 8 pp

B – HB 2737, written testimony, Rep. Mark Hass, 1 p

C – HB 2737, written testimony, Dan Lulich, 1 p

D – HB  2737, written testimony, Dr. Dana Smith, 1 p

E – LC drafts: 1150, 1152, 1976, 3072, 3443, 3155, 3277, 3279, 3280, & 3278, staff, 65 pp