HOUSE COMMITTEE ON

BUSINESS, LABOR AND CONSUMER AFFAIRS

April 30, 2003 Hearing Room E

8:30 A.M. Tapes 107 – 109

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

MEASURES HEARD: HB 2967 – Work Session

HB 3322 – Work Session

SB 331A – Public Hearing

SB 199 – Public Hearing and Work Session

SB 248 – Public Hearing and Work Session

SB 734A – Public Hearing and Work Session

SB 235A – Public Hearing

SB 253A – 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 107, A
004	Chair Close	Calls meeting to order at 8:38 a.m. Opens work session on HB 2967.
HB 2967 – WORK SESSION
010	Rep. Rosenbaum	MOTION: Moves to SUSPEND the rules for the purpose of RECONSIDERING the vote on HB 2967.
013		VOTE: 6-0-1 EXCUSED: 1 – Kitts
	Chair Close	Hearing no objection, declares the motion CARRIED.
015	Rep. Rosenbaum	MOTION: Moves to RECONSIDER the vote by which HB 2967 was sent to the floor with a DO PASS AS AMENDED recommendation.
017		VOTE: 6-0-1 EXCUSED: 1 – Kitts
	Chair Close	Hearing no objection, declares the motion CARRIED.
020	Rep. Rosenbaum	MOTION: Moves to RECONSIDER the vote by which HB 2967-1 amendments dated 4/11/03 were ADOPTED (EXHIBIT A).
023		VOTE: 6-0-1 EXCUSED: 1 – Kitts
	Chair Close	Hearing no objection, declares the motion CARRIED.
034	J.L. Wilson	National Federation of Independent Business. Explains the -2 amendments (EXHIBIT B).
072	Rep. Rosenbaum	Asks about the fiscal impact.
076	Wilson	Explains fiscal impact.
085	Rep. Merkley	Asks if the revised fiscal statement is forthcoming.
088	Wilson	Explains work done in obtaining fiscal impact.
095	Rep. Gallegos	MOTION: Moves to ADOPT HB 2967-2 amendments dated 4/28/03.
098		VOTE: 6-0-1 EXCUSED: 1 – Kitts
	Chair Close	Hearing no objection, declares the motion CARRIED.
100	Rep. Gallegos	MOTION: Moves HB 2967 to the floor with a DO PASS AS AMENDED recommendation.
103		VOTE: 6-0-1 AYE: In a roll call vote, all members present vote Aye. EXCUSED: 1 – Kitts
	Chair Close	The motion CARRIES. REP. GALLEGOS will lead discussion on the floor.
110	Chair Close	Closes work session on HB 2967. Opens work session on HB 3322.
HB 3322 – WORK SESSION
115	Megan Palau	Committee Administrator. Summarizes HB 3322.
119	Bob Shiprack	Executive Secretary, Oregon Building Trades Council. Testifies in support of HB 3322.
180	Ed Glad	Pacific Northwest Regional Council of Carpenters. Testifies in support of HB 3322.
195	Jeff Carlson	Ironworkers Local 29. Testifies in support of HB 3322.
210	Rep. Rosenbaum	Asks about the amendments.
212	Shiprack	Explains them.
221	Rep. Rosenbaum	Asks if employers would be charged for the program.
222	Shiprack	Explains funding.
230	Rep. Rosenbaum	MOTION: Moves HB 3322 to the floor with a DO PASS recommendation.
233		VOTE: 7-0 AYE: In a roll call vote, all members present vote Aye.
	Chair Close	The motion CARRIES. REP. MARCH will lead discussion on the floor.
240	Chair Close	Closes work session on HB 3322. Opens public hearing on SB 331A.
SB 331A – PUBLIC HEARING
250	Pamela Leavitt	Senior Vice-President of Governmental Affairs/Public Relations, Credit Union Association of Oregon (CUAO). Submits and summarizes prepared testimony in support of SB 331A (EXHIBIT C).
260	Harold Scoggins	CUAO. Summarizes prepared testimony in support of SB 331A (C).
TAPE 108, A
020	Chair Close	Asks about changes to provisions in statute.
025	Scoggins	Explains provisions.
032	Rep. Rosenbaum	Asks about application of restrictions on deposits.
036	Scoggins	Offers clarification of restrictions on deposits.
045	Ralph Goodwin	President/CEO, Grant-Baker Federal Credit Union. Summarizes prepared testimony in support of SB 331A (C).
074	Rep. Kitts	Asks if objections of opponents is regarding corporate income tax.
079	Goodwin	Offers clarification of tax provisions.
088	Rep. Merkley	Asks if depositors would be members of credit union.
090	Scoggins	Explains provisions regarding credit union membership.
101	Rep. Merkley	Asks for clarification of membership and deposits to credit union.
108	Scoggins	Offers further clarification of membership and deposits.
127	Rep. Kitts	Asks about difference between credit unions and banks.
139	Scoggins	Explains difference between credit unions and banks.
175	Casey Wheeler	President/CEO, St. Helens Community Federal Credit Union. Summarizes prepared testimony in support of SB 331A (C).
217	Rep. Schaufler	Asks for comparison of community service hours and loss of revenue.
231	Leavitt	Offers explanation of community service.
242	Wheeler	Explains it is over $50,000.
245	Leavitt	Continues summary of prepared testimony.
282	Tim Martinez	Oregon Bankers Association. Testifies in opposition to SB 331A.
417	Dan Hempe	Chairman, Oregon Bankers Association. Testifies in opposition to SB 331A.
TAPE 107, B
046	Rep. Schaufler	Expresses concerns about issue of “level playing field” and keeping money in local community.
066	Martinez	Addresses concerns of Rep. Schaufler.
080	Rep. Schaufler	Comments on revenue issues.
085	Martinez	Notes those comments were heard on the senate side. Speaks on local control issues. Lists cities in Oregon that have banks. States he does not see the counties and schools involved in the issue.
127	Hempe	Explains competition between banks and credit unions.
176	Rep. Kitts	Asks if all credit unions are not for profit and all banks are for profit.
187	Martinez	Explains differences between banks and credit unions.
193	Rep. Kitts	Asks if bill would allow credit unions to “infiltrate” operations of banks without paying taxes.
213	Martinez	Answers yes. Offers further clarification of differences.
225	Rep. Garrard	Expresses support for SB 331A. Explains experience as county commissioner dealing with banks and credit unions.
262	Chair Close	Asks if there has been shift in money between banks and credit unions in states where similar legislation has been passed.
265	Martinez	Answers that he does not know. Addresses comments made by Rep. Garrard.
Written testimony submitted by Robin Freeman, Oregon People’s Utility District Association, in support of SB 331A (EXHIBIT D).
300	Chair Close	Closes public hearing on SB 331A. Opens public hearing on SB 199.
SB 199 – PUBLIC HEARING
312	Megan Palau	Committee Administrator.
315	Floyd Lanter	Administrator, Division of Finance and Corporate Securities, Department of Consumer and Business Services. Submits and summarizes prepared testimony in support of SB 199 (EXHIBIT E).
379	Chair Close	Closes public hearing and opens work session on SB 199.
SB 199 – WORK SESSION
381	Rep. Rosenbaum	MOTION: Moves SB 199 to the floor with a DO PASS recommendation.
383		VOTE: 5-0-2 AYE: In a roll call vote, all members present vote Aye. EXCUSED: 2 - Gallegos, Kitts
	Chair Close	The motion CARRIES. REP. ROSENBAUM will lead discussion on the floor.
390	Chair Close	Closes work session on SB 199. Opens public hearing on SB 200.
SB 200 – PUBLIC HEARING
397	Megan Palau	Committee Administrator. Summarizes SB 200.
415	Floyd Lanter	Administrator, Division of Finance and Corporate Securities, Department of Consumer and Business Services. Submits and summarizes prepared testimony in support of SB 200 (EXHIBIT F).
450	Chair Close	Closes public hearing on SB 200. Opens public hearing on SB 248.
TAPE 108, B
SB 248 – PUBLIC HEARING
030	Megan Palau	Committee Administrator. Summarizes SB 248.
035	Floyd Lanter	Administrator, Division of Finance and Corporate Securities, Department of Consumer and Business Services. Submits and summarizes prepared testimony in support of SB 248 (EXHIBIT G).
060	Chair Close	Asks about fiscal impact.
062	Lanter	Explains fiscal impact.
073	Chair Close	Closes public hearing and opens work session on SB 248.
SB 248 – WORK SESSION
075	Rep. Merkley	MOTION: Moves SB 248 to the floor with a DO PASS recommendation.
078		VOTE: 6-0-1 AYE: In a roll call vote, all members present vote Aye. EXCUSED: 1 – Kitts
	Chair Close	The motion CARRIES.
081	Rep. Merkley	MOTION: Moves SB 248 be placed on the CONSENT CALENDAR.
083		VOTE: 6-0-1 AYE: In a roll call vote, all members present vote Aye. EXCUSED: 1 – Kitts
	Chair Close	The motion CARRIES.
	Chair Close	Closes work session on SB 248. Opens public hearing on SB 734A.
SB 734A – PUBLIC HEARING
090	Megan Palau	Committee Administrator. Summarizes SB 734A.
100	John Powell	American International Group, Standard Insurance Company. Submits and summarizes the prepared testimony of by John Mangan, American Council of Life Insurers (EXHIBIT H). Testifies in favor of SB 734A. Explains the allowances of the bill.
136	Rep. Schaufler	Asks about retroactivity.
142	Lewis Littlehales	Insurance Division. Answers.
153	Chair Close	Asks how many other states have similar legislation.
160	Rep. Merkley	Asks about changes in provisions.
170	Littlehales	Explains changes.
190	Rep. Merkley	Asks for further clarification of charges.
195	Littlehales	Offers further clarification.
208	Chair Close	Asks about changing name from insurance providers to
210	Powell	Explains it is addressed in other legislation.
224	Chair Close	Closes public hearing and opens work session on SB 734A.
SB 734A – WORK SESSION
227	Rep. Rosenbaum	MOTION: Moves SB 734A to the floor with a DO PASS recommendation.
230		VOTE: 6-0-1 AYE: In a roll call vote, all members present vote Aye. EXCUSED: 1 – Kitts
	Chair Close	The motion CARRIES. REP. GARRARD will lead discussion on the floor.
235	Chair Close	Closes work session on SB 734A.
240	Rep. Garrard	MOTION: Requests unanimous consent that the rules be SUSPENDED to allow REP. GALLEGOS to BE RECORDED as voting AYE on the motion to move SB 199 to the floor with a DO PASS recommendation.
243		VOTE: 6-0-1 EXCUSED: 1 – Kitts
	Chair Close	Hearing no objection, declares the motion CARRIED.
246	Chair Close	Opens public hearing on SB 235A.
SB 235A – PUBLIC HEARING
255	Joel Ario	Insurance Administrator, Department of Consumer and Business Services. Submits and summarizes prepared testimony in support of SB 235A (EXHIBIT I).
315	Chair Close	Notes there are conflict amendments.
318	Ario	Adds the amendments are forthcoming.
320	Rep. Merkley	Asks if there are issues related to the notices that consumers would be concerned about.
335	Ario	Explains disclosure issues regarding consumers.
355	Chair Close	Closes public hearing on SB 235A. Opens public hearing on SB 253A.
SB 253A – PUBLIC HEARING
360	Megan Palau	Committee Administrator. Summarizes SB 253A.
365	Joel Ario	Administrator, Insurance Administrator, Department of Consumer and Business Services. Submits and summarizes prepared testimony in support of SB 253A (EXHIBIT J).
437	Rep. Merkley	Asks for clarification of “rebating.”
TAPE 109, A
004	Ario	Explains “rebating.”
020	Chair Close	Closes public hearing on SB 253A.
023	Rep. Merkley	MOTION: Requests unanimous consent that the rules be SUSPENDED to allow REP. KITTS to BE RECORDED as voting AYE on the motion to move SB 199 to the floor with a DO PASS recommendation.
024		VOTE: 7-0
	Chair Close	Hearing no objection, declares the motion CARRIED.
025	Rep. Merkley	MOTION: Requests unanimous consent that the rules be SUSPENDED to allow REP. KITTS to BE RECORDED as voting AYE on the motion to move SB 248 to the floor with a DO PASS recommendation.
026		VOTE: 7-0
027	Rep. Merkley	MOTION: Requests unanimous consent that the rules be SUSPENDED to allow REP. KITTS to BE RECORDED as voting AYE on the motion to move SB 734A to the floor with a DO PASS recommendation.
028		VOTE: 7-0
	Chair Close	Hearing no objection, declares the motion CARRIED.

EXHIBIT SUMMARY

A – HB 2967, -1 amendment, staff, 2 pp

B – HB 2967, -2 amendment, staff, 1 p

C – SB 331A, written testimony, Pamela Leavitt, 21 pp

D – SB 331A, written testimony, Robin Freeman, 5 pp

E – SB 199, written testimony, Floyd Lanter, 2 pp

F – SB 200, written testimony, Floyd Lanter, 2 pp

G – SB 248, written testimony, Floyd Lanter, 2 pp

H – SB 734A, written testimony, John Powell, 2 pp

I – SB 235A, written testimony, Joel Ario, 3 pp

J – SB 253A, written testimony, Joel Ario, 3 pp