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