HOUSE COMMITTEE ON

BUSINESS, LABOR AND CONSUMER AFFAIRS

 

 

May 02, 2003 Hearing Room E

8:30 A.M. Tapes  110 – 111

 

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:            SB 235A – Work Session

SB 253A – Work Session

SB 200 – Work Session

SB 234 – Public Hearing and Work Session

                                                SB 80A – Public Hearing and Work Session

                                                SB 514A – Public Hearing and Work Session

                                                SB 159A – Public Hearing and Work Session

                                                SB 243A & SB 244 – Public Hearing

                                                SB 243A – Work Session

                                                SB 244 – Work Session

                                                SB 154A – Public Hearing and Work Session

                                                HB 3491 – 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 110, A

003

Chair Close

Calls meeting to order at 8:36 a.m. Opens work session on SB 235A.

SB 235A – WORK SESSION

010

Megan Palau

Committee Administrator. Summarizes SB 235A.

022

Lewis Littlehales

Oregon Insurance Division. Explains SB 235A and –3 amendment (EXHIBIT A).

055

Rep. Rosenbaum

MOTION:  Moves to ADOPT SB 235A-3 amendments dated 4/30/03.

 

 

VOTE:  6-0

EXCUSED:  1 – Kitts

 

Chair Close

Hearing no objection, declares the motion CARRIED.

060

Rep. Rosenbaum

MOTION:  Moves SB 235A to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  6-0

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.

 

Chair Close

Closes work session on SB 235A. Opens work session on SB 253A.

SB 253A – WORK SESSION

070

Megan Palau

Committee Administrator. Summarizes SB 253A and explains -2 amendment (EXHIBIT B).

082

Lewis Littlehales

Oregon Insurance Division. Explains SB 253A and -2 amendment.

100

Rep. Rosenbaum

MOTION:  Moves to ADOPT SB 253A-2 amendments dated 5/1/03.

 

 

VOTE:  6-0

EXCUSED:  1 – Kitts

 

Chair Close

Hearing no objection, declares the motion CARRIED.

105

Rep. Rosenbaum

MOTION:  Moves SB 253A to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  6-0

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  1 – Kitts

 

Chair Close

The motion CARRIES.

REP. ROSENBAUM will lead discussion on the floor.

095

Chair Close

Closes work session on SB 253A. Opens work session on SB 200.

SB 200 – WORK SESSION

114

Megan Palau

Committee Administrator. Summarizes SB 200.

131

Tim Martinez

Oregon Bankers Association. Explains -1 amendment (EXHIBIT C).

137

Chair Close

Asks if Department of Consumer and Business Services supports bill.

140

Martinez

Answers that they do.

145

Rep. Rosenbaum

MOTION:  Moves to ADOPT SB 200-1 amendments dated 5/1/03.

 

 

VOTE:  7-0

 

Chair Close

Hearing no objection, declares the motion CARRIED.

150

Rep. Rosenbaum

MOTION:  Moves SB 200 to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Close

The motion CARRIES.

REP. SCHAUFLER will lead discussion on the floor.

155

Chair Close

Closes work session on SB 200. Opens public hearing on SB 234.

SB 234 – PUBLIC HEARING

157

Megan Palau

Committee Administrator. Summarizes SB 234.

165

John Shilts

Administrator, Workers’ Compensation Division, Department of Consumer and Business Services. Submits and summarizes prepared testimony in support of SB 234 (EXHIBIT D).

200

Chair Close

Closes public hearing on SB 234. Opens work session on SB 234.

SB 234 – WORK SESSION

210

Rep. Kitts

MOTION:  Moves SB 234 to the floor with a DO PASS recommendation and be placed on the CONSENT CALENDAR.

 

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Close

The motion CARRIES.

225

Chair Close

Closes work session on SB 234. Opens public hearing on SB 80A.

SB 80A – PUBLIC HEARING

230

Megan Palau

Committee Administrator. Summarizes SB 80A.

240

Dave Fiskum

Southern Oregon Goodwill Industries. Submits and summarizes prepared testimony in support of SB 80A (EXHIBIT E).

275

Tamara Brickman

Legislative Coordinator, Oregon Employment Department. Submits and summarizes prepared testimony in support of SB 80A (EXHIBIT F).

314

Rep. Garrard

Commends Goodwill and states support for SB 80A.

325

Chair Close

Closes public hearing on SB 80A. Opens work session on SB 80A.

SB 80A – WORK SESSION

335

Brickman

Explains proposed amendment.

355

Rep. Rosenbaum

MOTION:  Moves SB 80A to the floor with a DO PASS recommendation and be placed on the CONSENT CALENDAR.

 

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Close

The motion CARRIES.

364

Chair Close

Closes work session on SB 80A. Opens public hearing on SB 514A.

SB 514A – PUBLIC HEARING

370

Megan Palau

Committee Administrator. Summarizes SB 514A.

385

Carol Rives

Administrator, Oregon Board of Accountancy. Submits and summarizes prepared testimony in support of SB 514A (EXHIBIT G).

435

Chair Close

Closes public hearing on SB 514A. Opens work session on SB 514A.

SB 514A – WORK SESSION

440

Rep. Kitts

MOTION:  Moves SB 514A to the floor with a DO PASS recommendation and be placed on the CONSENT CALENDAR.

 

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Close

The motion CARRIES.

450

Chair Close

Closes work session on SB 514A. Opens public hearing on SB 159A.

TAPE 111, A

SB 159A – PUBLIC HEARING

025

Megan Palau

Committee Administrator. Summarizes SB 159A.

030

Floyd Lanter

Administrator, Division of Finance and Corporate Securities, Department of Consumer and Business Services. Submits and summarizes prepared testimony in support of SB 159A (EXHIBIT H).

055

Rep. Merkley

Asks about limits for interest rates charged in payday loan industry.

058

Lanter

Answers no.

060

Rep. Merkley

Asks for current interest rates in payday loan industry.

065

Lanter

Answers that annual percentage rate averages 400%.

070

Rep. Merkley

Asks what justifies such high interest rate.

072

Lanter

Explains process for payday loans and interest rates.

075

Chair Close

Asks for clarification of payday loan process.

078

Lanter

Offers clarification of payday loan process.

080

Rep. Merkley

Asks about intentions in SB 159A for electronic payment.

082

Lanter

Explains electronic payment provisions in SB 159A.

090

Chair Close

Closes public hearing on SB 159A. Opens work session on SB 159A.

SB 159A – WORK SESSION

095

Rep. Kitts

MOTION:  Moves SB 159A to the floor with a DO PASS recommendation.

 

 

VOTE:  4-3

AYE:               4 - Gallegos, Garrard, Kitts, Close

NAY:               3 - Merkley, Rosenbaum, Schaufler

 

Chair Close

The motion CARRIES.

REP. GALLEGOS will lead discussion on the floor.

100

Rep. Merkley

Serves notice of possible Minority Report on SB 159A.

103

Chair Close

Closes work session on SB 159A. Opens public hearing on SB 243A and SB 244.

SB 243A & SB 244 – PUBLIC HEARING

105

Megan Palau

Committee Administrator. Summarizes SB 243A and SB 244.

110

Mike Carrier

Oregon Parks and Recreation Department (OPRD). Submits and summarizes prepared testimony in support of SB 243A (EXHIBIT I).

135

Mirra Meyer

Staff, Oregon Pioneer Cemetery Commission. Concurs with testimony of Mr. Carrier.

140

Carrier

Submits and summarizes prepared testimony in support of SB 244 (EXHIBIT J).

155

Chair Close

Closes public hearing on SB 243A and SB 244. Opens work session on SB 243A.

SB 243A – WORK SESSION

160

Rep. Kitts

MOTION:  Moves SB 243A to the floor with a DO PASS recommendation and be placed on the CONSENT CALENDAR.

 

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Close

The motion CARRIES.

165

Chair Close

Closes work session on SB 243A. Opens work session on SB 244.

 

SB 244 – WORK SESSION

170

Rep. Kitts

MOTION:  Moves SB 244 to the floor with a DO PASS recommendation and be placed on the CONSENT CALENDAR.

 

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Close

The motion CARRIES.

180

Chair Close

Closes work session on SB 244. Opens public hearing on SB 154A.

SB 154A – PUBLIC HEARING

193

Megan Palau

Committee Administrator. Summarizes SB 154A.

200

Jeffery Wimmer

Staff, Senator Steve Harper. Testifies in support of SB 154A.

215

Chair Close

Closes public hearing on SB 154A. Opens work session on SB 154A.

SB 154A – WORK SESSION

220

Rep. Kitts

MOTION:  Moves to ADOPT SB 154A-3 amendments dated 5/1/03 (EXHIBIT K).

 

 

VOTE:  7-0

 

Chair Close

Hearing no objection, declares the motion CARRIED.

230

Rep. Kitts

MOTION:  Moves SB 154A to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  7-0

AYE:            In a roll call vote, all members present vote Aye.

 

Chair Close

The motion CARRIES.

REP. KITTS will lead discussion on the floor.

242

Chair Close

Closes work session on SB 154A. Recesses meeting at 10:22 a.m. Reconvenes meeting at 10:32 a.m. Opens public hearing on HB 3491.

HB 3491 – PUBLIC HEARING

250

Megan Palau

Committee Administrator. Summarizes HB 3491.

260

Tim Martinez

Oregon Bankers Association. Submits testimony in support of HB 3491 (EXHIBIT L).

270

Dan Hempy

Executive Vice-President, Pacific Continental Bank; Chairman, Oregon Bankers Association. Testifies in support of HB 3491.

354

Rex Brittle

President, Merchants Bank, Gresham. Testifies in support of HB 3491.

TAPE 110, B

006

Rep. Garrard

Asks about need for bill if credit unions could become federally chartered to avoid taxes.

010

Martinez

Notes that he will answer in his closing testimony.

015

Rep. Kitts

Asks about bank ownership.

016

Hempy

Explains Pacific Continental Bank ownership and operation.

018

Brittle

Explains Merchants Bank ownership and operation.

022

Rep. Schaufler

Asks how credit unions could pay taxes if they are non-profit.

025

Hempy

Explains why they should pay taxes.

045

Rep. Merkley

Asks about field of membership for credit unions.

050

Martinez

Explains field of membership.

055

Rep. Rosenbaum

Asks if any Oregon banks pay corporate minimum tax.

063

Martinez

Explains state corporate taxes in Oregon.

067

Rep. Kitts

Asks if credit unions should be re-classified.

072

Martinez

Explains tax and charters of credit unions.

075

Rep. Gallegos

Asks if other non-profit groups should be taxed.

085

Martinez

Notes that provisions in HB 3491 would address mature financial institutions.

103

Rep. Merkley

Asks what would prevent credit unions from becoming federally chartered rather than state chartered.

105

Martinez

Notes that he will address it in his closing testimony. Introduces Mr. Enger and Ms. Folk.

120

Dallas Enger

President and CEO, Willamette Community Bank, Albany. Testifies in support of HB 3491.

157

Sherry Folk

President and CEO, Bank of Astoria. Testifies in support of HB 3491.

204

Martinez

Offers closing testimony in support of HB 3491.

345

Harold Scoggins

Credit Union Association of Oregon. Summarizes prepared testimony in opposition to HB 3491 (EXHIBIT M).

TAPE 111, B

052

Rick Hein

OSU Federal Credit Union. Summarizes prepared testimony in opposition to HB 3491 (M).

145

Mike Osborne

Executive Vice-President and Chief Financial Officer, First Tech Credit Union. Testifies in opposition to HB 3491.

222

Pam Leavitt

Credit Union Association of Oregon. Submits and summarizes prepared testimony in opposition to HB 3491 (EXHIBIT N).

274

Rep. Kitts

Asks about credit union taxation.

282

Scoggins

Explains provisions regarding credit union taxation.

295

Osborne

Offers further clarification.

300

Rep. Merkley

Asks why consumers would suffer if credit unions became federally chartered.

306

Leavitt

Explains impacts of credit unions becoming federally chartered.

322

Rep. Gallegos

Asks if federal credit unions can take public funds.

324

Scoggins

Explains provisions regarding handling of public funds.

331

Rep. Kitts

Asks what would prevent credit unions from reorganizing to avoid taxation.

345

Scoggins

Explains provisions addressing credit unions and taxation.

362

Rep. Kitts

Asks for further clarification.

368

Osborne

Offers further clarification.

378

Leavitt

Offers further clarification.

400

Floyd Lanter

Administrator, Division of Finance and Corporate Securities, Department of Consumer and Business Services. Submits and summarizes prepared testimony regarding HB 3491 (EXHIBIT O).

The following prepared testimony is submitted for the record without public testimony for HB 3491:

 

John McCulley

Agricultural Cooperative Council of Oregon. Submits prepared testimony in opposition to HB 3491 (EXHIBIT P).

467

Chair Close

Closes public hearing on HB 3491. Adjourns meeting at 10:42 a.m.

 

 

EXHIBIT SUMMARY

 

A – SB 235A, -3 amendment, staff, 2 pp.

B – SB 253A, -2 amendment, staff, 16 pp.

C – SB 200, -1 amendment, staff, 4 pp.

D – SB 234, written testimony, John Shilts, 1 p.

E – SB 80A, written testimony, Dave Fiskum, 1 p.

F – SB 80A, written testimony, Tamara Brickman, 2 pp.

G – SB 514A, written testimony, Carol Rives, 2 pp.

H – SB 159A, written testimony, Floyd Lanter, 4 pp.

I – SB 243A, written testimony, Mike Carrier, 1 p.

J – SB 244, written testimony, Mike Carrier, 1 p.

K – SB 154A, -3 amendment, staff, 1 p.

L – HB 3491, written information, Tim Martinez, 28 pp.

M – HB 3491, written testimony, Harold Scoggins and Rick Hein, 8 pp.

N – HB 3491, written testimony, Pamela Leavitt, 4 pp.

O – HB 3491, written testimony, Floyd Lanter, 2 pp.

P – HB 3491, written testimony, John McCulley, 1 p.