HOUSE COMMITTEE ON TRANSPORTATION

March 05, 2003 Hearing Room 357

8:30 AM Tapes 41 - 42

MEMBERS PRESENT: Rep. Alan Brown, Chair

Rep. Elizabeth Beyer, Vice-Chair

Rep. John Mabrey Vice-Chair

Rep. Jackie Dingfelder

Rep. George Gilman

Rep. Mitch Greenlick

Rep. Cliff Zauner

STAFF PRESENT: Janet Adkins, Administrator

Ryan Sherlock, Assistant

MEASURE/ISSUES HEARD: HB 2222 – Work Session

HB 2540 – Public Hearing

HB 2541 – 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 41, A
003	Chair Brown	Calls meeting to order at 8:35 a.m., and opens a work session on HB 2222.
HB 2222 – WORK SESSION
005	Janet Adkins	Committee Administrator. Offers a description of HB 2222, the -1 amendment (EXHIBIT A) and the hand engrossed version of the bill including the -1 amendment (EXHIBIT B).
020	Chair Brown	MOTION: Moves to ADOPT HB 2222-1 amendments dated 03/04/03.
025		VOTE: 7-0
	Chair Brown	Hearing no objection, declares the motion CARRIED.
030	Rep. Gilman	MOTION: Moves HB 2222 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 Brown	The motion CARRIES.
030	Rep. Greenlick	MOTION: Moves HB 2222 be placed on the CONSENT CALENDAR.
035		VOTE: 7-0
	Chair Brown	Hearing no objection, declares the motion CARRIED.
040	Chair Brown	Closes the work session on HB 2222, and opens a public hearing on HB 2540.
HB 2540 – PUBLIC HEARING
050	Janet Adkins	Committee Administrator. Offers a description of HB 2540.
060	Monty King	Oregon Independent Auto Dealers Association, Executive Director. Offers written testimony (EXHIBIT C) in support of HB 2540.
100	Rep. Greenlick	Clarifies that in the spirit of fairness, Mr. King would be in favor of adding dealers to the requirements placed on the public by HB 2540.
105	King	Addresses the dealer's role in title transfers.
120	Rep. Greenlick	Clarifies the fairness intent of the bill, and that the dealer exemption seems to go against that fairness.
140	King	Explains how the dealer is responsible for previous transactions.
150	Rep. Greenlick	Ask Committee Administrator Adkins to clarify the exemption.
155	Adkins	Explains that as she understands the bill, there is an exemption for the dealers.
165	Rep. Mabrey	Questions the fairness of the bill, when you make those honest citizens pay for the misdeeds of those that are dishonest.
180	King	Observes that no one can be sure how the bill would change the behavior of those dishonest citizens, but comments on how it could change accountability.
210	Chair Brown	Clarifies that titles do not have to be changed as long as the previous owner’s title is current.
215	King	Illustrates the title transfer process and how titles can be transferred without the proper fees being collected by the state.
255	Chair Brown	Restates earlier question.
260	King	Explains that the registration of vehicles is different from keeping a current title.
280	Rep. Dingfelder	Asks whether it is fair for the person who last buys the car to pay for the past indiscretions of those who owned the car before them, and asks about the cost associated with enforcing the proposed law.
290	King	Comments on the fairness of the bill.
320	Rep. Dingfelder	Expresses her belief that it would be unfair to place the burden on the last owner of the car.
345	King	Explains that the vehicle and its proper title registration is the responsibility of the owner, and that in taking ownership they should be accountable for those previous fees.
380	Rep. Greenlick	Comments on the lack of fairness in the bill, and asks who pays the dishonest or the honest.
405	King	Points out his group thinks the honest people already pay, and that the bill would make the dishonest people pay.
TAPE 42, A
025	Rep. Beyer	Expresses her concerns that the bill would create a disincentive to register a car title.
030	Rep. Zauner	Comments on Mr. King’s earlier illustration, and clarifies that it would be the responsibility of the buyer to collect the previously uncollected fees from the seller.
045	King	Further illustrates the title process.
065	Rep. Beyer	Restates her previous question.
070	King	Discusses other means in which the fees could be collected, including requiring license plates.
090	Rep. Beyer	Asks how raising the registration fee would address the problem.
095	King	Comments on the people’s mistrust for increasing the vehicle registration fee.
105	Kelly Taylor	Oregon Department of Transportation, Division of Motor Vehicles (DMV). Offers written testimony (EXHIBIT D) regarding HB 2540.
180	Chair Brown	Clarifies that when a car is bought the title needs to be transferred.
190	Taylor	Summarizes when a title is required to be transferred.
200	Rep. Greenlick	Refers to the fiscal impact statement for HB 2540 (EXHIBIT E), and asks about specific language in the statement.
205	Taylor	Explains that while the DMV is going to change the title backs omitting two of the three transfer entry spots, the public still has the ability to write up a bill of sale which is a legal document of that title transfer.
245	Chair Brown	Asks how the state can correct the title transfer problem.
250	Taylor	Discusses other measures used by states to collect title fees, including the requirement that the plate stay with the seller.
365	Chair Brown	Asks what kinds of problems would occur if the bill of sale were disqualified as a title transfer.
370	Taylor	Discusses the extra costs, and points out due to the increased collection of the title fees those costs would be offset.
280	Rep. Zauner	Asks whether HB 2540 would create better enforcement for insuring vehicles.
285	Taylor	Responds that more title registration would not equate to more insurance coverage, and discusses what insurance information the DMV has on file.
330	Rep. Zauner	Asks whether HB 2540 would help stem the influx of illegal immigrants.
335	Taylor	Explains that there would be no effect on the illegal immigrants in the state.
340	Rep. Greenlick	Asks whether the bill would affect low income citizens than high income citizens.
345	Taylor	Acknowledges that the effect would be disproportionate affect lower income citizens.
360	Chair Brown	Closes the public hearing on HB 2540, and opens a public hearing on HB 2541.
HB 2541 – PUBLIC HEARING
365	Janet Adkins	Committee Administrator. Offers a description of HB 2541.
390	Monty King	Oregon Independent Auto Dealers Association, Executive Director. Offers written testimony (EXHIBIT F) in support of HB 2541.
TAPE 41, B
	Chair Brown	Clarifies that HB 2541 proposes a bumper-sticker like object in the license plate area of the car.
	King	Acknowledges, and discusses what form the temporary plate could come in.
035	Chris Davis	Aumsville, Oregon. Offers testimony in support of HB 2541, including references to his experiences with similar designs in Arizona.
	Chair Brown	Asks about the proposed advertising on these temporary permits.
	King	Discusses the advertising and how it may look.
070	Chair Brown	Comments on his experience with car dealers who make sure that any car they come into contact with has their license plate cover.
075	King	Comments on his similar experience.
095	Rep. Zauner	Asks what the temporary plates in Arizona look like.
100	Davis	Explains that the plates in Arizona are cardboard with a plastic film over the writing making them difficult to alter.
105	Rep. Beyer	Questions the consistency of those temporary plates.
110	Davis	Explains that the plates are consistent because they are provided by the Arizona DMV.
125	Rep. Beyer	Ask if there would be an economic impact to the DMV to redesign their temporary plates, and who would pay for these costs.
130	Davis	Explains how the DMV would charge the dealers for the plates.
135	Chair Brown	Points out that the dealer will pay for the redesigned temporary plate if that meant making a sale on a $40,000 dollar vehicle.
140	Kelly Taylor	Oregon Department of Transportation, Division of Motor Vehicles. Offers testimony regarding HB 2541. Expresses concerns for the consistency of the temporary plates, theft of plates displayed on the outside of the vehicle, and the costs involved in implementing the proposal.
190	Chair Brown	Clarifies that currently there is no charge for temporary plates.
195	Taylor	Acknowledges that there currently is no cost for temporary plates.
200	Curt Curtis	Oregon State Police, Sergeant. Offers testimony regarding HB 2541, including his concern for the lack of consistency regarding the advertising, and having the temporary permit in the license plate area of the vehicle.
240	Rep. Zauner	Asks whether the permit would be more visible located in the back window, or in the license plate area.
245	Curtis	Comments on the visibility of the temporary plate in various locations.
260	Rep. Zauner	Points out the visibility created by having the headlights fall on the license plate area, and questions whether the temporary plates in the window are any more visible.
265	Curtis	Agrees that the license plate area is more visible, but points out that visibility is reliant on the object in the area having some form of reflector.
275	Rep. Zauner	Asks whether visibility would be improved if the temporary plates were moved to the license plate area and had reflective material on them.
277	Curtis	Provides that this could be more visible, but that he would have to see a prototype to make a judgment.
280	Taylor	Comments that temporary plates are supposed to be temporary and the cost of some of the proposals would be prohibitive.
285	Rep. Zauner	Asks if a bumper sticker would cost too much.
290	Taylor	Points out a bumper sticker would be difficult to remove.
300	Rep. Mabrey	Explains that he envisions the proposed temporary plates being an easy insert rather than a bumper sticker.
310	Taylor	Explains how long the temporary plates are issued for, and discusses the issue of placement.
320	Rep. Mabrey	Asks if by that logic, the license plate should also be in the vehicle.
325	Taylor	Acknowledges that license plates would be more secure inside the vehicle.
335	Rep. Greenlick	Asks if there are any measures that keep a dealer from placing an advertisement inside the license plate area.
340	Curtis	Points out that some dealers currently place advertisements in that location.
350	Chair Brown	Closes the public hearing on HB 2541, and adjourns the meeting.
The following exhibit is submitted for the record:
	Staff	Submits Oregon Vehicle Code (EXHIBIT G) regarding HB 2540.

EXHIBIT SUMMARY

A – HB 2222, -1 amendment, Staff, 2 pp.

B – HB 2222, hand engrossed bill, Staff, 3 pp.

C – HB 2540, written testimony, Monty King, 1 p.

D – HB 2540, written testimony, Kelly Taylor, 2 pp.

E – HB 2540, fiscal impact statement, Staff, 2 pp.

F – HB 2541, written testimony, Monty King, 1 pp.

G – HB 2540, Oregon Vehicle Code, Staff, 2 pp.