HOUSE COMMITTEE ON

BUSINESS, LABOR, AND CONSUMER AFFAIRS

 

 

April 20, 2005 Hearing Room B

8:30 A.M. Tapes  100 - 101

Corrected 09/29/05

MEMBERS PRESENT:            Rep. Alan Brown, Chair

Rep. Sal Esquivel, Vice-Chair

Rep. Mike Schaufler, Vice-Chair

Rep. Paul Holvey

Rep. George Gilman

Rep. Derrick Kitts

Rep. Chip Shields

 

STAFF PRESENT:                  Janet Adkins, Committee Administrator

Katie Howard, Committee Assistant

 

MEASURES/ISSUES HEARD:        

HB 2180 – Work Session

HB 2181 – Work Session

HB 2717 – Work Session

HB 2200 – Public Hearing

HB 3257 – Public Hearing

                                                HB 3091 – Public Hearing and Work Session

                                                HB 3459 – Public Hearing and Work Session

                                                HB 2389 – Public Hearing and 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 100, A

003

Chair Brown

Calls the meeting to order at 8:35 a.m.  Opens the work session on HB 2180.

HB 2180 – WORK SESSION

006

Janet Adkins

Committee Administrator.  Explains HB 2180. 

018

Mark Long

Building Codes Division.  Thanks the staff for their hard work.

023

Rep. Holvey

States that HB 2180 is not controversial.

027

Rep. Shields

MOTION:  Moves to ADOPT HB 2180-1 amendments dated 3/17/05.

028

 

VOTE:  6-0-1

EXCUSED:  1 - Kitts

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

030

Rep. Shields

MOTION:  Moves HB 2180 with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means by prior reference.

034

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

038

Chair Brown

Closes the work session on HB 2180 and opens the work session on HB 2181.

HB 2181 – WORK SESSION

042

Janet Adkins

Committee Administrator.  Explains HB 2181 and the -2 amendments (EXHIBIT A)

050

Mark Long

Administrator, Building Codes Division.  Explains the -2 amendments (EXHIBIT A).  Says that HB 2181 and the -2 amendments are the product of a consensus process.  Notes that HB 2181 is part of the Governor’s recommended budget.

062

Rep. Esquivel

Asks if HB 2181 is the one that allows that electrician to design part of an electrical plan.

064

Long

Says that HB 3092 deals with plumbing plans.

068

Rep. Holvey

States that HB 2181 is a streamlining bill for the licensee process.

076

Rep. Holvey

MOTION:  Moves to ADOPT HB  2181-2 amendments dated 4/19/05.

078

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

080

Rep. Holvey

MOTION:  Moves HB  2181 with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means by prior reference.

084

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

087

Chair Brown

Closes the work session on HB 2181 and opens the work session on HB 2717

HB 2717 – WORK SESSION

090

Janet Adkins

Committee Administrator.  Explains HB 2717.

105

Rep. Esquivel

MOTION:  Moves HB 2717 to the floor with a DO PASS AS AMENDED recommendation and BE REFERRED to the committee on Ways and Means.

(NOTE: For the vote on the adoption of the -4 amendments, please see the work session on HB 2717 in the March 30, 2005 tape log.)

115

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

121

Chair Brown

Closes the work session on HB 2717 and opens the public hearing on HB 2200.

HB 2200 – PUBLIC HEARING

123

Janet Adkins

Committee Administrator.  Explains HB 2200 and the -2 amendments (EXHIBIT B)

144

Craig Smith

Construction Contractors Board (CCB).  Submits written testimony in support of HB 2200 (EXHIBIT C).  Talks about how an individual will have to solve the problems of their past businesses before forming a new business.  Talks about small policy changes in the board.  States that they will adopt rules for multiple year licenses. 

240

Smith

States that they will administer the national test for home inspectors.  Explains the -2 amendments and says that the -2 amendments change the name of the fee from licensing fee to application fee.     

262

Rep. Schaufler

Asks if HB 2200 changes the fee structure.

263

Smith

Says that it does not change the fee structure.

266

Chair Brown

Asks if the industry was involved with the changes and provisions.

268

Smith

States that the industry has not been as involved as the CCB would have liked.  States that the exemption for developers needs to be changed in HB 2200. 

300

Rep. Esquivel

Asks what types of developers are being discussed as candidates for the exemption.

308

Smith

Responds that dirt developers who divide the lots and build the streets do not have to have a license as long as they hire out the work to those that have a license. 

337

William J Boyd

States that he is only present to answer questions.

348

Tom Gallagher

Urban Developers Coalition.  States that they are neutral on HB 2200.  Wants to make amendments to HB 2200.  Indicates that they want to add a section on page two on the end of section four that exists in ORS 701.075, which exempts developers form the CCB testing process. 

390

Rep. Schaufler

Asks whether they wanted to add the exemption or take it out.

396

Gallagher

References the -2 amendments and talks about the disconnect between the exemption for developers and the statutes.

420

Rep. Schaufler

Asks if the fixes can be made to HB 2200.

425

Smith

Affirms that the changes will be made.

TAPE 101, A

001

Rep. Holvey

Asks if there are any ongoing requirements for continuing education.

005

Smith

States that a continuing education requirement exists for certified home inspectors only.

022

Rep. Holvey

Speaks in support of creating a continuing education for contractors.

028

Chair Brown

States that they will bring the bill back to committee.

034

Jessica Adamson

Associated General Contractors.  Appreciates the work that the CCB has done with them.  Speaks in support of HB 2200.

043

Chair Brown

Closes the public hearing on HB 2200 and opens the public hearing on HB 3257

HB 3257 – PUBLIC HEARING

046

Janet Adkins

Committee Administrator.  Explains HB 3257.  Submits the -1 amendments (EXHIBIT D)

073

Pat Egan

Port of Portland.  Submits written testimony in support of HB 3257 (EXHIBIT E).  Talks about how shippers would be allowed to serve on the board of maritime pilots as public members.  Explains the -1 amendments and says that they are making headway with the discussion.  States that the Port of Portland would be happy to work to refine HB 3257.  Wants ports to be represented on the Board of Maritime Pilots (BMP).

116

Chair Brown

Asks who the BMP represents.

120

Egan

Says that there are three separate license groups that the board represents.

124

Sam Ruda

Port Director, Port of Portland.  Talks about the makeup of the BMP.  Says that the river system is a network and the Port of Portland offers safe passage.  Believes that having the Port of Portland represented on the BMP is very important. 

160

Egan

Wants pilots to have work and for the work to continue. 

169

Rep. Schaufler

Asks about the efforts are going to form jobs for Port of Portland employees. 

172

Egan

Mentions the Columbia Containers Service Committee.  Says that they have been very active in pursuing shippers around the globe.

184

Rep. Esquivel

Asks why ports were excluded from the BMP.

188

Egan

Says that the intent of the language was to exclude members who have a fiscal interest in the fees and licenses set by the BMP.  Argues that people who sit on the board already have a fiscal interest in the job of the BMP. 

205

Rep. Holvey

Asks how people become a member of the Port of Portland

209

Egan

Says that the commission members are appointed by the governor and is not certain about other commission members of other boards. 

220

Rep. Holvey

Asks about whether the shippers and the pilot groups are represented on the Port of Portland’s commission.

225

Ruda

Says that one of the commissioners is a wheat farmer and they do not have to have a cargo interest in the Port of Portland. 

235

Adkins

Clarifies the term shipper and the three groups that make up the BMP.

249

Egan

Says that they are trying to take away the preclusion of a shipper or a port employee from serving on the BMP. 

266

Chair Brown

Asks what the mix of the BMP is.

270

Egan

Discusses the current board members of BMP. 

279

Ruda

Mentions the additional members of the BMP. 

289

Chair Brown

Asks if there is any representation of Oregon industries.

291

Egan

States that steamboat operators are on the BMP, but no one else with a financial interest in the shipping prices. 

296

Rep. Schaufler

Asks if a person from the grain industry could be on the BMP if HB 3257 passes.

298

Egan

States that the person could be on the BMP.

304

Dave Fiskum

Columbia River Pilots.  Takes a neutral position on HB 3257.  States that a tentative agreement has been reached on HB 3257.

333

Steve Brown

Captain, Columbia River Pilots.  Takes a neutral position on HB 3257.  Talks about the navigation of the Columbia river and the ports on the coast.  Notes the differences between ocean pilots and river pilots.  Says that pilotage is regulated by the BMP.  Believes that the delicate balance of the board should not be upset and says that a compromise has been reached by substituting one of the industry members. 

404

Fiskum

Asks that one of the current industry seats be reserved for the ports and then one of the public seats be reserved for someone from the agricultural industry. 

TAPE 100, B

001

Fiskum

Adds that he will be seeking amendments.

025

Tom Gallagher

Columbia Bar Pilots.  Takes a neutrals stance on HB 3257.  Talks about the makeup of the BMP and says that the three public members usually make the decisions.  States that changing the membership of the board could have a real impact on day-to-day life.  Believes that current law does not preclude an agricultural representative from currently serving on BMP.  Asserts that they do not oppose a port member being on BMP’s management side. 

075

Gallagher

Believes that the board is fundamentally flawed because there are six vested members on the BMP.

085

Rep. Schaufler

Asks about the liability insurance on the ships that come up the river.

089

Gallagher

Explains the costs to the shippers to come up the Columbia River.  Says that it costs more to move a ship from Astoria to Portland than on almost any other pilotage ground in the United States.  States that the river pilots are paid the least of any other pilotage group in the state.

105

Rep. Schaufler

Asks if someone with a vested interest could tip the scale one way or another.

107

Gallagher

Believes that every member of the board would act in the best interest of Oregon.  States that special interest groups would be suspicious of the BMP and perception is important. 

113

Rep. Kitts

Asks if the time accounts for the cost of shipping.

125

Gallagher

Says that is one of the elements of the cost.  States that the trip can last over eight hours.  Mentions the bars in the Columbia River.  Believes that there are other costs associated with piloting a ship from Astoria to Portland. 

140

Chair Brown

Closes the public hearing on HB 3257.  Opens the public hearing on HB 3091.  Mentions that the committee will be forming a workgroup on HB 3257.

HB 3091 – PUBLIC HEARING

148

Janet Adkins

Committee Administrator.  Explains HB 3091. 

176

Tim Martinez

Oregon Bankers Association.  Says that HB 3091 would allow banks to go into the title insurance business.  Believes that the Gramm-Leach-Wliley Act (1998) tore down the boundaries between insurance and banks.  Notes that HB 3091 allows banks to get into one area of insurance which they are not currently allowed to perform. 

225

Martinez

Says that HB 3091 is not “a grab” by the bankers to take over the insurance industry.  States that consumer protections are in place for title insurance customers on the federal level. 

243

Mike Paul

Chair, Oregon Bankers Association.  Speaks in support of HB 3091.  Notes that many national banks can already offer title insurance and HB 3091 would allow community banks to offer title insurance as well.  Says that the financial lines have been blurred in the financial industry. 

305

Rep. Holvey

Asks how HB 3091 will affect the current title insurance industry and if the bank will subsidize the title insurance industry with the bank’s fees.

319

Paul

Says that there is tying legislation that prevents a bank from subsidizing a title company and it is a reportable offense.  States that there would not be a subsidy by banks.  Notes that they would only offer a service if there would be a profit in it.

336

Martinez

Mentions Umpqua Bank purchased a security firm several years ago and asks Mr. Paul if it is self sufficient.

341

Paul

States that the brokerage firm is not as profitable as it could be.

346

Adkins

Asks about the retaining of the prohibition on a banking institution actually transacting title insurance.

352

Martinez

Says that the title insurance would not be in the bank but in the holding company.

357

Chair Brown

Asks if the title insurance industry’s competition is based on services rather than on fees.

360

Martinez

Believes that title insurance, especially in smaller communities, is based both on service and fees. 

372

Rep. Esquivel

Says that the title insurance industry is a highly regulated industry.  Talks about how Oregon has a higher net profit than California because Oregon’s title insurance industry is very highly regulated.  Shares concern about steering.

407

Martinez

Talks about how it is called anti-tying in the banking industry.  States the federal regulators look for anti-tying.

TAPE 101, B

004

Paul

Mentions Sarbanes-Oxley Act and how the compliance committees will review banks closely.

014

Rep. Esquivel

Asks if banks will have to disclose that they will make a monetary gain if the customer uses their title insurance company.

015

Paul

Affirms that the bank will have to disclose the monetary gain.

020

Jack Monroe

Oregon Land Title Association.  Takes a neutral position on HB 3091.  Says that getting into the title insurance business is not easy. 

047

Rep. Esquivel

Asks if a bank would have to purchase a title insurance company.

051

Monroe

Believes that the bank would most likely have to purchase a title insurance company.

061

Ed Simpsons

Department of Consumer and Business Services (DCBS).  States that DCBS is neutral on HB 3091.

064

Chair Brown

Closes the public hearing on HB 3091 and opens the work session on HB 3091.

HB 3091 – WORK SESSION

067

Rep. Kitts

MOTION:  Moves HB 3091 to the floor with a DO PASS recommendation.

070

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

REP. ESQUIVEL will lead discussion on the floor.

077

Chair Brown

Closes the work session on HB 3091 and opens the public hearing on HB 3459.

HB 3459 – PUBLIC HEARING

080

Janet Adkins

Committee Administrator.  Explains HB 3459 and the -1 amendments (EXHIBIT F)

093

Tim Martinez

Halton Company.  Talks about the history of the issues dealt with in HB 3459.  Says that the change was not found until after the legislation had passed.  Believes that HB 3459 will put back into statute the laws that were there prior to 2003.

133

Jeff Simonson

President, Oregon Machinery Dealers Association.  Speaks in support of HB 3459.  States that the amendments will protect their business.

144

Darrell Fuller

Oregon Auto Dealers Association.  Offers to answer question about the Franchise Law. 

157

Chair Brown

Asks if the relationship addressed in HB 3459 is between the dealer and the manufacturer.

158

Fuller

Affirms that is the relationship.

159

Rep. Schaufler

Asks if Monaco Dealers is leaving Oregon.

160

Fuller

States that he has not heard.

162

Rep. Schaufler

Hopes that Mr. Simonson’s business does well.

165

Rep. Holvey

Says that Monaco Coach was moving from Bend to Coburg.  Asks whether the motor vehicle definition covers agricultural vehicles. 

174

Fuller

States that some of the larger vehicles may not be covered under the definition.

182

Chair Brown

Closes the public hearing on HB 3459 and opens the work session on HB 3459.

HB 3459 – WORK SESSION

185

Rep. Kitts

MOTION:  Moves to ADOPT HB 3459-1 amendments dated 04/18/05.

187

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

200

Rep. Kitts

MOTION:  Moves HB  3459 to the floor with a DO PASS AS AMENDED recommendation.

203

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

209

Rep. Kitts

MOTION:  Moves HB 3459 be placed on the CONSENT CALENDAR.

211

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

215

Chair Brown

Closes the work session on HB 3459 and opens the public hearing on HB 2389.

HB 2389 – PUBLIC HEARING

220

Janet Adkins

Committee Administrator.  Explains HB 2389 and submits the -1 amendments (EXHIBIT G).

231

Mark Long

Administrator, Building Codes Division.  Speaks in support of HB 2389.  Says that HB 2389 will clarify issues that came up after SB 468 (2003) passed into law.  Talks about the timing issue and wants to put the language in the bill.

257

Rep. Schaufler

Asks if any industry groups would object to the -1 amendments

263

Long

Says that he does not anticipate any opposition to the -1 amendments.

274

Chair Brown

Closes the public hearing on HB 2389 and opens the work session on HB 2389.

HB 2389 – WORK SESSION

275

Rep. Kitts

MOTION:  Moves to ADOPT HB 2389-1 amendments dated 4/14/05.

277

 

VOTE:  7-0-0

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

279

Rep. Kitts

MOTION:  Moves HB 2389 to the floor with a DO PASS AS AMENDED recommendation.

283

 

VOTE:  7-0-0

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

 

Chair Brown

The motion CARRIES.

REP. KITTS will lead discussion on the floor.

290

Chair Brown

Closes the work session on HB 2389.  Adjourns the meeting at 10:24 a.m.

 

 

EXHIBIT SUMMARY

 

  1. HB 2181, -2 amendments, staff, 50 pp
  2. HB 2200, -2 amendments, staff, 27 pp
  3. HB 2200, -2 written testimony, Craig Smith, 87 pp
  4. HB 3257, -2 amendments, staff, 2 pp
  5. HB 3257, written testimony, Pat Egan, 2 pp
  6. HB 3459, - 1 amendments, staff, 4 pp
  7. HB 2389, -1 amendments, staff, 16 pp