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