HOUSE COMMITTEE ON

BUSINESS, LABOR, AND CONSUMER AFFAIRS

 

 

May 26, 2005 Hearing Room C

1:30 P.M. Tapes 146 - 147

Corrected 10/03/05

MEMBERS PRESENT:            Rep. Alan Brown, Chair

Rep. Sal Esquivel, Vice-Chair

Rep. Mike Schaufler, Vice-Chair

Rep. Paul Holvey

Rep. Derrick Kitts

Rep. Chip Shields

 

MEMBER EXCUSED:            Rep. George Gilman

 

STAFF PRESENT:                  Janet Adkins, Committee Administrator

Linda K. Gatto, Committee Assistant

 

MEASURES/ISSUES HEARD:        

                                                Drafting Request – Work Session

                                                SB 120 – Public Hearing and Work Session

                                                SB 121 – Public Hearing and Work Session

                                                SB 501A – Public Hearing

                                                SB 462 – Public Hearing and Work Session

                                                SB 573A – 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 146, A

004

Chair Brown

Calls the meeting to order at 1:34 p.m. and opens a work session for the purpose of consideration of measure drafting request.

DRAFTING REQUEST - WORK SESSION

009

Rep. Brown

MOTION:  Moves the committee request permission to request a LC draft to create the Public Commission on the Oregon Legislature (EXHIBIT A).

 

 

VOTE:  6-0-1

EXCUSED:  1 - Gilman

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

014

Chair Brown

Closes the work session on the drafting request and opens a public hearing on SB 120.

SB 120 – PUBLIC HEARING

017

Janet Adkins

Committee Administrator. Reviews the provisions of SB 120.

035

Floyd Lanter

Division of Finance and Corporate Securities, Department of Consumer and Business Services. Submits and summarizes prepared testimony in support of SB 120 (EXHIBIT B). Notes the matrix on page five that outlines the changes in the bill and the programs affected.

090

Rep. Holvey

Asks who enforces these organizations now.

100

Lanter

Answers collection agencies. States that the department registers the organizations and there is some authority with respect to the Attorney General. This bill seeks to fill the gaps and administer the programs more effectively.

114

Jim Markee

Oregon Collectors Association. Testifies in support of SB 120. Explains that under current law the department does not have the authority to do an investigation on an unlicensed collection agency.

139

John Brenneman

Oregon Funeral Directors. States that the Oregon Funeral Directors run a pre-need master trust. Supports SB 120.

153

Chair Brown

Closes the public hearing on SB 120 and opens the work session on   SB 120.

SB 120 – WORK SESSION

166

Rep. Kitts

MOTION:  Moves SB 120 to the floor with a DO PASS recommendation and be placed on the CONSENT CALENDAR.

 

 

VOTE:  6-0-1

AYE:               6 - Esquivel, Holvey, Kitts, Schaufler, Shields, Brown

EXCUSED:     1 - Gilman

176

Chair Brown

The motion CARRIES.

190

Chair Brown

Closes the work session on SB 120 and opens the public hearing on   SB 121.

SB 121 – PUBLIC HEARING

193

Janet Adkins

Committee Administrator. Reviews the provisions of SB 121.

205

Floyd Lanter

Division of Finance and Corporate Securities, Department of Consumer and Business Services. Submits and summarizes prepared testimony in support of SB 121 (EXHIBIT C).

267

Chair Brown

Closes the public hearing on SB 121 and opens the work session on    SB 121.

SB 121 – WORK SESSION

270

Rep. Kitts

MOTION:  Moves SB 121 to the floor with a DO PASS recommendation and be placed on the CONSENT CALENDAR.

 

Chair Brown

VOTE:  6-0-1

AYE:               6 - Esquivel, Holvey, Kitts, Schaufler, Shields, Brown

EXCUSED:     1 - Gilman

279

Chair Brown

The motion CARRIES.

291

Chair Brown

Closes the work session on SB 121 and opens the public hearing on        SB 501A.

 

SB 501A – PUBLIC HEARING

292

Janet Adkins

Committee Administrator. Reviews the provisions of SB 501A.

324

Carl Lundberg

Deputy Administrator Insurance Division, Department of Consumer and Business Services (DCBS). Testifies in support of SB 501A as it will enable the collection of information in a useable fashion for presentation to the public.

334

Lundberg

Notes the subsequent referral to the Budget committee and states that a fiscal is not anticipated.

361

Megan Sweeney

Executive Directo, Service Employees International Union AFL-CIO, CLC (SEIU). Submits and reads prepared testimony in support of      SB 501A (EXHIBIT D).

391

Rep. Kitts

Confirms there is no cost to the state. Asks if insurance companies currently provide this information.

424

Sweeney

Responds that some is provided but it varies based on carrier. States the desire is for a one- to two-page summary document that is uniform across carriers.

441

Rep. Kitts

Asks if the insurance companies provide this information electronically.

443

Sweeney

Responds that some information is available outside the Oregon Insurance website on the National Association of Insurance Commissioners (NAIC) website. Notes the limitation on the information.

TAPE 147, A

007

Rep. Kitts

Summarizes the concern being expressed is the rising costs of health care. States that by mandating an insurance company to provide this information may have an adverse effect and raise costs further.

018

Sweeney

Responds that the carriers already have the information collected but it is a matter of accessibility.

027

Rep. Kitts

States that it will be an incurred cost and questions whether the benefits out weigh the costs.

036

Lori Long

Heath Net Health Plan of Oregon. Testifies in support of SB 501A. States they worked with Regence and other domestic health care carriers on a compromise with SEIU. Believes there are terms that are easy to report and beneficial to the end user.

054

Pam Lolly

Regence BC/BS. States support for SB 501A and expresses appreciation for the ability to work with Ms. Sweeney.

064

Rep. Kitts

Asks will there be a cost to implement this mandate.

071

Lolly

Answers yes, but it will be minimal, maybe an extra hour of somebody’s time.

073

John Powell

Regence BC/BS. States that there is no fiscal to DCBS. Requests that the referral to Budget be rescinded.

 

Prepared testimony submitted for the record by Shannon Callahan, Oregon State Public Interest Research Group (EXHIBIT J)

087

Chair Brown

Closes the public hearing on SB 501A and opens the public hearing on SB 462.

SB 462 – PUBLIC HEARING

092

Janet Adkins

Committee Administrator. Reviews the provisions of SB 462, submits reference information on the statute repealed by SB 462            (EXHIBIT E).

111

Sarah Reeder

Oregon Dental Service (ODS). Submits and summarizes prepared testimony from James M. Kennedy in support of SB 462        (EXHIBIT F).

137

Jon Jurevic

Chief Financial Officer, ODS, Testifies that this bill applies the calculation consistently between insurance subsidiaries and non-insurance subsidiaries and clarifies how the calculations perform.

162

Nancy Boysen

Manager Consumer Services and Market Regulation, Insurance Division Department of Consumer and Business Services. Submits and summarizes prepared testimony in support of SB 462 (EXHIBIT G).

209

Chair Brown

Inquires about the difference between a health care service contractor and a health care insurance provider.

209

Boysen

Responds that a health care service contractor is a non-profit corporation sponsored by doctors or hospitals and a commercial insurer is a for profit corporation.

218

Chair Brown

Closes the public hearing on SB 462 and opens the work session on    SB 462.

SB 462 – WORK SESSION

220

Rep. Schaufler

MOTION:  Moves SB 462 to the floor with a DO PASS recommendation.

223

 

VOTE:  5-0-2

AYE:               5 - Esquivel, Holvey, Schaufler, Shields, Brown

EXCUSED:     2 - Gilman, Kitts

 

242

Chair Brown

The motion CARRIES.

REP. SHIELDS will lead discussion on the floor.

243

Chair Brown

Closes the work session on SB 462 and opens the public hearing on   SB 573A.

SB 573A – PUBLIC HEARING

243

Janet Adkins

Committee Administrator. Reviews the provisions of SB 573A and the    -4 amendments (EXHIBIT H).

277

Carl Lundberg

Deputy Administrator Insurance Division, Department of Consumer and Business Services (DCBS). Submits prepared testimony in support of SB 573A (EXHIBIT I) and the -4 amendments. States the -4 amendments change consumer to customer because you can not rate a consumer when there is no business relationship.

319

Rep. Schaufler

Asks if there is data showing the credit/risk factor of divorce comparing when divorce were less common to the rate of divorce today.

258

Lundberg

Responds that he has not seen any data.

346

Rep. Holvey

Asks why replacement of motor vehicle or residential home was removed.

380

Lundberg

Responds this is a best practice issue and there was concern about repercussions through underwriting practices and they could not demonstrate enough complaints to merit changing the law.

401

Rep. Esquivel

Asks where the idea of credit rating come from.

411

Lundberg

Responds it was used in the lending industry and was picked up as a predictive tool by the insurance industry.

441

Jon Powell

Representing State Farm Insurance and Liberty Northwest/North Pacific. Supports the bill with the -4 amendments. Summarizes that the insurance industry as a whole supports the use of credit as an element of rating insurance.

TAPE 146, B

044

Rep. Schaufler

Provides that a person who pays cash for everything or a spouse who depends on the other spouse to handle finances as examples of reasons why a person may not have a credit history.

056

Powell

Responds that these issues were addressed in the bill last session.

083

Chair Brown

Closes the public hearing on SB 573A and opens the work session on SB 573A.

SB 573A – WORK SESSION

084

Sen. Schaufler

MOTION:  Moves to ADOPT SB 573-A4 amendments dated 5/26/05.

089

 

VOTE:  5-0-2

EXCUSED:  2 - Gilman, Kitts

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

099

Rep. Schaufler

MOTION:  Moves SB 573A to the floor with a DO PASS AS AMENDED recommendation and the SUBSEQUENT REFERRAL to the Committee on Ways and Means BE RESCINDED.

100

 

VOTE:  5-0-2

AYE:               5 - Esquivel, Holvey, Schaufler, Shields, Brown

EXCUSED:     2 - Gilman, Kitts

106

Chair Brown

The motion CARRIES.

REP. SHIELDS will lead discussion on the floor.

108

Chair Brown

Closes the work session on SB 573A and adjourns the meeting at 2:37 p.m.

 

 

EXHIBIT SUMMARY

 

  1. Drafting Request, Public Commission on the Oregon Legislature, Rep. Alan Brown, 2 pp
  2. SB 120, prepared testimony, Floyd Lanter, 5 pp
  3. SB 121, prepared testimony, Floyd Lanter, 3 pp
  4. SB 501, prepared testimony, Megan Sweeney, 2 pp
  5. SB 462, reference information, staff, 1 p
  6. SB 462, prepared testimony, Sarah Reeder, 2 pp
  7. SB 462, prepared testimony, Nancy Boysen, 2 pp
  8. SB 573, -4 amendments, staff, 1 p
  9. SB 573, prepared testimony, Carl Lundberg, 2 pp

      J.  SB 501, prepared testimony, Shannon Callahan, 1 p