SENATE COMMITTEE ON BUSINESS AND ECONOMIC DEVELOPMENT

 

 

February 3, 2005                                                                                                     Hearing Room B

1:00 P.M.                                                                                                                     Tapes  16 - 17

 

MEMBERS PRESENT:         Sen. Rick Metsger, Chair

Sen. Bruce Starr, Vice-Chair

Sen. Jason Atkinson

Sen. Ryan Deckert

Sen. Laurie Monnes Anderson

 

 

STAFF PRESENT:                 Theresa Van Winkle, Committee Administrator

James Goulding, Committee Assistant

 

 

MEASURES/ISSUES HEARD:        

                                                SB 120 – Public Hearing

                                                SB 121 – Public Hearing and Work Session

                                                SB 83 – Public Hearing and Work Session

                                                SB 86 – 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 16, A

003

Chair Metsger

Calls the meeting to order at 1:05 p.m.  Notes that the proposed amendments to SB 55 are not yet ready.  States they will not be able to have a public hearing on SB 55 today. Opens public hearing on SB 120.

SB 120 – PUBLIC HEARING

010

Theresa Van Winkle

Committee Administrator.  Provides a brief overview of SB 120.

025

David Tatman

Deputy Administrator, Department of Consumer and Business Services (DCBS).  Notes he is filling in for Administrator Floyd Lanter, who was unable to appear before the committee today.  Presents written testimony of Floyd Lanter in favor of SB 120 (EXHIBIT A).

050

Tatman

Expands upon the written testimony, clarifying the different programs and the need for uniformity.

080

Tatman

Discusses the need for additional ability to enforce their laws.

095

Sen. Atkinson

Refers to Mr. Tatman’s testimony about a case in Eugene where they needed to issue a cease and desist order.  Wonders that if they didn’t have the power to issue one, how were they able to resolve the problem.

100

Tatman

Replies they took action and were able to reach a settlement.

105

Sen. Atkinson

Notes that was only one instance and wonders how often cases of this type occur.  Wonders what the problem is that is being fixed.

107

Tatman

Reiterates it gives them the authority to act and solve these problems.

110

Sen. Atkinson

Asks if this will lead to requests for more funds so they can monitor companies.

115

Tatman

Responds they will not be requesting that.

117

Sen. Atkinson

Wants greater clarification on the purpose for granting them more regulatory power.  Feels government is being granted more tools to work with than small businesses.

120

Tatman

States they need to be able to take action to fulfill their mandate. Feels a cease and desist order is more effective than a court procedure.

130

Sen. B. Starr

Observes that before taking action against unlicensed businesses, that they should be trying to get them licensed first.

140

Tatman

Concurs with his observation.  Points out the scenarios in which the department would need this authority.  Feels if they had the needed authority they could enforce laws more effectively.

160

Chair Metsger

Clarifies the situation and the current need for court action.  Feels they are making sure businesses are competing fairly and following the rules.

175

Sen. Monnes Anderson

Asks if there is a fiscal impact on this.

180

Tatman

Doesn’t believe there will be an impact.  Shares his belief that they already have the staff and resources to handle it.

185

Sen. Deckert

Inquires on the width of this problem and how often it occurs.

190

Tatman

Replies it depends on the specific business area.  Relates it is fairly common in pawnbroker industry. 

200

Sen. Deckert

Asks about how many cases it is.

205

Tatman

Replies he could provide him with figures at another time.

210

Amy Lowry

Funeral home operator.  Offers her support of SB 120.  Feels it is a good thing for the consumer after hearing about the cases in Eugene.  Voices support for consumer protection and the bill. 

245

Floyd Lanter

Administrator, Division of Finance and Corporate Securities.  Begins testifying in support of SB 120.

290

Chair Metsger

Wonders how often these problems occur.

300

Lanter

Provides examples for occasions where businesses operate without licenses and they do not have authority to pursue them when consumers complain.  Outlines examples where they write letters to unlicensed businesses and receive no responses.  Discusses problems with unlicensed pawn brokers, and details investigations. 

360

Sen. B. Starr

Inquires why it is the responsibility of DCBS to go and use authority to get businesses licensed.

370

Lanter

Outlines they have no authority.

380

Sen. B. Starr

Relates his experiences as construction contractor and the authority of the board to go after unlicensed contractors.

390

Lanter

Presumes they have the authority to recover the costs of their investigations.

400

Sen. B. Starr

Hopes that before they move forward they have more data on how often violations occur and their current enforcement abilities.

415

Sen. Atkinson

Voices his support for the funeral director portion of the bill, but feels the bill currently covers too many areas for him to be comfortable with it.

TAPE 17, A

010

Chair Metsger

Feels they should hold onto this bill and await further testimony.  Closes public hearing on SB 120, opens public hearing on SB 121.

SB 121 – PUBLIC HEARING

025

Lanter

Reads written testimony in favor of SB 121 (EXHIBIT B). 

070

Chair Metsger

Asks for a specific example where their department has lacked the ability to issue a cease and desist order.

075

Lanter

Offers they spent a lot of time pursuing a case involving the purchase of a pizza oven during the previous year.   Discusses franchise issues that are pending.

095

Sen. Atkinson

Wonders if all the complaints are from out-of-state franchises.

100

Lanter

Offers their focus is on Oregonians investing in franchises, not the out-of-state franchises themselves.

105

Sen. Deckert

Asks for clarification of the issue with the oven purchase.

110

Lanter

States it involved the purchase of a pizza oven being sold by a franchise operation in California.  Discusses the complaint and investigation that resulted.  Enters into more detail on the issue.

125

Sen. Deckert

Inquires if this is a typical case.

130

Lanter

Replies the problem resulted in improper disclosure by the seller.

132

Sen. Deckert

Clarifies Mr. Lanter’s comments on the intent of this legislation.

140

Chair Metsger

Asks if Mr. Tatman has additional comments

145

David Tatman

Offers greater details on the franchise owner paid a specific fee to purchase an oven that had certain capabilities.  Relays that the oven did not operate as promised and that it was very difficult to remedy the situation.

150

Sen. Deckert

Wonders who judges these cases.

155

Tatman

Notes they act on behalf of Oregonians with complaints and then act as necessary.

170

Chair Metsger

Closes public hearing on SB 121, opens work session on SB 121.

SB 121 – WORK SESSION

190

Sen. B. Starr

MOTION:  Moves SB 121 to the floor with a DO PASS recommendation.

 

 

VOTE:  5-0-0

193

Chair Metsger

Hearing no objection, declares the motion CARRIED.

SEN. METSGER will lead discussion on the floor.

195

Chair Metsger

Closes work session on SB 121.  Opens a public hearing on SB 83

SB 83 – PUBLIC HEARING

200

Paul Kluvers

Structural Engineers Association.  Testifies in favor of SB 83.  Discusses an error introduced in earlier legislation.  Remarks how SB 83 would correct the issue.

210

Mari Lopez

Executive Secretary, Oregon State Board of Examiners for Land Surveying (OSBEELS).  Introduces Mr. Bob Walker.

220

Bob Walker

Former board member, OSBEELS.  Notes he was on the board when the error was discovered.  Discusses building codes and the need to correct the statute error.  Notes structure sizes where an architect or engineer is required. 

255

Dan Linscheid

Yamhill County Surveyor, OSBEELS board member.  Testifies in support of SB 83.

265

Chair Metsger

Asks if anyone has taken advantage of the error in current law.

270

Linscheid

Responds there have been a few minor instances.

275

Sen. B. Starr

Clarifies that this bill only covers essential structures.

280

Linscheid

Concurs that he is correct.

285

Sen. B. Starr

Clarifies the meaning of essential facilities.

290

Linscheid

Defines essential structures as response facilities such as fire and police stations. 

295

Sen. B Starr

Reads off a list of structures currently defined as essential.

300

Jennifer Gilbert

Executive assistant, OSBEELS.  Testifies on behalf of the board in support of SB 83.

305

Sen. Deckert

Wonders if those represented by the board are all in support of SB 83.

310

Gilbert

Expresses agreement.

315

Chair Metsger

Closes public hearing on SB 83.  Opens a work session on SB 83.

SB 83 – WORK SESSION

320

Sen. B. Starr

MOTION:  Moves SB  83 to the floor with a DO PASS recommendation.

 

 

VOTE:  5-0-0

323

Chair Metsger

Hearing no objection, declares the motion CARRIED.

SEN. B. STARR will lead discussion on the floor.

325

Chair Metsger

Closes work session on SB 83.  Opens a public hearing on SB 86.

SB 86 – PUBLIC HEARING

330

Lopez

Testifies in support of SB 86.  Offers the bill would require engineers to stamp their documents.

347

Linscheid

States his support for SB 86.

360

Chair Metsger

Expresses his understand of the function of the bill.  Asks what the issue is that they are trying to resolve.

367

Linscheid

Notes that engineers are exempt from having to stamp their documents.  Offers this would grant some authority over engineers.

370

Chair Metsger

Clarifies that they are trying to make engineers accountable by requiring a stamp.  Wonders why they were exempted to begin with.

373

Gilbert

Replies she doesn’t know the history of it.

375

Linscheid

Offers he doesn’t know when it occurred, but explains that the loophole occurred with the significant structures law was put into place.

377

Chair Metsger

Notes the original law was passed in 1999.

380

Sen. B. Starr

States his concerns with language in the bill addressing residential structures.  Asks if those structures would require an engineer’s stamp, or if it would only need one if an engineer worked on the project. 

395

Gilbert

Agrees.

400

Sen. B. Starr

Wonders what the problem is that this bill is addressing.

405

Linscheid

Replies that they currently have no ability to sanction engineers for poor workmanship on an exempt project.

TAPE 16, B

005

Linscheid

Concludes his comments on bringing engineers into line.

010

Chair Metsger

Remarks that this bill is aiming to create an equal professional standard.

015

Linscheid

Concurs that the intent is to create uniformity.

020

Sen. Atkinson

Comments on recent legislation he has been hearing. Wonders if there is any real need for this law.

027

Lopez

Replies it is necessary for architecture laws.

030

Sen. Atkinson

Wonders if they will be hearing from architects on this issue.

032

Chair Metsger

Calls for a brief recess at 2:06 p.m.

035

Chair Metsger

Calls the committee back at 2:07 p.m.  Remarks that they will need more testimony on this bill.  Closes public hearing on SB 86.  Adjourns the meeting at 2:08 p.m.

 

 

EXHIBIT SUMMARY

 

  1. SB 120, Written testimony of Floyd Lanter, David Tatman, 5 pp
  2. SB 121, Written testimony, Floyd Lanter, 3 pp