SENATE COMMITTEE ON BUSINESS AND ECONOMIC DEVELOPMENT

 

 

March 31, 2005                                                                                                       Hearing Room B

1:00 P.M.                                                                                                                      Tapes 52 - 53

 

MEMBERS PRESENT:         Sen. Rick Metsger, Chair

Sen. Bruce Starr, Vice-Chair

Sen. Jason Atkinson

Sen. Ryan Deckert

 

MEMBER EXCUSED:          Sen. Laurie Monnes Anderson

 

 

STAFF PRESENT:                 Theresa Van Winkle, Committee Administrator

James Goulding, Committee Assistant

 

 

MEASURES/ISSUES HEARD:

                                                SB 327 – Public Hearing

                                                SB 413 – Work Session

                                                SB 1017 – Public Hearing

SB 55 – Public Hearing and Work Session

SB 955 – Public Hearing

SB 214 – Public Hearing and Work Session

SB 997 – 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 52, A

003

Chair Metsger

Calls the meeting to order at 1:06 p.m.  Opens a public hearing on SB 327.

SB 327 – PUBLIC HEARING

015

Sen. Frank Morse

Senate District 8.  Offers testimony in favor of SB 327.  Discusses the -1 amendments to SB 327 (EXHIBIT A).

047

Jan Amling

Consumer Credit Counseling Service of Linn-Benton, Inc.  Presents written testimony in favor of SB 327 (EXHIBIT B).

080

Amling

Remarks on the necessity of this legislation.  Discusses the implications of the less honest members of their industry and giving the state better ability to enforce laws.

110

Sen. Morse

Comments that a nearly identical bill passed the House in the 2003 session and that this is not a new proposal.

123

Lewis Finley

President, Family Financial Planners, Inc.  Submits written testimony in opposition to SB 327 (EXHIBIT C). 

150

Finley

Remarks on the Oregonian article contained in his submitted testimony.

170

Chair Metsger

Observes that his testimony is actually paralleling the testimony given in favor of SB 327.  Asks that he comment on the provisions of the bill.

181

Finley

Requests a restatement of the question.

183

Chair Metsger

Clarifies what he is asking.

191

Finley

Replies that his objections are to the new charges, and that a company cannot take its fee unless it goes directly to its creditor.

220

Finley

Observes this would only make the process of debt collection more complicated.

225

Chair Metsger

Suggests that Ms. Amling respond to Mr. Finley’s criticisms.

230

Amling

Clarifies that statute language.

239

Finley

Replies he reads the language differently.  Reads from a prior creditor agreement.

243

Chair Metsger

Observes that the measure before them does not change the agreement.

245

Finley

States further objections.

247

Chair Metsger

Notes he does not fully understand the specifics of Mr. Finley’s objections.

250

Finley

Offers his interpretation of the bill and why he objects.

253

Amling

Clarifies the fee payment process. 

260

Sen. Deckert

Considers if creditors control the funding for non-profit credit counseling service.

267

Amling

Comments on the wide range of differences between boards of directors and their policies.  Remarks there is little control over Chapter 13 type claims.

295

Chair Metsger

Closes public hearing on SB 327.  Opens work session on SB 413.

SB 413 – WORK SESSION

305

Chair Metsger

Remarks on the previous hearing of SB 413 and reads Oregon Public Utility Commission (PUC) Chair Lee Beyer’s evaluation of the policy. 

321

Sen. B. Starr

Observes the -1 amendments to SB 413 (EXHIBIT D).

323

Theresa Van Winkle

Committee Administrator.  Explains the changes made by the -1 amendments.

337

Sen. B. Starr

MOTION:  Moves to ADOPT SB 413-1 amendments dated 3/2/05.

340

 

VOTE:  3-0-2

EXCUSED:  2 - Atkinson, Monnes Anderson

 

Chair Metsger

Hearing no objection, declares the motion CARRIED.

343

Sen. B. Starr

MOTION:  Moves SB 413 to the floor with a DO PASS AS AMENDED recommendation.

345

Sen. B. Starr

Comments on SB 413 and the issues surrounding the bill.

347

 

VOTE:  3-0-2

EXCUSED:  2 - Atkinson, Monnes Anderson

 

Chair Metsger

Hearing no objection, declares the motion CARRIED.

SEN. METSGER will lead discussion on the floor.

353

Chair Metsger

Closes work session on SB 413 and opens a public hearing on SB 1017.

SB 1017 – PUBLIC HEARING

360

Sen. Morse

Testifies in favor of SB 1017.  Defers to the testimony of Mr. Denham and Mr. Finklea.

385

Jim Denham

General Counsel, Wah Chang.  Submits written testimony in favor of SB 1017 (EXHIBIT E).

TAPE 53, A

030

Denham

Continues to testify in support of SB 1017.

050

Ed Finklea

Attorney, Cable Huston.  Presents his written testimony in favor of SB 1017 (EXHIBIT F).

080

Finklea

Expounds that there is nothing in the bill that is attempting to overturn previous Oregon Public Utilities Commission rulings.

110

Finklea

Discusses connections to natural gas pipelines and current operations.

133

Sen. Deckert

Wonders about addressing situations where litigations are pending.

141

Denham

Notes an appeal has redirected the case back to the PUC.

145

Sen. Deckert

Considers why the legislature would involve itself in a matter already being addressed by the PUC.

149

Denham

Offers that the reason for addressing this issue is specifying certain elements of the law to clarify intent of the statute.

159

Sen. Deckert

Wonders if the PUC safety requirements will be the same if this is enacted.

165

Finklea

Points out he has addressed the situation in his written testimony.

173

Denham

Notes they have staff present that can answer in greater detail.

177

Sen. Deckert

Questions the potential for cost shifting.

185

Finklea

Explains that their company has long argued for cost based rates.

210

Finklea

Discusses further.

233

Bonnie Tatom

Representing PUC. 

237

Chair Metsger

Wonders how the PUC would interpret the law.

244

Tatom

Doesn’t feel it clarifies the law, such as adding additional provisions.

251

Chair Metsger

Recalls that in the other 49 states this is already standard policy.

253

Tatom

Admits she does not know for sure.

255

Sen. B. Starr

Asks if the PUC has taken a position on SB 1017.

257

Tatom

States that they oppose it.

259

Sen. B. Starr

Requests to know the rationale for their opposition.

260

Tatom

Replies she will provide that information.

263

Sen. Deckert

Seeks greater understanding of the reasoning behind the PUC opposition.

267

Tatom

Presents committee with a summary of the PUC’s opposition to SB 1017 (EXHIBIT G).

279

Sen. Deckert

Comments on the summary.

281

Tatom

Concludes her testimony.

290

Bob Jenks

Citizens Utility Board (CUB).  Testifies in opposition to SB 1017. 

343

Gary Bauer

Northwest Natural.  Presents written testimony in opposition to SB 1017 (EXHIBIT H). 

380

Bauer

Continues testimony regarding the narrow scope of those that would benefit from this legislation. 

TAPE 52, B

005

Bauer

Relays his hope that there is another way to resolve this matter.

023

Chair Metsger

Comments on the access issues with pipelines. 

025

Sen. Deckert

Inquires about the policies in the 49 other states.

033

Bauer

Replies he has not researched it yet, but will get back to him.

035

Sen. B. Starr

Voices his concern of companies going out of business.

043

Bauer

Agrees and remarks they are only as healthy as the economy. 

053

Chair Metsger

Echoes Sen. Starr’s comments.  States the committee will go over the information before any other action is taken.  Closes public hearing on SB 1017.  Opens public hearing on SB 55.

SB 55 – PUBLIC HEARING

065

Theresa Van Winkle

Explains the details of the -2 amendments (EXHIBIT I) to the measure.

080

Dan Linscheid

Yamhill County Surveyor.  Presents written testimony in favor of SB 55 (EXHIBIT J).

115

Dean Anderson

IT Director, Polk County.  Presents written testimony in favor of SB 55 (EXHIBIT K).

140

Chair Metsger

Asks if he could articulate for the record what organizations support this legislation.

145

Linscheid

Notes the parties that have voiced support for SB 55.  Submits a packet of letters from parties supporting SB 55 (EXHIBIT L).

153

Chair Metsger

Wonders how long it took to build a consensus with the various organizations.

155

Linscheid

Remarks on the progress that has been made.  States that they were initially far apart on this issue.

157

Chair Metsger

Comments on the need for the law to keep up with technology.  Closes public hearing on SB 55.  Open a public hearing on SB 955.

SB 955 – PUBLIC HEARING

177

Robert Ball

Developer, Pearl Real Estate.  Presents written testimony in favor of SB 955 (EXHIBIT M).

262

John Carroll

Developer, Edge Lofts.  Testifies in favor of SB 955. 

303

Sally Westin

Real Estate Investor, Eugene Oregon.  Presents a letter from Jean Tate to the committee (EXHIBIT N).  Talks about the stumbling blocks for getting their project moving because of high insurance requirements.  Mentions the -1 amendment (EXHIBIT O).

371

Sen. B. Starr

Observes that insurance rate increases are related to construction defects. 

387

Ball

Responds that construction defect costs fall upon the builder. 

410

Carroll

Contributes that this bill is not attempting to avoid responsibility for construction defects. 

TAPE 53, B

005

Carroll

Continues to discuss the contractor standards.

007

Chair Metsger

Closes public hearing on SB 955.  Opens a work session on SB 55.

SB 55 – WORK SESSION

013

Chair Metsger

Summarizes the measure for the members who were not present earlier.

015

Sen. B. Starr

MOTION:  Moves to ADOPT SB 55-2 amendments dated 3/28/05.

017

 

VOTE:  4-0-1

EXCUSED:  1 - Monnes Anderson

 

Chair Metsger

Hearing no objection, declares the motion CARRIED.

019

Sen. B. Starr

MOTION:  Moves SB 55 to the floor with a DO PASS AS AMENDED recommendation.

021

 

VOTE:  4-0-1

EXCUSED:  1 - Monnes Anderson

 

Chair Metsger

Hearing no objection, declares the motion CARRIED.

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

023

Chair Metsger

Closes work session on SB 55.  Opens a public hearing on SB 214.

SB 214 – PUBLIC HEARING

025

Chair Metsger

Takes a moment to mention the deadline for hearing Senate measures.

035

Robert Roth

Assistant Attorney General.  Presents written testimony in favor of SB 214 (EXHIBIT P).   Notes the -1 amendments before the committee (EXHIBIT Q).

095

John McCulley

Executive Secretary, Oregon Fairs Association.  Comments on his concerns with SB 214. 

115

Katie Cannon

Director of the Oregon State Fair.  Notes her support for the -1 amendments.

      The following prepared testimony is submitted for the record without public testimony:

 

Harold Scoggins

Written testimony on SB 214 (EXHIBIT R).

127

Chair Metsger

Closes public hearing on SB 214.  Opens a work session on SB 214.

SB 214 – WORK SESSION

144

Sen. B. Starr

MOTION:  Moves to ADOPT SB 214-1 amendments dated 3/30/05.

147

 

VOTE:  4-0-1

EXCUSED:  1 - Monnes Anderson

 

Chair Metsger

Hearing no objection, declares the motion CARRIED.

148

Sen. B. Starr

MOTION:  Moves SB 214 to the floor with a DO PASS AS AMENDED recommendation.

149

 

VOTE:  4-0-1

EXCUSED:  1 - Monnes Anderson

 

Chair Metsger

Hearing no objection, declares the motion CARRIED.

SEN. KRUSE will lead discussion on the floor.

157

Chair Metsger

Closes work session on SB 214.  Opens a public hearing on SB 997.

SB 997 – PUBLIC HEARING

160

Darrell Fuller

New Car Dealers Association.  Explains the measure and proposed the -1 amendment (EXHIBIT S) and written testimony (EXHIBIT T).  Notes there are some drafting problems with the current amendments that will be corrected as soon as possible.

200

Eva Tayrose

Financial Fraud/Consumer Protection Section, Oregon Department of Justice (DOJ).  Supports the intent of the measure, but relates that a few changes are still needed.

227

Chair Metsger

Asks if a consumer is informed of the amount charged for vehicle transfer fee.

232

Fuller

Replies that fee disclosure is required.

235

Sen. Deckert

Observes that they may want to move this along in the process and make the changes in the other chamber.

240

Chair Metsger

Notes they will wait for the amendments, before moving it forward.  Closes the public hearing on SB 997.  Adjourns the committee at 2:50 p.m.

 

 

EXHIBIT SUMMARY

 

  1. SB 327, - 1 amendments, staff, 1 p
  2. SB 327, Written testimony, Jan Amling, 3 pp
  3. SB 327, Written testimony, Lewis Finley, 7 pp
  4. SB 413, - 1 amendments, staff, 2 pp
  5. SB 1017, Written testimony, Jim Denham, 2 pp
  6. SB 1017, Written testimony, Ed Finklea, 4 pp
  7. SB 1017, PUC Opinion Paper, Bonnie Tatom, 1 p
  8. SB 1017, Written testimony, Gary Bauer, 2 pp
  9. SB 55, -2 amendments, staff, 14 pp
  10. SB 55, Written testimony, Dan Linscheid, 1 p
  11. SB 55, Written testimony, Dean Anderson, 1 p
  12. SB 55, Letters of Support, Dan Linscheid, 7 pp
  13. SB 955, Written testimony, Robert Ball, 2 pp
  14. SB 955, Written testimony of Jean Tate, Sally Westin, 1 p
  15. SB 955, - 1 amendments, staff, 4 pp
  16. SB 214, Written testimony, Robert Roth, 2 pp
  17. SB 214, -1 amendments, staff, 1 p
  18. SB 214, Written testimony, Harold Scoggins 7pp
  19. SB 997, -1 amendments, staff, 2 pp
  20. SB 997, Written testimony, Darrell Fuller, 2 pp