SENATE COMMITTEE ON COMMERCE

 

 

April 14, 2005                                                                                                          Eugene, Oregon

7:00 P.M.                                                                                                                     Tapes  55 - 57

 

MEMBERS PRESENT:         Sen. Floyd Prozanski, Chair

Sen. Roger Beyer, Vice-Chair

Sen. Ginny Burdick

Sen. Charlie Ringo

Sen. Doug Whitsett

 

STAFF PRESENT:                 Anna Braun, Committee Administrator

Karen Scoffield, Committee Assistant

 

MEASURES/ISSUES HEARD & WITNESSES:      

                                                SB 626 – Public Hearing

                                                SB 627 – Public Hearing

                                                SB 628 – Public Hearing

                                                SB 629 – Public Hearing

                                                SB 630 – Public Hearing

                                                SB 545 – Public Hearing

                                                SB 968 – Public Hearing

                                                SB 624 – 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 55, A

005

Chair Prozanski

Calls the meeting to order at 7:13 p.m. Opens public hearing on SB 626, SB 627, SB 628, SB 629 and SB 630.  States that the bills are being combined into two bills and we will discuss their concepts. Discusses the agenda.

SB 626, SB 627, SB 628, SB 629, SB 630 - PUBLIC HEARING

055

Anna Braun

Committee Administrator.  Discusses and submits a Draft Identity Theft Bill “Bill No. 1” (EXHIBIT A), a Draft Social Security Number Bill “Bill No. 2” (EXHIBIT B), and an overview of Bill No. 1 on Identity Theft (EXHIBIT C)

070

Cheryl Pellegrini

Attorney In Charge, Financial Fraud/Consumer Protection Section, Department of Justice (DOJ).  Discusses and submits written testimony regarding Credit Report Protection and Identity Theft Legislation in support of Bill No. 1 and Bill No. 2 (EXHIBIT D).  

120

Pellegrini

Continues testimony.   

190

Pellegrini

Concludes testimony.

210

Cory Streisinger

Director, Department of Consumer and Business Services (DCBS).  Testifies in support of the concepts in Bill No. 1 and Bill No. 2.

255

Sen. Burdick

Asks Pellegrini about cases spoken of in her testimony.

263

Pellegrini

Responds.  Discusses procedures of identity theft criminals.

280

Sen. Burdick

Inquires how people steal identities online through databases.

288

Pellegrini

Responds.

315

Sen. Burdick

Clarifies that not all companies notify their customers when their information is stolen. 

317

Pellegrini

Answers, yes.

330

Sen. Whitsett

Inquires why Pellegrini feels that younger people are more of a target for identity theft.

340

Pellegrini

Responds.

350

Chair Prozanski

Discusses identity theft cases.

365

Pellegrini

Responds. 

385

Sen. Whitsett

Asks Streisinger about the position of the credit companies.

392

Streisinger

Responds.

399

Chair Prozanski

Asks if DCBS is anticipating any costs associated with Bill No. 1 or Bill No. 2.

410

Streisinger

Discusses costs involved in the bills and remarks that the primary enforcement would be through consumers.

TAPE 56, A

015

Chair Prozanski

Clarifies that there will not be much of a fiscal impact from Bill No. 1 and Bill No. 2.

017

Streisinger

Answers, yes.

025

Kamala Shuger

Oregon District Attorneys Association.  Testifies regarding SB 629. 

045

Chair Prozanski

Remarks that SB 626, SB 627, SB 628, SB 629 and SB 630 will not move forward because their concepts are being combined into Bill No. 1 and Bill No. 2. 

055

Shuger

Remarks that she has not had time to review Bill No. 1 and Bill No. 2.

057

Chair Prozanski

Responds.

060

Shuger

Continues testimony.

080

Chair Prozanski

Asks Shuger to review Bill No. 1 and Bill No. 2 and provide suggestions, if necessary.

090

Brandi Minogue

Citizen, Eugene, Oregon.  Testifies in support of Bill No. 1 and Bill No. 2.

110

Brandy Fortson

Citizen, Springfield, Oregon.  Testifies in support of Bill No. 1 and Bill No. 2.  Discusses personal experience as an identity theft victim.

135

Matthew Yook

Citizen, Eugene, Oregon.  Testifies in support of Bill No. 1 and Bill No. 2. 

The following is submitted for the record without public testimony:

 

Steve Swenson

Operations Support Division, City of Eugene Police Department.  Submits written testimony in support of Bill No. 1 and Bill No. 2 (EXHIBIT E).

150

Chair Prozanski

Closes public hearing on SB 626, SB 627, SB 628, SB 629 and SB 630 and opens public hearing on SB 545.

SB 545 – PUBLIC HEARING

170

Anna Braun

Committee Administrator.  Provides an overview of SB 545.  Discusses and submits the -1 amendments to SB 545 (EXHIBIT F) and an outline of the -1 amendments to SB 545 (EXHIBIT G).

185

Cory Streisinger

Director, Department of Consumer and Business Services (DCBS).  Testifies in support of SB 545 with the -1 amendments.

245

Streisinger

Concludes testimony. 

265

Angela Martin

Public Policy Advocate, Oregon Food Bank.  Testifies in support of SB 545 and the -1 amendments.

320

Martin

Discusses the change of the loan term in the -1 amendments. 

330

Chair Prozanski

Asks Streisinger to clarify the difference between a 21 day loan term and a 31 day loan term.

338

Streisinger

Responds.

348

Sen. Whitsett

Asks for clarification on the -1 amendments.  

355

Streisinger

Responds.

357

Sen. Whitsett

Asks for clarification on the difference between a loan fee and interest.

360

Streisinger

Responds.

368

Sen. Whitsett

Asks if DCBS intends to enforce the definition of interest on loan fees from other types of lending institutions.

374

Streisinger

States that the language applies only to payday lending.

381

Sen. Whitsett

Inquires if this is the law in Oregon or if it is a federal law that will be adopted as a state law.

387

Streisinger

Responds that this would be a new provision that would apply to payday loans only.

393

Sen. Whitsett

Clarifies that we would be adopting federal law.

397

Streisinger

States that it is a new provision of state law, but is consistent with the way federal law treats these charges.

402

Chair Prozanski

States his understanding.

415

Streisinger

Responds.  States that it is a terminology choice only to use the word “interest” rather than “fee.”

430

Sen. Whitsett

Comments on the standards between the different lending institutions.

439

Streisinger

States appreciation of attending the hearing in Eugene.

TAPE 55, B

015

Mariah Leavitt

Citizen, Eugene, Oregon.  Testifies in support of SB 545.

030

Jessica Chanay

Citizen, Eugene, Oregon.  Testifies in support of SB 545.  Discusses personal experience with debt. 

075

Laurie Trieger

Citizen, Lane County, Oregon.  Testifies in support of SB 545. 

115

Chair Prozanski

Calls the meeting to a recess.

117

Chair Prozanski

Reconvenes the meeting. Asks the typical length of pay periods for individuals who use payday loans.

128

Trieger

Responds.

133

Sen. Whitsett

Discusses statistics of payday loan users.  

145

Trieger

Responds.

150

Chanay

Responds to Sen. Whitsett’s comments.

162

Sen. Whitsett

Remarks that people are often in financial trouble due to overuse of credit and then it is no longer available.

164

Chanay

Responds.

177

Trieger

Comments that people she has talked to are usually faced with sudden and unexpected expenses.

185

Whitsett

Asks where these people would be without payday lenders.

192

Trieger

Comments that payday loans are a needed industry, but they need to be regulated.

205

Loretta Moesta

OUR Federal Credit Union.  Testifies in support of SB 545. Discusses the experiences of customers who obtained payday loans. 

275

Moesta

Continues testimony. 

330

Sen. Whitsett

Responds to Moesta’s testimony.   

345

Moesta

Discusses the reasons why people go to payday lenders. Discusses the anonymity of payday loans.

380

Sen. Whitsett

States that he has received hundreds of letters in his office in support of payday loans.

385

Moesta

Responds. 

405

Chair Prozanski

Asks Moesta to ask her customers if they would be willing to share the letters she read with the committee.

TAPE 56, B

010

Rev. Daniel Bryant

Ecumenical Ministries of Oregon.  Testifies in support of SB 545.  Relates anecdote regarding payday loans.

070

Bryant

Responds to Sen. Whitsett’s comments.

080

Sen. Ringo

Thanks the witnesses.

The following is submitted for the record without public testimony:

 

Anna Braun

Committee Administrator.  Submits 42 postcards on behalf of 42 Oregon citizens in opposition to SB 545 (EXHIBIT P).

(Note: The same postcard was sent by all citizens).

085

Chair Prozanski

Closes public hearing on SB 545 and opens public hearing on SB 968.

SB 968 – PUBLIC HEARING

 

Anna Braun

Committee Administrator.  Submits the -2 amendments to SB 968 (EXHIBIT H) and anoutline of the -2 amendments to SB 968 (EXHIBIT I).

095

Max Muller

Legislative Aide, Rep. Jackie Dingfelder, House District 45.  Discusses and submits a fact sheet in support of SB 968 and the -2 amendments (EXHIBIT J).  Submits written testimony on behalf of Sybil Hebb, Oregon Law Center, in support of SB 968 with the -2 amendments (EXHIBIT K).

130

Chair Prozanski

Asks for Muller’s comments on the -2 amendments.

132

Muller

Discusses the -2 amendments to SB 968.

190

Muller

Concludes testimony.

213

Chair Prozanski

Recognizes Matt Markee, who is present and represents H&R Block.  Commends H&R Block’s business practices regarding refund anticipation loans.  

222

Chair Prozanski

Closes public hearing on SB 968 and opens public hearing on SB 624.

SB 624 – PUBLIC HEARING

230

Anna Braun

Committee Administrator.  Provides an overview of SB 624.

237

Ken Goodridge

Citizen, Springfield, Oregon.  Testifies in support of SB 624.

296

Chair Prozanski

Asks the period of automobile insurance that Goodridge referred to.

298

Goodridge

Responds. Continues testimony.

325

Sen. Ringo

Discusses the experience of one of his constituents regarding insurance credit scoring. 

350

Kelsey Wood

Gordon Wood Insurance Agency.  Discusses and submits written testimony in opposition to SB 624 (EXHIBIT L) and an informational packet in opposition to SB 624 (EXHIBIT M).

420

Wood

Continues discussing insurance credit scoring. 

TAPE 57, A

030

Wood

Concludes testimony.

057

Sen. Whitsett

Comments that there is very little individualization with credit scoring. Expresses concern of insurance companies who give a low credit score for individuals with no credit.

070

Wood

Responds that people without credit are outside of the rating factors.

077

Sen. Whitsett

Asks for Wood’s comments on the lack of individualization with credit scores.

080

Wood

Asks for clarification.

086

Sen. Whitsett

Restates question.

089

Wood

Responds. 

105

Sen. Whitsett

Discusses concern with individuals having the same credit score, but it is not considered why their score is the way it is.  

115

Wood

Responds.

119

Sen. Whitsett

Responds to a comment made previously by Wood.

123

Chair Prozanski

Clarifies that Wood underwrites property insurance and automobile insurance.

126

Wood

Answers, yes.

128

Chair Prozanski

Comments on the variables used in credit scoring. Asks if rates are reduced based on driving records.

140

Wood

Responds.   

146

Chair Prozanski

Asks if Wood’s insurance policies vary in length of term.

149

Wood

Responds.

155

Chair Prozanski

Asks what insurance companies use to evaluate customers if they are not allowed to use credit scoring upon renewal.

162

Wood

Responds.  Discusses the items considered in evaluating customers.

173

Chair Prozanski

Thanks Wood for testifying.

181

Goodridge

Asks for information from Wood.

The following is submitted for the record without public testimony:

 

Ronn Passmore

Rhodes-Warden Insurance.  Submits written testimony in opposition to SB 624 (EXHIBIT N).

 

Consumer and Agents Action Committee

Submits written testimony in support of SB 624 (EXHIBIT O).

193

Chair Prozanski

Closes public hearing on SB 624. Adjourns the meeting at 9:22 p.m.

 

 

EXHIBIT SUMMARY

 

  1. Identity Theft, draft bill, staff, 7 pp
  2. Identity Theft, draft bill, staff, 2 pp
  3. Identity Theft, overview, staff, 1 p
  4. Identity Theft, written testimony, Cheryl Pellegrini, 16 pp
  5. Identity Theft, written testimony, Steve Swenson, 1 p
  6. SB 545, -1 amendments, staff, 3 pp
  7. SB 545, outline, staff, 1 p
  8. SB 968, -2 amendments, staff, 19 pp
  9. SB 968, outline, staff, 1 p
  10. SB 968, fact sheet, Max Muller, 1 p
  11. SB 968, written testimony of Sybil Hebb, Max Muller, 2 pp
  12. SB 624, written testimony, Kelsey Wood, 2 pp
  13. SB 624, informational packet, Kelsey Wood, 10 pp
  14. SB 624, written testimony, Ronn Passmore, 1 p
  15. SB 624, written testimony, Consumer and Agents Action Committee, 1 p

 

The following is out of order in the body of the document:

  1. SB 545, postcards, Anna Braun, 1 p