SENATE COMMITTEE ON TRANSPORTATION

 

 

March 23, 2005                                                                                                       Hearing Room C

3:10 P.M.                                                                                                                      Tapes 37 - 39

 

MEMBERS PRESENT:         Sen. Joanne Verger, Chair

Sen. Rick Metsger

Sen. Floyd Prozanski

Sen. Bruce Starr

 

MEMBER EXCUSED:          Sen. Doug Whitsett, Vice-Chair

 

STAFF PRESENT:                 Judith Callens, Committee Administrator

James Goulding, Committee Assistant

 

MEASURES/ISSUES HEARD:        

           

                                                SB 842 – Work Session

                                                SB 640 – 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 37, A

003

Chair Verger

Calls the committee to order at 3:22 p.m.  Reports that SB 411 will not be heard today. Says that SB 868 will not be heard by the committee.

011

Judith Callens

Committee Administrator. Explains why SB 868 will not be heard by the committee.

020

Chair Verger

Opens work session on SB 842.

SB 842 – WORK SESSION

025

Chair Verger

Describes -2, -3, & -4 amendments to SB 842 (EXHIBIT A, B, & C respectively). 

027

Judith Callens

Committee Administrator. Gives overview of SB 842 and the amendments.

035

Sen. Prozanski

Asks what county.

037

Judith Callens

Replies Lane County.

047

Sen. Ryan Deckert

Represents Senate District 14.  Presents written testimony in favor of SB 842 (EXHIBIT D).  Discusses the advantages of each amendment.

075

Chair Verger

Calls on someone from Oregon Department of Transportation (ODOT) to answer some questions.  Asks for an estimate on the amount of the total damage caused by studded tires.

081

John Jackley

Highway Division, ODOT. Replies eleven million dollars.

085

Sen. B. Starr

Asks if the actual amount of damage is more than eleven million dollars.

089

Jackley

Replies yes. Says eleven million dollars is what ODOT spends annually, not the actual amount of damage done.

091

Sen. B. Starr

Asks for an estimate of the total damage of the state’s highway system due to studded tires.

093

Jackley

States he does not have the estimate but that he could provide the estimate to the committee.

097

Sen. Prozanski

Asks if the eleven million dollars is being spent statewide.

103

Jackley

Replies it is generally expended west of the cascades.

105

Sen. Prozanski

Asks question about the amendments.

107

Jackley

Replies that he has not seen the amendments.

115

Sen. Prozanski

Discusses the -3 and -4 amendments.

121

Jackley

Believes his distinction is correct.

143

Sen. Prozanski

Proposes that SB 842 be carried over to their next meeting.

155

Chair Verger

Suggests that they wait for Sen. Metsger to arrive and hear SB 640 in the meantime.  Closes work session on SB 842 and opens a public hearing on SB 640.

SB 640 – PUBLIC HEARING

170

Sen. Ted Ferrioli

Represents Senate District 30.  Reads the written testimony of Sen. Jackie Winters in favor of SB 640 (EXHIBIT E).

215

Chair Verger

Observes that Sen. Ferrioli might also wish to share his own thoughts on the measure.

217

Sen. Metsger

Remarks on Sen. Winters testimony.

220

Sen. Ferrioli

Offers his testimony in favor of SB 640.  Describes the current Methamphetamine epidemic and the efforts to combat it.

253

Sen. Ferrioli

Discusses the Oregon Driver’s License and its role in enabling identity theft crimes.

280

Sen. Ferrioli

Talks about new safety features for making driver’s licenses. States that they can often be duplicated by criminals.

320

Sen. Ferrioli

Replies with a further description of the biometric identity safeguards.

360

Chair Verger

Inquires how Sen. Winters is recuperating.

363

Sen. Ferrioli

Offers that Sen. Winters is doing very well.  Makes further remarks that this is a very non-partisan issue that crosses many demographic lines.

393

Chair Verger

Comments on the disappointment she feels when otherwise good people are drawn into negative activities of this nature.

403

Sen. Ferrioli

Relates the trials people face with identity theft.

TAPE 38, A

003

Chair Verger

Mentions technological advancements.

010

Lorna Youngs

Department of Motor Vehicles (DMV). Submits written testimony (EXHIBIT F).  Points out that the committee may wish to hear from the chief proponents of the bill first.

035

Chair Verger

Concurs and asks Mr. Kanzler to testify.

041

Larry Kanzler

Chief, Milwaukee Police Department.  Testifies in support of SB 640 and relays an account of identity theft with a driver’s license. 

070

Kanzler

Talks about the elaborate counterfeit capabilities current technology allows for.

100

Kanzler

Talks about apartments that have been permanently contaminated by the Methamphetamine making process.

117

Jeff Kaer

Lieutenant, Regional Economic Crime Investigation Center (RECIC).    Submits a packet of testimony and data (EXHIBIT G). 

143

Kaer

Talks about Department of Motor Vehicles (DMV) efforts to produce a secure driver’s license card, but not the process by which they are issued.

175

Kaer

Discusses the time it takes to reestablish a person’s credit history.

200

Kaer

Notes the advantages of a biometric feature to prevent identity theft.

230

Kaer

Observes the forms of biometric data and that fingerprints are the most convenient way to track data.

241

Chair Verger

Asks if the DMV can add the measurements to the faces.

247

Kaer

Replies that he believes so.  Continues discussion on the prevention of identity theft.

275

Kaer

Refers to the submitted informational packet and methods of preventing counterfeiting. 

300

Kaer

Details the methods of reducing the issuing of false identification.

330

Raul Ramirez

Marion County Sheriff’s Office.  Testifies in favor of SB 640.

360

Ramirez

Discusses the need for a cross referencing system amongst identification issued. 

390

Ramirez

Advocates for action as soon as possible to prevent these crimes.

TAPE 37, B

010

Brad Berry

Oregon District Attorney’s Association.  Testifies in favor of SB 640.  Relays the problems that have been created by the Methamphetamine epidemic.  Talks about identity theft problems.

040

Berry

Describes the ease with which fake licenses can be made.

070

Berry

Talks about a select few DMV employees who assist in identity theft crimes.

100

Chair Verger

Observes the money spent trying to thwart the drug epidemic over the years. 

127

Sen. Prozanski

Asks about the process of issuing a license under this system.

133

Kaer

Explains the procedure for issuing a license.

140

Sen. Prozanski

Asks for an example of the process.

145

Kaer

Offers an overview of the process.

153

Sen. Prozanski

Asks clarification question.

155

Kaer

Clarifies explanation.

157

Sen. Prozanski

Asks if it is all in a software program.

159

Kaer

Replies yes. Continues explanation of process.

187

Chair Verger

Points out that the mailing part of the process is very important.

190

Kaer

Responds to comment.

207

Chair Verger

Comments that everything would be much easier if everyone told the truth.

275

Kerrie Davis

Rogue Federal Credit Union.  Submits written testimony for herself and Ms. Leavitt (EXHIBIT H). Testifies on SB 640.

300

Pamela Leavitt

Credit Union Association of Oregon.  Hands out a flyer about passwords (EXHIBIT I). Testifies on SB 640.

310

Chair Verger

Comments on the flyer and the useful information contained on it.  Asks if people from the local credit unions come to businesses to discuss identity theft prevention.

320

Davis

Replies yes and explains.

330

Leavitt

Replies yes.

340

Sen. Prozanski

Asks about the value of the new license.

345

Davis

Explains importance of enhanced security measures.

367

Sen. Prozanski

Asks what they look for when someone comes into the bank to open an account.

370

Davis

Discusses training procedures and what they look for.

385

Mike Dewey

Digimarc Corporation.  Talks about his Oregon based company that provides services for DMV and others around the world.    

TAPE 38, B

010

Dewey

Offers concerns that the passage of SB 640 might cause violations with their contract with DMV. 

035

Sen. Prozanski

Asks for clarification about what they provide to DMV.

040

Dewey

Details the technology they provide to make identity cards.

057

Sen. Prozanski

Wonders what he means by storage.

059

Dewey

Replies they store the photographs.

065

Sen. Prozanski

Asks if the vendor would have access to the database.

067

Dewey

Responds.

075

Sen. B. Starr

Observes the concerns of Digimarc.  

079

Dewey

Replies that they have a contract that expires in 2008.

083

Sen. B. Starr

Asks if Digimarc has the technological capacity to do the updates necessary.

090

Dewey

Responds that it could be provided at a cost.

110

Andrea Meyer

American Civil Liberties Union of Oregon.  Presents written testimony in opposition to SB 640 (EXHIBIT J). Testifies in opposition to SB 640.

140

Meyer

Continues to describe the problem inherent with developing technology properly identifying individuals.

165

Meyer

Summarizes her testimony.

195

Chair Verger

Asks if Ms. Meyer thinks we have much privacy now.

197

Meyer

Replies that we have less and less privacy and that it shouldn’t be given away.

200

Chair Verger

Opines the decline in personal privacy. 

211

Meyer

Responds.

230

Chair Verger

Respectfully disagrees with Meyer’s response.

240

Tom Perrick

President & CEO, Oregon Bankers Association. Testifies in support of SB 640.

297

Chair Verger

Asks Ms. Youngs to comment on the testimony provided.

300

Lorna Youngs

Division of Motor Vehicles.  Refers back to her testimony handed out earlier (EXHIBIT F).  Responds to the comments made during the testimony.

410

Youngs

Elaborates on their operations.  Mentions SB 640 -2 amendments (EXHIBIT K).

TAPE 39, A

005

Youngs

Continues testimony.

020

Chair Verger

Inquires what the punishment would be for an employee who shared confidential information.

025

Youngs

Explains.

027

Chair Verger

Wonders if there is a work environment that an employee would feel comfortable with reporting another employee who has accessed the databank for personal reasons.

035

Youngs

Offers that there is a high emphasis on protecting data.

040

Chair Verger

Comments on testimony.

045

Sen. Prozanski

Clarifies that the database would only be accessible by DMV employees.

047

Youngs

Explains that DMV records are accessible under the records law.

050

Sen. Prozanski

Asks if you can buy a person’s information from the DMV for marketing purposes.

053

Youngs

Replies they cannot.  Details the changes made to prevent that activity.

080

Sen. B. Starr

Inquires if Youngs has seen the information from the Coalition for a Secured Driver’s License. Asks if she is concerned that Oregon is at the bottom of the red list.

090

Youngs

References the criteria used to establish the score.  Breaks down where Oregon stands among other states.

105

Sen. B. Starr

Asks if she is concerned that Oregon is at the bottom of the list.

107

Youngs

Replies that she is concerned.

110

Sen. B. Starr

Comments that other bills have been drafted this session to deal with some of the other issues as well.

127

Sen. B. Starr

Seems that this bill focuses on the issue of identity theft.

133

Youngs

Replies with understanding.

137

Sen. B. Starr

Comments that he does not see an alternative to this bill.

147

Youngs

Agrees.

160

Sen. B. Starr

Mentions the termination of employees who violate usage of the database. Asks if there is criminal action taken against employees who fraudulently use the database.

163

Youngs

Explains.

179

Sen. B. Starr

Asks if the Oregon DMV has any direct connection with the negotiated rule making.

193

Youngs

Replies that they are in close contact and that they get frequent updates.

207

Sen. B. Starr

Asks how much of the issues coincide with the issues relayed in this bill.

209

Youngs

Explains potential risk.

217

Sen. Metsger

Observes the multiple areas that identity theft affects.  Discusses the evolution of the use of a driver’s license.  Observes that they could establish another form of identity other than the driver’s license.

245

Youngs

Offers that the responsibility would simply fall on another area.

263

Chair Verger

Responds to testimony.

269

Sen. Prozanski

Wonders about the usage of the fingerprint on the card.

283

Youngs

Points out all the safety features included in cards that aren’t being utilized. 

317

Sen. B. Starr

Clarifies the usage of a finger print on the card.

327

Sen. Prozanski

Expresses his concerns about more information being available on the card other than the fingerprint.

345

Chair Verger

Closes public hearing on SB 640.  Opens work session on SB 842.

SB 842 – WORK SESSION

347

Chair Verger

Comments on SB 842. Talks about the amendments on SB 842.

357

Sen. Prozanski

Notes his opposition to moving SB 842 forward.

375

Chair Verger

Asks what would be impacted under the -3 amendments.

376

Sen. Prozanski

Replies Lane County.

383

Sen. B. Starr

Talks about the SB 842 -3 amendments.  Points out how long they have attempted to address the studded tire issue.  Feels they should take this up another time.

403

Sen. Metsger

Voices his support of the -2 amendments. 

427

Chair Verger

Closes work session and adjourns the committee at 5:39 p.m.

 

 

EXHIBIT SUMMARY

 

  1. SB 842, -2 amendments, staff, 1 p
  2. SB 842, -3 amendments, staff, 1 p
  3. SB 842, -4 amendments, staff, 1 p
  4. SB 842, written testimony, Sen. Ryan Deckert, 1 p
  5. SB 640, written testimony, Sen. Jackie Winters, 1 p
  6. SB 640, written testimony, Lorna Youngs, 3 pp
  7. SB 640, informational packet, Jeff Kaer, 34 pp      
  8. SB 640, written testimony, Pamela Leavitt, 3 pp
  9. SB 640, flyer, Pamela Leavitt, 2 pp
  10. SB 640, written testimony, Andrea Meyer, 3 pp
  11. SB 640, -2 amendments, staff, 3 pp