HOUSE COMMITTEE ON

BUSINESS, LABOR AND CONSUMER AFFAIRS

 

 

March 12, 2003   Hearing Room E

8:30 A.M. Tapes  54 – 55

 

MEMBERS PRESENT:            Rep. Betsy Close, Chair

Rep. Derrick Kitts, Vice-Chair

Rep. Diane Rosenbaum, Vice-Chair

Rep. Mary Gallegos

Rep. Bill Garrard

Rep. Jeff Merkley

Rep. Mike Schaufler

 

STAFF PRESENT:                  Megan Palau, Committee Administrator

Mike Reiley, Committee Assistant

 

MEASURE/ISSUES HEARD:            HB 2616 – Public Hearing

HB 2019 – 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 54, A

003

Chair Close

Calls meeting to order at 8:35 a.m. Opens public hearing on HB 2616.

HB 2616 – PUBLIC HEARING

010

Megan Palau

Committee Administrator. Summarizes HB 2616.

012

Rep. Robert Ackerman

House District 13. Submits and summarizes prepared testimony in support of HB 2616 (EXHIBIT A).

052

Bill Wiswall

Attorney. Submits and summarizes prepared testimony in support of HB 2616 (EXHIBIT B).

178

Jeannette Gillam

Eugene, Oregon. Testifies in support of HB 2616. Explains her automobile accident.

211

Chair Close

Asks for clarification of payments and benefits of case of Mrs. Gaston outlined in submitted testimony.

222

Wiswall

Explains payments and benefits received and paid by Mrs. Gaston.

264

Chair Close

Asks for further clarification.

266

Wiswall

Explains provisions included in insurance policy.

288

Rep. Kitts

Asks why attorneys do not itemize costs they will seek.

302

Wiswall

Answers that they do sometimes itemize and explains process.

339

Rep. Kitts

Asks about division of expenses.

344

Wiswall

Explains division of expenses.

363

Rep. Rosenbaum

Asks about payment and settlements

371

Wiswall

Explains payments and settlements.

393

Rep. Rosenbaum

Asks if claimants are required to repay insurance companies.

396

Wiswall

Explains payments process.

TAPE 55, A

005

Rep. Rosenbaum

Asks for clarification.

009

Wiswall

Offers clarification.

011

Rep. Garrard

Asks if law firm representing injured party receives future payments.

015

Wiswall

Answers that law firm is not involved in future payments.

021

Rep. Gallegos

Asks how cap on payments is determined.

028

Wiswall

Explains cap on liability insurance.

044

Rep. Gallegos

Asks about lawsuit against taxicab company.

051

Wiswall

Explains lawsuits associated with case.

067

Rep. Kitts

Asks about inclusions in monetary compensation.

073

Wiswall

Explains monetary compensation.

074

Rep. Kitts

Asks about future compensations.

082

Wiswall

Explains compensation of settlements.

085

Rep. Kitts

Asks for clarification.

098

Wiswall

Offers clarification.

104

Rep. Schaufler

Asks for clarification of future settlements and attorney compensation.

107

Wiswall

Explains settlements and compensation.

114

Rep. Gallegos

Asks about payments from other insurance companies.

117

Wiswall

Explains payments from other insurance companies.

127

Rep. Ackerman

Clarifies role of attorneys in litigation regarding payments.

163

Rep. Dennis Richardson

House District 4. Testifies in support of HB 2616. Explains litigation process and insurance benefits and payments.

245

Rep. Gallegos

Asks if trust agreements are established.

250

Rep. Richardson

Answers that they sometimes are, sometimes it is on good faith.

252

Rep. Garrard

Asks about role of insurance companies in accident settlements.

257

Rep. Richardson

Explains role of insurance companies in accident settlements.

268

Rep. Rosenbaum

Asks about insurance settlements.

274

Rep. Richardson

Explains trust agreements and insurance settlements.

285

Rep. Rosenbaum

Asks for clarification.

288

Rep. Richardson

Offers clarification.

294

Rep. Gallegos

Asks about extent of insurance settlement situation.

307

Rep. Richardson

Clarifies nature of insurance settlements.

315

Rep. Kitts

Asks Mr. Powell to address testimony of Rep. Richardson.

325

John Powell

Regence BlueCross BlueShield of Oregon. Testifies in opposition to HB 2616. Explains insurance claims process and addresses testimony of Rep. Richardson.

414

Leonard Hagen

Director of Legislative Affairs, Regence BlueCross BlueShield of Oregon. Submits and summarizes prepared testimony in opposition to HB 2616 (EXHIBIT C).

TAPE 54, B

001

Hagen

Continues testimony.

073

Rep. Garrard

Asks for clarification of insurance coverage and benefits.

090

Hagen

Clarifies insurance coverage and benefits.

100

Rep. Garrard

Asks for further clarification of insurance coverage and benefits.

104

Powell

Explains insurance coverage and benefits.

145

Rep. Schaufler

Asks if insurance premiums would increase under HB 2616.

167

Powell

Explains effect on insurance premiums.

183

Rep. Gallegos

Comments on ability of injured party to recover settlement.

198

Hagen

Explains settlement process.

226

Rep. Schaufler

Expresses concern that insurance premiums would be increased.

240

Rep. Merkley

Asks if settlement cap would be amenable.

263

Hagen

Explains benefits and disadvantages to settlement cap.

283

Rep. Rosenbaum

Asks about recovering expenses and provisions in other states.

291

Hagen

Answers that he does not know about provisions in other states. Explains process of recovering expenses.

324

Rep. Rosenbaum

Asks for further clarification.

326

Hagen

Offers further clarification of recovering expenses.

355

Powell

Clarifies that it would be responsibility of wrongful parties to pay.

366

Chair Close

Closes public hearing on HB 2616. Opens public hearing on HB 2019.

HB 2019 – PUBLIC HEARING

377

Megan Palau

Committee Administrator. Summarizes HB 2019.

386

Jan Amling

Executive Director, Consumer Credit Counseling Service (CCCS). Submits and summarizes prepared testimony in support of HB 2019 (EXHIBIT D).

TAPE 55, B

092

Chair Close

Asks for clarification regarding federal bankruptcy protection.

096

Amling

Explains federal bankruptcy legislation.

125

Rep. Merkley

Expresses support for CCCS and asks about charging of fees.

172

Amling

Explains provisions regarding charging of fees.

201

Rep. Rosenbaum

Asks if business practices of some competitors are in violation of current statute.

207

Amling

Explains questionable business practices that take place.

216

Rep. Rosenbaum

Asks if setting a specific fee would be amenable.

222

Amling

Explains other states’ fee provisions and operations.

250

Rep. Rosenbaum

Asks about setting fee that would not exceed a certain level.

252

Amling

Answers that it would not be feasible due to different situations.

267

Chair Close

Asks about role of Department of Consumer and Business Services in handling situation.

270

Amling

Responds.

277

Rep. Merkley

Asks for explanation of fees up front for protection of consumers.

307

Matt Markee

CCCS. Testifies in support of HB 2019.

324

Chair Close

Closes public hearing on HB 2019. Adjourns meeting at 10:22 a.m.

 

 

EXHIBIT SUMMARY

 

A – HB 2616, written testimony, Rep. Robert Ackerman, 2 pp

B – HB 2616, written testimony, William Wiswall, 7 pp

C – HB 2616, written testimony, Leonard Hagen, 1 p

D – HB 2019, written testimony, Jan Amling, 4 p