HOUSE COMMITTEE ON JUDICIARY

 

 

June 02, 2003 Hearing Room 357

1:00 p.m. Tapes  211 - 213

 

MEMBERS PRESENT:            Rep. Max Williams, Chair

Rep. Gordon Anderson, Vice-Chair

Rep. Robert Ackerman, Vice-Chair

Rep. Jeff Barker

Rep. Bob Jenson

Rep. Jerry Krummel

Rep. Greg Macpherson

Rep. Floyd Prozanski

Rep. Lane Shetterly

 

STAFF PRESENT:                  Craig Prins, Counsel

Ann Martin, Committee Assistant

 

MEASURE/ISSUES HEARD:            SB 808A Reconsideration and Work Session

                                                HB 3630 Work Session

                                                SB 880A 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 211, A

003

Chair Williams

Calls the meeting to order at 1:08 p.m. Opens a work session on SB 808A.

SB 808A RECONSIDERATION AND WORK SESSION

014

Vice-Chair Ackerman

MOTION:  Moves to SUSPEND the rules for the purpose of RECONSIDERING the vote on SB 808A.

 

 

VOTE:  6-0-3

EXCUSED:  3 - Barker, Prozanski, Shetterly

015

Chair Williams

Hearing no objection, declares the motion CARRIED.

016

Vice-Chair Ackerman

MOTION:  Moves to RECONSIDER the vote by which SB 808A was sent to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  6-0-3

EXCUSED:  3 - Barker, Prozanski, Shetterly

017

Chair Williams

Hearing no objection, declares the motion CARRIED.

019

Vice-Chair Ackerman

MOTION:  Moves to ADOPT SB 808A-A4 amendments dated 05/30/03 (EXHIBIT A).

 

 

VOTE:  6-0-3

EXCUSED:  3 - Barker, Prozanski, Shetterly

022

Chair Williams

Hearing no objection, declares the motion CARRIED.

029

Vice Chair Ackerman

MOTION:  Moves SB 808A to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  6-0-3

EXCUSED:  3 - Barker, Prozanksi, Shetterly

037

Chair Williams

Hearing no objection, declares the motion CARRIED.

REP. ACKERMAN will lead discussion on the floor.

039

Chair Williams

Closes the work session on SB 808A and opens a work session on HB 3630.

HB 3630 WORK SESSION

040

Chair Williams

Introduces HB 3630 which provides that physician is agent of Department of Human Services under Oregon Tort Claims Act for purpose of medical services provided to person enrolled in Oregon Health Plan. Discusses the -4 amendments (EXHIBIT B).

074

Cory Streisinger

Director, Department of Consumer and Business Services. Testifies in support of HB 3630 and the -4 amendments.

163

Scott Gallant

Oregon Medical Association (OMA). Testifies in support of HB 3630.

193

Richard Lane

Oregon Trial Lawyers Association. Supports the –4 amendments.

210

Rep. Prozanski

Asks about Section 10, page 7 of the -4 amendments. Wonders who will be available to be on this panel.

225

Streisinger

Says that at least half of the panel should consist of people that have expertise in gathering or applying research data.

236

Gallant

Discusses who should be on the professional panel.

253

Chair Williams

Explains the purpose of the panel in subsection 3, page 7 of the -4 amendments.

289

Rep. Prozanski

Says that he doesn’t want the panel to be partisan.

295

Chair Williams

Thinks this panel should not include legislators.

328

Bruce Bishop

Oregon Association of Hospitals and Health Systems. Testifies in support of the amendments to HB 3630.

337

Lauren Rhodes

Oregon Association of Hospitals and Health Systems. Testifies in support of the amendments to HB 3630.

381

Streisinger

Discusses the conceptual amendments (EXHIBITS C & D).

409

Chair Williams

Talks about conceptual amendments.

TAPE 212, A

007

Rep. Krummel

Asks about the two percent credited to the State Accident Insurance Fund Corporation (SAIF).

011

Chair Williams

Answers that it is within the 10 million dollar provision of the bill.

020

Rep. Krummel

Asks if it is a one-time cost.

023

Streisinger

Answers that it would be a one-time cost.

031

Charlie Cheek

Legislative Counsel, drafter. Discusses the conceptual amendments.

032

Streisinger

Talks about 2nd conceptual amendment (Exhibit D).

040

Rep. Krummel

Asks about providers that could get their premiums reduced.

048

Streisinger

Answers that a physician may choose to carry between 1 and 3 million dollar aggregate limits to have their premiums reduced.

055

Rep. Krummel

Inquires about the average aggregate limit for physicians.

062

Gallant

Says that most physicians carry a minimum of one million to three million.

071

Chair Williams

Discusses capping the aggregate amount of the medical liability insurance. Asks Charlie Cheek if he is satisfied with the conceptual amendments.

106

Charlie Cheek

Drafter, Legislative Counsel. Answers yes, and gives suggestions on amendments.

121

Vice Chair Anderson

Introduces the -5 amendments to HB 3630 (EXHIBIT E).

122

Rep. Anderson

MOTION:  Moves to ADOPT HB 3630-5 amendments dated 06/02/03.

166

Rep. Prozanski

Questions the relating clause.

177

Chair Williams

Says that the relating clause is broad enough to assume the -5 amendments.

197

Rep. Prozanski

Thinks that they are discussing two separate policy issues.

216

Vice Chair Ackerman

Discusses bill. Says that he thinks medical malpractice should be addressed in a different way.

229

Rep. Krummel

States that this is an opportunity to give SAIF a new public purpose. Says he supports the -4 amendments, but not the -5 amendments.

283

Rep. Macpherson

Discusses the bill and explains that he sees two separate policies.

309

Chair Williams

Informs the committee that he does not support the -5 amendments.

375

Vice Chair Anderson

MOTION:  Moves to ADOPT HB 3630-5 amendments dated 06/02/03.

 

 

VOTE:  3-6

AYE:               3 - Anderson, Jenson, Macpherson

NAY:               6 - Ackerman, Barker, Krummel, Prozanski, Shetterly, Williams

390

Chair Williams

The motion FAILS.

391

Chair Williams

MOTION:  Moves to ADOPT THE CONCEPTUAL AMENDMENTS TO HB 3630-4 amendments dated 06/02/03, by inserting on page 9, after line 11:"(3) The costs of the services of the consultant hired under section 11 of this 2003 Act shall be paid by the State Accident Insurance Fund Corporation from the amount available for credit to the annual assessment owing by the State Accident Insurance Fund Corporation under this section. The cost of the services shall not exceed two percent of the amount credited to the State Accident Insurance Fund Corporation for 2004.”

 

 

VOTE:  9-0

395

Chair Wiliams

Hearing no objection, declares the motion CARRIED.

398

Rep. Williams

MOTION:  Moves to ADOPT THE CONCEPTUAL AMENDMENTS TO HB 3630-4 amendments dated 06/02/03, by inserting on page 3, after line 17: “(c) Premium reductions shall be a percentage of the actual premium charged for medical professional liability insurance in the market of authorized insurers for limits purchased of up to $1 million per occurrence and $3 million annual aggregate.”

 

 

VOTE:  9-0

400

Chair Williams

Hearing no objection, declares the motion CARRIED.

409

Chair Williams

MOTION:  Moves to ADOPT HB 3630-4 amendments dated 06/02/03 AS CONCEPTUALLY AMENDED.

 

 

VOTE:  9-0

417

Chair Williams

Hearing no objection, declares the motion CARRIED.

430

Rep. Prozanski

MOTION:  Moves HB 3630 to the floor with a DO PASS AS AMENDED recommendation.

438

Rep. Jenson

Responds to the issue of a legislative oversight committee.

450

Rep. Prozanski

Agrees.

459

Vice Chair Anderson

Says that he feels very strongly that this is a bill that we need.

475

 

VOTE:  9-0

480

Chair Williams

Hearing no objection, declares the motion CARRIED.

REP. WILLIAMS will lead discussion on the floor.

TAPE 211, B

029

Chair Williams

Closes the work session on HB 3630 and opens a public hearing on SB 880A.

SB 880A PUBLIC HEARING

033

Craig Prins

Committee Counsel. Introduces SB 880A which establishes amount of supersedeas undertaking required for stay of certain judgments if judgment is against tobacco product manufacturer or affiliate or successor of tobacco product manufacturer that is making payments to state under Master Settlement Agreement or related legislation. Discusses -5 amendments and hand-engrossed bill (EXHIBITS F & G).

055

Jim Gardner

Philip Morris. Submits testimony and testifies in support of SB 880A (EXHIBIT H).

165

Rep. Shetterly

Asks about Section 2, subsection 1, line 17, page 1 of the hand-engrossed bill (Exhibit H). Wonders why they need the reference to $1 million on line 23, page 1.

187

Gardner

Says he would need to consult with Legislative Counsel, but could probably take it out.

195

Bill Linden

R.J. Reynolds Tobacco Company. Testifies in support of SB 880A.

259

Rep. Prozanski

Asks about the proposed amendments.

269

Gardner

Says that the whole objective of this is to have the legislature create one small island of relative certainty in a sea of fiscal uncertainty.

298

Rep. Macpherson

Asks Mr. Gardner how diversified are the obligations under the Master Settlement Agreement.

304

 

Gardner

Answers that he believes that Phillip Morris’s share is roughly 50 percent of the industry total.

311

Rep. Macpherson

Asks how many total companies there are.

313

Linden

Says that the next highest share is R.J. Reynolds Tobacco.

322

Rep. Macpherson

Asks about the pattern in the tobacco litigation.

329

Gardner

Answers that it really varies.

339

Rep. Shetterly

Asks about a judgment in the case of two manufacturers.

349

Linden

Says that how it is apportioned among the defendants is up to them.

359

Gardner

Believes that it would be the judgment upon which the bond limitation applies. Says that the supersedeas would suspend the operation of that judgment pending appeal.

377

Rep. Prozanski

Asks about judgments.

385

Linden

Gives answer regarding judgments and multiple defendants.

420

Pete Shepherd

Deputy Attorney General. Submits testimony and testifies in opposition to SB 880A and the –A5 amendments (EXHIBIT I).

TAPE 212, B

012

Shepherd

Continues his testimony in opposition to SB 880A.

157

Chair Williams

Asks if he took a position on this bill in the Senate.

159

Shepherd

Says they did and they testified that $100 million was not sufficient.

163

Chuck Tauman

Trial Lawyer, Portland. Submits testimony and testifies in opposition to SB 880A (EXHIBIT J). Shows video of Dr. Schwartz whose wife died of lung cancer.

287

Tauman

Continues his testimony in opposition to SB 880A. Thinks that Philip Morris is asking for special privileges.

445

Tauman

Continues his testimony in opposition to SB 880A.

TAPE 213, A

030

Tauman

Continues his testimony in opposition to SB 880A.

097

Rep. Krummel

Asks if the bill was in effect, would the tobacco company have to post a bond of $15 million instead of $100 million.

131

Tauman

Answers, actually less than that. Explains that it would allow the tobacco companies to stop the running of the judgment.

130

Chair Williams

Closes the public hearing on SB 880A. Adjourns the meeting at 3:05 p.m.

 

 

EXHIBIT SUMMARY

 

A – SB 808A, -A4 amendments, submitted by staff, dated 5/30/03, 7 pgs.

B – HB 3630, -4 amendments, submitted by staff, dated 6/2/03, 10 pgs.

C – HB 3630, conceptual amendments to -4 amendments, 1 pg.

D – HB 3630, 2nd set of conceptual amendments to -4 amendments, 1 pg.

E – HB 3630, -5 amendments, submitted by Rep. Anderson, dated 6/20/03, 11 pgs.

F – SB 880A, -A5 amendments, submitted by staff, dated 5/28/03, 1 pg.

G – SB 880A, hand-engrossed bill with the -5 amendments, submitted by staff, 3 pgs.

H – SB 880, written testimony, submitted by Jim Gardner, 1 pg.

I – SB 880A, conceptual amendment, submitted by Pete Shepherd, 1 pg.

J – SB 880, written testimony of Richard G. Schwarz, M.D., submitted by Chuck Tauman, 2 pgs.