SENATE COMMITTEE ON JUDICIARY

February 11, 2003 Hearing Room 343

8:00 AM Tapes 23-24

MEMBERS PRESENT: Sen. John Minnis, Chair

Sen. Ted Ferrioli

Sen. Charlie Ringo

Sen. Charles Starr

Sen. Vicki Walker

MEMBER EXCUSED: Sen. Burdick

STAFF PRESENT: Bill Joseph, Counsel

Jane Bodenweiser, Committee Assistant

MEASURE/ISSUES HEARD: LC’s 1502, 2221, 2222

SB 136 Public Hearing

SB 101 Public Hearing

SB 86 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 23, A
003	Chair Minnis	Calls the meeting to order at 8:07 a.m.
006	Bill Joseph	Committee Counsel. Introduces LC 1502, 2221 and 2222 (EXHIBITS A-C).
020	Sen. Walker	MOTION: Moves LC's: 1502, 2221, 2222 BE INTRODUCED as committee bills.
		VOTE: 4-0-2 EXCUSED: 2 - Sen. Burdick, Sen. Ferrioli
025	Chair Minnis	Hearing no objection, declares the motion CARRIED.
028	Chair Minnis	Opens a public hearing on SB 136.
SB 136 – PUBLIC HEARING
038	Peter Threlkel	Corporate Division, Secretary of State’s Office. Submits testimony and testifies in support of SB 136 which permits Secretary of State to cancel or refuse to accept certain wrongful filings under Uniform Commercial Code-Secured Transactions (EXHIBIT D).
106	Bradd Swank	State Court Administrator’s Office. Testifies as neutral on SB 136 and suggests a small change.

133	Chair Minnis	Closes the public hearing on SB 136 and opens a public hearing on SB 101.
SB 101 – PUBLIC HEARING
142	Thomas Castle	Department of Justice. Testifies in support of SB 101 which allows public servant or public servant’s employer to seek injunction against person engaging in conduct constituting specified crimes.
189	Ted Lorensen	Department of Forestry. Testifies in support of SB 101.
223	Chair Minnis	Asks about the crimes covered by this bill.
226	Castle	Explains the kinds of crimes.
241	Sen. Ferrioli	Asks if prosecutors will prosecute these crimes.
251	Castle	Says if there is probable cause, they will most likely be prosecuted.
276	Andrea Meyer	American Civil Liberties Union (ACLU). Testifies in opposition to SB 101.
293	Castle	Explains due process.
305	Chair Minnis	Closes the public hearing on SB 101 and opens a public hearing on SB 86.
SB 86 – PUBLIC HEARING
319	Sen. Charlie Ringo	Senate District 17. Testifies in support of SB 86 which modifies law that requires award of attorney fees to prevailing plaintiff in certain tort action.
459	Rep. Dennis Richardson	House District 4. Testifies in support of SB 86.
TAPE 24, A
073	John Powell	Representing State Farm and North Pacific Insurance Companies. Testifies in opposition to SB 86 and introduces Tom Mortland and Steve Murrell.
083	Thomas Mortland	North Pacific Insurance Co. Submits testimony and testifies in opposition to SB 86 (EXHIBIT E).
154	Sen. Starr	Asks when the $5500 limit was established.
160	Mortland	Responds that it was 1999.
165	Chair Minnis	Asks about previous increases.
169	Powell	Says it has been a long time.
183	Sen. Ringo	Questions some of the statistics on auto damage claims paid.
188	Mortland	Explains the figures.
216	Sen. Ringo	Asks how the 10-day demand letter is handled.
222	Mortland	Discusses the demand letter.
240	Sen. Ringo	Asks about extending the time limit on the demand letter.
244	Mortland	Says it may defeat the purpose of the original statute.
254	Sen. Ringo	Agrees that the time limit on higher-end claims would be appropriate.
264	Steve Murrell	State Farm Insurance Co. Testifies in opposition to SB 86.
317	Chair Minnis	Asks for examples of those not represented by insurance.
322	Murrell	Explains those who are not.
330	Powell	States that most insurance claims settle promptly. Addresses what is considered a small claim.
354	Chair Minnis	Asks about capping attorney fees.
358	Powell	Responds that the purpose of this statute was to address only small claims.
368	Sen. Ringo	Wonders how a plaintiff gets justice when an examiner refuses to pay.
380	Powell	Clarifies the system provides options.
393	Sen. Ringo	States his experience with adjustors who deal unfairly with people.
402	Chair Minnis	Asks if there is an appeal process.
405	Mortland	Says there are standards of fairness.
434	John Clements	Safeco Insurance Co. Submits testimony and testifies in opposition to SB 86 (EXHIBIT F).
TAPE 23, B
069	Sen. Ringo	Asks about medical bills being handled through arbitration.
072	Clements	Explains arbitration of medical bills.
078	Sen. Ringo	Discusses the demand letter and what it must include.
108	Chair Minnis	Talks about response time to a demand letter.
114	Shawn Miller	National Association of Independent Insurers (NAII). Testifies in opposition to SB 86.
138	Gary Rankin	Allstate Insurance Company. Testifies in opposition to SB 86.
226	Sen. Walker	Asks for clarification of suggested changes to the statute.
236	Rankin	Clarifies his suggested changes.
291	Sen. Ringo	Asks if additional documentation would be satisfactory with the increase to $10,000.
294	Rankin	Says, no.
281	Sen. Ringo	Discusses attorney’s fees.
324	Rankin	Wonders about the need for the increase.
341	Bill Sime	Oregon Association of Defense Counsel. Testifies as neutral on SB 86. Discusses the history of this legislation.
TAPE 24, B
014	Sen. Ringo	Comments that valid points have been raised.
018	Chair Minnis	Wonders who this statute applies to.
042	Sime	Says this is not a prevailing-party statute.
048	Sen. Ringo	Explains his understanding of the statute.
054	Chair Minnis	Says there are defects in the statute.
074	Sime	Explains his proposed changes.
087	Chair Minnis	Asks if there could be a subsequent claim after the claim has been paid.
092	Sen. Ringo	Explains action on a subsequent claim.
100	Sime	Further clarifies a subsequent claim.
117	Chair Minnis	Closes the public hearing on SB 86 and adjourns the meeting at 9:35 a.m.

EXHIBIT SUMMARY

A – LC 1502, submitted by staff, 2pp

B – LC 2221, submitted by staff, 1p

C – LC 2222, submitted by staff, 7 pp

D – SB 136, written testimony submitted by Peter Threlkel, 2 pp

E – SB 86, written testimony submitted by Thomas Mortland, 2 pp

F – SB 86, written testimony submitted by John Clements, 2 pp