SENATE COMMITTEE ON JUDICIARY

May 28, 2003 Hearing Room 343

8:00 AM Tapes 142 – 143

MEMBERS PRESENT: Sen. John Minnis, Chair

Sen. Ginny Burdick, Vice-Chair

Sen. Ted Ferrioli

Sen. Charlie Ringo

Sen. Charles Starr

Sen. Vicki Walker

STAFF PRESENT: Bill Taylor, Counsel

Jane Bodenweiser, Committee Assistant

MEASURE/ISSUES HEARD: SJR 2 Work Session

HB 2118A Public Hearing and Work Session

HB 2278B Public Hearing

HB 3351 Public Hearing and Work Session

HB 2647A Public Hearing and Work Session

SB 297 Work Session

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 142, A
003	Chair Minnis	Calls the meeting to order at 8:30 a.m. and opens a work session on SJR 2.
SJR 2 WORK SESSION
010	Vice Chair Burdick	MOTION: Moves SJR 2 to the floor WITHOUT RECOMMENDATION as to passage and BE REFERRED to the committee on Revenue.
015	Committee	Discusses the reason for the referral to Revenue Committee.
		VOTE: 5-0-1 EXCUSED: 1 - Walker
020	Chair Minnis	Hearing no objection, declares the motion CARRIED.
022	Chair Minnis	Closes the work session on SJR 2 and opens a public hearing on HB 2118A.
HB 2118A PUBLIC HEARING
025	Pete Shepherd	Deputy Attorney General. Testifies in support of HB 2118A that expands circumstances under which order authorizing use of pen register or trap and trace device may be entered.
070	Vice Chair Burdick	Clarifies which offenses are considered racketeering.
073	Shepherd	Summarizes the list of offenses.
085	Chair Minnis	Closes the public hearing on HB 2118A and opens a work session.
HB 2118A WORK SESSION
090	Vice Chair Burdick	MOTION: Moves HB 2118A to the floor with a DO PASS recommendation.
		VOTE: 5-0-1 EXCUSED: 1 - Walker
095	Chair Minnis	Hearing no objection, declares the motion CARRIED. SEN. FERRIOLI will lead discussion on the floor.
112	Chair Minnis	Closes the work session on HB 2118A and opens a public hearing on HB 2278B.
HB 2278B PUBLIC HEARING
116	Wendy Johnson	Oregon Law Commission. Submits report Public Body: Special District Provisions (EXHIBIT A); and testifies in support of HB 2278B that provides consistent terminology for public bodies in laws relating to districts.
131	Dave Heynderickx	Legislative Counsel. Testifies in support of HB 2278B.
167	Chair Minnis	Closes the public hearing on HB 2278B and opens a public hearing on HB 3351.
HB 3351 PUBLIC HEARING
170	John Powell	Oregon State Sheriffs Association. Testifies in support of HB 3351 that allows notary public to rely on identification of confined person by correctional facility as satisfactory evidence upon which to identify person and introduces the -2 amendments (EXHIBIT B).
180	Chair Minnis	Asks how often the problem comes up.
185	Powell	Comments on the frequency of the problem.
192	Chair Minnis	Closes the public hearing on HB 3351, and opens a work session on HB 3351.
HB 3351 WORK SESSION
195	Vice Chair Burdick	MOTION: Moves to ADOPT HB 3351-2 amendments dated 05/05/03.
		VOTE: 5-0-1 EXCUSED: 1 - Walker
200	Chair Minnis	Hearing no objection, declares the motion CARRIED.
205	Vice Chair Burdick	MOTION: Moves HB 3351 to the floor with a DO PASS AS AMENDED recommendation.
		VOTE: 5-0 EXCUSED: 1 - Walker
210	Chair Minnis	Hearing no objection, declares the motion CARRIED. SEN. RINGO will lead discussion on the floor.
215	Chair Minnis	Closes the work session on HB 3351, and opens a public hearing on HB 2647A.
HB 2647A PUBLIC HEARING
245	Scott Taylor	Oregon Department of Corrections. Submits testimony and testifies in support of HB 2647A that establishes intensive alternative incarceration addiction program (EXHIBIT C).
284	Vice Chair Burdick	Asks whether the Summit Program is an addition program.
291	Taylor	Indicates the Summit Program is not.
294	Vice Chair Burdick	Asks about the success of such programs around the country.
301	Taylor	Says there is not another program like this in the nation.
310	Chair Minnis	Closes the public hearing on HB 2647A and opens a work session on HB 2647A.
HB 2647A WORK SESSION
315	Chair Minnis	Points out the fiscal impact of the bill, and mentions the need to rescind the referral to Ways and Means.
320	Vice Chair Burdick	MOTION: Moves HB 2647A to the floor with a DO PASS recommendation and the SUBSEQUENT REFERRAL to the committee on Ways and Means BE RESCINDED.
		VOTE: 4-0-2 EXCUSED: 2 - Ringo, Walker
325	Chair Minnis	Hearing no objection, declares the motion CARRIED. SEN. BURDICK will lead discussion on the floor.
330	Chair Minnis	Closes the work session on HB 2647A and opens a work session on SB 297.
SB 297 WORK SESSION
339	Dave Fiskum	Port of Portland. Testifies in support of the -3 amendments (EXHIBIT D) to SB 297 relating to contracts.
427	Bill Wyatt	Executive Director, Port of Portland. Testifies in support of SB 297 as amended.
TAPE 143, A
001	Wyatt	Continues with testimony in support of SB 297 as amended.
141	Tom Zelenka	The Schnitzer Group. Submits testimony and testifies in support of SB 297 as amended with the -3 amendments (EXHIBIT E).
238	Sen. Ringo	Asks if complaints have been filed with the State Insurance Commission.
250	Zelenka	Says they have not been able to get any satisfaction from the Insurance Commission. Continues testimony.
279	Vice Chair Burdick	Asks how the pollution issue is being handled.
288	Zelenka	Says they have documented those years when policies were excluding pollution issues. Says that prorates are used.
345	Wyatt	Talks about liability issues.
391	Mark Nelson	Oregon Metal Council. Testifies in support of SB 297.
TAPE 142, B
033	Sen. Ringo	Notes Page 3, section 3; wonders if the state is projecting law into a practical agreement between the insurer and insured.
046	Nelson	Comments on Sen. Ringo’s concern.
050	Chris Hermann	Stoel Rives, Portland, Oregon. Comments on Sen. Ringo’s concerns.
063	Vice Chair Burdick	Asks about the different responses from Washington and Oregon concerning this issue.
080	Hermann	Responds, outlining the differences between Washington and Oregon regarding this issue.
094	Jack Munro	American Insurance Association (AIA). Testifies in opposition to SB 297.
120	Chair Minnis	Clarifies that Mr. Munro is implying the legislature should stay out of the matter.
152	Bill Taylor	Committee Counsel. Questions Mr. Munro’s concerns.
169	Munro	Continues testimony in opposition suggesting there are some fairness and interpretation issues.
203	Vice Chair Burdick	Asks whether this issue would not come forward when the insurance companies produced the policies.
212	Munro	Further clarifies his concerns.
223	Chair Minnis	Contends that the final decision is going to be decided in court.
240	Munro	Gives an example of how this legislation would work.
265	Sen. Ringo	Asks if their objection is to the lost policy issue.
273	Munro	Further explains the AIA’s concerns and objections in regards to the lost policy issue.
297	Sen. Ringo	Clarifies that the AIA does object to the lost policy section. Further clarifies the AIA’s concerns.
305	Joel Ario	Oregon Insurance Division. Offers testimony regarding SB 297, and Mr. Munro’s concerns. Offers a hypothetical example.
322	Chair Minnis	Asks about limits in a policy written in 1956.
329	Ario	Further outlines the hypothetical situation.
338	Chair Minnis	Asks if there is an inflation clause.
341	Ario	Indicates there is no such limit.
350	Sen. Ringo	Asks about the “all sums” clause in context to the hypothetical example offered by Mr. Ario.
375	Ario	Illustrates the “all sums” issue in context to the hypothetical.
395	Vice Chair Burdick	Expresses doubt that this issue of concern would not be addressed by SB 297.
400	Ario	Comments on the relationship.
405	Vice Chair Burdick	Further questions the relationship.
416	Ario	Provides his interpretation of the relationship.
423	Chair Minnis	Closes the work session on SB 297. Indicates his wish to hear the bill again on Monday, and adjourns the meeting at 10:05 a.m.

EXHIBIT SUMMARY

A – HB 2278B, Public Body: Special District Provisions REPORT, Wendy Johnson, 8 pp.

B – HB 3351, -2 amendments, John Powell, 1 p.

C – HB 2647A, written testimony, Scott Taylor, 2 pp.

D – SB 297, -3 amendments, Dave Fiskum, 6 pp.

E – SB 297-3, written testimony, Tom Zelenka, 4 pp.