SENATE COMMITTEE ON JUDICIARY

 

June 11, 2003                                                                                                      Hearing Room 343

8:00 a.m.                                                                                                                   Tapes 160 - 161

 

MEMBERS PRESENT:         Sen. John Minnis, Chair

Sen. Ginny Burdick, Vice-Chair

Sen. Ted Ferrioli

Sen. Charlie Ringo

Sen. Charles Starr

 

MEMBER EXCUSED:          Sen. Vicki Walker

 

STAFF PRESENT:                 Craig Prins, Counsel

Bill Taylor, Counsel

Ann Martin, Committee Assistant

 

MEASURE/ISSUES HEARD:           HB 2409A Public Hearing and Work Session

                                                HB 2865A Work Session

                                                HB 2094A Public Hearing

                                                HB 2368B 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 160, A

003

Chair Minnis

Calls the meeting to order at 8:24 a.m. Opens a public hearing on HB 2409A.

HB 2409A PUBLIC HEARING

009

Craig Prins

Committee Counsel. Introduces HB 2409A which provides that Supreme Court has exclusive jurisdiction to decide appeal of certain actions filed before January 1, 2003, in which one or more cities or counties are plaintiffs, State of Oregon is defendant and appeal relates to decision of trial court on one or more claims challenging manner in which Public Employees Retirement System is administered.

0024

Chair Minnis

Closes the public hearing on HB 2409A and opens a work session.

HB 2409A WORK SESSION

026

Vice Chair Burdick

MOTION:  Moves HB 2409A to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  4-0-2

EXCUSED:  2 - Ringo, Walker

030

Chair Minnis

Hearing no objection, declares the motion CARRIED.

SEN. MINNIS will lead discussion on the floor.

031

Chair Minnis

Closes the work session on HB 2409A and opens a work session on HB 2865A.

 

HB 2865A WORK SESSION

032

Craig Prins

Committee Counsel. Introduces HB 2865A which allows district attorney to treat certain nonperson felonies as Class A misdemeanors. Discusses the –A7 amendments (EXHIBIT A).

040

Chuck French

District Attorney, Multnomah County District Attorneys Office. Testifies in support of HB 2865A.

069

Kelly Skye

Oregon Criminal Defense Lawyers Association. Says she is satisfied with the –A7 amendments.

080

Vice Chair Burdick

MOTION:  Moves to ADOPT HB 2865A-7 amendments dated 06/06/03.

 

 

VOTE:  5-0-1

EXCUSED:  1 - Walker

081

Chair Minnis

Hearing no objection, declares the motion CARRIED.

083

Vice Chair Burdick

MOTION:  Moves HB 2865A to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  5-0-1

EXCUSED:  1 - Walker

085

Chair Minnis

Hearing no objection, declares the motion CARRIED.

SEN. RINGO will lead discussion on the floor.

094

Chair Minnis

Closes the work session on HB 2865A and opens a public hearing on HB 2368B and HB 2094A.

HB 2094A and HB 2368B PUBLIC HEARING

101

Rep. Phil Barnhart

Representative, House District 11. Testifies in support of HB 2368B which makes technical and administrative changes to cigarette and tobacco products taxes to facilitate administration and enforcement.

158

Pete Shepherd

Deputy Attorney General, Department of Justice. Submits testimony and testifies on HB 2368B. Discusses the –B15, -B16, -B17, -B18, -B19, and –B20 amendments to HB 2368B (EXHIBITS B-G).

Submits testimony and testifies on HB 2094A which requires tobacco product manufacturers to report certain information to Attorney General. Discusses the -A5, -A6, -A7 amendments and says the -A8 amendments have been superceded by the -A9 amendments (EXHIBITS H-K). Explains charts for both bills (EXHIBITS L & M).

300

Matt Macauley

Assistant Attorney General, Department of Justice, Organized Crime Section. Submits testimony and testifies on HB 2368B and talks about the Oregon Tobacco Compliance Task Force (EXHIBIT N).

339

Sen. Ferrioli

Discusses bill. Asks about loss of revenue from tobacco products.

384

Macauley

Says that he would like to discuss that later. Continues his testimony.

390

Sen. Ferrioli

Comments that someday that discussion needs to happen.

393

Macauley

Says that the task force has confirmed that we are losing between 30 and 40 percent in revenue in contraband products. Discusses loss of revenue from intrastate smuggling, Internet and transnational organized crime elements.

 

TAPE 161, A

003

Macauley

Continues his testimony on HB 2368B.

015

Sen. Ferrioli

Says that the contraband products must not have been in mainstream distribution channels.

019

Macauley

Answers that the problem with other tobacco products is that they are not stamped.

042

Shepherd

Addresses the other issues of the bill. Talks about funding for the task force.

179

Shepherd

Testifies on HB 2094A. Discusses Non-Participating Manufacturer Law (NPM). Says they strongly support the –A9 amendments (Exhibit K).

276

Chair Minnis

Asks if they are talking about retailers.

282

Shepherd

Answers that this marketplace includes fairly distinct levels of distributors.

288

Chair Minnis

Asks if these penalties are applicable to a store that sells contraband products.

293

Macauley

Answers, yes.

302

Sen. Ferrioli

Asks if this case was approached from a RICO (Racketeer Influenced and Corrupt Organization) standpoint or as an isolated incident.

312

Macauley

Answers that this was an isolated incident.

339

Chair Minnis

Asks about the laws created in 2001 and sentencing of these crimes.

347

Macauley

Explains that there were felonies created last session, but this bill enhances the penalties.

389

Vice Chair Burdick

Asks about the –A5 amendments regarding an allocable share cap (Exhibit H).

399

Shepherd

Talks about the –A5 amendments.

432

Vice Chair Burdick

Says she appreciates Shepherd’s clear presentation. Asks about the private cause of action.

TAPE 160, B

010

Vice Chair Burdick

Asks about large companies driving small companies out of business.

014

Shepherd

Answers that if the companies are driven out of the marketplace because they are not complying then that would produces the positive public benefit of helping to enforce those statutes.

044

Vice Chair Burdick

Says that if they are just going out after the noncompliant companies and don’t want to harm the compliant companies, then why shouldn’t the responsibility be to file these suits with the Attorney General.

048

Shepherd

Explains that the original conception of HB 2368 did not include a private cause of action.

061

Vice Chair Burdick

Asks where the recoveries would go if an action is taken by the attorney general.

063

Shepherd

Responds that the recoveries would go into the general fund.

083

Sen. Ringo

Asks if Mr. Shepherd can quantify how important it is to enforce the laws with a private cause of action.

089

Shepherd

Explains that there are 3 ways in which a private cause of action would add some value to our enforcement effort.

120

Sen. Ringo

Asks for other examples of private rights of action.

122

Shepherd

Answers that another example would be the state’s unlawful trade practices act and the racketeering statute.

157

Chair Minnis

Recesses the public hearing on HB 2094A and HB 2368B and opens a work session on HB 2865A.

HB 2865A WORK SESSION

159

Craig Prins

Committee Counsel. Says that they need to adopt the –A5 amendments (EXHIBIT O).

168

Vice Chair Burdick

MOTION:  Moves to SUSPEND the rules for the purpose of RECONSIDERING the vote on HB 2865A.

 

 

VOTE:  5-0-1

EXCUSED:  1 - Walker

170

Chair Minnis

Hearing no objection, declares the motion CARRIED.

175

Vice Chair Burdick

MOTION:  Moves to RECONSIDER the vote by which HB 2865A was sent to the floor with a DO PASS AS AMENDED recommendation.

177

 

VOTE:  5-0-1

EXCUSED:  1 - Walker

179

Chair Minnis

Hearing no objection, declares the motion CARRIED.

179

Vice Chair Burdick

MOTION:  Moves to ADOPT HB 2865A-5 amendments dated 05/28/03.

182

Bill Taylor

Committee Counsel. Discusses –A5 amendments.

190

 

VOTE:  4-0-2

EXCUSED:  2 - Ferrioli, Walker

191

Chair Minnis

Hearing no objection, declares the motion CARRIED.

193

Vice Chair Burdick

MOTION:  Moves HB 2365A to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  5-0-1

EXCUSED:  1 - Walker

195

Chair Minnis

Hearing no objection, declares the motion CARRIED.

SEN. RINGO will lead discussion on the floor.

197

Chair Minnis

Closes the work session on HB 2865A and re-opens the public hearing on HB 2094A and HB 2368B.

HB 2094A and HB 2368B PUBLIC HEARING RE-OPENED

210

Marshall Coba

Council of Independent Tobacco Manufacturers of America (CITMA). Submits testimony and testifies on HB 2094A and HB 2368B (EXHIBITS P & Q).

224

Mr. Jim Deer

Legal Counsel, Singlestick Tobacco Company and USA Tobacco Distributing. Submits testimony and testifies on HB 2094A and HB 2368B (EXHIBIT R).

348

Deer

Continues his testimony on HB 2094A and HB 2368B.

TAPE 161, B

010

Deer

Continues his testimony on bill. Reads from Exhibit R.

133

Chair Minnis

Asks if the provision in Section 82, page 33, line 21 of HB 2368B would apply to his company. Asks why he would not want that power.

140

Deer

Addresses that question. Says that they are a small tobacco company and his litigation budget is small.

180

Chair Minnis

Closes the public hearing on HB 2094A and HB 2368B. Adjourns the meeting at 10:00 a.m.

 

 

EXHIBIT SUMMARY

 

A – HB 2865A, -A7 amendments, submitted by staff, dated 6/6/03, 2 pgs.

B – HB 2368B, -B15 amendments, submitted by staff, dated 5/27/03, 1 pg.

C – HB 2368B, -B16 amendments, submitted by staff, dated 5/27/03, 1 pg.

D – HB 2368B, -B17 amendments, submitted by staff, dated 5/28/03, 1 pg.

E – HB 2368B, -B18 amendments, submitted by staff, dated 5/28/03, 3 pgs.

F – HB 2368B, -B19 amendments, submitted by staff, dated 6/3/03, 2 pgs.

G – HB 2368B, -B20 amendments, submitted by staff, dated 6/6/03, 1 pg.

H – HB 2094A, -A5 amendments, submitted by staff, dated 5/12/03, 6 pgs.

I – HB 2094A, -A6 amendments, submitted by staff, dated 5/20/03, 1 pg.

J – HB 2094A, -A7 amendments, submitted by staff, dated 5/27/03, 1 pg.

K – HB 2094A, -A9 amendments, submitted by staff, dated 6/11/03, 2 pgs.

L – HB 2368A, chart, submitted by Pete Shepherd, 2 pgs.

M – HB 2094A, chart, submitted by Pete Shepherd, 1 pg.

N – HB 2368B, press release, submitted by Matt Macauley, dated 6/10/03, 2 pgs.

O – HB 2865A, -A5 amendments, submitted by staff, dated 5/28/03, 1 pg.

P – HB 2094A, written testimony, submitted by Marshall Coba, 2 pgs.

Q – HB 2368B, written testimony, submitted by Marshall Coba, 2 pgs.

R – HB 2094A, application for enforcement order, submitted by Jim Deer, 2 pgs.