SENATE COMMITTEE ON JUDICIARY

 

 

June 25, 2003                                                                                                      Hearing Room 343

8:00 a.m.                                                                                                                     Tapes 175-178

 

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:                 Craig Prins, Counsel

Jane Bodenweiser, Committee Assistant

 

 

MEASURE/ISSUES HEARD:           HB 3630A Public Hearing

                                                SB 655 Work Session

                                                HB 2368B 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 175, A

003

Chair Minnis

Calls the meeting to order at 8:15 a.m. and opens a public hearing on HB 3630A.

HB 3630A PUBLIC HEARING

008

Rep. Max Williams

House District 35.  Testifies in support of HB 3630A that requires State Accident Insurance Fund Corporation (SAIF) to establish reinsurance program for medical professional liability policies of certain rural doctors.

074

Sen. Walker

Asks why tagging this issue would be problematic over the long term.

080

Rep. Williams

Explains that it was suggested in his discussions with the Governor’s office. Continues testimony in support of HB 3630A.

147

Sen. Ferrioli

Says he likes the concept of this bill, but wonders why SAIF was chosen.

162

Rep. Williams

Explains that it is in part because SAIF is an instrument of the State.

187

Sen. Ferrioli

Says he believes it is very important that it is clear why this is a good nexus.

225

Karen Whitaker

Oregon Health & Science University, Office of Rural Health.  Submits testimony and testifies in support of HB 3630A (EXHIBIT A).


 

353

Vice Chair Burdick

Asks about the incentives that are still available in rural areas.

363

Whitaker

Lists the various programs available to physicians in rural areas.

390

Cory Streisinger

Director, Department of Consumer and Business Services.  Submits testimony and testifies in support of HB 3630A (EXHIBIT B).

TAPE 176, A

042

Sen. Walker

Asks where the premium assessment excess has come from to fund this program.

048

Streisinger

Explains that collections have exceeded expectations because of September 11, 2001.

079

Sen. Walker

Asks if the program can still be funded with a reduction of premium assessment.

084

Streisinger

Says, yes.

106

Chair Minnis

Clarifies that this money is not a part of the SAIF reserves.

111

Streisinger

Agrees.  Continues testimony in support of HB 3630A.  Asks for adoption of the –A7 amendments (EXHIBIT C).

174

Sen. Walker

Asks for clarification of the term “financial reinsurance.”

186

Streisinger

Explains that it is a tool that SAIF needs to have available in order to take some risk.

219

Chris Veiger

SAIF Corporation.  Testifies in support of HB 3630A.

242

John DiLorenzo

Oregonians for Sound Economic Policy, Inc. (OSEP).  Submits testimony and testifies as neutral on HB 3630A.  Says he is not opposed to the concept, but is opposed to the participation by SAIF (EXHIBIT D).

TAPE 175, B

018

Vice Chair Burdick

Asks if the SAIF amendment to HB 3092 solves the problem of disclosure from SAIF.

025

DiLorenzo

Says, yes, if the amendment survives the conference committee.

035

Sen. Ringo

Asks what the concern is in the –A7 amendments.

041

DiLorenzo

Says it is the “‘may’ consist of financial reinsurance” in the –A7 amendments that may be problematic.

074

Sen. Ringo

Asks about oversight and disclosure as two separate issues.

082

DiLorenzo

Believes that adequate disclosure is not sufficiently addressed.

105

Scott Gallant

Oregon Medical Association.  Testifies in support of HB 3630A, and the –A7 and –A8 amendments (EXHIBIT E).

239

Sen. Walker

Expresses her concern about SAIF’s expansion of authority.

255

Gallant

Believes this is not the vehicle for dealing with that concern.

302

Richard Lane

Oregon Trial Lawyers Association.  Testifies in support of HB 3630A.

426

Paul Cosgrove

Reinsurance Association of America.  Testifies in support of HB 3630A and submits a hand-engrossed version of the –A8 amendments (EXHIBIT F).

TAPE 176, B

029

Chair Minnis

Asks why SAIF was chosen to administer the program.

033

Streisinger

Explains that this is an insurance program and SAIF is the insurance company owned by the state, and which the Legislature has the power to direct.

056

Sen. Walker

Asks about adding the disclosure requirement that was put into HB 3630.

064

Streisinger

Believes that it may not be appropriate in this bill.

076

Sen. Walker

Believes that if we are expanding the authority of SAIF there needs to be more oversight by the Legislature.

081

Chair Minnis

Asks to whom information would be prepared and provided by SAIF.

088

Streisinger

Says the information would be provided to the Department of Consumer and Business Services.

090

Chair Minnis

Asks if the legislature would have access to that information.

091

Streisinger

Believes it would be available to the Legislative Assembly and members of the public.

094

Chair Minnis

Asks about the SAIF public records issue and the Court of Appeals ruling.

100

Streisinger

Says she does not know what the status is.

105

DiLorenzo

Explains there is a stay order pending appeal.

126

Sen. Ringo

Says he is willing to risk adding the proposed –A9 amendments.

150

Chair Minnis

Closes the public hearing on HB 3630A and opens a work session on SB 655.

SB 655 WORK SESSION

158

Sen. Walker

Introduces SB 655 that creates crime of unlawful trafficking in communication or access devices.  Says the -1 amendments constitute a “gut and stuff” of SB 828 (EXHIBIT G).

189

Vice Chair Burdick

MOTION:  Moves to ADOPT SB 655-1 amendments dated 5/27/03.

 

 

VOTE:  5-0-1

EXCUSED:  1 - Sen. Ringo

194

Chair Minnis

Hearing no objection, declares the motion CARRIED.

195

Vice Chair Burdick

MOTION:  Moves SB 655 to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  5-0-1

EXCUSED:  1 - Sen. Ringo

228

Chair Minnis

Hearing no objection, declares the motion CARRIED.

SEN. WALKER will lead discussion on the floor.

236

Chair Minnis

Closes the work session on SB 655 and recesses the meeting until 3:00 p.m.

238

Chair Minnis

Reconvenes the meeting at 3:07 p.m.  Opens a work session on HB 2368B which makes technical and administrative changes to cigarette and tobacco products taxes to facilitate administration and enforcement.


 

HB 2368B WORK SESSION

240

Craig Prins

Committee Counsel. Goes through a section-by-section analysis of HB 2368B prepared by Pete Shepherd, Department of Justice (EXHIBIT H). 

390

Sen. Walker

Asks why a particular section was changed from four years to five.

394

Prins

Replies that he does not know.

404

Pete Shepherd

Deputy Attorney General.  Also does not know why.  Introduces Mathew McCauley from the Tobacco Compliance Task Force division of the Department of Justice.

407

McCauley

Department of Justice.  Says the number was changed from four to five years for record-keeping requirements.

427

Sen. Walker

Responds records are kept for three years for tax purposes.

432

McCauley

Thinks the five-year recommendation was used because RICO (Racketeer Influenced and Corrupt Organization) prosecutions are five years on the statute of limitations.

507

Prins

Continues his section-by-section analysis of the bill. 

TAPE 177, A

035

Sen. Ringo

Asks for the rationale behind Marion County being the venue.

039

Shepherd

Explains the rationale as being that the tax is due to the Department of Revenue in Salem.

048

McCauley

Explains that there was some ambiguity as to the venue being in Marion County and this statute would clarify that.

053

Sen. Ringo

Asks if this applies to the private right of action venue.

060

McCauley

Says he does not believe there is a private right of action statutorily existing in ORS 323 or HB 2368B.

084

Prins

Continues his section-by-section analysis of HB 2368B.

070

Shepherd

Refers to Section 82 that deals with private cause of action; says Section 26 would not apply to that claim.

080

Prins

Continues his section-by-section analysis of the bill. 

097

Chair Minnis

Returns to the “private right of action” issue in Section 75.

120

Prins

Points out that Section 75 refers to the person accepting the order for delivery.  Continues his section-by-section analysis of the bill specifically referring to tobacco products. 

195

Prins

Continues his section-by-section analysis of the bill. 

230

Sen. Ringo

Asks how physical evidence is defined.

235

Prins

Says an electronic notice would be sent out, but the certification is on paper.

242

Vice Chair Burdick

Asks what the penalty is for lying about one’s age to purchase cigarettes over the Internet.

255

Shepherd

Explains the infraction would be minor in possession of tobacco which carries a small fine.

267

Vice Chair Burdick

Asks what the fine is for delivery to a minor.

272

Shepherd

Explains the remedies for delivery are in Section 81 on page 32 and 33 and are in addition to sanctions currently provided in law.

311

Vice Chair Burdick

Wonders how the $10,000 fine would be carried out.

316

Shepherd

Doesn’t believe new penalties are being prescribed for minors.

345

Prins

Says he will clarify that portion with the Department of Revenue.

365

Sen. Walker

Questions Section 76 and the notice of tax liability, wonders how the tax is collected or paid.

369

Shepherd

Describes Section 76, page 30, lines 41-42 which refers to Section 77, subsection 4 which tells how the tax is to be paid. 

375

Sen. Walker

Asks about the Distributor paying tax to the State of Oregon, and their liability.

415

Shepherd

Explains how the tax is collected from the distributor.

420

Sen. Ringo

Questions Section 76 and reference to the age of the purchaser, and says nowhere does it mention Internet sales to minors.

438

Shepherd

Describes how Internet sales to minors have developed into a problem.

447

Sen. Ringo

Asks if 15 year olds are buying cigarettes through the Internet.

460

Shepherd

Describes Internet sales to minors.

468

Prins

Continues his section-by-section analysis of the bill.

TAPE 178, A

007

Prins

Concludes his section-by-section analysis of the bill.

045

Prins

Describes the -B15 amendments from Bill Linden (EXHIBIT I); -B16 amendments from Jim Gardner (EXHIBIT J); and the-B17 amendments that amend Section 82 (EXHIBIT K).

087

Sen. Walker

Asks if -B17 amendments restrict “BIG” tobacco from suing.

090

Chair Minnis

Wants to get through all the amendments before questions.

092

Prins

Continues describing the amendments -B18 (EXHIBIT L); -B19 conflict amendments (EXHIBIT M); -B20 amendments from Mark Nelson (EXHIBIT N); -B21 from Marshall Coba (EXHIBIT O);  the –B22 from the American Cancer Society with a sunset clause (EXHIBIT P); and-B23 from the American Cancer Society and the American Heart Association (EXHIBIT Q).

136

Vice Chair Burdick

Clarifies that the –B23 amendments would be applied only if there is a task force.

139

Prins

Says the –B24 amendments are from Sen. Burdick (EXHIBIT R); and the –B26 amendments are from Sen. Ringo (EXHIBIT S).

174

Chair Minnis

Beginning with –B19 amendments looks for clear consensus.

185

Vice Chair Burdick

MOTION:  Moves to ADOPT HB 2368B-B19 amendments dated 06/03/03.

 

 

VOTE:  5-0-1

EXCUSED:  1 - Sen. Ferrioli

223

Chair Minnis

Hearing no objection, declares the motion CARRIED.

230

Chair Minnis

Asks if there is support for B15 amendments.

234

Bill Linden

R.J. Reynolds.  Clarifies why these amendments are needed.


 

255

Vice Chair Burdick

MOTION:  Moves to ADOPT HB 2368-B15 amendments dated 05/27/03.

 

 

VOTE:  5-0-1

EXCUSED:  1 - Sen. Ferrioli

260

Chair Minnis

Hearing no objection, declares the motion CARRIED.

263

Prins

Explains the –B16 amendments.

274

Vice Chair Burdick

Expresses her concern for the B16 amendments.

276

Sen. Ringo

Expresses his ambivalence for these amendments.

291

Jim Gardner

Philip Morris.  Explains these amendments remove language from the bill that they originally proposed.

303

Sen. Ringo

Confirms that Oregon cannot oppose separate labeling requirements.

308

Sen. Walker

Agrees with using the -B16 amendments.

318

Sen. Starr

MOTION:  Moves to ADOPT HB 2368-B16 amendments dated 05/27/03.

 

 

VOTE:  5-0-1

EXCUSED:  1 - Sen. Ferrioli

320

Chair Minnis

Hearing no objection, declares the motion CARRIED.

323

Prins

Explains the –B22 amendments.

339

Vice Chair Burdick

MOTION:  Moves to ADOPT HB 2368B-B22 amendments dated 06/16/03.

 

 

VOTE:  5-0-1

EXCUSED:  1 - Sen. Ferrioli

342

Chair Minnis

Hearing no objection, declares the motion CARRIED.

352

Chair Minnis

Asks the committee to consider the B18 and B23 amendments together.

359

Sen. Walker

Expresses her concerns about setting up another task force rather than using the resources already available.

370

Shepherd

Discusses expenses associated with the task force.  Feels the task force would have no significant fiscal impact on the Department of Justice (DOJ).

389

Sen. Walker

Asks if there is currently oversight for the Master Settlement Agreement.

393

Shepherd

Responds, no.

414

Sen. Ringo

Refers to recommendations he was given by DOJ.

420

Shepherd

Agrees there are good ideas in the Attorney General’s report that are not being implemented.

434

Chair Minnis

Asks Sen. Burdick to explain the –B24 amendments.

440

Vice Chair Burdick

Explains that the –B24 amendments stop Internet sales of tobacco to minors.

TAPE 177, B

030

Mark Nelson

R. J. Reynolds.  Clarifies that R. J. Reynolds does not sell on the Internet, and only one vendor uses this approach.


 

048

Vice Chair Burdick

Clarifies that the purpose of this legislation is to verify the age of the person purchasing the tobacco products.  She is willing to work with Mr. Nelson on these amendments.

068

Chair Minnis

Asks Sen. Ringo to explain the –B26 amendments.

070

Sen. Ringo

Explains the origin of the B26 amendments.

097

Chair Minnis

Asks for the timeline for implementation.

098

Sen. Ringo

Says upon implementation of the bill.

104

Mark Nelson

Seven-Eleven Corporation.  Says all tobacco products are behind the counter in 7-11’s.  Says the Oregon Grocery Association brought opposition last session to this type of amendment.

121

Gardner

Says a provision like this is on his list of pro-active measures to pursue.

133

Richard Kosesan

Oregon Neighborhood Store Association. Explains how some small grocers do not have the space to move all these products behind the counter, even though the industry is heading in that direction already. 

156

Vice Chair Burdick

Expresses her support for this amendment.

170

Chair Minnis

Says he could support this amendment if it had a future date for implementation.

181

Sen. Ringo

Suggests nine months to a year.

184

Chair Minnis

Asks if there is an emergency clause.

185

Vice Chair Burdick

Replies, no.

191

Chair Minnis

Suggests drafting an implementation date.

194

Sen. Ringo

Suggests June 1, 2004.

196

Sen. Walker

Likes July.

212

Chair Minnis

Says the amendments adopted will be combined and other amendments looked at on a later date. 

219

Chair Minnis

Closes the work session on HB 2368B and adjourns the meeting at 4:25 p.m.

 

 

EXHIBIT SUMMARY

 

A – HB 3630A, written testimony submitted by Karen Whitaker, 8 pp

B – HB 3630A, written testimony submitted by Cory Streisinger, 6 pp

C – HB 3630A, -A7 amendments submitted by staff, 2 pp

D – HB 3630A, written testimony submitted by John DiLorenzo, 6 pp plus booklet

E – HB 3630A, -A8 amendments submitted by staff, 1 p

F – HB 3630A, -A8 amendments hand-engrossed and submitted by Paul Cosgrove, 1p

G – SB 655, -1 amendments submitted by staff, 2 pp

H – HB 2368B, written material prepared by Pete Shepherd and submitted by staff, 10 pp

I – HB 2368B, -B15 amendments submitted by staff, 1p

J – HB 2368B, –B16 amendments submitted by staff, 1 p

K – HB 2368B, -B17 amendments submitted by staff, 1 p

L – HB 2368B, -B18 amendments submitted by staff, 3 pp

M – HB 2368B, -B19 amendments submitted by staff, 2 pp

N – HB 2368B, -B20 amendments submitted by staff, 1 p

O – HB 2368B, -B21 amendments submitted by staff, 1 p

P – HB 2368B, -B22 amendments submitted by staff, 5 pp

Q – HB 2368B, -B23 amendments submitted by staff, 3 pp

R – HB 2368B, -B24 amendments submitted by staff, 1 p

S – HB 2368B, -B26 amendments submitted by staff, 1 p