HOUSE COMMITTEE ON

BUSINESS, LABOR, AND CONSUMER AFFAIRS

 

 

June 01, 2005 Hearing Room B

8:00 A.M. Tapes  150 - 152

Corrected 10/03/05

MEMBERS PRESENT:            Rep. Alan Brown, Chair

Rep. Sal Esquivel, Vice-Chair

Rep. Mike Schaufler, Vice-Chair

Rep. Paul Holvey

Rep. George Gilman

Rep. Derrick Kitts

Rep. Chip Shields

 

STAFF PRESENT:                  Janet Adkins, Committee Administrator

Katie Howard, Committee Assistant

 

 

MEASURES/ISSUES HEARD:        

HB 3456 – Public Hearing

SB 15 – Work Session

SB 118A – Public Hearing

SB 585A – Public Hearing and Work Session

SB 323 – Work Session

SB 638 – 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 150, A

003

Chair Brown

Calls the meeting to order at 8:10 a.m.  Opens the public hearing on HB 3456. 

HB 3456 – PUBLIC HEARING

007

Janet Adkins

Committee Administrator.  Explains HB 3456.

013

Scott Gallant

Oregon Medical Association. Speaks in support of HB 3456.  Introduces other panelists. 

025

Paul Meunier

Oregon Medical Association.  Submits and reads written testimony in support of HB 3456 (EXHIBIT A).  Explains how preferred provider status works when relating to insurance payments.  Talks about the panel of preferred providers. 

078

Meunier

Talks about his termination from a major medical panel and how this is detrimental to his patients because it took away their ability to choose whom they wanted to see.  Reads quote from a resolution that was approved by the Oregon Medical Association opposing “medical credentialing”. 

121

Mike Crew

General Counsel, Oregon Medical Association.  Talks about the establishment of preferred providers in the medical insurance industry.  States patients are paying a penalty if their physician or medical care provider is not on the health plan.  Says that HB 3456 will not affect the quality of physicians. 

176

Crew

Says that many parts of the state do not have adequate physician panels.  Mentions an example in Medford.  Believes that economic creditialing increases insurance companies’ profits. 

208

John Powell

Regency Blue Cross Blue Shield.  Says that HB 3456 is written too broadly and speaks in opposition to HB 3456.  Indicates that HB 3456 would undermine insurance companies ability to negotiate with physicians.

227

Rep. Schaufler

Asks for justification for why when the physician’s rates were increased when he was terminated and why the co-pay was doubled.

234

Powell

States that the particular incident did not involve Regency Blue Cross Blue Shield. 

241

Chair Brown

Closes the public hearing on HB 3456 and opens the work session on SB 15 for the purpose of reconsidering the vote.

SB 15 – RECONSIDERATION AND WORK SESSION

245

Rep. Esquivel

MOTION:  Moves to SUSPEND the rules for the purpose of reconsidering SB 15.

247

 

VOTE:  6-0-1

EXCUSED:  1 - Kitts

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

250

Rep. Schaufler

MOTION:  Moves to RECONSIDER the vote by which SB 15 was moved to the floor with a DO PASS AS AMENDED recommendation.

252

 

VOTE:  6-0-1

EXCUSED:  1 - Kitts

 

Chair Brown

Hearing no objection, declares the motion CARRIED and opens a work session on SB 15.

271

Chair Brown

Submits the -2 amendments (EXHIBIT B)

270

Rep. Schaufler

MOTION:  Moves to ADOPT SB 15-2 amendments dated 05/17/05.

278

 

VOTE:  6-0-1

EXCUSED:  1 - Kitts

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

281

Rep. Schaufler

MOTION:  Moves SB  15 to the floor with a DO PASS AS AMENDED recommendation.

284

 

VOTE:  6-0-1

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  1 – Kitts

(NOTE: Please see tape 150, A, page 5, of this tape log for Rep. Kitts’ vote.)

 

Chair Brown

The motion CARRIES.

390

Rep. Gilman

MOTION:  Moves SB 15, as amended, be placed on the CONSENT CALENDAR.

398

 

VOTE:  6-0-1

EXCUSED:  1 – Kitts

(NOTE: Please see tape 150, A, page 5, of this tape log for Rep. Kitts’ vote.  Rep. Holvey assigned as the carrier of SB 15 on page 5.)

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

300

Chair Brown

Closes the work session on SB 15.  Opens the public hearing on SB 118A. 

SB 118A – PUBLIC HEARING

306

Janet Adkins

Committee Administrator.  Explains SB 118A.  Submits the –A6 amendments (EXHIBIT D)

340

Joel Ario

Insurance Division Administrator, Department of Consumer and Business Services (DCBS).  Submits written testimony in support of SB 118A (EXHIBIT C).  Mentions that they have the support of everyone that has been contacted.  Says that it gives consumer the right to know about the use of claims histories.  Notes that it allows a claim to stay on a person’s record for up to five years.  Mentions that it puts policies in place for policy cancellations and renewals.  States that a person cannot lose their insurance for only making one claim in a five year period. 

407

Rep. Shields

Asks if the –A6 amendments are DCBS’s.

409

Ario

States that they are DCBS’s as well as consensus amendments.

415

Rep. Shields

Asks if DCBS is comfortable with the amendments.

417

Ario

Responds that they are comfortable with the amendments.

423

Rep. Esquivel

Asks if in the future a vehicle could be created to prevent insurance companies from putting a binder on a house that someone buys and then canceling the binder within 30 days.

TAPE 151, A

001

Ario

Says that realtors felt the timeline with insurance companies was working well.  Talks about the difficulties that insurance companies have when there is an expedited process.  States that electronic communication will help lessen the time period for the insurance check.

026

Rep. Esquivel

States that a notification period at the end of escrow should exist.

030

Ario

States that the realtors say that the system is already workable. 

041

John Powell

State Farm Insurance and Liberty Northwest.  Thanks the people who worked on the amendments.

053

Adkins

Submits letter on the behalf of Oregon Student Public Interest Research Group (EXHIBIT E).

055

Chair Brown

Closes the public hearing on SB 118A.  Opens the public hearing on SB 585A.

SB 585A – PUBLIC HEARING

058

Janet Adkins

Committee Administrator.  Explains SB 585A.  Submits the –A4 and –A6 amendments (EXHIBIT F and G)

092

Vern Saboe

Chiropractic Association of Oregon.  Speaks in support of SB 585A.  States that it clarifies language regarding situations where a person needs medical attention after an automobile accident so they can see the health provider of their choice.  Explains the –A4 and the –A6 amendments. 

118

John Powell

State Farm Insurance Companies.  Talks about the importance of the –A4 and --A6  amendments.  Reiterates Mr. Saboe’s testimony.

154

Rep. Kitts

Asks if chiropractic care would fall under the definition of care on line 11.

163

Powell

Says that the definition of managed care services does not deal with a specific provider of care but more of a systematic delivery of care.  States that an insurance company will not be able to require a person to go to a specific provider.

187

Rep. Kitts

Asks if SB 585A allows patients to be reimbursed for holistic medicine.

196

Powell

Talks about how the personal injury protection (PIP) benefit is broadly administered.  States that massage is usually reimbursed.

202

Rep. Kitts

Asks about naturopathic treatments being covered.

204

Powell

States that some would be reimbursed

210

Rep. Kitts

States that he will support SB 585A, but says that health care is rising because the definition of what can be covered under health insurance. 

233

Powell

States that Mr. Saboe has agreed to stay within the worker’s compensation fee schedule on a per treatment bases.

245

Rep. Holvey

Asks about the third party medical record review process and if the review party is an agent of the insurer.

257

Powell

Says that the insurance company would retain someone to review medical billings.

260

Rep. Holvey

States that SB 585A is referring to a third party review and does not seem to define the reviewer as being employed by the insurer.

272

Powell

Says the intent is that the third party reviewer is hired by the insurance company.

273

Doug Barber

Peace Health and the Hospital Association.  States that section five of SB 585A affects hospitals and insurers geting paid in relation to PIPs.  Believes that section five would prevent them from filing liens for PIP services.  Explains the reasons for the –A6 amendments.

296

George Okulitch

Oregon Trial Lawyers Association (OTLA).  Speaks in support of SB 585A and the –A6 amendments.

302

Chair Brown

Asks if the OTLA supports the –A4 amendments.

304

Okulitch

Responds that he is not prepared to speak to the –A4 amendments.

308

Chair Brown

Closes the public hearing on SB 585A and opens the work session on SB 585A. 

SB 585A – WORK SESSION

315

Rep. Holvey

MOTION:  Moves to ADOPT SB 585-A4 amendments dated 05/17/05 and SB 585-A6 amendments dated 05/26/05.

318

 

VOTE:  6-0-1

EXCUSED:  1 - Schaufler

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

325

Rep. Kitts

MOTION:  Moves SB 585A to the floor with a DO PASS AS AMENDED recommendation.

327

 

VOTE:  6-0-1

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  1 – Schaufler

(NOTE: Please see page 9, tape 152 A, of this tape log for Rep. Schaufler’s vote.)

 

Chair Brown

The motion CARRIES.

REP. KITTS will lead discussion on the floor.

340

Chair Brown

Closes the work session on SB 585A. Opens the work session for the purpose of allowing Rep. Kitts to vote on SB 15.

SB 15 – WORK SESSION

341

Rep. Shields

MOTION:  Requests unanimous consent that the rules be SUSPENDED to allow REP. KITTS to BE RECORDED as voting NAY on the motion to move SB  15 to the floor with a DO PASS AS AMENDED recommendation.

345

 

VOTE:  6-0-1

EXCUSED:  1 – Schaufler

(NOTE: Please see tape 151, A, page 2, of this tape log for the orginal vote.)

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

REP. HOLVEY will lead discussion on the floor.

367

Chair Brown

Closes the work session for the purpose of allowing Rep. Kitts to vote on SB 15.  Opens the work session on SB 323.

SB 323 – WORK SESSION

374

Janet Adkins

Committee Administrator.  Explains SB 323.  Submits the -5,-6, -7, and -9 amendments (EXHIBIT H, I, J, and K)

410

Grover Simmons

Travel Industry.  Speaks in opposition to the -9 amendments.  States that -9 amendments could restrict his group from participating.

TAPE 150, B

001

Grover Simmons

Shares concerns about the travel industry being excluded from the task force.

017

Chair Brown

States that, if he is the chair of the committee, Mr. Simmons will be included.

019

Roger Martin

Speaks in support of the Chair’s intent.

023

Tom Holt

Farmers Insurance Association.  Speaks in support of the Chair’s intent to make the -9 amendments permissive.

029

Tom Gallagher

Newspapers.  Has no comment.

034

Rep. Kitts

MOTION:  Moves to ADOPT SB 323-5 amendments dated 05/12/05.

038

Rep. Shields

States that he has concern about the -5 amendments suppressing wages.

042

Rep. Holvey

Expresses similar concern about the -5 amendments and speaks in opposition to the -5 amendments.

045

 

VOTE:  4-2-1

AYE:               4 - Esquivel, Gilman, Kitts, Brown

NAY:               2 - Holvey, Shields

EXCUSED:     1 - Schaufler

 

Chair Brown

The motion CARRIES.

055

Adkins

Explains the -6 amendments.

062

Rep. Brown

MOTION:  Moves to ADOPT SB 323-6 amendments dated 05/19/05.

063

 

VOTE:  6-0-1

EXCUSED:  1 – Schaufler

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

065

Rep. Kitts

MOTION:  Moves to ADOPT SB 323-9 amendments dated 05/31/05.

067

 

VOTE:  6-0-1

EXCUSED:  1 – Schaufler

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

068

Rep. Kitts

MOTION:  Moves SB 323 to the floor with a DO PASS AS AMENDED recommendation.

071

Rep. Kitts

Asks Rep. Shields and Rep. Holvey to explain the downward pressure on wages.

080

 

VOTE:  6-0-1

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  1 – Schaufler

(NOTE: Please see page 9, tape 152 A, of this tape log for Rep. Schaufler’s vote.)

 

Chair Brown

The motion CARRIES.

REP. KITTS will lead discussion on the floor.

085

Chair Brown

Committee stands at ease at 9:12 a.m. Re-calls the meeting to order at 9:20 a.m.  Closes the work session on SB 323.  Opens the public hearing on SB 638.

SB 638 – PUBLIC HEARING

088

Janet Adkins

Committee Administrator.  Explains SB 638 and submits the -1 amendments (EXHIBIT M).

100

Sen. Ryan Deckert

Senate District 14.  Submits written testimony in support of SB 638 (EXHIBIT N).  Talks about the restoration policy of state agencies.  Explains that if an employee in a management position is not working out then they can transfer an employee to another agency.  Indicated that the agency hire the employee even if no position exists for the individual.  Wants to end the restoration policy.

126

Chair Brown

Asks if the agency that receives the employee under the restoration policy has to keep the individual for a certain amount of time.

129

Sen. Deckert

Says that, in the instances that he is aware of, the state agency still has the employee.

138

Rep. Schaufler

Shares concern about a management employee not being able to become a classified worker if there is work there to be done.

153

Sen. Deckert

Believes that at-will-employment is a better policy.  Notes that the person would be able to re-apply for the position.

165

Rep. Schaufler

Asks if SB 638 would discourage people from progressing to management positions in state agencies.

180

Rep. Esquivel

Shares concern that a classified employee will not want to progress into management.

195

Sen. Deckert

Believes that private industry does not guarantee the old position if a person progresses to a new position.

214

Rep. Kitts

Concurs with Sen. Deckert’s position. 

230

Rep. Schaufler

Asks if the issue revolves around employee seniority.  States that the union folks are nodding their heads no.

240

Harvey Matthews

Associated Oregon Industries.  Speaks in support of SB 638 without the -1 amendment.  Says that the restoration policy is not needed.

252

Sen. Deckert

States that he supports SB 638 without the -1 amendments.

265

Mary Botkin

American Federation of State and County Municipal Employees.  Takes a neutral position of SB 638.  Shares a story with the committee.  Believes that it makes sense for members to be able to leave the bargaining unit and become management.   Wants people to be able to return to the bargaining unit.  Says that she does not know of a case where a former manager has had a job created solely for them. 

315

Botkin

Indicates that SB 638 will not get rid of a bad manager. 

332

Rep. Schaufler

Asks if SB 638 will conflict with collective bargaining agreement. 

341

Botkin

Says that collective bargaining agreements always supercede state law.

345

Rep. Schaufler

Speaks in support of collective bargaining agreements.

353

Rep. Kitts

Cautions Ms. Botkin about commenting on a senator’s intentions.

370

Botkin

Apologizes for statement and says that her past experience indicates that her comment may be true.

375

Rep. Holvey

Asks if an employee has moved up into management and has gone back to the bargaining unit.

387

Botkin

Says that she does not know. 

TAPE 151, B

009

Rep. Kitts

States that the language of SB 638 is permissive.

016

Rep. Holvey

Reads from Sen. Deckert’s testimony.  Counters that the language does not seem permissive.

025

Sue Wilson

Department of Administrative Services.  Submits written testimony in support of SB 638 with the -1 amendments (EXHIBIT O).

028

Lauri Warner

Acting Director, Department of Administrative Services (DAS).  Speaks in support of SB 638 with the -1 amendments.  Says that she has experience with the people coming out of management employement. 

038

Wilson

Says that two reasons can allow a person in a management position to be removed.  States that when a person does not like the management position a person has restoration rights.  Notes that if no work exists for the person then the person should be laid off.  Indicates that SB 638 takes away the ability of DAS to restore employees to old positions. 

073

Rep. Kitts

States that it does not take away the ability for a person to return to an old position.   Believes that SB 638 is permissive.

079

Wilson

Talks about how the collective bargaining agreements does not allow them to come back.  Says that the court has ruled that a “may” in the law is a “shall”.

093

Rep. Kitts

States that a court’s ruling about a may in one case does not mean that they will rule that all may’s are shall’s.

104

Wilson

States that there have been numerous cases and that it is the legal opinion of DAS counsel.

109

Chair Brown

Asks if the state will be able to demote an individual.

110

Wilson

Says that SB 638 would take away the option of restoring the individual.

116

Chair Brown

Asks if the situation applies even if the employee agreed.

117

Wilson

Mentions that it would occur even if the employee agreed to it.

118

Rep. Kitts

Asks where in SB 638 says that a manager cannot go back to their original job.

129

Wilson

Says that a person could apply for a job in a different agency.  Believes that in some of the situations the state should be allowed to let them go back to their old position.  States that this is not a problem in state government.  Says that there have been twelve cases in the last eight years.  Asserts that agencies like to having the restoration option.

154

Rep. Kitts

Asks if a temporary director of an agency would be able to return the employee to the position that the person had prior to accepting the temporary directorship.

159

Warner

Talks about how a person would not have restoration rights to their old management position if they took a temporary executive position.  Believes that many would not advance to state management employees from classified positions.

196

Chair Brown

Asks if the management employees have “bumping rights”.

198

Warner

States that only classified employees have “bumping rights”.

214

Rep. Schaufler

Asks if seniority would be at the level it was prior to the employee taking the non-classified job. 

237

Wilson

States that the collective bargaining issue would most likely end up in a litigation.  Says that the issue would have to be bargained for the next contract if SB 638 passes. 

262

Rep. Schaufler

Asks for the line in SB 638 were it prohibits a person from being restored.

268

Wilson

States that the first paragraph addresses the issue.

275

Rep. Kitts

Believes that SB 638 will not forbid DAS from rehiring people.

294

Wilson

Says that the issue exists because agencies are tight on resources and there may not be a position open at the time a non-classified state employee wants to return to being a classified position.

302

Rep. Kitts

Asks what happens when no position is open and an employee is coming back into the position.

304

Wilson

Indicates that the agency has the ability to start a layoff process if no work exists for the employee.

312

Warner

Says that two people have returned to DAS under the current restoration policy.  Details their situations.    

333

Rep. Kitts

Believes that the current restoration policy creates a situation where it is difficult to get rid of state employees that are not needed.

341

Warner

Notes that she would not depict it in that way.  Says that if the employee is not performing a termination process is started.  Responds that the restoration process helps them utilize the state’s resources more effectively.

363

Rep. Kitts

Asks for the information on terminated employees.

374

Wilson

Offers to get the information.  States that it is an “urban legend that once you are a state employee you are always a state employee.”

382

Rep. Holvey

Shares concern that SB 638 takes away the ability for the state to use its best resources. 

398

Chair Brown

Asks what the -1 amendments do.

400

Wilson

States that DAS will have a conflict with SB 638 if it is not amended with the -1 amendments.  Explains the amendments.

418

Chair Brown

Closes the public hearing on SB 638.  Opens the work session for the purpose of allowing Rep. Schaufler to vote on SB 323 and SB 585.

TAPE 152, B

SB 323 and SB 585 – WORK SESSION

001

Rep. Kitts

MOTION:  Requests unanimous consent that the rules be SUSPENDED to allow REP. SCHAUFLER to BE RECORDED as voting AYE on the motion to move SB 323 to the floor with a DO PASS AS AMENDED recommendation and the motion to move SB 585A to the floor with a DO PASS AS AMENDED recommendation.

007

 

VOTE:  7-0-0

(NOTE: Please see page 4, tape 151 A, of this tape log for the original vote on SB 585A and page 6, tape 150 B, of this tape log for the original vote on SB 323.)

 

Chair Brown

Hearing no objection, declares the motion CARRIED.

014

Chair Brown

Closes the work session for the purpose of allowing Rep. Schaufler to vote on SB 323 and SB 585.  Adjourns the meeting at 10:11 a.m.

 

 

EXHIBIT SUMMARY

 

  1. HB 3456, written testimony, Paul Meunier, 1 p
  2. SB 15, -2 amendments, staff, 1 p
  3. SB 118, written testimony, Joel Ario, 7 pp
  4. SB 118, -A6 amendments, staff, 3 pp
  5. SB 118, written testimony of the Oregon Student Public Interest Research Group, staff, 1 p
  6. SB 585, -A4 amendments, staff, 1 p
  7. SB 585, -A6 amendments, staff, 1 p
  8. SB 323, -5 amendments, staff, 1 p
  9. SB 323, -6 amendments, staff, 1 p
  10. SB 323, -7 amendments, staff, 1 p
  11. SB 323, -9 amendments, staff, 1 p
  12. No exhibit
  13. SB 638, -1 amendments, staff, 1 p
  14. SB 638, written testimony, Sen. Ryan Deckert, 1 p
  15. SB 638, written testimony, Susan Wilson, 2 pp