SENATE COMMITTEE ON COMMERCE
January 27, 2005 Hearing Room C
3:10 P.M. Tapes 5-6
MEMBERS PRESENT: Sen. Floyd Prozanski, Chair
Sen. Roger Beyer, Vice-Chair
Sen. Ginny Burdick
Sen. Charlie Ringo
Sen. Doug Whitsett
STAFF PRESENT: Anna Braun, Committee Administrator
Karen Scoffield, Committee Assistant
MEASURES/ISSUES HEARD:
Management Labor Advisory Committee - Informational Meeting
SB 140 - Public Hearing
SB 143 – Public Hearing
Introduction of Committee Measure – 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 5, A |
||
|
005 |
Chair Prozanski |
Calls the meeting to order at 3:15 p.m. Opens informational meeting on Management Labor Advisory Committee (MLAC). |
|
MANAGEMENT LABOR ADVISORY COMMITTEE - INFORMATIONAL MEETING |
||
|
015 |
Ken Hector |
Co-Chair, Management Labor Advisory Committee’s Independent Medical Examination Subcommittee (MLAC). Introduces himself. Gives background regarding findings of Independent Medical Examination subcommittee (IME). Submits written testimony (EXHIBIT A). |
|
045 |
Lon Holston |
Management Labor Advisory Committee’s Independent Medical Examination Subcommittee (MLAC). Introduces himself. Discusses findings of IME. Discusses suggestion that Workers’ Compensation Division should develop a certification process for IME physicians. |
|
060 |
Hector |
Discusses the concern of patients of having an observer in the room during exam. Discusses travel distance. |
|
090 |
Hector |
Continues. Discusses notice to the worker regarding the IME. |
|
115 |
Holston |
Discusses ways to better inform the worker of the process of the exam. Discusses need of patients to be prepared for the exam. |
|
125 |
Hector |
Discusses the need of the IME physician to have a complete set of records prior to the exam. |
|
150 |
Holston |
Discusses the importance of feedback on the process after completion. They plan to have the Workers’ Compensation Division have a survey taken. They desire that a monetary penalty be charged for injured workers not showing up for exam. |
|
180 |
Holston |
Discusses suggestion that the physician go over the report with patient. |
|
190 |
Hector |
Discusses the need of the division to work on training for claims examiners and their plan to implement this. Recognizes that recommendations they discussed need more details, but will do this after legislative counsel drafts them. Concludes. Recognizes that workers’ compensation division will need to continue to monitor the recommended changes and make adjustments as necessary. |
|
235 |
Chair Prozanski |
Reminds everyone that the witnesses are here for informational purposes only. Remarks that many bills will be introduced later at public hearings. |
|
260 |
Sen. Whitsett |
Asks the witnesses if they view that the Medical Examination Board has failed in reviewing and resolving complaints. |
|
265 |
Holston |
Answers question. Elaborates. |
|
280 |
Sen. Whitsett |
Inquires as to why a patient relationship is necessary for a claim to be investigated. |
|
295 |
Holston |
Explains that he is going off of testimony that came before the board only. |
|
300 |
Sen. Whitsett |
Inquires regarding the difficulty of travel for a specialist physician. |
|
325 |
Holton |
Answers that it is a complicated issue and is still being worked on. |
|
335 |
Sen. Whitsett |
Discusses the review of records. |
|
340 |
Hector |
Explains the background of review of records proposal. |
|
365 |
Sen. Whitsett |
Discusses Hector’s answer. |
|
370 |
Sen. Beyer |
Inquires as to why Brad Witt is not here today. |
|
375 |
Hector |
Answers that Brad Witt has become a State Representative. |
|
390 |
Chair Prozanski |
Thanks witnesses. Inquires as to how many IME’s a patient may be required to go through. |
|
400 |
Hector |
Answers that currently law allows three IME’s. |
|
405 |
Chair Prozanski |
Asks for confirmation that they are not proposing a change to this number. |
|
410 |
Hector |
Confirms that they made no recommendation as to changing the number of IME’s or attending physicians for the injured worker. |
|
415 |
Sen. Beyer |
Inquires as to who is considered a paid observer. |
|
425 |
Hector |
Explains that the observer would be a family member or close friend as opposed to someone who is being paid to be there. |
|
435 |
Sen. Beyer |
Inquires as to how that would be enforced. |
|
445 |
Hector |
Explains that the worker would have to identify to the physician who the person observing is. |
|
455 |
Chair Prozanski |
Asks for more information regarding areas that are still in discussion by the Bureau of Labor and Industries. |
|
470 |
Chair Prozanski |
Thanks witnesses for their time. Closes informational meeting on MLAC and opens public hearing on SB 140. |
|
SB 140 – PUBLIC HEARING |
||
|
TAPE 6, A |
||
|
050 |
Anna Braun |
Committee Administrator. Provides an overview of SB 140. |
|
060 |
Dan Gardner |
Commissioner, Bureau of Labor and Industries (BOLI). Discusses and submits written testimony in support of SB 140 (EXHIBIT B). Provides background on the purpose of drafting the bill. |
|
075 |
Christine Hammond |
Administrator, Wage and Hour Division, BOLI. Discusses the state of New Jersey’s labor department and their process for funding their wage and hour program, which is similar to what SB 140 proposes. Discusses support of SB 140. |
|
110 |
Gardner |
Continues to explain SB 140 in more detail. Explains that they do not desire this bill to apply to the prevailing wage part of their law . Clarifies that it is not written with the intent to fine a prime contractor for actions of a subcontractor. |
|
140 |
Sen. Whitsett |
Inquires as to where in SB 140 the items Gardner discussed are found. |
|
150 |
Gardner |
Answers that they plan to make amendments regarding these items because they are not clearly exempted. |
|
160 |
Sen. Whitsett |
Asks where this program will be funded from. |
|
165 |
Gardner |
Discusses the funding structure. |
|
175 |
Sen. Whitsett |
Clarifies that it would give them the option to fund part of their services out of the money obtained. |
|
180 |
Gardner |
Confirms that it does. It also allows them from ten to twenty-five percent (10-25%). |
|
185 |
Sen. Beyer |
Inquires as to what civil penalties apply. |
|
190 |
Gardner |
Answers that there are several current civil penalties, but this will be an administrative fee paid by each violator. |
|
195 |
Sen. Beyer |
Inquires if civil penalties currently go in a general fund. |
|
197 |
Gardner |
Answers that yes, except for prevailing wage, violations go in a prevailing wage fund. |
|
200 |
Sen. Beyer |
Inquires regarding current financial consequences for employers who fail to pay employees. |
|
215 |
Gardner |
Answers that they have penalties for those employers who have fired an employee and fail to pay final wages. |
|
220 |
Annette Talbott |
Deputy Commissioner, BOLI. Clarifies that they currently have a penalty for final wages, but that this bill is to assist people who are currently still working for an employer. |
|
235 |
Gardner |
Confirms that penalty wages go to the employee directly, not the Bureau. |
|
240 |
Sen. Beyer |
Inquires as to a list of what violations incur civil penalties. |
|
242 |
Gardner |
Offers to return the requested information to the committee. |
|
245 |
Sen. Whitsett |
Asks for clarification between the definition of a fee and fine. |
|
247 |
Gardner |
Explains that an administrative fee is for cost of actual work and a fine is a penalty. |
|
260 |
Sen. Whitsett |
Clarifies that the administrative fee they would collect would be restricted to the actual costs of the Bureau. |
|
265 |
Gardner |
Answers that it could be structured from anywhere from ten to twenty-five percent (10-25%). |
|
285 |
Lisa Trussell |
Associated Oregon Industries (AOI). Discusses opposition and concerns to SB 140. Discusses plans to meet with BOLI to address these concerns. |
|
310 |
Jessica Harris Adamson |
Associated General Contractors (AGC). Discusses support of SB 140. Submits statute ORS 279C.825 (EXHIBIT C). |
|
345 |
Chair Prozanski |
Closes public hearing on SB 140. Opens public hearing on SB 143. |
|
SB 143 - PUBLIC HEARING |
||
|
355 |
Anna Braun |
Committee Administrator. Gives overview of SB 143. |
|
365 |
Dan Gardner |
Commissioner, Bureau of Labor and Industries (BOLI). Submits and discusses written testimony in support of SB 143 (EXHIBIT D). Provides an example of an employee who was forced to work off the clock. |
|
TAPE 5, B |
||
|
010 |
Gardner |
Continues. Discusses benefits of SB 143. Discusses the desire for the bill to be a deterrent to employers. |
|
020 |
Sen. Beyer |
Asks for an example in Oregon. |
|
025 |
Gardner |
Explains that employees do not come to the Bureau in many instances. If there are several employees they will get together and hire an attorney in a class action law suit. Nationally there are several examples. |
|
030 |
Sen. Beyer |
Inquires if they have not actually received several complaints regarding this at the Bureau. |
|
035 |
Christine Hammond |
Administrator. Wage and Hour Division, BOLI. Answers that many wage claims they receive are regarding employers’ failure to pay employees for all hours worked. |
|
040 |
Sen. Beyer |
Asks for a number of the claims they received in the last year. |
|
045 |
Hammond |
Offers to look back on past claims, but cannot think of a specific example. Offers to return specific statistics. |
|
055 |
Sen. Beyer |
Inquires as to burden of proof for a willful repeated violation. |
|
060 |
Annette Talbott |
Deputy Commissioner, BOLI. Answers that there was a bill last session that addressed this issue. Answers Beyer’s question. |
|
070 |
Chair Prozanski |
Asks for citation. |
|
072 |
Talbott |
Provides citation (OAR 839-001-0410 (4)). |
|
075 |
Chair Prozanski |
Asks for clarification regarding definition. |
|
080 |
Talbott |
Answers clarification. |
|
083 |
Chair Prozanski |
Inquires regarding negligence. |
|
085 |
Talbott |
Answers that negligence is not in this realm and not the terminology that they use within this statute. |
|
100 |
Sen. Beyer |
Asks for definition regarding repeatedly. |
|
105 |
Talbott |
Answers that she is not aware of a current definition for repeatedly. |
|
110 |
Chair Prozanski |
Agrees that clarification is needed. |
|
115 |
Gardner |
Discusses BOLI’s strategy to make this part of their technical assistance unit for employers to inform employers of this law. |
|
125 |
Chair Prozanski |
Inquires if BOLI’s website notifies of changes in law. |
|
130 |
Talbott |
Answers that yes, they use website to notify employers of many differences in the law. Explains the duties of the technical assistance unit in more detail. |
|
150 |
Sen. Whitsett |
Provides an example and inquires as to what procedures BOLI would take. |
|
160 |
Hammond |
Answers question regarding example. |
|
180 |
Sen. Whitsett |
Asks for clarification from Hammond’s answer. |
|
185 |
Hammond |
Answers clarification. |
|
190 |
Chair Prozanski |
Asks for more information regarding Hammond’s answer. |
|
192 |
Gardner |
Offers to send materials to committee. |
|
195 |
Chair Prozanski |
Asks for an overview from the Bureau at a later date. |
|
205 |
Lisa Trussell |
Associated Oregon Industries (AOI). Discusses opposition and concerns related to SB 143. Discusses plan to meet with BOLI regarding these concerns. |
|
230 |
Steve Lanning |
Political Director, Oregon AFL-CIO. Discusses and submits written testimony in support of SB 143 (EXHIBIT E). Discusses examples of companies in Oregon that failed to pay wages. |
|
270 |
Sen. Beyer |
Inquires if law is regarding public employers. |
|
275 |
Gardner |
Answers that it would apply to all employers. |
|
280 |
Chair Prozanski |
Closes public hearing on SB 143. Opens work session for introduction of committee measure. |
|
INTRODUCTION OF COMMITTEE MEASURE - WORK SESSION |
||
|
285 |
Anna Braun |
Committee Administrator. Introduces LC 1288 (EXHIBIT F). |
|
290 |
Anna Braun |
Submits written testimony on behalf of Robert Russell in support of LC 1288 (EXHIBIT G). |
|
300 |
Sen. Beyer |
MOTION: Moves LC 1288 BE INTRODUCED as a committee bill. |
|
|
|
VOTE: 4-0-1 EXCUSED: 1 - Ringo |
|
|
Chair Prozanski |
Hearing no objection, declares the motion CARRIED. |
|
305 |
Chair Prozanski |
Closes work session and adjourns meeting at 4:35 p.m. |
EXHIBIT SUMMARY