SENATE COMMITTEE ON COMMERCE

 

 

March 29, 2005                                                                                                       Hearing Room C

3:10 P.M.                                                                                                                     Tapes  45 - 46

 

MEMBERS PRESENT:         Sen. Floyd Prozanski, Chair

Sen. Roger Beyer, Vice-Chair

Sen. Ginny Burdick

                                                Sen. Doug Whitsett

 

MEMBER EXCUSED:          Sen. Charlie Ringo

 

STAFF PRESENT:                 Anna Braun, Committee Administrator

Karen Scoffield, Committee Assistant

 

MEASURES/ISSUES HEARD:        

                                                SB 635 – Public Hearing

                                                SB 469 – Public Hearing

                                                SB 669 – Public Hearing

                                                SB 573 – 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 45, A

005

Chair Prozanski

Calls the meeting to order at 3:10 p.m.  Opens public hearing on SB 635.  

SB 635 – PUBLIC HEARING

010

Anna Braun

Committee Administrator.  Provides an overview of SB 635. Submits written testimony on behalf of Mike Balanesi, Business Consultant, Hillsboro, Oregon, in opposition to SB 635 (EXHIBIT A) .

020

Sen. Rick Metsger

Senate District 26.  Testifies in support of SB 635. Remarks that SB 635 is only for those who make an adult foster home a commercial enterprise.

065

Meredith Cote

Office of the Long Term Care Ombudsman (OLTCO).  Testifies in support of SB 635.  Discusses duties of care givers.

105

May Dasch

Alzheimer’s Network of Oregon.  Discusses and submits written testimony in support of SB 635 (EXHIBIT B).

140

Arthur Towers

Political Director, Service Employees International Union (SEIU), Local 503.  Testifies in support of SB 635. Submits written testimony on behalf of Beverly Marks, member, SEIU, Local 503 in support of SB 635 (EXHIBIT C).

150

Teresa Sims

Homecare worker. Member, SEIU, Local 503.  Testifies in support of SB 635.  Discusses personal experience of losing benefits as a homecare worker.

168

Sen. Burdick

Inquires what Sims’ classification was before and what it has changed  to.

170

Sims

Responds.

178

Burdick

States understanding of Sims’ response.

180

Sims

Responds.

182

Chair Prozanski

Asks for background on Sims’ position.

185

Towers

Responds.  Comments that they are concerned with having fairness across the board.

195

Sen. Whitsett

Inquires what the insurance premium rate per $100 for foster care employees is.

200

Towers

Responds.  Comments that there has been some controversy on this subject.

215

Sen. Whitsett

Asks for an estimation of the percentage.

217

Towers

Offers to return the information.

220

Sen. Whitsett

Inquires how many complaints have been received of non compensable injuries.

225

Towers

Answers that the employees are not typically in a position to file a complaint.

235

Sen. Whitsett

Asks Towers for the number of complaints.

238

Towers

Responds that he does not currently have the information. 

240

Sen. Whitsett

Provides an example and inquires how SB 635 would relate to it.

245

Cote

Responds that if the owner/operator is in residence there is not a requirement for coverage under SB 635.

250

Sen. Whitsett

Inquires if it is regardless of how many patients they are assisting.

251

Cote

States that the maximum number of patients is five for this license category.

255

Chair Prozanski

Asks Towers to provide the figures requested by Sen. Whitsett.  Comments on page 3 of SB 635, line 19 and 20.  Clarifies the intent of SB 635.

265

Cote

Responds.

283

Grover Simmons

Independent Adult Foster Home Association. Submits written testimony in opposition to SB 635 (EXHIBIT D) and the legislative fiscal analysis to SB 635 (EXHIBIT E).

350

Simmons

Continues testimony.

400

Dee Humphries

Owner, Adult Foster Care Home.  Testifies in opposition to SB 635. Discusses expense of workers’ compensation insurance for Adult Foster Care Homes.

TAPE 46, A

030

Dixie Ellard

Owner, Adult Foster Care Homes, Silverton, Oregon.  Testifies in opposition to SB 635.

050

Chair Prozanski

Asks Simmons if he feels it is good public policy to have workers’ compensation insurance for workers.

055

Simmons

Responds.

065

Chair Prozanski

Comments that if it is a money issue then this needs to be considered.  Asks how injuries of workers are covered if they are not covered by Health Insurance.

075

Simmons

Responds.  Discusses the difficulty of making money in the Adult Foster Care Home industry.

115

Chair Prozanski

Asks Humphries how SB 635 would affect her home.

120

Humphries

Responds that she had her Foster Care Home custom built and she has never lived in her homes.

125

Chair Prozanski

Clarifies that Humphries has a separate facility and does not live in it.

127

Humphries

Answers, that is correct.

129

Sen. Whitsett

Estimates how much worker’s compensation coverage would cost Humphries.  Asks how many employees Humphries has.

134

Humphries

States that she has two employees.  Discusses costs of insurance.  

145

Chair Prozanski

Asks Humphries about the levels of care for Adult Foster Care Homes.

147

Humphries

Responds that approximately 90% of the homes are level 2.

149

Chair Prozanski

Asks how Humphries would classify her home.

151

Humphries

Responds that she runs a level 2 home.

155

Chair Prozanski

Asks if the Medicaid reimbursement is reflected in the different levels.

157

Humphries

Comments the reimbursement is based on the facility that the patient lives in.

162

Chair Prozanski

 Asks Ellard if she has comments.

165

Ellard

Comments that she has five staff members for her two homes.  Discusses need for clarification of the intent of SB 635.

170

Chair Prozanski

Comments on his understanding of SB 635.

172

Ellard

Responds.

174

Sen. Whitsett

Asks if Ellard’s employees work in more than one home.

176

Ellard

Responds that four of her employees work in both of her Foster Care Homes.

178

Humphries

Invites the committee members to take a tour of her Foster Care Home.

185

Danielle Wilde

Owner, Adult Foster Care Home.  Testifies in opposition to SB 635. Discusses pressures of being in the business.

230

Fred Albert

Owner, Adult Foster Care Homes.  Testifies in opposition to SB 635.  States that he owns seven Adult Foster Care Homes.  Discusses concerns with having to provide workers’ compensation insurance.

262

Jane Albert

Owner, Adult Foster Care Home. Testifies in opposition to SB 635.  Discusses experience as an owner of an Adult Foster Care Home.

285

Jim Carlson

Oregon Health Care Association.  Testifies in support of SB 635.  Discusses costs of workers’ compensation insurance.

350

Carlson

Concludes testimony.

370

Chair Prozanski

Asks Carlson about the fiscal impact of his suggestions.

373

Carlson

Responds.

390

John Shilts

Administrator, Workers’ Compensation Division, Department of Consumer and Business Services (DCBS).  Discusses and submits written testimony in support of SB 635 (EXHIBIT F)

TAPE 45, B

015

Sen. Whitsett

Asks about the potential change in insurance rates due to claims on the policy.

020

Shilts

Responds. 

038

Whitsett

Asks if Shilts can quantify his response.

040

Shilts

Offers to return the information.

042

Whitsett

Remarks that the Foster Care Home owners need an understanding of their potential liability and costs.

047

Shilts

Responds.  Comments that employers may have to go into the residual insurance market and would potentially pay higher rates. 

080

Chair Prozanski

Closes public hearing on SB 635 and opens public hearing on SB 469.

SB 469 – PUBLIC HEARING

090

Tom Barrows

Oregon Podiatric Medical Association.  Discusses and submits written testimony in support of SB 469 (EXHIBIT G) and a letter from the Oregon Podiatric Medical Association dated January 21, 1997 (EXHIBIT H).

115

Chair Prozanski

Clarifies that Doctors of Podiatric Medicine (DPM) would be limited to their scope of practice if they were considered attending physicians.

117

Barrows

Answers, yes.

122

Linda Barno

Oregon Self-Insurers Association.  Testifies in opposition to SB 469. 

149

Chair Prozanski

Asks what MCO stands for.

150

Barno

Answers, Managed Care Organization.

152

Sen. Whitsett

Clarifies that currently physicians can refer patients to a specialist.

155

Barno

Answers, yes.

163

Lisa Trussell

Associated Oregon Industries (AOI). Comments that AOI does not have a position on SB 469 because they support the Management Labor Advisory Committee (MLAC) and they have not yet taken a position. Discusses Managed Care Organizations.

186

John Shilts

Administrator, Workers’ Compensation Division, Department of Consumer and Business Services (DCBS).  Discusses and submits written testimony regarding SB 469 (EXHIBIT I).

225

Sen. Whitsett

Clarifies that Shilts is describing an attending physician as a gateway physician who examines an individual and refers them to a specialist if needed.  Asks if the gateway physician would determine the extent of the compensable damages.

234

Shilts

Remarks that the attending physician could also be the specialist under current definition. Provides an example.

244

Sen. Whitsett

States understanding.

247

Shilts

Responds.

268

Chair Prozanski

Closes public hearing on SB 469 and opens public hearing on SB 669.

SB 669 – PUBLIC HEARING

283

Art Keil

Oregon Association of Naturopathic Physicians.  Discusses and submits written testimony in support of SB 669 (EXHIBIT J)

360

Keil

Summarizes and concludes testimony.

380

Aris Campbell

Gresham Naturopathic Clinic.  Discusses and submits written testimony in support of SB 469 (EXHIBIT K).

TAPE 46, B

025

Campbell

Relates anecdote regarding treatment of a patient.  Summarizes and concludes.

050

Kevin Wilson

Naturopathic Doctor.  Discusses and submits written testimony in support of SB 669 (EXHIBIT L).

078

Chair Prozanski

Asks how many times the witnesses have had to go through the referral process in their practices.

083

Campbell

Estimates that 10% of his work over the past 18 years has gone through the referral process.

090

Chair Prozanski

Asks witnesses to state if their testimony regarding SB 669 is similar to their previous testimony regarding SB 469.  

095

Linda Barno

Oregon Self Insurers Association. States that her testimony on SB 669 is the same as her testimony on SB 469.

098

Lisa Trussell

Associated Oregon Industries (AOI).  States that her testimony on SB 669 is the same as her testimony on SB 469.

102

John Shilts

Administrator, Workers’ Compensation Division, Department of Consumer and Business Services (DCBS).  Discusses and submits written testimony regarding SB 669 (EXHIBIT M).

108

Chair Prozanski

Asks for clarification of why Naturopathic doctors were not considered preferred primary care providers in the past.

110

Trussell

Responds.

124

Chair Prozanski

Asks if the Management Labor Advisory Committee (MLAC) is going to look at SB 669.

127

Trussell

Answers, yes.

129

Shilts

Responds that MLAC is meeting next Monday.

132

Chair Prozanski

Closes public hearing on SB 669 and opens public hearing on SB 573.

SB 573 – PUBLIC HEARING

135

Anna Braun

Committee Administrator.  Provides an overview of SB 573.  Introduces the -1 amendments to SB 573 (EXHIBIT N).

150

Joel Ario

Administrator, Insurance Division, Department of Consumer and Business Services (DCBS).  Discusses and submits written testimony in support of SB 573 (EXHIBIT O).  Discusses the desire to revise SB 573.

235

John Powell

State Farm Insurance Companies, Liberty Northwest dba North Pacific Insurance Company.  Testifies regarding SB 573.  Discusses broadness of the -1 amendments.  Discusses desire to work with DCBS to amend SB 573 further. 

285

Chair Prozanski

Responds to Powell’s testimony.

293

Shawn Miller

Property Casualty Insurers Association of America (PCI).  Testifies regarding SB 573.  Discusses desire to work with DCBS to amend SB 573 further. 

325

Jack Munro

American Insurance Association (AIA).  Testifies regarding SB 573.  Discusses desire to work with DCBS to amend SB 573 further. 

350

Chair Prozanski

Asks Powell, Munro and Miller to work with DCBS on further amendments to SB 573. Closes public hearing on SB 573.  Adjourns the meeting at 5:05 p.m.

 

 

EXHIBIT SUMMARY

 

  1. SB 635, written testimony of Mike Balanesi, Anna Braun, 1 p
  2. SB 635, written testimony, May Dasch, 1 p
  3. SB 635, written testimony of Beverly Marks, Arthur Towers, 1 p
  4. SB 635, written testimony, Grover Simmons, 3 pp
  5. SB 635, fiscal analysis, Grover Simmons, 1 p
  6. SB 635, written testimony, John Shilts, 1 p
  7. SB 469, written testimony, Tom Barrows, 2 pp
  8. SB 469, letter, Tom Barrows, 1 p
  9. SB 469, written testimony, John Shilts, 2 pp
  10. SB 469, written testimony, Art Keil, 4 pp
  11. SB 669, written testimony, Aris Campbell, 3 pp
  12. SB 669, written testimony, Kevin Wilson, 1 p
  13. SB 669, written testimony, John Shilts, 2 pp
  14. SB 573, -1 amendments, staff, 1 p
  15. SB 573, written testimony, Joel Ario, 2 pp