March 29, 2019

SB 360, An Update to the Oregon Nonprofit Corporation Act (ORS Chapter 65), Moves through First Chamber

On March 4, the Oregon State Bar’s Nonprofit Organizations Law Section bill, SB 360 received a work session and passed out of the Senate Judiciary Committee. Senator Cliff Bentz (R-Ontario) carried the bill on the Senate floor, where it passed 24 to 2 (with 4 excused). The bill is now on its way to the House for consideration.

In 2014, the Nonprofit Organizations Law Section created a work group to review and update ORS Chapter 65, the Oregon Nonprofit Corporation Act. Over the last several years, the work group has reviewed the statute, solicited feedback from lawyers who work with nonprofits and the Nonprofit Association of Oregon, and updated and modernized the language. The work group had two guiding principles:

        • (1) Changes should clarify or improve the functioning of the statutory framework, but not make major policy changes to the legal structure for nonprofit corporations in Oregon.
        • (2) A nonprofit corporation should, with limited exceptions, be able to draft its own governance rules through its articles and bylaws. At the same time, certain rules will be mandatory and will be clearly identified as such in the statutes.

    In addition, SB 360 includes several provisions to combat abuses by anonymous shell corporations. The new provisions require more transparency and provide the state additional enforcement tools to combat fraud and other illicit activities.

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    House Judiciary Committee passes HB 2462 from the Military and Veterans Law Section out of committee

    On March 19 the House Judiciary Committee held a public hearing on HB 2462, a bill from the Military and Veterans Law Section. The bill, as amended with the -3 amendments, would require a court at the time of arraignment to inform a defendant that their status as a servicemember may make the defendant eligible for treatment programs, specialty courts, diversion or mitigated sentencing and that they may wish to speak to their attorney about these options. Jesse Barton, a member of the Military and Veterans Law section, testified in support of the bill. On March 27 the bill passed out of committee unanimously with the -3 amendments.

    Additionally, the bill specifies that a defendant’s status as a servicemember may not be used as an aggravating factor in sentencing, and permits a defendant to request that the court seal within the court file any information regarding a defendant’s status as a service member.

    Veterans involved with the criminal law system has been a focus of the Military and Veterans Law Section for several sessions. In 2010 the section worked to pass SB 999 which allowed for diversion for veterans in certain circumstances and in 2013, the section passed SB 124 which directs the court at sentencing to consider evidence received during a criminal proceeding regarding the defendant’s status as a servicemember in determining aggravation or mitigation.

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    Bills of Interest

    SB 113 – Authorizes court to award prevailing retail customers, who bring actions against vehicle dealers, attorney fees under certain circumstances.

    SB 421 – Prohibits insurer from receiving reimbursement or subrogation for personal injury protection benefits or health benefits insurer provided to person injured in motor vehicle accident from any recovery injured person obtains in action for damages except to extent that injured person first receives full compensation for injured person’s injuries and reimbursement or subrogation is paid only from amount of recovery in excess of amount that fully compensates for injured person’s injuries.

    SB 728 – Includes insurance in definition of real estate, goods, and services that are subject to penalties for unlawful trade practices.

    HB 2014 – Restricts limitation on award of noneconomic damages to claims in actions for wrongful death.

    HB 2517 – Prohibits state agencies from suspending or revoking license required to pursue commercial activity, trade, occupation, or profession because licensee is delinquent in paying student loan debt.

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    Senate Judiciary Committee Holds Hearings and Work Sessions on Proposed Family Law Legislation

    On March 6, 2019, the Senate Judiciary Committee held public hearings on a number of family law bills. During the hearing, legislators heard testimony on equal parenting time, appointing legal counsel for children in contested domestic relations proceedings, and creating a procedure for alternative dispute resolution for custody and parenting time modifications, among other topics.

    In 2016, the Senate Judiciary Committee convened a work group to review Oregon custody and parenting-time statutes. The work group included advocates; expert practitioners, including representatives from the OSB Family Law Section; judges; and stakeholders. Over the last few years, the work group took the opportunity to review current Oregon law and practice as well as statutes in other states, developments in case law, and research on best practices for child custody and parenting time.

    SB 318 – Creates rebuttable presumption that equal parenting time is in best interests of child. (Scheduled for a work session on April 4, 2019)

    SB 356 – Permits detailed parenting plan to include instructions regarding notification requirements for specified matters. (Passed the Senate as introduced on March 28, 2019)

    SB 371 – Establishes pilot programs for purpose of appointing legal counsel for children in contested domestic relations proceedings. (Passed out of committee with the -3 amendments on March 21, 2019)

    SB 385 – Directs presiding judge of each judicial district to establish alternative dispute resolution conference procedure for custody and parenting time modifications and enforcement proceedings. (Passed out of committee with the -3 amendments on March 21, 2019)

    SB 736 – Modifies terminology in domestic relations proceedings regarding custody of and parenting time with children. (Public Hearing held on March 6, 2019)


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    Justice Reinvestment Accountability and Equity Act Moves to the House Floor

    On March 14, 2019, the House Judiciary Committee held a public hearing on HB 3064. In 2013 the Oregon Legislature passed the Justice Reinvestment Act to support justice reinvestment efforts. The Act both changed the charging practices on specific crimes and allowed for public safety cost savings. Because of the savings from the Act, the state delayed building a new women’s prison in Oregon.

    HB 3064 as amended with the -1 amendment would update the Act. The bill would make a number of changes to the program, from expanding the Justice Reinvestment Grant Review Committee, to requiring the Criminal Justice Commission to assess the engagement of the counties in reducing use of prison beds. The bill gives the Criminal Justice Commission the ability to reduce, withhold, or redirect grant funds if counties have not reduced the use of imprisonment.

    The bill passed out of committee on March 21 with the -1 amendment.

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    Oregon State Bar Day at the Capitol

    Oregon State Bar Day at the Capitol
    Wednesday, May 8, 2019
    8:00am – 5:00pm
    Willamette University Hearings Room & OCJC Lobby
    900 State St, Salem, OR 97301

    If you are interested in attending this event, please contact Kellie Baumann at [email protected].

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    Thank you for reading the Oregon State Bar’s CAPITOL INSIDER.
    The archives are available here.

    2018 Public Affairs Committee Members

    Eric Foster, Chair
    Eddie Medina, Vice Chair
    Whitney Boise
    John Bachofner
    Kate Denning
    Kamron Graham
    Bik-Na Han
    Michael Rondeau 

    Public Affairs Department

    Susan Grabe, Public Affairs Director
    Amy Zubko, Public Affairs Legislative Attorney
    Matt Shields, Public Affairs Staff Attorney
    Kellie Baumann, Public Affairs Assistant

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