71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2685
 
                         House Bill 2992
 
Sponsored by Representative KRUMMEL
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Changes definition of physician to include podiatrist for
purposes of physician regulatory statutes. Makes conforming
changes to referencing statutes. Changes definition of physician
to include podiatrist for purposes of evidence code statute
regarding patient and physician privilege and insurance code
statute protecting advocacy for patient under medical services
contract. Changes definition of retired physician to include
podiatrist for purposes of volunteer service immunity.
 
                        A BILL FOR AN ACT
Relating to podiatry; creating new provisions; and amending ORS
  18.550, 30.302, 40.235, 124.050, 316.144, 414.211, 421.467,
  430.735, 441.063, 441.064, 442.700, 475.950, 659.470, 677.010,
  677.087, 677.095, 677.097, 677.188, 677.265, 677.450, 677.805,
  677.815, 677.855, 688.130, 688.132, 688.230, 742.400, 743.803
  and 746.600.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 18.550 is amended to read:
  18.550. Punitive damages shall not be awarded against a health
practitioner if:
  (1) The health practitioner is licensed, registered or
certified as:
  (a) A psychologist under ORS 675.030 to 675.070, 675.085 and
675.090;
  (b) An occupational therapist under ORS 675.230 to 675.300;
  (c) A licensed clinical social worker under ORS 675.530,
675.540 to 675.560, 675.580 and 675.585;
  (d) A physician under ORS 677.100 to 677.228  { + or 677.820 to
677.840 + };
  (e) An emergency medical technician under ORS chapter 682;
    { - (f) A podiatric physician and surgeon under ORS 677.820
to 677.840; - }
    { - (g) - }  { +  (f) + } A nurse under ORS 678.040 to
678.101;
    { - (h) - }  { +  (g) + } A nurse practitioner under ORS
678.375 to 678.390;
    { - (i) - }  { +  (h) + } A dentist under ORS 679.060 to
679.180;
    { - (j) - }  { +  (i) + } A dental hygienist under ORS
680.040 to 680.100;
 
    { - (k) - }  { +  (j) + } A denturist under ORS 680.515 to
680.535;
    { - (L) - }  { +  (k) + } An audiologist or speech-language
pathologist under ORS 681.250 to 681.350;
    { - (m) - }   { + (L)  + }An optometrist under ORS 683.040 to
683.155 and 683.170 to 683.220;
    { - (n) - }   { + (m) + } A chiropractor under ORS 684.040 to
684.105;
    { - (o) - }   { + (n) + } A naturopath under ORS 685.060 to
685.110, 685.125 and 685.135;
    { - (p) - }   { + (o)  + }A massage therapist under ORS
687.021 to 687.086;
    { - (q) - }  { +  (p) + } A physical therapist under ORS
688.040 to 688.145;
    { - (r) - }  { +  (q) + } A radiologic technician under ORS
688.445 to 688.525; or
    { - (s) - }  { +  (r) + } A pharmacist under ORS 689.151 and
689.225 to 689.285; and
  (2) The health practitioner was engaged in conduct regulated by
the license, registration or certificate issued by the
appropriate governing body and was acting within the scope of
practice for which the license, registration or certificate was
issued and without malice.
  SECTION 2. ORS 30.302 is amended to read:
  30.302. (1) As used in this section, 'retired physician ' means
any person:
  (a) Who holds a degree of Doctor of Medicine   { - or - }
 { + , + } Doctor of Osteopathy  { + or Doctor of Podiatric
Medicine + } or has met the minimum educational requirements for
licensure to practice naturopathic medicine;
  (b) Who has been licensed and is currently retired in
accordance with the provisions of ORS chapter 677 or 685;
  (c) Who is registered with the Board of Medical Examiners for
the State of Oregon as a retired emeritus physician or who
complies with the requirements of the Board of Naturopathic
Examiners as a retired naturopath;
  (d) Who registers with the county health officer in the county
in which the physician or naturopath practices; and
  (e) Who provides medical care as a volunteer without
compensation solely through referrals from the county health
officer specified in paragraph (d) of this subsection.
  (2) Any retired physician who treats patients pursuant to this
section shall be considered to be an agent of a public body for
the purposes of ORS 30.260 to 30.300.
  SECTION 3. ORS 40.235 is amended to read:
  40.235. (1) As used in this section, unless the context
requires otherwise:
  (a) 'Confidential communication' means a communication not
intended to be disclosed to third persons except:
  (A) Persons present to further the interest of the patient in
the consultation, examination or interview;
  (B) Persons reasonably necessary for the transmission of the
communication; or
  (C) Persons who are participating in the diagnosis and
treatment under the direction of the physician, including members
of the patient's family.
  (b) 'Patient' means a person who consults or is examined or
interviewed by a physician.
  (c) 'Physician' means a person authorized and licensed or
certified to practice medicine  { + or podiatry + } in any state
or nation, or reasonably believed by the patient so to be, while
engaged in the diagnosis or treatment of a physical condition.
'Physician ' includes licensed or certified naturopathic and
chiropractic physicians.
  (2) A patient has a privilege to refuse to disclose and to
prevent any other person from disclosing confidential
communications in a civil action, suit or proceeding, made for
the purposes of diagnosis or treatment of the patient's physical
condition, among the patient, the patient's physician or persons
who are participating in the diagnosis or treatment under the
direction of the physician, including members of the patient's
family.
  (3) The privilege created by this section may be claimed by:
  (a) The patient;
  (b) A guardian or conservator of the patient;
  (c) The personal representative of a deceased patient; or
  (d) The person who was the physician, but only on behalf of the
patient. Such person's authority so to do is presumed in the
absence of evidence to the contrary.
  (4) The following is a nonexclusive list of limits on the
privilege granted by this section:
  (a) If the judge orders an examination of the physical
condition of the patient, communications made in the course
thereof are not privileged under this section with respect to the
particular purpose for which the examination is ordered unless
the judge orders otherwise.
  (b) Except as provided in ORCP 44, there is no privilege under
this section for communications made in the course of a physical
examination performed under ORCP 44.
  (c) There is no privilege under this section with regard to any
confidential communication or record of such confidential
communication that would otherwise be privileged under this
section when the use of the communication or record is
specifically allowed under ORS 426.070, 426.074, 426.075,
426.095, 426.120 or 426.307. This paragraph only applies to the
use of the communication or record to the extent and for the
purposes set forth in the described statute sections.
  SECTION 4. ORS 124.050 is amended to read:
  124.050. As used in ORS 124.050 to 124.095:
  (1) 'Abuse' means one or more of the following:
  (a) Any physical injury caused by other than accidental means,
or which appears to be at variance with the explanation given of
the injury.
  (b) Neglect which leads to physical harm through withholding of
services necessary to maintain health and well-being.
  (c) Abandonment, including desertion or willful forsaking of an
elderly person or the withdrawal or neglect of duties and
obligations owed an elderly person by a caretaker or other
person.
  (d) Willful infliction of physical pain or injury.
  (2) 'Division' means the Senior and Disabled Services Division
of the Department of Human Services.
  (3) 'Elderly person' means any person 65 years of age or older
who is not subject to the provisions of ORS 441.640 to 441.665.
  (4) 'Law enforcement agency' means:
  (a) Any city or municipal police department.
  (b) Any county sheriff's office.
  (c) The Oregon State Police.
  (d) Any district attorney.
  (5) 'Public or private official' means:
  (a) Physician  { + licensed under ORS chapter 677 + },
naturopathic physician  { - , osteopathic physician, - }
 { + or + } chiropractor   { - or podiatric physician and
surgeon - } , including any intern or resident.
  (b) Licensed practical nurse, registered nurse, nurse's aide,
home health aide or employee of an in-home health service.
  (c) Employee of the Department of Human Services, county health
department or community mental health and developmental
disabilities program.
  (d) Peace officer.
  (e) Clergyman.
  (f) Licensed clinical social worker.
  (g) Physical, speech or occupational therapists.
  (h) Senior center employee.
  (i) Information and referral or outreach worker.
  (j) Licensed professional counselor or licensed marriage and
family therapist.
  (k) Any public official who comes in contact with elderly
persons in the performance of the official's official duties.
  SECTION 5. ORS 316.144 is amended to read:
  316.144. A resident or nonresident individual who is certified
as eligible under ORS 442.561, 442.562, 442.563 or 442.564, and
is licensed as a physician   { - or podiatric physician and
surgeon - }  under ORS chapter 677, licensed as a physician
assistant under ORS chapter 677, licensed as a nurse practitioner
under ORS chapter 678, licensed as a certified registered nurse
anesthetist under ORS chapter 678, licensed as a dentist under
ORS chapter 679 or licensed as an optometrist under ORS 683.010
to 683.335 is entitled to the tax credit described in ORS 316.143
even if not a member of the hospital medical staff if the Office
of Rural Health certifies that the individual:
  (1) Has a rural practice that amounts to 60 percent of the
individual's practice;   { - and - }
  (2) If a  { + nonpodiatric + } physician or a physician
assistant, can cause a patient to be admitted to the hospital;
 { - and - }
  (3) If a certified registered nurse anesthetist, is employed by
or has a contractual relationship with one of the hospitals
described in ORS 316.143 (1); and
  (4) If an optometrist, has consulting privileges with a
hospital listed in ORS 316.143 (1). This subsection does not
apply to an optometrist who qualifies as a 'frontier rural
practitioner,' as defined by the Office of Rural Health.
  SECTION 6. ORS 414.211 is amended to read:
  414.211. (1) There is established a Medicaid Advisory Committee
consisting of not more than 15 members appointed by the Governor.
  (2) The committee shall be composed of:
  (a) A physician licensed  { + to practice medicine or
osteopathy + } under ORS chapter 677;
  (b) Two members of health care consumer groups that include
Medicaid recipients;
  (c) Two Medicaid recipients, one of whom shall be a disabled
person;
  (d) The Assistant Director for Health or designee;
  (e) Health care providers;
  (f) Persons associated with health care organizations,
including but not limited to managed care plans under contract to
the Medicaid program; and
  (g) Members of the general public.
  (3) In making appointments, the Governor shall consult with
appropriate professional and other interested organizations. All
members appointed to the committee shall be familiar with the
medical needs of low income persons.
  (4) The term of office for each member shall be two years, but
each member shall serve at the pleasure of the Governor.
  (5) Members of the committee shall receive no compensation for
their services but, subject to any applicable state law, shall be
allowed actual and necessary travel expenses incurred in the
performance of their duties from the Public Welfare Account.
  SECTION 7. ORS 421.467 is amended to read:
  421.467. (1) Subject to ORS 421.468, the governing body of a
county or city in this state may transfer a local inmate to the
temporary custody of the Department of Corrections solely for
employment at a forest work camp established under ORS 421.455 to
421.480. The county or city transferring the local inmate shall
pay the cost of transportation and other expenses incidental to
the local inmate's conveyance to the forest work camp and the
return of the local inmate to the county or city, including the
expenses of law enforcement officers accompanying the local
inmate, and is responsible for costs of any medical treatment of
the local inmate while the local inmate is employed at the forest
work camp not compensated under ORS 655.505 to 655.555.
  (2) Before a local inmate is sent to a forest work camp, the
governing body of the county or city shall cause the local inmate
to be given such inoculations as are necessary in the public
interest, and must submit to the Department of Corrections a
certificate, signed by a physician licensed  { + to practice
medicine or osteopathy + } under ORS chapter 677, that the local
inmate is physically and mentally able to perform the work
described in ORS 421.470, and is free from communicable disease.
  SECTION 8. ORS 430.735 is amended to read:
  430.735. As used in ORS 430.735 to 430.765:
  (1) 'Abuse' means one or more of the following:
  (a) Any death caused by other than accidental or natural means.
  (b) Any physical injury caused by other than accidental means,
or that appears to be at variance with the explanation given of
the injury.
  (c) Willful infliction of physical pain or injury.
  (d) Sexual harassment or exploitation, including but not
limited to any sexual contact between an employee of a facility
or community program and an adult.
  (2) 'Adult' means a person who is mentally ill or
developmentally disabled, who is 18 years of age or older and
receives services from a community program or facility.
  (3) 'Adult protective services' means the necessary actions
taken to prevent abuse or exploitation of an adult, to prevent
self-destructive acts and to safeguard an adult's person,
property and funds. Any actions taken to protect an adult shall
be undertaken in a manner that is least intrusive to the adult
and provides for the greatest degree of independence.
  (4) 'Care provider' means an individual or facility that has
assumed responsibility for all or a portion of the care of an
adult as a result of a contract or agreement.
  (5) 'Community program' means a community mental health and
developmental disabilities program as established in ORS 430.610
to 430.695.
  (6) 'Division' means the Mental Health and Developmental
Disability Services Division of the Department of Human Services.
  (7) 'Facility' means a residential treatment home or facility,
residential care facility, adult foster care home, residential
training home or facility or crisis respite facility.
  (8) 'Law enforcement agency' means:
  (a) Any city or municipal police department;
  (b) Any county sheriff's office;
  (c) The Oregon State Police; or
  (d) Any district attorney.
  (9) 'Public or private official' means:
  (a) Physician  { + licensed under ORS chapter 677 + },
naturopathic physician,   { - osteopathic physician, - }
psychologist  { - , - }  { +  or + } chiropractor   { - or
podiatric physician and surgeon - } , including any intern or
resident;
  (b) Licensed practical nurse, registered nurse, nurse's aide,
home health aide or employee of an in-home health service;
  (c) Employee of the Department of Human Services, county health
department, community mental health and developmental
disabilities program or private agency contracting with a public
body to provide any community mental health service;
  (d) Peace officer;
  (e) Member of the clergy;
  (f) Licensed clinical social worker;
  (g) Physical, speech or occupational therapist;
  (h) Information and referral, outreach or crisis worker;
  (i) Attorney;
  (j) Licensed professional counselor or licensed marriage and
family therapist; or
  (k) Any public official who comes in contact with adults in the
performance of the official's duties.
  SECTION 9. ORS 441.063 is amended to read:
  441.063. The rules of the hospital shall include provisions for
the use of the hospital facilities by duly licensed podiatric
physicians and surgeons subject to rules and regulations
governing such use established by the medical staff and the
podiatric staff of the hospital. Such staff comprised of
 { + nonpodiatric + } physicians
  { - and - }  or podiatric physicians and surgeons,  { + or
both,  + }shall regulate the admission and the conduct of the
podiatric physicians and surgeons while using the facilities of
the hospital and shall prescribe procedures whereby the podiatric
physician and surgeon's use of the facilities may be suspended or
terminated.
  SECTION 10. ORS 441.064 is amended to read:
  441.064. (1) The rules of any hospital in this state may grant
admitting privileges to nurse practitioners licensed and
certified under ORS 678.375 for purposes of patient care, subject
to hospital and medical staff bylaws, rules and regulations
governing admissions and staff privileges.
  (2) Rules shall be in writing and may include, but need not be
limited to:
  (a) Limitations on the scope of privileges;
  (b) Monitoring and supervision of nurse practitioners in the
hospital by physicians who are members of the medical staff;
  (c) A requirement that a nurse practitioner co-admit patients
with a physician who is a member of the medical staff; and
  (d) Qualifications of nurse practitioners to be eligible for
privileges including but not limited to requirements of prior
clinical and hospital experience.
  (3) The rules may also regulate the admissions and the conduct
of nurse practitioners while using the facilities of the hospital
and may prescribe procedures whereby a nurse practitioner's
privileges may be suspended or terminated. The hospital may
refuse such privileges to nurse practitioners only upon the same
basis that privileges are refused to other medical providers.
  (4) For purposes of this section, 'physician'   { - has the
meaning given the term in ORS 677.010 - }  { +  means any person
who holds a degree of Doctor of Medicine or Doctor of Osteopathy
and is licensed under ORS chapter 677 + }.
  SECTION 11. ORS 442.700 is amended to read:
  442.700. As used in ORS 442.700 to 442.760:
  (1) 'Board of governors' means the governors of a cooperative
program as described in ORS 442.720.
  (2) 'Cooperative program' means a program among two or more
health care providers for the purpose of providing heart and
kidney transplant services including, but not limited to, the
sharing, allocation and referral of physicians, patients,
personnel, instructional programs, support services, facilities,
medical, diagnostic, laboratory or therapeutic services,
equipment, devices or supplies, and other services traditionally
offered by health care providers.
  (3) 'Director' means the Director of Human Services.
  (4) 'Health care provider' means a hospital, physician or
entity, a significant part of whose activities consist of
providing hospital or physician services in this state. For
purposes of the immunities provided by ORS 442.700 to 442.760 and
646.740, 'health care provider' includes any officer, director,
trustee, employee, or agent of, or any entity under common
ownership and control with, a health care provider.
  (5) 'Hospital' means a health care facility defined in ORS
442.015 (14)(a) to (d) and licensed under ORS 441.015 to 441.097
 
and includes community health programs established under ORS
430.610 to 430.695.
  (6) 'Order' means a decision issued by the director under ORS
442.710 either approving or denying an application for a
cooperative program and includes modifications of an original
order under ORS 442.730 (3)(b) and ORS 442.740 (1) and (4).
  (7) 'Party to a cooperative program agreement' or 'party '
means an entity that enters into the principal agreement to
establish a cooperative program and applies for approval under
ORS 442.700 to 442.760 and 646.740 and any other entity that,
with the approval of the director, becomes a member of a
cooperative program.
  (8) 'Physician' means   { - a physician defined in ORS 677.010
(12) and - }   { + any person who holds a degree of Doctor of
Medicine or Doctor of Osteopathy and is + } licensed under ORS
chapter 677.
  SECTION 12. ORS 475.950 is amended to read:
  475.950. (1) A person commits the offense of failure to report
a precursor substances transaction if the person does any of the
following:
  (a) Sells, transfers or otherwise furnishes any precursor
substance described in ORS 475.940 (1) and does not, at least
three days before delivery of the substance, submit to the
Department of State Police a report that meets the reporting
requirements established by rule under ORS 475.945.
  (b) Receives any precursor substance described in ORS 475.940
(1) and does not, within 10 days after receipt of the substance,
submit to the Department of State Police a report that meets the
reporting requirements established by rule under ORS 475.945.
  (2) This section does not apply to any of the following:
  (a) Any pharmacist or other authorized person who sells or
furnishes a substance described under ORS 475.940 (1) upon the
prescription of a physician { +  licensed under ORS chapter
677 + }, dentist  { - , podiatric physician and surgeon - }  or
veterinarian.
  (b) Any practitioner, as defined in ORS 475.005, who
administers or furnishes a substance described under ORS 475.940
(1) to patients upon prescription.
  (c) Any person licensed by the State Board of Pharmacy who
sells, transfers or otherwise furnishes a substance described
under ORS 475.940 (1) to a licensed pharmacy, physician, dentist
 { - , podiatric physician and surgeon - }  or veterinarian for
distribution to patients upon prescription.
  (d) Any person who is authorized by rule under ORS 475.945 to
report in an alternate manner if the person complies with the
alternate reporting requirements.
  (e) Any patient of a practitioner, as defined in ORS 475.005,
who obtains a substance described under ORS 475.940 (1) from a
licensed pharmacist, physician, dentist  { - , podiatric
physician and surgeon - }  or veterinarian pursuant to a
prescription.
  (3) Penalties related to providing false information on a
report required under this section are provided under ORS
475.965.
  (4) The offense described in this section, failure to report a
precursor substances transaction, is a Class A misdemeanor.
  SECTION 13. ORS 659.470 is amended to read:
  659.470. As used in ORS 659.470 to 659.494:
  (1) 'Covered employer' means an employer described in ORS
659.472.
  (2) 'Eligible employee' means any employee of a covered
employer other than those employees exempted under the provisions
of ORS 659.474.
  (3) 'Family leave' means a leave of absence described in ORS
659.476.
 
  (4) 'Family member' means the spouse of an employee, the
biological, adoptive or foster parent or child of the employee, a
parent-in-law of the employee or a person with whom the employee
was or is in a relationship of in loco parentis.
  (5) 'Health care provider' means the person who is primarily
responsible for providing health care to an eligible employee or
a family member of an eligible employee, and who is a physician
licensed to practice medicine and surgery, including a doctor of
osteopathy  { - , a podiatrist, - }   { + or podiatry, + } a
dentist, a clinical psychologist, an optometrist, a naturopath, a
nurse practitioner, a direct entry midwife, a nurse-midwife or a
clinical social worker, authorized to practice and performing
within the scope of their professional license as provided for by
law. 'Health care provider' includes a Christian Science
practitioner listed with the First Church of Christ Scientist in
Boston, Massachusetts, who is primarily responsible for the
treatment of the eligible employee or a family member of the
eligible employee. 'Health care provider' includes a
chiropractor, but only to the extent the chiropractor provides
treatment consisting of manual manipulation of the spine to
correct a subluxation demonstrated to exist by X-rays.
  (6) 'Serious health condition' means:
  (a) An illness, injury, impairment or physical or mental
condition that requires inpatient care in a hospital, hospice or
residential medical care facility;
  (b) An illness, disease or condition that in the medical
judgment of the treating health care provider poses an imminent
danger of death, is terminal in prognosis with a reasonable
possibility of death in the near future, or requires constant
care; or
  (c) Any period of disability due to pregnancy, or period of
absence for prenatal care.
  SECTION 14. ORS 677.010 is amended to read:
  677.010. As used in this chapter, subject to the exemptions in
ORS 677.060 and unless the context requires otherwise:
  (1) 'Approved internship' means the first year of post-graduate
training served in a hospital that is approved by the board or by
the Accreditation Council of Graduate Medical Education, the
American Osteopathic Association or the Royal College of
Physicians and Surgeons of Canada.
  (2) 'Board' means the Board of Medical Examiners for the State
of Oregon.
  (3) 'Diagnose' means to examine another person in any manner to
determine the source or nature of a disease or other physical or
mental condition, or to hold oneself out or represent that a
person is so examining another person. It is not necessary that
the examination be made in the presence of such other person; it
may be made on information supplied either directly or indirectly
by such other person.
  (4) 'Dispense' means the preparation and delivery of a
prescription drug, pursuant to a lawful order of a practitioner,
in a suitable container appropriately labeled for subsequent
administration to or use by a patient or other individual
entitled to receive the prescription drug.
  (5) 'Dispensing physician' means a physician who purchases
prescription drugs for the purpose of dispensing them to patients
or other individuals entitled to receive the prescription drug
and who dispenses them accordingly.
  (6) 'Drug' means all medicines and preparations for internal or
external use of humans, intended to be used for the cure,
mitigation or prevention of diseases or abnormalities of humans,
which are recognized in any published United States Pharmacopoeia
or National Formulary, or otherwise established as a drug.
  (7) 'Fellow' means an individual who has not qualified under
ORS 677.100 (1) and (2) and who is pursuing some special line of
study as part of a supervised program of a school of medicine, a
hospital approved for internship or residency training, or an
institution for medical research or education that provides for a
period of study under the supervision of a responsible member of
that hospital or institution, such school, hospital or
institution having been approved by the board.
  (8) 'Impaired physician' means a physician who is unable to
practice medicine with reasonable skill and safety by reason of
mental illness; physical illness, including, but not limited to,
physical deterioration that adversely affects cognition, motor or
perceptive skill; or habitual or excessive use or abuse of drugs,
alcohol or other substances that impair ability.
  (9) 'Intern' means an individual who has entered into a
hospital or hospitals for the first year of post-graduate
training.
  (10) 'License' means permission to practice, whether by
license, registration or certification.
  (11) 'Licensee' means an individual holding a valid license
issued by the board.
  (12) 'Physician' means any person who holds a degree of Doctor
of Medicine   { - or - }  { + , + } Doctor of Osteopathy { +  or
Doctor of Podiatric Medicine, is licensed by the Board of Medical
Examiners and is working within the scope of that license + }.
  (13) 'Podiatric physician and surgeon' means a
 { - podiatric - } physician   { - and surgeon - }   { + holding
a degree of Doctor of Podiatric Medicine and + } licensed under
ORS 677.805 to 677.855 to treat ailments of the human foot, ankle
and tendons directly attached to and governing the function of
the foot and ankle.
  (14) 'Prescribe' means to direct, order or designate the use of
or manner of using by spoken or written words or other means.
  (15) 'Resident' means an individual who, after the first year
of post-graduate training, in order to qualify for some
particular specialty in the field of medicine, pursues a special
line of study as part of a supervised program of a hospital
approved by the board.
  (16) 'Approved school of medicine' means a school offering a
full-time resident program of study in medicine or osteopathy
leading to a degree of Doctor of Medicine or Doctor of
Osteopathy, such program having been fully accredited or
conditionally approved by the Liaison Committee on Medical
Education, or its successor agency, or the American Osteopathic
Association, or its successor agency, or having been otherwise
determined by the board to meet the association standards as
specifically incorporated into board rules.
  SECTION 15. ORS 677.087 is amended to read:
  677.087. (1) Any physician   { - or podiatric physician and
surgeon - }  having agreed with a patient to perform any surgical
operation or procedure, shall perform the surgery personally or,
prior to surgery, shall inform the patient that the physician
 { - or podiatric physician and surgeon - }  will not be
performing the surgery.
  (2) This section shall not apply when the physician   { - or
podiatric physician and surgeon - } , because of an emergency,
cannot personally notify the patient that the physician   { - or
podiatric physician and surgeon - }  will not be performing the
surgery.
  SECTION 16. ORS 677.095 is amended to read:
  677.095. (1) A physician   { - or podiatric physician and
surgeon - } licensed to practice medicine or podiatry by the
Board of Medical Examiners for the State of Oregon has the duty
to use that degree of care, skill and diligence that is used by
ordinarily careful physicians   { - or podiatric physicians and
surgeons - }  in the same or similar circumstances in the
community of the physician   { - or podiatric physician and
surgeon - }  or a similar community.
 
  (2) In any suit, action or arbitration seeking damages for
professional liability from a health care provider, no issue
shall be precluded on the basis of a default, stipulation,
agreement or any other outcome at any stage of an investigation
or an administrative proceeding, including but not limited to a
final order.
  SECTION 17. ORS 677.097 is amended to read:
  677.097. (1) In order to obtain the informed consent of a
patient, a physician   { - or podiatric physician and surgeon - }
shall explain the following:
  (a) In general terms the procedure or treatment to be
undertaken;
  (b) That there may be alternative procedures or methods of
treatment, if any; and
  (c) That there are risks, if any, to the procedure or
treatment.
  (2) After giving the explanation specified in subsection (1) of
this section, the physician   { - or podiatric physician and
surgeon - }  shall ask the patient if the patient wants a more
detailed explanation. If the patient requests further
explanation, the physician   { - or podiatric physician and
surgeon - }  shall disclose in substantial detail the procedure,
the viable alternatives and the material risks unless to do so
would be materially detrimental to the patient. In determining
that further explanation would be materially detrimental the
physician   { - or podiatric physician and surgeon - }  shall
give due consideration to the standards of practice of reasonable
 { - medical or podiatric - }  practitioners in the same or a
similar community under the same or similar circumstances.
  SECTION 18. ORS 677.188 is amended to read:
  677.188. As used in ORS 677.190, unless the context requires
otherwise:
  (1) 'Fraud or misrepresentation' means the intentional
misrepresentation or misstatement of a material fact, concealment
of or failure to make known any material fact, or any other means
by which misinformation or a false impression knowingly is given.
  (2) 'Fraudulent claim' means a claim submitted to any patient,
insurance or indemnity association, company or individual for the
purpose of gaining compensation, which the person making the
claim knows to be false.
  (3) 'Manifestly incurable condition, sickness, disease or
injury' means one that is declared to be incurable by competent
physicians and surgeons or by other recognized authority.
  (4) 'Unprofessional or dishonorable conduct' means conduct
unbecoming a person licensed to practice medicine or podiatry, or
detrimental to the best interests of the public, and includes:
  (a) Any conduct or practice contrary to recognized standards of
ethics of the medical or podiatric profession or any conduct or
practice which does or might constitute a danger to the health or
safety of a patient or the public or any conduct, practice or
condition which does or might impair a physician's   { - or
podiatric physician and surgeon's - }  ability safely and
skillfully to practice medicine or podiatry;
  (b) Willful performance of any surgical or medical treatment
which is contrary to acceptable medical standards; and
  (c) Willful and repeated ordering or performance of unnecessary
laboratory tests or radiologic studies; administration of
unnecessary treatment; employment of outmoded, unproved or
unscientific treatments; failure to obtain consultations when
failing to do so is not consistent with the standard of care; or
otherwise utilizing medical service for diagnosis or treatment
which is or may be considered inappropriate or unnecessary.
  SECTION 19. ORS 677.265 is amended to read:
  677.265. In addition to any other powers granted by this
chapter, the Board of Medical Examiners for the State of Oregon
may:
  (1) Adopt necessary and proper rules for administration of this
chapter including but not limited to:
  (a) Establishing fees and charges to carry out its legal
responsibilities, subject to prior approval by the Oregon
Department of Administrative Services and a report to the
Emergency Board prior to adopting the fees and charges. Such fees
and charges shall be within the budget authorized by the
Legislative Assembly as that budget may be modified by the
Emergency Board. The fees and charges established under this
section shall not exceed the cost of administering the program or
the purpose for which the fee or charge is established, as
authorized by the Legislative Assembly for the board's budget, or
as modified by the Emergency Board or future sessions of the
Legislative Assembly.
  (b) Establishing standards and tests to determine the moral,
intellectual, educational, scientific, technical and professional
qualifications required of applicants for licenses under this
chapter.
  (c) Enforcing the provisions of this chapter and exercising
general supervision over the practice of medicine and podiatry
within this state. In determining whether to discipline a
licensee for a standard of care violation, the board shall
determine whether the licensee used that degree of care, skill
and diligence that is used by ordinarily careful physicians
 { - or podiatric physicians and surgeons - }  in the same or
similar circumstances in the community of the physician   { - or
podiatric physician and surgeon - }  or a similar community.
  (2) Issue, deny, suspend and revoke licenses and limited
licenses, assess costs of proceedings and fines and place
licensees on probation as provided in this chapter.
  (3) Use the gratuitous services and facilities of private
organizations to receive the assistance and recommendations of
such organizations in administering this chapter.
  (4) Make its personnel and facilities available to other
regulatory agencies of this state, or other bodies interested in
the development and improvement of the practice of medicine or
podiatry in this state, upon such terms and conditions for
reimbursement as are agreed to by the board and the other agency
or body.
  (5) Appoint examiners, who need not be members of the board,
and employ or contract with the American Public Health
Association or the National Board of Medical Examiners or other
organizations, agencies and persons to prepare examination
questions and score examination papers.
  (6) Determine the schools, colleges, universities, institutions
and training acceptable in connection with licensing under this
chapter. All residency, internship and other training programs
carried on in this state by any hospital, institution or medical
facility shall be subject to approval by the board. The board
shall accept the approval by the American Osteopathic Association
or the American Medical Association.
  (7) Prescribe the time, place, method, manner, scope and
subjects of examinations under this chapter.
  (8) Prescribe all forms that it considers appropriate for the
purposes of this chapter, and require the submission of
photographs, fingerprints and relevant personal history data by
applicants for licensure under this chapter.
  (9) Administer oaths, issue notices and subpoenas in the name
of the board, enforce subpoenas in the manner authorized by ORS
183.440, hold hearings and perform such other acts as are
reasonably necessary to carry out its duties under this chapter.
  SECTION 20. ORS 677.450 is amended to read:
  677.450. The Board of Medical Examiners may release information
received under ORS 441.820 concerning the revocation or
restriction of a physician's   { - or podiatric physician and
surgeon's - }  activities at a health care facility to any other
health care facility licensed under ORS 441.015 to 441.087,
441.525 to 441.595, 441.815, 441.820, 441.990, 442.342, 442.344
and 442.400 to 442.463 at which that physician   { - or podiatric
physician and surgeon - }  holds or has applied for staff
privileges or other right to practice medicine or podiatry at the
facility.
  SECTION 21. ORS 677.805 is amended to read:
  677.805. As used in ORS 677.805 to 677.855:
  (1) 'Ankle' means the tibial plafond and its posterolateral
border or posterior malleolus, the medial malleolus, the distal
fibula or lateral malleolus, and the talus.
  (2) 'Board' means the Board of Medical Examiners for the State
of Oregon.
  (3) 'Council' means the Advisory Council on Podiatry.
  (4) 'Podiatric physician and surgeon' means a
 { - podiatric - } physician   { - and surgeon - }  whose
practice is limited to treating ailments of the human foot, ankle
and tendons directly attached to and governing the function of
the foot and ankle.
  (5) 'Podiatry' means the diagnosis or the medical, physical or
surgical treatment of ailments of the human foot, ankle and
tendons directly attached to and governing the function of the
foot and ankle, except treatment involving the use of a general
or spinal anesthetic unless the treatment is performed in a
hospital certified in the manner described in ORS 441.055 (2) or
in an ambulatory surgical center certified by the Health Division
and is under the supervision of or in collaboration with a
 { - physician licensed to practice - }   { + doctor of + }
medicine  { + or osteopathy licensed + } by the Board of Medical
Examiners for the State of Oregon.  ' Podiatry' does not include
the administration of general or spinal anesthetics or the
amputation of the entire foot.
  SECTION 22. ORS 677.815 is amended to read:
  677.815. (1) ORS 677.805 to 677.855 does not prevent:
  (a) Any person, firm or corporation from manufacturing,
selling, fitting or adjusting any shoe or appliance designed and
intended to equalize pressure on different parts of the foot.
  (b) The sale by licensed druggists of plasters, salves and
lotions for the relief and cure of corns, warts, callosities and
bunions.
  (2) ORS 677.805 to 677.855 shall not be construed to apply to
or interfere with:
  (a) The practice of any person whose religion treats or
administers to the sick or suffering by purely spiritual means,
nor with any individual's selection of any such person.
  (b) Physicians licensed by the Board of Medical Examiners for
the State of Oregon { +  to practice medicine or osteopathy + },
nor to surgeons of the United States Army, Navy and United States
Public Health Service, when in actual performance of their
official duties.
  SECTION 23. ORS 677.855 is amended to read:
  677.855. (1) An advisory council to consist of five persons and
to be known as the Advisory Council on Podiatry hereby is created
to advise the Board of Medical Examiners for the State of Oregon
in carrying out the purposes and enforcing the provisions of ORS
677.805 to 677.855. Members of the council shall be appointed for
three-year terms, but none shall serve more than three
consecutive terms without the lapse of at least one term.
  (2) Of the members of the council to be appointed by the
Governor:
  (a) Three shall be podiatrists who have been residents of this
state for at least two years and have held licenses as
podiatrists for no less than two years.
  (b) One shall be appointed from among members of the general
public.
 
  (3) The board shall appoint as the fifth member of the council
a member of the board who   { - is also a physician - }  { +
holds a degree of Doctor of Medicine or Doctor of Osteopathy + }.
  (4) If a vacancy occurs, the Governor or the board shall
appoint a member, as appropriate, to serve for the unexpired
term.
  (5) All appointments of members of the council by the Governor
are subject to confirmation by the Senate pursuant to section 4,
Article III of the Oregon Constitution.
  (6) Not later than February 1 of each year, the Oregon
Podiatric Medical Association shall nominate three qualified
podiatrists for appointment to the vacancy under subsection
(2)(a) of this section of the member of the council whose term
expires in that year, and shall certify its nominees to the
Governor. The Governor may make the appointment from among the
nominees whose names were submitted by the Oregon Podiatric
Medical Association.
  (7) Members are entitled to compensation and expenses as
provided in ORS 292.495.
  (8) The board may delegate to the council any of its duties
under ORS 677.805 to 677.855.
  SECTION 24. ORS 688.130 is amended to read:
  688.130. (1) Unless the education and training requirements
described in ORS 688.134 have been met, no licensed physical
therapist or person who holds a temporary permit issued under ORS
688.110 shall use physical therapy upon any person except where
there has been:
  (a) Prior evaluation of dysfunction of the person by the
physical therapist by the use of recognized evaluative physical
therapy tests and procedures; and either
  (b) Diagnosis or referral by a physician   { - or a podiatric
physician and surgeon - }  licensed under ORS chapter 677 by the
Board of Medical Examiners for the State of Oregon, a dentist
licensed by the Oregon Board of Dentistry, a physician assistant
licensed under ORS chapter 677, a chiropractic physician licensed
under ORS chapter 684 by the State Board of Chiropractic
Examiners, a naturopathic physician licensed under ORS chapter
685 by the Board of Naturopathic Examiners or a nurse
practitioner certified under ORS 678.375; or
  (c) Diagnosis or referral made in another state by a medical
doctor, osteopathic physician or podiatric physician and surgeon
licensed by an authority of that state similar to the Board of
Medical Examiners for the State of Oregon or by a dentist
licensed by an authority of that state similar to the Oregon
Board of Dentistry.
  (2) No person shall practice as a physical therapist assistant
unless the person is licensed under ORS 688.090 and such practice
is solely under the supervision and direction of a physical
therapist.
  SECTION 25. ORS 688.132 is amended to read:
  688.132. (1) If a licensed physical therapist administers
physical therapy to a person as authorized in ORS 688.130 (1)(a),
the physical therapist must immediately refer the person to a
medical doctor, osteopathic physician, chiropractic physician,
podiatric physician and surgeon, naturopathic physician, dentist,
physician assistant or nurse practitioner if:
  (a) Signs and symptoms are present that require treatment or
diagnosis by such providers or for which physical therapy is
contraindicated or for which treatment is outside the knowledge
of the physical therapist or scope of practice of physical
therapy; or
  (b) The physical therapist continues therapy and 30 days have
passed since the initial physical therapy treatment has been
administered, unless:
  (A) The individual is a child or a student eligible for special
education, as defined by state or federal law, and is being seen
pursuant to the child's or the student's individual education
plan or individual family service plan;
  (B) The individual is a student athlete at a public or private
school, college or university and is seeking treatment in that
role as athlete; or
  (C) The individual is a resident of a long term care facility
as defined in ORS 442.015 (14)(b)(A) and (B), a residential
facility as defined in ORS 443.400, an adult foster home as
defined in ORS 443.705 or an intermediate care facility for
mental retardation pursuant to federal regulations.
  (2) Notwithstanding any provision of ORS 742.520 to 742.542,
personal injury protection benefits are not required to be paid
for physical therapy treatment of a person covered by the
applicable insurance policy unless the person is referred to the
physical therapist by a   { - licensed - }  physician { +
licensed under ORS chapter 677 + },   { - podiatric physician and
surgeon, - }  naturopathic physician, dentist, physician's
assistant or nurse practitioner.
  SECTION 26. ORS 688.230 is amended to read:
  688.230. (1) Any licensed health facility, licensed physical
therapist, licensed physical therapist assistant,   { - the
Oregon Physical Therapy Association or - }  physician licensed
under ORS chapter 677  { - , podiatric physician and surgeon - }
or dentist  { + or the Oregon Physical Therapy Association + }
shall, and any other person may, report suspected violations of
ORS 688.010 to 688.220 to the Physical Therapist Licensing Board.
The reports are confidential as provided under ORS 676.175.
  (2) Any person who reports or provides information to the board
under subsection (1) of this section and who provides information
in good faith shall not be subject to an action for civil damages
as a result thereof.
  SECTION 27. ORS 742.400 is amended to read:
  742.400. (1) As used in this section, 'claim' means:
  (a) A written request for payment for injury alleged to have
been caused by professional negligence that is made by or on
behalf of the injured person to an insurer; or
  (b) A written notification to an insurer by an insured that a
person has requested payment from the insured for injury alleged
to have been caused by professional negligence.
  (2) Any insurer that issues or underwrites professional
liability insurance in this state to any physician   { - or
podiatric physician and surgeon - }  licensed by the Board of
Medical Examiners for the State of Oregon, to any optometrist
registered by the Oregon Board of Optometry, to any dentist or
dental hygienist licensed by the Oregon Board of Dentistry or to
any naturopath licensed by the Board of Naturopathic Examiners
shall report any claim against the insured for alleged
professional negligence to the appropriate licensing board within
30 days after receiving notice of the claim from the insured or
any other person.
  (3) The report required by subsection (2) of this section shall
be kept confidential by all persons who make or receive it until
the case is settled or closed and shall include:
  (a) The name of the insured;
  (b) The name of the person making the claim;
  (c) The reason or reasons for which the claim is made; and
  (d) Any additional information the Director of the Department
of Consumer and Business Services considers necessary.
  (4) Any insurer required to report to a board under this
section shall also be required to advise the appropriate
licensing board of any settlements, awards or judgments against a
physician, optometrist, dentist or dental hygienist or naturopath
within 30 days after the date of the settlement, award or
judgment.
  (5) The appropriate board shall provide copies of all reports
required by subsections (2) and (4) of this section to each
health care facility licensed under ORS 441.015 to 441.087,
441.525 to 441.595, 441.815, 441.820, 441.990, 442.342, 442.344
and 442.400 to 442.463 that employs or grants staff privileges to
the person against whom the claim was filed.
  SECTION 28. ORS 743.803 is amended to read:
  743.803. (1) No medical services contract may require the
provider, as an element of the contract or as a condition of
compensation for services, to agree:
  (a) In the event of alleged improper medical treatment of a
patient, to indemnify the other party to the medical services
contract for any damages, awards or liabilities including but not
limited to judgments, settlements, attorney fees, court costs and
any associated charges incurred for any reason other than the
negligence or intentional act of the provider or the provider's
employees;
  (b) To charge the other party to the medical services contract
a rate for services rendered pursuant to the medical services
contract that is no greater than the lowest rate that the
provider charges for the same service to any other person;
  (c) To deny care to a patient because of a determination made
pursuant to the medical services contract that the care is not
covered or is experimental, or to deny referral of a patient to
another provider for the provision of such care, if the patient
is informed that the patient will be responsible for the payment
of such noncovered, experimental or referral care and the patient
nonetheless desires to obtain such care or referral; or
  (d) Upon the provider's withdrawal from or termination or
nonrenewal of the medical services contract, not to treat or
solicit a patient even at that patient's request and expense.
  (2) All medical services contracts shall:
  (a) Grant to the provider adequate notice and hearing
procedures, or such other procedures as are fair to the provider
under the circumstances, prior to termination or nonrenewal of
the medical services contract when such termination or nonrenewal
is based upon issues relating to the quality of patient care
rendered by the provider.
  (b) Set forth generally the criteria used by the other party to
the medical services contract for the termination or nonrenewal
of the medical services contract.
  (c) Entitle the provider to an annual accounting accurately
summarizing the financial transactions between the parties to the
medical services contract for that year.
  (d) Allow the provider to withdraw from the care of a patient
when, in the professional judgment of the provider, it is in the
best interest of the patient to do so.
  (e) Provide that a doctor of medicine or osteopathy licensed
under ORS chapter 677 shall be retained by the other party to the
medical services contract and shall be responsible for all final
medical and mental health decisions relating to coverage or
payment made pursuant to the medical services contract.
  (f) Provide that a physician { + , as defined under ORS
677.010, + } who is practicing in conformity with ORS 677.095 may
advocate a decision, policy or practice without being subject to
termination or penalty for the sole reason of such advocacy.
  (g)(A) Entitle the party to the medical services contract who
is being reimbursed for the provision of health care services on
a basis that includes financial risk withholds, or the party's
representative, to a full accounting of health benefits claims
data and related financial information on no less than a
quarterly basis by the party to a medical service contract who
has made reimbursement, as follows:
  (i) The data shall include all pertinent information relating
to the health care services provided, including related provider
and patient information, reimbursements made and amounts withheld
under the financial risk withhold provisions of the medical
 
services contract for the period of time under reconciliation and
settlement between the parties.
  (ii) Any reconciliation and settlement undertaken pursuant to a
medical services contract shall be based directly and exclusively
upon data provided to the party who is being reimbursed for the
provision of health care services.
  (iii) All data, including supplemental information or
documentation, necessary to finalize the reconciliation and
settlement provisions of a medical services contract relating to
financial risk withholds shall be provided to the party who is
being reimbursed for the provision of health care services no
later than 30 days prior to finalizing the reconciliation and
settlement.
  (B) Nothing in this paragraph shall be construed to prevent
parties to a medical services contract from mutually agreeing to
alternative reconciliation and settlement policies and
procedures.
  (3) The other party to a medical services contract shall not:
  (a) Refer to other documents or instruments in a contract
unless the nonprovider party agrees to make available to the
provider for review a copy of the documents or instruments within
72 hours of request; or
  (b) Provide as an element of a contract with a third party
relating to the provision of medical services to a patient of the
provider that the provider's patient may not sue or otherwise
recover from the nonprovider party, or must hold the nonprovider
party harmless for, any and all expenses, damages, awards or
liabilities that arise from the management decisions, utilization
review provisions or other policies or determinations of the
nonprovider party that have an impact on the provider's treatment
decisions and actions with regard to the patient.
  (4) An insurer, independent practice association, medical or
mental health clinic or other party to a medical services
contract shall provide the criteria for selection of parties to
future medical services contracts upon the request of current or
prospective parties.
  SECTION 29. ORS 746.600 is amended to read:
  746.600. As used in ORS 746.600 to 746.690 and 750.055:
  (1) 'Adverse underwriting decision' means, except as provided
in subsection (2) of this section, any of the following actions
with respect to insurance transactions involving insurance
coverage which is individually underwritten:
  (a) A declination of insurance coverage.
  (b) A termination of insurance coverage.
  (c) Failure of an agent to apply for insurance coverage with a
specific insurer which the agent represents and which is
requested by an applicant.
  (d) In the case of life or health insurance coverage, an offer
to insure at higher than standard rates.
  (e) In the case of other kinds of insurance coverage:
  (A) Placement by an insurer or agent of a risk with a residual
market mechanism, an unauthorized insurer or an insurer which
specializes in substandard risks.
  (B) The charging of a higher rate on the basis of information
which differs from that which the applicant or policyholder
furnished.
  (2) 'Adverse underwriting decision' does not include the
following actions, but the insurer or agent responsible for the
occurrence of the action shall nevertheless provide the applicant
or policyholder with the specific reason or reasons for the
occurrence:
  (a) The termination of an individual policy form on a class or
statewide basis.
  (b) A declination of insurance coverage solely because the
coverage is not available on a class or statewide basis.
  (c) The rescission of a policy.
  (3) 'Affiliate of' a specified person or 'person affiliated
with' a specified person means a person who directly, or
indirectly, through one or more intermediaries, controls, or is
controlled by, or is under common control with, the person
specified.
  (4) 'Agent' means a person licensed by the Director of the
Department of Consumer and Business Services as an insurance
agent, or a person to whom the director has issued a nonresident
broker's permit.
  (5) 'Applicant' means a person who seeks to contract for
insurance coverage, other than a person seeking group insurance
coverage which is not individually underwritten.
  (6) 'Consumer report' means any written, oral or other
communication of information bearing on a natural person's
creditworthiness, credit standing, credit capacity, character,
general reputation, personal characteristics or mode of living
which is used or expected to be used in connection with an
insurance transaction.
  (7) 'Consumer reporting agency' means a person who:
  (a) Regularly engages, in whole or in part, in assembling or
preparing consumer reports for a monetary fee;
  (b) Obtains information primarily from sources other than
insurers; and
  (c) Furnishes consumer reports to other persons.
  (8) 'Control' means, and the terms 'controlled by' or ' under
common control with' refer to, the possession, directly or
indirectly, of the power to direct or cause the direction of the
management and policies of a person, whether through the
ownership of voting securities, by contract other than a
commercial contract for goods or nonmanagement services, or
otherwise, unless the power of the person is the result of a
corporate office held in, or an official position held with, the
controlled person.
  (9) 'Declination of insurance coverage' means a denial, in
whole or in part, by an insurer or agent of requested insurance
coverage.
  (10) 'Individual' means a natural person who:
  (a) In the case of life or health insurance, is a past, present
or proposed principal insured or certificate holder;
  (b) In the case of other kinds of insurance, is a past, present
or proposed named insured or certificate holder;
  (c) Is a past, present or proposed policyowner;
  (d) Is a past or present applicant;
  (e) Is a past or present claimant; or
  (f) Derived, derives or is proposed to derive insurance
coverage under an insurance policy or certificate which is
subject to ORS 746.600 to 746.690 and 750.055.
  (11) 'Institutional source' means a person or governmental
entity which provides information about an individual to an
insurer, agent or insurance-support organization, other than:
  (a) An agent;
  (b) The individual who is the subject of the information; or
  (c) A natural person acting in a personal capacity rather than
in a business or professional capacity.
  (12) 'Insurance-support organization' means, except as provided
in subsection (13) of this section, a person who regularly
engages, in whole or in part, in assembling or collecting
information about natural persons for the primary purpose of
providing the information to an insurer or agent for insurance
transactions, including:
  (a) The furnishing of consumer reports to an insurer or agent
for use in connection with insurance transactions; and
  (b) The collection of personal information from insurers,
agents or other insurance-support organizations for the purpose
of detecting or preventing fraud, material misrepresentation or
 
material nondisclosure in connection with insurance underwriting
or insurance claim activity.
  (13) 'Insurance-support organization' does not include
insurers, agents, governmental institutions, medical care
institutions or medical professionals.
  (14) 'Insurance transaction' means any transaction involving
insurance primarily for personal, family or household needs
rather than business or professional needs and which entails:
  (a) The determination of an individual's eligibility for an
insurance coverage, benefit or payment; or
  (b) The servicing of an insurance application, policy or
certificate.
  (15) 'Insurer,' as defined in ORS 731.106, includes every
person engaged in the business of entering into policies of
insurance.
  (16) 'Investigative consumer report' means a consumer report,
or portion of a consumer report, for which information about a
natural person's character, general reputation, personal
characteristics or mode of living is obtained through personal
interviews with the person's neighbors, friends, associates,
acquaintances or others who may have knowledge concerning such
items of information.
  (17) 'Medical care institution' means a facility or institution
which is licensed to provide health care services to natural
persons, and includes but is not limited to health maintenance
organizations, home health agencies, hospitals, medical clinics,
public health agencies, rehabilitation agencies and skilled
nursing facilities.
  (18) 'Medical professional' means a person licensed or
certified to provide health care services to natural persons, and
includes but is not limited to chiropractors, clinical
dieticians, clinical psychologists, dentists, naturopaths,
nurses, occupational therapists, optometrists, pharmacists,
physical therapists, physicians { +  licensed under ORS chapter
677 + },
  { - podiatrists, - }  psychiatric social workers and speech
therapists.
  (19) 'Medical record information' means personal information
which:
  (a) Relates to an individual's physical or mental condition,
medical history or medical treatment; and
  (b) Is obtained from a medical professional, a medical care
institution, the individual, or the individual's spouse, parent
or legal guardian.
  (20) 'Personal information' means information which is
identifiable with an individual, which is gathered in connection
with an insurance transaction and from which information
judgments can be made about the individual's character, habits,
avocations, finances, occupations, general reputation, credit,
health or any other personal characteristics. 'Personal
information' includes an individual's name and address and
'medical record information' but does not include 'privileged
information ' except for privileged information which has been
disclosed in violation of ORS 746.665.
  (21) 'Policyholder' means a person who:
  (a) In the case of individual policies of life or health
insurance, is a current policyowner;
  (b) In the case of individual policies of other kinds of
insurance, is currently a named insured; or
  (c) In the case of group policies of insurance under which
coverage is individually underwritten, is a current certificate
holder.
  (22) 'Pretext interview' means an interview wherein the
interviewer, in an attempt to obtain information about a natural
person, does one or more of the following:
  (a) Pretends to be someone the interviewer is not.
  (b) Pretends to represent a person the interviewer is not in
fact representing.
  (c) Misrepresents the true purpose of the interview.
  (d) Refuses upon request to identify the interviewer.
  (23) 'Privileged information' means information which is
identifiable with an individual and which:
  (a) Relates to a claim for insurance benefits or a civil or
criminal proceeding involving the individual; and
  (b) Is collected in connection with or in reasonable
anticipation of a claim for insurance benefits or a civil or
criminal proceeding involving the individual.
  (24) 'Residual market mechanism' means an association,
organization or other entity involved in the insuring of risks
under ORS 735.005 to 735.145, 737.312 or other provisions of the
Insurance Code relating to insurance applicants who are unable to
procure insurance through normal insurance markets.
  (25) 'Termination of insurance coverage' or 'termination of an
insurance policy' means either a cancellation or a nonrenewal of
an insurance policy, in whole or in part, for any reason other
than the failure of a premium to be paid as required by the
policy.
  SECTION 30.  { + ORS 677.095, 677.097 and 677.805 to 677.855
are added to and made a part of ORS chapter 677. + }
                         ----------