Oregon State Bar Bulletin — AUGUST/SEPTEMBER 2011

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The Oregon State Bar sponsored 18 bills in the 2011 session, of which 16 were passed into law.

One bill important to members changes the way the bar handles IOLTA reporting requirements. Currently the bar is required to treat noncompliance as a disciplinary matter, but SB 380 will permit the bar to begin handling this as an administrative violation, similar to non-payment of bar dues.

Another important bill, SB 386, changes how property that is gifted to one person is treated if that person later divorces.

The bar also passed bills making technical corrections to the new elective share statute (SB 385) and passed legislation clarifying indemnification rights of corporate officers (HB 2681). The later bill was in response to recent court rulings that raised concerns that such rights could be terminated without notice.

Here is a complete list of the OSB’s 2011 law-improvement proposals approved by the legislature and signed by the governor:

SB 379 (HOD / BOG Signature Requirement). Eliminate the requirement for 10 signatures on nominating petitions for BOG and HOD candidates.

SB 380 (IOLTA Sanction Bill). This bill would change the sanction for an IOLTA violation from a disciplinary sanction to an administrative one.

SB 382 (B-Engrossed) (Notice Requirements for Lien Claimants). This bill would specify that lien claimants are only required to provide notice to those mortgage assignees that are listed on a recorded assignment. Under current law, lien claimants are required to provide notice to all assignees, even though some assignees may not be listed on a recorded assignment and may be difficult or impossible to locate.

SB 383 (Changes to Notice of Defect Statutes). This bill would exempt small claims actions, as well as counterclaims in all actions, from coverage by the Notice of Defect statutes. Additionally the bill would permit service in such cases by certified mail.

SB 384 (B-Engrossed) (OPPPA Amendments). This bill proposes several minor amendments to the Oregon Private Prompt Payment Act.

SB 385 (Elective Share Technical Amendments). This proposal would make several technical changes to Oregon’s elective share statute.

SB 386 (Disposition of Gifted Property). This proposal removes gifted property from the presumption of equal contribution, while retaining the authority to divide the property as may be “just and proper” depending upon the facts of a particular case.

SB 387 (UPIA update). This bill would make several updates to the Oregon Uniform Principal and Income Act.

HB 2667 (Lawyer Referral Service). This bill makes several minor changes to existing law, including updating statutory references to the OSB’s Lawyer Referral Service to include their internet address.

HB 2681 (Vesting of Indemnification). This bill would prohibit a company from taking indemnification rights away from a director or past director unless the company’s articles of incorporation expressly allow the company to do so.

HB 2682 (Increase to Wage Garnishment Exemption). This bill increases Oregon’s wage garnishment exemption from $196 to $217.50, the amount of the exemption required under federal law.

HB 2683 (A-Engrossed) (Protective Proceedings). This bill would make technical changes to maintain confidentiality of certain documents received from the Department of Human Services in protective proceedings.

HB 2685 (Termination of Attorney-Client Relationships). This bill would permit the filing, upon the conclusion of a case, of a notice that the attorney-client relationship was terminated for the reason that the case is concluded.

HB 2686 (Amendments to Dissolution and Parental Rights Statutes) .This bill makes three changes to statutes dealing with dissolutions of marriage and acknowledgment of parental rights and responsibilities.

HB 2687 (B-Engrossed) (Temporary Support Orders). This bill makes three minor changes to temporary spousal and child support statutes.

HB 2688 (A-Engrossed) (Urban Reserve Statutory Correction). This bill would correct an erroneous statutory reference in the Urban Reserve statutes.

If you have questions about these bills or about the OSB legislative process, please contact any of the Public Affairs Committee members or the Public Affairs department staff: Susan Grabe, director, sgrabe@osbar.org or (503) 431-6380); David Nebel, legislative attorney, dnebel@osbar.org or (503) 431-6317); or Matt Shields, staff attorney, mshields@osbar.org or (503) 431-6358.

© 2011 Susan Grabe

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