03/01/2004 08:03 AM Senate JUD

                                                                                                                                
        SB 307-APPEAL BONDS: TOBACCO SETTLEMENT PARTIES                                                                     
                                                                                                                                
CHAIR SEEKINS announced that SB  307 was before the committee and                                                               
that  a  new  committee  substitute (CS)  was  prepared,  labeled                                                               
version I. He informed members that  in version I, the bond limit                                                               
was increased  from $25 million to  $100 million on page  2, line                                                               
2, and  Section 1(b) was  added on page  2, beginning on  line 4.                                                               
Section 1(b) reads:                                                                                                             
                                                                                                                                
     If  a  court finds  that  an  appellant is  dissipating                                                                    
     assets  outside  the  ordinary course  of  business  to                                                                    
     avoid the payment of a  judgment, the court may require                                                                    
     the appellant  to post a  bond in  an amount up  to the                                                                    
     full amount of the judgment.                                                                                               
                                                                                                                                
SENATOR  THERRIAULT  moved to  adopt  version  I as  the  working                                                               
document before the committee.                                                                                                  
                                                                                                                                
CHAIR SEEKINS asked if there was any objection or discussion.                                                                   
                                                                                                                                
SENATOR OGAN stated that he  had some reservations about the bond                                                               
limit  in the  last version  of SB  307 because  the $25  million                                                               
limit was  fairly low compared  to other states' limits.  He felt                                                               
that  $25 million  was low  enough  to provide  an incentive  for                                                               
defendants to appeal  a case for the purpose of  dragging it out.                                                               
He said the new $100 million  bond limit raises his comfort level                                                               
enough so  that he  no longer  objects to  the bill  moving [from                                                               
committee].                                                                                                                     
                                                                                                                                
SENATOR ELLIS asked if anyone was available to testify.                                                                         
                                                                                                                                
CHAIR SEEKINS  said that  a few  people had  signed up  to answer                                                               
questions  only.  He  said  he   is  not  aware  of  any  further                                                               
objections  from the  people who  spoke to  the committee  at the                                                               
last hearing.  He said the  companies involved have  not objected                                                               
to the changes.                                                                                                                 
                                                                                                                                
SENATOR OGAN moved CSSB 307(JUD),  version I, from committee with                                                               
its attached fiscal notes and individual recommendations.                                                                       
                                                                                                                                
SENATOR ELLIS objected.                                                                                                         
                                                                                                                                
A roll  call vote  was taken.  The motion  to move  CSSB 307(JUD)                                                               
carried with Senators Ogan, Therriault  and Seekins in favor, and                                                               
Senator Ellis opposed.                                                                                                          
                                                                                                                                
CHAIR  SEEKINS announced  that CSSB  307(JUD) moved  to the  next                                                               
committee of referral.