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Governor Releases ‘Oregon Prosperity Roadmap’

What happened: On Dec. 3, Gov. Kotek responded to Oregon’s weakening economy and steadily eroding business climate by releasing Oregon’s Prosperity Roadmap, which identifies three goals: a top 10 spot in CNBC’s America’s Top States for Business ranking (Oregon is currently 39th), a top 10 spot in CNBC’s workforce subranking (Oregon is currently 23rd), and annual GDP growth of 2.2%, exceeding the state’s 2024 rate.

Road map strategies: To reach these goals, the roadmap includes the following, among other things:

  • Establish the position of chief prosperity officer and create the Governor’s Prosperity Council. Among other things, the council and chief prosperity officer will recommend tax changes to be considered in 2027. The governor intends to name people to these roles by Dec. 31.
  • Introduce legislation in 2026 creating a program to fast-track permitting for large projects.
  • Direct state agencies to submit permit inventories and look for opportunities to streamline licensing, permitting and certification.
  • Direct Business Oregon, the state’s economic development agency, to improve existing tools such as the strategic investment program and develop an economic development strategy focusing on key areas, including business retention and expansion and incentive modernization.
  • Enhance outreach to major employers.

Good first steps: OBI appreciates the governor’s focus on Oregon’s economy and business climate and supports the steps she has proposed. These are important first steps in reversing the state’s decline, and the effort will require sustained political will to succeed. Read OBI’s full statement here.

Oregon Leadership Summit: It was encouraging to hear the governor and others talk about the need to address Oregon’s economic performance at the annual Oregon Leadership Summit, which took place Dec. 8. The event’s panelists and speakers noted many opportunities for improvement involving the state’s land use system, its approach to permitting, its business climate and even the Moda Center, which plays a key role in bringing visitors and revenue to Portland.

New Paycheck Disclosure Requirement Takes Effect Jan. 1

What’s happening: Beginning Jan. 1, all employers must provide information to new employees about earnings and deductions to help them understand the itemized statements they receive in their pay statements. Employers must review and update this information by Jan. 1 every year. This new requirement is the result of SB 906, which the Legislature passed during the 2025 session.

Preexisting requirements: Employers already must provide itemized statements with every payment of wages or commissions. Such statements may be provided electronically as long as employees agree. Itemized statements must include, among other things, gross and net pay for the period and the amounts and purposes of any deductions, which typically include taxes, health insurance premiums and the like.

Template available: The Bureau of Labor and Industries has developed a template in English and Spanish that employers may adapt to meet the new notice requirement. Employers may provide the notice electronically or in print form, by posting it in a conspicuous location in the workplace or in another manner that ensures that the information is available in a location easily accessible to employees. Go here to learn more.

Update on Transportation Package Referendum Effort

What’s happening: No Tax Oregon, the group behind the referendum of portions of HB 3991, has submitted nearly 200,000 signatures to the Elections Division, which now goes through a process to sample the submissions and verify whether there are enough valid signatures to qualify for a vote. The number of signatures turned in should all but guarantee qualification given historic error rates.

The tax and fee package: Passed during this year’s special legislative session, HB 3991 will raise about $4.3 billion over the next decade through a collection of taxes and fees, from a 6-cent-per-gallon increase in the state gas tax to a doubling of the employee-paid payroll tax supporting public transit. Beginning in January 2026, that tax will increase from 0.1% to 0.2%. Employers must collect the tax and remit it to the state, and the increase may take employees by surprise. OBI has created a tool kit with tips for talking with employees about the increase, which you can find here.

The referral effort: Opponents of the transportation package are collecting signatures to refer most of its components to the ballot for an up-or-down vote by Oregonians (learn more about the effort at www.stopthegastax.com). If it qualifies, the issue would come before Oregon voters in November 2026.

Repeal speculation: Given the package’s deep unpopularity with Oregonians and uncertainty about its future, there is some speculation that legislators will preemptively repeal it during the 2026 legislative session, effectively undoing what they did just this fall.

Check Out New Oregon Business Matters Interviews

OBI’s Oregon Business Matters podcast released two new episodes this month. Check them out!

  • Bullseye Glass is Portland manufacturing institution, producing colored glass used by artists around the world since the 1970s. This fall, the company won OBI’s third annual Coolest Thing Made in Oregon contest. In this episode of Oregon Business Matters, host Angela Wilhelms talks with Bullseye Glass founder Dan Schwoerer about the company’s history and its unique products.
  • Columbia Distributing, based in Wilsonville, is one of the largest beverage distributors in the country, handling a broad mix of beverage brands, including Molson/Coors, 7-Up and many craft beers. The company’s many Oregon partners include Deschutes Brewery, 2 Towns Ciderhouse, Migration Brewing and Del Rio Wines. It’s also the nation’s largest distributor of Red Bull. In this episode, Angela talks with Columbia Distributing Chief Financial Officer Paul Meade.

Check out these recent interviews as well:

These and other episodes can be found on OBI’s website here and on major podcast platforms, including Apple, Spotify and YouTube.

OBI, The Partners Group Team Up for Pooled 401(k) Plan

Retirement plan option: OBI has teamed up with The Partners Group to offer OBI members discounted access to The Partners Retirement Plan – an innovative pooled 401(k) solution. A pooled employer plan (PEP) allows multiple employers to offer a 401(k) benefit to employees through a group structure while maintaining individual company design and control over the benefit – such as eligibility, employer match and vesting. This shared structure is designed to help reduce administrative burden, fiduciary risk and overall plan costs. Through this partnership, OBI members will see even more savings because TPG offers special pricing to OBI members!

Why a PEP makes sense: Oregon law requires employers to offer a retirement savings plan to their employees. Employers can do this through a government-sponsored program (OregonSaves) or through a qualified retirement plan like a 401(k). Many employers are looking for opportunities to reduce costs across their organizations. Many other employers struggle to keep up with the ongoing requirements needed to keep their plans compliant in an ever-changing legislative environment. With The Partners Retirement Plan, the majority of those responsibilities are outsourced to a dedicated team of professionals.

Learn more: Check out a fact sheet about The Partners Retirement Plan here, and contact The Partners Group here. Register here for a webinar with The Partners Group, which will take place on Jan. 22 from 10-10:30 a.m.

Policy and Rulemaking Updates

CPP application extension: After several member companies expressed concern about meeting the submittal deadline for energy intensive and trade exposed (EITE) facilities directly regulated under the Department of Environmental Quality’s (DEQ) Climate Protection Program (CPP), OBI negotiated an extension of the deadline from Dec. 15 to Jan. 15, 2026. Thirty-seven EITE facilities are directly regulated under the CPP, and much of the data DEQ sought in the required permit application was very complex and required significant facility-specific information on the carbon intensity of various manufacturing processes. Carbon intensity for manufacturers involves calculating the amount of energy (in the form of greenhouse gas emissions) necessary to produce a widget or product. The carbon intensity data will be used to inform the EITE carbon intensity rulemaking scheduled to begin in mid-2026. Many businesses have multiple product lines involving different raw materials, which can change rapidly in response to customer preferences or market opportunities. Anomalous production years, such as 2020, are another variable in determining carbon intensity. While this change may not have affected a large number of companies, it is a good example of the detailed and complex issues OBI tackles for members. OBI appreciates DEQ’s willingness to extend the permit deadline and will share more details on the upcoming rulemaking as they become available.

Homeless camping: OBI’s initiative petition repealing HB 3115 has met the signature threshold for the next step in the process, the production of a ballot title. Passed by the Legislature in 2021, HB 3115 ties the hands of cities that would like to exercise the authority granted by the U.S. Supreme Court in 2024 to address unsanctioned camping. Repealing HB 3115 would allow cities to use the management tools they had at their disposal prior to 2021. OBI hopes the Legislature will render the petition moot in 2026 by repealing HB 3115. If you would like to join the coalition supporting this effort, please visit OBI’s Local Control & Safety Act web page to sign up.

Recycling program litigation: On Nov. 24, the National Association of Wholesaler-Distributors (NAW) filed a motion asking a federal court in Oregon to prevent the state from enforcing its burdensome, complicated and expensive extended producer responsibility law. Called the Plastic Pollution and Recycling Modernization Act (RMA), the law requires certain packaging producers to pay high fees to the Circular Action Alliance (CAA), a third-party nonprofit chosen to implement the program. The program directs CAA to provide grants to local governments, subsidize new waste management infrastructure and educate Oregonians about upcoming recycling changes. In its filing, NAW argued that forcing its members and others to pay higher than expected costs would create irreparable harm to industry. Those payments can’t be recovered even if the lawsuit succeeds. Recently, CAA claimed to be under budget by 20% yet indicated no intention to issue refunds to producers. OBI and others have struggled to get detailed, transparent financial information from CAA and DEQ. Due to the high fees CAA has invoiced, many companies may be forced out of Oregon or withdraw products from the state’s market. The court is expected to issue a decision in 2026.

Unemployment rulemaking: OBI has submitted comments to the Oregon Employment Department about proposed rules related to SB 916, which allows striking workers to collect unemployment insurance benefits. The agency has proposed rules that would consider striking workers “actively seeking work” if they planned to return to their jobs when the strike ended. OBI’s comments note that this provision is contradictory, as striking workers are not seeking work – they’re on strike. The federal Social Security Act provides that state UI programs are eligible for federal funds only if agencies enforce requirements that claimants be able to work, available to work and actively seeking work. As OBI noted repeatedly during the 2025 session, the Oregon Employment Department can’t ignore those requirements. OBI also pointed out in its comments that the agency has failed to provide an analysis of the proposed rules’ impact on businesses, as required by law. SB 916 goes into effect on Jan. 1, and OBI expects the employment department to adopt final rules shortly. OBI continues to work with U.S. Department of Labor regarding federal compliance issues.

‘Bespoke’ manufacturing rules: The Bureau of Labor and Industries has held the first rules advisory committee meeting (RAC) for HB 2688, which requires some manufacturers to pay prevailing wage if they are providing bespoke items for a public works project. The discussion focused on the definition of bespoke and the types of projects or products that should be excluded from coverage. At this time, OBI doesn’t have a draft for review. However, we will share it with OBI members when we do. OBI seeks manufacturers that are willing to talk with us about work processes and production lines. Please email Duke Shepard if you are willing to participate in such a discussion.

Paid Leave Oregon comments: OBI also has provided comments on proposed rules related to Paid Leave Oregon. Among the issues OBI flagged is a proposal, discussed during a RAC meeting, that employers provide new notices or posters every time the employment department updates Paid Leave Oregon information. OBI urged the employment department to require updated notices or posters annually given the state’s proclivity for constantly changing rules, processes and guidance.

Prescription drug transparency: The Department of Consumer and Business Services in December held its annual public hearing on prescription drug price transparency. Much of the discussion centered on biosimilar drugs and their regulatory framework. Biosimilar drugs come from living organisms and are functionally similar to their reference products. Biosimilars were first approved by the federal government in 2010 and have become increasingly popular because of their ability to help lower drug prices. In November, the Food and Drug Administration released new draft guidance intended to streamline and simplify biosimilar testing.

Health affordability committee: In its last meeting of 2025, the Oregon Health Authority’s newly formed affordability committee, of which OBI is a member, began planning for 2026. Committee priorities for the coming year include consumer costs for insurance, payment reform, anti-competitive contracting and price-growth caps. The committee is slated to provide policy recommendations to the Oregon Health Policy Board in June 2026.

AI Executive Order Earns Praise from OBI’s National Partners

What happened: On Dec. 11, President Trump signed an executive order intended to block states from developing their own regulations for artificial intelligence. He argued that the development of a patchwork of state-level rules would stifle the rapidly developing industry. According to the Associated Press, the order directs the attorney general to create a task force to challenge state laws. It also directs the commerce department to identify problematic regulations.

Oregon relevance: Oregon legislators and elected officials have discussed ways to regulate artificial intelligence for several years, and in 2023 Gov. Kotek established an advisory council that in early 2025 released an action plan for the use of artificial intelligence in state government. The Legislature in 2025 considered several laws governing the use of artificial intelligence and surely will consider many more in the years to come. A law prohibiting the dissemination of certain digitally created explicit images will go into effect in January.

NAM response: The National Association of Manufacturers issued a statement Dec. 12 supporting the president’s executive order. NAM CEO Jay Timmons argued that “winning the global race for AI hinges on getting AI policy right, which means avoiding a cumbersome, 50-state patchwork of laws and regulations that would throttle interstate commerce, stifle innovation, limit AI adoption and erode America’s competitive edge.” OBI is NAM’s state affiliate.

U.S. Chamber’s response: The U.S. Chamber of Commerce also issued a statement in support of the order. Jordan Crenshaw, senior vice president at the Technology Engagement Center, wrote that there is a “growing challenge posed by a patchwork of state-level AI regulations” and that these “fragmented state laws risk depriving small businesses and other startups of the tools they need to grow, innovate and compete.”

OBI’s view: OBI believes that state-level discussions about artificial intelligence are useful in some contexts, such as the use of AI tools for the state of Oregon’s own use and efficiency. However, OBI generally believes that a state-by-state approach to AI laws and regulations creates risk for governments, businesses and consumers.

Notable News

Manufacturing employment: Oregon’s manufacturing sector continues its rapid decline with employment down more than 5% in the past year. Newly released state data shows factory employment has fallen below the depths it hit in the dark days of the pandemic recession (The Oregonian).

Estate tax: Steve Duin takes on Oregon’s estate tax in a column published Dec. 10 (Oregon Journalism Project).

Oregon recreational liability: Shortly after the first flakes began falling on the slopes of Mount Hood this fall, Timberline Lodge made a startling announcement coming from any business, let alone the already pricey ski industry: It is raising lift ticket prices. Citing ballooning insurance premiums brought on by an increasingly unfavorable liability landscape for ski resorts and other recreational companies across Oregon, Timberline wrote in an Oct. 8 Facebook post that “we are absorbing as much of this cost as possible, but cannot shoulder all of it” (The Oregonian).

Preschool for All: Multnomah County leaders could face a sea change in the county’s Preschool for All program after a preliminary forecast showed a huge drop off in expected preschoolers who will fill classroom seats in the coming years (The Oregonian).

Nitrate lawsuit: The legal team behind a lawsuit against some of Eastern Oregon’s biggest agricultural businesses is headed back to court with a new case over drinking water pollution. On Dec. 5, the attorneys filed a federal lawsuit on behalf of four Lower Umatilla Basin residents. The complaint accuses Portland General Electric and Columbia River Processing, a Morrow County subsidiary of Tillamook Creamery, of polluting the basin’s groundwater by sending nitrate-rich wastewater to the Port of Morrow (Oregon Public Broadcasting).

Portland tax break: Portland Mayor Keith Wilson said Dec. 8 he will seek to significantly increase a tax break offered to small businesses as the city looks to spur economic growth and opportunities. During a speech at the Oregon Leadership Summit, Wilson said he will propose doubling the city’s business license tax exemption from $50,000 in gross receipts annually to $100,000 (The Oregonian).

College merger: Two of Oregon’s most-prominent private universities are negotiating a merger. Pacific University and Willamette University said Dec. 11 they’re exploring the strategy that would make the entity Oregon’s largest private university. Tentatively, the school would be called the University of the Northwest (Portland Business Journal).

New lobbying group: Three Portland organizations focusing on commercial development and real estate are joining forces with the Portland Metro Chamber. The Chamber joins with the Building Owners and Managers Association of Oregon, National Commercial Real Estate Development Association of Oregon and Oregon Smart Growth to create the Portland Metro Chamber Public Affairs Collaborative (Portland Business Journal).

Oregon unemployment: Oregon’s unemployment rate has climbed one percentage point over the last year to hit 5.2% in September, one of the highest rates the state has seen in years (Oregon Public Broadcasting).

I-5 bridge estimate: Planners on the Interstate Bridge Replacement Program are expected to announce an updated price estimate on Monday, Dec. 15, during a committee hearing of the Washington state Legislature. The cost of the megaproject could rise by millions – or billions – of dollars since the last estimate was released in 2022 (Oregon Public Broadcasting).

Portland administrator: Portland elected leaders Dec. 10 unanimously approved Mayor Keith Wilson’s choice for a long-term city administrator, a position that is likely to wield significant influence within the city’s new form of government. Raymond Lee, a longtime city manager of Greeley, Colorado, emerged as Wilson’s pick among a trio of finalists vying to succeed Michael Jordan, whom city leaders tapped earlier this year to temporarily helm Portland’s bureaucracy (The Oregonian).

Knight Foundation: The private foundation of Nike cofounder Phil Knight and wife Penny Knight gave away $226 million last year, its most generous year yet, according to a new tax filing (The Oregonian).

Legislator ethics findings: Oregon’s longest-serving state representative, Rep. Greg Smith, R-Heppner, likely broke state ethics laws when he tried to secure a $66,000 raise, according to a report from the state’s government ethics watchdog, but investigators need more time to gather information (Oregon Capital Chronicle).

NW Natural cuts: NW Natural Holding Co., which includes the region’s biggest natural gas utility, has eliminated “about 2%” of its positions, apparently amounting to about 30 employees (Portland Business Journal).

Timberlab plant: Workers topped out Timberlab’s mass timber manufacturing plant in the mid-Willamette Valley town of Millersburg recently. Portland-based Timberlab, a Swinerton subsidiary, said it expects to have the plant fully set up and operating in early 2027, employing about 100 people (Portland Business Journal).

Lithium mine: The Bureau of Land Management on Dec. 8 announced its approval of a controversial lithium mining exploration project in Southeast Oregon’s Malheur County near the Nevada state line (Oregon Public Broadcasting).

Winery sales: The private equity firm Sycamore Partners has split up its Pacific Northwest wine company, selling the Ste. Michelle Wine Estates name and its Washington properties while retaining Oregon’s A to Z Wineworks, Erath Winery and Rex Hill (Portland Business Journal).

Low-income Bend homes: Lower-income families in Central Oregon have a shot at affordable homeownership — and it’s first come, first served. First Story, a nonprofit founded by regional developer Hayden Homes, opened the application period Dec. 9 for new homes in Bend and Sisters. The development company, along with other local businesses and donors provide materials and project management to help build the homes, which are offered to first-time home buyers through 30-year, zero-interest loans with no down payment (The Bulletin).

Check Out OBI’s Member Benefits

OBI offers members a range of programs that can save money or help small businesses offer benefits normally available only to much larger companies. Benefit programs include:

  • HealthChoice: Helps businesses with fewer than 100 employees offer comprehensive health-care benefits through our partnership with Regence BlueCross BlueShield of Oregon.
  • Partners Retirement Plan: Allows multiple employers to offer a 401(k) benefit to employees through a group structure while maintaining individual company design and control over the benefit – such as eligibility, employer match, and vesting.
  • CompSAFE: Helps eligible companies enjoy workers’ compensation discounts through SAIF Corporation.
  • Fuel Program: Helps members save fuel costs through our partnership with Ed Staub & Sons.
  • ODP Business Solutions: Helps OBI members save money on office furniture, supplies and other services.
  • LegalPLUS: OBI members receive 15 minutes of free legal consulting per month from Innova Legal Advisors.

Go here to learn about all of OBI’s member benefits.