Political News Roundup
Plenty of things happened in the Legislature this week. But the biggest political news came from the state Supreme Court, which ruled Thursday that Democratic gubernatorial candidate Nick Kristof isn’t qualified to run for governor. In determining that the former New York Times columnist failed to meet Oregon’s residency requirements, the court upheld a January decision by Secretary of State Shemia Fagan. The two front-runners in the May Democratic primary are now former Speaker of the House Tina Kotek and state Treasurer Tobias Read.
In other news:
- Former state Rep. Bob Tiernan, a Republican, announced that he’s running for governor. Tiernan represented Lake Oswego in the House during the mid-1990s. This would bring the total field in the GOP primary to 16.
- Lawmakers in Washington are trying to impose a 6-cent-per-gallon tax on fuel exports. This is a big deal for Oregon, which imports 90% of its fuel from Washington. In a column you can read here, OBI President and CEO Angela Wilhelms urged Oregon lawmakers and Gov. Kate Brown to push back.
- Advocates for three proposed ballot measures that would restrict campaign donations and spending appealed to the state Supreme Court. Fagan disqualified the initiative petitions earlier this month for failing to include the text of all laws they would change. Supporters hope to qualify the measures for the November ballot.
Legislative Week in Review
Legislative action slowed significantly this week with the passage of the Feb. 14 deadline for bills to receive work sessions in the chambers in which they originated. Among the bills that failed to advance is HB 4020, a bad piece of legislation that ostensibly sought to protect consumers from unethical contractors. Problem is, it would have applied only to publicly traded home improvement stores, which completed tens of thousands of projects last year with only two complaints, proving that this complicated regulation was simply unnecessary. OBI’s Paloma Sparks was instrumental in killing this bill. Updates on additional bills OBI is watching are below.
Though the session may continue until March 7, OBI’s policy team will soon turn some of its attention to a handful of rule-making efforts. Oregon OSHA will soon take up rule-making for heat and smoke, both of which are conditions over which many employers have no control. The comment period for these ends March 18. If you have specific information on these rules that you’d like to share with OBI, please email Paloma Sparks.
Meanwhile, rulemaking for Oregon’s Paid Family and Medical Leave Insurance program continues with a focus on equivalent plans and contribution wage definitions. The comment deadline is March 1.
Back to the session. Below are updates on major bills on which the policy team has been engaged.
Education and Workforce
SB 1539 (Watch): A pilot program created by this bill would use state education funds to provide support and wraparound services for homeless students in seven districts. The bill has broad bipartisan support.
- Update: The bill cleared the Senate Education Committee and was referred to the Senate Finance and Revenue Committee, where a public hearing was held Feb. 16.
HB 4124 (Watch): This bipartisan bill would require the Department of Education to review how districts administer student assessments, then recommend best practices.
- Update: The bill cleared the House Education Committee and was referred Feb. 14 to the Joint Committee on Ways and Means.
SB 1545 (Support): This is the governor’s Future Ready Oregon proposal, which would direct $200 million to workforce development programs. Among other things, it would expand apprenticeship opportunities and create grant programs to support workforce development activities in health care, manufacturing and construction.
- Update: The bill cleared the Senate Committee on Labor and Business Feb. 14 and was sent to the Joint Committee on Ways and Means. Another round of amendments is expected. Before moving out of the Senate, the bill was amended in a way that allows industry associations to apply for grants, partially addressing a concern shared by OBI and others about the fact that businesses are unable to apply for grant funds directly. This is a problem as the bill ostensibly addresses a workforce emergency. On Feb. 8, Morgan Beltz shared OBI’s concerns with this and other aspects of the bill.
SB 1590 (Support): This bill directs the Department of Education to work with the STEM Investment Council to develop a statewide, long-term strategic plan to provide computer science education. It would integrate computer science education in schools, establish curriculum standards and give all students the opportunity to participate.
- Update: Following passage in the Senate Education Committee Feb. 14, this bill moved to the Joint Committee on Ways and Means, where it sits. Previously, OBI has submitted a joint letter of support with the Oregon Business Council and the CTE-STEM Employer Council.
HB 4104 (Watch): This bill establishes the Prosperity 10,000 Program to provide career coaching, occupational training and job placement services for at least 10,000 low-income job seekers affected by the COVID pandemic. Much like the Future Ready Oregon proposal, this bill would provide funding for workforce boards to issue grants.
- Update: Elements of this bill have been folded into SB 1545 (above).
For questions about education and workforce bills, contact Morgan Beltz.
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Health Care
SB 1530 (Oppose): This bill would require health insurance coverage of specified fertility services and treatments. It would require small and large employers and individual health benefit plans to cover a wide range of fertility services without cost sharing or capping coverage.
- Update: This bill was moved to the Senate Rules Committee Feb. 15 without the -4 amendment favored by OBI. This amendment would have commissioned a study of fertility-treatment access. At a Feb. 9 hearing, Morgan Beltz shared OBI’s concern that the bill’s costly fertility mandate would compromise employers’ ability to offer other benefits that would better address the needs of their employees. You can watch Beltz’s testimony here at 1:01:07. OBI still hopes the bill will yield a study rather than a mandate.
HB 4035 (Watch): This placeholder bill ultimately will involve Medicaid and the allocation of money needed to start the process of creating a new platform for the state health plan that eventually would house a public option.
- Update: The bill moved to the House Rules Committee Feb. 16, where a public hearing and work session were scheduled for Feb. 18. Before leaving the Senate Health Care Committee, members discussed an amendment creating a timeline for a task force to create a “bridge program” that would provide affordable health care for people who frequently enroll and disenroll in health care programs due to fluctuations in income. The task force was expected to create the bridge program proposal by May 31. An amendment under consideration this week would extend the task force by a month and change its focus to the Medicaid redetermination process.
For questions about health care bills, contact Morgan Beltz.
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Employment and Labor
HB 4157 (Watching): This bill directs the Department of Revenue to provide one-time payments to low-income families to address the economic impacts of the COVID pandemic.
- Update: This bill is in the House Rules Committee, where a Feb. 18 work session was scheduled. It is notable in that the state will give money directly to recipients rather than tying payments to the type of work employees do, as was the case with previous “essential worker pay” proposals.
HB 4002 (Oppose as Introduced): This bill would remove the long-standing agricultural exemption from overtime. Farmers and ranchers simply do not have the ability to increase prices to adjust to increases in costs, and their labor needs are dictated by nature. This bill will reduce hours for workers, increase administrative burdens for farmers and harm one of Oregon’s largest industries. Labor Commissioner Val Hoyle has indicated she plans to move forward with administrative rules to enact overtime at 40 hours if the Legislature does not pass legislation this session. OBI would support legislation that addressed seasonality and had a higher threshold for triggering overtime payments.
- Update: The bill was voted out of committee Feb. 14 following the adoption of amendments that provide refundable tax credits for employers. It now sits in the House Revenue Committee. OBI is concerned that the bill contains too little flexibility with respect to seasonality. Previously, OBI has signed onto a coalition statement expressing concerns about the harm the bill would do to the state’s agriculture industry. You can read it here.
HB 4152 (Oppose): This bill would unravel franchise agreements and prevent the enforcement of consistent standards among franchises. In essence, this bill would allow businesses to use the franchise logo but not adhere to any other brand standards.
- Update: This bill has died. Paloma Sparks testified and provided written testimony during a Feb. 7 public hearing. She also submitted a coalition letter explaining some of the legislation’s flaws.
SB 1512 (Oppose): This bill would prohibit employers from taking job applicants’ juvenile records into consideration. As introduced, the bill is overly broad and ignores the needs of employers who handle sensitive personal information or work with vulnerable populations.
- Update: A Feb. 14 work session was held in the Senate Committee on Judiciary and Ballot Measure 110 Implementation, after which Republicans submitted a minority report that would create a task force to study, among other things, approaches that work best for employers, commissions and licensing agencies. The group that developed the original bill did not include employers, and OBI supports the inclusive approach proposed by the minority report. Previously, Paloma Sparks expressed OBI’s concerns during a Feb. 7 hearing. Her testimony begins at 22:28 here.
SB 1513 (Neutral): This bill would require bakeries and tortilla makers to give employees a two-week notice of required overtime. This requirement does not recognize the workforce realities of such businesses, which must react quickly to staffing shortages.
- Update: This bill cleared the Senate Feb. 15 following the adoption of an amendment that replaced the mandatory two-week notice with a five-day notice. Another improvement involves enforceability, which will be done through the Bureau of Labor and Industries. There will be no private right of action. Previously, Paloma Sparks expressed OBI’s concerns during a Feb. 3 hearing. You can hear her testimony here at 1:35:45. The bill is now in the House Business and Labor Committee.
SB 1514 (Support): This placeholder bill may offer a path to further delay a provision of the Oregon Equal Pay Act that requires employers to adhere strictly to equity requirements when giving hiring and retention bonuses to employees. That provision has been delayed until March 1. Without further delay, hiring and retention bonuses are likely to disappear. The burden of complying with the Equal Pay Act would make bonuses untenable.
- Update: The Senate Committee on Business and Labor adopted an amendment extending the delay described above for an additional 180 days. The Senate approved the bill Feb. 16.
SB 1586 (Neutral): This bill, aimed at nondisclosure agreements, would create an unlawful employment practice if an employer even asked an employee to enter into a settlement agreement that required the nondisclosure of certain elements. It would eliminate the confidentiality requirements of mediation. It also would encourage litigation by guaranteeing $5,000 in damages even when the individual failed to prove any damages.
- Update: This bill passed the Senate Feb. 16 after the adoption of amendments that eliminated some of the original bill’s most damaging components. Unfortunately, the amended bill does not allow employers to require the inclusion of settlement amounts in nondisclosure agreements. However, this issue may be negotiated by employers and employees. Overall, the bill is much better than the version that was introduced, and OBI is now neutral. Paloma Sparks described some of the original bill’s problems during a Feb. 8 hearing. Listen to her testimony here at 22:55.
For questions about employment and labor bills, contact Paloma Sparks.
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Retail
HB 4034 (Support): This bill would allow pharmacy technicians and interns to perform tasks related to ephedrine just as they may now perform tasks related to other drugs they are allowed to handle. This bill is the omnibus healthcare bill and contains many other provisions.
- Update: This bill has absorbed desired components of a separate bill, HB 4024, that allow employees conducting pseudoephedrine sales to collect required information by swiping customers’ driver licenses. The bill moved to the Joint Committee on Ways and Means Feb. 16, and we expect the committee to approve it.
SB 1565 (Oppose): This bill would require businesses to accept cash. This is problematic given the pandemic-related reluctance of many workers to handle cash. Employers do not want to force employees to engage in activity they consider unsafe. This bill also ignores changing technology and attitudes toward cashless businesses.
- Update: This bill was amended slightly in committee, and now gas stations and unattended fuel pumps are exempt. But its fundamental problems remain. Nevertheless, the Senate passed it Feb. 16, and it appears to be on the path to passage in the House. Paloma Sparks pointed out the bill’s flaws during a Feb. 8 hearing. You can watch her testimony here at 1:12:10.
HB 4020 (Oppose): This bill prohibits certain contractors from requiring payment in advance for large residential repair projects. Typically, such legislation is intended to guard consumers from small, unlicensed contractors who require payment up front, complete a small portion of the work, then disappear. HB 4020, however, applies only to “major residential contractors,” which are publicly traded companies. It would effectively end the practice of providing interest-free loans to conduct kitchen remodels and other services provided by large home-improvement stores.
- Update: This bill has died. Paloma Sparks had provided testimony at a Feb. 9 hearing, explaining that the bill’s sponsors had produced a consumer-protection bill that failed to protect consumers from real predators while undermining their ability to obtain services from credible contractors. She also provided a link to the Construction Contractor Board’s “Buyer Beware” list, which displays allegedly crooked contractors unaffected by HB 4020.
For questions about retail bills, contact Paloma Sparks.
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Campaign Finance
SB 1526 and SB 1561 (Watching): These campaign finance bills would limit contributions for candidates and political committees.
- Update: Given short timelines and the complexity of these proposals, it seems unlikely that they will move forward this session. At a Feb. 10 hearing, Paloma Sparks provided testimony expressing OBI’s view that contribution limits should ensure that the resulting system is equitable, constitutional and easy to understand and navigate.
For questions about campaign finance bills, contact Paloma Sparks.
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Environment, Energy and Natural Resources
SB 1567 (Watch): This bill would require bulk fuel terminals to conduct seismic vulnerability assessments from which the Department of Environmental Quality (DEQ) would develop risk reduction plans and mitigation requirements. Fuel suppliers already implement state and federal standards to reduce risk from major earthquakes. Additional requirements created by the bill will add cost and complexity.
- Update: This bill was moved to the Joint Ways and Means Committee on Feb. 15 following a Feb. 14 work session during which important changes were made. The bill now has a reasonableness provision for mitigation measures required by DEQ, for example. The one outstanding issue involves the high cost of administering facility reviews, which would be paid through fees on fuel companies. The regulated community has urged the state to seek federal grants to support the Seismic Mitigation Fund and reduce costs for affected employers, which also will bear significant costs related to mitigation measures.
For questions about environment, energy and natural resources bills, contact Sharla Moffett.
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Transportation
HB 4090 (Oppose): This bill requires state agencies procuring diesel vehicles to obtain certifications from manufacturers and dealers that their trucks can operate with a 20%-biofuel mix. Warrantying specific fuel types would add cost and complexity to an already challenging regulatory environment.
- Update: Discussions involving this bill continue. A Feb. 17 work session in the House Transportation Committee was carried over amid concerns about what truck manufacturers should be expected to do to comply with the mandate. Sharla Moffett had testified in opposition to this bill Feb. 3. Her testimony begins at 1:08:50 here.
HB 4141 (Oppose): This bill would ban petroleum diesel and mandate renewable diesel statewide by 2029. Renewable diesel is an important tool for lowering greenhouse gas emissions and achieving Oregon’s climate goals. However, a mandatory transition to renewable diesel of limited supply almost certainly would lead to market volatility, uncertainty and fuel shortages. Current regulatory programs and those in progress will already drive market demand for renewable diesel without the arbitrary targets contemplated in the bill.
- Update: Sharla Moffett testified in opposition to this bill on Feb. 15. Her testimony begins at 45:17 here. Written testimony is available here. It appears at this point that the committee will consider, and perhaps adopt, an amendment requiring a study on the cost and availability of renewable diesel that does not presuppose a mandate.
For questions about transportation bills, contact Sharla Moffett.
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Tax and Fiscal Policies
HB 4015 (Support): This bill would expand eligibility for state entrepreneurial loans and raise the per-loan limit from $500,000 to $1 million.
- Update: The bill passed the House on Feb 11 and received a Senate committee hearing on Feb. 17 at which Scott Bruun testified (his testimony starts at 59:50 here). He noted that this program will be valuable to future OBI members. Scott Bruun also testified in support of this bill Feb. 7.
HB 4079 (Oppose): This bill would create a 3% sales tax on a range of consumer goods, including clothing, electronics, automobiles and recreational equipment. The revenue this tax generated would fund a monthly stipend for lower-income people even as employers are trying to bring more people into the workforce.
- Update: This bill has died, in part as a result of pressure brought by OBI. The main bill sponsor, Rep Bill Witt, has indicated that he may bring it back during the long 2023 regular session. It’s worth noting that an initiative petition titled “The People’s Rebate,” which would do many of the same things as HB 4079, is also in process.
SB 1524 (Support): This omnibus technical tax modification bill contains elements we support, including the expansion of the rural medical practitioner tax credit and extension of the gain share program.
- Update: In testimony provided during a Feb. 7 hearing, Scott Bruun described the problems the bill would create for pass-through partnerships. They would be required to make a key tax decision eight months earlier than they do now. The bill’s language will now be amended to alleviate this problem. Meanwhile, the bill may be amended to align state and local income tax definitions to ease taxpayer compliance. The bill received an additional hearing on Feb. 16 that was carried over. We expect this bill to move out of committee, through the Senate, and over to the House within the next week or so.
SB 1525 (Support): This bill would reconnect Oregon’s tax code to the federal tax code, which is essential for reducing compliance costs and complexity for Oregon taxpayers.
- Update: This bill, which cleared the Senate with a bipartisan vote, is now in the House, where a first hearing took place Feb. 17. Scott provided verbal (at 22:35 here) and written testimony in support of the bill.
For questions about tax and fiscal policy bills, contact Scott Bruun.
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If you’d like to follow the progress of these or other bills yourself, you can do so using the Oregon Legislature’s OLIS site. Information available includes bill text, amendments, hearing schedules and online access, meeting materials and more.