Economists Deliver Warning to Legislative Committee
Sobering hearing: During an April 22 informational hearing held by the Senate Committee on Labor and Business, multiple economists shared information about the struggling economy in the Portland metro area. The information echoed several of the findings in OBI’s 2024 report on Oregon’s business tax burden, which supports many of the recommendations in OBI’s Oregon Competitiveness Agenda.
ECOnorthwest presentation: Information provided by Michael Wilkerson of ECOnorthwest describes a struggling economy and a region in crisis. Portland has seen population declines, stagnant job growth, slowing housing production and a pattern of migration from Multnomah County to Clark County in Washington state. Unless conditions change to make the region more attractive to existing and potential residents, Wilkerson warned that population stagnation could lapse into population decline.
Stagnant job growth: In terms of job growth, the differences between Multnomah County and Clark County are stark. Among the 220 counties that make up the nation’s 50 largest metro areas, Multnomah County is in the bottom 5th percentile for job growth from 2019 to 2024. Clark County is in the top 80th percentile, Wilkerson reported.
Housing slowdown: Housing development has stagnated in Oregon as well. Permitting has dropped statewide by 33% over the past 24 months, and multifamily permitting in the city of Portland is at the lowest level in over a decade. The city issued more than 3,700 multifamily permits in 2021 and a similar number in 2022. Only 856 were issued in 2024 and 332 so far this year.
State economist: State economist Carl Riccadonna, who repeatedly has noted that Oregon is in the midst of a manufacturing recession, echoed Wilkerson. He noted that Portland’s recovery is essential to the overall condition of the state, as it accounts for a large share of the state economy. Riccadonna also warned about the economic consequences of population stagnation, pointing out that “demography is destiny.”
Takeaways: The key message shared by both Wilkerson and Riccadonna is that growth is not a given, and conditions in Oregon are cause for concern. OBI has warned policymakers about these conditions for many months and recently released lists of “job killer” bills that would make economic conditions throughout Oregon worse and “job creator” bills that would improve them. OBI is encouraged by the committee’s interest in learning more.
Learn more: Go here to listen to the presentations and go here to read OBI’s Oregon Competitiveness Agenda. Read about this session’s job killers here and its job creators here.
DEQ Cyberattack Story Continues
It seemed like the DEQ cyberattack had been contained and the worst of the impacts addressed, but the story seems far from over. On April 25, OPB reported that those responsible for the attack released millions of DEQ files on the dark web and auctioned off other files. Several member companies have raised concerns that their data or proprietary information may have been compromised. Stoel Rives initiated an inquiry into what data may have been leaked in the cyberattack and subsequent releases of data, and OBI will share relevant information with member companies.
According to the DEQ, the agency did not receive emails sent and documents submitted from April 9 to 11. However, given the severity of the attack, OBI suggests confirming anything your business has submitted to DEQ since April 9. A number of reporting deadlines and comment periods have been extended in response to the IT attack. Reporting for the Clean Fuels Program and greenhouse gas emissions programs has been extended to May 30.
Reach out to Sharla Moffett (sharlamoffett@oregonbusinessindustry.com) if you have questions about upcoming deadlines.
Legislative and Rulemaking Updates
UI for Strikers: SB 916 is scheduled for an informational presentation from the Employment Department on April 28 and a public hearing on April 30 in the House Committee on Labor and Workplace Standards. OBI and other coalition members continue to work hard to defeat the bill. The current version allows all striking workers in Oregon to collect up to 26 weeks of benefits after a one-week disqualification period. OBI has been following a similar bill in the Washington Legislature. On April 25, the Washington Legislature passed amendments reconciling the Senate and House versions of SB 5041. The final version includes a two-week disqualification period and a maximum of six weeks of UI benefits. Remember, a key difference: Washington does not allow public employees to strike. So, if Oregon legislators pass SB 916, Oregon will be the only state imposing such expenses on taxpayers.
Workforce Standards Board: HB 3838 would allow an unelected board to create new standards for pay, working conditions and other rules in workplaces that provide care for aging people and those with disabilities. The bill also would create funding constraints on state budgets even when the Legislature was facing an economic downturn. On the afternoon of Friday, April 25, the bill was posted for an 8 a.m. public hearing in the House Committee on Rules on Monday, April 28. The agenda noted that the hearing was for the purpose of discussing the -3 amendment, which had not been posted or shared with employer representatives. The amendment was eventually posted at 4:30 p.m. on April 25. It contains several new obligations for employers and state agencies. It is unclear how much the bill will cost and how those costs will be funded. While this posting may comply with the letter of the House rule requiring a notice of at least 48 hours for bill hearings, it certainly does not align with the spirit of the rule, which was intended to foster a transparent and balanced legislative process.
Clean Trucks Rules: OBI continues to work with members, DEQ and the governor’s to secure a two-year delay in the implementation of the Advanced Clean Trucks Rules. Maryland recently extended its ACT implementation timeline to 2029, and Massachusetts announced that it will not enforce its rules until 2027. OBI expects New Jersey and New York to follow suit. DEQ could delay implementation but has, instead, conducted a rulemaking process in which it proposes a credit system to allow sales of internal combustion engine trucks to continue. Not only is the proposal unworkable, but it is expected to be in place until only 2027, when the federal rules and California’s rules are set to align anyway. The proposed ACT public comment period was extended to May 7 at 4 p.m. Public hearings are being held April 30 at 2 p.m. and May 6 at 2 p.m. OBI will submit comments and will circulate talking points to those who may wish to testify at the hearings or submit their own comments to DEQ.
Noncompete Agreements: Two bills that affect the enforcement of health care noncompete agreements have passed the Senate and are scheduled for hearings in the House Committee on Behavioral Health and Health Care. SB 957 is a relatively straightforward bill voiding noncompete agreements against people licensed by the Oregon Medical Board except those with an ownership stake in a health care facility of at least 5%. SB 951 is a much more complex bill that would regulate many aspects of ownership and direction in health care facilities. SB 951 contains prohibitions on some noncompete agreements, but in a much more complicated way than SB 957. The Legislature has not indicated how these two approaches would be reconciled, setting up employers and employees for unnecessary litigation and confusion. OBI will testify on both bills and urge legislators to adopt language that can be implemented without creating greater burdens in already challenging industries.
Air Program Fees: DEQ will hold a rulemaking advisory committee (RAC) meeting on proposed fee increases for the Title V, Cleaner Air Oregon and asbestos programs. These fee increases were authorized in the 2023-2025 biennial budget. Sharla Moffett will participate on the RAC and raise concerns with the large number of program fee increases being implemented by DEQ and the significant burden this is creating for regulated entities.
EV Requirement Bill: OBI had a good week on HB 2961, which would require new residential and mixed-use developments with at last 10 units to include electric vehicle (EV) charging infrastructure. Specifically, it would require at least 20% of parking spaces to be wired for future EV charging and at least 5% to be equipped with chargers. The 5% charger requirement also would apply to commercial developments, although the 20% wiring requirement is already in statute for commercial properties. Originally, the bill was much more aggressive. It would have required 50% of parking spaces to be equipped for EV charging in all commercial and multifamily residential construction. A scheduled floor vote did not happen, and the bill was referred to the Senate Committee on Rules without objection. Sending a bill back to a committee from the floor is generally not a good sign for its prospects, so OBI sees this as a win. The bill remains technically alive, so OBI will watch for surprises.
PERS Climate Bills: OBI has opposed several bills this session that would require the Oregon treasurer to either divest from fossil fuel investments (SB 681) or seek ways to reduce the carbon intensity of the PERS investment portfolio (HB 2081). While SB 681 does not seem viable, HB 2081 passed out of the House Committee on Revenue on April 24. Even though the bill would not require divestment from carbon intensive investments, it would place an additional consideration into the mix as the treasurer manages Oregon’s PERS fund. This is in direct conflict the office’s sole fiduciary responsibility: to maximize Oregon’s investment funds.
OBI Annual Meeting to Take Place June 4. Register Today
The OBI Annual Meeting will take place June 4 at 3:30 p.m. at the Salem Convention Center. OBI’s board meeting/VIP legislative briefing will take place before this event from 2:30-3:15 p.m. This year’s event will focus on the important role sports, sports tourism and recreation play in Oregon’s economic health. OBI also will provide updates on key OBI initiatives and have the always-full networking reception with legislators and other state and appointed policymakers.
Register here or contact Patti Winter (pattiwinter@oregonbusinessindustry.com) for information about sponsorships.
OBI CEO Talks Manufacturing on Ballard Spahr Podcast
OBI President and CEO Angela Wilhelms joined Ballard Spahr’s Business Better podcast recently to talk about the manufacturing landscape in Oregon. Wilhelms was joined by Michele Siekerka, president and CEO of the New Jersey Business & Industry Association and chair of the Conference of State Manufacturers, of which OBI is a member.
Among other subjects, Wilhelms and Siekerka discussed the complexities of navigating federal, state and local regulations, including the potential impacts of the Trump administration’s executive orders.
Go here to listen to the episode, which was released April 22.
Recording: Mid-Session Webinar with OBI Policy Team
During an April 15 webinar, the OBI policy and political affairs team discussed the 2025 legislative session, which had reached its halfway point. The webinar covered some of the session’s highest profile legislation, OBI’s Oregon Competitiveness Agenda and what Oregon business could expect during the session’s second half.
Topics include:
- An overview of the session’s direction and challenges.
- Legislation related to labor and employment issues, including SB 916, which would make unemployment benefits available to striking workers.
- The potential for limited tax increases.
- The Legislature’s response to federal tax policy.
- The revenue and budget outlook.
- Transportation funding.
- Environmental policies.
- Economic development and Oregon’s business climate.
- Potential electoral policy changes.
Go here to watch a recording of the webinar.
April 22 Webinar: Recycling Modernization Act Overview
On April 22, staff from Circular Action Alliance joined OBI for a webinar on Oregon’s Plastic Pollution and Recycling Modernization Act. The law uses an extended producer responsibility model that requires packaging producers to help fund related recycling efforts. The act is managed by the Oregon Department of Environmental Quality (DEQ). Producers were required to join a producer responsibility organization (PRO) and complete reporting by March 31 in preparation for the program’s launch July 1. For companies that missed the reporting deadline, it’s important to know that it’s not too late. The initial deadline has passed, but CAA is providing a grace period for late reporters, which will end on April 30.
More about Oregon’s program: The Legislature passed the Plastic Pollution and Recycling Modernization Act (SB 582) in 2021. Producers of covered products (packaging, paper and food servicewear) must register with an approved producer responsibility organization, report data on their supply of covered products and pay membership fees. The PRO helps fund recycling conducted by local governments as well as system improvements.
Program unknown: OBI is concerned that many businesses don’t know about the requirements of the new program, including the need to register for an assessment of what may be covered in the company’s product line(s). OBI continues to advocate for a delay in the program – which would be the first such program in the nation to come online – to ensure that the DEQ and PRO are doing enough outreach and giving companies enough time to understand compliance requirements, including, for many, significant financial obligations.
Oregon’s PRO: Circular Action Alliance is the only PRO with an approved program plan in Oregon. The DEQ approved CAA’s plan on Feb. 21, 2025.
Questions about producer obligations: Beginning at 13:10, the webinar explains how to get in touch with CAA to get answers to pressing questions, including what it is producers are required to do.
Go here to watch the webinar and go here to view the slide presentation.
Notable News
Senator Passes Away: State Sen. Aaron Woods (D-Wilsonville) died of an undisclosed illness April 19, according to Senate President Rob Wagner (D-Lake Oswego). Woods was 75 (Oregon Journalism Project).
Oregon Tariff Suit: Oregon Attorney General Dan Rayfield on April 23 filed a federal lawsuit that seeks to overturn President Donald Trump’s new tariffs (The Oregonian).
Nvidia Initiative: Oregon will spend $10 million and collaborate with tech giant Nvidia to boost programs that train students to work in artificial intelligence, Gov. Tina Kotek announced April 24 (Portland Business Journal).
Moss Adams Merger: One of Portland’s preeminent accounting firms revealed April 21 it’s merging with a group from Chicago. Moss Adams and Baker Tilly made the move as they look to “redefine advisory and accounting services for the middle market.” The merger, which had been expected for at least a week, creates the country’s sixth-largest advisory CPA firm (Portland Business Journal).
Wood Products: New data from the Oregon Employment Department show that although wood product manufacturing jobs are far fewer than they were three decades ago, they remain an important part of the state’s economy (Oregon Journalism Project).
Wildfire Map: Oregon senators voted unanimously April 22 to repeal a highly controversial wildfire hazard map. Republican lawmakers have repeatedly criticized the map, which they say has punished rural property owners with a flawed analysis of wildfire risk (The Oregonian).
Oregon Forests: At the request of the Oregon Business Council, Oregon Environmental Quality Commission Chair Matt Donegan has recently turned his attention toward reducing the impact of catastrophic wildfires (Oregon Journalism Project).
Redmond Homelessness: Amid a push by local government authorities to remove or consolidate the region’s largest homeless encampments on public lands outside cities, people living in the juniper forest east of Redmond may be the next to be forced to move (The Bulletin).
Multiple Jobs: The share of Oregonians working two or more jobs has risen rapidly over the past two years to its highest point in more than a decade. About 6% of Oregon workers are holding down multiple jobs, according to the latest state and federal data, about 1 in 16 workers overall (The Oregonian).
Oregon Absenteeism: A Stand for Children Oregon analysis finds the state’s short elementary school year makes chronic absenteeism more consequential for its students than others nationwide (Willamette Week).
Medical School: The Oregon Institute of Technology is seeking financial support to start a new public medical school in Klamath Falls with the hopes of addressing the primary care provider shortage in rural Oregon (The Oregonian).
Umpqua Bank: Umpqua Bank will change its name to Columbia Bank, it said April 23 while announcing an acquisition of Pacific Premier Bank in California (Portland Business Journal).
Deschutes County Sheriff: For years in criminal trials, Deschutes County Sheriff Kent van der Kamp misrepresented where he went to college and which degrees he holds. That’s what investigators with the Deschutes County District Attorney’s Office concluded before recently adding the county’s top law enforcement to a damning list of local officers who prosecutors deem too untrustworthy to testify (Oregon Public Broadcasting).
Fagan Investigation: An FBI investigation into the dealings of former Oregon Secretary of State Shemia Fagan has ended. No criminal charges were filed (Willamette Week).
OLCC Ethics Fines: Two former high-level Oregon Liquor and Cannabis Commission managers each agreed to pay $500 fines to the state’s ethics commission for using their positions to access sought-after bourbons, records show (The Oregonian).
Intel Changes: Intel plans to eliminate 20,000 jobs or more across the company, Bloomberg reported April 22, citing an anonymous source familiar with the chipmaker’s plans (The Oregonian). Intel also announced that employees would have to return to the office four days per week beginning Sept. 1 (Portland Business Journal).
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.
- 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.