2025 Legislative Session Begins
What’s happening: The 2025 legislative session began on Tuesday, Jan. 21. It will conclude no later than Sunday, June 29.
Bills galore: As of Jan. 24, 2,453 bills had been introduced. One legislator, Rep. Paul Evans, D-Monmouth, has sponsored over 300 bills. Legislators have until Feb. 25 to introduce bills before limits come into effect, so the 2025 session may see a record-breaking number of proposals. After the Feb. 25 deadline, most legislators will be limited to two priority bills, though the Senate president and speaker of the House can continue to introduce bills without limit. The first deadline to vote bills out of committee is April 9.
What OBI’s doing: OBI’s policy team is working actively with legislators and others in the business community. Beginning on Jan. 21, the team has testified on significant bills and will continue to do so for the remainder of the session.
Keep informed: Beginning today, Capitol Connect will be distributed weekly as long as the Legislature is in session. It will feature updates on key bills and other issues.
Legislative and Rulemaking Updates
Clean Trucks Rule Testimony
On Jan. 21, the Joint Committee on Transportation held an informational hearing on the Department of Environmental Quality’s Advanced Clean Trucks rules. The mandate to sell a set percentage of medium- and heavy-duty electric trucks took effect on Jan. 1. The number of internal combustion engine trucks a dealer may sell under the rules is determined by the number of electric trucks it sells, and violating the cap can trigger a fine of $20,000 per vehicle. However, customers have shown little interest in buying heavy-duty electric trucks, which are two to three times more expensive than conventionally powered trucks, can carry only 75% of the payload and have less than half the range. The rule also applies to truck classes that include heavy-duty pickups and vans and medium-duty vehicles like buses and delivery trucks.
Those who testified at the hearing predicted that the rule would create a severe shortage of internal combustion engine trucks available for purchase. They also predicted that fleets would hold onto older trucks that lack the latest pollution control systems for longer and that Oregon dealers will see sales plummet. In addition to OBI, member businesses The Papé Group, Daimler Truck North America and the Oregon Trucking Association testified at the hearing.
On Jan. 30, the House Committee on Climate, Energy and Environment will hear HB 3119, which would prohibit implementation of the Advanced Clean Trucks rule. The hearing was previously scheduled to take place Jan. 28, and those who had registered to testify should register to do so for Jan. 30.
Paid Leave Oregon/Oregon Family Leave Act Changes
For most of the 2024 interim, OBI participated in a workgroup to negotiate updates to leave laws. The workgroup is led by the chair and vice chair of the Senate Labor and Business Committee, Sen. Kathleen Taylor, D-Portland, and Sen. Daniel Bonham, R-The Dalles, respectively; and the chair and vice chair of the new House Labor and Workplace Standards Committee, Rep. Dacia Grayber, D-Portland, and Rep. Lucetta Elmer, R-McMinnville, respectively. Representatives from labor, business, the Oregon Employment Department (OED), and the Bureau of Labor and Industries (BOLI) also participated.
The initial list of potential changes was lengthy and included significant policy changes. OBI urged the workgroup to pare the bill down to essential technical changes to improve implementation, and the group ultimately settled on that approach. SB 69 was introduced as a placeholder but will be amended to include those technical changes. The bill is scheduled for public hearings on Jan. 28 and Jan. 30, and OBI plans to testify in support.
If the committee adopts the amendment, the bill will do the following:
- Clarify that BOLI has rulemaking authority over the job protection and retaliation provisions in Paid Leave Oregon, which it is tasked with enforcing;
- Pause the statute of limitations for claims of violations of job protections or discrimination while an appeal pends at the OED;
- Clarify that “child” under OFLA means someone under the age of 18 or one who is substantially limited by a physical or mental impairment consistent with prior OFLA definitions;
- Clarify notice requirements for sick child leave taken due to a public health emergency;
- Give OED clear statutory authority to share information with employers sufficient for employers to meet their obligation to calculate other paid time off to combine with Paid Leave Oregon benefits to fully replace employee wages;
- Add long-standing OFLA provisions to Paid Leave Oregon to allow employers to request return-to-work certifications after a medical leave;
- Add federal definitions for airline flight crew employees so that they can meet the hours worked requirements to be eligible for OFLA.
Time Rounding
On Jan. 21, OBI Policy Director and Counsel Derek Sangston testified to the Senate Labor and Business Committee in support of SB 397, which would address Oregon’s prohibition on time rounding policies. Part of OBI’s Oregon Competitiveness Agenda, the bill seeks to bring Oregon in alignment with other states. These policies are permitted under federal law and even in Washington and California. Recent court rulings and statements by BOLI have resulted in an interpretation that Oregon employers aren’t allowed to round out work hours even if doing so would allow flexibility for employees who might arrive a few minutes late or leave a few minutes early. Oregon is an outlier in this overly strict approach. OBI will continue to support this bill and similar legislation.
Upcoming Hearings on Oregon Competitiveness Agenda Bills
- On Jan. 28, the House Committee on Revenue will hold a public hearing on HB 2119, which would allow trade associations like OBI to represent taxpayers in challenges over the applicability or constitutionality of state tax policy.
- On Jan. 30, the same committee will hold a public hearing on HB 2109, which would align Oregon’s penalty for understating taxes with those in neighboring states by increasing the threshold at which the penalty applies from $2,400 to $1 million.
Both concepts would help taxpayers comply with Oregon’s complex tax system and burdensome enforcement scheme.
Agency Presentations
While the Senate Labor and Business Committee got right into hearing bills, the House Labor and Workplace Standards Committee focused on agency presentations from the Employment Department, Department of Consumer and Business Services, Bureau of Labor and Industries, Construction Contractors Board and Employee Relations Board. Most presentations were general agency overviews to educate the committee members about the agencies’ authority and programs. The Employment Department presentation noted that federal budget negotiations will affect unemployment insurance funding, particularly funding related to administrative costs. BOLI’s presentation largely focused on its budget request for an additional $18 million per year to modernize systems and staffing levels. One thing to note: In response to a question from Rep. Travis Nelson, D-Portland, BOLI erred by claiming that meal and rest break violations were enforceable only by BOLI, not through private lawsuits. OBI pointed out the inaccuracy, and the record has been corrected.
Selected Bills with OBI Positions
- HB 2254 and SB 426: would hold contractors jointly and severally liable for unpaid wages of employees of subcontractors. (oppose)
- HB 2351: would update and expand the information collected from a business that engages with Business Oregon for financing, tax abatements, etc. (watch)
- HB 2411: would create and seed with $40 million a revolving Industrial Site Loan Fund to finance infrastructure on industrial sites for development. (support)
- HB 2688 and SB 758: two versions of the same bill that would apply Oregon prevailing wage requirements to custom work that happens away from a construction site. (oppose)
- HB 2746: would require wage disclosure on job postings. (oppose)
- HB 2786: would require all sick leave, vacation leave, personal business leave to be paid out on termination of employment. (oppose)
- HB 2790: would allow the use of sick leave for mental health days with no limit or medical verification. (oppose)
- HB 2950: would establish an advisory committee to revamp Oregon’s public involvement requirements in statewide land use policy, directing the Department of Land Conservation and Development to adopt the updates. (oppose as written)
- HB 2957: would eliminate agreements that shorten the statute of limitations and eliminate the 90-day period to sue after determination by BOLI. (oppose)
- HB 2960: would ban facilities that convert or recycle plastic using chemical and heat-based processes. (oppose)
- HB 3187: would make “salary” and “experience” a proxy for age and their use in certain employment decisions subject to discrimination complaints. (oppose)
- SB 613: would modify Oregon pay equity law to allow greater flexibility in hiring and retaining workers. (support)
- SB 704: would apply certain criteria to classify workers as independent contractors. (oppose)
- SB 916: would make striking workers eligible for unemployment insurance benefits. (oppose)
OBI in Action: Pursuing Regulatory Relief
What’s happening: Oregon businesses continue to face obstacles in supporting their existing operations and pursuing growth due to agency permitting processes that are often inordinately complex, unclear, inconsistently applied or approved at a glacial pace. Employers regularly cite such challenges as major impediments to their success. In Washington state, newly elected Democratic Gov. Bob Ferguson is taking quick action to begin addressing the Evergreen State’s permitting backlog by issuing two executive orders intended to streamline and accelerate agency permitting.
Why it matters: Oregon employers have been warning for years that Oregon’s outdated approach to permitting is contributing to an overly burdensome regulatory environment that harms the private sector. Economic data are beginning to bear out those warnings. In his most recent economic and revenue forecast, for example, the Oregon state economist noted that the state had entered a manufacturing recession, losing 1,000 manufacturing jobs in the previous 12 months.
What OBI is doing: Streamlining and accelerating permitting and rulemaking is a cornerstone of OBI’s Oregon Competitiveness Agenda. On Jan. 17, OBI President and CEO Angela Wilhelms sent a letter to Gov. Tina Kotek asking her to execute an executive action similar to those ordered by Gov. Ferguson in Washington state. OBI also has introduced several legislative concepts ahead of the 2025 session intended to modernize agency rulemaking and permitting.
What’s next: OBI will continue to encourage Gov. Kotek’s administration to take decisive action to provide permitting relief and boost Oregon’s economic competitiveness. Relatedly, on Jan. 28, OBI’s vice president and general counsel, Paloma Sparks, will testify before the House Commerce and Consumer Protection Committee with comments focused on strengthening our state’s private sector.
Explore the Issue: Oregon Competitiveness Agenda.
Essay Deadline for Oregon Civics Bee Approaching
Time is running out for Oregon middle schoolers to submit essays for the second annual Oregon Civics Bee. The submission deadline is Feb. 4. The bee is presented by U.S. Bank and organized by OBI in partnership with the U.S. Chamber of Commerce Foundation.
Who may participate: Oregon 6th, 7th and 8th graders.
The format: Participants must submit a short essay by Feb. 4. Top writers will be invited to participate in Oregon regional bees. Top finishers in regional bees will be invited to participate in the Oregon Civics Bee in spring 2025. The winner will be invited to participate in the National Civics Bee Championship in fall 2025.
Locations: Regional bees will occur in Tigard, Forest Grove and Eugene. The Oregon Civics Bee will take place in Salem. Additional time and location information can be found on the Oregon Civics Bee website.
Learn more: Instructions for participation, answers to frequently asked questions and more can be found on the Oregon Civics Bee website here.
Portland Task Force Panel Releases Tax, Conditions Report
What’s happening: In 2023, Gov. Kotek created the Central City Task Force to revive Portland. On Jan. 13, the group’s tax advisory group released a report describing trends in taxation, fiscal conditions and service provision.
In brief: The report lists 19 key findings, headlined by tax policies that correspond to the departure of wealthy taxpayers from Portland and Multnomah County’s emergence as a regional job-production laggard.
Worrisome trend: Even as taxes on Portlanders have increased, budget shortfalls loom. Many new taxes are dedicated to specific purposes, including climate change. Meanwhile, costs for city and county personnel are becoming unstainable.
Why it matters: Portland relies upon tax revenue produced by businesses and wealthy taxpayers. Conditions that push both out of Portland will limit the city’s ability to pay for services.
Learn more: Read the full report here.
Free Enterprise Report Gives Oregon Low Marks
What’s happening: The Colorado-based Common Sense Institute released its 2025 Free Enterprise Report Jan. 13. The report ranks the 50 states and Washington, D.C., in 12 areas.
Oregon emphasis: The report offers detailed analysis of competitive conditions in four states that host Common Sense Institute chapters, including Oregon.
How Oregon fared: Not well. The state gets high marks for health care, infrastructure and energy, but low marks for education, taxes and fees, and public safety. Oregon is 43rd overall.
Why it matters: The conditions responsible for Oregon’s low ranking are not likely to attract business investment, which creates job and generates tax revenue and livability.
What OBI’s doing: Recommendations contained in the Oregon Competitiveness Agenda address many of the shortcomings identified in the CSI’s report.
Oregon’s Rankings: See how Oregon ranked in 12 categories here.
Learn more: Read the full report here.
Notable News
Metro Homeless Tax: The seven-member council at Metro, the Portland area’s regional government, agreed to delay a ballot measure aimed at extending its supportive housing services tax, in order to build more support for it. Metro had been pushing to get a measure on the May ballot, but support for it among advocates has been fragmenting in recent weeks, raising questions about its fate in the hands of voters, many of whom don’t see enough progress in the fight against homelessness, according to Metro’s polling. Now, Metro is aiming for the November ballot (Willamette Week).
Bend Bioscience Industry: A bioscience business that develops and makes medications for pharmaceutical companies and started in Bend nine years ago is quietly expanding. Seràn BioScience, located on Layton Avenue, is adding 60,000 square feet of manufacturing and lab space, said company CEO and co-founder Dan Smithey. The biosciences industry, which produces everything from titanium implants to medication, is among businesses that Bend and Central Oregon leaders court. The industry generally offers higher paying jobs and is considered a clean industry (The Bulletin).
Oregon Solar Surge: In the absence of clear state requirements, the surge of solar projects in Oregon could over time fundamentally alter Oregon’s agricultural landscapes, taking away local farm and service jobs and transforming long-established rural communities (The Oregonian).
Cascades Aquifer: A massive aquifer is stored just beneath volcanic rocks at the crest of the central Oregon Cascades – possibly the largest aquifer of its kind in the U.S., according to researchers at the University of Oregon (The Oregonian).
New Legislator: Mari Watanabe became the newest member of the Oregon Legislature on Jan. 19—and also the state’s first-ever Japanese American lawmaker. At a joint meeting of the Multnomah and Washington County boards Jan. 15, commissioners unanimously selected Watanabe to succeed state Rep. Lisa Reynolds (D-Tigard) in House District 34, which includes parts of both counties (Willamette Week).
Rise in Homelessness: The number of people experiencing homelessness in Portland and all over Oregon increased substantially again in the year ending in January 2024, as an ongoing shortage of affordable housing, untreated behavioral health disorders and widespread opioid and meth addiction continued to push people into the streets during 2023 (Portland Business Journal).
Education Website: Months after a national report card slapped Oregon with an “F” for its clunky, convoluted presentation of key education metrics, state Department of Education officials unveiled a new tool Jan. 23 intended to be far more transparent and easy to use (The Oregonian).
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.