Unemployment for Strikers Bill Scheduled for Vote
On Wednesday, June 4, the House is scheduled to vote on one of the most potentially harmful bills of the 2025 session. Senate Bill 916 would permit striking workers to collect up to 26 weeks (six months!) of unemployment insurance benefits.
Late last month, the bill was amended to limit unemployment benefits to eight weeks for striking workers. But that limitation would apply only if the state were in the midst of a recession and unemployment insurance tax rates were at their highest levels. UI taxes haven’t been that high since Oregon was recovering from the 2009 recession and unemployment exceeded 6.5%.
OBI’s coalition continues to oppose SB 916, which would further erode Oregon’s competitiveness by making the state a national outlier. A bill that passed recently in Washington, for example, caps benefits at six weeks.
OBI remains confident that the bill lacks enough support to pass the full House. However, stopping it will require a full-court press to counter the pressure Democratic leaders and labor unions have been exerting. Thanks to those of you who have made calls or sent messages to legislators about the bill. We urge everyone to do so. Even legislators who support the bill need to hear about the harm it would do from constituents, including businesses.
If you need help with contact information, talking points, etc., please reach out to Paloma Sparks (palomasparks@oregonbusinessindustry.com).
To learn more about SB 916, read this excellent editorial, which appeared in The Oregonian May 28.
OBI Podcast Talks with Sarah Pope of Stand for Children
OBI’s Oregon Business Matters podcast on May 28 released an interview with Sarah Pope, executive director of Stand for Children Oregon.
Sarah and host Angela Wilhelms, OBI’s president and CEO, discuss Oregon’s weak performance on nationwide standardized tests and the things successful states have done to boost student learning.
Meanwhile, don’t miss Oregon Business Matters’ earlier interviews, including discussions with Republican and Democratic legislative leaders and with longtime pollster John Horvick of DHM Research.
Oregon Business Matters focuses on insights, issues and initiatives that affect Oregonians’ shared prosperity and the state’s economy.
Episodes can be found on OBI’s website here and on major podcast platforms, including Apple, Spotify and YouTube.
Court Rulings Narrow Path for Sweeping Trump Tariffs
What happened: On May 28 and May 29, a pair of federal courts ruled that President Trump lacks the authority to impose sweeping tariffs under the Emergency Economic Powers Act of 1977 (IEEPA). The Trump administration has used the law to justify the bulk of the tariffs the president has imposed during his second term. These include tariffs on Canada, Mexico and China imposed to combat fentanyl trafficking as well reciprocal tariffs imposed broadly in April.
In a May 28 ruling, a three-judge panel of the Court of International Trade wrote that the IEEPA does not “confer such unbounded authority and [the court] sets aside the challenged tariffs imposed thereunder,” according to The Wall Street Journal. Congress included limits in the IEEPA that restrict when and how presidents may impose levies, the judges determined. And it would be unconstitutional for Congress to delegate “unbounded tariff power” to presidents. The ruling (since stayed) applied universally.
In a May 29 ruling, the U.S. District Court for the District of Columbia ruled that the IEEPA doesn’t authorize tariffs of any kind. The court issued a preliminary injunction that applies only to the plaintiffs who brought the case, according to Politico. That decision has been appealed to the U.S. Court of Appeals for the D.C. Circuit.
Ruling on hold: On May 29, the U.S. Court of Appeals for the Federal Circuit issued an administrative stay for the May 28 decision by Court of International Trade, according to The Wall Street Journal.
What wasn’t covered: According to The Wall Street Journal, the sweeping Court of International Trade decision did not cover tariffs that weren’t justified under IEEPA. These include levies on autos, steel and aluminum, which were justified for national security reasons under the Trade Expansion Act of 1962. Similar tariffs are planned for other sectors, including lumber and semiconductors.
What’s coming: Businesses are likely to see a lot of appellate litigation over the summer and into the fall. Meanwhile, the rulings may encourage the Trump administration to impose tariffs under other federal statutes, including the Trade Expansion Act of 1962, Trade Act of 1974, Tariff Act of 1930. Unfortunately, it’s likely that more uncertainty is coming as well, at least for the next several weeks.
Why it matters: Many tariffs will affect Oregon disproportionately. Oregon is a trade-dependent state. Exports represent 11% of the state’s GDP, a share exceeded in only five states. Watch a recording of OBI’s recent Oregon Trade Summit to learn more.
Legislative and Rulemaking Updates
Transportation bill: OBI understands that the lawmakers closest to transportation negotiations have submitted a cap-and-trade concept to legislative counsel for drafting. It isn’t clear when the proposal’s details will become public. In the meantime, the idea of repealing the Climate Protection Program (CPP) and replacing it with the cap-and-trade concept under development has drawn heavy fire from environmental groups and many legislative Republicans. Legislative leadership, including the co-chairs of the Joint Committee on Transportation, have remained largely silent on the subject since the release of a May 22 memo that described the proposal.
Beyond that May 22 memo, meanwhile, legislative leaders have said nothing of substance about a transportation-funding package. The new Transportation Reinvestment Committee, formed for procedural deadline reasons, met for the first time recently and reviewed an outside consultant study of ODOT’s many problems. However, planned meetings for June 2 and June 3 have just been cancelled. Whatever emerges will likely be sudden, complicated and controversial.
Rulemaking legislation: Last week, the House Committee on Rules voted unanimously in favor of HB 3382, which would modernize how the public gets information about agency rulemakings. This bill is one of OBI’s priorities for modernizing Oregon’s regulatory processes. The bill would require all rulemaking information to be posted on a centralized website so that it is easy for the public, lawmakers and others to see the full scope of regulations and proposed regulatory changes. HB 2692, which would modernize rulemaking advisory committees (RACs), fiscal analyses, explanations of why rules are needed and judicial review, also was scheduled. However, it was delayed following objections from environmental advocacy groups to provisions in the bill that would require equal representation by regulated entities on RACs developing rules that affect them directly. Environmental groups argue that such balance would amount to “stacking the deck.” OBI is working to convince Democratic leadership that balancing RAC membership would increase fairness, which really isn’t that much to ask for.
Property owner liability: SB 426, which would impose liability on property owners and general contractors for the failure of subcontractors to pay workers, is headed to the governor’s desk for signing. The House passed the bill on a 31-26 vote with four Democratic legislators voting in opposition: Shannon Isadore, John Lively, Daniel Nguyen and Mari Watanabe. All had cited concerns about impacts on commercial property owners and minority contractors. Unfortunately, Republican Rep. Greg Smith provided the 31st vote for the bill. OBI is urging the governor to veto it.
Air quality hearing: In a May 29 hearing, representatives of the regulated community told the House Committee on Climate, Energy and Environment about chronic and systemic challenges in DEQ’s air quality permitting program. Representatives described uncertainty, delays and high compliance costs related to air permitting and pointed out that many states issue permits in a fraction of the time it takes Oregon DEQ to do so. OBI’s Sharla Moffett provided data showing that the agency isn’t making progress on its permit backlog. Meanwhile, nearly half of all Title V permits are expired. Chad Darby of Maul, Foster and Alongi, who has worked on air permits in 35 states, said Oregon has a reputation for being a state where “large projects come to die.” Darby said he advises clients against siting projects in Oregon. Unfortunately, time ran out before two other representatives of the regulated community, Geoff Tichenor of Stoel Rives and Brien Flanagan of Schwabe, were able to testify. The committee chair indicated that the hearing might be carried over or that additional information from the regulated community would be accepted. OBI is seeking a budget note accompanied by funding for DEQ to hire a third party contractor to evaluate structure, function and impediments to timely permit issuance.
Health care noncompetes: SB 951, which would modify the rights of corporate owners to manage the operations of businesses providing health care services, passed the House on May 28. The bill would make most noncompete agreements for doctors and nurses void and unenforceable. OBI told legislators the bill language was confusing and conflicted with other laws regarding those agreements. Despite that issue and several others, the bill was passed without any amendments. Instead, legislators are now considering an amendment to HB 3410, which is a placeholder bill. The amendment would make changes to SB 951 to clear up some errors but also to void noncompete agreements retroactively. In essence, the state would be acting to relieve one party of their contractual obligations even if the other party had performed their obligations under the contract. This seems to be a clear violation of the Contract Clause of the U.S. Constitution, which prohibits states from enacting laws that impair the obligations of existing contracts. For this reason, OBI opposes the bill.
Recycling Modernization Act: On May 27, the House Committee on Climate, Energy, and Environment held an informational hearing on the Plastic Pollution and Recycling Modernization Act, which comes fully online July 1. During the hearing, the committee received presentations from the DEQ and the Circular Action Alliance (CAA). DEQ is the agency charged with implementation, and CAA is the producer responsibility organization contracted by DEQ to administer significant pieces of the program. CAA noted that more than 2,000 producers had registered on time and would pay the approximately $188 million needed to stand up the first six months of the program. DEQ and CAA portrayed the program as on track despite their inability to find suitable markets for materials on Oregon’s statewide recycling list. Because Oregon supplies less than 1% of the recycled waste market and has different laws and requirements than other states, finding acceptable markets may remain difficult.
Health care CAT: On May 28, the Senate Committee on Finance and Revenue held a public hearing on SB 125, which would create a commercial activity tax exemption for activity related to Medicaid, Medicare and the dispensing of certain medications. OBI has joined many health care groups in supporting this change. Not only does the CAT increase the cost of health care, but Oregon’s independent medical providers are harmed by Medicare and Medicaid formulas that often pay only a portion of actual costs. Those businesses pay the CAT on transactions in which they lose money. The problem is particularly acute in rural Oregon, where a relatively large percentage of patients rely upon Medicaid and Medicare.
Nominate Your Favorite Oregon-Made Product
The 2025 Coolest Thing Made in Oregon contest has begun.
The third annual competition to identify the state’s most buzz-worthy product kicked off on May 13, when OBI partner Here is Oregon opened the 2025 nomination website. Until July 10, anyone – members of the public and manufacturers alike – can nominate a favorite Oregon-made product.
A panel of judges will choose 16 finalists, which will be arranged on a tournament-style bracket. Through a series of online votes, the field will be cut to eight, to four, and then to two before Oregonians choose a winner, which will be revealed Oct. 22 at OBI’s annual Vision Oregon Event.
To learn more about the contest – and to follow along as the field is narrowed later this year – check out OBI’s Coolest Thing Made in Oregon web page here.
Annual Meeting Event Will Focus on Sports Tourism, Recreation
Register here for OBI’s Annual Meeting, which will focus on Oregon’s sports tourism and recreation economy. The event is open to OBI members and non-members. The program:
Restoring Oregon’s Competitiveness
An Update on OBI’s Initiatives, Priorities and Outlook
Championing Oregon’s Sports Tourism & Recreation Economy
Part I: The Economic Impact
Presented by Dr. Mike Wilkerson, ECOnorthwest
Part II: Statewide Strengths and Opportunities
A Panel Discussion Facilitated by Jim Etzel, CEO of Sport Oregon, and featuring:
Heather Davis, CEO of the Portland Timbers
Natalie King, Sr. Vice President of the Portland Trail Blazers
Samara Phelps, President & CEO of Travel Lane County
Darren Van Lehn, Director of Sports Development, of Travel Medford
The Annual Meeting will take place June 4 at the Salem Convention Center. Doors will open at 3 p.m., and the program will begin at 3:30 p.m. A networking reception will follow, beginning at 5 p.m.
If you have questions about the Annual Meeting or would like to consider sponsoring the event, contact Patti Winter at PattiWinter@oregonbusinessindustry.com.
Take National Association of State Chambers’ Business Survey
The National Association of State Chambers is conducting a national business leaders survey in partnership with the Siena College Research Institute. The survey is open to businesses of all sizes and from all industries. It seeks to capture current sentiments about the business and economic climate, not just at the national level, but here in Oregon as well. Thus, the more engagement we get from Oregon businesses, the better data we’ll have to help inform policymakers about the business community’s needs.
Please participate here.
Oregon Civics Bee Scheduled June 5 in Salem. Come Watch!
Ten middle-school students from across the state will gather in Salem June 5 for the second annual Oregon Civics Bee emceed by Secretary of State Tobias Read, presented by U.S. Bank and organized by OBI in partnership with the U.S. Chamber of Commerce Foundation. The students qualified for the state competition by distinguishing themselves among dozens of their peers at a pair of regional civics bees this spring. The top three finishers at the Oregon Civics Bee will receive cash prizes, and the winner will be invited to represent Oregon at the U.S. Chamber of Commerce Foundation’s National Civics Bee in Washington, D.C., in November.
Beginning in November 2024, 6th, 7th and 8th graders entered the competition by submitting essays explaining how they would use civics principles to address problems they identified in their communities. A panel of judges chose the best essays, and their writers were invited to participate in the contest’s two regional civics bees, one in Tigard and the second in Eugene.
The Oregon Civics Bee will take place at 2 p.m. on June 5 at Willamette University’s Hudson Hall. There’s plenty of room for spectators.
OBI would like to thank U.S. Bank for sponsoring the Oregon Civics Bee and Willamette University for providing the venue.
June 18 NEBC Conference Targets Stormwater Management
On June 18, the Northwest Environmental Business Council will conduct a conference on managing stormwater in Oregon. The NEBC’s signature event, The Business of Stormwater Regulation and Compliance will bring together regulated industries, solution providers and government agencies to explore the latest developments, share best practices and discover innovative solutions to stormwater management.
The conference will offer education sessions focused on:
- Stormwater fundamentals
- Industrial stormwater treatment
- Stormwater control measures
- Cross-cutting issues.
Conference keynote sessions will include:
- Navigating the Waters: Understanding Trump Administration Shifts in U.S. Water Law, with Beveridge & Diamond Seattle officer Managing Principal and former EPA Region 10 counsel Allyn Stern.
- Oregon DEQ Water Quality Program Update, a panel discussion moderated by Perkins Coie Managing Partner Christopher Rich. It will include Benjamin Benninghoff, DEQ stormwater and underground injection control program manager, and Matthew Davis, DEQ policy and external affairs manager.
The conference will take place at the Sheraton Portland Airport Hotel. Go here to learn more.
Notable News
School funding: For school districts, the No. 1 question of virtually every legislative session boils down to this: What’s the magic number? On May 28, lawmakers on a key education budget subcommittee endorsed the likely answer: $11.36 billion. That’s how much is currently on the table for the state school fund, the primary source of money for schools in the next two academic years. Senate Bill 5516 is a 10.5% boost from the current level (The Oregonian).
Clean trucks: For years, Oregon has been working to write and enforce rules to reduce greenhouse gas emissions from commercial trucks. Now the Trump administration and the U.S. Senate could derail that effort (Oregon Public Broadcasting).
Central Oregon homelessness: The Bureau of Land Management has announced plans to close 40 acres of public land in Central Oregon due to public camping. The area, located between Bend and Redmond, is being closed to all public uses because long-term camping by about six people has created health, safety and environmental concerns, according to the agency (Oregon Public Broadcasting).
Bend development director: The city of Bend has a new economic development director: Katy Brooks, the Bend Chamber of Commerce CEO for the past nine years, the city announced May 28 (The Bulletin).
Behavioral health panel: First Lady Aimee Kotek Wilson will chair a new task force aimed at fixing Oregon’s behavioral health workforce shortages, the governor’s office announced on May 27 (The Oregonian).
Camas AI startup: A Camas startup focused on artificial intelligence and data centers has raised nearly $17 million for a $25 million investment round, according to new regulatory filings. Its board members include former Intel CEO Pat Gelsinger and Steve Fu, who appears to be a partner with the Bay Area venture capital firm Celesta. Current Intel CEO Lip-Bu Tan is among Celesta’s managing partners (The Oregonian).
Tree code upheld: A code meant to preserve Bend’s trees from development was upheld by a hearings officer after a challenge from an affordable housing developer who argued it violates state law by discouraging construction of housing the city badly needs. What that means for the future of 30 affordable homes in southwest Bend — and hundreds across the city — is unclear (The Bulletin).
QB Fabrication: Ben Quach came to the U.S. as a Vietnamese refugee after the Vietnam War ended 50 years ago. Since then, he’s built a legacy. Quach is the founder of QB Fabrication in Clackamas (KGW).
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.