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OBI Competitiveness Bill Advances to House Floor

‘Standing’ bill advances: On March 27, the House Committee on Revenue advanced HB 2119 to the House floor for a vote. The bill would allow membership organizations like OBI to assert standing on behalf of members in Oregon Tax Court. The bill is a component of OBI’s Oregon Competitiveness Agenda.

The details: HB 2119 allows membership organizations to seek declaratory relief on behalf of members in the Oregon Tax Court, a part of the Oregon Judicial Department that hears state-level tax appeals. Appeals can involve personal income taxes, property taxes, corporate excise taxes and the like. In essence, the bill would allow organizations like OBI to seek clarity on tax laws so that members themselves don’t have to.

Why it matters: Currently, affected taxpayers can challenge tax laws, but the process is lengthy and burdensome. As OBI Policy Director and Counsel Derek Sangston explains in submitted testimony, the process requires taxpayers to pay a tax with which they disagree, then wait for an answer, which can take years. HB 2119 would speed up the resolution of tax questions and reduce burdens on both taxpayers and the court system.

Learn more: Read Derek Sangston’s testimony here and watch his in-person testimony, delivered during a Jan. 28 public hearing, here. Go here to learn more about OBI’s Oregon Competitiveness Agenda.

Circuit Court Judge Blocks Executive Order Mandating PLAs

What happened: On March 24, a Marion County Circuit Court judge issued a temporary injunction blocking a December 2024 executive order issued by Gov. Tina Kotek mandating project labor agreements for most state construction projects. Read a story in Willamette Week about the decision here and one in The Oregonian here.

The executive order: Signed on Dec. 18, 2024, the order requires project labor agreements to be used on all state projects for which labor constitutes at least 15% of total costs – effectively, all state projects. Agencies were required to comply with the order by March 31. In response to widespread confusion about the order’s applicability, the governor’s office subsequently attached an FAQ document asserting various exemptions, including affordable housing projects and higher-education projects. The FAQ document, however, has no binding or legal effect.

Problems with the order: As OBI explained in a response, the order imposes de facto union representation on the employees of affected businesses. It promises to be particularly harmful to small and local contractors, which are less able to absorb additional costs associated with PLAs. It will be costly for taxpayers, and it was issued without consulting affected businesses or involving the state Legislature.

Legal response: In February, a group of construction firms and associations sued the governor in Marion County Circuit Court, arguing that she exceeded her authority in issuing the order. Read an Oregon Public Broadcasting story about the lawsuit here, and read the suit itself here.

What’s next: The state deadline to implement the ruling is suspended until Marion County Circuit Court Judge Thomas Hart rules on the substance.

Organized Retail Crime Bill Enhances Law Enforcement Tools

What happened: On March 26, Derek Sangston testified before the Senate Committee on Judiciary in support of an amendment to SB 275, a placeholder bill, that would enhance the ability of law enforcement agencies to combat organized retail theft.

What the bill would do: As amended, the bill would expand activities for which people involved in organized retail theft could face first-degree theft charges. These include leveraging stolen property even if the person isn’t involved in the initial theft and committing theft through the use of a store’s emergency exit. The bill also would permit funding distributed through the Organized Retail Theft Grant Program to go to the Department of Justice in addition to local law enforcement agencies.

Background: At the urging of the Organized Retail Crime Task Force, of which OBI was an inaugural member, the Legislature began to address organized retail theft in earnest in 2023. SB 900, for instance, created the Organized Retail Theft Grant Program. SB 340 changed the criminal code to make organized retail theft easier to prosecute. The Legislature also provided funding for the Department of Justice to hire personnel focused on retail theft. SB 275 is a continuation of that work.

Why it matters: As Derek testified, organized retail theft costs retailers billions of dollars across the country and places retail employees and customers at risk. Oregon alone has lost an estimated $1.4 billion in economic activity and more than 8,000 jobs.

Learn more: Go here to watch Derek’s testimony and here to read his submitted written testimony. OBI’s Oregon Competitiveness Agenda, which you can read here, calls for a continued focus on fighting organized retail crime.

First Five Students Advance to Oregon Civics Bee Final

Five middle-schoolers have advanced to the second annual Oregon Civics Bee from one of two preliminary competitions. On March 8, the students below (in alphabetical order) received the highest scores at the Tigard regional bee, held at Twality Middle School:

  • Athanasia Gatziolis, Portland
  • Lexi Milla, Portland
  • Avery Neice, Lake Oswego
  • Emeryn Tibbs, Portland
  • Yervant Wei, West Linn

These students will be joined by five finalists from a regional bee to be held April 17 at the University of Oregon in Eugene. The 10 will then compete in the Oregon Civics Bee, which will take place on May 28 at Willamette University. Oregon Secretary of State Tobias Read will moderate, as he did at the inaugural Oregon Civics Bee in 2024, won by Thomas Morgan of Keizer.

The Oregon Civics Bee is presented by U.S. Bank and organized by Oregon Business and Industry in partnership with the U.S. Chamber of Commerce Foundation. Beginning in late 2024, 6th, 7th and 8th graders from across the state entered the competition by submitting essays explaining how they would use civics principles to address problems they identified in their communities. The writers of the best essays, as determined by a panel of judges, were invited to participate in the two regional bees.

Go here to learn more about the Oregon Civics Bee.

Register for April 28 Oregon Trade Summit

On April 28, join OBI for the Oregon Trade Summit, an event focused on trade, tariffs and Oregon’s economy.

Oregon Trade Summit presentations:

The summit will take place at the Salem Convention Center. Doors will open at 1:30 p.m., and the program will run from 2-4:30 p.m.

A networking reception will follow.

Go here to register.

Register for Unemployment Insurance System Webinar

Join experts from the Oregon Employment Department April 23 to learn about the state’s unemployment insurance system. The webinar will cover the following topics and include plenty of time for questions:

  • Overview of Oregon’s unemployment insurance system
  • How rates are set
  • How to respond to an unemployment claim using the Oregon Employment Department’s Frances system.

The webinar will run from 11:30 a.m. to 12:30 p.m. Go here to register.

Schwabe Webinar: State of Manufacturing in the Pacific NW

On April 2, Schwabe will review the highlights of its recently completed State of Manufacturing in the Pacific Northwest report, which is based on a recent survey conducted with Aldrich CPAs + Advisors. The webinar will run from 11 a.m. to noon and include the following highlights:

 

  • Preparing for the Next Generation of Leadership: With 55% of manufacturers planning leadership transitions, are businesses ready for what’s ahead? Schwabe’s report explores strategies for smooth transitions and maintaining growth through change.
  • Supply Chains in Focus: How are manufacturers addressing disruptions and rising costs? From innovative solutions to long-term strategies, uncover the actions reshaping supply chains in your region.
  • Optimistic Hiring Outlook: Manufacturers of all sizes show confidence, with plans for full-time and part-time workforce additions

Webinar attendees will have a chance to share their thoughts in a roundtable format at the end of the presentation. Go here to register.

OBI Signs Letter Opposing Proposed Shipping Fees

OBI joined approximately 300 other organizations across the country last week in signing a letter organized by the U.S. Chamber of Commerce in response to the U.S. Trade Representative’s proposed fees on Chinese-built ships using American ports. It’s estimated that this proposal will cost businesses and farmers $30 billion annually. You can watch an episode of The Call by the U.S. Chamber on this topic here.

April 1 is the date when reports from trade, commerce and treasury leaders are due to President Trump. These reports are part of the basis for what President Trump intends to do on April 2, the next tariff date. This Reuters story summarizes what reports are due on April 1, and this AP story looks at what President Trump has proposed or hinted at for April 2 tariffs.

Legislative and Rulemaking Updates

Environmental Amendment: In one of the biggest spectacles of the session, the Senate Committee on Rules heard SJR 28 on March 26. The resolution would present voters with a constitutional amendment establishing the right to a clean, healthy and safe environment for all people, including children and future generations. It also would establish a private right of action based on harm or the threat of harm to this right. The broad language in SJR 28 would make it possible for any Oregonian to sue based on any type of environmental impact or possibility of environmental impact. It would apply to actions taken as well as inaction to address perceived environmental harms. Three states have similar constitutional amendments (New York, Pennsylvania and Montana), but the language in SJR 28 is the most sweeping, the vaguest and would almost certainly put Oregon environmental regulation in the hands of trial lawyers. OBI testified against the bill.

Privacy Bill: Rep. Willy Chotzen, D-Portland, has introduced HB 3899, a data-privacy bill that would significantly revise SB 619, the 2023 Oregon Consumer Privacy Act, which OBI spent four-plus years negotiating as a member of the Attorney General’s Consumer Privacy Data Task Force. The bill introduces provisions that were not part of the original negotiations and could create additional burdens for Oregon businesses and consumers. After an adversarial public hearing in the House Committee on Commerce and Consumer Protection, Chotzen has agreed to bring stakeholders together to work towards a compromise and narrow the scope of the bill to banning the sale of precise geolocation data and amending the definition of “child” from 13 to 15 years of age. OBI is participating in the negotiations and expects a new amendment soon. Please reach out with questions and or feedback.

Unemployment for Strikers: SB 916, which passed the Senate by a one-vote margin, has now been referred to the House Committee on Labor and Business. OBI’s coalition is working hard to defeat the bill. Republicans are locked up in opposition, which means defeating it will require the votes of six Democrats. OBI expects the bill to be scheduled for an informational hearing on April 9 and a public hearing on April 14.

Contractor Liability Bill: SB 426 would make property owners and general contractors responsible for the failure of subcontractors to pay wages. Before the bill moved out of the Senate Committee on Judiciary, Democrats rejected an amendment that would have limited liability for owners and contractors to actual unpaid wages and prevented unions from filing lawsuits to harass non-union contractors. OBI will continue to work to defeat the bill.

Payroll Bill Negotiation: OBI and the Northwest Grocery Retail Association have negotiated significant improvements to two bills that could have caused serious complications in payroll processes. SB 906 as initially proposed would have required employers to use full sentences on pay stubs to describe every pay rate and deduction. OBI successfully narrowed the bill’s requirements to the production of a glossary, which could be posted online, defining pay rate and deduction codes. SB 968 as proposed would have limited when and how employers could deduct wages to recoup overpayments. OBI has consistently argued that this is an issue for the state, not private employers. After a lot of back and forth, the bill will be amended to apply only to state employers.

EV Requirement Stalled: HB 2961 would increase the percentage of electric vehicle charging stations that must be installed in new multi-family housing projects and mixed-use construction. It has now been held over twice from scheduled work sessions. The bill appears to lack the votes needed to pass. OBI has worked to defeat and to amend this bill, though the amendments have not been considered. The bill’s sponsor, Rep. Mark Gamba, D-Milwaukie, introduced amendments lowering the bill’s original requirement of 50% EV charging stations to 20% and raising the original threshold for multifamily construction from five units to 10 units. While the amendments make the bill less onerous, it remains too rigid and fails to consider the highly variable circumstances for different developments.

Land Use Bill: HB 2950, which would start a process to revamp Oregon’s land use goal involving citizen involvement, is scheduled for amendment and a vote. The bill’s advocates have been willing to listen and address many concerns. Some of OBI’s suggestions have been incorporated into the current version of amendments, and OBI continues to pursue additional changes. Despite opposing the original bill, OBI may become neutral as amendments evolve.

Beverage Tax: On April 2, the Joint Committee on Addiction and Community Safety Response will hold a public hearing on HB 3197, which would raise the cost of beer, wine and cider by establishing a 2% sales tax that would increase to 8% in 2032. Oregon’s craft breweries, wineries and cideries are weathering price increases caused by inflation, employee shortages and supply chain issues. They could not easily tolerate new taxes as well. OBI is working with a large coalition to oppose the bill and will testify in opposition.

Permitting Bill Dies: HB 3819 had a short but exciting life. The bill was modeled on a Washington Executive Order that OBI sent to Gov. Kotek and circulated among legislators at the beginning of session. Rep. Ed Diehl, R-Scio, and Rep. April Dobson, D-Happy Valley, were the chief sponsors, and both worked with OBI to gather support. Unfortunately, the bill died after a recent deadline, probably due to a combination of its committee and late arrival. However, OBI did generate significant bipartisan interest in the topic, and the conversation is likely to continue in future sessions.

Notable News

Trump Tariffs: The Trump administration is scrambling to determine the specifics of its new tariff agenda ahead of its self-imposed deadline of April 2, weighing options as the president has promised to remake the American economy with a swath of new levies. One key point of debate is whether to impose individualized tariff rates for U.S. trading partners, as President Trump has previewed in recent weeks, or revert to his campaign pledge for an across-the-board tariff that would affect virtually every country doing business with the U.S., say people familiar with the conversations (The Wall Street Journal).

Youth Climate Suit: The U.S. Supreme Court has declined a petition to revive the nearly decade-old case initially filed in Oregon by youth climate activists who have struggled to get their federal case against the government to trial (The Oregonian).

Logging Executive Orders: Earlier this month, President Donald Trump signed two executive orders aimed at ramping up logging on federal lands. The directives prompted polar and predictable reactions from timber industry advocates and environmental groups in Oregon (The Oregonian).

Housing Map: Gov. Tina Kotek has released a map of state property that could be redeveloped for housing, hoping to offer new options to developers who say scarce land is limiting construction of new homes (The Oregonian).

Federal Funds: In theory, Oregon officials have some 40 billion reasons to be anxious about federal funding from the Trump administration. That’s roughly how much money lawmakers expected from federal funds over the past two years and those same officials now must figure out how to plan state spending into 2027 (The Oregonian).

Housing vs. Trees: A developer whose nonprofit has received millions in state funding to help build more than 100 affordable homes in southwest Bend told the city he won’t follow its recently adopted tree preservation code, setting the table for continued land-use disputes and raising questions about whether the quest to save trees is compatible with the city’s housing needs (The Bulletin).

Utility Rates: As outcry mounts about recent utility rate increases, Gov. Tina Kotek wants to make sure state regulators do their part to lower residential electricity and natural gas bills while working to help utilities reach state climate targets (The Oregonian).

Voting Executive Order: President Donald Trump signed a far-reaching executive order March 25 that would require people to provide proof of citizenship to register to vote and prevent states like Oregon from counting mail-in ballots received after election day. Oregon officials are analyzing how specific provisions in the order would affect voting here. But Secretary of State Tobias Read, whose office oversees Oregon elections, said the fundamental aim of Trump’s order was to make it more difficult for people to vote. He said it was almost certain to be challenged, either by Oregon or other states (The Oregonian).

Boeing Fighter: Boeing has been selected by the Pentagon to build the Air Force’s next-generation manned jet fighter, beating out Lockheed Martin in a move that surprised Wall Street and left Lockheed disappointed (The Wall Street Journal).

Portland Polls: Portland-area voters continue to have equally mixed views on Gov. Tina Kotek more than two years into her term, a recent poll commissioned by The Oregonian/OregonLive found. DMH Research polled 600 registered voters across the Portland tri-county area and found that 42% of respondents had a positive impression of Kotek, while 40% reported having a negative impression (The Oregonian). Meanwhile, concern about crime and drug use in the Portland area has dropped considerably over the past year (The Oregonian).

Oregon Unemployment: Oregon’s February 2025 unemployment rate both exceeds the U.S. level and is at its highest mark since August 2021. The Oregon Employment Department revealed March 26 that the level was 4.5% in February and 4.4% in January. The figure was 4.1% a year ago. It’s not been this high since the 4.7% level recorded three-and-a-half years ago (Portland Business Journal).

County Budget Problems: Local government agencies across the state are building their budgets for the upcoming fiscal year, and the outlook for many is grim. At least 21 of Oregon’s 36 county governments, from the Portland metro area to rural southern Oregon, are facing deficits that could prompt cuts to public services, including law enforcement, road maintenance and health care, according to the Association of Oregon Counties (Oregon Public Broadcasting).

Lithia Tariff Hit: As 2025’s first quarter winds down, shares of Lithia Motors have apparently been hit by political headwinds. The Medford-based company’s price dropped by 3.77% March 27, the day after the Trump administration revealed it would place 25% tariffs on imported automobiles. Lithia’s line includes such makes as Audis and BMWs (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.