Legislative and Rulemaking Updates
Another deadline passes: May 23 was the deadline for most policy committees to act on bills. There weren’t many big surprises in terms of bills failing to move forward. Over 500 bills remain in the Rules committees, House Revenue, Senate Finance and Revenue, Joint Transportation and Ways and Means. Many of those bills have very broad relating-to clauses, so the OBI team will keep a close eye on committee agendas in this last month of session. The session must adjourn by June 29.
Property owner liability: Last week, the House Committee on Labor and Workplace Standards advanced SB 426, which would make property owners and general contractors responsible for the failure of subcontractors to pay workers. In a party-line vote, the committee adopted an amendment to exempt projects on property used as the owner’s principal residence and on real property consisting of five or fewer residential or commercial units in a single tract. While this is certainly an improvement, the bill remains a poor policy choice to combat wage theft. OBI also worries that unions may use this bill to file harassing lawsuits against non-union contractors without providing evidence or establishing that the business had knowledge of an issue prior to a demand for payment. The bill is scheduled for a House vote on May 28. If it passes, it will go to the Senate for concurrence. Republicans served notice of a minority report, so OBI expects this will lead to a lengthy debate. Please call or email your legislator about this bill. If you need help with contact info or talking points, please reach out.
Unemployment for strikers: The House Committee on Labor and Workplace Standards also advanced SB 916. The committee chair, Rep. Dacia Grayber, D-Portland, proposed an amendment that would limit unemployment benefits to eight weeks for striking workers when the state is in or emerging from a recession. At all other times striking workers would be able to claim up to 26 weeks of unemployment. All four Democrats on the committee voted for the amendment and moved the bill to the floor despite the objections of all Republicans on the committee. Republicans offered a reasonable amendment to align Oregon with Washington’s recently passed bill, making striking workers disqualified from unemployment benefits for the first two weeks of a strike, capping benefits at six weeks, requiring annual reports from the Employment Department about usage for this purpose and sunsetting the bill in 2035. OBI’s coalition will continue to oppose the bill and remind legislators that it would make Oregon a national outlier. Republicans again served notice of a minority report. OBI remains confident that there is insufficient support for the bill to pass the full House as drafted, but it requires a full court press to counter the pressure Democratic leaders and labor unions will exert in the coming days. The bill is likely to be up for a floor vote on May 29. Thank you to those who have made calls or sent messages about this bill. We ask each of you to do so. Even if legislators are a “yes” vote, it is important that they hear from constituents and area businesses.
Transportation funding: Oregonians have yet to see bill language for a transportation funding package. In a relatively thin status memo, Joint Committee on Transportation Co-Chairs Sen. Chris Gorsek, D-Gresham, and Rep. Susan McLain, D-Forest Grove, stated they have made significant progress in their negotiations to stabilize ODOT funding for operations, maintenance and safety; secure revenue from electric vehicles, hybrids and other high-mileage vehicles; comply with the constitutional requirement that all vehicles pay according to their impact on the highway system; simplify the weight-mile tax for freight users (there are currently 85 different calculations figured into the tax); and identify efficiency and accountability reforms for ODOT. Additionally, the memo references ongoing efforts to wind down DEQ vehicle testing, address transit funding and authorize a carbon pricing program to replace the Climate Protection Program (some revenue would be dedicated to transportation). Unfortunately, these conversations are going on within a group of legislators picked by the presiding officers and have excluded stakeholders thus far.
OBI rulemaking bills: After months of protracted negotiations with state agencies and the governor’s office, OBI expects its priority rulemaking modernization bills to move forward. HB 2692, led by Rep. Anna Scharf, R-Amity, would ensure that rulemaking processes provide ample opportunity to hear business perspectives, require agencies to justify their decisions, require meaningful fiscal impact analysis and allow the public earlier opportunities to engage in rulemaking. To drive home why this legislation is needed, several agencies last week objected to parts of the bill that are already required by current law. The Attorney General’s Office has also objected to the bill. HB 3382, a House Committee on Rules bill, would require that rulemaking information is posted in a central location and is easier to navigate. Both bills are scheduled for votes on May 28 in the House Committee on Rules.
Organized retail crime: OBI, other industry stakeholders and law enforcement are pursuing an organized retail crime package that consists of SB 275 and SB 960, which would increase funding for the Organized Retail Theft Grant Program to $10 million. Unfortunately, SB 275 did not emerge from the House Committee on Judiciary before the May 23 deadline and will be added to an omnibus bill on grants. In the Senate, SB 275 was amended to expand the allowable uses of grant funds, allowing the Department of Justice, along with local law enforcement entities, to apply for them. OBI and the others in the coalition remain confident the Legislature will ultimately adopt the changes called for by SB 275.
Air quality permitting: The House Committee on Climate, Energy and Environment will hold an informational hearing on DEQ’s air quality permitting program on May 29. The hearing is the result of OBI’s persistence in highlighting problems with the permitting program that increase uncertainty, cause delays and elevate costs for regulated entities. Despite major fee increases, DEQ has a backlog of expired and administratively extended air permits, which has been a chronic problem for more than 20 years. OBI is seeking improvements in air quality permitting that would condense agency processing timelines, clarify regulatory requirements and provide more certainty for permit holders and applicants. OBI staff and members will testify on behalf of the regulated community.
Noncompete agreements: Despite OBI’s warnings that the resulting law would confuse employers, employees and lawyers, legislators voted on May 22 to send SB 951 to the House floor for a vote. The primary purpose of the bill is to narrow the control owners have over the management of health care facilities if those owners happen to be corporations rather than physicians. The bill also restricts noncompete agreements for people working in health care but does so in a confusing manner. Legislators plan to amend HB 3410, a health care placeholder bill, to include some of the provisions from SB 951 as well as SB 957, which would retroactively ban noncompete agreements for physicians. OBI hasn’t seen the amendment yet but plans to testify in opposition to language that interferes with existing contracts.
Clean trucks rules: California recently announced that it would repeal its Advanced Clean Fleets rule, a sister program to Oregon’s problematic Advanced Clean Trucks Rules, to settle legal challenges. California’s program was created to make all fleets operating in California, not just those based in California, subject to a heavy-duty electric vehicle mandate. The news comes on the heels of recent announcements from Maryland, Massachusetts, Vermont, Pennsylvania and Oregon delaying implementation of their respective clean trucks rules, which require manufacturers and dealers to sell an increasing percentage of heavy-duty electric vehicles each year. Further, the U.S. Senate voted this month to block implementation of California’s Advanced Clean Trucks, Advanced Clean Cars II and the Low NOx Omnibus rules. The House of Representatives already had passed the measure under the Congressional Review Act. Although Oregon DEQ announced last week that it would not enforce the Advanced Clean Trucks Rules, concerns remained that the Low NOx Omnibus rules, another California regulation adopted by Oregon, would present challenges for manufacturers. It’s unlikely that this is the last Oregonians will hear of these regulations, but for the time being, it appears that DEQ will not be implementing the package of California regulations.
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
Keen closes plant: Keen Footwear quietly closed its Portland factory last month as it prepared to open a larger facility in Kentucky (The Oregonian).
Wildfire map: The House Committee on Climate and Energy on May 22 voted against sending a bill that would repeal the state’s controversial wildfire map to the chamber floor, prompting swift pushback from Republicans who argued that Democrats were trying to use it as leverage to get votes for their proposal to spend kicker rebate money on wildfire efforts (The Oregonian).
Electric vehicles: Oregon has joined 11 other states to continue the transition to electric cars and trucks, a day after the U.S. Senate revoked a waiver that allows California to set stronger emission rules that Oregon also relies on for its policies (The Oregonian).
Biofuel refinery: Environmental groups on May 22 filed a legal challenge to reverse a key permit for a proposed $2.5 billion biofuel refinery along the Columbia River over concerns it could pollute the water and harm salmon and other fish (The Oregonian).
Tourism director resigns: The longtime executive director of Travel Oregon, Todd Davidson, announced he is retiring on May 22 after three decades as a public employee (Oregon Journalism Project).
Cannabis measure unconstitutional: After Oregon voters approved Ballot Measure 119 — requiring cannabis businesses to enter labor peace agreements with employees — last fall, a federal judge ruled May 20 that the law is unconstitutional (KOIN).
Regional TSMC: Taiwan Semiconductor Manufacturing Co. enjoyed a remarkable year in 2024, with sales up by more than a third and profits climbing even faster. Thousands of miles from Taiwan, though, TSMC operates a relatively small factory near Portland that relies on technology that hasn’t been cutting edge in a quarter century. TSMC Washington, formerly known as WaferTech, posted its worst results in at least a dozen years (The Oregonian).
I-5 bridge tolls: Tolling on the Interstate 5 bridge across the Columbia River will start a year later than planned — but drivers traveling between Washington and Oregon may pay a little more than originally forecast as a result (Washington State Standard).
Bottle Bill overhaul: After more than five decades, Oregon’s first-in-the-nation “bottle bill” — now replicated in nine other states — faces a potential overhaul, with lawmakers considering new time restrictions on bottle redemption sites that some say have become magnets for drugs and homelessness (Associated Press).
Portland struggles: Portland’s biggest office tower stands more than half empty and was recently put up for sale. The troubles at Big Pink offer a potent symbol of what ails downtown Portland. They also serve as a warning for what can happen to once-bustling downtowns if they get caught in the doom loop of losing businesses (The Wall Street Journal).
Prosper Portland funding: A spat over city funding for Portland’s economic development agency is turning into a fight over the agency’s independent governance (The Oregonian).
Kicker debate: Oregon lawmakers looking for a new source of money to fight wildfires this year have come up with few slam-dunk answers. Now one option that is often considered politically impossible appears to be gaining traction. Gov. Tina Kotek on May 19 became the latest official to signal support for withholding part of next year’s expected personal income “kicker” tax refund in order to cover wildfire costs (Oregon Public Broadcasting).
Bend tree code: Thistle & Nest, an affordable housing provider in Bend, says the city’s new tree code isn’t flexible enough and is raising the cost of building new housing in Central Oregon. At one of the affordable housing developments Thistle & Nest is currently building, the code will mean fewer homes get built, according to the organization, which is refusing to submit a tree preservation plan for the site (Oregon Public Broadcasting).
Central Oregon homelessness: A survey found the number of people living without homes in Central Oregon is higher than ever. But it’s not clear to what extent homelessness is actually growing (The Bulletin).
Oregon GOP podcasts: Nationally, political podcasts are a hot commodity and one of the most listened to genres. Oregon Republicans have launched an all-out blitz into the medium this year (Oregon Public Broadcasting).
Nike’s Amazon return: Nike on May 21 said it will return to Amazon, the e-commerce platform that it left in 2019, as new CEO Elliott Hill works to spark falling sales (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.