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  • February 04, 2019 9:20 AM | Connie Shipley (Administrator)

    Activity on Major Issues


    We are expecting to see additional early activity on a handful of key policy and budget items that Democratic legislative leaders have identified as key priorities, including:

    • Medicaid Funding.  The first major Medicaid funding bill - House Bill 2010 - was introduced last week.  This bill will implement the first stages of Medicaid funding proposed by the Governor - the Hospital provider tax ($98 million) and the insurance tax ($410 million).  These are the least controversial items of the Medicaid funding package, and therefore, will move first.
    • Cap & Trade legislation has now arrived. Late last week, legislators introduced the Cap & Trade bill - House Bill 2020.  The bill is 98 pages long, and OSCC is still reviewing to determine the impacts.  Of note:

    - Transportation fuels are considered "covered emissions," meaning there will be fuel cost increases;

    - Residential, commercial, and industrial natural gas rates will increase under the bill and ratepayer assistance options are limited; and

    - Legislative counsel has determined that cap-and-trade is not a tax and is, therefore, exempt from Constitutional requirements for a 3/5th supermajority vote.

    • Business taxes.  The Joint Student Success Committee has initiated its Revenue Subcommittee hearings on a potential tax plan that will meet the Governor's objective of raising business taxes by $2 billion for K-12, Pre-K, and higher education.  The subcommittee is now meeting every Tuesday and Thursday evening.

    Key Issues Coming up This Week

    • Rent Control and Tenant Protections.  Senate Bill 608 will limit rent increases to 7% per year in buildings over 15 years old and also prohibits no cause evictions for tenants after one year of tenancy.  This is likely the first key priority for Democratic leadership that will start moving.  The first public hearings is today in the Senate Housing Committee.
    • Penalties for Oregon Retirement Savings Program Non-Compliance. Senate Bill 164 would add penalties if a business fails to comply with the Oregon Savings Retirement Program requirements.  OSCC and other business advocacy groups are working with the Treasurer's Office to ensure that penalties are not triggered before the program is fully adopted and that education is the first step to compliance.  A public hearing is scheduled for Tuesday in the Senate Workforce Committee.
    • Codification of Obama-Era Environmental Laws.  House Bill 2250 would require Oregon's natural resources agencies to compare any changes to federal regulations under the Clean Water Act, Clean Air Act, or Safe Drinking Water Act to "baseline" standards-defined as standards in place on the last day of the Obama Administration.  Oregon already has water quality and air quality programs that operate independently of federal law and often go further.  A hearing on the bill is scheduled for Tuesday in the House Energy & Environment Committee.
    • Marijuana Accommodation. Senate Bill 379 would make it an unlawful employment action to condition employment based on refraining from the off-duty use of cannabis or any legal substance.  While the bill contains an exception for jobs where the work cannot be performed while impaired, there is currently no easy test to determine if someone is impaired while at the workplace.  OSCC has opposed this legislation in past legislative sessions because it is a direct affront on an employer's ability to enforce a workplace drug-free policy.  A hearing and potential work session is posted on the bill this Thursday in the Senate Judiciary Committee.  
    • Single use straw ban.  Senate Bill 90 would ban the use of single use straws unless specifically requested by the customer.  It is posted for a work session in the Senate Environment & Natural Resources Committee on Thursday, and we anticipate a series of amendments to the legislation.


  • January 30, 2019 8:54 PM | Connie Shipley (Administrator)

    In his annual Portland land use report, Peter Frye will cover the following topics:

    •  Implemented and proposed changes to the City's Comprehensive Plan.
    •  Proposed Residential Infill Project (RIP) zoning and impacts on single family unit neighborhoods.
    • Opportunity Zones - What are they and where are they located in Portland.
    •  Has Inclusionary Zoning benefited or hindered the start of "affordable" housing units now that the residential market seems to have plateaued? 
    •  Projects and land use matters Peter is currently involved with that may be of interest to East Portland residents and businesses. March 13 - Oregon State Chamber of Commerce update on Legislative action.

    This meeting will be at 7:30a in the Columbia and Willamette Rooms in the Pavilion Building, 10000 SE Main (not at our typical location). 

    March 13 - Oregon State Chamber of Commerce update on Legislative action


  • January 28, 2019 5:56 PM | Connie Shipley (Administrator)

    2019 Legislative Report - Week 1

    Dear OSCC members and colleagues -

    The 2019 legislative session is now underway in Oregon.

    The 2019 Legislature has already introduced over 1,700 bills.  OSCC expects another 1,000+ pieces of legislation to be introduced over the next six weeks.  Of the 1,700 bills that have been introduced thus far, OSCC is keeping an eye on:

    • HB 2655 and SB 379 which would prevent employers from enforcing zero-tolerance workplace drug-free policies on marijuana;
       
    • SB 110 and HB 2175, which would help alleviate the complications that have arisen from Oregon's new manufacturing overtime limits which cap production employees at 60 hours per week;
       
    • HB 2255 and SB 592, which would increase damage awards in medical lawsuits;
       
    • SB 608, a comprehensive rent control and tenant protection bill.
       
    • Dozens of bills that increase individual, business, property, or product excise taxes.

    OSCC expects that several hundred new bills will be introduced this week.  We will continue to screen all new legislation for impact on our local business communities.


    As with previous sessions, OSCC expects that the Senate will be the backstop on bad business bills.  Although Democrats have expanded their majority to 18-12 in the Senate, a handful of key moderate Democrats will still control the flow of bills that pass.  Senators Arnie Roblan (D-Coos Bay), Lee Beyer (D-Springfield), Betsy Johnson (D-Scappoose), Mark Hass (D-Beaverton), and Laurie Monnes Anderson (D-Gresham) will be the key bloc of Senators who will decide just how aggressive the legislature will be on issues of taxes and other progressive policies that will impact business.

    Early Activity on Major Issues

    We are expecting to see early activity on a handful of key policy and budget items that Democratic legislative leaders have identified as key priorities, including:

    • Rent control.  Senate Bill 608 will limit rent increases to 7% per year in buildings over 15 years old and also prohibits no cause evictions for tenants after one year of tenancy.  This is a key priority for Democratic leadership that will start receiving public hearings on February 4th.
       
    • Cap & Trade.  We are expecting to see the 2019 cap & trade bill for the first time by the end of this week.  It will likely start receiving public hearings the week of February 4th. 
       
    • Business taxes.  Starting this Tuesday, the Joint Student Success Committee will initiate its Revenue Subcommittee hearings on a potential tax plan that will meet the Governor's objective of raising business taxes by $2 billion for K-12, Pre-K, and higher education.

    Other Issues Coming up This Week

    • Single use straw ban.  Senate Bill 90 would ban the use of single use straws.  It will be heard in the Senate Environment & Natural Resources Committee on Tuesday.
       
    • Workplace accommodations for pregnant employees.  House Bill 2341 could require an employer to hire an additional person to do heavy lifting or to purchase equipment to allow an employee to stay in their job during the pregnancy.  The bill is scheduled for a hearing in House Business & Labor on Monday morning.  A similar policy has been adopted in Washington, but some business sectors have had issues with implementation.
       
    • Biometric data collection.  SB 284 would make it an unlawful employment practice to collect biometric data (e.g. fingerprints, retinol scans, etc.) from employees.  There are still unanswered questions about the scope of the bill, which will be heard on Thursday in the Senate Workforce Committee.

            
      


     

    Your GEAC committee is working to keep on top of the bills coming up for consideration and will let you know when we need your help in letting legislators know your approval or disapproval of bills they will be voting on.

    Connie Shipley, your GEAC contact, 503-830-1028

  • January 22, 2019 2:57 PM | Connie Shipley (Administrator)

    Legislative Update - January 22, 2019

    Dear OSCC members and colleagues -

    We hope everyone had a wonderful MLK weekend. The 2019 Oregon Legislature is now officially upon us!! Today is Day 1.

     

    We are already at work analyzing the 1,500 bills that have been introduced to date. Some of these proposals address legitimate needs, but details matter in legislation - especially in tax legislation and especially when there are so many proposals on the table at the same time.

     

    Here's a list of major revenue-related proposals that are drawing attention in Salem.

     

    Gross receipts tax (GRT): Despite voters' overwhelming rejection of Measure 97 in 2016, this concept remains a favorite of some influential legislators. Portland voters approved a citywide gross receipts tax on large businesses in November. The existence of a GRT in Portland will give proponents a toehold to push for a similar approach statewide. However, a GRT remains a particularly difficult tax for low-margin businesses, regardless of size.

     

    Business activities tax: The Oregon Business Plan has floated a business activities tax (BAT) as an alternative to a GRT. The BAT, used in Washington, does not create the same concerns about pyramiding (being applied multiple times in the supply chain) as the GRT. However, it still would raise business costs and, depending on details of a specific proposal, could affect some businesses more than others.

     

    Corporate tax rates: If neither of those ideas gathers support of 60 percent of both chambers, the Legislature could default to keeping the current tax structure and increasing the corporate tax rate. Meanwhile, the Governor's budget proposes an increase in the corporate minimum tax.

     

    Small-business taxes: Small businesses have been in the crosshairs of revenue hunters in the Legislature for the past two sessions. In 2017, the House voted to roll back portions of the small-business tax deal that were part of the 2013 "grand bargain," but the bill failed in the Senate. In the 2018 short session, the Legislature disconnected from a portion of the new federal tax law that benefited small business. Senators Brian Boquist (R-Dallas) and Herman Baertschiger (R-Grants Pass) have sued, contending that legislation violates the state Constitution. Meanwhile, Governor Brown, who is named in the lawsuit, has proposed more rollbacks of small-business tax benefits - trimming a tax break that passed in the 2018 session with her support.

     

    Other business taxes and fees: The long list of legislative concept drafts presented in the House Revenue Committee last week during Legislative Days includes an assortment of technical tax adjustments that would increase taxes paid by businesses. Also, some tax credits could be eliminated through the tax credit review process.

     

    Kicker reform: The idea of ending or diverting the "kicker," which returns money to individual taxpayers when revenues exceed state economists' projections by more than 2 percent, has been kicked around for years. In 2012, Oregonians voted to designate the corporate kicker for education funding. Now, similar proposals to use the personal kicker for targeted uses such as PERS or education, have support. Kicker reform is one revenue option included in the latest version of the Oregon Business Plan, which was unveiled earlier this month.

     

    Property taxes: The discussion about reforming Oregon's property tax system has amplified in recent months. The goal would be to eliminate inequities that lead to landowners with similar properties paying differing rates. Even by revenue reform standards, this would be a complicated process, and, therefore, is less likely than some of the other revenue proposals. However, targeted bills aimed at businesses' property taxes could gain traction. For example, one bill would limit the property tax exemption for nonprofit hospitals to the amount spent on charitable care, reduced by the sum of all amounts of compensation reported in excess of $1 million for any individual directors or employees.

     

    Alcohol and tobacco taxes: Increasing tobacco taxes is a common revenue proposal, one that is included in the Governor's budget. Although the Governor has backed off of talk of a higher beer and wine taxes, her budget does propose increasing alcohol costs another way - by increasing the markup on liquor at state stores by 5 percent.

     

    Medicaid taxes: The Governor's budget proposes a mix of taxes and fees to make up for a projected shortfall in Medicaid funding. The money would come from: increased hospital taxes, expanded taxation of health insurance plans, higher cigarette taxes and an assessment on businesses with a large share of employees who qualify for Medicaid.

     

    Transportation taxes: The 2017 Legislature passed a transportation package, and taxes to pay for improvements are beginning to kick in. These include increases in gas taxes, higher registration and title fees, a 0.1 percent payroll tax, a bicycle excise tax, and in 2020 a new way of treating vehicle fees based on miles per gallon.

     

    Carbon taxes: Representatives of the Governor's office presented a carbon-price proposal to the Joint Committee on Carbon Reduction during Legislative Days last week. The model being discussed is a cap-and-trade system. Dozens of decisions remain that will determine the cost of this program to businesses, but under any scenario there will be significant costs. The question, is which businesses and consumers will pay, and how much. If a cap-and-trade bill passes, higher fuel and energy costs are all but certain.

    As you can see, raising revenue will be one of the dominant themes of the 2019 Session.

    OSCC will keep members apprised as the discussions roll out.

               
      


     


  • January 05, 2019 10:24 AM | Connie Shipley (Administrator)

    In an effort to help you know what you need to know about the new Pay Equity Guidelines that have just been put into effect, please go to the information at 

    http://files.constantcontact.com/42052618501/83c9b409-3957-4fb5-a8a4-07409eeaa317.pdf

    These are provided by the Oregon State Chamber of Commerce. Below is the introductory letter from the Chair of the OSCC:

    December 3, 2018

    Dear OSCC members & colleagues,

    Last month, the Bureau of Oregon Labor & Industries released their final rules for employers and employees on Oregon’s groundbreaking Equal Pay Act, passed by the 2017 Oregon legislature. The new law that goes into effect on January 1, 2019 requires that employees be paid equally for comparable work regardless of gender or any of Oregon’s ten other protected classes.

    We believe this will be the most challenging human resources issue for most of our Chamber members over the next year. Further complicating matters – and increasing the level of urgency – is that lawsuits are allowed based on violations of the law starting on January 1st.

    The guide, which you can view here, provides helpful information for your members as they prepare to comply with the new law. The guidance includes an overview of the law, frequently asked questions, a guide for employers on self-evaluations, a sample checklist of policies and practices, and a calculation tool created to assist employers in determining where they have potential wage gaps between employees.

    As the leading grassroots business organization for our local business communities, we think it’s critical that every local business in every corner of our state has access to the best available information on how to implement the new law. We hope you will find that this tool provides great value to your members.

    Sincerely,

    Linda Moholt

    CEO, Tualatin Chamber of Commerce

    Chair, Oregon State Chamber of Commerce

    The East Portland Chamber of Commerce is working to host a Town Hall on this subject soon.


  • January 03, 2019 6:20 PM | Connie Shipley (Administrator)

    Upcoming Event information:

    East Portland Chamber of Commerce

    January Government and Economic Committee Meeting

     – Economic Forecast by Christian Kaylor

    Location: Adventist Medical Center –

    10123 SE Market St, Portland OR 97216;    

    Main hospital, Conference Room near Cafeteria

    Date and Time: January 9,2019 @ 7:30 am

    The East Portland Chamber of Commerce is hosting Christian Kaylor, a popular speaker, who will talk on the economic issues facing Portland. Christian Kaylor is a Workforce Economist for the Oregon Employment Department, specializing in the Portland area. He provides data analysis and advice relating to the Portland economy to local businesses, business associations and government agencies to facilitate intelligent decision making. Christian has been sharing with the East Portland Chamber of Commerce in January his analysis of the Portland economy and his perspective of what will happen in the coming year. He gives his analysis, comparing Portland with cities throughout the country. Members have found his insights to be very informative.

    30-30-30


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