2019 LEGISLATIVE REPORT – WEEK 11
[The following is an excerpt from the Oregon State Chamber of Commerce’s (OSCC) Legislative Report. Any opinions expressed or implied are those of OSCC and do not necessarily reflect those of the Springfield Chamber or its representatives. A link to the complete update can be found at the bottom of this article.]
Activity on Major Issues
Health Care Tax (HB 2269). This proposal would give the Oregon Department of Consumer and Business Services (DCBS) the authority to determine what every large employer (defined as 50+ employees who work an average of 8/hrs per week!) should be spending on health care for employees and authorizes the agency to levy a tax on every employer that does not meet the agency’s minimum health care spending requirements. Agency leaders testified that the bill is designed to raise $500 million per biennium in new taxes.
Paid Family Leave (HB 2005). Legislative leaders have now introduced this bill as the newest and most refined effort to pass a paid family and medical leave system. Bottom line: the bill gives the Employment Department the authority to levy up to a 1% payroll tax on employers and a 1% income tax on employees to implement a 26-week per year paid family leave program. The bill would apply to all employers with at least one employee. The bill raises about $1.5 billion in new taxes every biennium to fund this new state-run bureaucracy and insurance program.
Cap & Trade (HB 2020). The newest re-write of HB 2020, the ‘Cap & Trade’ bill, would immediately add 16 cents per gallon in fuel costs and an immediate 30% increase in natural gas costs for residential, commercial and industrial customers. Large manufacturers will see similar and immediate cost increases for electricity. All told, we are analyzing this bill as a $1.1 billion increase in costs for Oregonians each biennium. The vast majority of direct costs will be borne by manufacturers.
Business Tax Increase. It’s becoming clearer that Democratic leadership will lean toward selecting a Commercial Activity Tax, which is a pure gross receipts tax, as the basis for implementing a new business tax to add more than $2 billion in revenue each biennium into the state’s K-12 system. At this point, it does not appear that PERS reform or any other government cost savings will accompany this tax proposal. A growing coalition of business organizations, including OSCC, are now going on record as opposing a new gross receipts tax. You can see OSCC’s response to the tax package here.
Other Key Issues Coming up This Week
Marijuana Accommodation (SB 379). OSCC is still pushing hard to DEFEAT SB 379. SB 379 would undermine and nullify all employers’ workplace drug-free policies and would require employers to accommodate off-duty marijuana use.
Please respond to the OSCC ACTION ALERT on SB 379. We need to mount our defense on this issue in the Oregon Senate NOW!! The bill is scheduled for committee vote late this week
BOLI Budget (SB 5516). OSCC joined other groups from business and labor in supporting a renewed focus on technical assistance at BOLI. Commissioner Val Hoyle’s budget request would make small business technical assistance a core focus, add an eastside technical assistance and apprenticeship specialist, and update BOLI’s hard-to-navigate website. OSCC was pleased to be able to support Labor Commissioner Hoyle.
Harassment in the Workplace (SB 726). On Thursday, the Senate Committee on Workforce had a work session on SB 726, which would create sweeping changes to Oregon’s harassment and discrimination statutes. The committee reviewed the -4 amendment, which removes the section that would hold those with executive authority personally liable if they merely “should have known” about harassment and failed to prevent it from occurring. While this is a positive change, there are still more amendments to be made, and OSCC anticipates a -5 amendment will be considered during Tuesday’s work session on the bill. OSCC considers the removal of personal liability for owners and officers to be a major win.
