Springfield Area Chamber of Commerce Adopts State Legislative Priorities 2020

Encourages Business and Community Engagement 

Adopted February 19, 2020 

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The Springfield Chamber advocates and works with elected representatives around issues, policy, and legislation of impact and interest to our members at all levels of government. The 2020 Legislative Priorities reflect our commitment to members and to the Springfield Area Chamber’s mission: fostering a prosperous community by strengthening, representing, and promoting business. 

We encourage our members to stay informed and engaged with the Chamber and elected officials as we pursue these state-wide legislative priorities: 

Engage with your Springfield Area Chamber Advocacy Team
Contact: Max Molzahn, Max@springfield-chamber.org 

The Springfield Chamber SUPPORTS: 

1. HB 4047 – Increased Tourism Investments. will make permanent the 1.8% statewide lodging tax rate that was passed in 2016. The rate was scheduled to be reduced to 1.5% this year, but in order to lock in the higher rate for statewide tourism promotion instead of other unrelated objectives, the Oregon Restaurant & Lodging Association agreed to keep the rate at 1.8% so long as the money is dedicated to tourism promotion. 

2. HB 4009 – Corporate Activity Tax modifications. This bill will be watched closely. The objective is to give Department of Revenue flexibility in enforcement as companies figure out their tax burdens and administration during 2020. There is also a hope to prevent additional hiccups as many school districts and local governments are experiencing increases in construction costs directly attributable to the tax that were not budgeted for. 

3. HB 4036 – Investments in Local Airports. This legislation is intended to remove the sunset on a 2-cent aviation fuel tax that was passed in 2015. The bill will help leverage up to $18 million in additional FAA grants to support development and safety improvements at Oregon’s 98 public use airports. 

4. Investment in affordable housing & community–OAHTC & IDAs. There are multiple efforts to expand the Oregon Affordable Housing Tax Credit and keep support stable for local IDA programs (funding is diminishing); these tools are viewed to be community building opportunities. 

5. Investments in Higher Education – The Chamber supports a one-time allocation to State higher education for capital investments. This request would include support for community colleges – an important workforce development partner. Not yet clear what that division looks like (between two and four year; or capital/deferred maintenance/other). (early estimate $300m) 

6. Investments in County Fairgrounds –an effort to provide funds for deferred maintenance to County Fairgrounds – important parts of a local economy. ($1m ask) 

7. HB 4097 – Additional BOLI Technical Assistance in Eastern Oregon. This bill would transfer civil penalty reserves (approx. $100,000/ year) to fund technical assistance for employers in Eastern Oregon and the free online publication of BOLI technical assistance and compliance manuals. We support this effort to increase the availability of technical assistance through BOLI. 

The Springfield Chamber OPPOSES: 

1. SB 1530 – Cap and Trade. The Senate President’s office introduced SB 1530, which includes several changes from HB 2020 from the 2019 session. First, it attempts to phase in the fuels tax, initially in the Portland Metro area and then in cities that store 10 million or more gallons of fuel, which covers a surprisingly large number of cities. Second, the bill gives trade exposed natural gas users (certain manufacturers and farmers) 100% rate relief for the first three years of the program. After 2025, these manufacturers must conduct an energy system management audit and make any state-required energy efficiency investments in order to qualify for bill credits. Homes that use natural gas will see a 7% increase in their rates in 2022, and most propane users receive no protection from rate impacts due to cap-and-trade. 

2. SB 1527 – Changes to Non-Compete Agreements. The biggest concern with SB 1527 was the dramatic shift in enforceability of an agreement from 18 months under existing law to only 6 months. There will likely be a middle ground at 12 months. 

3. HB 4007 – Unemployment Benefits during Labor Disputes. HB 4007 upends Oregon law and ensures that striking employees are not disqualified from receiving unemployment. Most states do not allow workers on strike to collect unemployment benefits, including Oregon. Were HB 4007 to pass, it would levy significant costs on Oregon’s public and private employers. 

4. HB 4010 – Elimination of Opportunity Zones. This bill would disconnect Oregon from the federal Opportunity Zone tax incentive that included in the federal ‘Tax Cut and Jobs Act’ passed by Congress in 2017. Many local chambers and EDOs view maintaining Opportunity Zones as a critical tool to support local economic development. 

5. HJR 203 – Real Estate Transfer Tax. This measure would repeal Oregon’s ban on real estate transfer taxes. 

6. Expansion of DEQ Indirect Source Program ISPPetition: (Petition Before the Environmental Quality Commission DEQ Page) Regulates the construction and operation of indirect sources in cities or metro areas with > 50,000 people. Impact on hundreds, potentially thousands of existing businesses, facilities and operations. The petition would apply to all new development projects disturbing an area approximately the size of a typical single-family home. Indirect sources responsible for obtaining construction and operating permits will include hospitals, churches, schools, universities, government buildings, day care centers, senior citizen centers, housing projects (affordable and otherwise), prisons, and grocery stores, and other. 

7. SB1525 Imposing Prevailing Wage Requirements in Economic Development Zones: SB1525 establishes new reporting requirements for construction projects in property tax exemption zones. To impose new Prevailing Wage Requirements in economic development zones is an ill-advised mandate. Enterprise Zone (EZ), Long-Term Rural Enterprise Zone (LTREZ), and Strategic Investment Program (SIP) are statutory programs administered by Business Oregon which allow local sponsors to offer property tax exemptions to induce local development and job creation. Business firms seeking a property tax exemption must meet statutory requirements and, for urban EZs, LTREZ, and SIP, meet other criteria adopted by or negotiated with local sponsors. The prevailing wage rate (PWR) is the hourly wage, including all fringe benefits, that the Commissioner of the Bureau of Labor and Industries determines is paid in the locality and to the majority of workers employed in a specified trade. Contractors and subcontractors must pay the PWR to workers on a variety of public works projects, including any project that uses at least $750,000 in public funds. Statute excludes tax credits or abatements from the definition of public funds.