Legislative Update: March 4, 2025
The Springfield Area Chamber of Commerce continues to track legislative developments and action alerts that impact local businesses. With a focus on policies that affect our members, the Chamber shares timely updates from a variety of sources, including the Oregon State Chamber of Commerce (OSCC) and Oregon Business & Industry (OBI).
TAKE ACTION THIS WEEK: Two Key Issues Need Your Voice
The Springfield Chamber has already weighed in, and now it’s your turn! These three bills are moving quickly, and your engagement this week can help shape the outcome. Click below to learn more and take action.
ACTION ALERT!
CAT Exemption Increase
(SB 381 and SB 490)
The Springfield Area Chamber of Commerce supports tax policies that stimulate economic growth, ensure fairness across all business sectors, and maintain transparency. They advocate for reforms that reduce administrative burdens, promote fiscal responsibility, and minimize disproportionate impacts on businesses, especially small and emerging enterprises. With this in mind, the Chamber has voiced its support for Senate Bills 381 and 490, two measures aimed at providing much-needed tax relief for Oregon’s small businesses.
On March 3, the Senate Committee on Finance and Revenue held a public hearing on Senate Bills 381 and 490, both of which proposed raising the Commercial Activity Tax (CAT) threshold from $1 million to $5 million in gross receipts. This adjustment would provide immediate tax relief for over 14,000 of Oregon’s smallest businesses while still preserving over 93% of the $1.2 billion the tax generated for schools in 2022.
GET MORE INFORMATION ON SB 381 AND SB 490, READ THE CHAMBER’S TESTIMONY, AND SUBMIT TESTIMONY HERE.
Other states with similar taxes have taken steps to reduce the economic burden on small businesses. Nevada has always taxed gross receipts over $4 million, and Ohio recently raised its threshold from $1 million to $6 million. The Chamber and OBI both support these bills as a common sense adjustment to ease financial pressure on small businesses while maintaining essential funding for schools.
ACTION ALERT!
Harmful Insurance Bill
(SB 174)
The Springfield Chamber OPPOSES expanding Oregon’s Unlawful Trade Practices Act to punish violations of insurance providers.
On March 5, the Senate Committee on Judiciary will hold a public hearing on Senate Bill 174 (SB 174), a proposal that would expand Oregon’s Unlawful Trade Practices Act to include violations of insurance regulations. This expansion is unnecessary, as existing laws and recent court decisions already provide consumers and the attorney general with ways to hold insurers accountable for misconduct.
GET MORE INFORMATION ON SB 174, READ THE CHAMBER’S TESTIMONY, AND SUBMIT TESTIMONY HERE.
If passed, SB 174 would likely lead to higher insurance costs and more lawsuits, further burdening Oregon’s court system. The Springfield Chamber, OBI, and a broad coalition of industry allies oppose the bill and are working to ensure it does not advance. With Oregon’s cost of living already on the rise, this legislation would add even more financial strain on businesses and residents.
KEY POLICY UPDATES: Tracking our 2025 Legislative Priorities
Legislative developments impacting the Chamber’s 2025 Legislative Policy Agenda, are unfolding. Stay informed on the latest actions and how they align with our advocacy efforts.
Agency Audit Bill (HB 2454)
The Springfield Chamber supports regulatory reforms that enhance transparency, reduce bureaucratic delay, and eliminate duplicative processes that hinder business growth. The Chamber stands in support of Oregon Business and Industry’s Regulatory Modernization Proposals. This week we saw movement on one of these bills.
On February 26, OBI Executive Vice President and General Counsel Paloma Sparks testified before the House Rules Committee in support of House Bill 2454 (HB 2454), a bill aimed at improving government accountability. If passed, the bill would establish a Legislative Audit Officer to review executive branch agencies and ensure their rulemaking aligns with legislative intent.
Oregon agencies generate a high volume of regulations – more than 500 rulemaking notices in just six months of 2024 – making it difficult for businesses to keep up with compliance. In some cases, agencies interpret laws in ways that create confusion and additional regulatory burdens. HB 2454 would introduce a system to verify that agencies are implementing laws as intended, increasing transparency and consistency in the rulemaking process.
Improving accountability in government rulemaking benefits businesses by reducing uncertainty and ensuring that regulations are clear and consistent. You can watch OBI’s testimony here and learn more about the Oregon Competitiveness Agenda here. You can also click here to see Sparks’ Chamber Roundtable presentation outlining some of the new recommendations in the Competitiveness Agenda.
Unemployment for Striking Workers
(SB 916)
Amendments were introduced last week to Senate Bill 916 (SB 916), a bill that could further impact Oregon’s business climate. The amendments propose that striking workers would become eligible for unemployment insurance benefits after a waiting period of one or two weeks, depending on the version. They also clarify the definition of a labor dispute and set the bill’s effective date as January 1, 2026.
While the amendments were presented as a response to employer concerns, the Springfield Chamber remains opposed to the bill, and additional amendments are expected on March 4. Local governments also continue to oppose the measure. A recent Willamette Week report highlighted that if the bill had been in effect last year, Portland Public Schools would have faced an $8.7 million cost from the district’s monthlong strike.
Read our letter of opposition HERE.
Project Labor Agreements (PLAs)
On February 21, the Oregon-Columbia Chapter of the Associated General Contractors of America, along with more than a dozen of its members and two other business groups, filed a lawsuit against Governor Tina Kotek over an executive order issued on December 18. The order mandates that all large state infrastructure projects include Project Labor Agreements (PLAs) with trade unions.
Critics, including the Chamber, argue that requiring PLAs limits competition and increases costs for state-funded projects. The lawsuit challenges the legality and impact of the mandate, which could have significant implications for contractors and the broader construction industry.
OTHER POLICY UPDATES: Issues That Matter to Business & Community
Beyond our formal policy agenda, we’re monitoring workforce, education, and community issues that impact Springfield. Here’s what’s happening and why it matters.
Per-Student Spending:
Oregon vs. Education Standouts
Educational outcomes have been a key component of the Chamber’s advocacy work in the past, and a recent, state-commissioned report found that Oregon needs to spend 30% more per student to see improvement, requiring billions in additional funding. However, recent NAEP test scores show Oregon lags behind most states, with declines in three of four key subjects despite increased K-12 funding.
Some lawmakers questioned the push for more spending, noting a disconnect between funding and results. A study by the Urban Institute placed Oregon last in fourth-grade math and reading, even after adjusting for student demographics. Additionally, cost-adjusted data shows Oregon already spends more per student than six of the top 10 performing states.
Organized Retail Theft
The Senate Committee on Judiciary held a hearing today on Senate Bill 960 (SB 960), which would double funding for Oregon’s organized retail theft grant program and expand its approved uses. Retail theft not only threatens customer and worker safety but also results in billions in stolen goods and millions in lost tax revenue.
The grant program, created in 2023, has already helped local governments, retailers, and law enforcement combat organized retail crime. Increased funding would allow more communities to crack down on theft rings and protect local businesses. Springfield has been a leader in efforts to create a safer, more secure business environment. At the end of 2024, Chamber members convened for a Public Safety Roundtable at the Springfield Justice Center, where they heard from Springfield Police Department how they’re partnering with local retail establishments to combat retail theft locally.
Read more about how Springfield is already utilizing State grant dollars to combat retail theft here locally HERE.
The Springfield Area Chamber of Commerce is monitoring all this legislation closely as part of its advocacy for policies that support a stable and predictable business environment. The Chamber will continue advocating for policies that support a strong, competitive business environment in Springfield and beyond. Stay tuned for updates in The Bottom Line.
Read OBI’s Capitol Connect from Monday, March 3, 2025, to learn more about their activity around these and other bills they are watching during the current legislative session.
Springfield Area Chamber of Commerce Business Advocacy
The Springfield Area Chamber of Commerce is a trusted convener and provider of business resources. They recognize the systemic interdependencies of a healthy economy and provide an ear and a voice for local business at the confluence of government, commerce, and community. They advocate for business by increasing visibility, dialogue, and representation at local, state, and federal policy circles around issues of impact and interest to their members. Learn more about the Chamber’s Business Advocacy work.
