OSCC Legislative Update: February 7, 2022

February 8, 2022

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Here’s latest update from our Oregon State Chamber of Commerce (OSCC) legislative counsel, outlining what’s happening (OSCC Political Observations), activity on major issues, and what’s coming up. Any opinions expressed or implied are those of OSCC and do not necessarily reflect those of the Springfield Chamber or its representatives.

What’s Happening

We are already eight days into the 35-day Oregon legislative session.

We want to reiterate the very quick deadlines:

Monday, February 7 – Original Committee ‘Work Session’ posting deadline (any bill not posted for work session by COB is considered dead)
Monday, February 14 – Original Committee ‘Work Session’ deadline (any bill not passed out of committee by COB is considered dead)
Friday, February 18 – 2^nd Chamber ‘Work Session’ posting deadline (any bill not posted for work session by COB is considered dead)
Thursday, February 24^th – 2^nd Chamber ‘Work Session’ deadline (any bill not passed out of committee by COB is considered dead)
Monday, March 7^th – Constitutional Sine Die

The 2022 legislative session got off to a slow start last week, with lawmakers convening to formally introduce bills and adopt rules on Tuesday before conducting an initial round of public hearings the rest of the week. In all, about 275 bills have been introduced.

For the first time since March 2020, the Capitol is once again open to the public, though with the presiding officers directing staff to work from home when possible and many legislators opting to do the same, activity within the building hardly resembles normal times.

The past week also saw the election of a new Speaker of the House: Rep. Dan Rayfield. Rayfield, a Democrat from Corvallis who previously served as the Co-Chair of the Joint Committee on Ways and Means, aligns politically with more progressive voices in the House Democratic Caucus but has also earned a reputation as a pragmatic leader that understands the value of compromise and importance of bipartisan relationships.

Major Issues OSCC Expects in 2022

The defining characteristic of the 2022 session will be, once again, the sheer amount of money available to spend. Legislators expect to spend an additional $1.5 – $2 billion due to an influx of federal monies as well as a hot state economy which is producing record amounts of revenue.

Big spending initiatives are expected to include: $400 million for additional affordable housing; $200 million for the Governor’s ‘Ready Future Oregon’ Workforce development plan (SB 1545); $100 million in behavioral health supports (HB 4003); and several hundred million in bonus payments to essential workers (HB 4001).

The biggest labor fight of the 2022 session will likely be HB 4002, which would require agricultural employers to pay farmworkers overtime payments for all hours worked over 40 per week by 2027. Nearly all agriculture organizations oppose this legislation on grounds that commodity prices leave little margin for farmers and that increased labor costs cannot be absorbed.

From a tax perspective, HB 4079 looks to be the most alarming proposal as it would levy a sales tax on “luxury” items and redistribute tax proceeds back to low-income Oregonians.

From an environmental perspective, many business organizations are alarmed with HB 4141, which would phase out the use of petroleum-based diesel fuel.

The Governor’s Workforce bill – SB 1545 – is also of major consequence to business groups. The $200 million includes:

$95 million for workforce readiness grants;
$92.5 million to bolster existing workforce training programs, including local workforce development boards, community colleges and apprenticeship programs;
$10 million to support access to benefits;
$1.5 million to ensure the program is meeting its goals;
$1 million to launch a group to make investment recommendations.

What’s Coming Up?

SB 1518 – Adds Reach Code to state building code as specialty code and gives power of administration and interpretation of Reach Code to Department of Consumer and Business Services.
SB 1524 – Updates & Extends Washington County “Gain Share” Program
SB 1525 – Updates connection date to federal Internal Revenue Code and other provisions of federal tax law.
SB 1569 – Directs Department of Revenue to develop schedule allowing personal income taxpayers to voluntarily report taxpayers’ self-identified race and ethnicity identifiers.
SB 1507 – Exempts Prescription Drugs from Corporate Activity Tax
SB 1501 – Private Forest Accord
SB 1546 – Elliot State Forest Research Forest
SB 1534 – Establishes state policy to increase carbon sequestration in natural and working lands and waters.
HB 4077 – Renames Environmental Justice Task Force as Environmental Justice Council.
HB 4141 – Establishes timeline for restrictions on sales of petroleum diesel for use in motor vehicles.