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Publications

LEGISLATIVE UPDATE – BEER TAX AND DESTINATION RESORTS HOT TOPICS

Last month, EDCO analyzed key pieces of legislation making their way through the current session, selecting those with the greatest potential impact on Central Oregon business, including rules for overtime calculation, family leave qualifications, and unionization rules. This month, we update you on those pieces of legislation with activity and add two that have garnered considerable discussion - SB 30 (Destination Resorts in Jefferson County) and HB 2535 (Increase of the Beer Tax). 


Oregon Pending Legislative Update – April 2007
Bill Summary
Status
EDCO Comments
SB 30 - Destination Resorts in Jefferson County
Would prohibit destination resorts within three miles of the Metolius River Basin, effectively eliminate the county’s designated resort zone. Bill sponsor Sen. Ben Westlund (D-Tumalo) and backer Sen. Betsy Johnson (D-Scapoose) (who owns property in the Camp Sherman area) intend to appeal the comprehensive plan and zoning ordinance to LUBA.
A public Hearing and Work Session is scheduled for April 26th. Opponents are disturbed by the fact that the bill would circumvent the county's ability to set its own policy on destination resorts, as allowed under state law. Equally, the bill was introduced after an 18-month process to create a comprehensive plan and zoning ordinance (approved in Dec. 2006) designating two areas in the SW portion of the county as suitable for destination resorts. Bill supporters, many vocal during the debated zoning ordinance hearings, believe the resorts are motivated by county’s needs for cash. Concerns over the possible effects on the water supply and traffic have been raised by conservation groups, local tribes and area landowners.
HB 2535 (and others) - Beer Tax
There are several proposals recommending raising the malt beverage tax, differing in terms of how taxes would be raised and how revenues would be distributed. HB 2535, with the greatest support, would raise $120 million to prevent and treat substance abuse, as well as provide state and local law enforcement.
Two days of hearings held with the House Revenue Committee. Legislators’ attempts to cobble together a single proposal were not successful. The bills are supported by those seeking to prevent deaths related to drunk driving and alcohol abuse. Micro-brew owners testified against raising the tax. Gary Fish, founder of Deschutes Brewery, argued compellingly that the bills would damage Oregon’s cluster of 80 small craft breweries, stating that taxes already cost more than labor and materials.
HB 2673 - Overtime
Authorizes Bureau of Labor and Industries (BOLI) to adopt rules permitting overtime pay for work after eight hours in a day (or when employer has adopted alternative workweek schedule such as 4, 10-hour shifts, after 10 hours in that day).
Public hearings have occurred with the House Business & Labor Committee. Widespread opposition exists from both business groups and local government representatives. League of Oregon Cities (LOC) opposes, saying “adhering to rigid work hours within a 40 hour week is contrary to today’s workforce needs for flexibility and increased control over their busy non-work schedules.” Association of Oregon Industries (AOI) also opposes. Expect an initiative petition if the bill is not enacted.
HB 3397 - Part-Time and Temporary Employee Pay
Requires part-time and temporary employees to receive pay within the range of full-time employees doing similar work plus an al 30% surcharge for employees not receiving employer-paid benefits provided to full-time workers. Also prohibits cities to contract construction, janitorial or security services without adequate funds to comply.
Currently before the House Business & Labor Committee. Future uncertain. Opposed by the LOC and Association of Oregon Counties (AOC). LOC calls HB 3397 “a surprising bill with significant fiscal impacts on many public and private employers”.
SB 838 - Renewable Power Standard
Establishes a Renewable Energy Standard (RES) that calls for Oregon’s utilities to gradually increase the amount of renewable energy in their electricity mix until 25% is supplied by new renewable resources by 2025.
Passed the Senate; will receive additional testimony and a work session prior to going to the House floor for a vote Widely expected to pass. LOC supports; citing “the instability of the current electricity markets, the instability of the natural gas supply, and concessions on local control options and energy efficiency.” Earlier concerns from opponents about cost protections for consumers were addressed.
HB 2575 - Family Leave Benefits Insurance Program
Provide up to 6 weeks partly paid leave to care for an ill family member or newborn baby. Deducts $1 per paycheck from employees at companies w/ at least 25 employees.
Hearings held Monday, April 23rd. AOI joined with the National Federation of Independent Businesses (NFIB) to oppose the bill. Both groups testified that the concern was not so much the penny an hour in the proposal; rather the long-term consequences and impacts.
 
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