Full Reopening in Sight for Oregon Retailers

Oregon’s retailers have been deeply impacted by business shutdowns, physical distancing restrictions, capacity limits and mask mandates. Fortunately, Oregon is inching closer each day to reaching 70% of adults having received the first dose of the vaccine, the threshold Gov. Kate Brown has set for lifting COVID restrictions. Modeling suggests we may reach that goal by the end of the month. Oregon OSHA has said that once the governor announces the end of COVID restrictions, they will work immediately to adopt temporary rules repealing the mask and distancing requirements. They will then begin permanent rulemaking to repeal or modify the other parts of the workplace rules. OBI continues to advocate that they repeal all COVID rules when the 70% goal is reached. In the meantime, despite our advocacy, the state has not backed off from the requirement that businesses ask individuals to show their vaccine card before they are allowed to go without a mask. Oregon is the only state in the country with the vaccine card requirement, and we know this has been particularly hard on OBI’s retail members and employees. Late last month, 10 national retail associations sent a letter to the White House asking for the Biden Administration to ensure Oregon’s policy is not adopted in other states.

OBI Recommends Federal Funds for Return-to-Work Incentives

Due to efforts of the OBI policy team and our partners, a bill has been introduced in the Legislature that would address worker shortages – a serious problem we know many of our retailers are experiencing due to increased unemployment benefits and other factors. HB 3409 was introduced this week, creating return-to-work incentives, funded with American Rescue Plan dollars. The bill also addresses an “essential worker” bonus sought by the unions.   Earlier this month, OBI joined 25 other chambers and association partners urging Gov. Brown and the Legislature to consider return-to-work bonuses, encouraging people to accept work rather than relying on continued unemployment benefits. Read the full letter here.

Legislature Adjourning Soon; Several Bills Have Retail Impacts

Oregon Business & Industry is one of the leading voices in the state on retail-related issues. With the Legislature winding down by June 27, the OBI team remains engaged on many bills on behalf of our retail members. If you have questions or concerns about a bill, let us know via email. Stopping all tax proposals OBI has been laser-focused throughout the session on defeating any and all tax proposals that have been discussed. Prior to the session, the top concern we heard from retail members was that they could not afford increased taxes and fees while recovering from the pandemic. Our team has defeated several ill-conceived proposals, from taxing Paycheck Protection Program loans to disconnecting state policy from the tax relief provisions of the CARES Act, which would have cost thousands of small businesses much needed relief. As the Legislature winds down, one major tax issue remains on the table: scaling back relief for pass-through entities that was enacted by the Legislature several years ago largely because the state does not need additional revenue. As the session evolved, and the state’s astonishingly strong financial condition became known, we have questioned why tax increases are on the table at all. In the face of a $2.8 billion budget surplus, a $1.4 billion surplus and an expected $2.6 billion infusion of cash from the federal government, the last thing Oregon lawmakers need to do is raise taxes on any Oregonian. Quite simply, they don’t need the money. “Recycling reform” bill moving forward One of the main bills this session with impacts to retailers is SB 582, which requires businesses to join a producer responsibility organization (PRO) and pay certain costs for the recycling system. The bill was amended on June 16 in the subcommittee on natural resources and now moves to the full Ways & Means committee. While the amendment addresses many of the concerns OBI has raised, we remain concerned that this will be a very costly and complicated program. OBI worked hard to advocate for the removal of several costs that ultimately were taken out or significantly delayed. Specifically, the new amendment removes the requirement that a PRO and, by extension, producers, pay for expansion of services in multifamily housing and marine and debris clean-up. Addressing unfair unemployment insurance tax increases   Another concern from our retail members has been the projected increase in unemployment taxes due to government-ordered shutdowns throughout the past year. OBI has worked to pass HB 3389, which passed out of the full Joint Committee on Ways & Means on June 16. The bill makes several changes to reduce costs for employers who were forced to lay off employees due to the pandemic and adjusts how much money must remain in Oregon’s UI trust fund to be considered “sufficiently funded.” The bill has passed the House floor but still needs Senate action, and we are confident it will make it all the way through the process.   Paid Family and Medical Leave taxes likely to be delayed by one year HB 3398, which delays implementation of the Paid Family and Medical Leave Insurance (PFMLI) program, passed the House last week. Under the provisions of the bill, contributions will begin Jan. 1, 2023, and employees will be eligible to use benefits after Sept. 3, 2023. Without passage of this legislation, contributions would begin on Jan. 1, 2022. The Oregon Employment Department asked for the delay because it does not expect to have the necessary technology in place by then. We expect the bill to pass out of the House Committee on Rules and then head to the Senate where we also expect passage.   Of course, many other proposals currently under consideration in Salem will have impacts to retailers. You can find updates on tax, environmental, employment and many other issues on the newly redesigned OBI website.

Retail Roundup: Supporting Our Community

Throughout the past year, as retail was particularly hard hit by government shutdowns, wildfires and other crises, Oregon retailers continually stepped up to support our communities. Learn more about what some OBI members are doing to help – and please do not hesitate to reach out to us if you have a project or headline you’d like us to share in a future newsletter.

Summing Up the Last Year of NIKE, Inc.’s Commitment to the Black Community Reflecting on Our Journey To Accelerate Racial Equity Fact Sheet: Target Observes Juneteenth as Annual Holiday The Home Depot Foundation Partners with Girl Scouts of the USA to Launch Skilled Trades Training Program for Young Women Amazon and National Safety Council Create First-of-its-Kind Partnership to Solve the Most Common Workplace Injury in the U.S. Walgreens Continues to Boost COVID-19 Vaccination Access Across the Country

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Staff Spotlight: Scott Bruun, director, tax & fiscal policy

Scott Bruun is the Director of Tax & Fiscal Policy for Oregon Business and Industry. Prior to joining OBI in November 2020, Scott was managing partner of a successful communications and public affairs firm, focusing on communication strategies, public relations, crisis communications, coalition management and government affairs. Scott also has a diverse business background, including 14 years in commercial banking, four years in venture capital, and five years as the chief financial officer for a large regional commercial construction company. Between 2005 and 2011, Scott served in the Oregon House of Representatives. While a legislator, Scott served in various committee and leadership capacities with a focus on health care, tax and fiscal policy. He was considered a “bridge builder” by legislative colleagues in both parties. Scott has also twice been a candidate and major party nominee for U.S. congress, running in Oregon’s 3rd Congressional District in 1996, and Oregon’s 5th District in 2010. Scott is active in his community. He is Advocacy Chair for the Oregon chapter of the American Diabetes Association, and also serves on the National ADA Advocacy Committee. Scott is also the Oregon advocacy chair for the Arthritis Foundation; and was formerly the Executive Director of the Chronic Disease Coalition, a national patients’ rights advocacy organization. Scott also serves on the board for the Oregon chapter of the Theodore Roosevelt Association; and the board for the Chartwell Society chapter of the International Churchill Centre. Scott attended the University of Oregon, earning a B.A. in political science. He also has an MBA from Portland State University. Scott is married to Alison, an event and development professional. Scott and Alison are the proud parents of two daughters in college, Natalie and Katie. The Bruuns live in West Linn, Oregon. How do we ensure a strong retail sector in Oregon?  “Oregon is home to some of the most iconic retailers in the world, not to mention our amazing small businesses in cities and towns throughout the state,” Scott says. “COVID has been particularly tough on these business owners. One of OBI’s biggest public policy priorities during the 2021 legislative session has been to resist efforts to raise taxes on retailers. We believe this was vitally important given the widespread adverse economic impacts on Oregon businesses resulting from the pandemic, as well as the fact that businesses have already experienced a 41% increase in their effective tax burden over just the last two years.  “Our position against tax increases is made even stronger by the state’s remarkably robust revenue position,” he continues. “The bottom-line is that with over $4 billion in ending balances and reserves, and another $2.6 billion in federal funds through the American Rescue Plan Act, there is no justification for state tax increases of any sort – the state simply does not need the money.”

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