The Oregon Restaurant & Lodging Association (ORLA) supports Measure 103 because it protects low-income Oregonians and small businesses, including restaurants, from new taxes on the sale or distribution of food and beverages, regardless of where such items are purchased.

Measure 103 specifically defines “groceries” as “any raw or processed food or beverage intended for human consumption except alcoholic beverages, marijuana products, and tobacco products.” This broad definition includes food and beverages purchased from restaurants.

Taxes on food would have a disproportionate effect on Oregonians who can least afford it, including low-income households and seniors on fixed incomes. While many states other than Oregon have sales taxes, many exempt food and beverages from those taxes for this very reason. Measure 103 protects all Oregonians from regressive and harmful taxes imposed by state and local governments on the sale of food and beverages.

Oregon currently does not have any statewide sales tax but many local governments tax certain items. Measure 103 would ensure that if new state or local sales taxes are passed in Oregon, those taxes will not apply to the sale of food and beverages. Measure 103 protects customers and businesses from the negative affects new taxes on food and beverages would have.

A meal at a restaurant or from take-out is a regular and increasing part of many Oregonians’ busy schedules. ORLA supports Measure 103 because it will ensure that such meals remain as affordable as possible without unnecessary and burdensome taxation.

Join us in voting Yes on Measure 103.

Hospitality workers make our thriving tourism industry possible. For every dollar we invest in tourism promotion, $237 comes back to Oregon in visitor spending—in addition to $11 in local/state tax revenues for important community priorities—according to third party research by Longwoods International. However, restaurant and lodging employees from Ashland to Portland, Coos Bay to Bend, are finding it more difficult to find housing close to their place of work. 
 
Due to rising housing costs, these hard-working Oregonians are finding it more difficult to secure housing options that meet their needs. The result is long distance and congestion-filled commutes that mean less time spent with families and more money spent on transportation. Hard-working Oregonians should be able to afford to live near their job, but a lack of affordable housing options across the state is making that more difficult.
 
Across Oregon, there is an opportunity to lift the ban to public-private housing development partnerships that assist in solving the challenges we face. Support for Measure 102 will give local governments the opportunity to create comprehensive workforce housing proposals and present them for consideration to local voters. We believe communities deserve the right to vote on housing proposals that, if planned appropriately, can stimulate local economic growth while adding to the quality of life for hospitality workers and their families.
 
Measure 102 is an important, bipartisan measure that will give communities across Oregon greater flexibility to create the housing they need. By allowing local governments to partner with non-profit and private housing providers, any bond dollars they raise specifically for affordable housing will be able to go further, creating more affordable homes. This measure is a small tweak that will have a big impact in the lives of Oregonians.

​Please join us in voting Yes for Measure 102.

​Measure 105 would repeal the state law, Oregon Revised Statute 181A.820, which forbids state agencies, including law enforcement, from using state resources or personnel to detect or apprehend persons whose only violation of the law is that of federal immigration law. 

Measure 105 would allow any law enforcement agency to use agency funds, equipment, and personnel to detect and apprehend people whose only violation of the law is a violation of federal immigration law.

ORLA's position, which has been in place for several years and which the ORLA Policy Committee reconfirmed at their meeting on September 10, 2018, is that Immigration is a national issue and ORLA supports the viewpoint that reform should be addressed at the federal level, not in a piecemeal approach by individual states. 

Comprehensive immigration reform must include all aspects of immigration issues—border security, worker supply and employee verification—which means that Congress is the only political body which can actually solve the immigration problem. State and local governments only make a solution more complex by trying to pass their own laws. ORLA is opposed to random, individual pieces of immigration reform and supports Congress working together on a national level to enact comprehensive reform. 

For this reason, ORLA says No to Measure 105.  

The public is invited to join Andrea Valderrama, Carmen Rubio, Latino Network, Forward Together and PCUN to Support Oregonians United Against Profiling at an even in Portland next month:

Oregonians United Against Profiling Happy Hour
White Owl Social Club, 1305 SE 8th Ave Portland OR 97214
October 10th, 4:30-6:30 pm
RSVP and donate here

It has long been held that federally recognized Native American tribes are considered sovereign nations that hold the right to self-government within the boundaries of their tribal lands. This includes the right to engage in economic activity on reservation lands, specifically gambling.

While tribal casinos are largely thought of as competition only to state lotteries, the truth is they enjoy a competitive advantage in comparison to other hospitality industry businesses as well. Oregon has some of the highest labor costs in the nation, and the rising costs associated with employee benefits is creating an escalating challenge for Oregon’s restaurant and lodging properties.

Local economic impact of additional casino location proposals is and will continue to be of serious concern to ORLA members. Our position since April of 2008 has been as follows: Changes to current federal and state gaming policies should not be made for the purpose of allowing off-reservation casinos, tribal or private.

For more information on ORLA’s policy relating to casinos, please contact Greg Astley.

​June 27, 2018 - A measure strengthening Oregon’s required supermajority in order to increase state revenue appears that it is headed to the ballot in November. The measure clarifies that changes in tax rates, exemptions, or elimination of credits or deductions require at least three-fifths support in each chamber of the legislature. 

A coalition of small business groups turned in over 174,000 signatures supporting the measure by the end of June. The coalition believes that tax and fee increases should receive support from at least three-fifths of the legislature as voters intended when they passed Ballot Measure 63 in 1998.

​Do you think raising taxes on your family and homegrown Oregon companies should be as easy to approve as declaring marionberry pie the official state pie?

We didn’t think so.

The bar should be higher for the legislature to approve taking more of your hard-earned paycheck. Tax increases should always be the last option—never the first.

We have a solution. We need you to visit EndEasyTaxHikes.com/orla right now to add your name to a citizen initiative petition to prevent the legislature from using gimmicks and loopholes to raise taxes easily.

At EndEasyTaxHikes.com/orla, you can download and sign a petition—it will only take you three minutes. The website includes easy instructions to help you get signatures from your family members and colleagues as well.

With your help, ORLA and thousands of other Oregonians will place Initiative Petition 31 on the ballot this November to end easy tax hikes.

Background:

Ten years ago Oregonians smartly passed a constitutional amendment requiring any tax increase be approved by a supermajority of both the State House and State Senate. Now, since our state legislature can't get a supermajority to vote for a tax increase, they are creating and increasing "assessments" and "fees" that are really tax increases - because they only need a simple majority to implement and raise fees and assessments. We need you to visit EndEasyTaxHikes.com/ORLA and add your name to a citizen initiative petition to prevent the legislature from using gimmicks and loopholes to raise taxes easily. It's time to put a stop to this… a tax is a tax.

Oregon's Minimum Wage Continues to Rise

The 7-year minimum wage escalation plan for Oregon went into effect with the first increases on July 1, 2016. The plan includes 3 regions with different escalation methodologies over the course of those 7 years. The wage scale is as follows:

STANDARD: Includes portions of Multnomah / Clackamas / Washington Counties not within the Portland Urban Growth Boundary as well as Marion, Clatsop, Polk, Josephine, Jackson, Deschutes, Lincoln, Benton, Linn, Lane, Tillamook, Yamhill, Columbia, Hood River, and Wasco Counties.

• July 1, 2016: $9.75
• July 1, 2017: $10.25
• July 1, 2018: $10.75
• July 1, 2019: $11.25
• July 1, 2020: $12.00
• July 1, 2021: $12.75
• July 1, 2022: $13.50

PORTLAND METRO: The Portland Metro rate applies to employers located within the urban growth boundary (UGB) of the metropolitan service district. This includes portions of Multnomah / Clackamas / Washington Counties and cities including Portland, Gresham, Troutdale, Fairview, Hillsboro, Beaverton, Tigard, Tualatin, Sherwood, Forest Grove, Wilsonville, Lake Oswego, West Linn, Oregon City, Gladstone, Happy Valley, Milwaukie, and Damascus. Use Metro's Urban Growth Boundary lookup tool to determine if your address is within the UGB. 
​
• July 1, 2016: $9.75
• July 1, 2017: $11.25
• July 1, 2018: $12.00
• July 1, 2019: $12.50
• July 1, 2020: $13.25
• July 1, 2021: $14.00
• July 1, 2022: $14.75

The Urban Growth Boundary is expanded through the process outlined in Title 14 of the Urban Growth Management Functional Plan. The process involves a needs assessment every 6 years, and as-needed review based on local jurisdiction input on a more frequent basis. For questions about the process of UGB expansions, contact Tim O’Brien at Metro.

NONURBAN: Includes Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wheeler counties.
• July 1, 2016: $9.50
• July 1, 2017: $10.00
• July 1, 2018: $10.50
• July 1, 2019: $11.00
• July 1, 2020: $11.50
• July 1, 2021: $12.00
• July 1, 2022: $12.50

ORLA will continue to educate Oregon’s lawmakers on the value of tip credit as a solution to bring stability to the industry and solve wage inequality issues. 

Deschutes County Circuit Court Case No. 17CV41968

On September 26, 2017, the Oregon Restaurant and Lodging Association, BHG Bend, LLC, and Wall Street Suites, LLC (together, the “Plaintiffs”) filed suit against the City of Bend alleging that the City’s recently enacted Ordinance NS-2291 violated ORS 320.350(3) by impermissibly lowering the amount of room tax revenue expended to fund tourism promotion.  Through their Complaint, the Plaintiffs sought (1) a declaration from the Court that NS-2291 violated ORS 320.350(3), and (2) an injunction preventing the City from enforcing NS-2291 and ordering the City to expend room tax revenue in accordance with ORS 320.350(3).

The City answered, denying that NS-2291 violated ORS 320.350(3).  The City’s sole affirmative defense was that the Plaintiffs each lacked standing to challenge the validity of NS-2291.   After limited discovery was concluded, Plaintiffs and Defendants filed cross-motions for summary judgment.  On May 8, 2018, the parties’ motions were heard by the Hon. Judge Beth Bagley.  Plaintiffs were represented by Josh Newton.  The City was represented by Ian Leitheiser.

On May 23, 2018, Judge Bagley read the Court’s decision from the bench.  The Court found that each of the Plaintiffs had standing to challenge NS-2291.  The Court then found that by enacting NS-2291, the City violated ORS 320.350(3) by lowering the room tax revenue expended on tourism promotion below the rate agreed upon by the City prior to the enactment of ORS 320.350(3).  Karnopp Petersen is in the process of preparing an order and judgment to be entered in the action.

Once the final judgment is entered, the City may appeal the Court’s decision.  The City will have 30 days from the date the final judgment is entered to file its Notice of Appeal. 

ORLA thanks the firm Karnopp Petersen LLP for their excellent representation in this case.

Related News:

• Statewide Hospitality Association Files Suit to Defend Tourism Investments

Oregon Restaurant & Lodging Association Takes Legal Action Against the City of Bend to Protect Lodging Tax Dollars Intended for Tourism Promotion

Update May 23, 2018 -  A Deschutes County judge ruled that the City of Bend broke the law by redirecting restricted lodging tax dollars to street maintenance. As a result of the court hearing, $350,000 that had been reallocated to road repairs will be directed back to tourism promotion. ORLA thanks the firm Karnopp Petersen LLP for their excellent representation in this case.


On May 8, 2018, the Judge heard arguments from the city’s attorney and an attorney representing the Oregon Restaurant & Lodging Association and two local hotels that sued the city in September.

The Oregon Restaurant & Lodging Association (ORLA) filed a lawsuit September 26, 2017, against the City of Bend for diverting the City’s room tax revenues away from tourism promotion and reducing the allocation for tourism promotion below what is required by law. 

ORLA is challenging the validity and implementation of a recent Bend City Ordinance which amends the percentage of room tax revenue the City spends on the promotion of tourism and improperly diverts restricted room tax revenues to road maintenance. 

“Cities must follow the restrictions in place for disbursement of the lodging tax revenues they collect,” said ORLA President & CEO Jason Brandt. “Unfortunately, Ordinance NS-2291 results in Bend being out of compliance with state law. The vast majority of tourism revenues in Bend can already be spent on general fund purposes so we hope our lawsuit results in acknowledgment from the courts that this recent act is in violation of Oregon law and must be undone.”

Bend City Ordinance NS-2291 violates state law (Oregon Revised Statue 320.350) in one or more of the following ways:

a) 9% of the City’s 10.4% city room tax rate has a set of restrictions for appropriate use of those funds. Within the 9% city room tax rate, the City is statutorily required to spend 30 percent on tourism promotion and tourism related facilities.

b) The remaining 1.4% city room tax rate is subject to a statutorily required 70% investment in tourism promotion and tourism related facilities. 

“Lodging operators should be recognized as financial partners of local governments,” said Brandt. “As tourism becomes more successful, so does the tax revenue provided to local governments to invest in the projects important to local residents.” 

A report from Longwoods International shows for every $1 invested in tourism promotion, $237 is generated in economic impact and $11 in tax revenue to the benefit of Oregon residents.  

ORLA is engaged on a state and local level, helping local municipalities realize that shifts in tourism promotion investments can do more harm than good. Brandt argues there is a direct correlation between tourism promotion and a community’s own tax revenue. “Tourism promotion dollars are crucial to keeping Oregon’s visitor destinations top of mind. Local communities stand to lose significant tax dollars for their general funds if tourists choose to travel elsewhere.”

In 2003, the Oregon State Legislature passed HB 2267, mandating 70% of new or increased local lodging taxes be directed to tourism promotion or tourism related facilities. At that time, the City made the commitment to fund tourism promotion with 30% of the initial 9% tax rate in Bend. In 2013, the City’s residents approved Measure 9-94, which increased the City’s room tax rate from 9% to 10.4%. That 1.4% increase in tax rate is subject to the restrictions established in HB 2267. This past May the City passed an ordinance, in violation of the law, changing the allocation of tourism dollars. 

“The City claims their new allocation of lodging tax dollars still follows state law. This is incorrect,” said Brandt. “There is an error in the total investment they are required to make in tourism promotions and/or facilities.”

The hospitality industry sees transportation investments as a crucial contributor to Oregon’s continued economic success. ORLA looks forward to working with Bend and other communities to help identify appropriate revenue streams to fund transportation investments including the unrestricted portion of lodging taxes.

For more information, contact ORLA President & CEO, Jason Brandt, at 971.224.1501.

The Oregon Restaurant & Lodging Association represents approximately 2,500 members, and advocates for over 9,900 foodservice locations and 2,200 lodging establishments in Oregon. The foodservice and lodging industry is responsible for 173,700 jobs bringing in over $10.8 billion in annual sales and generates over 54% of the annual tourism dollars spent in Oregon.
​
Related News:

• Summary of Oregon Restaurant and Lodging Association, et. al. v. City of Bend
• Judge: Bend Broke Law by Using Hotel Tax to Fix Roads
• City, Lodging Lobby Clash in Court Over Use of Hotel Tax

Update: Portland Mayor Ted Wheeler’s office recently announced a plan to increase the Portland business tax from 2.2% to 2.6% to pay for an additional 58 officers in the police budget. That number was reduced to 49 new officers, however the City Council agreed to hire 55 officers by the 2019-20 budget year. The tax was something of a surprise to us but does not in any way diminish our commitment to increasing the number of police officers in Portland.

The Portland Business Alliance (PBA) is supporting the increase on business taxes and agreed to step up on this tax increase in order to help address Portland’s top issue of homelessness, which impacts businesses and livability throughout the city. The additional revenue will be targeted toward measurable outcomes. 

Like the Portland Business Alliance, ORLA is supportive of the focused efforts on homelessness, providing community-based policing and targeting measurable outcomes. Visitors to and residents of Portland should feel safe to walk the streets, day or night, and should believe Portland to be a place welcoming their presence and patronage. 

​Support for Portland Policy Bureau's Budget Request
As the City of Portland continues to be a preferred destination for many visitors regionally, nationally and internationally, it’s important they feel safe while staying in our hotels, eating at our restaurants and enjoying all we have to offer in the hospitality industry.

With the 2018-2019 budget season well underway, the Mayor’s Office is encouraging constituents with public safety concerns to give testimony in support of Portland Police Bureau’s budget request for additional officers. 
 
The Portland Police Bureau is struggling to fulfill its mission to serve and protect due to a lack of funding and resources. As both the population of Portland and the number of visitors grows, they are being asked to do more with less. There are the fewer officers in the bureau than there were a decade ago, despite a 10 percent increase in Portland’s population. Consequently, the bureau continues to face challenges in patrol staffing, which has led to declining response times. In the last five years, total 911 call volume has increased by over 22%. These calls include a 97% increase in stolen vehicle calls, 64% increase in unwanted persons calls and a 32% increase in disorder calls.

Mayor Wheeler is proposing adding 93 additional sworn positions and 9 additional non-sworn positions at a cost of $12.3 million and a one-time funding request of $8.8 million which includes $2.6 million for technology replacement and $3.8 million for facilities enhancements. ​This budget request would increase the number of officer positions by approximately 10 percent--on par with Portland’s growth.

Key Points to the Proposal
The Police Bureau's budget requests for additional ongoing resources will advance the bureau’s mission and goals to provide 21st Century Policing services, to support organizational excellence and inclusion, and to rebuild their units to deliver community policing. Priorities include: 

• 21.0 FTE sworn positions to enhance the bureau’s ability to create walking beats and other dedicated, community-based units to address neighborhood problems and livability issues for an ongoing cost of $2.5 million and a one-time cost of $0.8 million. Investment in these functions will address issues such as derelict recreational vehicles (RVs), business owner complaints, and zombie homes before they become a call for service. 
• Re-establish ongoing funding of $1.5 million for the Service Coordination Team to provide supportive housing, drug and alcohol treatment services, and employment readiness support for mostly houseless persons. Ongoing resources were eliminated from this program late in the budget process last fiscal year. This request ensures continuation of the program servicing homeless persons with addictions and criminal history.
• 2.0 FTE sworn positions, 1.0 FTE nonsworn professional position, and contracted services for two clinicians to expand the Behavioral Health Unit (BHU) to serve more individuals in behavioral crisis resulting from known or suspected mental illness and or drug and alcohol addiction for an ongoing cost of $0.5 million and a one-time cost of $82,000.
• 64.0 FTE sworn positions to provide for a consistent rotation of Police Officer trainees who are ready to become fully-deployable officers at a rate that matches the bureau’s average attrition rate.
• 6.0 FTE sworn positions and 2.0 FTE nonsworn professional positions to enhance and support the bureau’s Emergency Management Unit (EMU) to address service delivery to emergency events including natural disasters, demonstrations and permitted events for an ongoing cost of $1.0 million ongoing and a one-time cost of $0.3 million.
  
  

​View the full Portland Police Bureau Budget Request Memo to see additional budget priorities.
Read more on ORLA's engagement in Portland's homeless issues.

​Share Your Testimony
We want to show the Mayor we support his priorities to increase public safety and police accountability to enhance livability. Submit your testimony online or attend a public hearing. If you send an email, please Cc: Astley@OregonRLA.org on your message to the City Budget Office so we can share our industry's collective feedback. 

​Metro, the agency that manages systems for handling and transporting solid waste, wants to transform how the Portland area handles food waste in an effort to convert our food scraps into renewable energy instead of burying them in a landfill.

• Update: July 19, 2018 Metro Council will consider a proposed ordinance that would require the collection of food scraps from certain types of foodservice businesses in the city of Portland. ORLA had the opportunity to review the updates to the proposed code and draft administrative rules relating to food scraps. While we continue to support the merits of a food waste collection program, we believe any mandate on 'all food-related businesses' will bring with it tremendous responsibility and unforeseen challenges (read ORLA’s comments).
• If the proposed code language is adopted, the largest food service businesses will be required to separate their food scraps from other garbage starting in 2020, and smaller food service businesses will be phased into the policy over the following three years.

In 2016, the Metro Council directed staff to investigate ways to do that. In fall 2017, Metro sought public comment on an initial policy proposal to keep more food scraps from restaurants, grocery stores, and other food service businesses out of landfills and put to better use creating energy, compost or other valuable products. The regional government is in the process of seeking a private company to build a plant that breaks down food waste and turns it into biogas, electricity, or compost.

ORLA is engaged in these discussions, anticipating that many restaurant owners will oppose the new mandates that would produce operational challenges.

Metro has developed a guide for businesses to reduce food waste, focusing on prevention, donation, and composting strategies. Learn more about Metro's campaign at FoodWasteStopsWithMe.org.

Read more on Metro's website
Read more in the Portland Tribune

The Oregon Restaurant and Lodging Association (ORLA) invites all Oregonians to join it in celebrating National Park Week, which runs through Sunday, April 29.

The week was designed to celebrate the important role played by national parks in our state and country.
Oregon’s national park sites offer some of the best-in-class experiences for all visitors. From the stunning beauty of Crater Lake, the John Day Fossil Beds, and Oregon Caves, to the cultural significance of Lewis and Clark National Historical Park and Old Chief Joseph’s Grave Site, national parks in Oregon entertain, educate, and enrich visitors from around the world.

Those visitors are important to the state and Oregon restaurant and lodging establishments.

In 2016, more than 1 million people visited national park sites in Oregon. The National Park Service (NPS) estimates that those visitors spent $97.5 million in communities with proximity to national parks. That spending supported 1,640 jobs and added a cumulative benefit of $138.4 million to the state economy – money that helps ORLA members and our overall economy.

Our organization supports more than 9,900 foodservice locations and 2,200 lodging establishments in Oregon. The foodservice and lodging industry is responsible for 173,700 jobs, and brings in more than $10.8 billion in annual sales and generates more than 54 percent of the annual tourism dollars spent in Oregon.

We know how important national park visitors are to those numbers, which is why we are taking the opportunity during National Park Week to encourage Congress to give the parks service the funds it needs to address critical infrastructure repairs.

Nationwide, the National Park Service (NPS)has maintenance needs totaling $11.6 billion, largely due to aging infrastructure and inconsistent federal funding. These needs  include impassable trails, deteriorating historic buildings, crumbling roads, and degraded water and electrical systems. The estimated price tag to address repairs within park sites in Oregon is more than $105 million and growing. This backlog impedes NPS’ ability to keep its sites safe and accessible for visitors.

It is in the best interest of Oregon’s tourism economy to keep our tourist draws open for business, and our parks are no exception. If national parks are closed and/or if the visitor experience is subpar, repeat visitors are less likely.

The good news is that our Oregon congressional delegation understands that protecting national parks is important to our economy as well as to our culture and history. Oregon Reps. Kurt Schrader and Suzanne Bonamici and U.S. Sen. Jeff Merkley all are supporting bills designed to create dedicated funds for NPS to draw down its deferred maintenance backlog.

Oregon's congressional delegation’s commitment to restore our parks will preserve these national treasures for generations to come, create jobs, and protect local and state economies that depend on parks for their livelihood. 

We thank them for their leadership.

SB 1528B negates state income tax relief for Oregon’s small businesses
  
The following business groups today expressed their disappointment in Gov. Kate Brown’s signing of Senate Bill 1528, which increases taxes on small business by more than $1 billion over six years. Statements follow.
 
Associated Oregon Loggers
Oregon-Columbia Chapter of Associated General Contractors
Oregon Farm Bureau Federation
Oregonians for Food & Shelter
Oregon Power Sports Association
Oregon Restaurant & Lodging Association
Oregon Seed Council
Oregon Small Woodlands Association
Oregon State Association of Plumbing-Heating-Cooling Contractors
Oregon Vehicle Dealers Association
National Association of Insurance and Financial Advisors-Oregon
NFIB/Oregon
Northwest Auto Trades Association
 
Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association:
“As Oregonians running restaurants and lodging establishments continue to assess their tax liability under the new federal reforms, one thing is painfully clear – there will be no state income tax relief for Oregon’s small businesses. Oregon had an opportunity to replicate and amplify the successes of federal tax reform by connecting to the new 20 percent deduction on pass-through business income – which would have happened automatically, without passing a single bill this year. This is a very unwelcome and disappointing development. Raising revenue should require a supermajority vote of Oregon’s legislature. ORLA will be actively involved in campaign activity this summer and fall to give Oregonians the opportunity to vote for an end to easy tax hikes.”
 
Anthony Smith, Oregon state director for the National Federation of Independent Business:
“Lower taxes mean more opportunities for entrepreneurs to make investments in their businesses, their communities, and their employees. NFIB remains committed to preserving every possible benefit from federal tax reform because the Tax Cuts and Jobs Act has led to a significant surge in Small Business Optimism across the nation, reaching some of the highest levels on record. Unfortunately, Oregon has chosen a different path. Today’s signing of SB 1528 marks a significant step backwards for our state’s entrepreneurs.
 
Cathi Webb, Executive Director for the Northwest Auto Trades Association:
“It’s sad to see Oregon moving in the wrong direction. We were once a leader in recognizing the importance of providing tax relief to our homegrown, main street businesses. Now, Congress and the White House have raised the bar with an inclusive policy that lowers taxes for nearly every S-corp, partnership, LLC, and sole proprietorship. We could have done the same. We didn’t.”
 
Jonathan Sandau, State Government Affairs for the Oregon Farm Bureau Federation:
“The state’s decision to decouple from the federal tax code jeopardizes our local farmers’ economic competitiveness by blocking the full benefits that could have been realized from federal tax reform. By keeping those dollars on the farm, Oregon’s small farming and ranching families had an opportunity to engage on a level playing field to provide healthy, responsibly grown food to our local markets.”
 
Jim Geisinger, Executive Vice President for Associated Oregon Loggers:
“The state asks small businesses to pay more and more of the state’s obligations while making it more and more difficult to make a buck to tax! They can’t have it both ways!”
 
Roger Beyer, Executive Director for the Oregon Seed Council:
“For Oregon’s family owned farms this is a real blow. Unlike many other businesses, farms cannot pick up and leave the state if it is unprofitable to continue doing business. The state has increased the cost of producing seed significantly in recent years and today, the Governor showed us where her loyalties lie. This was a missed opportunity for Oregon.”
 
Background
According to the non-partisan Legislative Revenue Office, SB 1528B raises $244.4 million in 2017-19, $376.7 million in 2019-21, & $427.4 million in 2021-23, a total of more than $1 billion in additional revenue that was not part of the most recent state revenue forecast.
 
The U.S. Small Business Administration reports that Oregon has over 350,000 small businesses, accounting for 99.4 percent of all businesses in the state and employing more than half of the state’s private sector workforce. The median income for individuals self-employed at their own incorporated businesses was $44,147 in 2015. For individuals self-employed at their own unincorporated firms, this figure was $20,672, including all income sources.

About the Oregon Restaurant & Lodging Association
The Oregon Restaurant & Lodging Association serves to protect and promote Oregon’s hospitality industry, representing approximately 2,500 members, and advocating for over 9,900 foodservice locations and 2,200 lodging establishments across the state. The foodservice and lodging industry is responsible for 173,700 jobs bringing in over $10.8 billion in annual sales and generates over 54% of the annual tourism dollars spent in Oregon.

About the National Federation of Independent Business
Celebrating its 75th anniversary, the National Federation of Independent Business has taken the message from Main Street to the halls of Congress and all 50 state legislatures since 1943. NFIB annually surveys its members on state and federal issues vital to their survival as America's economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities. 

If you have questions or concerns, contact Jason Brandt, President and CEO, Oregon Restaurant & Lodging Association, 503.682.4422, JBrandt@OregonRLA.org.

Oregon restaurants can now share tips with heart-of-the-house employees
 
A federal spending bill passed March 23 abolished a 2011 federal regulation that prohibited tip pooling in all circumstances with non-customarily tipped employees. Now, employers are once again allowed the opportunity to expand tip pools and share the tips among a broader range of employees in states where employers don’t take a tip credit.
 
This change now allows tip sharing among both customarily and non-customarily tipped employees, including dishwashers and cooks.
 
The new legislation also makes it clear that tips belong to the workers who receive them and that owners, managers and supervisors are prohibited from sharing in tip pools.
 
“We believe team environments within restaurants lead to customer satisfaction and business success,” said Jason Brandt, president & CEO of the Oregon Restaurant & Lodging Association (ORLA). “Last week’s congressional action affirms what our industry knows to be true – the dining experience is made possible by wait staff, cooks, bussers, dishwashers and other hard-working employees who now have the opportunity to share in the success of great customer service through the sharing of tips.”
 
The association looks forward to receiving further guidance and clarification from the U.S. Department of Labor.
 
To learn more, read Key Issue: Tip Pooling Updates.

79th Legislative Assembly Garnered Real Outcomes

The “short” Oregon Legislative session officially ended March 3, 2018. The Government Affairs team at ORLA worked diligently to pass several pieces of good legislation and prevent more damaging laws from passing. Working collaboratively with other groups and organizations, some of whom we have not partnered with before, ORLA finished up a very successful short session on behalf of our industry partners.

Here is an update on a few of the bills ORLA was working on and tracking:

HB 4120A – Relating To Short-Term Intermediary Lodging Tax Payments
In 2003, the Tourism Investment Program (HB 2267) was adopted, establishing the statutory framework for the transient lodging tax program. Third-party intermediaries have always played a role in short-term lodging and that role has increased as new short-term lodging models emerged in the marketplace and consumers more frequently turned to multiple online platforms to compare prices and make their vacation plans.

In 2013, we believe the Legislature passed bills intending to treat short-term rental intermediaries the same as traditional hotels, motels and other lodging establishments who pay the transient lodging tax to the state, counties and cities.

Unfortunately, some of these third-party short-term rental intermediaries have refused to pay taxes unless a voluntary collection agreement is signed and even then, the agreement stipulates no sharing of data between the short-term rental intermediary and the city or county. Cannon Beach recently rejected a voluntary collection agreement due to a lack of transparency and the inability to properly audit, thereby ensuring they were receiving the correct amount of transient lodging tax. 

The need to statutorily clarify that short-term rental intermediaries are responsible for collecting and remitting the transient lodging taxes was reinforced in 2016 by the HB 4146 Work Group and as a result, HB 2049 was introduced in the 2017 session. 

This session, ORLA worked with the League of Oregon Cities and State Representative Pam Marsh (D–Ashland) to help introduce HB 4120A, which requires short-term intermediaries like Airbnb to collect lodging taxes when they’re already collecting the lodging stay payment. After passing out of committee, HB 4120A was supported widely through a bipartisan vote (52-8) in the State House of Representatives. The bill then moved over to the Senate and to the Senate Finance and Revenue Committee where State Senator Mark Hass (D-Beaverton) led the committee in support of a 5-0 vote recommending passage to the rest of the Senate. Another member of the Senate Committee, State Senator Alan DeBoer (R-Ashland), carried the bill on the Senate floor to a 26-1 vote for a major hospitality win. The bill is now headed to the Governor’s desk for signing.

HB 4088 – Relating To Music Licensing
ORLA, working in partnership with the Oregon Winegrowers and with the support of music licensing company BMI, introduced HB 4088 to help regulate how music licensing companies can engage lodging and restaurant operators about the playing and/or performing of copyrighted music.

The bill prohibits certain activities by, and specifies additional duties for, performing rights societies in notifying business proprietors concerning proprietors' duties with respect to performing copyrighted musical works and in negotiating contracts for paying royalties for performing copyrighted musical works.

Essentially, the bill states:

A performing rights society may not enter into, or offer to enter into, a contract under the terms of which a proprietor must pay royalties unless the performing rights society, at least 72 hours before entering into the contract, provides to the proprietor or an employee of the proprietor:

(a) Information, at the proprietor’s request, as to whether specific copyrighted musical works are in the repertoire of the performing rights society;
(b) An opportunity to review, electronically and free of charge, the most current available list of the performing rights society’s members or affiliates, and the most current available list of the musical works that the performing rights society licenses, in a format that the proprietor can search by title, publisher and performing artist; and
(c) A schedule of rates and terms under which the performing rights society will collect royalties under the contract, including the terms of any sliding scale or schedule for any increase or decrease of the rates for the duration of the contract.
 
Further, a performing rights society or any agent or employee of a performing rights society may not:

(1) Enter onto the premises of a proprietor’s business to discuss or inquire about a contract under which the proprietor will pay royalties without first:
(a) Providing identification to the proprietor or the proprietor’s employees; and
(b) Specifying the purpose of the entry;
(2) Use abusive, profane or obscene language when communicating with a proprietor or the proprietor’s employees;
(3) Communicate with a proprietor or the proprietor’s employees in person or by telephone in locations or at times other than in the proprietor’s place of business during regular business hours unless the proprietor’s place of business is not open to the public and the proprietor or an employee, agent or representative of the proprietor agrees to communicate in a different location or at a different time;
(4) Communicate with a proprietor or the proprietor’s employees after receiving notice from the proprietor’s attorney that the performing rights society or an agent or employee of the performing rights society must address communications to the proprietor’s attorney, except that a performing rights society or an agent or employee of the performing rights society may communicate directly with the proprietor or the proprietor’s employees if the attorney fails to respond to communications for a period of 60 days or more;
(5) Engage in any coercive conduct, act or practice that is substantially disruptive to a proprietor’s
business;
(6) Use or attempt to use any unfair or deceptive act or practice in negotiating with a proprietor
 
The bill was passed out of the House Business and Labor Committee and was carried on the House floor by State Representative Denyc Boles (R-Salem), passing 59-0 with one excused. On the Senate side, after passing out of the Senate Business and Transportation Committee, it was carried by State Senator Rod Monroe (D-Portland). It then passed the Senate 29-0 with one excused. The bill is now awaiting a signature by the Governor.
 
HB 4054 A – Relating to the Removal of Personal Property (i.e., homeless camps)
Although not a partner on this bill, ORLA was supportive of its passage. 

The bill which specifically allows the Department of Transportation to enter into an intergovernmental agreement with cities with a population of 500,000 or greater (i.e., Portland) creates an avenue for the city to continue their important work in cleaning up homeless camps regardless of whether the land is owned by the city or state.

The bill cuts down the number of days from 22 to 2 for notification purposes.

This bill passed 58-0 in the House with two excused and 27-0 in the Senate with three excused. It is now headed to the Governor’s desk for signing.

ORLA’s government affairs team is dedicated to promoting and protecting the foodservice and lodging industries of Oregon. By advocating for public policies that sustain our industry, and by working on behalf of local businesses, we are the voice of hospitality at the local, state and national levels.
 
Fighting Against Additional Labor Regulations
Small businesses in Oregon are still adjusting to increasing minimum wage rates, paid sick leave, and Oregon’s new scheduling law. As a result, ORLA will fight any attempts to implement Paid Family Leave during the 2018 session. Laws relating to Paid Family Leave are currently on the books in both Washington and California and Oregon’s legislative leadership have signaled an interest in implementing paid family leave legislation.
 
Fair Payment of Lodging Taxes by Lodging Intermediaries
ORLA, in partnership with the League of Oregon Cities, will be pursuing a legislative fix to make sure online travel platforms like Airbnb pay all applicable lodging taxes when they are collecting payment for the lodging stays. The legislative fix would treat online travel platforms the same way as other lodging companies collecting revenue for lodging stays including other online travel companies like Expedia and Priceline.
 
Advocating for Oregon’s Tourism Investment Plans
ORLA continues to fight for the appropriate use of lodging tax dollars at the local, county, and statewide levels as required by law. Since July 1, 2003, 70% of any new or increased portion of lodging taxes must fund tourism promotion or tourism related facilities. The remaining 30% can be spent on general fund expenses as designated by the taxing jurisdiction. ORLA believes in the full preservation of the 2003 law and will protect its integrity as one of our most crucial tools in growing and enhancing Oregon’s tourism export economy.
 
Fighting for Tip Pooling
Tip pooling has become a legal spider web, given the complicated state-by-state variations. In a move to further clarify the law, restaurant industry trade associations filed a lawsuit against the U.S. Department of Labor (DOL) asserting the DOL has overstepped its bounds in revising regulations on tip pooling. Although the DOL has announced they propose to rescind the regulations that bar tip sharing, we continue to work with the National Restaurant Association and other partners to take our case to the U.S. Supreme Court.
 
Ensuring Fairness for Short-Term Rentals
Illegal short-term rentals endanger customers’ lives, ignore existing laws and it’s unknown whether they are reporting and remitting the proper lodging taxes. The State of Oregon should pass legislation that requires short-term home rental properties to register with their local taxing authority before they are marketed through online exchange sites. Additionally, for jurisdictions that have a business-licensing program in place, operators should secure the proper licenses and report and remit their room tax collections.
 
Music Licensing
In partnership with Oregon Winegrowers, ORLA will be pursuing stronger protections for restaurant operations against predatory music licensing investigators. In order to make sure restaurants are paying appropriate fees for licensed music playing in their establishment, music licensing companies enlist the help of investigators who have been reported to harass and threaten restaurant operators. ORLA is interested in tightening up rules and regulations for how operators can be approached about their music licensing arrangements to assist in the amicable resolution of laws governing the commercial use of copyrighted music.
 
Advocating for Comprehensive Immigration Reform
Comprehensive immigration reform must include all aspects of immigration issues—border security, worker supply and employee verification—which means that Congress is the only political body which can actually solve the immigration problem. State and local governments only make a solution more complex by trying to pass their own laws. ORLA is opposed to random, individual pieces of immigration reform and supports Congress working together on a national level to enact comprehensive reform.
 
Defending Lottery Retailers and Commission Rates
ORLA is the only major trade association in the state that has defended lottery retailers since the introduction of video lottery in Oregon. ORLA defends commission rates and protects against extreme regulatory attacks, such as increased casino expansions off tribal reservations. ORLA is supportive of gaming as entertainment, adjunct to the hospitality industry.
 
Protecting Small Businesses from Local Jurisdictional Control
One of the biggest threats to independent businesses in Oregon is the desire by local governments to control private employer-employee relationships. By creating laws that mandate employee benefits within the boundaries of a city or county, businesses face a patchwork of regulations that differ from one location to another, and workplace fairness is compromised. ORLA believes that enacting a preemption that labor practices are set at the state level gives businesses stability and offers a better environment for economic growth.
 
Strengthening Oregon’s Roads and Bridges
ORLA believes in the importance of a comprehensive transportation plan that funds needed infrastructure projects throughout Oregon. The flow of people, goods, and services is crucial to the success of Oregon’s hospitality industry and the experience of Oregon’s visitors.
 
Stay up-to-date at OregonRLA.org/GA.

Update: Thanks to lodging operators and tourism partners who mobilized with ORLA to share their concerns, the Umatilla County Commissioners decided against pursuing a lodging tax increase. Your efforts made a difference!

Umatilla County is considering a new Transient Lodging Tax of 2% on all overnight lodging facilities. ORLA submitted a letter to the Board of Commissioners asking for a delay in considering the new tax until appropriate communications can take place with their partners operating these lodging facilities. We do not feel an adequate amount of time to fully vet the need for a new tax was given.

ORLA encourages lodging operators to provide comment on the County’s plan and attend one of the following meetings where this plan will be discussed:

Thursday, Dec. 7, 2018 @7:30 a.m.
Nookies, 125 N. First, Hermiston

Friday, Dec. 8, 2018 @ 10:30 a.m.
Umatilla County Courthouse, Room 114
216 SE 4th St., Pendleton

Industry members are encouraged to attend a meeting and/ or sharing your comments / concerns with County Commissioners on this proposal.

We’re Not Convinced Lodging Operators Want A County TLT
To date, there is no evidence that lodging operators are asking Umatilla County to assist them in growing their revenue and their bottom line by implementing this new tax. We question the need for the tax to be considered in the first place.

For questions, contact Greg Astley, Director of Government Affairs.

Over the course of the past few years, our professional staff at the Oregon Restaurant & Lodging Association has traveled around the state holding regional meetings with Oregon's small businesses operating within the hospitality industry. As a result of those experiences we know firsthand the degree to which our small businesses feel challenged by the United States Department of Labor's 2011 rule.

As costs rise within restaurant operations, Oregon's restaurants must in turn raise prices. The result of those realities is a growing disparity between Oregon's front-of-the-house workers and back-of-the-house workers. Many operators are paying back-of-the-house workers at rates of $15-17 an hour given the marketplace demand for those positions. The front-of-the-house is typically making Oregon's minimum wage plus tip income which can result in an hourly wage of $30-$50 an hour and sometimes more. We routinely receive reports that front-of-the-house workers can make as much as three times the wage as those working in the back-of-the-house.

In Oregon, the minimum wage will continue to rise every year on July 1 through the year 2022. What we're hearing from our industry is that something must be done to stop the regulatory forces that are driving wages and people further away from each other within the walls of our restaurants. If something is not done our wage gap between workers who are all working together to service the customer will continue to grow and result in cultural, workforce, and small business challenges that escalate and make Oregon a more difficult place to operate a small business.

We know the average small business restaurant in our great country makes 2-5% profit meaning for every $1 million in sales, the restaurant owner makes $20,000 - $50,000 in profit. Our industry operates in one of the slimmest profitability environments in the country. At the same time, restaurants in our country provide one of the best places to build skills and values in a professional setting. Many restaurant operators are proud to provide Americans with their first job or their second chance. They pave the way for career building opportunities and provide employees with the opportunity to build a strong work ethic, a keen attention to detail, and the ability to hone their interpersonal skills.

Rescinding the 2011 rule would be a decision to sustain the viability of Oregon's small business full service restaurants. We know already that if this were to happen, many operators would implement a modest tip pooling arrangement as the minimum wage continues to go up for Oregon's front of the house workers who aren't making minimum wage. As the minimum wage goes up for servers (even though they aren't making anywhere close to minimum wage) operators would have the ability to modestly increase the tip pool with back of the house workers to counteract the server wage increase. Those actions can create higher wages for Oregon's very crucial back of the house workers, keep Oregon's servers at significant wages, and allow the restaurant operator to continue pursuing their goal of 2-5% profit on overall sales.

There has been significant impacts on Oregon's restaurants as a result of the 2011 rule and we hope to have the opportunity to assist our small business operators in their efforts to build a culture that showcases the value of all their workers through the payment of more balanced wages.

For questions, contact Jason Brandt, President & CEO, or Greg Astley, Director of Government Affairs, at 503.682.4422.

• Read more about Tip Pooling Options
  
• Submit your comments with the DOL by February 5, 2018

The City of Portland’s challenge with the homeless crisis is not new, but it’s a growing issue demanding more attention from the City, especially in light of recent outcries from downtown businesses. The issue was a hot topic at ORLA’s Portland Lodging Alliance meeting this week, where several area lodging operators discussed recent talks with city leaders and next steps businesses can take. Hoteliers have seen an increase in antisocial, threatening and criminal behavior among homeless individuals outside (and in some cases inside) their hotels and are looking for real solutions from city leaders.
 
Earlier in November, ORLA President and CEO, Jason Brandt, and Government Affairs Director, Greg Astley, along with a few restaurant owners and hoteliers, met with Mayor Ted Wheeler and Commissioner Nick Fish to discuss the industry’s concerns and how the city plans to address homelessness. While the Mayor conveyed, they are taking steps including increasing community policing, he’s asking for help from the business community. Greater enforcement and new ordinances regulating homeless behavior on city streets need to be considered, and industry members are encouraged to keep pressing city leaders to find solutions.
 
At an invitation-only meeting on November 21, city leaders gave several business owners the opportunity to voice their concerns about the growing homeless problems in downtown Portland. Mayor Ted Wheeler, Portland Police Chief Danielle Outlaw and Multnomah County Sheriff Mike Reese participated in the town hall. In addition to more officers on the streets, some parts of downtown labeled "high pedestrian zones" may soon ban overnight camping, including on sidewalks and doorways.
 
The homeless issue is not isolated to downtown Portland, it’s everywhere, and lodging properties near the Portland Airport are also speaking up and taking action. ORLA is working with the PDX Airport Lodging Group in conjunction with Travel Portland’s Community Action Committee to address some of the issues such as car break-ins, vandalism, aggressive panhandling, and drug use. Lodging operators were provided forms to use in reporting incidents that include the potential loss of revenue and/or cost of the incident to their property. With the information gathered, ORLA will continue to push the City of Portland to prioritize and take action in those areas where businesses are being affected by these incidents.
 
If you’d like to get involved or have questions regarding the issue, contact ORLA’s Director of Government Affairs, Greg Astley at 971.224.1502 or email Astley@OregonRLA.org.

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Support Portland Police Bureau's Budget Request

Protecting Tourism Promotion and Economic Development

The government affairs team from ORLA was in Salem everyday during the 2017 Legislative Session, actively engaged in bills that could have and will affect our industry. Read about our legislative wins and savings for the hospitality industry.

Eroding 70% for Tourism Promotion 

• HB 2049 would have expanded the definition of “tourism promotion and marketing” to include items such as flower baskets, sidewalks and benches.
• Research has shown transient lodging tax dollars directed to active marketing and promotion of Oregon and local communities is the best return on investment of these dollars.
• $26 Million protected for local and regional tourism promotion​

Establishing Ocean Beach Fund

• HB 2506 would have redirected current lodging tax dollars from state parks on the Oregon Coast away from local marketing and promotion efforts into a dedicated Ocean Beach fund to be used for sand erosion control, search and rescue and beach cleanup efforts.
• Carving out individual accounts of money for specific, geographic or boutique project purposes defeats the results from coordinated marketing and promotion efforts and diminishes the return on investment of those dollars to the local economies.
• Over $600,000 per biennium protected for local and regional tourism promotion

 
Film & Video Tax Credit

• HB 2244A extended the greenlight tax credit for film and video companies working in the state of Oregon.
• This continuation helps Oregon attract film and video production companies who spend money at local restaurants and lodging properties while filming movies and TV shows here.
• $140 Million in direct spending

 
Excise Tax on Coffee

• HB 2875 would have imposed a .05 per pound excise tax on all coffee beans and ground coffee.
• Any person selling these products would have had to submit to the Department of Revenue, on or before the last business day of the month, on forms prescribed, a signed statement of the gross weight of coffee beans and ground coffee subject to the excise tax imposed under this section during the preceding calendar month, whether sold at wholesale or used in preparing specialty coffee beverages for sale at retail.
• $350 SAVINGS per establishment (on average)

 
Property Lien

• HB 2180 would have allowed an employee who has a claim against the employer under this subsection or the assignee of an employee who has filed a wage claim under this subsection a lien upon all property of the employer, real and personal, located in this state for the amount of the unpaid wages to which the employee is entitled.
• Employees would also have the ability to bring an action of a lien prior to presenting a wage claim to the Bureau of Labor and Industries.
• $125,000 SAVINGS per establishment

 
Unused Gift Cards

• SB 113 would have transferred any unused amount on gift cards to the Department of State Lands five years after the last transaction.
• $2500 SAVINGS per establishment

 
Smoking Porch Enclosures

• SB 235 re-established the “old rule” for the definition of a smoking porch enclosure.
• Establishments were in danger of having to remodel or redesign existing smoking porch enclosures to comply with the “new” interpretation of the rule
• $10,000 SAVINGS per establishment​​

View a summary of bills ORLA tracked in the 2017 session and learn what they mean for your business.