[June 11, 2021] - Bill Tracking, Return to Work Proposal, and Bids for a Better Industry!

Reopening Oregon - According to the latest information on the Oregon Health Authority website and today’s press conference with Governor Brown, we are at 67.2% of Oregonians having received their first vaccine. Approximately 90,000 more Oregonians need to get in line to trigger the full reopening of the economy and the estimate is that we should be on the brink of accomplishing that in about two weeks. I was hoping for earlier, but trends are showing dissipating demand. It's one more reason our work as an association to encourage vaccinations alongside our other business partners is so important. Make sure to utilize our webpage which features this work whenever you’re in a position to encourage others to be a part of our vaccination efforts: Advocacy / COVID-19 Resources & Information.
 
Online Auction to Support Oregon Hospitality - Mark your calendars as ORLA's PAC auction, Bids for a Better Industry, launches next week! We have amazing packages thanks to committed and generous members. Please join me in bidding online starting June 16 on packages you’re interested in and be sure to share the link to the online auction with friends, family and colleagues. 
 
Bill Tracking & Return to Work Proposal - The latest updates can be found on our website as we track bills of note for the industry in the final few weeks of Oregon’s 2021 Legislative Session. We have notable wins to date both in pushing some key bills forward (significant unemployment insurance tax relief for the industry will prove to be the biggest when passed) as well as fighting back against proposals that would have damaged the industry. Also, we have movement on the utilization of American Rescue Plan Act dollars to create a stronger return to work incentive. For a full overview of the latest movement on legislative bills, view ORLA's Legislative page.

 Latest ORLA Alert  - We continue to press the importance of separating out counties that are locked into lower risk from those that have risk levels that can move. Lane County joined Multnomah, Deschutes, Washington, Benton, Hood River, and Lincoln County in being “locked in” to the lower risk level until the state reaches the 70% goal to fully reopen the economy. In a day or so, the Governor announced Clackamas County will also reach this milestone given their vaccination progress. The full recap on county risk levels and where we stand was sent out as an ORLA Alert earlier this week and we will continue to do so until we fully reopen the economy.

[June 4, 2021] - Takeaways from Governor Brown's Press Conference /  Bill Tracking / Federal Budget Perspective
 
We had some really good news in the Governor’s Press Conference today with some definitive details that will make our lives in hospitality much better in a matter of weeks. And of course ORLA will continue working with partners to promote vaccine efforts to get to our 70% goal as fast as possible.
 
Governor Brown Takeaways - We need approximately 120,000 more 18 and older Oregonians to get their first shot and when that happens, we will reach our 70% goal and fully reopen the economy. Governor Brown said today that reaching 70% means the following:

• No more capacity limits
• No more face coverings in our establishments
• No more physical distancing

 
Modeling from the Governor’s office appears to show we will reach 70% by Monday, June 21 and it's possible it may be sooner. Please spread the word – this qualifies as great news for the industry.
 
Bill Tracking - The legislative bill tracking list has been updated as of today, June 4, with the latest progress on a number of fronts. Our top priority continues to be making sure unemployment insurance relief gets over the finish line (House Bill 3389). We of course also achieved a victory this week on allowing to-go cocktails permanently. Although it's not of interest to all it certainly helps a cross section of ORLA members realize new and hopefully growing revenue opportunities. 
 
Federal Budget Perspective - Our colleagues from the National Restaurant Association shared the following update on President Biden’s proposed budget which is non-binding. However, it provides an indication of where the Administration stands on various tax issues and insight into where the President will look to for offsetting legislative priorities.
 
Higher Rates and a Broader Base: Details Released on Biden Tax Proposals
The Biden Administration released a fiscal year 2022 budget proposal on May 28 that adjusts tax rates on businesses and high-income individuals to finance both traditional physical infrastructure projects and “human” infrastructure programs. These recommendations, outlined in the American Jobs Plan and American Families Plan, are shared with Congress as they consider legislation in coming months.
 
What Is Included in the Biden Administration Recommendations:

• Increases the corporate tax rate to 28% from 21%, effective in 2022.
• Establishes a minimum corporate tax of 15% for large businesses.
• Increases the top individual income tax rate from 37%* to 39.6%* and tax income from long-term capital gains and carried interest at ordinary rates for upper income households.
• *This does not include the existing 3.8% net investment income (NII) tax.
• Eliminates the “step-up” in basis for inherited assets in excess of $1 million per-person.
• Revises the global Minimum Tax regime, disallows deductions attributable to exempt income, and limits corporate inversions.

 
What Isn’t Included in the Biden Administration Recommendations:

• Changes to Section 199A deduction, which provides many small “pass-through” businesses with a 20% rate cut on business income reported on individual tax returns.
• Other than the step-up basis elimination, no additional increase to the estate tax.
• No extension of the individual tax rates established in 2017, many of which expire in 2025.

 
Process in Congress:
The budget request is non-binding, as only Congress can author tax legislation. Legislators are expected to address these policies in two phases: first, the infrastructure / American Jobs Plan, and second the American Families Plan. Both House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Charles Schumer (D-NY) want to move legislation before the August recess.

[May 28, 2021] - The Latest Communications from Your Association

Alerts & Advocacy Updates - ORLA continues to send two email campaigns on a regular basis. The Alert email currently sends to the entire industry to share important/urgent updates and also help build goodwill in hopes of enticing more active membership relationships. The Advocacy Update email sends only to ORLA members with a frequency of almost every week. Our last Alert sent this past Tuesday evening focused in on clearer communication where we separate out the Lower Risk counties who have reached their county vaccination goals (6 counties who are locked into Lower Risk) from the other 12 counties in Lower Risk that still have the threat of moving to other risk categories.

Key updates in the member-only Advocacy Update email sent earlier this week included:

• Bill tracking updates on UI tax relief for hospitality industry employers, commercial mortgage moratorium relief, pay equity, and permanent to-go cocktail legislation.
• Work search requirements coming back at the Oregon Employment Department and what that means for employers.
• Employee Retention Tax Credit (ERTC) comprehensive article to assist our members in getting more cash back in their pocket.
• Federal Updates on RRF and HotelsAct efforts from our national partners.
• Answers to important questions regarding face coverings / vaccination status from Oregon OSHA Director Michael Wood.
• Efforts to push back hard on the Oregon Legislature for considering an amendment to tax Payroll Protection Program revenue 

These are just two of six email campaigns we send to industry members on a regular basis, keeping you informed and engaged on need-to-know industry intelligence and activities. If you are not already receiving these emails, please click here to Subscribe.

Return to Work Survey Results - We had a strong response to ORLA’s latest survey on Return to Work Incentives. Here’s a new way to look at the final results so you can keep a pulse on what hospitality industry employers are up to in an attempt to get Oregonians to accept job offers: https://www.surveymonkey.com/stories/SM-F7FXBJ6C/
 
We hope you continue to see ORLA as a crucial business partner for you. As a reminder, we exist to have your back and we will keep up the fight!  Not an ORLA member yet? Please consider a membership with the leading business association representing Oregon restaurant and lodging operations and join now.

​​[Click the "Read More" link for archived blog updates]

House Vote on Unemployment Insurance Tax Relief Triggers Movement to State Senate

FOR IMMEDIATE RELEASE: April 16, 2021

Contacts:
Greg Astley, Director of Government Affairs, ORLA 
503.851.1330 | astley@OregonRLA.org

Jason Brandt, President & CEO, ORLA
503.302.5060 | jbrandt@oregonrla.org

Wilsonville, OR– The Oregon House of Representatives voted overwhelmingly to move forward with bipartisan legislation which would provide millions in unemployment insurance tax relief for some of Oregon’s hardest hit industries.

House Bill 3389 passed the Oregon House and will now move to the Senate for ongoing deliberation. The bill accomplishes a number of priorities for Oregon’s hospitality industry with the most important component being the removal of 2020 and 2021 employment data from the formula used to determine an employer’s applicable tax rate, starting in 2022.

“We would like thank the leaders who have signed on to support this bill as sponsors and their ongoing work to shepherd it through the legislative process,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “The deferral and forgiveness components could be stronger for this year given the impact of government restrictions on industry employment options. Having said that, the big win will prove to be solving the tax hike problem for years 2022 through 2024.”

Unemployment insurance taxes are paid entirely by Oregon employers to fund Oregon’s Unemployment Insurance Trust Fund which remains the healthiest in the nation. One third of unemployment insurance taxes for 2021 can be deferred for employers with an increased tax rate of half a percent or more. If the employer’s tax rate increased more than 1 percent to 1.5 percent, 50 percent of the deferred tax would be forgiven. For tax rates which increased more than 1.5 percent to 2 percent, 75 percent of the deferred tax would be forgiven. And for employers who had a tax rate increase of more than 2 percent, the full deferred amount would be forgiven.

“We know this legislation if passed has the potential to save hospitality employers tens of millions of dollars this year alone,” said Greg Astley, Director of Government Affairs for the Oregon Restaurant & Lodging Association. “That amount pales in comparison to the real impact of the relief in future years. If we can erase 2020 and 2021 from upcoming calculations as proposed in the legislation, it will have a direct impact on our industry recovery efforts.”

The bipartisan Chief Sponsors of the bill in the house include Representatives Paul Holvey, Daniel Bonham, and John Lively. The bipartisan Chief Sponsors in the State Senate include Senators Bill Hansell and Chuck Riley.

For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org. 

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. 

Join the National Restaurant Association and the Oregon Restaurant & Lodging Association for a virtual conference on April 20, 2021 

Every spring, the restaurant industry comes together in Washington D.C., to meet with Congress on issues impacting our industry.

The 2021 Public Affairs Conference may look different this year, but it provides the National Restaurant Association and state restaurant associations like ORLA with an opportunity to expand our reach and impact with more attendees and more meetings on Capitol Hill. 

As an industry leader, your attendance is critical to the success of the Conference. With new party leadership in D.C. and our industry suffering from this unprecedented pandemic, our collective voices are needed now more than ever. We have to educate our lawmakers—new and established—on the impact of COVID-19 to our industry and what steps Congress should (or shouldn’t) take to help us survive and then thrive once the pandemic has passed.

Click the Register button below and use the code PAFCMEMBER to receive your member discount. The cost for members is $50 and $75 for non-members.

You will hear from political analysts, industry leaders, and lawmakers on key issues impacting the restaurant industry. If you’ve never attended the conference in the past, this virtual Public Affairs Conference is a great way to get involved for the first time.

If you have any questions, contact ORLA's Director of Government Affairs, Greg Astley.

Oregon’s Legislature will meet on Monday, December 21 for a one-day Special Session to discuss four specific issues including To-Go Cocktails and Commission Caps on Third Party Deliveries. Read the draft of Legislative Concept (LC 10).  
 
We realize this legislation won’t fix everything so we are still working with the Governor’s office, Oregon Health Authority and Legislators to find ways to re-open dining rooms sooner and safely. You can help by contacting the Governor and your Legislators (find your legislator here) to let them know how little time you have left before you have to close your doors because of the restrictions on indoor dining. 
 
Public hearings have now been posted for Thursday evening (6:00-9:00pm) and Saturday morning (10:00am-1:00pm). You may provide written or oral testimony at these meetings. For more information on these public hearings and to sign up to testify, please visit the following websites:

• Public Hearing: Thursday, December 17, 6:00pm-9:00pm
• Public Hearing: Saturday, December 19, 10:00am-1:00pm

Written Testimony: 

• E-mail: J3SS.exhibits@oregonlegislature.gov
• Mail: Joint Interim Committee on the Third Special Session, 900 Court Street NE, Room 453, Salem, OR 97301
• Testimony is posted online to the Oregon Legislative Information System (OLIS) as part of the legislative record and made publicly available here. 

Oral Testimony (Live Remotely):

• Registration is required to testify by phone or video link. To sign up, either use the online form here OR call 833-588-4500 for assistance. Registration closes at 1 PM on Thursday, December 17, 2020. 
• Public Access Kiosk: For those who do not register to testify or do not have access to testify by phone or video link, a public access kiosk is located outside of the State Capitol Building.
• Please note, testimony is generally limited to 3 minutes so if you plan to testify “in person,” please prepare your remarks in advance to make sure you are heard completely.

Important note about testimony: Neither registration nor use of the public access kiosk is a guarantee that you will be able to testify during the meeting. The chair may determine that public testimony must be limited. For this reason, written testimony is encouraged even if you plan to speak.
 
The Presiding Officers are extending the period for public comment. The public record is open when a meeting is posted until 24-hours after the committee is scheduled to meet. For example, this means written testimony can be submitted now until 6:00pm on Friday for the public hearing on Thursday.

Our Industry Needs Your Voice at the Table! 
We need your voice at the Capitol to help pass this legislation. We need you to share your story of how the shutdowns, freezes and restrictions have impacted you and your employees and why this legislation would help you survive! If you are not already signed up for ORLA’s Text Alerts, please take a minute to text “ORLA” to 52886 today and sign up for important notices regarding key legislation and how you can help.

Thank you in advance for taking action.

Creation of a $75 Million Hospitality Relief Fund is Needed for Industry to Survive

FOR IMMEDIATE RELEASE: November 17, 2020

Contact:
Jason Brandt, President & CEO, ORLA
503.302.5060 | JBrandt@OregonRLA.org

Wilsonville, OR– Another shutdown of Oregon’s restaurants, bars and foodservice establishments is crippling an already broken and damaged industry.  While other industries in Oregon have experienced revenue losses on average of five percent from last year, the hospitality industry in Oregon has experienced revenue losses on average of at least thirty percent.

Because of this massive economic disparity, the Oregon Restaurant & Lodging Association (ORLA), the leading business association for the foodservice and lodging industry in Oregon, has sent a letter to the Legislative Joint Emergency Board asking for the immediate creation of a $75 million Hospitality Relief Fund to help operators and their employees survive another shutdown.

“There is no federal relief package waiting to be voted on and distributed from Congress or the White House,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “There are no stimulus checks being printed to help Oregon families pay their bills. There is no weekly check for $600 available for those servers, cooks, hosts and hostesses about to lose their jobs or have their hours cut again because restaurants can’t survive on takeout and delivery if they can do it at all.”

Restaurants and bars are still paying rent and there has been no extension of the commercial rent moratorium even though revenue has been cut by as much as 65% for some operators because of the shutdowns, “pause” and now a “freeze.”

Restaurants and bars are still paying OLCC license fees even though they are not able to serve hard alcohol or offer cocktails to go for customers doing pickup or delivery. They are still paying health inspection fees based on the number of seats they have in their establishment even though they cannot seat anyone in their establishment. There are payroll taxes, corporate activity taxes, property taxes on property they cannot fully use and commercial personal property taxes on property restaurants own.

In addition to the immediate creation of the $75 million Hospitality Relief Fund, ORLA is recommending several other solutions to the Legislature to help the hospitality industry survive.  Those solutions include:

• Passage of an already drafted Legislative Concept (LC 833) allowing for “To-Go Cocktails” from bars and restaurants
• Waiving or significantly discounting fees including but not limited to business licenses, corporate filing, health inspection fees and OLCC on-premises license fees to make up for the fact the businesses are not able to fully operate
• Extension of the Commercial Eviction Moratorium

“We were already hearing from members they were concerned about what another shutdown would do to their chances of staying open,” said Brandt.  “Without significant help from the state, the hospitality industry in Oregon–many of your favorite restaurants, hotels, bars and other places– will have to permanently close their doors, putting tens of thousands of people out of work.”

“Hospitality businesses need immediate help.  We cannot wait for February and hope a relief package will materialize and be approved at the federal level,” said Brandt. “This is an emergency and we need the Joint Emergency Board to take action now to save our industry and the tens of thousands of Oregonians who rely on it to put food on the table, pay their rent or mortgage and provide for their families’ needs.”

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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which is comprised of approximately 10,000 foodservice locations and 2,000 lodging establishments with a workforce prior to COVID of 183,191. 

New Coalition Of Public And Private Sector Leaders Call On Congress To Act On COVID Relief Before Election 

Washington, D.C. (September 30, 2020) – COVID RELIEF NOW, a new coalition of nearly 200 major public and private sector groups across the U.S., today called for “No Recess without Relief” imploring Congress to not leave town for the 2020 elections without passing additional COVID economic relief – stating millions of jobs and survival of small businesses as well as vital government services are on the line.  
 
The coalition stated that if Congress fails to act, millions of employees will be furloughed or terminated; millions of unemployed Americans will lose their unemployment insurance pandemic benefits; hundreds of thousands of companies will be at risk of closing their doors forever; and the vast majority of state and local governments will have to curtail critical services in order to balance budgets due to a decline in tax revenue. 

Read the letter signed by coalition members, including the Oregon Restaurant & Lodging Association, that was sent to Congress today:

• COVID RELIEF NOW COALITION LETTER TO CONGRESS

This week is pivotal for COVID relief legislation and we must do everything we can to make sure our voice is heard. We need you to add your voice to ours. Write, call, and tweet your elected officials and tell them that the hotel industry’s needs must be included in any final bill.

Take action and share this message with your colleagues!  

ORLA sent a letter this morning to Representative Nancy Nathanson, Chair, Members of the House Interim Committee on Revenue, and the Senate Finance Committee urging them to oppose Legislative Concept 2. Please see the following call to action and take action today, WE NEED YOUR HELP!

Stop the Tax Sneak Attack!
Just when we thought things couldn’t get worse, the Oregon Legislature is now set to pass an ill-conceived proposal that would effectively impose $225 million in taxes on Oregon businesses, including restaurants and lodging, struggling to recover from the staggering impacts of the COVID shut downs.

But instead of admitting this is a new tax burden on struggling businesses, they will say this is simply a technical change, impacting only a few wealthy Oregonians. That’s simply not true. Many Oregon businesses will lose much-needed cash if this tax increase moves forward. 

More information is now available on the “Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act” released earlier this week by Senate Republicans. As a reminder, the House introduced the HEROES Act proposal in May, which passed along party lines. Discussions are expected to now begin in earnest as Congress faces the July 31 deadline for enhanced pandemic unemployment insurance benefits.

Part of the Republican proposal would reduce these benefits from $600 per week to $200 per week on top of state administered aid until the end of September at which time the maximum benefit will be 70% of the recipient current wages -- but this will be a starting point for the negotiations.    
 
Read the National Restaurant Association’s summary of the proposal and the American Hotel and Lodging Association’s analysis of the HEALS Act.
 
Many of the hospitality industry’s priorities are included in the HEALS Act, including: 

1. PPP Recapitalization: Eligible small businesses with 300 employees or less and that show significant year over year revenue decline (currently 50%) will be eligible for a second PPP Loan. The NAICS Code 72 exemption language for Hospitality and Food Service, originally included in the CARES Act, is included in the Small Business proposal.  Additionally, there is increased funding for the SBA 7(a) program, which is targeted towards “recovery sector businesses.” 
2. Liability Protections: The “SAFE TO WORK Act” introduced by Senator John Cornyn (R-TX) provides liability protections for employers, schools and health care providers. This Act also provides limited liability protection for businesses until October 1, 2024. 
3. Targeted Tax Provisions: The expansion of the Employee Retention Credit (ERC) and Work Opportunity Tax Credit (WOTC), and a per employee credit for enhanced cleaning and acquisition of PPE in the Finance proposal. 
4. Business Meal & Entertainment Deduction: Supporting Americans Restaurant Workers Act: Senator Tim Scott (R-SC) introduced a separate bill which would fully reinstate the business meal and entertainment deduction. 

If you haven't yet, please take action on the National Restaurant Association's Blueprint for Restaurant Revival and/or the American Hotel and Lodging Association's Hotel Priorities Day of Action, thank you!  

Restaurants and Bars Among Hardest Hit by COVID-19 Pandemic
​
[Wilsonville, OR] – The Oregon Restaurant & Lodging Association (ORLA), in partnership with the National Restaurant Association, recently completed a statistically significant survey around To-Go Cocktails, drinks made with distilled spirits for takeout, pickup or delivery to go along with meals purchased by guests.

The survey, conducted July 3-6th, shows 72% or nearly three in four Oregonians, said they would favor a proposal allowing customers to purchase cocktails or mixed drinks (made with distilled spirits) with their takeout and delivery food orders from restaurants. This is in addition to beer and wine, which is currently allowed.

Support is highest among those between the ages of 24-39 at 83%, with respondents between the ages of 58-74 showing the least support at 66%. Twenty-eight percent of adults said they strongly favor the proposal.  Fifty-nine percent of Oregon adults said they purchased takeout or delivery food from a restaurant for dinner during the week before they were surveyed.

ORLA President and CEO Jason Brandt said, “This is so encouraging for our members who have struggled just to stay open and keep people employed.”

Brandt continued, “This has been an incredibly difficult time when restaurants and bars have struggled to deal with the challenges of being shut down, having to pivot to offer only takeout, pickup or delivery and then trying to invite guests back into dining rooms and make them feel safe and comfortable. Knowing almost three out of four Oregonians support the option to purchase cocktails or mixed drinks to go with their meals means some restaurants and bars who might have previously had to close down actually have a chance to make it now.”

Allowing customers to purchase cocktails or mixed drinks (made with distilled spirits) for pickup, takeout or delivery requires a statutory change, meaning the Oregon Legislature would need to make the change to state law. Thirty other states currently offer To-Go Cocktails including Washington and California.

“From a public safety perspective, if more businesses are able to offer the service of delivery of alcohol to their customers, the need for those customers to physically go into stores and businesses is reduced, thus reducing the risk of community spread of COVID-19,” said Brandt.

Recognizing the need to help those who may have difficulty with alcohol addiction, ORLA’s website outlines a number of resources available to individuals, as well as training information to aid in prevention. More information on these resources and trainings can be found at OregonRLA.org/crisis-services-and-training.

For more information please contact Greg Astley, ORLA Director of Government Affairs at 503.851.1330.

ORLA is hosting another series of virtual town halls and all hospitality industry members and partners are invited to participate. 
 
The purpose of these virtual meetings is to provide a summary of the latest industry intelligence from the Governor’s Office, as well as from state and local leaders as we continue operations during Phase 2. We will review Public Health Guidelines, best practices, ORLA resources, and engage local operators about what strategies have been working since reopening.
 
We want to continue to keep businesses connected and feeling supported as we move through these challenging times. If you are interested in an overview of the latest Government Affairs updates and participating in a discussion about industry resources and guidance, this virtual meeting is for you.

To RSVP or if you have any questions, please contact your Membership Representative below and include any questions or comments you would like considered as part of our conversations.

Upcoming Virtual Town Hall Meetings:

Thursday, July 16 - 9:30-10:30 am
Polk, Marion, Benton, Linn Counties
RSVP to Greg Staneruck​

Monday, July 20 - 10:00-11:00 am
Washington / Columbia / Yamhill Counties
RSVP to Greg Staneruck​

Tuesday, July 21 - 3:00-4:00 pm
Coos, Curry, Douglas, Deschutes, Jackson, Jefferson, Josephine, Klamath, and Lane Counties
RSVP to Terry Hopkins

Wednesday, July 29 - 2:00-3:00 pm
Clatsop, Tillamook, and Lincoln Counties
RSVP to Greg Staneruck

Update: “Cap and trade” has been a contentious issue for the last several sessions, with Republican lawmakers staging walkouts over the issue multiple times. With no quorum to vote on legislation, Oregon lawmakers adjourned in March 2020 for the short session. We will update you on future movement on the “cap and trade” issue.

House Bill (HB) 2020, the “Cap and Trade” bill, would raise prices on users of natural gas which include restaurants, lodging properties and manufacturers around the state. This legislation could increase the cost of living for Oregonians by $50 to $125 a month, give appointed officials the authority to increase taxes without a vote of the people or Legislature and drive thousands of jobs away from the state.

Oregon is one of the lowest carbon emitting states in the nation, and we’re getting lower. We just enacted ground-breaking new climate policies on transportation and electricity generation, we should give these new laws a chance to work.

Without an exemption for natural gas, hotels and restaurants will pay significantly more money. Along with increases in minimum wage, paid sick leave and possibly paid family leave, the hospitality industry is being crushed under over-burdensome regulations and there is no sign it’s going to end anytime soon.

Please consider emailing members of the Joint Committee on Carbon Reduction and let them know you oppose HB 2020 which will hurt your business and increase prices to customers. Urge them to Vote “No.”

• Senator Michael Dembrow, Co-Chair
• Representative Karin Power, Co-Chair
• Senator Cliff Bentz, Co-Vice Chair
• Representative David Brock Smith, Co-Vice Chair
• Senator Lee Beyer, Member
• Senator Fred Girod, Member
• Senator Jeff Golden, Member
• Senator Alan Olsen, Member
• Senator Kathleen Taylor, Member
• Representative Daniel Bonham, Member
• Representative Shelly Boshart Davis, Member 
• Representative Ken Helm, Member
• Representative John Lively, Member
• Representative Pam Marsh, Member

To submit testimony to Joint Committee on Carbon Reduction:

• jccr.exhibits@oregonlegislature.gov

ALERT 2.12.19 - The Joint Committee on Carbon Reduction announced four public hearing dates for House Bill 2020 - tell your lawmakers that we can’t afford cap and trade.

ORLA encourages restaurants and hotels to testify at the hearings about how this would impact their operations. More information about the proposal as well as talking points are available upon request. If you are interested in providing testimony, contact Greg Astley, ORLA Director of Government Affairs, at 503.851.1330.

The joint committee will host public hearings where Oregonians will be able to voice their opinions and ask questions about the bill. Additionally, there will be a public hearing on February 25 where the Salem-based committee will accept live, remote testimony from around the state. 

Reasons to Oppose House Bill 2020: Cap and Trade:

• Restaurant owners would pay more for food products—especially homegrown Oregon products, natural gas and propane.
• NW Natural gas estimates that the average small commercial price would go up as much as 60% if cap and trade passes. Download the NW Natural flyer on the Cap & Trade program

The five dates and locations are listed below: 

• Springfield: Friday, February 22 – Springfield City Hall, Council Chamber (12-3 pm) 
• Medford: Saturday, February 23 – Central Medford High School Auditorium 815 South Oakdale Avenue Medford, OR (9 am-12 pm) 
• Remote: Monday, February 25 – Remote testimony (live video feed from various rural locations), Oregon State Capitol (TBD) 
• The Dalles: Friday, March 1 – The Dalles Civic Auditorium, Community Room (12-3 pm) 
• Bend: Saturday, March 2 – Central Oregon Community College, Cascade Hall, Room 246-248 (9 am-12 pm) 

These feedback opportunities are in addition to two public hearings on February 15 and 18 in Salem before the committee.

​
The Law Regarding Service Animals and Public

There was a story in the news recently about a dog chasing a cat. Why was that newsworthy? Because it was a service dog attending a showing of Andrew Lloyd Webber’s musical “Cats” with its owner, and the cat in question was one of the shows characters (which, if you’re not familiar with the show, was a person dressed as a cat, not an actual cat). Hilarity probably ensued, to the embarrassment of the dog’s owner.   

That story reminded me of an issue that sometimes vexes restaurateurs and other business owners – how to deal with customers who make questionable claims that an animal is a service animal, and insist on bringing it onto the premises. This article summarizes the legal rights and responsibilities of customers and business owners in those situations. Businesses are, of course, free to be more accommodating than the law requires.

The Americans with Disabilities Act (ADA) and Oregon’s equivalent law requires “places of public accommodation” (including hotels, inns, restaurants, bars, and other establishments serving food or drink) to allow persons with disabilities to bring “service animals” onto the premises. Contrary to popular belief, though, every animal does not qualify as a service animal just because the customer says so.

First, the ADA currently limits the types of animals that can qualify as service animals to dogs and miniature horses. Oregon’s law is also limited to those two types of animals unless and until administrative rules are enacted that expand the definition to include other animals. Other states’ laws may vary, but, in Oregon, those are the only two animals that qualify as service animals.

Second, the animal needs to be individually trained to do work or perform tasks for the individual with a disability. This includes physical, sensory, psychiatric, intellectual, or other mental disabilities. The work or tasks performed by the service animal must be directly related to the individual's disability.

Examples of specific tasks the animal can be trained to perform include, among other things:

• pulling a wheelchair
• alerting a person to sights or sounds
• assisting with balance or navigation
• assisting a person with a seizure
• retrieving dropped items
• pressing buttons
• reminding a person to take medication and
• helping persons with psychiatric and neurological disabilities by preventing or interrupting impulsive or destructive behaviors.

Providing general emotional support, well-being, comfort, or companionship does not qualify. This means that emotional support animals, comfort animals, and therapy dogs are not considered “service animals” under the ADA unless the animal is also trained to perform some other specific task related to the individual’s disability.

The law does not require a license, jacket, tag, or other means to identify an animal as a service animal. Nor does it require medical verification or a prescription.

When confronted with a situation where an individual wants to bring a claimed service animal onto the premises, the business can only ask the following two questions of the individual:

1. Is the animal required because of a disability? This is a yes or no question. The individual cannot be asked to specify their disability or provide medical verification.
2. What work or task has the animal been trained to perform? The individual cannot be asked to have the animal demonstrate the work or task, nor can they be required to provide documentation or proof that the animal has been certified, trained, or licensed as a service animal. These questions should not be asked if the answers are obvious from the nature of the disability or the nature of the task or work being performed. For example, the questions may not be asked if the animal is observed guiding an individual who is blind or has low vision, pulling a person’s wheelchair, or providing assistance with stability or balance to an individual with an observable mobility disability.

The business needs to take the individual at their word, and allow the service animal on the premises, if the individual answers “yes” to the first question and states a specific task or type of work the animal has been trained to perform.   

The individual cannot be charged a fee to bring a service animal onto the premises; even a pet fee charged to other customers, because service animals are not “pets.”

If the service or assistance animal causes damage, then the owner can be charged for the damage so long as the business normally charges other customers for the damage they (or their pets) cause.

Unruly and disruptive animals need not be accommodated. The owner is responsible for supervising and controlling the service animal. The animal must also be housebroken.

If the animal behaves in an unacceptable or threatening way and the handler does not control the animal, then the business can ask that the animal be removed from the premises. For example, a service dog that repeatedly barks or growls at other customers, destroys property, climbs on the furniture unnecessarily, makes a mess on the carpet, or chases an employee (even one dressed like a cat), could be excluded from the premises if the individual cannot or will not control the dog.

The business can also require that the service animal be kept on a leash, harness, or other tether unless the individual is unable to hold a tether because of a disability or its use would interfere with the animal’s safe and effective performance of work or tasks. Even then, the service animal must still be kept under control by some other means, such as voice commands.

The owner is responsible for the care and feeding of the service animal. The business does not need to provide food or water for the animal, or clean up after it. That is the responsibility of the owner.

If a service animal is excluded, the business must still give the individual the opportunity to obtain goods, services, and accommodations without having the service animal on the premises. | Shane P. Swilley, Partner, Cosgrave Vergeer Kester LLP (originally posted 1/2/2018; updated 1/2/2020)

RESOURCES
Access additional compliance information and resources for the hospitality industry, including ADA regulations and downloadable posters at OregonRLA.org/Compliance. 
​
• Fact Sheet #9: Pet Dogs in Outdoor Seating Areas in Oregon
• Oregon/ADA “Sorry, pets are not allowed” Poster
• U.S. Department of Justice, ADA Requirements for Service Animals
• Disability Rights Oregon, Service Laws in Oregon

At their most recent meeting, the Oregon Restaurant & Lodging Association (ORLA) Board of Directors voted unanimously (with 1 abstention) to support a legislative bill which will originate from Governor Brown’s office in support of a permanent 1.8% statewide lodging tax rate during the 2020 Oregon Legislative Session. Revenue raised by the statewide lodging tax is invested in Travel Oregon’s efforts to strengthen the economic impact of our state’s tourism industry. Oregon’s statewide lodging tax is currently collected at a rate of 1.8% with a reduction in the rate scheduled to take effect as of July 1, 2020 to a permanent rate of 1.5%.

“We appreciate Governor Brown’s proactive outreach to meet with ORLA and some of our key lodging stakeholders in person to discuss the merits of keeping the statewide lodging tax rate at 1.8% permanently,” said Jason Brandt, President & CEO of ORLA. “Our goals for lodging tax rate structures in Oregon are two-fold – protecting all statewide lodging tax resources to create return on investment for the industry through the efforts of Travel Oregon and protecting local lodging tax reforms passed in the 2003 Legislative Session.”

Oregon continues to experience healthy growth in tourism spending logging our ninth consecutive year of industry growth in 2018. Compared to 2017, visitor spending was up 4.2% reaching a record $12.3 billion. Industry employment was also up year over year by 2.9% to approximately 115,400. Year over year, hotel room revenue increased by 4.4% as well.

“We have seen firsthand what strategic investments in tourism promotion can do when industry tax dollars are put to their most effective use,” said Brandt. “With many other competing priorities in the Capitol, it is essential the association protects the appropriate use of these dollars at both the local and state levels. The economic impacts we are seeing are significant not just for our industry but for our public sector partners as well.”

The U.S. Travel Association tracks statewide economic impact throughout the country and assists states in quantifying the value of year over year tourism growth. The most recently available data notates Oregon’s tourism growth at 5.3% when comparing 2016 to 2017, further substantiating the value of healthy tourism growth for Oregon’s public sector. From 2016 to 2017, Oregon experienced visitor spending growth of $652 million. That increase in spending and associated payroll income tax increases equates to as many as 410 firefighter positions, 380 police officer positions, or 380 teacher positions.

ORLA continues to focus on the protection of local lodging tax dollars for tourism promotion and tourism related facilities in addition to support given to Governor Brown’s upcoming legislative bill for the statewide resource. Oregon’s local lodging tax structure can be complicated with over 110 different city and county jurisdictions collecting a transient lodging tax outside of the 1.8% statewide tax. Important guidelines have been in place for the past 16 years for how local lodging tax dollars can be spent. To clarify those parameters, ORLA recently produced a new instructional video to assist all stakeholders and the general public in better understanding the rules which govern local lodging tax resources.

The new video specific to local lodging taxes (not to be confused with Oregon’s 1.8% statewide lodging tax) can be viewed here:

• Oregon Lodging Tax Defined (video)

For more information about the Oregon Restaurant & Lodging Association’s policies on transient lodging taxes, please reach out to Greg Astley, ORLA’s Director of Government Affairs, at astley@oregonrla.org via email.

On June 30, the Oregon Legislature officially came to a close. The 2019 session was marked by hyper-partisanship, two walkouts by Senate Republicans and dozens of new laws affecting the hospitality industry. Several key bills will affect how restaurants and lodging properties conduct business in the near future. Watch for ORLA's full recap of the session coming soon to the Advocacy page.

Here are a few quick updates:

HB 2005 – Paid Family and Medical Leave

• Hard cap of 12 weeks paid leave + 4 weeks unpaid (if OFLA eligible) with 2 additional weeks for complicated medical pregnancy 
• Must be employed for 90-days before job protections kick in 
• 1% Premium split 60% worker and 40% employer 
• Employers with less than 25 employees don’t pay the “employer premium” (40% of 1% of payroll)
• Statewide preemption on all paid family and medical leave related issues.

Effective date is September 28, 2019 with rule making being completed by September 1, 2021 and contributions beginning January 1, 2022.  Employees may begin using the benefit January 1, 2023.

SB 90 – Plastic Straws on request
Plastic straws in restaurants are now only available “on request” unless a customer is using the drive through and then employees may ask the customer if they would like a straw. Effective as of June 13, 2019. 

HB 2509 – Plastic Bag Ban
Single use disposable plastic bags are banned from restaurants and grocery stores.  Retailers may charge for paper bags. Effective date is January 1, 2020. Read HB 2509 Enrolled.

HB 3137 – Collection of local lodging taxes by Oregon Department of Revenue
Provides that transient lodging tax becomes due when occupancy of transient lodging with respect to which tax is imposed ends. This bill will help eliminate the issue of properties collecting and remitting the lodging tax to the state and then if a customer cancels, having to go back and recover the lodging tax paid in order to refund the customer the tax. Effective date January 1, 2020.

SB 248 – Increase in certain fees charged by OLCC
Fees for OLCC licenses will double effective July 1, 2019. Negotiated separately from this bill is the option to renew an OLCC alcohol license every two years instead of annually. 

Business Association Letter to the Revenue Committees

​The Oregon Restaurant & Lodging Association is one of 22 business associations who signed the following letter submitted to the revenue committees on March 21, 2019.

As representatives of Oregon’s leading private-sector employers, we recognize that the Legislature intends to pass significant new taxes this year, most of which will fall on Oregon’s businesses, small and large.

As we consider tax proposals, our organizations will be guided by the following principles:

1. Gross receipt taxes are bad for consumers. The pyramiding characteristics of a GRT distort the true tax rate, unfairly impacting some products and industries more than others. With a GRT, many products can be taxed multiple times before they reach the final consumer, resulting in higher prices that will be borne by allOregonians on such critical items as food.
2. Short-term and long-term stable funding for schools is critical, but cost control must be part of the plan. We support targeted investments to improve education outcomes, but new revenue is only part of the equation. Tax increases must be accompanied by cost control, starting with PERS, which has been draining money away from classrooms for years. Schools will not be helped unless the ever-increasing PERS burden is addressed. Before raising taxes on any Oregonians, the Legislature must act to control costs.
3. Tax reform requires a comprehensive review for business and employees. We will participate in conversations about tax reform that take a broad view of Oregon’s tax system rather than focusing singularly on one new tax concept. And we ask for recognition that any major tax reform will require a years-long transition, with thoughtful planning and execution for all parties.
4. New taxes should be fairly assessed. We will consider tax options that are broad based, recognize the needs of low-margin businesses and maintain a level playing field when it comes to competitive relationships.
5. Reforms should have a positive effect on Oregon’s economy. We will insist that the impact to Oregon’s economy, and particularly the ability of private-sector businesses to grow and retain jobs, be considered carefully, not only in terms of a new tax proposal, but also in light of the cumulative costs of all of the legislation expected to be passed in 2019. As the state economists warn of an economic slowdown in 2020, the potentially negative impact of major tax increases must be weighed.
6. We will oppose a gross receipts tax. As representatives of the business community, we are making a good-faith effort to understand the tax proposals on the table during this legislative session, so that we can participate in conversations effectively and ensure the impact to Oregon’s employers are understood. We request that the Legislature keep our principles in mind as they develop a revenue package and that they include us, as representatives of the private-sector employer community, in those discussions.

The Oregon Legislature is considering HB 3023 which will create statewide standards for rideshare companies, drivers, and vehicles in Oregon. ORLA supports this bill as it sets standards for driver background checks, vehicle safety, and insurance - important factors in providing affordable and safe transportation options.

• Read ORLA's letter to the House Committee on Business and Labor and House Leadership.
  
  

This is just one of hundreds of bills ORLA is engaged and/or monitoring. You can track our progress on priority bills throughout the legislative session on ORLA's website at OregonRLA.org/billtracking.

​Protecting Our Industry

• Protecting Dedicated Local Lodging Tax Funds for Tourism Promotion and Facilities
  Since lodging tax reforms in 2003, Oregon has seen the power of tourism and its positive economic impact for the people of our state. Tourism continues to produce results for us as an export economy. According to a report by Longwoods International, every dollar we invest outside of Oregon in tourism promotion results in $237 in visitor spending and $11 in local and state tax revenue. Our achievements in tourism must be nurtured and continued strategic promotions will be necessary to encourage domestic and international travelers to choose our great state for their next professional or personal experience.

• ​The Details Behind Paid Family Leave
  The number one labor policy priority for Democrats in control of the Legislature will be passing paid family leave legislation in Oregon which already exists in both California and Washington. Paid family leave will require a great deal of attention to detail as Oregon’s structure for creating a viable system will differ from that of our neighbors. ORLA believes in the concept of paid family leave and would like to work with legislative leadership to find a way to set up an employee paid system providing financial security for both planned and unexpected immediate family circumstances which require time away from work.

• Statewide Approach to Single-Use Disposables
  ORLA is a staunch proponent of laws which treat all Oregonians equally. We commonly refer to this work as establishing preemptions in an effort to create consistency in business. The City of Portland has passed an ordinance for on-demand plastic straws and single-use plastics (SUDs) like utensils for to-go orders. For Portlanders and ORLA members in the marketplace, this is good news compared to outright bans on these products. Given interest amongst legislators, ORLA will discuss options for creating a permanent model for plastic use at the statewide level to avoid the inconsistent policies that will otherwise pass at local levels of government across the state. 

• Protecting Oregonians from “Home Commercial Kitchens”
  A new law passed in California allows for the limited sale of food products to the public using home kitchens. ORLA will fight against these pursuits as a matter of health and safety for the general public. Stringent health and safety regulations are in place for a reason and maintaining these commitments for all food sales to the public will be a top priority.

• Short-Term Rental Safety and Code Compliance
  ORLA continues the important work of reining in illegal hotels which continue to host guests without complying with safety regulations applying to the rest of the hospitality industry. Online Travel Agencies (or OTAs) should require all hosts on their website to prove safety compliance with the designated local jurisdiction and also prove appropriate home insurance coverage for accommodating out of town guests in exchange for money.
  
  > Read ORLA's position statement on Reining-In "Illegal Hotels"

• Opposing a .05 Blood Alcohol Content Threshold
  The 2019 Oregon Legislature is contemplating the creation of a stricter standard for automatic “driving under the influence of intoxicants” (DUII) citations by lowering the current automatic citation standard of .08 blood alcohol content (BAC) to .05. ORLA opposes such a proposal for reasons including: The biggest growth in impaired drivers by far is marijuana users; the .05 proposal does nothing to make Oregon's streets safer; Traffic safety statistics do not support the NTSB’s .05 BAC argument. The current system is working. The National Highway Traffic Safety Administration is successfully implementing several strategies and programs aimed at decreasing drunk-driving fatalities on our nation’s roadways by 51 percent since 1982. In addition, drunk-driving fatalities involving persons under 21 have decreased 80 percent.
  ​
  > Read ORLA's position statement on the BAC Threshold

During this session ORLA will be tracking several bills and engaging on those particularly to the hospitality industry. Members are encouraged to stay informed and engaged on the issues by subscribing to ORLA communications. If you have any questions, contact Greg Astley, Director of Government Affairs, at Astley@OregonRLA.org.

ORLA Engaged in Local and Statewide Measures and Races

A week after the election, there are still some races across the nation undecided or in the middle of a recount to determine winners. Here in Oregon though, the ballots are counted, and the results are definitive.

Governor Kate Brown (D) beat her opponent, State Representative and physician Knute Beuhler (R), giving her the opportunity to serve four more years in the office. With final numbers still to be reported, according to the Oregon Secretary of State’s website, the two raised and spent a record $36 million in this race.

Democrats in Oregon won big victories and now officially have a supermajority in both the House and the Senate for the first time since 2009. ORLA believes the best policy occurs when there is more parity in the two chambers which can result in more compromise between legislators. The 2019 Legislative Session could see more partisanship or less depending on how Democrats choose to leverage their position in the House, Senate, and Governor’s office.

ORLA’s upcoming legislative priorities will be discussed and approved at our combined Public Policy Committee meeting on December 11th here at the ORLA offices in Wilsonville. Members can RSVP to join us from 1:30-3:00 p.m. by emailing Glenda Hamstreet at GHamstreet@oregonrla.org.

ORLA took a position on four of the five statewide ballot measures in this election cycle. We supported Measures 102 (Affordable Housing), 103 (Keep Our Groceries Tax Free) and 104 (Requirements for Raising Taxes) with only Measure 102 passing. In addition, we were opposed to Measure 105 (Repeal State Sanctuary Law) which was defeated.  

In local ballot measures, ORLA was opposed to Portland’s Measure 26-201 (Gross Receipts Tax) which passed.  We were also opposed to a local sales tax on meals in Jacksonville which was soundly defeated 65%-35%.

In another local race, Bambuza owner Daniel Nguyen, won a seat on the Lake Oswego City Council and will begin serving January 1, 2019.

The team at ORLA very much appreciates all of our members who contributed to the ORLA Political Action Committee (ORLAPAC) and allowed us to participate in a meaningful way in these important races. Your support and contributions will be needed even more in the future as we look ahead already to the 2020 election cycle.

Oregon has a strong track record of enhancing tourism and creating thousands of jobs that trigger local economic growth while making Oregon a top travel destination. That is why we are supporting Measure 104 – it will ensure tax fairness for businesses and consumers.

Join the Oregon Restaurant & Lodging Association and protect the entrepreneurial spirit that brings award-winning plates from chefs who use Oregon’s farm fresh Marionberries and hazelnuts, salmon and crab and thousands of handcrafted beers and wines.

Unfortunately, this entrepreneurial spirit is under attack.

New taxes on beer, coffee, food, and soda have become common amongst politicians in Salem, as they search for new revenue, despite record spending levels.

How are politicians gaming the system and getting around the law?
Over 20 years ago Oregon voters passed a constitutional amendment requiring a supermajority vote on all revenue-raising legislation. But now, thanks to a creative loophole found by politicians and their lawyers, politicians have changed the rules to avoid the supermajority vote designed to protect taxpayers from increased taxes on food and beverages.

This year, politicians used this trick to steal $1 billion from small businesses on a simple-majority vote, eliminating lower tax rates for hardworking, family-owned businesses throughout Oregon. That isn’t right and it needs to be stopped.

A "Yes" vote on Measure 104:

• Protects families, farmers, and small businesses.
• Will close the loophole and put an end to these legislative tricks hurting consumers and businesses.

Supporting Measure 104 will help prevent partisan gamesmanship and ensure tax fairness for Oregonians. Join us in protecting the Oregon way and the entrepreneurial spirit that makes Oregon a great place to live, visit, work and play.

The Oregon Restaurant & Lodging Association encourages a "Yes” vote on Measure 104.

Here's how you can help:

• Put up a yard sign
• Display a 4x8 field sign
• Write a Letter to the Editor
• 'Like' us on Facebook
• Share our Facebook posts
• Endorse Measure 104

For more information on volunteering for the campaign download the Volunteer Info flyer.
Contact the campaign: Yes@Yeson104.com | 503.974.8860 | www.yeson104.com
​

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.