• ​Instituting a Pass/Fail System for Restaurant Inspections Statewide
  Under current state law, county health inspectors provide a foodservice inspection grade on a scale of 0-100 with any score at 70 or above constituting passing. Unfortunately, county health inspector grades can be seen as an overall restaurant quality grade in the eyes of consumers which is not the intent of the law. If any score at 70 or above constitutes a safe environment for public food consumption, then why not move to a pass/fail system for all grades? A pass/fail system would allow all operators to compete on the merits of food quality, customer service, and overall customer experience.​

​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. At the time of this writing, the City of Portland is developing an ordinance for on-demand plastic straws. In addition, the City of Portland ordinance will also include on-demand plastic utensils for to-go orders. Both developments are good news for Portlanders and ORLA members in the marketplace 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. 

Questions? Contact Greg Astley, Director of Government Affairs, at Astley@OregonRLA.org.

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.

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.