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.

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.