New Laws in 2020

There were several new statewide laws passed in the 2019 Oregon Legislative Session that went into effect as of January 1, 2020 or earlier this year. The following are some of the more frequently asked bills related to hospitality businesses.

Plastic Straws on Request
SB 90 prohibits food and beverage providers or convenience stores from providing single-use plastic straws to consumers unless consumers specifically request single-use plastic straws. Although ORLA opposed this bill, we were able to gain concessions such as allowing for employees to offer drive-thru customers a plastic straw rather than requiring them to ask for one. After notice for a first and second violation, subsequent violations may include a fine of "not more than $25 for each day in which the food and beverage provider... remains in violation... The enforcement officer may not impose total fines of more than $300 during a calendar year." Read the specific bill language on SB 90. 

FAQs on plastic straws:

1. Can drive-thru locations still give straws without guest request? Restaurant drive-thru windows can verbally offer single-use plastic straws to consumers in vehicles.
2. I understand that cocktail straws are considered stirrers. Does the same law apply for self-serve coffee stations (i.e., hotel breakfast areas)? There is no statewide single-use plastic ban on stirrers. Only in local jurisdictions (like Portland) does this exist. A single-use plastic straw must be used to transfer liquid from a container to a person’s mouth, therefore stirrers should still be exempt.
3. Can service staff at a sit-down (full-service) restaurant ask the guest if they would like a straw? No, the guests will need to ask for a straw. The exception includes, "in which the consumer may receive a delivery of prepared food or a beverage while seated in or on a vehicle."
4. If a location has both a drive-thru and a dining room are the guests who dine-in served differently than those who drive through? Yes. Drive-thrus are explicitly allowed to be more proactive in asking if the customer wants a straw.   
5. Are hotel rooms with coffee service exempt from the plastic straw rule? Yes. They are not considered a licensed restaurant. Related, a hotel breakfast area, if it is just a breakfast area and not a restaurant, could provide plastic straws without a guest having to request them because they are not a licensed restaurant.
6. Do quick-service locations with a self-serve soda fountain need to remove straws from the self-serve area and only have them behind the counter for customers to request? Yes, if they are a restaurant. The exemption is that convenience stores can still have straws out in self-service areas if the convenience store doesn’t have space behind the counter to store the straws where staff are.
7. What other materials can be used for single-use straws instead? Businesses can still include straws if they’re not made from any sort of plastic; other material options may include but are not limited to paper, pasta, sugar cane, wood, or bamboo.
8. Are mobile food trucks that have walk-up customers treated like a “drive-thru?" No. The definition in the bill requires the person to be "seated in or on a vehicle."

Plastic Bag Ban
HB 2509B prohibits retail establishments from providing single-use checkout bags to customers, except in certain cases. ORLA opposed this bill to ban all plastic checkout bags from restaurants, grocery stores and other establishments. Violations carry a maximum fine of $250 with one occurrence per day maximum. Enforcement officers are those who conduct inspections on behalf of your local government or regulating state agency, and may determine compliance during these inspections. Read the specific bill language on HB 2509.

FAQs on Plastic Bags:

1. Do drive-thru locations need to adhere to the new single-use plastic bag ban? Yes.
2. What can restaurants provide to customers? Restaurants may provide: (a) Recycled paper checkout bags at no cost to customers, (b) Reusable plastic checkout bags at no cost to customers who use an electronic benefits transfer card issued by the Department of Human Services, or if they charge not less than five cents per bag.
3. What are the restrictions for restaurants? Restaurants may not provide: (a) Single-use checkout bags to customers, (b) Reusable plastic checkout bags to customers unless the restaurant charges not less than five cents for each reusable plastic checkout bag.
4. Are single-use biodegradable plastic bags still allowed? No. Checkout bags can only be a recycled paper checkout bag, a reusable fabric checkout bag or a reusable plastic checkout bag.

Resources:

• DEQ/State of Oregon website
• Sustainable Shopping Initiative FAQs
• A Better Way to Bag - FAQs and Suggestions from Hillsboro Chamber and City of Hillsboro

Some cities in Oregon have already instituted plastic bag bans. This new law “generally preempts, or overrides, any existing local checkout bag policy." Local governments cannot have different restrictions from the statewide law in their local policy, but could require a higher fee and impose a penalty other than the penalty established under HB 2509—but a restaurant or retail store can only be charged with a violation under either the local provision or HB 2509.

• City of Portland Single-Use Plastics 
• City of Salem Plastic Bag Ban in Effect 

Commercial Activities Tax
The new Commercial Activity Tax is imposed only after a taxpayer exceeds $1 million of taxable commercial activity. Once they pass that threshold, the tax is $250 plus 0.57% on gross receipts greater than $1 million after subtractions. Draft rules have been released by the Department of Revenue, including estimated payments and filing extensions. The Department of Revenue intends to release a series of draft rules through March, with the permanent rulemaking process beginning on April 1, 2020. The tax begins on January 1, 2020. It includes all business entity types, including C and S corporations, partnerships, sole proprietorships, etc. Read more on the CAT, timelines, and other resources.

Accommodations for Pregnancy Related Conditions
The Oregon Legislature recently passed House Bill 2341 (2019) which provides additional employee protections related to pregnancy, childbirth or a related medical condition, including lactation. Read more at Oregon.gov/boli.

Real ID
As of Oct. 1, 2020, regular Oregon driver’s licenses will no longer be valid to board a commercial flight, or do other activities where a federally approved form of identification is required. Should someone choose not to upgrade to a Real ID, a standard Oregon driver’s licenses will still be good for activities, such as driving, purchasing alcohol, registering to vote or applying for benefits.

​Questions? If you have additional questions on these or other new laws, contact ORLA Government Affairs at 503.682.4422.
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