OTA Dispatch Issue 3 2019

22 Oregon Truck Dispatch Oregon Trucking Associations, Inc. 2019 Oregon Legislature, cont. HB 2007 Diesel Regulation House Bill 2007 creates a new regulatory program to replace or retrofit old diesel engines within the Portland region. The bill establishes cut-off dates which prevent titling or registration of vehicles. By 2029, heavy-duty trucks registered within the Portland Tri-county region must have 2007 or newer model year engines. Heavy duty trucks are defined as vehicles with a gross vehicle weight rating greater than 26,000 pounds. The bill also establishes new diesel engine requirements for state public contracts in the Portland region exceeding $20 million. HB 2007 aims to incentivize fleet upgrades through distribution of over $50 million in Volkswagen Settlement funds. The bill preserves existing state preemption of local idling laws and exempts log trucks, farm trucks and equipment, and fleets with five or fewer heavy trucks. HB 2007 is effective upon passage but will become operative starting in 2023 and fully implemented in 2029. HB 3427 Gross Receipts Tax House Bill 3427 imposes a new gross receipts tax effective for tax years beginning in 2020. The bill applies to companies with annual in-state revenues exceeding $1 million. The bill is expected to raise approximately $1 billion per year for Oregon schools. The new tax applies to essentially all business entities, including S and C corporations as well as individuals, partnerships, joint ventures, estates, trusts, and limited liability companies. The tax rate is set at 0.57% of taxable commercial activity, which is defined as all Oregon- sourced gross revenue, after subtracting 35% of cost inputs or labor costs, whichever is greater. The tax does not apply to sales of fuel, groceries, or vehicles. HB 2005 Paid Family Leave This bill establishes a program which grants up to 12 weeks of paid family, medical, or safe leave. Employees with conditions related to childbirth or pregnancy may take an additional 2 weeks of leave for a total of 14 weeks. While on leave, employees are eligible for 100% of current wages if their wage is less than 65% of the state’s average weekly wage. (AWW) If they earn more than 65% of the average weekly wage, they receive a portion of their current wage while on leave. The program is funded by payroll tax contributions shared by employer (40%) and employees (60%), capped at 1% of total payroll tax. Employers with less than 25 employees are not required to contribute through payroll taxes, but their employees may voluntarily contribute to qualify for leave under the program. Rules for the bill must be established by 2021. Contributions to the fund begin in 2022, and benefits begin January 1, 2023. HB 2592 IFTA & IRP Treasury Technical Fix For years, Oregon has been statutorily prohibited from fully participating in the International Registration Plan (IRP) and the International Fuels Tax Agreement (IFTA) clearinghouses for the purpose of receiving our owed registration fees and fuel taxes from other jurisdictions. HB 2592 allows the State Treasurer and the Department of Transportation to fully synchronize with other jurisdictions and receive funds and data through the clearinghouse. SB 56/HB 2592 Elimination of Weight Receipt Senate Bill 56 would have eliminated the paper weight receipt requirement and the associated $8 fee. The document would have been converted to an electronic credential instead. While Senate Bill 56 ultimately did not pass, the operative language was instead placed within the ODOT omnibus cleanup legislation (HB 2592) which did pass. SB 558 City Speed Limits This bill allows cities to designate speed limits which are 5 mph slower than the statutory highway speed limit if located within a residence district. HB 2591 Sugar Beet Variance Permits This bill allows for combination truck tractors and other units transporting sugar beets in certain regions within Oregon to receive a variance permit for increased length. This applies to vehicles operating on US 20, US 26, US 30, or State Highway 201 between the cities of Vale, Nyssa, and Ontario. SJR 18 Campaign Finance Reform Constitutional Referral This constitutional amendment will be put forward to voters and would amend Article 2 of the Oregon Constitution. It would allow the legislature and local governments to impose limits on campaign contributions and allow disclosure requirements about contributions and campaign advertising. BILLS OF INTEREST TO OTA MEMBERS THAT PASSED There were a total of 2,759 bills introduced during the 2019 session. Of those, 727 passed . OTA actively tracked 267 bills . This compares to the 2017 long session when there were 2,829 bills introduced, 811 passed, and OTA tracked 278 bills.