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Legislative Report – 2015

OREGON

Oregon 2015 Legislative Profile

Oregon 2015 Session Overview

The Oregon legislature convened for a regular session on February 2, 2015 and adjourned on July 6, 2015.

Politics

Over 2,799 bills were introduced during the 2015 Legislative Session. Of those, fewer than 640, or 23%, have been signed by the Governor. Each proposed bill was read and analyzed through the lens of how it could or would impact the grocery business. The NWGA lobby team tracked over 500 bills this Legislative Session. Many bills presented real threats to the way we operate our businesses resulting in costly new regulations and mandates. On the contrary, some bills created opportunities for NWGA to craft good public policy, which benefited the grocery industry. The following is a compilation of the good, the bad, and the ugly, which NWGA tackled on your behalf.

The beginning of the session held political controversy over ethics complaints regarding then-Gov. Kitzhaber’s (D) fiancé, Cylvia Hayes, and her role within his administration. A government whistleblower provided internal emails to the press, which displayed potential conflicts of interest between Ms. Hayes’ role as first lady and her work as an environmental consultant. Ultimately this controversy led to the resignation of Gov. Kitzhaber (D) on February 13, 2015, an investigation continues into the potential ethics violations of his administration. On February 18, 2015, Secretary of State, Kate Brown (D), was sworn in as the 38th Governor of Oregon.

Oregon bucked the national trend in November of 2014 by being the only state on the West Coast that did not pick up Republican Legislative seats. In fact both chambers picked up Democrat seats—extending the Democratic majorities in both the House and the Senate (the Senate with a supermajority – enough votes from one party to raise taxes). As such, the 35-25 majority Democratic House and 18-12 majority Democratic Senate left many of us advocating on behalf of Oregon employers braced for what could be a very difficult legislative session.

NWGA Sponsored Legislation

Senate Bill 2803 – OLCC/Redemption Center Enforcement and Compliance

NWGA Position: SUPPORT

Status: Passed legislature and signed by the Governor

House Vote: 45 YES – 6 NO
Senate Vote: 27 YES – 2 NO

Summary: HB 2803 revises the reporting and compliance requirements of the OLCC when approving Oregon Bottle Bill redemption centers. It establishes a reasonable timeline and process for dealer/retailer compliance and timely OLCC enforcement to guarantee that non-participating dealer/retailers are in compliance with the existing law. In 2013, SB 117 was adopted which required non-participating retailers to meet specific convenience criteria and offer equivalent services. However, in the last 2 years OLCC has been reluctant to use their existing civil penalty authority for non-participating retailers. HB 2803 requires the OLCC to act. Specifically, OLCC determines a dealer is in violation, the Commission must provide the dealer with written notice of the violation. The dealer must cure the violation within 60 days to avoid a civil penalty. If violations are not cured within 60 days, OLCC is required to impose a civil penalty of at least $200 per day. All penalties recovered from such violations shall be paid to the State Treasury and credited to the General Fund.

The Joint Ways and Means Committee provided OLCC with $133,738 Other Funds expenditure limitation and one permanent full-time position (0.75 FTE). The new position is a Compliance Specialist 3 and will manage increased workload anticipated under House Bill 2803.

Impact to Industry: Non-participating retailer compliance will reduce redemption center costs to those participating retailers by over $440,000 in the first year.

History of the Bottle Bill:

- Original Bottle Bill passed in 1971
- In 2007, Legislature made first significant changes and added water and flavored water. Also required universal brand acceptance at all large retailers
- In 2009, in response to the 2007 changes, the Oregon Beverage Recycling Cooperative was formed to improve the customer return experience and remove high volume returns from the grocery store.
- In 2011, HB 3145 passed and added a new ‘class of’ covered beverage produces (juices, teas, sports drinks) to kick in Jan. 1, 2018.
- Does not include wine, liquor, dairy or milk substitutes
- Beer, soft drinks and water will continue to be covered in containers that are 3 liters or less in size, but the new beverages will be covered only if they are in bottles or cans from 4 ounces to 1.5 liters in size.
- Metal cans that require a can opener will also not be included.
- HB 3145 also set a trigger for the deposit to increase to 10 cents if the recycling rate falls below 80 percent for two consecutive years, but not before 2017.
- In 2013, SB 117 was adopted expanding redemption centers and requiring them to be located in a ‘convenience zone’ of 2 and 3.5 miles. This bill also required non-participating retailers to meet specific convenience criteria… and offer equivalent services
- In 2015, HB 2803 was adopted to address non-participating retailers that were still not complying with the law, and requires the OLCC to enforce the law.

Retail Grocery

Senate Bill 454 – Paid Sick Leave

NWGA Position: Originally OPPOSED in House, NEUTRAL on final version

Status: Signed by Governor.

Effective date: January 1, 2016.

Summary: SB 454 was one of the hardest fought pieces of legislation this session. It was labor’s number one agenda item and given the Democratic majorities in both chambers, NWGA expected it to pass. However, NWGA was able to secure five NO votes in the Senate (which eventually dwindled to three in June) until a local preemption on other employment policies was passed. Ultimately, SB 968 was passed as a package (along with SB 454), which placed a 2-year local preemption on predictable/flex scheduling requirements to stop Portland and Eugene from enacting local ordinances. Below is a detailed summary:

Employer size: Employers of 10 or more employees must provide paid sick leave, those with fewer than 10 must provide the same leave, but are not required to pay employees for the time off. Employers averaging 10 or more employees for 20 weeks in the year prior to that in which leave is to be taken must pay for sick leave. BOLI is specifically directed to adopt rules on this subject.

Employee definition: Includes piece rate workers, salaried, hourly and commissioned workers, and home care workers. Excludes independent contractors, workers who receive sick leave under federal law, participants in a federal or state work training program, work study participants, railroad workers, and family members working in a family business.

Collective Bargaining Agreements: Collective bargaining agreements are not exempt from provisions of SB 454, except those that cover hiring halls or similar referral systems.

Accrual of leave: Beginning January 1, 2016, employees accrue one hour of sick leave for every 30 hours worked, up to a maximum of 40 hours of accrued leave. Leave begins to accrue on an employee's first day of work.

Employee eligibility: Workers hired on or after January 1, 2016 may use accrued leave beginning on their 91st day of employment. Those hired prior to 1-1-16 are immediately eligible to use leave, beginning on 1-1-16.

Use of leave: Leave may be used in one hour increments beginning on the 91st day of employment, for the following purposes: (1) preventive care; (2) care, treatment, or diagnosis of the employee's mental or physical illness, injury or health condition; (3) to provide care for a family member with a mental or physical illness, injury or health condition, or who is undergoing diagnosis or treatment; (4) care of a family member who needs preventive care; (5) to deal with domestic violence, harassment, sexual assault or stalking issues; and (6) for Oregon Family Leave Act covered leave.

Donating leave: Employees may donate accrued leave to each other if employer policy allows the practice.

Increments in which leave may be taken: Leave may be taken in one hour increments unless: (A) allowing such a small amount of leave would pose an undue hardship to the employer (criteria to be established by BOLI); and (B) the employer allows employees to accrue 56 hours of leave per year instead of 40. If both conditions are met, an employer may require leave to be taken in increments of four hours.

Notice to employer of intent to take leave: Employee must follow employer’s usual notice and procedural requirements, as long as those requirements do not interfere with the employee’s ability to take sick time. If need for leave is foreseeable, employer may require no more than 10 days notice. If unforeseeable, employee must notify employer “as soon as practicable”.

Medical verification of need for leave: Employers may require medical verification of the need for leave if an employee takes more than three consecutively scheduled work days of sick leave. Verification may be required prior to leave if the need for leave is foreseeable. Employers must pay for the medical verification, and must also pay lost wages for any work time an employee uses to obtain the verification. .

Abuse of leave: If an employer suspects an employee is abusing sick time, medical verification may be required even if the employee has not been off work for three days.

Paid time off policies: An employer's sick leave policy, paid vacation policy, paid personal time off policy or other paid time off program that is "substantially equivalent to or more generous than the minimum requirements of" SB 454 will be deemed to be in compliance with SB 454.

Right of return: If an employee quits, but returns to the employer within six months, previously accrued sick leave must be restored. If the employee quit before meeting the 90 day threshold for taking leave, previously worked time is also restored.

Portland: Employers in the city of Portland are required to comply with the provisions of SB 454, except that the paid leave requirement applies to employers with six or more employees. Those with fewer than six must continue to provide unpaid sick leave according to the provisions of SB 454.

Local government mandates: SB 454 preempts all local sick-leave mandates, except with regard to size of employers covered under Portland's current ordinance.

Penalties: Complaints may be filed with the Bureau of Labor and Industries (BOLI), which may investigate and fine violations up to $1000. Notwithstanding effective date of the law, penalties may be imposed only for violations occurring after January 1, 2017.

A plaintiff may also file lawsuit in circuit court; remedies could include reinstatement or rehiring with or without back pay of up to two-years, prevailing party costs and attorney fees at trial and on appeal.

Impact to Industry: Increased costs overall but statewide uniformity in sick leave policy.

House Bill 2004 – Minimum Wage Preemption

NWGA Position: OPPOSE

Status: Died in Committee

Summary: Repeal the state preemption that prohibits local governments from setting their own minimum wage rate.

Impact to Industry: Immediate increased labor costs in cities such as Portland, Eugene and Corvallis. The City of Portland wants to raise the minimum wage to $15.

House Bill 2012 – Minimum Wage Increase

NWGA Position: OPPOSE

Status: Died in Committee

Summary: Over 10 bills attempted to raise the minimum wage this session, ranging from an increase to $10.75 all the way to $15 an hour. After weeks of public hearings, none of the bills advanced this session. An interim work group has been appointed to continue the discussion into the February 2016 Session, chaired by Sen. Michael Dembrow, D-Portland and Rep. Paul Holvey, D-Eugene. A ballot measure to raise the minimum wage to $15 by 2019 is currently awaiting a ballot title and if qualifies will appear on the November 2016 ballot.

Impact to Industry: Increased labor costs.

House Bill 2543 – Unused Gift Cards

NWGA Position: OPPOSE

Status: Died in Committee

Summary: HB 2543 provided that unused gift cards become abandoned property if the value of the gift card has not been redeemed within 3 years. Provided that if issuer of gift card does not have address for owner of gift card, value of gift card presumed abandoned and is subject to custody of the state if purchase, issuance or last transaction by owner of gift card occurred in Oregon. The Consumers Union believes that States that prohibit gift cards from ever expiring is a stronger protection than the ban on expiration dates sooner than five years found under the federal CARD Act. NWGA helped craft the existing law with no fees and no expiration date.

Impact to Industry: HB 2543 would have created a burdensome process to turn over gift card values to the State and cause harm to our customers trying to redeem gift cards beyond the 3-year “de facto” expiration date.

House Bill 3025 – Ban the Box

NWGA Position: Originally OPPOSED in House, NEUTRAL on final version

Status: Signed by the Governor

Effective Date: January 1, 2016

Summary: Establishes unlawful practice of inquiring into or considering applicant's conviction history on an application form, prior to interview, or, if no interview is conducted, prior to conditional offer of employment. House version went too far prohibiting employer from considering conviction history until conditional offer of employment and included a private right of action. NWGA was successful in amending HB 3025 on the Senate side to simply remove the prior conviction “check box” on the initial application but allowing background checks during interview process as well as removing the private right of action.

Impact to Industry: Human resources need to remove all prior conviction questions and/or check boxes on employment applications.

Senate Bill 478 – Children’s Chemical Phase-Out

NWGA Position: OPPOSE

Status: Signed by Governor

Effective Date: July 27, 2015.

Summary: SB 478 requires Oregon Health Authority (OHA) to establish and maintain a list of high priority chemicals of concern for children’s health when used in children’s products. The bill instructs OHA to include any chemical currently listed on Washington State Department of Ecology’s Reporting List of Chemicals of High Concern to Children. Requires OHA to post list and information on health impacts associated with exposure on its website. Requires manufacturers of children’s products sold in State containing chemical included on list in an amount above specified minimum level to provide biennial notice including name, registry number, amount and function of chemical used in the children’s product. Requires manufacturer to remove, make substitution or seek waiver for chemical present in children’s product on or before date on which manufacturer submits third biennial notice if chemical is mouthable, cosmetic, or made for or marketed to children under three years of age.

Impact to Industry: NWGA worked with a coalition against the bill and would have been neutral if SB 478 would have mirrored the State of Washington. However, SB 478 is in stark contrast to the Washington State chemicals in children’s products reporting law. Unlike SB 478, the Washington law does not mandate any phase-out or substitution. In fact, the Washington Department of Ecology states on its website that “The presence of a chemical in a children's product does not necessarily mean that the product is harmful to human health or that there is any violation of existing safety standards or laws.” For certain products, SB 478 assumes otherwise, yet does not require any analysis or determination by OHA.

House Bill 3125 – Property Tax Exemption for Bakeries

NWGA Position: SUPPORT

Status: Passed legislature and awaiting Signature by Governor

Summary: The 2013 Legislature allowed newly acquired machinery & equipment used by fruit, vegetable, nut, legume and seafood processing businesses to be exempt from local property taxes for 5 years. HB 3125 expands the tax exemption to include dairy, egg, bakery and grain processors. Bakeries will be allowed to claim the machinery and equipment (M&E) tax exemption for property purchased above $100,000 for tax years beginning in 2016.

Impact to Industry: $9.8 million estimated savings in property taxes over the five years the exemption is available for machinery and equipment placed into service.

Senate Bill 845 – Fair Share Penalty

NWGA Position: OPPOSE

Status: Died in Committee

Summary: Requires employers whose employees obtain health insurance coverage through public program (i.e. Oregon Health Exchange) to pay a fee to the state for that coverage.

Impact to Industry: Fair Share is an attempt by the unions to penalize Wal-Mart. However, SB 845 would also have a financial impact to NWGA members who provide benefits to employees, including a penalty fee equal to 90% of the cost of a Silver Plan A as defined by the ACA.

Senate Bill 888/House Bill 2010/3377—Predictable/Flexible Scheduling

NWGA Position: OPPOSE

Status: Died in Committee

Summary: Establish a mandatory predictable/flexible scheduling law that would affect all employers and employees, regardless of size or type of business. Require employers to discuss creating a personalized schedule with their employee if he has a serious health condition, caregiving responsibilities for children or the elderly, a second job, or if he is participating in an educational or job-training program. HB 3377 would also require the employer to provide a written schedule 21 days in advance and pay a ‘penalty wage’ if the employer makes any changes to the schedule. Impact to Industry: Onerous and costly scheduling requirements.

House Bill 2386 -- Temporary Cease & Desist Orders

NWGA Position: OPPOSE

Status: Died in Committee

Summary: Authorizes the Commissioner of Bureau of Labor and Industries to issue temporary cease and desist orders when violations of wage and hour laws have been alleged.

Impact to Industry: HB 2386 would have given too much authority to the Bureau of Labor and Industries causing economic harm to our industry partners—especially Oregon’s agricultural commodities and their perishable crops.

House Bill 2030 – Increase Bottle Bill Refund Value

NWGA Position: OPPOSE

Status: Died in Committee

Summary: SB 2030 increases refund value of beverage containers to 10 cents immediately and provides that refund value of beverage containers increases to 20 cents if the 80 percent redemption rate in current statute is not met. SB 2030 also required the escheat of unredeemed containers be remitted to the Department of Revenue and deposited into the Common School Fund.

Impact to Industry: HB 2030 would completely transition the bottle bill from an industry operated system to a State operated system.

House Bill 3121 – Genetically Engineered Food Labeling

NWGA Position: OPPOSE

Status: Died in Committee

Summary: Required labeling of genetically engineered raw agricultural commodities and packages of genetically engineered processed food offered or expected to be offered for retail sale within the State. Declared commodity or food misbranded if not labeled as required. After a close but failed ballot initiative in 2014, GMO advocates will continue to push bans and labeling requirements which may eventually be back on the Oregon ballot.

Impact to Industry: The Food and Drug Administration does not require special labeling of a food to identify it as genetically engineered. Much of the food available for purchase in the grocery store is genetically engineered or has genetically engineered ingredients. Requiring special labeling on what are essentially conventionally- produced foods would have little benefit, but would have significant cost that would be passed on to consumers.

House Bill 3251 – Product Stewardship

NWGA Position: OPPOSE

Status: Died in Committee

Summary: Established product stewardship program for household hazardous waste. Products would be determined by the Environmental Quality Commission as a product that, if discarded, would constitute a household hazardous waste. NWGA fought against costly product stewardship programs for batteries and mercury lamps (CFLs) in 2011 and 2013.

Impact to Industry: HB 3251 would be very expensive for the consumer. A manufacturer funded system, due to cost mark-ups at all stages of the supply chain, would greatly increase the purchase price of CFLs, batteries and other yet-to-be- determined products to the consumer.

House Bill 2189 – Hazardous Substance Labeling

NWGA Position: OPPOSE

Status: Died in Committee

Summary: Requires Director of Oregon Health Authority to adopt standards for labeling of articles that contain hazardous substances. Although HB 2189 exempts food and drugs, it specifically includes substances that come into contact with food and that could contaminate the foods, including but not limited to food packaging. NWGA argued against a similar bill in 2013, which like HB 2189 created duel regulatory authority for the proper identification and labeling of hazardous materials. The bill did not eliminate licensing and food safety requirements under the Oregon Department of Agriculture, it just adds another agency to the regulation of food packaging that is already covered under current law.

Impact to Industry: Costly and unnecessary labeling requirements.

House Bill 2960 – Statewide Retirement Mandate

NWGA Position: Monitor

Status: Signed by Governor.

Effective date: June 25, 2015. State retirement plan not to begin before July 1, 2017.

Summary: Creates a statewide retirement plan for workers whose employers do not offer a company retirement plan. The bill requires employers to automatically enroll their employees in the state plan and set up an automatic payroll deduction system that feeds money into the plan unless the employee opts out. In addition, HB 2960 creates a seven-member Oregon Retirement Savings Board within the State Treasury. The Board is directed to develop the retirement plan.

House Bill 2007 – Employer/Employee Discussions

NWGA Position: Monitor

Status: Signed by the Governor.

Effective date: January 1, 2016.

Summary: Creates a new unlawful employment practice against an employer who takes any negative employment action against an employee who discusses or discloses “in any manner” his or her wages or those of another employee. Framed by supporters as a small step towards wage equality between men and women, the new law will expose an employer to potential lawsuits resulting in up to two years of back pay when, for example, an employer fails to meet an employees wage demand, later takes an unrelated negative employment action, and results in a lawsuit alleging the negative action was retaliatory.

Budget and Taxes

2% Kicker

NWGA Position: Monitor

Summary: The 2% kicker is forecasted to send approximately $473 million back to taxpayers due to increased revenues that exceeded the official budget projections by 2%. Unlike in the past, the kicker will now be distributed as a credit on the state income taxes that are filed in 2016, although the kicker will actually be based on the taxes you owed from the 2014 tax year. The current projections show a credit of 6.7% on 2014 tax liability, before credits. The average Oregon income tax return would receive a credit of $284.

House Bill 2077 – Corporate Tax Disclosures

NWGA Position: OPPOSE

Status: Died in the House Revenue Committee

Summary: HB 2077 would have required corporations in Oregon to file tax disclosure statements with the Secretary of State. In Oregon, taxpayers are protected from public disclosure. However, Our Oregon—the union funded political arm has been pushing for public disclosure to shame Oregon businesses and use as a tool to push for tax increases. NWGA, along with much of the Oregon business community, opposed HB 2077, which failed to pass out of the House Revenue Committee.

Impact to Industry: Disclosure is an attempt by the unions to utilize confidential information from Oregon corporations in political advertising to raise corporate taxes.

House Bill 2079 – Limits on Corporate Taxes

NWGA Position: OPPOSE

Status: Died in Committee

Summary: HB 2079 would have created an unspecified limit on the ability to deduct employee compensation on the Oregon corporate income tax returns.

Impact to Industry: Decrease corporate deductions thus increasing corporate tax liability.

House Bill 2398 – Increase Corporate Excise Tax

NWGA Position:OPPOSE

Status: Died in Committee

Summary: HB 2398 would have increased the Oregon corporate income tax rate by 1% on taxable income. The Oregon income tax rate would be 7.6% on income up to $1 million and 8.6% on income above $1 million.

Impact to Industry: Increased corporate tax rate.

House Bill 2171 – Commercial Activity Tax

NWGA Position: Neutral but monitor during interim

Status: Signed by Governor

Effective date: October 5, 2015.

Summary:HB 2171 directs the Legislative Revenue Office to prepare an analysis of options for restructuring state and local revenues for further discussion during the February 2016 Session. The analysis will include restructuring property taxes and personal income taxes, alternatives for taxing consumption, and alternative business taxes such as net income, commercial activity and value added taxes. The report will be submitted to an interim legislative committee no later than December 1, 2015. Specifically, the study will look at Commercial Activity Tax patterned after Ohio tax that was adopted in 2006. Senator Hass, Chair of the Senate Finance Committee, is interested in tax reform in 2016 to head off a potential tax increase initiative proposed by the unions. A commercial activity tax would propose a percent-based tax on gross receipts while reducing personal income tax rates. The goal is to get the policy to revenue neutral, which Legislative Counsel has already advised them will only require a simple majority vote of 31 in the House and 16 in the Senate.

Impact to Industry:A commercial activity tax (aka gross receipts tax) would have a profound impact to low margin businesses like grocery and retail.

Alcohol

Tobacco

Pharmacy

Senate Bill 520 – Pharmacist Administered Immunization Age from 11 to 7

NWGA Position: SUPPORT

Status: Signed by the Governor

Effective date: June 8, 2015

Summary: SB 520 reduces the current age of 11 years of age to 7 years of age for pharmacy/pharmacist administered immunizations. Patients have accepted pharmacists as providers for immunizations and other services. In fact, approximately one in five Americans receive immunizations at retail settings, and of those, more than one-third of adults who receive vaccinations do so during evening, weekend and holiday hours including community pharmacies. Such broad public acceptance of community pharmacists not only creates better access, but also facilitates additional health care touch points, which ultimately results in better health outcomes.

Impact to Industry: SB 520 provides more convenience for parents and will further increase the number of immunizations for children in chain pharmacies.

House Bill 2879 – Pharmacist Prescribed Birth Control

NWGA Position: Monitor

Status: Signed by the Governor

Effective date: July 6, 2015

Summary: House Bill 2879 directs the state Board of Pharmacy to adopt rules to allow licensed pharmacists to prescribe and dispense oral contraceptives and hormonal contraceptive patches to women. Currently under Oregon law, pharmacists are allowed to dispense emergency contraceptives without a physician’s prescription. HB 2879 is designed to increase access to contraceptives and decrease the rate of unintended pregnancies.

Impact to Industry: Greater access to birth control directly through pharmacies.

House Bill 2026 – Biosimilar Substitution

NWGA Position: OPPOSE

Status: Died in Committee

Summary: HB 2026 extended the sunset of requiring physician notification by pharmacists if pharmacist substitutes a biologic product with a biosimilar.

Background: In 2010, The Biologics Price Competition and Innovation Act (BPCIA) authorized the FDA to develop an approval pathway for biosimilars in the U.S. The FDA pathway will classify some biosimilars as “interchangeable” ― meaning (1) the substitute is expected to produce the same clinical result as the brand biologic, and (2) switching between the brand and the biosimilar carries neither health risk nor decreased efficacy. The single most important fact in this debate is that the FDA is still developing their health and safety guidance for biosimilars. Until this is complete, there is no way that states can responsibly develop new regulations governing their use. As the FDA has not yet issued all of the final guidelines for approval of biosimilars, no applications have yet been approved. Once the FDA develops this regulatory pathway for biosimilars and interchangeable biosimilars, then states will have the information needed to make informed decisions.

The original legislation on 2013 was opposed vigorously by pharmacies, health plans and pharmacy benefit managers because it was premature to act, biosimilars posed no immediate safety issue and it impeded or limited biosimilar substitution due to a provision in the bill that required physician notification provision to substitute a biologic with a biosimilar. NWGA eventually went neutral on the bill in 2013 which sunsets the physician notification provision.

Impact to Industry: Physician notification is unnecessary for a pharmacist to be able to substitute a biologic drug with a biosimilar.

House Bill 2028 – Expands Practice of Clinical Pharmacy

NWGA Position: SUPPORT

Status: Signed by the Governor

Effective date: June 11, 2015

Summary: NWGA worked with the Pharmacists Association who led the effort to expand pharmacist services to include the practice of clinical pharmacy. Clinical pharmacy is the health science discipline, in conjunction with the patient’s other practitioners, allows a pharmacist to provide patient care to optimize medication therapy and to promote disease prevention and the patient’s health and wellness overall.

Impact to Industry: Greater role for pharmacists for disease prevention and health and wellness management.

House Bill 2558 – Tobacco Purchase by Prescription

NWGA Position: OPPOSE

Status: Died in Committee

Summary: Directs State Board of Pharmacy to adopt rules making nicotine a Schedule III controlled substance which would require the purchase of all tobacco and nicotine inhalant products to be purchased at a pharmacy with a prescription.

Impact to Industry: HB 2558 is nothing more than an obstacle for consumers purchasing tobacco.

Senate Bill 71 – Prescription Monitoring Program Reporting

NWGA Position: Initially Oppose, Supported with amendment

Status: Signed by the Governor

Effective date: January 1, 2016

Summary: Provides that pharmacies shall electronically report to Oregon Health Authority information under prescription monitoring program no later than 72 hours after dispensing prescription drug. The original bill required reporting within 24 hours. NWGA argued that weekends would have provided reporting difficulties and proposed 72 hours—which the committee adopted in an amendment.

Impact to Industry: NWGA supports the monitoring program and 72 hour reporting will have little impact to the industry.

Senate Bill 93

NWGA Position: SUPPORT

Status: Signed by Governor

Effective date: January 1, 2016

Summary: SB 93 allows a patient to get a 90-day supply of their chronic medication at a retail pharmacy. Current law allows for a 30-day fill. The insurance plan and pharmacy benefit managers (PBMs) turned this into a huge battle for the 90-day supply business through their own mail order. After a huge fight through both chambers and a conference committee—chain pharmacy prevailed in the end.

Impact to Industry: Increased business for pharmacies for chronic medications where PBMs and insurance plans have historically steered their patients to their mail order business instead of through community pharmacy.

Energy

Transportation

Senate Bill 324 -- Low Carbon Fuel Standard

NWGA Position: OPPOSE

Status: Signed by the Governor.

Effective date: June 8, 2015.

Summary:SB 324 lifted the sunset on the Low Carbon Fuel Standards (LCFS) program set to expire in 2017. The LCFS program requires a reduction in the carbon content of fuels by 5% over the next 10 years. Significant concerns were raised from the business community about the availability of alternative fuel supplies and potential for high gas prices. While Oregon has already accomplished one of the smallest carbon footprints in the country, gas prices are unusually low at the pumps. This cannot be assumed to be a permanent situation. This is providing a short-term boost to businesses and working families who are still weary from the great recession and should not be capitalized upon to implement a hidden-gas tax within the haze of clean air policy.

Impact to Industry: SB 324 is likely to increase fuel costs significantly while not accomplishing any improvement in Oregon’s highway and road systems. Studies have shown increases from a low of $.06 per gallon to as much as a $1.18 per gallon. This creates uncertainty for business owners with the potential to increase the cost of doing business for Oregon businesses. The resulting effect would slow business expansion, capital improvements and reduce jobs. NWGA joined a large coalition in an effort to stop implementation of the low carbon fuel standard, which will increase fuel costs through a hidden gas tax. Although the coalition was unsuccessful this session in the legislature, lawsuits and initiatives have been filed which will extend the debate into 2016.

House Bill 2281 – Transportation Package

NWGA Position:SUPPORT

Status:Died in the Senate

Summary:In late June, a bi-partisan transportation package emerged which would have replaced the Low Carbon Fuel Standard with a different biofuel blending program, an increased gas tax, and funding for several infrastructure projects. The plan would have also spent over $14 million to operate electric vehicle charging stations and require half of the state’s school buses to run on compressed natural gas. In total, the $345.5 million transportation bill was estimated to reduce the state’s carbon footprint by 8.5 billion metric tons over 10 years, which is higher than the 7.7 million metric tons predicted to be reduced through the Low Carbon Fuel Standard.

Impact to Industry:NWGA supported a comprehensive transportation package that is essential for Oregon commerce, and repealing the low carbon fuel standard that was signed into law earlier in the session.

Senate Bill 824 – Clean Diesel

NWGA Position: OPPOSE

Status: Died in Committee

Summary: With the passage of the low carbon fuel standard, environmental advocates are now pushing clean diesel requirements. SB 824 originally required the Environmental Quality Commission to adopt by rule diesel emission standards to phase in implementation of a requirement that all heavy-duty trucks operated in this state must be: Retrofitted with 2007 equivalent engines and 2007 fine particulate matter capture technology; an alternative fuel vehicle as defined in ORS 469.960; or retrofitted with a level 3 emission control as verified by the United States Environmental Protection Agency or the California Air Resources Board. The bill was later amended to a task force but failed to pass.

Impact to Industry: Costly retrofits for diesel trucks increasing transportation costs.

Elections