Oregon Farm Bureau 2019 Mid-Session Update Jenny Dresler Oregon - - PowerPoint PPT Presentation

Oregon Farm Bureau

2019 Mid-Session Update

Jenny Dresler Oregon Farm Bureau May 8, 2019

Commercial Activity Tax

Commercial Activity Tax (HB 3427-A)

 Tax rate of 0.57% on Oregon sales above $1 million;  35% deduction for labor or business inputs (defined as Cost of Goods Sold);  Exemption for receipts from sales to a wholesaler for any sales outside

• f Oregon;

 Exemption for receipts from sales to and from members of an agriculture cooperative; and  An exemption for groceries (defined as those that qualify for ‘SNAP’).

Workforce

Paid Family & Medical Leave (HB 2005)

 12 weeks paid family & medical leave (+ 4 weeks of OFLA)  Applies to ALL employees

 Employers > 25 must pay the premium  Employers < 25 may pay the premium to be eligible for training grants

 Premiums = up to 1% of payroll

 60% employee income tax  40% employer payroll tax

 Job protection during leave (incl. non-wage health care benefits)

Pregnancy in the Workplace

Expression of Milk (HB 2593)

 ALL employers must provide reasonable rest periods for an employee to express milk during a child’s first 18 months.  An employer with <10 employees may file an undue hardship exemption with BOLI.

Accommodation (HB 2341)

 Employers with 6+ employees must provide reasonable accommodations for pregnant employees.  Any of those businesses may file an undue hardship exemption with BOLI.

Independent Contracting (HB 2498)

 Mirrors California court ruling, Dynamex, and the “A-B-C” test  Creates impossible new test for independent contractors:

 Must work in a different field than those they contract for  Must meet 4/6 criteria

Discrimination & Harassment (SB 726)

 Unlawful for an employer to enter into an agreement with an employee that contains a nondisclosure or no-rehire provision, unless the employee asks.  Severance agreements are voidable if the employee was removed because of harassment or assault.  Requires employer policy related to harassment and discrimination.  Extends the statute of limitations for harassment and discrimination to 5 years.

Subsidized Employer Assessment

HB 2269

 Applies to ALL employers with 50+ employees

 Work at least 8 hours/ day

 Minimum contribution to employee health care premiums

• f $0.50/ hour

 Authority for executive branch to raise rate at its discretion

HB 3262

 Applies to employers with 100+ employees:

 Retail  Restaurants  Lodging  Call Centers

 Tax for employees or their dependents on Oregon Health Plan

Carbon

Cap & Trade (HB 2020)

 Cap emissions at 25,000 metric tons  Compliance

 Allowances  Credits  Offsets

 Agriculture is not directly regulated

Indirect Costs to Agriculture

Indirect costs:

Transportation/ fuel Electricity Natural gas Propane

Associated manufacturing:

Processing Equipment

Offsets

 A carbon offset is a reduction in emissions

• f greenhouse gases made to offset an

emission made elsewhere. Greenhouse gases include:

 Carbon dioxide (CO2)  Methane (CH4)  Nitrous oxide (N2O)  Perfluorocarbons (PFCs),  Hydrofluorocarbons (HFCs)  Sulfur hexafluoride (SF6).[6]

 8%* offsets allowed

Western Climate Initiate (“WCI”) framework

Lessons Learned

 Constitutional issues with “Direct environmental benefit” requirement  Available to small segment of agriculture community  WCI = Low utilization by farmers and ranchers Accessibility Additionality Permanence Price Project verification

Incentive Programs

 USDA Farm Bill programs

 CRP and CREP – restore sensitive lands & streamside areas  EQIP – cost-shares a variety of water quality practices on working lands  CSP – rewards history of conservation and cost-shares additional projects

 Oregon Watershed Enhancement Board

 Also contributes to CREP – federal-state partnership

 Energy efficiency incentives

 Energy Trust  BPA

Diesel Engine Requirement (HB 2007)

 On-road diesel engine phase-

• ut by 2029

 Applies to engines 2010 and older

 Exemption for F-plates, farm tractors, and implements of husbandry  Dedication of VW Settlement dollars to fleet conversation