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 of 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) Accommodation (HB 2341) ALL employers must provide Employers with 6+ employees reasonable rest periods for an must provide reasonable employee to express milk during a accommodations for pregnant child’s first 18 months. employees. An employer with <10 employees Any of those businesses may file may file an undue hardship an undue hardship exemption exemption with BOLI. 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 HB 3262 Applies to ALL employers with 50+ Applies to employers with 100+ employees employees: Work at least 8 hours/ day Retail Restaurants Minimum contribution to employee health care premiums Lodging of $0.50/ hour Call Centers Authority for executive branch to Tax for employees or their raise rate at its discretion 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 of 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] Western Climate Initiate (“WCI”) framework 8%* offsets allowed
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- out 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
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