​IDAHO 

​

The Joint Finance and Appropriations Committee ceased meeting this week, March 9th and will only meeting going forward at the call of the chair. This is sign that we are likely nearing the end or at least within two weeks of it. The Senate did kill a budget bill last week and the committee will need to go to the drawing board on that. It dealt with the second biggest budget in the state, Health and Welfare. Below is an update on other pertinent legislation.

​

1. Immigration continues to be a hot topic. Immigration bills S1247 and H700/H704 have passed their respective bodies but are not likely going to move in the opposite body. It is an issue that continues to receive a lot of attention with political parties and on social media.

2. The fuel tax issue continues to be dead. We continue to monitor.

3. S1224a was amended and passed the Senate. It is waiting for a hearing in the House Transportation Committee. The bill specifically establishes an exception for slow-moving vehicles, such as farm tractors and construction equipment, allowing them to obstruct traffic only when no safe and reasonable designated turnout exists for them to exit the roadway. Additionally, the bill clarifies that emergency and snow removal vehicles are exempt from certain restrictions during their operations.

4. H664 dealing with speed limits for vehicles with five or more axles that operate at a gross weight exceeding twenty-six thousand pounds. The bill passed out of committee last week and is on the third reading calendar in the Senate. The new provision states that these vehicles will now have the same maximum lawful speed limits as other motor vehicles, eliminating the previous stipulation that their speed limit in urban areas and on state highways was ten miles per hour less than that of lighter vehicles. The bill also removes the specific speed limit of sixty-five miles per hour for these heavier vehicles on interstate highways in urban areas.

5. H667 deals with the nondomiciled CDL program in Idaho Code and repealing code that issues nondomiciled CDLs. The bill passed the House and is still waiting to be heard in the Senate transportation committee.

6. S1340a deals with rules of the road. S1340a amends Idaho's traffic laws to enhance regulations regarding vehicle operation on multilane highways. Specifically, it introduces new provisions that require vehicles to be driven in the right-hand lane on multilane highways, with exceptions for overtaking, preparing for a left turn, or when right-hand lanes are congested. Additionally, it mandates that vehicles in the left-hand lane must not impede others traveling behind them and must not drive slower than vehicles in the right-hand lane. The legislation is sponsored by Senator Mark Harris. The bill passed the Senate last week, received a hearing in the House and is now set to be debated and voted on in the House early this week.

7. H808 is a bill that I am watching dealing with medical mandates. Section 73-503 of the bill affects business entities doing work in the state and would likely interfere between the employer and employee relationship. It’s another follow-up to the discussion from last year and will likely continue on the bingo card moving into future years. This bill received a hearing on Thursday and the hearing bled into Friday. When the committee ended up voting on the bill, the bill died on a tie vote and will not move forward.

8. Will continue to monitor the issue dealing with large electric loads. There are two bills printed, one that I highlighted last week S1368, and another bill (H756) dealing with this issue. Neither of those bills will move forward, but my understanding is that a new bill will come forward dealing with the issue.

​

This review is provided by Association Management Group (Waitley Associates, Batt Associates, LP Associates & Agriculture, and Rooks Associates).  https://www.amgidaho.com/

​

​

 

OREGON

 

The 2026 Legislative Session adjourned sine die late Friday afternoon, two days before the constitutional deadline. Compared to the 2025 Session, this year’s short session concluded largely without disruption. There were two brief Republican floor boycotts in the House and Senate, each lasting only one day, but neither prevented the legislature from completing its major business. As explained below, from a business perspective, we avoided some very negative bills, made small improvements to permitting, updated some existing economic development incentives, but passed a controversial tax bill that many argue set the state back in improving Oregon’s already dismal business climate.

 

Democrats succeeded in advancing most, if not all, of their priorities for the short session. Major actions included disconnecting from portions of the federal tax code, balancing the state budget, including the Oregon Department of Transportation’s transportation budget, moving the statewide transportation tax referral from the November general election to the May primary, establishing a potential path to keep the Trail Blazers in Portland through a Moda Center renovation package, and passing a modest economic development bill intended to complement Governor Kotek’s “Prosperity Agenda.”

 

Another notable theme of the session was a coordinated legislative effort by majority Democrats to position Oregon in opposition to potential policy changes from the Trump Administration. Lawmakers advanced a series of bills reinforcing Oregon’s sanctuary laws, expanding anti-discrimination protections, strengthening privacy protections for health care providers and patients, limiting state cooperation with certain federal enforcement actions, and of course disconnecting from certain tax benefits provided for under HR 1 (“The One, Big, Beautiful Act”).

 

While these actions provided clear political messaging for the majority caucus, the session produced relatively little legislation broadly viewed as improving Oregon’s economy, cost of living, or overall business climate. Entering the session, there appeared to be growing recognition that Oregon’s business environment needed improvement because it consistently ranks near the bottom nationally and has an unemployment rate well above the national average required attention. However, rather than pursuing meaningful reforms to address the tax and regulatory challenges facing the state’s economy, legislators largely deferred those discussions for another year.

 

Beyond the session itself, Oregon faces significant fiscal challenges. State budget writers project a $5.5 billion gap in the state’s roughly $40 billion budget for the 2027–2029 biennium. Work to close that gap, through spending reductions, new revenue, or some combination of both, will begin in earnest soon. That conversation will unfold at a time when Oregon’s economic competitiveness and business climate remain major concerns, increasing the likelihood that lawmakers will debate both spending cuts and potential tax increases.

 

At the same time, the grassroots campaign currently working to refer the transportation tax package to voters may signal a broader trend. If successful, future tax increases could increasingly face voter referral efforts, adding another layer of uncertainty for lawmakers attempting to address the state’s fiscal challenges.

 

In addition, please find a description of the issues from session that may be of interest:

 

Transportation

 

SB 1599 - Transportation Referral to May (passed): SB 1599 moves the statewide referendum on the controversial gas tax and transportation fee increases from the November 2026 general election to the May 19, 2026 primary ballot. Supporters, primarily Democratic lawmakers and the Governor, argue that holding the vote earlier allows the state to address transportation funding shortfalls more quickly. Critics contend the change undermines the expectations of more than 250,000 petition signers who believed the vote would occur in November and may reduce voter participation due to typically lower primary turnout. Opponents have filed two lawsuits challenging the law, arguing that changing the election date after signatures were certified violates the referendum process and burdens voter rights, setting up a potential court battle.

 

ODOT Budget: During the 2026 short session, lawmakers confronted a significant funding shortfall at the Oregon Department of Transportation (ODOT). Following the successful referendum on the state’s $4.3 billion transportation tax package, projected transportation revenues declined, creating a roughly $200 million gap in ODOT’s 2025–27 biennial budget. Without new revenue, the Legislature and the Governor worked to stabilize the agency through budget adjustments and temporary measures aimed at avoiding major service disruptions and layoffs while longer-term transportation funding debates continue. Most of the fixes involved shifting funds from programs such as Safe Routes to Schools and Connect Oregon into ODOT’s core operations and maintenance budget.

 

HB 4007 – Milk Trucks (passed): As part of a small transportation omnibus bill, sections 26-29 of HB 4007 directs ODOT to implement a five-year pilot program for allowing commercial motor vehicles up to 129,000 pounds to transport fluid milk products on select highways in Oregon. The bill ultimately passed and we will track implementation.

 

Budget

 

The Legislature used the short session to rebalance Oregon’s overall budget for the 2025–27 biennium after updated revenue forecasts showed the state would bring in less money than previously expected. Lawmakers directed agencies to reduce spending and adopted targeted cuts and delays to ensure the state maintained its constitutional requirement for a balanced budget. The approach relied primarily on modest agency reductions and program adjustments and raised approximately $300 million in new revenue by disconnecting state tax benefits from federal tax cuts. The good news is that FFA and OSU Statewide funding did not lose any ground this session. Overall, agency budget cuts were minimal and the legislature effectively kicked the can on major issues until the 2027 session.

 

Tax

 

SB 1507 - Disconnect (passed): The House passed SB 1507 that departs from federal tax conformity by curtailing Section 179 bonus depreciation, removing the state car-loan interest deduction, and disconnecting from the qualified small business stock deduction, resulting in higher near-term taxes on Oregon businesses and consumers while discouraging investment and major purchases in the state. This disconnect will raise roughly $300 million in revenue for the current biennia. In response, Representative Ed Diehl, who successfully referred the gas tax passed last fall to the ballot, announced he would work with the same Oregonians to refer this tax package as well. 

 

This bill did include a small jobs tax credit that would provide a $1,000 tax credit for businesses that create new jobs in a calendar year. The tax credit was later modified by HB 4084 and would only apply to advanced manufacturing.  Business Oregon is tasked with developing the tax credit application and details of how to apply for this credit are forthcoming.

 

Economic Development

 

HB 4084 - Governor’s Economic Development Bill (passed): HB 4084 establishes a Joint Permitting Council to coordinate and administer a new fast-track permitting program intended to speed up approvals for large economic development projects. It directs several state agencies to publish, within 120 days of the bill taking effect, a catalog of permits related to economic development that their agencies can issue. The goal is to provide greater transparency and streamline the permitting process for businesses seeking to invest or expand in Oregon. The measure also updates the enterprise zone program, including new requirements and eligibility thresholds, while also placing restrictions on the use of enterprise zone benefits for data centers. In addition, the bill included an appropriation to the Oregon Business Development Department for the Industrial Site Loan Fund.

 

Labor

 

HB 4147 – Shame List (failed): This bill was intended to develop a list of businesses (shame list) with employees that utilize the Oregon Health Plan subsidy, with the goal to make those companies pay fees to cover the cost of the healthcare subsidies.  Although amended to prohibit naming companies and instead report the top 20 businesses by NIACS code, the bill died before session ended but previews a fight in 2027 over potential new business fees and taxes to help fund the lost federal funds for Medicaid.

 

HB 4111- Immigration Status (passed): This bill was designed to protect employees’ immigration status from federal immigration enforcement. The bill generally renders an individual’s immigration status inadmissible in a civil proceeding unless such status is an essential element of a party’s claim. It establishes two employment-claim exceptions, allowing the introduction of immigration status–related evidence through a confidential post-trial filing: 1) for a final removal order in an immigration proceeding solely to calculate damages for future wage loss, and 2) for a federal work authorization if the party was awarded reinstatement to a position. This bill passed largely on party lines.

 

HB 4089 - Criminalizing Wage Theft (passed): This bill was originally drafted to criminalize wage theft across different industry sectors.  It was narrowed to focus on construction contractors and subcontractors and clarifies when a person commits the crime of theft of services and establishes that a direct contractor or subcontractor who knowingly hires an unlicensed construction labor contractor commits a Class A misdemeanor for the first offense and a Class C felony for subsequent offenses. Criminalizing employment law violations is disturbing but we were happy to see this get significantly narrowed to certain issues that go beyond just employment law violations.

 

Environment and Permitting

 

SB 1541 - Climate Superfund (failed): The Senate Natural Resource and Wildfire Committee took testimony on SB 1541 that would have established a “Climate Superfund” program to recover the costs to the state associated with climate change from oil and gas producers. The bill passed out of committee but did not pass out of the Ways and Means Committee and died on adjournment.

 

HB 4102 - Receipts Authority (passed): The legislature heard loud and clear that Oregon’s permitting process takes too long and discourages private investment.  HB 4102 was designed to improve DEQ’s existing “receipts” authority allowing a private company to pay the agency to use third-party consultants to expedite permit approvals. The bill passed with broad bipartisan support.

 

HB 4020/HB 4021 – Permitting and Regulatory Reform (passed): HB 4021will require agencies to provide notice of regulatory changes before they can go into effect, giving businesses at least some time to prepare for new compliance obligations. HB 4020 requires DEQ (and some other agencies) to provide the statutory or regulatory authority for denying an application for a permit, provide guidance on how to contest the denial, and provide time limitations for a contest. It also requires these agencies to develop new performance measure by July 1, 2029, on the timeliness of permit and permit renewal processing and issuance, and to provide a description of what slows permit processing and issuance and what steps take the most time. These are modest improvements, but a recognition that Oregon’s permitting processes need significant improvement.

 

EPR (future uncertain): HB 4030 was introduced to create exemptions from Oregon’s EPR program.  However, during session, a U.S. District Court judge in Portland has issued a preliminary injunction blocking enforcement of Oregon’s Recycling Modernization Act, also known as DEQ’s Extended Producer Responsibility (EPR) program, for certain parties. In granting the injunction, Judge Michael Simon raised questions about whether the law complies with the Due Process Clause and the Commerce Clause of the U.S. Constitution. The ruling currently applies only to the National Association of Wholesaler-Distributors and its members, allowing those entities to pause compliance with the program while the case proceeds.

 

In response, an Oregon industry coalition is exploring legal options to ensure the injunction is applied more broadly across all regulated sectors until the court reaches a final determination. A hearing on the merits of the case is scheduled for July 13, and the outcome could have significant implications for the future of Oregon’s EPR program and its implementation timeline. The bill was unable to advance due, in part, to this uncertainty.

 

Meat Labeling

 

SB 1577 failed to advance early in session.  The bill would have created new labeling requirements for plant-based protein and lab grown meat.  Food labeling continues to get attention from legislators.  Bills like these can create issues for growers and food companies depending on the label requirements. We expect this issue and potentially others to come back in 2027.

 

Campaign Finance Reform

 

The legislature also approved HB 4018, a bill making technical fixes to Oregon’s 2024 campaign finance reform law, which established the state’s first limits on political contributions and expanded disclosure requirements. The bill was intended to address implementation issues for the Secretary of State and the Elections Division as they prepare to roll out the new system. However, the measure became politically contentious, with critics arguing the changes could weaken elements of the voter-backed reforms. Some opponents are exploring a potential referral of the bill to voters, highlighting the ongoing political divide around campaign finance regulation in Oregon.

 

Elections Filing Deadlines

 

The filing deadline for the May primary election is Tuesday, March 10. Incumbents were required to file one week earlier, and by next week we will know the full slate of candidates. Attention will then quickly shift to the 2026 campaign season. We will provide a full campaign preview in the coming weeks.

​

This review is provided by Romain Freese, LLC. https://www.rflawlobby.com/

​

​​​

WASHINGTON

​

Washington State legislators completed the 2026 legislative session on Thursday evening. The Legislature adjourned its regular session, Sine Die on March 12, at 8:25pm. Over the course of the 60 days, legislators focused on a 9.9% income tax above $1 million and expansion of the Working Families Tax Credit to support the lower-income households in the state. The week was filled with drama right down to Thursday afternoon when the fire alarms went off and interrupted floor votes in the Capitol building. Legislators rushed for the exits and fire trucks surrounded the building.

​

The income tax bill was the real drama. SB 6346 was brought to the House floor for debate starting on Monday at 5:30pm. After about 80 floor amendments, 6 were adopted, the final vote was called for on Tuesday at 6:30pm. There were no extended breaks during the 25-hour debate and House Republicans spoke for 3 minutes each, on all the amendments and final passage. The bill passing was a foregone conclusion and when the dust settled 8 Democrats voted with the Republicans. Final tally was 51 to 46 with 1 excused.

​

The new income tax would impact an estimated 30,000 taxpayers and generate $3.5 billion annually for state programs. Gov. Bob Ferguson has pledged to sign the bill, marking the state’s first income tax since 1933. Tax collections would start in 2028. There will be legal challenges and ballot initiatives to try and repeal the new tax.

​

Following passage of the income tax, Legislators approved a partial rollback of last year’s increase in the state’s estate tax rate, currently the highest in the nation, the Senate voted 39 to 10 on Thursday to concur with the House on the bill that would soften the increase enacted in the 2025 session. Last year, Legislators raised the top estate tax rate to 35%, well above the roughly 20% rate in Hawaii, with the highest rate applying to estates valued above $12 million after a $3 million exemption. The estate tax has generated about $535 million annually over the past five years, according to the Washington State Department of Revenue, and budget writers projected the higher rates could push collections above $600 million per year. The changes and lowering the rate back down will likely keep that revenue about the same.

​

The $80.2 billion supplemental operating budget adds more spending to the $77.8 billion 2025–27 biennium budget. Budget writers made some light reductions in state spending with cuts of $143 million to childcare programs, $27 million to the Transition to Kindergarten program, and $22 million in administrative cuts, while major increases in the budget included $956 million in liability payouts and $71 million for Medicaid.  Legislators also moved $4 billion from police and firefighter pensions to replenish state reserves and tapped $880 million from the Rainy-Day Fund.

​

Before adjourning, Washington legislators approved the $889 million capital budget and a $16.6 billion transportation budget. The transportation budget moves additional funding up to the current years for the PCC short line railroad. This change will protect the money from being swept into mega transportation projects that will likely become underfunded in future years.

Other priorities this session included funding education and behavioral health, improving housing affordability, public safety, transportation, climate and clean-energy initiatives, and updating drug possession and treatment laws following the Blake v. Washington ruling. As the session closed, legislators finalized budget adjustments and remaining priority bills before sending them to Ferguson for signature. There were 1,675 bills introduced this session and 267 bills passed the Legislature.

​

The Governor has 5 days, when the Legislature is in session, or 20 days (Sundays don’t count), since the Legislature has adjourned, to act on any bill passed by the Legislature. If the Governor does not sign a bill that has passed, the bill is automatically implemented. The Governor can veto parts of bills but that rarely happens.

​

High Priority Bill Updates

​

SB 6346- Establishing a tax on millionaires. Imposes a 9.90% tax on individuals on the receipt of income exceeding $1 million beginning in calendar year 2028. Passed the Legislature, headed to the Governor for signature.

​

SB 6244- Extending an existing hazardous substance tax exemption until January 1, 2038, for certain agricultural crop protection products that are temporarily warehoused but not otherwise used, manufactured, packaged, or sold in the state of Washington. The bill was on the House floor calendar waiting for a vote for 9 days. Constant, daily encouragement is what got the bill a vote. The bill was briefed in the House Democrat caucus on Wednesday evening. Thursday morning leadership called me and said the bill would get a vote. Then the fire alarms went off and delayed all work in the House and Senate. The bill was moved to third reading and final passage at 6:15pm. It was one of the last bills voted on before the House finished voting and went into Sine Die procedure. The final vote was 79 to 18. The bill now goes to the Governor for signature.

​

HB 2279- directs the Washington State Department of Agriculture to evaluate the use of per- and polyfluoroalkyl substances (PFAS) in agricultural fertilizers and pesticides. DEAD

​

HB 2409- Placing agricultural employees under the jurisdiction of the public employment relations commission for the purpose of collective bargaining. DEAD

​

SB 6045- Extends collective bargaining rights to agricultural employees in Washington by placing them under the jurisdiction of the Public Employment Relations Commission (PERC). DEAD

​

HB 2471- Concerning collective bargaining for employees not covered by the national labor relations act. Passed the Legislature, headed to the Governor for signature.

​

SB 6045- Extends collective bargaining rights to agricultural employees in Washington by placing them under the jurisdiction of the Public Employment Relations Commission (PERC). DEAD

​

SB 6117- Concerning collective bargaining for employees not covered by the national labor relations act. DEAD

​

HB 2516- Placing a moratorium on the use of certain rodenticides. This bill would ban the use of all rat and mouse treatments. DEAD

​

HB 1607- Bottle Recycling Program. DEAD

​

HB 1630- Recording and regulating methane emissions from cattle. DEAD

​

HB 2271- Concerning postconsumer recycled content requirements for plastic products. Establishes new minimum postconsumer recycled content (PCRC) requirements applicable to specified types of plastic products and plastic packaging. Amends existing PCRC requirements applicable to plastic trash bags, plastic household and personal care product containers, and plastic beverage containers. DEAD

​

SB 5360- Concerning environmental crimes. The bill would apply to violations of the state Clean Water Act, Clean Air Act, and Hazardous Waste Materials Act, elevating certain offenses from misdemeanors to felonies and converting some civil infractions into criminal violations. The proposal mirrors federal law at the state level but does not include comparable individual liability protections. It also revises the statutory definitions of “knowingly” and “negligent” and grants prosecutorial authority to the Attorney General’s Office. DEAD

​

SB 5852- Concerning immigrant worker protections. DEAD