Legislative Update
By Oregonians for Food and Shelter,
Week two of the 2026 Legislative session is ending with action on several significant bills against the first deadlines of the lightning-fast session. The newly created “Joint Special Committee On Referendum Petition 2026-302“ completed its sole task: sending SB 1599 out of committee on party-lines. Opposition to the bill far outweighed support, and Senator Bruce Starr noted the likelihood the bill itself could be challenged in court. The bill now heads to the Senate floor.
The other contentious issue, taxes, is also on the move: SB 1507 proposes eliminating several federal tax breaks for businesses under Oregon tax law, known as “disconnect.” Most critically for businesses, this includes disallowance of accelerated depreciation of new equipment – a valuable tool for small businesses. The Senate Finance Committee voted to pass SB 1507 on Monday, also on party-lines, and the bill is waiting to head across the Senate floor.
For OFS, our highest issue of concern has been the proposed “Climate Superfund” bill, SB 1541. We’ve joined a large coalition in opposition, and the bill now sits in the Ways & Means committee, where we hope it stays until the session adjourns.
The last week also delivered some significant news on the regulatory front that relates to issues we’re tracking this session. Many of our members are impacted by DEQ’s implementation of the Recycling Modernization Act, passed during the 2021 legislative session. In addition to ballooning costs to the state, many companies and industries will be priced out of Oregon markets due to the high costs of this new program for producers of packaged products. While a legislative solution, HB 4030, is being discussed this week to exempt certain additional products (berries, meat, seafood, etc), the National Association of Warehousers and Distributors have secured a preliminary injunction from the Federal Court for the District of Oregon, blocking enforcement of Oregon DEQ’s EPR law for its members, pending a trial set for July 13, 2026.
The injunction calls into question the legal validity of the program, creating significant uncertainty for all businesses required to pay into the program. The decision also threw a wrench into HB 4030, as one amendment proposed pausing the whole program while the lawsuit is pending. OFS joined partner businesses and organizations in a letter to DEQ asking the same. We will be watching closely to see how the Legislature and DEQ respond to the pending court decision and its implications for the program. The program is just one example of the costly burden of regulations piled onto businesses in Oregon and driving up consumer costs.
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