After pushing through the 50¢ per pack increase on cigarettes in an effort to balance the state’s budget for the last biennium, lawmakers are still talking about increasing cigarette taxes by another 20¢ to 30¢ per pack.

Increasing cigarette taxes is a shortsighted approach to solving the state’s budget problems. Retailers and distributors are still reeling from last year’s massive increase in the cigarette tax and further increases in tobacco taxes will only deal another blow—causing more employee layoffs and even the loss of entire businesses.

Now is the time to let your legislators hear from you —Oregon’s neighborhood store industry. Tell them how the last cigarette tax increase has affected your business and remind them that now is the time for Government to live within its means!

Call toll-free: 800–332-2313 or: www.legis.state.or.us

While taxes are currently the most significant issue within the State Capitol, ONSA has been busy monitoring over 180 other legislative proposals with the potential to impact neighborhood storeowners. The following bills may be of particular interest.

HB 2103 - Payment Processing
This measure prohibits selling, leasing, or renting any payment processing system that provides customers with a receipt containing more than the customer’s name and the last five digits of the debit or credit card. The measure provides a 36-month period in which merchant copies of such records must be destroyed and its applicability is phased in. The measure was introduced in response to the growing problem of identity theft. —Governor signed June 11th

HB 3058 - Military ID
Allows store clerks, bartenders, waitresses and other liquor licensees and service permit holder to accept military ID as proof of a person’s age. The new law, effective June 6, 2003, eliminates a legal barrier that developed months ago when the U.S. government began issuing new military ID cards that do not show the service member’s physical description. —Governor Signed June 6th

HB 3130 - Malternative beverages
Allows off-premises sales licensees to continue selling “malternative” beverages through December 31, 2004. A “malternative” beverage is a malt-based alcoholic beverage that is sold and taxed as a malt beverage rather than as a distilled liquor which only may be sold at OLCC stores. — Governor Signed July 8th

HB 3316 - Verifying Identification
This measure allows merchants who accept credit or debit cards to require identification. In addition, HB 3316 declares contract provisions prohibiting merchants from verifying identification to be against public policy and void.—Governor Signed June 11th

HB 3318 - Use of False ID
Increases the maximum penalty for production of false identification. Use of false identification may now be punished with five years imprisonment, $100,000 fine or both. However, the measure provides an affirmative defense for underage persons who use or create false identification solely for the purpose of buying alcohol or tobacco. —Became law without the Governor’s signature.

SB 285 - Workers’ Comp closures
SB 285 allows an insurer or self-insured employer to request reconsideration of notice of closure for worker’s compensation claim.—Governor Signed June 23rd

SB 397 - Shoplifting
SB 397 establishes a three-year statute of limitations for civil actions based on shoplifting or the taking of agricultural produce. Currently, Oregon does not have a statute of limitations for civil actions based on shoplifting. However, a recent Oregon Court ruling applied a one-year statute of limitations to such action. In that case, it was noted that these types of cases most often settle without the need for civil action. However, such settlements often include restitution payments over an 18-month period. A one-year statute of limitations would have discouraged such settlements forcing more shopkeepers to incur the expense of taking shoplifters to court. —Governor Signed. Effective January 1, 2004.

SB 765 - Street access
SB 765 specifies the criteria used for determining whether access to a street or road is reasonable. The measure requires the access to be sufficient to allow authorized uses of property identified in the local comprehensive plan and to serve the volume and type of traffic anticipated based on planned uses of the property. The measure also repeals the sunset on the current law allowing the Department of Transportation to help property owners pay for costs of relocating driveways or access roads.—Governor Signed June 19th

SB 926 - Beverage Containers – Pending
HB 3313, which would have allowed dealers to refuse to accept beverage containers damaged to such an extent that the bar code is unreadable, was approved by the House, but failed to move out of the Senate Business and Labor Committee, before the committee was closed. As a result, another bill (SB 926) with similar provisions allowing for the refusal of damaged beverage containers was reintroduced in the Senate Rules Committee. The bill is scheduled for public hearing on July 22. No Action Taken

Minimum Wage
HB 2624 would have deleted the annual adjustment of minimum wage in accordance with the U.S. City average Consumer Price Index. Although the bill passed the House, it remains in the Senate Business & Labor Committee, which is closed.

Tobacco Retail License
HB 2335 would have required retailers to obtain a tobacco-vending license before selling tobacco products. It also would have prohibited the sale of cigarettes in packages of less than 20. No action was taken in the House Business, Labor & Consumer Affairs Committee, before the committee was closed.

No Call Program for businesses
SB 27 would have allowed businesses to participate in Oregon’s “No Call Program” by having their telephone numbers placed on a list indicating to telemarketers they do not wish to receive unsolicited marketing calls. SB 27 passed the Senate, but remains in the House Business, Labor, and Consumer Affairs Committee, which is now closed.
Independent Contractor Status

SB 40 would have modified the factors used to determine whether a worker is an employee or an independent contractor. The bill passed the Senate 21-9, but remains in the House Business, Labor, and Consumer Affairs Committee, which is now closed.

Alcohol & Minors
SB 895 measure would have increased the criminal penalties for selling, giving, or otherwise providing alcoholic beverages to individuals under the age of 21. SB 895 passed the Senate 19-2, but remains in the House Judiciary Committee, which is now closed.

Lottery Requirements
HB 2282 would have modified disclosure requirements of lottery game retailers and allowed termination of contract with lottery game contractor for a knowing sale of tickets to persons under 21 years of age. No action was taken and the bill remains in the House Trade & Economic Development Committee, which is now closed.

HB 2510 would have limited compensation of video lottery game retailers to 15 percent of net receipts. No action, remains in the House Trade & Economic Development Committee, which is now closed.

While action on many bills is basically complete, the TAX proposals and FEE bills will remain pending until the budget negotiations determine the agreed upon level of spending and the amount of new revenue needed to meet the spending levels. Consequently, most of the fee-related bills will not be acted upon until the final days of session.