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House committee advances multiple economic development bills; liquor-store agent buyout moved to stakeholder work group

April 07, 2025 | Economic Development and Small Business, House of Representatives, Committees, Legislative, Oregon


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House committee advances multiple economic development bills; liquor-store agent buyout moved to stakeholder work group
The House Committee on Economic Development, Small Business and Trade on Monday advanced a slate of committee bills on economic development and appropriations and recorded a stakeholder agreement to form a rulemaking work group on liquor-store agent buyouts.

The committee adopted amendments and issued do-pass recommendations for House Bills 2415 (ports grants), 2417 (signature research centers), 2418 (small business innovation research grants), 2277 (Oregon CHIPS Fund adjustments), 2322 (targeted industries funding), and 3837 (poverty reduction planning grants). Committee leaders also read into the record a letter from the Oregon Liquor and Cannabis Commission and the Associated Liquor Stores of Oregon saying a work group will draft rule changes so a pending bill on agent buyouts is “not necessary at this time.”

Committee Chair Wynne opened the meeting by noting that stakeholders — including the OLCC and liquor-store owners — reached agreement over the weekend and submitted a letter dated April 6 outlining a timetable for rulemaking. The letter, read into the record, said the work group will draft a plan for agent-store evaluation by Sept. 1, 2025; OLCC will adopt administrative rules by Nov. 1, 2025; and the rules would be effective for agent buyouts on Jan. 1, 2026. The letter cited OAR 845-015-0190 as the existing resignation-buyout rule that the group intends to replace.

Why it matters: The committee moved funding and policy changes that affect ports, research centers, small-business grant programs and state CHIPS allocations. Several bills appropriate or authorize millions of dollars from the general fund or from the Oregon CHIPS Fund; one item (HB 3837) drew substantive debate about the merits of grant funding versus regulatory relief and included a recorded dissent.

Key actions and amounts
- HB 2415 (ports): Dash-1 amendment removes a $50,000 statutory cap on certain Oregon Infrastructure Finance Authority grants to ports and directs Business Oregon to set, by rule, a maximum grant amount (not to exceed 75% of total cost). Committee gave HB 2415 a do-pass recommendation. Fiscal impact: minimal; revenue impact: none.
- HB 2417 (signature research centers): Dash-1 amendment appropriates $6,000,000 from the general fund to Business Oregon for Center for Innovation Excellence grants to signature research centers. Referred to the Joint Committee on Ways and Means.
- HB 2418 (small business innovation research grants): Dash-1 amendment appropriates $3,000,000 from the general fund for the program. Referred to the Joint Committee on Ways and Means.
- HB 2277 (Oregon CHIPS Fund): Dash-2 amendment replaces the measure, adjusts allowable uses of the Oregon CHIPS Fund, removes a reversion requirement, sets a $15,000,000 limit on payments from the fund, and declares an emergency effective on passage. Committee gave a do-pass recommendation and referred the bill to Ways and Means.
- HB 2322 (economic development/targeted industries): Dash-1 amendment allows use of remaining Oregon CHIPS funding for the state’s targeted industries and sets a $25,000,000 cap on payments from the fund; declares an emergency. Committee gave a do-pass recommendation and referred the bill to Ways and Means.
- HB 3837 (poverty reduction planning): Appropriates $2,775,000 to Business Oregon to distribute to areas with high poverty rates to develop local poverty-reduction plans; the dash-1 amendment clarified timing (biennium ending July 1, 2025) and reporting/appeal deadlines. The committee gave a do-pass recommendation and referred the bill to Ways and Means, but Representative Juncker recorded a no vote in debate.

Discussion highlights
- Liquor-store agents: Chair Wynne read a letter from the OLCC and Oliver Coker of the Associated Liquor Stores of Oregon stating they will form a work group to produce a market-valuation–based agent buyout plan and replace the current resignation buyout in OAR 845-015-0190. The committee did not take further action on the pending bill (HB 2121) after the letter indicated that the bill “as amended … is not necessary at this time.”

- CHIPS funding: Members discussed leftover CHIPS money and said the bills attempt to keep unspent state CHIPS dollars aligned with the program’s original intent instead of reverting funds to the general fund. On HB 2277 members said the amendment would allow the state to support companies that were ineligible for federal matching grants but may be important to Oregon’s semiconductor supply chain.

- Targeted industries: Sponsors emphasized that HB 2322 broadens eligible uses of CHIPS funding to other targeted industries such as mass timber, bioscience and food and beverage manufacturing, calling it a step to bolster Oregon’s manufacturing base.

- Poverty-reduction grants and accountability: HB 3837 prompted the most extended discussion. Representative Juncker said the bill would not solve underlying policy causes of poverty in his district and announced he would vote no: “I just don't think giving them some cash is gonna solve the problem, and so I'm gonna be voting no at this time.” Business Oregon staff (Mark Garza) explained the bill includes standard clawback language allowing repayment if a community fails to meet contractual commitments and described a process for agencies to work with grantees to address plan deficiencies before enforcement: “It's just that, if they don't perform and make the plan, then there could be a clawback,” Garza said.

Votes at a glance (committee action)
- HB 2415 (ports) — amendment adopted; bill to floor with do-pass recommendation; outcome: approved. Roll call (as recorded): Representative Johnson (Aye), David Lively (Aye), Representative Osborne (Excused), Representative Gallatos (Aye), Representative Guzman Hobby (Yes), Vice Chair Diehl (Yes), Vice Chair Isidore (Yes), Chair Wynne (Yes).
- HB 2417 (signature research centers, $6,000,000) — amendment adopted; bill to floor with do-pass recommendation; outcome: approved. Roll call (as recorded): Representative Dobson (Aye), Representative Lively (Aye), Representative Osborne (Excused), Representative Scarlados (Aye), Representative Watanabe (Aye), Representative Juncker (Yes), Vice Chair Deal (Yes), Vice Chair Isidore (Yes), Chair Wynne (Yes).
- HB 2418 (SBIR grants, $3,000,000) — amendment adopted; bill to floor with do-pass recommendation; outcome: approved. Roll call (as recorded): Representative Johnson (Aye), Representative Ludwig (Aye), Representative Oswald (Excused), Representative Scarlatos (Aye), Representative Watanabe (Aye), Representative Yunker/Youngcare (Yes), Vice Chair Deal (Yes), Vice Chair Quisitor (Yes), Chair Wynne (Yes).
- HB 2277 (CHIPS fund adjustments; $15,000,000 limit) — amendment adopted; bill to floor with do-pass recommendation; outcome: approved. Roll call (as recorded): Representative Johnson (Aye), Representative Leifeli (Aye), Representative Oswald (Excused), Representative Scott Adams (Aye), Representative Quetzalati (Aye), Representative Guemker (Yes), Vice Chair Diehl (Yes), Vice Chair Isadore (Yes), Chair Wynne (Yes).
- HB 2322 (targeted industries; $25,000,000 cap) — amendment adopted; bill to floor with do-pass recommendation; outcome: approved. Roll call (as recorded): Representative Dobson (Aye), Representative Lively (Aye), Representative Oswald (Excused), Representative Scarlato/Scarlados (Aye), Representative Watanabe (Aye), Representative Yunker/Yanker (Yes), Vice Chair Diehl (Yes), Vice Chair Isidore (Yes), Chair Wynne (Yes).
- HB 3837 (poverty reduction, $2,775,000) — amendment adopted; bill to floor with do-pass recommendation and referral to Ways and Means; outcome: approved (one recorded no). Roll call (as recorded): Representative Dobson (Aye), Representative Lively (Aye), Representative Osborne (Excused), Representative Scarlato (Aye), Representative Watanabe (Aye), Representative Juncker (No), Vice Chair Deal (Yes), Vice Chair Isidore (Yes), Chair Wynne (Yes).

What’s next: All committee bills receiving do-pass recommendations will be referred to the Joint Committee on Ways and Means where final funding and fiscal decisions are made. The OLCC-Associated Liquor Stores work group will draft proposed agent buyout rules with the timeline in the April 6 letter: plan by Sept. 1, 2025; rules adopted by Nov. 1, 2025; effective Jan. 1, 2026.

The committee adjourned at about 8:35 a.m., concluding the scheduled work sessions.

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Scribe from Workplace AI
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