The Senate Committee on Labor and Business opened a work session on House Bill 2127A on April 17 and adopted the A3 amendment before recommending the bill to the Senate floor.

Committee staff explained the bill updates laws governing franchise agreements between car dealers and manufacturers, distributors and importers and amends the actions a manufacturer, distributor or importer can take within that business relationship. Staff said the A3 amendment removes four words that remained in the text after the House removed a section related to warranty labor rates; the witness characterized the leftover wording as a clerical error.

Greg Remensberger, executive vice president of the Oregon Auto Dealers Association, confirmed the amendment corrects language that referenced a portion previously removed on the House side. "It was a clerical error more than anything else," Remensberger said.

Senators asked whether the bill as amended would interfere with manufacturers' ability to comply with the state's Advanced Clean Trucks rule or other zero‑emissions vehicle regulations. Remensberger said the statute's use of a reasonableness standard allows manufacturers to comply with other regulation when required. "So that a manufacturer, when they're required by another regulation to meet those standards, they have the ability to do that with their inventory that they send to the dealerships," he said.

Vice Chair Bonner moved to adopt the A3 amendment; with no objections Senator Taylor announced the amendment was adopted. The committee then moved HB 2127A as amended to the floor with a due pass recommendation; the motion passed with no objection and Senator Bottom volunteered to be the floor carrier. Senator Hayden was recorded as excused.

Why it matters: Sponsors and industry witnesses said the amendment corrects a drafting error and does not change the bill's substantive intent. Committee members sought explicit confirmation that the bill would not undermine compliance with state clean‑vehicle rules.

Next steps: The committee sent HB 2127A as amended to the full Senate with a due pass recommendation and designated a carrier for floor action.