A bill to expand projects subject to Oregon’s prevailing wage requirements was moved out of the House Committee on Business and Labor on a 6-5 vote before the first chamber deadline.
HB 2408 expands the definition of ‘public works’ in relation to prevailing wage. This would include projects that are located in an enterprise zone in which a business has or will receive a property tax exemption if the total project costs are at least $20 million.
Enterprise zones serve as major economic development tools, and at the local level have proven an effective way to attract new business investments and create jobs by offering a means of lowering the initial cost of investment. Imposing prevailing wage requirements to enterprise zones would significantly boost the cost of projects. Additionally, local enterprise zone sponsors (counties, cities, ports, or tribes) currently have the option to impose hiring and wage requirements on larger investments that seek the fourth and fifth years of abatement. HB 2408 seeks to seize local control, a principle Association of Oregon Counties (AOC) firmly stands on, and threatens economic development opportunities.
AOC Interim Executive Director Mike Eliason is continuing to engage in discussions on this bill to protect one of the few economic development opportunities available to local government.
Contributed by: Megan Chuinard | Public Affairs Associate