The Oregon Biz Report - Business News from Oregon

PDX homes 13% rise then decline

By Economist Dr. Eric Fruits,
Econinternational

Business endorsments: Candidates, marriage, water measures

By Portland Business Alliance

Alliance board announces candidate endorsements for May primary election

The Alliance board of directors endorsed a selection of candidates running for office at various levels of government, including the City of Portland, State Legislature, Multnomah County, Washington County, Clackamas County and Metro. The Alliance board endorsement process includes interviews with candidates for each office and a review of their response to the Value of Jobs candidate questionnaires. The board endorsed the following candidates:

Oregon economy picks up pace

University of Oregon Regional Economic Indexes
By Tim Duy
Oregon Economic Forum
University of  Oregon

Oregon’s economy continues to expand at a somewhat above average pace. Highlights of the report include:

- The Oregon Measure of Economic Activity was 0.11 in February, compared to a revised 0.32 the previous month. The three-month moving average, which smooths month-to-month volatility in the measure, is 0.27 where “zero” for this measure indicates the average growth rate over the 1990-present period. Similar to the previous month, only the services sector contributed negatively to the measure.
- Residential building permits remain somewhat below normal and thus make a negative contribution, but general improvement in the construction industry is bolstering employment. The labor force component continues to make a positive contribution to the household sector; the post-recession labor force decline may have come to an end.

Walden makes case for Internet freedom

Honorable Greg Walden Excerpts on Subcommittee on Communications and Technology Hearing on “Ensuring the Security, Stability, Resilience, and Freedom of the Global Internet”

I cannot overstate the importance of freedom of the Internet from government control. Nor can I overstate the threat from foreign governments who seek to control, tax, censor, and otherwise impose their own agendas on the Internet. That’s why the House has unanimously passed both a resolution and legislation that affirm our policy that the United States should promote a global Internet, free from government control.

I do hope the Senate takes up our latest measure with all due haste. Obviously, the administration’s proposal has sparked furious debate and brought together in opposition some interesting former combatants ranging from Karl Rove to Bill Clinton and Newt Gingrich. I called today’s hearing to get answers to exactly what the Obama administration is proposing and what it is not. Are the goals of security, stability, resilience and freedom of the Internet compatible with a multi-stakeholder managed Domain Name System? The multi -stakeholder model is a key part of the success of the Internet, with engineers, academics, public interest groups, and users collaborating in a bottom -up, non -governmental approach.

How TV networks embrace phone use during viewing

U.S. Chamber of Commerce

by Esther Shein

How often have you watched a TV show and wanted to look something up about an actor or find out more about a scene while you watch?

So has Zane Vella. As the former software developer sees it, timeline-based metadata is the “missing ingredient” from the consumer viewing experience.

Vella came up with the idea of building a cloud-based platform that would let TV networks and other content providers power interactivity through apps to further engage consumers while they watch shows, movies and commercials.

Facial recognition technology renews privacy concerns

Davis Dwight & Tremaine LLP
Oregon business law firm

Recent news stories have highlighted the negative privacy implications of facial recognition technology. For example, a new app for Google Glass will pair facial recognition with data from social media and dating sites, allowing users to instantly see personal information about strangers they pass on the street. (Though Google does not permit facial recognition software to be used on its Google Glass platform, the app could be used on jailbroken Google Glass devices.) Forbes reports that Senator Al Franken has written to the app developer to express deep concern and ask it to delay the app’s launch, or at least require people to opt in before their data is displayed to others. Meanwhile, the New York Times reports that some retail stores and airports already use facial recognition technology, and other such uses are on the way. The Times quotes Jessica Rich, director of the FTC’s Consumer Protection Bureau, as saying, “This is another reason that we need omnibus privacy legislation.”

A business outlook on 2014 Primary candidates

Associated Oregon Industries
Oregon’s largest business advocate

Two things.  First, would State Senator Betsy Johnson (D-Scappoose) face a primary challenge from the left? On some very key business, management, and environmental issues, Senator Johnson has joined with Republicans to block measures harmful to Oregon’s business community. With a slim 16-14 Democratic majority in the Senate, Senator Johnson’s vote is often the deciding vote. Many liberal groups have expressed frustration with Senator Johnson, but on filing day, no one emerged to challenge her on the Democratic ticket.

Second, would there be any unexpected legislators opting against running for re-election? There was only one – freshman Representative Ben Unger (D-Hillsboro) unexpectedly dropped out, creating an open seat in House District 29 (Hillsboro, Forest Grove). Other than Representative Unger, there were 14 retirements in the Oregon House (none in the Oregon Senate). None of the 14 retirements in the House are in particularly competitive swing districts.

Did any incumbents pick up a primary challenger?

Annual Sessions bad for business, Oregon

By Jan Meekcoms
Oregon NFIB

Just like Oregon, Wyoming voters were sold on the need for annual Legislative sessions. Unlike Oregon, Wyoming was wooed into annual sessions for the purpose of fine tuning the state budget and dealing with emergency matters – that’s all, just the budget and any emergency matters that might exist at the moment. Now that makes sense to me. You could even add technical fixes required of bills passed in the previous session. That would serve Oregonians well.

Instead, Measure 71, which was passed in November 2010 as a result of Senate Joint Resolution 41, changed Oregon’s Constitution from biennial sessions in odd-years with no limit to the length of session, to annual sessions of 160 days in odd-numbered years and 35 days in even-numbered years. Limits to the length of sessions – this is good. However, there is a rub – there were no limitations to the focus of the short session or what issues could be considered. The even-year 35-day session is a potential smorgasbord of issues both big and small with no sideboards.

Top Court rules on severance pay & taxes

By Bullard Law,
Portland law firm

BENEFITS UPDATE SEVERANCE PAY, EMPLOYMENT TAXES AND THE SUPREME COURT
Thomas Kramer,

Employers sometimes provide severance pay to departing employees, whether as part of a severance pay plan or policy, an individual separation agreement or to settle a dispute between the employer and the departing employee. While the recipient of the severance pay is a former, not current, employee, the payment is considered “wages” for Oregon and federal income tax and withholding purposes, and is reportable on IRS Form W-2 (not 1099 -MISC ).

Years ago, a dispute arose between employers and the Internal Revenue Service over whether severance pay also is “wages” subject to FICA (Social Security and Medicare) taxes and withholding. The Federal Circuit Court of Appeals in Washington D.C., agreeing with the IRS, held that severance pay is wages for FICA purposes. More recently, the Sixth Circuit Court of Appeals in Cincinnati, agreeing with an employer, Quality Stores, held that severance pay is not wages for FICA purposes. Notwithstanding the Sixth Circuit decision, we have generally advised employers to treat severance pay as wages for FICA purposes.