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Public hearing on HB 3588: bill would study business registration rules after USPS change affecting co‑working addresses
Summary
Lawmakers held a public hearing on HB 3588 after witnesses from multiple co‑working spaces said a USPS change reclassifying shared‑mail services as CMRAs has prevented legitimate small businesses from using coworking addresses to register in Oregon.
Representative Rob Noss opened the public hearing for House Bill 3,588 and said the bill (an amendment was pending) would address an unintended conflict between U.S. Postal Service rule changes and Oregon business registration rules. Noss described a constituent whose co‑working facility began to be classified as a CMRA after a USPS definition change, and who then could not complete Secretary of State business registrations using the co‑working address.
Noss explained that Oregon law was tightened in 2017 to prohibit businesses from registering with a CMRA address to prevent fraudulent shell companies. Because the Postal Service broadened the CMRA definition in 2023, co‑working spaces, shared office suites and similar businesses are now sometimes classified as CMRAs, which has blocked legitimate businesses that use those spaces as their principal place of business from registering without listing a private home address.
Multiple witnesses testified remotely about operational impacts: - Sarah O'Dendahl, co‑owner of Work Collective in Bend, said Work Collective has more than 200 members and that 70-plus members use the shared address for mail. She said the facility complies with USPS requirements, performs in‑person identity verification on form 1583, and that the CMRA classification has prevented members from registering or renewing state licenses. - Tayah (T.) Godfrey, owner of BizCube in Gladstone, described the Secretary of State workaround of filing paper registrations with membership agreements attached and said many members are unwilling to undertake that extra work; she said coworking businesses are staffed during business hours and often serve as the primary professional address for small businesses. - Calista Ewer, community manager at Work Collective, and Mac Reinhardt, co‑owner of Bright Side Coworking, described members who canceled memberships or paid for registered-agent services after being blocked from using coworking addresses for registration; Reinhardt said Bright Side specializes in space for mental and behavioral health professionals using private offices for confidential client sessions.
Witnesses said they comply with USPS requirements, including completing and retaining form 1583 and quarterly reporting, and argued that co‑working operators are not the bad actors targeted by the 2017 rule.
Committee members asked procedural questions about whether Oregon is unique in its restriction and whether a targeted technical fix or repeal of the 2017 restriction would be appropriate. Representatives said an amendment was forthcoming from legislative counsel and the Secretary of State’s office, and the committee closed the hearing without taking immediate action.
