LOC News
LOC Identifies Key Bills for Remainder of Legislative Session
On April 13, the first critical deadline passed for the Legislature. If any legislation had not moved out of committee by April 13, it was effectively dead. The only exceptions are bills in the Rules, Revenue, or Joint committees, along with those in the Ways and Means Committee. The April 13 deadline helps narrow the LOC government relations (IGR) team’s focus for the remainder of the session.
Listed below are the top priority bills the LOC team has identified for the remainder of the session. These bills represent budget and policy priorities identified by the LOC and its many partners in the city lobby. The list also includes bills that the LOC and its many local government partners oppose. There are, of course, hundreds of other bills the LOC will continue to actively track as the session moves towards its scheduled June 27 closing date.
Behavioral Health Investment
HB 2086: Funding for Crisis Intervention and Behavioral Health
Creates policy objectives and allocates funds for crisis intervention, behavioral health (BH) and access to care. This legislation addresses the main deficiencies in our behavioral health and addicting treatment services.
HB 2980: Respite Centers
Allocates funds for peer run respite centers in geographic regions of the state to provide care for people experiencing distress from anxiety, depression, or other behavioral health issues. A lack of beds for people experiencing a crisis is a critical gap in Oregon’s BH system.
COVID-19 Economic Recovery
SB 282A: Tenant COVID Recovery
SB 282A extends the grace period for all tenants for repayment of back-rent to provide tenants sufficient time to repay debt accumulated during the pandemic and time to deploy state and federal resources for tenant and landlord rent assistance. The bill also continues the temporary 10-day non-payment termination notice to give tenants the possibility of finding rent assistance to avoid eviction and continues the prohibition on credit reports for rent debt protected by the moratorium or grace period.
SB 330: Landlord Tax Credit
Establishes an income tax credit for landlords equal to the amount of unpaid rent forgiven as a condition of accessing the Landlord Compensation Fund. It ensures property owners are treated with the fairness they deserve, while simultaneously providing certainty to tenants who carry significant debt with no obvious path towards repayment.
HB 2966 A: Commercial Rent Grace Period
As amended, extends rent repayment grace period to September 30, 2021 to give commercial tenants with rent arrearages time to access funding from Business Oregon’s Commercial Rent Relief Program and the resources from the American Rescue Plan.
HB 2343 A: Enterprise Zone Employment Flexibility
Creates a path for zone sponsors to temporarily waive enterprise zone employment requirements for businesses that have suffered COVID-19 related employment losses. Some traded sector businesses have had to reduce employment due to decreased demand, supply chain issues, or restrictions necessary for the public health. Without relief, these businesses could be subject to disqualification from the program and a claw-back of any tax savings from prior years.
Comprehensive Infrastructure Investment
HB 2344: Labeling of Wipes Products
This bill would require manufacturers of baby wipes, make-up wipes, cleaning wipes and other personal care wipes to adhere to a statewide labeling standard that would require product packaging to clearly indicate that such products should not be flushed down toilets. The legislation reflects an LOC policy committee recommendation, and aims to help alleviate some of the ongoing challenges associated with wipes and related products that are frequently flushed down toilets, resulting in costly impacts for wastewater infrastructure and staff.
In a 2020 report, the National Association of Clean Water Agencies has estimated that wipes result in an estimated $440 million per year in additional operational costs for wastewater utilities. And despite local investments in public education and outreach, numerous Oregon cities have continued to reach out to the LOC to express frustration over clogs in wastewater infrastructure that result from improper disposal of these products.
HB 5023: Business Oregon Budget
This bill is important for infrastructure dollars going through Business Oregon, which will oversee broadband project grants for infrastructure and planning. The LOC is hoping that the broadband office will become fully staffed and help with technical assistance and planning for smaller communities. Business Oregon’s budget also contains funds for water/wastewater projects, and the LOC supports the continued capitalization of the Special Public Works Fund to support key infrastructure projects. Other notable infrastructure investments in the Business Oregon budget include money for the Brownfield Redevelopment Fund and the Strategic Reserve Fund.
SB 5505: Bond Bill
The Governor’s Recommended Budget provides money for broadband (approx. $100 million) and other critical infrastructure through bonds and COPs. However, state statute must be amended to allow bonding of this nature. This funding is a high priority for the LOC.
Property Tax Reform
HB 2634: Senior Deferral
The proposed -2 amendment would extend the sunset for the senior deferral program, create an option for late application, increase access to the program in rural parts of the state, and ease application for surviving spouses and disabled heirs. Cities recognize the need for property tax assistance for our most vulnerable residents, and this bill will help keep Oregonians in their homes.
SB 299: Children’s Service Districts
The bill would create a new taxing district that would compete with cities for funding due to compression under Oregon’s Measure 5 property tax limitations. Cities lost 2.2% of tax revenues to compression in 2019-20, and this bill would only exacerbate those losses by allowing a new type of district with a new permanent tax rate.
Housing and Service Investment
HB 5011: Oregon Housing and Community Services (OHCS) Budget
In its 2021 legislative priorities, the LOC supports the OHCS budget bill, which will fund programs across the housing spectrum, from preventing and ending homelessness, to developing and maintaining affordable rental homes, to increasing access to and maintenance of affordable homeownership. Cities are committed to improving the housing opportunities and quality of life for the people they serve.
SB 5505: Affordable Housing Bonds
Among other important investments in SB 5505, the LOC supports inclusion of $250 million for LIFT affordable housing development, including 20% to build affordable homes for purchase, and $50 million for permanent supportive housing in Article XI-Q General Obligation bonds.
Water Utility and Rate Assistance
HB 3089 A: Drinking Water & Sewer Rate Assistance
HB 3089 was introduced at the request of the LOC and would establish a new state Public Drinking Water and Sewer Rate Assistance Fund. While there appears to be legislative support for HB 3089, it was sent to the Ways and Means Committee without recommendation. This is due to federal legislation that was recently approved and included federal funds for water utility assistance. The state is still waiting for federal guidance as to how those dollars will be distributed and prioritized, including how much Oregon will receive. If federal funds coming to Oregon are less than anticipated, HB 3089-A may become a vehicle to appropriate additional state dollars.
Disaster Relief and Recovery
Wildland Fire Policy – The two remaining priority wildfire bills for the LOC are SB 762 and HB 2722. The LOC will narrow its focus to improve legislative commitments from state agencies for a local process, identifying funding sources for local government costs that include likely changes to zoning and comprehensive plans. The LOC has been supportive of all primary policy bills moving forward into the Ways & Means process, where funding will be allocated and additional detail in policy guidance will be discussed.
HB 2247 A: Property Tax Delinquent Interest
Authorizes a county to waive delinquent interest on property taxes for the 2020-21 tax year for wildfire victims or businesses which demonstrate COVID-19 related losses. Cities count on timely receipt of property tax revenues but also recognize these are extenuating circumstances.
HB 2341: Wildfire Property Tax Proration
This bipartisan bill is the product of a workgroup, including the LOC, which began when the wildfires were still burning. HB 2341 changes the calculation of property tax proration so that owners see a tax benefit commensurate with their lost value due to damage or destruction from the fires. It also creates an authority for assessors to proactively prorate taxes when they are aware that a property has been destroyed.
HB 3127: Wildfire Recovery Resources
The LOC supports the broad funding package the Legislature is considering to support continued recovery in wildfire impacted communities, including infrastructure needs and approximately $27.5 million in financial assistance to expand capacity for local building & planning departments and cover fee waiver revenue losses.
HB 5042: Budget Reconciliation
The budget reconciliation bill includes numerous items of importance to cities, including: revenue backfill for cities affected by the 2020 wildfires; local technical assistance funding at the Oregon Department of Land Conservation and Development for wildfire rebuilding; funds for navigation centers to assist individuals and families access support services and permanent housing; funds to assist wildfire rebuilding efforts; funds for staffing and equipment for testing related to harmful algal blooms; and funding for Business Oregon to provide technical assistance to businesses and stand up a commercial rent relief program. The bill has passed both chambers and is awaiting the governor’s signature.
SB 405A/HB 2289-1: Nonconforming Use and Rebuilding Policies
SB 405A would allow for a nonconforming use to not be considered interrupted or abandoned by a city or county during the COVID-19 pandemic and other state of emergency declarations, enabling special community events to keep their permit status through the COVID-19 emergency. The measure would also, until September 30, 2025, allow commencement of restoration or replacement of nonconforming uses that were damaged or destroyed by the September 2020 wildfires. HB 2289-1 would similarly allow replacement of nonconforming uses for property owners to rebuild after the September 2020 wildfires and streamline some approval processes.
Organizational Priorities
Police Reform
Please note that these bills should be viewed as a package of police reform bills. While there may be one part of the legislation that will place a financial obligation on a city, other aspects provide cities long-term management tools that the LOC has been advocating for years.
HB 2162: Police Training Study
Directs the Oregon Department of Public Safety Standards and Training to study changes to police officer training and to provide results of the study to the Legislature no later than December 31, 2021.
HB 2513: Police Training – Airway Management
Requires police officers to be trained in airway and circulatory anatomy and physiology and certified in cardiopulmonary resuscitation.
HB 2928: Use of Chemicals by Law Enforcement
Regulates use of chemical incapacitants, kinetic impact projectiles and sound devices by law enforcement agencies.
HB 2929: Duty to Report
Modifies a police officer's duty to report misconduct.
HB 2930: Limitation on Arbitrators Decision Making
Imposes limitations on arbitrators' decisions concerning alleged misconduct by law enforcement officers. This legislation includes LOC supported arbitration reform.
HB 2932: Database of Physical Force
Directs the Oregon Criminal Justice Commission to establish statewide database of reports of use of physical force by peace officers and corrections officers.
HB 2936: Pre-Certification Prior to Training
Requires the Department of Public Safety Standards and Training to investigate person's character before accepting person for training and certification as police officer or reserve officer.
HB 3059: Repeal of State Statute
Repeals state statute, authorizing law enforcement officers to command dispersal of unlawful assemblies and arrest participants who do not disperse.
HB 3355: Law Enforcement Identification
Specifies identification required on uniforms of law enforcement officers working in crowd management.
HB 2015: Local Marijuana Tax Authority
Allows local governments to levy 10% local marijuana retail sales taxes, up from the current limit of 3%. Measure 110, which decriminalized small amounts of street drugs, will reallocate the state marijuana taxes to drug recovery programs. Cities are expected to lose 72% of their share of state marijuana taxes as a result. City revenues are already struggling due to the pandemic, and Measure 110 will make these problems worse. Cities need HB 2015.
HB 2478: Indefinite Attorney Client Privilege
Maintains attorney client privilege indefinitely, giving Oregon’s public agencies the same privilege as private sector legal counsel. Currently, public records exemptions expire after 25 years and courts are reviewing if this expiration applies to the attorney client privilege. Cities and public officials need the same frank and candid advice from their legal counsel as all other clients, and HB 2478 clarifies the statute and will keep genuine legal advice inviolate.
HB 2758: Public Health Positions at OLCC
The Oregon Liquor Control Commission needs additional resources to respond to the impacts of beer, wine and liquor on society.
SB 5530: Local Implementation Funding for Housing Legislation and Climate Mitigation Rulemaking
The Oregon Department of Land Conservation and Development (DLCD) budget bill includes funding requests that are critical to avoiding unfunded mandates for cities in the 2021-23 biennium. DLCD Program Option Package (POP) 110 includes $3.9 million for staff and local technical assistance funding to implement HB 2001 and HB 2003 (2019).
The 2019 Legislature enacted HB 2001 and HB 2003, which made landmark advancements in how local communities plan for and encourage needed housing and have the potential to overcome decades of exclusionary planning and development policies. However, this work cannot continue without funding to retain DLCD housing staff and provide critical local technical assistance grants in POP 110. Similarly, POP 112 includes $1 million to support cities and counties within the state’s metropolitan areas that will be directed to implement new Climate Friendly and Equitable Communities administrative rules in 2021, which aim to reduce climate pollution in the transportation sector and promote more affordable, equitable development. The Legislature must fund POPs 110 and 112 to prevent unfunded mandates on cities in the 2021-23 biennium.
HB 2740: Liquor Agent Compensation
An OLCC concept to increase agent compensation at liquor stores, thereby reducing revenues that would otherwise be distributed to the general fund and local governments. Liquor agent compensation is already up due to the Coronavirus pandemic, and the LOC is not aware of any stores closing due to profitability concerns. The OLCC came up with this revised formula in closed meetings, with only liquor store owners at the table. Asking cities to pay for this overly generous formula with no input is unfair.
HB 2204: Expanded Tort Liability
This legislation will significantly expand the number of police tort claims and require the payment of attorney fees. HB 2204 treats claims against police differently than claims against other city services, and would cost members of the CIS pool approximately $18 million per year.
Last Updated 4/16/21