2024 Legislative Session – A Successful Short Session for BOMA

Housing and Measure 110 discussions dominated the short, 35-day Legislative Session.  Just days before the session began, the Oregon Supreme Court ruled on the constitutionality of Measure 113, which disqualified legislators with ten unexcused absences from floor sessions from holding next term of office, sparking rumors of another walk out.  However, for the most part, it was a congenial session.  The Republicans did not walk out, priorities were paired down, deadlines passed, and bills passed.

When Oregon moved to annual sessions, the goal of the short session during even numbered years was to balance budgets; however, they are becoming more and more policy driven in recent years.  We saw topics ranging from greenhouse gas emissions to drug enforcement on buses.

Perhaps one of the largest feats was tackling Measure 110, the measure that reclassified possession/penalties for specified drugs, in 35 days. The debate around a full repeal versus a fix lasted most of the session, but in the end, legislators found a compromise as there was a strong consensus that something had to be done with our homelessness, mental health, and opioid crises.

The Governor’s priority bills, SB 1530A and 1537A, originated as $500 million devoted to programs and infrastructure to support increased housing needs.  The bill was paired down to $350 million for housing programs ($250 million) and infrastructure ($100 million).  The remaining money went into the Christmas Tree Bill (the vehicle with agency budgets and capitol construction projects).

BOMA also held two advocacy days at the Capitol with BOMA Board Members and members of the Government Affairs Committee.  This was an excellent opportunity for members to meet their legislators and showcase all of the wonderful things BOMA does and share its economic development influence on the Portland Metro Region and beyond.

The session wrapped up on Thursday, March 7 at approximately 8:30 pm. All in all, it was a successful session for BOMA, and we look forward to a productive interim as we ramp up for the 2025 Legislative Session.

Building Owners & Managers Association Priorities

The Association’s Legislative Team tracked a couple dozen bills during the 2024 Legislative Session, on various issues affecting BOMA interests.  You may access the BOMA’s 2024 Bill Tracking program on its website at http://www.bomaoregon.org/advocacy/.

BOMA would like to thank the Legislative Committee members and the Board whose collective efforts helped enhance the Association’s credibility and effectiveness in the Legislative arena.  Below is a list and explanation of some of the tracked bills:

Priority Bills

Measure 110 Fix

SB 4002A – Passed

This bill would put in place a new misdemeanor charge for drug possession, a move intended to motivate people to enter treatment with an estimated $211 million in funding for courts, community mental health providers, treatment programs, new “shovel-ready treatment facilities” and other clinics and services. The bill’s intention is to help people avoid criminal charges and keep them out of jail unless they violate their probation.

The bill would unwind a key provision of the voter-passed Measure 110, which decriminalized possession of small amounts of hard drugs and enact a system of $100 citations that a person could avoid if they obtained a health assessment. The bill would keep intact the measure’s provision that puts a share of cannabis revenue toward addiction services and programs.

The bill would create an unclassified misdemeanor that would carry potential jail time of up to 30 days for probation violations or up to 180 days when a defendant’s probation is revoked. But they could get an early release from jail if they entered inpatient or outpatient treatment.

Suspects caught with illegal drugs for their own use would be offered a chance to enter a deflection program to avoid jail and a record.

The proposal would give counties the option to build their own deflection programs instead of making them mandatory statewide.

Republicans unsuccessfully tried to introduce amendments that would have changed the bill with longer jail sentences and different paths for treatment.

In the end, Republicans who fought for tougher misdemeanor penalties recognized that a compromise is better than nothing.

Governor’s Housing Priority Bills

HB 1530 - Passed

The measure appropriates $258 million for the implementation of various state programs.

• To Oregon Housing and Community Services:
  • $65 million for emergency shelters
  • $40 million for the Oregon Eviction Diversion and Prevention and Eviction Prevention
• Rapid Response programs and services administered by culturally responsive organizations
  • $10 million to acquire land for affordable housing
  • $5 million for individual development accounts
  • $2 million to support residents whose housing is being withdrawn from publicly supported housing, or is within a manufactured dwelling park being sold or closed
• To the Oregon Department of Administrative Services:
  • $100 million for infrastructure projects supporting housing development
  • $1 million for a nonprofit to donate reused household goods and furnishings to low-income residents
• To the Oregon Health Authority:
  • $18 million for recovery housing projects
  • $7.5 million for the Healthy Homes Repair Fund
  • $3.5 million for the Air Conditioner and Air Filter Deployment Program
• To the State Department of Energy:
  • $4 million for the Residential Heat Pump Fund
• To the Department of Human Services:
  • $2 million for emergency warming or cooling shelters

HB 1537A – Passed

The measure establishes the Housing Accountability and Production Office (HAPO) and directs HAPO to assist local governments with housing production. The measure requires local governments to grant land use regulation and design adjustments in certain circumstances and modifies the definition of limited land use decisions. It allows housing permit applicants to opt in to amended housing regulations and expands eligibility of prevailing applicants for housing development to receive attorney fees in a Land Use Board of Appeals review. Establishes the Housing Infrastructure Support Fund to provide capacity and support to municipalities for the planning and financing of infrastructure for housing unit production. Establishes the Housing Project Revolving Loan Fund to cover eligible developer costs, including infrastructure and system development charges, predevelopment costs, construction costs, and land write-downs. The measure allows cities to undergo either a one-time urban growth boundary amendment or a land exchange in specified conditions.

Battery Energy Storage System 

HB 4015 – Passed 

Defines “Battery energy storage system” (BESS) as an energy storage system that, other than for personal, noncommercial use: (a) collects energy from the electric grid or an energy generation facility; (b) uses rechargeable batteries to retain and store the energy for a period of time; and (c) discharges the energy after storage to provide electricity when needed. Allows a separate site certificate to not be required for a BESS when sited in conjunction with another energy facility. Permits a BESS developer to defer regulatory authority to the Energy Facility Siting Council to obtain a site certificate for a BESS. This bill passed at the end of session.

Planned Fires

HB 4016A – Passed 

The Act makes certain changes to a program for planned fires. The Act directs an agency to extend the deadline for a grant program for protecting homes from fire. The Act directs agencies to report on creating a program for protecting homes from fire. The Act creates a fund related to responding to wildfire smoke. BOMA tracked this bill in the event language was inserted into the bill regarding HVAC systems; fortunately, that did not happen.

Mental Health and Substance Use Care Study. 

HB 4023A – Passed

This bill requires the Oregon Health Authority to study the problems in getting mental health care and substance use care in Oregon. The Act requires the OHA to send a report on its findings to the legislature. The section is repealed on January 2, 2026.

Corporate Activities Tax (CAT) Revisited

SB 1542 & HB 4055 – Failed

This bill raises the exemption and filing thresholds for the CAT tax beginning with the tax year 2025. This bill also increases the exempt amount and the filing threshold for purposes of the corporate activity tax.  Applies to tax years beginning on or after January 1, 2025. BOMA is closely tracking anything tax related that would impact BOMA members. This bill is currently in Revenue and received a hearing on February 12.  These bills died.

Unincorporated Urban Planning

HB 4063B – Passed

The measure incorporates planning responsibilities for unincorporated areas of Metro into the Oregon Housing Needs Analysis. It allows applicants for the development of housing to opt-in to amended development regulations. It removes statutory language prohibiting buyer-provided non-customary documents in a real estate transaction. It allows middle housing partitions to be further partitioned during the same calendar year. It allows a city to administratively approve or terminate an eligible property tax exemption for single-unit housing. It clarifies language regarding Metro and the Oregon Housing Needs Analysis.

Electric Micromobility 

HB 4067A– Failed

Creates the Task Force on Electric Mobility. Defines "electric micromobility devices" to include small, wheeled vehicles operating at speeds below 30 miles per hour; devices to serve a wide range of user needs, including freight delivery; and devices such as electric assisted bicycles, electric personal assistive mobility devices, electric wheelchairs or scooters, motor assisted scooters, or mopeds. Directs it to review existing state laws related to micromobility and personal mobility devices; review whether safety and education requirements should be required; examine how best to use micromobility devices to promote equity, safety, and climate goals; examine best practices for micromobility devices; examine statutory definitions; address commercial use of micromobility devices; examine education and certification programs; and seek input from a broad range of community partners. Defines "electric micromobility device." Requires the Task Force to submit a report to the Joint Committee on Transportation by December 1, 2024. Sunsets December 31, 2024.

Agencies and Clean Energy Companies

HB 4112A – Failed

This bill tells the Oregon Business Development Department to make rules that say how the agency will buy products and services from clean energy companies.  It allows the agency work with other government bodies to help create and keep jobs in this state. The bill also creates a fund for another state agency to make loans and grants to clean energy companies and projects that give certain benefits to people in this state. Finally, it sets up a group to give advice to the second agency.  

Opioid Addiction in Custody.

HB 4120 – Failed

The bill would have created a grant program to help some people in custody with opioid addiction. The Act gives money to a state agency to fund the grant program. The Act tells the state agency to give a report to the state legislature by December 1, 2024. This bill did not receive a public hearing and died in committee.

Industrial Hemp Operations

HB 4121B– Passed

The measure reinstates laws directing or allowing inter-agency collaboration for inspections and enforcement of industrial hemp operations. It directs the Oregon Liquor and Cannabis Commission (OLCC) to establish a registration program for industrial hemp products that contain cannabinoids for human or animal consumption and sets minimum labeling requirements and packaging prohibitions. The bill allows temporary permits for cannabis licensee and laboratory workers. It directs the OLCC to establish minimum standards for minor decoy operations for sales of adult use cannabinoid products. The bill also sets per capita limits on marijuana production, retail, processor, and wholesale licenses.

Interfering with Public Transportation

SB 1553 – Passed

The bill requires the Oregon Health Authority to study Oregon's addiction crisis. Directs the authority to submit findings to the interim committees of the Legislative Assembly related to health not later than September 15, 2025.

Greenhouse Gas Emissions

SB 1559 - Failed                                                   

Declares it is the policy of the state to reduce greenhouse gas (GHG) emissions consistent with practices to limit global warming to 1.5 degrees Celsius. Adds additional GHG reduction goals by 2030 achieve levels that are at least 45 percent below 1990 levels and achieve levels that are at least 70 percent below 1990 levels by 2040. Adjusts 2050 goal to achieve greenhouse gas levels that are at least 95 percent, rather than 75 percent, below 1990 levels. Establishes aspiration of state to achieve net zero emissions as soon as practicable, but no later than 2050, and to maintain net negative emissions thereafter. Directs Oregon Climate Action Commission to track and evaluate progress toward net zero emissions goals and net negative emissions goals and make recommendations to Legislative Assembly for updating those goals based on the best available science. Changes term “global warming” to “climate change.”

Other Bills of Interest

Carbon Sequestration on Natural and Working Lands

SB 1525A- Passed

The measure modifies certain reporting timelines for the Oregon Department of Energy (ODOE): (1) natural and working lands net biological carbon sequestration and storage inventory report, (2) study on workforce and training needs to support natural climate solutions on natural and working lands, (3) nonbinding biological carbon sequestration and storage goal for Oregon’s natural and working lands; and (4) energy security plan. The measure transfers money in the Heat Pump Deployment Fund to the Residential Heat Pump Fund and requires that moneys be used in regions and for members of federally recognized Indian tribes for which no eligible entity has been issued a grant under the Heat Pump Deployment Fund. The Act authorizes ODOE to release up to 30 percent of additional money from the Community Renewable Energy Grant Program provided for in a performance agreement if the applicant demonstrates certain requirements have been met. Senate Bill 1525 A expands the exemption from obtaining a site certificate from the Energy Facility Siting Council to allow a standby generation facility that is electrically capable of being interconnected to the grid but is dispatched by local transmission and distribution grid operator or balancing authority to support grid reliability.

Contractor Duties

SB 1573 - Failed

The Act affects the duty of some contractors with respect to some workers' unpaid wages.  It would have made a contractor jointly and severally liable in civil or administrative action for unpaid wages of unrepresented employee of subcontractor at any tier. Provides a statute of limitations for actions regarding recovery for unpaid and overtime wages.  Finally, the bill would have required the subcontractor to provide certain payroll records and other information to contractor upon request. Permits contractor to withhold payment to subcontractor under certain circumstances. This bill did not have a public hearing and died in committee.

This report has been prepared by BOMA’s Government Affairs advocate Nellie deVries