Bills to Watch

Public Contracting

HB 2252 – Prevailing Wage Rate Study Bill
HB 2252 would require the state to conduct a study on prevailing wage rates and the method for determining wage rates. The LOC supports this bill as an alternative to the concepts that have been proposed through HB 2419 and SB 493.

HB 2324 – Prevailing Wage Requirements for Private Projects
HB 2324 includes language that would require private construction project owners to abide by public prevailing wage laws if the project owner receives a tax credit or exemption of $750,000 or more. Similar legislation has been introduced in previous legislative sessions. The LOC opposes this specific provision in the bill as it may diminish the effectiveness of local incentive programs.

HB 2597 – Reduces Prevailing Wage Regions from 14 to 5
HB 2597 would consolidate prevailing wage regions from 14 to five . These regions are used to determine prevailing wage rates and to ensure that prevailing wage rate determinations reflect local economies and wage rates for construction. The LOC will oppose this legislation, as the proposed consolidation will group many rural parts of the state with larger, urban areas. The LOC believes it is imperative that the Legislature engage in a transparent and data-driven process prior to proposing changes to existing regions.

HB 3082 – Threshold Change for Competitive Bid Requirements
HB 3082 was requested by members of the Oregon Public Purchasing Association and would increase the statutory threshold that dictates when a public contracting agency must use a competitive bidding process for public improvement contracts (ORS 279C.335). The current threshold is $5,000 but is inconsistent with a similar threshold in ORS 279B.065 for the procurement of goods and services. Passage of HB 3082 would result in the same$10,000 threshold for both goods/services and public improvements. The LOC is supportive of this bill as it will provide consistency for procurement processes.

SB 639 – Prevailing Wage Rate Threshold Increase
SB 639 would increase the project threshold for application of prevailing wage rate requirements from $50,000 to $64,000 and establish a mechanism for future threshold increases based on consumer price index. The current project threshold of $50,000 hasn’t been increased since 2005. The LOC supports this legislation.

Water/Wastewater

HB 2310 – Water Pipe Preemption
HB 2310 was initially introduced during the 2020 legislative session. The LOC strongly opposed the bill last year, and remains opposed this session. HB 2310 would preempt local governments from adopting design specifications that preclude the use of certain piping materials if those materials meet certain national design standards for drinking water/wastewater applications. The preemption would only apply to projects in which state funds are directly or indirectly used. When overlayed with existing public contracting laws, HB 2310 could result in a city being required to use a piping material that it knows will not work for a specific project, or to instead forego accessing state funding to avoid the mandate. There are many reasons why cities may have design standards that specify the type of piping materials used for water projects, including seismic considerations, soil conditions, and efforts to mitigate against wildfire impacts.

HB 3090 – Septic Loan Program Funding
The Oregon Department of Environmental Quality estimates that there are more than 450,000 septic systems currently in use across the state. Each year, it is estimated that 10% of septic systems will fail – resulting in significant water quality and public health impacts. HB 3090 will provide $2 million from the state General Fund to the Septic Loan Program for the repair or replacement of failing residential or commercial septic systems. The loan program also provides funding for connection to a public/municipal sewer system if that system is available to a homeowner. Since its inception in 2016, this program has invested $3.7 million to repair, replace or connect 186 failing septic systems in 91 communities across the state. Many of the loans have gone to low-income individuals and families. Without the funding proposed in HB 3090, the program will no longer be able to make loans to low-income individuals with failing septic systems.