LOC News
2023 Session Ends This Weekend
How it Started
From day one the session was going to look different, with an entirely new leadership group that included Senate President Rob Wagner, House Speaker Dan Rayfield, and Governor Tina Kotek. The other new visual was the physical space limitations in the Capitol due to ongoing construction. Only the House and Senate wings had public access, along with the corridors between the committee rooms and the rooms themselves. Finally, for two-thirds of the legislative body, it’s either their first session, or they have not worked during an in-person session. There were a lot of unknowns going into session, but also some solid messaging between the caucuses, with both the Democratic and Republican leadership sharing some priorities. The House leadership even held a joint press conference, laying out the shared priorities.
The LOC entered the session with a robust set of eight priorities. These priorities represented the outcomes of the development process undertaken by seven policy committees and then voted on by the membership. There was a significant amount of overlap from the LOC’s membership.
How it Ended
On May 3, Senate Republicans walked out, and in the process denied the Senate Leadership a quorum. This walkout was done to prevent Democratic leadership from advancing two key bills: HB 2002 (women’s reproductive health, and gender-affirming care) and HB 2005 (gun safety). The walkout lasted six weeks, and enough Republicans agreed to return to allow the legislative process to proceed on June 15. The negotiations between House and Senate leadership and Governor Kotek were intense during the last couple of weeks of the walkout. The public terms of the agreement focused on amending HB 2002 and HB 2005, along with dropping Measure 33, which would have asked voters to enshrine protections for abortion, same-sex marriage, and transgender care in the Oregon Constitution. More details of the negotiations can be found here. Once a quorum was available, the Senate started advancing more than 400 pieces of legislation, including budget bills and policy bills.
It is too soon to gauge the LOC’s success for this session, which was challenging and very tough for local government priorities for multiple reasons. The LOC team will continue to advocate for city priorities through the interim, with a focus on educating state leaders about the critical services that cities provide. In addition, our work will focus on assuring state leaders that local governments are accountable partners, and more importantly, that cities need more resources to produce the outcomes that state legislators want to achieve.
In order for the LOC to be successful in implementing our member’s priorities, we are going to need the help of all cities to invest time with their state legislators and provide them with local government education. City leaders will need to engage legislators in their communities, bring them into the local budget development process, invite them to city council meetings, and show them the critical projects or areas of concern in your community. For some cities, this process may need to start with “Cities 101,” while for others, the legislators may simply need a refresher at the 300-level.
LOC Did Find Success
Please note that the following is just a quick snapshot of the LOC’s advocacy. Session is not officially over at the time of this writing, and bills that have passed may not all have received Governor Kotek’s signature. The LOC will have a more comprehensive summary in the coming weeks. IGR team members will be making the rounds starting in July at LOC Small Cities Network meetings and will be hosting a final legislative session webinar on July 14 for a download on the session.
Housing and Homelessness
Housing was a top priority for both parties this session, as well as the governor, who signed three executive orders aimed at tackling the state’s housing and homelessness crisis by: declaring a homelessness state of emergency; setting an ambitious state target to increase home construction; and directing state agencies to prioritize reducing and preventing homelessness in all areas of the state.
In response, the Legislature passed a homeless funding bill early in the session (HB 5019), which included: $155 million to rehouse 1,650 Oregonians; prevent homelessness for 8,750 households; and expand shelter capacity by 700 beds by the end of 2023.
Broadband & Cybersecurity
HB 3201 – HB 3201 aligns state statute to maximize Oregon’s ability to capture federal broadband funding. It provides the necessary flexibility and alignment to ensure cities can take full advantage of up to $900 million in federal broadband funding. The bill passed out of the Senate on June 23 and heads to the House for a concurrence, where it’s expected to pass.
HB 2049 – HB 2049 creates the Cybersecurity Center of Excellence that will be housed at Portland State University (PSU), with joint administration between Oregon State University (OSU) and the University of Oregon (UO). The center will provide cyber-related assistance to local governments, while training the cyber workforce for the future through hands-on experience which supports local governments.
Transportation
HB 2095 – It may have taken multiple sessions, but we were successful in extending fixed and photo radar authority to all cities. In addition, flexibility was added to local speed setting authorities, which will now allow up to a 10-mph adjustment to local street speed.
HB 2101 – After nearly two years of working with the Oregon Department of Transportation (ODOT) and the Association of Oregon Counties (AOC), a fix was achieved. Specifically, $35 million will be taken off the top of ODOT’s State Highway Fund share and transferred to cities and counties that are part of the fund exchange program.
Economic Development
SB 4 – With a Joint Committee on Semiconductors in place, Oregon started the process of preparing a semiconductor package in response to a $52 billion investment from the federal CHIPS Act. More than 30 states will be competing for federal funding to entice semiconductor investments. Despite recommendations from a Semiconductor Task Force, not all elements of the recommendations made it across the finish line. As a result, there will be continued advocacy to build on what Oregon has to offer.
HB 2009 – A key element of the semiconductor package was sunset extensions for Oregon’s most significant economic development tools: SIP-Gainshare and enterprise zones for rural and urban communities. In addition, a tax credit for Research and Development is a crucial component. While the final language that passed the two legislative chambers this week was not ideal, the collection of these economic development programs still presents an important part of local government incentives. For more details see this week’s article on HB 2009.
Water Quality and Infrastructure
HB 2010 – The Bipartisan Drought Relief and Water Security Package (BiDRAWS) achieves the following:
- Funds the costs of actions supporting place-based integrated water resources planning;
- Directs the Legislative Policy and Research Office (LPRO) to report funding opportunities to assist low-income drinking water, wastewater, and stormwater ratepayers; and
- Provides $1 million for the Oregon Association of Water Utilities to provide technical, financial, and managerial support and resources to small and very small community water systems.
HB 5030 – Infrastructure financing and resilience priorities in the lottery bonding bill put $30 million in the Special Public Works Fund, providing low-cost financing to cities for planning, design, and construction of utilities and facilities essential to industrial growth, commercial enterprise, and job creation.
Contact: Jim McCauley Legislative Director jmccauley@orcities.org
Last Updated 6/23/23