LOC News

2026 Legislative Session Concluded – LOC Victories

The Legislature adjourned sine die at 4:17 p.m. Friday, March 6, ending the 2026 legislative session. In just 33 days, legislators considered 304 measures (bills, resolutions, memorials), proposed 599 amendments, held 299 public hearings and 414 work sessions in 279 committee meetings, and received 33,223 pieces of written testimony. In the end, 104 bills were sent to Governor Kotek’s desk for signature.

There’s a lot to unpack from this session. The LOC is expected to release its session summary report in early April. In the meantime, here are updates on priorities and some legislation impacting cities:

  • Revenue: The LOCAL Act (HB 4148) passed! Local governments that imposed a transient lodging tax after 2003 will have more flexibility in the use of that revenue beginning on January 1, 2027. This bill also contains reporting requirements on the use of those funds. Please monitor LOC communications channels for additional information on those requirements.
  • General Government:
    • The Oregon Government Ethics Commission package also passed! HB 4177  provides needed clarifications to Oregon’s open meeting laws. The law clarifies that information sharing, discussions of procedural matters and comments to the media and/or constituents are not a violation of law. HB 4161 clarifies food and beverage accommodations for public officials. Lastly, HB 4159 ensures there are local government perspectives considered with the inclusion of  a local government representative on the Oregon Government Ethics Commission.
    • SB 1517 addresses the impact of the Oregon Supreme Court's 2014 decision in Bagley v. Mt. Bachelor. The LOC was initially opposed to the bill as it was too narrow and supported SB 1593, but the latter bill was deemed too broad by legislative leadership. After several days of negotiation, a compromise was struck on SB 1517, and it passed with bipartisan support. While the bill falls short in some ways, we are hopeful that the framework starts to alleviate some of the strain and increased costs associated with offering recreational activities.​​​​​​​​​​​​​​​​​​​​​
  • ​​​​​​​​​​​​​​Land Use: HB 4035 and HB 4082 both passed, giving cities more flexibility when looking at options to expand their urban growth boundaries for housing using the process originally outlined in SB 1537 (2024). These bills are vital to allowing cities with land supply challenges to build needed housing.​​​​​​​
  • Infrastructure:
    • SB 1585 lowers grant matching requirements for cities on a sliding scale. Despite some uncertainty in the waning days of the session, the bill passed!​​​​​
    • HB 4005 created a “Water Professionals Appreciation Week” and was signed into law by Governor Kotek on March 5. This designation encourages public water and wastewater agencies to offer tours, open houses and other events to educate Oregonians on the important functions of those agencies, encouraging people to consider careers in this critical field.

The LOC’s last weekly legislative update webinar will occur today (March 13) on Zoom and will recap what passed during this session. To join the conversation, watch past updates, or review presentations, visit the LOC website.

Contact: Nicole Stingh, Legislative Director – nstingh@orcities.org

Last Updated 3/13/26

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