CITY OF PORTLAND

2018 State Legislative Report CITY OF PORTLAND COUNCIL

Mayor Ted Wheeler Commissioner Amanda Fritz Commissioner Nick Fish Commissioner Dan Saltzman Commissioner Chloe Eudaly

City Auditor Mary Hull Caballero

Prepared by the Office of Government Relations State Legislative Team – 2018 Legislative Session

Elizabeth Edwards, Director Dan Eisenbeis, State Government Relations Manager Eric Noll, Associate Lindsay Huddleston, Salem Assistant TABLE OF CONTENTS | i

INTRODUCTION ...... 5

ADDICTION AND MENTAL HEALTH SB 1539 | Psychiatric Access Line Expansion (OPAL-A) ...... 8 SB 1555 | Oregon Marijuana Account Funds for Community Mental Health ...... 8 HB 4137 | Alcohol and Drug Policy Commission Statewide Plan ...... 8 HB 4143 | Addressing the Opioid Epidemic ...... 8 HB 5201 | State Budget Reconciliation: Mental Health and Addiction Services ...... 9

BUILDING CODES HB 4086 | Third Party Building Inspectors ...... 10

CANNABIS SB 1544 | Illegal Marijuana Market Enforcement Grant Program ...... 11 SB 1555 | Oregon Marijuana Account Funds for Community Mental Health ...... 11 HB 4089 | Industrial Hemp ...... 11 HB 4110 | Special Event License ...... 11

CIVIL LAW HB 4008 | Plaintiff’s Damage Protection ...... 12 HB 4088 | Music Licensing ...... 12

CONSUMER PROTECTION SB 1551 & HB 4147 | Breach of Data Security ...... 13

ECONOMIC DEVELOPMENT SB 1516 | Small Business Expansion Loan Program ...... 14

EDUCATION HB 4066 | Early Childhood Equity Fund ...... 15 HB 4113 | Class Sizes as a Mandatory Subject of Collective Bargaining ...... 15 HB 4117 | Portland Public Schools Levy Funding Fix ...... 15

ELECTIONS SB 1510 | Elections Law Updates ...... 16 SB 1512 | National Popular Vote ...... 16 HB 4076 | Small Donor Elections ...... 16 HB 4158 | Paid Postage for Returning Ballots ...... 16

EMERGENCY MANAGEMENT SB 1518 | Emergency Preparedness, Response, and Recovery ...... 17 HB 4004 | Oil Train Spill Prevention and Emergency Response ...... 17 HB 4025 | Economic Resilience Study ...... 17 HB 4090 | Incentives for Increasing Regional Foodstuff Supplies ...... 17 HB 4152 | Multnomah and Hood River County Wildfire Recovery Grants ...... 17

City of Portland 2018 Legislative Report TABLE OF CONTENTS | ii

ENERGY SB 1519 & SB 1537 | Oregon Energy Commission & Statewide Strategic Energy Plan ...... 18 HB 4121 | Contractor Incentive for Residential Energy Improvement Projects ...... 18 HB 4148 | Oregon Energy Board ...... 18

ENVIRONMENT SB 1507 & HB 4001 | Clean Energy Jobs ...... 19 SB 1508, SB 1541 & HB 4002 | Cleaner Air Oregon...... 19 SB 1509 & HB 4003 | Diesel Emissions ...... 20 HB 4015 | Oregon Conservation and Recreation Fund ...... 20 HB 4099 & HB 4138 | Motorboat Erosion Impact ...... 20 HB 4109 | Carbon Sequestration Study...... 21 HB 4126 | Household Hazardous Waste Product Stewardship Program ...... 21 HB 5201 | State Budget Reconciliation: Carbon Policy Office, Air Quality Permits ...... 21

ETHICS HB 4077 | Statements of Economic Interest ...... 22

EQUITY SB 1563 | Tuition Equity Disconnect from Federal DACA Program ...... 23 HB 4140 | Impact of Disposition of a Criminal Action on Immigration Status ...... 23

GENERAL GOVERNMENT SB 1515 | Children’s Service Districts ...... 24 SB 1542 | Start Date of Long Legislative Sessions ...... 24

HEALTH CARE HJR 203 | Constitutional Right to Health Care ...... 25 HB 4005 | Prescription Drug Price Transparency Act ...... 25

HOUSING AND HOMELESSNESS SB 1556 | Mortgage Electronic Registration System ...... 26 HJR 201 | Local Government Bonding Authority for Affordable Housing ...... 26 HJR 202 | State Bonding Authority for Affordable Housing ...... 26 HB 4006 | City Plans for Reducing Severely Rent Burdened Households ...... 26 HB 4007 | Document Recording Fee to Fund Affordable Housing ...... 27 HB 4010 | Task Force on Addressing Racial Disparities in Homeownership ...... 27 HB 4054 | Improving Coordination Between ODOT and City of Portland ...... 27 HB 4085 | Award of Attorney Fees to Prevailing Party in Landlord-Tenant Law ...... 28 HB 4108 | Tax Credit for Newly-Constructed Single-Family Dwellings ...... 28 HB 4134 | Removal of Discriminatory Property Covenants...... 28 HB 5201 | State Budget Reconciliation: Shelter Funding ...... 28

HUMAN RESOURCES AND BENEFITS HB 4103 | Mail Order Pharmacy Prescriptions...... 29 HB 4151 | Bulk Prescription Drug Purchasing ...... 29 HB 4156 | Limit Formulary Changes ...... 29

City of Portland 2018 Legislative Report TABLE OF CONTENTS | iii

LAND USE HB 4031 | Land Use Omnibus; ADUs in Areas Zoned for Single-Family Dwellings ...... 30 HB 4034 | ADUs in Areas Zoned for Single-Family Dwellings ...... 30 HB 4075 | Washington County Rural and Urban Reserves...... 30 HB 4124 | Remand of County Land Use Decisions ...... 30

LIQUOR SB 1564 | Distillery Tasting Room License ...... 31

PUBLIC CONTRACTING SB 1565 | State Agency Procurement Pilot Programs ...... 32 HB 4127 | Qualification Based Selection ...... 32 HB 4128 | Business Certification Requirements ...... 32

PUBLIC EMPLOYEE RETIREMENT SYSTEM (PERS) SB 1546 | OPSRP Vesting for Judges ...... 33 SB 1561 | State Cost Containment and PERS Unfunded Actuarial Liability Reduction ...... 33 SB 1566 | Employer Incentive Fund ...... 34 HB 4012 | Reemployment of Retired PERS members in Career Technical Education ...... 34 HB 4070 | PERS Benefits Reform ...... 34 HB 4112 | PERS Oregon Income Tax Remedy Payments ...... 35 HB 4115 | Retirement Plan Options for Statewide Elected Officials and Judges...... 35 HB 4131 | Termination of PERS Pension Benefit Accrual ...... 35 HB 4159 | Individual Account Plan Investments ...... 35

PUBLIC SAFETY SJM 201 & SJM 202 | Resolution Urging Congress to Regulate Bump Stocks ...... 36 SB 1531 | Law Enforcement Mental Health Sessions ...... 36 SB 1543 | Public Safety Omnibus ...... 36 SB 1562 | Strangulation as a Felony ...... 36 SB 5703 | Lottery Fund Allocation: DPSST Training Classes ...... 37 HB 4049 | SAFE Kit Testing & Tracking System...... 37 HB 4055 | Hit and Run...... 37 HB 4056 | Scholarship Funds for Children of Law Enforcement Officers ...... 37 HB 4145 | Gun Safety: Close the Intimate Partner and Stalker Loopholes...... 38 HB 4149 | Plea Petitions...... 38 HB 4161 | Vehicle Theft ...... 38

TAXATION AND FINANCE SB 1523 | Interstate Broadcaster Tax Apportionment ...... 39 SB 1528 | Oregon Connection with Federal Tax Law: Oregon Tax Rates, Exemptions, Credits...... 39 SB 1529 | Oregon Connection with Federal Tax Law and PERS Fund Capitalization ...... 39 HB 4028 | Tax Credits: Affordable Housing; Film Production ...... 40 HB 4074 | Escheat of US Savings Bonds ...... 40 HB 4080 | Oregon Connection with Federal Tax Law ...... 40 HB 4091 | Public Corporation for Secure Cash Storage ...... 40 HB 4120 | Transient Lodging Tax Intermediaries ...... 41 HB 4139 | Heavy Equipment Construction Excise Tax...... 41

City of Portland 2018 Legislative Report TABLE OF CONTENTS | iv

TRANSPORTATION SB 1506 | Wounded Warrior Parking Permits ...... 42 SB 1538 | Probationary Driver Permits ...... 42 HB 4022 | Electric Vehicle Infrastructure ...... 42 HB 4059 & HB 4060 | Transportation Package Policy Fixes ...... 43 HB 4062 | Stolen License Plates ...... 43 HB 4063 | Autonomous Vehicles Task Force ...... 43 HB 4064 | Multnomah County Bridge Funding ...... 44 HB 4111 | REAL ID Fees and DACA Driver Card Renewal ...... 44 HB 4116 | Mobile Electronic Devices ...... 44 HB 4130 | Student Transportation ...... 44

UTILITIES AND TELECOMMUNICATIONS HB 4023 | Oregon Broadband Advisory Council ...... 45 HB 4027 | Gigabit Property Tax Exemption Repeal ...... 45 HB 4155 | Net Neutrality ...... 45

WATER AND WASTEWATER SB 1558 | Water Rights Transfer ...... 46

WORKFORCE SB 1535 | Calculation of Benefits for Temporary Total Disability ...... 47 HB 4041 | Task Force on Workforce Development for People with Disabilities ...... 47 HB 4042 | Prosperity 1,000 ...... 47 HB 4093 | Winterhawks Amateur Athletes ...... 47 HB 4098 | Apprenticeship Opportunities for Veterans ...... 47 HB 4144 | Construction Contractor Licensing ...... 48 HB 4154 | Construction Subcontractor Employee Wages...... 48 HB 4160 | Paid Family Leave ...... 48

INDEX ...... A

City of Portland 2018 Legislative Report INTRODUCTION | 5

INTRODUCTION Portland City Council approved its 2018 State Legislative Agenda on December 13th, 2017 in preparation for an active 2018 short legislative session. Like previous sessions in even-numbered years, the 2018 session was constitutionally limited to 35 days. Legislators also imposed strict limits on the number bills that could be drafted: Senators were each allowed a single bill draft, Representatives were allowed two bill drafts, legislative committees were allowed three bill drafts, and the Governor and Chief Justice were limited to five bill drafts apiece. The City of Portland identified eight legislative priorities spanning affordable and stable housing, healthy environment, community livability and public health, and local funding and authority:

AFFORDABLE AND STABLE HOUSING ✔ Expand Municipal Bonding Authority for Affordable Housing HJR 201 refers a constitutional amendment to Oregon voters that would give local governments the ability to use general obligation bonds for affordable housing that is owned or controlled by nongovernmental entities (see p. 26). ✔ Increase the Document Recording Fee to Invest in Housing Opportunity HB 4007 increases the document recording fee from $20 to $60, raising an additional estimated $61 million per biennium dedicated to three programs: the Emergency Housing Account, the Home Ownership Assistance Program, and the General Housing Account Program (see p. 27). ✔ Establish a Task Force on Addressing Racial Disparities in Homeownership HB 4010 establishes an eleven-member Task Force on Addressing Racial Disparities in Homeownership to: compile data, identify barriers to home ownership, investigate practices and procedures for approving mortgage loans, analyze discriminatory mortgage loan practices, determine other barriers reducing or preventing home ownership, and recommend solutions to improve homeownership (see p. 27). HEALTHY ENVIRONMENT – Clean Energy Jobs HB 4001 and SB 1507 would have established a state cap on carbon emissions and required Oregon’s largest carbon emitters to obtain emissions allowances through an auction system. Though the bills did not advance, the Legislature allocated $1.4 million to establish a Carbon Policy Office (HB 5201) (see pp. 19, 21). ✔ Reducing Airborne Toxics SB 1541 codifies Department of Environmental Quality (DEQ) authority and certain policy provisions for the Cleaner Air Oregon program, and authorizes air quality permit fee increases to support the program. Legislators also allocated $1 million to address a backlog of air quality permits at DEQ (HB 5201). Bills to reduce diesel emissions did not advance (HB 4003, SB 1509) (see pp. 19-21). COMMUNITY LIVABILITY AND PUBLIC HEALTH ✔ Improve Coordination Between Portland and ODOT HB 4054 authorizes the Oregon Department of Transportation to enter into an intergovernmental agreement with the City of Portland, provided certain requirements and protocols are met, for the management and cleanup of homeless encampments (see p. 27). ✔ Addiction and Mental Health: Addressing the Opioid Crisis HB 4143 creates a peer recovery mentor pilot program for opioid overdoses, requires prescribers to register with the Prescription Drug Monitoring Program, and directs a report by the Department of Consumer and Business Services on barriers to accessing appropriate treatment (see p. 8). LOCAL FUNDING AND AUTHORITY ✔ No major preemptions on City authority to address policy issues, raise revenue, and manage City administration were passed. Local government received enhanced authority to collect transient lodging tax from intermediaries (HB 4120). Of note, legislators did pass a net neutrality bill that requires public bodies to contract with broadband internet service providers that abide by net neutrality practices (HB 4155), which was supported by the City of Portland (see pp. 41, 45).

City of Portland 2018 Legislative Report INTRODUCTION | 6

The 2018 Legislative Session commenced on Monday, February 5th when a joint assembly of the Oregon Senate and House of Representatives received the State of the State address from Governor Kate Brown. The 79th Oregon Legislative Assembly adjourned sine die on Saturday, March 3rd, eight days prior to the constitutional deadline. A total of 259 bills were introduced, of which the City tracked 215. The City provided testimony at 22 public hearings during the 27-day session. Ultimately, legislators passed 141 bills and Governor Brown did not veto any bills this session.

Five new Representatives and two new Senators joined their respective chambers for the 2018 session. Two of the new members represented districts that include portions of the City of Portland: Senator Robert Wagner (SD 19, Lake Oswego) and Representative Andrea Salinas (HD 38, Lake Oswego). Senator Wagner was appointed to fill former Senator Richard Devlin’s seat and Representative Salinas was appointed to fill former Representative Ann Lininger’s seat.

Senator Cliff Bentz (SD 30), who previously served as the Representative for House District 60 (Ontario), was appointed to fill former Senator Ted Ferrioli’s seat. Other new members of the House of Representatives included: Denyc Boles (HD 19, Salem), Mark Helfrich (HD 51, Hood River), Daniel Bonham (HD 59, The Dalles), and (HD 60, Vale).

Additionally, Senator Jeff Kruse (SD 1, Roseburg) was absent from the Capitol during the session pending an investigation of sexual harassment allegations. He announced his resignation on February 8th, effective March 15th.

The balance of power between the two parties in the Legislature remained the same from the 2017 session: Democrats continued to have a 17-13 majority in the Senate and a 35-25 majority in the House. The majority in each chamber remained one vote shy of a three-fifths margin (commonly referred to as a “super majority”) necessary to pass revenue raising bills.

Two political developments set the stage for adjusting the state budget midway through the biennium. First, voter approval of Measure 101 in the January 23rd, 2018 special election meant the state health care and health insurance premium stabilization programs were funded as approved by the 2017 Legislative Assembly. Second, the U.S. Congress passed the Tax Cuts and Jobs Act.

At the start of session, changes to federal tax policy were projected to reduce Oregon revenues by more than $200 million in the 2017-2019 biennium, but were expected to increase Oregon revenues in future biennia by more than $200 million in each biennium. This prompted the Legislature to pass three bills (SB 1528, SB 1529 and HB 4080) to re-align or disconnect various provisions of the Oregon’s tax code with the federal tax code (see pp. 39, 40). For the 2017-19 biennium SB 1528 increased available state general fund revenues by approximately $244 million and SB 1529 increased general fund revenues by a one-time amount of $100 million. SB 1529 also dedicated an additional $160 million in one-time revenues to the Employer Incentive Fund and the School Districts Unfunded Liability Fund created in SB 1566 (see p. 34).

After passage of the tax bills, the Legislature approved a budget reconciliation bill (HB 5201) at the end of the session, which included funding for mental health (see p. 9), environmental quality (see p. 21), and emergency shelters (see p. 28). Legislators also approved a bill allocating lottery funds (SB 5703), including additional police officer training classes by the Department of Public Safety Standards and Training (see p. 37).

City of Portland 2018 Legislative Report INTRODUCTION | 7

Clean Energy Jobs legislation was a major focal point of the legislative session. In the months leading up to session, Senator and Representative Ken Helm convened four work groups to develop cap-and-invest legislation for the 2018 session. Bills were introduced in both the House and the Senate (HB 4001 & SB 1507, p. 19) that proposed to establish a state cap on carbon emissions and require Oregon’s largest carbon emitters to obtain emissions allowances through an auction system. Both bills remained in their respective Rules Committees at the close of session. However, the budget reconciliation bill (HB 5201, p. 21) included $1.4 million to establish a Carbon Policy Office and the Senate President and House Speaker announced that they would appoint a Joint Carbon Reduction Committee to develop and propose legislation for the 2019 legislative session.

Multiple housing-related bills passed this session, including legislation to: expand local government bonding authority for affordable housing (HJR 201, p. 26), require and support cities to work to reduce severely rent burdened households (HB 4006, p. 26), increase the document recording fee to fund affordable housing and housing assistance (HB 4007, p. 27), establish a task force on addressing racial disparities in homeownership (HB 4010, p. 27), and streamline the removal of discriminatory property covenants (HB 4134, p. 28).

Addiction and the opioid crisis were also major policy areas taken up this session, with two notable bills passing. HB 4137 requires the Alcohol and Drug Policy Commission (ADPC) to review and update the statewide addiction, prevention, treatment, and recovery plan annually (see p. 8). This bill was coupled with an Executive Order from Governor Brown declaring addiction to be a public health crisis and charging the ADPC with creating a statewide comprehensive strategic plan that includes addiction prevention, treatment, and recovery support. HB 4143, introduced by the Governor to address the opioid epidemic, creates a peer recovery mentor pilot program, requires prescribers to register with the Prescription Drug Monitoring Program, and directs the Department of Consumer and Business Services to study and report on barriers to accessing appropriate treatment for opioid addiction (see p. 8).

Legislators considered a hotly-debated proposed Oregon constitutional amendment to guarantee access to health care. House Joint Resolution 203 would have referred a state Constitutional amendment to Oregon voters to establish a state obligation to ensure every resident has access to cost-effective, medically appropriate and affordable health care (see p. 25). The resolution was adopted by the House, but did not advance from committee in the Senate.

Months after convening a PERS Unfunded Actuarial Liability (UAL) Task Force, Governor Brown put forward SB 1566 to help reduce the PERS UAL. The bill establishes and capitalizes two accounts: monies in the Public Employees Benefit Fund will be distributed to school district side accounts and monies in the Employer Incentive Fund will match side account contributions from other local government PERS employers (see p. 34). Legislators passed the bill on the final day of session.

The Office of Government Relations is thankful to the Mayor, members of City Council, the City Auditor, Council staff, bureau directors, bureau legislative liaisons, and bureau staff for their support and hard work to bolster the City’s legislative interests this past session. We are proud to represent the City of Portland.

City of Portland 2018 Legislative Report ADDICTION AND MENTAL HEALTH | 8

SB 1539 | Oregon Psychiatric Access Line Expansion (OPAL-A)

The Oregon Psychiatric Access Line for Kids (OPAL-K) was established in 2013 and provides free, same-day child and adolescent psychiatric telephone consultations to primary care providers throughout the state. SB 1539 would have allocated $900,000 to expand OPAL-K to provide telephone or electronic psychiatric consultations to primary care providers caring for adult patients with mental health disorders (OPAL-A). The bill passed the Senate Health Care Committee unanimously and was referred to the Joint Ways and Means Committee, but did not advance further. However, $900,000 for OPAL-A was included in HB 5201, the budget reconciliation bill (see p. 9).

SB 1555 | Oregon Marijuana Account Funds for Community Mental Health

State statute directs cannabis tax revenue into the Mental Health Alcoholism and Drug Services Account, which is dedicated to drug abuse prevention and early intervention and treatment services. SB 1555 dedicates a portion of the Account to community mental health services. However, the statutory changes made by SB 1555 are only effective through the end of the 2017-19 biennium. The bill passed the Senate unanimously and passed the House 35-22.

Effective: April 3, 2018 | Chapter 081

HB 4137 | Alcohol and Drug Policy Commission Statewide Plan

HB 4137 requires the Alcohol and Drug Policy Commission (ADPC) to review and update the statewide addiction, prevention, treatment and recovery plan annually. The bill also requires a comprehensive annual report and recommendations to the Legislature. HB 4137 passed both the House and Senate unanimously. Additionally, after the close of session, Governor Brown signed an Executive Order declaring addiction and substance abuse to be a public health crisis and charging the ADPC with creating a strategic plan for prevention, treatment, and recovery in Oregon.

Effective: March 27, 2018 | Chapter 044

HB 4143 | Addressing the Opioid Epidemic

HB 4143 creates a peer recovery mentor pilot program, requires prescribers to register with the Prescription Drug Monitoring Program, and directs the Department of Consumer and Business Services to study and report on barriers to accessing appropriate treatment for opioid addiction. The bill provides a total of $2 million to four counties (Multnomah, Marion, Coos, and Jackson) to implement the pilot program. Portland City Council provided testimony in support of the bill. HB 4143 passed both chambers unanimously.

Effective: March 27, 2018 | Chapter 045

City of Portland 2018 Legislative Report ADDICTION AND MENTAL HEALTH | 9

HB 5201 | State Budget Reconciliation: Mental Health and Addiction Services

The budget reconciliation bill, HB 5201, includes several funding allocations for mental health and addiction services: • $900,000 to expand the Oregon Psychiatric Access Line for Kids (OPAL-K) program to also serve adult patients (OPAL-A) (proposed in SB 1539, see p. 8), • $950,000 for mental health support in school-based health centers, and • $5.1 million for two facilities ($2 million for a Portland-based facility) that provide inpatient and outpatient addiction services and secure adolescent inpatient mental health care.

The House voted 56-3 to approve the bill, and the Senate passed HB 5201 unanimously.

Effective: April 10, 2018 | Chapter 099

City of Portland 2018 Legislative Report BUILDING CODES | 10

HB 4086 | Third Party Building Inspectors

HB 4086 would have repealed the statutory requirement that a specialized building inspector be employed by a municipality, thereby allowing third party contractors to act in such a capacity, and would have specified that a specialized building inspector may be certified in parts of more than one specialty code. The bill would have required that a municipality administering a building inspection program arrange for a municipal building official as well as a head building inspector, who may be the same or different individuals. HB 4086 would have also required that both a municipal building official and head building inspector be an employee of the municipality, employed under an intergovernmental agreement, or employed by a council of governments. The bill would have specified that a municipal building official shall be responsible for ensuring administration and enforcement of building inspection program activities and shall provide supervision for, and be actively involved in, inspections for enforcement of specialty codes. The head building inspector would have been required to hold the highest level of certification for conducting inspections for compliance with the structural specialty code. HB 4086 passed the House 33-23, but did not advance in the Senate.

HB 4144 | Construction Contractor Licensing

See the Workforce section on page 48.

HB 4154 | Construction Subcontractor Employee Wages

See the Workforce section on page 48.

City of Portland 2018 Legislative Report CANNABIS | 11

SB 1544 | Illegal Marijuana Market Enforcement Grant Program

SB 1544 creates the Illegal Marijuana Market Enforcement Grant Program to provide grants to law enforcement agencies in counties with high diversion rates and low law enforcement staffing. The bill also modifies cannabis regulations, including labeling and packaging requirements, and clarifies which medical cannabis growers are required to use the cannabis tracking system. SB 1544 passed the Senate 26-3 and passed the House 49-8.

Effective: June 2, 2018 | Chapter 103

SB 1555 | Oregon Marijuana Account Funds for Community Mental Health

See the Addiction and Mental Health Section on page 8.

HB 4089 | Industrial Hemp

HB 4089 creates an industrial hemp fund and pilot program. The bill also allows for the transfer of industrial hemp and hemp-related items to the recreational cannabis system, subject to regulation by the Oregon Liquor Control Commission. HB 4089 passed both chambers unanimously.

Effective: April 13, 2018 | Chapter 116

HB 4091 | Public Corporation for Secure Cash Storage

See the Taxation and Finance section on page 40.

HB 4110 | Special Event License

HB 4110 would have allowed a qualified cannabis processor, producer, retailer, or wholesaler to apply for a temporary special events license from the Oregon Liquor Control Commission (OLCC). A license holder, under the bill, would have been allowed to offer free cannabis item samples at special events. The bill also would have required retailers to separate and label products derived from industrial hemp. HB 4110 did not have a public hearing.

City of Portland 2018 Legislative Report C I V I L L A W | 12

HB 4008 | Plaintiff’s Damage Protection

HB 4008 prohibits the use of racial or ethnicity data in future earning potential calculations when calculating damages in civil actions. The bill specifies that a future earnings calculation utilizing racial or ethnicity data is inadmissible and creates instructions for a jury not to consider race and ethnicity in determining damages. HB 4008 passed both chambers unanimously.

Effective: January 1, 2019 | Chapter 011

HB 4085 | Award of Attorney Fees to Prevailing Party in Landlord-Tenant Law

See the Housing and Homelessness section on page 28.

HB 4088 | Music Licensing

Performing rights societies act as agents for copyright holders and collect royalties when copyrighted music is performed. HB 4088 amends the code of conduct provisions for performing rights societies and their agents and allows a court to impose a $1,000 fine for willful violations. The bill passed both chambers unanimously.

Effective: January 1, 2019 | Chapter 028

City of Portland 2018 Legislative Report CONSUMER PROTECTION | 13

SB 1551 & HB 4147 | Breach of Data Security

SB 1551 was introduced in response to the Equifax data breach and resulted from a work group created to revise and update Oregon's Consumer Identity Theft Protection Act. The bill provides consumers with one no-charge security freeze per calendar year, requires certain entities to notify consumers of a breach within 45 days of their discovery or receiving notification of a breach, and prohibits post-breach remediation services from requiring or conditioning the offer for free services on the purchase of a paid service. SB 1551 passed the Senate unanimously and passed the House 58-1. A companion to SB 1551, HB 4147, was introduced in the House. The House Business and Labor Committee amended HB 4147 to include a private right of action and then passed it to the House Rules Committee, where it remained at the close of session.

Effective: June 2, 2018 | Chapter 010

SB 1556 | Mortgage Electronic Registration System

See the Housing and Homelessness section on page 26.

HB 4155 | Net Neutrality

See the Utilities and Telecommunications section on page 45.

City of Portland 2018 Legislative Report ECONOMIC DEVELOPMENT | 14

SB 1516 | Small Business Expansion Loan Program

SB 1516 creates a Small Business Expansion Loan Program at Business Oregon to make early stage growth capital loans to individuals or businesses with 50 of fewer employees. The bill sets requirements for the loans, including a focus on businesses primarily in the traded sector. SB 1516 passed the Senate unanimously and passed the House 55-3.

Effective: January 1, 2019 | Chapter 071

HB 4025 | Economic Resilience Study

See the Emergency Management section on page 17.

City of Portland 2018 Legislative Report EDUCATION | 15

HB 4066 | Early Childhood Equity Fund

HB 4066 would have created the Early Childhood Equity Fund to provide grants for culturally specific early learning, early childhood, and parent support programs. The bill would have provided $2.5 million in funding for the grant program. HB 4066 passed the House Early Childhood and Family Supports Committee and was referred to the Joint Ways and Means Committee, but did not advance further.

HB 4113 | Class Sizes as a Mandatory Subject of Collective Bargaining

HB 4113 would have made class size a mandatory subject of school district collective bargaining. The bill passed the House 34-24 and received a public hearing in the Senate Education Committee, where it remained upon the close of session.

HB 4117 | Portland Public Schools Levy Funding Fix

State statute imposes limits on the amount of school district local option levy revenue that is excluded from the definition of local revenue in the state school funding equalization formula. In 2014, voters approved renewal of the Portland Public Schools (PPS) local option levy. However, surging development and real estate values led to Assessed Value growth and local option revenue that exceeded statutory limits. HB 4117 exempts PPS from repaying local option levy revenue above prior statutory limits and increases the limits for school districts moving forward. HB 4117 passed the House 57-3 and Senate 24-4.

Effective: July 1, 2018 | Chapter 033

HB 4130 | Student Transportation

See the Transportation section on page 44.

City of Portland 2018 Legislative Report ELECTIONS | 16

SB 1510 | Elections Law Updates

SB 1510 makes technical changes to elections and campaign finance requirements. The bill specifies that certain voter registration file information, including birth date, birth month, Social Security number, driver license number, and signature, is not a public record and may not be disclosed by the Secretary of State or a county clerk; the bill also specifies that certain other voter information is public record. SB 1510 modifies provisions for state initiative petitions, candidate filing deadlines, campaign committee filing requirements, and timelines for acceptance of election or nomination by write-in candidates. The bill passed the Senate 21-8 and passed the House 35-23.

Effective: April 3, 2018 | Chapter 070

SB 1512 | National Popular Vote

SB 1512 would have referred a statutory amendment to voters for Oregon to join the Interstate Compact for Agreement Among the States to Elect the President by National Popular Vote. The Compact requires participating states to award all the state's electoral votes to the winner of the national popular vote. The bill received a public hearing in the Senate Rules Committee, but did not advance.

HB 4076 | Small Donor Elections

HB 4076 would have created a Small Donor Elections program to provide state legislative candidates who meet certain requirements with a 6-to-1 match on small donations. To participate, state Senate candidates would have been required to receive at least $10,000 in contributions of up to $250 each and from at least 400 donors and state House candidates would have been required to receive $6,0000 of up to $250 from at least 250 donors. The bill also specified restrictions for candidates running unopposed and for in-kind contributions. HB 4076 received a public hearing in the House Rules Committee, but did not advance.

HB 4077 | Statements of Economic Interest

See the Ethics section on page 22.

HB 4158 | Paid Postage for Returning Ballots

HB 4158 would have allowed a county, city or district to opt to cover the cost of mailing return ballots, allowing voters to send their ballots without paying for postage. The bill did not have a public hearing.

City of Portland 2018 Legislative Report EMERGENCY MANAGEMENT | 17

SB 1518 | Emergency Preparedness, Response, and Recovery

As introduced, SB 1518 would have authorized cemeteries to move, temporarily store, or reinter human remains dislodged from the original cemetery plot by natural disaster. The Senate Veterans and Emergency Preparedness Committee amended the bill to add provisions related to preparedness for oil spills by marine and rail operators. Specifically, the amendments would have required the Oregon Office of Emergency Management to meet with those operators and report back to the Legislature. The amendments also would have directed the State Fire Marshal to provide training for a coordinated response to oil or hazardous material spills that occur during rail transport. The Senate Veterans and Emergency Preparedness Committee approved the amended bill for consideration by the Joint Ways and Means Committee, where it remained at the end of session.

HB 4004 | Oil Train Spill Prevention and Emergency Response

HB 4004 would have defined certain railways as high hazard train routes and required railroads that own or operate high hazard train routes to develop oil spill prevention and emergency response plans in compliance with standards and requirements established by the Environmental Quality Commission in consultation with the State Fire Marshal. The bill received a public hearing in the House Veterans and Emergency Preparedness Committee, but did not advance.

HB 4025 | Economic Resilience Study

HB 4025 would have required the Legislative Policy and Research Office to study methods for supporting economic resilience in communities affected by emergencies or disasters declared by the Governor. The bill passed the House Economic Development and Trade Committee with a referral to the Joint Ways and Means Committee, where it remained upon the close of session.

HB 4064 | Multnomah County Bridge Funding

See the Transportation section on page 44.

HB 4090 | Incentives for Increasing Regional Foodstuff Supplies

HB 4090 would have created the Oregon Strategic Resilience Commission and directed the Commission to develop a program to increase the quantity and security of regional foodstuff supplies by offering incentives. The bill also specified requirements for the program, including to establish rebate schedules based on the reduction of carbon emissions. The House Veterans and Emergency Preparedness Committee held a public hearing, but did not advance the bill.

HB 4152 | Multnomah and Hood River County Wildfire Recovery Grants

In 2017, the Eagle Creek Fire burned almost 49,000 acres in the Columbia River Gorge within Multnomah and Hood River counties. HB 4152 allocates $151,000 to the State Fire Marshal to issue grants to the sheriffs' offices of Multnomah County and Hood River County for expenses related to wildfire recovery, mitigation and preparedness. The bill passed both chambers unanimously.

Effective: April 10, 2018 | Chapter 097

City of Portland 2018 Legislative Report ENERGY | 18

SB 1507 & HB 4001 | Clean Energy Jobs

See the Environment section on page 19.

SB 1519 & SB 1537 | Oregon Energy Commission & Statewide Strategic Energy Plan

SB 1519 would have created an Oregon Energy Commission as the policy and rulemaking body for the Oregon Department of Energy (ODOE). The bill also would have reduced the cap and increased the exemption on energy resource supplier assessment, moved the Small-Scale Local Energy Loan Program (SELP) and Renewable Energy Development (RED) grants program to Business Oregon, repealed the Energy Efficiency and Sustainable Technology (EEAST) loan program, and directed ODOE to develop a statewide strategic energy plan. The Senate Business and Transportation Committee passed SB 1519 to the Joint Ways and Means Committee, where it remained at the end of the session.

A companion bill, SB 1537, also would have created an Oregon Energy Commission as the policy and rulemaking body for ODOE, but included fewer provisions. The bill would have required ODOE to provide a comprehensive energy report every two years to the Legislature. SB 1537 would not have changed the energy resource supplier assessment, SELP, RED, or EEAST. SB 1537 had a public hearing in the Senate Environment and Natural Resources Committee, but did not advance.

HB 4022 | Electric Vehicle Infrastructure

See the Transportation section on page 42.

HB 4121 | Contractor Incentive for Residential Energy Improvement Projects

HB 4121 would have required Oregon Housing and Community Services (OHCS) to establish and administer a Home Weatherization, Retrofit, Affordability Program (Home WRAP) to provide incentive payments, funding, and grants for qualifying residential energy improvement projects. Construction contractors would have received the incentive payments for qualified energy improvement projects based on the amount of energy conserved or generated, and applied the incentive as a line item on a written contract for the project with the homeowner or landlord. The bill would have required at least 25 percent of program funding be allocated to energy efficiency and affordable housing. As introduced, HB 4121 proposed $18 million for Home WRAP, but the specific allocation amount was removed in amendments. The House Economic Development and Trade Committee voted 10-1 to pass HB 4121 with amendments to the Joint Ways and Means Committee, where the bill remained at the close of session.

HB 4148 | Oregon Energy Board

HB 4148 would have created the Oregon Energy Board as an advisory body to the Oregon Department of Energy. The Board would have been directed to develop a statewide strategic energy plan for implementing energy policies. The bill passed the House Energy and Environment Committee on party lines and was referred to the Joint Ways and Means Committee, but did not advance further.

HB 5201 | State Budget Reconciliation: Carbon Policy Office, Air Quality Permits

See the Environment section on page 21.

City of Portland 2018 Legislative Report ENVIRONMENT | 19

SB 1507 & HB 4001 | Clean Energy Jobs

Clean Energy Jobs legislation introduced in both chambers proposed to establish a state cap on carbon emissions and require Oregon’s largest carbon emitters to obtain emissions allowances through an auction system. The bills would have also consigned a portion of allowances to certain electric utilities. The proceeds raised through the auction of allowances would have provided support for impacted communities, workforce training, and investments in carbon reduction. Portland City Council provided testimony in support of both SB 1507 and HB 4001. The Senate Environment and Natural Resources Committee adopted -4 amendments to SB 1507 and passed the bill 4-3 with a referral to the Senate Rules Committee, which did not advance the bill further. HB 4001 passed the House Energy and Environment Committee 5-4 with a referral the House Rules Committee, which held a public hearing but did not advance the bill further. Near the end of session, legislators allocated $1.4 million to establish a Carbon Policy Office to inform future policy discussions (HB 5201, see p. 21) and the presiding officers of both chambers announced they would appoint a Joint Carbon Reduction Committee to develop legislation for the 2019 session.

SB 1508, SB 1541 & HB 4002 | Cleaner Air Oregon

The Cleaner Air Oregon program is a multi-year effort led by the Governor’s Office to establish a public health risk and science-based program for regulating air pollution from stationary sources. SB 1508 and HB 4002 would have authorized the Department of Environmental Quality (DEQ) to increase air quality permit fees to support implementation of Cleaner Air Oregon. Portland City Council provided testimony in support of SB 1508 and HB 4002. SB 1508 received a public hearing in the Senate Environment and Natural Resources Committee, but did not advance. The House Energy and Environment Committee voted 5-4 on party lines to approve HB 4002 with a referral to the House Rules Committee, where the bill remained at the close of session.

SB 1541 funds Cleaner Air Oregon by authorizing increased air quality permit fees and codifies DEQ authority and certain policy provisions for the Cleaner Air Oregon program. The bill establishes an excess lifetime cancer risk level of 10 in one million for new or reconstructed facilities and establishes an excess lifetime cancer risk level of 50 in one million for existing facilities through January 1, 2029, after which the Environmental Quality Commission (EQC) may specify by rule an excess lifetime cancer risk level for existing facilities as low as 25 in one million. The bill specifies a benchmark index number for non-cancer health hazards through January 1, 2029, after which the EQC may specify a benchmark by rule. SB 1541 also authorizes DEQ to establish a single pilot program to regulate cumulative emissions from multiple sources in a 2.5-mile diameter area in a county with a population exceeding 500,000. The bill passed the Senate unanimously and passed the House 55-3.

Effective: April 10, 2018 | Chapter 102

City of Portland 2018 Legislative Report ENVIRONMENT | 20

SB 1509 & HB 4003 | Diesel Emissions

SB 1509 would have authorized local governments to regulate commercial vehicle idling adjacent to schools, child care facilities, hospitals, and residential care facilities. The Bureau of Planning and Sustainability provided testimony in support of the bill. The Senate passed the bill unanimously, then the House Health Care Committee voted 6-5 to approve SB 1509 with amendments to repeal the preemption on local government idling regulations entirely. The amended bill also would have limited the existing exception to state idling restrictions for vehicles loading or unloading to only those vehicles weighing more than 26,000 pounds. As amended, SB 1509 was referred to the House Rules Committee, where it remained at the close of session.

HB 4003 would have repealed the state preemption on local regulation of commercial vehicle idling. The bill would have also required non-road diesel engines in Oregon to be registered with the Department of Environmental Quality and would have required public improvement contracts with a value of $2 million or more and for which state funds constitute 30 percent or more of the value of the contract to reserve at least one percent of the total contract price for diesel engine replacements, repowers, or retrofits. HB 4003 would have required the Environmental Quality Commission to conduct rulemaking for: (1) a program to review facilities that attract mobile sources (i.e. “indirect sources”) of air contaminants, (2) diesel engine emission standards for medium-duty and heavy-duty trucks, and (3) nonroad diesel engine registration requirements and emission standards. Additionally, the bill would have authorized use of Volkswagen settlement funds to reduce diesel emissions from certain types of trucks and buses, including vehicles owned and operated by a local government, with preference given to reducing emissions in environmental justice communities and communities of color. Portland City Council provided testimony in support. The House Health Care Committee passed the bill 6-5 with amendments and a referral to the House Rules Committee, which did not advance the bill.

HB 4015 | Oregon Conservation and Recreation Fund

HB 4015 would have created an Oregon Conservation and Recreation Fund within the Oregon Department of Fish and Wildlife (ODFW) for protecting, maintaining, or enhancing fish and wildlife resources in Oregon. The Fund would have been initially capitalized with $40,000. The bill would have also created the Oregon Conservation and Recreation Advisory Committee to advise the Oregon Fish and Wildlife Commission and ODFW. HB 4015 passed the House Agriculture and Natural Resources Committee and was referred to the Joint Ways and Means Committee, but did not advance further.

HB 4099 & HB 4138 | Motorboat Erosion Impact

HB 4099, as introduced, would have required motorboats to operate at no-wake speeds between river miles 30 and 50 on the Willamette River, prohibited wake-enhancing devices, and specified fines for violations. Amendments adopted by the House Transportation Policy Committee replaced the original bill with a provision to create a Task Force on Motorboat Water Sport and Recreational Activities. HB 4099 was subsequently referred as amended to the Joint Ways and Means Committee, but did not advance further.

HB 4138 would have authorized the State Marine Board to adopt rules for minimizing and preventing erosion resulting from motorboats. The bill passed the House 35-20 and had a public hearing in the Senate Business and Transportation Committee, but did not advance further.

City of Portland 2018 Legislative Report ENVIRONMENT | 21

HB 4109 | Carbon Sequestration Study

HB 4109 would have directed the Department of Environmental Quality and the Oregon Department of Forestry to study opportunities for state actions to promote carbon sequestration, including opportunities for capitalizing on carbon sequestration methods, providing incentives to industries to engage in carbon sequestration and storage, and regional approaches other than cap-and-trade for reducing greenhouse gas emissions through carbon sequestration. The bill passed the House Agriculture and Natural Resources Committee and was referred to the Joint Ways and Means Committee, but did not advance further.

HB 4126 | Household Hazardous Waste Product Stewardship Program

HB 4126 would have created a stewardship program for collecting household hazardous waste and required manufacturers and retailers of certain products covered under the program to support the environmentally-sound management and collection of covered products, including providing consumers with information on collection opportunities. The bill would have prohibited the sale of covered products in Oregon that were not labeled and included in an approved stewardship program. The bill passed the House Energy and Environment Committee 6-3 and was referred to the Joint Ways and Means Committee, but did not advance further.

HB 4152 | Multnomah and Hood River County Wildfire Recovery Grants

See the Emergency Management section on page 17.

HB 5201 | State Budget Reconciliation: Carbon Policy Office, Air Quality Permits

The budget reconciliation bill adopted by the Legislature includes $1.4 million to establish a Carbon Policy Office in the Department of Administrative Services and $1 million for the Department of Environmental Quality to address a backlog of air quality permits. These budget allocations will support future consideration of a cap-and-invest policy (see SB 1507 and HB 4001 on p. 19) and implementation of Cleaner Air Oregon (see SB 1508, SB 1541, and HB 4002 on p. 19), respectively.

City of Portland 2018 Legislative Report ETHICS | 22

HB 4077 | Statements of Economic Interest

HB 4077 would have added requirements to statement of economic interest filings, including sources of income that may benefit a public official or candidate indirectly. Certain public officials would have been required to file annual statements of economic interest with the Oregon Government Ethics Commission. The bill passed the House Rules Committee 5-3 and was sent to the House floor, which referred the bill back to committee where it remained upon adjournment.

City of Portland 2018 Legislative Report EQUITY | 23

SB 1563 | Tuition Equity Disconnect from Federal DACA Program

In 2013, the Oregon Legislature enacted HB 2787, extending resident tuition rates to undocumented students who had applied for the federal Deferred Action for Childhood Arrivals (DACA) program and completed a high school diploma within certain time constraints. SB 1563 removes the requirement that undocumented students apply for the DACA program in order to be eligible for in-state tuition at public universities. SB 1563 passed the Senate 17-10 and passed the House 36-22.

Effective: April 13, 2018 | Chapter 122

HB 4008 | Plaintiff’s Damage Protection

See the Civil Law section on page 12.

HB 4041 | Task Force on Workforce Development for People with Disabilities

See the Workforce section on page 47.

HB 4066 | Early Childhood Equity Fund

See the Education section on page 15.

HB 4111 | REAL ID fees and DACA Driver Card Renewal

See the Transportation section on page 44.

HB 4134 | Removal of Discriminatory Property Covenants

See the Housing and Homelessness section on page 28.

HB 4140 | Impact of Disposition of a Criminal Action on Immigration Status

HB 4140 would have required an attorney representing a defendant in a criminal action case to inform the defendant of how the outlook of the case may impact the defendant’s immigration status. The bill would have also required a prosecuting attorney to consider immigration consequences during plea negotiations as a mitigating factor if requested by the defendant. The bill did not receive a public hearing.

City of Portland 2018 Legislative Report GENERAL GOVERNMENT | 24

SB 1515 | Children’s Service Districts

SB 1515 would have authorized the formation of special districts to provide funding for programs that offer children’s services with the authority to assess, levy, and collect taxes. The bill did not receive a public hearing.

SB 1542 | Start Date of Long Legislative Sessions

SB 1542 changes the start date of legislative sessions in odd-numbered years to the Tuesday after Martin Luther King, Jr. Day in January. As a result, the 2019 session will begin on January 22nd, 2019 and have a constitutional deadline of June 30th, 2019. This change ensures the legislative sessions will complete before the 4th of July, absent a two-thirds vote to extend the session. The bill passed the Senate 27-2 and House 57-1.

Effective: June 2, 2018 | Chapter 078

SB 1565 | State Agency Procurement Pilot Programs

See the Public Contracting section on page 32.

City of Portland 2018 Legislative Report HEA L T H C A R E | 25

HJR 203 | Constitutional Right to Health Care

House Joint Resolution 203 would have referred a state Constitutional amendment to Oregon voters to establish a state obligation to ensure every resident has access to cost-effective, medically appropriate, and affordable health care. The resolution was adopted by the House 35-25 and had a public hearing in the Senate Health Care Committee, but did not advance further.

HB 4005 | Prescription Drug Price Transparency Act

The Prescription Drug Price Transparency Act (HB 4005) requires prescription drug manufacturers to report specific information to the Department of Consumer and Business Services (DCBS) for prescription drugs sold in Oregon. Health insurers with a prescription drug benefit, under the bill, are required to report certain information to DCBS about drug reimbursement rates. HB 4005 also creates a Task Force on the Fair Pricing of Prescription Drugs to develop a transparency strategy for drug prices. The bill passed the House 46-14 and Senate 25-4.

Effective: March 12, 2018 | Chapter 007

HB 4103 | Mail Order Pharmacy Prescriptions

See the Human Resources and Benefits section on page 29.

HB 4151 | Bulk Prescription Drug Purchasing

See the Human Resources and Benefits section on page 29.

HB 4156 | Limit Formulary Changes

See the Human Resources and Benefits section on page 29.

City of Portland 2018 Legislative Report HOUSING AND HOMELESSNESS | 26

SB 1556 | Mortgage Electronic Registration System

SB 1556 would have prevented a county from filing a lawsuit under certain circumstances related to the recording of trust deed documents by banks. The bill also would have prohibited a county clerk from charging a fee for the failure to record a document that transfers an interest in a trust deed. The bill passed the Senate unanimously, but was referred to the House Business and Labor Committee after the deadline for the committee to consider Senate bills.

HJR 201 | Local Government Bonding Authority for Affordable Housing

House Joint Resolution 201 refers an Oregon constitutional amendment to voters that would provide local governments the ability to use general obligation bonds to finance affordable housing that is owned or controlled by nongovernmental entities. If approved by voters, the constitutional amendment would allow jurisdictions to partner with private or nonprofit entities to leverage general obligation bonds for affordable housing with other funding sources, including private development funding and Low Income Housing Tax Credits. The constitutional amendment would require local voter approval of the general obligation bonds, require the measure proposing the bonds to the local jurisdiction to provide annual audits of, and public reporting on, expenditure of bond proceeds. Limitations in the Oregon constitution on local government lending of credit mean local governments can use voter-approved general obligation bonds to fund affordable housing, but the housing must be owned and controlled by a local government. The resolution was approved by the House unanimously, approved by the Senate 24-5, and will be referred to the November 2018 general election ballot.

Filed with the Oregon Secretary of State on March 3, 2018

HJR 202 | State Bonding Authority for Affordable Housing

House Joint Resolution 202 would have referred an Oregon constitutional amendment to voters to expand the state’s bonding authority for affordable housing. The resolution would have allowed the state to leverage general obligation bonds issued to finance affordable housing with funding from nongovernmental entities. The bill did not receive a public hearing.

HB 4006 | City Plans for Reducing Severely Rent Burdened Households

HB 4006 requires Oregon Housing and Community Services (OHCS) to provide cities with a population greater than 10,000 with data and information on the percentage of renter households who are severely rent burdened within the city. If a city is informed that at least 25 percent of the renter households in the city are severely rent burdened, the governing body must complete a survey from OHCS regarding land use and other related matters taken to increase housing affordability and reduce rent burdens for severely rent burdened households. The governing body must also hold at least one public meeting discussing the causes and consequences of severe rent burdens within the city and barriers and possible solutions to reducing rent burdens. The bill requires cities with a population greater than 10,000 to report annually to the Department of Land Conservation and Development (DLCD) on the number of units permitted and produced of various types of residential development. HB 4006 allocates $1.73 million to DLCD to provide technical assistance grants to cities to improve housing affordability and $270,000 to OHCS to study the cost of affordable housing and provide technical assistance grants to promote development of subsidized affordable housing. The bill passed both chambers unanimously.

Effective: April 3, 2018 | Chapter 047

City of Portland 2018 Legislative Report HOUSING AND HOMELESSNESS | 27

HB 4007 | Document Recording Fee to Fund Affordable Housing

HB 4007 triples the document recording fee from $20 to $60 and authorizes a program for tax- advantaged first-time home buyer savings accounts. Document recording fee funds are dedicated to three housing programs: the Emergency Housing Account, the Home Ownership Assistance Program, and the General Housing Account Program. HB 4007 also amended requirements for the Homeownership Assistance Account to support families and individuals up to 100 percent of median family income (MFI). The previous limit was 80 percent of MFI. The bill also allows first-time homebuyers to deduct, from their adjusted gross income, contributions of up to $10,000 per year, and $50,000 total, into savings accounts that may be used toward a first-time home purchase the account earnings are also exempt from state income tax. The bill passed the House 40-19 and Senate 20-9.

Effective: June 2, 2018 | Chapter 109

HB 4010 | Task Force on Addressing Racial Disparities in Homeownership

HB 4010 establishes and directs an eleven-member Task Force on Addressing Racial Disparities in Home Ownership to: compile data concerning levels of home ownership, identify barriers to home ownership, investigate practices and procedures for approving mortgage loans, identify discriminatory mortgage loan practices, and identify other barriers reducing or preventing home ownership. The Task Force will report to the Legislature by September 15, 2019 to recommend solutions to eliminate impermissible discrimination or barriers in lending practices and to improve other conditions that reduce or prevent homeownership among people of color in Oregon. The bill passed the House 56-3 and passed the Senate unanimously.

Effective: April 13, 2018 | Chapter 110

HB 4028 | Tax Credits: Affordable Housing; Film Production

See the Taxation and Finance section on page 40.

HB 4054 | Improving Coordination Between ODOT and City of Portland

Both the City of Portland and the Oregon Department of Transportation (ODOT) have separate settlement agreements for the management and cleanup of homeless encampments, some of which are partially codified in statute. HB 4054 authorizes ODOT to enter into an intergovernmental agreement (IGA) with the City of Portland for these services and sets out certain required elements for an IGA, notwithstanding other statutory requirements. Specifically, an agreement under HB 4054 must require that posted notice be made of durable material and be posted within 30 feet of property to be removed. The notice must be posted for at least 48 hours and is valid for ten days, and include information about when personal property may be removed, how to access that property and the length of time it will be stored. Protocols for severe weather and impact reduction services must also be included in an IGA. Public comment is required before an IGA may be adopted. The City of Portland provided testimony in support of HB 4054, which passed both chambers unanimously.

Effective: January 1, 2019 | Chapter 021

City of Portland 2018 Legislative Report HOUSING AND HOMELESSNESS | 28

HB 4085 | Award of Attorney Fees to Prevailing Party in Landlord-Tenant Law

HB 4085 would have created a prevailing plaintiff provision in landlord-tenant law. The bill specified that the prevailing party in an action, either the tenant or landlord, shall be awarded attorney fees, costs, and necessary disbursements. After the deadline to advance bills from their first committee, the House Human Services and Housing Committee held an informational meeting on HB 4085.

HB 4108 | Tax Credit for Newly-Constructed Single-Family Dwellings

HB 4108 would have created an income tax credit for up to half of a developer’s eligible costs of a newly constructed single-family dwelling, provided the total eligible costs were $100-$120 per square foot and the home sold for a price affordable to a household with an annual income at or below 120 percent of the area median income. The bill had a public hearing in the House Revenue Committee, but did not advance.

HB 4121 | Contractor Incentive for Residential Energy Improvement Projects

See the Energy section on page 18.

HB 4134 | Removal of Discriminatory Property Covenants

State law makes unenforceable any real estate covenant that restricts use of the property for reasons of race, color, religion, sex, sexual orientation, national origin or disability. HB 4134 simplifies the process for removing discriminatory covenant provisions from home deeds. The Portland Housing Bureau testified in support of the bill. HB 4134 passed both chambers unanimously.

Effective: March 16, 2018 | Chapter 035

HB 5201 | State Budget Reconciliation: Shelter Funding

The budget reconciliation bill approved by legislators includes $5 million for Emergency Winter Housing and Shelter, of which $2.4 million will be allocated to Multnomah County.

Effective: April 10, 2018 | Chapter 099

City of Portland 2018 Legislative Report HUMAN RESOURCES AND BENEFITS | 29

SB 1535 | Calculation of Benefits for Temporary Total Disability

See the Workforce section on page 47.

SB 1561 | State Cost Containment and PERS Unfunded Actuarial Liability Reduction

See the Public Employee Retirement System (PERS) section on page 33.

HB 4103 | Mail Order Pharmacy Prescriptions

HB 4103 would have prohibited pharmacy benefit managers from requiring or incentivizing prescriptions to be filled or refilled at a mail order pharmacy. The bill had a public hearing in the House Health Care Committee, but did not advance.

HB 4151 | Bulk Prescription Drug Purchasing

As introduced, HB 4151 would have required state entities to purchase drugs through Oregon’s Prescription Drug Program (OPDP). The bill was amended to propose the creation of an advisory committee to the Oregon Health Authority to study and make recommendations related to the OPDP. The bill passed the House Health Care Committee and was referred to the Joint Ways and Means Committee, where it remained at the close of session.

HB 4156 | Limit Formulary Changes

A formulary is a list of medications available in a health plan and is used by health care insurers as a method to manage utilization of prescription drugs. HB 4156 would have limited formulary changes and prohibited health insurers from increasing cost-sharing for prescription drugs or creating new utilization management requirements during a plan year. The bill had a public hearing in the House Health Care Committee, but did not advance.

HB 4160 | Paid Family Leave

See the Workforce section on page 48.

City of Portland 2018 Legislative Report L A N D U S E | 30

HB 4031 | Land Use Omnibus; ADUs in Areas Zoned for Single-Family Dwellings

HB 4031 authorizes the establishment of guest ranches in exclusive farm use zones in eastern Oregon, modifies siting regulations for a small-scale recreation community using a transfer of development opportunity from a Metolius resort site to allow development at Bradwood Landing in Clatsop County, and changes the locational requirements for economic development pilot program sites to be selected by the Land Conservation and Development Commission. Amendments to the bill adopted in the Senate also added a provision to clarify that the statutory requirement enacted in SB 1051 (2017) for cities and counties to allow accessory dwelling units (ADUs) in areas zoned for detached single-family dwellings only applies within an urban growth boundary. This provision was also proposed in HB 4034 (see below). The bill passed the House unanimously, passed the Senate 27-1, and the House concurred with Senate amendments 40-19.

Effective: March 16, 2018 | Chapter 015

HB 4034 | ADUs in Areas Zoned for Single-Family Dwellings

SB 1051 (2017) required that cities and counties allow ADUs in areas zoned for detached single family dwellings. HB 4034 proposed to clarify that the provision only applies to areas within an urban growth boundary. The bill had a public hearing in the House Agriculture and Natural Resources Committee, but did not advance. However, the provision was later added to HB 4031 (see above), which did pass.

HB 4075 | Washington County Rural and Urban Reserves

In 2011, Metro and Multnomah, Clackamas, and Washington counties agreed upon urban and rural reserve designations to guide expansion of the urban growth boundary in coming decades. The designations were approved by the Land Conservation and Development Commission, but then reversed and remanded by the Court of Appeals. In 2014, the Legislature passed a land use "grand bargain" (HB 4078) that validated the 2011 urban and rural reserve designations in Washington County, with certain revisions. HB 4075 would have changed certain "grand bargain" rural reserves designations in Washington County to urban reserves. The bill had a public hearing in the House Agriculture and Natural Resources Committee, but did not advance.

HB 4124 | Remand of County Land Use Decisions

HB 4124 allows the governing body of a county to delegate final decisions on plan amendments to the planning commission or hearings officer, if the decision is remanded from the Land Use Board of Appeals. The bill passed both chambers unanimously.

Effective: April 13, 2018 | Chapter 117

City of Portland 2018 Legislative Report LIQUOR | 31

SB 1564 | Distillery Tasting Room License

SB 1564 and the -2 amendments would have allowed a licensed distillery to apply for a tasting room permit. A permitted distillery would have had the ability to sell its own distilled liquor at tasting rooms with a sales cap of $250,000 per year, and would have been required to operate on a year-round basis. The retail price of the liquor bottles would have been set by the Oregon Liquor Control Commission (OLCC), but the sales would have been direct sales and not as an agent of the OLCC. This would have allowed the distillery to retain the full proceeds of the sale. The bill also would have allowed a distillery to apply for a special events tasting room license. The Senate Business and Transportation Committee held a public hearing on SB 1564 and the proposed -2 amendments, but did not advance the bill.

City of Portland 2018 Legislative Report PUBLIC CONTRACTING | 32

SB 1565 | State Agency Procurement Pilot Programs

SB 1565 creates two pilot programs within the state procurement system. One pilot uses the reverse auction concept for the purchase of goods and services valued at more than $150,000. The other pilot assesses the effectiveness of requiring price to be 30 percent of the final evaluation criteria during the solicitation evaluation process. The bill passed both chambers unanimously.

Effective: June 2, 2018 | Chapter 085

HB 4127 | Qualification Based Selection

State and local governments use the Qualification Based Selection (QBS) process when procuring architectural, engineering, land surveying, photogrammetric mapping, or transportation planning services in excess of defined amounts. HB 4127 would have created a second pathway within the QBS process to allow local governments to discuss pricing information with three potential vendors before final selection. HB 4127 passed the House 41-18. In the Senate, the bill was referred without recommendation from the Senate General Government and Accountability Committee to the Senate Rules Committee, which did not advance the bill.

HB 4128 | Business Certification Requirements

Business Oregon's Certification Office for Business Inclusion and Diversity (COBID) provides public contracting certification for disadvantaged business enterprises, minority-owned businesses, woman- owned businesses, businesses owned by service-disabled veterans, and emerging small business contractors (MWESB). HB 4128 would have allowed MWESB businesses to retain this certification if they exceed the cap on gross receipts, provided they meet additional criteria. The bill would have required that a qualifying business subcontract at least 20 percent of its contracts to other businesses, mentor other businesses, and otherwise remain eligible for COBID certification. HB 4128 received a public hearing in the House Business and Labor Committee, but did not advance.

HB 4139 | Heavy Equipment Construction Excise Tax

See the Taxation and Finance section on page 41.

City of Portland 2018 Legislative Report PUBLIC EMPLOYEE RETIREMENT SYSTEM (PERS) | 33

SB 1546 | OPSRP Vesting for Judges

SB 1546 allows judge members of PERS to count their creditable service performed as a judge toward the hours of service required to vest in the Oregon Public Service Retirement (OPSRP). The bill passed the Senate unanimously and passed the House 56-3.

Effective: June 2, 2018 | Chapter 041

SB 1561 | State Cost Containment and PERS Unfunded Actuarial Liability Reduction

SB 1561 would have addressed multiple aspects of state government expenditures, including the Public Employee Retirement System (PERS), state agency spending and personnel, state employee collective bargaining, and proposed to create a Task Force on Education Cost Reduction. The bill did not receive a public hearing.

The bill would have directed the PERS Board to establish member pension contribution account for certain employee contributions and applied account funds to pay the costs of pension or other retirement benefits. The Board would also have been directed to determine the unfunded actuarial liability (UAL) of PERS by at least two methods, including and excluding side accounts. SB 1561 also would have required specified public entities to calculate surplus revenue for each budget period and send the surplus to the State Treasurer for use in reducing the unfunded actuarial liability. The PERS provisions of the bill would not have applied if the UAL is less than $1 billion.

Regarding state agency cost containment, SB 1561 would have required the Department of Administrative Services to eliminate positions that have been vacant for more than six months. The bill would have: (1) limited state agency expenditures for administrative costs to 90 percent of agency administrative expenditures in the 2017-2019 biennium, (2) limited the biennial budget for state agencies to 101 percent of the amount allocated for compensation of state agency personnel in the preceding biennium, and (3) required that the Governor’s budget may not include a standard inflation factor for services and supplies.

Lastly, SB 1561 would have required legislative approval of collective bargaining agreements negotiated for state agencies, required public employee collective bargaining agreements to be negotiated every even year, and suspended other cost-related considerations typically considered in collective bargaining for state employees.

City of Portland 2018 Legislative Report PUBLIC EMPLOYEE RETIREMENT SYSTEM (PERS) | 34

SB 1566 | Employer Incentive Fund

SB 1566 addresses the PERS Unfunded Actuarial Liability by: (1) creating an Employer Incentive Fund to match employer contributions to side accounts, (2) creating an account within the Public Employees Benefit Fund with account funds to be distributed to school district side accounts, and (3) directing the State Treasurer to study the feasibility and prudence of borrowing from the Short Term Fund for investments in the PERS Fund. The Employer Incentive Fund will match employer contributions to side accounts up to a rate of $0.25 for every $1 contributed. The bill sets a maximum amount of contributions that will qualify for a match and sets parameters for matching local government contributions. The bill also allows a public employer contributing $10 million or more to a PERS side account to choose an amortization period of 6, 10, 16 or 20 years.

SB 1566 does not provide funding to capitalize the Employer Incentive Fund match for employer contributions. However, SB 1529 (see p. 39) allocates an estimated $25 million to the Employer Incentive Fund and approximately $115 million to school side accounts from one-time revenue resulting from changes to Oregon tax law related to repatriation. SB 1566 passed the Senate unanimously and passed the House 40-18.

Effective: June 2, 2018 | Chapter 105

HB 4012 | Reemployment of Retired PERS members in Career Technical Education

HB 4012 extends the sunset on a provision allowing Tier One or Tier Two PERS retirees to work as career and technical education teachers without losing their retirement benefits. The sunset is extended to June 3, 2023. The bill passed the House 56-3 and passed the Senate unanimously.

Effective: June 2, 2018 | Chapter 048

HB 4070 | PERS Benefits Reform

HB 4070 would have created a fourth tier of retirement benefits within PERS and specified the parameters of those benefits. Employer contributions would have been set at 10 percent of the PERS member’s salary, a member could have contributed an additional two percent of salary matched by the employer, and the PERS Board would have set a contribution rate at least 18 percent of salary. The bill also would have set a $200,000 final average salary cap for Tier 1 and Tier 2 PERS recipients and directed the Oregon Investment Council to offer low-, medium-, and high-risk options of individual account plan investments. The bill did not receive a public hearing.

City of Portland 2018 Legislative Report PUBLIC EMPLOYEE RETIREMENT SYSTEM (PERS) | 35

HB 4112 | PERS Oregon Income Tax Remedy Payments

HB 4112 would have required that tax remedy payments to recipients be restored at the start of the next calendar quarter after a PERS benefit recipient certifies residency status, instead of the next calendar year. The bill also would have required retroactive payments from PERS if a retiree’s past benefit payments were subject to Oregon income tax. Currently, if PERS cannot determine whether a benefit recipient filed an Oregon income tax return as a resident, then PERS sends the recipient a letter asking for certification of residency status. PERS stops paying the tax remedy payment for the next year if the recipient does not certify before the end of the calendar year. The bill received a public hearing in the House Business and Labor Committee, but did not advance.

HB 4115 | Retirement Plan Options for Statewide Elected Officials and Judges

HB 4115, as introduced, would have prohibited statewide elected officials and judges from becoming members of PERS or accruing benefits under PERS after the effective date. As amended, the bill would have allowed a statewide elected official or judge to decline to join or remain in PERS. HB 4115 passed the House Business and Labor Committee and was referred to the House Rules Committee, but did not advance. A House floor motion to withdraw the bill from committee failed 29-31.

HB 4131 | Termination of PERS Pension Benefit Accrual

HB 4131 would have prohibited PERS members from accruing pension benefits for future service and instead required PERS members and their employers to each contribute four percent of the PERS members’ salary to the Oregon Public Service Retirement (OPSRP) Individual Account Program (IAP). The bill did not receive a public hearing.

HB 4159 | Individual Account Plan Investments

HB 4159 allows PERS members to direct the investment of their Individual Account Program (IAP) into one of multiple approved investment options. The PERS Board, in consultation with the State Treasury, will approve rules to implement this program change. The bill passed both chambers unanimously.

Effective: April 13, 2018 | Chapter 118

City of Portland 2018 Legislative Report P U B L I C SAFETY | 36

SJM 201 & SJM 202 | Resolution Urging Congress to Regulate Bump Stocks

Senate Joint Memorial 202 would have urged Congress to define and regulate rapid fire enhancing accessories, including bump stocks, in the same manner as fully automatic weapons. The bill passed the Senate Judiciary Committee 4-3 and was referred to the Senate Rules Committee, but did not advance. A similar bill, SJM 201, was also introduced, but did not receive a public hearing.

SB 1531 | Law Enforcement Mental Health Sessions

SB 1531 would have required law enforcement officers to meet with a mental health professional at least once every two years. Law enforcement agencies would have been responsible for the cost of these sessions. The bill would have specified that these sessions are not mental health evaluations, and would have been in addition to any session an officer must attend as a result of involvement with the use of deadly physical force. SB 1531 received two public hearings in the Senate Judiciary Committee, but did not advance.

SB 1543 | Public Safety Omnibus

SB 1543 is an omnibus bill that makes numerous changes to public safety statutes, including extending the minimum length of time for preserving sexual assault forensic evidence kits to 60 years and creating the Sexual Assault Victims' Emergency Medical Response Fund. The bill also allows a court to vacate a municipal prostitution conviction if it results from sex trafficking; prohibits garnishment of inmate transitional funds; and allows a Class B felony for possession of a controlled substance to be reduced to a Class A misdemeanor if the person successfully completes probation. SB 1543 sets a minimum 30-day sentence for falsely reporting a crime that results in serious injury or death from a SWAT deployment. The bill makes technical changes to unmanned aircraft (drone) statutes, as well as to the requirement that Oregon State Police notify jurisdictions when a person prohibited from owning a firearm attempts to purchase a firearm, per HB 4145 (see p. 38). The bill passed the Senate 26-3, passed the House unanimously, and the Senate concurred with House amendments and repassed the bill unanimously.

Effective: April 13, 2018 | Chapter 120

SB 1562 | Strangulation as a Felony

SB 1562 expands the definition of strangulation to include knowingly impeding the normal breathing or circulation of another person by applying pressure to the chest, in addition to existing language defining strangulation as applying pressure to the throat or neck or blocking the nose or mouth of the other person. The bill also increases the penalty for strangulation to a Class C felony when the victim is a family or household member. SB 1562 passed both chambers unanimously.

Effective: January 1, 2019 | Chapter 084

City of Portland 2018 Legislative Report P U B L I C SAFETY | 37

SB 5703 | Lottery Fund Allocation: DPSST Training Classes

SB 5703 allocates $3.7 million to the Department of Public Safety Standards and Training (DPSST) to increase the number of training classes offered by the Department.

Effective: April 10, 2018 | Chapter 107

HB 4049 | SAFE Kit Testing & Tracking System

HB 4049 directs the Oregon State Police (OSP) to establish a committee charged with tracking sexual assault forensic evidence (SAFE) kits and developing a tracking system. The bill also requires all law enforcement agencies, medical facilities, crime laboratories, and other specified entities to fully participate in the tracking system. The bill passed both chambers unanimously.

Effective: April 3, 2018 | Chapter 055

HB 4054 | Improving Coordination Between ODOT and City of Portland

See the Housing and Homelessness section on page 27.

HB 4055 | Hit and Run

HB 4055 imposes certain duties on drivers who learn that they may have been involved in a collision involving the injury or death of another person; injury or death of a domestic animal; or damage to a vehicle, fixtures, or property after leaving the scene of the collision. The bill also establishes additional duties for drivers involved in these collisions. HB 4055 passed both chambers unanimously.

Effective: January 1, 2019 | Chapter 022

HB 4056 | Scholarship Funds for Children of Law Enforcement Officers

HB 4056 dedicates ten percent of proceeds from civil forfeiture of property to scholarships for children of public safety officers. The bill passed both chambers unanimously.

Effective: March 16, 2018 | Chapter 023

HB 4062 | Stolen License Plates

See the Transportation section on page 43.

City of Portland 2018 Legislative Report P U B L I C SAFETY | 38

HB 4145 | Gun Safety: Close the Intimate Partner and Stalker Loopholes

HB 4145 expands the category of persons prohibited from possessing firearms to include individuals under a court order or who have a domestic violence conviction, which includes persons who have been involved in a sexually intimate relationship but who may not have cohabitated. The expanded prohibition on possession also includes those who have been convicted of stalking. Additionally, the bill requires the Oregon State Police to enter qualifying convictions in the appropriate state and national databases and to send reports of attempted purchases by prohibited individuals to the appropriate law enforcement entities. HB 4145 passed the House 37-23 and Senate 16-13.

Effective: January 1, 2019 | Chapter 005 (2018 Laws)

HB 4149 | Plea Petitions

HB 4149 prohibits a prosecuting attorney from conditioning a plea offer on the defendant waiving required pretrial disclosures; or the ability to receive grand jury audio recordings; or requiring stipulation that an existing law is unconstitutional. The bill also prohibits courts from conditioning a defendant’s release on the defendant’s waiver of appearance in-person at trial. The bill passed the House unanimously and passed the Senate 27-1.

Effective: January 1, 2019 | Chapter 037

HB 4161 | Vehicle Theft

In 2015, the Oregon Court of Appeals held in State v. Korth that the state must prove, beyond a reasonable doubt, that a driver knew a vehicle was stolen to successfully prosecute Unauthorized Use of a Vehicle (UUV). HB 4161 would have reduced the required mental state to convict for UUV. Under the bill, the prosecution would have to prove knowledge of taking the vehicle, rather than knowledge of a lack of consent to have the vehicle. Mayor Wheeler provided testimony supporting the bill and addressing the escalating issue of vehicle theft. The House Rules Committee held a public hearing on HB 4161, but did not advance the bill.

City of Portland 2018 Legislative Report TAXATION AND FINANCE | 39

SB 1515 | Children’s Service Districts

See the General Government section on page 24.

SB 1523 | Interstate Broadcaster Tax Apportionment

In 2014, the Legislature passed HB 4138 to change apportionment of interstate broadcaster corporate income from using an audience factor to using a domicile factor. The policy only applied to tax years 2014 through 2016. SB 1523 extends the method of apportioning corporate income taxation of interstate broadcasters to tax years 2017 through 2020. The bill passed the Senate unanimously and passed the House with one “no” vote.

Effective: June 2, 2018 | Chapter 073

SB 1528 | Oregon Connection with Federal Tax Law: Oregon Tax Rates, Exemptions, Credits

SB 1528 requires that pass through entities include for purposes of Oregon’s taxable income the twenty percent of qualified income that is allowable as a federal tax deduction under the Tax Cuts and Jobs Act. The bill also allows taxpayers to receive a tax credit for qualifying contributions to the Opportunity Grant Fund and increases the Oregon personal exemption credit from $90 to $113 for the 2018-2025 tax years. SB 1528 passed the Senate 16-13 and passed the House 32-28.

Effective: June 2, 2018 | Chapter 108

SB 1529 | Oregon Connection with Federal Tax Law and PERS Fund Capitalization

SB 1529 requires addback of the federal dividend received for deduction of income that is repatriated. Changes to federal repatriation policy in the Tax Cuts and Jobs Act were estimated to reduce state corporate income tax revenue by $100 million in the current biennium; with the addback in SB 1529, revenues are expected to be up $170 million in the current biennium (a $260 million net difference). The bill directs 18 percent (an estimated $26 million) of one-time repatriation tax revenues to the PERS Employer Incentive Fund and 82 percent (an estimated $119) million to the School Districts Unfunded Liability Fund, both established in SB 1566 (see p. 34), instead of to the State’s Rainy Day Fund. SB 1529 passed the Senate unanimously, passed the House 39-21, and the Senate unanimously concurred with House amendments.

Effective: June 2, 2018 | Chapter 101

HB 4027 | Gigabit Property Tax Exemption Repeal

See the Utilities and Telecommunications section on page 45.

City of Portland 2018 Legislative Report TAXATION AND FINANCE | 40

HB 4028 | Tax Credits: Affordable Housing; Film Production

HB 4028 amends multiple tax credit programs, including the Oregon Affordable Housing Lender Credit (OAHTC). For the OAHTC, the bill expands the types of sponsoring entities of manufactured dwelling parks for which a lending institution may be allowed a tax credit for qualified loans. HB 4028 also authorizes Oregon Film to request direct funding for the Oregon Production Investment Fund (OPIF) from the Legislature in case the tax credit auction for capitalizing OPIF underperforms due to changes in federal tax rates. The bill also allows the tax-exempt status of cemetery property to be maintained when the property is transferred and low-income housing is built on the property, without triggering a clawback on back taxes for the former cemetery property. HB 4028 passed the House unanimously and passed the Senate with one “no” vote.

Effective: June 2, 2018 | Chapter 111

HB 4074 | Escheat of US Savings Bonds

HB 4074 allows the Department of State Lands to redeem unclaimed mature U.S. Savings Bonds that are presumed to be abandoned, and deposit the proceeds into the Common School Fund. The original bond owner may still reclaim the bond after deposit through a petition process. HB 4074 passed the House 55- 3 and Senate 26-3.

Effective: April 10, 2018 | Chapter 095

HB 4080 | Oregon Connection with Federal Tax Law

HB 4080 updates the Oregon tax code’s connection to the Internal Revenue Code and other provisions of federal tax law in response to the federal Tax Cuts and Jobs Act. The bill also clarifies Oregon tax law related to Oregon 529 College Savings accounts and specifies that if a taxpayer withdraws college savings funds to pay expenses in connection with a primary or secondary school, then the amount is subject to federal taxable income calculations. HB 4080 passed the House 35-23 and Senate 23-4.

Effective: June 2, 2018 | Chapter 057

HB 4091 | Public Corporation for Secure Cash Storage

HB 4091 would have established the Oregon Cash Depository Corporation. The independent public corporation would be directed to establish facilities throughout the state to receive, handle, store and dispense cash and other valuable property. The bill also would have created the Oregon Cash Depository Corporation Fund in the State Treasury for the deposit of all funds received by the Corporation. The bill received a public hearing in the House Revenue Committee, but did not advance.

HB 4108 | Tax Credit for Newly-Constructed Single-Family Dwellings

See the Housing and Homelessness section on page 28.

City of Portland 2018 Legislative Report TAXATION AND FINANCE | 41

HB 4117 | Portland Public Schools Levy Funding Fix

See the Education section on page 15.

HB 4120 | Transient Lodging Tax Intermediaries

HB 4120 ensures transient lodging tax collection and remittance by intermediaries, which includes a person, other than the lodging provider, who collects the occupancy charges or provides the use of a third party to collect the occupancy charges. The bill states that transient lodging tax is due on the amount paid by the occupant and specifies the responsibility of the lodging provider and the intermediary in collecting and reporting local transient lodging taxes. HB 4120 also establishes joint and several liability for each owner of transient lodging. The Bureau of Revenue and Financial Services provided testimony in support of the bill, which passed the House 52-8 and passed the Senate with a single “no” vote.

HB 4120 was amended in the House Revenue Committee to remove a provision in the bill as introduced that would have provided statutory authorization for local governments to issue subpoenas in inquiries related to the local transient lodging tax; however, some local governments currently have such authority consistent with Home Rule and their local charter provisions.

Effective: July 1, 2018 | Chapter 034

HB 4139 | Heavy Equipment Construction Excise Tax

HB 4139 imposes a tax on the rental price of construction, mining, earthmoving or industrial equipment as a replacement for subjecting such heavy equipment to property taxation. The bill passed the House 57- 1 and passed the Senate unanimously.

Effective: June 2, 2018 | Chapter 064

City of Portland 2018 Legislative Report TRANSPORTATION | 42

SB 1506 | Wounded Warrior Parking Permits

SB 1506 creates an “Oregon Wounded Warrior” designation for certain qualifying disabled veterans that will allow them to park for free and without penalty in metered and time-limited public spaces. The bill passed both chambers unanimously.

Effective: April 3, 2018 | Chapter 069

SB 1509 & HB 4003 | Diesel Emissions

See the Environment section on page 20.

SB 1538 | Probationary Driver Permits

SB 969 (2015) created the Joint Interim Task Force on Reentry, Employment and Housing to study and recommend actions that state and local governments could take to improve reentry into nonincarcerated daily living for persons with a criminal conviction. SB 1538 is a product of the task force and makes several changes to provisions involving driver license suspensions and permits. The bill eliminates probationary driver permits and standardizes requirements for a hardship permit, removes certain suspensions of driving privileges that are unrelated to driving, and specifies that changes made by the bill would be prospective and not affect permits or suspensions prior to the effective date. The bill passed the Senate 22-7, passed the House unanimously, and the Senate concurred with House amendments 26-3.

Effective: January 1, 2019 | Chapter 076

HB 4022 | Electric Vehicle Infrastructure

HB 4022 authorizes state agencies to install an appropriate number of charging stations for electric vehicles, as defined in rule by the Department of Administrative Services. The bill directs state agencies to set a price for the charging stations that most practicably covers the cost of operating the charging station, but does not exceed 110 percent of the market price. HB 4022 passed the House 53-5, passed the Senate 22-7, and the House concurred with Senate amendments 53-6.

Effective: June 2, 2018 | Chapter 090

HB 4055 | Hit and Run

See the Public Safety section on page 37.

City of Portland 2018 Legislative Report TRANSPORTATION | 43

HB 4059 & HB 4060 | Transportation Package Policy Fixes

The Joint Transportation Committee convened to consider and recommend numerous clarifications and technical amendments to the 2017 Transportation Package (HB 2017). HB 4060 was drafted with an array of policy considerations. The committee debated and selected key policies of HB 4060 and amended them into the base bill, HB 4059. As amended, HB 4059 includes:

• Making electric assist bicycles subject to the bicycle excise tax, rather than the vehicle privilege tax; • Replacing the exception to the excise tax for children’s bicycles to a flat $200 exception; • Modifying the zero-emission vehicle (ZEV) program to allow leased vehicles to qualify; • Eliminating the requirements for vehicle scrapping and living in high-emission exposure areas as qualifying elements of the Charge Ahead Oregon ZEV program; • Altering the prohibition on Statewide Transportation Improvement Fund (STIF) dollars on “light rail” to allow STIF expenses on light rail operations but not capital; • Directing one percent of STIF moneys for student transit services, where practicable, per HB 4130 (see p. 44); • Repealing the requirement for a feasibility study of highway cost allocation study in the Portland metro region; and • Exempting vehicles that are part of a connected automated braking system from the traffic offense of following too closely.

HB 4059 passed the House 45-3 and passed the Senate 25-4. HB 4060 remained in committee.

Effective: June 2, 2018 | Chapter 093

HB 4062 | Stolen License Plates

HB 4062 modifies certain fees for documents and services provided by the Oregon Department of Transportation (ODOT). The bill was amended to also remove an incentive to buy used license plates and, in turn, reduce the market for stolen plates by eliminating the remaining registration period on those plates unless the transaction is between vehicles by the same owner. The City provided testimony in support of the bill. HB 4062 passed the House 42-17, passed the Senate 19-10, and the House concurred with the Senate amendments 38-21.

Effective: June 2, 2018 | Chapter 114

HB 4063 | Autonomous Vehicles Task Force

HB 4063 creates a 31-member Task Force on Autonomous Vehicles. The task force will submit recommendations for proposed legislation by September 15, 2018. The Portland Bureau of Transportation provided testimony that proposed improvements the task force and added local government representation. The bill passed both chambers unanimously.

Effective: April 10, 2018 | Chapter 094

City of Portland 2018 Legislative Report TRANSPORTATION | 44

HB 4064 | Multnomah County Bridge Funding

HB 4064 allows excess Vehicle Registration Fee (VRF) revenues from the Sellwood Bridge to be used on the Burnside Bridge. The bill permits Multnomah County to utilize VRF revenues for “a bridge replacement over the Willamette River,” without the currently required 40 percent payment to cities within the county, if the VRF is used for another bridge replacement across the Willamette River. The VRF must take effect by October 1, 2018 in order to qualify. HB 4064 passed the House 51-6 and passed the Senate 24-5.

Effective: June 2, 2018 | Chapter 024

HB 4099 & HB 4138 | Motorboat Erosion Impact

See the Environment section on page 20.

HB 4111 | REAL ID Fees and DACA Driver Card Renewal

HB 4111 clarifies the fees required to obtain a Real ID-compliant driver license for applicants seeking an original driver license, a replacement driver license, or renewal of an existing license. The bill was amended to include a provision that allows Deferred Action for Childhood Arrival (DACA) recipients to renew their limited term identification card, limited term driver license or limited term driver permit. HB 4111 passed the House unanimously, passed the Senate 20-8, and the House concurred with the Senate amendments 36-22.

Effective: April 3, 2018 | Chapter 060

HB 4116 | Mobile Electronic Devices

In 2017, the Distracted Driving Task Force issued a report and included a recommendation to broaden the definition of mobile communication devices. The Oregon Legislature passed HB 2597 (2017) in response to this recommendation. The bill renamed and expanded the offense to include operating a motor vehicle while operating a mobile electronic device and defined key terms. HB 4116 modifies the exceptions and affirmative defenses to the offense of driving a motor vehicle while using a mobile electronic device from the 2017 legislation. HB 4116 allows for the “minimal use of a finger” to activate or deactivate a mobile electronic device function and still qualify for the hands-free accessory exception. The bill passed both chambers unanimously.

Effective: March 16, 2018 | Chapter 032

HB 4130 | Student Transportation

HB 4130 creates a program to provide school districts with grants necessary to cover high school student transportation costs that are not paid for by the State School Fund. Allowable uses would include school buses and school activity vehicles. The bill allocates $250,000 to the grant program. The bill passed both chambers unanimously. The Transportation Package Policy Fix bill (HB 4059) also directs one percent of statewide transportation improvement fund to student transit services where practicable (see p. 43).

Effective: July 1, 2018 | Chapter 062

City of Portland 2018 Legislative Report UTILITIES AND TELECOMMUNICATIONS | 45

HB 4023 | Oregon Broadband Advisory Council

HB 4023 requires the Oregon Broadband Advisory Council to study options for a local broadband champion program, to bring broadband communication services to unserved or underserved areas of Oregon, and creates the Oregon Connecting Schools Fund to match federal funds for broadband access in school districts. The bill also requires the State Chief Information Officer (CIO) to provide broadband communications services to local governments, special districts, and federally recognized tribes in unserved or underserved areas of Oregon, under certain circumstances, and pursuant to adopted rules. The bill does not include funding for the Oregon Connecting Schools Fund. HB 4023 passed the House unanimously and passed the Senate 21-8.

Effective: April 3, 2018 | Chapter 051

HB 4027 | Gigabit Property Tax Exemption Repeal

HB 4027 would have repealed the Oregon laws (ORS 308.673, 308.677, and 308.681) enacted in 2015 that authorize a tax exemption on intangible property for companies that provide qualifying symmetrical gigabit internet service. Those statutes specify that upon state approval of an application for a qualifying project, the gigabit property tax exemption shall be awarded for the period that the company owns and maintains the qualifying project. HB 4027 would have repealed the exemption and provided companies (Comcast and Frontier), who had an application qualified by the Public Utility Commission on or before March 1, 2016, with a one-time single year exemption from taxation on intangible property. The Office for Community Technology provided testimony in support of HB 4027. The bill passed the House 36-21, but was referred to the Senate Rules Committee and did not receive a hearing.

HB 4155 | Net Neutrality

HB 4155 prohibits public bodies from contracting for broadband internet service with providers who do not follow net neutrality rules, including blocking, throttling, or paid prioritization of internet traffic. The bill provides certain exceptions, including: when a geographic area is served by a sole provider, cases when a provider is in the process of addressing the needs of emergency communications, law enforcement or public safety authorities, and in cases where the Public Utility Commission determines that paid prioritization provides significant public interest benefits and does not harm the open nature of the internet service. The requirement applies to contracts entered into, extended, or renewed on or after January 1, 2019.

As introduced, HB 4155 was focused on data privacy; it would have prohibited broadband internet access service providers from disclosing, selling, or permitting access to customer personal information without consent from the customer, and would have prohibited a provider from refusing to provide service if consent is not provided, charging more if consent is not provided, or offering a discount if consent is provided. The personal information covered by the bill would have included name, address, financial information, internet browsing or usage history, location, device identifier, or ISP address. The Office for Community Technology provided testimony in support of HB 4155, including the data privacy and proposed net neutrality provisions. The House Rules Committee approved the bill with amendments to adopt the net neutrality provisions and remove the data privacy provisions. The bill then passed the House 40-17 and Senate 21-7.

Effective: April 9, 2018 | Chapter 088

City of Portland 2018 Legislative Report W A T E R A N D WASTEWATER | 46

SB 1558 | Water Rights Transfer

SB 1558 would have amended statutes regarding transfer of water rights. The bill would have defined "existing water right" and specified that split season use of an existing storage right is not allowed. Amongst other provisions, the bill also would have authorized a water right holder to use a transfer process to transfer place of use for a storage right in lieu of using the process for obtaining a new water right. SB 1558 did not receive a public hearing.

City of Portland 2018 Legislative Report WORKFORCE | 47

SB 1535 | Calculation of Benefits for Temporary Total Disability

SB 1535 would have prescribed a method for calculating the weekly wage for workers in order to determine benefits payable for temporary total disability under workers’ compensation law. The bill did not have a public hearing.

HB 4041 | Task Force on Workforce Development for People with Disabilities

HB 4041 would have created a Task Force on Workforce Development for People with Disabilities. The bill would have required the task force to establish policies and strategies to increase state government employment opportunities for people with disabilities; evaluate state programs related to employing people with disabilities; and report findings and make recommendations to the Legislature. The bill passed the House Higher Education and Workforce Development Committee unanimously and was referred to the Joint Ways and Means Committee, but did not advance further.

HB 4042 | Prosperity 1,000

HB 4042 would have established the Prosperity 1,000 Pilot Program to provide career coaching, occupational training and job placement services for 1,000 low-income job seekers in concentrated areas of poverty within Multnomah and Washington counties. The bill would have allocated $5 million for the pilot program. The proposed pilot program administrator, Worksystems, Inc., is one of Oregon's nine local workforce development boards and serves the City of Portland, and Multnomah and Washington counties. Prosper Portland provided testimony in support of the bill. The House Higher Education and Workforce Development Committee amended and unanimously referred HB 4042 to the Joint Ways and Means Committee, but the bill did not advance further.

HB 4093 | Winterhawks Amateur Athletes

HB 4093 was brought to the Legislature by the Portland Winterhawks junior ice hockey team. The bill would have created a definition of amateur athletes and exempted amateur athletes from certain employment-related statutes. The bill also would have required amateur sports organizations to send a report to the Department of Consumer and Business Services each year with specified information. HB 4093 passed the House 35-23. The Senate Workforce Committee referred to bill to the Senate Rules Committee without recommendation, where it remained at the close of session.

HB 4098 | Apprenticeship Opportunities for Veterans

HB 4098 directs the Oregon Department of Veterans Affairs to train Veterans Services Officers and veterans’ organizations about education benefits and apprenticeship opportunities available to veterans. The bill passed both chambers unanimously.

Effective: June 2, 2018 | Chapter 030

City of Portland 2018 Legislative Report WORKFORCE | 48

HB 4144 | Construction Contractor Licensing

The Construction Contractors Board (CCB) fee for a residential general or residential specialty contractor license is $250 and an applicant must take a 16-hour course on law and business practices prior to being issued a license. The Building Codes Division (BCD) fee for a plumbing contractor license is $375 and for an electrical contractor license is $150. HB 4144 waives the fee and training requirement for residential general or residential specialty contractor license applicants with at least eight years of training if they pass a written examination. For those who obtain a residential general or residential specialty contractor license from the CCB through the provisions of the bill, HB 4144 also waives the fee for a plumbing contractor or electrical contractor license from the Building Codes Division (BCD). The bill passed the House unanimously and passed the Senate 21-8.

Effective: January 1, 2019 | Chapter 046

HB 4154 | Construction Subcontractor Employee Wages

HB 4154 would have created contractor liability for unpaid wages, benefits, and contributions of subcontractor employees. The House Business and Labor Committee amended and passed the bill to the House Rules Committee which adopted the -A3 amendments, narrowing the scope of the bill. HB 4154 passed the House 31-26 and was referred to Senate Rules Committee, but did not advance further.

HB 4160 | Paid Family Leave

HB 4160 would have created an insurance benefits program to provide a portion of wages to employees with a qualifying reason for family and medical leave. The bill would have permitted up to 12 weeks of benefits per benefit year and an additional six weeks for parental leave. The insurance fund would have been supported by payroll contributions up to .05 percent of employee wages to be paid by employers and employees. The bill would have allowed leave to run concurrently with the Oregon Family Leave Act, and would have prohibited an employer from requiring an employee to use paid time off as condition of using leave benefits. The bill did not receive a public hearing.

City of Portland 2018 Legislative Report I N D E X – SENATE BILLS | A

INDEX

SB 1506...... 42 SB 1507...... 5, 7, 19, 21 SB 1508...... 19, 21 SB 1509...... 5, 20 SB 1510...... 16 SB 1512...... 16 SB 1515...... 24 SB 1516...... 14 SB 1518...... 17 SB 1519...... 18 SB 1523...... 39 SB 1528...... 6, 39 SB 1529...... 6, 34, 39 SB 1531...... 36 SB 1535...... 47 SB 1537...... 18 SB 1538...... 42 SB 1539...... 8, 9 SB 1541...... 5, 19, 21 SB 1542...... 24 SB 1543...... 36 SB 1544...... 11 SB 1546...... 33 SB 1551...... 13 SB 1555...... 8 SB 1556...... 26 SB 1558...... 46 SB 1561...... 33 SB 1562...... 36 SB 1563...... 23 SB 1564...... 31 SB 1565...... 32 SB 1566...... 6, 7, 34, 39 SB 5703...... 6, 37 SJM 201 ...... 36 SJM 202 ...... 36

City of Portland 2018 Legislative Report I N D E X – HOUSE BILLS | B

HB 4001 ...... 5, 7, 19, 21 HB 4099 ...... 20 HB 4002 ...... 19, 21 HB 4103 ...... 29 HB 4003 ...... 5, 20 HB 4108 ...... 28 HB 4004 ...... 17 HB 4109 ...... 21 HB 4005 ...... 25 HB 4110 ...... 11 HB 4006 ...... 7, 26 HB 4111 ...... 44 HB 4007 ...... 5, 7, 27 HB 4112 ...... 35 HB 4008 ...... 12 HB 4113 ...... 15 HB 4010 ...... 5, 7, 27 HB 4115 ...... 35 HB 4012 ...... 34 HB 4116 ...... 44 HB 4015 ...... 20 HB 4117 ...... 15 HB 4022 ...... 42 HB 4120 ...... 5, 41 HB 4023 ...... 45 HB 4121 ...... 18 HB 4025 ...... 17 HB 4124 ...... 30 HB 4027 ...... 45 HB 4126 ...... 21 HB 4028 ...... 40 HB 4127 ...... 32 HB 4031 ...... 30 HB 4128 ...... 32 HB 4034 ...... 30 HB 4130 ...... 44 HB 4041 ...... 47 HB 4131 ...... 35 HB 4042 ...... 47 HB 4134 ...... 7, 28 HB 4049 ...... 37 HB 4137 ...... 7, 8 HB 4054 ...... 5, 27 HB 4138 ...... 20, 39 HB 4055 ...... 37 HB 4139 ...... 41 HB 4056 ...... 37 HB 4140 ...... 23 HB 4059 ...... 43, 44 HB 4143 ...... 5, 7, 8 HB 4060 ...... 43 HB 4144 ...... 48 HB 4062 ...... 43 HB 4145 ...... 36, 38 HB 4063 ...... 43 HB 4147 ...... 13 HB 4064 ...... 44 HB 4148 ...... 18 HB 4066 ...... 15 HB 4149 ...... 38 HB 4070 ...... 34 HB 4151 ...... 29 HB 4074 ...... 40 HB 4152 ...... 17 HB 4075 ...... 30 HB 4154 ...... 48 HB 4076 ...... 16 HB 4155 ...... 5, 45 HB 4077 ...... 22 HB 4156 ...... 29 HB 4080 ...... 6, 40 HB 4158 ...... 16 HB 4085 ...... 28 HB 4159 ...... 35 HB 4086 ...... 10 HB 4160 ...... 48 HB 4088 ...... 12 HB 4161 ...... 38 HB 4089 ...... 11 HB 5201 ...... 5, 6, 7, 8, 9, 19, 21, 28 HB 4090 ...... 17 HJR 201 ...... 5, 7, 26 HB 4091 ...... 40 HJR 202 ...... 26 HB 4093 ...... 47 HJR 203 ...... 25 HB 4098 ...... 47

City of Portland 2018 Legislative Report

The City of Portland operates without regard to race, color, national origin, religion, sex, sexual orientation, gender identity, marital status, age or disability in accordance with the Civil Rights Act of 1964, the Civil Rights Restoration Act of 1987, Executive Order 12898 on Environmental Justice and related statutes and regulations, including Title II of the ADA, ORS chapter 659A, and Portland City Code Chapter 23. Title VI of the Civil Rights Act requires that no person in the United States shall be excluded from participation in, be denied the benefits of or otherwise be subjected to discrimination under any City program or activity, on the grounds of race, color, or national origin.

To help ensure access to City programs, services and activities, the City will provide translations, will reasonably modify policies and procedures and will provide auxiliary aids or alternative formats to persons with disabilities. Any person who believes they have been aggrieved by an unlawful discriminatory practice may file a complaint with the Bureau or the City.

For accommodations, translations, to file a complaint or additional information, contact the Title VI/Title II Program Manager at 421 SW 5th Avenue, Suite 500, Portland, OR 97204, by email at [email protected] or by telephone (503) 823- 2559, City TTY 503-823-6868, or use Oregon Relay Service: 711.