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OregonHB 40042026 Regular SessionHouseWALLET

Relating to natural resources; and prescribing an effective date.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 5 benefits, 0 costs, 1 mixed.

Forest owners can delay mortality-related taxes

Small tract forestland owners can delay added taxes when Douglas-fir mortality alone causes loss of the special assessment. Owners must notify the county assessor in writing by July 1 of the assessment year and attest to the mortality. The taxes remain a possible debt, and the assessor must note that liability on the tax roll each year. Disqualification for another reason makes the taxes due and triggers reassessment at real market value. This temporary deferral ends January 2, 2028.

New exit-tax calculations for forest owners

Beginning January 2, 2028, the law revises added taxes when land loses its small tract forestland assessment. For land keeping another listed special assessment, taxes compare small-tract taxes with standard western or eastern Oregon forestland taxes. That comparison covers the lesser of 10 years or consecutive years in the small-tract program. Land without another listed assessment owes the existing small-tract exit-tax amount plus a second tax difference. The second comparison measures standard forestland taxes against taxes otherwise due, covering the lesser of five years or consecutive forestland years. Existing rules that delay or eliminate added taxes still apply, and owners can pay before the next general tax roll.

Certification without using supplemental groundwater

Supplemental groundwater permit holders can get a water-right certificate without actually using that source. Their facilities must handle the full permitted flow rate and total amount, and holders must be ready, willing, and able to use it. They must also have used available primary-source water under that right's terms, or weather must have made supplemental use unnecessary.

More time for delayed groundwater projects

Eligible groundwater permit holders can receive one good-cause extension to finish construction and put water to its approved use. A government permit delay or appeal of a government decision must have delayed the project. The extension lasts up to seven years from approval, and a complete application must arrive by the current permit or extension deadline. Municipal, quasi-municipal, group domestic, and expanded group domestic uses are excluded. This applies to applications filed on or after the law's effective date and pending applications without a proposed final order then. The law takes effect on the 91st day after the 2026 regular session adjourns.

Payment support for canceling groundwater rights

Oregon's Water Resources Department must help eligible water users enroll in the federal Conservation Reserve Enhancement Program. This support covers voluntary groundwater-right cancellations where the department does not allow new groundwater rights for irrigation. The department can use grants, contracts, and direct payments to support program enrollees. The law sets no payment amount and does not guarantee an individual payment.

Water agency must employ experienced engineer

Oregon's Water Resources Department must employ a registered engineer experienced in water-related engineering for its specified statutory engineering duties. The department director or a principal assistant no longer has to be an engineer.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 98 • No: 1

Senate vote • 3/4/2026

Third reading. Carried by McLane. Passed.

Yes: 28 • No: 1

Senate vote • 3/2/2026

Finance and Revenue: Heard and Reported Out

Yes: 4 • No: 0

House vote • 2/24/2026

Third reading. Carried by Marsh. Passed.

Yes: 48 • No: 0

House vote • 2/18/2026

Revenue: Heard and Reported Out with Amendments

Yes: 7 • No: 0

House vote • 2/11/2026

Agriculture, Land Use, Natural Resources, and Water: Heard and Reported Out with Amendments

Yes: 11 • No: 0

Actions Timeline

  1. Chapter 29, (2026 Laws): Effective date June 5, 2026.

    4/6/2026House

  2. Governor signed.

    3/31/2026House

  3. President signed.

    3/6/2026Senate

  4. Speaker signed.

    3/5/2026House

  5. Third reading. Carried by McLane. Passed.

    3/4/2026Senate

  6. Second reading.

    3/3/2026Senate

  7. Recommendation: Do pass the B-Eng. bill.

    3/3/2026Senate

  8. Public Hearing and Work Session held.

    3/2/2026Senate

  9. Referred to Finance and Revenue.

    2/25/2026Senate

  10. First reading. Referred to President's desk.

    2/25/2026Senate

  11. Third reading. Carried by Marsh. Passed.

    2/24/2026House

  12. Carried over to February 24, 2026 Calendar by virtue of adjournment.

    2/23/2026House

  13. Second reading.

    2/20/2026House

  14. Recommendation: Do pass with amendments and be printed B-Engrossed.

    2/19/2026House

  15. Public Hearing and Work Session held.

    2/18/2026House

  16. Referred to Revenue by prior reference.

    2/16/2026House

  17. Recommendation: Do pass with amendments, be printed A-Engrossed, and be referred to Revenue by prior reference.

    2/16/2026House

  18. Work Session held.

    2/11/2026House

  19. Public Hearing held.

    2/2/2026House

  20. Referred to Agriculture, Land Use, Natural Resources, and Water with subsequent referral to Revenue.

    2/2/2026House

  21. First reading. Referred to Speaker's desk.

    2/2/2026House

Bill Text

  • HREV Amendment -A17 (Adopted)

    2/18/2026

    PDF

  • HALNRW Amendment -11 (Adopted)

    2/11/2026

    PDF

  • HALNRW Amendment -12 (Proposed)

    2/11/2026

    PDF

  • HALNRW Amendment -13 (Adopted)

    2/11/2026

    PDF

  • HALNRW Amendment -14 (Adopted)

    2/11/2026

    PDF

  • HALNRW Amendment -15 (Combined)

    2/11/2026

    PDF

  • HALNRW Amendment -5 (Proposed)

    2/11/2026

    PDF

  • HALNRW Amendment -3 (Proposed)

    2/2/2026

    PDF

  • HALNRW Amendment -5 (Proposed)

    2/2/2026

    PDF

  • HALNRW Amendment -7 (Proposed)

    2/2/2026

    PDF

  • A-Engrossed

    PDF

  • B-Engrossed

    PDF

  • Enrolled

    PDF

  • House Amendments to A-Engrossed

    PDF

  • House Amendments to Introduced

    PDF

  • Introduced

    PDF

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