OregonHB 40272026 Regular SessionHouseWALLET

Relating to the Bureau of Labor and Industries; and prescribing an effective date.

Sponsored By: Dacia Grayber (Democratic), Hai Pham (Democratic), Kathleen Taylor (Democratic), Mari Watanabe (Democratic), Nathan Sosa (Democratic), Sue Rieke Smith (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 2 costs, 1 mixed.

New BOLI fund with strong reserves

The law creates a BOLI Expenses Fund outside the General Fund to pay agreed administrative costs and to transfer money to BOLI starting July 1, 2029. The department must set assessment rates so the fund holds at least $4.25 million by June 30, 2029; at least the greater of $4.25 million or 12 months of projected expenses by June 30, 2030; and, each year from July 1, 2031, at least the greater of $9.5 million or 12 months of projected expenses by June 30, while minimizing big rate swings. After July 1, 2031, new assessment‑funded positions cannot add more than $5.25 million per year. Money in the Workers’ Benefit Fund cannot be moved to the BOLI Expenses Fund for those administrative funding purposes, which protects worker benefits.

New employer assessments and reporting from 2027

Starting January 1, 2027, employers that owe the hourly assessments must file a combined report showing total hours worked and amounts due, using the Department of Revenue form and deadlines. From the same date, the Director sets assessment rates each year and sets separate rates for the Workers’ Benefit Fund and the BOLI Expenses Fund based on each fund’s balances and expected costs. The department deposits employer‑collected amounts into those two funds as the law specifies. State agencies may take steps before January 1, 2027, to prepare for these changes.

Higher prevailing-wage fee on public contracts

Public agencies that award public works contracts must pay BOLI a fee equal to 0.1% of the contract price, with a $250 minimum and a $12,500 maximum. The maximum fee is higher than before. By September 15 of each even‑numbered year, the BOLI Commissioner reports to lawmakers on whether the cap brings in enough money for staffing.

Retroactive increases for some worker benefits

The law creates a Retroactive Program that can raise certain past worker benefits. Each year the Director sets how much money is available and the benefit level. If money is not enough, the Director may lower the benefit level for that year. Insurers or self‑insured employers pay the increases first and may be reimbursed from the Workers’ Benefit Fund. The program does not raise ORS 656.210 benefits for injuries on or after April 1, 1974.

Oregon worker health research gets funding

The state provides an ongoing transfer to the Oregon Institute of Occupational Health Sciences for worker health research. The amount equals the revenue equivalent of one‑sixteenth of one cent of deductible wages, plus the same amount from a related assessment. The money can only pay the Institute’s expenses, and the Institute must file a yearly report on how it used the funds.

Sponsors & Cosponsors

Cosponsors

Deb Patterson
Democratic • Senate
Farrah Chaichi
Democratic • House
John Lively
Democratic • House
Lesly Muñoz
Democratic • House
Lisa Fragala
Democratic • House
Mark Gamba
Democratic • House
Shannon Isadore
Democratic • House
Thuy Tran
Democratic • House
Tom Andersen
Democratic • House
Travis Nelson
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 84 • No: 44

Senate vote • 3/4/2026

Third reading. Carried by Taylor. Passed.

Yes: 18 • No: 12

House vote • 2/27/2026

Third reading. Carried by Watanabe. Passed.

Yes: 33 • No: 11

legislature vote • 2/25/2026

Ways and Means: Heard and Reported Out

Yes: 28 • No: 18

House vote • 2/16/2026

Labor and Workforce Development: Heard and Reported Out with Amendments

Yes: 5 • No: 3

Actions Timeline

Chapter 30, (2026 Laws): Effective date June 5, 2026.
4/6/2026House
Governor signed.
3/31/2026House
President signed.
3/6/2026Senate
Speaker signed.
3/5/2026House
Third reading. Carried by Taylor. Passed.
3/4/2026Senate
Second reading.
3/3/2026Senate
Recommendation: Do pass the A-Eng. bill.
3/3/2026Senate
Referred to Ways and Means.
3/2/2026Senate
First reading. Referred to President's desk.
2/27/2026Senate
Third reading. Carried by Watanabe. Passed.
2/27/2026House
Second reading.
2/26/2026House
Recommendation: Do pass.
2/25/2026House
Work Session held.
2/25/2026House
Returned to Full Committee.
2/24/2026House
Work Session held.
2/24/2026House
Assigned to Subcommittee On Transportation and Economic Development.
2/19/2026House
Referred to Ways and Means by prior reference.
2/18/2026House
Recommendation: Do pass with amendments, be printed A-Engrossed, and be referred to Ways and Means by prior reference.
2/18/2026House
Work Session held.
2/16/2026House
Work Session held.
2/11/2026House
Public Hearing held.
2/9/2026House
Public Hearing scheduled.
2/4/2026House
Informational Meeting scheduled.
2/2/2026House
Referred to Labor and Workforce Development with subsequent referral to Ways and Means.
2/2/2026House
First reading. Referred to Speaker's desk.
2/2/2026House

Bill Text

Enrolled
3/4/2026
PDF
A-Engrossed
2/18/2026
PDF
House Amendments to Introduced
2/18/2026
PDF
HLWD Amendment -3 (Proposed)
2/16/2026
PDF
HLWD Amendment -7 (Adopted)
2/16/2026
PDF
HLWD Amendment -1 (Proposed)
2/11/2026
PDF
HLWD Amendment -2 (Proposed)
2/11/2026
PDF
HLWD Amendment -3 (Proposed)
2/11/2026
PDF
HLWD Amendment -1 (Proposed)
2/9/2026
PDF
HLWD Amendment -1 (Proposed)
2/4/2026
PDF
Introduced
1/28/2026
PDF

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