Note: The following was taken from a report from Cindy Robert, lobbyist for AIA Oregon, on the entire 2023 General Session - this excerpt focuses specifically on activity of specific interest to architects and AIA Oregon. To read the entire report, go here.
American Institute of Architects Oregon
With passage of the Climate Package (kudos to Chris Forney for all his work and Kaley Fought for her testimony) and the Board of Architect Examiner’s technical bill (applause to Mark Jacobsen, Curt Wilson and Eric Sandoval for their time and efforts) this can be considered a successful session for our advocacy efforts. However, much time and resources were spent on two of the bills that AIAO brought forward only to be thwarted by timing issues with the walkout, but more specifically with financial concerns. I cannot thank Heather Wilson, Kim Olson, Jay Raskin, Dick Steinbrugge and Jon Larson enough for the time they spent with me on our legislation. The AIAO Legislative Affairs Committee provided valuable insights and consideration of all legislation this session and we simply could not have been better served by all the members. Thank you!
SB 848 – Led with incredible efforts by Marshall Coba, Jon Larson and Tonya Finley, we joined with ACEC to push a “Duty to Defend” bill. So many meetings with stakeholders, legislators, staff and counsel led to a negotiated bill that passed all policy hurdles. The Senate Judiciary Committee sent the bill to Ways & Means with unanimous approval. Financial concerns from Associated Oregon Counties caused a speed bump, but it was the Department of Administrative Service (DAS) that became the ultimate barrier to movement. DAS has committed to working with us in the next few months to untangle their financial concerns with the goal of reintroduction of legislation in 2024.
HB 3486 – Resilient spaces in new school buildings so communities can return to them after an earthquake just seems like the right thing to do. Jay, Dick and I fought hard to see this legislation happen with lots of work with Legislative Counsel on the right language, incredible support and commitment to our cause by Representatives Grayber and Evans, and many conversations with legislators trying to make the complicated issue less so. But, we could not overcome opposition from the Oregon School Board Association and the Coalition of Oregon School Administrators who considered this an “unfunded mandate,” forcing the legislature to find the funds to pay for seismic improvements. Legislative leadership has assured us the conversation is not over, but it will be a big hill to climb.
By the way, two bills we were working on prior to session were set aside: Timing for HB 2771, changing the State Resilience Officer duties, was not right as a new Governor with new staff needed time to determine what they want this role (which we established with legislation in 2015) to be in the current administration; and LC 3296 on building climate impacts, which saw parts of absorbed into the Resilient Efficient Buildings agenda and the Legislative Affairs Committee decided to focus on pushing that package.
As you can see in this list of bills that passed, and what is missing because it was thwarted, a good session for the built environment! The Governor has until July 25 to sign, veto, or allow legislation to become law without her signature.
Contracting
HB 2649 Apprentices in Public Contracting - Effective 91 days after Sine Die
Expands the apprenticeship utilization requirement for public improvement projects in Oregon. It includes the Oregon Department of Transportation, Higher Education Coordinating Commission, public universities, and community college districts that use public funds for construction costs. The bill mandates that contractors establish outreach plans for women, minorities, and veterans, and report information on apprentice utilization and diversity goals to the Oregon Department of Administrative Services. Non-compliant contractors may face penalties, with the collected funds going towards expanding apprentice training programs. Additionally, the bill increases the apprentice utilization 8 requirement from 12 to 15 percent of all work hours on public improvement projects starting from January 1, 2025.
* Final bill does not include local public contracting.
HB 3332 Buy America Requirements for Public Projects Effective 91 days after Sine Die
Enacts Buy America requirements, similar to federal requirements, for public improvement contracts or contracts for public works by state contracting agencies in Oregon. The measure requires state contracting agency that procures public improvement contract or contract for public works, with estimated contract value of $150,000 or more, include in solicitation documents clear and conspicuous notice that resulting public improvement contract or contract for public works will require contractors to use iron, steel, coatings for iron and steel and manufactured products that are made in the United States. Also, the measure permits the Director of Oregon Department of Administrative Services (DAS), Oregon Director of Transportation (ODOT), or their designee, to waive the requirement to use iron, steel, coatings for iron and steel and manufactured products made in United States on public improvement contracts and contracts for public works.
HB 3572 5% Preference to a B Corp Effective 91 days after Sine Die
HB 2296 (2013) created a new corporation status for benefit companies. A benefit company is a type of corporation or limited liability company that considers its impact on society and the environment in addition to earning a profit. Benefit company status only affects corporate purpose, accountability, and transparency and does not change tax or tax- exempt status. As of March 2023, there are currently 2,635 active benefit companies operating in Oregon. HB 3572 encourages contracting agencies to grant preference to procuring public use goods and services by a benefit company, whose majority of their regular and full-time workforce operates in Oregon at the time of bidding. It allows procurement preference only if the goods and services are not more than five percent of the goods and services available from a non-benefit company contractor.
* SB 442, which we opposed, did fail – it provided grant preference to procuring for public use goods that are from within Oregon.
SB 1047 Contract Thresholds - Effective 91 days after Sine Die
Raises the contract price threshold under which contracting agencies may apply certain solicitation and procurement methods for public contracts and requires DAS to promote a policy of diversity, equity, and inclusion in public contracting. The measure increases small procurement dollar threshold from $10,000 to $25,000 and intermediate procurement dollar threshold from to $150,000 to $250,000, resulting in more contracts being small and intermediate procurements, which are simpler and faster for firms to navigate.
Practice/Licensing
SB 224 OSBAE Bill - Effective 91 days after Sine Die
Modifies and updates statutes regulating the practice of architecture in Oregon. The measure updates terminology and concept descriptions related to architectural practice to be more consistent with architectural practice across the country.
SB 224 accomplished the following:
Updates definitions.
Simplifies and streamlines statutory language.
Removes redundancies within the statutes and improve clarity and consistency.
Removes confusion regarding plan stamping by other design professionals.
Specifies how long project documentation should be retained.
Reduces barriers to architectural firm registration by changing ownership and firm name requirements.
Allows unregistered firms to offer to provide architectural services prior to registration.
Streamlines the registration renewal process.
Moves the list of fee-based activities to rules.
Alters the term dates of board members and remove the five-year residency requirement.
Resilience
HB 3059 Disaster Response Assistance Matching Fund - Effective Upon Passage
Includes several components related to emergency preparedness, response, and recovery. The measure establishes the Oregon Disaster Response Assistance Matching Fund for the Department of Emergency Management to provide grants to local governments to be used as match of federal disaster aid. It directs the Legislative Revenue Office to conduct a study on tax benefits to emergency management volunteers; clarifies volunteer paid leave around disaster relief or recovery; and directs the Department of Emergency Management to provide technical assistance to local entities for several emergency related functions. Additionally, the measure directs the Department to identify existing community organizations active in disasters and provide grants for their support, and finally the measure establishes a Compliance Division within the Department relating to federal monies received. The bill includes
$1 million of one-time General Fund for deposit into the Assistance Matching Fund. It also includes $1,268,856 General Fund for the establishment of five permanent full-time positions, four positions for the Compliance Division, and one for the grant program.
HB 3215 Residential Units Destroyed by Disasters - Effective Upon Passage
Responding to wildfires, HB 3215 authorizes the Housing and Community Services Department to provide loans, grants or other assistance to repair or replace damaged residential units or infrastructure destroyed during a disaster, and support residents through rental assistance and other services. “Residential units” includes recreational vehicles, manufactured dwellings, prefabricated structures, small homes and dwelling units of any type. The measure creates the Disaster Housing Recovery Fund to take the place of the Wildfire Damage Housing Relief Account and transfers a balance of $220,000 to this new account. The account will be for resources to be deposited for permissible purposes for use as needs may arise. There is no other appropriation associated with this measure.
Sustainability
HB 3031 Ventilation Quality in Schools - Effective January 1, 2024
Requires school districts that receive federal or state funding for heating, ventilation, and air conditioning (HVAC) improvements to use that funding to assess ventilation systems, place and assess carbon dioxide monitors in every classroom, and submit a report on ventilation and carbon dioxide monitor assessments to a mechanical engineer for review. The measure further requires school districts to carry out improvements recommended by the reviewing engineer, establishes labor requirements for contractors making those improvements, and requires school districts to submit a report to the Oregon Department of Education on the improvements made.
HB 3409 End of Session Climate Package - Effective Upon Passage
As the walkout lingered, legislative leadership attempted to roll a multitude of bills into “packages” in order to hasten the pace of voting should Republicans return. Most (but not all) of what was included in a package had already passed out of a policy committee in a different form and was waiting for funding. The “climate package” (HB 3409) was one such bill and it combined 15 proposals to help communities, property owners and businesses respond to the impact of climate change. It included the Oregon Global 10 Warming Commission (OGWC) and Natural and Working Lands (N&WL) issues, as well as urban trees guidelines.
HB 3409 also included the provisions and investments recommended by the Resilient Efficient Buildings (ReBuild) Task Force which worked throughout 2022 to develop a framework of economical, forward-thinking ways to reduce emissions and position the state to receive nearly $1 billion in Inflation Reduction Act funding. The aim is to bring down the cost of utilities and reduce Oregon’s carbon footprint by:
Making sure homes and commercial buildings are built and operated in an energy efficient manner.
Giving contractors the necessary training to retrofit homes with energy efficient appliances and other home technologies.
Creating a position at the Oregon Department of Energy to help Oregonians apply for and secure funding for their energy-efficiency retrofits.
As passed, HB 3409 contains policy and financial support for programs designed to address climate issues through an equitable, community-focused approach, while maximizing Oregon’s federal funding opportunities. These programs include:
Standards for resilient and energy-efficient commercial and residential buildings.
Grants to support emergency and natural disaster resilience hubs.
Support for renewable and clean energies in Oregon.
Financial assistance to incentivize natural climate solutions.
Grants to plan and develop green infrastructure projects.
Electric vehicle incentives for medium and heavy-duty vehicles.
Positions for environmental justice coordination, which will enable access to federal funds from the Inflation Reduction Act.
Prior to one last amendment, the “aspiration” of the state to reduce greenhouse gas emissions was seemingly changed to make it a “policy” of the state to reduce greenhouse gas emissions. A final amendment removed language leaving the state’s emission reduction goals intact.
Partner bill HB 3630 invests $90 million related to the “Climate Package” - programs administered by the Oregon Department of Energy (ODOE). Collectively, these programs provide for:
Assistance for environmental justice communities.
Development of a comprehensive state energy strategy.
Grants for counties so they may develop energy resilience plans to prepare for, and maintain services during, major grid disruptions.
Establishment of a home energy savings program to provide rebates, funded by the federal Inflation Reduction Act, to homeowners for energy-efficient retrofits and appliances.
Establishment of a single resource for information and technical assistance related to available energy efficiency incentives and programs.
$10 million to support and expand climate resilience hubs for emergency preparedness.
$20 million to replenish the Community Renewable Energy Grant Program, funding renewable energy and community resilience projects pursued by counties, cities, school districts, and more.
ODOE anticipates receiving $57 million in federal funding for the High Efficiency Electric Home Rebate program, which provides rebates for purchase and installation of qualifying electrification projects in low- and moderate-income households; and $57 million for the Home Energy Performance-Based, Whole-House Rebates program, to support performance-based rebates for residential energy efficiency retrofits. Federal guidance has not yet been received and the start date for the funding is yet unknown. 11
Workplace/Workforce
SB 907 Workers Refusing Dangerous Work - Effective January 1, 2024
Makes it an unlawful practice for any person to bar or discharge from employment or discriminate against an employee or prospective employee because they refused to expose themselves to serious injury or death from a hazardous condition at the place of employment when there are no reasonable alternatives and the person is acting in good faith.
SB 999 Paid Leave Modifications - Effective Upon Passage
Makes several modifications to Paid Leave Oregon and Oregon Family Leave Act, including requiring employers to offer an employee who returns from leave and whose employment no longer exists an equivalent position at a job site located within 50 miles of the original job site and requiring consideration of whether there is a significant personal bond resembling a family relationship to determine whether a person qualifies as a family member by reason of affinity.
Other
HB 2079 Historic Property Tax Credit - Effective January 1, 2024
Requires the Legislative Revenue Officer to study the creation of a tax credit and direct grant program to preserve historic property in Oregon. Requires the report be submitted by September 15, 2024 to the interim committees on revenue. Requires the report to include recommendations for potential legislation.
Capital Construction
As per the norm, I share with the legislative committee those specific projects that have received funding this session so you may consider what possibilities lie ahead for you and/or your firms:
SB 5506 Budget Reconciliation (“Omnibus” or “Christmas Tree” bill)
HB 5005 Bond Authorization
HB 5030 Lottery Bond Authorization