The Oregon Legislature adjourned the 2024 legislative session earlier than expected on March 7. During even-numbered years, the legislature convenes for only 35 days compared to odd-numbered years when the sessions last up to 160 days. Short sessions feature a significantly smaller number of introduced bills since legislators are limited in the number of bills they are allowed to file. In total, 291 bills were introduced with approximately 115 passed by both chambers.
Here is what you may have missed:
Housing
Governor Tina Kotek (D) highlighted housing as her number one priority for this legislative session. According to the governor, “Decades of underbuilding have left Oregon with a severe housing shortage that is driving up rents, home prices, and worsening our homelessness crisis. That’s why SB 1537 is my top priority in the short session.”
SB 1537 was the only bill introduced by the governor this year. The measure creates the Housing Accountability and Production Office (HAPO) to facilitate the construction of more houses and address Oregon’s housing shortage. The measure also addresses issues with land supply. As the legislative session began and the bill received its first consideration, the governor revealed a coalition of organizations that backed the bill, including the Oregon Association of Realtor, the Oregon Housing Alliance, and many others. With the support of these organizations and the governor, this bill passed the Senate and the House before adjournment and awaits the Governor’s signature.
Governor Kotek’s housing package, which is highlighted by SB 1537 but also includes HB 4134 and SB 1530, contains an investment of approximately $376 million in infrastructure and housing funding. Representative Lucetta Elmer (R), the sponsor of HB 4134, has already indicated her intent to introduce legislation in 2025 to provide funding to more cities throughout Oregon.
Drugs
In 2020, Oregon voters approved Measure 110 and the state became the first in the nation to decriminalize small amounts of drugs that are included in the Controlled Substances Act. In the years since passage of this measure, the state has seen drug usage and overdoses increase as implementation of Measure 110 experienced problems. These complications have impacted public health, orderly conduct, and business operations in large metropolitan areas, causing legislators to review this issue during the 2024 session. The legislature introduced and passed HB 4002 to reinstate criminal penalties for personal drug possession. In a press release on March 7, Governor Kotek stated her intent to sign HB 4002 in the next 30 days. She also emphasized the need for the state and localities to, during implementation, continue to find ways to balance treatment with accountability. Further developments in this sphere are expected in the coming months.
Other Key Legislation
Artificial Intelligence: The legislature passed HB 4153 to create the Task Force on Artificial Intelligence. Similar task forces have been established across the country, both by legislation (in New York, Texas, and Vermont) and by executive order (in Virginia, Rhode Island, and Alabama).
PBM Reform: HB 4149 passed both chambers and is pending consideration by Governor Kotek. The measure makes changes to existing healthcare law. Among the notable changes are a requirement for pharmacy benefit managers to be licensed beginning January 1, 2025, and authorization for PBMs to negotiate discounts and other incentives with drug manufacturers. The measure also contains a regulatory component and authorizes the Department of Consumer and Business Services to take any necessary steps to create rules before implementation. These conversations will commence soon.
Right to Repair: After California, Minnesota, and New York passed Right to Repair legislation in 2023, the Oregon Legislature passed their own version in 2024. Oregon’s bill goes further than other state’s iterations by outlawing “parts pairing.” This ban was a central topic of debate between manufacturers, consumer advocates, and the legislature. The bill awaits the governor’s signature.
This session was the last under current leadership as Speaker Dan Rayfield (D) steps down to run for state Attorney General. House Majority Leader Julie Fahey (D) was elected as the next speaker of the House. Fahey has served as Chair of the Committee on Housing and Homelessness and the Committee on Rules where her priorities were housing affordability and democracy reforms, respectively. Interim committee meetings will begin soon. For further insights into any legislation passed this session or discussions occurring during the interim, please contact Constantine Costidis at cec@stateside.com