SALEM — The House Committee on Rules adopted the dash-10 amendment to House Bill 3984 on June 27, 2025, a measure that would make an electric company liable for federal income tax liabilities imposed on amounts received by wildfire plaintiffs for fires allegedly ignited between Jan. 1, 2020, and Jan. 1, 2025, and that authorizes the Public Utility Commission to set wildfire-safety standards and seek certification from electric companies.

The amendment also creates an exemption in the Oregon tax code, establishes legislative findings and intent on wildfire safety, requires the PUC to have a third-party expert conduct a study of catastrophic-wildfire risk and recovery and to report to the Legislative Assembly by Sept. 15, 2026, and declares an emergency so portions would be effective upon passage.

The bill sponsor, Representative Kropf, said the measure has three primary parts: establishing safety standards for utilities, giving the PUC tools to audit and enforce those standards, and creating a mechanism to address federal tax consequences for wildfire plaintiffs when federal relief sunsets. "We have been responsive to what has happened during our fire seasons and trying to be forward looking about what can we do to hopefully avoid those types of catastrophes going forward," Kropf said.

Deputy Legislative Counsel Chris Allnat walked committee members through the dash-10 language. He summarized the provision that assigns liability to an electric company in four parts, and explained the tax-liability element as limited to situations when "the federal income tax liability has to actually be imposed on those amounts that are received by the plaintiff or class member in relation to the civil action and that the plaintiff or class member owes or pays." Allnat told the committee that drafting conventions favor present-tense verbs — "owe or pay" — rather than future-tense constructions.

Committee members raised procedural and fairness concerns about inserting state law into ongoing litigation. Vice Chair Drazen said she was uneasy about creating what she called a "secondary liability" mechanism but ultimately supported the amendment to avoid leaving similarly situated wildfire survivors with unequal tax outcomes depending on the timing of their settlements or judgments. She said she preferred a federal extension of the disaster tax relief but accepted the state-level measure as a means to offer parity.

Representative Bossard Davis asked whether the amendment applies to settlements as well as judgments; Allnat confirmed that the provision covers amounts received "in relation to the civil action," which includes settlements tied to the civil claim.

On a procedural motion, Vice Chair Pham moved to adopt the dash-10 amendment; the roll call recorded Representative Walser Davis voting no, Representative Elmer excused, and other members voting yes. The committee then voted to send House Bill 3984 as amended to the floor with a due-pass recommendation. Co-carriers for floor action were named as Kropf and Marsh.

The fiscal note posted on OLIS listed an indeterminate revenue impact; committee staff noted a fiscal-impact statement was posted to OLIS. The amendment requires the PUC to establish certification criteria for electric companies and to commission the third-party study; details of certification standards and enforcement procedures would be set in administrative processes should the bill become law.

If enacted, the tax-liability mechanism in the amendment would only apply where federal tax liabilities are in fact imposed on wildfire-related awards or settlements and where the plaintiff owes or pays those taxes. Backers said the provision is intended to put late-resolving plaintiffs in the same position as those whose awards fell within the current federal relief period, which expires at the end of 2025 unless extended by Congress.

The bill now awaits floor consideration in the House.