Ways and Means capital subcommittee advances BOLI budget, firearms dealer licensing and other bills; hospital fee increase, CHIPS fund changes move forward

The Capital Construction Subcommittee of the Oregon Ways and Means Committee met June 18, 2025, in Rumi to consider and advance a series of budget and policy measures to the full Ways and Means Committee. The subcommittee approved the Legislative Fiscal Office (LFO) recommendations for the Bureau of Labor and Industries budget (House Bill 5015) and moved several other bills — including a state firearms dealer licensing framework, changes to the CHIPS fund, prevailing wage coverage adjustments, and an increase in hospital licensing fees — to the full committee with due‑pass recommendations.

LFO recommended a $79,231,998 total‑funds budget for BOLI in House Bill 5015 (including about 203.38 FTE), a package that LFO described as roughly a 31% increase from the 2023 legislatively approved budget and which includes investments to expand civil rights enforcement, wage and hour enforcement, apprenticeship support, and agency operations. After discussion and brief debate, the subcommittee adopted the LFO recommendation and the dash‑3 amendment and moved HB 5015 as amended to the full committee with a due‑pass recommendation.

The meeting also forwarded a trio of policy bills and amendments to the full committee. Members adopted amendments and voted to move forward:

- House Bill 2688 (prevailing wage): The subcommittee adopted amendments that expand the definition of certain off‑site fabricated work that can be treated as public works for prevailing‑wage purposes, and advanced the bill to the full committee with a due‑pass recommendation.

- House Bill 2322 (CHIPS fund rename and use): LFO presented two amendments to change allowable expenditures and administrative details; the subcommittee adopted those amendments and moved the measure to the full committee. LFO noted an unobligated balance of roughly $30 million in the CHIPS fund that otherwise would have reverted to the general fund absent this change.

- House Bill 3076 (state firearms dealer licensing): The subcommittee considered two LFO‑recommended amendments (A3 and A4) that adjusted operative dates, inspection frequency, removed an emergency clause, and added an appropriation. The subcommittee adopted both amendments after robust debate that split along expected policy lines and moved HB 3076 as amended to the full committee with a due‑pass recommendation.

Other measures advanced included a statewide attendance study (House Bill 3199), a Willamette Valley municipal solid waste task force measure (House Bill 3794), a contract and program to support affordable housing property management (Senate Bill 51, as amended), and an amendment to hospital licensing fees and related provisions (Senate Bill 842, dash‑3 as recommended by LFO). The subcommittee also received and acknowledged a Department of Administrative Services report on recent debt refundings and savings.

Votes at a glance

- HB 5015 — Bureau of Labor and Industries budget (as amended): Adopted by the subcommittee and moved to Ways and Means Full with a due‑pass recommendation. LFO recommended a total‑funds budget of $79,231,998 and 203.38 FTE; the package included substantial general‑fund and one‑time transfers to expand enforcement and agency capacity. (Motion to move as amended: adopted.)

- HB 2688 — Prevailing wage expansion (as amended): Amendment(s) adopted; bill moved to full committee with due pass. (Motion adopted.)

- HB 2322 — CHIPS fund (renamed “Fish and Chips/Fostering Innovation Strength at Home” fund in discussion): Two amendments adopted (dash A4 and A5 to reduce the amount available for unobligated expenditures and technical clarifications); bill moved to full committee with due pass. LFO reported an unobligated CHIPS fund balance of about $30,000,000 that otherwise would sunset under current law.

- HB 3076 — State firearms dealer licenses (as amended): Dash A3 and A4 amendments adopted (changed dates, inspection frequency, removed emergency clause, added appropriation); bill moved to full committee with due pass. The measure creates state licensing, inspection, employee‑eligibility and security requirements for firearm dealers and authorizes DOJ rulemaking and inspections. Debate included policy and budget concerns and discussion of redundancy with federal law; legislative counsel agreed to provide a side‑by‑side if requested.

- HB 3199 — Study of statewide attendance initiatives: Dash A6 amendment adopted to narrow scope and adjust reporting timelines; bill moved to full committee with due pass.

- HB 3794 — Task force on municipal solid waste in the Willamette Valley: Motion to move to full committee with due pass adopted; discussion raised concerns about membership and geographic scope.

- SB 51 — Contract with Housing Development Center, Inc. and affordable housing preservation work (as amended): Dash A6 adopted (lowered fiscal impact); bill moved to full committee with due pass. The amendment decreased the fiscal impact from an earlier version and removed a $3,000,000 culturally specific program element that had been in the engrossed version.

- SB 842 — Hospital licensing fee changes (dash 3 recommended by LFO): Dash 3 amendment adopted; bill moved to full committee with due pass. LFO estimated approximately $2.8 million in additional revenue for the 2025‑27 biennium from the revised fees; committee discussion included concerns about impacts on smaller hospitals and whether hospitals had been consulted.

- Debt refunding report (Department of Administrative Services): The subcommittee acknowledged receipt of the DAS report on April–May 2025 bond refundings and associated debt service savings; LFO recommended acknowledging receipt.

Context and key details

- BOLI budget (HB 5015): LFO presented line‑item packages and detailed fund sources including general fund, Wage Security Fund, Workers Benefit Fund, prevailing wage fund and one‑time transfers from the Department of Consumer and Business Services Workers Benefit Fund. Packages included investments for case management replacement, position reclassifications, civil rights intake/mediation capacity, workplace investigations and apprenticeship support. Several members voiced support for stronger enforcement capacity; at least one member registered an ardent no on principle of scale or philosophy of the agency’s role.

- CHIPS fund (HB 2322): The measure broadens the intended use of remaining CHIPS fund dollars and renames the fund for broader manufacturing/fabrication support. LFO clarified the unobligated balance (~$30 million) and noted that grants versus loans will affect the fund’s ongoing sustainability; loans would return principal to the fund, grants would deplete it unless recapitalized.

- Firearms dealer licensing (HB 3076): Legislative counsel acknowledged differences between the bill’s requirements and federal law, including state requirements on employee background checks, training, and security standards in section 6. The subcommittee removed the emergency clause and adjusted inspection timing; debate highlighted public safety arguments from supporters and constitutional and rural‑small business concerns from opponents. LFO provided fiscal estimates for general‑fund and other‑fund costs across the 2025‑27 biennium.

- Hospital licensing fees (SB 842): LFO presented a down‑revised dash‑3 amendment. Members raised concerns about fee increases for smaller hospitals and whether hospitals had negotiated the changes; at least some members stated they would not support the increase.

Process notes and next steps

All measures discussed were advanced to the full Ways and Means Committee with due‑pass recommendations, unless noted otherwise. Several measures adopted LFO’s recommended technical or fiscal amendments during the subcommittee session. Where members asked for additional analysis on redundancy with federal law (notably HB 3076), legislative counsel offered to provide a side‑by‑side comparison for the committee.

This was a work session with multiple motions across the agenda. The subcommittee recorded several roll calls during the meeting and adopted both technical and policy amendments. The LFO and Department of Administrative Services provided the principal fiscal presentations and were asked to return or provide further analysis when requested.

Ending

Bills and motions advanced by the subcommittee will be considered next by the full Ways and Means Committee. The legislative record (OLIS) will contain the adopted amendment texts, the LFO reports referenced in the session, and roll‑call records for votes taken on the floor or in subsequent committee proceedings.