Committee Hears Testimony on HB 3,940 A; Amendment Would Fund Wildfire Mitigation With Oral-nicotine Tax and Rainy Day Interest

House Committee on Revenue Chair Nathanson opened a public hearing June 18 on House Bill 3,940 A, a package of changes to Oregon's wildfire funding framework that lawmakers and stakeholders said is urgently needed as the state faces an early and active fire season.

The dash‑a21 amendment before the committee would add two new revenue streams to pay for wildfire mitigation: a new state tax on oral nicotine products (65¢ per container of up to 20 consumable units and 3.25¢ per unit for containers with more than 20 units) and a transfer of 20% of projected interest earnings from the state rainy‑day fund for the coming biennium, split roughly 6.7% to the landscape resiliency fund and 13.3% to the community risk reduction fund. The amendment also redirects other existing assessments and changes private‑landowner assessment formulas included in the underlying bill.

Why it matters: Supporters said the state must secure predictable, durable revenue to fund mitigation and readiness programs that reduce risk to homes, businesses and public health. "This couldn't be more urgent and more of an acute need," said Senator Anthony Broadman, state senator for Central Oregon, who described the proposal as "the planned Wildfire Investment and Safety Enhancement Fund" and said it pairs mitigation priorities with new revenue. Several witnesses recommended a larger transfer of rainy‑day fund interest than the…