Committee approves amended public finance task force bill, sends HB 2966 to Ways and Means

Chair Sosa opened a work session on House Bill 2966, which would establish a state public finance task force charged with examining how public bodies invest funds, look for cost savings through public financing, explore governance structures for public financing entities and study capitalization options. The measure tasks the state treasurer with providing staff support and requires a report of findings and recommendations to committees of the Legislative Assembly.

Representative Gamborg (presenting the dash-3 amendment) told the committee the amendment adds an appropriation of $400,000 so the Treasury can contract with a consultant with public-finance expertise, removes two required topic requirements (student loans and agricultural loans) from the task force’s mandatory list, shortens the reporting date to Dec. 1, 2026, adds treasurer and public–private partnership seats to the task force, and moves several appointments from the governor to the state treasurer. “It adds an appropriation of 400,000 for the Treasury to be able to contract with a consultant,” Gamborg said.

Representative Ropeshk placed on the record a dash-1 amendment that he said would add privacy and data-security assurances and language designed to protect community banks and credit unions from being financially or competitively harmed by any recommendations the task force might produce.

David Fang Yan, senior deputy legislative counsel, responded to a constitutional question raised by a committee member about whether study of public banks would run afoul of Article IX, Section 1 of the Oregon Constitution (the “bank clause”). Yan summarized the Oregon Supreme Court’s 1880 holding in Hibernian Savings, saying the clause was interpreted to prohibit ‘‘banks of issue’’ — banks that put money into circulation — and that the court’s reading limits the constitutional bar. He told the committee the proposal as drafted is not, in his judgment, in conflict with the Constitution: “That is my position.”

Vice Chair Taichie moved to adopt the dash-3 amendment to HB 2966. The committee recorded the following roll-call votes on the amendment: Representative Kate — No; Representative Johnson — Yes; Representative Gomberg — Yes; Representative Neron — Yes; Representative Reschke — No; Representative Wallen — No; Representative Walters — Yes; Vice Chair Chi Chi — Yes; Vice Chair Osborne — No. The motion to adopt the dash-3 amendment passed. The committee then voted to refer HB 2966 as amended to the Joint Committee on Ways and Means by prior reference; that motion also passed.

Key implementation details recorded in committee testimony include the $400,000 appropriation for Treasury consultant services, the shortened reporting date (Dec. 1, 2026), the sunset date mentioned in the base bill (Jan. 2, 2028), and the treasurer’s role in staffing the task force. Committee members asked about constitutional limits and about the scope of the task force; legislative counsel’s memo and testimony addressed the constitutional question but did not bind future court interpretation.

The committee closed the work session on HB 2966 after adoption of the amendment and referral to Ways and Means.