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Subcommittee defers $25 million placeholder request to implement HB 4024 amid timing, cost concerns
Summary
Secretary of State staff asked for $25,000,000 to implement House Bill 4024's campaign finance changes but members raised timeline and vendor-market concerns; the subcommittee moved to defer the funding recommendation to the 2026 session pending RFP results and potential rule changes.
Deputy Secretary of State Michael Kaplan told the General Government Subcommittee that House Bill 4024 represents a "dramatic change" in Oregon's campaign finance law and will require a new, statewide IT solution that the department estimates could cost roughly $25,000,000 to procure and implement on a compressed timeline.
"We are asking for $25,000,000 to support an RFP process to find a developer capable of meeting 4024's unique requirements," Kaplan said, noting the current campaign finance system is nearly two decades old and the statute imposes a 01/01/2027 launch deadline.
Members expressed concern about the amount's uncertainty, the unusually short vendor-development timeline and that the rules implementing the statute were still pending. Senator Meek and Representative Tran urged caution; Senator Meek called for more competitive price information and Representative Tran warned against rushing a solution that might not last.
LFO staff recommended deferring action until the 2026 legislative session and after the RFP returns. The subcommittee voted to defer the request to the 2026 session; the department said it will proceed to post the RFP regardless because launching it does not commit funds.
Why it matters: HB 4024 imposes new technical and compliance requirements for campaign finance reporting and enforcement; failure to meet statutory deadlines could carry legal, financial and political consequences, according to SOS testimony.
What's next: The SOS plans to issue an RFP in the near term and return to the legislature with the RFP response and cost estimates. The subcommittee's deferral will send the item to the full Ways and Means committee with LFO's recommendation to await further detail.
Attributions: Deputy Secretary Michael Kaplan described the risk and need for the RFP; multiple committee members questioned timing and cost estimates.
