Subcommittee advances bill to create sustained BOLI fund after split vote

The Transportation Economic Development Subcommittee on Feb. 24 voted to send House Bill 4,027 to the full Ways and Means Committee after a 5–3 roll call. The bill would create a continuously appropriated expense fund for the Bureau of Labor and Industries (BOLI), funded by a workers’ compensation assessment and administered through the Department of Consumer and Business Services (DCBS).

LFO staff summarized the measure, saying the fund would be built with staged minimum balance requirements, may reimburse DCBS for administrative costs, and would allow transfers to BOLI beginning July 1, 2029. The measure also limits the annual cost of new positions funded by the assessment (noted in committee materials at about $5,250,000 beginning July 1, 2031) and increases the maximum prevailing-wage public-works fee from $7,500 to $12,500.

The motion to move the bill was made on the recommendation of the Legislative Fiscal Office. The Co Chair said the session’s intent was to create a sustained revenue source to address a backlog of complaints and to provide the bureau with resources to recruit and retain staff. "We have bought the bureau a ticket to the land of no more excuses," the Co Chair said.

Opponents warned the fund effectively shifts obligations away from the state’s general fund. Senator MacLean said he opposed the motion and argued the measure "smells like general fund, quacks like general fund," describing it as a way to divert costs onto businesses and workers through an assessment. Representative Kate likewise said she would oppose the bill because it imposes an added cost at a time when many Oregonians are struggling with affordability.

Supporters said the measure responds to BOLI’s staffing and backlog problems. Senator Gorsuch said BOLI is "overburdened" and that sustained resources would allow more workers to have claims heard in a reasonable timeframe. Representative Watanabe described the bill as a priority that resulted from a bicameral, bipartisan interim work group and noted that prior 2025 funding already expanded investigative capacity.

On the roll call, the motion carried with Yes votes from Senators/Representatives Gorsek, Golden, Gwynn, Watanabe and Gombly, and No votes from Senator MacLean, Representative Kate and Representative Bunch. The chair said the bill will be carried to the full Ways and Means Committee and urged members to arrange floor carriers in their respective chambers.

The committee record shows the fiscal impact for BOLI and DCBS was described as indeterminate in committee materials. The agency indicated the legislature would retain approval authority for how the fund and associated positions are used. The bill now moves to full Ways and Means where further fiscal and policy review will occur.