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Deschutes County commissioners hear end-of-session briefing; transportation funding, hotel-tax changes and wildfire insurance flagged

Deschutes County Board of Commissioners · March 5, 2026
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Summary

County officials heard a wide-ranging legislative briefing focused on transportation funding cuts, a likely transient lodging tax option, and several state bills affecting county services; staff will follow up with Visit Central Oregon and departments after final session actions are clear.

Deschutes County commissioners on the legislative call were briefed on an unfolding end-of-session landscape in Salem that county staff said could affect local transportation projects, visitor-tax allocations and wildfire insurance options.

"It's not a reform bill. So if anyone tells you it is, it just isn't," said Doug, the county's legislative brief presenter, referring to a campaign finance measure he said reduces, rather than strengthens, limits that voters approved in 2020. He told commissioners the Legislature was nearing adjournment but that multiple complex negotiations had reshaped several bills that matter to the county.

Why it matters: Commissioners were most concerned that fixes to the Oregon Department of Transportation (ODOT) budget will delay or cancel projects the county supports. Doug described a package of choices to balance ODOT's books that included freezing staffing, eliminating a Highway 58 project and cutting Connect Oregon awards from a previously cited larger pool to roughly $52 million, a move he said will push some rail, air and maritime projects and reduce safe-routes-to-school investments.

Commissioner Chang said she was "gravely disappointed" that the session centered on ballot-timing fights rather than securing steady transportation funding, and warned the staffing freeze could worsen field services such as DMV operations.

Key bills and local impacts discussed: - HB1517 (recreational liability): After a late amendment, Doug said the bill appears to provide "waiver certainty" and protection from lawsuits and is moving forward; commissioners had previously flagged interest for the county's ski areas and recreation providers. - SB1544 (transit qualified-entity provision): Doug said the bill includes a narrowly tailored change allowing counties to pass funds to one qualified intergovernmental entity for local transit operations; the change was crafted to apply only where appropriate and, he said, cleared committee without sinking points for the county. - HB4144 (battery producer responsibility): The bill was described as advancing to the Senate floor; county staff said they had supported the producer-responsibility approach. - HB4148 (TLT changes): A lodging-tax bill under negotiation would allow an optional 50/50 split between tourism and local government uses under a negotiated framework. County staff (finance) said the county will need to meet with Visit Central Oregon to review allocations and consider longer-term memoranda of understanding should the formula change. - HB1540 (wildfire/homeowner insurance): Doug said this wildfire-insurance bill did not appear to have advanced over the finish line as of the briefing; staff committed to confirm its final status.

Staff actions and follow-up: Finance staff flagged a "penny bill" (4178) moving through the Legislature and reminded commissioners that final budget language could force local policy adjustments. Staff asked to schedule a meeting with Visit Central Oregon to discuss how any TLT changes would affect existing local allocations and agreements.

On adoption and votes: staff reported that a technical fix for behavioral health (HB4070) had recently cleared a House floor action; the briefing noted the bill had passed on the House floor and that staff would confirm the final status and any vote tallies.

What was not decided: Several county-tracked bills remained uncertain or dead, staff said, and the delegation and county partners planned a formal end-of-session wrap-up to present finalized outcomes and recommended next steps to the Board.

The county will schedule that wrap-up in late March once final bill actions are confirmed.