Friday, Sept. 26, marked 91 days since the Oregon Legislative Assembly concluded the 2025 regular legislative session. Although the effective date of most new laws is Jan. 1 of the year following passage, the Oregon Constitution allows laws to be enacted, if specified, as soon as the 91st day after adjournment sine die. Fifty-one bills passed during the 2025 session are effective as of Friday, Sept. 26, including the following five bills that are directly relevant to county governments.
House Bill 2089: Foreclosure Surplus Process
HB 2089 brings Oregon into compliance with the 2023 U.S. Supreme Court’s ruling in Tyler v. Hennepin County, which held that local governments cannot retain surplus proceeds from a tax foreclosure above what the county is owed in taxes and fees. HB 2089 creates a path for counties to be made whole and receive funds owed following the sale of foreclosed property due to unpaid property taxes, and creates a process for surplus equity to be recovered by the former owner through the Oregon State Treasurer.
House Bill 2688: Prevailing Wage for Off-site Fabrication
HB 2688 applies the prevailing rate of wage to certain off-site “bespoke” work fabricated, assembled, or produced for a particular public works project on or after July 1, 2026. Friday’s effective date established the beginning of the rulemaking period between the Oregon attorney general, the Department of Administrative Services, and the Bureau of Labor and Industry, as uncertainty remains whether this law can apply to out-of-state suppliers. The Association of Oregon Counties (AOC) and the Oregon Association of County Engineers and Surveyors (OACES) will represent the county positions and be active in those discussions as the rulemaking process moves forward.
House Bill 3940: Wildfire Funding
HB 3940 delivers new and increased funding to alleviate the increasing costs of wildland firefighting by imposing a tax on oral nicotine products, changes the assessments and surcharges collected by counties on behalf of the Oregon Department of Forestry, and establishes a grant program for homeowners to install wildfire resilient materials. The budget passed by the Legislature totals $267 million for wildfire expenses in the upcoming session. Despite the law’s enactment on Friday, counties will see phased relief in the landowner rates paid for fire protection as rules, policies, and procedures are finalized.
Senate Bill 974: Expedited Land Use Review for Residential Development
SB 974 was an expansive land use permitting bill featuring a 120-day deadline for review of new developments (with extensions and pauses under certain conditions). SB 974 also creates expedited zoning changes for residential use inside an Urban Growth Boundary, prohibitions on requirements for aesthetic design standards in new neighborhoods, and exemptions for multi-family housing or small-scale infill projects. Only the aesthetic design standards provisions (Section 8 of the legislation) went into effect on Sept. 26, 2025. The remaining elements of the law will go into effect on July 1, 2026.
Senate Bill 243: “Community Safety Firearms Act” and Measure 114 Implementation
SB 243 is made of three components, the first being a ban on “bump stocks” and other rapid fire activators. Second, it gives local governments the option to enact a firearms prohibition in public buildings used for official meetings. And third, the law implements Ballot Measure 114 (2022). Only parts one and two went into effect on Sept. 26, 2025. The provisions implementing Measure 114 (2022) are slated to go into effect March 15, 2026. However, Measure 114’s constitutionality is still pending a decision by the Oregon Supreme Court and will likely be appealed to federal court regardless of the outcome.
More details about this legislation and all other bills on which AOC engaged this session are available in the AOC Legislative Summary.
Contributed by: Joe Casey | Legislative Affairs Coordinator