HB 3402 is a broad transportation finance and governance bill. It requires the Division of Audits to conduct biennial performance audits of the Oregon Department of Transportation (ODOT) focused on the use of State Highway Fund moneys and capital projects, and it also directs a separate professional services performance audit of ODOT operations that sunsets in 2027. The bill changes ODOT leadership by shifting appointment authority for the Director of Transportation from the Oregon Transportation Commission to the Governor, with Senate confirmation required. It also revises the duties of the Joint Committee on Transportation and the Continuous Improvement Advisory Committee to increase oversight of major projects, performance measures, and project scope changes.
The measure raises transportation revenue by increasing the motor vehicle fuel tax and the use-fuel tax from 34 cents to 43 cents per gallon, increasing passenger vehicle registration fees, and increasing title fees. It also adjusts or adds fees for a range of vehicle classes, including heavy vehicles, farm vehicles, commercial buses, trailers, and certain special registrations. Section 14 directs that revenue attributable to the tax increase above 40 cents per gallon, along with revenue from the fee increases, be allocated to ODOT. The bill also requires ODOT to study uniform standards for speed bump height and markings, and that study provision is set to sunset on January 2, 2027.
In terms of state law, HB 3402 amends several Oregon Revised Statutes, including provisions governing ODOT administration, legislative oversight, fuel taxes, vehicle registration fees, and title fees. It creates new reporting and review obligations for transportation projects, especially major projects defined as those costing $250 million or more, and it adds a process for city or county requests to expand the scope of highway improvement projects when local governments are not paying the added cost. The bill is structured as a revenue-raising measure and states that it requires approval by a three-fifths majority.
The general sentiment reflected in the available vote history is cautiously supportive but not unanimous: the House committee advanced the bill on a 4-3 do-pass-with-amendments vote. That split suggests meaningful support for the transportation funding and oversight package, but also significant reservations. No committee transcript was provided, so the record does not show detailed floor or committee arguments, but the divided vote indicates the bill was contested.
The main points of contention likely center on the size and scope of the tax and fee increases, the shift in appointment power for the ODOT director from the Transportation Commission to the Governor, and the added oversight structure for major projects and local scope changes. Supporters appear to favor stronger accountability, more direct executive control, and dedicated transportation funding, while opponents may object to higher costs for drivers, businesses, and vehicle owners, as well as the governance changes affecting ODOT and the commission.
HB 3402 would significantly amend Oregon transportation law by increasing fuel taxes, vehicle registration fees, and title fees, while directing the resulting additional revenue to ODOT. It also changes the governance structure for ODOT by making the Governor the appointing authority for the Director of Transportation, subject to Senate confirmation, and expands legislative and administrative oversight of major transportation projects, performance audits, and committee reporting requirements. Affected parties include motorists, fuel dealers, vehicle owners, trucking and commercial fleet operators, counties and cities proposing project scope changes, and ODOT itself.
The bill appears to have mixed but meaningful support. The only recorded vote shows the House committee approved it 4-3 with amendments, indicating that a majority favored moving the bill forward but a substantial minority opposed it. The absence of transcripts limits insight into specific arguments, but the split vote suggests the bill’s revenue increases and governance changes were debated and not universally accepted.
The most notable areas of contention are the tax and fee increases, the transfer of ODOT director appointment authority from the Oregon Transportation Commission to the Governor, and the expanded oversight/reporting framework for transportation projects. Opponents are likely concerned about higher costs for fuel and vehicle ownership and about centralizing executive control over ODOT, while supporters likely emphasize accountability, funding stability, and tighter management of major projects. The bill’s treatment of local project scope expansions may also be controversial because it creates a formal review process when cities or counties request more project work without paying for it.