Amends the Workers' Benefit Fund assessment statute to direct the Department of Consumer and Business Services to set an additional assessment rate in order to deposit in a new BOLI Expenses Fund at least the greater of a minimum dollar amount or 12 months of projected expenses to fund the duties of the Commissioner of the Bureau of Labor and Industries, subject to a cap on the costs of new positions, to reimburse certain related expenses of the Director of the Department of Consumer and Business Services and to create and maintain a 12-month reserve in the new fund.
HB 4027 makes a series of changes to Oregon’s workers’ compensation-related funding structure, with a particular focus on the Bureau of Labor and Industries (BOLI) and the Workers’ Benefit Fund. The bill creates a new BOLI Expenses Fund in the State Treasury and directs the Department of Consumer and Business Services to deposit a portion of employer assessments into that fund to cover BOLI’s costs for carrying out specified labor-law duties, including prevailing wage enforcement and related administrative expenses. It also authorizes transfers from the fund to BOLI and allows reimbursement of certain administrative costs incurred by the department.
The bill amends the employer assessment statute in ORS 656.506 to require the department to set separate assessment rates for the Workers’ Benefit Fund and the new BOLI Expenses Fund. It establishes reserve targets, including a 12-month reserve for each fund, and sets phased funding benchmarks for the BOLI Expenses Fund through 2031. The bill also caps the cost of new positions funded by these assessments after July 1, 2031, at a cumulative annual amount of $5.25 million. In addition, it updates the public works fee in ORS 279C.825 by raising the maximum fee from $7,500 to $12,500 and requires BOLI to report every two years on whether that fee cap is sufficient to meet staffing needs.
HB 4027 also preserves and restates existing provisions of the Retroactive Program within the Workers’ Benefit Fund, which provides increased benefits to certain workers receiving older, lower benefit amounts for similar injuries. The bill keeps the program tied to annual funding determinations by the director and maintains the rule that benefits are paid first by insurers or self-insured employers, with reimbursement from the fund. Several sections are delayed in operation, including the new BOLI fund provisions and the revised assessment structure, reflecting a phased implementation over multiple years.
The overall sentiment reflected in the votes suggests moderate but not unanimous support. The bill advanced through committee and both chambers with clear majorities, but it also drew meaningful opposition, especially in committee and on the floor, indicating some concern about the size, structure, or long-term implications of the new assessments and fee increases. The final passage margins were comfortable but not overwhelming, consistent with a bill that was broadly accepted as an administrative funding measure but still somewhat contested.
The main points of contention appear to center on whether the new assessment and fee structure is necessary and whether it could impose too much cost on employers or public agencies. The bill’s supporters appear to have emphasized stable funding for BOLI’s enforcement and administrative responsibilities, while opponents likely focused on the expanded revenue collection, the creation of a new dedicated fund, and the higher maximum public works fee. The requirement for future reporting on staffing sufficiency suggests that lawmakers also had concerns about whether the fee cap would actually generate enough revenue to meet BOLI’s needs.
HB 4027 amends ORS 656.506, 656.605, 656.630, and 279C.825 and adds new provisions to Oregon’s workers’ compensation and labor enforcement funding framework. It creates the BOLI Expenses Fund, changes how employer assessments are allocated between the Workers’ Benefit Fund and the new fund, increases the maximum public works fee payable to BOLI, and requires periodic reporting on staffing and revenue adequacy. The bill affects employers subject to workers’ compensation assessments, public agencies awarding covered public works contracts, and the Department of Consumer and Business Services and BOLI, with some provisions taking effect immediately and others phased in through 2029 and 2031.
The bill appears to have been viewed as a practical funding and administration measure for BOLI and related labor programs, with enough support to pass both chambers but not without opposition. Committee and floor votes show a clear majority in favor, yet the nontrivial number of nays suggests some lawmakers were uneasy about increasing assessments and fees or about the long-term fiscal commitments embedded in the bill. Overall, the sentiment was supportive but cautious, with emphasis on ensuring stable funding for enforcement and benefit programs.
The most notable contention involved the financial burden of the bill’s new and revised funding mechanisms. Opponents likely objected to the additional employer assessment rate, the creation of a separate BOLI fund, and the increase in the maximum public works fee from $7,500 to $12,500. Supporters, by contrast, appear to have argued that BOLI needs dedicated, predictable funding to carry out prevailing wage enforcement, labor-law duties, and administrative responsibilities. Another point of concern was whether the new fee cap would generate enough revenue, which is why the bill requires a recurring report on staffing needs and revenue sufficiency.