The 2026 Oregon legislative session, which ran from Feb. 2 to March 6, concluded with several major outcomes that directly support the City of Bend’s priorities related to housing, transportation, wildfire resilience, public safety and long-term community planning. Multiple bills passed this session will strengthen the City’s ability to meet community needs.
As outlined in the City’s legislative agenda, Bend entered the session with three top priorities: increasing local flexibility in the use of lodging tax revenue, safeguarding Oregon Housing and Community Services (OHCS) allocations for City‑supported shelters and supporting tools that protect the City’s ability to plan and build complete communities that include neighborhood commercial uses. Thanks to the hard work of Representative Levy, Representative Kropf and Senator Broadman, as well as aligned legislative leaders in Salem, all three priorities were achieved during the session.
The passage of HB 4148 increases the share of transient lodging tax (TLT) revenue, enacted post 2003, that local governments may use for City services, from 30 to 50%. This modernization allows Bend more flexibility to decide how to fund the infrastructure and services used by visitors.
“Ensuring visitors come to Bend is important, because tourism drives our economy, but we also must maintain the city people come to enjoy.” said Mayor Melanie Kebler. “We heard our residents when they asked for visitors to contribute more to the rising costs of maintaining our city, and lobbied hard for this change. This bill moves us towards a more balanced system, so we can keep our community safe, welcoming and sustainable for residents and visitors alike.”
Additionally, the Legislature preserved ongoing shelter funding through Oregon Housing and Community Services (OHCS), ensuring continuity for City-supported shelter operations.
“Ongoing operational funding means our neighbors in Bend who are experiencing difficult times can feel safe knowing there is a place for them,” said Racheal Baker, Housing Division Manager. “These shelters offer a pathway back into permanent housing and relief from the fear and stress of surviving outdoors.”
The City also supported an omnibus housing bill, HB 4037, which included technical fixes the City sought related to urban reserves and important protections for neighborhood commercial land. Notably the bill requires that if an affordable‑housing project proposed under SB 8 is located within a planned mixed‑use development larger than 10 acres, and the project would reduce the amount of commercial land in that development to less than 80% of what the adopted plan originally designated, they must seek a Master Plan amendment to add new commercial land equal to the area proposed for housing.
Several other City supported priorities that staff and Councilors testified on moved forward this session:
The Legislature passed SB 1544, which formally recognizes Central Oregon Intergovernmental Council (COIC) as a Qualified Entity. This designation enables COIC, which operates Cascade East Transit (CET), to directly receive and administer regional Statewide Transportation Improvement Fund (STIF) dollars, improving efficiency in transit planning and service delivery.
“This is a critical and commonsense step for regional transit,” said Bend City Councilor and COIC Board Chair Mike Riley. “Recognizing COIC as a qualified entity strengthens our ability to coordinate transit investments across Central Oregon and better meet the needs of riders.”
To support wildfire resilience, the Legislature approved SB 1551, ensuring homeowners’ associations cannot prohibit residents from replacing or installing fire-hardened building materials through their CC&Rs. This measure removes a longstanding barrier for previously constrained homeowners seeking to reduce wildfire risk.
“Homeowners should not face avoidable obstacles when trying to make their homes safer,” said Bend Fire & Rescue Chief Todd Riley. “This legislation empowers community members to protect themselves and their neighbors.”
Lawmakers also enacted measures to:
- SB 1516: Establish stronger guardrails for Automated License Plate Reader (ALPR) technology
- SB 1517: Restore broad enforceability for recreational liability waivers
- Funding: $42 million provided to OSU-Cascades for a new student health and recreation center
The City appreciates its state delegation members, Representative Levy, Representative Kropf and Senator Broadman for their dedication and achievements during the session.
A recap of the legislative session will be shared at the City Council work session on March 18.
