SB 1544 — Relating to transportation; and prescribing an effective date.

Not later than December 27, 2027, the Department of Transportation shall assess the needs of the department for training on best practices, including but not limited to best practices for community engagement, project delivery and effective multimodal safety design.

SECTION 5.

Section 4 of this 2026 Act is repealed on January 1, 2028.

SECTION 6.

The Department of Transportation shall establish a department of trans- portation university, based on a survey of other state departments of transportation that use a department of transportation university system.

SECTION 7.

(1) As used in this section:

(a) “Highway” has the meaning given that term in ORS 366.005.

(b) “Transportation project” has the meaning given that term in ORS 367.010.

(2) Notwithstanding ORS 184.633, to maximize efficient transportation project delivery and minimize redundant efforts, the Director of Transportation shall centralize project de- livery efforts and focus the efforts and duties of the regional offices of the department on highway operation and maintenance.

REPEAL OF JOINT COMMITTEE ON TRANSPORTATION SECTION 8.

ORS 171.858 and 171.861 are repealed.

SECTION 9.

ORS 184.649 is amended to read:

184.649.

The Oregon Transportation Commission shall report on audits of the Department of Transportation to the Joint Legislative Audit Committee established by ORS 171.580 and to [the Joint Committee on Transportation established by ORS 171.858] the committees or interim com- mittees of the Legislative Assembly related to transportation, at least once each biennium.

SECTION 10.

ORS 184.657 is amended to read:

184.657.

(1) The Oregon Transportation Commission shall develop a set of uniform standards, in coordination with counties and cities, for the consistent description and reporting of the condition of the transportation infrastructure owned by the state, counties and cities.

The infrastructure de- scribed must include pavement and bridges.

(2) By February 1 of each odd-numbered year, every city and county shall submit a report cov- ering the condition of its transportation infrastructure.

(3) The commission shall periodically review the condition of the transportation infrastructure owned by the state and the reports submitted under this section.

The commission shall post the re- ports and the commission’s review of the reports on the website described in ORS 184.661.

(4) Notwithstanding ORS 366.762 to 366.768 or 366.785 to 366.820, any city or county failing to file a report under this section may not receive any payments from the State Highway Fund until the report is filed.

(5) Not later than June 1 of each odd-numbered year, the commission shall submit a report about [2] A-Eng.

SB 1544 the state of the transportation infrastructure of Oregon, including the transportation infrastructure of cities and counties, to:

(a) The Legislative Assembly in the manner provided by ORS 192.245;

and [(b) The Joint Committee on Transportation established under ORS 171.858.] (b) The committees or interim committees of the Legislative Assembly related to trans- portation.

SECTION 11.

ORS 184.665, as amended by section 5, chapter 1, Oregon Laws 2025 (special session), is amended to read:

184.665.

(1) As used in this section:

(a) “Chief engineer” means the person appointed by the Director of Transportation under ORS 184.628.

(b) “Major project” means a transportation project that costs $250 million or more to complete.

(2) The Oregon Transportation Commission shall appoint a Continuous Improvement Advisory Committee.

The members of the committee shall include, but are not limited to, the following:

(a) Members of the commission;

(b) The Director of Transportation;

(c) The chief engineer;

(d) Individuals with demonstrated expertise in planning, executing and delivering major projects;

and (e) At least one individual with demonstrated knowledge and experience in the application and implementation of the National Environmental Policy Act.

(3) The committee shall:

(a) Advise the commission on ways to maximize the efficiency of the Department of Transpor- tation to allow increased investment in the transportation system over the short, medium and long term.

(b) Develop key performance measures, based on desired outcomes, for each division of the de- partment.

The committee shall submit key performance measures to the commission for its approval.

The committee shall report quarterly to the commission and to the [Joint Committee on Transporta- tion] committees or interim committees of the Legislative Assembly related to transportation on the status of key performance measures and what steps are being taken by the department to achieve the goals of the key performance measures.

(4) The Continuous Improvement Advisory Committee shall report quarterly to the commission and to the [Joint Committee on Transportation] committees or interim committees of the Legis- lative Assembly related to transportation.

The reports must include recommendations on ways the commission and the department may execute their duties more efficiently.

(5) The Continuous Improvement Advisory Committee shall meet at least once a month, at times and places fixed by the chairperson of the committee or a majority of members of the committee.

(6) The department shall provide office space and personnel to assist the committee as requested by the chairperson, within the limits of available funds.

(7) Members of the committee are entitled to compensation and expenses as provided under ORS 292.495.

SECTION 12.

Section 1, chapter 323, Oregon Laws 2023, is amended to read:

Sec.

1.

(1) The Jurisdictional Transfer Advisory Committee is established within the Department of Transportation.

(2) The committee consists of 11 members appointed by the Governor.

The members of the [3] A-Eng.

SB 1544 committee shall include:

(a) Two members who are transportation engineers;

(b) Two members who represent cities and who have experience working on transportation projects;

(c) One member who represents a county and who has experience working on transportation projects;

(d) One member who represents a regional government and who has experience working on transportation projects;

(e) One member who represents road users;

(f) One member who represents law enforcement;

(g) One member who represents transit users;

(h) One member who represents the advisory committee on bicycle traffic established in ORS 366.112;

and (i) One member who represents the Transportation Safety Committee established in ORS 802.300.

(3) The Governor shall appoint members to the Jurisdictional Transfer Advisory Committee so that there is at least one member of the committee from each congressional district in this state.

(4) The Jurisdictional Transfer Advisory Committee shall, from the jurisdictional transfer appli- cations submitted under section 3 of this 2023 Act:

(a) Review the applications;

and (b) Develop a list of three jurisdictional transfers to recommend for funding.

(5) The committee shall actively solicit reviews and comments from the Oregon Transportation Commission in the development of the list described in subsection (4)(b) of this section.

The com- mittee shall also shall take into consideration the following:

(a) The difference between the applicant’s and the department’s standards of maintenance;

(b) The amount of deferred maintenance;

(c) A description of how the highway is used in the community;

(d) The climate impact of a transfer and subsequent upgrades the applicant could provide;

(e) The potential positive impacts on historically underserved groups;

(f) The increase in multimodal transportation options provided by a transfer;

(g) A description of the safety issues that exist;

and (h) A transfer readiness assessment that may include:

(A) The interest of the community;

(B) Funding capacity of the applicant for the transfer and maintenance in the future;

and (C) The existing condition of the highway and its current state of maintenance.

(6) No later than September 15 of each even-numbered year, the Jurisdictional Transfer Advisory Committee shall submit a report to the [Joint Committee on Transportation] committees or interim committees of the Legislative Assembly related to transportation, in the manner provided in ORS 192.245, that includes the list of jurisdictional transfers recommended for funding under sub- section (4)(b) of this section.

(7) The term of office of each member of the Jurisdictional Transfer Advisory Committee is four years, but a member serves at the pleasure of the Governor.

Before the expiration of the term of a member, the Governor shall appoint a successor whose term begins on January 1 next following.

A member is eligible for reappointment.

However, a member of the committee may not serve more than two terms.

If there is a vacancy for any cause, the Governor shall make an appointment to become immediately effective for the unexpired term.

When a vacancy occurs in an appointment made from [4] A-Eng.

SB 1544 a congressional district, the successor shall be appointed from the congressional district for which the vacancy exists.

(8) A majority of the members of the committee constitutes a quorum for the transaction of business.

(9) Official action by the committee requires the approval of a majority of the members of the committee.

(10) The committee shall elect one of its members to serve as chairperson.

(11) The committee shall meet at times and places specified by the call of the chairperson or of a majority of the members of the committee, provided that the committee meets at least four times a year.

(12) The committee may adopt rules necessary for the operation of the committee.

(13) The Department of Transportation shall provide assistance and space for meetings as re- quested by the chair of the committee.

(14) Qualified members, as defined in ORS 292.495, of the advisory committee are entitled to compensation for actual and necessary travel or other expenses incurred in the performance of their official duties as specified for qualified members of boards or commissions in ORS 292.495 (4).

SECTION 13.

Section 3, chapter 323, Oregon Laws 2023, is amended to read:

Sec.

3.

(1) The Department of Transportation shall adopt rules specifying the process by which a city or county may apply for inclusion on the list of jurisdictional transfers recommended for funding and submitted to the [Joint Committee on Transportation] committees or interim com- mittees of the Legislative Assembly related to transportation under section 1 [of this 2023 Act], chapter 323, Oregon Laws 2023.

(2) An application under this section must be on a form prescribed by the department and must include the following:

(a) The name of the city or county;

(b) A description of the portion of the highway to be transferred;

(c) A desired timeline for the transfer;

(d) The scope of the transfer;

(e) A description of which body assumes liability during and after the transfer;

(f) The cost to update the segment of highway transferred to a state of good repair;

and (g) Any other information necessary or helpful to the Jurisdictional Transfer Advisory Commit- tee established in section 1 [of this 2023 Act], chapter 323, Oregon Laws 2023, in making its rec- ommendations to the [Joint Committee on Transportation] committees or interim committees of the Legislative Assembly related to transportation.

(3) A jurisdictional transfer applicant must submit:

(a) Plans to provide at least 20 percent of the moneys required for the jurisdictional transfer;

and (b) A community vision plan that describes the applicant’s plan for managing and improving the highway.

SECTION 14.

ORS 366.506, as amended by section 11, chapter 1, Oregon Laws 2025 (special session), is amended to read:

366.506.

(1) Once every two years, the Oregon Department of Administrative Services shall conduct a highway cost allocation study.

The purpose of the study is to determine:

(a) The proportionate share that the users of each class of vehicle should pay for the costs of maintenance, operation and improvement of the highways, roads and streets in the state;

and [5] A-Eng.

SB 1544 (b) Whether the users of each class are paying that share.

(2) Each study must include:

(a) An examination of the most recent study period for which actual data are available for the purpose of determining the accuracy of the most recently published study results;

and (b) An examination of the prospective study period based on projected data for the purpose de- scribed in subsection (1) of this section that incorporates the results of the examination described in paragraph (a) of this subsection.

(3) The department may use any study design the department determines will best accomplish the purposes stated in subsection (1) of this section.

In designing the study, the department may make decisions that include, but are not limited to, the methodology to be used for the study, what constitutes a class of vehicle for purposes of collection of data under subsections (1) to (5) of this section and the nature and scope of costs that will be included in the study.

(4) The department may appoint a study review team to participate in the study required by subsection (1) of this section.

The team may perform any functions assigned by the department, in- cluding, but not limited to, consulting on the design of the study.

(5) A report on the results of the study shall be submitted to the legislative revenue committees and the [Joint Committee on Transportation] committees or interim committees of the Legisla- tive Assembly related to transportation by January 31 of each odd-numbered year.

(6) The Legislative Assembly shall use the report described in subsection (5) of this section to determine whether adjustments to revenue sources described in Article IX, section 3a (3), of the Oregon Constitution, are needed in order to carry out the purposes of Article IX, section 3a (3), of the Oregon Constitution.

If such adjustments are needed, the Legislative Assembly shall enact whatever measures are necessary to make the adjustments.

SECTION 15.

ORS 366.506, as amended by sections 11 and 12, chapter 1, Oregon Laws 2025 (special session), is amended to read:

366.506.

(1) Once every two years, the Oregon Department of Administrative Services shall conduct a highway cost allocation study.

The purpose of the study is to determine:

(a) The proportionate share that the users of each class of vehicle should pay for the costs of maintenance, operation and improvement of the highways, roads and streets in the state;

and (b) Whether the users of each class are paying that share.

(2) Each study must include:

(a) An examination of the most recent study period for which actual data are available for the purpose of determining the accuracy of the most recently published study results;

and (b) An examination of the prospective study period based on projected data for the purpose de- scribed in subsection (1) of this section that incorporates the results of the examination described in paragraph (a) of this subsection.

(3) The department may use any study design the department determines will best accomplish the purposes stated in subsection (1) of this section.

In designing the study, the department may make decisions that include, but are not limited to, the methodology to be used for the study, what constitutes a class of vehicle for purposes of collection of data under subsections (1) to (5) of this section and the nature and scope of costs that will be included in the study.

(4) The department may appoint a study review team to participate in the study required by subsection (1) of this section.

The team may perform any functions assigned by the department, in- cluding, but not limited to, consulting on the design of the study.

(5) A report on the results of the study shall be submitted to the legislative revenue committees [6] A-Eng.

SB 1544 and the [Joint Committee on Transportation] committees or interim committees of the Legisla- tive Assembly related to transportation by January 31 of each odd-numbered year.

(6) The Legislative Assembly shall use the report described in subsection (5) of this section to determine whether adjustments to revenue sources described in Article IX, section 3a (3), of the Oregon Constitution, are needed in order to carry out the purposes of Article IX, section 3a (3), of the Oregon Constitution.

If such adjustments are needed, the Legislative Assembly shall enact whatever measures are necessary to make the adjustments.

(7)(a) This subsection applies if:

(A) The highway cost allocation report indicates that the equity ratio for the heavy vehicle class or the light vehicle class is at least 1.05;

and (B) The Legislative Assembly has not complied with subsection (6) of this section within 120 days following the date on which the [Joint Committee on Transportation] committees or interim committees of the Legislative Assembly related to transportation received the report submitted under subsection (5) of this section.

(b)(A) On or after September 1 of each odd-numbered year, the department shall adopt rules that lower the fee rates per mile set forth in ORS 825.476 or the fuel tax rates set forth in ORS 319.020 (1)(b) and 319.530 (1) as necessary so that whichever class has an equity ratio of 1.05 or greater will have an equity ratio of 1.045.

(B) Adjustments to the fuel tax rates shall be rounded to the nearest 0.1 cents per gallon.

(8) The department shall repeal any rule adopted pursuant to subsection (7) of this section if the department determines that, after the rule was adopted, the Legislative Assembly adjusted revenue sources to carry out the purposes of Article IX, section 3a (3), of the Oregon Constitution.

SECTION 16.

Section 5, chapter 428, Oregon Laws 2023, is amended to read:

Sec.

5.

No later than September 15 of each calendar year, the Department of Transportation shall submit to the [Joint Committee on Transportation] committees or interim committees of the Legislative Assembly related to transportation, in the manner prescribed by ORS 192.245, an annual report about the progress made with respect to adopting rules to carry out the amendments to ORS 803.092 and 803.206 by sections 1 and 3 [of this 2023 Act], chapter 428, Oregon Laws 2023.

SECTION 17.

ORS 824.016 is amended to read:

824.016.

(1) The State Rail Rehabilitation Fund is established as an account in the General Fund of the State Treasury.

All moneys in the account are appropriated continuously to the Department of Transportation for expenditures for any or all of the following:

(a) Acquisition of a railroad line.

(b) Rehabilitation or improvement of rail properties.

(c) Planning for rail services.

(d) Any other methods of reducing the costs of lost rail service in this state.

(e) Rail projects, including:

(A) Capacity improvements, such as:

(i) New or lengthened sidings;

(ii) Industrial spur rehabilitation;

and (iii) Industrial spur construction;

(B) Capital investments that improve safety;

and (C) Capital investments that reduce greenhouse gases.

(f) Providing state matching funds to leverage federal discretionary grant funding for rail [7] A-Eng.

SB 1544 projects.

(2) The program developed by the Department of Transportation under this section to provide funds shall include:

(a) Development of a methodology for prioritizing funding that takes into consideration an applicant’s ability to use funding sources to leverage federal discretionary grant funding for rail projects.

(b) A requirement that rail projects selected are projects that are consistent with the goals of the Oregon State Rail Plan.

(3) The Department of Transportation shall provide funds under this section only with the ap- proval of the Oregon Transportation Commission.

(4) The department may use moneys in the fund to pay the department’s administrative costs associated with the fund and with carrying out the provisions of this section.

(5) Not later than December 31 of each even-numbered year, the department shall report, in the manner provided in ORS 192.245, to the [Joint Committee on Transportation] committees or interim committees of the Legislative Assembly related to transportation regarding the expenditures of moneys in the fund and the status of rail projects that have received moneys from the fund.

SECTION 18.

ORS 824.400 is amended to read:

824.400.

(1) The Department of Transportation shall develop and implement a passenger rail plan for the purposes of increasing ridership on passenger trains and increasing ticket revenue.

The passenger rail plan must include, but is not limited to, the following:

(a) A marketing strategy.

(b) Strategies for boosting ridership.

(c) Strategies for boosting tourism through the use of passenger rail.

(d) Strategies for boosting capacity.

(e) Strategies for upgrading and improving railroad track and related infrastructure.

(f) Information about federal rail infrastructure grant applications submitted, denied and ap- proved, provided in summary form.

(2) The department may coordinate with other state agencies to develop the plan.

(3) The department shall submit a quarterly report on the performance of passenger rail to the [Joint Committee on Transportation] committees or interim committees of the Legislative As- sembly related to transportation in the manner provided in ORS 192.245.

The report must include a summary of the number of passengers utilizing passenger rail and on-time performance for the previous quarter.

SECTION 19.

Section 8, chapter 1, Oregon Laws 2025 (special session), is amended to read:

Sec.

8.

(1) As used in this section, “highway improvement project” means a state highway project for which the Department of Transportation may use federal transportation funds.

(2) If a city or county proposes to expand the scope of a highway improvement project, but does not provide funding, the city or county shall submit the proposed change to the Oregon Transpor- tation Commission.

If the commission approves the proposed change, the commission shall submit a report to the [Joint Committee on Transportation] committees or interim committees of the Legislative Assembly related to transportation that informs the committee about the proposed change and cost associated with the expanded scope.

After reviewing the report, the committee may submit recommendations for appropriations that may be made in the future to cover the costs of the expanded scope of the highway improvement project.

(3) This section applies to highway improvement projects when a city or county is not covering [8] A-Eng.

SB 1544 the costs of the expanded scope and:

(a) The project costs less than $25 million and the changes in scope the city or county is re- questing increase the project costs by 10 percent or more;

or (b) The project costs $25 million or more and the changes in scope the city or county is re- questing increase the project costs by five percent or more.

SECTION 20.

Section 14, chapter 1, Oregon Laws 2025 (special session), is amended to read:

Sec.

14.

(1) In consultation with the study review team described in ORS 366.506, the Oregon Department of Administrative Services shall undertake a review of the methodology for the highway cost allocation study required under ORS 366.506.

(2) The department shall examine all aspects of the methodology for the highway cost allocation study, including but not limited to the following:

(a) The revenues and expenditures included in the highway cost allocation study;

(b) How costs are allocated across different classes of vehicles;

(c) What constitutes a class of vehicle;

(d) The data used in the highway cost allocation study;

(e) The level of granularity to which cost responsibility is calculated for potential rate changes;

and (f) Whether equity should be analyzed based on an estimate of the future biennium’s revenue and expenditures or a retrospective analysis of past actual revenue and expenditures.

(3) The department may provide recommendations for updating the methodology for the study, including any changes in statute needed to improve the outcome of the study and ensure fairness and proportionate revenue and costs for each class of vehicle.

(4) The department shall submit a report in the manner provided by ORS 192.245, and may in- clude recommendations for legislation, to the [Joint Committee on Transportation] committees or interim committees of the Legislative Assembly related to transportation no later than June 30, 2026.

DISMANTLERS SECTION 21.

and (d) Approves the location and determines that the location complies with any regulations [9]adopted A-Eng.by a city or county under this section.

SB 1544 adopted by a city or county under this section.

Enrolled Senate Bill 1544 (SB 1544-B) Page 1 (d) Shall consider the health, safety and general welfare of the public;

SECTION 22.2.

The department may waive the re- quirement that an applicant for renewal obtain local government approval under ORS 822.140 of the [10]suitability A-Eng.of the applicant to establish, maintain or operate a motor vehicle dismantling business.] [(d)] (c) Maintains a current bond that meets the requirements under ORS 822.120.

SB 1544 suitability of the applicant to establish, maintain or operate a motor vehicle dismantling business.] [(d)] (c) Maintains a current bond that meets the requirements under ORS 822.120.

8 PUBLIC TRANSPORTATION PROVIDERS SECTION 23.3.

(1) “Public transportation service provider” includes a qualified entity and a city, county, specialspe- cial district, intergovernmental entity or any other political subdivision or municipal or public corpo-cor- rationporation that provides public transportation services and is not otherwise described in subsection (2) of this section.

or Enrolled Senate Bill 1544 (SB 1544-B) Page 2 (B) Intergovernmental entities who are providing public transportation services on behalf of a county;

CAPTIONS SECTION 24.4.

The unit captions used in this 2026 Act are provided only for the conven-convenience ience of the reader and do not become part of the statutory law of this state or express any legislativeleg- islative intent in the enactment of this 2026 Act.

EFFECTIVE DATE SECTION 25.5.

[11]Passed by Senate March 3, 2026 Received by Governor:

........................M.,........................................................., 2026 ..................................................................................

Obadiah Rutledge, Secretary of Senate Approved:

........................M.,........................................................., 2026 ..................................................................................

Rob Wagner, President of Senate ..................................................................................

Tina Kotek, Governor Passed by House March 5, 2026 Filed in Office of Secretary of State:

......................................................................................................................................, 2026 Julie Fahey, Speaker of House ..................................................................................

Tobias Read, Secretary of State Enrolled Senate Bill 1544 (SB 1544-B) Page 3