SB 1585 — Relating to matching grants for cities; and prescribing an effective date.

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session A-EngrossedEnrolled Senate Bill 1585 Ordered by the Senate February 17 Including Senate Amendments dated February 17 Sponsored by Senators MANNING JR, ANDERSON, SOLLMAN, MEEK, PATTERSON, PROZANSKI, Representative DIEHL;

Senators BROADMAN, DRAZAN, GOLDEN, GORSEK, HAYDEN, NASH, SMITH DB, THATCHER, WEBER, Represen-Representatives tatives BOICE, BUNCH, CATE, EDWARDS, EVANS, FRAGALA, GAMBA, HUDSON,GOMBERG, MCINTIRE,HARBICK, MCLAIN,HELFRICH, RIEKEHELM, SMITH,HUDSON, WISELEVY (Pre-B, sessionLEWIS, filed.)MANNIX, SUMMARYMCINTIRE, TheMCLAIN, followingMUNOZ, summaryNELSON, isOWENS, notRIEKE preparedSMITH, byWISE, theWRIGHT, sponsorsYUNKER of(Presession thefiled.) measureCHAPTER and................................................. is not a part of the body thereof subject to consideration by the Legislative Assembly.

ItAN isACT anRelating editor’sto briefmatching statementgrants offor thecities; essential features of the measure.

The statement includes a measure digest written in compliance with applicable readability standards.

Digest:

The Act would set a maximum percent required for matching grants made by the state to small cities for capital projects.

(Flesch Readability Score:

64.6).

Sets maximum matching fund requirements for state grants to small incorporated cities for certain capital construction and municipal infrastructure and improvements.

Takes effect on the 91st day following adjournment sine die.

A BILL FOR AN ACT Relating to matching grants for cities;

NOTE:(C) An incorporated city with a population greater than 7,500 but not greater than 10,000 may be required to provide a cash match of not greater than nine percent of the project’s costs.

Matter in boldfaced type in an amended section is new;

matter [italic and bracketed] is existing law to be omitted.

New sections are in boldfaced type.

LC 133 A-Eng.

SB 1585 (C) An incorporated city with a population greater than 7,500 but not greater than 10,000 may be required to provide a cash match of not greater than nine percent of the project’s costs.

Enrolled Senate Bill 1585 (SB 1585-A) Page 1 (c) [Notwithstanding subsection (2) of this section, by rule,] The commission may reduce the amount [the] an applicant must provide for a cash match.

(i) Three percent of the moneys required for a transportation project having a project [2]cost A-Eng.of $100,000 or less.

SB 1585 cost of $100,000 or less.

Enrolled Senate Bill 1585 (SB 1585-A) Page 2 (b) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.

(b) Notwithstanding any other provision of law restricting the use of the grant award [3]moneys, A-Eng.incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.

SB 1585 moneys, incorporated cities with a population not greater than 20,000 may use grant moneys awarded for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.

Enrolled Senate Bill 1585 (SB 1585-A) Page 3 (2) To qualify for financial assistance under this section, the municipality, corporation, company, entity or individual must demonstrate, and the authority must find, that the levee project substan- tially contributes to the improvement, expansion or repair of the state’s or a municipality’s infrastructure system and is essential for the use or development of farm, industrial or commercial land in Oregon.

(f) Notwithstanding any other provision of law restricting the use of the grant award moneys, municipalities with a population not greater than 20,000 may use grant moneys awarded for capital construction or municipal infrastructure for all phases of a funded [4]project A-Eng.in addition to construction, including, but not limited to, engineering, planning and support.

SB 1585 project in addition to construction, including, but not limited to, engineering, planning and support.

[(3) Grants from the fund for planning projects are limited to a maximum of $2 million per appli- cant per biennium.] [(4) Grants from the fund for construction or capital improvement projects may not exceed an amount equal to 80 percent of the total cost of the project.] [(5) A grant may not be awarded from the fund unless the applicant pledges matching funds to the project of at least 20 percent of the amount of the grant.] Enrolled Senate Bill 1585 (SB 1585-A) Page 4 [(6) At least 60 percent of the dollar value of grants awarded from the fund in any biennium shall be used to provide assistance with levee projects to rural or distressed areas as those terms are defined in ORS 285A.010.] SECTION 6.

(2) Notwithstanding any other provision of law restricting the use of the grant award moneys, incorporated cities with a population not greater than 20,000 may use grant moneys [5]awarded A-Eng.for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.

SB 1585 awarded for capital construction or municipal infrastructure for all phases of a funded project in addition to construction, including, but not limited to, engineering, planning and support.

Enrolled Senate Bill 1585 (SB 1585-A) Page 5 (a) Incorporated cities with a population not greater than 5,000 may be required to pro- vide matching funds in an amount not greater than:

[(5)] (6) Grants and the cost of direct services provided under this section must be paid from [6]moneys A-Eng.available in the Water Project Feasibility Fund.

SB 1585 moneys available in the Water Project Feasibility Fund.

Enrolled Senate Bill 1585 (SB 1585-A) Page 6 (3)(a) A cost match for grants sought by incorporated cities with a population not greater than 20,000 shall be required as follows, based on population according to the most recent federal decennial census:

(B) Incorporated cities with a population greater than 5,000 but not greater than 7,500 may be required to provide a cost match in an amount not greater than seven percent of the [7]amount A-Eng.of the grant sought.

SB 1585 amount of the grant sought.

[8]Passed by Senate February 19, 2026 Received by Governor:

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

Approved:

Obadiah Rutledge, Secretary of Senate ........................M.,........................................................., 2026 ..................................................................................

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