The 2026 Legislative Session, defined by an ambitious policy agenda, a compressed timeline, and heightened political tensions, officially adjourned sine die at 4:18 pm on March 6, 2026. Most bills passed this session take effect on June 5, 2026. Of the 304 bills introduced, 153 passed— a reflection of both the productivity and the limits of Oregon's short session format.

Throughout the 32-day session, key discussions centered around transportation referral processes, responses to federal immigration and customs enforcement actions, federal tax code disconnect, and broader conversations about agency budget reductions as the state grappled with significant fiscal pressures. These issues required extensive negotiation and, at times, contributed to procedural slowdowns as leadership and caucuses worked through policy differences.

Operating under the constraints of Oregon's short legislative session, lawmakers moved quickly to advance bills through committee hearings, work sessions, and floor votes.

Deadlines arrived rapidly, resulting in long floor sessions and a fast-paced environment as legislators worked to move priorities forward before adjournment. As is often the case in a campaign year, the session also featured a notable increase in remonstrances and extended floor speeches, with members using floor time to articulate policy positions and speak directly to issues likely to resonate with constituents back home.

Coming into the session, lawmakers faced a dual budget challenge: a roughly $750 million shortfall in the general fund driven primarily by the federal "One Big Beautiful Bill," which reduced Oregon revenues by nearly $900 million and created new administrative costs, and a separate $300 million gap at the Oregon Department of Transportation left unresolved after Republicans referred 2025 transportation fee increases to the ballot.

Democrats retained three-fifths supermajorities in both chambers — a critical advantage in Oregon, where that threshold is required to pass new or increased taxes.

Key Topics Took Control of the Session

Budget & Fiscal Response

The general fund shortfall proved more manageable than feared. Democrats closed the gap primarily by disconnecting portions of Oregon's tax code from select federal provisions via SB 1507, generating approximately $311 million for the general fund. An improved revenue forecast, combined with modest spending trims — largely through keeping vacant positions open and reducing agency supply budgets — covered the remainder.

The transportation shortfall was only partially addressed. ODOT vacancy savings and redirected federal funds covered roughly half the gap; the rest was backfilled by pulling from pedestrian safety programs, seismic retrofits, rail projects, and vehicle electrification funds. Lawmakers and transportation officials acknowledged the fix is not sustainable without long-term revenue solutions.

Transportation Funding & Ballot Referral

One of the session's most contentious storylines was the fate of the 2025 transportation funding package, which Republicans successfully referred to voters via ballot initiative. Rather than allow it to appear on the November 2026 ballot, Democrats passed SB 1599 to move the referendum to May 2026. Governor Kotek signed the bill immediately upon passage. Republican critics challenged the move both politically and legally, with legal action filed seeking to block the referral date change. The bill passed largely on party-line votes.

The May ballot outcome will be consequential not only for transportation funding but for Oregon's broader fiscal picture heading into the 2027 long session. A failed referendum would leave ODOT without a sustainable funding path and could accelerate service reductions already anticipated under the current budget.

Immigration & Federal Response

A substantial portion of Democratic floor time was dedicated to a package of bills responding to the Trump administration's immigration enforcement actions.

The package drew sharp partisan division, with minimal Republican support, and generated significant floor debate throughout the session. Supporters framed the measures as necessary protections for Oregon communities; opponents argued the bills interfered with federal law enforcement authority.

Moda Center / Portland Trail Blazers

With the Trail Blazers' new owner signaling a possible relocation, the Legislature approved SB 1501, authorizing up to $365 million in state bond financing toward Moda Center renovations. The bill pairs that state investment with a requirement that Portland and Multnomah County contribute more than $200 million collectively, and the Blazers are expected to commit to a 20-year stay in Portland. The full cost including debt service is projected to exceed $530 million.

The bill drew criticism from those who questioned whether the public was receiving sufficient return on its investment, while supporters argued the economic and civic cost of losing the franchise to another state was far greater. The state will engage a professional negotiator to finalize the terms of the agreement with ownership.

Key Wins

HB 4098 | Relating to violations of the Insurance Code as unlawful trade practices— DEAD

HB 4098 would have added specified violations of Oregon's insurance statutes as bases for consumers to bring civil actions and for prosecuting attorneys to bring enforcement actions under Oregon's Unlawful Trade Practices Act (UTPA). Specifically, the measure would have added trade practices prohibited under ORS 746.230 (unfair claim settlement practices), 746.650 (reasons for adverse underwriting decisions), 746.663 (cancellation or non-renewal of personal insurance policies based on credit history or insurance score), and 746.686 (use of prior claims or injury in determining whether to issue or renew a homeowner insurance policy) as actionable bases under the UTPA, along with failures to provide notices required under ORS 746.687.

Additional provisions would have required individuals filing insurance-related UTPA lawsuits to mail a copy of the complaint and any resulting judgment to the Department of Consumer and Business Services (DCBS), and required the DCBS Director to make a request before a prosecuting attorney could initiate a UTPA enforcement action related to insurance. The measure included three exemptions, disallowing UTPA civil actions against attorneys regarding legal advice relating to an insurance claim, against insurance agents regarding the selling, soliciting, or negotiating of insurance, and relating to the handling, settlement, or ultimate resolution of a medical malpractice or workers' compensation claim.

The bill faced significant opposition during its consideration. The sponsor attempted to amend the measure to exclude third-party claims from its scope; however, feedback from Legislative Counsel during the bill's work session made clear that the intent had not been successfully executed in the amendment language. Republican members requested that the bill be referred to the Committee on Rules to allow time to address the third-party claims concern, but the bill was moved to the House floor without that referral.

It ultimately failed by a vote of 28-30, with Democratic Representatives E. Levy, Rieke Smith, Pham, Nguyen D, Watanabe, and Isadore joining the entire Republican caucus in opposing the measure. 

Passed Legislation

SB 1551 | Relating to fire hardening of residential properties.

SB 1551 removes private contractual barriers to wildfire-hardening improvements on residential properties by invalidating deed restrictions and homeowners association governing document provisions that prohibit or effectively prevent the installation of fire-hardened building materials or the removal of non-fire-hardened materials.

Specifically, the measure invalidates deed restrictions in planned community documents that prohibit the installation, use, or maintenance of fire-hardened building materials or the removal of non-fire-hardened building materials on residential properties. It also invalidates HOA governing document provisions that prohibit the removal and replacement of non-fire-hardened building materials, or that limit the design, dimensions, placement, maintenance, or appearance of fire-hardened building materials in a manner that effectively prevents their use or requires materials that are substantially more expensive than comparable available alternatives.

The measure establishes a deemed-approval process for applications to install fire-hardened building materials or remove non-fire-hardened materials: an application is considered approved unless the homeowners association, acting in a non-arbitrary and non-capricious manner, denies or requests modifications in writing within 90 days and demonstrates the basis for the denial and any necessary modifications.

It passed unanimously in both chambers and takes effect June 5, 2026.

SB 1507 | Relating to revenue; and prescribing an effective date.

SB 1507, Oregon's federal tax disconnect bill, was one of the more politically divisive fiscal measures of the 2026 session. Introduced in response to the federal tax changes enacted through

H.R. 1, the measure is estimated to generate approximately $311 million in General Fund revenue. Democrats characterized the bill as a necessary and prudent response to the state's budget shortfall, arguing that it protected Oregon taxpayers from the downstream fiscal consequences of federal tax policy. Republicans countered that the revenue generated comes directly at the expense of Oregon taxpayers and businesses, arguing the measure would worsen economic conditions for Oregonians at an already difficult time.

The measure requires qualified passenger vehicle loan interest deducted on a federal tax return to be added back to income reported on Oregon's income tax return, and requires gain from the exchange or sale of qualified small business stock deducted on a federal personal income tax return to be similarly added back to Oregon personal income tax returns. Both additions apply to tax years 2026 and later. The measure disallows bonus depreciation for tax years 2026 and later, requiring an addition for federal bonus depreciation on property with a corresponding subtraction over the asset's remaining depreciable life, applicable to property placed in service in tax year 2026 and later.

To offset some of the revenue impact on lower-income Oregonians, the measure increases Oregon's earned income tax credit to 14 percent of the taxpayer's federal credit, or 17% for taxpayers with a dependent under the age of three, for tax years 2026 and later. The measure also creates a new nonrefundable personal and corporate income tax credit for taxpayers who create new jobs in Oregon, equal to $1,000 per net new job, capped at ten net new jobs per taxpayer per year. Each qualifying new job must provide compensation equal to or greater than 150 percent of the applicable minimum wage, and eligibility requires written certification from the Oregon Business Development Department. Unused credits may be carried forward for up to three successive tax years, and total credits are capped at $12.5 million for any tax year. The job creation credit applies to tax years 2026 through 2031. Finally, the measure updates Oregon's connection date to the federal Internal Revenue Code and other provisions of federal law to December 31, 2025, or January 1, 2026.

Reflecting the measure's contentious nature, it passed on largely party-line votes 17-13 (Anderson, Drazan, Girod, Hayden, Linthicum, McLane, Meek, Nash, Robinson, Smith DB, Starr, Thatcher, Weber) in the Senate, 34-21 (Boice, Breese-Iverson, Bunch, Cate, Diehl, Edwards, Elmer, Harbick, Helfrich, Levy B, Lewis, Mannix, McIntire, Osborne, Owens, Reschke, Skarlatos, Smith G, Wallan, Wright, Yunker) in the House, and takes effect June 5, 2026.

HB 4111 | Relating to immigration-related practices; and prescribing an effective date.

HB 4111 renders an individual's immigration status generally inadmissible as evidence in civil proceedings unless that status is an essential element of a party's claim. If a party moves to introduce immigration-related evidence at trial, the court is directed to hold a hearing outside the jury's presence and to treat all related materials as confidential.

The measure establishes two narrow employment-claim exceptions under which immigration status-related evidence may be introduced through a confidential post-trial filing: first, a final removal order in an immigration proceeding may be submitted solely for the purpose of calculating damages for future wage loss; and second, evidence of federal work authorization may be submitted if the party was awarded reinstatement to a position. These exceptions are strictly limited to post-trial proceedings and must be handled through confidential filings.

On employment protections, the measure prohibits employers from taking adverse action against an employee who updates their personal information to reflect a lawful change to their federal employment authorization, while expressly stating that employer compliance with federal employment authorization verification requirements remains lawful. The measure also provides protections for employers in instances where a third-party benefits administrator independently takes adverse action in response to changes in an employee's personal information or federal employment authorization. Additionally, the measure prohibits law enforcement officers from profiling individuals based on immigration status.

It passed 34-19 (Boice, Breese-Iverson, Bunch, Cate, Diehl, Edwards, Elmer, Harbick, Helfrich, Lewis, Mannix, McIntire, Osborne, Owens, Reschke, Skarlatos, Smith G, Wright, Yunker) in the House and 20-9 (Girod, Hayden, Linthicum, Nash, Robinson, Smith DB, Starr, Thatcher, Weber) in the Senate and takes effect June 5, 2026.

HB 4029 | Relating to solar energy systems; and prescribing an effective date.

HB 4029 establishes a comprehensive consumer protection framework for the residential solar energy market, addressing concerns about deceptive sales practices and inconsistent licensing standards that have emerged alongside the growth of Oregon's solar industry. According to the Oregon Department of Energy's 2024 Biennial Energy Report, solar energy accounts for 3.8% of the state's energy production, with many systems financed through third-party companies, an arrangement that has created opportunities for misleading sales tactics, including false claims of "free" solar, high-pressure sales approaches, and exaggerated promises about cost savings.

The measure requires solar energy sales agents and contractors to hold licenses appropriate for the scope of work they perform and establishes mandatory disclosure requirements for solar purchases, leases, and power purchase agreements. Prior to concluding a sale, sales agents and contractors must provide residents with specified disclosures and submit a written disclosure to the resident's local electric utility with materials necessary for a grid interconnection application which must be approved before installation may begin. Installation contracts must meet specified criteria, and customers must receive a complete and accurate copy upon execution. The measure also prohibits deceptive statements regarding the costs, financing, or terms of a solar purchase, with violations treated as unlawful practices under the Unlawful Trade Practices Act.

The -3 amendment, which was adopted, added requirements that any warranty provided by a solar energy contractor or installer, whether for the system itself or for property repairs related to its installation or removal, automatically transfers to a new residential property owner and remains valid for the full warranty term, providing continuity of consumer protections upon the sale of a home. Additionally, the amendment expanded the definition of "license" to include a limited residential electrician among those authorized to engage in business or employment as an electrical contractor, better aligning the measure's licensing framework with the range of professionals involved in solar installations.

The measure takes effect June 5, 2026 and passed 57-0 in the House and 25-4 (Linthicum, Nash, Robinson, Starr) in the Senate.

HB 4040 | Relating to health care; and declaring an emergency.

HB 4040, Representative Nosse's omnibus healthcare bill, incorporates 17 discrete policy provisions spanning a broad range of healthcare delivery, insurance, and workforce issues.

On hospital financial assistance, the measure increases the minimum amount a patient must owe a hospital from $500 to $1,500 for a single encounter before the hospital is required to screen the patient for presumptive eligibility for financial assistance. With respect to residential care facility administrators, the measure expands eligibility by specifying that administrators may hold a bachelor's degree in any field, rather than only a health or social service-related field. The measure also permits OHA to enroll eligible individuals in prerelease medical assistance benefits to support continuity of care during carceral transitions.

Regarding the Health Evidence Review Commission (HERC), the measure requires OHA to post a complete public agenda at least 14 days before a HERC meeting, prohibits agenda changes after posting, and directs OHA to provide written public testimony to commission members within 48 hours of the close of the public comment period. The measure makes changes to the composition requirements of the Medicaid Advisory Committee (MAC) and removes the requirement within the Children with Extraordinary Needs (CEN) program that parent providers be employed by an agency, allowing them to be employed directly as a direct support professional or a personal support worker.

On healthcare workforce, the measure allows dental students from accredited out-of-state dental schools to complete clinical rotations in Oregon and lowers the retirement age for naturopathic physicians from 70 to 65 for purposes of obtaining a retired status license. It also allows physician associates and nurse practitioners to continue seeing workers' compensation patients beyond 180 days without referring them to an attending physician, and allows psilocybin facilitators who completed approved training in another state to practice in Oregon, while expanding eligibility for licensure as a psilocybin facilitator to include physical therapists and occupational therapists.

With respect to insurance, the measure requires commercial insurance plans to cover medically necessary anesthesia services without restricting coverage based on the duration of services. It creates a series of protections for dental providers under commercial dental insurance plans, including establishing timelines for insurers to respond to dental claims, prohibiting certain contract provisions, establishing requirements for when insurers may request refunds from providers, and requiring direct payments for covered services. The measure also directs the Legislative Policy and Research Office to create a pilot program to evaluate proposed health insurance mandates and report findings to the legislature, and repeals the provision from Senate Bill 1529 (2022) that mandated the automatic assignment of primary care providers for commercial insurers.

Finally, the measure clarifies exemptions for pharmacy services administrative organizations from third-party administrator registration requirements, revises the Prescription Drug Affordability Board's requirement for identifying drugs that create affordability challenges, and adds a provision modifying language in existing statute related to prosthetic and orthotic devices.

The measure passed unanimously in both chambers and takes effect upon passage, although there was concerned raised by multiple legislative members on the process of a large omnibus measure bypassing its second policy committee by going straight to Ways & Means.

HB 4092 | Relating to child safety systems.

HB 4092 restricts the sale of child safety restraint systems that do not meet federal or state safety standards, applying to both retailers and the online or other marketplace platforms that facilitate their sale. The measure establishes a knowingly standard for retailers and retail platform operators, prohibiting them from selling, offering for sale, or making available any child restraint device that fails to meet National Highway Traffic Safety Administration (NHTSA) standards or Oregon Department of Transportation (ODOT) standards adopted by rule.

Online and marketplace platform operators are subject to additional obligations under the measure. A platform that enables purchasers to select, pay for, and receive a child safety system is prohibited from permitting a retailer to advertise or offer for sale a non-compliant device without first obtaining a written disclosure from the retailer confirming that the device meets the applicable federal and state standards. The measure also clarifies the definition of retail platform operator to include operators of centralized fulfillment, distribution, or warehouse networks and sales from inventory that a person owns, leases, or otherwise controls, while explicitly excluding delivery services from that definition.

To provide a pathway for compliance, the measure affords retailers and retail platform operators a 30-day cure period upon notice of a violation before liability attaches. Violations are enforceable through a private right of action.

The measure takes effect January 1, 2027 and passed 40-0 in the House and 27-1 (Robinson) in the Senate.

SB 1517 | Relating to civil litigation; and declaring an emergency.

SB 1517 modernizes Oregon's recreational liability waiver framework in direct response to the Oregon Supreme Court's decision in Bagley v. Mt. Bachelor, which created significant uncertainty around the enforceability of liability releases for sport, fitness, and recreational activities.

The measure expands the definition of sport, fitness, and recreational activities to include environmental restoration and maintenance, and allows releases to cover claims that "arise out of" the activity or volunteering to maintain facilities or places used for the activity. It requires releases

to be clear and unambiguous in writing and to disclose the risks associated with the activity. The measure narrows the equipment exception to apply only to the maintenance or inspection of safety equipment supplied by the operator and used in connection with the activity or volunteering, and limits the exception for negligent hiring, training, credentialing, or supervision claims to employees or agents of the operator, adding negligent retention to the lis, for claims arising out of conduct that constitutes gross negligence, reckless conduct, willful misconduct, or an intentional tort.

The measure adds new exceptions for claims relating to negligent safety-related training of the operator's employees or agents, abuse of children, and physical abuse or sexual assault of adults. Conversely, it eliminates existing exceptions for failure to warn of known hazards that are not inherent risks and for violations of industry safety standards. The exception for vehicles is narrowed by removing motorized conveyances, and the determination of whether a risk is inherent to an activity is designated a question of law for the court rather than a question of fact for the jury. The measure clarifies that it does not modify current ski safety statutes and allows non-conforming releases to be construed as enforceable to the extent that portions of the release do conform to the measure's requirements. The measure applies to waivers executed at any time for claims arising on or after the measure's effective date.

The measure passed 16-13 (Anderson, Drazan, Girod, Golden, Hayden, Linthicum, Meek, Neron Misslin, Robinson, Sollman, Starr, Thatcher, Weber) in the Senate, 55-2 (Munoz, Sosa) in the House, and is effective upon passage.

SB 1520 | Relating to the administration of moneys within the Paid Family and Medical Leave Insurance Fund; and prescribing an effective date.

SB 1520 authorizes the Director of the Oregon Employment Department to adopt rules establishing an accounting system for managing contributions to and benefits paid from the Paid Family and Medical Leave Insurance (PFMLI) Fund. The accounting system is intended to ensure compliance with applicable tax reporting and withholding requirements, and the measure specifies the parameters of what the system may include. Notably, the measure does not expand the Director's existing authority to alter the percentage of total contribution rates that employers and employees are required to pay.

The measure responds to a practical administrative need within the PFMLI program, providing the Employment Department with the regulatory flexibility necessary to maintain accurate and compliant fiscal management of the fund as the program continues to mature. The measure takes effect June 5, 2026 and passed unanimously in both Chambers.

SB 1527 | Relating to health care.

SB 1527 eliminates cost-sharing requirements for medically necessary cervical cancer screenings and follow-up examinations under Oregon health insurance coverage. The measure prohibits group and individual health insurance plans, the Public Employees' Benefit Board (PEBB), and the Oregon Educators Benefit Board (OEBB) from imposing deductibles, coinsurance, copayments, or any other out-of-pocket costs on covered cervical cancer screenings. For purposes of the measure, "cervical cancer screening" is defined as screening tests recommended by the U.S. Preventive Services Task Force or the Health Resources and Services Administration intended to detect the presence of cervical cancer or precancerous lesions in individuals without apparent symptoms.

The cost-sharing prohibition extends beyond initial screenings to include follow-up examinations when abnormalities are detected, encompassing colposcopy, biopsy, and additional cytology or human papillomavirus (HPV) tests. The measure exempts these coverage requirements from the automatic sunset provisions of the Insurance Code, establishing them as permanent obligations rather than time-limited mandates.

The measure applies to health plans beginning January 1, 2027 and passed 30-0 in the Senate and 53-4 (Bunch, Cate, Harbick, Reschke) in the House.

HB 4027 | Relating to the Bureau of Labor and Industries; and prescribing an effective date.

HB 4027 establishes the Bureau of Labor and Industries (BOLI) Expenses Fund in the State Treasury as a dedicated funding mechanism to address BOLI's longstanding resource constraints, directing the Department of Consumer and Business Services (DCBS) to manage the fund subject to an agreement between the DCBS director and the BOLI commissioner.

Beginning January 1, 2027, the measure authorizes the DCBS director to set and collect an assessment from employers and employees, separate from the existing Workers' Benefit Fund (WBF) assessment, to be deposited into the new fund. The assessment rates are structured to build the fund to specified reserve thresholds over time: at least $4.25 million by June 30, 2029; greater than $4.25 million or 12 months of projected fund expenses by June 30, 2030; and at least

$9.5 million or 12 months of projected fund expenses by June 30, 2031 and each subsequent year. New positions funded through the assessment are capped at a cumulative cost of $5.25 million per year as of July 1, 2031. If DCBS determines the fund will not meet required reserve levels, it must consult with BOLI to develop a remediation plan and report that plan to the Workers' Compensation Management-Labor Advisory Committee (MLAC). The measure explicitly prohibits the transfer of money from the WBF into the new fund, ensuring the two assessment streams remain distinct.

Beginning July 1, 2029, the fund may transfer moneys to BOLI to cover expenses incurred in carrying out its specified statutory duties under ORS 651.050, with DCBS reimbursed for its actual administrative expenses in managing the fund and setting assessment rates subject to the interagency agreement.

The measure also raises the maximum fee the BOLI commissioner may charge a public agency awarding public works contracts subject to prevailing wage laws from $7,500 to $12,500, effective upon the measure's operative date. The commissioner is directed to submit a report to the legislature's interim labor committees by September 15 of each even-numbered year examining whether the adjusted fee level generates sufficient revenue to meet BOLI's staffing needs.

The measure drew opposition from Oregon Business Industries and the Oregon School Boards Association, both of whom argued that the bill's assessment on employers, including public employers, constituted a tax increase and therefore required a three-fifths supermajority vote under Oregon's constitution rather than a simple majority. Legislative Counsel reviewed the question and determined that a three-fifths majority would not be required, allowing the measure to advance under a standard majority vote threshold. The constitutional question nonetheless remained a point of contention among opponents throughout the bill's consideration.

The measure passed 18 - 12 (Anderson, Drazan, Girod, Hayden, Linthicum, McLane, Nash, Robinson, Smith DB, Starr, Thatcher, Weber) in the Senate, 33 - 11 (Boice, Breese-Iverson, Bunch, Cate, Elmer, Harbick, Levy B, Owens, Reschke, Scharf, Wallan) in the House, and takes effect June 5, 2026.

SB 1519 | Relating to total disability.

SB 1519 modifies the formula used to calculate compensation paid to workers during periods of temporary and permanent total disability under Oregon's workers' compensation system.

For temporary total disability, the measure establishes a two-tiered compensation structure: workers receive 75% of the portion of their wage that is equal to or less than 75% of the average weekly wage, and 65% of the portion of their wage that exceeds 75% of the average weekly wage. Both calculations are based on the average weekly wage in effect on the date of the injury. For permanent total disability, the measure applies the same two-tiered structure, with 75% of the worker's wage up to 75% of the average weekly wage and 65% of the wage amount exceeding that threshold, again based on the average weekly wage in effect on the date of injury.

The measure retains existing minimum and maximum compensation rates during periods of temporary or permanent total disability. It also clarifies that the statutory definition of "average weekly wage" applicable to temporary total disability applies only to increases in compensation benefits paid when the applicable average weekly wage has increased since the previous fiscal year. The modifications apply to claims with a date of injury on or after January 1, 2027.

It passed unanimously in both chambers and takes effect June 5, 2026.

HB 4089 | Relating to criminal offenses related to work.

HB 4098 modifies the circumstances under which a person commits the crime of theft of services and establishes new criminal penalties related to unlicensed construction labor contracting and fraudulent use of contractor license numbers.

The measure requires Oregon's Interagency Compliance Network to develop methods for gathering and sharing information related to individuals and entities that commit theft-of-services offenses and fail to comply with laws governing taxation or employment. It establishes that a direct contractor or subcontractor who knowingly hires an unlicensed construction labor contractor commits a Class A misdemeanor for a first offense and a Class C felony for subsequent offenses. The measure also increases the criminal penalty for intentionally using a construction contractor's license number without authorization, or using a license number regardless of authorization with the intent to deceive the public, from a Class A misdemeanor to a Class C felony.

HB 4089 passed 33-9 (Boice, Breese-Iverson, Cate, Elmer, Harbick, Levy B, Owens, Scharf, Wallan) in the House and 26-2 (Linthicum, Robinson) in the Senate.

HB 4178 | Relating to rounding procedures in transactions; and declaring an emergency.

HB 4178 was introduced in direct response to the U.S. Mint's decision to stop producing pennies for circulation on November 12, 2025, and allows places of public accommodation and public bodies to adopt rounding policies for in-person cash or mixed-tender transactions, reducing the need for penny-level change in retail and government payment settings.

For places of public accommodation, the measure allows adoption of a rounding policy for in-person cash or mixed-tender transactions, with specific rounding rules: totals ending in one, two, six, or seven must be rounded down to the nearest amount divisible by five cents, while totals ending in three, four, eight, or nine must be rounded up to the nearest amount divisible by five cents. The policy must be applied consistently, and signs must be posted notifying the public of the rounding procedures used. Buyers retain the right to pay the exact amount in change to avoid rounding. The measure specifies how rounding applies when a buyer pays part of the total in cash and part in a non-cash method, and exempts places of public accommodation that comply with the measure's rounding requirements from liability under unlawful trade practices laws. The measure explicitly excludes retail transactions conducted by telephone, mail, or through internet-based platforms.

For public bodies, the measure allows the adoption of a reasonable rounding policy for in-person cash or mixed-tender transactions involving commodities, services, debts, fees, or taxes owed to the public body, rounding the final digit of the total or remaining amount due to the nearest amount divisible by five cents. Public bodies must apply the policy consistently, post signs giving notice of the policy, and publicize it broadly.

The measure declares an emergency and is effective upon passage. It passed 40-2 (Harbick, Owens) in the House and 26-2 (Meek, Taylor) in the Senate.

Dead Legislation

SB 1540 | Relating to property insurance.

Would have required an insurer that uses a catastrophe model or wildfire risk model or scoring method to provide the Director of the Department of Consumer and Business Services a description of each model or scoring method, along with related information, and an explanation of how the insurer uses the model or scoring method in underwriting decisions.

HB 4026 | Relating to consumer protection.

Requires the Department of Consumer and Business Services to study consumer protection.

HB 4028 | Relating to behavioral health.

Would have imposed requirements and restrictions on insurer and coordinated care organization audits of claims for reimbursement submitted by behavioral health treatment providers.

HB 4054 | Relating to downcoding.

Would have required certain health insurers offering a health benefit plan in this state that provide utilization review or have utilization review provided on their behalf to notify a health care provider each time the insurer uses artificial intelligence or other automated technology to automatically downcode a claim for reimbursement submitted by the provider.

HB 4071 | Relating to recreation.

Would have provided that an operator may require an adult person who engages in a sport, fitness or recreational activity in various ways to release the operator from claims for ordinary negligence.

HB 4093 | Relating to protections for persons with disabilities.

Would have directed the Bureau of Labor and Industries to create certain guidance and informational materials to assist employers and employees.

HB 4094 | Relating to compensation for certain unused paid time off upon termination of employment.

Would have required employers that provide, by written policy or employment contract, for the payment of earned or accrued but unused paid time off upon termination to make such payments in accordance with statutory requirements governing final wages.

SB 1553 | Relating to wildfires resulting from the fault of an electric company.

Would have prohibited an electric company from recovering from retail electricity consumers certain litigation or settlement costs or expenses if a court or jury finds that a wildfire resulted from the negligence or a higher degree of fault on the part of the electric company.

SB 1593 | Relating to recreation.

Would have provided that an operator may require a person who engages in a sport, fitness or recreational activity in various ways to release the operator from claims for ordinary negligence.

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