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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2795
Sponsored by Representative NERON, Senator WOODS (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act makes changes to the STIF program. (Flesch Readability Score: 92.0).
Modifies the definition of “qualified entity” for purposes of the Statewide Transportation Im-
provement Fund distributions for public transit.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to public transportation service providers; creating new provisions; amending ORS 184.752
and 184.758; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 184.752 is amended to read:
184.752. As used in ORS 184.752 to 184.766:
(1) “Public transportation service provider” includes a qualified entity and a city, county, special
district, intergovernmental entity or any other political subdivision or municipal or public corpo-
ration that provides public transportation services and is not otherwise described in subsection (2)
of this section.
(2) “Qualified entity” means the following:
(a) Counties in which no part of a mass transit district or transportation district exists or
counties in which a mass transit district or transportation district does exist and that have
opted to be designated as a qualified entity in the manner provided by the Oregon Trans-
portation Commission by rule ;
(b) Mass transit districts organized under ORS 267.010 to 267.394;
(c) Transportation districts organized under ORS 267.510 to 267.650; and
(d) Federally recognized Indian tribes.
SECTION 2.
ORS 184.758 is amended to read:
184.758. (1) The Oregon Transportation Commission shall distribute the moneys in the Statewide
Transportation Improvement Fund established under ORS 184.751 to the Department of Transporta-
tion to pay for:
(a) Program administration; and
(b) Projects of statewide significance that support the transit network and manage the operation
of public transportation services.
(2) The moneys described in subsection (1) of this section that remain after the distribution of
moneys described in subsection (1) of this section shall be distributed as follows:
(a) Conditioned upon the commission’s approval of a public transportation improvement plan, 90
percent to qualified entities;
(b) Five percent to public transportation service providers based on a competitive grant program
NOTE: 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 2467
HB 2795
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adopted by the commission by rule;
(c) Four percent to public transportation service providers to provide funding assistance to
cover the costs of improving public transportation services between two or more communities; and
(d) One percent to the Department of Transportation to establish a statewide public transpor-
tation technical resource center, the purpose of which is to assist public transportation service
providers in rural areas with technical assistance, training, transportation planning and information
technology.
(3) A portion of the 90 percent distribution under subsection (2)(a) of this section shall be dedi-
cated to transit services for older adults and individuals with disabilities. Each biennium the com-
mission shall first distribute the moneys transferred to the fund under ORS 184.751 as needed to
maintain funding that benefits older adults and individuals with disabilities in the amount distrib-
uted during the 2019-2021 biennium. Each biennium thereafter, the commission shall adjust this
amount upward or downward based on the rate of growth or decline of the Statewide Transportation
Improvement Fund. Moneys dedicated to transit services for older adults and individuals with disa-
bilities under this subsection shall be distributed as follows:
(a) Each transportation district and mass transit district shall receive that share of the moneys
as the population of the counties in which the district is situated, determined under ORS 190.510 to
190.610 last preceding apportionment of the moneys, bears to the total population of this state.
However, if two or more districts are situated in a single county, distribution of moneys under this
subsection shall be determined as though only the mass transit district is located in that county or,
if there are two or more transportation districts in the county, as though only the transportation
district with the highest population is located in that county.
(b) Each county in which no part of a mass transit district or transportation district is located
shall receive that share of the moneys as its population, determined under ORS 190.510 to 190.610
last preceding apportionment of the moneys, bears to the total population of this state.
(c) Each federally recognized Indian tribe shall receive that share of the moneys as the popu-
lation of the tribe residing in Oregon, determined by the commission by rule, bears to the total
population of this state.
(4) Each qualified entity under subsection (3) of this section shall receive an annual target
amount of $67,700. Each biennium, the commission shall adjust this amount upward or downward
based on the rate of growth or decline of the Statewide Transportation Improvement Fund.
(5) After a portion of the 90 percent distribution under subsection (2)(a) of this section is dis-
tributed to transit services for older adults and individuals with disabilities under subsection (3) of
this section, the commission shall distribute the remaining amount to qualified entities as follows:
(a) Each distribution must be in such shares that the amount of tax paid, as required under ORS
320.550, in the area of each qualified entity bears to the total amount of the tax paid statewide,
provided that each qualified entity receives an annual target amount of $100,000. Each biennium, the
commission shall adjust this amount upward or downward based on the rate of growth or decline
of the Statewide Transportation Improvement Fund.
(b) Unless a county opts to be designated as a qualified entity, if more than one mass transit
district or transportation district is located within a single county, the commission shall distribute
the moneys to the larger district. If a county opts to be designated as a qualified entity, the
commission shall distribute to the county the moneys for the county and all public trans-
portation service providers that have jurisdictional boundaries wholly within the county’s
jurisdictional boundaries or that have jurisdictional boundaries partially within the county’s
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jurisdictional boundaries and not within any other mass transit district’s or transportation
district’s jurisdictional boundaries.
(6) The commission shall adopt by rule:
(a) A competitive grant program, by which a public transportation service provider may apply
for a percentage distribution under subsection (2)(b) of this section, and the terms and conditions
of grants.
(b) A competitive grant program, by which a public transportation service provider may apply
for a percentage distribution under subsection (2)(c) of this section, and the terms and conditions
of grants.
(c) A process to review and approve a public transportation improvement plan submitted under
subsection (7) of this section.
(d) Procedures for appealing a rejection of a public transportation improvement plan submitted
under subsection (7) of this section.
(e) Any other provisions or procedures that are necessary for the commission to carry out the
provisions of ORS 184.758 to 184.766.
(7) To be eligible to receive a percentage distribution under subsection (2)(a) of this section, a
qualified entity shall prepare and submit a public transportation improvement plan to the commis-
sion. The commission must approve the plan submitted by the qualified entity before the commission
may make a percentage distribution to the qualified entity.
(8) At a minimum, a public transportation improvement plan submitted under this section must
include:
(a) For each proposed project, the amount of moneys from the percentage distribution that would
be allocated to the project to fund the following:
(A) Increased frequency of bus service schedules in communities with a high percentage of
low-income households;
(B) Procurement of buses that are powered by natural gas or electricity for use in areas with
a population of 200,000 or more;
(C) Implementation of programs to reduce fares for public transportation in communities with
a high percentage of low-income households;
(D) Expansion of bus routes and bus services to reach communities with a high percentage of
low-income households;
(E) Improvement in the frequency and reliability of service connections between communities
inside and outside of the qualified entity’s service area;
(F) Coordination between public transportation service providers to reduce fragmentation in the
provision of transportation services;
(G) Implementation of programs to provide student transit services for students in grades 9
through 12; and
(H) Services for older adults and people with disabilities;
(b) For the current fiscal year, a summary of any plans and project proposals approved by an
advisory committee under ORS 184.761; and
(c) If a qualified entity was a recipient of a percentage distribution in the preceding fiscal year,
the amount of moneys received from the distribution that were allocated to a project for the pur-
poses described under paragraph (a) of this subsection.
(9) If practicable, as determined by the commission by rule each qualified entity shall spend at
least one percent of the amount received each year under subsection (2)(a) of this section to imple-
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ment programs to provide student transit services for students in grades 9 through 12.
(10) After the commission makes a distribution under subsection (2) of this section, qualified
entities may enter into intergovernmental agreements under ORS chapter 190 to combine the mon-
eys received for public transportation improvements.
(11) If the commission rejects a public transportation improvement plan or a grant application
submitted under this section, the commission shall notify the entity or provider in writing and state
the reasons for the rejection.
(12) The Department of Transportation shall make all grant applications submitted under this
section available to the public.
SECTION 3.
On or before December 31, 2026, the Oregon Transportation Commission
shall adopt or update rules in conformance with the amendments to ORS 184.752 and 184.758
by sections 1 and 2 of this 2025 Act.
SECTION 4. Section 3 of this 2025 Act is repealed on January 2, 2027.
SECTION 5. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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