Oregon Democrats’ campaign finance proposal would establish spending limits, push back other provisions

State leaders are trying to stand up a law to massively overhaul Oregon’s campaign finance system.

Now, two years after the original bill’s passage, a new proposal would limit political contributions before the next general election as planned, but give the Secretary of State more time to launch a required system to track spending.

An amended bill, unveiled Monday evening, is shining a spotlight on the divide between the politically powerful labor and business groups who support it and good government advocates who are accusing state leaders of trying to skirt the intent of the original legislation.

House Bill 4018, which saw its first public hearing Tuesday morning, comes as state officials seek to prop up the campaign finance bill passed in 2024. Since then, state leaders have been jockeying over how best to quickly set up the bill for Oregon’s elections. For years, the state has not capped political giving.

State elections officials have warned repeatedly that the legislation from 2024 was flawed and that Oregon was barreling toward a failed implementation. The Oregon Secretary of State says it needs far more money — potentially $25 million — to keep things on schedule.

In addition to a dizzying array of technical changes, the new bill gives the state more time to create an online system to better monitor and track political spending and giving. It would move the start date from 2028 to 2032.

The bill maintains the original plan of capping political donations by businesses, political committees, interest groups, labor unions and other citizens by 2027.

“If our goal is to strengthen trust in democracy, we cannot afford a rollout that undermines confidence in government’s ability to deliver,” Oregon Secretary of State Tobias Read said in testimony supporting the bill on Tuesday.

“Oregonians deserve campaign finance reform that works, not just on paper, but in practice,” said Read. “They deserve a system that ends unlimited contributions. HB 4018 is a step closer to achieving that goal by preserving the key contribution limits promised to Oregonians while providing a realistic runway for the state to resolve the more complex reporting and transparency issues.”

House Speaker Julie Fahey, who proposed the bill, believes it “addresses the most urgent needs of our campaign finance system,” a spokesperson for the Lane County Democrat said. For the tracking system, the bill “will give the Secretary of State the time needed to build it carefully, test it thoroughly, and roll it out without risking problems in the middle of a major election.”

The bill has the backing of labor groups such as the Oregon Nurses Association, Oregon AFSCME, Oregon AFL-CIO and the Oregon Restaurant & Lodging Association. Republican leaders have yet to chime in.

“Oregon is fighting hard for a transparent, robust, and intact democracy against a challenging national landscape from federal threats and corporate power. Fair elections are the foundation of this,” said Harper Haverkamp, of the American Federation of Teachers — Oregon. “The upcoming rollout of recently passed campaign finance reforms is something for us to look forward to — but the rollout must be done right.”

Campaign finance advocates offered a withering view of the proposal on Tuesday, saying they were excluded from discussions around crafting the bill and calling on lawmakers to reject the bill. In written testimony, one of them urged lawmakers to “Stop kicking the can down the road.”

The bill “massively changes [the 2024 bill] to come very close to making the contribution limits and disclosure requirements illusory,” Dan Meek, a Portland attorney and campaign finance reform advocate, said in Tuesday’s public hearing.

Among other things, he added, the bill would delay disclosure requirements by three years. It would also only restrict a group’s contribution to a campaign if the Secretary of State’s office determined that a single person had created them with the intent of evading limits, “which will be very difficult to prove,” he noted.

“This is another stealth attempt by legislative leadership and the big campaign contributors to do an end run around on campaign finance reform, before it’s set to be implemented,” Kate Titus, the executive director of Common Cause Oregon, said in a statement to OPB Tuesday.

The bill is scheduled for another public hearing on Thursday.