1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2848
Sponsored by Representative EVANS (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: Tells not for profit companies that get public money to obey open meetings and public
records laws. Tells the companies that they must post a copy of the budget they expect to adopt on
their websites. Tells the companies that they must agree to and cooperate with audits. Says that the
company’s directors, officers and employees must comply with government ethics standards. Takes
effect on passage. (Flesch Readability Score: 60.1).
Requires nonprofit corporations that meet certain requirements, including a receipt of public
funds, to comply with open meetings law and public records law, to post a copy of the corporation’s
proposed annual budget to the corporation’s public website and to submit to and cooperate with an
audit. Subjects members of a corporation’s board of directors and officers and employees of a cor-
poration to government ethics standards.
Applies the provisions of the Act to corporations over a 15-year period, with required compli-
ance during the period depending on the proportion of the budget or revenues of the corporation
that comes from public funds.
Declares an emergency, effective on passage.
A BILL FOR AN ACT
Relating to nonprofit corporations that receive public funds; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS chapter 65.
SECTION 2.(1) As used in this section:
(a) “Public body” has the meaning given that term in ORS 174.109.
(b) “Public funds” means funds that a public body, an officer or employee of this state
or of a political subdivision or municipal corporation of this state has custody of or controls
by law or by virtue of the officer’s or employee’s office.
(2) A corporation that engages in business in this state is subject to the requirements
of subsection (3) of this section if the corporation:
(a) Has gross annual revenues of more than $100,000 or has 25 or more full-time or
part-timeemployees;
(b) Receives public funds in an amount that comprises 75 percent or more of the
corporation’s revenues or budget, or receives a public benefit in the form of a tax credit or
tax deduction that is available only to a corporation organized under this chapter; and
(c)(A) Performs a governmental function by means of a contract or another written del-
egation of a governmental function; or
(B) Sets or implements a policy that controls or influences an expenditure, disbursement
or distribution of public funds or that designates a recipient of public funds.
(3)(a) A corporation described in subsection (2) of this section shall:
(A) Hold meetings of the corporation’s board of directors in accordance with ORS 192.610
to 192.705.
(B) Post a copy of the corporation’s proposed annual budget on the corporation’s public
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 3141 HB2848
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
website at least 30 days before the corporation takes action to adopt the budget. The budget
must identify the source of any public funds in the budget and the expenditures the corpo-
ration proposes to make from the public funds.
(C) Submit to and cooperate with audits of the corporation’s finances conducted by the
Secretary of State or the public body that provided the corporation with public funds or by
designees of the Secretary of State or the public body.
(D) Make records that the corporation keeps under ORS 65.771 available in accordance
with ORS 192.311 to 192.478, except that the corporation may redact from a record informa-
tion that personally identifies a member or employee of the corporation, other than by first
and last name, before disclosing the record.
(b) A member of the board of directors of a corporation described in subsection (2) of this
section, or an officer or employee of the corporation, in addition to and not in lieu of pro-
visions in this chapter that govern the board member’s, officer’s or employee’s conduct with
respect to the corporation, including but not limited to ORS 65.357, 65.361, 65.364, 65.367,
65.369 and 65.377, is subject to the provisions of ORS chapter 244. To the extent that a con-
flict exists between a provision of ORS chapter 65 identified in this paragraph and a provision
of ORS chapter 244, the provisions of ORS chapter 65 identified in this paragraph control.
(4) A public body that provides a corporation with public funds or a public benefit de-
scribed in subsection (2)(b) of this section shall monitor the corporation’s compliance with
subsection (3) of this section. The public body may designate or enter into an agreement with
another public body to carry out the public body’s responsibilities under this subsection.
(5)(a) A corporation described in subsection (2) of this section that does not comply with
the provisions of subsection (3) of this section, at the discretion of the public body that
provided the corporation with public funds or a public benefit described in subsection (2)(b)
of this section, is subject to:
(A) A demand for repayment of the public funds or the equivalent value of a public ben-
efit described in subsection (2)(b) of this section that the corporation received from the
public body; and
(B) A denial of public funds or a public benefit described in subsection (2)(b) of this sec-
tion for a period of 10 years.
(b) A public body that provides a corporation with public funds or a public benefit de-
scribed in subsection (2)(b) of this section may enter into an assurance of voluntary compli-
ance with the corporation before imposing a sanction described in paragraph (a) of this
subsection.
(c) The Secretary of State shall, under ORS 65.647, administratively dissolve a corpo-
ration that shows a pattern of repeated violations of subsection (3) of this section or that
fails to comply with the terms of an assurance of voluntary compliance that a public body
negotiates with the corporation.
(d) A member of the board of directors or an officer of a corporation that the Secretary
of State administratively dissolves under paragraph (c) of this subsection may not serve as
a member of the board of directors or an officer of another corporation for a period of not
less than 10 years. The Secretary of State by rule shall specify procedures for enforcing the
provision described in this paragraph.
SECTION 3. Section 2 of this 2025 Act is amended to read:
(1) As used in this section:
[2] HB2848
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
(a) “Public body” has the meaning given that term in ORS 174.109.
(b) “Public funds” means funds that a public body, an officer or employee of this state or of a
political subdivision or municipal corporation of this state has custody of or controls by law or by
virtue of the officer’s or employee’s office.
(2) A corporation that engages in business in this state is subject to the requirements of sub-
section (3) of this section if the corporation:
(a) Has gross annual revenues of more than $100,000 or has 25 or more full-time or part-time
employees;
(b) Receives public funds in an amount that comprises [ 75] 50 percent or more of the
corporation’s revenues or budget, or receives a public benefit in the form of a tax credit or tax de-
duction that is available only to a corporation organized under this chapter; and
(c)(A) Performs a governmental function by means of a contract or another written delegation
of a governmental function; or
(B) Sets or implements a policy that controls or influences an expenditure, disbursement or
distribution of public funds or that designates a recipient of public funds.
(3)(a) A corporation described in subsection (2) of this section shall:
(A) Hold meetings of the corporation’s board of directors in accordance with ORS 192.610 to
192.705.
(B) Post a copy of the corporation’s proposed annual budget on the corporation’s public website
at least 30 days before the corporation takes action to adopt the budget. The budget must identify
the source of any public funds in the budget and the expenditures the corporation proposes to make
from the public funds.
(C) Submit to and cooperate with audits of the corporation’s finances conducted by the Secre-
tary of State or the public body that provided the corporation with public funds or by designees of
the Secretary of State or the public body.
(D) Make records that the corporation keeps under ORS 65.771 available in accordance with
ORS 192.311 to 192.478, except that the corporation may redact from a record information that
personally identifies a member or employee of the corporation, other than by first and last name,
before disclosing the record.
(b) A member of the board of directors of a corporation described in subsection (2) of this sec-
tion, or an officer or employee of the corporation, in addition to and not in lieu of provisions in this
chapter that govern the board member’s, officer’s or employee’s conduct with respect to the corpo-
ration, including but not limited to ORS 65.357, 65.361, 65.364, 65.367, 65.369 and 65.377, is subject
to the provisions of ORS chapter 244. To the extent that a conflict exists between a provision of
ORS chapter 65 identified in this paragraph and a provision of ORS chapter 244, the provisions of
ORS chapter 65 identified in this paragraph control.
(4) A public body that provides a corporation with public funds or a public benefit described in
subsection (2)(b) of this section shall monitor the corporation’s compliance with subsection (3) of this
section. The public body may designate or enter into an agreement with another public body to
carry out the public body’s responsibilities under this subsection.
(5)(a) A corporation described in subsection (2) of this section that does not comply with the
provisions of subsection (3) of this section, at the discretion of the public body that provided the
corporation with public funds or a public benefit described in subsection (2)(b) of this section, is
subjectto:
(A) A demand for repayment of the public funds or the equivalent value of a public benefit de-
[3] HB2848
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
scribed in subsection (2)(b) of this section that the corporation received from the public body; and
(B) A denial of public funds or a public benefit described in subsection (2)(b) of this section for
a period of 10 years.
(b) A public body that provides a corporation with public funds or a public benefit described in
subsection (2)(b) of this section may enter into an assurance of voluntary compliance with the cor-
poration before imposing a sanction described in paragraph (a) of this subsection.
(c) The Secretary of State shall, under ORS 65.647, administratively dissolve a corporation that
shows a pattern of repeated violations of subsection (3) of this section or that fails to comply with
the terms of an assurance of voluntary compliance that a public body negotiates with the corpo-
ration.
(d) A member of the board of directors or an officer of a corporation that the Secretary of State
administratively dissolves under paragraph (c) of this subsection may not serve as a member of the
board of directors or an officer of another corporation for a period of not less than 10 years. The
Secretary of State by rule shall specify procedures for enforcing the provision described in this
paragraph.
SECTION 4. Section 2 of this 2025 Act, as amended by section 3 of this 2025 Act, is amended
to read:
(1) As used in this section:
(a) “Public body” has the meaning given that term in ORS 174.109.
(b) “Public funds” means funds that a public body, an officer or employee of this state or of a
political subdivision or municipal corporation of this state has custody of or controls by law or by
virtue of the officer’s or employee’s office.
(2)(a) Except as provided in paragraph (b) of this subsection, a corporation that engages in
business in this state is subject to the requirements of subsection (3) of this section if the corpo-
ration:
[(a)] (A) Has gross annual revenues of more than $100,000 or has 25 or more full-time or part-
time employees;
[(b)] (B) Receives public funds in an amount that comprises [50] 25 percent or more of the
corporation’s revenues or budget, or receives a public benefit in the form of a tax credit or tax de-
duction that is available only to a corporation organized under this chapter; and
[(c)(A)] (C)(i) Performs a governmental function by means of a contract or another written del-
egation of a governmental function; or
[(B)] (ii) Sets or implements a policy that controls or influences an expenditure, disbursement
or distribution of public funds or that designates a recipient of public funds.
(b) A corporation that receives public funds that comprise less than 25 percent of the
corporation’s revenues or budget may submit a statement to the Secretary of State asking
for an exemption from the requirements set forth in subsection (3) of this section. The Sec-
retary of State, after determining that the corporation qualifies for an exemption under this
paragraph, may approve the exemption and may issue a certificate of exemption to the cor-
poration. The certificate is prima facie evidence of the corporation’s exemption from the
requirements of subsection (3) of this section in any action or proceeding to enforce this
section.
(3)(a) A corporation described in subsection (2)(a) of this section shall:
(A) Hold meetings of the corporation’s board of directors in accordance with ORS 192.610 to
192.705.
[4] HB2848
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
(B) Post a copy of the corporation’s proposed annual budget on the corporation’s public website
at least 30 days before the corporation takes action to adopt the budget. The budget must identify
the source of any public funds in the budget and the expenditures the corporation proposes to make
from the public funds.
(C) Submit to and cooperate with audits of the corporation’s finances conducted by the Secre-
tary of State or the public body that provided the corporation with public funds or by designees of
the Secretary of State or the public body.
(D) Make records that the corporation keeps under ORS 65.771 available in accordance with
ORS 192.311 to 192.478, except that the corporation may redact from a record information that
personally identifies a member or employee of the corporation, other than by first and last name,
before disclosing the record.
(b) A member of the board of directors of a corporation described in subsection (2)(a) of this
section, or an officer or employee of the corporation, in addition to and not in lieu of provisions in
this chapter that govern the board member’s, officer’s or employee’s conduct with respect to the
corporation, including but not limited to ORS 65.357, 65.361, 65.364, 65.367, 65.369 and 65.377, is
subject to the provisions of ORS chapter 244. To the extent that a conflict exists between a pro-
vision of ORS chapter 65 identified in this paragraph and a provision of ORS chapter 244, the pro-
visions of ORS chapter 65 identified in this paragraph control.
(4) A public body that provides a corporation with public funds or a public benefit described in
subsection [(2)(b)] (2)(a)(B) of this section shall monitor the corporation’s compliance with sub-
section (3) of this section. The public body may designate or enter into an agreement with another
public body to carry out the public body’s responsibilities under this subsection.
(5)(a) A corporation described in subsection (2)(a) of this section that does not comply with the
provisions of subsection (3) of this section, at the discretion of the public body that provided the
corporation with public funds or a public benefit described in subsection [(2)(b)] (2)(a)(B) of this
section, is subject to:
(A) A demand for repayment of the public funds or the equivalent value of a public benefit de-
scribed in subsection [(2)(b)] (2)(a)(B) of this section that the corporation received from the public
body; and
(B) A denial of public funds or a public benefit described in subsection [(2)(b)] (2)(a)(B) of this
section for a period of 10 years.
(b) A public body that provides a corporation with public funds or a public benefit described in
subsection [(2)(b)] (2)(a)(B) of this section may enter into an assurance of voluntary compliance with
the corporation before imposing a sanction described in paragraph (a) of this subsection.
(c) The Secretary of State shall, under ORS 65.647, administratively dissolve a corporation that
shows a pattern of repeated violations of subsection (3) of this section or that fails to comply with
the terms of an assurance of voluntary compliance that a public body negotiates with the corpo-
ration.
(d) A member of the board of directors or an officer of a corporation that the Secretary of State
administratively dissolves under paragraph (c) of this subsection may not serve as a member of the
board of directors or an officer of another corporation for a period of not less than 10 years. The
Secretary of State by rule shall specify procedures for enforcing the provision described in this
paragraph.
SECTION 5. (1) Section 2 of this 2025 Act becomes operative January 1, 2026.
(2) The amendments to section 2 of this 2025 Act by section 3 of this 2025 Act become
[5] HB2848
1
2
3
4
5
6
7
8
9
10
11
12
13
14
operative on July 1, 2032.
(3) The amendments to section 2 of this 2025 Act by section 4 of this 2025 Act become
operative on January 1, 2041.
(4) The Secretary of State and a public body that provides public funds or a public benefit
described in section 2 (2)(b) of this 2025 Act may adopt, as appropriate, rules, resolutions or
ordinances before the operative date specified in subsection (1) of this section that are nec-
essary to enable the Secretary of State or the public body to undertake and exercise, on and
after the operative date specified in subsection (1) of this section, all of the duties, functions
and powers conferred on the Secretary of State or the public body by section 2 of this 2025
Act.
SECTION 6. This 2025 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2025 Act takes effect
on its passage.
[6]