The Oregon State Legislature's Joint Committee on Ways and Means Subcommittee on General Government convened on March 18, 2025, to discuss critical updates regarding the agency's licensing system and the proposed fee increases aimed at stabilizing revenue and modernizing outdated technology.

A significant focus of the meeting was the urgent need to replace a licensing system that has been in use for over 30 years. The current system, developed in-house during the 1990s, is at risk of failure and hampers the agency's efficiency. Officials emphasized that maintaining existing service levels, rather than expanding staff, is the primary goal of the proposed fee increase. The last fee adjustment occurred in 2010, and since then, operational costs have risen by more than 55%, despite a reduction in staffing.

The committee discussed the implications of the fee increase, which will raise the two-year license fee for contractors from $325 to $400. This adjustment is intended to ensure that the agency can continue to provide essential services without compromising quality. The fee increase will be implemented in a tiered manner, with new applicants facing the new fee starting July 2025, while current renewals will see the increase effective immediately.

Concerns were raised about the potential consequences of deferring maintenance and modernization efforts, with committee members stressing the importance of proactive measures to avoid system failures. The agency's leadership reiterated their commitment to setting aside reserves to support the licensing system replacement, which they described as "existential" for the agency's future operations.

In addition to the fee increase, discussions included the possibility of establishing a more predictable fee structure that could allow for gradual increases over time, rather than waiting for long periods between adjustments. This approach aims to provide stability for both the agency and the contractors it serves.

As the meeting concluded, the committee underscored the importance of addressing these financial and operational challenges to ensure the agency can effectively meet the needs of Oregon's contractors and the broader community. The proposed fee increase and modernization efforts are seen as vital steps toward achieving long-term sustainability and efficiency in state operations.