Bill > HB2869

This bill modifies Oregon Revised Statute 332.075 to establish new requirements for school district public contracts and their financial management. Specifically, the bill introduces a mandatory retainage provision for public contracts related to services required by state or federal law, requiring school districts to withhold a percentage of the contract price until the contractor fully completes their performance. The bill defines "retainage" as the difference between the total contract amount and the amount actually paid during the contract term, and mandates that school districts must disclose this withholding practice in their procurement documents. Additionally, the bill clarifies existing provisions about contract approval, specifying that while school board approval is generally required for contracts, superintendents may be authorized to enter into and approve payments for certain types of contracts within approved budget appropriations. The new retainage requirements will apply to contracts entered into on or after the effective date of the 2025 Act, ensuring transparency and financial protection for school districts when procuring services mandated by law.

Education

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2869