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Bill > HB3672


OR HB3672

Relating to public improvement contract preferences for construction materials sourced in this state; prescribing an effective date.


summary

Introduced
02/25/2025
In Committee
02/27/2025
Crossed Over
Passed
Dead

Introduced Session

2025 Legislative Measures

Bill Summary

The statement includes a measure digest written in compliance with applicable readability standards. Digest: Lets a state agency prefer a bid for a contract to build a public building from a person that makes the material for the building in this state. (Flesch Readability Score: 60.5). Permits contracting agencies to grant a preference in awarding a public improvement contract to a benefit company organized in this state and with a majority of the benefit company’s employees located in this state, or to prospective contractors that fabricate or process construction materials in this state, if the increase in the cost of the construction materials does not exceed a specified percentage. Takes effect on the 91st day following adjournment sine die.

AI Summary

This bill modifies Oregon's public contracting law to expand preferences for locally sourced construction materials and benefit companies. Specifically, the bill defines "construction materials" as manufactured products and raw materials used in public improvement projects, and allows state contracting agencies to give preference to bids from benefit companies (companies incorporated in Oregon with a majority of employees in-state) or companies that fabricate construction materials within Oregon. The preferences are structured as price tolerances: agencies can choose a bid that is up to 5% more expensive from a benefit company, or up to 10% more expensive from a company that processes materials entirely within Oregon. If multiple bidders qualify for these preferences, agencies can further prioritize bidders headquartered in Oregon. The bill also provides that these new procurement rules will become operative on January 1, 2026, giving state agencies time to prepare and adopt necessary rules. The legislation aims to support local businesses and manufacturing by providing a modest financial incentive for state agencies to choose in-state contractors and materials when possible, without mandating local sourcing.

Committee Categories

Labor and Employment

Sponsors (1)

Last Action

Referred to Labor and Workplace Standards. (on 02/27/2025)

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