HB 3672
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.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill allows state contracting agencies to give a preference in awarding public improvement contracts. This preference can be given to benefit companies incorporated in Oregon with a majority of their employees based in the state, or to contractors who fabricate or process construction materials within Oregon. The preference is limited to situations where the increased cost of materials does not exceed a specified percentage – 5% for benefit companies and 10% for in-state fabrication/processing.
Key provisions
- Allows preference for benefit companies with a majority of Oregon-based employees.
- Allows preference for contractors fabricating or processing materials in Oregon.
- Preference applies if the cost increase does not exceed 5% for benefit companies.
- Preference applies if the cost increase does not exceed 10% for in-state fabrication/processing.
- Contracting agencies can set higher percentage thresholds with justification.
- Excludes emergency work, minor repairs, and certain contracts defined in ORS 279C.320.
- Takes effect on January 1, 2026.
Who is affected
- State contracting agencies
- Benefit companies
- Construction contractors
- Oregon businesses involved in construction material fabrication/processing
- The public (through public improvement projects)
Notable changes
- Introduces a preference system for benefit companies and in-state material producers.
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