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 2337
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of Governor Tina Kotek for
Oregon Department of Administrative Services)
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 a state agency to set up an effort to help small businesses compete for public
contracts and says what the effort must do. Tells the agency to report the results of the effort to
lawmakers. Tells the agency to plan for how to respond to the state’s 2023 disparity study. (Flesch
Readability Score:60.7).
Directs the Oregon Department of Administrative Services to establish a small business prefer-
ences program for state procurement. Specifies minimum requirements for the program and powers
that the department has to implement the program. Requires the department to report to the Gov-
ernor and the Legislative Assembly on the implementation of the program. Requires the department
to plan for and implement a response to the recommendations of the state’s 2023 disparity study with
respect to public procurement.
Sunsets the program on December 31, 2031.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to preferences for small businesses in public procurement; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) As used in this section, “small business” means a business that:
(a) Has registered with the United States Small Business Administration, or a successor
agency, as a small disadvantaged business;
(b) Is certified under ORS 200.055 as an emerging small business; or
(c) Meets other criteria that the Oregon Department of Administrative Services specifies
by rule.
(2) The department shall establish a program for granting preferences to small busi-
nesses in procurements the department conducts under ORS 279A.140. The program, at a
minimum,shall:
(a) Develop guidelines for the department and all state agencies on behalf of which the
department conducts procurements to identify a range of public contracts that would be
suitable for a small business to undertake successfully;
(b) Create effective strategies and methods for attracting, inviting, encouraging and en-
abling small businesses to participate in public procurement;
(c) Suggest changes in statutes and administrative rules that would enable the depart-
ment to implement effective preferences for small businesses in public procurement and that
would harmonize, streamline and otherwise improve the various small business preferences
programs that now exist within state public procurement; and
(d) Establish targets and goals for small business participation in public procurement
that would reduce or eliminate disparities identified in the 2023 State of Oregon Disparity
Study.
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 279 HB2337
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
(3) As part of the program described in subsection (2) of this section, the department
may:
(a) Conduct studies, develop models, issue requests for information, contact and inter-
view or survey potential participants in a small business preferences program, consult ex-
perts and otherwise use lawful means to carry out the purposes set forth in subsection (2)
of this section; and
(b) State in solicitation materials for procurements that the department conducts that
the department will consider bids or proposals solely from small businesses.
(4) The department may adopt rules necessary to implement and administer the program
described in subsection (2) of this section.
(5)(a) No later than December 31 of each year, the department shall report to the Gov-
ernor and, in the manner provided in ORS 192.245, to the Legislative Assembly:
(A) The substance of the guidelines the department develops under subsection (2)(a) of
this section, with examples of categories of public contracts the department identifies as
suitable for small businesses and the range of contract values and scopes of work that the
department considers appropriate for small businesses to undertake;
(B) The number of public contracts the department awarded to small businesses during
the previous calendar year;
(C) The number of small businesses to which the department provides assistance under
theprogram;
(D) The type and size of the small businesses that participate in the program;
(E) The aggregated value of public contracts the department awarded that had a con-
nection to the program during the previous calendar year;
(F) Progress in developing the plan described in subsection (6) of this section; and
(G) Such other information about the program that the department deems relevant to
report.
(b) The department shall collect and compile data necessary to prepare and submit the
report described in this subsection.
(6) The department shall devise and implement a plan based on the recommendations
from the 2023 State of Oregon Disparity Study. To the extent feasible, the department shall
incorporate into the plan the results and findings of studies, models, expert opinion, contacts
with potential participants and other methods available to the department under subsections
(2) and (3) of this section.
SECTION 2. Section 1 of this 2025 Act is repealed on December 31, 2031.
SECTION 3.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
[2]