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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3672
Sponsored by Representative EDWARDS
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: 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.
A BILL FOR AN ACT
Relating to public improvement contract preferences for construction materials sourced in this state;
creating new provisions; amending ORS 279A.128; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 279A.128 is amended to read:
279A.128. (1) As used in this section[,]:
(a) “Construction materials” means manufactured products, consumable supplies, raw
materials and other goods that:
(A) Are used in constructing, reconstructing, or performing a major renovation upon, a
public improvement; or
(B) Become part of a public improvement upon completion of construction, recon-
struction or a major renovation.
(b) “Services” means services as defined in ORS 279A.010 (1)(kk) and personal services desig-
nated under ORS 279A.055.
(2)(a) Notwithstanding provisions of law requiring a contracting agency to award a contract to
the lowest responsible bidder or best proposer or provider of a quotation, a contracting agency that
uses public funds to procure goods or services for a public use under ORS chapter 279B, or procure
construction materials for a public improvement under ORS chapter 279C, may give preference
to:
(A) Procuring goods, [or] services or construction materials provided by a benefit company
that is incorporated, organized, formed or created under ORS 60.754, that submits with a bid or
proposal a certificate of existence issued under ORS 60.027 and has the majority of the benefit
company’s regular, full-time workforce located in this state at the time the benefit company submits
the bid or proposal, if the goods, [or] services or construction materials cost not more than five
percent more than goods, [or] services or construction materials available from a contractor that
is not a benefit company; or
(B) Procuring goods or construction materials that are fabricated or processed, or services
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 4378 HB3672
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that are performed, entirely within this state if the goods, [or] services or construction materials
cost not more than 10 percent more than goods or construction materials that are not fabricated
or processed, or services that are not performed, entirely within this state.
(b) If more than one bidder or proposer qualifies for a preference described in paragraph (a) of
this subsection, the contracting agency may give a further preference to a qualifying bidder or
proposer that resides in or is headquartered in this state.
(c) The contracting agency by order may set a higher percentage than the percentages set forth
in paragraph (a) of this subsection if the contracting agency, in a written determination to support
the order, finds good cause to set the higher percentage and explains the contracting agency’s rea-
sons and evidence for the finding.
(3) Notwithstanding ORS 279C.320 (1), subsection (2) of this section does not apply to emergency
work, minor alterations, ordinary repairs or maintenance work for public improvements or to
[other] construction contracts [described in ORS 279C.320 (1)] other than public improvement
contracts.
SECTION 2. The amendments to ORS 279A.128 by section 1 of this 2025 Act apply to
procurements that a contracting agency first advertises or otherwise solicits or, if a con-
tracting agency does not advertise or solicit the procurement, to public improvement con-
tracts into which a contracting agency enters on or after the operative date specified in
section 3 of this section.
SECTION 3.(1) The amendments to ORS 279A.128 by section 1 of this 2025 Act become
operative on January 1, 2026.
(2) The Attorney General, the Director of the Oregon Department of Administrative
Services, the Director of Transportation and a contracting agency that adopts rules under
ORS 279A.065 or 279A.070 may adopt rules and take any other action before the operative
date specified in subsection (1) of this section that is necessary to enable the Attorney
General, the directors or the contracting agency, on and after the operative date specified
in subsection (1) of this section, to undertake and exercise all of the duties, functions and
powers conferred on the Attorney General, the directors or the contracting agency by the
amendments to ORS 279A.128 by section 1 of this 2025 Act.
SECTION 4.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]