Employee Ownership Blog

Oregon Bill Would Give ESOPs Public Procurement Preference

Written by Timothy Garbinsky | May 9, 2025 11:30:05 PM

A new bill in the Oregon state legislature would give employee-owned businesses a purchasing preference for public contracting. HB 3646, which is sponsored by Representative Thủy Trần (D), alongside Representatives Andersen (D), Marsh (D) and Neron (D), and Senators Patterson (D), Sollman (D), and Weber (R), adds entities in which employees own at least 50% of the business (either directly or through an ESOP) to the list of preferred sources for public contracts, allowing them to receive the same preference currently given to benefit companies. This permits state agencies to select their bids even if they cost up to 5% more than the lowest bid from a non-preferred business. A work session for the bill is currently on the agenda of the May 13 meeting of the Oregon Senate Committee on Labor and Business.