OR HB3646

Oregon contracting agencies may give procurement preference to employee-owned businesses where employees own at least 50% of the entity directly or through an IRS-qualified employee stock ownership plan (ESOP)

Employee-owned businesses qualify for the preference if their goods or services cost no more than 5% above other available contractors, matching the existing preference for Oregon benefit companies

Bidding employee-owned entities must submit evidence proving at least 50% employee ownership to qualify for the preference

The amendments become operative on January 1, 2026, and apply to procurements advertised or solicited on or after the effective date

The bill takes effect on the 91st day after the 2025 regular legislative session adjourns sine die