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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
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)
CHAPTER .................................................
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, “Oregon small business enterprise” means a
business to which the Oregon Business Development Department issues a certification under
subsection (2) of this section.
(2) The Oregon Business Development Department by rule shall specify eligibility criteria
for certifying a business as an Oregon small business enterprise and shall issue a certif-
ication to a business that qualifies as eligible. The eligibility criteria must, at a minimum,
specify:
(a) The maximum number of persons the business may employ;
(b) The maximum amount of revenue the business may generate;
(c) The location in which the business may operate;
(d) Other requirements that evaluate the operation of the business as a small business;
and
(e) Other criteria that the department determines will aid in establishing eligibility.
(3) The Oregon Department of Administrative Services shall establish a program for
granting preferences to Oregon small business enterprises in procurements the department
conducts under ORS 279A.140. The program, at a minimum, shall:
(a) Develop guidelines for the department and for all state agencies on behalf of which
the department conducts procurements to use to identify a range of public contracts that
would be suitable for an Oregon small business enterprise to undertake successfully;
(b) Create effective strategies and methods for attracting, inviting, encouraging and en-
abling Oregon small business enterprises to participate in public procurement;
(c) Suggest changes in statutes and administrative rules that would enable the depart-
ment to implement effective preferences for Oregon small business enterprises 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, for participation by Oregon small business enterprises in public procure-
ment, targets and goals that result in a reduction or elimination of disparities identified in
the 2023 State of Oregon Disparity Study.
(4) As part of the program described in subsection (3) of this section, the department
may:
Enrolled House Bill 2337 (HB 2337-B) Page 1
(a) Conduct studies, develop models, issue requests for information, contact and inter-
view or survey potential participants in a preferences program for Oregon small business
enterprises, consult experts and otherwise use lawful means to carry out the purposes set
forth in subsection (3) of this section; and
(b) State in solicitation materials for procurements the department conducts that the
department will consider bids or proposals solely from Oregon small business enterprises.
(5) The department may adopt rules necessary to implement and administer the program
described in subsection (3) of this section.
(6)(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 (3) of this
section, with examples of categories of public contracts the department identifies as suitable
for Oregon small business enterprises and the range of contract values and scopes of work
the department considers appropriate for Oregon small business enterprises to undertake;
(B) The number of public contracts the department awarded to Oregon small business
enterprises during the previous calendar year;
(C) The number of Oregon small business enterprises to which the department provides
assistance under the program;
(D) The type and size of the small businesses that participate in the Oregon small busi-
ness enterprise 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 (7) 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.
(7) 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
(3) and (4) of this section.
SECTION 2.
Section 1 of this 2025 Act is repealed on December 31, 2031.
SECTION 3. The limitation on expenditures established by section 11 (2), chapter
, Oregon Laws 2025 (Enrolled House Bill 5024), for the biennium beginning July 1,
2025, as the maximum limit for payment of expenses from lottery moneys allocated from the
Administrative Services Economic Development Fund to the Oregon Business Development
Department for business, innovation and trade, is increased by $233,373, for establishment
of a small business certification program.
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.
Enrolled House Bill 2337 (HB 2337-B) Page 2
Passed by House June 23, 2025
..................................................................................
Timothy G. Sekerak, Chief Clerk of House
..................................................................................
Julie Fahey, Speaker of House
Passed by Senate June 24, 2025
..................................................................................
Rob Wagner, President of Senate
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled House Bill 2337 (HB 2337-B) Page 3