Oregon's House Bill 3646 is making waves in the state legislature by proposing a significant shift in public procurement practices. Introduced on February 21, 2025, the bill aims to give preference to businesses owned by their employees when state agencies procure goods and services. This initiative seeks to bolster employee ownership models, allowing entities where employees hold at least 50% ownership—either directly or through employee stock ownership plans—to compete for public contracts.

The bill's key provision allows contracting agencies to prioritize these employee-owned businesses, provided their goods or services do not exceed a 5% cost difference compared to competitors. This move is seen as a way to promote local economies and support businesses that prioritize their workforce's stake in the company.

Supporters of the bill argue that it could lead to more equitable economic opportunities and foster a sense of community investment among employees. "This is about empowering workers and ensuring they have a stake in the success of their companies," said Representative Tran, one of the bill's sponsors.

However, the bill has not been without its critics. Opponents express concerns that the preference could limit competition and potentially increase costs for taxpayers. They argue that while the intention is noble, the practical implications could lead to inefficiencies in public spending.

As the bill progresses through the legislative process, its implications could resonate beyond Oregon. If successful, it may set a precedent for other states to consider similar measures, potentially reshaping the landscape of public procurement nationwide. The bill is set to take effect 91 days after the legislature adjourns, marking a pivotal moment for employee-owned businesses in Oregon.