Oregon House Bill 3572: A Purchasing Preference for Benefit Companies
Oregon House Bill 3572 (2023) lets public agencies give a purchasing preference to Oregon benefit companies. An agency may prefer a benefit company when its price is no more than 5% above a non-benefit bidder, and when most of its regular, full-time workforce is in Oregon. The law has been operative since January 1, 2024.
HB 3572 at a glance
| What it is | A 2023 Oregon law (chapter 559) that amends ORS 279A.128 |
|---|---|
| What it does | Lets a public agency prefer a benefit company when buying goods or services |
| Which purchases | Goods and services bought with public funds for public use under ORS chapter 279B |
| Size of the preference | The benefit company’s price may be up to 5% above a non-benefit contractor’s |
| Who qualifies | A benefit company formed under ORS 60.754, with most of its regular, full-time workforce in Oregon |
| What to submit | A certificate of existence (ORS 60.027) with the bid or proposal |
| Operative date | January 1, 2024 |
| Required or optional | Optional. The law says an agency “may” give the preference |
What the law lets agencies do
Oregon public agencies normally award contracts to the lowest responsible bidder. HB 3572 creates an exception. An agency that buys goods or services for public use under ORS chapter 279B may choose to prefer a benefit company, even when its price is not the lowest, within the limits below.
Who qualifies for the preference
A bidder qualifies when it meets all four conditions:
It is an Oregon benefit company. The law defines a benefit company as one formed under ORS 60.754.
It submits a certificate of existence. The company must include a certificate of existence under ORS 60.027 with its bid or proposal.
Its workforce is mostly in Oregon. Most of its regular, full-time workforce must be located in Oregon when it submits the bid or proposal.
Its price is within 5%. Its goods or services must cost no more than 5% above those of a contractor that is not a benefit company.
A worked example
This is an illustration, not a real bid. An agency is buying a service. A non-benefit contractor bids $100,000, so the limit for the preference is $105,000.
A qualifying benefit company bids $104,000. It is within the limit, so the agency may prefer it.
A qualifying benefit company bids $106,000. It is above the limit, so the preference does not apply.
Even when a bidder is within the limit, the preference is the agency’s choice.
What the law does not do
It does not require agencies to prefer benefit companies. Each agency decides whether to use the preference.
It does not cover every kind of purchase. The preference does not apply to emergency work, minor alterations, ordinary repairs or maintenance for public improvements, or other construction contracts described in ORS 279C.320(1).
It does not require certification. The preference turns on benefit company status. Certification is not a condition of the law.
It does not reach private buyers. It applies to public agencies buying with public funds.
How it connects to Oregon’s in-state preference
HB 3572 amends the same section of law that already allows a preference for goods made, and services performed, entirely in Oregon. That preference applies when the cost is no more than 10% above goods or services not made or performed entirely in Oregon.
Two more rules from the same section matter to bidders:
If more than one bidder qualifies, the agency may further prefer one that resides in or is headquartered in Oregon.
An agency may set a higher percentage by order, but only with a written determination of good cause that explains its reasons and evidence.
How to prepare to bid
Confirm your status. Check that your company appears on the Oregon Secretary of State’s list of benefit companies, and that your articles meet ORS 60.754.
Get your certificate of existence. Order it from the Secretary of State so you can include it with each bid or proposal.
Check your workforce. Count your regular, full-time workforce at the time you bid. Most of it must be in Oregon.
Read each solicitation. Agencies set their own procurement rules. Look for how the agency says it applies the preference, and ask the contracting officer if it is not clear.
Be ready to show your benefit report. Publish your annual benefit report on your website. A buyer who is weighing your claims can see them there.
Where certification fits
The law rewards benefit company status. It does not ask who has checked that status. That is where independent certification helps. A benefit company’s annual report is self-reported, and no one audits it. A certification from a third party such as Benefit Corporations for Good gives a public buyer, and the buyer’s other stakeholders, evidence that the claims are real.
BCFG has certified more than 100 businesses in 13 states and one Canadian province. Tom Hering, BCFG’s co-founder, helped pass HB 3572.
Frequently asked questions
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HB 3572 is a 2023 Oregon law that lets public agencies give a purchasing preference to benefit companies. It amends ORS 279A.128 and has been operative since January 1, 2024.
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Your business qualifies if it is a benefit company formed under ORS 60.754, it submits a certificate of existence with its bid, most of its regular, full-time workforce is in Oregon when it bids, and its price is no more than 5% above a non-benefit contractor’s.
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No. The law says an agency may give the preference. Each agency decides whether and how to use it.
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No. The law turns on benefit company status, not certification. Certification adds independent evidence behind that status.
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It covers goods and services that an agency buys with public funds for public use under ORS chapter 279B. It does not apply to emergency work, minor alterations, ordinary repairs or maintenance for public improvements, or other construction contracts described in ORS 279C.320(1).
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Yes. The same section lets an agency prefer goods made, or services performed, entirely in Oregon when the cost is no more than 10% above goods or services that are not.
Sources
Related guides
I'm Already an Oregon Benefit Company — Learn your next steps once your Oregon benefit company is registered.
How to Become a Benefit Corporation — Walk through the steps to become a benefit corporation.
Benefits — See what operating as a benefit corporation can do for your business.
vs. B Corp — Understand how a benefit corporation differs from a Certified B Corporation.
Certification — Understand what certification verifies beyond legal business status.
Standards Explained — Learn the standards BCFG uses to evaluate certification applicants.
Ready to learn more?
Start with our guide to How to Become a Benefit Corporation, or explore Benefit Corporation for Small Business.