Item 3: Ratification of Unanimous IGR Actions and Action on Non-Unanimous IGR Actions

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preference laws are often confusing and can contain many exceptions. However, standardizing to 5% (as optional) would make it difficult for other states that also utilize reciprocal preference as they would not know whether we penalize or not given that the choice is left to the entity. This could also spark other states that utilize reciprocal preference laws to instate their own preference laws in retaliation, thereby damaging Oregon vendors. The most problematic portion of this proposed bill is that an entity could choose to utilize the 5% preference only if the estimated revenue from income taxes, unemployment taxes and other applicable taxes that a resident bidder would pay in connection with the public contract equals or exceeds the monetary equivalent of the increase the contracting agency would apply to the nonresident bidder’s bid (among other minor requirements). There is no mention of whether the government agency or the bidder would be required to provide this information and also no mention of liability if this amount is incorrectly calculated. Most City staff are not properly trained to determine tax liability and this would add an additional complication to the award process, costing time and potentially money. Given that the choice between preference appears to be up to the government agency this bill would probably have minimal impact on the City but this particular portion should be amended. Contact Respondent Dept Updated Priority Recommendation Mike Penwell CS-FAC 2/23/2011 Pri 3 Oppose Comments: Oppose for reasons stated by others, plus the fact that this bill could spur retaliatory measures by other states that would actually hurt Oregon bidders and vendors more than it would help. Contact Respondent Dept Updated Priority Recommendation Jenifer Willer PWE 2/23/2011 Pri 3 Oppose Comments: This bill is regarding goods and services under ORS 279A and preferences given to resident bidders. I defer to Jamie for the bill impacts and her recommendation. Contact Respondent Dept Updated Priority Recommendation Paul Klope PWE 2/23/2011 -- -- Comments: Requires public agencies to give preference to in state bidders by either adding 5% to out of state bidders or an amount equivalent to the percentage preference given by the bidder's home state. The exception to this is if there are no in-state bidders or where the estimated tax revenue a successful in-state bidder would pay does not equal or exceed the preference amount. This bill is unlikely to have much effect on the City for public infrastructure contracts as we rarely have successful out of state bidders. SB 0774 Relating Clause: Relating to restrictive covenants in documents conveying real property. 20 | Page March 9, 2011 IGR Committee Meeting