71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1680
B-Engrossed
House Bill 2406
Ordered by the Senate May 17
Including House Amendments dated March 2 and Senate Amendments
dated May 17
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Representative Susan
Morgan, Representative Tim Knopp and Representative Jeff
Merkley for Oregon Micro Enterprise Network)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Creates microenterprise development program to establish
infrastructure for delivery of microlending services and training
and technical assistance. { - Authorizes Economic and Community
Development Department to make grants to local microenterprise
support organizations. - } Authorizes { + Economic and
Community Development + } Department to contract with statewide
organizations to implement microenterprise development program
under certain conditions.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to support services to microenterprises; creating new
provisions; amending ORS 285A.045 and 285A.050; and declaring
an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 5 of this 2001 Act shall be known
and may be cited as the Microenterprise Development Act. + }
SECTION 2. { + As used in sections 2 to 5 of this 2001 Act:
(1) 'Local microenterprise support organization' means a
community development corporation, a nonprofit development
organization, a nonprofit social services organization or another
locally operated nonprofit entity that provides services to
disadvantaged entrepreneurs.
(2) 'Low income' means income adjusted for family size that
does not exceed:
(a) For metropolitan areas, 80 percent of median income; or
(b) For nonmetropolitan areas, the greater of 80 percent of the
area median income or 80 percent of the statewide nonmetropolitan
area median income.
(3) 'Microenterprise' has the meaning given that term under 15
U.S.C. 6901, as amended and in effect on the effective date of
this 2001 Act.
(4) 'Microentrepreneur' means an individual conducting a
microenterprise.
(5) 'Microlending' means the practice of lending moneys to
microenterprises or microentrepreneurs.
(6) 'Statewide microenterprise support organization' means a
community development corporation, a nonprofit development
organization, a nonprofit social services organization or another
nonprofit entity that serves as an intermediary between the
Economic and Community Development Department and local
microenterprise support organizations.
(7) 'Training and technical assistance' means services and
support offered to microenterprises and microentrepreneurs. '
Training and technical assistance' includes, but is not limited
to, services to enhance business development, planning,
marketing, management skills and access to financial services.
(8) 'Very low income' means income adjusted for family size
that does not exceed 150 percent of the poverty level determined
under 42 U.S.C. 9902, as amended and in effect on the effective
date of this 2001 Act. + }
SECTION 3. { + (1) The Legislative Assembly finds that:
(a) There is a need to develop and expand businesses in
economically distressed communities in both rural and urban
areas;
(b) There is a need to assist Oregonians who are unemployed,
underemployed or in low income jobs;
(c) Microenterprises can provide a means for unemployed,
underemployed or low income individuals to find and sustain
productive work;
(d) Microenterprises, including self-employment, can enable
people with disabilities to use their management skills to create
and provide products and services, to acquire new skills in money
management and business development and to develop pride and
self-esteem;
(e) Microenterprises can provide opportunities for economically
distressed communities to thrive, one microentrepreneur at a
time;
(f) Microenterprises, including self-employment and start-up
businesses, are important elements of the Oregon economy and play
a vital role in job creation;
(g) There is a lack of access to capital and training and
technical assistance for low income and very low income
microentrepreneurs;
(h) Many low income and very low income microentrepreneurs need
microlending services and training and technical assistance to
start, operate or expand their businesses;
(i) Local microenterprise support organizations have
demonstrated cost-effective delivery methods for providing
microlending services and training and technical assistance; and
(j) Local and state charitable foundation support, federal
program funding and private sector support can be leveraged by a
statewide program for development of microenterprises.
(2) The purposes of sections 2 to 5 of this 2001 Act are to:
(a) Ensure that microenterprises in Oregon are able to realize
their full potential to create jobs, enhance entrepreneurial
skills, expand entrepreneurial activity and increase the capacity
of low income and very low income households to become
self-sufficient;
(b) Enhance the development of a statewide infrastructure for
microenterprise support; and
(c) Enable the Economic and Community Development Department to
engage in contractual relationships with statewide
microenterprise support organizations that have the capacity to
administer grants to local microenterprise support organizations,
subject to sections 2 to 5 of this 2001 Act, and to leverage
additional funds from sources other than moneys appropriated from
the General Fund. + }
SECTION 4. { + (1) The Economic and Community Development
Department shall convene a work group on microenterprise
development.
(2) The work group established under this section shall consist
of representatives from:
(a) The Adult and Family Services Division of the Department of
Human Services;
(b) The Employment Department;
(c) The Economic and Community Development Department;
(d) The Housing and Community Services Department;
(e) The State Department of Agriculture;
(f) The Advocate for Minority, Women and Emerging Small
Business in the Office of the Governor;
(g) The Department of Community Colleges and Workforce
Development;
(h) The Oregon State University Extension Service;
(i) Other entities whose work relates to microenterprise
activity in Oregon; and
(j) Statewide microenterprise support organizations.
(3) The work group established under this section shall meet
regularly to coordinate the work of state agencies and other
entities related to microenterprise activity and to develop a
coherent framework for state agency efforts related to
microenterprise activity. + } { + + }
SECTION 5. { + The Economic and Community Development
Department shall submit a biennial report to the Governor and the
Legislative Assembly outlining the actions that the department
has taken related to microenterprise development pursuant to ORS
285A.045 and 285A.050. + }
SECTION 6. { + Section 4 of this 2001 Act is repealed on
January 2, 2004. + }
SECTION 7. ORS 285A.045 is amended to read:
285A.045. (1) As its primary duty, the Oregon Economic and
Community Development Commission shall develop and maintain an
economic and community development policy for this state that
implements the strategy declared in ORS 285A.020 (4) and that
includes policies that:
(a) Maintain and create jobs that raise real wage levels of
Oregon workers.
(b) Increase the skill levels of the Oregon workforce.
(c) Improve the competitiveness of this state's traded sector
industries and achieve benchmarks for those industries
established by the Oregon Progress Board.
(d) Invest public moneys in a manner that produces the greatest
possible return on investment.
(e) Support statewide and regional strategies to develop and
maintain the infrastructure necessary to support and strengthen
the economy of this state.
(f) Identify and eliminate barriers that impede the
competitiveness of Oregon businesses.
(g) Encourage expansion of existing Oregon businesses and the
attraction of new business and industry to those communities that
desire such development.
{ + (h) Assist in the development of microenterprise
businesses in Oregon, including increasing the availability of
training and technical assistance available to serve
microenterprises. + }
(2) It is the function of the Oregon Economic and Community
Development Commission to establish the policies for economic and
community development in this state in a manner consistent with
the policies and purposes set forth in this section and ORS
285A.050. In addition, the commission shall perform any other
duty vested in it by law.
(3) The commission shall keep complete and accurate records of
all the meetings, transactions and business of the commission at
the office of the Economic and Community Development Department.
(4) The commission shall set policy for and monitor programs
relating to economic development and rural and community
development and such other programs related to economic and
community development that may be assigned by law to the
department.
(5) In carrying out its duties under subsection (1) of this
section, the commission shall:
(a) Place priority on those policies that achieve benchmarks
established by the Oregon Progress Board; and
(b) Coordinate its activities with the policies of the
Education and Workforce Policy Advisor and the policymaking
bodies of the Housing and Community Services Department, the
Department of Transportation, the Department of Environmental
Quality, the Department of Land Conservation and Development and
the Employment Department, as well as other appropriate state and
federal agencies.
SECTION 8. ORS 285A.050 is amended to read:
285A.050. (1) The Oregon Economic and Community Development
Commission shall report biennially to the Governor and the
Legislative Assembly on the success of economic development
efforts. The report, at a minimum, shall include the following:
(a) For the overall Economic and Community Development
Department effort and for each identifiable program and
significant project or service:
(A) The impact of that program on the competitiveness of traded
sector industries and the skill levels of the Oregon workforce;
(B) The impact on the number of jobs, including jobs created
and retained;
(C) The impact on the wage levels of Oregon workers, including
increases in wage levels; and
(D) The actual or anticipated impact of public investments at
all levels, in terms of measurable outcomes wherever possible.
(b) The status of the Oregon economy related to:
(A) Changes in employment and wage levels in Oregon industries;
(B) Changes in employment, wage levels and competitiveness of
traded sector industries; and
(C) Barriers that have been identified as impeding business
competitiveness and productivity in this state.
(c) Progress made toward achievement of the Oregon Benchmarks.
(d) Recommendations for removing identified barriers and
additional suggestions for improving the performance of Oregon's
economy.
(e) Recommendations on this state's investment in its public
ports, on this state's response to policy issues that affect
ports and for the strategic development of port facilities that
promote maritime commerce, recreational opportunities and the
economy of Oregon.
(f) Progress made toward elimination of economically distressed
areas of this state.
(g) Recommendations regarding improving the international
competitiveness of Oregon.
{ + (h) Progress made in serving microenterprise businesses
and recommendations for increasing the success of
microenterprises. + }
(2) Whenever a power is granted to the commission, the power
may be exercised by such officers, employees or
commission-appointed committees as are designated in writing by
the commission.
SECTION 9. { + This 2001 Act being necessary for + } { +
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2001 Act
takes effect on its passage. + }
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