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 722
(Including Amendments to Resolve Conflicts)
B-Engrossed
Senate Bill 292
Ordered by the Senate July 4
Including Senate Amendments dated March 7 and July 4
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Economic and Community Development Department)
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.
Removes revenue bond limit for certain bonds financing
municipal infrastructure projects.
Authorizes Economic and Community Development Department to
contract directly with Oregon Downtown Development Association
and Rural Development Initiatives for delivery of certain support
services to municipalities. Exempts contracts from certain public
contract requirements.
{ + Allows Economic and Community Development Department and
Ports Division of department to provide assistance or grants in
form of direct purchase of goods or services. + }
Eliminates urban/rural financing split for infrastructure and
water projects. Eliminates requirement for quarterly valuation of
Special Public Works Fund and Water Fund.
{ + Includes telecommunications infrastructure in types of
infrastructure projects that may receive financial or other
assistance using moneys from Special Public Works Fund. + }
Modifies limit on expenditures for grants and loans from
Special Public Works Fund.
{ + Provides that not less than 60 percent of moneys
disbursed from Special Public Works Fund and from Water Fund
shall be used to provide assistance to distressed areas and
nonurban infrastructure projects.
Permits eligible business firm to obtain enterprise zone tax
exemption for certain otherwise ineligible refurbished,
retrofitted or upgraded real property, machinery or equipment if
specified requirements are met. Requires application for
exemption to be filed on or before April 1, 2004. + }
Repeals requirement for biennial report to Legislative Assembly
by Port of Portland.
{ - Declares emergency, effective on passage. - }
{ + Takes effect on 91st day following adjournment sine
die. + }
A BILL FOR AN ACT
Relating to economic development; creating new provisions;
amending ORS 238.015, 240.205, 285A.020, 285A.045, 285A.055,
285A.075, 285A.090, 285A.200, 285A.213, 285A.227, 285A.264,
285A.276, 285A.654, 285A.657, 285A.666, 285A.669, 285A.672,
285A.675, 285A.678, 285A.681, 285A.684, 285A.690, 285A.693,
285A.699, 285A.702, 285A.708, 285A.711, 285B.410, 285B.413,
285B.416, 285B.419, 285B.422, 285B.425, 285B.428, 285B.434,
285B.437, 285B.440, 285B.443, 285B.452, 285B.455, 285B.458,
285B.461, 285B.467, 285B.479, 285B.560, 285B.563, 285B.578,
285B.581, 285B.590, 285B.596 and 777.195; repealing ORS 778.240
and section 1, chapter 343, Oregon Laws 2001 (Enrolled House
Bill 3660), and sections 5, 6 and 7, chapter ___, Oregon Laws
2001 (Enrolled Senate Bill 479); and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + ORS 778.240 and section 1, chapter 343,
Oregon + } { + Laws 2001 (Enrolled House Bill 3660), are
repealed. + }
SECTION 1a. { + If Senate Bill 479 becomes law, sections 5
(amending ORS 285B.413), 6 (amending ORS 285B.410) and 7
(amending ORS 285B.428), chapter ___, Oregon Laws 2001 (Enrolled
Senate Bill 479), are repealed. + }
SECTION 1b. ORS 285A.020 is amended to read:
285A.020. (1) The Legislative Assembly finds that:
(a) Oregon's economy continues to experience change and
adjustment that greatly affect the well-being of its citizens.
(b) The state has a need for continuing economic development to
help provide the jobs for its citizens that lead to community
vitality and a high quality of life.
(2) The Legislative Assembly further finds that:
(a) Oregon's human resources constitute a major asset in the
state's effort to promote economic expansion and improvement.
(b) Oregon's natural resources provide ample opportunities for
productive and beneficial economic enterprise.
(c) Oregon's location on the growing economy of the Pacific Rim
provides substantial opportunities and challenges in
international trade.
(d) Oregon's special heritage, its respect for and cultivation
of its environment and its quality of life are a unique and
sustaining virtue that will both guide and assist in maintaining
the state's economic health.
(3) It is the purpose of ORS chapters 285A and 285B to promote
the improvement of Oregon's economy to better provide for the
well-being of its citizens. To that end, the Economic and
Community Development Department shall invest resources in
accordance with the following principles:
(a) Structures and processes for making public investments and
dealing with local and regional issues must be designed flexibly
so that actions can adapt to the constantly changing conditions
and demands under which communities and businesses operate.
(b) Partnerships among local, state and federal, public and
private players should be used to set direction, develop projects
and set priorities.
(c) The expected impact of public investments at all levels
should be explicitly identified, in terms of measurable outcomes,
whenever possible.
(d) State, federal and community goals, constraints and
obligations should be identified at the beginning of the public
investment planning process, and the state should work actively
with communities and regions to accomplish their mutual
objectives.
(4) The Legislative Assembly declares that it is the immediate
economic strategy of the state to:
(a) Focus on Oregonians in communities that are rural,
economically distressed or lack diverse employment opportunities,
including providing assistance in recruiting jobs from outside
the community or state and financing necessary infrastructure;
(b) Assist Oregonians who are underemployed or in low income
jobs;
(c) Assist start-up companies and companies already doing
business in Oregon; { - and - }
(d) Help regions that are committed to making strong progress
toward an integrated structure and process for strategic planning
and project development { + ; and
(e) Focus on strategies and investments that maximize the
economic benefit to the state of the global shift to an
information, science and technology driven economy and on
industries and companies that make significant use of the
high-capacity telecommunications, science and technology-related
manufacturing processes or knowledge transfer typical of these
emerging economic sectors + }.
SECTION 1c. 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 { + , including industries characterized by
significant use of high-capacity telecommunications, science and
technology-related manufacturing processes or knowledge
transfer, + } 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 { + , with particular attention to
industries characterized by significant use of high-capacity
telecommunications, science and technology-related manufacturing
processes or knowledge transfer + }.
(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 2. ORS 285A.055 is amended to read:
285A.055. Prior to the approval of bond financing of economic
development projects under ORS 285B.320 to 285B.377, the making
of a loan under ORS 285A.666 to 285A.732 or the making of any
loan or the granting of any moneys from any source { - except
for those allocated under chapter 777, Oregon Laws 1985 - } , the
Oregon Economic and Community Development Commission shall:
(1) Determine that the action is cost effective, considering
both major public expenses and major public benefits;
(2) Find that the project will produce goods or services which
are sold in markets for which national or international
competition exists or, if the project is to be constructed and
operated by a nonprofit organization, that the project will not
compete with local for-profit businesses;
(3) Determine that the action is the best use of the moneys
involved, considering other pending applications for those
moneys;
(4) Find that the project involved is consistent with the
Economic and Community Development Department's comprehensive
policy and programs;
(5) Find that the project involved is consistent with
applicable adopted local economic development plans; and
(6) Provide for public notice of, and public comment on, the
action.
SECTION 3. ORS 285A.075 is amended to read:
285A.075. (1) The Economic and Community Development
Department, through research, promotion and coordination of
activities in this state, shall foster the most desirable growth
and geographical distribution of agriculture, industry and
commerce in the state. The department shall serve as a central
coordinating agency and clearinghouse for activities and
information concerning the resources and economy of the state.
(2) The department shall have no regulatory power over the
activities of private persons. Its functions shall be solely
advisory, coordinative and promotional.
(3) The department shall administer the state's participation
in the federal Community Development Block Grant funding program
authorized by 42 U.S.C. 5301 et seq.
(4) In order to accomplish the purposes of ORS chapters 285A
and 285B and ORS 329.905 to 329.975, the department may expend
moneys duly budgeted to pay the travel and various other expenses
of industrial or commercial site location agents, film or video
production location agents, business journal writers, elected
state officials or other state personnel whom the Director of the
Economic and Community Development Department determines may
promote the purposes of this subsection.
(5) In accordance with applicable provisions of ORS 183.310 to
183.550, the department may adopt rules necessary for the
administration of laws that the department is charged with
administering.
(6) ORS 276.428, 279.021, 279.310 to 279.322, 279.334, 279.336,
279.338, 279.340, 279.342, 279.348 to 279.363, 279.365, 279.545
to 279.650, 279.712, 279.826, 282.020, 282.050, 282.210, 282.220,
282.230 and 283.140 do not apply to the department's operation of
foreign trade offices outside the state.
{ + (7) Notwithstanding ORS 279.712, the department may enter
into contracts for personal services as necessary or appropriate
to carry out the duties, functions and powers vested in the
department by law.
(8)(a) The department may contract directly with the Oregon
Downtown Development Association, or its successor entity, to
provide downtown development and redevelopment assistance and
similar services to municipalities in Oregon.
(b) The department may contract directly with Rural Development
Initiatives, or its successor entity, to provide training,
technical assistance, planning assistance and other support and
services to municipalities in Oregon to build economic and
community development capacity.
(c) Contracts entered into under this subsection are exempt
from the requirements of ORS chapter 279.
(9) If the director determines that moneys are available, the
department may transfer funds from the Special Public Works Fund
created under ORS 285B.455 or from the Water Fund established
under ORS 285B.563 to a state agency to provide financial
assistance in the delivery of technical assistance or other
services to one or more water systems for evaluation of water
quality or services or for planning the improvement of water
quality or services. The department may structure the financial
assistance under this subsection in the form of an interagency
grant or loan or in any other manner the director considers
necessary or appropriate. + }
SECTION 4. ORS 285A.200 is amended to read:
285A.200. (1) The Economic and Community Development Department
may accept gifts of money or other property from any public or
private agency or person made for the purpose of assisting the
department to carry out any programs or laws that the department
is charged with administering. Moneys so received shall be paid
into an appropriate fund or account. Property so received shall
be used for the purposes for which that property is given.
(2) The department may apply for, receive from the United
States or any of its agencies, and disburse or supervise the
disbursement of federal aid for the purposes for which the aid is
provided. The department may also disburse or supervise the
disbursement of funds provided by the State of Oregon for
expenditure as a condition of receiving the federal aid.
{ + (3) The department may assess and charge fees for loans
made from any of its funds or accounts. + }
SECTION 4a. ORS 285A.213 is amended to read:
285A.213. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Safe Drinking
Water Revolving Loan Fund. All moneys in the Safe Drinking Water
Revolving Loan Fund are continuously appropriated to the Economic
and Community Development Department.
(2) The Economic and Community Development Department shall
administer the Safe Drinking Water Revolving Loan Fund in
accordance with a memorandum of understanding between the
department and the Health Division.
(3) The Safe Drinking Water Revolving Loan Fund shall consist
of:
(a) Moneys transferred to the fund by the Health Division for
purposes authorized by the memorandum of understanding between
the Health Division and the Economic and Community Development
Department.
(b) Moneys transferred to the fund by the federal government,
other state agencies or local governments.
(c) Moneys transferred to the fund by the Legislative Assembly
or the Oregon Economic and Community Development Commission.
(d) Proceeds from the sale of revenue bonds.
(e) Repayment of financial assistance provided with moneys from
the fund.
(f) Interest and other earnings on moneys in the fund.
(4) Moneys in the Safe Drinking Water Revolving Loan Fund shall
be used to provide financial { + or other + } assistance to
publicly owned and privately owned water systems under the Safe
Drinking Water Act Amendments of 1996, P.L. 104-182, and rules of
the Economic and Community Development Department. { + As used
in this subsection, 'assistance' includes direct purchase by the
department of goods or services related to a water system project
to the extent permitted by the memorandum of understanding
between the department and the Health Division, the Safe Drinking
Water Act Amendments of 1996, and as authorized by rules of the
department. + }
SECTION 5. ORS 285A.227 is amended to read:
285A.227. (1) There is created within the State Treasury,
separate and distinct from the General Fund, the Oregon Community
Development Fund. The fund is created to provide a flexible
funding source for financing those programs and projects that are
determined by the Oregon Economic and Community Development
Commission under the policies, criteria and standards set forth
in ORS 285A.020, 285A.045 and 285A.055 to further economic and
community development. { + The Economic and Community
Development Department may finance programs and projects
determined by the commission to further economic and community
development by making grants or loans using moneys in the fund.
Notwithstanding ORS 279.712, the department may enter into
contracts for personal services as necessary or appropriate to
implement programs and projects determined by the commission to
further economic and community development using moneys in the
fund. + } The Oregon Community Development Fund shall consist of
all moneys credited to the fund, including moneys from the
Administrative Services Economic Development Fund, federal funds
collected or received, and fees, moneys or other revenues,
including Miscellaneous Receipts, collected or received by the
Economic and Community Development Department, and all interest
earnings that accrue to the fund. The moneys in the Oregon
Community Development Fund are continuously appropriated to the
Economic and Community Development Department to promote economic
and community development.
(2) The Oregon Economic and Community Development Commission,
by rule, shall adopt standards, objectives and criteria for use
of the moneys in the Oregon Community Development Fund.
SECTION 6. ORS 285A.264 is amended to read:
285A.264. The Oregon Tourism Commission shall perform the
following duties:
(1) Serve as a body to advise governmental bodies and agencies
and private persons on the development and implementation of
state policies and programs relating to tourism and recreation
and to assist in the coordination of these activities.
(2) Advise the Governor and direct the administrator of the
Oregon Tourism Program on all matters pertaining to tourism.
(3) Prepare, approve and periodically revise and submit to the
Governor, the Director of the Economic and Community Development
Department and tourism industry associations a recommended
comprehensive marketing plan for review by the Governor, the
director and the tourism industry associations. The comprehensive
marketing plan shall be directed toward the accomplishment of at
least the following purposes:
(a) Maximizing the return on public and private investment in
tourism.
(b) Encouraging longer stays by visitors to Oregon.
(c) Reducing seasonal fluctuations in travel and tourist
related industries.
(d) Encouraging visitors to be destination oriented in this
state { + by targeting high-yield visitor segments that may
include cultural tourism, agri-tourism, nature-based tourism or
sports and adventure tourism + }.
(e) Encouraging visitors from foreign countries to come to
Oregon.
(f) Encouraging Oregonians to vacation in Oregon.
(4) Develop a biennial budget for all operations of the tourism
commission and the tourism program and submit the budget to the
Governor.
(5) Seek and receive the views of all levels of government and
the private sector with respect to state programs and policies
for the promotion and assistance of tourism.
(6) Prepare and adopt administrative rules necessary for the
operation of the programs of the tourism commission.
(7) Cooperate with educational institutions of the state in the
development of educational programs preparing persons for
supporting and leadership positions critical to the development
of an economically strong and socially beneficial tourism
industry in Oregon.
(8) Cooperate with and provide expertise for communities and
tourism marketing associations in the development and promotion
of their tourism attractions and businesses.
{ + (9) At the discretion of the tourism commission, exercise
directly any power or authority vested in the tourism
program. + }
SECTION 7. ORS 285A.276 is amended to read:
285A.276. (1) The Public-Private Partnership is hereby
established as a program of the Oregon Tourism Commission.
(2) The tourism commission shall adopt a biennial budget for
the Public-Private Partnership using the classifications of
expenditures and revenues required by ORS 291.206 (1).
(3) The tourism commission shall adopt the budget for the
Public-Private Partnership only after holding a public hearing on
the proposed budget. At least 15 days prior to any public hearing
on the proposed budget, the tourism commission shall give notice
of the hearing to all persons known to be interested in the
proceedings of the tourism commission and to any person who
requests notice.
(4) All moneys collected, received or appropriated for the
purposes of the Public-Private Partnership shall be deposited in
an account established in a depository bank insured by the
Federal Deposit Insurance Corporation. In a manner consistent
with the requirements of ORS chapter 295, the chair of the
tourism commission shall ensure that sufficient collateral
secures any amount of funds on deposit that exceeds the limits of
the coverage of the Federal Deposit Insurance Corporation.
Subject to approval by the tourism commission, the commission may
invest moneys collected or received for the Public-Private
Partnership. Investments made by the tourism commission are
limited to the types of investments listed in ORS 294.035 (1) to
(9). Interest earned from any amounts invested shall be made
available to the tourism commission in a manner consistent with
the biennial budget for the Public-Private Partnership.
(5) Moneys in the account established under subsection (4) of
this section for the Public-Private Partnership shall consist of:
(a) Gifts, grants and other contributions from private and
nonprofit entities;
(b) Grants, loans and other revenue transfers from public
entities, including the State of Oregon; { - and - }
(c) Interest earned on moneys in the account { + ; and
(d) Revenues generated by the tourism commission or by Oregon
Tourism Program activities + }.
(6) Notwithstanding ORS chapter 279, all expenditures from the
account established under subsection (4) of this section shall be
in conformance with the duties of the tourism commission set
forth in ORS 285A.264. All expenditures from the account are
exempt from any state expenditure limitation. { + The
Public-Private Partnership is exempt from ORS 291.050 to
291.060. + } The tourism commission shall follow generally
accepted accounting principles and keep such financial and
statistical information that is necessary to completely and
accurately disclose the financial condition of the account as may
be required by the Secretary of State.
SECTION 7a. ORS 285A.654 is amended to read:
285A.654. (1) There is created within the State Treasury,
separate and distinct from the General Fund, the Port Planning
and Marketing Fund. All moneys in the Port Planning and Marketing
Fund are appropriated continuously to the Ports Division and
shall be used by the division for:
(a) Administrative expenses of the division in processing grant
applications and investigating proposed planning or marketing
projects related to ports.
(b) Payment of grants under ORS 285A.654 to 285A.660 to ports
incorporated under ORS 777.010 and 777.050.
{ + (c) Direct purchase by the division of goods or services
to assist ports in implementing planning or marketing projects
approved for grant financing under ORS 285A.654 to 285A.660. + }
(2) The Port Planning and Marketing Fund shall consist of:
(a) Moneys appropriated to the fund by the Legislative
Assembly.
(b) Moneys obtained from gifts or grants received under ORS
285A.200.
(c) Moneys obtained from interest earned on the investment of
such moneys.
(3) Moneys in the Port Planning and Marketing Fund, with the
approval of the State Treasurer, may be invested as provided by
ORS 293.701 to 293.820, and the earnings from such investments
shall be credited to the Port Planning and Marketing Fund.
SECTION 7b. ORS 285A.657 is amended to read:
285A.657. (1) The Ports Division may make grants, as funds are
available, to any port incorporated under ORS chapter 777 or 778
for:
(a) A planning project conducted under ORS 285A.627 or any
other planning project necessary for improving the port's
capability to carry out its authorized functions and activities
relating to trade and commerce; or
(b) A marketing project necessary for improving the port's
capability to carry out its authorized functions and activities
relating to trade and commerce.
(2) Any port may file with the Ports Division an application
for a grant from the Port Planning and Marketing Fund to finance
a specific planning project or marketing project.
(3) An application under this section shall be filed in such a
manner and contain or be accompanied by such information as the
Ports Division may prescribe.
(4) Upon receipt of an application, the Ports Division shall
determine whether the planning project or marketing project is
eligible for funding under ORS 285A.654 to 285A.660. If the Ports
Division determines that the project is not eligible, it shall
within 60 days:
(a) Reject the application; or
(b) Require the applicant to submit additional information as
may be necessary.
(5) The Ports Division may approve a grant for a planning
project or a marketing project described in an application filed
under this section if, after investigation, the Ports Division
finds that:
(a) The project meets the standards and criteria established by
the Ports Division for grant financing from the Port Planning and
Marketing Fund; and
(b) Moneys in the Port Planning and Marketing Fund are or will
be available for the project.
(6) Grants to ports under ORS 285A.654 to 285A.660 shall not
exceed $25,000 and shall not exceed 75 percent of the total cost
of the project.
(7) The Ports Division shall not fund any program that
subsidizes regular port operating expenses.
{ + (8) In lieu of all or part of the grant financing
approved under ORS 285A.654 to 285A.660 for a planning or
marketing project, the Ports Division may purchase goods or
services to assist a port in implementing a project. + }
SECTION 8. ORS 285A.666 is amended to read:
285A.666. As used in ORS 285A.666 to 285A.732, unless the
context requires otherwise:
(1) 'Business development project' means the engineering,
improvement, rehabilitation, construction, operation or
maintenance, in whole or in part, including the preproject
planning costs of any business development project authorized by
ORS 777.250 (1). The term does not include a flexible
manufacturing space project.
(2) 'Division' means the Ports Division of the Economic and
Community Development Department.
(3) 'Flexible manufacturing space project' means a project for
the acquisition, construction, improvement or rehabilitation, in
whole or in part, of any building suitable for the conduct of
manufacturing processes and, by design, able to be readily
modified when necessary to accommodate the operations of the
tenants of the building. The term includes any preproject
planning activities for a flexible manufacturing space project.
(4) 'Fund' means the Oregon Port Revolving Fund.
(5) 'Port development project' means the engineering,
improvement, rehabilitation, construction, operation or
maintenance, in whole or in part, including the preproject
planning costs of any project authorized by ORS 777.105 to
777.258, except projects authorized primarily by ORS 777.250 (1).
(6) 'Port district' means any municipal corporation
incorporated, or proposed to be incorporated, pursuant to ORS
777.005 to 777.725 and 777.915 to 777.953 or ORS chapter 778.
{ + (7) 'Project' means a port development project, a
business development project or a flexible manufacturing space
project. + }
SECTION 9. ORS 285A.669 is amended to read:
285A.669. Any Oregon port district may file with the Oregon
Economic and Community Development Commission an application to
borrow money from the Oregon Port Revolving Fund for a { - port
development - } project as provided in ORS 285A.666 to 285A.732.
The application shall be filed in such a manner and contain or be
accompanied by such information as the commission may prescribe.
SECTION 10. ORS 285A.672 is amended to read:
285A.672. (1) Upon receipt of an application filed as provided
in ORS 285A.669, the Oregon Economic and Community Development
Commission shall determine whether the plans and specifications
for the proposed { - port development - } project set forth in
or accompanying the application are satisfactory. If the
commission determines that the plans and specifications are not
satisfactory, the commission may within 60 days:
(a) Reject the application.
(b) Require the applicant to submit additional information of
the plans and specifications as may be necessary.
(2) The commission shall charge and collect from the applicant,
at the time the application is filed, a fee of not to exceed
$100. Moneys referred to in this subsection shall be paid into
the Oregon Port Revolving Fund.
SECTION 11. ORS 285A.675 is amended to read:
285A.675. Nothing in ORS 285A.666 to 285A.732 is intended to
prevent an applicant from employing a private engineering firm
and construction firm to perform the engineering and construction
work on a proposed { - port development - } project.
SECTION 12. ORS 285A.678 is amended to read:
285A.678. The Oregon Economic and Community Development
Commission may approve a { - port development - } project
proposed in an application filed as provided in ORS 285A.669, if,
after investigation, the commission finds that:
(1) The proposed { - port development - } project is
feasible and a reasonable risk from practical and economic
standpoints, and the loan has reasonable prospect of repayment.
(2) Moneys in the Oregon Port Revolving Fund are or will be
available for the proposed { - port development - } project.
(3) There is a need for the proposed { - port development - }
project, and the applicant's financial resources are adequate to
provide the working capital needed to { - assure - }
{ + ensure + } success of the project.
(4) The applicant has received all necessary permits required
by federal, state or local agencies.
(5) The applicant has not received or entered into a contract
or contracts exceeding $1.4 million with the commission, under
authority of ORS 285A.666 to 285A.732, for the previous 365 days,
and provided that no applicant may have more than $2 million in
outstanding loans at any one time.
(6) The standards under ORS 285A.055 have been met.
SECTION 13. ORS 285A.681 is amended to read:
285A.681. If the Oregon Economic and Community Development
Commission approves the project, the commission, on behalf of the
state, and the applicant may enter into a loan contract of not
more than $700,000 { - , - } { + that is + } secured by good
and sufficient collateral { + . + } { - , which shall set
forth, - } { + The loan contract shall set forth, + } among
other matters:
(1) A plan for repayment by the applicant to the Oregon Port
Revolving Fund { + of + } moneys borrowed from the fund
{ - used - } for the
{ - port development project, flexible manufacturing space
project or business development - } project and interest on
{ - such moneys used - } { + the moneys + } at a rate of
interest for port development projects and flexible manufacturing
space projects of not less than five percent or for business
development projects of not less than one percent less than the
prevailing interest rate on United States Treasury bills of
comparable term, as determined by the commission. The repayment
plan, among other matters:
(a) Shall provide for commencement of repayment by the port
district of moneys used for the project and interest thereon no
later than one year after the date of the loan contract or at
such other time as the commission may provide. However, upon
approval by the commission, a repayment plan for a flexible
manufacturing space project may provide that no interest shall
accrue until the building is at least 25 percent occupied or
until three years after the date of the loan contract, whichever
is earlier.
(b) May provide for reasonable extension of the time for making
any repayment in emergency or hardship circumstances if approved
by the commission.
(c) Shall provide for such evidence of debt assurance of, and
security for, repayment by the applicant as are considered
necessary by the commission.
(d) Shall set forth a schedule of payments and the period of
loan which shall not exceed the usable life of the contracted
project or 20 years from the date of the contract, whichever is
less, and shall also set forth the manner of determining when
loan payments are delinquent. The payment schedule shall include
repayment of interest which accrues during any period of delay in
repayment authorized by paragraph (a) of this subsection, and the
payment schedule may require payments of varying amounts for
collection of such accrued interest.
(e) Shall set forth a procedure for formal declaration of
default of payment by the commission, including formal
notification of all relevant federal, state and local agencies;
and further, a procedure for notification of all relevant
federal, state and local agencies that declaration of default has
been rescinded when appropriate.
(f) Shall provide for partial or complete repayment, in excess
of scheduled payments, of any outstanding principal loan amount
without penalty. If any prepayment is made, that amount shall not
be included in any computation for the purposes of ORS 285A.678
(5).
(2) Provisions satisfactory to the commission for field
engineering and inspection, the commission to be the final judge
of completion of the contract.
(3) That the liability of the state under the contract is
contingent upon the availability of moneys in the Oregon Port
Revolving Fund for use in the project.
(4) Such further provisions as the commission considers
necessary to { - insure - } { + ensure + } expenditure of the
funds for the purposes set forth in the approved application.
(5) That the commission may institute appropriate action or
suit to prevent use of the facilities of a project financed by
the Oregon Port Revolving Fund if the { - port - }
{ + applicant + } is delinquent in the repayment of any moneys
due the Oregon Port Revolving Fund.
SECTION 14. ORS 285A.684 is amended to read:
285A.684. If the Oregon Economic and Community Development
Commission approves a loan for a { - port development - }
project, the commission shall pay moneys for { - such - }
{ + the + } project from the Oregon Port Revolving Fund, in
accordance with the terms of the loan contract as prescribed by
the commission.
SECTION 15. ORS 285A.690 is amended to read:
285A.690. (1) The Oregon Economic and Community Development
Commission may institute proceedings to foreclose any lien for
delinquent loan payments.
(2) If a port district fails to comply with a contract entered
into pursuant to ORS 285A.681, the commission may seek
appropriate legal remedies to secure the loan, and may contract
with any port project developer for { - continuance - }
{ + continuation + } of the { - port development - } project
and for repayment of moneys from the Oregon Port Revolving Fund
used therefor and interest thereon.
(3) The commission may also provide by contract or otherwise
for a { - port development - } project until the project is
assumed by the new port project developer.
SECTION 16. ORS 285A.693 is amended to read:
285A.693. A port district that enters into a contract with the
Oregon Economic and Community Development Commission for a
{ - port development - } project and repayment as provided in
ORS 285A.681 may obtain moneys for repayment to the Oregon Port
Revolving Fund under the contract in the same manner as other
moneys are obtained for purposes of the port district or other
moneys available to the developer.
SECTION 17. ORS 285A.699 is amended to read:
285A.699. Except as provided in ORS 285A.702, if any { - port
development - } project is refinanced or financial assistance is
obtained from other sources after the execution of the loan from
the state, all such funds shall be { - first - } used to repay
the state { + first + } if such refinancing or financial
assistance applies only to the { - port development - }
project authorized and does not include any subsequent addition,
expansion, improvement or further development.
SECTION 18. ORS 285A.702 is amended to read:
285A.702. (1) The Oregon Economic and Community Development
Commission may authorize funds from the Oregon Port Revolving
Fund to be used in appropriate joint governmental participation
projects or as match money with any port, state or federally
funded { - port development - } project authorized within a
port district, subject to the stipulations of ORS 285A.666 to
285A.732.
(2) Any application for a loan under this section shall be in
such form as the commission prescribes and shall furnish such
proof of federal, state or local approval as appropriate for
funding of the { - port development - } project.
(3) The total amount of moneys loaned from the fund for
federal, state or local joint { - port development - } project
purposes shall not exceed $700,000 per project.
SECTION 19. ORS 285A.708 is amended to read:
285A.708. (1) There is created within the State Treasury a
revolving fund known as the Oregon Port Revolving Fund, separate
and distinct from the General Fund. Moneys in this fund are
continuously appropriated to the Oregon Economic and Community
Development Commission for the following purposes:
(a) Administrative expenses of the commission in processing
applications and investigating proposed { - port
development - } projects.
(b) Payment of loans to port districts pursuant to ORS 285A.666
to 285A.732.
(c) Administrative expenses of the Ports Division relating to
ports. In any one year, administrative expenses charged under
this paragraph may not be greater than the total revenues
received in that year from fees provided for in subsection (2)(a)
of this section, plus three percent of the total asset value of
the fund.
(2) The fund created by subsection (1) of this section shall
consist of:
(a) Application fees required by ORS 285A.672 (2).
(b) Repayment of moneys loaned to port districts or others from
the Oregon Port Revolving Fund, including interest on such
moneys.
(c) Payment of such moneys as may be appropriated to the fund
by the Legislative Assembly.
(d) Moneys obtained from any interest accrued from such funds.
(3) Outstanding debt on the fund shall not exceed 95 percent of
all deposits, accounts payable, and other assets of the fund.
(4) No money shall be expended from the Oregon Port Revolving
Fund for any economic development study costing more than $25,000
unless a work plan and budget for such study has been provided to
the Joint Legislative Committee on Trade and Economic
Development.
SECTION 20. ORS 285A.711 is amended to read:
285A.711. All payments, receipts and interest from outstanding
indebtedness shall be retained in the Oregon Port Revolving Fund
and accumulated for new project disbursal, and repayment of funds
allocated pursuant to section 25, chapter 838, Oregon Laws 1977.
All interest earnings of the fund from whatever source shall be
retained and accumulated in the Oregon Port Revolving Fund and
shall be used for { - port development - } projects, and
repayment of funds allocated pursuant to section 25, chapter 838,
Oregon Laws 1977.
{ + NOTE: + } Sections 21 through 26 were deleted by
amendment. Subsequent sections were not renumbered.
SECTION 27. ORS 285B.410 is amended to read:
285B.410. As used in ORS 285B.410 to 285B.479, unless the
context requires otherwise:
{ - (1) 'Municipality' means a city, a county, a port
incorporated under ORS 777.010 and 777.050, the Port of Portland
created by ORS 778.010, a metropolitan service district organized
under ORS chapter 268, a domestic water supply district organized
under ORS chapter 264, a water authority or sanitary authority
organized under ORS 450.600 to 450.989, a water improvement
district organized under ORS chapter 552, a water control
district organized under ORS chapter 553, a sanitary district
organized under ORS 450.005 to 450.245, a county service district
organized under ORS chapter 451 or a tribal council of an Indian
tribe in this state. - }
{ + (1) 'Community facilities' means municipal facilities
that assist the economic and community development of the
municipality, as specified in rules adopted by the Economic and
Community Development Department, whether operated by the
municipality or by a person under a management contract or an
operating agreement with the municipality.
(2) 'Direct project management costs' means new expenses
incurred by a municipality solely to support, plan for and manage
an infrastructure project, funded in whole or in part through
financial assistance under ORS 285B.410 to 285B.479, during the
planning and construction phases of the project. + }
{ - (2) - } { + (3) + } 'Infrastructure project' means:
(a) A project for the construction of sewage treatment works,
solid waste disposal sites, water supply works, roads, public
transportation, railroad industrial spurs or sidings { + ,
telecommunications infrastructure + } or other facilities that
comprise the physical foundation for industrial and commercial
activity. The costs of property acquisition directly related to
the infrastructure project and acquisition of easements or rights
of way necessary to accomplish construction of the infrastructure
project are eligible for assistance under ORS 285B.410 to
285B.479. The costs of activities related to performing an
environmental evaluation of a brownfield are eligible for
assistance under ORS 285B.416 (2) and 285B.455 (5). Purchases of
off-site property for project-related purposes such as wetland
mitigation or other uses not directly related to the
infrastructure are not eligible for assistance. As used in this
paragraph, 'brownfield' and 'environmental evaluation' have the
meanings given those terms respectively in ORS 285A.185 and
285A.188.
(b) A project, in consultation with the Department of
Transportation and other affected agencies, for the acquisition,
reconstruction or rehabilitation of an abandoned railroad line or
railroad line that has been designated by the owner and operator
thereof as subject to abandonment within a three-year period
pursuant to federal law and regulations governing abandonment of
common carrier railroad lines. The project may include operation
or maintenance costs if the project also includes acquisition,
reconstruction or rehabilitation.
(c) A safe drinking water project, in consultation with the
Water Resources Department, the Health Division of the Department
of Human Services or the Department of Land Conservation and
Development, for improving a drinking water system for the
purpose of achieving or maintaining compliance with applicable
state or federal drinking water quality regulations.
(d) A project for the acquisition, construction or development
of community facilities, including the acquisition of land, the
construction, acquisition, renovation or reconstruction of
buildings, structures and other real property and the acquisition
or construction of related equipment and fixtures.
{ - ' Community facilities' includes facilities that are owned
by a municipality and are operated by either the municipality or
a person under a management contract or operating agreement with
the municipality. - }
{ + (4) 'Municipality' means a city, a county, the Port of
Portland created by ORS 778.010, a county service district
organized under ORS chapter 451, a tribal council of an Indian
tribe in this state or a district as defined in ORS 198.010.
(5) 'Nonurban infrastructure projects' includes all those
projects which do not meet the definition of urban infrastructure
projects. + }
{ - (3) - } { + (6) + } 'Public transportation' includes
public depots, public parking, public docks, public wharves,
railroads and airport facilities.
{ - (4) - } { + (7) + } 'Roads' includes:
(a) Ways described as streets, highways, throughways or alleys;
(b) Road related structures that are in the right of way such
as tunnels, culverts or similar structures; and
(c) Structures that provide for continuity of the right of way
such as bridges.
{ - (5) - } { + (8) + } 'Sewage treatment works' includes
all facilities necessary for collecting, pumping, treating and
disposing of sanitary or storm sewage.
{ - (6) - } { + (9) + } 'Solid waste disposal site' has the
meaning given to the term 'disposal site' by ORS 459.005.
{ + (10) 'Telecommunications infrastructure' means real or
personal property, structures or equipment constructed, used or
configured for the electronic transmission or receipt of voice,
data, text, images or video between sites and facilities.
(11) 'Urban infrastructure projects' includes all those
projects located in whole or in part within the acknowledged
Portland Metropolitan Area Regional Urban Growth Boundary, and
the acknowledged urban growth boundaries of the cities of Eugene,
Springfield, Salem, Keizer or Medford or projects that will
principally benefit these areas. The Director of the Economic and
Community Development Department is authorized to resolve
situations left in question by this definition. + }
{ - (7) - } { + (12) + } 'Water supply works' includes all
facilities necessary for tapping natural sources of domestic and
industrial water, treating and protecting the quality of the
water and transmitting it to the point of sale to any public or
private agency for domestic, municipal and industrial water
supply service.
{ - (8) 'Urban infrastructure projects' includes all those
projects located in whole or in part within the acknowledged
Portland Metropolitan Area Regional Urban Growth Boundary, and
the acknowledged urban growth boundaries of the cities of Eugene,
Springfield, Salem, Keizer or Medford or projects that will
principally benefit these areas. The Director of the Economic and
Community Development Department is authorized to resolve
situations left in question by this definition. - }
{ - (9) 'Nonurban infrastructure projects' includes all those
projects which do not meet the definition of urban infrastructure
projects. - }
SECTION 27a. ORS 285B.413 is amended to read:
285B.413. (1) The Legislative Assembly finds that:
(a) The improvement, expansion and new construction of the
state's sewage treatment works, water supply works, { +
telecommunications infrastructure, + } roads and public
transportation
{ - provides - } { + provide + } the basic framework for
continuing and expanding economic activity in this state, thereby
providing jobs and economic opportunity for the people of Oregon.
(b) It is essential to maintain usable and developable
industrial and commercial lands in Oregon.
(2) Since municipalities in this state often suffer from a lack
of available financing { + and technical capacity + } for such
projects, it is the purpose of ORS 285B.410 to 285B.479 to
provide financial { + or other + } assistance in order that they
may construct, improve and repair those facilities that are
essential for supporting continuing and expanded economic
activity. It is the intent of the Legislative Assembly, by
providing that assistance, to stimulate industrial growth and
commercial enterprise and to promote employment opportunities in
Oregon.
(3) The money in the Special Public Works Fund shall be used
primarily to provide loans to municipalities for infrastructure
projects. Grants shall be given only when loans are not feasible
due to the economic need of the applicant municipality and
special circumstances of the project. The Director of the
Economic and Community Development Department is authorized to
determine the level of grant or loan funding, if any, on a
case-by-case basis.
SECTION 28. ORS 285B.416 is amended to read:
285B.416. (1) For purposes of ORS 285B.410 to 285B.479, the
total project costs of an infrastructure project may include
costs for preliminary planning or legal, fiscal and economic
investigations, reports and studies to determine the economic and
engineering feasibility of the project. { - Such planning - }
{ + These + } costs may be paid for with a loan or grant from
the Special Public Works Fund, by technical assistance grants or
loans awarded to eligible municipalities, or by a municipality
itself.
(2) The engineering and architectural reports, studies,
surveys, designs, plans, working drawings and
specifications { + , and the direct project management costs + }
necessary in the construction of the infrastructure project shall
be eligible for financial { + or other + } assistance under ORS
285B.410 to 285B.479. Proposals for technical assistance grants
shall be processed under ORS 285B.419, 285B.428 (2)(a), 285B.437
(2) and 285B.440 (2) in the same manner as other project
proposals.
SECTION 29. ORS 285B.419 is amended to read:
285B.419. (1) The Economic and Community Development Department
shall adopt rules and policies for the administration of the
Special Public Works Fund. Insofar as practicable, the
department's rules shall provide that infrastructure projects
that meet the following criteria receive priority for
{ - financial - } assistance:
(a) Provide for the establishment or enlargement of
economically viable industries, with reasonable long term growth
prospects, including opportunities for innovative new industries
or for continuance of existing basic industries.
(b) Result in a net benefit to the state in the long term and
not require continuing state subsidies.
(c) Utilize existing public and private assets, including
infrastructure, human resources and plant and equipment.
(d) Improve the conditions of the economically disadvantaged
and increase the number of jobs that increase average incomes.
(e) Support the development of businesses owned by women and
members of minority groups.
(f) Harness Oregon's comparative advantage with emphasis on the
growth and development of existing, in-state businesses,
especially small businesses.
(g) Direct assistance to projects that assist businesses
selling goods and services in markets for which national or
international competition exists and prohibit assistance to
infrastructure projects that primarily focus on relocating
business or economic activity from one part of the state to
another.
(h) Result in the economic revitalization of communities.
(i) Are funded and otherwise supported to the maximum extent
possible by private resources.
(j) Result in business growth or expansion which would not
occur in Oregon without an investment from the Special Public
Works Fund.
(2)(a) The Economic and Community Development Department shall
manage the Special Public Works Fund and any expenditures from
its accounts and transfers between its accounts so that the fund
value shall be equal to at least 50 percent of lottery revenues
actually transferred to the fund plus interest on such amounts
compounded annually at five percent. { - The fund value shall
be determined by summing the cash reserves and the outstanding
principal amount of loans to municipalities. Any principal
amounts of loans forgiven shall be subtracted from the value of
the fund. The value of the fund shall include moneys in the fund
that are pledged to the repayment of state bonds. - }
{ - (b) The department shall quarterly certify the value of
the fund to the State Treasurer. - }
{ - (c) - } { + (b) + } If necessary to { - insure - }
{ + ensure + } repayment of bonds issued under ORS 285B.410 to
285B.479, the Economic and Community Development Department is
authorized to reduce the value of the fund to less than the limit
provided in paragraph (a) of this subsection if the department:
(A) Finds that without such a reduction in fund value, bonds
secured by the fund are likely to be in default; and
(B) Imposes a moratorium on grants until the requirements of
paragraph (a) of this subsection are met.
(3) Not more than 100 percent of the total cost of any
infrastructure project shall be financed from the Special Public
Works Fund.
(4) The department may commit moneys in the Special Public
Works Fund or reserve future income to the fund for disbursal in
future years under ORS 285B.440 (4). The department shall commit
or reserve moneys under this subsection only after:
(a) Allowing for contingencies;
(b) Finding that there will be sufficient unobligated net
income to the fund to make such future payments. Such a finding
shall be based on financial plans which are consistent with the
financial requirements of subsections (2) and (4) of this
section; and
(c) Providing in any contract for such commitment that the
liability of the state to make such annual payments shall be
contingent on the availability of moneys in the Special Public
Works Fund.
(5) In assisting local governments with infrastructure
projects, the department shall cooperate to the maximum extent
possible with other state agencies financing infrastructure
projects, including but not limited to the Department of
Environmental Quality, the Water Resources Department and the
Department of Transportation.
(6) The department shall notify the Housing and Community
Services Department of any proposed Special Public Works Fund
project with a related workforce increase at the time the
department receives the completed application for the project.
SECTION 30. ORS 285B.422 is amended to read:
285B.422. (1) The Economic and Community Development Department
may provide financial { + or other + } assistance to
municipalities for infrastructure projects that are community
facilities projects as described in ORS 285B.410 { - (2)(d) - }
.
(2) Before providing financial assistance for a community
facilities project, the Economic and Community Development
Department must find that:
(a) The municipality has demonstrated that the community
facilities project will provide long term benefits to the
municipality;
(b) The community facilities project will benefit a broad
cross-section of the municipality;
(c) There is a substantial local commitment to the community
facilities to be financed; and
(d) There is a need for the proposed community facilities
project, and the municipality's financial resources are adequate
to provide the working capital needed to ensure success of the
project.
{ - (3) Notwithstanding any other provision of ORS 285B.410
to 285B.479, community facilities projects shall be eligible only
for loans made with moneys derived from the sale of revenue bonds
issued under ORS 285B.467 or for loans made from the Special
Public Works Fund. - }
{ + (3)(a) As provided in this subsection and ORS 285B.455
(5), but notwithstanding any other provision of ORS 285B.410 to
285B.479, community facilities projects are not eligible for
grants made from the Special Public Works Fund.
(b) Grants from the Special Public Works Fund may be made for a
community facilities project that is an essential community
facilities project, as determined in accordance with rules
adopted by the department after consultation with the League of
Oregon Cities, the Association of Oregon Counties, the Oregon
Public Ports Association and Special Districts Association of
Oregon. + } { - No grants shall be made from the Special Public
Works Fund for the costs of a community facilities project. - }
Loans or grants from the Special Public Works Fund and loans from
the proceeds of revenue bonds issued under ORS 285B.467 may be
used to pay issuance costs and for the funding of any debt
service reserve for any revenue bonds issued under ORS 285B.467
to finance community facilities.
{ + (c) The department shall determine the maximum amount of
a grant to a municipality from the Special Public Works Fund for
an essential community facilities project. However, a grant may
not exceed 85 percent of the total project costs. + }
(4) ORS 285B.413 (1) and (2), 285B.419 (1), { - 285B.434 (2),
(4) and (5), - } { + 285B.434 (2), (3), (4) and (5), 285B.443
(1)(b), + } 285B.464 and 285B.467 (2) and (8) do not apply to a
municipality applying for financial assistance for a community
facilities project.
SECTION 30a. ORS 285B.425 is amended to read:
285B.425. (1) There is established within the Special Public
Works Fund an account to be known as the Community Facilities
Account. All moneys in the Community Facilities Account are
continuously appropriated to the Economic and Community
Development Department for the purpose of providing
{ - financial - } assistance to municipalities for community
facilities projects.
(2) The Community Facilities Account shall consist of:
(a) Moneys appropriated to the Community Facilities Account by
the Legislative Assembly.
(b) Moneys transferred to the Community Facilities Account from
the federal government, other state agencies or local
governments.
(c) Repayment of financial assistance provided to
municipalities.
(d) Earnings on moneys in the Community Facilities Account.
(e) Any gifts or donations made to the State of Oregon for
deposit in the Community Facilities Account.
(3) Moneys in the Community Facilities Account shall be used to
provide financial { + or other + } assistance to municipalities
for community facilities projects by means of loans,
{ + grants, + } the purchase of the bonds or other obligations
of municipalities or the guaranty of all or any portion of the
obligations of a municipality that are issued to finance a
community facilities project { + , or by other means + }.
SECTION 30b. ORS 285B.428 is amended to read:
285B.428. (1) Any municipality may file an application with the
Economic and Community Development Department to obtain financial
{ + or other + } assistance from the Special Public Works Fund.
The application shall be filed in such manner and contain or be
accompanied by such information as the department may require.
(2) In addition to other requirements prescribed by the
department, an application filed under this section shall:
(a) Describe the nature and purposes of the proposed
infrastructure project, including the need for the project and
the reasons why the project is in the public interest.
(b) Set forth or be accompanied by a feasibility study of the
proposed infrastructure project and an estimate of the costs of
construction.
(c) State whether any moneys other than those in the Special
Public Works Fund are proposed to be used for the infrastructure
project and whether any other moneys are available or have been
sought for the project.
{ + (d) Provide, if assistance is to be used for
telecommunications infrastructure, a resolution, adopted by the
governing body of the municipality after a public hearing, that
includes findings and states that the proposed telecommunications
infrastructure project is necessary and would not otherwise be
provided by a for-profit entity within a reasonable time and for
a reasonable cost. + }
SECTION 30c. ORS 285B.434 is amended to read:
285B.434. The Economic and Community Development Department
shall not approve { - financial - } assistance from the
Special Public Works Fund for an infrastructure project proposed
in an application filed under ORS 285B.428 unless, after
investigation, the department finds that:
(1) The proposed infrastructure project is feasible, and the
municipality has certified to the department that there will be
adequate funds available to repay any loans made to the
municipality under ORS 285B.410 to 285B.479;
(2) The proposed infrastructure project is situated in an area
in which economic development is prevented or substantially
restricted by a lack of adequate sewage treatment works, solid
waste disposal sites, water supply works, { + telecommunications
infrastructure, + } roads, public transportation or other
facilities that comprise the physical foundation for industrial
and commercial activity;
(3) The proposed infrastructure project is situated in a city
or county with a comprehensive land use plan that allows
industrial and commercial development of a type and scale that is
sufficient to repay the costs of the project;
(4) A high probability exists for industrial or commercial
development, or both, of the properties served by the
infrastructure project;
(5) The municipality has provided as part of the security for
repayment of loans or bonds made available through ORS 285B.410
to 285B.479, provisions for payments from any owners of property
specially benefited by the infrastructure project which are
sufficient when considered with other security to assure
repayment of bonds and loans made available through ORS 285B.410
to 285B.479;
(6) Moneys in the appropriate accounts of the Special Public
Works Fund are or will be available for the infrastructure
project;
(7) The municipality is willing and able to enter into a
contract with the department for repayment as provided in ORS
285B.437 (1)(a) to { - (e) - } { + (d) + }; and
(8) The proposed infrastructure project is consistent with
rules adopted under ORS 285B.419.
SECTION 30d. ORS 285B.437 is amended to read:
285B.437. (1) If the Economic and Community Development
Department approves { - financial - } assistance from the
Special Public Works Fund for an infrastructure project, the
department, on behalf of the state, and the municipality may
enter into a contract, which shall set forth, among other
matters:
(a) An estimate of the reasonable cost of the infrastructure
project.
(b) An agreement by the municipality to proceed expeditiously
with, and complete, the project in accordance with plans reviewed
and approved by the department.
{ - (c) None of the financial assistance provided by the
state shall be used for administrative purposes by the
municipality. - }
{ - (d) - } { + (c) + } A statement that the liability of
the state under the contract is contingent upon the availability
of moneys in the Special Public Works Fund for use in the
infrastructure project.
{ - (e) - } { + (d) + } Such other provisions as the
department considers necessary to insure expenditure of the
moneys for the purposes set forth in the approved application.
(2) When the department approves financial assistance under ORS
285B.410 to 285B.479 for an infrastructure project, the
department shall pay moneys for the project from the Special
Public Works Fund in accordance with the terms of the contract.
(3) The department shall determine and approve a maximum amount
of a loan for an infrastructure project under ORS 285B.410 to
285B.479 based upon a reasonable and prudent expectation of the
municipality's ability to repay any amount borrowed.
SECTION 31. ORS 285B.443 is amended to read:
285B.443. (1) Any contract under ORS 285B.437 (1)(a) to
{ - (e) - } { + (d) + } that includes provisions for a loan of
state moneys to a municipality or the purchase of a bond of a
municipality by the state shall include a plan for repayment by
the municipality of moneys borrowed from the Special Public Works
Fund for an infrastructure project and interest on those moneys
at a rate specified in the contract. The repayment plan:
(a) Shall provide for such evidence of debt assurance of, and
security for, repayment by the municipality as is considered
necessary by the Economic and Community Development Department.
(b) Shall set forth the allocation of special assessments or
contractual responsibility among the owners of benefited
properties for repayment to the municipality of the amount of the
loan.
(c) Shall provide for repayment during a period which shall not
exceed the usable life of the proposed project or 25 years,
whichever is less.
(2) Notwithstanding any other provision of law, or any
restriction on indebtedness contained in a charter, a
municipality may borrow from the Special Public Works Fund by
entering into a loan contract with the Economic and Community
Development Department. The contract may be payable:
(a) From the revenues of any infrastructure project, including
special assessment revenues;
(b) From amounts withheld under ORS 285B.449 (1);
(c) From the general fund of the municipality;
(d) From any combination of paragraph (a), (b) or (c) of this
subsection; or
(e) From any other sources.
(3) The loan contracts under subsection (2) of this section
shall be authorized by an ordinance { + , order or resolution + }
{ - which is - } adopted with not less than 14 days' prior
notice. Notice shall be published at least once in a newspaper of
general circulation within the municipality.
SECTION 31a. ORS 285B.440 is amended to read:
285B.440. (1) The maximum amount of any grant to a municipality
made from the Special Public Works Fund under ORS 285B.419 shall
not exceed $1 million.
(2) No grant to a municipality shall be made for a project in
an amount that exceeds 85 percent of total project costs.
(3) The Economic and Community Development Department shall
develop standards for determining the maximum proportion of any
project which can be funded by grants. Such standards shall at a
minimum provide grants equaling a larger percentage of total
project costs for projects with greatest economic need.
(4) A grant contract under ORS 285B.437 (1)(a) to { - (e) - }
{ + (d) + } and this section may provide for grants on behalf of
the municipality on an annual basis in the form of partial
repayment to bondholders of amounts owed them. In such cases, the
contract shall provide that moneys are or will be available in
the Special Public Works Fund for such annual payments.
SECTION 31b. ORS 285B.452 is amended to read:
285B.452. In addition to making loans to municipalities for
infrastructure projects and purchasing debt obligations issued to
finance an infrastructure project, the Economic and Community
Development Department may provide any other form of
financial { + or other + } assistance that the department may
consider appropriate { - for the financing of - } { + to
assist municipalities with + } infrastructure projects { +
including the direct purchase by the department of goods or
services related to an infrastructure project + }.
SECTION 32. ORS 285B.455 is amended to read:
285B.455. (1) There is created the Special Public Works Fund,
separate and distinct from the General Fund. All moneys credited
to the Special Public Works Fund are appropriated continuously
and shall be used for the purposes outlined in ORS { + 285A.075
(9) and + } 285B.410 to 285B.479. There shall be credited to the
Special Public Works Fund, money appropriated to the fund by the
Legislative Assembly, earnings on the fund, repayment of
financial assistance and bond proceeds as authorized under ORS
285B.410 to 285B.479.
(2) Moneys in the Special Public Works Fund, with the approval
of the State Treasurer, may be invested as provided by ORS
293.701 to 293.820 and the earnings from such investments shall
be credited to the account in the Special Public Works Fund
designated by the Economic and Community Development Department.
(3) The Economic and Community Development Department shall be
the agency for the State of Oregon for the administration of the
Special Public Works Fund.
(4) The department may establish such other accounts within the
Special Public Works Fund for the payment of project costs,
reserves, debt service payments, credit enhancement,
administration and operation expenses or any other purpose
necessary to carry out ORS 285B.410 to 285B.479.
(5) Out of moneys in the Special Public Works Fund, the
department may make technical assistance grants and loans to
municipalities of less than 5,000 residents. A technical
assistance grant shall not exceed $10,000. A technical assistance
loan shall not exceed $20,000. No more than { - $250,000 - }
{ + $400,000 + } or one percent of the value of the fund,
whichever is less, shall be expended on technical assistance
grants and loans in any biennium.
SECTION 32a. ORS 285B.458 is amended to read:
285B.458. Not less than { - 33 - } { + 60 + } percent of
the funds disbursed from the { + Special Public Works + } Fund
shall be used to provide { - financial - } assistance to
{ + distressed area and + } nonurban infrastructure projects
{ - and not less than 33 percent shall be used to provide
financial assistance to urban infrastructure projects - } .
SECTION 33. ORS 285B.461 is amended to read:
285B.461. { + (1) + } Out of the moneys in the Special Public
Works Fund the Economic and Community Development Department may
expend funds for the purposes of administering ORS 285B.410 to
285B.479. Administrative expenses of the department { - , - }
that are paid from the Special Public Works Fund { - , shall - }
{ + may + } not exceed four percent of the { - moneys
allocated to the fund in any biennium - } { + total assets of
the fund reduced by the bonded debt liabilities in any one
year + }.
{ + (2) + } As used in this section, 'administrative expenses
' includes the department's costs for { + :
(a) + } Investigating, approving and monitoring municipalities
that apply for { - funding of - } { + assistance for + }
infrastructure projects and servicing and collecting outstanding
loans and grants made to municipalities { + ; and
(b) Contracting for planning and technical assistance and other
support services for municipalities + }.
SECTION 34. ORS 285B.467 is amended to read:
285B.467. (1) The Economic and Community Development Department
shall adopt by rule standards by which to determine the
eligibility for revenue bond financing under ORS 285B.467 to
285B.479 of infrastructure projects that have qualified under ORS
285B.419 to 285B.437 and 285B.449.
(2) In adopting rules establishing guidelines or criteria for
awarding loans or grants for drinking water projects, the
department shall coordinate the department's rulemaking process
with the Water Resources Department and the Health Division of
the Department of Human Services in order to assure that rules
adopted under this subsection are consistent with rules adopted
under ORS 431.120 and 541.845. The rules adopted under this
subsection shall:
(a) Require the installation of meters on all new service
connections to any distribution lines funded under ORS 285B.410,
285B.461, 285B.560 to 285B.599, 431.120, 541.700, 541.705,
541.755, 541.765, 541.830, 541.845 and this section; and
(b) Require a plan, to be adopted by the municipality, for
installation of meters on all service connections throughout the
drinking water system.
(3) Upon determining an infrastructure project eligible for
revenue bond financing under ORS 285B.467 to 285B.479, the
department shall forward the application to the State Treasurer,
who shall determine whether to issue revenue bonds.
(4) Notwithstanding ORS 285B.410 { - (2)(a) - }
{ + (3)(a) + } and 285B.416 (1), when an infrastructure project
is determined to be eligible for revenue bond financing under ORS
285B.467 to 285B.479, { + direct project management costs
and + } the costs for preliminary planning or legal, fiscal and
economic investigations, reports and studies to determine the
economic and engineering feasibility of the project are included
within the total project costs of the project and may be paid
from bond proceeds.
(5) Administrative expenses of the department in processing
applications and investigating proposed infrastructure projects
and bond sales shall not be derived from bond proceeds.
(6) The department may pledge all or any portion of the
existing or future assets and receipts of the Special Public
Works Fund to pay debt service on bonds issued pursuant to ORS
285B.410 to 285B.479. Such pledge shall take effect immediately,
without delivery of the pledged funds to third parties, and the
lien of the pledge shall be superior to all other liens of any
nature.
(7) The department is authorized to establish separate accounts
within the fund for separate bond issues.
(8) As used in this section, 'service connection' does not
include fire hydrants, fire sprinkler system connections, line
blow-offs and drains, stand-by emergency interties, valve
controlled drinking fountains and other similar intermittently
used connections.
SECTION 35. ORS 285B.479 is amended to read:
285B.479. (1) Revenue bonds issued under ORS 285B.467 to
285B.479:
(a) Shall not be payable from nor charged upon any funds other
than the revenue pledged to the payment thereof, except as
provided in this section, nor shall the state be subject to any
liability thereon. No holder or holders of such bonds shall ever
have the right to compel any exercise of the taxing power of the
state to pay any such bonds or the interest thereon, nor to
enforce payment thereof against any property of the state except
those moneys pledged therefor in the Special Public Works Fund,
under the provisions of ORS 285B.467 to 285B.479.
(b) Shall not constitute a charge, lien or encumbrance, legal
or equitable, upon any property of the state, except those moneys
paid to the Special Public Works Fund.
{ - (c) Shall not exceed, for all bonds outstanding, a total
principal amount of $200 million. - }
(2) { - No - } { + A + } bond shall { + not + } constitute
a debt of the state or a lending of the credit of the state
within the meaning of any constitutional or statutory limitation.
SECTION 36. ORS 285B.560 is amended to read:
285B.560. As used in ORS 285B.560 to 285B.599:
(1) 'Department' means the Economic and Community Development
Department.
{ + (2) 'Direct project management costs' means new expenses
incurred by a municipality solely to support, plan for and manage
an infrastructure project, funded in whole or in part through
financial assistance under ORS 285B.560 to 285B.599, during the
planning and construction phases of the project. + }
{ - (2) - } { + (3) + } 'Fund' means the Water Fund.
{ - (3) - } { + (4) + } 'Municipality' has the meaning
given that term in ORS 285B.410.
{ - (4) - } { + (5) + } 'Safe drinking water project' means
a project for constructing or improving a drinking water system
or a water development project, as defined in ORS 541.700 (6)(a),
(b) and (d) to (f), that is owned and operated by a municipality.
{ - (5) - } { + (6) + } 'Waste water system improvement
project' means a project for constructing or improving a system
for waste water collection or treatment, including storm drainage
systems.
{ - (6) - } { + (7) + } 'Water project' means a safe
drinking water project or a waste water system improvement
project.
SECTION 37. ORS 285B.563 is amended to read:
285B.563. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Water Fund. All
moneys in the fund are continuously appropriated to the Economic
and Community Development Department to provide financing for
water projects { + , as described in ORS 285B.560 to 285B.599,
including the direct project management costs and for the purpose
specified in ORS 285A.075 (9) + }.
(2)(a) Moneys in the Water Fund may be obligated to water
projects.
(b) Moneys shall be used primarily to make loans to
municipalities. The department may make a loan only if:
(A) The municipality applying for the loan certifies to the
department that adequate funds will be available to repay the
loan; and
(B) The department determines that the amount of the loan
applied for is based on a reasonable and prudent expectation of
the municipality's ability to repay the loan.
(c) The department may award a grant only if a loan is not
feasible due to:
(A) Financial hardship to the municipality, as determined by
the department, based on consideration of anticipated water
service charges or anticipated waste water service charges that
exceed the statewide average for such charges, the per capita
income of the municipality and such other factors as the
department by rule may establish; and
(B) Special circumstances of the water project.
(d) The department may determine the amount of grant or loan
funding on a case-by-case basis.
(3) The moneys in the fund may also be used to assist the
department in selling revenue bonds on behalf of municipalities
in order to carry out the purposes of ORS 285B.560 to 285B.599.
(4) With the approval of the State Treasurer, moneys in the
Water Fund may be invested as provided by ORS 293.701 to 293.820.
The earnings from such investments and other program income shall
be credited to the Water Fund.
(5) The Water Fund shall consist of:
(a) Moneys appropriated to the fund by the Legislative
Assembly.
(b) Moneys transferred to the fund by the Economic and
Community Development Department from the Special Public Works
Fund created by ORS 285B.455.
(c) Moneys transferred to the fund by the Water Resources
Commission from the Water Development Fund created by Article
XI-I(1) of the Oregon Constitution.
(d) Moneys from any federal, state or other grants.
(e) Proceeds of revenue bonds issued under ORS 285B.575.
(f) Earnings on the fund.
(6) The department shall administer the fund.
(7) The department shall adopt rules and policies for the
administration of the fund. The department shall coordinate its
rulemaking regarding safe drinking water projects with the Water
Resources Department and the Health Division of the Department of
Human Services. The rules adopted under this subsection for safe
drinking water projects shall:
(a) Require the installation of meters on all new service
connections to any distribution lines funded with moneys from the
fund or from the proceeds of revenue bonds issued under ORS
285B.572 to 285B.578.
(b) Require a plan, to be adopted by a municipality receiving
financial assistance from the fund, for installation of meters on
all service connections throughout the drinking water system not
later than two years after the completion of a safe drinking
water project.
(8)(a) The Economic and Community Development Department shall
manage the Water Fund and any expenditures from accounts in the
fund and transfers between accounts so that the fund value shall
be equal to at least 50 percent of lottery revenues actually
transferred to the fund plus interest on such amounts compounded
annually at five percent. { - The fund value shall be
determined by adding the cash reserves and the outstanding
principal amount of loans to municipalities. Any amount of loan
principal that is forgiven shall be subtracted from the value of
the fund. The value of the fund shall include moneys in the fund
that are pledged to the repayment of state bonds. - }
{ - (b) The department shall certify to the State Treasurer
in each quarter the value of the fund. - }
{ - (c) - } { + (b) + } If necessary to ensure repayment of
bonds issued under ORS 285B.560 to 285B.599, the department may
reduce the value of the fund to less than the limit established
in paragraph (a) of this subsection when the department:
(A) Finds that without such a reduction in fund value, bonds
secured by the fund are likely to be in default; and
(B) Imposes a moratorium on grants until the requirements of
paragraph (a) of this subsection are satisfied.
(9)(a) The department may charge administrative costs to the
fund, but not to moneys segregated in the account created by
subsection (11) of this section, to pay for administrative
expenses incurred by the department { + .
(b) As used in this section, 'administrative expenses '
includes:
(A) The direct and administrative costs of + } { - for - }
processing applications, investigating water projects, monitoring
recipients of financing for water projects and servicing and
collecting outstanding financial awards made for water
projects { + ; and
(B) The costs of contracting for planning and technical
assistance services and other support services for
municipalities + }.
{ - (b) - } { + (c) + } To the extent permitted by federal
law, administrative expenses of the department as limited in
{ - paragraph (a) of - } this subsection that are paid from the
fund shall not exceed four percent of the { - moneys allocated
to the fund in any biennium - } { + total assets of the fund
reduced by the bonded debt liabilities in any one year + }.
Administrative expenses of the department as limited in
{ - paragraph (a) of - } this subsection may be paid from bond
proceeds.
(10) The department may establish other accounts within the
Water Fund for the payment of water projects costs, reserves,
debt service payments, credit enhancements, costs of issuing
revenue bonds, administrative and operating expenses or any other
purpose necessary to carry out ORS 285B.560 to 285B.599.
(11) There is created within the Water Fund a separate and
distinct account for the proceeds from the sale of water
development general obligation bonds issued for safe drinking
water projects and credited to the special account under this
section. Any investment earnings thereon shall be segregated in
and continuously appropriated to a special, separately accounted
for subaccount of this account. Moneys credited to this account
shall be maintained separate and distinct from moneys credited to
subaccounts created under subsection (10) of this section.
Notwithstanding ORS 285B.566 or subsection (4) of this section,
all repayments of moneys loaned from the account created by this
subsection, including interest on such moneys, shall be credited
to the Water Development Administration and Bond Sinking Fund
created by ORS 541.830.
SECTION 38. ORS 285B.578 is amended to read:
285B.578. (1) Revenue bonds issued under ORS 285B.575:
(a) Shall not be payable from nor charged upon any fund other
than the revenue pledged to the payment of the revenue bonds,
except as provided in this section, nor shall the state be
subject to any liability on the bonds. No holder of revenue bonds
shall ever have the right to compel any exercise of the taxing
power of the state to pay any such bonds or the interest on the
bonds, nor to enforce payment of the bonds against any property
of the state except those moneys pledged in the Water Fund, under
the provisions of ORS 285B.560 to 285B.599.
(b) Shall not constitute a charge, lien or encumbrance, legal
or equitable, upon any property of the state, except those moneys
paid to the Water Fund.
{ - (c) Shall not exceed, for all bonds outstanding, a total
principal amount of $200 million. - }
(2) A revenue bond issued under ORS 285B.575 shall not
constitute a debt of the state or a lending of the credit of the
state within the meaning of any constitutional or statutory
limitation.
SECTION 39. ORS 285B.581 is amended to read:
285B.581. (1) Any loan of moneys to a municipality by the state
shall include a plan for repayment by the municipality of moneys
borrowed from the Water Fund for a water project and interest on
those moneys at a rate expressly specified. The repayment plan:
(a) Shall provide for such evidence of debt assurance of, and
security for, repayment by the municipality as is considered
necessary by the Economic and Community Development Department.
(b) May set forth the allocation of special assessments or
contractual responsibilities among the owners of benefited
properties for repayment to the municipality of the amount of the
loan.
(c) Shall provide for repayment during a period that shall not
exceed the usable life of the proposed project or 25 years,
whichever is less.
(2) Notwithstanding any other provision of law or any
restriction on indebtedness contained in a charter, a
municipality may borrow from the fund by entering into a loan
contract with the Economic and Community Development Department.
Moneys borrowed from the fund shall be repaid:
(a) From the revenues of any water project, including special
assessment revenues;
(b) From amounts withheld under ORS 285B.599;
(c) From the general fund of the municipality;
(d) From any combination of the provisions of paragraphs (a) to
(c) of this subsection; or
(e) From any other sources.
(3) A loan contract under subsection (2) of this section may
provide that a portion of the proceeds of the loan be applied to
fund a reserve fund to secure the repayment of the loan or secure
the repayment of revenue bonds issued to fund the loan.
(4) A loan contract under subsection (2) of this section shall
be authorized by an ordinance { + , order + } or resolution that
is adopted with prior notice of at least 14 days. Notice shall be
published at least once in a newspaper of general circulation
within the municipality.
SECTION 39a. ORS 285B.590 is amended to read:
285B.590. In addition to making loans to municipalities for
water projects, the Economic and Community Development Department
may provide any other form of financial { + or other + }
assistance that the department may consider appropriate { - for
the financing of - } { + to assist municipalities with + }
water projects { + , including direct purchase by the department
of goods and services related to a water project + }.
SECTION 39b. ORS 285B.596 is amended to read:
285B.596. Not less than { - 33 - } { + 60 + } percent of
the moneys appropriated to the Water Fund shall be used to
provide
{ - financial - } assistance to { + distressed area and + }
nonurban water projects { - and not less than 33 percent shall
be used to provide financial assistance to urban water
projects - } .
SECTION 39c. { + Section 39d of this 2001 Act is added to and
made a part of ORS 285B.650 to 285B.728. + }
SECTION 39d. { + (1) If an eligible business firm completes
the refurbishing, retrofitting or upgrading of real property,
machinery or equipment that is located within the enterprise
zone, but was idle during the 18 months immediately preceding the
first assessment year for which application for an enterprise
zone tax exemption is made with respect to the property, the
refurbished, retrofitted or upgraded real property, machinery or
equipment is qualified property under ORS 285B.713 and
potentially subject to enterprise zone tax exemption for all of
the property's value if the following requirements are satisfied:
(a) Prior to the period of idleness, the property was in use
within the enterprise zone for at least 12 consecutive months;
(b) The refurbishing, retrofitting or upgrading of the property
involved an investment of at least $3 million; and
(c) As a result of refurbishing, retrofitting or upgrading the
property, the value of the property is at least $25 million
higher than the assessed value for the tax year prior to the
first tax year of the enterprise zone tax exemption.
(2) The refurbishing, retrofitting or upgrading of real
property, machinery or equipment described in subsection (1) of
this section is a modification of property for purposes of ORS
285B.650 to 285B.728.
(3) ORS 285B.698 (5) does not apply to qualified property
described in subsection (1) of this section.
(4) ORS 285B.704 (1)(d) does not apply to a business firm
applying for or claiming an enterprise zone tax exemption for
qualified property described in subsection (1) of this section if
the provisions of ORS 285B.704 (2)(b) for zone sponsor approval
by resolution of the local governing body or bodies are
satisfied. + }
SECTION 39e. { + Section 39d of this 2001 Act applies only to
property for which application for an enterprise zone tax
exemption is made on or prior to April 1, 2004. + }
SECTION 39f. ORS 777.195 is amended to read:
777.195. A port may, for hire:
(1) Acquire, charter, own, { + lease, rent, dispose of, + }
maintain and operate { + towboats, barges and other + }
watercraft for the transportation of all kinds of merchandise,
freight and commercial or recreational passengers, and engage
generally in { - the coastwise - } { + maritime + } trade and
commerce, { - both domestic and foreign - } { + within or
without the boundaries of this state + }.
(2) Own, acquire, construct, operate and maintain railroad
terminal grounds and yards; and construct, operate and maintain
such line or lines of railroad, with necessary sidetrack,
turnouts, switches and connection and arrangements with other
common carriers, as may facilitate water commerce between common
carriers and points within the port; and carry and transport
freight and passengers and move passenger trains over the lines.
{ - (3) Acquire, own, lease, rent, operate, maintain and
dispose of towboats, barges and other vessels for the
transportation of cargo or passengers in maritime commerce on the
Columbia and Snake Rivers and their tributaries, within or
without the boundaries of this state. - }
{ - (4) - } { + (3) + } Acquire, own, lease, rent, operate,
maintain and dispose of unit trains and related facilities for
the transportation of bulk commodities to facilities within the
port from locations within or without the port.
SECTION 40. ORS 285A.090 is amended to read:
285A.090. The Economic and Community Development Department
shall:
(1) Implement programs consistent with policies of the Oregon
Economic and Community Development Commission.
(2) Provide field representatives in the various geographical
regions of the state. The field representatives shall be in the
unclassified service and shall receive such salary as may be set
by the Director of the Economic and Community Development
Department, unless otherwise provided by law. The field
representatives shall:
(a) Work with local units of government and the private sector
to encourage and to assist them as they establish and carry out
economic development plans and programs under ORS 280.500;
(b) Promote local awareness of department policy and department
programs and services and of assistance and economic incentives
available from government at all levels; and
(c) Deliver to local units of government and the private sector
the assistance and services available from the department,
including publications, research and technical and financial
assistance programs.
(3) Process requests received by state agencies and interested
parties for information pertaining to industrial and commercial
locations and relocations throughout the state.
(4) Consult and advise with, coordinate activities of, and give
technical assistance and encouragement to, state and local
organizations, including local development corporations, county,
city, and metropolitan-area committees, chambers of commerce,
labor organizations and similar agencies interested in obtaining
new industrial plants or commercial enterprises.
(5) Act as the state's official liaison agency between persons
interested in locating industrial or business firms in the state,
and state and local groups seeking new industry or business,
maintaining the confidential nature of the negotiations it
conducts as requested by persons contemplating location in the
state.
(6) Coordinate state and federal economic development programs.
(7) Consult and advise with, coordinate activities of, and give
technical assistance and encouragement to all parties including,
but not limited to, port districts within the state working in
the field of international trade or interested in promoting their
own trading activity.
(8) Provide advice and technical assistance to Oregon business
and labor.
(9) Collect and disseminate information regarding the
advantages of developing new business and expanding existing
business in the state.
(10) Aid local communities in planning for and obtaining new
business to locate therein and provide assistance in local
applications for federal development grants.
(11) Work actively to recruit domestic and international
business firms to those communities that desire such recruitment.
(12) In carrying out its duties under ORS chapters 285A and
285B and ORS 329.905 to 329.975, give priority to assisting small
businesses in this state by encouraging the creation of new
businesses, the expansion of existing businesses and the
retention of economically distressed businesses which are
economically viable.
(13) { - Provide managers and other employees for - } { +
Establish and operate + } foreign trade offices in those foreign
countries in which the department considers a foreign trade
office necessary { + using department employees, contracts with
public or private persons or a combination of department
employees and contractors + }. { - Managers and other - }
{ + Department + } employees { + , including managers, who are
assigned to work in a foreign trade office + } shall be in the
unclassified service, and the director shall set the salaries of
those persons. Foreign trade offices shall { + provide one or
more of the following services + }:
(a) Work with the private sector to assist them in finding
international markets for their goods and services;
(b) Work with local units of government to assist them in
locating foreign businesses within their jurisdiction;
(c) Promote awareness in foreign countries of department
policy, programs and services and of assistance and economic
incentives available from government at all levels; { - and - }
{ + or + }
(d) Provide { - all - } other assistance considered
necessary by the director.
SECTION 41. ORS 238.015 is amended to read:
238.015. (1) No person may become a member of the system unless
that person is in the service of a public employer and has
completed six months' service uninterrupted by more than 30
consecutive working days during the six months' period. Every
employee of a participating employer shall become a member of the
system at the beginning of the first full pay period of the
employee following the six months' period. All public employers
participating in the Public Employees Retirement System
established by chapter 401, Oregon Laws 1945, as amended, at the
time of repeal of that chapter, and all school districts of the
state, shall participate in, and their employees shall be members
of, the system, except as otherwise specifically provided by law.
(2) Any active member of the Public Employees Retirement System
who, through the annexation of a political subdivision employing
the member or by change of employment, becomes the employee of
another political subdivision which is participating in the
Public Employees Retirement System and has also a separate
retirement system for its employees, shall remain an active
member of the Public Employees Retirement System unless, within
60 days after the effective date of the annexation or change of
employment or April 8, 1953, the member shall by written notice
to the Public Employees Retirement Board and to the
administrative body of the new public employer elect to
relinquish membership in the Public Employees Retirement System
and become a member of the separate retirement system of the
employer, if eligible for membership in that retirement system,
and the member shall be so carried by the new employer.
Immediately upon such annexation of any political subdivision or
such change of employment, the new public employer shall inform
such employee in writing of the right of the employee to exercise
an election as in this section provided.
(3) A political subdivision (other than a school district) not
participating in the retirement system established by chapter
401, Oregon Laws 1945, as amended, which employs one or more
employees, each of whose position requires 600 hours of service
per year, or an agency created by two or more political
subdivisions to provide themselves governmental services, which
employs one or more employees, each of whose position requires
600 hours of service per year, may, through its governing body,
notify the board in writing, that it elects to include its
employees in the system hereby established. Such public employer
may request the board to make a study and estimate of the cost of
including it and its eligible employees, other than volunteer
firefighters, in the system, which the board thereupon shall
cause to be made and the cost of which the employer shall bear.
Upon completion of the study and estimate the employer may apply
for admission to the system, whereupon it shall begin to
participate therein and its eligible employees other than
volunteer firefighters shall become members of the system. If the
employer is an agency created by two or more political
subdivisions to provide themselves governmental services and
ceases thereafter to transmit to the board current service
contributions for any of its eligible employees, the benefits
based upon employer current service contributions to which such
employees would otherwise be entitled shall be reduced
accordingly.
(4) Except as subsection (7) of this section provides otherwise
with reference to volunteer firefighters, no employee whose
position with one public employer or concurrent positions with
two or more public employers normally require less than 600 hours
of service per year may become a member of the system.
(5) No inmate of a state institution or an alien on a training
or educational visa working for any participating employer, even
though the inmate or alien received compensation from a
participating employer, shall be eligible to become a member of
the system. No person employed by a participating employer and
defined by such employer as a student employee is eligible to
become a member of the system for such student employment.
(6) A person holding an elective office or an appointive office
with a fixed term or an office as head of a department to which
the person is appointed by the Governor may become a member of
the system by giving the board written notice of desire to do so
within 30 days after taking the office or, in the event that the
officer is not eligible to become a member of the system at the
time of taking the office, within 30 days after becoming so
eligible. Membership so established shall not be discontinued
during the appointive or elective term of the officer except upon
separation of the officer from service.
(7) A public employer employing volunteer firefighters may
apply to the board at any time for them to become members of the
system. Upon receiving the application the board shall fix a wage
at which, for purposes of this chapter only, they shall be
considered to be employed and which shall be the basis for
computing the amounts of the contributions which they pay into,
and of the benefits which they and their beneficiaries receive
from, the fund; and if the wage so fixed is satisfactory to the
employer, shall include the firefighters in the system.
(8)(a) In the event that an employee enters the service of a
public employer which is participating in or later begins to
participate in the system and in the event that at the time of
entering that service or at the time that the employer begins to
participate in the system the employee has commenced to purchase
and is continuing to purchase a retirement annuity, if the
employer deems the annuity adequate for the purposes of this
chapter it may enter into an agreement with the employee and the
board pursuant to which the employee may be exempted from
contributing to the Public Employees Retirement Fund, and, if no
public funds are being used to purchase the annuity or a
corresponding pension, the employer, in lieu of the contributions
which it otherwise would make to the fund on account of the
employee, may make contributions toward the cost of purchasing
the annuity. Such employee otherwise shall be subject to the
provisions of this chapter, except that neither the employee nor
any person claiming under the employee shall receive any payments
from the retirement fund as service or disability allowance.
(b) An employee who enters into an agreement under paragraph
(a) of this subsection may elect at any time thereafter to start
to participate in the system by giving written notice of desire
to participate to the board and to the employer. The employee
shall receive no retirement credit for the period during which
the employee was exempted from contributing to the fund under the
agreement, but the employee shall be considered to have completed
the six months' service required for membership in the system.
When the employee starts to participate in the system the
employer shall start to contribute to the fund on the account of
the employee in the same manner as the employer contributes on
the account of other employees who are active members of the
system and the employer shall stop making contributions toward
the cost of purchasing the retirement annuity.
(9)(a) All new appointees in the Federal Cooperative Extension
Service or in any other service in which participation in the
Federal Civil Service retirement program is mandatory, who
receive a federal appointment on or after July 1, 1955, may
participate in the Public Employees Retirement System only by
giving written notice of their election to so participate to the
Public Employees Retirement Board within six months after the
effective date of their appointment.
(b) All persons employed by the Federal Cooperative Extension
Service or by any other service in which participation in the
Federal Civil Service retirement program is mandatory, who are
under federal appointment as of July 1, 1955, and who are members
of the state retirement system, shall continue such membership
unless, prior to February 1, 1956, they give written notice to
the Public Employees Retirement Board of their desire to cancel
their membership.
(c) Any person who is an active member of the Public Employees
Retirement System, who, on or after July 1, 1955, is employed by
the Federal Cooperative Extension Service or by any other service
in which participation in the Federal Civil Service retirement
program is mandatory, and who is given a federal appointment,
shall continue such membership in the Public Employees Retirement
System unless, within six months after the effective date of the
appointment, the person gives written notice to the Public
Employees Retirement Board of the desire to cancel membership.
(d) A cancellation of membership under paragraph (b) or (c) of
this subsection terminates membership in the Public Employees
Retirement System and cancels the right to any benefits from, or
claims against, that system. Such cancellation prevents the
withdrawing member from claiming thereafter any retirement credit
for any period of employment before the cancellation. Upon
receipt of a notice of cancellation, the Public Employees
Retirement Board shall refund to the withdrawing member,
regardless of age, the account balance of the employee in the
retirement fund.
(10) { - Managers and other - } Employees { + , including
managers, + } of foreign trade offices of the Economic and
Community Development Department who live and perform services in
foreign countries under the provisions of ORS 285A.090 (13) shall
not be members of the system. However, any person who is an
active member of the system immediately before becoming { - a
manager or - } { + an + } employee of a foreign trade office
shall continue to be a member of the system during the period of
time the person serves as { - a manager or - } { + an + }
employee of the foreign trade office.
(11) An employee who is an employee of the Oregon Health
Sciences University may not be an active member of the Public
Employees Retirement System if that employee is participating in
an alternative retirement program established by the university
pursuant to ORS 353.250.
SECTION 42. ORS 240.205 is amended to read:
240.205. The unclassified service shall comprise:
(1) One executive officer and one secretary for each board or
commission, the members of which are elected officers or are
appointed by the Governor.
(2) The director of each department of state government, each
full-time salaried head of a state agency required by law to be
appointed by the Governor and each full-time salaried member of a
board or commission required by law to be appointed by the
Governor.
(3) The administrator of each division within a department of
state government required by law to be appointed by the director
of the department with the approval of the Governor.
(4) Principal assistants and deputies and one private secretary
for each executive or administrative officer specified in ORS
240.200 (1) and in subsections (1) to (3) of this section. '
Deputy' means the deputy or deputies to an executive or
administrative officer listed in subsections (1) to (3) of this
section who is authorized to exercise that officer's authority
upon absence of the officer. 'Principal assistant' means a
manager of a major agency organizational component who reports
directly to an executive or administrative officer listed in
subsections (1) to (3) of this section or deputy and who is
designated as such by that executive or administrative officer
with the approval of the Director of the Oregon Department of
Administrative Services.
(5) Employees in the Governor's office and the principal
assistant and private secretary in the Secretary of State's
division.
(6) The deans, professors, principals, instructors and teachers
in facilities operated under ORS 346.010.
(7) Apprentice trainees only during the prescribed length of
their course of training.
(8) Licensed physicians and dentists employed in their
professional capacities and student nurses, interns, and patient
or inmate help in state institutions.
(9) Lawyers employed in their professional capacities.
(10) All members of the Oregon State Police appointed under ORS
181.250 and 181.265.
(11) Deputy superintendents and associate superintendents in
the Department of Education.
(12) Temporary seasonal farm laborers engaged in single phases
of agricultural production or harvesting.
(13) Any individual employed and paid from federal funds
received under the Emergency Job and Unemployment Assistance Act
of 1974 (United States Public Law 93-567) or any other federal
program intended primarily to alleviate unemployment. However,
persons employed under this subsection shall be treated as
classified employees for purposes of ORS 243.650 to 243.782.
(14) Managers, department heads, directors, producers and
announcers of the state radio and television network.
(15) { - Managers and other - } Employees { + , including
managers, + } of the foreign trade offices of the Economic and
Community Development Department located outside the country.
(16) Any other position designated by law as unclassified.
SECTION 43. { + The amendments to ORS 285B.410 by section 27
of this 2001 Act apply to an application for infrastructure
assistance made on or after July 1, 2001. + }
SECTION 44. { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
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