72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 3039
A-Engrossed
House Bill 2011
Ordered by the House May 14
Including House Amendments dated May 14
Sponsored by COMMITTEE ON TRADE AND ECONOMIC DEVELOPMENT (at the
request of Speaker of the House Karen Minnis)
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.
Requires Oregon Economic and Community Development Commission
{ - and - } { + to develop mission statement for + } Economic
and Community Development Department { - to develop methods to
promote recruiting, retaining and expanding businesses, to
improve competitiveness of businesses and to study state's tax
structure and regulatory policies. - } { + that gives highest
priority to promoting job development in Oregon. Directs
commission to report annually to Governor and Legislative
Assembly on success of economic development efforts. Directs
department to assist businesses seeking to locate or expand in
regions of state.
Creates Governor's Council on Oregon's Economy to facilitate
economic development activities. + }
A BILL FOR AN ACT
Relating to economic development; creating new provisions; and
amending ORS 285A.050, 285A.090, 285A.095 and 285A.136.
Whereas over half of Oregon's counties are currently listed as
economically distressed; and
Whereas Oregon currently has the highest unemployment rate of
any state; and
Whereas the retention of existing jobs and the creation of new
jobs by existing businesses, as well as recruitment of new
employment opportunities to Oregon, are necessary for economic
prosperity; and
Whereas economic stimulus measures for reinvigorating and
reversing the recent downturn in Oregon's economy should be put
forward during the Seventy-second Legislative Assembly without
regard to political party affiliations in a collaborative manner;
and
Whereas economic health and viability depends on Oregon's
ability to improve the state's working environment and appeal to
the investment community for investments in Oregon; and
Whereas it is important for Oregon to be competitive with other
states; and
Whereas most Oregon businesses are small businesses, employing
fewer than 25 employees; and
Whereas public-private partnerships must be utilized to create
jobs and retain Oregon companies; and
Whereas a healthy infrastructure, including the utilization of
Oregon's ports, is critical to economic development in Oregon;
and
Whereas innovative ideas are a critical component for the
long-term economic viability of the state and a key component to
building a sustainable economy; and
Whereas successful economic development requires focusing on
the success of industrial, commercial and small businesses; and
Whereas activities that are intended to improve economic
development should be managed under a statewide framework while
maximizing local input and direction; now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + The Oregon Economic and Community Development
Commission shall develop a mission statement for the Economic and
Community Development Department that gives the highest priority
to promoting job development in Oregon by:
(1) Assisting existing companies that desire to expand;
(2) Assisting existing companies that desire to develop new
products;
(3) Promoting the commercialization of technology developed at
colleges and universities in Oregon;
(4) Recruiting businesses in targeted industries to locate in
Oregon; and
(5) Providing assistance to communities for local economic
development efforts. + }
SECTION 2. { + The Oregon Economic and Community Development
Commission shall recommend legislation to the Seventy-third
Legislative Assembly to modify ORS 285A.090 to reflect the
priorities established under section 1 of this 2003 Act. + }
SECTION 3. { + (1) There is established the Governor's Council
on Oregon's Economy.
(2) The members of the council are:
(a) The presiding officer of the Oregon Economic and Community
Development Commission;
(b) The chairperson of the Oregon Transportation Commission;
(c) The chairperson of the State Board of Agriculture;
(d) The chairperson of the International Trade Commission;
(e) The chairperson of the Oregon Council for Knowledge and
Economic Development;
(f) The president of the State Board of Higher Education; and
(g) Other persons designated by the Governor.
(3) The council shall meet quarterly to:
(a) Discuss and coordinate the activities of each entity
described in subsection (2) of this section that relate to
economic development and improving the economy in Oregon; and
(b) Discuss and recommend to the Legislative Assembly methods
for creating certainty for the development process. These
recommendations must include:
(A) Methods for establishing clear and objective standards for
approval processes used by local and state government; and
(B) Proposed changes to existing statutes and rules that hinder
project approval. + }
SECTION 4. { + (1) The Oregon Economic and Community
Development Commission shall establish regions for the purpose of
job development and community assistance. When establishing the
regions, the commission must consider the optimal size for each
region that will most effectively facilitate economic development
activities in the region. Regions established by the commission
do not have to be of the same size or population.
(2) The Director of the Economic and Community Development
Department shall provide for economic innovation coordination in
the central office, which shall assist the field representatives
in:
(a) Establishing contacts between local businesses and
universities and community colleges in Oregon to promote the use
of the research capacities of these institutions for development
of new products; and
(b) Serving as a liaison between the clients of the Economic
and Community Development Department and the Oregon Council for
Knowledge and Economic Development to promote effective linkage
between regional economic development efforts and technological
advances in Oregon. + }
SECTION 5. { + The Legislative Assembly declares that a
significant purpose of the strategic investment program
established in ORS 285B.383, 285B.386 and 307.123 is to improve
employment in areas where eligible projects are to be located and
urges business firms that will benefit from an eligible project
to hire employees from the region in which the eligible project
is to be located whenever practicable. + }
SECTION 6. ORS 285A.050 is amended to read:
285A.050. (1) The Oregon Economic and Community Development
Commission shall report { - biennially - } { + annually + }
to the Governor and the Legislative Assembly on the success of
economic development efforts. The report, at a minimum, shall
include the following:
(a) For the overall Economic and Community Development
Department effort and for each identifiable program and
significant project or service:
(A) The impact of that program on the competitiveness of traded
sector industries and the skill levels of the Oregon workforce;
(B) The impact on the number of jobs, including jobs created
and retained;
(C) The impact on the wage levels of Oregon workers, including
increases in wage levels;
(D) The actual or anticipated impact of public investments at
all levels, in terms of measurable outcomes wherever possible;
and
(E) The impact of that program on the Internet-based entities
and employees in Oregon.
(b) The status of the Oregon economy related to:
(A) Changes in employment and wage levels in Oregon industries;
(B) Changes in employment, wage levels and competitiveness of
traded sector industries; and
(C) Barriers that have been identified as impeding business
competitiveness and productivity in this state.
(c) Progress made toward achievement of the Oregon Benchmarks.
(d) Recommendations for removing identified barriers and
additional suggestions for improving the performance of Oregon's
economy.
(e) Recommendations on this state's investment in its public
ports, on this state's response to policy issues that affect
ports and for the strategic development of port facilities that
promote maritime commerce, recreational opportunities and the
economy of Oregon.
(f) Progress made toward elimination of economically distressed
areas of this state.
(g) Recommendations regarding improving the international
competitiveness of Oregon.
(h) Progress made in serving microenterprise businesses and
recommendations for increasing the success of microenterprises.
(2) Whenever a power is granted to the commission, the power
may be exercised by such officers, employees or
commission-appointed committees as are designated in writing by
the commission.
{ + (3) Reports to the Legislative Assembly required under
this section shall be made in accordance with ORS 192.245. + }
SECTION 7. 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) Serve as internal advocates and centralized contacts
within state government for businesses seeking to locate or
expand in the region and shall guide the businesses through all
required processes with state regulatory agencies and local units
of government to facilitate and expedite siting or expansion of
the businesses within the businesses' budgets and in an
economically viable manner;
(b) Seek assistance and direction for resolving delays for a
project from the Governor or a designee of the Governor when a
project has been unreasonably delayed by governmental action; + }
{ - (a) - } { + (c) + } 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 - }
{ + (d) Establish links with and act as liaisons between
businesses seeking to locate or expand in the region and
resources within the public and private institutions of higher
education in Oregon familiar with technological advancements and
grant opportunities;
(e) Serve as liaisons between businesses seeking to locate or
expand in the region and appropriate governmental, university,
community college and industry representatives to assist and
partner with the businesses in their developmental efforts;
(f) Assemble regional rapid response teams that include
regional departmental staff and representatives of local
governments in the region to work with businesses seeking to
locate or expand in the region by facilitating developmental
procedures and eliminating obstacles to completion of projects;
(g) Assign specific responsibilities for and monitor progress
of rapid response team members toward completion of tasks
essential to the achievement of a successful outcome of a project
for all parties involved;
(h) Coordinate client meetings with members of rapid response
teams to establish and monitor the adherence to developmental
timelines and to ensure client satisfaction with services
provided; + }
{ - (c) - } { + (i) + } 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 { - . - } { + ;
and
(j) Promote local awareness of department policy and department
programs and services and of assistance and economic incentives
available from government at all levels. + }
(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) 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. 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; or
(d) Provide other assistance considered necessary by the
director.
SECTION 8. ORS 285A.095 is amended to read:
285A.095. (1) When providing funding for a project, for a
program or for technical assistance, the Economic and Community
Development Department shall give priority to counties, cities,
communities or other geographic areas that are designated as
distressed areas by the Economic and Community Development
Department, based on indicators of economic distress or
dislocation, including but not limited to unemployment, poverty
and job loss.
(2) Prior to defining or designating distressed areas for the
purposes of subsection (1) of this section, the Economic and
Community Development Department shall consult with other state
agencies and with local agencies and officials.
(3) The Economic and Community Development Department shall
conduct a review of its compliance with subsections (1) and (2)
of this section at least once in each year and shall prepare a
report concerning the compliance review. The report shall be
incorporated into the { - biennial - } { + annual + } report
of the Oregon Economic and Community Development Commission
required by ORS 285A.050.
SECTION 9. ORS 285A.136 is amended to read:
285A.136. The International Trade Commission shall prepare and
submit to the Governor and to the Legislative Assembly a biennial
report on January 15, 1999, and on January 15 of every other year
thereafter. The report shall be incorporated into the
{ - biennial - } { + annual + } report of the Oregon Economic
and Community Development Commission required by ORS 285A.050.
The report required by this section shall include, but not be
limited to, the following:
(1) A description of the activities of the International Trade
Commission during the two-year reporting period.
(2) Information and data on relevant trade patterns and trends.
(3) Recommendations, including long-range strategic plans and
legislative proposals.
(4) An action agenda for the subsequent two years.
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