Chapter 683 Oregon Laws 2005

AN ACT

SB 173

Relating to state program for small business; creating new provisions; amending ORS 200.005, 200.025, 200.160, 200.170, 200.180 and 200.190; repealing ORS 200.150; and appropriating money.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Section 2 of this 2005 Act is added to and made a part of ORS 200.005 to 200.075.

SECTION 2. (1) A business may be certified as an emerging small business by the Department of Consumer and Business Services for up to 12 years and may be:

(a) Designated a tier one firm for up to six years unless the business no longer qualifies as a tier one firm.

(b) Designated a tier two firm for up to six years unless the business no longer qualifies as a tier two firm.

(2) The department shall adjust annually the amount of the average annual gross receipts required to qualify as a tier one firm or a tier two firm using the most recent three-year average of the Portland-Salem Consumer Price Index for All Urban Consumers for All Items, as reported by the United States Bureau of Labor Statistics.

(3) Notwithstanding the time limits established by subsection (1) of this section, if a tier one firm provides compelling information showing, in the judgment of the Department of Consumer and Business Services, that the firm has not been afforded an opportunity to bid on emerging small business projects during a year of eligibility, the department shall extend the tier one designation of the firm for one year. A tier one firm may receive the extension described in this subsection only once.

SECTION 3. On or before June 30, 2006, a business previously certified as an emerging small business may be recertified as an emerging small business if the business still qualifies as an emerging small business and has eligibility remaining under section 2 of this 2005 Act.

SECTION 4. ORS 200.005 is amended to read:

200.005. As used in ORS 200.005 to 200.075, 200.150 to200.200 and 279.059:

(1) “Disadvantaged business enterprise” means a small business concern [which]:

(a) That is at least 51 percent owned by one or more socially and economically disadvantaged individuals[, or,]; or

(b) For which, in the case of [any] a corporation, at least 51 percent of the stock [of which] is owned by one or more socially and economically disadvantaged individuals, and [whose] of which the management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

(2) “Economically disadvantaged individual” means [an] a socially disadvantaged individual [who is socially disadvantaged and] whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to [another] other individuals in the same business area who [is] are not socially disadvantaged individuals.

(3) “Emerging small business” means an independent business:

(a) [A business] With its principal place of business located in this state;

[(b) A business with average annual gross receipts over the last three years not exceeding $1 million for construction firms and $300,000 for nonconstruction firms;]

[(c) A business which has fewer than 20 employees;]

[(d) An independent business; and]

[(e) A business properly licensed and legally registered in this state.]

(b) That qualifies as a tier one firm or a tier two firm;

(c) That is properly licensed and legally registered in this state; and

(d) That is not a subsidiary or parent company belonging to a group of firms that are owned or controlled by the same individuals if, in the aggregate, the group of firms does not qualify as a tier one firm or a tier two firm.

[(4) “Emerging small business” does not mean a subsidiary or parent company belonging to a group of firms which are owned and controlled by the same individuals which have aggregate annual gross receipts in excess of $1 million for construction or $300,000 for nonconstruction firms over the last three years.]

[(5) A business may be certified as an emerging small business for no more than seven years.]

[(6) “Minority or women business enterprise” means a small business concern which is at least 51 percent owned by one or more minorities or women, or in the case of a corporation, at least 51 percent of the stock of which is owned by one or more minorities or women, and whose management and daily business operations are controlled by one or more of such individuals.]

[(7)] (4) “Minority individual” means a person who is a citizen or lawful permanent resident of the United States, who is:

(a) Black, [who is a person] having origins in any of the black racial groups of Africa;

(b) Hispanic, [who is a person of] having Mexican, Puerto Rican, Cuban, Central or South American or other Spanish culture or origin, regardless of race;

(c) Asian American, [who is a person] having origins in any of the original peoples of the Far East, Southeast Asia, the Indian subcontinent or the Pacific Islands;

(d) Portuguese, [who is a person of] having Portuguese, Brazilian or other Portuguese culture or origin, regardless of race;

(e) American Indian or Alaskan Native, [who is a person] having origins in any of the original peoples of North America; or

(f) A member of another group, or another individual who is socially and economically disadvantaged as determined by the Advocate for Minority, Women and Emerging Small Business.

(5) “Minority or women business enterprise” means a small business concern:

(a) That is at least 51 percent owned by one or more minority individuals or women; or

(b) For which, in the case of a corporation, at least 51 percent of the stock is owned by one or more individuals who are minority individuals or women, and of which the management and daily business operations are controlled by one or more of the minority individuals or women who own it.

(6) “Responsible bidder” means a bidder who, as determined by the Advocate for Minority, Women and Emerging Small Business, has undertaken both a policy and practice of actively pursuing participation by minority or women business enterprises in all bids, both public and private, submitted by such the bidder.

[(8)] (7) “Small business concern” means a small business as defined by the United States Small Business Administration [per C.F.R. 121, as amended] in 13 C.F.R. part 121.

[(9)] (8) “Socially disadvantaged individual” means an individual who has been subjected to racial or ethnic prejudice or cultural bias, without regard to individual qualities, because of the individual’s identity as a member of a group.

(9) “Tier one firm” means a business that employs fewer than 20 full-time equivalent employees and has average annual gross receipts for the last three years that do not exceed $1.5 million for a business performing construction, as defined in ORS 446.310, or $600,000 for a business not performing construction.

(10) “Tier two firm” means a business that employs fewer than 30 full-time equivalent employees and has average annual gross receipts for the last three years that do not exceed $3 million for a business performing construction, as defined in ORS 446.310, or $1 million for a business not performing construction.

[(10)] (11) “Woman” means a person of the female sex who is a citizen or lawful permanent resident of the United States.

[(11) “Responsible bidder” means one who, in the determination of the office of the Advocate for Minority, Women and Emerging Small Business, has undertaken both a policy and practice of actively pursuing participation by minority and women businesses in all bids, both public and private, submitted by such bidder.]

SECTION 5. ORS 200.005, as amended by section 213, chapter 794, Oregon Laws 2003, is amended to read:

200.005. As used in ORS 200.005 to 200.075, 200.150 to200.200 and 279A.105: