Chapter 804
AN ACT
SB 350
Relating to economic development; creating new provisions; amending ORS
184.632, 196.620, 238.015, 238A.005, 284.540, 284.706, 285A.010, 285A.020,
285A.040, 285A.045, 285A.050, 285A.055, 285A.070, 285A.075, 285A.188, 285A.206,
285A.224, 285A.227, 285A.340, 285A.346, 285A.349, 285A.600, 285A.603, 285A.615,
285A.627, 285A.654, 285A.657, 285A.660, 285A.666, 285A.708, 285A.709, 285B.050,
285B.053, 285B.056, 285B.059, 285B.062, 285B.083, 285B.089, 285B.092, 285B.093,
285B.123, 285B.126, 285B.129, 285B.132, 285B.135, 285B.138, 285B.147, 285B.165,
285B.168, 285B.174, 285B.178, 285B.179, 285B.200, 285B.203, 285B.206, 285B.209,
285B.215, 285B.218, 285B.230, 285B.236, 285B.239, 285B.242, 285B.245, 285B.260,
285B.263, 285B.264, 285B.320, 285B.323, 285B.326, 285B.329, 285B.410, 285B.440,
285B.455, 285B.482, 285B.551, 285B.563, 285B.740, 285B.743, 285B.746, 285B.749,
286.585, 777.760 and 777.953; repealing ORS 285A.085, 285A.090, 285A.095,
285A.100, 285A.105, 285A.110, 285A.112, 285A.114, 285A.125, 285A.131, 285A.133,
285A.136, 285A.139, 285A.141, 285A.203, 285A.209, 285A.606, 285A.609, 285A.612,
285A.618, 285A.624, 285A.630, 285A.633, 285B.071, 285B.074, 285B.077, 285B.095,
285B.139, 285B.144, 285B.150, 285B.159, 285B.162, 285B.166, 285B.183, 285B.212,
285B.254, 285B.257, 285B.332, 285B.752 and 285B.755 and sections 97 and 97a,
chapter 783, Oregon Laws 2007 (Enrolled House Bill 3265); appropriating money;
and declaring an emergency.
Be It Enacted by the People of
the State of
SECTION 1. ORS 285A.010 is amended to read:
285A.010. As used in ORS chapters 285A, 285B and 285C, unless the
context requires otherwise:
(1) “Commission” means
the Oregon Economic and Community Development Commission.
(2) “Community” means an
area or locality in which the body of inhabitants has common economic or
employment interests. The term is not limited to a city, county or other
political subdivision and need not, but may be, limited by political
boundaries.
(3) “Department” means
the Economic and Community Development Department.
(4) “Director” means the
Director of the Economic and Community Development Department.
(5) “Distressed area”
means a county, city, community or other geographic area that is designated as
a distressed area by the department, based on indicators of economic distress
or dislocation, including but not limited to unemployment, poverty and job
loss.
(6) “International trade”
means the export and import of products and services and the movement of
capital for the purpose of investment.
(7) “Rural area” means
an area located entirely outside of the acknowledged Portland Metropolitan Area
Regional Urban Growth Boundary and the acknowledged urban growth boundaries of
[the] cities with populations
of 30,000 or more [in population,
including Albany, Bend, Corvallis, Eugene, Springfield, Salem, Keizer or
Medford].
[(8) “Rural community” means a community located in a rural area.]
[(9)] (8) “Traded sector” means industries in which member
firms sell their goods or services into markets for which national or
international competition exists.
(9) “Small business”
means a business having 100 or fewer employees.
SECTION 2. ORS 285A.020 is amended to read:
285A.020. (1) The
Legislative Assembly finds that:
[(a)
[(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)
[(b)
[(c)
[(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.]
(a)
(A) Special heritage;
(B) Respect for and
cultivation of the environment; and
(C) Attention to quality
of life issues that are important to the state’s
economic development, including but not limited to access to quality,
affordable child care for all children in
(b)
(c) All regions of the
state should share in
(d) Creating and
retaining quality jobs is vital to the state’s
continued economic development.
(e)
(f) A well educated and
trained workforce is necessary to advance in today’s global economy.
(g) The ability of
existing businesses to grow and prosper is critical to
(h) Utilizing the state’s
competitive advantages is essential to retain existing businesses and attract
new companies and investment into the state.
(i) Continued economic
development depends on strengthening traded sector industries.
(j) International trade
development and promotion is invaluable for future economic development
opportunities.
(k) Small businesses
remain a critical element of the state’s economic development, comprising more
than 90 percent of
(L) Capacity building in
rural and distressed areas is a key component of economic development and
revitalization efforts.
(m)
(n) Improving and
enhancing infrastructure is necessary to the state’s future economic
development.
(o) Federal, state and
local agencies working together will continue to enhance industrial site
development and other economic development activities.
(p) The Economic and
Community Development Department should be encouraged to convene community
development partners to explore the prospect of making loans to private
industrial landowners from the Brownfields Redevelopment Fund for future
development opportunities.
[(3)] (2) It is the purpose of ORS chapters 285A, 285B and
285C to [promote the improvement of
(3) The Legislative
Assembly declares that it is the immediate economic strategy of the state to:
(a) Promote a favorable
investment climate to strengthen businesses, create jobs and raise real wages;
(b) Improve the national
and global competitiveness of
(c) Assist
(4) To [that
end] promote the advancement of the
(a) [Structures and processes for making public
investments and dealing with local and regional] Processes for making
public investments and working with local and regional issues must be
designed [flexibly] for
flexibility 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.]
(b) Partnerships among
local, state and federal governments and public and private organizations and
entities should be strengthened to further the economic strategy of the state.
(c) The expected impact
of public [investments at all levels
should be explicitly] investment and assistance shall be 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] community
partners, regions and state and local agencies to address and 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
[(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.]
(5) When the
department provides funds or assistance for projects, programs, technical
support or other authorized activities pursuant to ORS 329.905 to 329.975 and
ORS chapters 285A, 285B and 285C, the department shall give priority to
projects, programs and activities that:
(a) Retain and create
jobs and raise real wages;
(b) Promote capacity
building, emphasizing rural and distressed areas;
(c) Assist small
business creation and expansion;
(d) Invest and engage in
training a skilled workforce;
(e) Retain and expand
existing companies and recruit new investment to
(f) Capitalize on
(g) Support innovation
and research;
(h) Assist industry
clusters to succeed;
(i) Market
(j) Promote international
trade and attract foreign direct investment;
(k) Support the
development of industrial and commercial lands;
(L) Advance the efforts
of ports to promote economic development activities; and
(m) Build capacity in
SECTION 3. ORS 285A.040 is amended to read:
285A.040. (1) There is
established the Oregon Economic and Community Development Commission consisting
of [seven] nine members
appointed as follows:
(a) One nonvoting, ex
officio member appointed from among the members of the Senate by the President
of the Senate;
(b) One nonvoting, ex
officio member appointed from among the members of the House of Representatives
by the Speaker of the House of Representatives; and
(c) [Five] Seven members appointed by
the Governor, subject to confirmation by the Senate in the manner prescribed in
ORS 171.562 and 171.565. The Governor shall appoint members of the commission
in compliance with all of the following:
(A) Members shall be
appointed with [due] consideration
given to representation of the different geographic regions of the state, and
at least one member shall be a resident of the area east of the
(B) Not more than [three] five members [shall] may belong to one
political party. Party affiliation shall be determined by the appropriate entry
on official election registration cards.
(C) [At least one member shall be an individual
with substantial experience or training in international trade or an individual
who, at the time of appointment, is involved in international trade. The member’s
experience or involvement in international trade may include importing or
exporting goods into or from the State of
(i) International trade;
(ii) Small business
needs and issues;
(iii) Local government
needs and issues;
(iv)
Marketing and branding;
(v) Arts and culture;
(vi)
Finance;
(vii) Innovation;
(viii)
Telecommunications; or
(ix) Other areas of
training or expertise identified by the commission.
(2)(a) The term of
office of each member appointed by the Governor is four years, but a member
serves at the pleasure of the Governor. Before the expiration of the term of a
member appointed by the Governor, the Governor shall appoint a successor whose
term begins on July 1 [next following]
of the following year. A member appointed by the Governor is eligible for
reappointment. In case of a vacancy among the members appointed by the Governor
for any cause, the Governor shall appoint a person to fill the office for the
unexpired term.
(b) The term of office
of the member appointed by the President of the Senate is four years. In case of
a vacancy for any cause, the President of the Senate shall appoint a Senator to
fill the office for the unexpired term.
(c) The term of office
of the member appointed by the Speaker of the House of Representatives is two
years. In case of a vacancy for any cause, the Speaker of the House of
Representatives shall appoint a Representative to fill the office for the
unexpired term.
(3) A member of the
commission who is appointed by the Governor is entitled to compensation and
expenses as provided by ORS 292.495. Ex officio members of the commission
are prohibited from receiving compensation and reimbursement for expenses.
(4) Subject to
confirmation by the Senate, the Governor shall appoint one of the voting
commissioners as presiding officer of the commission. The presiding officer
shall have duties and powers as the commission determines are necessary for the
office.
(5) [Three] Five voting members of the
commission constitute a quorum for the transaction of business.
(6) The commission shall
meet at least quarterly at a time and place determined by the commission. The
commission shall also meet at [such]
other times and places as are specified by the call of the presiding officer or
by the call of a majority of the voting members of the commission.
(7) A vacancy among the
voting members of the commission does not impair the right of the remaining
voting commissioners to exercise all the powers of the commission. If the
remaining voting commissioners are unable to agree, the Governor shall have the
right to vote as a member of the commission.
SECTION 4. 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)] (3). [and that includes policies that:]
[(a) Maintain and create jobs that raise real wage levels of
[(b) Increase the skill levels of the
[(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
[(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
[(g) Encourage expansion of existing
[(h) Encourage investment in infrastructure projects, including
electronic, communications and financial resource projects,
that benefit Internet-based entities and employees and encourage the
entities and employees to relocate to or remain in
[(i) Assist in the development of
microenterprise businesses in
[(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.]
(2) The commission
shall provide oversight and direction to the Economic and Community Development
Department in carrying out the duties and creating policies to further the
economic strategy set forth in ORS 285A.020. In addition, the commission may perform
any other duty vested in the commission 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) When a power,
duty or function is vested in the commission, the commission may designate
department officers, agents, employees or committee members to exercise the
power, duty or function of the commission. When the commission designates a
person in writing to exercise a power, duty or function of the commission, the
person may exercise the power, duty or function.
[(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
[(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.] coordinate its activities with
federal, state and local agencies, community partners and regions, when
appropriate.
SECTION 5. ORS 285A.050 is amended to read:
285A.050.
(1) The
(a) For the overall
Economic and Community Development Department [effort] and for each identifiable program and [significant project or service] funding source:
[(A) The impact of that program on the
competitiveness of traded sector industries and the skill levels of the
[(B)] (A) The [impact
on the] number of jobs[, including jobs] created and retained;
[(C)] (B) The [impact on the] average wage levels of [
[(D)] (C) [The actual
or anticipated impact of public investments at all levels, in terms of
measurable outcomes wherever possible; and] Other
measures identified by the commission.
[(E) The impact of that program on the
Internet-based entities and employees in
(b) The status of the
[(A) Changes in employment and wage levels in
[(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
[(d) Recommendations for removing identified barriers and additional
suggestions for improving the performance of
[(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
[(h) Progress made in serving microenterprise businesses and
recommendations for increasing the success of microenterprises.]
(c) Other issues
identified by the commission.
[(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)] (2) Reports to the Legislative Assembly required under
this section shall be made in accordance with ORS 192.245.
SECTION 6. 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.371, 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, the Oregon Economic
and Community Development Commission, or the Economic and Community
Development Department as the designee of the 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; and
(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 7. ORS 285A.070 is amended to read:
285A.070. (1) The
Economic and Community Development Department is [continued, but reorganized as provided in this section]
established.
[(2) The Economic and Community Development Department shall be
organized by the Director of the Economic and Community Development Department
in whatever manner the director considers necessary to conduct the work of the
department efficiently and effectively, subject to approval by the Oregon
Economic and Community Development Commission.]
[(3)] (2) The department shall be
under the supervision of the Director of the Economic and Community
Development Department, who shall be appointed by and shall hold office at
the pleasure of the Governor.
[(4)] (3) The appointment of the
director shall be subject to confirmation by the Senate in the manner provided
by ORS 171.562 and 171.565.
(4) Subject to policy
direction by the
(a) Be the
administrative head of the department;
(b) Administer the laws
of the state relating to economic development; and
(c) Intervene, as
authorized by the commission, pursuant to the rules of practice and procedure,
in the proceedings of state and federal agencies that may substantially affect
economic development within
(5) In addition to
duties otherwise required by law, and subject to policy direction by the
commission, the director shall prescribe rules for the government of the
department, the conduct of its employees, the assignment and performance of its
business and the custody, use and preservation of its records, papers and
property, based on best managerial practices as determined by the director and
in a manner consistent with applicable law.
(6) The director shall
organize the department in whatever manner the director considers necessary to
conduct the work of the department efficiently and effectively, subject to
approval by the commission.
[(5)] (7) The director may appoint all subordinate officers
and employees of the department and may prescribe their duties, assignments and
reassignments and fix their compensation, subject to any applicable provisions
of the State Personnel Relations Law. Subject to any other applicable law
regulating travel expenses, the officers and employees of the department shall
be allowed such reasonable and necessary travel and other expenses as may be
incurred in the performance of their duties.
(8) The director may
delegate the exercise or discharge of any power, duty or function that is
vested in or imposed by law upon the director to any department employee for
the purpose of conducting an official act in the name of the director. The
official act of any person acting in the name of the director by the authority
of the director is an official act of the director.
(9) The director may
require a fidelity bond of any officer or employee of the department who has
charge of, handles or has access to any state money or property, and who is not
otherwise required by law to give a bond. The director shall fix the amount of
the bond, except as otherwise provided by law, and approve the sureties. The
department shall pay the premiums on the bond.
[(6)] (10) The
SECTION 8. 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.]
(1) The Economic and
Community Development Department shall:
(a) Implement programs
and adopt rules in accordance with applicable provisions of ORS chapter 183
that are consistent and necessary to carry out the policies established by the
(b) Act as the official
state liaison agency for persons interested in locating industrial or business
firms in the state and for state and local groups seeking new industry or
business, and maintain the confidentiality of negotiations conducted pursuant
to this paragraph, if requested.
(c) Coordinate state and
federal economic and community development programs.
(d) Administer the state’s
participation in the federal Community Development Block Grant funding program
authorized by 42 U.S.C. 5301 et seq.
(e) Actively recruit
domestic and international business firms to those communities desiring
business recruitment.
(f) Consult with local
governments to establish regions for the purpose of job development and
community assistance to facilitate economic activities in the region. Regions
established for this purpose need not be of the same size in geographic area or
population.
(g) Establish and
operate foreign trade offices in foreign countries in which the department
considers a foreign trade office necessary. The department shall use department
employees, contracts with public or private persons or a combination of
employees and contractors to establish and operate foreign trade offices.
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 such employees. ORS 276.428, 279A.120,
279A.140, 279A.155, 279A.275, 279B.025, 279B.235, 279B.270, 279B.280, 279C.370,
279C.500 to 279C.530, 279C.540, 279C.545, 279C.800 to 279C.870, 282.020,
282.050, 282.210, 282.220, 282.230, 283.140, 459A.475, 459A.490, 653.268 and
653.269 do not apply to the department’s operation of foreign trade offices
outside the state.
(h) Consult with other
state agencies and with local agencies and officials prior to defining or
designating distressed areas for purposes of ORS 285A.020.
(i) Budget moneys for
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 to accomplish the purposes of
ORS 329.905 to 329.975 and ORS chapters 285A, 285B and 285C. The department may
expend moneys duly budgeted to pay the travel and other expenses of such
persons if the director determines the expense may promote the purposes of this
subsection.
(j) Promulgate rules to
govern contracts.
(k) Develop strategies
to address issues that are necessary and appropriate to
(L) Use practices and
procedures that the department determines are the best practices for carrying
out the duties of the department.
(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, 285B and
285C 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 chapter 183, the
department may adopt rules necessary for the administration of laws that the
department is charged with administering.]
[(6) ORS 276.428, 279A.120, 279A.140, 279A.155, 279A.275, 279B.025,
279B.235, 279B.270, 279B.280, 279C.370, 279C.500 to 279C.530, 279C.540,
279C.545, 279C.800 to 279C.870, 282.020, 282.050, 282.210, 282.220, 282.230,
283.140, 459A.475, 459A.490, 653.268 and 653.269 do not apply to the department’s
operation of foreign trade offices outside the state.]
[(7)] (3) Notwithstanding ORS 279A.140, the department may award
grants or 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
[(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
[(c) Contracts entered into under this subsection are
exempt from the requirements of ORS 279.835 to 279.855 and ORS chapters 279A,
279B and 279C.]
[(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 9. ORS 285A.206 is amended to read:
285A.206. (1) In each
calendar year, the Economic and Community Development Department shall prepare,
in accordance with generally accepted governmental accounting principles, a
financial statement for individual funding programs as required by law.[relating to each of the following funds:]
[(a) The Special Public Works Fund created by ORS 285B.455;]
[(b) The Title I Bank Fund established by ORS 285A.306;]
[(c) The
[(d) The
[(e) Any other fund or account that is used by the department or Oregon
Economic and Community Development Commission to make loans or loan guarantees
or to provide other financial assistance to private business firms organized
for profit.]
(2) The financial
statements required by this section shall record and summarize all the
financial transactions during the reporting period that involved moneys
credited to a fund or account and shall describe the financial condition of the
fund or an account at the end of the reporting period. The reporting period for
financial statements required by this section shall be the fiscal year commencing
on July 1 and ending on June 30.
(3) The financial
statements required by this section shall be in a form prescribed by the
Secretary of State.
(4) Each financial
statement required by this section shall describe the financial transactions
and condition of a single fund and shall be submitted to the Governor, the
President of the Senate and the Speaker of the House of Representatives not
later than December 31 in each year.
DEVELOPMENT FUND
SECTION 10. 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 279A.140, 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.
BROWNFIELDS REDEVELOPMENT FUND
SECTION 11. ORS 285A.188 is amended to read:
285A.188. (1) As used in this section:
(a) “Environmental
action” means activities undertaken to:
(A) Determine if a
release has occurred[,] or may
occur, if the release or potential release poses a significant
threat to human health or the environment or if additional remedial actions may
be required at the site;
(B) Conduct a remedial
investigation and a feasibility study;
(C) Plan for remedial
action or removal action; or
(D) Conduct a remedial
action or removal action at a site.
(b) “Facility,” “hazardous
substance,” “release,” “remedial action” and “removal” have
the meanings given those terms in ORS 465.200.
(c) “Substantial public
benefit” includes, but is not limited to:
(A) The generation of
funding or other resources facilitating substantial remedial action at a
facility in accordance with this section;
(B) A commitment to
perform substantial remedial action at a facility in accordance with this
section;
(C) Productive reuse of
a vacant or abandoned industrial or commercial facility; or
(D) Development of a
facility by a municipality or a nonprofit organization to address an important
public purpose.
(2) There is created
within the State Treasury a revolving fund known as the Brownfields
Redevelopment Fund, separate and distinct from the General Fund. Interest
earned by the fund shall be credited to the fund. Moneys in the Brownfields
Redevelopment Fund shall be used to fund loans and grants for environmental
actions on properties that are brownfields, as defined in ORS 285A.185.
(3)(a) Subject to paragraph
(b) of this subsection, when making a loan or grant for an environmental
action, the Economic and Community Development Department shall give priority
to persons who, at the time of applying for the loan or grant, are not liable
under ORS 465.255 for a release of a hazardous substance at the property at
which the environmental action is to be conducted. No more than [40] 60 percent of the total
amount of the Brownfields Redevelopment Fund in any biennium shall be awarded
to persons who are liable with respect to the subject property under ORS
465.255. A person is not eligible to receive a loan or grant from moneys in the
Brownfields Redevelopment Fund if the person has knowingly violated applicable
laws or regulations or has knowingly violated or failed to comply with an order
of the Department of Environmental Quality, if such action or inaction has
resulted in one or more of the following:
(A) Contribution to or
exacerbation of existing contamination at the facility;
(B) Release of a
hazardous substance at the facility; or
(C) Interference with
necessary investigation or remedial actions at the facility.
(b) Notwithstanding
paragraph (a) of this subsection:
(A) When making a grant
to a municipality, the department shall give priority to municipalities that
provide matching funds from a loan under this section, from another source or
from both.
(B) When making a grant
to an entity that is not a municipality, the department shall require that:
(i) The recipient is not
liable for the subject property under ORS 465.255;
(ii) The environmental
action provides a substantial public benefit; and
(iii) The recipient
provides matching funds from a loan under this section, from another source or
from both.
(c) The department may
establish by rule circumstances in which the department may waive or subsidize
the interest on a short-term loan.
(4) When making a loan
or grant for an environmental action, the Economic and Community Development
Department shall consider:
(a) The extent to which
actual or perceived contamination prevents the property from being fully
utilized;
(b) The need for
providing public assistance, after considering the difficulty of obtaining
financing from other sources or of obtaining financing at reasonable rates and
terms;
(c) The degree to which
redevelopment of the property provides opportunity for achieving protection of
human health or the environment by reducing or eliminating the contamination of
the property and for contributing to the economic health and diversity of the
area;
(d) The probability of
the success of the intended use or the degree to which redevelopment of the
property provides a public purpose following remediation of the property;
(e) Compliance with the
land use plan of the local government with jurisdiction over the property; and
(f) Endorsement from the
local government with jurisdiction over the property.
(5) Before making a loan
or grant decision pursuant to this section, the Economic and Community
Development Department shall consult with the Department of Environmental
Quality.
(6) The Economic and
Community Development Department may use a portion of the Brownfields
Redevelopment Fund to:
(a) Pay for
administrative costs of environmental actions; and
(b) Satisfy contracts
entered into as required to ensure that environmental reviews are conducted in
a manner consistent with existing environmental cleanup laws and rules.
(7) The Economic and
Community Development Department shall adopt rules necessary to carry out the
requirements of this section. The Economic and Community Development Department
shall develop procedures to ensure that activities for which loans or grants
are made are consistent with existing environmental cleanup laws and rules.
BUSINESS RETENTION FUND
SECTION 12. ORS 285A.224 is amended to read:
285A.224.
(1) [The Legislative Assembly finds that
(2) The [Economic Stabilization and Conversion]
Business Retention Fund is created separate and distinct from the General
Fund. The fund shall be administered by the Economic and Community Development
Department. The fund may be credited with contributions of moneys from public
and private sources and with repayments as provided in this section. Interest
earned by the fund shall be credited to the fund.
(3)(a) The [Economic and Community Development]
department may allocate moneys in the fund for the following purposes:
(A) Business retention
service;
(B) Employee ownership;
(C) Community response
to plant closures or community distress, or both; and
(D) Feasibility studies,
transition plans or restructuring plans.
(b) The department shall
establish the maximum percentage of the fund that may be allocated for the
purposes described in paragraph (a) of this subsection and a minimum match
requirement, if any.
(4) The [Economic and Community Development]
department may grant, expend or loan moneys in the fund for financial
assistance, feasibility studies, transition plans, restructuring plans,
technical assistance and management consulting services for business firms
in transition, troubled firms that may close without assistance, for
troubled firms that are experiencing major layoffs or firms that have actually
closed or announced closure, and for communities that are experiencing distress
due to the business closures [and for the
purpose of encouraging employee ownership], under such terms and conditions
as the department may determine.
(5) The [Economic and Community Development]
department shall provide that firms receiving assistance repay to the [Economic Stabilization and Conversion]
Business Retention Fund any assistance provided under subsection (4) of
this section. [Such provisions for
repayment] When the department sets repayment terms for a firm receiving
assistance, the department shall consider the financial ability of the firm
to repay assistance.
(6) In providing
assistance from the [Economic
Stabilization and Conversion] Business Retention Fund, the
department [shall] may give
preference to Oregon’s rural and distressed areas and its traditional
agriculture, forestry and fishing industries[, and].The department may also give priority to areas including
but not limited to emerging industries and industry clusters with high
potential for job retention and creation and market growth, as well as traded
sector firms competing in markets for which regional, national or
international competition exists.
(7) The [Economic and Community Development]
department shall establish specific criteria for expenditure of funds from the
[Economic Stabilization and Conversion]
Business Retention Fund by adopting rules.
ASSISTANCE TO
SMALL BUSINESS SERVICE PROVIDERS
SECTION 13. ORS 285A.340 is amended to read:
285A.340. [(1) The Legislative Assembly finds that:]
[(a) Small businesses have been the major
contributors to the increase in traded sector jobs in
[(b) Small businesses continue to be a major source of employment
opportunities for
[(c)
[(d) Those small businesses which have at least one employee and which
compete in markets for which national or international competition exists have
the greatest potential for benefiting the economy of this state.]
[(e) Access to appropriate business assistance services, rather than the
cost of obtaining such services, is a factor limiting the expansion of many
small businesses in this state.]
[(f) Community-based lending programs are particularly well suited to
meeting the needs of small businesses that are unable to obtain from private
financial institutions the capital that is necessary for expansion.]
[(g) An effective partnership between state and local economic
development programs is essential to promoting the development of small
businesses in this state.]
[(2)] The Legislative Assembly [therefore]
declares that it is [the policy of this
state and] the purpose of ORS 285A.340 to 285A.349[, 285B.074, 285B.159 and 285B.162]:
[(a)] (1) To assist the development
of small businesses, with special emphasis on increasing the percentage of
businesses owned by women and members of minority groups;
[(b)] (2) To encourage competition
among publicly supported small business service providers in order to supply
the most effective, highest quality services to the greatest number of
businesses for the most significant long term outcomes;
[(c)] (3) To foster cooperation
among state agencies, state-supported organizations and private sector entities
that provide services to small businesses in order to best meet the needs of
small business clients;
[(d)] (4) To encourage and support [the formation of] private sector organizations, [including trade associations, organizations
formed to meet the needs of traded sector industries and similar groups,]
to serve the needs of the small businesses in this state and, to the maximum extent
feasible, to coordinate the small business programs of this state [and of such private sector organizations];
and
[(e)] (5) To provide support for
organizations that encourage and assist the development and expansion of small
businesses in
SECTION 14. ORS 285A.346 is amended to read:
285A.346. (1)(a) The
Economic and Community Development Department may purchase business assistance
services from public or private organizations for delivery to small businesses
in this state or may provide grants to public or private organizations to
support, aid, stimulate or otherwise affect the delivery of business assistance
services to small businesses in this state.
(b) For the purposes of
ORS 285A.340 to 285A.349, “business assistance services” includes:
(A) Basic business
training, including elements of accounting, personnel management, marketing and
tax compliance.
(B) Counseling on
business needs and problems, including but not limited to specialized
assistance with intellectual property rights, mezzanine financing, federal
research grants, international markets, lean manufacturing and electronic
commerce.
(C) Assistance in
securing state and federal procurement contracts.
(D) Assistance in
securing
(2) An organization or
association that receives state moneys for the purpose of providing business
assistance services to small businesses shall comply, to the greatest extent
feasible, with the state policies established under ORS 285A.340 to 285A.349.
(3) To the extent that
federal laws or regulations impose requirements that limit the payment of fees
by recipients of business assistance services to small businesses, the Economic
and Community Development Department and the providers of those services shall
apply for waivers of such federal requirements.
SECTION 15. ORS 285A.349 is amended to read:
285A.349. The Economic
and Community Development Department shall evaluate the efficiency and
effectiveness of the delivery of business assistance services to small
businesses [under ORS 285A.340 to
285A.349].
SECTION 16. ORS 285B.123 is amended to read:
285B.123. [(1) The Legislative Assembly finds that:]
[(a) Small businesses comprise more than 97
percent of the business entities in this state.]
[(b) Small businesses provide more than three-quarters of the private
sector jobs in this state.]
[(c) The small business contribution to the economy of this state
exceeds the national average contribution and its continuance is vital to the
economic health and growth of this state.]
[(d) All national economic indicators establish that the greatest source
of future new jobs is in the small business sector of the economy.]
[(2)] (1) The purpose of the Oregon
Small Business Development Act of 1983 is to encourage and assist the
development and continued growth of small business in this state.
[(3)] (2) As used in the Oregon
Small Business Development Act of 1983, “small business” means a [manufacturing] business having [200] 100 or fewer employees [and all other forms of business having 50 or
fewer employees].
[(4) The provisions of ORS 285B.120 and 657.471 are intended to assist
in carrying out the
SECTION 17. ORS 285B.165 is amended to read:
285B.165. [(1)] The purpose
of ORS 285B.165 to 285B.171 is to establish and sustain a statewide network of
small business development centers.
[(2) The Legislative Assembly finds that:]
[(a) It is in the state’s interest to help small businesses develop and
improve skills in such areas as marketing, management and capital formation
through a network of small business development centers;]
[(b) Small business employers create most of the new jobs in
[(c) Community colleges and state universities can link small business
with college resources, expert resource people in the business community and
other training resources throughout the state; and]
[(d) Information resources, business counseling and training assistance
in a convenient format support the vitality of small business.]
SECTION 18. ORS 285B.168 is amended to read:
285B.168. (1) The
Economic and Community Development Department may make grants available to a
community college district, a community college service district or, with the
concurrence of the Commissioner for Community College Services and the
Chancellor of the Oregon University System, a state university to assist in the
formation, improvement and operation of small business development centers. If
a community college district, a community college service district or a state
university is unable to adequately provide services in a specific geographic
area, the department may make grants available to other service providers as
determined by the department. The grant application shall include:
(a) Plans for providing
small business owners and managers individual counseling, to the greatest
extent practicable, in subject areas critical to small business success;
(b) A budget for the
year for which a grant is requested, including cost apportionment among the
Economic and Community Development Department, small business clients, the
community college, state university or other service providers and other
sources; [and]
(c) A plan for
evaluating the effect of the program on small business clients served[.]; and
(d) A plan for providing
collaboration with other state agencies, state-supported organizations and
private sector entities that provide services to small
businesses.
(2) The grants made under
subsection (1) of this section are to be used by the grant recipient to provide
[funds for]:
(a) Small business
development center staff and support staff;
(b) Expert resource
persons from the business community;
(c) Other training and
business resources as approved by the department in skill areas for
which, or areas of the state where, the grant recipient can demonstrate it does
not otherwise have the capacity or expertise to provide the resources; and
(d) Other costs related
to providing training, counseling and business resources to small business
clients.
(3) To be eligible for a
grant under subsection (1) of this section, the recipient shall be required to
provide funds, in-kind contributions or some combination of funds and
contributions, in accordance with rules adopted by the Economic and Community
Development Department.
(4) Subject to the
approval of the department, a grant recipient may subcontract funds received
under this section to any other entity that is eligible to receive funding under
this section.
(5) The grant
recipient shall submit a final report to the department after the distribution
of grant funds and the delivery of services to the proposed business clients.
The report shall state whether the plan and related budget have met the
applicable criteria as described in the recipient’s application for the grant
period.
(6) As used in this
section, “state university” means a state institution of higher education
listed in ORS 352.002.
SECTION 19. ORS 285B.174 is amended to read:
285B.174. In cooperation
with other state [and public]
agencies and private organizations, state universities as defined in ORS
[285B.166] 285B.168 and
community colleges may develop programs to assist Oregon businesses with the
procurement of government contracts and grants. Small business development
centers established under ORS 285B.165 to 285B.171 may assist with these
programs.
SECTION 20. ORS 285B.178 is amended to read:
285B.178. As used in ORS 285B.178 to 285B.183:
(1) “Local
microenterprise support organization” means a community development
corporation, a nonprofit development organization, a nonprofit social services
organization or another locally operated nonprofit entity that provides
services to disadvantaged entrepreneurs.
(2) “Low income” means
income adjusted for family size that does not exceed:
(a) For metropolitan
areas, 80 percent of median income; or
(b) For nonmetropolitan
areas, the greater of 80 percent of the area median income or 80 percent of the
statewide nonmetropolitan area median income.
(3) “Microenterprise”
has the meaning given that term under 15 U.S.C. 6901, as amended and in effect
on [June 18, 2001] June 30, 2007.
If 15 U.S.C. 6901 is amended or altered on or after July 1, 2007, the
department may adopt by rule a definition of “microenterprise” to give the term
the meaning given in 15 U.S.C. 6901 as amended or altered.
(4) “Microentrepreneur”
means an individual conducting a microenterprise.
(5) “Microlending” means
the practice of lending moneys to microenterprises or microentrepreneurs.
(6) “Statewide
microenterprise support organization” means a community development
corporation, a nonprofit development organization, a nonprofit social services
organization or another nonprofit entity that serves as an intermediary between
the Economic and Community Development Department and local microenterprise
support organizations.
(7) “Training and
technical assistance” means services and support offered to microenterprises
and microentrepreneurs. “Training and technical assistance” includes, but is
not limited to, services to enhance business development, asset building,
business planning, marketing, management skills and access to financial
services.
(8) “Very low income”
means income adjusted for family size that does not exceed 150 percent of the
poverty level determined under 42 U.S.C. 9902, as amended and in effect on [June 18, 2001] June 30, 2007. If
42 U.S.C. 9902 is amended or altered on or after July 1, 2007, the department
may adopt by rule the standard for determining the federal poverty level under
42 U.S.C. 9902 as amended or altered.
SECTION 21. ORS 285B.179 is amended to read:
285B.179. [(1) The Legislative Assembly finds that:]
[(a) There is a need to develop and expand
businesses in economically distressed communities in both rural and urban
areas;]
[(b) There is a need to assist Oregonians who are unemployed,
underemployed or in low income jobs;]
[(c) Microenterprises can provide a means for unemployed, underemployed
or low income individuals to find and sustain productive work;]
[(d) Microenterprises, including self-employment, can enable people with
disabilities to use their management skills to create and provide products and
services, to acquire new skills in money management and business development
and to develop pride and self-esteem;]
[(e) Microenterprises can provide opportunities for economically
distressed communities to thrive, one microentrepreneur at a time;]
[(f) Microenterprises, including self-employment and start-up
businesses, are important elements of the
[(g) There is a lack of access to capital and training and technical
assistance for low income and very low income microentrepreneurs;]
[(h) Many low income and very low income microentrepreneurs need
microlending services and training and technical assistance to start, operate
or expand their businesses;]
[(i) Local microenterprise support organizations have demonstrated
cost-effective delivery methods for providing microlending services and
training and technical assistance; and]
[(j) Local and state charitable foundation support, federal program
funding and private sector support can be leveraged by a statewide program for
development of microenterprises.]
[(2)] The purposes of ORS 285B.178 to
285B.183 are to:
[(a)] (1) Ensure that microenterprises in Oregon are able to
realize their full potential to create jobs, enhance entrepreneurial skills,
expand entrepreneurial activity and increase the capacity of low income and
very low income households to become self-sufficient;
[(b)] (2) Enhance the development of a statewide
infrastructure for microenterprise support; and
[(c)] (3) Enable the Economic and Community Development
Department to engage in contractual relationships with statewide
microenterprise support organizations that have the capacity to administer
grants to local microenterprise support organizations, subject to ORS 285B.178
to 285B.183, and to leverage additional funds from sources other than moneys appropriated
from the General Fund.
PORTS
SECTION 22. ORS 285A.600 is amended to read:
285A.600. [(1) The Legislative Assembly finds that:]
[(a) The ports of this state are directly and actively involved in
creating and carrying out at the local level the economic development
objectives and programs of the State of Oregon.]
[(b) Ports in this state provide effective local assistance to state
economic and transportation development efforts.]
[(c) Ports in
[(d) Port facilities, including roads, railroads, airports, harbors and
navigation channels, are an integral element of the transportation
infrastructure of this state.]
[(e) The ports in this state have few technical or institutional
resources to deal with multiple state and federal programs.]
[(f) Ports in this state need coordinating
and planning assistance from the State of
[(2)] (1) The Legislative Assembly
declares that it is the policy of this state to include
(a) Coordinate with the
Department of Transportation and other state agencies, commissions and advisory
committees engaged in activities affecting ports to facilitate port planning
and development;
(b) Promote local
cooperation in statewide planning and development of the ports;
(c) Promote long-term
economic self-sufficiency of the ports;
(d) Encourage
cost-effective investments with prudent financial consideration of port
development projects; and
(e) Facilitate ports in
their efforts to expand and respond to greater domestic and international
market opportunities.
[(3)] (2) The Legislative Assembly also declares that:
(a) The State of
(b) Because the federal
role is changing, the responsibilities of this state may increase in terms of
direct involvement in waterway transportation.
(c) It is the policy of
the State of
(A) The navigation
channels of the Columbia River,
(B) Waterway segments
that serve as transportation corridors for large volumes of bulk and
agricultural commodities and that provide shippers a cost-effective means to
transport products.
(C) The coastal channels
and harbors that support commercial and water-dependent activities.
SECTION 23. ORS 285A.603 is amended to read:
285A.603. As used in ORS
285A.603 to 285A.633, unless the context requires otherwise[:],
[(1)] “port” means the Port of Portland and any port formed pursuant
to ORS 777.005 to 777.725 and 777.915 to 777.953.
[(2) “Ports Division” or “division” means the Ports Division of the
Economic and Community Development Department.]
SECTION 24. ORS 285A.615 is amended to read:
285A.615. (1) The [Ports Division of
the] Economic and Community Development Department shall provide managerial
assistance and technical referral services to ports.
(2) The [division] department shall[:]
[(a)] disseminate such research and
technical information as is available to the department[; and].
[(b) Provide managerial assistance to ports and the safety committees
created under ORS 468B.415 requesting such assistance.]
(3) The [division] department shall work
cooperatively with existing organizations and agencies that provide research
and technical services, including, but not limited to:
(a) The Department of
State Lands;
(b) The State Marine
Board; and
(c) The Sea Grant
College and marine extension services at
SECTION 25. ORS 285A.627 is amended to read:
285A.627. (1) The Oregon
Economic and Community Development Commission, through the [Ports Division] Economic and
Community Development Department, shall be the statewide coordinating, planning
and research agency for all ports and port authorities in this state to ensure
the most orderly, efficient and economical development of the state port
system.
(2) Notwithstanding any
other provision of law, after July 1, 1969, no port or port authority may be
formed without the prior approval of the commission.
(3) The commission,
through the [division] department,
shall be the statewide coordinating, planning and research agency for port
activities involving international trade and international trade development
and industrial, commercial and recreational development.
SECTION 26. 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] Economic and Community Development Department
and shall be used by the [division] department
for:
(a) Administrative
expenses of the [division]
department 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 formed under ORS 777.010 and 777.050.
(c) Direct purchase by
the [division] department 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 27. ORS 285A.657 is amended to read:
285A.657. (1) The [Ports Division] Economic and
Community Development Department may make grants, as funds are available,
to any port formed 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]
department 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]
department may prescribe.
(4) Upon receipt of an
application, the [Ports Division] department
shall determine whether the planning project or marketing project is eligible
for funding under ORS 285A.654 to 285A.660. If the [Ports Division] department 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] department 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] department finds
that:
(a) The project meets
the standards and criteria established by the [Ports Division] department 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] $50,000 and shall not exceed 75 percent of the
total cost of the project.
(7) The [Ports Division] department 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] department may purchase goods or services to assist a port
in implementing a project.
SECTION 28. ORS 285A.660 is amended to read:
285A.660. (1) The
Economic and Community Development Department shall develop marketing grant
funding priorities considering such factors as community need and whether the
project will lead to economic diversification, development of a new or emerging
industry and redevelopment of existing public facilities. The department shall
give priority to regional or cooperative projects, and projects that leverage
other marketing efforts by the state or other local government units.
(2) The department shall
review all proposals to avoid duplication of marketing efforts among ports, and
to maintain consistency with the applicable county or city comprehensive plans.
(3) Ports shall
develop and maintain strategic business plans before obtaining department funding.
A strategic business plan developed and maintained under this subsection must
comply with standards and requirements for strategic business plans established
by the department by rule. The department shall also establish by rule the date
by which ports seeking department funding must have a strategic business plan
in place.
SECTION 29. ORS 285A.666 is amended to read:
285A.666. As used in ORS 285A.666 to 285A.732, unless the context
requires otherwise:
[(1) “Division” means the Ports Division of the Economic and Community
Development Department.]
[(2)] (1) “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.
[(3)] (2) “Fund” means the Oregon Port Revolving Fund.
[(4)] (3) “Port district” means any port formed pursuant to
ORS 777.005 to 777.725 and 777.915 to 777.953 or ORS chapter 778.
[(5)] (4) “Project” means a project authorized under ORS
777.105 to 777.258, including engineering, acquisition, improvement,
rehabilitation, construction, operation, maintenance or preproject planning
necessary to carry out the project.
SECTION 30. 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
projects.
(b) Payment of loans to
port districts pursuant to ORS 285A.666 to 285A.732.
(c) Administrative
expenses of the [Ports Division] Economic
and Community Development Department 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] an
amount not to exceed five 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]
$50,000 unless a work plan and budget for such study has been provided to
the joint Legislative Committee on Trade and Economic Development.
SECTION 31. ORS 285A.709 is amended to read:
285A.709. (1)
Notwithstanding ORS 285A.708 (1) and 285A.711, available moneys in the Oregon
Port Revolving Fund that were accrued as net earned income of the fund may be
transferred to the Port Planning and Marketing Fund created under ORS 285A.654.
(2) Notwithstanding ORS
285A.654 (1)(b), moneys transferred to the Port Planning and Marketing Fund
under this section may be used for payments of grants under ORS 285A.654 to
285A.660 to ports formed under ORS 285A.603 to 285A.732 or ORS chapter 777 or
778.
(3) In addition to and
notwithstanding any other law, an amount not to exceed [four] five percent of the assets of the Oregon Port
Revolving Fund as calculated on July 1 of each year shall be transferred to the
Port Planning and Marketing Fund under this section.
INFRASTRUCTURE PROJECTS
SECTION 32. ORS 285B.410 is amended to read:
285B.410. As used in ORS 285B.410 to 285B.482, unless the context
requires otherwise:
(1) “Airport” means:
(a) A runway, taxiway,
aircraft parking apron, ramp, auto parking area, access road, safety area or
runway protection zone;
(b) An airport-related
facility, including a hangar, terminal, air traffic control tower or other
building;
(c) A signal,
navigational aid or traffic control system; or
(d) A fuel tank or other
physical airport improvement.
(2)(a) “Community
development project” means a project that involves strategic planning, training
or other technical assistance as defined by the Economic and Community
Development Department by rule, and that is aimed at strengthening the economic
development or infrastructure priority setting of a municipality or region.
(b) “Community
development project” includes the following activities:
(A) Developing and
managing short-term and long-term projects;
(B) Developing
priorities for infrastructure projects;
(C) Strategic planning
related to furthering economic development; or
(D) Training related to
economic development, including training to improve leadership skills,
technical skills or analytical skills, particularly in rural and distressed
areas.
(c) “Community
development project” includes projects that may encompass a municipality or any
part of a municipality and may be undertaken in cooperation with another
municipality.
[(2)] (3) “Development project” means a project for the
acquisition, improvement, construction, demolition, or redevelopment of
municipally owned utilities, buildings, land, transportation facilities or
other facilities that assist the economic and community development of the
municipality, including planning project activities that are necessary or
useful as determined by the Economic and Community Development Department.
[(3)] (4) “Direct project management costs” means expenses
directly related to a project that are incurred by a municipality solely to
support or manage a project eligible for assistance under ORS 285B.410 to
285B.482. “Direct project management costs” does not include routine or ongoing
expenses of the municipality.
[(4)] (5) “Emergency project” means a development project
resulting from an emergency as defined in ORS 401.025, to which federal
disaster relief has been committed.
[(5)] (6) “Energy system” means a facility necessary for the
distribution, transmission or generation of energy, including but not limited
to facilities powered by wind, solar energy or biofuel and facilities for the
collection, storage, transmission or distribution of a fuel, including natural
gas, methane or hydrogen.
[(6)] (7) “Marine facility” means:
(a) A wharf, dock,
freight handling or passenger facility;
(b) A navigation channel
or structure, including a project funded under ORS 777.267; or
(c) Any other physical
marine facility improvement.
[(7)] (8) “Municipality” means an Oregon city or county, the
Port of Portland created by ORS 778.010, a county service district organized
under ORS chapter 451, a district as defined in ORS 198.010, a tribal council
of a federally recognized Indian tribe in this state or an airport district
organized under ORS chapter 838.
[(8)] (9) “Planning project” means:
(a) A project related to
a potential development project for preliminary, final or construction engineering;
(b) A survey, site
investigation or environmental action;
(c) A financial,
technical or other feasibility report, study or plan; or
(d) An activity that the
department determines to be necessary or useful in planning for a potential
development project.
[(9)] (10) “Project” means a development, community
development, planning or emergency project.
[(10)] (11) “Railroad” means:
(a) A main line, siding,
yard, connecting or auxiliary track, right of way or easement;
(b) An industrial spur
or related facility, including a depot, shop, maintenance building or other
building;
(c) A signal or traffic
control system;
(d) A bridge or tunnel;
(e) A dock, pit,
conveyor, bin, crane, piping system, tank or pavement for unloading, loading or
transfer of freight, trailers or containers; or
(f) Any other physical
railroad improvement.
[(11)] (12) “Road” means a street, highway or thruway or a
road-related structure that provides for continuity of a right of way,
including a bridge, tunnel, culvert or similar structure or other physical
road-related improvement.
[(12)] (13) “Rural area” has the meaning given that term in
ORS 285A.010.
[(13)] (14) “Sewage system” means a facility necessary for
collecting, pumping, treating or disposing of sanitary sewage.
[(14)] (15) “Solid waste disposal site” has the meaning given
the term “disposal site” in ORS 459.005.
[(15)] (16) “Storm water drainage system” means a facility
necessary for collecting, controlling, conveying, treating or disposing of
storm water runoff.
[(16)] (17) “Telecommunications system” means equipment or a
facility for the electronic transmission of voice, data, text, image or video.
[(17)] (18) “Transportation” means a system for movement of
freight or passengers.
[(18)] (19) “Utilities” means a solid waste disposal site or
a water, sewage, storm water drainage, energy or telecommunications system.
[(19)] (20) “Water system” means a facility for supplying,
treating or protecting the quality of water and transmitting water to a point
of sale or to any public or private agency for domestic, municipal, commercial
or industrial use.
SECTION 33. ORS 285B.440 is amended to read:
285B.440. (1)(a) The moneys in the Special Public Works Fund shall be
used primarily to provide loans to municipalities for projects as defined in
ORS 285B.410 to 295B.482. The Economic and Community Development Department may
determine the level of grant or loan funding, if any, on a case-by-case basis.
(b) If the department
approves funding, the department shall determine a maximum amount of the loan
based upon a reasonable and prudent expectation of the ability of the
municipality to repay the loan.
(c) The loan term may
not exceed the usable life of the project or 25 years from the year of project
completion, whichever is less.
(d) Assistance from the
fund for a marine facility project otherwise funded under ORS 777.267 shall be
limited to a loan. The loan may not exceed the amount of the required local
matching funds.
(2) The department shall
by rule adopt standards for awarding grants from the Special Public Works Fund.
The standards may include the award of grants as a financial incentive to
accomplish the goals of the Special Public Works Fund, to address special
circumstances of a project or to address the financial need of the applicant.
(3) The department may
make grants to a municipality not to exceed $1 million per project or 85
percent of the allowable project costs, whichever is less. For purposes of this
subsection, allowable project costs do not include capitalized interest, if
any.
(4) The department may
not expend more than one percent of the value of the Special Public Works Fund
in any biennium for grants or direct assistance, if any, for planning projects and
community development projects to municipalities.
(5) The department may
not expend more than $2.5 million in any biennium for emergency project grants.
For purposes of this subsection, emergency project grants include grants for
essential community facilities, as defined by the department by rule after
consultation with the League of Oregon Cities, the Association of Oregon
Counties, the Oregon Ports Representation Group and the Special Districts
Association of Oregon.
(6) Except as otherwise
limited by this section, not more than 100 percent of the total cost of a
project, including capitalized interest, shall be financed from the Special
Public Works Fund.
SECTION 34. 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 to the Economic and Community Development Department.
(2) The fund shall
consist of all moneys credited to the fund, including:
(a) Moneys appropriated
to the fund by the Legislative Assembly or transferred to the fund by the
Oregon Economic and Community Development Commission;
(b) Earnings on the
fund;
(c) Repayment of
financial assistance, including interest;
(d) Moneys received from
the federal government, other state agencies or local governments;
(e) Bond proceeds as
authorized under ORS 285B.410 to 285B.482 or other law; and
(f) Moneys from any
other source, including but not limited to grants and gifts.
(3) 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 the
investments shall be credited to the account in the Special Public Works Fund
designated by the department.
(4) The department shall
administer the Special Public Works Fund.
(5) The department may
establish other accounts within the Special Public Works Fund for the payment
of project costs, reserves, debt service payments, credit enhancement,
administrative costs and operation expenses or any other purpose necessary to
carry out ORS 285B.410 to 285B.482.
(6) The department may directly
or indirectly grant, expend or loan moneys in the fund or extend credit
to:
(a) Provide to
municipalities any form of financial or other assistance [to municipalities for projects determined by
the department to be appropriate] that the department considers
appropriate to assist communities with a project, including the refinancing of
temporary project financing.
(b) Purchase goods or
services related to a project on behalf of the municipality.
(c) Provide state funds
as a match for federal funds available for the administration of the Community
Development Block Grant program.
(d) Finance
administrative costs of the department pursuant to ORS 285B.410 to 285B.482.
(e) Provide annual
grants on behalf of a municipality in the form of partial repayment to
bondholders of amounts owed.
(f) Cover contracts that
are issued to guaranty any portion of the obligation of a municipality to
finance a development project and that are not sold to the State of
(7) As used in this
section, “administrative costs” includes the department’s direct and indirect
costs for investigating and processing an application, developing a contract,
monitoring the use of funds by a municipality, investigating and resolving
budget discrepancies, closing a project and providing financial or other
assistance to a municipality.
SECTION 35. ORS 285B.482 is amended to read:
285B.482. (1)
Notwithstanding any other law relating to revenue bonds issued and sold under
ORS 285B.467 to 285B.479 or ORS 285B.572, 285B.575 and 285B.578, revenue bonds
may be issued and sold as parity bonds.
(2) Proceeds of revenue
bonds issued and sold under ORS 285B.467 to 285B.479 or ORS 285B.572, 285B.575
and 285B.578, together with the investment earnings thereon, may be
consolidated into one or more funds or accounts and may be pledged to the
holders of revenue bonds issued to finance water projects, as defined in ORS
285B.560, or development projects.
(3) Any loan to a
municipality made pursuant to ORS 285B.467 to 285B.479, 285B.560 to 285B.569 or
285B.572 to 285B.599, including loans funded in whole or in part with the
proceeds of revenue bonds and loans funded with moneys in the Water Fund or the
Special Public Works Fund, may be pledged to the holders of revenue bonds
issued to finance water projects or development projects.
(4) Funds or accounts
established by the Economic and Community Development Department or the State
Treasurer in connection with the issuance of revenue bonds under ORS 285B.467
to 285B.479 or ORS 285B.572, 285B.575 and 285B.578 and moneys held in the funds
and accounts, together with the investment earnings thereon, may be
consolidated into one or more funds or accounts and may be pledged to the
holders of revenue bonds issued to finance water projects or development
projects.
[(5) Notwithstanding subsections (1) to (4) of this section, moneys held
in the Water Fund may not be used to finance or refinance the cost of a
development project unless the development project also qualifies as a water
project, and moneys held in the Special Public Works Fund may not be used to
finance or refinance the cost of a water project unless the water project also
qualifies as a development project.]
WATER FUND
SECTION 36. 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 Water Fund are continuously appropriated to
the Economic and Community Development Department for the purposes 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 the
charges], the per capita income of the municipality and any 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 the 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 Water 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
Water 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 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 active service connections from 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 provides a continuing source of financing consistent with ORS
285B.413.
(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 when the department:
(A) Finds that without 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 costs incurred by the department.
(b) To the extent
permitted by federal law, administrative costs of the department 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 costs 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 the moneys, shall be credited to the Water Development Administration and
Bond Sinking Fund created by ORS 541.830.
(12) As used in this
section, “administrative costs” include the department’s direct and indirect
costs for investigating and processing an application, developing a contract,
monitoring the use of funds by a municipality, investigating and resolving a
budget discrepancy, closing a project and providing financial and other
assistance to a municipality.
ENTREPRENEURIAL DEVELOPMENT
LOAN FUND
SECTION 37. ORS 285B.743 is amended to read:
285B.743. (1) Any
individual or business firm may file with the Economic and Community
Development Department an application to borrow money from the Oregon
Entrepreneurial Development Loan Fund as provided in ORS 285B.740 to 285B.758.
The application shall be filed in such a manner and contain or be accompanied
by such information as the department may require.
(2) Upon receipt of an
application under this section, the Economic and Community Development Department
shall determine whether the applicant is eligible to receive a loan under ORS [285B.139 and] 285B.740 to 285B.758. [If the department determines that an
applicant is not eligible to receive a loan, the department shall:]
[(a) Reject the application with a written statement of the reason for
that rejection; or]
[(b) Require the applicant to submit additional information concerning
the application as may be necessary.] The department may adopt rules for
processing applications from applicants that are not eligible to receive a loan
under this section.
SECTION 38. ORS 285B.746 is amended to read:
285B.746. (1) The
Economic and Community Development Department may approve a loan requested in
an application filed under ORS 285B.743 if, after investigation, it finds that:
(a) The applicant is
enrolled in a small business management program with a small business
development center or certified entity;
(b) The applicant has
prepared a business plan for the business, which has been reviewed by a small business
development center or other entity certified by the Economic and Community
Development Department to review business plans; and
[(c) The applicant has developed an expenditure plan for the use of the
moneys received as a loan for the project under ORS 285B.740 to 285B.758; and]
[(d)] (c) The applicant is not
effectively owned or controlled by another business entity or other person
that, either by itself or when combined with the applicant, is not eligible for
a loan under ORS 285B.740 to 285B.758.
(2) In addition to the
requirements for loan approval described in subsection (1) of this section, in
order to obtain a loan under ORS 285B.740 to 285B.758, an applicant must also
satisfy two of the following conditions:
(a) The business or
proposed business, at the time of application, must not have been operating for
more than [24] 36 months.
(b) The business must
have annual revenues of less than [$100,000]
$175,000 in the 12-month period immediately preceding the date of
application.
(c) The business or
proposed business is owned in whole or in part by a person certified as being
severely disabled by the Department of Human Services or the Commission for the
Blind.
SECTION 39. ORS 285B.749 is amended to read:
285B.749. (1) The
Economic and Community Development Department may approve an entrepreneurial
development loan under ORS 285B.740 to 285B.758 if, after investigation, it
finds that:
(a) The loan has a
reasonable prospect of repayment from cash flow and collateral and that the
loan is fully secured by collateral value; and
(b) The applicant
provides equity funds for the project in the form of cash[,] or property [or business equity] in an amount equal
to or greater than 20 percent of the amount of the loan[; and].
[(c) The applicant can provide such evidence of assurance for repayment
as the department considers appropriate to the circumstances of the particular
applicant. However, loans need not be secured with real property.]
(2) The Economic and
Community Development Department [may make
an entrepreneurial development loan to any single applicant in an amount not
exceeding $25,000] shall determine the amount of the initial loan and
any subsequent loan to the borrower. The maximum of all loans to a borrower
from the
(3) Entrepreneurial
development loans shall be made for a period not exceeding five years at a rate
of interest that does not exceed 18 percent per annum.
[(4) The Economic and Community Development Department may defer
repayment of a loan by an applicant for a period not exceeding six months.
However, interest shall continue to accrue on the unpaid principal amount of
the loan during such period of deferred repayment.]
BUSINESS DEVELOPMENT PROJECTS
SECTION 40. ORS 285B.050 is amended to read:
285B.050. As used in ORS 285B.050 to 285B.098, unless the context
requires otherwise:
(1) “Applicant” means
any county, municipality, person or any combination of counties, municipalities
or persons applying for a loan from the
[(1)] (2) “Business development project” means the
acquisition, engineering, improvement, rehabilitation, construction, operation
or maintenance of any property, real or personal, that is used or is suitable
for use by an economic enterprise and that will result in, or will aid, promote
or facilitate, development of one or more of the following activities:
(a) Manufacturing or
other industrial production;
(b) Agricultural development
or food processing;
(c) Aquacultural
development or seafood processing;
(d) Development or
improved utilization of natural resources;
(e) Convention
facilities and trade centers;
(f) Transportation or
freight facilities; and
(g) Other activities
that represent new technology or type of economic enterprise the Oregon
Economic and Community Development Commission determines is needed to diversify
the economic base of an area but not including:
(A) Construction of
office buildings, including corporate headquarters; and
(B) Retail businesses,
shopping centers or food service facilities.
(3) “Collateral” has
the meaning given that term in ORS 79.0102 for property subject to a security
interest.
[(2)] (4) “Commission” means the Oregon Economic and
Community Development Commission established under ORS 285A.040.
(5) “County” means
any county or federally recognized
(6) “Emerging small
business” has the meaning given that term by ORS 200.005.
[(3)] (7) “Fund” means the Oregon Business Development Fund.
[(4) “Collateral” has the meaning given that term in ORS 79.0102 for
property subject to a security interest.]
(8) “Local
development group” means any public or private corporation that has as one of
its primary purposes, as stated in its articles of incorporation, charter or
bylaws, the promotion of economic development in any part of the State of
Oregon.
[(5)] (9) “Municipality” means any city, municipal
corporation or quasi-municipal corporation.
[(6)] (10) “Person” means any individual, association of
individuals, joint venture, partnership, limited liability company or
corporation.
[(7) “Local development group” means any public or private corporation
which has as one of its primary purposes, as stated in its articles of incorporation,
charter or bylaws, the promotion of economic development in any part of the
State of Oregon.]
[(8) “Applicant” means any county, municipality, person or any
combination of counties, municipalities or persons applying for a loan from the
[(9) “Owned and operated by women and minorities” means, with regard to
any specific business enterprise, the ownership or control of more than 50
percent of the units of proprietary or ownership interest in that business
enterprise by individuals who are women or minority individuals, as defined by
ORS 200.005.]
[(10) “Emerging small business” has the meaning given that term by ORS
200.005.]
[(11) “County” means any county or federally recognized
SECTION 41. ORS 285B.053 is amended to read:
285B.053. (1) Any
county, municipality, person or any combination of counties, municipalities and
persons may file with the Oregon Economic and Community Development Commission
an application to borrow money from the Oregon Business Development Fund for a
business development project as provided in ORS 285B.050 to 285B.098. The
application shall be filed in such a manner and contain or be accompanied by
such information as the commission may prescribe.
(2) Any applicant
receiving a loan from the [Oregon
Business Development] fund shall [annually]
report to the Economic and Community Development Department the estimated
number of jobs [created as a result of]
affected by the business development project financed under ORS 285B.050
to 285B.098. [The reporting requirement
under this section shall continue for five years following the receipt of the
loan proceeds or for the life of the loan, whichever period is longer.
Agreement to comply with the requirements of this section shall be a condition
for obtaining a loan from the
SECTION 42. ORS 285B.056 is amended to read:
285B.056. [(1) Upon receipt of an application under ORS
285B.053, the Oregon Economic and Community Development Commission shall
determine whether the plans and specifications for the proposed business
development project set forth in or accompanying the application are
satisfactory. If the commission determines that the plans and specifications
are not satisfactory, it shall:]
[(a) Reject the application with a written statement of the reason for
that rejection; or]
[(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 not to exceed $100. Moneys referred to in
this subsection shall be paid into the
SECTION 43. ORS 285B.059 is amended to read:
285B.059. (1) The
(a) The proposed
business development project is feasible and a reasonable risk from practical
and economic standpoints, and that the loan has reasonable prospect of
repayment.
(b) The applicant can
provide good and sufficient collateral for the loan.
(c) Moneys in the Oregon
Business Development Fund are or will be available for the proposed business
development project.
(d) There is a need for
the proposed business development project[, and the applicant’s financial resources
are adequate to ensure success of the project].
(e) The applicant has
not received or entered into a contract or contracts exceeding $1 million with
the commission, under authority of ORS 285B.050 to 285B.098, for the previous
365 days[, nor
is there an amount equal to 20 percent of the total value of the fund in
outstanding loans with the commission at any one time for business development
projects located in the same county as the proposed project. However, nothing
in this paragraph prevents the commission from making a loan to an emerging
small business, as provided in subsection (6) of this section, for a project in
a distressed area or making a loan of less than $100,000, as provided in ORS
285B.080].
[(2) Preference shall be given to a business development project which
has a high ratio of employment to the amount of money sought to be borrowed
from the Oregon Business Development Fund, which benefits businesses with fewer
than 50 employees or which is located within a rural or distressed area of the
state. Consideration also shall be given to the extent of participation by
local development groups, and the availability and cost of money to the
applicant from, or through, commercial lending or financial institutions, or
other financial sources, inasmuch as the Oregon Business Development Fund is
intended to complement, not supplant, other sources of money for economic
development.]
[(3)] (2) The total amount of moneys
loaned from the fund for any business development project shall not exceed 50
percent of the cost of the project. [Working
capital equity contributed by the applicant or a related party shall not be
included in the calculation of total project costs.]
[(4)] (3) Except [in
cases where] when the applicant is a county or municipality or
when there are payments other than the scheduled principal and interest
payments, no money shall be loaned from the fund for any business
development project unless there exists a commitment from a commercial or
private lender, or a local development group, to participate in the financing
of the project.
[(5)] (4) To encourage private sector and local development
group participation in the financing of business development projects, the
commission may subordinate the security position of the fund to that of other
lenders.
[(6)] (5) In each fiscal year of a biennium, not less than 15
percent of all moneys available for lending from the [Oregon Business Development] fund are reserved for loans to
certified emerging small business enterprises which are located in or draw
their workforces from within distressed areas as determined by the Economic and
Community Development Department in cooperation with the Employment Department
of this state. Any amounts reserved for loans to such businesses that are not
loaned in one fiscal year shall be added to the amount reserved for loans to
such businesses in the subsequent fiscal year. If the Economic and Community
Development Department is unable to obtain a sufficient number of approvable
applications to meet the requirements of this subsection, it may,
notwithstanding the limitations imposed by [ORS
285B.050 (1)(g)(B)] ORS 285B.050 (2)(g)(B), make loans to service
and retail businesses operated by [certified]
emerging small business enterprises.
[(7) In the operation of the Oregon Business Development Fund, the
commission and the department shall, to the maximum extent feasible and
consistent with constitutional limitations, seek to assure that an amount equal
to that specified in subsection (6) of this section be loaned to businesses
owned and operated by women and minorities.]
SECTION 44. ORS 285B.062 is amended to read:
285B.062. If the Oregon Economic and Community Development Commission
approves the business development project, the commission, on behalf of the
state, and the applicant may enter into a loan contract of not more than $1
million, secured by good and sufficient collateral, which shall set forth,
among other matters:
(1) A plan for repayment
by the applicant to the Oregon Business Development Fund of moneys borrowed
from the fund used for the business development project with interest charged
on those moneys at the rate of not less than one percentage point more than the
prevailing interest rate on United States Treasury bills, notes or bonds of a
comparable term, as determined by the commission. The repayment plan, among
other matters:
(a) Shall provide for
commencement of repayment by the applicant of moneys used for the business
development 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.
(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 is 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 25 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 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) May offer a discount not to exceed 10 percent of the outstanding
principal for the early repayment of the entire outstanding principal of any
loan. The commission by rule shall adopt policies that provide for greater
discounts for earlier repayments and that provide for greater discounts for
firms that have created at least one job per each $15,000 loaned to the firm
from the Oregon Business Development Fund.]
(f) Shall allow for
other forms of payment than principal and interest payments on loans, to be
outlined in administrative rules.
(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 Business Development]
fund for use in the business development project.
(4) Such further
provisions as the commission considers necessary to insure 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 business development project financed by the
Oregon Business Development Fund if the applicant is delinquent in the
repayment of any moneys due the fund.]
SECTION 45. ORS 285B.083 is amended to read:
285B.083. Except as
provided in ORS 285B.086, if any business development project is refinanced or
financial assistance is obtained from other sources after the execution of the
loan from the state, those [shall be
first] may first be used to repay the state, unless provided
otherwise by the committee, if the refinancing or financial assistance applies
only to the business development project authorized and does not include any
subsequent addition, expansion, improvement or further development.
SECTION 46. ORS 285B.089 is amended to read:
285B.089. If the Oregon
Economic and Community Development Commission approves
an application for the loan of moneys authorized by ORS 285B.086, the
commission shall enter into a loan contract, secured by good and sufficient
collateral as determined by the commission, with the applicant that
provides, among other matters:
(1) That the loan bear
interest at the same rate of interest as provided in ORS 285B.062 (1).
(2) That the contract
shall set forth a schedule of payments including interest and principal for the
period of the loan, which shall not exceed the usable life of the contracted
project or 25 years from the date of the contract, whichever is less, and shall
set forth the manner of determining when loan payments are delinquent. The same
schedule shall include repayment of interest which accrues during any period of
delay in repayment authorized by ORS 285B.050 to 285B.098, and the repayment
schedule may require payments of varying amounts for collection of that accrued
interest. However, the commission may make provisions for extensions of time in
making repayment if the delinquencies are caused by acts of God or other
conditions beyond the control of the applicant and the security will not be
impaired thereby.
(3) Such provisions as
the commission considers necessary to insure expenditure of the moneys loaned
for the purposes provided in ORS 285B.086, including all provisions of ORS
285B.059.
SECTION 47. ORS 285B.092 is amended to read:
285B.092. (1) There is
created within the State Treasury a revolving fund known as the Oregon Business
Development Fund, separate and distinct from the General Fund. Interest earned
by the fund shall be credited to the 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 marketing public business finance, processing
applications, investigating proposed business development projects and
servicing outstanding loans. 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
four percent of the total asset value of the fund.
(b) Payment of loans to
applicants under ORS 285B.050 to 285B.098.
(c) Actions the
commission deems necessary to obtain repayment of outstanding loans.
[(c)] (d) Purchase or buyout of superior or prior liens or
mortgages on or a security interest in any business development project
financed in part by a loan from the fund, when the commission determines:
(A) A loan from the fund
is in default and is in liquidation or at risk of being forced into liquidation
by another creditor to the project; and
(B) [Such] The action is necessary to
maintain or enhance the value of the commission’s collateral in the project.[; and]
[(C) The amount of the purchase or buyout of superior or prior liens or
mortgages on that project does not exceed $1 million.]
(2) The fund created by
subsection (1) of this section shall consist of:
(a) Fees [required by ORS 285B.056 (2) and 285B.068
(2)] as determined by the commission.
(b) Repayment of moneys
loaned to counties, municipalities or persons from the [Oregon Business Development] fund, including interest on those
moneys or including other receipts.
(c) Payment of such
moneys as may be appropriated to the fund by the Legislative Assembly.
(d) Moneys obtained from
any interest accrued from funds.
(e) Moneys from any
grant made to the fund by any federal agency.
[(3) Notwithstanding any other law, if at any time there are
insufficient funds in the Oregon Entrepreneurial Development Loan Fund
established by ORS 285B.758, the Director of the Economic and Community
Development Department may direct the transfer of unobligated funds from the
Oregon Business Development Fund to the Oregon Entrepreneurial Development Loan
Fund. Transfers under this subsection shall be in amounts necessary to meet the
reasonably foreseeable demand for participation in the entrepreneurial loan
program.]
(3) All repayments,
interest and other receipts from outstanding indebtedness or any other source
shall be retained and accumulated in the fund and shall be used for the
purposes of the fund.
(4) Notwithstanding any
other law, if at any time there are insufficient funds in established business
finance programs, the commission may direct the transfer of unobligated funds
from the fund.
SECTION 48. ORS 285B.093 is amended to read:
285B.093. (1) The Oregon
Economic and Community Development Commission may establish the Oregon Targeted
Development Account as an account within the Oregon Business Development Fund.
(2) [If the account is established,] The purpose of the Oregon Targeted Development Account is to
promote cooperation and foster partnership among the commission, the Economic
and Community Development Department and financial institutions in
(3) The [Economic and Community Development]
department may make loans from the Oregon Targeted Development Account in
distressed areas without regard to the minimum rate of interest that is
otherwise applicable under ORS 285B.062. The department may make loans in
distressed areas at an interest rate that is determined by the [Oregon Economic and Community Development]
commission.
[(4) ORS 285B.059 (2) does not apply to business development projects
financed wholly or in part with moneys from the
SECTION 49. The Economic and Community Development
Department shall develop rules governing repayment of loans to the
CAPITAL ACCESS PROGRAM
SECTION 50. ORS 285B.126 is amended to read:
285B.126. As used in ORS 285B.126 to 285B.147, unless the context
requires otherwise:
(1) “Brownfield” or “brownfields”
has the meaning given that term in ORS 285A.185.
(2) “Capital access
program” means the program established by ORS 285B.126 to 285B.147.
(3) “Environmental
action” has the meaning given that term in ORS 285A.188.
(4) “Financial institution” means a financial
institution, as defined in ORS 706.008.
[(2)] (5) “Loss reserve account” means an account in the
State Treasury or any financial institution [which] that is established and maintained by the Economic
and Community Development Department for the benefit of a financial institution
participating in the capital access program [established under ORS 285B.126 to 285B.147].
[(3)] (6) “Qualified business” means any person, conducting
business for profit or not for profit, that is authorized to conduct business
in the State of
[(4)] (7) “Qualified loan” means a loan or portion of a loan
made by a financial institution to a qualified business for any business
activity that has its primary economic effect in
(a) A loan for the purchase
of owner-occupied residential housing or for the construction,
improvement or purchase of residential housing owned or to be owned by
the borrower.
(b) A loan for purchase
of real property that is not used for the business operations of the borrower.
(c) A loan for the
refinancing of an existing loan when and to the extent that the outstanding
balance is not increased.
SECTION 51. ORS 285B.129 is amended to read:
285B.129. [(1) The Legislative Assembly finds that:]
[(a) There is a persistent shortage of equity
capital available to small businesses in
[(b) Small businesses make important contributions to economic growth
and vitality in this state.]
[(c) Many financial institutions in
[(2)] It is the purpose of ORS 285B.126 to 285B.147 to establish a
capital access program under which the State of Oregon will provide public
fiscal resources to assist Oregon financial institutions to overcome obstacles
and constraints in meeting the full range of economically sound financing needs
of Oregon businesses.
SECTION 52. ORS 285B.132 is amended to read:
285B.132. (1) The
Economic and Community Development Department may contract with any financial
institution for the purpose of allowing the financial institution to
participate in the capital access program established by ORS 285B.126 to
285B.147.
(2) A contract between
the [Economic and Community Development]
department and a financial institution under this section shall provide:
(a) For the creation of
a loss reserve account by the department for the benefit of the financial
institution.
(b) That the financial
institution, qualified business and the department will deposit moneys to the
credit of the institution’s loss reserve account when the financial institution
makes a qualified loan to a qualified business.
(c) That the department
will pay moneys in the loss reserve account, not exceeding an amount equal to
the total amount credited to the loss reserve account, to the financial
institution to reimburse the institution for any financial loss incurred as a
result of any qualified loan made under the capital access program established
by ORS 285B.126 to 285B.147.
(d) That the liability
of the State of
(e) That the financial
institution shall provide such information as the department may require,
including financial information that is identifiable with, or identifiable
from, the financial records of a particular customer who is the recipient of a
qualified loan.
(f) For such other terms
as the department may require.
(3) A financial
institution is not subject to ORS 192.555 (1) when the financial institution
provides information to the [Economic and
Community Development] department as required by subsection (2)(e) of this
section.
SECTION 53. ORS 285B.135 is amended to read:
285B.135. (1) The
Economic and Community Development Department shall establish a loss reserve
account for each financial institution with which the department makes a
contract under ORS 285B.132.
(2) The loss reserve
account for a financial institution shall consist of moneys paid as fees by
borrowers and the financial institution under ORS 285B.138 and moneys
transferred to the account from the Capital Access Fund under ORS 285B.138.
(3) Notwithstanding ORS
chapter 293 or 295, the department may establish and maintain loss reserve
accounts with any financial institution under such policies as the department
may adopt. [The department may deposit up
to $50,000 per financial institution in a loss reserve account to encourage a
financial institution to participate in the capital access program. The total
amount of such deposits may not exceed $250,000 per biennium.] The
department may establish rules to encourage financial institutions to
participate in the capital access program.
(4) All moneys in a loss
reserve account established under ORS 285B.126 to 285B.147 are the property of
the State of
[(5) The amounts transferred from the Capital Access Fund to a loss
reserve account on behalf of any single qualified business shall not exceed
$150,000.]
SECTION 54. ORS 285B.138 is amended to read:
285B.138. (1) When a
financial institution participates in the capital access program [established by ORS 285B.126 to 285B.147],
if the financial institution decides to enroll a qualified loan under the capital
access program in order to obtain the protection against loss provided by its
loss reserve account, the financial institution shall notify the Economic and
Community Development Department of the loan within 30 days after the loan is
made. The notification shall be in writing on a form prescribed by the
department.
(2) When making a
qualified loan that will be enrolled under the capital access program, the
financial institution shall require the qualified business to which the loan is
made to pay a fee of not less than one and one-half percent of the principal
amount of the loan but not more than three and one-half percent of such
principal amount. The financial institution shall also pay a fee in an amount
equal to the fee paid by the borrower. The financial institution shall deliver
the fees collected under this subsection to the department for deposit in the
loss reserve account for the institution.
(3) When depositing fees
collected under subsection (2) of this section to the credit of the loss reserve
account for a financial institution, the department shall transfer an amount
that is not less than the total amount of the fees paid by the borrower and the
financial institution from the Capital Access Fund to the loss reserve account
for the institution.
(4) Notwithstanding
subsections (1) to (3) of this section, the department may adopt rules
providing that, for qualified loans to businesses in distressed areas or for
use in an environmental action on brownfields, the department may transfer an
amount that is not less than 150 percent of the total amount of the fees paid
by the borrower and the financial institution from the Capital Access Fund to
the loss reserve account of the institution. The total amount transferred under
this section may not exceed 40 percent of the moneys appropriated to the fund.
For purposes of this subsection, “distressed areas” shall have the meaning
given that term by the department by rule.
SECTION 55. ORS 285B.147 is amended to read:
285B.147. (1) There is
established in the State Treasury, separate and distinct from the General Fund,
the Capital Access Fund. All moneys in the fund are continuously appropriated
to the Economic and Community Development Department for the purpose of making
payments to loss reserve accounts established under ORS 285B.126 to 285B.147.
(2) Moneys in the
Capital Access 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 investment
shall be credited to the Capital Access Fund.
(3) The Capital Access
Fund shall consist of:
(a) Moneys appropriated
to the fund by the Legislative Assembly.
(b) Interest earned on
moneys in the fund.
(c) Moneys returned to
the fund from loss reserve accounts or other sources.
(4) If the department
deems retrieval of interest earned on loss reserve accounts appropriate, the
department may transfer into the fund up to 50 percent of the interest earned
on moneys in loss reserve accounts.
[(4)] (5) The [Economic
and Community Development] department may charge administrative costs to
the fund to pay for actual and necessary administrative expenses incurred by
the department in administering the fund and establishing and maintaining loss
reserve accounts under ORS 285B.126 to 285B.147.
CREDIT ENHANCEMENT FUND
SECTION 56. ORS 285B.200 is amended to read:
285B.200. As used in ORS 285B.200 to 285B.218:
(1) “Brownfield” or “brownfields”
has the meaning given that term in ORS 285A.185.
[(1) “Department” means the Economic and Community Development
Department.]
(2) “Eligible project
costs” includes productive equipment and machinery, working capital for
operations and export transactions and such other costs as the Economic and
Community Development Department, by rule, may provide.
[(3) “Emerging small business” has the meaning given that term in ORS
200.005.]
(3) “Environmental
action” has the meaning given that term in ORS 285A.188.
(4) “Financial
institution” includes institutions listed in ORS 706.008 and such other
institutions defined by rule of the Economic and Community Development
Department as financial institutions for purposes of ORS 285B.200 to 285B.218.
(5) “Qualified business”
means any existing or proposed business [entity
with an average annual employment not exceeding 200 employees] that, except
when located within a distressed area, as defined by the Economic and Community
Development Department, sells goods or services in markets for which national
or international competition exists or that owns, occupies, operates or has
entered into an agreement to own, occupy or operate real property containing a
brownfield, as defined in ORS 285A.185. The term includes professional services
companies providing services to traded sector industries and other entities
within and outside of this state.
(6) “Value-added
agricultural products” means agricultural products that have been processed,
transformed or refined to the point where they may be distributed to a final
consumer without further processing, transformation or refining. The term also
includes agricultural products that are processed, transformed or refined for
distribution to other than final consumers when such processing, transformation
or refining represents a substantial increment in value as determined by the
Economic and Community Development Department in consultation with the State
Department of Agriculture.
SECTION 57. ORS 285B.203 is amended to read:
285B.203. [(1) The Legislative Assembly finds that:]
[(a) Small and medium sized businesses in
general, and firms that produce value-added agricultural products in
particular, are adversely affected by the current credit crisis.]
[(b) Small companies have historically had a difficult time obtaining
credit, especially on terms that allow them to grow and to create jobs.]
[(c) The limited availability of credit for export transactions limits
the ability of small and medium sized businesses in
[(d) The challenge for the public economic sector is to design programs,
in conjunction with lending institutions in the private economic sector, that fill the gaps in credit availability and export
finance.]
[(e) Without substantial financial assistance to promote redevelopment,
properties containing brownfields, as defined in ORS 285A.185, often remain
abandoned or underutilized because of the uncertainty concerning environmental
contamination at the sites and the cost of reducing or eliminating the
contamination.]
[(2)] The Legislative Assembly declares that it is the purpose of
the Credit Enhancement Fund [established
under ORS 285B.215 (1) and (2)] to:
[(a)] (1) Create incentives and
assistance to increase the flow of private capital to the value-added
agriculture industries.
[(b)] (2) Promote industrial modernization and technology
adoption.
[(c)] (3) Encourage the retention
and creation of family wage jobs.
[(d)] (4) Encourage the export of
goods and services by
[(e)] (5) Encourage and promote the redevelopment of brownfields[, as
defined in ORS 285A.185,] by providing assistance to perform environmental
action[, as defined in ORS 285A.188,]
on brownfield sites.
SECTION 58. ORS 285B.206 is amended to read:
285B.206. (1) The
Economic and Community Development Department shall develop a program under
which the department, under contracts with financial institutions, shall
provide loan guarantees, insurance, coinsurance in conjunction with other
providers of loan guarantee programs or other forms of credit guarantees for
qualified businesses for eligible project costs.
(2) In administering the
program created by ORS 285B.200 to 285B.218, the department shall consult and
cooperate with financial institutions in this state. The program shall be
administered so that administrative procedures and application procedures are
as responsive to the needs of qualified businesses and financial institutions
as practicable, consistent with prudent investment and lending practices and
criteria.
(3) The department shall
prescribe by rule the loan or credit guarantee application procedure for a
financial institution on behalf of a qualified business.
(4) When the department
approves a loan or credit guarantee, the department shall enter into a loan or
credit guarantee agreement with the financial institution. The agreement shall
specify:
(a) The fee to be
charged to the financial institution;
(b) The evidence of debt
assurance of, and security for, the loan or credit guarantee;
(c) A loan guarantee or
credit guarantee which does not exceed 15 years; and
(d) Such other terms and
conditions considered necessary or desirable by the department.
[(5) The department may adopt procedures for loan or credit guarantees
whereby a qualified business may apply directly to the department for a
preliminary guarantee commitment. Such preliminary guarantee commitments may be
issued by the department subject to the qualified business securing a
commitment for financing from a financial institution. The procedures adopted
by the department shall specify the process by which a financial institution
may obtain a final loan or credit guarantee.]
SECTION 59. ORS 285B.209 is amended to read:
285B.209. (1) When
making loan or credit guarantees under the program established under [ORS 285B.206] ORS 285B.200 to 285B.218,
the Economic and Community Development Department shall establish fees and
other terms for loan or credit guarantees that are calculated to reasonably
assure that businesses with access to other forms of private capital will find
it economical not to participate in the program.
(2) The department, with
due regard for the possibility of losses and administrative costs, shall set
fees and other terms at levels sufficient to reasonably assure that the program
is self-financing.
[(3) When making loan or credit guarantees under the program established
under ORS 285B.200 to 285B.218, the department shall establish fees and other
terms for loan or credit guarantees that are calculated to reasonably assure
that qualified businesses with access to other forms of private capital will
find it economical not to participate in the program.]
[(4) With due regard for the possibility of losses and administrative
costs, the department shall set fees and other terms at levels sufficient to
reasonably assure that the program is self-financing.]
[(5) For a preliminary guarantee commitment issued under ORS 285B.206
(5), the department may charge the qualified business an application fee. The
fee shall be in addition to any other fees charged by the department under this
section and may not exceed $250 for each application.]
SECTION 60. ORS 285B.215 is amended to read:
285B.215. (1) There is
established in the State Treasury, separate and distinct from the General Fund,
the Credit Enhancement Fund. All moneys in the fund are continuously
appropriated to the Economic and Community Development Department for the
following purposes:
(a) Payment of claims
pursuant to contracts for loan or credit guarantees under ORS 285B.200 to
285B.218.
(b) Payment of
administrative costs of the department for actual and necessary administrative
expenses incurred by the department in administering the fund and establishing
and maintaining the program established under ORS 285B.200 to 285B.218.
(c) Repayment of
transfers of funds required or authorized by law.
(d) Purchase or buyout
of superior or prior liens, mortgages or security interests.
(2) Moneys in the Credit
Enhancement Fund shall consist of:
(a) Moneys appropriated
to the fund by the Legislative Assembly, including moneys derived from the
Administrative Services Economic Development Fund.
(b) Proceeds from
collateral assigned to the department.
(c) Interest earned on
moneys in the fund.
(d) Transfers of moneys
to the fund.
(e) Fees assessed for
guarantees, as determined by the department.
(f) Moneys from gifts.
(g) Moneys from any
grant made to the fund by any federal agency.
(h) Proceeds of
insurance provided by the Export-Import Bank of the
[(3) In each biennium, not less than 20 percent of all moneys available
for loan guarantees from the Credit Enhancement Fund is
reserved for loan guarantees to emerging small businesses.]
SECTION 61. ORS 285B.218 is amended to read:
285B.218. (1) The
Economic and Community Development Department is authorized to pledge up to $75
million to assure the repayment of loan guarantees or other extensions of
credit made to or on behalf of qualified businesses for eligible projects
costs.
(2) If the balances in
the Credit Enhancement Fund are insufficient to cover any claims by financial
institutions that arise from loan and credit guarantees made under ORS 285B.200
to 285B.218, the Oregon Department of Administrative Services is directed to
transfer in the fiscal year as often as appropriate any funds from the
Administrative Services Economic Development Fund to cover such principal,
interest and claims, subject to the condition that no such transfer shall be
made prior to the satisfaction of any constitutionally dedicated
distribution, the allocation under ORS 391.130 to the Regional Light Rail
Extension Construction Fund [and the
allocation to the Department of Environmental Quality for the debt services
described in section 1, chapter 537, Oregon Laws 1993] or any allocations
related to the lottery bond program authorized by ORS 286.560 (6)(a) or (b).
REGIONAL ECONOMIC DEVELOPMENT
SECTION 62. ORS 285B.230 is amended to read:
285B.230. As used in ORS 285B.230 to 285B.269, unless the context
requires otherwise:
(1) “Region” means
groups of counties designated by the Economic and Community Development
Department or recognized in a regional partnership as provided in ORS 285B.236
(3).
(2) “Regional board”
means a board comprised of individuals described in ORS 285B.242 (1) and
jointly appointed by the county governing bodies of each county in the region
to develop, fund, implement and monitor the achievement of the regional
investment strategy.
(3) “Regional investment
strategy” is a long-term economic development strategy, updated [each biennium] at least once every
six years, that focuses on the economic development priorities of each
region, including but not limited to:
[(a) Supporting communities and populations
that have been left out of
[(b) Helping companies that are starting up or are already doing
business in
(a) Retaining and
creating jobs and raising real wages;
(b) Promoting the
structures and processes of public and private organizations to effectively
create, adapt, foster and sustain economic development in this state,
emphasizing rural and distressed areas;
(c) Ensuring that
economic strategies reinforce
(d) Coordinating [efforts of economic development, education
and workforce development] economic development efforts and efforts to
support a locally skilled workforce in order to compete in the global economy.
(4) “Regional
partnership” means a group of regional and economic development partners,
including but not limited to cities, counties, ports, Indian tribes, special
districts, nonprofit organizations and private organizations, that join
together as a regional partnership in a memorandum of understanding between the
members of the partnership and the directors of the Department of
Transportation, the Economic and Community Development Department, the Housing
and Community Services Department, the Department of Land Conservation and
Development, the State Department of Agriculture, the Department of State Lands
and the Department of Environmental Quality to provide a forum for coordination
of economic development planning and investments so that strategies and
processes for economic development are leveraged to the greatest extent
possible to meet agreed-upon priority issues, challenges and goals.
SECTION 63. ORS 285B.236 is amended to read:
285B.236. (1) The
Economic and Community Development Department, by rule, shall adopt guidelines
for submission of regional investment strategies and distribution of funds.
(2) The guidelines shall
provide that the regional investment strategies are approved in accordance with
criteria reflecting the economic benefits to the state. Each regional
investment strategy must at a minimum set forth in measurable terms the extent
to which the strategy will accomplish the economic development priorities of
the region.
(3) The department, in
collaboration with counties, shall establish regions, based on information and
advice received from county governing bodies and on historical, cultural and
economic links among counties. Unless there is a recognized regional
partnership, a region shall consist of at least two contiguous counties.
For any area in which a regional partnership is established, the department may
accept the regional boundaries designated by the partnership.
(4) The department shall
require each region to examine its economic development needs.
SECTION 64. ORS 285B.239 is amended to read:
285B.239. (1)
Regional investment strategies shall serve as a basis for state financial
assistance to projects or activities to meet regional and rural economic
development priorities. Each group of counties that forms a region shall submit
a regional investment strategy that at a minimum shall include the following
elements:
[(1)] (a) An identification of
short-term and long-term regional economic development priorities;
[(2)] (b) An analysis of the unique
or significant resources that provide the foundation for the regional investment
strategy;
[(3)] (c) An analysis of barriers to implementation of the
regional investment strategy and an identification of the means to overcome
those barriers;
(d) A rural action
plan;
[(4)] (e) A long-term plan to implement the regional
investment strategy, including necessary actions by:
[(a)] (A) Local governments;
[(b)] (B) The private sector;
[(c)] (C) State government; and
[(d)] (D) Federal government;
[(5)] (f) A [two-year] six-year investment strategy that describes
projects [and] or activities
to be undertaken or funded by the state from lottery proceeds and other
sources. For a region that has a recognized regional partnership under
ORS 285B.236, the projects or activities may include investment of all or part
of the moneys received by the region from the Regional Investment Fund [or the Rural Investment Fund] to provide
moneys for the administration or financing of long-term or future economic
development projects or activities;
[(6)] (g) A plan for involvement of disadvantaged and minority
groups in the region;
[(7)] (h) Performance measurements for meeting the objective
set forth in ORS 285B.236 (2). Each region shall develop an evaluation plan, as
part of its regional investment strategy, for measuring and monitoring regional
investment strategy performance. The evaluation plan shall include regional
benchmarks for monitoring achievement of the regional investment strategies and
priorities. When regional benchmarks are established, regional performance
measures shall be determined after negotiation between the regional board and
the Oregon Economic and Community Development Commission. The regional
performance measures shall include goals for:
[(a)] (A) Projected long-term and
short-term job creation and retention activities, including the number of jobs
created and retained and wage levels;
[(b)] (B) Leveraging long-term
investments; and
[(c)] (C) Maximizing moneys
leveraged with short-term investments;
[(8)] (i) Periodic submission by the regional board of
performance reports, in a form prescribed by the Economic and Community
Development Department for regional investment strategies, to the county
governing bodies in the region, the Oregon Economic and Community Development
Commission[, the Governor] and the
Legislative Assembly; and
[(9)] (j) An overall [strategy management] management plan
and project or activity implementation strategy that demonstrates that a region
has the capacity to allocate resources and insures that such resources are
effectively used.
(2) Each regional board
shall include a rural set aside consistent with the purposes and objectives of
the Regional Investment Fund described in subsection (1)(f)
of this section.
(3) In each biennium, a
regional board may dedicate all or a portion of the moneys distributed to the
board from the Regional Investment Fund for technical assistance and staff
support for updating the regional investment strategy and for developing
programs and projects. The regional board shall determine the amount of moneys
dedicated to such purposes.
SECTION 65. ORS 285B.242 is amended to read:
285B.242. (1) The governing body of each county of this state shall be
responsible for the submission of a regional investment strategy as provided in
ORS 285B.239. The governing body of a county shall designate a regional board
to develop the regional investment strategy. The regional board shall consist
of individuals who represent various local interests including cities,
counties, ports, special districts and Indian tribes and significant representation
from the private [economic] sector.
The regional board shall include members who are representatives of rural interests[, including
local government].
(2) The regional board
shall be responsible for developing the regional investment strategy for the
region.
(3) The regional board
shall hold a public hearing in each county in the region prior to a vote by the
governing bodies of the counties to recommend to the [Governor] Economic and Community Development Department the
regional investment strategy described in ORS 285B.239.
(4) In developing the six-year
implementation strategy provided for in ORS 285B.239 [(5)] (1)(f), a regional board shall consult with industries,
cities, ports, special districts, rural representatives, regional
workforce committees and federally recognized Oregon Indian tribes located in
the region.
(5) A region shall
submit the regional investment strategy to the [Economic and Community Development] department for review by the
Oregon Economic and Community Development Commission. The department shall work
with regions to refine regional investment strategies and ensure compliance
with the requirements of ORS 285B.230 to 285B.269. [The
(6) The [Economic and Community Development
Department] commission shall be responsible for identifying common
issues among regions, developing statewide strategies and organizing
opportunities for regions to address them.
(7) After a regional
investment strategy is developed by a regional board, adopted by the governing
bodies of the counties and approved by the [Governor]
commission, the regional board, [in
each biennium] every six years, shall update the strategy and
recommend [a two-year] the
implementation [strategy] plan.
The implementation [strategy] plan
shall be adopted by the governing bodies of the counties after input from the
cities, ports, special districts, rural representatives, Indian tribes,
private [economic] sector and other
parties in the region, and shall be reviewed by the [Oregon Economic and Community Development
Commission and must be approved by the Governor before taking effect]
commission.
(8) The [Governor] commission may delegate
responsibility for review and approval of a regional investment strategy to a
regional partnership.
SECTION 66. ORS 285B.245 is amended to read:
285B.245. [(1) After considering
the recommendations submitted, the Governor may adopt a proposed regional
investment strategy or return the strategy to the affected counties for
modification.]
[(2)] (1) The Economic and Community Development Department
shall coordinate adopted regional investment strategies with existing state and
local economic development efforts to support a state strategy for economic
development. Regions using regional investment funds for tourism or industrial
marketing projects must, as a condition for receiving the funds, demonstrate
that the projects complement and are consistent with existing statewide
marketing campaigns. The department shall work with regions to ensure
coordination among statewide marketing efforts and regional tourism, [and] industrial marketing projects and
industrial or commercial land development funded through the regional
investment program established under ORS 285B.230 to 285B.269.
[(3)] (2) The department shall
discourage competition among regions for existing
SECTION 67. ORS 285B.260 is amended to read:
285B.260. (1) There is
created a Regional Investment Fund, separate and distinct from the General
Fund, to consist of all moneys credited thereto, including moneys from the
Administrative Services Economic Development Fund, and all interest earned on
the Regional Investment Fund. The fund is continuously appropriated to the
Economic and Community Development Department to be used for grants to
implement ORS 171.845, 280.518 and 285B.230 to 285B.269.
(2) The department may
use moneys in the Regional Investment Fund to pay for the administrative
expenses of operating the regional investment program under ORS 285B.230 to
285B.269.
(3) The fund shall not
be used to retire any debt [or to],
to reimburse any person or municipality for expenditures made or expenses
incurred prior to the adoption of a regional investment strategy or to
substitute for local government expenditures for existing and continuing public
services. The department shall adopt rules to carry out the provisions of this
subsection.
(4) After consulting
with regional boards and representatives of rural communities, the department,
by rule, shall adopt standards, objectives and criteria for the use and
distribution of moneys in the Regional Investment Fund.
(5) The Regional
Investment Fund is created to provide a flexible funding source for financing
those locally determined programs and projects that may not be eligible for
financing through other state and federal funding sources.
SECTION 68. ORS 285B.263 is amended to read:
285B.263. (1) In each biennium, the Economic and Community Development
Department shall expend moneys from the Regional Investment Fund for:
(a) Technical assistance
and staff support for preparation and update of regional investment strategies;
(b) Projects or
activities implementing an approved regional investment strategy and
implementing priorities described in the strategy; [and]
(c) Personnel necessary
to administer the strategies and projects or activities[.]; and
(d) Other activities
consistent with the adopted regional investment strategy in accordance with ORS
285B.239.
(2) In each biennium,
the Oregon Economic and Community Development Commission, by rule and in
agreement with the Association of Oregon Counties, League of Oregon Cities and
Oregon Public Ports Association, may provide funds from any source available to
the department to establish strategic regional investment opportunities
consistent with the policies described in ORS 285B.266. Funding for projects or
activities under this subsection shall be awarded, at the discretion of the
commission, according to the quality of the defined projects or activities.
(3) In each biennium, a
regional board may dedicate a portion of regional investment funds for
technical assistance and staff support for regional investment strategy
development and refinement and development and administration of regional
partnerships. The portion of funds so dedicated shall be determined by the
commission. The commission shall provide regional boards with these funds prior
to approval of regional investment strategies.
(4) In each biennium, a
regional board may dedicate a portion of regional investment funds to provide
grants or loans to individual private businesses for fixed asset acquisition.
Such funds must be used to make grants and loans that are consistent with the
regional investment strategy and that support the regional priorities included
in the regional investment strategy. The terms and conditions of grants or
loans to be made under this subsection must be contained in the regional
investment strategy at the time it is submitted for [state] department review.
(5) After a regional
investment strategy is adopted, the department in each calendar quarter shall
provide regional investment funds, less any moneys used for technical
assistance and staff support for regional investment strategy development, to
the region. Moneys received under this subsection shall be used for development
of projects or activities based upon an evaluation by the regional board of the
merit and readiness of the projects or activities. Projects and activities that
receive such financial assistance must be consistent with the priorities of the
approved regional investment strategy.
(6) In each biennium,
each regional board shall submit a report to the [Governor] commission and the Legislative Assembly that
describes the expenditure of moneys received under this section and indicates
the success, as defined by specified performance measurements, of the funded
projects or activities in achieving the regional economic development
priorities described in ORS 285B.236 (2).
SECTION 69. ORS 285B.264 is amended to read:
285B.264. [(1) Notwithstanding ORS 285B.254 (3),
distributions from the Rural Investment Fund created under ORS 285B.254 and]
The Regional Investment Fund created under ORS 285B.260 shall be evaluated by
the Economic and Community Development Department to determine if the
regional investment strategy funded by a distribution has met the criteria
established by the strategy for:
[(a)] (1) Long-term and short-term
job creation and retention activities, including the number of jobs created and
retained and wage levels;
[(b)] (2) Leveraging long-term
investments; [and]
[(c)] (3) Maximizing moneys
leveraged with short-term investments[.];
and
(4) The success of other
strategic, long term economic development projects funded.
[(2) The Economic and Community Development Department shall adopt rules
to ensure that future grants to a regional board are based on the past
performance of the board in meeting the criteria established for the regional
investment strategy described in subsection (1) of this section.]
SECTION 70. ORS 196.620 is amended to read:
196.620. (1) For each mitigation bank, the Department of State Lands
shall establish a system of resource values and credits.
(2) A credit from a
mitigation bank may be withdrawn for a condition imposed on a permit in
accordance with ORS 196.825 (5), for any other authorization issued in
accordance with ORS 196.800 to 196.905 or to resolve a violation of ORS 196.800
to 196.905. At the request of a mitigation bank sponsor, the Director of the
Department of State Lands may authorize the withdrawal of mitigation bank credits
by a public benefit corporation as defined in ORS 65.001 or a public body as
defined by ORS 174.109 designated by the director for the purpose of reserving
credits for future use in accordance with this subsection. The director shall
manage such transactions to ensure that each credit is used no more than one
time to satisfy a use in accordance with this section.
(3) Credits from a
freshwater mitigation bank may be used only as described in subsection (2) of
this section for permits, authorizations or resolutions of violations approved
within the service area of the mitigation bank, consistent with the mitigation
bank instrument, unless the Director of the Department of State Lands
determines, in exceptional circumstances, that it is environmentally preferable
to exceed this limitation.
(4) Credits from an
estuarine mitigation bank may be used only as described in subsection (2) of
this section for permits, authorizations or resolutions of violations approved
within the same estuarine ecological system.
(5) The director may not
withdraw any credits from any mitigation bank until the director has:
(a) Taken actions
sufficient to establish hydrological function of the mitigation bank site;
(b) Conducted other
creation, restoration and enhancement actions to establish other wetland
functions and values at the mitigation bank site; and
(c) Evaluated the
results of the actions and determined that a high probability exists that the
wetland functions and values of the mitigation bank site are equal to or greater
than the functions and the values of the wetland area to be damaged or
destroyed.
(6) The price for any
mitigation credit shall be set at an amount that will compensate the state for
all of the costs and expenses the state has incurred, and is expected to incur
in establishing and maintaining that portion of the mitigation bank.
(7) The director shall
not consider the availability or nonavailability of mitigation bank credits in
deciding whether to grant or deny any removal or fill permit under ORS 196.600
to 196.905.
(8) The director
annually shall:
(a) Evaluate the
wetlands functions and values created within each wetland mitigation bank site;
and
(b) Compare the current
functions and values with those that the director anticipated that the mitigation
bank would provide. If the director finds any significant disparity between the
actual and anticipated functions and values, the director shall:
(A) Suspend the
withdrawal of credits to that mitigation site; or
(B) Take prompt action
to ensure that the anticipated functions and values are established.
(9) The director may not
withdraw credits from the mitigation bank for a specific permit, authorization
or resolution of a violation if the director determines that:
(a) The credits for that
specific permit, authorization or resolution of a violation would not
adequately maintain habitat or species diversity; or
(b) The mitigation bank
site for which credits are proposed to be withdrawn is not sufficiently similar
in wetland functions and values to the wetland area to be damaged or destroyed.
INDUSTRY OUTREACH
SECTION 71. The Industry Outreach Fund is established
in the State Treasury, separate and distinct from the General Fund. The
Industry Outreach Fund shall consist of all moneys credited to the fund,
including moneys from the Administrative Services Economic Development Fund.
Interest earned by the Industry Outreach Fund shall be credited to the fund.
Moneys in the fund are continuously appropriated to the Economic and Community
Development Department for all of the following purposes:
(1) To provide funds for
activities outlined in ORS 285B.266.
(2) To assist traded
sector and cluster affiliated
INDUSTRIAL DEVELOPMENT
REVENUE BONDS
SECTION 72. ORS 285B.320 is amended to read:
285B.320. [The Legislative Assembly finds that by use
of the powers and procedures described in ORS 285B.320 to 285B.371 for the
assembling and financing of lands for industrial, solid waste disposal,
commercial and research and development uses and for the construction and
financing of facilities for such uses, financed through the issuance of bonds
secured solely by the properties, lease payments, loan payments, rentals or
other financing payments thus made available, the state may be able to reduce
substantially in various counties the occurrence of economic conditions requiring
more expensive remedial action.] It is the purpose of ORS 285B.320 to
285B.371 to authorize the exercise of powers granted by ORS 285B.320 to
285B.371 by this state in addition to and not in lieu of any other powers it
may possess.
SECTION 73. ORS 285B.323 is amended to read:
285B.323. As used in ORS 285B.320 to 285B.371, unless the context
requires otherwise:
(1) “Bond” means any
evidence of indebtedness, including but not limited to any bond, note,
obligation, loan agreement, financing agreement, contracts for leasing, rental
or financing of real or personal property, including contracts for rental, long
term leases under an optional contract for purchase, financing agreements with
vendors, financial institutions or others or for purchase of any property
secured by revenues or from other financing sources as provided in ORS 285B.320
to 285B.371. A bond, as defined in this subsection and issued under ORS
285B.320 to 285B.371, shall be considered a revenue bond for purposes of ORS
286.031.
(2) “Economic
development project” includes any properties, real or personal, used or useful
in connection with a revenue producing enterprise [or any solid waste disposal facilities and], exempt facilities
or nonprofit entities and related vehicles, rolling stock or equipment. “Economic
development project” [shall] does not include any facility or facilities designed
primarily for the generation, transmission, sale or distribution of electrical
energy.
(3) “Eligible project”
means an economic development project found by the Oregon Economic and
Community Development Commission to meet standards of the commission [adopted under ORS 285A.110]. The
commission may treat as a single eligible project for bonding purposes any
number of economic development projects determined to be eligible projects.
(4) “Exempt facility”
means any facility described in section 142(a) of the Internal Revenue Code of
1986, as amended and in effect as of June 30, 2007. If section 142(a) of the
Internal Revenue Code of 1986 is amended or altered on or after July 1, 2007,
the Economic and Community Development Department may adopt by rule a
definition of “exempt facility” that is consistent with section 142(a) of the
Internal Revenue Code of 1986 as amended or altered.
(5) “Nonprofit entity”
means an institution, organization or other entity exempt from taxation under
section 501(c)(3) of the Internal Revenue Code of
1986, as amended and in effect as of June 30, 2007. If section 501(c)(3) of the
Internal Revenue Code of 1986 is amended or altered on or after July 1, 2007,
the department may adopt a definition of “nonprofit entity” that is consistent
with section 501(c)(3) of the Internal Revenue Code of 1986 as amended or
altered.
SECTION 74. ORS 285B.326 is amended to read:
285B.326. (1) Upon determining
that an economic development project is an [“] eligible project,[“] the Oregon Economic and Community Development Commission shall
forward the application to the State Treasurer, who shall determine whether to
issue the bonds.
(2) The commission shall
collect [the] fees set forth in [subsection (3) of this section from an
applicant that seeks to have an economic development project declared eligible
for financing] rules established by the Economic and Community
Development Department. [The fee may
be collected even though the project has not been determined to be eligible for
financing.] Moneys collected under this subsection shall be deposited in
the Oregon Community Development Fund created under ORS 285A.227 and are
continuously appropriated to the commission for the purpose of administration
or funding of [any program it is
authorized to operate.] the
[(3) The fees described in subsection (2) of
this section are as follows:]
[(a) $250 for an application of not to exceed
$500,000.]
[(b) $500 for an application of more than
$500,000.]
[(c) A closing fee of not to exceed one-half
of one percent of the total bond issue for the project, as determined by the
commission.]
(3)(a) In addition to
the fees described in subsection (2) of this section, the commission may charge
and receive reimbursement for expenses incurred in:
(A) The initial review
of an application for economic development projects sought to be declared
eligible for financing; and
(B) Matters arising
after the issuance of a bond.
(b) Reimbursement for
expenses under this subsection shall be charged and received in accordance with
rules established by the department.
SECTION 75. ORS 285B.329 is amended to read:
285B.329. (1) The state,
acting through the State Treasurer, shall not undertake to finance any economic
development project pursuant to ORS 285B.320 to 285B.371 before the Oregon
Economic and Community Development Commission has reviewed the project [pursuant to standards adopted under ORS
285A.110].
(2) The commission is
not required to make the determination and findings described in ORS 285A.055
(1) and (2) if the economic development project involves an exempt facility
[a solid waste disposal facility] and
related vehicles, rolling stock or equipment when the project does not require
any private activity volume cap under ORS 286.605 to 286.645.
CONFORMING AMENDMENTS
SECTION 76. 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. Contributions for new members shall first be made for those wages that
are attributable to services performed by the employee during the first full
pay period following the six months’ period, without regard to when those wages
are considered earned for other purposes under this chapter. 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 contributions for any of its eligible employees, the
benefits based upon employer contributions to which such employees would
otherwise be entitled shall be reduced accordingly.
(4) 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.
(5) 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.
(6) 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, if any, 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.
(7)(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 account of the employee
in the same manner as the employer contributes on 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.
(8)(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 the member
account of the withdrawing member, regardless of the age of the withdrawing
member.
(9) 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)]
ORS 285A.075 (1)(g) shall not be members of the
system. However, any person who is an active member of the system immediately
before becoming 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 an employee
of the foreign trade office.
(10) An employee who is
participating in an alternative retirement program established pursuant to ORS
353.250 or an optional retirement plan established pursuant to ORS 341.551 may
not be an active member of the Public Employees Retirement System.
SECTION 77. ORS 238A.005 is amended to read:
238A.005. For the purposes of this chapter:
(1) “Active member”
means a member of the pension program or the individual account program of the
Oregon Public Service Retirement Plan who is actively employed in a qualifying
position.
(2) “Actuarial
equivalent” means a payment or series of payments having the same value as the
payment or series of payments replaced, computed on the basis of interest rate
and mortality assumptions adopted by the board.
(3) “Board” means the
Public Employees Retirement Board.
(4) “Eligible employee”
means a person who performs services for a participating public employer,
including elected officials other than judges. “Eligible employee” does not
include:
(a) Persons engaged as
independent contractors;
(b) Aliens working under
a training or educational visa;
(c) Persons, other than
workers in the Industries for the Blind Program under ORS 346.190, provided
sheltered employment or make-work by a public employer;
(d) Persons categorized
by a participating public employer as student employees;
(e) Any person who is an
inmate of a state institution;
(f) Employees 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)] ORS 285A.075 (1)(g);
(g) An employee actively
participating in an alternative retirement program established under ORS
353.250 or an optional retirement plan established under ORS 341.551;
(h) Employees of the
Oregon University System who are actively participating in an optional
retirement plan offered under ORS 243.800;
(i) Any employee who
belongs to a class of employees that was not eligible on August 28, 2003, for
membership in the system under the provisions of ORS chapter 238 or other law;
(j) Any person who
belongs to a class of employees who are not eligible to become members of the
Oregon Public Service Retirement Plan under the provisions of ORS 238A.070 (2);
(k) Any person who is
retired under ORS 238A.100 to 238A.245 or ORS chapter 238 and who continues to
receive retirement benefits while employed; and
(L) Judges.
(5) “Firefighter” means:
(a) A person employed by
a local government, as defined in ORS 174.116, whose primary job duties include
the fighting of fires;
(b) The State Fire
Marshal, the chief deputy state fire marshal and deputy state fire marshals;
and
(c) An employee of the
State Forestry Department who is certified by the State Forester as a
professional wildland firefighter and whose primary duties include the
abatement of uncontrolled fires as described in ORS 477.064.
(6) “Fund” means the
Public Employees Retirement Fund.
(7)(a) “Hour of service”
means:
(A) An hour for which an
eligible employee is directly or indirectly paid or entitled to payment by a
participating public employer for performance of duties in a qualifying
position; and
(B) An hour of vacation,
holiday, illness, incapacity, jury duty, military duty or authorized leave
during which an employee does not perform duties but for which the employee is
directly or indirectly paid or entitled to payment by a participating public
employer for services in a qualifying position, as long as the hour is within
the number of hours regularly scheduled for the performance of duties during
the period of vacation, holiday, illness, incapacity, jury duty, military duty
or authorized leave.
(b) “Hour of service”
does not include any hour for which payment is made or due under a plan
maintained solely for the purpose of complying with applicable workers’
compensation laws or unemployment compensation laws.
(8) “Inactive member”
means a member of the pension program or the individual account program of the
Oregon Public Service Retirement Plan whose membership has not been terminated,
who is not a retired member and who is not employed in a qualifying position.
(9) “Individual account
program” means the defined contribution individual account program of the Oregon
Public Service Retirement Plan established under ORS 238A.025.
(10) “Member” means an
eligible employee who has established membership in the pension program or the
individual account program of the Oregon Public Service Retirement Plan and
whose membership has not been terminated under ORS 238A.110 or 238A.310.
(11) “Participating
public employer” means a public employer as defined in ORS 238.005 that
provides retirement benefits for employees of the public employer under the
system.
(12) “Pension program”
means the defined benefit pension program of the Oregon Public Service
Retirement Plan established under ORS 238A.025.
(13) “Police officer”
means a police officer as described in ORS 238.005.
(14) “Qualifying
position” means one or more jobs with one or more participating public
employers in which an eligible employee performs 600 or more hours of service
in a calendar year, excluding any service in a job for which benefits are not
provided under the Oregon Public Service Retirement Plan pursuant to ORS
238A.070 (2).
(15) “Retired member”
means a pension program member who is receiving a pension as provided in ORS
238A.180 to 238A.195.
(16)(a) “Salary” means
the remuneration paid to an active member in return for services to the
participating public employer, including remuneration in the form of living
quarters, board or other items of value, to the extent the remuneration is
includable in the employee’s taxable income under
(b) “Salary” includes
the following amounts:
(A) Payments of employee
and employer money into a deferred compensation plan that are made at the
election of the employee.
(B) Contributions to a
tax-sheltered or deferred annuity that are made at the election of the
employee.
(C) Any amount that is
contributed to a cafeteria plan or qualified transportation fringe benefit plan
by the employer at the election of the employee and that is not includable in
the taxable income of the employee by reason of 26 U.S.C. 125 or 132(f)(4), as
in effect on August 29, 2003.
(D) Any amount that is
contributed to a cash or deferred arrangement by the employer at the election
of the employee and that is not included in the taxable income of the employee
by reason of 26 U.S.C. 402(e)(3), as in effect on August 29, 2003.
(E) Retroactive payments
made to an employee to correct a clerical error, pursuant to an award by a
court or by order of or pursuant to a conciliation agreement with an
administration agency charged with enforcing federal or state law protecting
the employee’s rights to employment or wages, which shall be allocated to and
deemed paid in the periods in which the work was done or in which the work
would have been done.
(F) The amount of an
employee contribution to the individual account program that is paid by the
employer and deducted from the compensation of the employee, as provided under
ORS 238A.335 (1) and (2)(a).
(G) The amount of an
employee contribution to the individual account program that is not paid by the
employer under ORS 238A.335.
(H) Wages of a deceased
member paid to a surviving spouse or dependent children under ORS 652.190.
(c) “Salary” does not
include the following amounts:
(A) Travel or any other
expenses incidental to employer’s business which is reimbursed by the employer.
(B) Payments made on
account of an employee’s death.
(C) Any lump sum payment
for accumulated unused sick leave, vacation leave or other paid leave.
(D) Any severance
payment, accelerated payment of an employment contract for a future period or
advance against future wages.
(E) Any retirement
incentive, retirement bonus or retirement gratuitous payment.
(F) Payment for a leave
of absence after the date the employer and employee have agreed that no future
services in a qualifying position will be performed.
(G) Payments for
instructional services rendered to institutions of the Department of Higher
Education or the Oregon Health and
(H) The amount of an
employee contribution to the individual account program that is paid by the
employer and is not deducted from the compensation of the employee, as provided
under ORS 238A.335 (1) and (2)(b).
(I) Any
amount in excess of $200,000 for a calendar year. If any period over which
salary is determined is less than 12 months, the $200,000 limitation for that
period shall be multiplied by a fraction, the numerator of which is the number
of months in the determination period and the denominator of which is 12. The
board shall adopt rules adjusting this dollar limit to incorporate
cost-of-living adjustments authorized by the Internal Revenue Service.
(17) “System” means the
Public Employees Retirement System.
SECTION 78. ORS 285B.551 is amended to read:
285B.551. (1) Pursuant
to ORS 286.560 to 286.580, lottery bonds may be issued:
(a) To provide financial
and other assistance, including but not limited to loans and grants, to
municipalities, ports and other persons and entities in accordance with the
laws governing use of moneys in the Special Public Works Fund created by ORS
285B.455, the Water Fund created by ORS 285B.563, the Safe Drinking Water
Revolving Loan Fund created by ORS 285A.213, the Oregon Port Revolving Fund
created by ORS 285A.708, the Brownfields Redevelopment Fund created by ORS
285A.188, the Oregon Business Development Fund created by ORS 285B.092 and the
Marine Navigation Improvement Fund created by ORS 777.267.
(b) To fund
(c) To fund
(2) The use of lottery
bond proceeds is authorized based on the following findings:
(a) The financial and
other assistance to municipalities, ports and other persons and entities will
assist in the establishment and expansion of businesses in Oregon and in the
construction, improvement and expansion of infrastructure, community and port
facilities and other facilities that comprise the physical foundation for
industrial and commercial activity and provide the basic framework for
continued and expanded economic opportunities and quality communities
throughout Oregon.
(b) The Columbia River
channel deepening project is necessary to allow newer, larger steamships access
to
(c) Such financial and
other assistance to municipalities, ports and other persons and entities and
the deepening of the Columbia River channel will therefore promote economic
development within this state, and thus the use of net proceeds derived from
the operation of the Oregon State Lottery to pay debt service on lottery bonds
issued under this section to provide such financial and other assistance to
municipalities, ports and other persons and entities and to pay a portion of
the costs of deepening the Columbia River channel is an authorized use of state
lottery funds under section 4, Article XV of the Oregon Constitution, and ORS
461.510.
(d) The current lower
Columbia River estuary habitat for listed endangered or threatened species of
(3) The aggregate
principal amount of lottery bonds issued pursuant to subsection (1)(a) of this
section for financial and other assistance to municipalities, ports and other
persons and entities may not exceed the sum of $227.27 million and an
additional amount estimated by the State Treasurer to be necessary to pay
bond-related costs. The aggregate principal amount of lottery bonds issued
pursuant to subsection (1)(b) of this section for the
(4) The net proceeds of
lottery bonds issued pursuant to subsection (1)(a) and (b) of this section
shall be deposited in the Economic Infrastructure Project Fund, which is hereby
established in the State Treasury separate and distinct from the General Fund.
All moneys in the Economic Infrastructure Project Fund are continuously
appropriated to the Economic and Community Development Department for any
purpose for which moneys in the Special Public Works Fund created by ORS
285B.455 may be used, any purpose for which moneys in the Water Fund created by
ORS 285B.563 may be used, any purpose for which moneys in the Safe Drinking
Water Revolving Loan Fund created by ORS 285A.213 may be used, any purpose for
which moneys in the Oregon Port Revolving Fund created by ORS 285A.708 may be
used, any purpose for which moneys in the Brownfields Redevelopment Fund
created by ORS 285A.188 may be used, any purpose for which moneys in the Oregon
Business Development Fund created by ORS 285B.092 may be used and any purpose
for which moneys in the Marine Navigation Improvement Fund created by ORS
777.267 may be used. The Director of the Economic and Community Development
Department shall allocate the moneys deposited in the Economic Infrastructure
Project Fund for the purposes described in this subsection in accordance with
the [policies] priorities
developed by the Oregon Economic and Community Development Commission in
accordance with ORS [285A.045] 285A.020.
However, the director shall transfer from the Economic Infrastructure Project
Fund and deposit into the Channel Deepening Account of the Marine Navigation
Improvement Fund the proceeds of any lottery bonds sold to finance a portion of
the costs of the
(5) The aggregate
principal amount of lottery bonds issued pursuant to subsection (1)(c) of this
section for the costs of studies and ecosystem restoration projects in the
lower Columbia River estuary may not exceed the sum of $750,000 and an
additional amount estimated by the State Treasurer to be necessary to pay
bond-related costs. The net proceeds of lottery bonds issued pursuant to
subsection (1)(c) of this section shall be deposited in the Oregon Community
Development Fund created by ORS 285A.227 and may be used only for the Oregon
nonfederal share of United States Army Corps of Engineers Columbia River
estuary projects authorized by Congress prior to August 9, 2001. The director
may not request the issuance of lottery bonds pursuant to subsection (1)(c) of
this section until Congress and Washington have authorized their respective
shares of the costs of the studies and ecosystem restoration projects in the
lower Columbia River estuary.
(6) The proceeds of
lottery bonds issued pursuant to this section may be used only for the purposes
set forth in this section and for bond-related costs.
SECTION 79. ORS 285B.740 is amended to read:
285B.740. It is the
intent of the Legislative Assembly that in the administration of ORS 285B.740
to 285B.758, the Economic and Community Development Department work closely
with regional economic development organizations, community development
corporations, small business development centers and organizations that promote
and assist small businesses owned and operated by women and minorities[, as defined by ORS 285B.050 (9)]. The
Economic and Community Development Department, to the maximum extent feasible
and consistent with prudent financial controls, may delegate the administration
and operation of the loan program created by ORS 285B.740 to 285B.758 to local
and community-based entities. To carry out the policy described in this
section:
(1) The Economic and
Community Development Department may contract with any nonprofit corporation or
agency with experience and expertise in business finance to administer all or
any part of the loan program created by ORS 285B.740 to 285B.758.
(2) When entering into
an agreement for the administration of the loan program by any nonprofit
corporation or agency, the Economic and Community Development Department may
agree to waive any claims it may have against such corporation or agency for
losses arising out of the normal course of business, so long as the corporation
or agency does not act negligently or fraudulently in providing loans under ORS
285B.740 to 285B.758.
(3) When entering into an agreement to have a nonprofit corporation or agency administer
the loan program created by ORS 285B.740 to 285B.758, the Economic and Community
Development Department may pay loan origination and loan servicing fees to the
corporation or agency. The amount of such fees may be determined in the
agreement between the department and the administering corporation or agency.
SECTION 80. ORS 286.585 is amended to read:
286.585. (1) Pursuant to
ORS 286.560 to 286.580 and 348.716 and subject to future legislative approval,
lottery bonds may be issued to make grants or loans to Oregon cities to fund
projects for the reconstruction, renovation or development of community sports
facilities in order to make the facilities suitable for use by a major league
baseball team if a city is selected as an expansion site by major league
baseball or if a major league baseball team agrees to relocate to a city.
(2) The use of lottery
bond proceeds is authorized based on the following findings:
(a) The financial
assistance to cities will assist in the construction, improvement and expansion
of infrastructure and community facilities that comprise the physical foundation
for commercial activity and provide the basic framework for continued and
expanded economic opportunities and quality communities throughout
(b) Such financial
assistance to cities will therefore promote economic development within this
state, and thus the use of net proceeds derived from the operation of the
Oregon State Lottery to pay debt service on lottery bonds issued under this
section to provide such financial assistance to cities is an appropriate use of
state lottery funds under section 4, Article XV of the Oregon Constitution, and
ORS 461.510.
(3) Lottery bonds issued
pursuant to this section shall be issued only at the request of the Director of
the Economic and Community Development Department.
(4) The net proceeds of
lottery bonds issued pursuant to this section shall be deposited in the
Economic Infrastructure Project Fund established by ORS 285B.551. The Director
of the Economic and Community Development Department shall allocate the moneys
deposited in the Economic Infrastructure Project Fund for the purpose described
in this section in accordance with the [policies]
priorities developed by the Oregon Economic and Community Development
Commission in accordance with [ORS
285A.045] ORS 285A.020.
(5) The proceeds of
lottery bonds issued pursuant to this section shall be used only for the
purposes set forth in this section and for bond-related costs.
SECTION 81. ORS 777.760 is amended to read:
777.760. As used in ORS
777.755 to 777.800, unless the context requires otherwise:
(1) “Board” means the
board of directors of an export trading corporation.
(2) “Commissioner” means
a member of the board of commissioners of a port.
(3) “Commissioners of
the port” means the board of commissioners of the port which formed the export trading
corporation.
(4) “Export trading
corporation” means a municipal corporation formed by a port under ORS 294.125,
294.316, 646.740 and 777.755 to 777.800.
(5) “Export trading
project” means a transaction or arrangement for the purchase, sale, exchange or
delivery of goods or services in international trade or commerce.
(6) “Port” means a
municipal corporation formed under ORS [285A.666
to 285A.732,] 777.005 to 777.725, 777.915 to 777.953 and 777.990 or ORS
chapter 778.
(7) “Services” includes,
but is not limited to, architectural, automatic data processing, business,
communications, consulting, engineering, financial, insurance, legal,
management, product research and design, repair, training and transportation
services.
SECTION 82. ORS 777.953 is amended to read:
777.953. (1) The board, on its own motion, may initiate a proposal for
annexation to the port of territory that is not within another port organized
under [ORS 285A.600 to 285A.708 and]
this chapter. Such territory may be either wholly or partially within or
outside the same county in which the port is located. However, if the territory
proposed to be annexed is outside
(2) After adoption of a
resolution proposing annexation of the territory described in subsection (1) of
this section to the port, the board shall fix a day for a public hearing before
the board at which time the electors of the port and of the affected territory
may appear and be heard on the question of annexation.
(3) The board shall
cause notice of the hearing to be published once each week for two successive
weeks prior to the day of the hearing in a newspaper of general circulation in
the county and shall cause notices of the hearing to be posted in four public
places in the port for the same period.
(4) After the public
hearing, the board shall file the resolution proposing annexation with the
governing body of the county in which the territory proposed to be annexed is
situated. The county governing body shall order an election to be held in the
territory. The county governing body shall also order the board to hold an election
within the boundaries of the port on the same day, both elections to be held
for the purpose of submitting the proposed annexation to the electors. The
board shall certify the results of the election to the county governing body.
The order of annexation shall be entered by the county governing body when a
majority of all the votes cast in the territory and the port are in favor of
the annexation.
(5) After the date of
entry of an order by the county governing body annexing territory to the port,
the territory annexed shall become subject to the outstanding indebtedness,
bonded or otherwise, of the port in like manner as the territory within the
port.
(6) ORS 198.705 to
198.955 and 777.326 do not apply to an annexation proceeding conducted under
this section.
SECTION 83. ORS 184.632 is amended to read:
184.632. (1) The
Legislative Assembly finds that:
(a) The ports in
(b) The ports in this
state develop and market facilities and services to support important existing
industries in this state, such as aviation, maritime commerce, international
trade, tourism, recreation and transportation.
(c) Port facilities,
including roads, railroads, airports, harbors and navigation channels, are an
integral element of the transportation infrastructure of this state.
(2) Therefore, the
Legislative Assembly declares that it is the policy of this state to include
(a) Coordinate with the
Economic and Community Development Department [and the Ports Division] to facilitate port planning and
development;
(b) Promote local
cooperation in statewide planning and development of the ports;
(c) Promote long-term
economic self-sufficiency of the ports;
(d) Encourage
cost-effective investments with prudent financial consideration of port
development projects; and
(e) Facilitate the
efforts of the ports to expand and respond to greater domestic and
international market opportunities.
SECTION 84. ORS 284.540 is amended to read:
284.540. (1) There is established the Governor’s Council on
(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)] (d) The president of the State
Board of Higher Education; and
[(f)] (e) 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.
SECTION 85. ORS 284.706 is amended to read:
284.706. (1) There is created the Oregon Innovation Council consisting of
the following voting members:
(a) The Governor or the
Governor’s designated representative, who shall be chairperson of the council.
(b) Five members appointed
by the Governor who are engaged in the operations of
(c) One member appointed
by the Governor who is a representative of an Oregon-based, generally
accredited, not-for-profit private institution of higher education.
(d) A member of the
Oregon Growth Account Board, appointed by the board, who has experience in the
field of venture capital.
(e) A member of the
Engineering and Technology Industry Council, appointed by the Engineering and
Technology Industry Council.
(f) The Director of the
Economic and Community Development Department.
(g) The Chancellor of
the
(h) The Commissioner for
Community College Services.
(i) The State Treasurer.
(2)(a) The Speaker of
the House of Representatives shall appoint two members to the council who are
members of the House of Representatives.
(b) The President of the
Senate shall appoint two members to the council who are members of the Senate.
(c) Members of the
Legislative Assembly appointed to the council are nonvoting members and may act
in an advisory capacity only.
(3) The following
persons, or their representatives, shall serve as ex officio, nonvoting members
of the council:
(a) The chairperson of
the Oregon Economic and Community Development Commission.
[(b) The chairperson of the International
Trade Commission.]
[(c)] (b) The president of the State
Board of Higher Education.
[(d)] (c) The chairperson of the
State Board of Education.
[(e)] (d) An executive officer of an
association representing Oregon-based, generally accredited, not-for-profit
private institutions of higher education, appointed by the Governor.
(4) The term of office
of each appointed voting member of the council is three years, but an appointed
member serves at the pleasure of the appointing authority. Before the
expiration of the term of an appointed voting member, the appointing authority
shall appoint a successor whose term begins on July 1 next following. An
appointed member is eligible for reappointment. If there is a vacancy for any
cause, the appointing authority shall make an appointment to become immediately
effective for the remainder of the unexpired term.
(5) A majority of the
voting members of the council constitutes a quorum for the transaction of
business.
(6) Official action by
the council requires the approval of a majority of the voting members of the
council.
(7) The council shall
meet at least twice per fiscal year at a place, day and time determined by the
chairperson. The council may also meet at other times and places specified by a
call of the chairperson or by written request of a majority of the voting
members of the council.
(8) The council may
adopt rules necessary for the operation of the council.
(9) The council may
establish committees and delegate to the committees duties as the council
considers desirable.
(10) The Economic and
Community Development Department shall provide staff support to the council.
(11) Members of the
council who are not members of the Legislative Assembly are entitled to
compensation and expenses incurred by them in the performance of their official
duties in the manner and amounts provided for in ORS 292.495. Claims for
compensation and expenses of members of the council who are public officers
shall be paid out of funds appropriated to the public agency that employs the
member. Claims for compensation and expenses of members of the council who are
not public officers shall be paid out of funds appropriated to the Economic and
Community Development Department for that purpose.
(12) All agencies of
state government, as defined in ORS 174.111, are directed to assist the council
in the performance of its duties and, to the extent permitted by laws relating
to confidentiality, to furnish such information and advice as the members of
the council consider necessary to perform their duties.
SECTION 86. ORS
285A.085, 285A.090, 285A.095, 285A.100, 285A.105, 285A.110, 285A.112, 285A.114,
285A.125, 285A.131, 285A.133, 285A.136, 285A.139, 285A.141, 285A.203, 285A.209,
285A.606, 285A.609, 285A.612, 285A.618, 285A.624, 285A.630, 285A.633, 285B.071,
285B.074, 285B.077, 285B.095, 285B.139, 285B.144, 285B.150, 285B.159, 285B.162,
285B.166, 285B.183, 285B.212, 285B.254, 285B.257, 285B.332, 285B.752 and
285B.755 are repealed.
CONFLICT AMENDMENTS
SECTION 87. Notwithstanding section 29, chapter 858,
SECTION 88. If House Bill 2263 becomes law, ORS 285A.020,
as amended by section 2 of this 2007 Act, is amended to read:
285A.020. (1) The
Legislative Assembly finds that:
(a)
(A) Special heritage;
(B) Respect for and
cultivation of the environment; and
(C) Attention to quality
of life issues that are important to the state’s
economic development, including but not limited to access to quality,
affordable child care for all children in
(b)
(c) All regions of the
state should share in
(d) Creating and
retaining quality jobs is vital to the state’s
continued economic development.
(e)
(f) A well educated and
trained workforce is necessary to advance in today’s global economy.
(g) The ability of
existing businesses to grow and prosper is critical to
(h) Utilizing the state’s
competitive advantages is essential to retain existing businesses and attract
new companies and investment into the state.
(i) Continued economic
development depends on strengthening traded sector industries.
(j) International trade
development and promotion is invaluable for future economic development
opportunities.
(k) Small businesses remain
a critical element of the state’s economic development, comprising more than 90
percent of
(L) Capacity building in
rural and distressed areas is a key component of economic development and
revitalization efforts.
(m)
(n) Improving and
enhancing infrastructure is necessary to the state’s future economic
development.
(o) Federal, state and
local agencies working together will continue to enhance industrial site
development and other economic development activities.
(p) The Economic and
Community Development Department should be encouraged to convene community
development partners to explore the prospect of making loans to private
industrial landowners from the Brownfields Redevelopment Fund for future
development opportunities.
(2) It is the purpose of
ORS chapters 285A, 285B and 285C to advance
(3) The Legislative
Assembly declares that it is the immediate economic strategy of the state to:
(a) Promote a favorable
investment climate to strengthen businesses, create jobs and raise real wages;
(b) Improve the national
and global competitiveness of
(c) Assist
(4) To promote the
advancement of the
(a) Processes for making
public investments and working with local and regional issues must be designed
for flexibility 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 governments and public and private organizations and
entities should be strengthened to further the economic strategy of the state.
(c) The expected impact
of public investment and assistance shall be 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 planning process, and the state should work actively with
community partners, regions and state and local agencies to address and
accomplish their mutual objectives.
(5) When the department
provides funds or assistance for projects, programs, technical support or other
authorized activities pursuant to [ORS
329.905 to 329.975 and] ORS chapters 285A, 285B and 285C, the department
shall give priority to projects, programs and activities that:
(a) Retain and create
jobs and raise real wages;
(b) Promote capacity building,
emphasizing rural and distressed areas;
(c) Assist small
business creation and expansion;
(d) Invest and engage in
training a skilled workforce;
(e) Retain and expand
existing companies and recruit new investment to
(f) Capitalize on
(g) Support innovation
and research;
(h) Assist industry
clusters to succeed;
(i) Market
(j) Promote
international trade and attract foreign direct investment;
(k) Support the
development of industrial and commercial lands;
(L) Advance the efforts
of ports to promote economic development activities; and
(m) Build capacity in
SECTION 89. If House Bill 2263 becomes law, section 8
of this 2007 Act (amending ORS 285A.075) is repealed and ORS 285A.075, as
amended by section 28, chapter 858,
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.]
(1) The Economic and
Community Development Department shall:
(a) Implement programs
and adopt rules in accordance with applicable provisions of ORS chapter 183
that are consistent and necessary to carry out the policies established by the
(b) Act as the official
state liaison agency for persons interested in locating industrial or business
firms in the state and for state and local groups seeking new industry or
business, and maintain the confidentiality of negotiations conducted pursuant
to this paragraph, if requested.
(c) Coordinate state and
federal economic and community development programs.
(d) Administer the state’s
participation in the federal Community Development Block Grant funding program
authorized by 42 U.S.C. 5301 et seq.
(e) Actively recruit
domestic and international business firms to those communities desiring
business recruitment.
(f) Consult with local
governments to establish regions for the purpose of job development and
community assistance to facilitate economic activities in the region. Regions
established for this purpose need not be of the same size in geographic area or
population.
(g) Establish and
operate foreign trade offices in foreign countries in which the department
considers a foreign trade office necessary. The department shall use department
employees, contracts with public or private persons or a combination of
employees and contractors to establish and operate foreign trade offices.
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 such employees. ORS 276.428, 279A.120,
279A.140, 279A.155, 279A.275, 279B.025, 279B.235, 279B.270, 279B.280, 279C.370,
279C.500 to 279C.530, 279C.540, 279C.545, 279C.800 to 279C.870, 282.020,
282.050, 282.210, 282.220, 282.230, 283.140, 459A.475, 459A.490, 653.268 and
653.269 do not apply to the department’s operation of foreign trade offices
outside the state.
(h) Consult with other
state agencies and with local agencies and officials prior to defining or
designating distressed areas for purposes of ORS 285A.020.
(i) Budget moneys for
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 to accomplish the purposes of
ORS chapters 285A, 285B and 285C. The department may expend moneys duly
budgeted to pay the travel and other expenses of such persons if the director
determines the expense may promote the purposes of this subsection.
(j) Promulgate rules to
govern contracts.
(k) Develop strategies
to address issues that are necessary and appropriate to
(L) Use practices and
procedures that the department determines are the best practices for carrying
out the duties of the department.
(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, 285B and
285C, 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 chapter 183, the
department may adopt rules necessary for the administration of laws that the
department is charged with administering.]
[(6) ORS 276.428, 279A.120, 279A.140, 279A.155, 279A.275, 279B.025,
279B.235, 279B.270, 279B.280, 279C.370, 279C.500 to 279C.530, 279C.540,
279C.545, 279C.800 to 279C.870, 282.020, 282.050, 282.210, 282.220, 282.230,
283.140, 459A.475, 459A.490, 653.268 and 653.269 do not apply to the department’s
operation of foreign trade offices outside the state.]
[(7)] (3) Notwithstanding ORS 279A.140, the department may award
grants or 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
[(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
[(c) Contracts entered into under this subsection are
exempt from the requirements of ORS 279.835 to 279.855 and ORS chapters 279A,
279B and 279C.]
[(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 90. If House Bill 3265 becomes law, section 97,
chapter 783,
285B.323. As used in ORS 285B.320 to 285B.371, unless the context
requires otherwise:
(1) “Bond” or “revenue
bond” means [any evidence of
indebtedness, including but not limited to any bond, note, obligation, loan
agreement, financing agreement, contracts for leasing, rental or financing of
real or personal property, including contracts for rental, long term leases
under an optional contract for purchase, financing agreements with vendors,
financial institutions or others or for purchase of any property secured by
revenues or from other financing sources as provided in ORS 285B.320 to
285B.371. A bond, as defined in this subsection and issued under ORS 285B.320
to 285B.371, shall be considered a revenue bond for purposes of ORS 286.031]
a revenue bond, as defined in section 2, chapter 783,
(2) “Economic
development project” includes any properties, real or personal, used or useful
in connection with a revenue producing enterprise, an exempt [facilities] facility or a
nonprofit [entities] entity,
and [related] vehicles, rolling stock
or equipment related to an enterprise, facility or entity. “Economic
development project” does not include any facility or facilities designed
primarily for the generation, transmission, sale or distribution of electrical
energy.
(3) “Eligible project”
means an economic development project found by the Oregon Economic and
Community Development Commission to meet standards of the commission. The
commission may treat as a single eligible project for bonding purposes any
number of economic development projects determined to be eligible projects.
(4) “Exempt facility”
means any facility described in section 142(a) of the Internal Revenue Code of
1986, as amended and in effect as of June 30, 2007. If section 142(a) of the
Internal Revenue Code of 1986 is amended or altered on or after July 1, 2007,
the Economic and Community Development Department may adopt by rule a
definition of “exempt facility” that is consistent with section 142(a) of the
Internal Revenue Code of 1986 as amended or altered.
(5) “Nonprofit entity”
means an institution, organization or other entity exempt from taxation under
section 501(c)(3) of the Internal Revenue Code of
1986, as amended and in effect as of June 30, 2007. If section 501(c)(3) of the
Internal Revenue Code of 1986 is amended or altered on or after July 1, 2007,
the department may adopt a definition of “nonprofit entity” that is consistent
with section 501(c)(3) of the Internal Revenue Code of 1986 as amended or
altered.
SECTION 91. If House Bill 3265 becomes law, section
97a, chapter 783,
285B.326. (1) Upon
determining that an economic development project is an eligible project, the
Oregon Economic and Community Development Commission shall [forward the application to] request
that the State Treasurer[, who shall determine whether to] issue the bonds.
(2) The commission shall
collect fees set forth in rules established by the Economic and Community
Development Department. Moneys collected under this subsection shall be
deposited in the Oregon Community Development Fund created under ORS 285A.227
and are continuously appropriated to the commission for the purpose of
administration or funding of the Oregon Industrial Development Revenue Bond and
Express Bond Program.
(3)(a) In addition to
the fees described in subsection (2) of this section, the commission may charge
and receive reimbursement for expenses incurred in:
(A) The initial review
of an application for economic development projects sought to be declared
eligible for financing; and
(B) Matters arising
after the issuance of a bond.
(b) Reimbursement for
expenses under this subsection shall be charged and received in accordance with
rules established by the department.
SECTION 92. The amendments to ORS 285B.323 and 285B.326
by sections 90 and 91 of this 2007 Act become operative on January 1, 2008.
CAPTIONS
SECTION 93. The unit captions used in this 2007 Act are
provided for the convenience of the reader and do not become part of the
statutory law of this state or express any legislative intent in the enactment
of this 2007 Act.
EMERGENCY CLAUSE
SECTION 94. This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 2007 Act takes effect on its passage.
Approved by the Governor July 17, 2007
Filed in the office of Secretary of State July 19, 2007
Effective date July 17, 2007
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