74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
SA to SB 150
 
LC 334/SB 150-2
 
                      SENATE AMENDMENTS TO
                         SENATE BILL 150
 
     By COMMITTEE ON BUSINESS, TRANSPORTATION AND WORKFORCE
                           DEVELOPMENT
 
                            March 23
 
  On page 1 of the printed bill, line 2, delete 'and' and after
'money' insert '; and declaring an emergency'.
  Delete lines 4 through 30 and delete pages 2 and 3 and insert:
  '  { +  SECTION 1. + }  { + (1) There is created within the
State Treasury the Mezzanine Financing Fund, separate and
distinct from the General Fund. Interest earned by the Mezzanine
Financing Fund shall be credited to the fund. Moneys in the fund
are continuously appropriated to the Economic and Community
Development Department:
  ' (a) For the projects described in subsection (4) of this
section; and
  ' (b) To pay administrative expenses of the department that are
related to the fund.
  ' (2) The fund created by subsection (1) of this section shall
consist of:
  ' (a) Moneys from the repayment of principal, interest payments
and other income from any credit enhancement or financing
provided by the fund;
  ' (b) Revenues derived from fees imposed under subsection (5)
of this section;
  ' (c) Interest earned on moneys in the fund;
  ' (d) Moneys from any grant received by the department for the
fund from the federal government;
  ' (e) Appropriations, allocations and transfers of moneys to
the fund by the Legislative Assembly; and
  ' (f) Revenues from any other funding sources that provide
financing for Oregon businesses.
  ' (3) The fund may not be used to retire any debt. The fund may
not be used to pay administrative expenses of the department that
are not related to the fund.
  ' (4) The department may provide credit enhancement to
financial organizations for the benefit of Oregon businesses and
financing to Oregon businesses from the fund as part of a broader
public and private partnership. The department may provide credit
enhancement to financial organizations and financing to Oregon
businesses under this section for the following projects:
  ' (a) To assist established businesses with the development and
marketing of new products;
  ' (b) To assist businesses with acquisitions that are
consistent with the policies and rules governing the fund; and
  ' (c) To assist businesses with situations:
  ' (A) In which the level of risk to the lender or investor is
greater than that of a loan typically provided by a bank; and
  ' (B) That would not typically be financed by venture capital
investors.
  ' (5) When providing credit enhancement or financing under this
section, the department shall:
  ' (a) Establish eligibility requirements, fees and other terms
for credit enhancement or financing;
  ' (b) Establish additional fees and other terms to reasonably
ensure that the program is self-financing; and
  ' (c) Charge an application fee to any financial organization
or business that applies for credit enhancement or financing from
the fund.
  ' (6) The Oregon Economic and Community Development Commission
shall review and approve policies governing the fund that are
developed by the department. The Director of the Economic and
Community Development Department must first approve an award of
moneys from the fund before moneys may be disbursed for credit
enhancement or financing projects.
  ' (7) The department may establish boards or advisory councils
and may consult with other entities to evaluate requests for
credit enhancement or financing from the fund.
  ' (8) The department shall adopt rules to govern the
administration of this section.
  ' (9) The department shall establish performance measures that
enable the department to evaluate the projects financed with
moneys from the fund. The performance measures must be
established by the department prior to the initial award of
moneys from the fund. + }
  '  { +  SECTION 2. + }  { + (1) During the 2007-2009 biennium,
the Oregon Economic and Community Development Commission may
transfer up to $1 million from the Oregon Business Development
Fund to the Mezzanine Financing Fund.
  ' (2) Not later than January 2, 2010, the Economic and
Community Development Department shall transfer any moneys
remaining in the Mezzanine Financing Fund that are not otherwise
committed to the Oregon Business Development Fund. + }
  '  { +  SECTION 3. + }  { + Section 1 of this 2007 Act is
repealed on January 2, 2010. + }
  '  { +  SECTION 4. + }  { + 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 July 1, 2007. + } ' .
                         ----------