74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 334
A-Engrossed
Senate Bill 150
Ordered by the Senate March 23
Including Senate Amendments dated March 23
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor Theodore R.
Kulongoski for Economic and Community Development Department)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ - Creates Mezzanine Financing Fund to bridge financing gap
between loans provided by lending institutions and loans provided
by venture capital investors to Oregon businesses. - }
{ + Creates Mezzanine Financing Fund to provide credit
enhancement to financial organizations and financing to Oregon
businesses. Sunsets January 2, 2010.
Declares emergency, effective July 1, 2007. + }
A BILL FOR AN ACT
Relating to economic development; appropriating money; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
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. + }
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