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 333
(Including Amendments to Resolve Conflicts)
B-Engrossed
Senate Bill 350
Ordered by the House June 25
Including Senate Amendments dated May 2 and House Amendments
dated
June 25
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 Senate Interim Committee on
Economic Development Agency Oversite)
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.
Modifies administrative provisions for economic and community
development. Revises economic and community development programs.
Eliminates statutory references to Ports Division and
International Trade Commission.
Establishes Industry Outreach Fund. Continuously appropriates
moneys in fund to Economic and Community Development Department
for specified purposes.
Declares emergency, effective on passage.
A BILL FOR AN ACT
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 ___, Oregon Laws 2007 (Enrolled
House Bill 3265); appropriating money; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
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) Oregon's economy continues to experience change and
adjustment that greatly affect the well-being of its
citizens. - }
{ - (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) Oregon's human resources constitute a major asset in
the state's effort to promote economic expansion and
improvement. - }
{ - (b) Oregon's natural resources provide ample
opportunities for productive and beneficial economic
enterprise. - }
{ - (c) Oregon's location on the growing economy of the
Pacific Rim provides substantial opportunities and challenges in
international trade. - }
{ - (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) Oregon possesses many unique and sustaining virtues
that will guide and assist in maintaining the state's economic
health, including but not limited to Oregon's:
(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
Oregon.
(b) Oregon is strategically placed to compete and succeed in
the global community.
(c) All regions of the state should share in Oregon's economic
recovery.
(d) Creating and retaining quality jobs is vital to the state's
continued economic development.
(e) Oregon's agriculture and natural resource industries
provide opportunities for beneficial economic enterprise,
including sustainable economic development activities.
(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 Oregon's economy.
(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 Oregon's
businesses.
(L) Capacity building in rural and distressed areas is a key
component of economic development and revitalization efforts.
(m) Oregon's ports are important partners in the state's
economic development efforts and are key components of local and
state economic development strategies.
(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 Oregon's
economy to better provide for the well-being of its citizens - }
{ + advance Oregon's economy + }.
{ + (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 Oregon
companies; and
(c) Assist Oregon communities in building capacity to retain,
expand and attract businesses.
(4) + } To { - that end - } { + promote the advancement of
the Oregon economy and implement the immediate economic strategy
of the state + }, the Economic and Community Development
Department shall invest resources in accordance with the
following principles:
(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 Oregon; - }
{ - (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 Oregon;
(f) Capitalize on Oregon's competitive advantages and
strategically invest resources to offset competitive
disadvantages;
(g) Support innovation and research;
(h) Assist industry clusters to succeed;
(i) Market Oregon's advantages;
(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 Oregon's arts and cultural organizations,
creative businesses and individual artists. + }
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 Cascade Range.
(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 Oregon. - } { + Members shall be appointed
with consideration given to representation of the following areas
of expertise or training:
(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 Oregon workers. - }
{ - (b) Increase the skill levels of the Oregon
workforce. - }
{ - (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
Oregon Progress Board. - }
{ - (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 Oregon businesses. - }
{ - (g) Encourage expansion of existing Oregon businesses and
the attraction of new business and industry to those communities
that desire such development, with particular attention to
industries characterized by significant use of high-capacity
telecommunications, science and technology-related manufacturing
processes or knowledge transfer. - }
{ - (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
Oregon. - }
{ - (i) Assist in the development of microenterprise
businesses in Oregon, including increasing the availability of
training and technical assistance available to serve
microenterprises. - }
{ - (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 Oregon Progress Board; and - }
{ - (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 Oregon Economic and Community Development
Commission shall report { - annually - } { + biennially + }
to the Governor and the Legislative Assembly on the success of
economic development efforts. The report { - , - } { + shall
include the progress toward achievement of performance measures
for the Economic and Community Development Department as adopted
by the Legislative Assembly. + } At a minimum, { + the
report + } shall include the following:
(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 Oregon
workforce; - }
{ - (B) - } { + (A) + } The { - impact on the - } number
of jobs { - , including jobs - } created and retained;
{ - (C) - } { + (B) + } The { - impact on the - }
{ + average + } wage levels of { - Oregon workers, including
increases in wage levels - } { + jobs created and retained + };
{ + and + }
{ - (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 Oregon. - }
(b) The status of the Oregon economy { - related to: - }
{ + as it relates to the economic strategy outlined in ORS
285A.020. + }
{ - (A) Changes in employment and wage levels in Oregon
industries; - }
{ - (B) Changes in employment, wage levels and
competitiveness of traded sector industries; and - }
{ - (C) Barriers that have been identified as impeding
business competitiveness and productivity in this state. - }
{ - (c) Progress made toward achievement of the Oregon
Benchmarks. - }
{ - (d) Recommendations for removing identified barriers and
additional suggestions for improving the performance of Oregon's
economy. - }
{ - (e) Recommendations on this state's investment in its
public ports, on this state's response to policy issues that
affect ports and for the strategic development of port facilities
that promote maritime commerce, recreational opportunities and
the economy of Oregon. - }
{ - (f) Progress made toward elimination of economically
distressed areas of this state. - }
{ - (g) Recommendations regarding improving the international
competitiveness of Oregon. - }
{ - (h) Progress made in serving microenterprise businesses
and recommendations for increasing the success of
microenterprises. - }
{ + (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 Oregon Economic
and Community Development Commission, the director shall:
(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 Oregon.
(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 Oregon Economic and Community
Development Commission shall report periodically to the Governor
on the director's performance and make appropriate
recommendations.
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 Oregon
Economic and Community Development Commission and the duties,
functions and powers vested by law in the department.
(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 Oregon's future and adopt goals that include
measurable indicators of success (Oregon benchmarks) that show
the extent to which each goal is being achieved.
(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
Oregon Downtown Development Association, or its successor entity,
to provide downtown development and redevelopment assistance and
similar services to municipalities in Oregon. - }
{ - (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 Oregon to build
economic and community development capacity. - }
{ - (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 Oregon Business Development Fund created by ORS
285B.092; - }
{ - (d) The Oregon Port Revolving Fund created by ORS
285A.708; and - }
{ - (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.
{ +
OREGON COMMUNITY 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 Oregon
traded sector industries are experiencing a period of major
change and disruption, and that this change is creating severe
and unpredictable economic consequences for many communities and
workers. - } It is the purpose of the { - Economic
Stabilization and Conversion - } { + Business Retention + }
Fund to assist { + businesses, + } communities and workers
affected by { + significant business transitions, + } economic
dislocation or the possibility of economic dislocations to
evaluate and implement alternative business or community
opportunities { + and to focus on the long term survivability of
businesses + }.
(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 Oregon. - }
{ - (b) Small businesses continue to be a major source of
employment opportunities for Oregon and that this state ought to
encourage the success and growth of small businesses as a means
of providing economic opportunities and jobs for Oregonians. - }
{ - (c) Oregon's women and minority-owned businesses are
underrepresented in the business community. - }
{ - (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 Oregon.
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 Oregon suppliers for goods and
services.
(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 Oregon Small Business
Development Act of 1983. - }
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 Oregon and are vital to Oregon's long term economic
vitality; - }
{ - (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 Oregon economy
and play a vital role in job creation; - }
{ - (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 Oregon develop and market facilities and
services to support important existing industries in this state,
such as agriculture, aviation, maritime commerce, international
trade, tourism, recreation, fishing, wood products and
transportation. - }
{ - (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 Oregon in order to be competitive in
national and international markets and to continue to contribute
to economic development efforts in this state. - }
{ - (2) - } { + (1) + } The Legislative Assembly declares
that it is the policy of this state to include Oregon's ports in
planning and implementing economic development and transportation
programs. To that end, the Oregon Economic and Community
Development Commission and the Economic and Community Development
Department may work to:
(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 Oregon recognizes, supports and promotes a
federal role in the continuation of the maintenance and
development of federally authorized waterway projects.
(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 Oregon to support the
continued maintenance and development of the following waterways
as key elements of the statewide transportation system:
(A) The navigation channels of the Columbia River, Coos Bay and
Yaquina Bay and any other commercial waterway segments that
provide a link for movement of products to and from world and
regional markets.
(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
Oregon State University.
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 Oregon. Guaranty contracts
under this paragraph shall be payable solely from moneys in the
Special Public Works Fund, and shall not constitute a debt or
obligation of the State of Oregon. The department may, on behalf
of the state, establish a special account in the fund and commit
to deposit into the account specified portions of existing and
future allocations to the fund. The commitments shall be made by
rule of the department and shall constitute covenants of the
state for the benefit of the owners of obligations guaranteed by
the state pursuant to this section.
(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 Oregon
Entrepreneurial Development Loan Fund may not exceed $70,000 + }.
(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 Oregon Business Development Fund under ORS
285B.050 to 285B.098. + }
{ - (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
Oregon Indian tribe.
(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 Oregon Business Development Fund under ORS
285B.050 to 285B.098. - }
{ - (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
Oregon Indian tribe. - }
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 Oregon Business
Development Fund. - }
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 Oregon Business Development Fund. - } { + The Oregon
Economic and Community Development Commission shall charge fees
and establish rules to underwrite loans from the Oregon Business
Development Fund. + }
SECTION 43. ORS 285B.059 is amended to read:
285B.059. (1) The Oregon Economic and Community Development
Commission may approve a business development project proposed in
an application filed under ORS 285B.050 to 285B.098 if, after
investigation, { - it - } { + the commission + } finds that:
(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
Oregon to encourage investment in distressed areas, as defined by
the department.
(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 Oregon Targeted Development Account. - }
SECTION 49. { + The Economic and Community Development
Department shall develop rules governing repayment of loans to
the Oregon Business Development Fund and collection of moneys
owed the fund. The department may take any action permitted by
statute or rule that the department deems necessary for repayment
of the loan. + }
{ +
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 Oregon.
{ - (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 Oregon. The term does not include:
(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 Oregon. - }
{ - (b) Small businesses make important contributions to
economic growth and vitality in this state. - }
{ - (c) Many financial institutions in Oregon are limited in
their ability to provide financing to small but rapidly growing
businesses. - }
{ - (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 Oregon and the
{ - Economic and Community Development - } department to the
financial institution under the contract is limited to the amount
of money credited to the loss reserve account of the institution.
(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 Oregon.
{ - (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 Oregon to compete in international markets. - }
{ - (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 Oregon businesses in international markets.
{ - (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 United States or by any other provider of insurance for
export transactions.
{ - (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 Oregon's economic expansion and diversification; - }
{ - (b) Helping companies that are starting up or are already
doing business in Oregon to compete globally; - }
{ + (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 Oregon's
long-term prosperity and livability; and
(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 Oregon
Economic and Community Development Commission shall make
recommendations on approval of the strategy to the Governor for
final approval or shall return the strategy to the regional board
for further modification. - }
(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 Oregon businesses and
economic activity.
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 Oregon
businesses and consortia in making investments that advance
industry related development activities or other identified
competitiveness objectives of existing Oregon cluster
businesses. + }
{ +
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
Oregon Industrial Development Revenue Bond and Express Bond
Program. + }
{ - (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 Oregon law.
Salary includes the additional amounts specified in paragraph (b)
of this subsection, but does not include the amounts specified in
paragraph (c) of this subsection, regardless of whether those
amounts are includable in taxable income.
(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 Science University when those services are in excess
of full-time employment subject to this chapter. A person
employed under a contract for less than 12 months is subject to
this subparagraph only for the months covered by the contract.
(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 Oregon's share of the costs of the Columbia River
channel deepening project.
(c) To fund Oregon's share of the costs of studies and
ecosystem restoration projects in the lower Columbia River
estuary designed to improve habitat for listed endangered or
threatened species of Columbia River anadromous salmonids.
(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 Oregon and Washington
deep draft ports. A deeper shipping channel will allow the
Columbia River to continue as a world leader in agricultural
exports and as a key trade corridor for farms and businesses
throughout Oregon and the region.
(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 Columbia River anadromous
salmonids could be improved through ecosystem restoration
projects. The use of the Oregon State Lottery to pay debt service
on lottery bonds issued under this section to pay for studying
how the estuary could be improved and to pay for ecosystem
restoration projects are authorized uses of state lottery funds.
(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 Columbia River channel deepening project may
not exceed the sum of $17.7 million and an additional amount
estimated by the State Treasurer to be necessary to pay
bond-related costs. Lottery bonds issued pursuant to this section
may be issued only at the request of the Director of the Economic
and Community Development Department. The director may not
request the issuance of lottery bonds pursuant to subsection
(1)(b) of this section until a final environmental impact
statement has been issued and a record of decisions has been
submitted to Congress by the United States Army Corps of
Engineers, Congress has authorized the Columbia River channel
deepening project, and the Washington sponsors' shares of the
costs of the Columbia River channel deepening project have been
committed.
(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 Columbia River
channel deepening project. Upon determining the relative
allocation of moneys deposited in the Economic Infrastructure
Project Fund among the purposes described in this subsection, the
director shall transfer from the Economic Infrastructure Project
Fund, and deposit into each of the other funds described in this
subsection, the amounts so allocated. Notwithstanding any other
provision of law governing the funds described in this
subsection, the funds described in this subsection may be
credited with moneys transferred from the Economic Infrastructure
Project Fund by the director in accordance with this subsection.
(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 Oregon.
(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 Coos County, then the territory must be
situated entirely within the watershed of the Coos River and its
tributaries. The proposal for annexation shall be made in a
resolution adopted by the board.
(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 Oregon provide effective local assistance to
state transportation development efforts.
(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 Oregon's ports in planning and
implementing transportation programs. To that end, the Department
of Transportation and the Oregon Department of Aviation may work
to:
(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
Oregon's Economy.
(2) The members of the council are:
(a) The presiding officer of the Oregon Economic and Community
Development Commission;
(b) The chairperson of the Oregon Transportation Commission;
(c) The chairperson of the State Board of Agriculture;
{ - (d) The chairperson of the International Trade
Commission; - }
{ - (e) - } { + (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 Oregon traded sector industries.
(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 Oregon University System.
(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 ___,
Oregon Laws 2007 (Enrolled House Bill 2263) (amending ORS
285A.090), if House Bill 2263 becomes law, ORS 285A.090 is
repealed. + }
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) Oregon possesses many unique and sustaining virtues that
will guide and assist in maintaining the state's economic health,
including but not limited to Oregon's:
(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
Oregon.
(b) Oregon is strategically placed to compete and succeed in
the global community.
(c) All regions of the state should share in Oregon's economic
recovery.
(d) Creating and retaining quality jobs is vital to the state's
continued economic development.
(e) Oregon's agriculture and natural resource industries
provide opportunities for beneficial economic enterprise,
including sustainable economic development activities.
(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 Oregon's economy.
(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 Oregon's
businesses.
(L) Capacity building in rural and distressed areas is a key
component of economic development and revitalization efforts.
(m) Oregon's ports are important partners in the state's
economic development efforts and are key components of local and
state economic development strategies.
(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 Oregon's economy.
(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 Oregon
companies; and
(c) Assist Oregon communities in building capacity to retain,
expand and attract businesses.
(4) To promote the advancement of the Oregon economy and
implement the immediate economic strategy of the state, the
Economic and Community Development Department shall invest
resources in accordance with the following principles:
(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 Oregon;
(f) Capitalize on Oregon's competitive advantages and
strategically invest resources to offset competitive
disadvantages;
(g) Support innovation and research;
(h) Assist industry clusters to succeed;
(i) Market Oregon's advantages;
(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 Oregon's arts and cultural organizations,
creative businesses and individual artists.
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 ___, Oregon Laws 2007
(Enrolled House Bill 2263), 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 Oregon
Economic and Community Development Commission and the duties,
functions and powers vested by law in the department.
(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 Oregon's future and adopt goals that include
measurable indicators of success (Oregon benchmarks) that show
the extent to which each goal is being achieved.
(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
Oregon Downtown Development Association, or its successor entity,
to provide downtown development and redevelopment assistance and
similar services to municipalities in Oregon. - }
{ - (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 Oregon to build
economic and community development capacity. - }
{ - (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 ___, Oregon Laws 2007 (Enrolled House Bill 3265)
(amending ORS 285B.323), is repealed and ORS 285B.323, as amended
by section 73 of this 2007 Act, is amended to read: + }
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 ___, Oregon Laws
2007 (Enrolled House Bill 3265) + }.
(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 ___, Oregon Laws 2007 (Enrolled House Bill 3265)
(amending ORS 285B.326), is repealed and ORS 285B.326, as amended
by section 74 of this 2007 Act, 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 - }
{ + 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. + }
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