70th OREGON LEGISLATIVE ASSEMBLY--1999 Regular Session
Enrolled
Senate Bill 1128
Sponsored by COMMITTEE ON TRADE AND ECONOMIC DEVELOPMENT
CHAPTER ................
AN ACT
Relating to economic development; creating new provisions;
amending ORS 238.015, 285A.010, 285A.020, 285A.040, 285A.045,
285A.050, 285A.055, 285A.070, 285A.085, 285A.090, 285A.131,
285A.206, 285A.224, 285A.300, 285A.306, 285A.309, 285A.312,
285A.340, 285A.346, 285A.483, 285A.486, 285A.489, 285B.059,
285B.092, 285B.230, 285B.233, 285B.236, 285B.239, 285B.242,
285B.245, 285B.248, 285B.254, 285B.257, 285B.260, 285B.263,
285B.266, 285B.286, 285B.320, 285B.323, 285B.326, 285B.329,
285B.332, 285B.335, 285B.338, 285B.344, 285B.347, 285B.362,
285B.368, 285B.371, 285B.374, 285B.377, 285B.383, 285B.389,
285B.410, 285B.419, 285B.422, 285B.563 and 541.700; repealing
ORS 285A.115, 285A.212, 285A.215, 285A.218, 285A.221, 285A.360,
285A.363, 285A.366, 285A.369, 285A.380, 285A.383, 285A.386,
285A.389, 285A.392, 285A.415, 285A.418, 285A.480, 285A.492,
285A.535, 285A.538, 285A.541, 285A.544, 285A.547, 285A.550,
285A.621, 285A.636, 285A.639, 285A.642, 285A.645, 285A.648,
285A.651, 285A.663, 285A.714, 285A.717, 285A.720, 285A.723,
285A.726, 285A.729, 285B.156, 285B.177, 285B.180, 285B.251,
285B.289, 285B.292, 285B.295 and 285B.298; 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 and 285B, 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. + }
{ - (2) - } { + (3) + } 'Department' means the Economic
{ + and Community + } Development Department.
{ - (3) - } { + (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.
Enrolled Senate Bill 1128 (SB 1128-B) Page 1
(6) 'International trade' means the export and import of
agricultural, mineral and manufactured products, business
services and banking.
(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 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) 'Traded sector' means industries in which member firms sell
their goods or services into markets for which national or
international competition exists. + }
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
{ - and expansion to provide jobs for its citizens - } { + to
help provide the jobs for its citizens that lead to community
vitality and a high quality of life + }.
{ - (c) Oregon should seek to increase its per capita
income. - }
{ - (d) Providing well-paid jobs is critical to assuring the
economic security of Oregon families. - }
{ - (e) Oregon communities continue to rely on a single firm
or industry dependent on the wise use and development of the
state's natural resources. - }
{ - (f) Oregon's rural areas can benefit substantially from
the further development and utilization of their natural
resources and public assets. - }
(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 { - the
state's economic expansion - } { + in maintaining the state's
economic health + }.
(3) It is the purpose of ORS { - 285A.010 to 285A.100,
285A.203, 285A.215 and 285A.218 - } { + chapters 285A and
285B + } to promote the improvement of Oregon's economy to better
provide for the well-being of its citizens { - , including the
availability of health care services in underserved areas - } .
To that end, the Economic { + and Community + } Development
Department shall { - give priority to economic development
efforts that meet the following criteria - } { + invest
resources in accordance with the following principles + }:
{ - (a) Develop the human resources of Oregon, by preparing
citizens for careers and job opportunities which will provide for
their long-term economic security, and aid the economically
disadvantaged and distressed citizens of this state including
women and minorities to achieve self-sufficiency. - }
Enrolled Senate Bill 1128 (SB 1128-B) Page 2
{ - (b) Promote development that will provide economic
activity in small communities suffering from economic dislocation
and in rural areas suffering from chronic underdevelopment. - }
{ - (c) Promote the development of sectors of the economy
that sell goods and services in markets for which national and
international competition exists. - }
{ - (d) Promote development which will provide family wage
jobs for Oregonians. - }
{ - (e) Promote development of sectors of the economy in
which Oregon has an economic comparative advantage based on
Oregon's labor force, natural resources or geographic location
that will secure the long-term viability of the economic
sector. - }
{ + (a) Structures and processes for making public
investments and dealing with local and regional issues must be
designed flexibly 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.
(c) The expected impact of public investments at all levels
should be explicitly 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 accomplish their mutual
objectives. + }
(4) The Legislative Assembly declares that it is the { +
immediate + } economic strategy of the state to { - focus its
development and promotion efforts on Oregon's small businesses
and on existing industries. To that end, all state economic
development efforts shall, to the maximum extent feasible - } :
{ - (a) Promote entrepreneurship and the growth and
development of small businesses which have historically been the
most important contributors to the state's economic
expansion; - }
{ - (b) Promote the development of new markets, nationally
and in foreign nations, for goods and services produced in
Oregon; - }
{ - (c) Utilize the resources of the state's public and
private educational system including higher education and
community colleges; and - }
{ - (d) Encourage additional new investment in Oregon by
out-of-state firms that is consistent with the state's long-term
economic betterment - }
{ + (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; and
(d) Help regions that are committed to making strong progress
toward an integrated structure and process for strategic planning
and project development + }.
SECTION 3. ORS 285A.040 is amended to read:
Enrolled Senate Bill 1128 (SB 1128-B) Page 3
285A.040. (1) There is established the Oregon Economic { + and
Community + } Development Commission consisting of five 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 members shall 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. Such experience or involvement in international trade may
include importing or exporting goods into or from the State of
Oregon.
(2) The term of office of each member is four years, but a
member serves at the pleasure of the Governor. Before the
expiration of the term of a member, the Governor shall appoint a
successor whose term begins on July 1 next following. A member is
eligible for reappointment. In case of a vacancy for any cause,
the Governor shall appoint a person to fill the office for the
unexpired term.
(3) A member of the commission is entitled to compensation and
expenses as provided by ORS 292.495.
(4) The Governor shall appoint one of the commissioners as
presiding officer of the commission. The presiding officer shall
have such duties and powers as the commission determines are
necessary for the office.
(5) Three 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 of a majority of the commission.
(7) No vacancy shall impair the right of the remaining
commissioners to exercise all the powers of the commission. If
the 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)
and that includes policies that:
(a) Maintain and create { - family wage jobs and - }
{ + 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 { - key - }
{ + traded sector + } industries 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.
Enrolled Senate Bill 1128 (SB 1128-B) Page 4
(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 { - the
state - } { + those communities that desire such
development + }.
(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.
(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) 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 + }.
SECTION 5. ORS 285A.050 is amended to read:
285A.050. (1) The Oregon Economic { + and Community + }
Development Commission shall report biennially to the Governor
and the Legislative Assembly on the success of economic
development efforts. The report, at a minimum, shall include the
following:
(a) For the overall Economic { + and Community + } Development
Department effort and for each identifiable program and
significant project { + or service + }:
(A) The impact of that program on the competitiveness of
{ - key - } { + traded sector + } industries and the skill
levels of the Oregon workforce;
(B) The impact on the number of jobs, including jobs created
and retained;
(C) The impact on the wage levels of Oregon workers, including
increases in wage levels; and
(D) The actual or anticipated { - return on investment of
public funds - } { + impact of public investments at all
levels, in terms of measurable outcomes wherever possible + }.
(b) The status of the Oregon economy related to:
(A) Changes in employment and wage levels in Oregon industries;
(B) Changes in employment, wage levels and competitiveness of
{ - key - } { + 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.
Enrolled Senate Bill 1128 (SB 1128-B) Page 5
(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. + }
{ - (2) The commission shall establish a methodology for
measuring return on public investments in economic development
programs and projects. At a minimum, the methodology shall
include estimates of state and local taxes and fees paid directly
by the benefiting businesses and taxes paid by employees hired as
a result of the public investment. - }
{ - (3) The commission, in accordance with the methodology
developed in subsection (2) of this section, shall establish
guidelines for return on investment that shall be used by the
department in evaluating potential investments of public funds
for economic development. - }
{ - (4) - } { + (2) + } Whenever a power is granted to the
commission, the power may be exercised by such officers,
employees or commission-appointed committees { - within the
department - } as are designated in writing by the commission.
SECTION 6. ORS 285A.055 is amended to read:
285A.055. { - (1) - } Prior to the approval of bond
financing of economic development projects under ORS 285B.320 to
285B.377, 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 except for those allocated under chapter 777, Oregon Laws
1985, the Oregon Economic { + and Community + } Development
Commission shall:
{ - (a) - } { + (1) + } Determine that the action is cost
effective, considering both major public expenses and major
public benefits;
{ - (b) - } { + (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;
{ - (c) - } { + (3) + } Determine that the action is the
best use of the moneys involved, considering other pending
applications for those moneys;
{ - (d) - } { + (4) + } Find that the project involved is
consistent with the Economic { + and Community + } Development
Department's comprehensive policy and programs;
{ - (e) - } { + (5) + } Find that the project involved is
consistent with
{ - all - } applicable adopted local economic development
plans; and
{ - (f) - } { + (6) + } Provide for public notice of, and
public comment on, the action.
{ - (2) When establishing standards under subsection (1) of
this section, the standards of the commission shall provide that
projects be approved in accordance with criteria reflecting the
economic benefits to this state. Such criteria shall include, but
need not be limited to, the following: - }
Enrolled Senate Bill 1128 (SB 1128-B) Page 6
{ - (a) Supporting projects that will increase the number of
family wage jobs in this state. In adopting any definition of a '
family wage job' as used in this paragraph, the commission shall
consider local housing costs. - }
{ - (b) Promoting economic recovery in small cities heavily
dependent on a single industry. - }
{ - (c) Emphasizing development in underdeveloped rural areas
of this state. - }
{ - (d) Utilizing the educational resources available at
institutions of higher education. - }
{ - (e) Supporting the development of the state's small
businesses, especially businesses owned by women and members of
minority groups. - }
{ - (f) Encouraging the use of Oregon's human and natural
resources in endeavors that harness Oregon's comparative economic
advantages. - }
{ - (g) Limiting assistance to projects that assist
businesses selling goods and services in markets for which
national or international competition exists. - }
{ - (h) Notifying the Housing and Community Services
Department of proposed projects and related workforce increases
at the time an application is received by the commission. - }
{ - (i) Considering housing needs based on the projected
workforce increase in the developing area. - }
SECTION 7. ORS 285A.070 is amended to read:
285A.070. (1) The Economic { + and Community + } Development
Department { - created by ORS 285A.075 - } is continued, but
reorganized as provided in this section { - and in the
reorganization plan developed under section 5, chapter 736,
Oregon Laws 1993 - } .
(2) The Economic { + and Community + } Development Department
shall
{ - consist of not more than five divisions - } { + 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) The department shall be under the supervision of the
director { - of the Economic Development Department - } , who
shall be appointed by and shall hold office at the pleasure of
the Governor. { - Each division shall be under the supervision
and control of a chief administrative officer appointed by the
director. - }
(4) The appointment of the director shall be subject to
confirmation by the Senate in the manner provided by ORS 171.562
and 171.565.
(5) 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.
(6) The Oregon Economic { + and Community + } Development
Commission
{ - shall set review criteria for the director and - } shall
report
Enrolled Senate Bill 1128 (SB 1128-B) Page 7
{ - annually - } { + periodically + } to the Governor on the
director's performance { - under the criteria - } and make
appropriate recommendations.
SECTION 8. ORS 285A.085 is amended to read:
285A.085. (1) Subject to policy direction by the Oregon
Economic { + and Community + } Development Commission, the
Director of the Economic { + and Community + } Development
Department shall:
(a) Be the administrative head of the Economic { + and
Community + } Development Department;
(b) Administer the laws of the state concerning 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 which may substantially affect economic
development within Oregon.
{ - (2) Subject to ORS 285A.070 (2), the director, for
purposes of administration and with the approval of the
commission, may organize and reorganize the department in
whatever manner the director considers necessary to conduct the
work of the department properly. - }
{ - (3) - } { + (2) + } In addition to duties otherwise
required by law and subject to the 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 in a manner
consistent with applicable law.
{ - (4) - } { + (3) + } The director may delegate to any of
the employees of the department the exercise or discharge in the
director's name of any power, duty or function of whatever
character vested in or imposed by law upon the director. The
official act of any such person so acting in the director's name
and by the authority of the director shall be considered to be an
official act of the director.
{ - (5) - } { + (4) + } The director shall have authority
to 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 amounts of the bond shall be fixed by the
director, except as otherwise provided by law, and the sureties
shall be approved by the director. The department shall pay the
premiums on the bonds.
SECTION 9. ORS 285A.090 is amended to read:
285A.090. The Economic { + and Community + } Development
Department shall:
(1) Implement programs consistent with policies of the Oregon
Economic { + and Community + } Development Commission.
(2) Provide field representatives in the various geographical
regions of the state. The field representatives shall be in the
unclassified service and shall receive such salary as may be set
by the Director of the Economic { + and Community + }
Development Department, unless otherwise provided by law. The
field representatives shall:
(a) Work with local units of government and the private sector
to encourage and to assist them as they establish and carry out
economic development plans and programs under ORS 280.500;
(b) Promote local awareness of department policy and department
programs and services and of assistance and economic incentives
available from government at all levels; and
Enrolled Senate Bill 1128 (SB 1128-B) Page 8
(c) Deliver to local units of government and the private sector
the assistance and services available from the department,
including publications, research and technical and financial
assistance programs.
(3) Process requests received by state agencies and interested
parties for information pertaining to industrial and commercial
locations and relocations throughout the state.
(4) Consult and advise with, coordinate activities of, and give
technical assistance and encouragement to, state and local
organizations, including local development corporations, county,
city, and metropolitan-area committees, chambers of commerce,
labor organizations and similar agencies interested in obtaining
new industrial plants or commercial enterprises.
(5) Act as the state's official liaison agency between persons
interested in locating industrial or business firms in the state,
and state and local groups seeking new industry or business,
maintaining the confidential nature of the negotiations it
conducts as requested by persons contemplating location in the
state.
(6) Coordinate state and federal economic development programs.
(7) Consult and advise with, coordinate activities of, and give
technical assistance and encouragement to all parties including,
but not limited to, port districts within the state working in
the field of international trade or interested in promoting their
own trading activity.
(8) Provide advice and technical assistance to Oregon business
and labor.
(9) Collect and disseminate information regarding the
advantages of developing new business and expanding existing
business in the state.
(10) Aid local communities in planning for and obtaining new
business to locate therein and provide assistance in local
applications for federal development grants.
(11) Work actively to recruit domestic and international
business firms to { - the state - } { + those communities
that desire such recruitment + }.
(12) In carrying out its duties under ORS chapters 285A and
285B and ORS 329.905 to 329.975, give priority to assisting small
businesses in this state by encouraging the creation of new
businesses, the expansion of existing businesses and the
retention of economically distressed businesses which are
economically viable.
{ - (13) Make recommendations on rates to the Oregon Board of
Maritime Pilots. - }
{ - (14) - } { + (13) + } Provide managers and other
employees for foreign trade offices in those foreign countries in
which the department considers a foreign trade office necessary.
Managers and other employees shall be in the unclassified
service, and the director shall set the salaries of those
persons. Foreign trade offices shall:
(a) Work with the private sector to assist them in finding
international markets for their goods and services;
(b) Work with local units of government to assist them in
locating foreign businesses within their jurisdiction;
(c) Promote awareness in foreign countries of department
policy, programs and services and of assistance and economic
incentives available from government at all levels; and
(d) Provide all other assistance considered necessary by the
director.
SECTION 10. ORS 285A.206 is amended to read:
Enrolled Senate Bill 1128 (SB 1128-B) Page 9
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 relating to each of the following funds:
(a) The Special Public Works Fund created by ORS 285B.455;
(b) The { - Community Development - } { + Title I + } Bank
Fund established by ORS 285A.306;
(c) The Oregon Business Development Fund created by ORS
285B.092;
(d) The Oregon Economic { + and Community + } Development Fund
created by ORS 285B.374;
(e) The Oregon Port Revolving Fund created by ORS 285A.708; and
(f) 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.
SECTION 11. 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 Fund to assist communities and workers affected by
economic dislocation or the possibility of economic dislocations
to evaluate and implement alternative business or community
opportunities.
(2) The Economic Stabilization and Conversion 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
{ - shall - } { + may + } allocate moneys in the fund for the
following purposes:
(A) Industrial retention service;
(B) Employee ownership;
(C) Community response to plant closures or community distress,
or both; and
(D) Feasibility studies.
(b) Not more than 30 percent of the moneys expended in any
biennium from the fund shall be used for the purposes of
paragraph (a)(C) of this subsection, nor shall any moneys be
Enrolled Senate Bill 1128 (SB 1128-B) Page 10
expended under paragraph (a)(C) of this subsection unless those
funds are matched dollar for dollar from other nonlottery funds.
(4) The Economic { + and Community + } Development Department
may expend or loan moneys in the fund for financial assistance,
feasibility studies, technical assistance and management
consulting services for 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 Fund any assistance
provided under subsection (4) of this section. Such provisions
for repayment shall consider the financial ability of the firm to
repay assistance.
(6) In providing assistance from the Economic Stabilization and
Conversion Fund, the department shall give preference to Oregon's
distressed areas and its traditional agriculture, forestry and
fishing industries, and firms competing in markets for which
national or international competition exists.
{ - (7) In providing assistance from the Economic
Stabilization and Conversion Fund, the department shall give
preference to employee-owned enterprises. The employee ownership
funds shall be contracted out to fulfill the state's obligation
under ORS 285A.535 to 285A.550. In contracting, the Economic
Development Department shall give preference to contractors with
prior experience in operating programs for technical assistance
and public education in the area of employee ownerships. - }
{ - (8) - } { + (7) + } The Economic { + and Community + }
Development Department shall establish specific criteria for
expenditure of funds from the Economic Stabilization and
Conversion Fund by adopting rules.
SECTION 12. ORS 285A.300 is amended to read:
285A.300. As used in ORS 285A.300 to 285A.312, 'fund' means the
{ - Community Development - } { + Title I + } Bank Fund.
SECTION 13. ORS 285A.306 is amended to read:
285A.306. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the { - Community
Development - } { + Title I + } Bank Fund. All moneys in the
fund are continuously appropriated to provide financing for
community development projects.
(2) Moneys in the { - Community Development - } { + Title
I + } Bank 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 and other program income shall be credited
to the
{ - Community Development - } { + Title I + } Bank Fund.
(3) The { - Community Development - } { + Title I + } Bank
Fund shall consist of:
(a) Moneys appropriated to the fund by the Legislative
Assembly.
{ - (b) Recaptured moneys from the Oregon Community
Development Grant Program. - }
{ - (c) Interest earnings on moneys loaned to cities and
counties under the Oregon Community Development Grant Program for
short-term financing of community development projects. - }
Enrolled Senate Bill 1128 (SB 1128-B) Page 11
{ - (d) Repayment of loans to municipalities made under the
Oregon Community Development Grant Program, including interest
earnings. - }
{ + (b) Repayment of loans made by cities and counties with
grants from the Oregon Community Development Block Grant Program,
including interest earnings. + }
(4) The Economic { + and Community + } Development Department
{ - , or the agency assigned principal responsibility for
administration of the moneys received from the federal Housing
and Urban Development Community Development Block Grant Program
for Small Cities, - } shall be the agency for the State of
Oregon for the administration of the fund.
(5) The department shall adopt rules and policies for the
administration of the fund.
{ - (6) The department may establish a program for short-term
financing of eligible community development projects using
federal Community Development Block Grant moneys allocated to the
state but not yet drawn from the federal treasury. - }
{ - (7) - } { + (6) + } The department may charge program
administrative costs to the fund to pay for administrative
expenses incurred to the department for processing applications
and investigating community development projects.
SECTION 14. ORS 285A.309 is amended to read:
285A.309. All payments, receipts and interest from outstanding
indebtedness shall be retained and accumulated in the
{ - Community Development - } { + Title I + } Bank Fund and
used for the purposes specified in ORS 285A.303.
SECTION 15. ORS 285A.312 is amended to read:
285A.312. All federal overlay statutes associated with moneys
received from the federal Housing and Urban Development Community
Development Block Grant Program for Small Cities shall continue
to apply to the use of those moneys in the { - Community
Development - } { + Title I + } Bank Fund received from sources
described in ORS 285A.306 (3)(c) and (d).
SECTION 16. 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. + }
{ - (a) - } { + (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 { - employment - }
{ + economic + } opportunities and { - family wage - } jobs
for Oregonians.
{ + (c) Oregon's women and minority-owned businesses are
underrepresented in the business community. + }
{ - (b) - } { + (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.
{ - (c) - } { + (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.
{ - (d) - } { + (f) + } Small businesses that receive
services from state-supported business assistance programs ought
to pay part of the costs of those services because payment of
fees by participating businesses assures that the beneficiaries
of program services bear a part of the costs of providing the
services, that businesses which do not value the services are
Enrolled Senate Bill 1128 (SB 1128-B) Page 12
discouraged from using them and that programs that provide
services for which there is great demand obtain additional
resources from program revenues.
{ + (g) 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.
(h) 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 and 285B.156 to 285B.162 + }:
{ + (a) To assist the development of small businesses, with
special emphasis on increasing the percentage of businesses owned
by women and members of minority groups. + }
{ - (a) - } { + (b) + } 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;
{ - (b) - } { + (c) + } 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; { - and - }
{ - (c) - } { + (d) + } To encourage and support the
formation of private sector organizations, including trade
associations, organizations formed to meet the needs of
{ - key - } { + 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) To provide support for organizations that encourage
and assist the development and expansion of small businesses in
Oregon + }.
SECTION 17. ORS 285A.483 is amended to read:
285A.483. (1) The Legislative Assembly finds that:
(a) The rural communities of Oregon need assistance in
assessing their economic opportunities, planning for long-term
economic development and participating effectively in state
economic development programs;
(b) Strong community leaders are essential to the ability of a
rural community to identify economic opportunities and problems,
build a consensus on community development issues and coordinate
the development and implementation of plans to address those
issues;
(c) Rural areas of Oregon, more than the urban areas of this
state, suffer from significantly higher levels of unemployment,
lower average wages and high levels of worker displacement due to
advances in technology and { - timber - } { + natural
resource + } supply shortages;
(d) These distressed rural communities in particular need
strong, visionary leadership to guide them through the economic
changes of the next decade, which may be a period of growing
global competition, severe { - timber - } { + natural
resource + } shortages and declining employment in rural areas;
(e) Rural areas have limited resources with which to acquire
the technical assistance and leadership necessary to adequately
respond to economic change; and
Enrolled Senate Bill 1128 (SB 1128-B) Page 13
(f) Federal and state investment in community and leadership
development in rural areas is insufficient.
(2) The Legislative Assembly therefore declares that it is the
policy of the State of Oregon to promote economic stability and
development in rural areas of this state.
(3) The Legislative Assembly further declares that the rural
revitalization and leadership development program established by
ORS 285A.480 to 285A.495 is intended to promote such state policy
by providing rural communities with technical assistance for the
assessment of their economic opportunities and the development of
strategic plans for immediate and long-term economic development
and by improving the leadership skills of individuals likely to
become leaders in rural communities.
SECTION 18. ORS 285A.489 is amended to read:
285A.489. { - (1) - } The Economic { + and Community + }
Development Department, in cooperation with private businesses,
state universities and other interested parties, { - shall
establish a private, nonprofit corporation - } { + may contract
with organizations + } to carry out the purposes of ORS 285A.480
to 285A.495.
{ - (2) The Director of the Economic Development Department
shall establish an initial board of directors with no more than
15 members including, but not limited to, a majority of members
who are representatives from business and rural Oregon, the
Director of the Economic Development Department or the deputy
director, the Director of the Oregon State University Extension
Service or the associate director and an individual skilled in
leadership training. The board shall be chaired by a member from
the private sector who is elected by a majority of the board.
After the initial members of the board of directors are
determined, the board, as part of its responsibilities, shall
determine the subsequent membership of the board. - }
SECTION 19. ORS 285B.266 is amended to read:
285B.266. (1) There is created a Strategic Reserve 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 Strategic Reserve Fund. The fund is continuously appropriated
to the Economic { + and Community + } Development Department to
be used to implement statewide strategies for economic
development.
(2) The fund shall not be used to retire any debt or, except
upon approval of the Joint Ways and Means Committee or, if the
Legislative Assembly is not in session, the Emergency Board, to
pay administrative expenses of the department. Expenses that are
project related shall not be considered to be administrative
expenses of the department.
(3) The department is directed { - in the preparation of
statewide strategies under this section, after considering the
goals and policies of the Oregon Development Board established
under section 2, chapter 908, Oregon Laws 1989, to place
particular emphasis on developing cost-effective, long-term
policies to assist the creation, expansion and preservation of
Oregon's principal traded sector industries, including but not
limited to agriculture, forest products, electronics and other
diversified manufacturing - } { + to place particular emphasis
on investments that assist communities, businesses or industries
in cost-effective projects that assist the creation, expansion
and preservation of the principal traded sector industries of
Oregon and encourage diversification and preservation of regional
Enrolled Senate Bill 1128 (SB 1128-B) Page 14
economies + }. The fund shall be used to assist economic { + and
community + } development projects of public entities, industry
groups or businesses with significant long-term, regional or
statewide economic impacts, to provide interim financing
mechanisms to augment existing public or private sector programs
or to analyze statewide, long-term economic issues and
opportunities.
{ - (4) The department shall notify the Housing and Community
Services Department of any proposed Strategic Reserve Fund
project with a related workforce increase at least two weeks
before the signing of the contract for state participation in the
project. - }
SECTION 20. ORS 285B.286 is amended to read:
285B.286. For { - key - } { + traded sector + } industries,
the Economic { + and Community + } Development Department shall
undertake { - a program of key - } industry development
activities which may include, but are not limited to, all of the
following:
(1) Focus groups and other meetings and related studies to
identify { - key - } { + traded sector + } industry members
and issues of common concern within an industry.
(2) State technical and financial support for formation of
industry associations, publication of association directories and
related efforts to create or expand the activities of industry
associations.
(3) Helping establish research consortia.
(4) Joint training and education programs and curricula related
to the specific needs of { - key - } { + traded sector + }
industries.
(5) Cooperative market development activities.
(6) Analysis of the need, feasibility and cost for establishing
product certification and testing facilities and services.
{ - (7) Providing for methods of electronic communication and
information dissemination among firms and groups of firms to
facilitate network activity. - }
SECTION 21. ORS 285B.389 is amended to read:
285B.389. (1) The Oregon Economic { + and Community + }
Development Commission shall collect the fees set forth in
subsection (2) of this section from an applicant that seeks to
have the real and personal property constituting the eligible
project declared eligible for the tax exemption provided in ORS
307.123. The fee may be collected even though the project has not
been determined to be eligible for the tax exemption.
(2) The fees described in subsection (1) of this section are as
follows:
(a) $10,000 upon application to the commission; and
(b) $50,000 when the eligible project is determined by the
commission to be eligible for the tax exemption provided in ORS
307.123. The commission shall pay 50 percent of this fee to the
Department of Revenue for the purpose of administration of ORS
307.123.
(3) The fees collected under subsection (2) of this section
shall be deposited in the Financial Programs Account created by
ORS 285A.212.
SECTION 22. ORS 285B.419 is amended to read:
285B.419. (1) The Economic { + and Community + } Development
Department shall adopt rules and policies for the administration
of the Special Public Works Fund. Insofar as practicable, the
department's rules shall provide that infrastructure projects
Enrolled Senate Bill 1128 (SB 1128-B) Page 15
that meet the following criteria receive priority for financial
assistance:
(a) Provide for the establishment or enlargement of
economically viable industries, with reasonable long term growth
prospects, including opportunities for innovative new industries
or for continuance of existing basic industries.
(b) Result in a net benefit to the state in the long term and
not require continuing state subsidies.
(c) Utilize existing public and private assets, including
infrastructure, human resources and plant and equipment.
(d) Improve the conditions of the economically disadvantaged
and increase the number of { - family wage - } jobs { + that
increase average incomes + }.
(e) Support the development of businesses owned by women and
members of minority groups.
(f) Harness Oregon's comparative advantage with emphasis on the
growth and development of existing, in-state businesses,
especially small businesses.
(g) Direct assistance to projects that assist businesses
selling goods and services in markets for which national or
international competition exists and prohibit assistance to
infrastructure projects that primarily focus on relocating
business or economic activity from one part of the state to
another.
(h) Result in the economic revitalization of { - small cities
and underdeveloped urban and rural areas - } { +
communities + }.
(i) Are funded and otherwise supported to the maximum extent
possible by private resources.
(j) Result in business growth or expansion which would not
occur in Oregon without an investment from the Special Public
Works Fund.
(2)(a) The Economic { + and Community + } Development
Department shall manage the Special Public Works Fund and any
expenditures from its accounts and transfers between its accounts
so that the fund value shall be equal to at least 50 percent of
lottery revenues actually transferred to the fund plus interest
on such amounts compounded annually at five percent. The fund
value shall be determined by summing the cash reserves and the
outstanding principal amount of loans to municipalities. Any
principal amounts of loans forgiven shall be subtracted from the
value of the fund. The value of the fund shall include moneys in
the fund that are pledged to the repayment of state bonds.
(b) The department shall quarterly certify the value of the
fund to the State Treasurer { - and to the Legislative
Committee on Trade and Economic Development - } .
(c) If necessary to insure repayment of bonds issued under ORS
285B.410 to 285B.479, the Economic { + and Community + }
Development Department is authorized to reduce the value of the
fund to less than the limit provided in paragraph (a) of this
subsection if the department:
(A) Finds that without such 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 met.
(3) Not more than 100 percent of the total cost of any
infrastructure project shall be financed from the Special Public
Works Fund.
(4) The department may commit moneys in the Special Public
Works Fund or reserve future income to the fund for disbursal in
Enrolled Senate Bill 1128 (SB 1128-B) Page 16
future years under ORS 285B.440 (4). The department shall commit
or reserve moneys under this subsection only after:
(a) Allowing for contingencies;
(b) Finding that there will be sufficient unobligated net
income to the fund to make such future payments. Such a finding
shall be based on financial plans which are consistent with the
financial requirements of subsections (2) and (4) of this
section; and
(c) Providing in any contract for such commitment that the
liability of the state to make such annual payments shall be
contingent on the availability of moneys in the Special Public
Works Fund.
(5) In assisting local governments with infrastructure
projects, the department shall cooperate to the maximum extent
possible with other state agencies financing infrastructure
projects, including but not limited to the Department of
Environmental Quality, the Water Resources Department and the
Department of Transportation.
(6) The department shall notify the Housing and Community
Services Department of any proposed Special Public Works Fund
project with a related workforce increase at the time the
department receives the completed application for the project.
SECTION 23. ORS 238.015 is amended to read:
238.015. 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. 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 follows:
(1)(a) An employee who is a member of, or eligible for
membership in, a retirement system established by a public
employer prior to April 8, 1953, or who is a member of, or
eligible to membership in, an association established pursuant to
ORS chapter 239, may not become a member of the system
established by this chapter until the previously established
system or the system of the association is integrated with the
system established by this chapter pursuant to the procedure
provided by ORS 238.680. As a member of the system established by
this chapter an employee shall receive no retirement credit
during such time as the employee heretofore excluded or hereafter
excludes the employee from the previously established system or
from the association, and shall receive only such retirement
credit during the time the employee is a member of the previously
established system or of the association as the contract of
integration provides, except that any teacher who has been
continuously employed by a school district of this state from
July 1, 1929, to July 1, 1951, in which an association has been
established pursuant to ORS chapter 239, and who has not been a
member of such association at any time from July 1, 1929, to
September 1, 1953, shall receive credit for prior service as
provided by ORS 238.225 upon payment prior to December 1, 1953,
to the board by such teacher of such contributions as would have
been deducted from the salary of the teacher from July 1, 1946,
to the date of becoming a member of this system if the teacher
Enrolled Senate Bill 1128 (SB 1128-B) Page 17
had become a member of this system on July 1, 1946, and the
school district by which said teacher is employed shall transmit
to the board, at such time as the board designates, such sums as
the school district would have been required to transmit under
the provisions of ORS 238.225 if such teacher had become a member
of this system on July 1, 1946, and, upon such payments, such
teacher shall be deemed to have been a member of the system
established by this chapter for the purposes of this chapter
continuously from July 1, 1946.
(b) Notwithstanding paragraph (a) of this subsection, an
employee who is a member of, or eligible for membership in, an
association established pursuant to ORS chapter 239 shall become
a member of the system established by this chapter if the
employee has separated, for any reason other than death or
disability, from all service entitling the employee to membership
in the system of the association, and the employee shall receive
retirement credit under this chapter for the period of time the
employee was a member of an association established pursuant to
ORS chapter 239 upon payment to the Public Employees Retirement
Board of all amounts in the individual account of the employee
established pursuant to ORS chapter 239. The payment by the
employee shall be deposited in the individual account of the
employee in the Public Employees Retirement Fund. Upon such
payment by the employee, the school board which previously
employed the employee shall pay to the retirement board such sums
as may be determined by actuarial computation to fund the
retirement credit received by the employee. The school board may,
with the consent of the board, make payment in three equal annual
installments.
(c) Notwithstanding paragraph (a) of this subsection, an
employee who is a member of a retirement system established by a
public employer prior to April 8, 1953, shall become a member of
the system established by this chapter if the employee has
separated from all service entitling the employee to membership
in the retirement system established prior to April 8, 1953; but
the employee shall receive no retirement credit under this
chapter for the time the employee is a member of, or eligible for
membership in, the retirement system established prior to April
8, 1953. Furthermore, if the employee has been separated for
disability from service entitling the employee to membership in a
retirement system established prior to April 8, 1953, and is
receiving a disability benefit under such retirement system at
the time the employee becomes a member of the system established
by this chapter, the employee shall not receive any benefit under
this chapter for such disability.
(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.
Enrolled Senate Bill 1128 (SB 1128-B) Page 18
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 current service
contributions for any of its eligible employees, the benefits
based upon employer current service contributions to which such
employees would otherwise be entitled shall be reduced
accordingly.
(4) Except as subsection (7) of this section provides otherwise
with reference to volunteer firefighters, no employee whose
position with one public employer or concurrent positions with
two or more public employers normally require less than 600 hours
of service per year may become a member of the system.
(5) 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.
(6) 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.
(7) 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 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.
Enrolled Senate Bill 1128 (SB 1128-B) Page 19
(8)(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 the account of
the employee in the same manner as the employer contributes on
the 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.
(9)(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
Enrolled Senate Bill 1128 (SB 1128-B) Page 20
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 to the withdrawing member,
regardless of age, the account balance of the employee in the
retirement fund.
(10) Managers and other 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 { - (14) - } { + (13) + } shall
not be members of the system. However, any person who is an
active member of the system immediately before becoming a manager
or employee of a foreign trade office shall continue to be a
member of the system during the period of time the person serves
as a manager or employee of the foreign trade office.
(11) An employee who is an employee of the Oregon Health
Sciences University may not be an active member of the Public
Employees Retirement System if that employee is participating in
an alternative retirement program established by the university
pursuant to ORS 353.250.
SECTION 24. ORS 285A.131 is amended to read:
285A.131. (1) There is established the International Trade
Commission consisting of nine members appointed by the Governor.
In appointing members of the commission, the Governor shall
appoint some members who represent businesses specializing in
international trade and some who represent { - key - }
{ + traded sector + } industries. At least one member of the
International Trade Commission appointed by the Governor shall be
a member of the Oregon Economic { + and Community + }
Development Commission.
(2) In addition to the members appointed by the Governor, the
President of the Senate and the Speaker of the House of
Representatives shall appoint one member each to serve as
nonvoting, ex officio members of the International Trade
Commission.
(3) The members of the commission who are appointed by the
Governor shall serve on the commission at the pleasure of the
Governor.
(4) The members of the commission who are appointed by the
Governor may receive payment for their actual and necessary
travel and other expenses as provided in ORS 285A.060.
(5) The Economic { + and Community + } Development Department
shall provide staff support for the International Trade
Commission.
(6) The commission may appoint work groups and task forces as
the commission considers appropriate to assist the commission in
carrying out the duties of the commission under this section and
ORS 285A.133. Work groups and task forces may include individuals
who are not members of the commission.
(7) The Director of the Economic { + and Community + }
Development Department, with the approval of the Governor, shall
appoint an executive director of the International Division of
the Economic { + and Community + } Development Department from
a list of candidates submitted by the International Trade
Commission.
SECTION 25. ORS 285A.346 is amended to read:
285A.346. (1) The Economic { + and Community + } Development
Department shall contract for specified periods with public or
private organizations or associations that provide business
Enrolled Senate Bill 1128 (SB 1128-B) Page 21
assistance services to small businesses for delivery to small
businesses in this state of services that include but are not
limited to:
(a) Basic business training, including elements of accounting,
personnel management, marketing and tax compliance.
(b) Counseling on business needs and problems.
(c) Assistance in securing state and federal procurement
contracts.
(d) Assistance in securing Oregon suppliers for goods and
services.
(2) For contracts entered into under this section, the
department shall recognize and maintain the policy set forth in
ORS 285A.340 (1) { - (d) - } { + (f) + } relating to fees for
business assistance programs for small businesses.
(3) 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.
(4) 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 26. ORS 285B.383 is amended to read:
285B.383. (1) If an eligible project directly benefits a
{ - key - } { + traded sector + } industry, as defined in ORS
285B.280 (3), and if the total cost of the eligible project
exceeds $100 million, the State of Oregon, acting through the
Oregon Economic { + and Community + } Development Commission,
may determine that the real and personal property constituting
the eligible project is eligible for the tax exemption provided
in ORS 307.123, and the State of Oregon, acting through the State
Treasurer, may authorize and issue revenue bonds in accordance
with ORS 285B.320 to 285B.377 to finance the costs of the
eligible project.
(2) Nothing in this section authorizes { - the refinancing of
existing eligible projects that meet the requirements of this
section or authorizes - } the Oregon Economic { + and
Community + } Development Commission to determine that an
existing eligible project is eligible for the tax exemption
provided in ORS 307.123.
(3) A business firm that will be benefited by an eligible
project shall enter into a first-source hiring agreement with a
publicly funded job training provider that will remain in effect
until the end of the tax exemption period.
(4) If an eligible project is leased or subleased to any
person, the lessee shall be required to pay property taxes levied
upon or with respect to the leased premises only in accordance
with ORS 307.123.
(5) For purposes of determining the assessment and taxation of
the eligible project in ORS 307.123 and the calculation of the
community services fee in ORS 285B.386 (4)(b), in addition to the
requirements set out in ORS 285B.323 { - (2) - } { + (3) + },
the invested cost of all real and personal property to be
included in the eligible project shall be established by the
Oregon Economic { + and Community + } Development Commission
when it determines that the project is an eligible project.
SECTION 27. ORS 285B.059 is amended to read:
Enrolled Senate Bill 1128 (SB 1128-B) Page 22
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 finds that:
(a) The proposed business development project is feasible and a
reasonable risk from practical and economic standpoints, and 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
assure success of the project.
(e) If the proposed project is to be located in an incorporated
city, the governing body of that city has executed a resolution
recommending the proposed project.
(f) If the proposed project is to be located outside any
incorporated city, the governing body of the county in which the
project is to be located has executed a resolution recommending
the proposed project.
(g) The Housing and Community Services Department received
notification of the proposed project and any related workforce
increase at the time the application was received by the
commission.
(h) The applicant has not received or entered into a contract
or contracts exceeding $500,000 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, 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 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) 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) Except in cases where the applicant is a county or
municipality, 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) 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.
Enrolled Senate Bill 1128 (SB 1128-B) Page 23
(6) 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 { - economically depressed areas - }
{ + distressed communities + } 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), 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 28. 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 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) Transfers of moneys as provided in ORS 285B.374 (4)(a).
(d) Purchase or buy out 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;
(B) Such 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 $500,000.
(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).
(b) Repayment of moneys loaned to counties, municipalities or
persons from the Oregon Business Development Fund, including
interest on those 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 funds.
Enrolled Senate Bill 1128 (SB 1128-B) Page 24
(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 section 13, chapter 688, Oregon Laws
1991, 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. + }
SECTION 29. 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.377 for
the assembling and financing of lands for industrial, commercial
and research and development uses and for the construction and
financing of facilities for such uses, financed through the
issuance of { - revenue - } bonds secured solely by the
properties { + , loan payments, + } { - and - } 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.377 to
authorize the exercise of powers granted by ORS 285B.320 to
285B.377 by this state in addition to and not in lieu of any
other powers it may possess.
SECTION 30. ORS 285B.323 is amended to read:
285B.323. As used in ORS 285B.320 to 285B.377, 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.377. A bond, as defined in this subsection and issued under
ORS 285B.320 to 285B.377, shall be considered a revenue bond for
purposes of ORS 286.031. + }
{ - (1) - } { + (2) + } 'Economic development project'
includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise. 'Economic
development project ' shall not include any facility or
facilities designed primarily for the generation, transmission,
sale or distribution of electrical energy.
{ - (2) - } { + (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.
SECTION 31. ORS 285B.326 is amended to read:
285B.326. (1) Upon determining an economic development project
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
{ - revenue - } bonds.
(2) The commission shall collect the fees set forth in
subsection (3) of this section from an applicant that seeks to
Enrolled Senate Bill 1128 (SB 1128-B) Page 25
have an economic development project declared eligible for
financing. The fee may be collected even though the project has
not been determined to be eligible for financing. Moneys
collected under this subsection are continuously appropriated to
the commission for the purpose of administration or funding of
any program it is authorized to operate. Participation fees
received on bonds issued pursuant to ORS 285B.377 may be paid to
local development groups for administration expenses related to
investigating proposed economic development projects and
assisting the commission in processing applications pursuant to
ORS 285B.377.
(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.
(d) A one-time participation fee, not to exceed one-half of one
percent of the total bond issue or an annual participation fee
not to exceed one one-sixteenth of one percent of the outstanding
principal of the bond issue as determined by the commission.
(e) For bonds issued under ORS 285B.374 and 285B.377, insurance
assessments in amounts and payable at such times as are required
by rules adopted pursuant to ORS 285A.110.
SECTION 32. ORS 285B.329 is amended to read:
285B.329. The state, acting through the State Treasurer, shall
not undertake to finance any economic development project
pursuant to ORS 285B.320 to 285B.377 before the Oregon Economic
{ + and Community + } Development Commission has reviewed the
project pursuant to standards adopted under ORS 285A.110.
SECTION 33. ORS 285B.332 is amended to read:
285B.332. (1) The undertaking of any eligible project must be
requested by official action of the governing body of the county
taken at a regular or duly called special meeting thereof by the
affirmative vote of a majority of its members.
(2) The governing body of any Oregon county is encouraged to
forward appropriate prospective eligible projects to the Oregon
Economic { + and Community + } Development Commission for
processing pursuant to ORS 285B.326.
(3) For purposes of this section, for projects located on a
federally recognized Oregon Indian reservation, the governing
body of a county shall be considered to be the governing body of
the federally recognized Oregon Indian tribe.
(4) If the governing body is requesting the undertaking of an
eligible project under ORS 285B.386, it may impose additional
reasonable requirements on the applicant.
SECTION 34. ORS 285B.335 is amended to read:
285B.335. In addition to any other powers granted by law or by
charter, in relation to an eligible project, the state, acting
through the State Treasurer or a designee thereof may:
(1) Enter into agreements to finance the costs of an eligible
project by loaning { + or otherwise making available + } the
proceeds of bonds authorized by ORS 285B.374 and 285B.377 to any
person, firm or public or private corporation or federal or state
governmental subdivision or agency under such terms and with such
security as the state may approve;
(2) Lease and sublease eligible projects to any person, firm or
public or private corporation or federal or state governmental
subdivision or agency in such manner that rents to be charged for
Enrolled Senate Bill 1128 (SB 1128-B) Page 26
the use of such projects shall be established, and revised from
time to time as necessary, so as to produce income and revenue
sufficient to provide for the prompt payment of principal of and
interest on all bonds issued under this section when due, and the
lease { + or financing agreement + } shall also provide that the
lessee { + , borrower or financing party + } shall be required to
pay all expenses of the operation and maintenance of the project
including, but without limitation, adequate insurance thereon and
insurance against all liability for injury to persons or property
arising from the operation thereof, and all taxes and special
assessments levied upon or with respect to the leased premises
and payable during the term of the lease, during which term ad
valorem taxes in the same amount and to the same extent as though
the lessee were the owner of all real and personal property
comprising the project;
(3) Pledge and assign to the holders of such bonds or a trustee
therefor all or any part of the revenues of one or more eligible
projects owned or to be acquired by the state, and define and
segregate such revenues or provide for the payment thereof to a
trustee;
(4) Mortgage or otherwise encumber eligible projects in favor
of the holders of such bonds or { + in favor of any escrow
agent, vendor, lender, other financing party or + } { - a - }
trustee therefor. However, in creating any such mortgages or
encumbrances the state can not obligate itself except with
respect to the project;
(5) Make all contracts, execute { + and deliver + } all
instruments, and do all things necessary or convenient in the
exercise of the powers granted by this section, or in the
performance of its covenants or duties, or in order to secure the
payment of its bonds; including a contract entered into prior to
the construction, acquisition and installation of the eligible
project authorizing the lessee, { + borrower or other financing
party, + } subject to such terms and conditions as the state
shall find necessary or desirable and proper, to provide for the
construction, acquisition and installation of the buildings,
improvements and equipment to be included in the project by any
means available to the lessee { + , borrower or other financing
party, + } and in the manner determined by the lessee,
{ + borrower or other financing party, + } and without
advertisement for bids as may be required for the construction,
acquisition or installation of other public facilities;
(6) Enter into and perform such contracts and agreements with
political subdivisions and state agencies as the respective
governing bodies of the same may consider proper and feasible for
or concerning the planning, construction, installation, lease, or
other acquisition, and the financing of such facilities, which
contracts and agreements may establish a board, commission or
such other body as may be deemed proper for the supervision and
general management of the facilities of the eligible project; and
(7) Accept from any authorized agency of the { + state or + }
Federal Government loans or grants for the planning,
construction, acquisition, leasing, or other provision of any
eligible project, and enter into agreements with such agency
respecting such loans or grants.
SECTION 35. ORS 285B.338 is amended to read:
285B.338. In carrying out its duties under ORS 285B.320 to
285B.377, the Oregon Economic { + and Community + } Development
Commission, acting for and in behalf of the state as its duly
authorized agency, may:
Enrolled Senate Bill 1128 (SB 1128-B) Page 27
(1) Acquire, construct and hold in whole or in part any lands,
buildings, easements, water and air rights, improvements to lands
and buildings and capital equipment to be located permanently or
used exclusively on such lands or in such buildings, which are
deemed necessary in connection with an eligible project to be
situated within the state, and construct, reconstruct, improve,
better and extend such projects, and enter into contracts
therefor; and
(2) Sell and convey all properties acquired in connection with
eligible projects, including without limitation the sale and
conveyance thereof subject to any mortgage and the sale and
conveyance thereof under an option granted to the lessee of the
eligible project, for such price, and at such time as the state
may determine. However, no sale or conveyance of such properties
shall ever be made in such manner as to impair the rights of
interests of the holder, or holders, or any bonds issued under
the authority of ORS 285B.320 to 285B.377.
SECTION 36. ORS 285B.344 is amended to read:
285B.344. (1) If the State Treasurer determines that
{ - revenue - } bonds should be issued:
(a) The State Treasurer may authorize and issue in the name of
the State of Oregon { - revenue - } bonds secured by revenues
from eligible economic development projects { + or from other
financing sources + }, and where applicable, secured as provided
in ORS 285B.374 and 285B.377, to finance or refinance in whole or
part the cost of acquisition, construction, reconstruction,
improvement or extension of projects. The bonds shall be
identified by project and issued in the manner prescribed by ORS
286.010, 286.020 and 286.105 to 286.135, and refunding bonds may
be issued to refinance such { - revenue - } bonds.
(b) The State Treasurer shall designate the underwriter,
trustee { + , + } { - and - } bond counsel, { + vendor,
lender or other financing party, + } if any, and enter into
appropriate agreements with each to carry out the provisions of
ORS 285B.320 to 285B.377.
(2) Any { + escrow agent, bond registrar, paying agent or + }
trustee { + , if any, + } designated by the State Treasurer to
carry out all or part of the powers specified in ORS 285B.335
must agree to furnish financial statements and audit reports for
each bond issue.
SECTION 37. ORS 285B.347 is amended to read:
285B.347. In determining whether to issue { - revenue - }
bonds under ORS 285B.320 to 285B.377, the State Treasurer shall
consider:
(1) The { - bond - } market for the types of bonds proposed
for issuance.
(2) The terms and conditions of the proposed issue.
(3) Such other relevant factors as the State Treasurer
considers necessary to protect the financial integrity of the
state.
SECTION 38. ORS 285B.362 is amended to read:
285B.362. The official action authorizing the issuance of bonds
under ORS 285B.320 to 285B.377 to finance or refinance in whole
or in part, the acquisition, construction, installation,
reconstruction, improvement, betterment or extension of any
eligible project may contain covenants, notwithstanding that such
covenants may limit the exercises of powers conferred by ORS
285B.320 to 285B.377 in the following respects and in such other
respects as the state, acting through the State Treasurer, or the
designee of the treasurer may decide:
Enrolled Senate Bill 1128 (SB 1128-B) Page 28
(1) The rents to be charged for the use of properties acquired,
constructed, installed, reconstructed, improved, bettered or
extended under the authority of ORS 285B.320 to 285B.377;
(2) The use and disposition of the revenues of such projects;
(3) The creation and maintenance of sinking funds and the
regulation, use and disposition thereof;
(4) The creation and maintenance of funds to provide for
maintaining the eligible project and replacement of properties
depreciated, damaged, destroyed or condemned;
(5) The purpose or purposes to which the proceeds of sale of
bonds may be applied and the use and disposition of such
proceeds;
(6) The nature of mortgages or other encumbrances on the
eligible project made in favor of the holder or holders of such
bonds { + or in favor of any escrow agent, vendor, lender, other
financing party + } or { - a - } trustee therefor;
(7) The events of default and the rights and liabilities
arising thereon and the terms and conditions upon which the
holders of any bonds may bring any suit or action on such bonds
or on any coupons appurtenant thereto;
(8) The issuance of other or additional bonds or instruments
payable from or constituting a charge against the revenue of the
eligible project;
(9) The insurance to be carried upon the eligible project and
the use and disposition of insurance moneys;
(10) The keeping of books of account and the inspection and
audit thereof;
(11) The terms and conditions upon which any or all of the
bonds shall become or may be declared due before maturity and the
terms and conditions upon which such declaration and its
consequences may be waived;
(12) The rights, liabilities, powers and duties arising upon
the breach by the municipality or redevelopment agency of any
covenants, conditions or obligations;
(13) The appointing of and vesting in a trustee or trustees of
the right to enforce any covenants made to secure or to pay the
bonds; the powers and duties of such trustee or trustees, and the
limitation of their liabilities;
(14) The terms and conditions upon which the holder or holders
of the bonds, or the holders of any proportion or percentage of
them, may enforce any covenants made under ORS 285B.320 to
285B.377;
(15) A procedure by which the terms of any official action
authorizing bonds or of any other contract with bondholders,
including but not limited to an indenture of trust or similar
instrument, may be amended or abrogated, and the amount of bonds
the holders of which may consent thereto, and the manner in which
such consent may be given; and
(16) The subordination of the security of any bonds issued
under ORS 285B.320 to 285B.377 and the payment of principal and
interest thereof, to the extent deemed feasible and desirable by
the state, to other bonds or obligations of the state issued to
finance the eligible project or that may be outstanding when the
bonds thus subordinated are issued and delivered.
SECTION 39. ORS 285B.368 is amended to read:
285B.368. Subject to any contractual limitation binding upon
the holders of any issue of { - revenue - } bonds, or { + any
escrow agent, vendor, lender, other financing party or + }
{ - a - } trustee therefor, including but not limited to the
restriction of the exercise of any remedy to a specified
Enrolled Senate Bill 1128 (SB 1128-B) Page 29
proportion or percentage of such holders, any holder of bonds, or
any trustee therefor, for the equal benefit and protection of all
bondholders similarly situated, may:
(1) By action or proceeding for legal or equitable remedies,
enforce their rights against the state and any of its officers,
agents and employees, and may require and compel the state or any
such officers, agents or employees to perform and carry out its
and their duties and obligations under ORS 285B.320 to 285B.377
and its and their covenants and agreements with bondholders;
(2) By action require the state to account as if it was the
trustee of an express trust;
(3) By action enjoin any acts or things which may be unlawful
or in violation of the right of the bondholders;
(4) Bring action upon the bonds;
(5) Foreclose any mortgage or lien given under the authority of
ORS 285B.320 to 285B.377 and cause the property standing as
security to be sold under any proceedings permitted by law or
equity; and
(6) Exercise any right or remedy conferred by ORS 285B.320 to
285B.377 without exhausting and without regard to any other right
or remedy conferred by ORS 285B.320 to 285B.377 or any other law
of this state, none of which rights and remedies is intended to
be exclusive of any other, and each is cumulative and in addition
to every other right and remedy.
SECTION 40. ORS 285B.371 is amended to read:
285B.371. The state, acting through the State Treasurer and the
Oregon Economic { + and Community + } Development Commission, or
either of them, may loan the proceeds of the bonds authorized by
ORS 285B.320 to 285B.377 for eligible projects without the
necessity of the state having any ownership or leasehold interest
in the eligible projects. Loans made pursuant to this section
shall be secured, if at all, to the extent deemed necessary or
desirable by the State Treasurer and the Oregon Economic { + and
Community + } Development Commission.
SECTION 41. ORS 285B.374 is amended to read:
285B.374. (1) There is created within the State Treasury a
revolving trust fund known as the Oregon Economic { + and
Community + } Development Fund, separate and distinct from the
General Fund. Interest earned by the fund shall be credited to
the fund. Moneys in this fund shall be used in accordance with
agreements made by the state, acting through the State Treasurer
or the State Treasurer's designee, for the benefit of the holders
of bonds issued under ORS 285B.377, but only to pay:
(a) Principal of, interest and redemption premium, if any, on
bonds issued under ORS 285B.377;
(b) Insurance premiums for bonds issued under ORS 285B.377; and
(c) Repayment of any transfers authorized by subsection (4) of
this section.
(2) The following moneys shall be credited to the Oregon
Economic { + and Community + } Development Fund:
(a) Reserve funds established for bonds issued under ORS
285B.377.
(b) Such moneys as may be appropriated to the fund by the
Legislative Assembly.
(c) Payments made in respect of eligible projects under loan
agreements, { + financing agreements, notes, obligations,
indentures, + } leases or subleases { - which - } { +
that + } are dedicated to payments of bond principal, interest
and redemption premium, if any.
(d) Earnings from investment of moneys in the fund.
Enrolled Senate Bill 1128 (SB 1128-B) Page 30
(e) Any grant made to the fund by any federal agency.
(f) Any other moneys required to be placed in the fund pursuant
to any agreement authorized by ORS 271.510, 271.520, 285B.092,
285B.320 to 285B.326, 285B.335, 285B.341, 285B.344, 285B.350,
285B.365, 285B.371 to 285B.377 and 777.250.
(3) There is created a trust account within the Oregon
Economic { + and Community + } Development Fund to be known as
the Economic Development Insurance Account. Fees authorized under
ORS 285B.326 (3)(e) and other moneys required to be placed in the
account pursuant to any agreement authorized by ORS 271.510,
271.520, 285B.092, 285B.320 to 285B.326, 285B.335, 285B.341,
285B.344, 285B.350, 285B.365, 285B.371 to 285B.377 and 777.250
and such other assets as may be required pursuant to ORS 285B.377
(4) and earnings in the account shall be credited to the Economic
Development Insurance Account. Fees authorized under ORS 285B.326
(3)(d) shall be credited to the Economic Development Insurance
Account, unless otherwise required as repayment for transfers
provided for in subsection (4)(b) of this section. Moneys in the
Economic Development Insurance Account shall be used only to
replenish reserves established in the Oregon Economic { + and
Community + } Development Fund or to pay principal and interest
due on bonds authorized under ORS 285B.377 and to pay insurance
premiums for such bonds, in accordance with rules adopted by the
state, acting through the State Treasurer or the State
Treasurer's designee.
(4) If, at any time, there are insufficient moneys in the
Oregon Economic { + and Community + } Development Fund available
for timely payment of the bonds authorized by ORS 285B.377, then
the conditions precedent to a transfer of moneys under ORS
293.210 from the Oregon Business Development Fund to the Oregon
Economic { + and Community + } Development Fund shall be deemed
to be met for:
(a) A transfer of any liquid assets in the Oregon Business
Development Fund which are not then required to meet obligations
against that fund; and
(b) A maximum transfer of $3 million from any other state funds
having excess money, but only under terms for repayment which are
approved by the State Treasurer.
SECTION 42. ORS 285B.377 is amended to read:
285B.377. (1) In addition to bonds authorized by ORS 285B.320
to 285B.377, the state may issue bonds to finance eligible
projects which are secured in part by the assets of the Oregon
Economic { + and Community + } Development Fund, as provided in
this section.
(2) The aggregate principal amount of { - revenue - } bonds
issued pursuant to this section which are outstanding at any time
shall not exceed $20 million.
(3) Bonds issued pursuant to this section shall be secured in
the manner provided in rules adopted by the Oregon Economic { +
and Community + } Development Commission and approved by the
State Treasurer.
(4) The commission may require participants to agree to such
arrangements as it and the State Treasurer deem necessary to
secure the payment of the principal of, and interest on, the
bonds, and redemption premium, if any. Such arrangements may
include, but are not limited to, establishment of a debt service
reserve, creation of a self-insurance program, the purchase of
insurance or other similar devises ensuring the payment of the
principal of, and interest on, the bonds issued pursuant to this
section.
Enrolled Senate Bill 1128 (SB 1128-B) Page 31
(5) Within 30 days following the closing of each fiscal
quarter, the commission shall report on its operations to the
Governor, State Treasurer and the Legislative Assembly. The
report shall include a summary of the activities of the
commission relating to bonds issued under this section.
(6) Notwithstanding the provisions of ORS 285B.365, the state
may pledge to the payment of bonds authorized by this section any
funds or revenues specifically set forth in this section, as well
as any other funds or revenues which may be used for such
purposes under any other provision of state law.
(7) Except to the extent they are inconsistent with the
provisions of this section or the rules adopted under ORS
271.510, 271.520, 285B.092, 285B.320 to 285B.326, 285B.335,
285B.341, 285B.344, 285B.350, 285B.365, 285B.371 to 285B.377 and
777.250, the provisions of ORS 285B.320 to 285B.377 apply to the
bonds issued under ORS 271.510, 271.520, 285B.092, 285B.320 to
285B.326, 285B.335, 285B.341, 285B.344, 285B.350, 285B.365,
285B.371 to 285B.377 and 777.250 and the loans made pursuant to
this section.
SECTION 43. ORS 285B.410 is amended to read:
285B.410. As used in ORS 285B.410 to 285B.479, unless the
context requires otherwise:
(1) 'Municipality' means a city, a county, a port incorporated
under ORS 777.010 and 777.050, the Port of Portland created by
ORS 778.010, a metropolitan service district organized under ORS
chapter 268, a domestic water supply district organized under ORS
chapter 264, a water authority or sanitary authority organized
under ORS 450.600 to 450.989, a water improvement district
organized under ORS chapter 552, a water control district
organized under ORS chapter 553, a sanitary district organized
under ORS 450.005 to 450.245, a county service district organized
under ORS chapter 451 or a tribal council of an Indian tribe in
this state.
(2) 'Infrastructure project' means:
(a) A project for the construction of sewage treatment works,
solid waste disposal sites, water supply works, roads, public
transportation, railroad industrial spurs or sidings or other
facilities that comprise the physical foundation for industrial
and commercial activity. The costs of property acquisition
directly related to the infrastructure project and acquisition of
easements or rights of way necessary to accomplish construction
of the infrastructure project are eligible for assistance under
ORS 285B.410 to 285B.479. The costs of activities related to
performing an environmental evaluation of a brownfield are
eligible for assistance under ORS 285B.416 (2) and 285B.455 (5).
Purchases of off-site property for project-related purposes such
as wetland mitigation or other uses not directly related to the
infrastructure are not eligible for assistance. As used in this
paragraph, 'brownfield' and 'environmental evaluation' have the
meanings given those terms respectively in ORS 285A.185 and
285A.188.
(b) A project, in consultation with the Department of
Transportation and other affected agencies, for the acquisition,
reconstruction or rehabilitation of an abandoned railroad line or
railroad line that has been designated by the owner and operator
thereof as subject to abandonment within a three-year period
pursuant to federal law and regulations governing abandonment of
common carrier railroad lines. The project may include operation
or maintenance costs if the project also includes acquisition,
reconstruction or rehabilitation.
Enrolled Senate Bill 1128 (SB 1128-B) Page 32
(c) A safe drinking water project, in consultation with the
Water Resources Department, the Health Division of the Department
of Human Resources or the Department of Land Conservation and
Development, for improving a drinking water system for the
purpose of achieving or maintaining compliance with applicable
state or federal drinking water quality regulations.
(d) A project for the acquisition, construction or development
of community facilities, including the acquisition of land, the
construction, acquisition, renovation or reconstruction of
buildings, structures and other real property and the acquisition
or construction of related equipment and fixtures. { - As used
in this paragraph, - } 'Community facilities' includes
facilities that { - provide educational, commercial,
recreational, cultural, social or similar services to the public,
and that - } are owned by a municipality and are operated by
either the municipality or a person under a management contract
or operating agreement with the municipality.
(3) 'Public transportation' includes public depots, public
parking, public docks, public wharves, railroads and airport
facilities.
(4) 'Roads' includes:
(a) Ways described as streets, highways, throughways or alleys;
(b) Road related structures that are in the right of way such
as tunnels, culverts or similar structures; and
(c) Structures that provide for continuity of the right of way
such as bridges.
(5) 'Sewage treatment works' includes all facilities necessary
for collecting, pumping, treating and disposing of sanitary or
storm sewage.
(6) 'Solid waste disposal site' has the meaning given to the
term 'disposal site' by ORS 459.005.
(7) 'Water supply works' includes all facilities necessary for
tapping natural sources of domestic and industrial water,
treating and protecting the quality of the water and transmitting
it to the point of sale to any public or private agency for
domestic, municipal and industrial water supply service.
(8) 'Urban infrastructure projects' includes all those projects
located in whole or in part within the acknowledged Portland
Metropolitan Area Regional Urban Growth Boundary, and the
acknowledged urban growth boundaries of the cities of Eugene,
Springfield, Salem, Keizer or Medford or projects that will
principally benefit these areas. The Director of the
Economic { + and Community + } Development Department is
authorized to resolve situations left in question by this
definition.
(9) 'Nonurban infrastructure projects' includes all those
projects which do not meet the definition of urban infrastructure
projects.
SECTION 44. ORS 285B.422 is amended to read:
285B.422. (1) The Economic { + and Community + } Development
Department may provide financial assistance to municipalities for
infrastructure projects that are community facilities projects as
described in ORS 285B.410 (2)(d).
(2) Before providing financial assistance for a community
facilities project, the Economic { + and Community + }
Development Department must find that:
(a) The municipality has demonstrated that the community
facilities project will provide long term benefits to the
municipality;
Enrolled Senate Bill 1128 (SB 1128-B) Page 33
(b) The community facilities project will benefit a broad
cross-section of the municipality;
(c) There is a substantial local commitment to the community
facilities to be financed; and
(d) There is a need for the proposed community facilities
project, and the municipality's financial resources are adequate
to provide the working capital needed to ensure success of the
project.
(3) Notwithstanding any other provision of ORS 285B.410 to
285B.479, community facilities projects shall be eligible only
for loans made with moneys derived from the sale of revenue bonds
issued under ORS 285B.467 { + or for loans made from the Special
Public Works Fund + }. { + No grants shall be made from the
Special Public Works Fund for the costs of a community facilities
project. Loans or grants from the Special Public Works Fund and
loans from the proceeds of revenue bonds issued under ORS
285B.467 may be used to pay issuance costs and for the funding of
any debt service reserve for any revenue bonds issued under ORS
285B.467 to finance community facilities. + }
(4) ORS 285B.413 { + (1) and (2) + }, { - 285B.416, - }
285B.419 (1), 285B.434 (2), (4) { - , - } { + and + } (5)
{ - and (8), 285B.440, 285B.452, 285B.455 (5) - } , 285B.464 and
285B.467 (2) and (8) do not apply to a municipality applying for
financial assistance for a community facilities project.
SECTION 45. 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 fund are continuously appropriated to the Economic
{ + and Community + } Development Department to provide
financing for water projects.
(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 such charges, the per capita
income of the municipality and such 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.
{ - (e) The amount of grants made under ORS 285B.560 to
285B.599 shall not exceed 50 percent of the moneys allocated to
the fund from proceeds of the Oregon State Lottery. - }
(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.
Enrolled Senate Bill 1128 (SB 1128-B) Page 34
The earnings from such 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 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 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 Health Division of the Department of
Human Resources. The rules adopted under this subsection for safe
drinking water projects shall:
(a) Require the installation of meters on all new service
connections to 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 value
shall be equal to at least 50 percent of lottery revenues
actually transferred to the fund plus interest on such amounts
compounded annually at five percent. The fund value shall be
determined by adding the cash reserves and the outstanding
principal amount of loans to municipalities. Any amount of loan
principal that is forgiven shall be subtracted from the value of
the fund. The value of the fund shall include moneys in the fund
that are pledged to the repayment of state bonds.
(b) The department shall certify to the State Treasurer in each
quarter the value of the fund.
(c) If necessary to ensure repayment of bonds issued under ORS
285B.560 to 285B.599, the department may reduce the value of the
fund to less than the limit established in paragraph (a) of this
subsection when the department:
(A) Finds that without such 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. + }
{ - (8) - } { + (9) + }(a) The department may charge
administrative costs to the fund, but not to moneys segregated in
the account created by subsection { - (10) - } { + (11) + }
of this section, to pay for administrative expenses incurred by
the department for processing applications, investigating water
projects, monitoring recipients of financing for water projects
and servicing and collecting outstanding financial awards made
for water projects.
Enrolled Senate Bill 1128 (SB 1128-B) Page 35
(b) To the extent permitted by federal law, administrative
expenses of the department as limited in paragraph (a) of this
subsection that are paid from the fund shall not exceed four
percent of the moneys allocated to the fund in any biennium.
Administrative expenses of the department as limited in paragraph
(a) of this subsection may be paid from bond proceeds.
{ - (9) - } { + (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 and operating
expenses or any other purpose necessary to carry out ORS 285B.560
to 285B.599.
{ - (10) - } { + (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 { - (9) - } { + (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 such moneys, shall be credited
to the Water Development Administration and Bond Sinking Fund
created by ORS 541.830.
SECTION 46. ORS 541.700 is amended to read:
541.700. As used in ORS 541.700 to 541.855, unless the context
requires otherwise:
(1) 'Commission' means the Water Resources Commission appointed
under ORS 536.022.
(2) 'Construction' means the construction, or improvement or
rehabilitation, in whole or in part, of a water development
project, including planning and engineering work directly related
to such construction or improvement or rehabilitation, or any
combination of such construction or improvement or
rehabilitation.
(3) 'Director' means the Water Resources Director appointed
pursuant to ORS 536.032.
(4) 'Federal water development project' means a project that
meets the requirements of the Watershed Protection and Flood
Prevention Act (68 Stat. 666), as amended, or the Small
Reclamation Projects Act of 1956 (70 Stat. 1044), as amended.
(5)(a) 'Secondary use' means:
(A) Any water-related recreational use.
(B) Any wildlife or natural resource conservation use.
(C) Municipal and industrial water uses with a water
development project as the source.
(D) Water quality enhancement directly related to the
development of a new water development project.
(E) Any flood control use.
(F) Any power generation use.
(G) Any water supply system utilized for the purpose of
agricultural temperature control.
(H) Any water supply system utilized for the maintenance of
livestock.
(I) Any water supply system utilized as a domestic water system
for the benefit of an individual residence related to the
operation of the water development project.
Enrolled Senate Bill 1128 (SB 1128-B) Page 36
(b) 'Secondary use' does not include any use that is
incompatible with a water development project.
(6) 'Water development project' means:
(a) An undertaking, in whole or in part, in this state for the
purpose of irrigation, including dams, storage reservoirs, wells
or well systems, pumping plants, pipelines, canals, ditches,
revetments and any other structure, facility and property
necessary or convenient for supplying lands with water for
irrigation purposes.
(b) An undertaking, in whole or in part, in this state for the
purpose of drainage, including ditching, tiling, piping, channel
improvement, pumping plants or other agronomically approved
methods of land drainage that will increase soil versatility and
productivity.
(c) An undertaking, in whole or in part, in this state for the
purpose of providing water for municipal use, which may include
safe drinking water for communities with population less than
30,000, including dams, storage reservoirs, wells or well
systems, pumping plants, treatment facilities, pipelines, canals,
ditches, revetments and all other structures and facilities
necessary or convenient for supplying water. An undertaking may
provide water to two or more communities with a combined
population of more than 30,000. An undertaking may be part of a
project that provides water to a community with a population of
more than 30,000, but loans of moneys from the Water Development
Fund, including moneys in ORS 285B.563 { - (10) - }
{ + (11) + } may be made only to communities served by the
project that have a population of less than 30,000.
(d) An undertaking, in whole or in part, in this state for the
purpose of fish protection, including fish screening or by-pass
devices, fishways and all other structures and facilities
necessary or convenient for providing fish protection.
(e) An undertaking, in whole or in part, in this state for the
purpose of watershed enhancement including methods and materials
to restore, maintain and enhance the biological, chemical and
physical integrity of the riparian zones and associated uplands
of the state's rivers, lakes and estuaries systems and
recommended by the Governor's Watershed Enhancement Board
established under ORS 541.360.
(f) Secondary uses in conjunction with projects described in
paragraphs (a) to (e) of this subsection.
(7) 'Water developer' means:
(a) Any individual resident of this state;
(b) Any partnership for profit subject to the provisions of ORS
chapter 67, 68 or 70, whose principal income is from farming in
Oregon;
(c) Any corporation for profit subject to the provisions of ORS
chapter 60, whose principal income is from farming in Oregon;
(d) Any nonprofit corporation subject to the provisions of ORS
chapter 65, whose principal income is from farming in Oregon;
(e) Any cooperative subject to the provisions of ORS chapter
62, whose principal income is from farming in Oregon;
(f) Any irrigation district organized under or subject to ORS
chapter 545;
(g) Any water improvement district organized under ORS chapter
552;
(h) Any water control district organized under ORS chapter 553;
(i) Any irrigation or drainage corporation organized under or
subject to ORS chapter 554;
Enrolled Senate Bill 1128 (SB 1128-B) Page 37
(j) Any drainage district organized under ORS chapter 547 or
subject to all or part of ORS chapter 545;
(k) Any corporation, cooperative, company or other association
formed prior to 1917 for the purpose of distributing water for
irrigation purposes;
(L) Any port district organized under ORS 777.005 to 777.725,
777.915 to 777.953 and 777.990;
(m) Any city or county;
(n) Any organization formed for the purpose of distributing
water for community water supply; or
(o) Any local soil and water conservation district organized
under ORS 568.210 to 568.808 and 568.900 to 568.933.
SECTION 47. ORS 285B.230 is amended to read:
285B.230. As used in ORS 285B.230 to 285B.251 and 285B.269,
unless the context requires otherwise:
{ - (1) 'Key industry' has the meaning given that term in ORS
285B.280. - }
{ - (2) - } { + (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 plan. + }
(3) 'Regional { - strategy - } { + investment plan + } ' is
a { - six-year - } { + long-term + } economic { + and
community + } development plan, updated each biennium, { - to
build or enlarge key industries that are recommended by the
region and its citizens. A regional strategy shall consider the
needs of industry, the region's workforce and the economic and
community development priorities of the region, including rural
communities - } { + that focuses on the economic and community
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;
(c) Ensuring that economic strategies reinforce Oregon's
long-term prosperity and livability; and
(d) Coordinating efforts of economic and community development,
education, workforce development, natural resource management and
other civic activities + }.
{ + (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 and the Department of Environmental Quality to
provide a forum for coordination of economic and community
development planning and investments so that strategies and
processes for economic and community development are leveraged to
the greatest extent possible to meet agreed-upon priority issues,
challenges and goals. + }
Enrolled Senate Bill 1128 (SB 1128-B) Page 38
SECTION 48. ORS 285B.233 is amended to read:
285B.233. (1) The Legislative Assembly finds that regional
{ - strategies - } { + investment plans + } are { - key - }
{ + essential + } to the state's economic
{ - revitalization - } { + and community development goals + }
and that to be effective regional { - strategies - } { +
investment plans + } must have the coordinated support of
available resources.
(2) The Legislative Assembly declares that the purpose of ORS
285B.230 to 285B.251 and 285B.269 is:
(a) To encourage the development of { - strategies - } { +
regional investment plans + } that address the economic
{ - problems - } { + and community development priorities + }
of each region of the state;
(b) To { - encourage the coordination of regional strategies
with the statewide key industries program - } { + identify and
coordinate regional economic and community development
priorities + };
{ + (c) To ensure that economic and community development
plans reinforce the long-term prosperity and livability of
Oregon; + }
{ - (c) - } { + (d) + } To effectively utilize available
resources through a regional { - strategies - } { +
investment + } program; and
{ - (d) - } { + (e) + } To coordinate private and public
resources to support economic { + and community + } development.
SECTION 49. ORS 285B.236 is amended to read:
285B.236. (1) The Economic { + and Community + } Development
Department, by rule, shall adopt { - standards - } { +
guidelines + } for { + submission of + } regional
{ - economic development strategies - } { + investment plans
and distribution of funds + }.
(2) The { - standards - } { + guidelines + } shall provide
that the
{ - strategies - } { + regional investment plans + } are
approved in accordance with criteria reflecting the economic { +
and community + } benefits to the state. Each { - strategy - }
{ + regional investment plan + } must at a minimum set forth in
measurable terms the extent to which the
{ - strategy will retain, increase or lead to an increase in
the number of family wage jobs in this state - } { + plan will
accomplish the economic and community 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. A region shall consist of at least
two contiguous counties. { - However, the boundaries of a
region established by the department shall not be changed for the
duration of the regional strategy developed for the region under
ORS 285B.242 or prior to July 1, 1999 - } { + 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
{ - economy and to select its strategy accordingly - } { +
economic and community development needs + }.
{ - (5) The department shall notify the Housing and Community
Services Department of any proposed regional strategy with a
related workforce increase at the time the department receives
Enrolled Senate Bill 1128 (SB 1128-B) Page 39
the region's completed regional strategy proposal under ORS
285B.239. - }
{ - (6) All regions of this state shall be eligible to
participate in the program operated under ORS 285B.230 to
285B.251 and 285B.269. - }
SECTION 50. ORS 285B.239 is amended to read:
285B.239. Regional { - economic development strategies - }
{ + investment plans + } shall serve as a basis for state
financial assistance to projects to { - aid a regional
economy - } { + meet regional economic and community
development priorities + }. Each group of counties that form a
region shall submit a regional { - strategy which - } { +
investment plan that + } at a minimum shall include the following
elements:
(1) An identification of { - the key industries that the
region is seeking to stimulate with its regional strategy - }
{ + short-term and long-term regional economic and community
development priorities + };
(2) An analysis of the unique or significant resources that
provide the foundation for the { - strategy - } { + regional
investment plan + };
(3) An analysis of barriers to { - development - } { +
implementation + } of the { - selected key industries in the
region - } { + regional investment plan + } and an
identification of the means to overcome those barriers;
(4) A long-term { - action - } plan { - extending over a
period of 6 to 10 years - } to implement the regional
{ - strategy - } { + investment plan + }, including
{ + necessary + } actions by:
(a) Local governments;
(b) The private sector;
(c) State government; and
(d) Federal Government;
(5) A two-year { - action - } { + implementation + } plan
with a prioritized list of { + projects and + } activities to be
undertaken or funded by the state from lottery proceeds and other
sources;
(6) A plan for involvement of disadvantaged and minority groups
in the { - regional strategies and an identification of job
training and employment practices to benefit the economically
disadvantaged including but not limited to, affirmative action
goals - } { + region + };
(7) Performance measurements for meeting the objective set
forth in ORS 285B.236 (2). Each region shall develop an
evaluation plan, as part of its { - strategy document - } { +
regional investment plan + }, for measuring and monitoring
{ - strategy - } { + regional investment plan + } performance.
{ - As a minimum requirement, - } The evaluation plan shall
include { - a method and time schedule - } { + regional
benchmarks + } for monitoring achievement of the { - long-term
goals and objectives and the two-year action plan of the region.
The plan shall also include criteria for measuring long-term and
short-term economic effects - } { + regional investment plans
and priorities. When regional benchmarks are established, interim
indicators of performance shall be determined after negotiation
between the regional board and the Oregon Economic and Community
Development Commission. The regional board shall periodically
submit performance reports to the county governing bodies in the
region, the Oregon Economic and Community Development Commission,
the Governor and the Legislative Assembly + }; and
Enrolled Senate Bill 1128 (SB 1128-B) Page 40
(8) An overall strategy management and project implementation
plan that demonstrates that a region has the capacity to allocate
resources and insures that such resources are effectively used.
SECTION 51. 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
{ - strategy - } { + investment plan + } as provided in ORS
285B.239. The governing body of a county shall designate a
regional { - strategy - } board to develop the { - strategy
recommendation - } { + regional investment plan + }. The
regional { - strategy - } board shall consist of individuals
{ - selected from the general public. A majority of the members
of the regional strategy board shall be individuals who primarily
represent the private economic sector - } { + who represent
various local interests including cities, counties, ports,
special districts and Indian tribes and significant
representation from the private economic sector + }. The regional
{ - strategy - } board shall include members who are
representatives of rural interests, including local government.
(2) The regional { - strategy - } board shall be responsible
for developing the regional { - strategy - } { + investment
plan + } for the
{ - county - } { + region + }.
(3) The regional { - strategy - } 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 the
regional
{ - strategy - } { + investment plan + } described in ORS
285B.239.
(4) In developing the list provided for in ORS 285B.239 (5), a
regional { - strategy - } board shall consult with { - firms
in the - } industries { - targeted by the strategy - } ,
cities, ports, special districts, regional workforce committees
and federally recognized Oregon Indian tribes located in the
region.
(5) { - Regions shall select a strategy and submit
recommendations for the strategy - } { + A region shall submit
the regional investment plan + } 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 { - strategy
requests - } { + regional investment plans + } and
{ - assure - } { + ensure + } compliance with the requirements
of ORS 285B.230 to 285B.251 and 285B.269. The Oregon Economic
{ + and Community + } Development Commission shall make
recommendations on approval of the { - strategy - } { +
plan + } to the Governor for final approval or shall return the
{ - strategy - } { + plan + } to the regional
{ - strategy - } board for further modification.
(6) { - Regions that fail to submit regional strategies to
the department within 11 months after the beginning of the
biennium and do not receive final approval of those strategies
within 15 months after the beginning of the biennium may not
continue to participate in the regional strategies program
established by ORS 285B.230 to 285B.251 and 285B.269 or receive
moneys from the Regional Strategies Fund for the program for that
biennium. The department shall reallocate any moneys designated
for regions that fail to meet the deadlines to regions remaining
in the regional strategies program - } { + The Economic and
Community Development Department shall be responsible for
Enrolled Senate Bill 1128 (SB 1128-B) Page 41
identifying common issues among regions, developing statewide
strategies and organizing opportunities for regions to address
them + }.
(7) After a regional { - strategy - } { + investment
plan + } is developed by a regional { - strategy - } board,
adopted by the governing bodies of the counties and approved by
the Governor, the regional { - strategy - } board, in each
biennium, shall { - refine - } { + update + } the
{ - strategy - } { + plan + } and recommend a two-year
{ - action - } { + implementation + } plan { - to implement
the strategy during that biennium - } . The { - action - }
{ + implementation + } plan shall be adopted by the governing
bodies of the counties { + after input from the cities, ports,
special districts, Indian tribes, private economic sector and
other parties in the region + }, { + shall be + } reviewed by
the Oregon Economic { + and Community + } Development
Commission and must be approved by the Governor before taking
effect.
(8) { - A regional strategy shall not be approved by the
Oregon Economic Development Commission or by the Governor unless
those portions of the strategy relating to key industries are
submitted to a statewide organization representing the affected
key industries for its review and comment. For the purposes of
this subsection, the Economic Development Department shall
determine which statewide organizations represent the affected
key industries. If the department determines that no statewide
organization exists, the provisions of this subsection shall not
apply to the relevant portions of a regional strategy - } { +
The Governor may delegate responsibility for review and approval
of a regional investment plan to a regional partnership + }.
SECTION 52. ORS 285B.245 is amended to read:
285B.245. (1) After considering the recommendations submitted,
the Governor may adopt a proposed regional { - strategy - }
{ + investment plan + } or return the { - strategy - } { +
plan + } to the affected counties for modification.
(2) The Economic { + and Community + } Development Department
shall coordinate adopted regional { - strategies - } { +
investment plans + } with existing state and local economic
development efforts to support a state strategy for economic
development. Regions using regional
{ - strategies - } { + 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 { - insure - } { +
ensure + } coordination among statewide marketing efforts and
regional tourism and industrial marketing projects funded through
the regional { - strategies - } { + investment + } program
established under ORS 285B.230 to 285B.251 and 285B.269.
(3) The department shall discourage competition among regions
for existing Oregon businesses and economic activity.
SECTION 53. ORS 285B.248 is amended to read:
285B.248. In carrying out the provisions of ORS 285B.230 to
285B.251 and 285B.269, the Economic { + and Community + }
Development Department shall work to { - assure - } { +
ensure + } that all counties are included in a region with an
adopted { - strategy - } { + regional investment plan + } and
that each regional { - strategy - } { + investment plan + }
is approved for implementation.
SECTION 54. ORS 285B.254 is amended to read:
Enrolled Senate Bill 1128 (SB 1128-B) Page 42
285B.254. (1) There is created a Rural 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 Rural Investment Fund. The Rural 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. The
moneys in the fund are continuously appropriated to the Economic
{ + and Community + } Development Department to be used to
promote economic and community development in rural communities.
(2) The department may use moneys in the Rural Investment Fund
to pay for the administrative expenses of operating the economic
development programs under ORS 285B.257.
(3) After consulting with regional { - strategy - } 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 Rural Investment
Fund.
SECTION 55. ORS 285B.257 is amended to read:
285B.257. (1) Moneys in the Rural Investment Fund shall be
distributed to regional { - strategy - } boards designated
under ORS 285B.242 for economic development programs and projects
designed to benefit rural communities.
(2) Each regional { - strategy - } board shall update the
regional
{ - economic development strategy - } { + investment plan + }
prepared under ORS 285B.239 to include a rural action plan
consistent with the purpose and objectives of the Rural
Investment Fund. A rural action plan must be { - approved - }
{ + reviewed + } by the Oregon Economic { + and Community + }
Development Commission { + and approved by the Governor + }
before any moneys from the Rural Investment Fund may be
distributed for implementing any program or project described in
the rural action plan. Moneys from the Rural Investment Fund
shall not be used to retire any debt or pay for expenditures made
or expenses incurred prior to the approval of a rural action
plan.
(3) In each biennium, a regional { - strategy - } board may
dedicate a portion of the moneys distributed to the board from
the Rural Investment Fund for technical assistance and staff
support for updating the rural action plan and for developing
programs and projects under the rural action plan. The regional
{ - strategy - } board shall determine the amount of moneys
dedicated to such purposes. Notwithstanding subsection (2) of
this section, the Economic { + and Community + } Development
Department may distribute moneys from the Rural Investment Fund
for technical assistance and staff support prior to approval of
the rural action plan.
(4) In each biennium, each regional { - strategy - } board
shall submit a report on the expenditure of moneys received under
this section and shall indicate the success of the programs and
projects financed with moneys from the Rural Investment Fund. The
success of programs and projects shall be defined by specific
performance measurements developed by the regional
{ - strategy - } board. The report required by this subsection
shall be made part of the biennial report submitted to the
Governor and the Legislative Assembly under ORS 285B.263.
(5) Moneys from the Rural Investment Fund shall not be used to
substitute for local government expenditures for existing and
Enrolled Senate Bill 1128 (SB 1128-B) Page 43
continuing public services. The Economic { + and Community + }
Development Department shall adopt rules to carry out the
provisions of this subsection.
SECTION 56. ORS 285B.260 is amended to read:
285B.260. (1) There is created a Regional { - Strategies - }
{ + 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 { - Strategies - } { +
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
{ - Strategies - } { + Investment + } Fund to pay for the
administrative expenses of operating the regional
{ - strategies - } { + investment + } program under ORS
285B.230 to 285B.251 and 285B.269.
(3) The fund shall not be used to retire any debt or to
reimburse any person or municipality for expenditures made or
expenses incurred prior to the adoption of a regional
{ - strategy - } { + investment plan + }.
SECTION 57. 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) Not less than 75 percent of the moneys in the
Regional Strategies Fund as regional guideline funds for: - }
{ - (A) - } { + (a) + } Technical assistance and staff
support for
{ - regional strategy development - } { + preparation and
update of regional investment plans + }; { - and - }
{ - (B) - } { + (b) + } Projects { + and activities + }
implementing an approved regional { - strategy - } { +
investment plan and implementing priorities described in the
plan; and
(c) Personnel necessary to administer the plans and
projects + }.
{ - (b) - } { + (2) + } { - not more than 25 percent of
the moneys in the Regional Strategies Fund - } { + 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, either centrally or to regional
boards or both, + } for multiregion projects
{ - selected by the Governor - } that implement the approved
regional
{ - strategies - } { + investment plans + } of two or more
regions { + with common economic and community development
priorities + }. Funding for multiregion projects under this
{ - paragraph - } { + subsection + } shall be awarded, at the
discretion of the { - Governor - } { + commission + },
according to the quality of the defined projects.
{ - Multiregion projects that receive funding under this
paragraph must support the development of the key industries
included in the regional strategies for the regions. - }
{ - (2) - } { + (3) + } In each biennium, a regional
{ - strategy - } board may dedicate a portion of regional
{ - guideline - } { + investment + } funds for technical
assistance and staff support for regional { - strategy - }
Enrolled Senate Bill 1128 (SB 1128-B) Page 44
{ + investment plan + } development and refinement { + and
development and administration of regional partnerships + }. The
portion of funds so dedicated shall be determined by the
{ - department - } { + commission + }. The
{ - department - } { + commission + } shall provide regional
{ - strategy - } boards with these funds prior to
{ - strategy - } approval { + of regional investment
plans + }.
{ - (3) - } { + (4) + } In each biennium, a regional
{ - strategy - } board may dedicate a portion of regional
{ - guideline - } { + 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 { - strategy - } { +
investment plan + } and that support the { - development of the
key industries - } { + regional priorities + } included in the
regional { - strategy - } { + investment plan + }. The terms
and conditions of grants or loans to be made under this
subsection must be contained in the regional { - strategy - }
{ + investment plan + } at the time it is submitted for state
review.
{ - (4) - } { + (5) + } After a regional { - strategy - }
{ + investment plan + } is adopted, the department in each
calendar quarter shall provide regional { - guideline - } { +
investment + } funds, less any moneys used for technical
assistance and staff support for { - strategy - } { +
regional investment plan + } development, to the region. Moneys
received under this subsection shall be used for development of
projects based upon an evaluation by the regional
{ - strategy - } board of the merit and readiness of the
projects. Projects that receive such financial assistance must be
consistent with the { + priorities of the + } approved regional
{ - strategy - } { + investment plan + }.
{ - (5) - } { + (6) + } In each biennium, each regional
{ - strategy - } board shall submit a report to the Governor
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 in achieving the regional { - strategy goals - } { +
economic and community development priorities + } described in
ORS 285B.236 (2). Future grants to a regional { - strategy - }
board { - shall - } { + may + } be based on the performance
of the board.
SECTION 58. ORS 285A.486 is amended to read:
285A.486. (1) Rural communities participating in the rural
revitalization program established by ORS 285A.480 to 285A.495
shall be provided with technical assistance to:
(a) Assess their economic strengths, weaknesses, opportunities
and threats;
(b) Develop short term and long term strategic plans based on
the assessment;
(c) Assist the communities in developing organizational
structures and other activities needed to implement and sustain
their strategic plans; and
(d) Resolve problems that may arise in communities as they work
to implement their strategic development plans.
(2) The program of leadership training carried on under ORS
285A.480 to 285A.495 shall develop the skills of individuals
enrolled in the program by:
Enrolled Senate Bill 1128 (SB 1128-B) Page 45
(a) Exposing program participants to a broad range of regional,
national and international issues affecting rural areas.
(b) Teaching participants about effective management
techniques, group problem solving methods and consensus building
processes.
(c) Providing participants with training to improve their
technical and analytical skills.
(d) Educating participants about the functions of local, state
and national governments and the state legislative process.
(e) Teaching participants about the elements of effective
leadership.
(f) Providing participants with opportunities to apply
leadership skills to community development work.
(3) The Economic { + and Community + } Development Department
shall insure that the community development and leadership
training efforts carried out under the rural revitalization
program are coordinated with existing state and local community
development and leadership training programs in a manner that
contributes to the quality and effectiveness of the programs
established by ORS 285A.480 to 285A.495, maximizes the use of
available resources and expands development and training
opportunities for communities and rural residents. The department
shall coordinate programs under ORS 285A.480 to 285A.495 with
other programs including, but not limited to, federal programs,
the regional { - strategies - } { + investment + } program
established under ORS 285B.230 to 285B.269, the special public
works program established under ORS 285B.464 and 285B.410 to
285B.479, state workforce and job training programs, programs
offered by the Oregon State University Extension Service and
leadership training programs offered by local chambers of
commerce.
SECTION 59. { + The amendments to ORS 285B.242, 285B.260 and
285B.263 by sections 51, 56 and 57 of this 1999 Act change the
name of the Regional Strategies Fund to the Regional Investment
Fund. For purposes of the laws of this state and the rules of
state agencies, the Regional Investment Fund is a continuation of
the Regional Strategies Fund and not a new fund. + }
SECTION 60. { + (1) The amendments to ORS 285A.040 by section
3 of this 1999 Act are intended to change the name of the Oregon
Economic Development Commission to the Oregon Economic and
Community Development Commission.
(2) The amendments to ORS 285A.070 by section 7 of this 1999
Act are intended to change the name of the Economic Development
Department to the Economic and Community Development Department.
(3) The amendments to ORS 285A.085 by section 8 of this 1999
Act are intended to change the name of the Director of the
Economic Development Department to the Director of the Economic
and Community Development Department.
(4) For the purpose of harmonizing and clarifying statute
sections published in Oregon Revised Statutes, the Legislative
Counsel may substitute for words designating the Oregon Economic
Development Commission, the Economic Development Department and
the Director of the Economic Development Department, wherever
they occur in Oregon Revised Statutes, words designating the
Oregon Economic and Community Development Commission, the
Economic and Community Development Department and the Director of
the Economic and Community Development Department
respectively. + }
SECTION 61. { + ORS 285A.115, 285A.212, 285A.215, 285A.218,
285A.221, 285A.360, 285A.363, 285A.366, 285A.369, 285A.380,
Enrolled Senate Bill 1128 (SB 1128-B) Page 46
285A.383, 285A.386, 285A.389, 285A.392, 285A.415, 285A.418,
285A.480, 285A.492, 285A.535, 285A.538, 285A.541, 285A.544,
285A.547, 285A.550, 285A.621, 285A.636, 285A.639, 285A.642,
285A.645, 285A.648, 285A.651, 285A.663, 285A.714, 285A.717,
285A.720, 285A.723, 285A.726, 285A.729, 285B.156, 285B.177,
285B.180, 285B.251, 285B.289, 285B.292, 285B.295 and 285B.298 are
repealed. + }
SECTION 62. { + This 1999 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 1999 Act takes effect on
July 1, 1999. + }
----------
Passed by Senate April 27, 1999
Repassed by Senate June 21, 1999
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House May 26, 1999
...........................................................
Speaker of House
Enrolled Senate Bill 1128 (SB 1128-B) Page 47
Received by Governor:
......M.,............., 1999
Approved:
......M.,............., 1999
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 1999
...........................................................
Secretary of State
Enrolled Senate Bill 1128 (SB 1128-B) Page 48