70th OREGON LEGISLATIVE ASSEMBLY--1999 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 944
Senate Bill 1128
Sponsored by COMMITTEE ON TRADE AND ECONOMIC DEVELOPMENT
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Revises laws relating to economic development.
Changes names of Oregon Economic Development Commission and
Economic Development Department to Oregon Economic and Community
Development Commission and Economic and Community Development
Department respectively.
A BILL FOR 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.418, 285A.483, 285A.489, 285B.230,
285B.233, 285B.239, 285B.242, 285B.263, 285B.266, 285B.286,
285B.383, 285B.389 and 285B.419; and repealing ORS 285A.115,
285A.212, 285A.215, 285A.218, 285A.221, 285A.380, 285A.383,
285A.386, 285A.389, 285A.392, 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.
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.
(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. - }
{ - (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 { + traded sector + } 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:
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 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.
(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 { +
in those regions 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 { + , the Housing and
Community Services Department, the Department of Transportation,
the Department of Environmental Quality, the Department of Land
Conservation and Development, the Employment Department and the
policy-making commissions of those departments, where applicable,
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:
(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.
(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) Determine that the action is cost effective, considering
both major public expenses and major public benefits;
(b) 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) Determine that the action is the best use of the moneys
involved, considering other pending applications for those
moneys;
(d) Find that the project involved is consistent with the
Economic { + and Community + } Development Department's
comprehensive policy and programs;
(e) Find that the project involved is consistent with all
applicable adopted local economic { + and community + }
development plans; and
(f) 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: - }
{ - (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. - }
{ + (2) The commission may delegate the function of making
the findings and determinations under subsection (1) of this
section to the Director of the Economic and Community Development
Department or designee of the director. + }
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
{ - 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) 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) 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) 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
(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 { + those areas of + } the state { + 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:
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 - } { + Block Grant + }
Bank Fund established by ORS 285A.306;
(c) The Oregon Business Development Fund created by ORS
285B.092;
(d) The Oregon Economic 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
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 - } { + Block Grant + } 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 - } { + Block Grant + } Bank Fund. All moneys in
the fund are continuously appropriated to provide financing for
community development projects.
(2) Moneys in the { - Community Development - } { + Block
Grant + } 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 - } { + Block Grant + } Bank Fund.
(3) The { - Community Development - } { + Block Grant + }
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.
(d) Repayment of loans to municipalities made under the Oregon
Community Development 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) 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 - } { + Block Grant + } 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 - } { + Block Grant + } 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 manufacturing 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 opportunities and
family wage jobs for Oregonians.
{ - (b) - } { + (c) + } 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) - } { + (d) + } 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) - } { + (e) + } 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
discouraged from using them and that programs that provide
services for which there is great demand obtain additional
resources from program revenues.
{ + (f) Community-based lending programs are particularly
well suited to meeting the needs of small businesses that are
unable to obtain from private financial institutions the capital
that is necessary for expansion.
(g) An effective partnership between state and local economic
development programs is essential to promoting the development of
small businesses in this state. + }
(2) The Legislative Assembly therefore declares that it is the
policy of this state { + and the purpose of ORS 285A.340 to
285A.349, 285B.074 and 285B.156 to 285B.162 + }:
(a) 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) 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) 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 + }
{ + (d) To provide support for local development
organizations that encourage and assist the development and
expansion of small businesses in Oregon + }.
SECTION 17. ORS 285A.418 is amended to read:
285A.418. (1) The Economic { + and Community + } Development
Department { - shall - } { + may + } contract for the
operation of an Oregon Marketplace designed to { - enhance
family wage jobs, - } create new jobs and retain { + and
enhance + } existing jobs by taking advantage of new in-state,
national and international business opportunities. The Oregon
Marketplace shall assist Oregon businesses to meet purchasing
needs for goods and services competitively with Oregon suppliers.
(2) The Oregon Marketplace shall consist of local network
offices under contract to the Economic { + and Community + }
Development Department.
(3) In performing the duties described in this section and ORS
285A.415, the Oregon Marketplace shall:
(a) Contact businesses to identify goods and services Oregon
businesses could supply and items businesses plan to buy in the
future and determine which of these goods and services could be
purchased on competitive terms within the state;
(b) Respond to inquiries from businesses interested in
purchasing goods and services from Oregon businesses;
(c) Determine, with the consent of a business, goods and
services on which the business is willing to take contract
agreements;
(d) Advertise market opportunities described in paragraph (c)
of this subsection;
(e) Receive bid responses from potential suppliers, compile
them according to criteria agreed upon in advance with a
prospective purchasing business and send them to that business
for final selection;
(f) Facilitate contract agreements between purchasers and
Oregon suppliers;
(g) Handle media and public relations to explain and promote
the Oregon Marketplace; and
(h) When feasible, charge service fees for businesses that
participate in the program.
{ - (4) To carry out the duties described in this section and
ORS 285A.415, the Economic Development Department shall contract
for planning, coordinating and implementing Oregon Marketplace
offices to establish and operate the Oregon Marketplace program.
The department shall assure that either the department or the
contractor shall: - }
{ - (a) Provide funding for Oregon Marketplace local
offices; - }
{ - (b) Prepare promotional materials or conduct seminars to
inform communities and organizations about the Oregon
Marketplace; - }
{ - (c) Provide technical assistance to communities and
organizations interested in developing local access to the Oregon
Marketplace; - }
{ - (d) Develop standardized procedures for operating Oregon
Marketplace offices; - }
{ - (e) Train staff; - }
{ - (f) Provide continuing management and technical
assistance; - }
{ - (g) Annually produce a report describing the activities,
outcomes and accomplishments of the Oregon Marketplace and submit
the report to the Joint Legislative Committee on Trade and
Economic Development and to the Emergency Board; and - }
{ - (h) Establish goals for Oregon Marketplace offices that
represent commitment to the state economy. - }
{ - (5) The report required under subsection (4)(g) of this
section shall include the contractor's procedures for assessing
and collecting fees from participating businesses for the
services it provides, the amount of such fees assessed and the
amount of such fees actually collected. - }
{ - (6) - } { + (4) + } In carrying out this section and
ORS 285A.415, the Oregon Marketplace and the Economic { + and
Community + } Development Department shall cooperate and
coordinate their activities with each other and local economic
development agencies to the maximum extent possible.
{ - (7) - } { + (5) + } All state agencies shall cooperate
fully with the Oregon Marketplace to provide information and
technical assistance necessary for program operation.
{ - (8) - } { + (6) + } As used in this section, 'market
opportunity ' means an advertisement for a good or service to all
interested Oregon businesses so that these businesses can compete
on the contract in open bidding.
SECTION 18. 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
(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 19. 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 - } { + may contract with + } a private, nonprofit
corporation to carry out the purposes of ORS 285A.480 to
285A.495.
(2) The Director of the Economic { + and Community + }
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 { + and
Community + } 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 20. 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 as provided in ORS 285B.236 (3).
{ - (3) - } { + (2) + } 'Regional strategy' is a six-year
economic development plan, updated each biennium, to build or
enlarge { - key - } { + traded sector + } 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.
SECTION 21. ORS 285B.233 is amended to read:
285B.233. (1) The Legislative Assembly finds that regional
strategies are key to the state's economic revitalization and
that to be effective regional strategies 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 that address the
economic problems of each region of the state;
(b) To encourage the coordination of regional strategies with
the statewide { - key - } { + traded sector + } industries
program;
(c) To effectively utilize available resources through a
regional strategies program; and
(d) To coordinate private and public resources to support
economic development.
SECTION 22. ORS 285B.239 is amended to read:
285B.239. Regional economic development strategies shall serve
as a basis for state financial assistance to projects to aid a
regional economy. Each group of counties that form a region shall
submit a regional strategy which at a minimum shall include the
following elements:
(1) An identification of the { - key - } { + traded
sector + } industries that the region is seeking to stimulate
with its regional strategy;
(2) An analysis of the unique or significant resources that
provide the foundation for the strategy;
(3) An analysis of barriers to development of the selected
{ - key - } { + traded sector + } industries in the region
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, including actions by:
(a) Local governments;
(b) The private sector;
(c) State government; and
(d) Federal Government;
(5) A two-year action plan with a prioritized list of
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;
(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, for measuring
and monitoring strategy performance. As a minimum requirement,
the evaluation plan shall include a method and time schedule 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; and
(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 23. 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
economies + }. The fund shall be used to assist economic
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 24. 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 25. 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 26. 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
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 - } { +
well-paying + } jobs.
(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.
(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
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 27. 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
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.
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.
(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
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 28. 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 29. 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
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) - } { + (e) + } 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 30. 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 as
provided in ORS 285B.239. The governing body of a county shall
designate a regional strategy board to develop the strategy
recommendation. 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. 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 for the county.
(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 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 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 and assure 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 to the
Governor for final approval or shall return the strategy 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.
(7) After a regional strategy 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 the strategy and recommend a two-year
action plan to implement the strategy during that biennium. The
action plan shall be adopted by the governing bodies of the
counties, 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 { + and Community + } Development Commission or by the
Governor unless those portions of the strategy relating to
{ - key - } { + traded sector + } 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 { + and Community + } Development Department shall
determine which statewide organizations represent the affected
{ - key - } { + traded sector + } 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.
SECTION 31. ORS 285B.263 is amended to read:
285B.263. (1) In each biennium, the Economic { + and
Community + } Development Department shall expend:
(a) Not less than 75 percent of the moneys in the Regional
Strategies Fund as regional guideline funds for:
(A) Technical assistance and staff support for regional
strategy development; and
(B) Projects implementing an approved regional strategy.
(b) Not more than 25 percent of the moneys in the Regional
Strategies Fund for multiregion projects selected by the Governor
that implement the approved regional strategies of two or more
regions. Funding for multiregion projects under this paragraph
shall be awarded, at the discretion of the Governor, according to
the quality of the defined projects. Multiregion projects that
receive funding under this paragraph must support the development
of the { - key - } { + traded sector + } industries included
in the regional strategies for the regions.
(2) In each biennium, a regional strategy board may dedicate a
portion of regional guideline funds for technical assistance and
staff support for regional strategy development and refinement.
The portion of funds so dedicated shall be determined by the
department. The department shall provide regional strategy boards
with these funds prior to strategy approval.
(3) In each biennium, a regional strategy board may dedicate a
portion of regional guideline 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 and that support the development of
the
{ - key - } { + traded sector + } industries included in the
regional strategy. The terms and conditions of grants or loans
to be made under this subsection must be contained in the
regional strategy at the time it is submitted for state review.
(4) After a regional strategy is adopted, the department in
each calendar quarter shall provide regional guideline funds,
less any moneys used for technical assistance and staff support
for strategy 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 approved
regional strategy.
(5) 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 described in ORS 285B.236 (2). Future grants to a
regional strategy board shall be based on the performance of the
board.
SECTION 32. 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), 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 33. { + (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 34. { + ORS 285A.115, 285A.212, 285A.215, 285A.218,
285A.221, 285A.380, 285A.383, 285A.386, 285A.389, 285A.392,
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. + }
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