Chapter 285B —
Economic Development II
ORS sections in this chapter were
amended or repealed by the Legislative Assembly during its 2012 regular
session. See the table of ORS sections amended or repealed during the 2012
regular session: 2012 A&R Tables
2011 EDITION
ECONOMIC DEVELOPMENT II
ECONOMIC DEVELOPMENT
BUSINESS DEVELOPMENT PROJECTS
285B.050 Definitions
for ORS 285B.050 to 285B.098
285B.053 Borrowing
money from Oregon Business Development Fund; application; report
285B.056 Fees;
rules
285B.059 Conditions
for commission approval of project; limits
285B.062 Loan
contract; required provisions; repayment plan; state liability
285B.065 Loans
in distressed areas exempt from security and collateral requirements
285B.068 Payment
of moneys for project; applicant to pay percentage of loan principal to Oregon
Business Development Fund
(Temporary provisions relating to BOOST
Account are compiled as notes following ORS 285B.068)
285B.080 Director
as agent; duties; power to approve loans
285B.081 Repayment
and collection; rules
285B.083 Use
of refinancing and other financial assistance for repayment
285B.086 Authorization
to lend funds for joint governmental projects or match money; form of loan
application; loan limit
285B.089 Loan
contract; required provisions; repayment schedule
285B.092 Oregon
Business Development Fund; uses; transfer of unobligated funds
285B.093 Oregon
Targeted Development Account; purpose; exemption from minimum interest rate
285B.098 Status
of loan to county or municipality; project as security; repayment
CAPITAL ACCESS PROGRAM
285B.109 Definitions
for ORS 285B.109 to 285B.119
285B.111 Purpose
of ORS 285B.109 to 285B.119
285B.113 Contracts
with financial institutions to participate in program; required contents;
disclosure of information
285B.115 Loss
reserve accounts; policies; rules; moneys as property of state
285B.117 Enrollment
of qualified loan in program; notice to department; fees; transfers to loss
reserve accounts; rules and limits for loans
285B.118 Claims
for reimbursement of losses; reimbursable costs; repayment to loss reserve
account
285B.119 Capital
Access Fund; investment; retrieval of interest; administrative expenses
SMALL BUSINESS DEVELOPMENT
(Generally)
285B.120 Oregon
Small Business Development Act
285B.123 Purpose
(Small Business Development Centers)
285B.165 Purpose
of ORS 285B.165 to 285B.171
285B.168 Grants;
application; required provisions; authorized uses; eligibility; subcontracts;
report
285B.171 Short
title
(Miscellaneous)
285B.174 Programs
to assist businesses in procuring government contracts and grants
MICROENTERPRISE DEVELOPMENT
285B.178 Definitions
for Microenterprise Development Act
285B.179 Purposes
of Microenterprise Development Act
285B.186 Short
title
CREDIT ENHANCEMENT FUND
285B.200 Definitions
for ORS 285B.200 to 285B.218
285B.203 Purpose
of Credit Enhancement Fund
285B.206 Duties
of department; rules; application procedure; agreement contents
285B.209 Fees
and terms for loan and credit guarantees
285B.215 Credit
Enhancement Fund; uses; sources
285B.218 Pledge
to assure repayment; transfer of funds to pay claims
LOCAL ECONOMIC DEVELOPMENT
285B.230 Local
economic development strategy
285B.233 Legislative
findings; purpose
285B.236 Guidelines
for local economic development strategies; required provisions; rules
285B.260 Local
Economic Opportunity Fund; authorized and prohibited uses; rules
285B.266 Strategic
Reserve Fund; uses
INDUSTRY DEVELOPMENT PROJECTS
285B.280 Definition
of “traded sector”
285B.283 Policy
285B.286 Industry
development activities
285B.290 Industry
Competitiveness Fund; uses
STATE REVENUE BONDS FOR INDUSTRIAL,
COMMERCIAL, SOLID WASTE DISPOSAL, RESEARCH AND DEVELOPMENT USES
285B.320 Purpose
of ORS 285B.320 to 285B.371
285B.323 Definitions
for ORS 285B.320 to 285B.371
285B.326 Request
for issuance of bonds; fees; rules; reimbursement for expenses
285B.329 Review
of project by commission; exception
285B.335 Powers
of department; lease requirements
285B.338 Powers
of commission
285B.341 Limitation
on state power
285B.344 Issuance
of bonds
285B.350 Method
of issuing bonds
285B.353 Administrative
expenses
285B.356 Refunding
bonds
285B.359 Validity
of bonds
285B.362 Covenants
in bonds
285B.365 Limitations
of bonds; recitals
285B.368 Powers
and rights of bondholders
285B.371 Loans
to eligible projects when state holds no interest
INFRASTRUCTURE PROJECTS
(Generally)
285B.410 Definitions
for ORS 285B.410 to 285B.482
285B.413 Legislative
findings; purpose; use of moneys; rules
285B.419 Administration
of Special Public Works Fund; rules and policies
(Municipal Development Projects)
285B.422 Funding
to municipalities for development projects; criteria for project funding;
prohibited uses
(Assistance from Special Public Works
Fund)
285B.428 Application
for funds; rules
285B.437 Contract
with municipality; required provisions; repayment
285B.440 Primary
use of moneys in fund; standards for awarding grants; limitations; rules
285B.449 Effect
of failure to comply or default
285B.455 Special
Public Works Fund; uses; administration of fund
285B.458 Grants
for assistance to distressed or rural areas; minimum
285B.460 Funding
and assistance for planning projects
285B.462 Funding
and assistance for emergency projects
285B.465 Allowable
costs of projects
(Revenue Bond Financing)
285B.467 Eligibility
for revenue bond financing; rules; request for issuance; allowable costs
285B.470 Powers
of authority
285B.473 Issuance
of revenue bonds
285B.476 Application
of law to revenue bonds; proceeds; maximum duration of loans
285B.479 Nature
of revenue bonds
285B.482 Revenue
bonds as parity bonds; consolidation of bond proceeds; loans and consolidated
funds as security for water or development projects
INFRASTRUCTURE PROJECTS FOR SOUTHERN
OREGON
285B.500 Purpose
of ORS 285B.500 to 285B.512; legislative findings
285B.503 Oregon
Unified International Trade Fund; uses
285B.506 Grant
agreements; maximum grant amount; required provisions; assignment of right to
receive grant moneys; agreement not to constitute state debt or liability
285B.509 Agreements
between primary sponsor and United States
285B.512 End
of lottery allocations upon certification by administrator of authority
285B.515 “Primary
sponsor” and “project sponsor” defined
LOTTERY BONDS FOR INFRASTRUCTURE
PROJECTS
285B.530 Definitions
for ORS 285B.530 to 285B.548
285B.533 Issuance
of infrastructure lottery bonds; amount; use of bond proceeds
285B.548 Amount
of infrastructure lottery bonds
285B.551 Issuance
of additional lottery bonds; uses; maximum amounts; Economic Infrastructure
Project Fund
SAFE DRINKING WATER PROJECTS
(Generally)
285B.560 Definitions
for ORS 285B.560 to 285B.599
285B.563 Water
Fund; uses; conditions for making loan; grant awards; investment of fund
moneys; rules and policies
285B.566 Use
of receipts
285B.569 When
constitutional restrictions apply to use of certain funds
(Revenue Bond Financing of Safe Drinking
Water Projects)
285B.572 Eligibility
of project for revenue bond financing; rules; decision to issue bonds
285B.575 Issuance
of revenue bonds
285B.578 Nature
of revenue bonds
285B.581 Repayment
plans; required provisions; loan contract; sources for repayment
285B.584 Powers
of authority
285B.587 Deposit
and use of bond proceeds
285B.590 Other
forms of financial assistance
285B.593 Technical
assistance grants and loans; uses; rules
285B.596 Funding
of distressed area or nonurban water projects
285B.599 Effect
of failure to repay to Water Fund; default
(Oregon Business Retention and Expansion
Program)
(Temporary provisions relating to Oregon
Business Retention and Expansion Program are compiled as notes following ORS
285B.599)
ENTREPRENEURIAL DEVELOPMENT
285B.740 Legislative
intent; delegation of loan program responsibilities; powers of department; loan
fees
285B.743 Application
for entrepreneurial development loan; eligibility; rules
285B.746 Conditions
required for loan approval
285B.749 Additional
conditions for loan approval; maximum term and amount of loan
285B.758 Oregon
Entrepreneurial Development Loan Fund; uses
Note:
285A.010 contains definitions for ORS chapter 285B.
BUSINESS DEVELOPMENT PROJECTS
285B.050 Definitions for ORS 285B.050 to
285B.098. As used in ORS 285B.050 to 285B.098,
unless the context requires otherwise:
(1)
“Applicant” means any county, municipality, person or any combination of
counties, municipalities or persons applying for a loan from the Oregon
Business Development Fund under ORS 285B.050 to 285B.098.
(2)
“Business development project” means the acquisition, engineering, improvement,
rehabilitation, construction, operation or maintenance of any property, real or
personal, that is used or is suitable for use by an economic enterprise and
that will result in, or will aid, promote or facilitate, development of one or
more of the following activities:
(a)
Manufacturing or other industrial production;
(b)
Agricultural development or food processing;
(c)
Aquacultural development or seafood processing;
(d)
Development or improved utilization of natural resources;
(e)
Convention facilities and trade centers;
(f)
Transportation or freight facilities; and
(g)
Other activities that represent new technology or type of economic enterprise
the Oregon Business Development Commission determines is needed to diversify
the economic base of an area but not including:
(A)
Construction of office buildings, including corporate headquarters; and
(B)
Retail businesses, shopping centers or food service facilities.
(3)
“Collateral” has the meaning given that term in ORS 79.0102 for property
subject to a security interest.
(4)
“County” means any county or federally recognized Oregon Indian tribe.
(5)
“Local development group” means any public or private corporation that has as
one of its primary purposes, as stated in its articles of incorporation,
charter or bylaws, the promotion of economic development in any part of the
State of Oregon.
(6)
“Municipality” means any city, municipal corporation or quasi-municipal
corporation.
(7)
“Person” means any individual, association of individuals, joint venture,
partnership, limited liability company or corporation. [Formerly 285.403; 2001
c.445 §171; 2003 c.167 §1; 2007 c.804 §40; 2009 c.830 §49; 2011 c.558 §1]
285B.053 Borrowing money from Oregon
Business Development Fund; application; report.
(1) Any county, municipality, person or any combination of counties,
municipalities and persons may file with the Oregon Business Development
Department an application to borrow money from the Oregon Business Development
Fund for a business development project as provided in ORS 285B.050 to
285B.098. The application shall be filed in such a manner and contain or be
accompanied by such information as the department may prescribe.
(2)
Any applicant receiving a loan from the fund shall report to the department the
estimated number of jobs affected by the business development project financed
under ORS 285B.050 to 285B.098. [Formerly 285.405; 2007 c.804 §41; 2009 c.830 §50]
285B.056 Fees; rules.
The Oregon Business Development Department shall charge fees and establish
rules to underwrite loans from the Oregon Business Development Fund. [Formerly
285.410; 2007 c.804 §42; 2009 c.830 §51]
285B.059 Conditions for commission approval
of project; limits. (1) The Oregon Business
Development Commission may approve a business development project proposed in
an application filed under ORS 285B.050 to 285B.098 if, after investigation,
the commission finds that:
(a)
The proposed business development project is feasible and a reasonable risk
from practical and economic standpoints, and that the loan has reasonable
prospect of repayment.
(b)
The applicant can provide good and sufficient collateral for the loan.
(c)
Moneys in the Oregon Business Development Fund are or will be available for the
proposed business development project.
(d)
There is a need for the proposed business development project.
(e)
The applicant has not received or entered into a contract or contracts exceeding
$1 million with the commission, under authority of ORS 285B.050 to 285B.098,
for the previous 365 days.
(2)(a)
Except as provided in paragraph (b) of this subsection, the total amount of
moneys loaned from the fund for a business development project may not exceed
50 percent of the cost of the project.
(b)
The total amount of moneys loaned from the fund for a business development
project may exceed 50 percent of the cost of the project if two or more lenders
have denied requests from the applicant to commit to participate in the
financing of the project and the applicant has no other available financing.
(3)(a)
Except as provided in paragraph (b) of this subsection, moneys may not be
loaned from the fund for a 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.
(b)
Moneys may be loaned from the fund for a business development project without a
commitment from a commercial or private lender, or a local development group,
to participate in the financing of the project if:
(A)
The applicant is a county or municipality;
(B)
There are payments other than the scheduled principal and interest payments; or
(C)
Two or more lenders have denied requests from the applicant to commit to
participate in the financing of the project and the applicant has no other
available financing.
(4)
To encourage private sector and local development group participation in the
financing of business development projects, the commission may subordinate the
security position of the fund to that of other lenders.
(5)
In each fiscal year of a biennium, 15 percent of all moneys available for
lending from the fund is reserved for loans to emerging small business
enterprises as defined by the Oregon Business Development Department by rule,
which are located in or draw their workforces from within distressed areas as
determined by the Oregon Business Development Department in cooperation with
the Employment Department of this state. If the Oregon Business Development
Department was unable to obtain a sufficient number of approvable applications
to meet the requirements of this subsection in the previous fiscal year, it
may, in the current fiscal year and notwithstanding the limitations imposed by
ORS 285B.050 (2)(g)(B), make loans, in an amount that does not exceed the 15
percent reserved for the prior fiscal year less the amount of loans made to
emerging small business enterprises located in rural and distressed areas
during the previous fiscal year, to service and retail businesses operated by
small business enterprises that are located in or draw their workforces from
within distressed areas as determined by the Oregon Business Development
Department in cooperation with the Employment Department of this state. As used
in this subsection, “rural area” and “distressed area” have the meaning given
those terms in ORS 285A.010. [Formerly 285.413; 1999 c.509 §27; 2003 c.167 §2;
2007 c.804 §43; 2009 c.830 §52; 2010 c.106 §§1,5; 2011 c.558 §2]
285B.062 Loan contract; required
provisions; repayment plan; state liability. If the
Oregon Business Development Commission approves the business development
project, the commission, on behalf of the state, and the applicant may enter
into a loan contract of not more than $1 million, secured by good and
sufficient collateral, which shall set forth, among other matters:
(1)
A plan for repayment by the applicant to the Oregon Business Development Fund
of moneys borrowed from the fund used for the business development project with
interest charged on those moneys at the rate of not less than one percentage
point more than the prevailing interest rate on United States Treasury bills,
notes or bonds of a comparable term, as determined by the commission. The
repayment plan, among other matters:
(a)
Shall provide for commencement of repayment by the applicant of moneys used for
the business development project and interest thereon no later than one year
after the date of the loan contract or at such other time as the commission may
provide.
(b)
May provide for reasonable extension of the time for making any repayment in
emergency or hardship circumstances if approved by the commission.
(c)
Shall provide for such evidence of debt assurance of, and security for,
repayment by the applicant as is considered necessary by the commission.
(d)
Shall set forth a schedule of payments and the period of loan which shall not
exceed the usable life of the contracted project or 25 years from the date of
the contract, whichever is less, and shall also set forth the manner of
determining when loan payments are delinquent. The payment schedule shall
include repayment of interest which accrues during any period of delay in
repayment authorized by paragraph (a) of this subsection, and the payment
schedule may require payments of varying amounts for collection of accrued
interest.
(e)
Shall set forth a procedure for formal declaration of default of payment by the
commission, including formal notification of all relevant federal, state and
local agencies; and further, a procedure for notification of all relevant
federal, state and local agencies that declaration of default has been
rescinded when appropriate.
(f)
Shall allow for other forms of payment than principal and interest payments on
loans, to be outlined in administrative rules.
(2)
Provisions satisfactory to the commission for field engineering and inspection,
the commission to be the final judge of completion of the contract.
(3)
That the liability of the state under the contract is contingent upon the
availability of moneys in the fund for use in the business development project.
(4)
Such further provisions as the commission considers necessary to insure
expenditure of the funds for the purposes set forth in the approved
application. [Formerly 285.415; 2003 c.167 §3; 2007 c.804 §44; 2009 c.830 §53]
285B.065 Loans in distressed areas exempt
from security and collateral requirements. The
Oregon Business Development Department may make loans in distressed areas, as
defined by the department, without regard to the requirements for security and
collateral under ORS 285B.059 and 285B.062 that are otherwise applicable. [Formerly
285.416; 2009 c.830 §54]
285B.068 Payment of moneys for project;
applicant to pay percentage of loan principal to Oregon Business Development
Fund. (1) If the Oregon Business Development
Commission approves a loan for a business development project and the applicant
has received all necessary permits required by federal, state and local
agencies, the commission shall pay moneys for the project from the Oregon
Business Development Fund, in accordance with the terms of the loan contract as
prescribed by the commission.
(2)
Immediately upon receiving the loan proceeds, the applicant shall pay to the
commission one and one-half percent of the principal amount of the loan, to be
paid back to the Oregon Business Development Fund. A maximum of three percent
of the principal amount of the loan may be paid from the fund to local development
groups for the purposes set forth in ORS 285B.092 (1)(a). [Formerly 285.417;
2009 c.830 §55]
(Temporary provisions relating to BOOST
Account)
Note:
Sections 2, 3 and 9, chapter 93, Oregon Laws 2010, provide:
Sec. 2. Definitions; loans and grants for industry
development purposes; requirements; limitations.
(1) As used in this section and section 3, chapter 93, Oregon Laws 2010:
(a)
“BOOST Account” means the Building Opportunities for Oregon Small Business
Today Account established under section 3, chapter 93, Oregon Laws 2010.
(b)
“Comparable wages” means wages that are reasonably equivalent to wages paid to
other employees of a small business employer regardless of position.
(c)
“Full-time” means a minimum of 35 hours per week or 25 hours per week with
health benefit plan coverage.
(d)
“Health benefit plan” has the meaning given that term in ORS 743.730.
(e)
“Small business employer” means a business having 100 or fewer employees in a
traded sector industry.
(f)
“Veteran” has the meaning given that term in ORS 408.225.
(g)
“Wages” means all compensation for performance of personal services by an
employee for a small business employer, including salaries, commissions,
benefits, the cash value of all compensation paid in any medium other than cash
and any other form of remuneration paid to employees for personal services.
(2)
Any small business employer may file with the Oregon Business Development
Department an application to borrow money, or an application for a grant of
financial assistance, from the BOOST Account for industry development purposes
as defined by rule of the department. The application shall be filed in the
manner and be accompanied by such information as the department may prescribe
by rule.
(3)
The department may approve an application for a loan or grant under this
section if, after investigation, the department finds that:
(a)
The applicant demonstrates a reasonable capacity to increase employment
opportunities in this state or, in the case of a loan, demonstrates a
reasonable capacity to retain existing jobs in this state.
(b)
The applicant has established goals of creating new full-time jobs in Oregon
or, in the case of a loan, has established goals of retaining existing jobs in
Oregon, with a reasonable prospect of achieving such goals.
(c)
The applicant has a demonstrated history of providing comparable wages to its
employees.
(d)
In the case of a loan, the applicant can provide good and sufficient collateral
for the loan.
(e)
Moneys are or will be available in the BOOST Account.
(4)(a)
Following the department’s approval of an application under subsection (3) of
this section, the department may:
(A)
Enter into a loan contract with the applicant of not more than $150,000,
secured by good and sufficient collateral, with a plan for repayment not to
exceed four years. The contract entered into under this subparagraph shall
contain a repayment plan that includes the amount of interest to be charged and
information about appropriate legal remedies the department may pursue to
secure repayment upon the applicant’s default or failure to comply with the
contract, including withholding of any amounts otherwise due. The department
shall develop rules governing repayment of loans under this subparagraph and
the collection of moneys owed to the BOOST Account. The department may take any
action permitted by statute or rule that the department deems necessary to
secure the repayment of the loan.
(B)
Make grants not to exceed $2,500 per new full-time job established by the
applicant after the date of approval of its application. A grant may not be
made under this subparagraph unless the new full-time employee has been
unemployed for at least 60 days preceding the date of hire or unless the new
full-time employee is a veteran, and the new full-time job is held by the
employee for a minimum period of six consecutive months. The total sum of
moneys paid under this subparagraph may not exceed $50,000 per applicant in any
calendar year. Grants made under this subparagraph shall be paid in the quarter
following receipt by the department of a report from the applicant that
provides information about new full-time jobs established by the applicant and
upon verification of employment in a manner to be established by the department
by rule.
(b)
In entering into loan contracts under paragraph (a)(A) of this subsection, the
department shall give preference to an applicant that proposes to create new
full-time jobs. [2010 c.93 §2; 2011 c.121 §1]
Sec. 3. Building Opportunities for Oregon
Small Business Today Account (BOOST Account); costs.
(1) The Oregon Business Development Department shall establish the Building
Opportunities for Oregon Small Business Today Account, or BOOST Account, as an
account within the Oregon Business Development Fund.
(2)
The purpose of the account is to promote access to working capital that results
in immediate job growth and job retention through the making of loans and
awarding of grants to small businesses in Oregon.
(3)
The department may charge administrative costs to the account to pay for actual
and necessary administrative expenses incurred by the department in
administering the account and implementing section 2 of this 2010 Act. [2010
c.93 §3]
Sec. 9.
Sections 2 to 4, chapter 93, Oregon Laws 2010, are repealed on June 30, 2013.
[2010 c.93 §9; 2011 c.630 §89]
285B.071
[Formerly 285.420; repealed by 2007 c.804 §86]
285B.074
[Formerly 285.425; repealed by 2007 c.804 §86]
285B.077
[Formerly 285.430; repealed by 2007 c.804 §86]
285B.080 Director as agent; duties; power
to approve loans. (1) The Oregon Business
Development Commission may appoint the Director of the Oregon Business
Development Department as the commission’s representative and agent in all
matters pertaining to ORS 285B.050 to 285B.098.
(2)
The director shall ensure that all provisions of ORS 285B.050 to 285B.098 are
complied with and that appropriately trained personnel are employed to properly
administer the fiscal and other portions of ORS 285B.050 to 285B.098.
(3)
The director shall have the authority in the director’s sole discretion to
approve loans for business development projects in the amount of $250,000 or
less and to disburse funds for such projects. [Formerly 285.433; 2009 c.830 §56;
2010 c.106 §§2,6; 2011 c.558 §3]
285B.081 Repayment and collection; rules.
The Oregon Business Development Department shall develop rules governing
repayment of loans to the Oregon Business Development Fund and collection of
moneys owed the fund. The department may take any action permitted by statute
or rule that the department deems necessary for repayment of the loan. [2007
c.804 §49; 2009 c.830 §57]
Note:
285B.081 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 285B or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
285B.083 Use of refinancing and other
financial assistance for repayment. Except as
provided in ORS 285B.086, if any business development project is refinanced or
financial assistance is obtained from other sources after the execution of the
loan from the state, those may first be used to repay the state, unless
provided otherwise by the committee, if the refinancing or financial assistance
applies only to the business development project authorized and does not
include any subsequent addition, expansion, improvement or further development.
[Formerly 285.435; 2007 c.804 §45]
285B.086 Authorization to lend funds for
joint governmental projects or match money; form of loan application; loan
limit. (1) The Oregon Business Development
Commission may authorize funds from the Oregon Business Development Fund to be
used in appropriate joint governmental participation projects or as match money
with any municipally, county, state or federally funded business development
project authorized within a county or city, subject to the stipulations of ORS
285B.050 to 285B.098.
(2)
Any application for a loan under this section shall be in such form as the
commission prescribes and shall furnish such proof of federal, state or local
approval as appropriate for funding of the business development project.
(3)
The total amount of moneys loaned from the fund for federal, state or local
joint business development project purposes shall not exceed $1 million per
project. [Formerly 285.437; 2003 c.167 §4; 2009 c.830 §58]
285B.089 Loan contract; required provisions;
repayment schedule. If the Oregon Business
Development Commission approves an application for the loan of moneys
authorized by ORS 285B.086, the commission shall enter into a loan contract,
secured by good and sufficient collateral as determined by the commission, with
the applicant that provides, among other matters:
(1)
That the loan bear interest at the same rate of interest as provided in ORS
285B.062 (1).
(2)
That the contract shall set forth a schedule of payments including interest and
principal for the period of the loan, which shall not exceed the usable life of
the contracted project or 25 years from the date of the contract, whichever is
less, and shall set forth the manner of determining when loan payments are
delinquent. The same schedule shall include repayment of interest which accrues
during any period of delay in repayment authorized by ORS 285B.050 to 285B.098,
and the repayment schedule may require payments of varying amounts for
collection of that accrued interest. However, the commission may make
provisions for extensions of time in making repayment if the delinquencies are
caused by acts of God or other conditions beyond the control of the applicant
and the security will not be impaired thereby.
(3)
Such provisions as the commission considers necessary to insure expenditure of
the moneys loaned for the purposes provided in ORS 285B.086, including all
provisions of ORS 285B.059. [Formerly 285.440; 2007 c.804 §46; 2009 c.830 §59]
285B.092 Oregon Business Development Fund;
uses; transfer of unobligated funds. (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 Business Development Commission for the following
purposes:
(a)
Administrative expenses of the commission in marketing public business finance,
processing applications, investigating proposed business development projects
and servicing outstanding loans. In any one year, administrative expenses
charged under this paragraph may not be greater than the total revenues
received in that year from fees provided for in subsection (2)(a) of this
section, plus four percent of the total asset value of the fund.
(b)
Payment of loans to applicants under ORS 285B.050 to 285B.098.
(c)
Actions the commission deems necessary to obtain repayment of outstanding
loans.
(d)
Purchase or buyout of superior or prior liens or mortgages on or a security
interest in any business development project financed in part by a loan from
the fund, when the commission determines:
(A)
A loan from the fund is in default and is in liquidation or at risk of being
forced into liquidation by another creditor to the project; and
(B)
The action is necessary to maintain or enhance the value of the commission’s
collateral in the project.
(2)
The fund created by subsection (1) of this section shall consist of:
(a)
Fees as determined by the commission.
(b)
Repayment of moneys loaned to counties, municipalities or persons from the
fund, including interest on those moneys or including other receipts.
(c)
Payment of such moneys as may be appropriated to the fund by the Legislative
Assembly.
(d)
Moneys obtained from any interest accrued from funds.
(e)
Moneys from any grant made to the fund by any federal agency.
(3)
All repayments, interest and other receipts from outstanding indebtedness or
any other source shall be retained and accumulated in the fund and shall be
used for the purposes of the fund.
(4)
Notwithstanding any other law, if at any time there are insufficient funds in
established business finance programs, the commission may direct the transfer
of unobligated funds from the fund. [Formerly 285.443; 1999 c.247 §3; 1999
c.509 §28; 2003 c.167 §5; 2007 c.804 §47; 2009 c.830 §60]
285B.093 Oregon Targeted Development
Account; purpose; exemption from minimum interest rate.
(1) The Oregon Business Development Commission may establish the Oregon
Targeted Development Account as an account within the Oregon Business
Development Fund.
(2)
The purpose of the Oregon Targeted Development Account is to promote
cooperation and foster partnership among the commission, the Oregon Business
Development Department and financial institutions in Oregon to encourage
investment in distressed areas, as defined by the department.
(3)
The department may make loans from the Oregon Targeted Development Account in
distressed areas without regard to the minimum rate of interest that is
otherwise applicable under ORS 285B.062. The department may make loans in
distressed areas at an interest rate that is determined by the commission. [1999
c.247 §1; 2003 c.167 §6; 2007 c.804 §48; 2009 c.830 §61]
285B.095
[Formerly 285.445; repealed by 2007 c.804 §86]
285B.098 Status of loan to county or
municipality; project as security; repayment. A loan
made to a county or municipality under ORS 285B.050 to 285B.098 shall not be a
general obligation of that county or municipality, nor a charge upon the tax
revenues of that county or municipality, nor a charge upon any other revenues
or property of that county or municipality not specifically pledged thereto. A
loan made to a county or municipality under ORS 285B.050 to 285B.098 may be
secured by the business development project for which the loan is made, as well
as by any revenues derived from that project, and any nontax-derived revenues
or property of the county or municipality not otherwise pledged or committed
for other purposes. A county or municipality may repay any portion of a loan
incurred under ORS 285B.050 to 285B.098 from any funds available to it. [Formerly
285.447]
285B.103 [2001
c.944 §2; 2003 c.374 §1; renumbered 285C.500 in 2003]
285B.105 [2001
c.944 §3; 2003 c.374 §2; renumbered 285C.503 in 2003]
285B.108 [2001
c.944 §4; 2003 c.374 §3; renumbered 285C.506 in 2003]
CAPITAL ACCESS PROGRAM
285B.109 Definitions for ORS 285B.109 to
285B.119. As used in ORS 285B.109 to 285B.119,
unless the context requires otherwise:
(1)
“Brownfield” or “brownfields” has the meaning given that term in ORS 285A.185.
(2)
“Capital access program” means the program established by ORS 285B.109 to
285B.119.
(3)
“Environmental action” has the meaning given that term in ORS 285A.188.
(4)
“Financial institution” means a financial institution, as defined in ORS
706.008.
(5)
“Loss reserve account” means an account in the State Treasury or any financial
institution that is established and maintained by the Oregon Business
Development Department for the benefit of a financial institution participating
in the capital access program.
(6)
“Qualified business” means any person, conducting business for profit or not
for profit, that is authorized to conduct business in the State of Oregon.
(7)
“Qualified loan” means a loan or portion of a loan made by a financial
institution to a qualified business for any business activity that has its primary
economic effect in Oregon. The term does not include:
(a)
A loan for the purchase of owner-occupied residential housing or for the
construction, improvement or purchase of residential housing owned or to be
owned by the borrower.
(b)
A loan for purchase of real property that is not used for the business
operations of the borrower.
(c)
A loan for the refinancing of an existing loan when and to the extent that the
outstanding balance is not increased. [Formerly 285B.126]
285B.111 Purpose of ORS 285B.109 to
285B.119. It is the purpose of ORS 285B.109 to
285B.119 to establish a capital access program under which the State of Oregon
will provide public fiscal resources to assist Oregon financial institutions to
overcome obstacles and constraints in meeting the full range of economically
sound financing needs of Oregon businesses. [Formerly 285B.129]
285B.113 Contracts with financial
institutions to participate in program; required contents; disclosure of
information. (1) The Oregon Business Development
Department may contract with any financial institution for the purpose of
allowing the financial institution to participate in the capital access program
established by ORS 285B.109 to 285B.119.
(2)
A contract between the department and a financial institution under this
section shall provide:
(a)
For the creation of a loss reserve account by the department for the benefit of
the financial institution.
(b)
That the financial institution, qualified business and the department will
deposit moneys to the credit of the institution’s loss reserve account when the
financial institution makes a qualified loan to a qualified business.
(c)
That the department will pay moneys in the loss reserve account, not exceeding
an amount equal to the total amount credited to the loss reserve account, to
the financial institution to reimburse the institution for any financial loss
incurred as a result of any qualified loan made under the capital access
program established by ORS 285B.109 to 285B.119.
(d)
That the liability of the State of Oregon and the department to the financial
institution under the contract is limited to the amount of money credited to
the loss reserve account of the institution.
(e)
That the financial institution shall provide such information as the department
may require, including financial information that is identifiable with, or
identifiable from, the financial records of a particular customer who is the
recipient of a qualified loan.
(f)
For such other terms as the department may require.
(3)
A financial institution is not subject to ORS 192.586 (1) when the financial
institution provides information to the department as required by subsection
(2)(e) of this section. [Formerly 285B.132]
285B.115 Loss reserve accounts; policies;
rules; moneys as property of state. (1) The
Oregon Business Development Department shall establish a loss reserve account
for each financial institution with which the department makes a contract under
ORS 285B.113.
(2)
The loss reserve account for a financial institution shall consist of moneys
paid as fees by borrowers and the financial institution under ORS 285B.117 and
moneys transferred to the account from the Capital Access Fund under ORS
285B.117.
(3)
Notwithstanding ORS chapter 293 or 295, the department may establish and
maintain loss reserve accounts with any financial institution under such
policies as the department may adopt. The department may establish rules to
encourage financial institutions to participate in the capital access program.
(4)
All moneys in a loss reserve account established under ORS 285B.109 to 285B.119
are the property of the State of Oregon. [Formerly 285B.135]
285B.117 Enrollment of qualified loan in
program; notice to department; fees; transfers to loss reserve accounts; rules
and limits for loans. (1) When a financial institution
participates in the capital access program, if the financial institution
decides to enroll a qualified loan under the capital access program in order to
obtain the protection against loss provided by its loss reserve account, the
financial institution shall notify the Oregon Business Development Department
of the loan within 30 days after the loan is made. The notification shall be in
writing on a form prescribed by the department.
(2)
When making a qualified loan that will be enrolled under the capital access
program, the financial institution shall require the qualified business to
which the loan is made to pay a fee of not less than one and one-half percent
of the principal amount of the loan but not more than three and one-half
percent of such principal amount. The financial institution shall also pay a
fee in an amount equal to the fee paid by the borrower. The financial
institution shall deliver the fees collected under this subsection to the
department for deposit in the loss reserve account for the institution.
(3)
When depositing fees collected under subsection (2) of this section to the
credit of the loss reserve account for a financial institution, the department
shall transfer an amount that is not less than the total amount of the fees
paid by the borrower and the financial institution from the Capital Access Fund
to the loss reserve account for the institution.
(4)
Notwithstanding subsections (1) to (3) of this section, the department may adopt
rules providing that, for qualified loans to businesses in distressed areas or
for use in an environmental action on brownfields, the department may transfer
an amount that is not less than 150 percent of the total amount of the fees
paid by the borrower and the financial institution from the Capital Access Fund
to the loss reserve account of the institution. The total amount transferred
under this section may not exceed 40 percent of the moneys appropriated to the
fund. For purposes of this subsection, “distressed areas” shall have the
meaning given that term by the department by rule. [Formerly 285B.138]
285B.118 Claims for reimbursement of
losses; reimbursable costs; repayment to loss reserve account.
(1) The Oregon Business Development Department shall establish procedures under
which financial institutions participating in the capital access program
established by ORS 285B.109 to 285B.119 may submit claims for reimbursement for
losses incurred as a result of qualified loan defaults.
(2)
Costs for which a financial institution may be reimbursed from its loss reserve
account include loan principal, accrued interest on the principal, actual and
necessary costs of seeking recovery of the principal amount and interest
thereon and any other related costs.
(3)
A financial institution may seek reimbursement of loan losses prior to the
liquidation of collateral from defaulted loans. The financial institution shall
repay its loss reserve account for any moneys received as reimbursement under
this section if the financial institution recovers moneys from the borrower or
from the liquidation of collateral for the defaulted loan. [Formerly 285B.141]
285B.119 Capital Access Fund; investment;
retrieval of interest; administrative expenses.
(1) There is established in the State Treasury, separate and distinct from the
General Fund, the Capital Access Fund. All moneys in the fund are continuously
appropriated to the Oregon Business Development Department for the purpose of
making payments to loss reserve accounts established under ORS 285B.109 to
285B.119.
(2)
Moneys in the Capital Access Fund, with the approval of the State Treasurer,
may be invested as provided by ORS 293.701 to 293.820, and the earnings from
such investment shall be credited to the Capital Access Fund.
(3)
The Capital Access Fund shall consist of:
(a)
Moneys appropriated to the fund by the Legislative Assembly.
(b)
Interest earned on moneys in the fund.
(c)
Moneys returned to the fund from loss reserve accounts or other sources.
(4)
If the department deems retrieval of interest earned on loss reserve accounts
appropriate, the department may transfer into the fund up to 50 percent of the
interest earned on moneys in loss reserve accounts.
(5)
The department may charge administrative costs to the fund to pay for actual
and necessary administrative expenses incurred by the department in
administering the fund and establishing and maintaining loss reserve accounts
under ORS 285B.109 to 285B.119. [Formerly 285B.147]
SMALL BUSINESS DEVELOPMENT
(Generally)
285B.120 Oregon Small Business Development
Act. ORS 271.510, 271.520, 285B.092,
285B.123, 285B.165 to 285B.171, 285B.320 to 285B.326, 285B.335, 285B.341,
285B.344, 285B.350, 285B.365, 285B.371, 657.471, 659A.015 and 777.250 shall be
known as the Oregon Small Business Development Act of 1983. [Formerly 285.500]
285B.123 Purpose.
(1) The purpose of the Oregon Small Business Development Act of 1983 is to
encourage and assist the development and continued growth of small business in
this state.
(2)
As used in the Oregon Small Business Development Act of 1983, “small business”
means a business having 100 or fewer employees. [Formerly 285.503; 2007 c.804 §16]
285B.126
[Formerly 285.507; 2007 c.804 §50; 2009 c.830 §62; renumbered 285B.109 in 2009]
285B.129
[Formerly 285.510; 2007 c.804 §51; renumbered 285B.111 in 2009]
285B.132
[Formerly 285.513; 2007 c.804 §52; 2009 c.830 §63; renumbered 285B.113 in 2009]
285B.135
[Formerly 285.515; 2003 c.167 §7; 2007 c.804 §53; 2009 c.830 §64; renumbered
285B.115 in 2009]
285B.138
[Formerly 285.517; 2007 c.804 §54; 2009 c.830 §65; renumbered 285B.117 in 2009]
285B.139 [1991
c.688 §15; 1993 c.765 §80; 1995 c.71 §1; 1997 c.738 §4; 1999 c.247 §5; 2001
c.96 §3; repealed by 2007 c.804 §86]
285B.141
[Formerly 285.520; 2009 c.830 §66; renumbered 285B.118 in 2009]
285B.144
[Formerly 285.525; 2007 c.354 §14; repealed by 2007 c.804 §86]
285B.147
[Formerly 285.527; 2007 c.804 §55; 2009 c.830 §67; renumbered 285B.119 in 2009]
285B.150
[Formerly 285.528; repealed by 2007 c.804 §86]
285B.153
[Formerly 285.530; repealed by 2003 c.167 §16]
285B.156
[Formerly 285.533; repealed by 1999 c.509 §61]
285B.159
[Formerly 285.535; 2001 c.104 §98; repealed by 2007 c.804 §86]
285B.162
[Formerly 285.537; repealed by 2007 c.804 §86]
(Small Business Development Centers)
285B.165 Purpose of ORS 285B.165 to
285B.171. The purpose of ORS 285B.165 to 285B.171
is to establish and sustain a statewide network of small business development
centers. [Formerly 285.540; 2001 c.148 §3; 2007 c.804 §17]
285B.166 [2001
c.148 §2; repealed by 2007 c.804 §86]
285B.168 Grants; application; required
provisions; authorized uses; eligibility; subcontracts; report.
(1) The Oregon Business Development Department may make grants available to a
community college district, a community college service district or, with the
concurrence of the Commissioner for Community College Services and the
Chancellor of the Oregon University System, a public university listed in ORS
352.002 to assist in the formation, improvement and operation of small business
development centers. If a community college district, a community college
service district or a public university is unable to adequately provide
services in a specific geographic area, the department may make grants
available to other service providers as determined by the department. The grant
application shall include:
(a)
Plans for providing small business owners and managers individual counseling,
to the greatest extent practicable, in subject areas critical to small business
success;
(b)
A budget for the year for which a grant is requested, including cost
apportionment among the department, small business clients, the community
college, the public university or other service providers and other sources;
(c)
A plan for evaluating the effect of the program on small business clients
served; and
(d)
A plan for providing collaboration with other state agencies, state-supported
organizations and private sector entities that provide services to small businesses.
(2)
The grants made under subsection (1) of this section are to be used by the
grant recipient to provide:
(a)
Small business development center staff and support staff;
(b)
Expert resource persons from the business community;
(c)
Other training and business resources as approved by the department in skill
areas for which, or areas of the state where, the grant recipient can
demonstrate it does not otherwise have the capacity or expertise to provide the
resources; and
(d)
Other costs related to providing training, counseling and business resources to
small business clients.
(3)
To be eligible for a grant under subsection (1) of this section, the recipient
shall be required to provide funds, in-kind contributions or some combination
of funds and contributions, in accordance with rules adopted by the department.
(4)
Subject to the approval of the department, a grant recipient may subcontract
funds received under this section to any other entity that is eligible to
receive funding under this section.
(5)
The grant recipient shall submit a final report to the department after the
distribution of grant funds and the delivery of services to the proposed
business clients. The report shall state whether the plan and related budget
have met the applicable criteria as described in the recipient’s application
for the grant period. [Formerly 285.543; 2001 c.148 §4; 2003 c.773 §15; 2007
c.804 §18; 2009 c.830 §68; 2011 c.637 §93]
285B.171 Short title.
ORS 285B.165 to 285B.171 shall be known and may be cited as the “Small Business
Training Assistance Act.” [Formerly 285.547]
(Miscellaneous)
285B.174 Programs to assist businesses in
procuring government contracts and grants. In
cooperation with other state agencies and private organizations, public universities
listed in ORS 352.002 and community colleges may develop programs to assist
Oregon businesses with the procurement of government contracts and grants.
Small business development centers established under ORS 285B.165 to 285B.171
may assist with these programs. [Formerly 285.550; 2001 c.148 §5; 2007 c.804 §19;
2011 c.637 §94]
285B.177
[Formerly 285.553; repealed by 1999 c.509 §61]
MICROENTERPRISE DEVELOPMENT
285B.178 Definitions for Microenterprise
Development Act. As used in this section and ORS 285B.179:
(1)
“Local microenterprise support organization” means a community development
corporation, a nonprofit development organization, a nonprofit social services
organization or another locally operated nonprofit entity that provides
services to disadvantaged entrepreneurs.
(2)
“Low income” means income adjusted for family size that does not exceed:
(a)
For metropolitan areas, 80 percent of median income; or
(b)
For nonmetropolitan areas, the greater of 80 percent of the area median income
or 80 percent of the statewide nonmetropolitan area median income.
(3)
“Microenterprise” has the meaning given that term under 15 U.S.C. 6901, as
amended and in effect on June 30, 2007. If 15 U.S.C. 6901 is amended or altered
on or after July 1, 2007, the Oregon Business Development Department may adopt
by rule a definition of “microenterprise” to give the term the meaning given in
15 U.S.C. 6901 as amended or altered.
(4)
“Microentrepreneur” means an individual conducting a microenterprise.
(5)
“Microlending” means the practice of lending moneys to microenterprises or
microentrepreneurs.
(6)
“Statewide microenterprise support organization” means a community development
corporation, a nonprofit development organization, a nonprofit social services
organization or another nonprofit entity that serves as an intermediary between
the department and local microenterprise support organizations.
(7)
“Training and technical assistance” means services and support offered to
microenterprises and microentrepreneurs. “Training and technical assistance”
includes, but is not limited to, services to enhance business development,
asset building, business planning, marketing, management skills and access to
financial services.
(8)
“Very low income” means income adjusted for family size that does not exceed
150 percent of the poverty level determined under 42 U.S.C. 9902, as amended
and in effect on June 30, 2007. If 42 U.S.C. 9902 is amended or altered on or
after July 1, 2007, the department may adopt by rule the standard for determining
the federal poverty level under 42 U.S.C. 9902 as amended or altered. [2001
c.419 §2; 2007 c.804 §20; 2009 c.830 §69]
Note:
285B.178, 285B.179 and 285B.186 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 285B or any series
therein by legislative action. See Preface to Oregon Revised Statutes for
further explanation.
285B.179 Purposes of Microenterprise
Development Act. The purposes of ORS 285B.178 and
this section are to:
(1)
Ensure that microenterprises in Oregon are able to realize their full potential
to create jobs, enhance entrepreneurial skills, expand entrepreneurial activity
and increase the capacity of low income and very low income households to
become self-sufficient;
(2)
Enhance the development of a statewide infrastructure for microenterprise
support; and
(3)
Enable the Oregon Business Development Department to engage in contractual
relationships with statewide microenterprise support organizations that have
the capacity to administer grants to local microenterprise support
organizations, subject to ORS 285B.178 and this section, and to leverage
additional funds from sources other than moneys appropriated from the General
Fund. [2001 c.419 §3; 2007 c.804 §21; 2009 c.830 §70]
Note: See
note under 285B.178.
285B.180
[Formerly 285.555; repealed by 1999 c.509 §61]
285B.183 [2001
c.419 §5; repealed by 2007 c.804 §86]
285B.186 Short title.
ORS 285B.178 and 285B.179 shall be known and may be cited as the
Microenterprise Development Act. [2001 c.419 §1]
Note: See
note under 285B.178.
CREDIT ENHANCEMENT FUND
285B.200 Definitions for ORS 285B.200 to
285B.218. As used in ORS 285B.200 to 285B.218:
(1)
“Brownfield” or “brownfields” has the meaning given that term in ORS 285A.185.
(2)
“Eligible project costs” includes productive equipment and machinery, working
capital for operations and export transactions and such other costs as the
Oregon Business Development Department by rule may provide.
(3)
“Environmental action” has the meaning given that term in ORS 285A.188.
(4)
“Financial institution” includes institutions listed in ORS 706.008 and such
other institutions defined by rule of the department as financial institutions
for purposes of ORS 285B.200 to 285B.218.
(5)
“Qualified business” means any existing or proposed business that, except when
located within a distressed area, as defined by the department, sells goods or
services in markets for which national or international competition exists or
that owns, occupies, operates or has entered into an agreement to own, occupy
or operate real property containing a brownfield, as defined in ORS 285A.185.
The term includes professional services companies providing services to traded
sector industries and other entities within and outside of this state.
(6)
“Value-added agricultural products” means agricultural products that have been
processed, transformed or refined to the point where they may be distributed to
a final consumer without further processing, transformation or refining. The
term also includes agricultural products that are processed, transformed or
refined for distribution to other than final consumers when such processing,
transformation or refining represents a substantial increment in value as
determined by the Oregon Business Development Department in consultation with
the State Department of Agriculture. [Formerly 285.466; 1999 c.247 §4; 2007
c.804 §56; 2009 c.830 §71]
Note:
285B.200 to 285B.218 were enacted into law by the Legislative Assembly but were
not added to or made a part of ORS chapter 285B by legislative action. See
Preface to Oregon Revised Statutes for further explanation.
285B.203 Purpose of Credit Enhancement
Fund. The Legislative Assembly declares that
it is the purpose of the Credit Enhancement Fund to:
(1)
Create incentives and assistance to increase the flow of private capital to the
value-added agriculture industries.
(2)
Promote industrial modernization and technology adoption.
(3)
Encourage the retention and creation of family wage jobs.
(4)
Encourage the export of goods and services by Oregon businesses in
international markets.
(5)
Encourage and promote the redevelopment of brownfields by providing assistance
to perform environmental action on brownfield sites. [Formerly 285.468; 2001
c.96 §4; 2007 c.804 §57]
Note: See
note under 285B.200.
285B.206 Duties of department; rules;
application procedure; agreement contents. (1)
The Oregon Business Development Department shall develop a program under which
the department, under contracts with financial institutions, shall provide loan
guarantees, insurance, coinsurance in conjunction with other providers of loan
guarantee programs or other forms of credit guarantees for qualified businesses
for eligible project costs.
(2)
In administering the program created by ORS 285B.200 to 285B.218, the
department shall consult and cooperate with financial institutions in this
state. The program shall be administered so that administrative procedures and
application procedures are as responsive to the needs of qualified businesses
and financial institutions as practicable, consistent with prudent investment
and lending practices and criteria.
(3)
The department shall prescribe by rule the loan or credit guarantee application
procedure for a financial institution on behalf of a qualified business.
(4)
When the department approves a loan or credit guarantee, the department shall
enter into a loan or credit guarantee agreement with the financial institution.
The agreement shall specify:
(a)
The fee to be charged to the financial institution;
(b)
The evidence of debt assurance of, and security for, the loan or credit
guarantee;
(c)
A loan guarantee or credit guarantee which does not exceed 15 years; and
(d)
Such other terms and conditions considered necessary or desirable by the
department. [Formerly 285.474; 2007 c.804 §58; 2009 c.830 §72]
Note: See
note under 285B.200.
285B.209 Fees and terms for loan and
credit guarantees. (1) When making loan or credit
guarantees under the program established under ORS 285B.200 to 285B.218, the
Oregon Business Development Department shall establish fees and other terms for
loan or credit guarantees that are calculated to reasonably assure that
businesses with access to other forms of private capital will find it
economical not to participate in the program.
(2)
The department, with due regard for the possibility of losses and
administrative costs, shall set fees and other terms at levels sufficient to
reasonably assure that the program is self-financing. [Formerly 285.476; 2007
c.804 §59; 2009 c.830 §73]
Note: See
note under 285B.200.
285B.212
[Formerly 285.478; repealed by 2007 c.804 §86]
285B.215 Credit Enhancement Fund; uses;
sources. (1) There is established in the State
Treasury, separate and distinct from the General Fund, the Credit Enhancement
Fund. All moneys in the fund are continuously appropriated to the Oregon
Business Development Department for the following purposes:
(a)
Payment of claims pursuant to contracts for loan or credit guarantees under ORS
285B.200 to 285B.218.
(b)
Payment of administrative costs of the department for actual and necessary
administrative expenses incurred by the department in administering the fund
and establishing and maintaining the program established under ORS 285B.200 to
285B.218.
(c)
Repayment of transfers of funds required or authorized by law.
(d)
Purchase or buyout of superior or prior liens, mortgages or security interests.
(2)
Moneys in the Credit Enhancement Fund shall consist of:
(a)
Moneys appropriated to the fund by the Legislative Assembly, including moneys
derived from the Administrative Services Economic Development Fund.
(b)
Proceeds from collateral assigned to the department.
(c)
Interest earned on moneys in the fund.
(d)
Transfers of moneys to the fund.
(e)
Fees assessed for guarantees, as determined by the department.
(f)
Moneys from gifts.
(g)
Moneys from any grant made to the fund by any federal agency.
(h)
Proceeds of insurance provided by the Export-Import Bank of the United States or
by any other provider of insurance for export transactions. [Formerly 285.471;
2007 c.804 §60; 2009 c.830 §74]
Note: See
note under 285B.200.
285B.218 Pledge to assure repayment;
transfer of funds to pay claims. (1) The
Oregon Business Development Department is authorized to pledge up to $75
million to assure the repayment of loan guarantees or other extensions of
credit made to or on behalf of qualified businesses for eligible projects
costs.
(2)
If the balances in the Credit Enhancement Fund are insufficient to cover any
claims by financial institutions that arise from loan and credit guarantees
made under ORS 285B.200 to 285B.218, the Oregon Department of Administrative
Services is directed to transfer in the fiscal year as often as appropriate any
funds from the Administrative Services Economic Development Fund to cover such
principal, interest and claims, subject to the condition that no such transfer
shall be made prior to the satisfaction of any constitutionally dedicated
distribution, the allocation under ORS 391.130 to the Regional Light Rail
Extension Construction Fund or any allocations related to the lottery bond
program authorized by ORS 286.560 (6)(a) or (b). [Formerly 285.481; 2007 c.804 §61;
2009 c.830 §75]
Note: See
note under 285B.200.
LOCAL ECONOMIC DEVELOPMENT
285B.230 Local economic development
strategy. As used in ORS 285B.230 to 285B.266,
unless the context requires otherwise, “local economic development strategy” is
a long-term economic development strategy, updated as required by the Oregon
Business Development Department, that focuses on the economic development
priorities of each community or geographic region in the state. [Formerly
285.630; 1999 c.509 §47; 2003 c.773 §16; 2007 c.804 §62; 2009 c.830 §76]
285B.233 Legislative findings; purpose.
(1) The Legislative Assembly finds that local economic development activities
and initiatives are essential to the state’s long-term prosperity and that to
be effective, local economic development strategies must have the coordinated
support of available resources.
(2)
The Legislative Assembly declares that the purpose of ORS 285B.230 to 285B.266
is:
(a)
To encourage the development of local economic development strategies that
address the economic development priorities of communities in or geographic
regions of the state;
(b)
To identify and coordinate economic development priorities;
(c)
To ensure that economic development plans reinforce the long-term prosperity
and livability of Oregon;
(d)
To effectively utilize available resources through a strategic program tied to
the state’s economic development strategy;
(e)
To leverage and attract capital investment in Oregon communities; and
(f)
To coordinate private and public resources to support economic development. [Formerly
285.633; 1999 c.509 §48; 2003 c.773 §17; 2009 c.830 §77]
285B.236 Guidelines for local economic
development strategies; required provisions; rules.
(1) The Oregon Business Development Department by rule shall adopt guidelines
for submission of local economic development strategies and distribution of
funds.
(2)
The guidelines shall provide that the local economic development strategies are
approved in accordance with criteria reflecting the economic benefits to the
state. Each local economic development strategy must at a minimum set forth in
measurable terms the extent to which the strategy will accomplish the economic
development priorities of the community or geographic region, and the
department’s performance standards. [Formerly 285.635; 1999 c.509 §49; 2003
c.773 §18; 2007 c.804 §63; 2009 c.830 §78]
285B.239
[Formerly 285.637; 1999 c.509 §50; 2001 c.552 §2; 2003 c.773 §19; 2007 c.804 §64;
repealed by 2009 c.830 §171]
285B.242
[Formerly 285.640; 1999 c.509 §51; 2003 c.773 §20; 2007 c.804 §65; repealed by
2009 c.830 §171]
285B.245
[Formerly 285.643; 1999 c.509 §52; 2003 c.773 §21; 2007 c.804 §66; repealed by
2009 c.830 §171]
285B.248
[Formerly 285.645; 1999 c.509 §53; 2003 c.773 §22; repealed by 2009 c.830 §171]
285B.251
[Formerly 285.647; repealed by 1999 c.509 §61]
285B.254
[Formerly 285.648; 1999 c.509 §54; 2003 c.773 §23; repealed by 2007 c.804 §86]
285B.257
[Formerly 285.649; 1999 c.509 §55; 2003 c.773 §24; repealed by 2007 c.804 §86]
285B.260 Local Economic Opportunity Fund;
authorized and prohibited uses; rules. (1) There is
created a Local Economic Opportunity 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 Local Economic Opportunity Fund. The fund is continuously appropriated
to the Oregon Business Development Department to be used for grants to
implement ORS 280.518 and 285B.230 to 285B.266.
(2)
The department may use moneys in the Local Economic Opportunity Fund to pay for
the administrative expenses of operating the local investment program under ORS
285B.230 to 285B.266.
(3)
The fund shall not be used to retire any debt, to reimburse any person or
municipality for expenditures made or expenses incurred prior to the adoption
of a local economic development strategy or to substitute for local government
expenditures for existing and continuing public services. The department shall
adopt rules to carry out the provisions of this subsection.
(4)
After consulting with representatives of communities or geographic areas, the
department, by rule, shall adopt standards, objectives and criteria for the use
and distribution of moneys in the Local Economic Opportunity Fund.
(5)
The Local Economic Opportunity 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. [Formerly
285.650; 1999 c.509 §56; 2003 c.773 §25; 2007 c.354 §15; 2007 c.804 §67; 2009
c.830 §79]
285B.263
[Formerly 285.651; 1999 c.509 §57; 2001 c.552 §3; 2003 c.773 §26; 2007 c.804 §68;
repealed by 2009 c.830 §171]
285B.264 [2003
c.773 §26a; 2007 c.804 §69; repealed by 2009 c.830 §171]
285B.266 Strategic Reserve Fund; uses.
(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
Oregon Business 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 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 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. [Formerly 285.653; 1999
c.509 §19; 2009 c.830 §80]
285B.269
[Formerly 285.655; repealed by 2009 c.830 §171]
INDUSTRY DEVELOPMENT PROJECTS
285B.280 Definition of “traded sector.”
As used in ORS 285B.280 to 285B.286, unless the context requires otherwise, “traded
sector” means industries in which member firms sell their goods or services
into markets for which national or international competition exists. [Formerly
285.765; 2005 c.835 §1]
285B.283 Policy.
The Legislative Assembly declares that it is the policy of the State of Oregon:
(1)
Working with private firms, industry associations and others, to encourage
cooperative sector-based strategies to promote industrial competitiveness.
(2)
That programs to develop particular industry sectors of this state’s economy,
to the maximum extent feasible, include firms of all sizes. To promote that
policy, the Oregon Business Development Department shall undertake efforts as
are necessary to encourage representative participation by small firms under
ORS 285B.280 to 285B.286.
(3)
To emphasize industry development in those sectors of the economy in which
Oregon firms face national and international competition.
(4)
To provide an adequate supply of industrial and traded sector sites that are
available for immediate development. [Formerly 285.767; 2003 c.800 §22; 2009
c.830 §81]
285B.286 Industry development activities.
For traded sector industries, the Oregon Business Development Department shall
undertake industry development activities that may include, but are not limited
to, all of the following:
(1)
Focus groups and other meetings and related studies to identify 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 as well as partnering with universities
and other research institutions to assist in the retention and recruitment of
targeted industries.
(4)
Joint training and education programs and curricula related to the specific
needs of 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)
State technical and financial support to facilitate certification of sites as
ready for development for traded sector industry. The support may include
performing site assessments to determine the costs associated with development
of individual sites.
(8)
Assistance to traded sector and cluster affiliated Oregon businesses and
consortia in making investments that advance industry-related development
activities or other identified competitiveness objectives of existing Oregon
cluster businesses. [Formerly 285.770; 1999 c.509 §20; 2003 c.800 §23; 2009
c.830 §82]
285B.289
[Formerly 285.773; repealed by 1999 c.509 §61]
285B.290 Industry Competitiveness Fund;
uses. The Industry Competitiveness Fund is
established in the State Treasury, separate and distinct from the General Fund.
The Industry Competitiveness Fund shall consist of all moneys credited to the
fund, including moneys from the Administrative Services Economic Development
Fund. Interest earned by the Industry Competitiveness Fund shall be credited to
the fund. Moneys in the fund are continuously appropriated to the Oregon
Business Development Department to provide funds for activities outlined in ORS
285B.286. [2007 c.804 §71; 2009 c.830 §83]
Note:
285B.290 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 285B or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
285B.292
[Formerly 285.775; repealed by 1999 c.509 §61]
285B.295
[Formerly 285.777; repealed by 1999 c.509 §61]
285B.298
[Formerly 285.780; repealed by 1999 c.509 §61]
STATE REVENUE BONDS FOR INDUSTRIAL,
COMMERCIAL, SOLID WASTE DISPOSAL, RESEARCH AND DEVELOPMENT USES
285B.320 Purpose of ORS 285B.320 to
285B.371. It is the purpose of ORS 285B.320 to
285B.371 to authorize the exercise of powers granted by ORS 285B.320 to
285B.371 by this state in addition to and not in lieu of any other powers it
may possess. [Formerly 285.310; 1999 c.509 §29; 2001 c.680 §2; 2007 c.804 §72]
285B.323 Definitions for ORS 285B.320 to
285B.371. As used in ORS 285B.320 to 285B.371,
unless the context requires otherwise:
(1)
“Bond” or “revenue bond” means a revenue bond, as defined in ORS 286A.001.
(2)
“Economic development project” includes any properties, real or personal, used
or useful in connection with a revenue producing enterprise, an exempt facility
or a nonprofit entity, and vehicles, rolling stock or equipment related to an
enterprise, facility or entity.
(3)
“Eligible project” means an economic development project found by the Oregon
Business Development Commission to meet standards of the commission.
(4)
“Exempt facility” means any facility described in section 142(a) of the Internal
Revenue Code of 1986, as amended and in effect as of June 30, 2007. If section
142(a) of the Internal Revenue Code of 1986 is amended or altered on or after
July 1, 2007, the Oregon Business Development Department may adopt by rule a
definition of “exempt facility” that is consistent with section 142(a) of the
Internal Revenue Code of 1986 as amended or altered.
(5)
“Nonprofit entity” means an institution, organization or other entity exempt
from taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as
amended and in effect as of June 30, 2007. If section 501(c)(3) of the Internal
Revenue Code of 1986 is amended or altered on or after July 1, 2007, the
department may adopt a definition of “nonprofit entity” that is consistent with
section 501(c)(3) of the Internal Revenue Code of 1986 as amended or altered. [Formerly
285.315; 1999 c.509 §30; 2001 c.680 §3; 2007 c.804 §§73,90; 2009 c.830 §84;
2011 c.27 §1]
285B.326 Request for issuance of bonds;
fees; rules; reimbursement for expenses. (1) Upon
determining that an economic development project is an eligible project, the
Oregon Business Development Commission shall request that the State Treasurer
issue the bonds.
(2)
For bonding purposes, the commission may treat any number of economic
development projects determined to be eligible projects as a single eligible
project.
(3)
The commission shall collect fees set forth in rules established by the Oregon
Business Development Department. Moneys collected under this subsection shall
be deposited in the Oregon Business, Innovation and Trade Fund created under
ORS 285A.227 and are continuously appropriated to the commission for the
purpose of administration or funding of the Oregon Industrial Development
Revenue Bond and Express Bond Program.
(4)(a)
In addition to the fees described in subsection (3) of this section, the
commission may charge and receive reimbursement for expenses incurred in:
(A)
The initial review of an application for economic development projects sought
to be declared eligible for financing; and
(B)
Matters arising after the issuance of a bond.
(b)
Reimbursement for expenses under this subsection shall be charged and received
in accordance with rules established by the department. [Formerly 285.320; 1999
c.509 §31; 2003 c.167 §8; 2007 c.804 §§74,91; 2009 c.830 §85; 2011 c.27 §2]
285B.329 Review of project by commission;
exception. (1) The state, acting through the State
Treasurer, shall not undertake to finance any economic development project
pursuant to ORS 285B.320 to 285B.371 before the Oregon Business Development
Commission has reviewed the project.
(2)
The commission is not required to make the determination and findings described
in ORS 285A.055 (1) and (2) if the economic development project involves an
exempt facility and related vehicles, rolling stock or equipment when the
project does not require any private activity volume cap under ORS 286A.605 to
286A.625. [Formerly 285.325; 1999 c.509 §32; 2001 c.680 §4; 2007 c.804 §75;
2009 c.830 §86]
285B.332
[Formerly 285.330; 1999 c.509 §33; repealed by 2007 c.804 §86]
285B.335 Powers of department; lease
requirements. (1) In addition to any other powers
granted by law or by charter, the Oregon Business Development Department may:
(a)
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.344 to
a person, an agency of the federal government or state government, as defined
in ORS 174.111, under terms and with security approved by the department.
(b)
Lease and sublease eligible projects to a person, an agency of the federal
government or state government, as defined in ORS 174.111, subject to
subsection (2) of this section.
(c)
Pledge or assign all or part of the revenues of one or more eligible projects
owned or to be acquired by the state to the holders of bonds issued under this
section or to a trustee for the holders, and segregate the revenues or provide
for payment of the revenues to the trustee.
(d)
Mortgage or otherwise encumber eligible projects in favor of the holders of
bonds issued under this section, a trustee for the holders of the bonds, or an
escrow agent, vendor, lender, other financing party or trustee for the bonds
without obligating the state except with respect to the project.
(e)
Make contracts, execute instruments and do what is necessary or desirable to
exercise the powers granted by this section, to perform the covenants or duties
of this state or to secure the payment of bonds issued under this section.
Contracts that may be made by the state include, but are not limited to,
contracts entered into prior to construction, acquisition or installation of an
eligible project that authorize, subject to terms and conditions the state
finds necessary or desirable, a lessee to provide for construction, acquisition
or installation of buildings, improvements or equipment to be included in the
project.
(f)
Enter into and perform contracts and agreements with participating institutions
for the planning, construction, installation, acquisition, leasing or financing
of facilities of an eligible project, including a contract or agreement that
establishes a body for the supervision and general management of the
facilities.
(g)
Accept loans or grants for the planning, construction, installation,
acquisition, leasing or other provision of an eligible project from an
authorized agency of the federal government, and enter into agreements with the
agency respecting the loans or grants.
(h)
Acquire, own, sell, assign or otherwise hold legal or equitable title to or an
interest in eligible projects or hold federal tax ownership of eligible
projects.
(2)
A lease or sublease entered into under subsection (1)(b) of this section must
provide that:
(a)
Rents charged for the use of the project are established and revised as
necessary to produce sufficient revenue to allow for payment of the principal
of and interest on bonds issued under this chapter when due; and
(b)
The lessee or sublessee is required to pay:
(A)
The expenses of the operation and maintenance of the project including, but not
limited to, adequate insurance on the project and insurance against liability
for injury to persons or property arising from the operation of the project;
and
(B)
The taxes and special assessments levied upon the leased or subleased premises
and payable during the term of the lease or sublease.
(3)
During the term of a lease or sublease entered into under subsection (1)(b) of
this section, ad valorem taxes must be imposed on the real and personal
property of the eligible project in the same manner as the taxes would be
imposed if the lessee or sublessee were the owner of the eligible project. [Formerly
285.335; 1999 c.509 §34; 2001 c.680 §5; 2003 c.167 §11; 2007 c.783 §98; 2009
c.830 §87]
285B.338 Powers of commission.
In carrying out its duties under ORS 285B.320 to 285B.371, the Oregon Business
Development Commission acting for and in behalf of the state as its duly
authorized agency, may:
(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.371. [Formerly
285.340; 1999 c.509 §35; 2009 c.830 §88]
285B.341 Limitation on state power.
Except as provided in ORS 285B.335 and 285B.338, the state does not have the
power to operate any eligible project as a business or in any manner
whatsoever, and except as provided in ORS 285B.335 and 285B.338, nothing in ORS
285B.320 to 285B.371 authorizes the state to expend any funds on any eligible
project, other than the revenues of such projects, or the proceeds of revenue
bonds issued hereunder, or other funds granted to the state for the purposes of
an eligible project. For the purpose of exercising the powers and authority
granted under ORS 285B.335 or 285B.338, the state and the Oregon Business
Development Commission are not subject to the requirements of ORS 279.835 to
279.855 or ORS chapter 279A, 279B or 279C. [Formerly 285.345; 2001 c.680 §6;
2003 c.167 §12; 2003 c.794 §239; 2009 c.830 §89]
285B.344 Issuance of bonds.
(1) At the request of the Oregon Business Development Department, the State
Treasurer may issue under ORS 285B.320 to 285B.371 and ORS chapter 286A bonds
secured by revenues from eligible economic development projects or from other
financing sources 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. Refunding bonds may be
issued to refinance such bonds.
(2)
The department or the State Treasurer may appoint bond counsel as prescribed
under ORS 286A.130.
(3)
Any escrow agent, bond registrar, paying agent or trustee, if any, designated
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. [Formerly
285.350; 1999 c.509 §36; 2001 c.536 §1; 2003 c.167 §13; 2003 c.794 §240; 2007
c.783 §99; 2009 c.830 §90]
285B.347
[Formerly 285.355; 1999 c.509 §37; repealed by 2007 c.783 §234]
285B.350 Method of issuing bonds.
Bonds authorized under ORS 285B.320 to 285B.371 shall be issued in accordance
with the provisions of ORS chapter 286A. [Formerly 285.360; 2007 c.783 §100]
285B.353 Administrative expenses.
The administrative expenses of the State Treasurer shall be charged against
bond proceeds or project revenues. [Formerly 285.365]
285B.356 Refunding bonds.
The State Treasurer shall have the power, whenever the treasurer deems
refunding expedient, to refund any bonds by the issuance of new bonds, whether
the bonds to be refunded have or have not matured. The refunding bonds may be
exchanged for bonds to be refunded and the proceeds applied to the purchase,
redemption or payment of such bonds. [Formerly 285.370]
285B.359 Validity of bonds.
The validity of bonds issued under ORS 285B.320 to 285B.371 shall not be
dependent on nor be affected by the validity or regularity of any proceeding
relating to the acquisition, purchase, construction, installation,
reconstruction, improvement, betterment or extension of the eligible project
for which the bonds are issued. The official action authorizing such bonds may
provide that the bonds shall contain a recital that they are issued pursuant to
ORS 285B.320 to 285B.371 and such recital shall be conclusive evidence of their
validity and of the regularity of their issuance. [Formerly 285.375]
285B.362 Covenants in bonds.
The official action authorizing the issuance of bonds under ORS 285B.320 to
285B.371 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.371 in the following respects and in such other respects as the Oregon
Business Development Department may decide:
(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.371;
(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 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.371;
(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.371 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. [Formerly 285.380;
1999 c.509 §38; 2007 c.783 §101; 2009 c.830 §91]
285B.365 Limitations of bonds; recitals.
(1) Revenue bonds issued under ORS 285B.320 to 285B.371:
(a)
Shall not be payable from nor charged upon any funds other than the revenue
pledged to the payment thereof, nor shall the state be subject to any liability
thereon. No holder or holders of such bonds shall ever have the right to compel
any exercise of the taxing power of the state to pay any such bonds or the
interest thereon, nor to enforce payment thereof against any property of the
state except those projects or portions thereof, mortgaged or otherwise
encumbered under the provisions and for the purposes of ORS 285B.320 to
285B.371.
(b)
Shall not constitute a charge, lien or encumbrance, legal or equitable, upon
any property of the state, except those eligible projects, or portions thereof,
mortgaged or otherwise encumbered, under the provisions and for the purposes of
ORS 285B.320 to 285B.371.
(2)
Each bond issued under ORS 285B.320 to 285B.371 shall recite in substance that
the bond, including interest thereon, is payable solely from the revenue
pledged to the payment thereof. No such bond shall constitute a debt of the
state or a lending of the credit of the state within the meaning of any
constitutional or statutory limitation. However, nothing in ORS 285B.320 to
285B.371 is intended to impair the rights of holders of bonds to enforce
covenants made for the security thereof as provided in ORS 285B.368. [Formerly
285.385; 2003 c.167 §14]
285B.368 Powers and rights of bondholders.
Subject to any contractual limitation binding upon the holders of any issue of
bonds, or any escrow agent, vendor, lender, other financing party or trustee
therefor, including but not limited to the restriction of the exercise of any
remedy to a specified 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.371 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.371 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.371 without
exhausting and without regard to any other right or remedy conferred by ORS
285B.320 to 285B.371 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. [Formerly 285.390; 1999 c.509 §39]
285B.371 Loans to eligible projects when
state holds no interest. The state, acting through the
Oregon Business Development Commission, may loan the proceeds of the bonds
authorized by ORS 285B.320 to 285B.371 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 commission. [Formerly 285.393;
1999 c.509 §40; 2007 c.783 §102; 2009 c.830 §92]
285B.374
[Formerly 285.395; 1999 c.509 §41; repealed by 2003 c.167 §16]
285B.377
[Formerly 285.397; 1999 c.509 §42; repealed by 2003 c.167 §16]
285B.380
[Formerly 285.398; 2003 c.662 §7; renumbered 285C.600 in 2003]
285B.383
[Formerly 285.399; 1999 c.509 §26; 2003 c.662 §8; renumbered 285C.606 in 2003]
285B.386
[Formerly 285.400; 2003 c.662 §9; renumbered 285C.609 in 2003]
285B.389
[Formerly 285.401; 1999 c.509 §21; 2003 c.167 §9; 2003 c.662 §10a; renumbered
285C.612 in 2003]
285B.392
[Formerly 285.402; 2003 c.662 §11; renumbered 285C.620 in 2003]
INFRASTRUCTURE PROJECTS
(Generally)
285B.410 Definitions for ORS 285B.410 to
285B.482. As used in ORS 285B.410 to 285B.482,
unless the context requires otherwise:
(1)
“Airport” means:
(a)
A runway, taxiway, aircraft parking apron, ramp, auto parking area, access
road, safety area or runway protection zone;
(b)
An airport-related facility, including a hangar, terminal, air traffic control
tower or other building;
(c)
A signal, navigational aid or traffic control system; or
(d)
A fuel tank or other physical airport improvement.
(2)(a)
“Community development project” means a project that involves strategic
planning, training or other technical assistance as defined by the Oregon
Business Development Department by rule, and that is aimed at strengthening the
economic development, community development or infrastructure priority setting
of a municipality or region.
(b)
“Community development project” includes the following activities:
(A)
Developing and managing short-term and long-term projects;
(B)
Developing priorities for infrastructure projects;
(C)
Strategic planning related to furthering economic or community development; or
(D)
Training related to economic or community development, including training to
improve leadership skills, technical skills or analytical skills, particularly
in rural and distressed areas.
(c)
“Community development project” includes projects that may encompass a
municipality or any part of a municipality and may be undertaken in cooperation
with another municipality.
(3)
“Development project” means a project for the acquisition, improvement,
construction, demolition, or redevelopment of municipally owned utilities,
buildings, land, transportation facilities or other facilities that assist the
economic and community development of the municipality, including planning
project activities that are necessary or useful as determined by the Oregon
Infrastructure Finance Authority.
(4)
“Direct project management costs” means expenses directly related to a project
that are incurred by a municipality solely to support or manage a project
eligible for assistance under ORS 285B.410 to 285B.482. “Direct project
management costs” does not include routine or ongoing expenses of the
municipality.
(5)
“Emergency project” means a development project resulting from an emergency as
defined in ORS 401.025, to which federal disaster relief has been committed.
(6)
“Energy system” means a facility necessary for the distribution, transmission
or generation of energy, including but not limited to facilities powered by
wind, solar energy or biofuel and facilities for the collection, storage,
transmission or distribution of a fuel, including natural gas, methane or
hydrogen.
(7)
“Marine facility” means:
(a)
A wharf, dock, freight handling or passenger facility;
(b)
A navigation channel or structure, including a project funded under ORS
777.267; or
(c)
Any other physical marine facility improvement.
(8)
“Municipality” means an Oregon city or county, the Port of Portland created by
ORS 778.010, a county service district organized under ORS chapter 451, a
district as defined in ORS 198.010, a tribal council of a federally recognized
Indian tribe in this state or an airport district organized under ORS chapter
838.
(9)
“Planning project” means:
(a)
A project related to a potential development project for preliminary, final or
construction engineering;
(b)
A survey, site investigation or environmental action;
(c)
A financial, technical or other feasibility report, study or plan; or
(d)
An activity that the authority determines to be necessary or useful in planning
for a potential development project.
(10)
“Project” means a development, community development, planning or emergency
project.
(11)
“Railroad” means:
(a)
A main line, siding, yard, connecting or auxiliary track, right of way or
easement;
(b)
An industrial spur or related facility, including a depot, shop, maintenance
building or other building;
(c)
A signal or traffic control system;
(d)
A bridge or tunnel;
(e)
A dock, pit, conveyor, bin, crane, piping system, tank or pavement for
unloading, loading or transfer of freight, trailers or containers; or
(f)
Any other physical railroad improvement.
(12)
“Road” means a street, highway or thruway or a road-related structure that
provides for continuity of a right of way, including a bridge, tunnel, culvert
or similar structure or other physical road-related improvement.
(13)
“Rural area” has the meaning given that term in ORS 285A.010.
(14)
“Solid waste disposal site” has the meaning given the term “disposal site” in
ORS 459.005.
(15)
“Telecommunications system” means equipment or a facility for the electronic
transmission of voice, data, text, image or video.
(16)
“Transportation” means a system for movement of freight or passengers.
(17)
“Utilities” means a solid waste disposal site or a water, sewage, storm water
drainage, energy or telecommunications system. [Formerly 285.700; 1999 c.509 §43;
2001 c.96 §5; 2001 c.633 §1; 2001 c.883 §27; 2003 c.773 §27; 2005 c.835 §2;
2007 c.804 §32; 2009 c.830 §93]
285B.413 Legislative findings; purpose;
use of moneys; rules. (1) The Legislative Assembly
finds that:
(a)
The improvement, expansion and new construction of the state’s infrastructure
systems provide the basic framework for continuing and expanding economic
activity in this state, thereby improving the quality of life and economic
opportunity for the people of Oregon.
(b)
It is essential to maintain usable and developable industrial and commercial
lands in Oregon.
(2)
Because municipalities in this state often suffer from a lack of available
financing and technical capacity for these projects, it is the purpose of ORS
285B.410 to 285B.482 to provide financial or other assistance to enable
municipalities to construct, improve and repair those facilities that are
essential for supporting continuing and expanded economic activity. It is the
intent of the Legislative Assembly, by providing that assistance, to stimulate
industrial growth and commercial enterprise and to promote employment
opportunities in Oregon.
(3)
Moneys in the Special Public Works Fund shall be used primarily to provide
loans to municipalities for development and planning projects. Grants shall be
given only when loans are not feasible due to the financial need of the
municipality or under circumstances that the Oregon Business Development
Department specifies by administrative rule. The Oregon Infrastructure Finance
Authority is authorized to determine the level of grant or loan funding, if
any, on a case-by-case basis. [Formerly 285.703; 2001 c.883 §27a; 2003 c.773 §28;
2005 c.835 §3; 2009 c.830 §94]
285B.416
[Formerly 285.705; 2001 c.883 §28; 2003 c.773 §29; repealed by 2005 c.835 §37]
285B.419 Administration of Special Public
Works Fund; rules and policies. (1) The
Oregon Business Development Department shall adopt rules and policies for the
administration of the Special Public Works Fund. All forms of assistance are
subject to the rules and policies of the department.
(2)
The Oregon Infrastructure Finance Authority shall manage the Special Public
Works Fund and any expenditures from its accounts and transfers between its
accounts so that the fund provides a continuing source of financing for
development or planning projects consistent with ORS 285B.413.
(3)
The authority 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. The
authority 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 the future payments, consistent with the financial requirements of
subsections (2) and (3) of this section; and
(c)
Providing in any contract for the commitment that the liability of the state to
make the annual payments shall be contingent on the availability of moneys in
the Special Public Works Fund.
(4)
In assisting municipalities with projects, the authority shall cooperate to the
maximum extent possible with other state and federal agencies. [Formerly
285.707; 1999 c.509 §22; 2001 c.633 §2; 2001 c.883 §29; 2003 c.773 §30; 2005
c.835 §5; 2009 c.830 §95]
(Municipal Development Projects)
285B.422 Funding to municipalities for
development projects; criteria for project funding; prohibited uses.
(1) The Oregon Infrastructure Finance Authority may provide financial or other
assistance to a municipality for a development project.
(2)
The project must be municipally owned and operated either by the municipality
or under a management contract or an operating agreement with the municipality.
If the project consists:
(a)
Solely of the purchase or acquisition of land by the municipality, the land
must be identified in the applicable land use or capital plan as necessary for
a potential development project or be zoned solely for commercial or industrial
use.
(b)
Of a privately owned railroad, the railroad must be designated by the owner and
operator as subject to abandonment within three years, pursuant to federal law
governing abandonment of common carrier railroad lines.
(c)
Of a telecommunications system, the governing body of the municipality shall
adopt a resolution, after a public hearing, finding that the proposed
telecommunications system project is necessary and would not otherwise be
provided by a for-profit entity within a reasonable time and for a reasonable
cost.
(3)
If the project is an energy system, the municipality and the serving utility
must execute an ownership and operating agreement for the proposed energy
system. This subsection does not apply when the energy system will be located
within the recognized service territory of the municipality.
(4)
The authority may not use funds to provide assistance for:
(a)
Projects that primarily focus on relocating business or economic activity from
one part of the state to another, except in cases where the business or
economic activity would otherwise locate outside of Oregon; or
(b)
Ongoing operations or maintenance expenses. [1997 c.800 §12; 1999 c.509 §44;
2001 c.883 §30; 2003 c.773 §31; 2005 c.835 §6; 2009 c.11 §33; 2009 c.830 §96]
Note:
285B.422 was added to and made a part of 285B.410 to 285B.482 by legislative
action but was not added to any smaller series therein. See Preface to Oregon
Revised Statutes for further explanation.
285B.425 [1997
c.800 §13; 2001 c.883 §30a; repealed by 2005 c.835 §37]
(Assistance from Special Public Works
Fund)
285B.428 Application for funds; rules.
Any municipality may apply for financial or other assistance from the Special
Public Works Fund by submitting a completed application and related information
as required by the Oregon Business Development Department by rule. The
application shall be filed, reviewed and approved or rejected in accordance
with rules adopted by the department. [Formerly 285.710; 2001 c.883 §30b; 2003
c.773 §33; 2005 c.835 §11; 2009 c.830 §98]
285B.431
[Formerly 285.713; 2003 c.773 §34; repealed by 2005 c.835 §37]
285B.434
[Formerly 285.715; 2001 c.883 §30c; repealed by 2005 c.835 §37]
285B.437 Contract with municipality; required
provisions; repayment. (1) If the Oregon Infrastructure
Finance Authority approves assistance from the Special Public Works Fund for a
project, the authority, on behalf of the state, and the municipality may enter
into a contract to implement the assistance. The contract shall include:
(a)
A provision that the liability of the state under the contract is contingent
upon the availability of moneys in the Special Public Works Fund for use in the
project;
(b)
If any portion of the assistance is in the form of a loan or the purchase of a
bond of a municipality, a provision granting the authority a lien on or a
security interest in the collateral as determined by the authority to be
necessary to secure repayment of the loan or bond; and
(c)
Other provisions as the authority considers necessary or appropriate to
implement the assistance.
(2)
When the authority approves financial assistance under ORS 285B.410 to 285B.482
for a project, the authority shall pay moneys for the project from the Special
Public Works Fund in accordance with the terms of the contract.
(3)
Notwithstanding any other provision of law or any restriction on indebtedness
contained in a charter, a municipality may borrow from the Special Public Works
Fund by entering into a contract with the authority. The contract may be repaid
from:
(a)
The revenues of the project, including special assessment revenues;
(b)
Amounts withheld under ORS 285B.449 (1);
(c)
The general fund of the municipality; or
(d)
Any other source.
(4)
A loan contract authorized under subsection (3) of this section shall be
authorized by an ordinance, order or resolution adopted by the governing body
of the municipality. [Formerly 285.717; 2001 c.883 §30d; 2003 c.773 §35; 2005
c.835 §12; 2009 c.830 §99]
285B.438 [2001
c.633 §4; 2003 c.773 §36; repealed by 2005 c.835 §37]
285B.440 Primary use of moneys in fund;
standards for awarding grants; limitations; rules.
(1)(a) The moneys in the Special Public Works Fund shall be used primarily to
provide loans to municipalities for projects as defined in ORS 285B.410 to
295B.482. The Oregon Infrastructure Finance Authority may determine the level
of grant or loan funding, if any, on a case-by-case basis.
(b)
If the authority approves funding, the authority shall determine a maximum
amount of the loan based upon a reasonable and prudent expectation of the
ability of the municipality to repay the loan.
(c)
The initial loan term may not exceed the usable life of the project or 30 years
from the year of project completion, whichever is less. The term of a
renegotiated loan may not exceed the remaining usable life of the project or 30
years, whichever is less.
(d)
Assistance from the fund for a marine facility project otherwise funded under
ORS 777.267 shall be limited to a loan. The loan may not exceed the amount of
the required local matching funds.
(2)
The Oregon Business Development Department shall by rule adopt standards for
awarding grants from the Special Public Works Fund. The standards may include
the award of grants as a financial incentive to accomplish the goals of the
Special Public Works Fund, to address special circumstances of a project or to
address the financial need of the applicant.
(3)
The authority may make grants to a municipality not to exceed $1 million per
project or 85 percent of the allowable project costs, whichever is less. For
purposes of this subsection, allowable project costs do not include capitalized
interest, if any.
(4)
The authority may not expend more than one percent of the value of the Special
Public Works Fund in any biennium for grants or direct assistance, if any, for
planning projects and community development projects to municipalities.
(5)
The authority may not expend more than $2.5 million in any biennium for
emergency project grants. For purposes of this subsection, emergency project
grants include grants for essential community facilities, as defined by the
department by rule after consultation with the League of Oregon Cities, the Association
of Oregon Counties, the Oregon Ports Representation Group and the Special
Districts Association of Oregon.
(6)
Except as otherwise limited by this section, not more than 100 percent of the
total cost of a project, including capitalized interest, shall be financed from
the Special Public Works Fund. [Formerly 285.720; 2001 c.883 §31a; 2003 c.773 §37;
2005 c.835 §13; 2007 c.804 §33; 2009 c.830 §100; 2011 c.47 §1]
285B.443
[Formerly 285.723; 2001 c.883 §31; 2003 c.773 §38; repealed by 2005 c.835 §37]
285B.446
[Formerly 285.725; 2003 c.773 §39; repealed by 2005 c.835 §37]
285B.449 Effect of failure to comply or
default. (1) If a municipality fails to comply
with a contract entered into under ORS 285B.410 to 285B.482, the Oregon
Business Development Department may seek appropriate legal remedies to secure
any repayment due the Special Public Works Fund. If any municipality defaults
on payments due to the Special Public Works Fund under ORS 285B.410 to
285B.482, the State of Oregon may withhold any amounts otherwise due to the
municipality to apply to the indebtedness. The department may waive this right
to withhold.
(2)
Moneys withheld under subsection (1) of this section shall be deposited in the
Special Public Works Fund and shall be used to repay any account in the fund
from which funds were expended to pay obligations upon which the municipality
defaulted. [Formerly 285.727; 2009 c.830 §101]
285B.452
[Formerly 285.730; 2001 c.883 §31b; 2003 c.773 §40; repealed by 2005 c.835 §37]
285B.455 Special Public Works Fund; uses;
administration of fund. (1) There is created the Special
Public Works Fund, separate and distinct from the General Fund. Interest earned
by the Special Public Works Fund shall be credited to the fund. All moneys
credited to the Special Public Works Fund are appropriated continuously to the
Oregon Business Development Department for the Oregon Infrastructure Finance
Authority for the purposes set forth in this section.
(2)
The fund shall consist of all moneys credited to the fund, including:
(a)
Moneys appropriated to the fund by the Legislative Assembly or transferred to
the fund by the authority;
(b)
Earnings on the fund;
(c)
Repayment of financial assistance, including interest;
(d)
Moneys received from the federal government, other state agencies or local
governments;
(e)
Bond proceeds as authorized under ORS 285B.410 to 285B.482 or other law; and
(f)
Moneys from any other source, including but not limited to grants and gifts.
(3)
Moneys in the Special Public Works Fund may be invested as provided by ORS
293.701 to 293.820 and the earnings from the investments shall be credited to
the account in the Special Public Works Fund designated by the authority.
(4)
The authority shall administer the Special Public Works Fund.
(5)
The authority may establish other accounts within the Special Public Works Fund
for the payment of project costs, reserves, debt service payments, credit
enhancement, administrative costs and operation expenses or any other purpose
necessary to carry out ORS 285B.410 to 285B.482.
(6)
The authority may directly or indirectly grant, expend or loan moneys in the
fund or extend credit to:
(a)
Provide to municipalities any form of financial or other assistance that the
authority considers appropriate to assist communities with a project, including
the refinancing of temporary project financing.
(b)
Purchase goods or services related to a project on behalf of the municipality.
(c)
Provide state funds as a match for federal funds available for the administration
of the Community Development Block Grant program.
(d)
Finance administrative costs of the authority pursuant to ORS 285B.410 to
285B.482.
(e)
Provide annual grants on behalf of a municipality in the form of partial
repayment to bondholders of amounts owed.
(f)
Cover contracts that are issued to guaranty any portion of the obligation of a
municipality to finance a development project and that are not sold to the
State of Oregon. Guaranty contracts under this paragraph shall be payable
solely from moneys in the Special Public Works Fund, and shall not constitute a
debt or obligation of the State of Oregon. The authority may, on behalf of the
state, establish a special account in the fund and commit to deposit into the
account specified portions of existing and future allocations to the fund. The
commitments shall be made by rule of the department and shall constitute
covenants of the state for the benefit of the owners of obligations guaranteed
by the state pursuant to this section.
(7)
As used in this section, “administrative costs” includes the authority’s direct
and indirect costs for investigating and processing an application, developing
a contract, monitoring the use of funds by a municipality, investigating and
resolving budget discrepancies, closing a project and providing financial or
other assistance to a municipality. [Formerly 285.733; 2001 c.633 §5; 2001
c.883 §32; 2003 c.773 §41; 2003 c.800 §24; 2005 c.835 §4; 2007 c.783 §102a;
2007 c.804 §34; 2009 c.830 §102]
285B.458 Grants for assistance to
distressed or rural areas; minimum. Not less than
60 percent of the grants awarded from the Special Public Works Fund in any
biennium shall be used to provide assistance to distressed or rural areas. [Formerly
285.735; 2001 c.883 §32a; 2003 c.773 §42; 2005 c.835 §14]
285B.460 Funding and assistance for
planning projects. (1) The Oregon Infrastructure
Finance Authority may provide financial or other assistance to a municipality
for a planning project.
(2)
The planning project may be a stand-alone project.
(3)
The planning project may include an environmental action on a brownfield. For
purposes of this subsection:
(a)
“Brownfield” has the meaning given that term in ORS 285A.185.
(b)
“Environmental action” has the meaning given that term in ORS 285A.188. [2005
c.835 §8; 2009 c.11 §34; 2009 c.830 §103]
285B.461
[Formerly 285.737; 2001 c.883 §33; 2003 c.773 §43; repealed by 2005 c.835 §37]
285B.462 Funding and assistance for
emergency projects. (1) The Oregon Infrastructure
Finance Authority may provide financial or other assistance to a municipality
for an emergency project.
(2)
The authority may award grant funding to an emergency project only if federal
disaster relief assistance has been committed for the emergency project.
(3)
Assistance from the Special Public Works Fund for an emergency project may not
exceed the total local matching funds requirement for the federal disaster
relief assistance committed to the project. [2005 c.835 §9; 2009 c.11 §35; 2009
c.830 §104]
285B.464
[Formerly 285.753; 2003 c.773 §44; repealed by 2005 c.835 §37]
285B.465 Allowable costs of projects.
For purposes of ORS 285B.410 to 285B.482, the allowable costs of a project
include:
(1)
Financing costs, including capitalized interest;
(2)
Direct project management costs;
(3)
Costs of consultant services and expenses;
(4)
Construction costs and expenses;
(5)
Costs of property acquisition, including any easement or right of way directly
related to and necessary for the project;
(6)
Costs of acquiring off-site property for purposes directly related to the
project, such as wetland mitigation; and
(7)
Other costs that the Oregon Infrastructure Finance Authority determines to be
necessary or useful. [2005 c.835 §10; 2009 c.830 §105]
(Revenue Bond Financing)
285B.467 Eligibility for revenue bond
financing; rules; request for issuance; allowable costs.
(1) The Oregon Infrastructure Finance Authority shall determine eligibility for
revenue bond financing under ORS 285B.467 to 285B.479 of development projects
that have qualified under ORS 285B.419 to 285B.437 and 285B.449 pursuant to
rules adopted by the Oregon Business Development Department.
(2)
After a determination is made that a development project is eligible for
revenue bond financing under ORS 285B.467 to 285B.479, the department shall
forward a request for the issuance of revenue bonds to the State Treasurer, who
shall determine whether to issue revenue bonds.
(3)
When a project is determined to be eligible for revenue bond financing under
ORS 285B.467 to 285B.479, allowable costs as described in ORS 285B.465 may be
paid from bond proceeds.
(4)
Administrative expenses of the authority in processing applications and
investigating proposed projects and bond sales may not be derived from bond
proceeds.
(5)
The authority may pledge all or any portion of the existing or future assets
and receipts of the Special Public Works Fund to pay debt service on bonds
issued pursuant to ORS 285B.410 to 285B.482. The pledge shall take effect
immediately, without delivery of the pledged funds to third parties, and the
lien of the pledge shall be superior to all other liens of any nature.
(6)
The authority is authorized to establish separate accounts within the fund for
separate bond issues. [Formerly 285.740; 2001 c.883 §34; 2003 c.773 §45; 2005
c.835 §15; 2009 c.830 §106]
285B.470 Powers of authority.
The Oregon Infrastructure Finance Authority may:
(1)
Make all contracts, execute 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;
(2)
Enter into and perform contracts and agreements with municipalities as the
authority may consider proper and feasible for or concerning the planning,
construction, installation, lease or other acquisition, and the financing of
projects; and
(3)
Enter into covenants for the benefit of bond owners regarding the use and
expenditure of moneys in the Special Public Works Fund. [Formerly 285.743; 2003
c.773 §46; 2005 c.835 §16; 2007 c.783 §103; 2009 c.830 §107]
285B.473 Issuance of revenue bonds.
(1) At the request of the Oregon Business Development Department, the State
Treasurer may issue under ORS 285B.467 to 285B.479 and ORS chapter 286A revenue
bonds secured by moneys paid to the Special Public Works Fund pledged therefor
to finance or refinance in whole or part the cost of acquisition, construction,
reconstruction, improvement or extension of development projects. Refunding
bonds may be issued to refinance the revenue bonds.
(2)
The department or the State Treasurer may appoint bond counsel as prescribed in
ORS 286A.130. [Formerly 285.745; 2001 c.536 §2; 2003 c.773 §47; 2003 c.794 §241;
2005 c.835 §17; 2007 c.783 §104; 2009 c.830 §108]
285B.476 Application of law to revenue
bonds; proceeds; maximum duration of loans. (1)
ORS 285B.350 to 285B.362 and 285B.368 apply to revenue bonds issued under ORS
285B.467 to 285B.479.
(2)
The proceeds of revenue bonds issued and sold under ORS 285B.467 to 285B.479
shall be deposited in the Special Public Works Fund and used for the payment of
a loan to a municipality for a development project and costs of issuing the
revenue bonds.
(3)
A loan made with money derived from the sale of revenue bonds under this
section shall be made as other loans under ORS 285B.419 to 285B.437 and
285B.449 are made, except that the loan contract shall set forth a schedule of
payments that may not exceed the usable life of the contracted project. [Formerly
285.747; 2003 c.773 §48; 2005 c.835 §18]
285B.479 Nature of revenue bonds.
(1) Revenue bonds issued under ORS 285B.467 to 285B.479:
(a)
May not be payable from nor charged upon any funds other than the revenue
pledged to the payment thereof, except as provided in this section, nor shall
the state be subject to any liability thereon. No holder or holders of such
bonds shall ever have the right to compel any exercise of the taxing power of
the state to pay any such bonds or the interest thereon, nor to enforce payment
thereof against any property of the state except those moneys pledged therefor
in the Special Public Works Fund, under the provisions of ORS 285B.467 to
285B.479.
(b)
May not constitute a charge, lien or encumbrance, legal or equitable, upon any
property of the state, except those moneys paid to the Special Public Works
Fund.
(2)
A revenue bond issued under ORS 285B.467 to 285B.479 does not constitute a debt
of the State of Oregon or a lending of the credit of this state within the
meaning of any constitutional or statutory limitation. [Formerly 285.750; 2001
c.883 §35; 2007 c.783 §105]
285B.482 Revenue bonds as parity bonds;
consolidation of bond proceeds; loans and consolidated funds as security for
water or development projects. (1)
Notwithstanding any other law relating to revenue bonds issued and sold under
ORS 285B.467 to 285B.479 or ORS 285B.572, 285B.575 and 285B.578, revenue bonds
may be issued and sold as parity bonds.
(2)
Proceeds of revenue bonds issued and sold under ORS 285B.467 to 285B.479 or ORS
285B.572, 285B.575 and 285B.578, together with the investment earnings thereon,
may be consolidated into one or more funds or accounts and may be pledged to
the holders of revenue bonds issued to finance water projects, as defined in
ORS 285B.560, or development projects.
(3)
Any loan to a municipality made pursuant to ORS 285B.467 to 285B.479, 285B.560
to 285B.569 or 285B.572 to 285B.599, including loans funded in whole or in part
with the proceeds of revenue bonds and loans funded with moneys in the Water
Fund or the Special Public Works Fund, may be pledged to the holders of revenue
bonds issued to finance water projects or development projects.
(4)
Funds or accounts established by the Oregon Business Development Department or
the State Treasurer in connection with the issuance of revenue bonds under ORS
285B.467 to 285B.479 or ORS 285B.572, 285B.575 and 285B.578 and moneys held in
the funds and accounts, together with the investment earnings thereon, may be
consolidated into one or more funds or accounts and may be pledged to the
holders of revenue bonds issued to finance water projects or development
projects. [1997 c.800 §14; 2003 c.773 §49; 2005 c.835 §19; 2007 c.804 §35; 2009
c.830 §109]
285B.486 [2001
c.957 §10; renumbered 285C.530 in 2003]
285B.488 [2001
c.957 §11; renumbered 285C.533 in 2003]
INFRASTRUCTURE PROJECTS FOR SOUTHERN
OREGON
285B.500 Purpose of ORS 285B.500 to 285B.512;
legislative findings. (1) The Legislative Assembly
finds that:
(a)
It is a matter of statewide importance to increase the infrastructure capacity
of Coos, Jackson and Josephine Counties and the rest of southern Oregon.
(b)
The absence of such infrastructure capacity, the lack of inexpensive industrial
fuel and inadequate transportation facilities restrict national and
international trade and otherwise hinder the economic development of the
region.
(c)
State financial assistance to specified local projects in southern Oregon will
sustain and increase jobs, foster national and international trade, allow industrial
and commercial expansion and eliminate other negative effects caused by
infrastructure that is inadequate to support a vibrant and expanding economy.
(d)
It is desirable to make a present commitment of lottery revenues that are
expected to be received in the 1999-2001 and 2001-2003 biennia. A clear and
prompt financial commitment from the State of Oregon will allow the project
sponsors, in reliance on that commitment, to make prompt commitments to pay
their share. Prompt commitment by the project sponsors will enhance the
likelihood that other private or federal funds will be received for the
projects.
(2)
The Legislative Assembly declares that the purpose of ORS 285B.500 to 285B.512
and section 9, chapter 644, Oregon Laws 1997, is to obligate the State of
Oregon to pay the amounts specified in ORS 285B.500 to 285B.512 and section 9,
chapter 644, Oregon Laws 1997, from future lottery revenues. The obligation of
the state to pay the amounts specified in section 9, chapter 644, Oregon Laws,
1997, and in grant agreements authorized by ORS 285B.506 is limited to, and
conditioned solely on, the availability of unobligated net lottery proceeds and
any other moneys lawfully credited to the Oregon Unified International Trade
Fund. Neither the faith and credit nor any of the taxing power of the State of
Oregon are pledged or otherwise committed by ORS 285B.500 to 285B.515 and
777.277 to 777.287 and section 9, chapter 644, Oregon Laws 1997, and the
commitments of the State of Oregon under ORS 285B.500 to 285B.515 and 777.277
to 777.287 and section 9, chapter 644, Oregon Laws 1997, and any grant
agreement shall not constitute a debt or liability of the state within the
meaning of section 7, Article XI of the Oregon Constitution. [1997 c.644 §7]
Note:
285B.500 to 285B.515 were enacted into law by the Legislative Assembly but were
not added to or made a part of ORS chapter 285B by legislative action. See
Preface to Oregon Revised Statutes for further explanation.
285B.503 Oregon Unified International
Trade Fund; uses. (1) There is established in the
State Treasury, separate and distinct from the General Fund, the Oregon Unified
International Trade Fund. Interest earned by the Oregon Unified International
Trade Fund shall be credited to the fund. The moneys in the fund are
continuously appropriated to the Oregon Business Development Department for the
Oregon Infrastructure Finance Authority for:
(a)
Paying all or a portion of the costs of:
(A)
A project for the extension and improvement of Jackson County Airport runway.
(B)
A project for the extension of a natural gas pipeline to the Coos Bay and North
Bend area from a location near Roseburg.
(C)
A project for improvements to the Klamath Falls International Airport
maintained by the City of Klamath Falls.
(b)
Transfer to the Oregon Port Revolving Fund created by ORS 285A.708.
(2)
A separate account within the Oregon Unified International Trade Fund shall be
established for each project listed in subsection (1) of this section.
(3)
The Oregon Unified International Trade Fund shall consist of moneys allocated
to the fund under section 9, chapter 644, Oregon Laws 1997, and such other
moneys as may be appropriated to the fund by the Legislative Assembly,
including interest on such moneys. [1997 c.644 §8; 2009 c.830 §110]
Note: See
note under 285B.500.
285B.506 Grant agreements; maximum grant
amount; required provisions; assignment of right to receive grant moneys;
agreement not to constitute state debt or liability.
(1) The administrator of the Oregon Infrastructure Finance Authority shall
enter into a grant agreement with the primary sponsor of a project listed in
ORS 285B.503 that commits the State of Oregon to make the deposits specified in
section 9, chapter 644, Oregon Laws 1997, and commits the Oregon Infrastructure
Finance Authority to pay those deposits, plus earnings, to the primary sponsor
as soon as funds are available in the appropriate account of the Oregon Unified
International Trade Fund and are required by the primary sponsor for payment of
project costs. Notwithstanding any other law, the commitment of the State of
Oregon and the authority under this section shall be conditioned solely on
receipt by this state of unobligated net lottery proceeds sufficient to make
the deposits specified in section 9, chapter 644, Oregon Laws 1997.
(2)
The total amount paid to the primary sponsor under the grant agreement shall
not exceed the amount deposited in the appropriate account for the sponsor’s
project in the Oregon Unified International Trade Fund, plus any interest
earnings on the amounts in the account. The grant agreement shall:
(a)
Pledge the unobligated net lottery proceeds to pay the amounts due to the
primary sponsor under the grant agreement;
(b)
Specify the administrative procedures for making payments to the primary
sponsor;
(c)
Provide for notification to the administrator if the primary sponsor determines
that it is unable to undertake the project;
(d)
Allow assignment of the right to receive amounts payable under the grant
agreement to third parties;
(e)
Obligate the primary sponsor to remit any unexpended grant funds and any
earnings thereon to the State of Oregon after the sponsor’s project is complete
and all its costs have been paid; and
(f)
Contain other terms and conditions that are necessary or appropriate, as
determined by the administrator, to implement ORS 285B.500 to 285B.512 and
section 9, chapter 644, Oregon Laws 1997, to protect the interests and
investments of the State of Oregon in the projects specified in ORS 285B.503.
(3)
The grant agreement, when executed by the administrator and accepted by the
primary sponsor, shall be a valid, binding and irrevocable contractual
obligation of the State of Oregon in accordance with its terms. However,
amounts due under the grant agreement shall be payable solely from the
unobligated net lottery proceeds required by section 9, chapter 644, Oregon
Laws 1997, to be deposited in the appropriate account in the Oregon Unified
International Trade Fund.
(4)
The primary sponsor may pledge or assign its right to receive amounts due under
the grant agreement as security for any contractual obligation the primary
sponsor undertakes to pay or finance costs of the project. Any pledge or
assignment authorized by ORS 285B.500 to 285B.515 and 777.277 to 777.287 and
section 9, chapter 644, Oregon Laws 1997, shall be valid and binding upon the
primary sponsor, the authority, the State of Oregon and all other persons from
the date it is made. The unobligated net lottery proceeds so pledged shall be
immediately subject to the lien of the pledge without physical delivery, filing
or other act, and the lien of the pledge shall be superior to all other claims
and liens of any kind whatsoever. Upon notice from the primary sponsor that it
has pledged the unobligated net lottery proceeds or assigned the right to
receive amounts due under the grant agreement, the authority shall fully
cooperate with the primary sponsor and the pledgee or assignee to give effect
to the pledge or assignment, including but not limited to acknowledging in
writing to the primary sponsor and the pledgee or assignee the existence and
validity of the pledge or assignment and agreeing that amounts due under the
grant agreement shall be paid to the pledgee or assignee or into the custodial
accounts established for the benefit of the pledgee or assignee.
(5)
The grant agreement shall not contain provisions or be construed or enforced in
any manner that may cause the grant agreement to constitute a debt or liability
of the state that violates section 7, Article XI of the Oregon Constitution. [1997
c.644 §10; 2009 c.830 §111]
Note: See
note under 285B.500.
285B.509 Agreements between primary sponsor
and United States. The primary sponsors of projects
listed in ORS 285B.503 are authorized to enter into agreements with agencies of
the United States for the project and, notwithstanding any other provision of
law, may each agree to be bound by any requirement imposed by an Act of the
United States Congress as a condition of federal participation in the project. [1997
c.644 §11]
Note: See
note under 285B.500.
285B.512 End of lottery allocations upon
certification by administrator of authority. (1)
The deposit of unobligated net lottery proceeds to an account in the Oregon
Unified International Trade Fund shall cease if and when the administrator of
the Oregon Infrastructure Finance Authority certifies in writing that deposits
are no longer required because:
(a)
Sufficient funds are on hand in the account to pay all amounts required to be
paid under the grant agreement;
(b)
All amounts required to be paid under the grant agreement have been paid; or
(c)
The primary sponsor has notified the administrator pursuant to the grant
agreement that the primary sponsor is unable to undertake the project.
(2)
Upon receipt of the administrator’s written certification pursuant to
subsection (1) of this section, the State Treasurer shall thereafter credit any
amounts remaining in the account that are not required to pay amounts due under
the grant agreement, and any lottery revenues that otherwise would have been
deposited in the account under section 9, chapter 644, Oregon Laws 1997, to the
Administrative Services Economic Development Fund. In addition, any unexpended
grant funds and earnings which are remitted to the State of Oregon pursuant to
the grant agreement shall be credited to the Administrative Services Economic
Development Fund. [1997 c.644 §12; 2009 c.830 §112]
Note: See
note under 285B.500.
285B.515 “Primary sponsor” and “project
sponsor” defined. As used in ORS 285B.500 to
285B.512 and section 9, chapter 644, Oregon Laws 1997, “primary sponsor” or “project
sponsor” means a city, county, agency or person who acts as a financial
contributor to a project listed in ORS 285B.503, as determined by the Oregon
Infrastructure Finance Authority in a grant agreement under ORS 285B.506. [1997
c.644 §13; 2009 c.830 §113]
Note: See
note under 285B.500.
LOTTERY BONDS FOR INFRASTRUCTURE
PROJECTS
285B.530 Definitions for ORS 285B.530 to
285B.548. As used in ORS 285B.530 to 285B.548,
unless the context requires otherwise:
(1)
“Infrastructure lottery bonds” means the bonds authorized to be issued under
ORS 285B.533 for the purpose of financing infrastructure projects.
(2)
“Infrastructure projects” includes:
(a)
A water project defined in ORS 285B.560; and
(b)
Payment of any state financial obligations to the federal government under the
Safe Drinking Water Act. [1997 c.800 §16; 1999 c.44 §24]
Note:
285B.530 to 285B.548 were enacted into law by the Legislative Assembly but were
not added to or made a part of ORS chapter 285B by legislative action. See
Preface to Oregon Revised Statutes for further explanation.
285B.533 Issuance of infrastructure
lottery bonds; amount; use of bond proceeds. (1)
Infrastructure lottery bonds shall be issued under ORS 286A.560 to 286A.585
only at the request of the Director of the Oregon Business Development
Department. Infrastructure lottery bonds may be issued in an amount sufficient
to provide no more than $6 million of net proceeds to pay costs of
infrastructure projects, plus the amounts required to pay bond-related costs.
(2)
The net proceeds from the sale of the infrastructure lottery bonds shall be
allocated to the Oregon Business Development Department for the Oregon Infrastructure
Finance Authority for the State of Oregon’s match of federal moneys under the
Safe Drinking Water Act.
(3)
The net proceeds from the sale of the infrastructure lottery bonds that are
available to pay costs of infrastructure projects shall be credited to the
Water Fund created by ORS 285B.563. All such net proceeds are appropriated
continuously to the Oregon Business Development Department for the authority
only for payment of costs of infrastructure projects described in subsection
(2) of this section and for payment of bond-related costs that are allocable to
infrastructure lottery bonds.
(4)
The authority and any municipality receiving proceeds of infrastructure lottery
bonds shall, if so directed by the Oregon Department of Administrative Services,
take any action specified by the Oregon Department of Administrative Services
that is necessary to maintain the excludability of lottery bond interest from
gross income under the United States Internal Revenue Code. [1997 c.800 §17;
1999 c.44 §25; 2007 c.783 §105a; 2009 c.830 §114]
Note: See
note under 285B.530.
285B.536 [1997
c.800 §18; repealed by 1999 c.44 §29]
285B.539 [1997
c.800 §19; repealed by 1999 c.44 §29]
285B.542 [1997
c.800 §20; repealed by 1999 c.44 §29]
285B.545 [1997
c.800 §21; repealed by 1999 c.44 §29]
285B.548 Amount of infrastructure lottery
bonds. Infrastructure lottery bonds may not be
issued in excess of the amounts permitted by ORS 286A.035. [1997 c.800 §22;
2007 c.783 §106]
Note: See
note under 285B.530.
285B.551 Issuance of additional lottery
bonds; uses; maximum amounts; Economic Infrastructure Project Fund.
(1) Pursuant to ORS 286A.560 to 286A.585, at the request of the Oregon
Department of Administrative Services, after the department consults with the
Oregon Business Development Department, the State Treasurer is authorized to
issue lottery bonds:
(a)
To provide financial and other assistance, including but not limited to loans
and grants, to municipalities, ports and other persons and entities in accordance
with the laws governing use of moneys in the Special Public Works Fund created
by ORS 285B.455, the Water Fund created by ORS 285B.563, the Safe Drinking
Water Revolving Loan Fund created by ORS 285A.213, the Oregon Port Revolving
Fund created by ORS 285A.708, the Brownfields Redevelopment Fund created by ORS
285A.188, the Oregon Business Development Fund created by ORS 285B.092 and the
Marine Navigation Improvement Fund created by ORS 777.267.
(b)
To fund Oregon’s share of the costs of the Columbia River channel deepening
project.
(c)
To fund Oregon’s share of the costs of studies and ecosystem restoration
projects in the lower Columbia River estuary designed to improve habitat for
listed endangered or threatened species of Columbia River anadromous salmonids.
(2)
The use of lottery bond proceeds is authorized based on the following findings:
(a)
The financial and other assistance to municipalities, ports and other persons
and entities will assist in the establishment and expansion of businesses in Oregon
and in the construction, improvement and expansion of infrastructure, community
and port facilities and other facilities that comprise the physical foundation
for industrial and commercial activity and provide the basic framework for
continued and expanded economic opportunities and quality communities
throughout Oregon.
(b)
The Columbia River channel deepening project is necessary to allow newer,
larger steamships access to Oregon and Washington deep draft ports. A deeper
shipping channel will allow the Columbia River to continue as a world leader in
agricultural exports and as a key trade corridor for farms and businesses
throughout Oregon and the region.
(c)
Such financial and other assistance to municipalities, ports and other persons
and entities and the deepening of the Columbia River channel will therefore
promote economic development within this state, and thus the use of net
proceeds derived from the operation of the Oregon State Lottery to pay debt
service on lottery bonds issued under this section to provide such financial
and other assistance to municipalities, ports and other persons and entities
and to pay a portion of the costs of deepening the Columbia River channel is an
authorized use of state lottery funds under section 4, Article XV of the Oregon
Constitution, and ORS 461.510.
(d)
The current lower Columbia River estuary habitat for listed endangered or
threatened species of Columbia River anadromous salmonids could be improved
through ecosystem restoration projects. The use of the Oregon State Lottery to
pay debt service on lottery bonds issued under this section to pay for studying
how the estuary could be improved and to pay for ecosystem restoration projects
are authorized uses of state lottery funds.
(3)(a)
The aggregate principal amount of lottery bonds issued pursuant to subsection
(1)(a) of this section for financial and other assistance to municipalities,
ports and other persons and entities may not exceed the sum of $276,226,252 and
an additional amount estimated by the State Treasurer to be necessary to pay
bond-related costs. The aggregate principal amount of lottery bonds issued
pursuant to subsection (1)(b) of this section for the Columbia River channel
deepening project may not exceed the sum of $17.7 million and an additional
amount estimated by the State Treasurer to be necessary to pay bond-related
costs.
(b)
The Oregon Department of Administrative Services may not request the issuance
of lottery bonds under subsection (1)(b) of this section until the Director of
the Oregon Business Development Department determines that a final
environmental impact statement has been issued and a record of decisions has
been submitted to Congress by the United States Army Corps of Engineers,
Congress has authorized the Columbia River channel deepening project, and the
Washington sponsors’ shares of the costs of the Columbia River channel
deepening project have been committed.
(4)
The net proceeds of lottery bonds issued pursuant to subsection (1)(a) and (b)
of this section shall be deposited in the Economic Infrastructure Project Fund,
which is hereby established in the State Treasury separate and distinct from
the General Fund. Interest earned by the Economic Infrastructure Project Fund
shall be credited to the fund. All moneys in the Economic Infrastructure
Project Fund are continuously appropriated to the Oregon Business Development
Department for any purpose for which moneys in the Special Public Works Fund
created by ORS 285B.455 may be used, any purpose for which moneys in the Water
Fund created by ORS 285B.563 may be used, any purpose for which moneys in the
Safe Drinking Water Revolving Loan Fund created by ORS 285A.213 may be used,
any purpose for which moneys in the Oregon Port Revolving Fund created by ORS
285A.708 may be used, any purpose for which moneys in the Brownfields
Redevelopment Fund created by ORS 285A.188 may be used, any purpose for which
moneys in the Oregon Business Development Fund created by ORS 285B.092 may be
used and any purpose for which moneys in the Marine Navigation Improvement Fund
created by ORS 777.267 may be used. The Director of the Oregon Business
Development Department shall allocate the moneys deposited in the Economic
Infrastructure Project Fund for the purposes described in this subsection in accordance
with the priorities developed by the Oregon Business Development Commission in
accordance with ORS 285A.020. However, the director shall transfer from the
Economic Infrastructure Project Fund and deposit into the Channel Deepening
Account of the Marine Navigation Improvement Fund the proceeds of any lottery
bonds sold to finance a portion of the costs of the Columbia River channel
deepening project. Upon determining the relative allocation of moneys deposited
in the Economic Infrastructure Project Fund among the purposes described in
this subsection, the director shall transfer from the Economic Infrastructure
Project Fund, and deposit into each of the other funds described in this
subsection, the amounts so allocated. Notwithstanding any other provision of
law governing the funds described in this subsection, the funds described in
this subsection may be credited with moneys transferred from the Economic
Infrastructure Project Fund by the director in accordance with this subsection.
(5)
The aggregate principal amount of lottery bonds issued pursuant to subsection
(1)(c) of this section for the costs of studies and ecosystem restoration
projects in the lower Columbia River estuary may not exceed the sum of $750,000
and an additional amount estimated by the State Treasurer to be necessary to
pay bond-related costs. The net proceeds of lottery bonds issued pursuant to
subsection (1)(c) of this section shall be deposited in the Oregon Business,
Innovation and Trade Fund created by ORS 285A.227 and may be used only for the
Oregon nonfederal share of United States Army Corps of Engineers Columbia River
estuary projects authorized by Congress prior to August 9, 2001. The director
may not request the issuance of lottery bonds under subsection (1)(c) of this section
until Congress and Washington have authorized their respective shares of the
costs of the studies and ecosystem restoration projects in the lower Columbia
River estuary.
(6)
The proceeds of lottery bonds issued pursuant to this section may be used only
for the purposes set forth in this section and for bond-related costs. [1999
c.702 §1; 2001 c.96 §6; 2001 c.942 §1; 2003 c.741 §4; 2005 c.788 §1; 2007 c.746
§1; 2007 c.804 §78; 2009 c.830 §115; 2009 c.906 §1a; 2011 c.624 §1]
Note:
285B.551 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 285B or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
SAFE DRINKING WATER PROJECTS
(Generally)
285B.560 Definitions for ORS 285B.560 to
285B.599. As used in ORS 285B.560 to 285B.599:
(1)
“Direct project management costs” means new expenses incurred by a municipality
solely to support, plan for and manage an infrastructure project, funded in
whole or in part through financial assistance under ORS 285B.560 to 285B.599,
during the planning and construction phases of the project.
(2)
“Fund” means the Water Fund.
(3)
“Municipality” has the meaning given that term in ORS 285B.410.
(4)
“Safe drinking water project” means a project for constructing or improving a
drinking water system or a water development project, as defined in ORS 541.700
(6)(a), (b) and (d) to (f), that is owned and operated by a municipality.
(5)
“Waste water system improvement project” means a project for constructing or
improving a system for waste water collection or treatment, including storm
drainage systems.
(6)
“Water project” means a safe drinking water project or a waste water system
improvement project. [Formerly 285.755; 2001 c.883 §36; 2009 c.830 §121]
285B.563 Water Fund; uses; conditions for
making loan; grant awards; investment of fund moneys; rules and policies.
(1) There is established in the State Treasury, separate and distinct from the
General Fund, the Water Fund. Interest earned by the Water Fund shall be
credited to the fund. All moneys in the Water Fund are continuously
appropriated to the Oregon Business Development Department for the Oregon
Infrastructure Finance Authority for the purposes described in ORS 285B.560 to
285B.599, including the direct project management costs.
(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 authority
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 authority 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 authority may award a grant if a loan is not feasible due to:
(A)
Financial hardship to the municipality, as determined by the authority, based
on consideration of anticipated water service charges or anticipated waste
water service charges, the per capita income of the municipality and any other
factors as the department by rule may establish; and
(B)
Special circumstances of the water project.
(d)
The authority may also award grants from the fund to:
(A)
Identify and implement sustainable technologies and practices;
(B)
Build asset management capacity for municipalities;
(C)
Plan for strategic initiatives that focus on the regionalization of water
systems; or
(D)
Provide third party technical assistance to communities in the development of
water systems that include asset management components.
(e)
The authority may determine the amount of grant or loan funding on a
case-by-case basis.
(3)
The moneys in the fund may also be used to assist the authority in selling
revenue bonds on behalf of municipalities in order to carry out the purposes of
ORS 285B.560 to 285B.599.
(4)
Moneys in the Water Fund may be invested as provided by ORS 293.701 to 293.820.
The earnings from the investments and other program income shall be credited to
the Water Fund.
(5)
The Water Fund shall consist of:
(a)
Moneys appropriated to the fund by the Legislative Assembly.
(b)
Moneys transferred to the fund by the authority from the Special Public Works
Fund created by ORS 285B.455.
(c)
Moneys transferred to the Water Fund by the Water Resources Commission from the
Water Development Fund created by Article XI-I(1) of the Oregon Constitution.
(d)
Moneys from any federal, state or other grants.
(e)
Proceeds of revenue bonds issued under ORS 285B.575.
(f)
Earnings on the Water Fund.
(6)
The authority 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 Oregon Health
Authority. The rules adopted under this subsection for safe drinking water
projects shall:
(a)
Require the installation of meters on all new active service connections from
any distribution lines funded with moneys from the fund or from the proceeds of
revenue bonds issued under ORS 285B.572 to 285B.578.
(b)
Require a plan, to be adopted by a municipality receiving financial assistance
from the fund, for installation of meters on all service connections throughout
the drinking water system not later than two years after the completion of a
safe drinking water project.
(8)(a)
The Oregon Infrastructure Finance Authority shall manage the Water Fund and any
expenditures from accounts in the fund and transfers between accounts so that
the fund provides a continuing source of financing consistent with ORS
285B.413.
(b)
If necessary to ensure repayment of bonds issued under ORS 285B.560 to
285B.599, the authority may reduce the value of the fund when the authority:
(A)
Finds that without a reduction in fund value, bonds secured by the fund are
likely to be in default; and
(B)
Imposes a moratorium on grants until the requirements of paragraph (a) of this
subsection are satisfied.
(9)(a)
The authority may charge administrative costs to the fund, but not to moneys
segregated in the account created by subsection (11) of this section, to pay
for administrative costs incurred by the authority.
(b)
To the extent permitted by federal law, administrative costs of the authority
may be paid from bond proceeds.
(10)
The authority may establish other accounts within the Water Fund for the
payment of water projects costs, reserves, debt service payments, credit
enhancements, costs of issuing revenue bonds, administrative costs and
operating expenses or any other purpose necessary to carry out ORS 285B.560 to
285B.599.
(11)
There is created within the Water Fund a separate and distinct account for the
proceeds from the sale of water development general obligation bonds issued for
safe drinking water projects and credited to the special account under this
section. Any investment earnings thereon shall be segregated in and
continuously appropriated to a special, separately accounted for subaccount of
this account. Moneys credited to this account shall be maintained separate and
distinct from moneys credited to subaccounts created under subsection (10) of
this section. Notwithstanding ORS 285B.566 or subsection (4) of this section,
all repayments of moneys loaned from the account created by this subsection,
including interest on the moneys, shall be credited to the Water Development
Administration and Bond Sinking Fund created by ORS 541.830.
(12)
As used in this section, “administrative costs” include the authority’s direct
and indirect costs for investigating and processing an application, developing
a contract, monitoring the use of funds by a municipality, investigating and
resolving a budget discrepancy, closing a project and providing financial and
other assistance to a municipality. [Formerly 285.757; 1999 c.509 §45; 2001
c.883 §37; 2003 c.773 §50; 2005 c.835 §23; 2007 c.783 §107; 2007 c.804 §36;
2009 c.595 §200; 2009 c.830 §122a]
285B.566 Use of receipts.
All payments, receipts and interest from financial awards made for water
projects shall be retained and accumulated in the Water Fund and used to
finance water projects including payments to holders of revenue bonds issued
under ORS 285B.575. [Formerly 285.760]
285B.569 When constitutional restrictions
apply to use of certain funds. If moneys are
transferred to the Water Fund from the sources described in ORS 285B.563 (5)(b)
to (e), all constitutional restrictions, statutes and rules regulating the use
of the moneys transferred from these funds shall apply to the use of those
moneys in the Water Fund. [Formerly 285.763]
(Revenue Bond Financing of Safe Drinking
Water Projects)
285B.572 Eligibility of project for
revenue bond financing; rules; decision to issue bonds.
(1) The Oregon Infrastructure Finance Authority shall determine eligibility of
a water project for revenue bond financing under ORS 285B.560 to 285B.599
pursuant to rules adopted by the Oregon Business Development Department.
(2)
Upon determining that a water project is eligible for revenue bond financing,
the authority shall forward a description of the project to the State
Treasurer. The State Treasurer shall determine whether to issue revenue bonds. [Formerly
285.950; 2009 c.830 §123]
285B.575 Issuance of revenue bonds.
(1) At the request of the Oregon Business Development Department, the State
Treasurer may issue in the name of the State of Oregon revenue bonds secured by
moneys paid to the Water Fund and pledged to finance or refinance in whole or
in part the cost of a water project. The revenue bonds issued under this
section shall be issued in the manner prescribed by ORS chapter 286A, and
refunding bonds may be issued to refinance the revenue bonds.
(2)
The department or the State Treasurer may appoint bond counsel as prescribed
under ORS 286A.130. [Formerly 285.952; 2001 c.536 §3; 2003 c.794 §242; 2007
c.783 §108; 2009 c.830 §124]
285B.578 Nature of revenue bonds.
(1) Revenue bonds issued under ORS 285B.575:
(a)
Shall not be payable from nor charged upon any fund other than the revenue
pledged to the payment of the revenue bonds, except as provided in this
section, nor shall the state be subject to any liability on the bonds. No
holder of revenue bonds shall ever have the right to compel any exercise of the
taxing power of the state to pay any such bonds or the interest on the bonds,
nor to enforce payment of the bonds against any property of the state except
those moneys pledged in the Water Fund, under the provisions of ORS 285B.560 to
285B.599.
(b)
Shall not constitute a charge, lien or encumbrance, legal or equitable, upon
any property of the state, except those moneys paid to the Water Fund.
(2)
A revenue bond issued under ORS 285B.575 shall not constitute a debt of the
state or a lending of the credit of the state within the meaning of any
constitutional or statutory limitation. [Formerly 285.954; 2001 c.883 §38]
285B.581 Repayment plans; required
provisions; loan contract; sources for repayment.
(1) Any loan of moneys to a municipality by the state shall include a plan for repayment
by the municipality of moneys borrowed from the Water Fund for a water project
and interest on those moneys at a rate expressly specified. The repayment plan:
(a)
Shall provide for evidence of debt assurance of, and security for, repayment by
the municipality as is considered necessary by the Oregon Infrastructure
Finance Authority.
(b)
May set forth the allocation of special assessments or contractual
responsibilities among the owners of benefited properties for repayment to the
municipality of the amount of the loan.
(c)
May not exceed the usable life of the contracted project or 25 years from the
year of project completion, whichever is less.
(2)
Notwithstanding any other provision of law or any restriction on indebtedness
contained in a charter, a municipality may borrow from the fund by entering
into a loan contract with the authority. The contract may be repaid from:
(a)
The revenues of any water project, including special assessment revenues;
(b)
Amounts withheld under ORS 285B.599;
(c)
The general fund of the municipality; or
(d)
Any other source.
(3)
A loan contract authorized under subsection (2) of this section may provide
that a portion of the proceeds of the loan be applied to fund a reserve fund to
secure the repayment of the loan or secure the repayment of revenue bonds
issued to fund the loan.
(4)
A loan contract authorized under subsection (2) of this section shall be
authorized by an ordinance, order or resolution adopted by the governing body
of the municipality. [Formerly 285.956; 2001 c.883 §39; 2005 c.835 §22; 2009
c.830 §125]
285B.584 Powers of authority.
The Oregon Infrastructure Finance Authority may:
(1)
Make all contracts, execute all instruments and do all things necessary or
convenient for the exercise of the powers granted by this section, or for the
performance of its covenants or duties, or in order to secure the payment of
its bonds;
(2)
Enter into and perform such contracts and agreements with municipalities as the
authority may consider proper and feasible for or concerning the planning,
construction, installation, lease or other acquisition, and the financing of
water projects; and
(3)
Enter into covenants for the benefit of bond owners regarding the use and
expenditure of moneys in the Water Fund. [Formerly 285.958; 2007 c.783 §109;
2009 c.830 §126]
285B.587 Deposit and use of bond proceeds.
(1) Proceeds of revenue bonds issued and sold under ORS 285B.572 to 285B.578
that are to be used to fund loans to municipalities for water projects shall be
deposited in the Water Fund.
(2)
Proceeds of revenue bonds issued and sold under ORS 285B.572 to 285B.578 that
are to be used to pay the costs of issuing the revenue bonds or that are to be
applied to fund a reserve fund for the revenue bonds shall be deposited either
in the Water Fund or in a trust account or fund held by any trustee for the
revenue bonds. Moneys on deposit in the Water Fund may be transferred to any
trustee for the revenue bonds to be applied to the payment of the costs of
issuing the revenue bonds or to be applied to fund a reserve fund for the
revenue bonds. [Formerly 285.960]
285B.590 Other forms of financial
assistance. In addition to making loans to
municipalities for water projects, the Oregon Infrastructure Finance Authority
may provide any other form of financial or other assistance that the authority
may consider appropriate to assist municipalities with water projects,
including direct purchase by the authority of goods and services related to a
water project. [Formerly 285.962; 2001 c.883 §39a; 2009 c.830 §127]
285B.593 Technical assistance grants and
loans; uses; rules. Out of the moneys in the Water
Fund, the Oregon Infrastructure Finance Authority may make technical assistance
grants and loans to municipalities as specified by the Oregon Business
Development Department by rule. Technical assistance grants and loans shall be
for the purpose of completing preliminary planning, legal, fiscal and economic
investigations, reports and studies to determine the economic and engineering feasibility
of water projects. [Formerly 285.964; 2003 c.773 §51; 2009 c.830 §128]
285B.596 Funding of distressed area or
nonurban water projects. Not less than 60 percent of the
grants awarded from the Water Fund shall be used to provide assistance to distressed
area or nonurban water projects. [Formerly 285.966; 2001 c.883 §39b; 2003 c.773
§52]
285B.599 Effect of failure to repay to
Water Fund; default. (1) If a municipality fails to
comply with a contract entered into under ORS 285B.581, the Oregon Business
Development Department may seek appropriate legal remedies to secure any
repayment due the Water Fund. If any municipality defaults on payments due the
fund, the State of Oregon may withhold any amounts otherwise due the
municipality to apply to the indebtedness. The department may waive the right
to withhold moneys under this subsection.
(2)
Moneys withheld under subsection (1) of this section shall be deposited in the
fund and shall be used to repay any account in the fund from which funds were
expended to pay obligations upon which the municipality defaulted. [Formerly
285.968; 2009 c.830 §129]
(Oregon Business Retention and Expansion
Program)
Note:
Sections 1 to 8, 10 and 11, chapter 549, Oregon Laws 2011, provide:
Sec. 1. Definitions.
As used in sections 1 to 9 of this 2011 Act:
(1)
“Certified employer” means an eligible employer certified under section 3 of
this 2011 Act.
(2)
“Compensation” has the meaning given that term in ORS 314.610.
(3)
“Eligible employee” means a new full-time employee whose compensation averages
at least 150 percent of the county or state average in annual per employee
compensation, whichever is less, who is hired by a certified employer after the
employer is certified under section 3 of this 2011 Act.
(4)
“Eligible employer” means an employer that, in the month in which the employer
submits an application under section 4 of this 2011 Act:
(a)
Has at least 150 employees;
(b)
Plans to hire at least 50 new full-time employees in this state whose
compensation will average at least 150 percent of the county or state average
in annual per employee compensation, whichever is less;
(c)
Operates in an industry in the traded sector, as that term is defined in ORS
285A.010; and
(d)
Is not a retailer, as that term is defined in ORS 72.8010.
(5)
“Estimated incremental Oregon Business Retention and Expansion Program tax
revenues” means the Oregon personal income tax revenues that are estimated
pursuant to section 7 of this 2011 Act to be substantially equivalent to the
amount of tax that eligible employees of an eligible employer will be required
to pay under ORS chapter 316 as a result of compensation paid to the eligible
employees by the eligible employer in the two consecutive tax years beginning
with the tax year following the tax year in which the employer receives
certification under section 3 of this 2011 Act. [2011 c.549 §1]
Sec. 2. Rules.
The Oregon Business Development Department may adopt rules that the department
determines are necessary to:
(1)
Further define the terms defined in section 1 of this 2011 Act in a manner
consistent with section 1 of this 2011 Act;
(2)
Implement the duties of the department under sections 1 to 9 of this 2011 Act;
and
(3)
Carry out the purposes of sections 1 to 9 of this 2011 Act. [2011 c.549 §2]
Sec. 3. Certification of eligible
employers; time period to approve application.
(1) Subject to standards and procedures that the Oregon Business Development
Department shall establish by rule, the department shall certify eligible
employers to participate in the Oregon Business Retention and Expansion Program
established in section 6 of this 2011 Act. The department may establish
certification standards regarding:
(a)
Employers maintaining certain levels of payroll or per-employee compensation
including benefits;
(b)
Employers consulting with vendors in this state before entering into contracts;
(c)
Eligible employers not laying off current employees in order to achieve hiring
goals;
(d)
Specifying the types and amounts of employer expenses that are the reasonable
costs of financing, developing, furnishing and operating a facility to be used
by the certified employer in the course of business under section 6 of this
2011 Act; and
(e)
Verifying that an employer is an eligible employer.
(2)
The department must approve or deny an application submitted under section 4 of
this 2011 Act within 120 days after the date a complete application is filed.
[2011 c.549 §3]
Sec. 4. Application for certification;
requirements. (1) An employer may apply to the
Oregon Business Development Department for certification under section 3 of
this 2011 Act.
(2)
The application shall be made in writing in a form prescribed by the
department.
(3)
The application must include a verified statement by the employer that the
employer would not plan on hiring 50 or more new full-time employees in this
state but for the availability of the loans provided by the Oregon Business
Retention and Expansion Program established under section 6 of this 2011 Act.
[2011 c.549 §4]
Sec. 5. Revocation of certificate.
(1) The Oregon Business Development Department may revoke a certificate issued
under section 3 of this 2011 Act if the department finds that:
(a)
The certificate was obtained by fraud or misrepresentation; or
(b)
The certified employer fails to meet the requirements of section 3 of this 2011
Act.
(2)
If the certificate is revoked pursuant to subsection (1) of this section, the
department shall proceed to recoup any loan moneys disbursed to the employer
pursuant to section 6 of this 2011 Act. [2011 c.549 §5]
Sec. 6. Oregon Business Retention and
Expansion Program; purpose; agreements; contents; loans.
(1) In consultation with the Department of Revenue, the Oregon Business
Development Department shall establish and administer the Oregon Business
Retention and Expansion Program. The purpose of the program is to provide
forgivable loans to certified employers to allow for expanded operations and
increased hiring.
(2)
The Oregon Business Development Department shall enter into agreements with
certified employers. Agreements must contain:
(a)
Detailed performance measures, established by the department by rule, with
which certified employers must comply; and
(b)
The requirement that the certified employer pay to the Oregon Business
Development Department the amount of any loan made under this section where the
certified employer did not meet established performance measures.
(3)
The total loan amount distributed to a certified employer under this section
may not exceed the total amount of the estimated incremental Oregon Business
Retention and Expansion Program tax revenues for the certified employer.
(4)
Moneys loaned under this section must be distributed to the certified employer
no later than 120 days following certification under section 3 of this 2011
Act. [2011 c.549 §6]
Sec. 7. Department estimate of program tax
revenues; methodology. The Director of the Oregon
Business Development Department, in consultation with the Director of the
Department of Revenue, shall:
(1)
Specify the methodology for estimating incremental Oregon Business Retention
and Expansion Program tax revenues; and
(2)
Estimate incremental Oregon Business Retention and Expansion Program tax
revenues. [2011 c.549 §7]
Sec. 8. Oregon Business Retention and
Expansion Program Fund. The Oregon Business Retention
and Expansion Program Fund is established in the State Treasury, separate and
distinct from the General Fund. The Oregon Business Retention and Expansion
Program Fund consists of amounts deposited in the fund as required by section 9
of this 2011 Act and other moneys transferred to the fund. Amounts in the fund
are continuously appropriated to the Oregon Business Development Department for
the purposes of making the loans provided by the agreements entered into under
section 6 of this 2011 Act and paying the costs and expenses of the Oregon
Business Development Department in connection with the implementation and
administration of sections 1 to 9 of this 2011 Act. [2011 c.549 §8]
Sec. 10. Report to legislature.
The Oregon Business Development Department shall report to the committees of
the Legislative Assembly with authority over the subject area of economic
development during the 2013 regular session of the Legislative Assembly as
specified in ORS 171.010. [2011 c.549 §10]
Sec. 11. Application.
Sections 1 to 9 of this 2011 Act apply to tax years beginning on or after
January 1, 2012, and before January 1, 2022. [2011 c.549 §11]
285B.650
[Formerly 285.560; 1999 c.460 §1; 2001 c.684 §20; 2001 c.957 §1; 2003 c.662 §14;
renumbered 285C.050 in 2003]
285B.653
[Formerly 285.562; 1999 c.460 §2; 2003 c.662 §18; renumbered 285C.080 in 2003]
285B.656
[Formerly 285.563; 2003 c.662 §16; renumbered 285C.065 in 2003]
285B.659
[Formerly 285.564; renumbered 285C.075 in 2003]
285B.662
[Formerly 285.565; 2003 c.662 §20; renumbered 285C.090 in 2003]
285B.665
[Formerly 285.573; 1999 c.460 §6; renumbered 285C.055 in 2003]
285B.668
[Formerly 285.575; 2003 c.662 §15; renumbered 285C.060 in 2003]
285B.671 [Formerly
285.577; 2003 c.662 §21; renumbered 285C.105 in 2003]
285B.672 [2001
c.957 §2; 2003 c.662 §23; renumbered 285C.095 in 2003]
285B.673 [2001
c.957 §2b; 2003 c.662 §24; renumbered 285C.100 in 2003]
285B.674
[Formerly 285.580; 2003 c.662 §22; renumbered 285C.110 in 2003]
285B.675 [2001
c.957 §5; repealed by 2003 c.662 §55]
285B.677
[Formerly 285.583; 1999 c.460 §7; 2003 c.662 §19; renumbered 285C.085 in 2003]
285B.680
[Formerly 285.585; 2003 c.662 §25; renumbered 285C.115 in 2003]
285B.683 [1997
c.835 §2; 2003 c.662 §26; renumbered 285C.120 in 2003]
285B.686
[Formerly 285.587; 2003 c.662 §47; renumbered 285C.245 in 2003]
285B.689
[Formerly 285.588; 2003 c.662 §48; renumbered 285C.250 in 2003]
285B.692
[Formerly 285.593; 2003 c.662 §27; renumbered 285C.125 in 2003]
285B.695
[Formerly 285.595; 2003 c.662 §28; renumbered 285C.130 in 2003]
285B.698
[Formerly 285.597; 2003 c.662 §35; renumbered 285C.175 in 2003]
285B.701
[Formerly 285.598; 1999 c.1104 §3; 2003 c.662 §31; renumbered 285C.145 in 2003]
285B.704
[Formerly 285.600; 1999 c.1104 §3a; 2003 c.662 §39; renumbered 285C.200 in
2003]
285B.705 [1999
c.1104 §4b; repealed by 2003 c.662 §55]
285B.707
[Formerly 285.603; 1999 c.1104 §5; 2001 c.957 §3; 2003 c.662 §29; renumbered
285C.135 in 2003]
285B.710
[Formerly 285.605; 2003 c.662 §41; renumbered 285C.215 in 2003]
285B.713
[Formerly 285.607; 2001 c.957 §4; 2003 c.662 §36; renumbered 285C.180 in 2003]
285B.714 [2001
c.883 §39d; 2003 c.662 §38; renumbered 285C.190 in 2003]
285B.716
[Formerly 285.610; repealed by 2003 c.662 §55]
285B.719
[Formerly 285.613; 2003 c.662 §30; renumbered 285C.140 in 2003]
285B.722
[Formerly 285.615; 2003 c.662 §42; renumbered 285C.220 in 2003]
285B.723 [1999
c.1104 §2; repealed by 2003 c.662 §55]
285B.725
[Formerly 285.616; 1999 c.1104 §7; repealed by 2003 c.662 §55]
285B.726 [1997
c.835 §44; 1999 c.1104 §19; repealed by 2003 c.662 §55]
285B.728
[Formerly 285.617; 1999 c.1104 §8; 2003 c.662 §46; renumbered 285C.240 in 2003]
285B.731 [Formerly
285.620; 2003 c.662 §50; renumbered 285C.260 in 2003]
ENTREPRENEURIAL DEVELOPMENT
285B.740 Legislative intent; delegation of
loan program responsibilities; powers of department; loan fees.
It is the intent of the Legislative Assembly that in the administration of ORS
285B.740 to 285B.758, the Oregon Business Development Department work closely
with regional economic development organizations, community development
corporations, small business development centers and organizations that promote
and assist small businesses owned and operated by women and minorities. The
department, to the maximum extent feasible and consistent with prudent
financial controls, may delegate the administration and operation of the loan
program created by ORS 285B.740 to 285B.758 to local and community-based
entities. To carry out the policy described in this section:
(1)
The department may contract with any nonprofit corporation or agency with
experience and expertise in business finance to administer all or any part of
the loan program created by ORS 285B.740 to 285B.758.
(2)
When entering into an agreement for the administration of the loan program by
any nonprofit corporation or agency, the department may agree to waive any
claims it may have against such corporation or agency for losses arising out of
the normal course of business, so long as the corporation or agency does not
act negligently or fraudulently in providing loans under ORS 285B.740 to
285B.758.
(3)
When entering into an agreement to have a nonprofit corporation or agency
administer the loan program created by ORS 285B.740 to 285B.758, the department
may pay loan origination and loan servicing fees to the corporation or agency.
The amount of such fees may be determined in the agreement between the department
and the administering corporation or agency. [1991 c.688 §12; 2007 c.804 §79;
2009 c.830 §130]
285B.743 Application for entrepreneurial
development loan; eligibility; rules. (1) Any
individual or business firm may file with the Oregon Business Development
Department an application to borrow money from the Oregon Entrepreneurial
Development Loan Fund as provided in ORS 285B.740 to 285B.758. The application
shall be filed in such a manner and contain or be accompanied by such
information as the department may require.
(2)
Upon receipt of an application under this section, the department shall
determine whether the applicant is eligible to receive a loan under ORS
285B.740 to 285B.758. The department may adopt rules for processing
applications from applicants that are not eligible to receive a loan under this
section. [1991 c.688 §7; 2001 c.684 §21; 2007 c.804 §37; 2009 c.830 §131]
285B.746 Conditions required for loan
approval. (1) The Oregon Business Development
Department may approve a loan requested in an application filed under ORS
285B.743 if, after investigation, it finds that:
(a)
The applicant is enrolled in a small business management program with a small
business development center or certified entity;
(b)
The applicant has prepared a business plan for the business, which has been
reviewed by a small business development center or other entity certified by
the department to review business plans; and
(c)
The applicant is not effectively owned or controlled by another business entity
or other person that, either by itself or when combined with the applicant, is
not eligible for a loan under ORS 285B.740 to 285B.758.
(2)
In addition to the requirements for loan approval described in subsection (1)
of this section, in order to obtain a loan under ORS 285B.740 to 285B.758, an
applicant must also satisfy one of the following conditions:
(a)
The business must have annual revenues of $500,000 or less in the 12-month
period immediately preceding the date of application.
(b)
The business or proposed business must be owned, in whole or in part, by a
person certified as having a severe disability by the Department of Human
Services or the Commission for the Blind. [1991 c.688 §8; 1997 c.147 §5; 2007
c.70 §72; 2007 c.804 §38; 2009 c.830 §132; 2010 c.106 §§3,7; 2011 c.558 §4]
285B.749 Additional conditions for loan
approval; maximum term and amount of loan. (1)
The Oregon Business Development Department may approve an entrepreneurial
development loan under ORS 285B.740 to 285B.758 if, after investigation, it
finds that:
(a)
The loan has a reasonable prospect of repayment from cash flow and collateral
and is secured by good and sufficient collateral; and
(b)
The applicant provides equity funds for the project in the form of cash or
property in an amount equal to or greater than 20 percent of the amount of the
loan.
(2)
The department shall determine the amount of the initial loan and any
subsequent loan to the borrower. The maximum of all loans to a borrower from
the Oregon Entrepreneurial Development Loan Fund may not exceed $70,000.
(3)
Entrepreneurial development loans shall be made for a period not exceeding five
years at a rate of interest that does not exceed 18 percent per annum. [1991
c.688 §9; 1997 c.147 §6; 2007 c.804 §39; 2009 c.830 §133; 2010 c.106 §§4,8;
2011 c.558 §5]
285B.752 [1991
c.688 §10; 1997 c.147 §7; 2001 c.684 §22; repealed by 2007 c.804 §86]
285B.755 [1991
c.688 §11; 2007 c.70 §73; repealed by 2007 c.804 §86]
285B.758 Oregon Entrepreneurial Development
Loan Fund; uses. (1) There is established in the
State Treasury, separate and distinct from the General Fund, the Oregon
Entrepreneurial Development Loan Fund. All moneys in the fund are continuously
appropriated to the Oregon Business Development Department for the following
purposes:
(a)
Administrative costs of the department incurred in processing loan
applications, investigating the eligibility of loan applicants and servicing
outstanding loans;
(b)
Paying for loan origination and loan servicing by contractors under ORS 285B.740
to 285B.758; and
(c)
Payment of loans to applicants under ORS 285B.740 to 285B.758.
(2)
The Oregon Entrepreneurial Development Loan Fund shall consist of:
(a)
Moneys appropriated to the fund by the Legislative Assembly;
(b)
Interest earned on moneys in the fund; and
(c)
Moneys received as repayment of principal and interest on loans made from the
fund under ORS 285B.740 to 285B.758. [1991 c.688 §13; 2009 c.830 §134]
285B.765 [1991
c.688 §6; 1997 c.61 §12; repealed by 2001 c.684 §38]
285B.766 [2001
c.932 §5; renumbered 285C.300 in 2003]
285B.767 [2001
c.932 §6; renumbered 285C.303 in 2003]
285B.770 [2001
c.932 §7; renumbered 285C.306 in 2003]
285B.773 [2001
c.932 §8; renumbered 285C.309 in 2003]
285B.776 [2001
c.932 §9; renumbered 285C.320 in 2003]
285B.781 [1997
c.835 §36; 1999 c.1104 §10; 2001 c.292 §1; 2003 c.239 §1; renumbered 285C.400
in 2003]
285B.783 [1997
c.835 §37; 1999 c.1104 §11; 2001 c.292 §2; renumbered 285C.403 in 2003]
285B.786 [1997
c.835 §38; 1999 c.1104 §12; 2001 c.292 §5; 2003 c.662 §56a; renumbered 285C.409
in 2003]
285B.789 [2001
c.292 §3; 2003 c.558 §1; 2003 c.662 §57; renumbered 285C.412 in 2003]
285B.790 [2001
c.292 §4; renumbered 285C.415 in 2003]
285B.793 [1997
c.835 §39; 1999 c.1104 §13; 2001 c.292 §6; renumbered 285C.420 in 2003]
285B.796 [2001
c.292 §7; 2003 c.662 §59; renumbered 285C.406 in 2003]
285B.825 [2001
c.888 §2; renumbered 285C.450 in 2003]
285B.827 [2001
c.888 §3; renumbered 285C.453 in 2003]
285B.830 [2001
c.888 §4; renumbered 285C.456 in 2003]
285B.833 [2001
c.888 §5; renumbered 285C.459 in 2003]
285B.836 [2001
c.888 §6; renumbered 285C.480 in 2003]
285B.839 [2001
c.888 §7; 2003 c.773 §53; renumbered 285C.465 in 2003]
285B.842 [2001
c.888 §8; renumbered 285C.468 in 2003]
285B.845 [2001
c.888 §9; renumbered 285C.471 in 2003]
285B.848 [2001
c.888 §10; renumbered 285C.462 in 2003]
_______________