2007 Oregon Code - Chapter 285b :: Chapter 285B - Economic Development II
Chapter 285B
— Economic Development II
2007 EDITION
ECONOMIC DEVELOPMENT II
ECONOMIC DEVELOPMENT
BUSINESS DEVELOPMENT PROJECTS
285B.050Â Definitions
for ORS 285B.050 to 285B.098
285B.053Â Borrowing
money from Oregon Business Development Fund for projects
285B.056Â Fees;
rules
285B.059Â Conditions
for commission approval of project; limits
285B.062Â Agreement
for project loan; required provisions; interest rate
285B.065Â Loans
in distressed areas exempt from requirements of ORS 285B.059 and 285B.062
285B.068Â Payment
of moneys for project; applicant to pay percentage of loan principal to Oregon
Business Development Fund
285B.080Â Director
as agent; limitation on authority
285B.081Â Repayment
and collection; rules
285B.083Â Use
of refinancing and other financial assistance
285B.086Â Authority
to lend funds for joint governmental projects or match money; form of loan
application; loan limit
285B.089Â Loan
contract; required provisions
285B.092Â Oregon
Business Development Fund; uses
285B.093Â Oregon
Targeted Development Account; purpose
285B.098Â Status
of loan to county or municipality
SMALL BUSINESS DEVELOPMENT
(Generally)
285B.120Â
285B.123Â Purpose
(Capital Access for Small Businesses)
285B.126Â Definitions
for ORS 285B.126 to 285B.147
285B.129Â Purpose
of ORS 285B.126 to 285B.147
285B.132Â Contracts
with financial institutions for capital access; contents of contract; status of
information
285B.135Â Loss
reserve accounts; rules
285B.138Â Enrollment
of qualified loan in program; procedure; fee; transfers to loss reserve
accounts; rules
285B.141Â Claims
for reimbursement of losses; amounts subject to reimbursement
285B.147Â Capital
Access Fund; use; investment earnings; administrative expenses
(
285B.165Â Purpose
of ORS 285B.165 to 285B.171
285B.168Â Grants;
application; authorized recipients and uses; eligibility; report
285B.171Â Short
title
(Miscellaneous)
285B.174Â Programs
to assist businesses in procuring government contracts and grants
MICROENTERPRISE DEVELOPMENT
285B.178Â Definitions
for Microenterprise Development Act
285B.179Â Purposes
of Microenterprise Development Act
285B.186Â Short
title
CREDIT ENHANCEMENT FUND
285B.200Â Definitions
for ORS 285B.200 to 285B.218
285B.203Â Purpose
of Credit Enhancement Fund
285B.206Â Duties
of department under ORS 285B.200 to 285B.218; rules
285B.209Â Fees
and terms for loan and credit guarantees for program under ORS 285B.200 to
285B.218
285B.215Â Credit
Enhancement Fund; sources; uses
285B.218Â Pledge
to assure repayment of loans or other credit
REGIONAL ECONOMIC DEVELOPMENT
285B.230Â Definitions
for ORS 285B.230 to 285B.269
285B.233Â Legislative
finding; purpose
285B.236Â Guidelines
for regional investment strategies; rules
285B.239Â Required
elements of regional investment strategies; rural set aside; regional board
dedication of moneys
285B.242Â Adoption
of regional investment strategies; regional boards; hearing; review; approval
285B.245Â Coordination
of regional investment strategies with other economic development efforts
285B.248Â All
counties to be included in region
285B.260Â Regional
Investment Fund; purpose; uses; rules
285B.263Â Expenditure
of Regional Investment Fund; distribution
285B.264Â Evaluations
required following distributions from Rural Investment Fund and Regional
Investment Fund
285B.266Â Strategic
Reserve Fund; sources; uses
285B.269Â Short
title
INDUSTRY DEVELOPMENT PROJECTS
285B.280Â Definition
of “traded sector”
285B.283Â Policy
285B.286Â Industry
development activities
285B.290Â Industry
Outreach Fund
STATE REVENUE BONDS FOR INDUSTRIAL, COMMERCIAL, SOLID WASTE DISPOSAL, RESEARCH
AND DEVELOPMENT USES
285B.320Â Purpose
of ORS 285B.320 to 285B.371
285B.323Â Definitions
for ORS 285B.320 to 285B.371
285B.326Â Determination
of eligibility of projects for financing; fees
285B.329Â Review
by Oregon Economic and Community Development Commission; exception
285B.335Â Powers
of Economic and Community Development Department; lease requirements
285B.338Â Powers
of
285B.341Â Limitation
on state power
285B.344Â Authority
to issue bonds
285B.350Â Method
of issuing bonds
285B.353Â Administration
expenses
285B.356Â Refunding
bonds
285B.359Â Validity
of bonds
285B.362Â Covenants
in bonds
285B.365Â Limitations
of bonds; recitals
285B.368Â Powers
and rights of bondholders
285B.371Â Loans
to eligible projects when state holds no interest
INFRASTRUCTURE PROJECTS
(Generally)
285B.410Â Definitions
for ORS 285B.410 to 285B.482
285B.413Â Legislative
findings
285B.419Â Administration
of Special Public Works Fund; rules and policies
(Community Facilities Projects)
285B.422Â Funding
of community facilities projects; criteria for project funding
(Financial Assistance for Projects)
285B.428Â Application
for funds
285B.437Â Contract
with municipality
285B.440Â Maximum
amounts of grants; standards; rules
285B.449Â Effect
of failure to comply or default
285B.455Â Special
Public Works Fund; uses
285B.458Â Funding
of distressed area and rural area infrastructure projects
285B.460Â Funding
and assistance for municipal planning projects
285B.462Â Funding
and assistance for municipal emergency projects
285B.465Â Allowable
costs of projects
(Revenue Bond Financing)
285B.467Â Standards
for eligibility for revenue bond financing; rules
285B.470Â Powers
of department over revenue bond financing
285B.473Â Issuance
of revenue bonds
285B.476Â Application
of law to revenue bonds; proceeds; maximum duration of loans
285B.479Â Nature
of revenue bonds
285B.482Â Revenue
bonds as parity bonds; consolidation of bond proceeds; loans and consolidated
funds as security for infrastructure, community facility and water bonds
INFRASTRUCTURE PROJECTS FOR
285B.500Â Purpose
of ORS 285B.500 to 285B.512; legislative findings
285B.503Â Oregon
Unified International Trade Fund; purposes; sources
285B.506Â Grant
agreements; maximum grant amount; terms of agreement; assignment of right to
receive grant moneys; agreement not to constitute state debt
285B.509Â Agreements
between primary sponsor and
285B.512Â End
of lottery allocations upon certification by Director of Economic and Community
Development Department
285B.515 “Primary
sponsor” defined for ORS 285B.500 to 285B.512
LOTTERY BONDS FOR INFRASTRUCTURE PROJECTS
285B.530Â Definitions
for ORS 285B.530 to 285B.548
285B.533Â Issuance
of infrastructure lottery bonds; amount; use of bond proceeds
285B.548Â Amount
of infrastructure lottery bonds
285B.551Â Issuance
of additional lottery bonds; amount; use of bond proceeds; Economic
Infrastructure Project Fund
(Coos County Airport District Terminal
Expansion Project)
(Temporary provisions relating to Coos County Airport District Terminal
Expansion Project are compiled as notes following ORS 285B.551)
(
(Temporary provisions relating to Hillsboro Downtown Parking Facility
Project are compiled as notes following ORS 285B.551)
SAFE DRINKING WATER PROJECTS
(Generally)
285B.560Â Definitions
for ORS 285B.560 to 285B.599
285B.563Â Water
Fund; uses; sources; maintenance of fund value; rules; coordination with other
agencies on safe drinking water projects
285B.566Â Use
of receipts from projects
285B.569Â When
constitutional restrictions apply to use of certain funds
(Revenue Bond Financing of Safe Drinking
Water Projects)
285B.572Â Standards
for eligibility of water projects; determination to issue bonds; rules
285B.575Â Issuance
of revenue bonds
285B.578Â Nature
of revenue bonds
285B.581Â Repayment
plans for loan; authority of municipalities
285B.584Â Authority
of department
285B.587Â Deposit
and use of bond proceeds
285B.590Â Other
forms of financial assistance
285B.593Â Technical
assistance grants and loans; purposes; rules
285B.596Â Funding
of distressed area or nonurban water projects
285B.599Â Repayment
to Water Fund
ENTREPRENEURIAL DEVELOPMENT
285B.740Â Policy
285B.743Â Application
for entrepreneurial development loan; eligibility; rules
285B.746Â Conditions
required for loan approval
285B.749Â Additional
conditions for loan approval; maximum term and amount of loan
285B.758Â
     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 Economic and Community
Development Commission determines is needed to diversify the economic base of
an area but not including:
     (A) Construction of office buildings,
including corporate headquarters; and
     (B) Retail businesses, shopping centers or
food service facilities.
     (3) “Collateral” has the meaning given
that term in ORS 79.0102 for property subject to a security interest.
     (4) “Commission” means the Oregon Economic
and Community Development Commission established under ORS 285A.040.
     (5) “County” means any county or federally
recognized Oregon Indian tribe.
     (6) “Emerging small business” has the
meaning given that term by ORS 200.005.
     (7) “Fund” means the Oregon Business
Development Fund.
     (8) “Local development group” means any public
or private corporation that has as one of its primary purposes, as stated in
its articles of incorporation, charter or bylaws, the promotion of economic
development in any part of the State of Oregon.
     (9) “Municipality” means any city,
municipal corporation or quasi-municipal corporation.
     (10) “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]
     285B.053
Borrowing money from
     (2) Any applicant receiving a loan from
the fund shall report to the Economic and Community Development 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]
     285B.056
Fees; rules. The Oregon
Economic and Community Development Commission shall charge fees and establish
rules to underwrite loans from the Oregon Business Development Fund. [Formerly
285.410; 2007 c.804 §42]
     285B.059
Conditions for commission approval of project; limits. (1) The Oregon Economic and Community
Development Commission may approve a business development project proposed in
an application filed under ORS 285B.050 to 285B.098 if, after investigation,
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) The total amount of moneys loaned from
the fund for any business development project shall not exceed 50 percent of
the cost of the project.
     (3) Except when the applicant is a county
or municipality or when there are payments other than the scheduled principal
and interest payments, no money shall be loaned from the fund for any business
development project unless there exists a commitment from a commercial or
private lender, or a local development group, to participate in the financing
of the project.
     (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, not
less than 15 percent of all moneys available for lending from the fund are
reserved for loans to certified emerging small business enterprises which are
located in or draw their workforces from within distressed areas as determined
by the Economic and Community Development Department in cooperation with the
Employment Department of this state. Any amounts reserved for loans to such
businesses that are not loaned in one fiscal year shall be added to the amount
reserved for loans to such businesses in the subsequent fiscal year. If the
Economic and Community Development Department is unable to obtain a sufficient
number of approvable applications to meet the requirements of this subsection,
it may, notwithstanding the limitations imposed by ORS 285B.050 (2)(g)(B), make
loans to service and retail businesses operated by emerging small business
enterprises. [Formerly 285.413; 1999 c.509 §27; 2003 c.167 §2; 2007 c.804 §43]
     285B.062
Agreement for project loan; required provisions; interest rate. If the Oregon Economic and Community
Development Commission approves the business development project, the
commission, on behalf of the state, and the applicant may enter into a loan
contract of not more than $1 million, secured by good and sufficient
collateral, which shall set forth, among other matters:
     (1) A plan for repayment by the applicant
to the Oregon Business Development Fund of moneys borrowed from the fund used
for the business development project with interest charged on those moneys at
the rate of not less than one percentage point more than the prevailing
interest rate on United States Treasury bills, notes or bonds of a comparable
term, as determined by the commission. The repayment plan, among other matters:
     (a) Shall provide for commencement of
repayment by the applicant of moneys used for the business development project
and interest thereon no later than one year after the date of the loan contract
or at such other time as the commission may provide.
     (b) May provide for reasonable extension
of the time for making any repayment in emergency or hardship circumstances if
approved by the commission.
     (c) Shall provide for such evidence of
debt assurance of, and security for, repayment by the applicant as is
considered necessary by the commission.
     (d) Shall set forth a schedule of payments
and the period of loan which shall not exceed the usable life of the contracted
project or 25 years from the date of the contract, whichever is less, and shall
also set forth the manner of determining when loan payments are delinquent. The
payment schedule shall include repayment of interest which accrues during any
period of delay in repayment authorized by paragraph (a) of this subsection,
and the payment schedule may require payments of varying amounts for collection
of accrued interest.
     (e) Shall set forth a procedure for formal
declaration of default of payment by the commission, including formal
notification of all relevant federal, state and local agencies; and further, a
procedure for notification of all relevant federal, state and local agencies
that declaration of default has been rescinded when appropriate.
     (f) 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]
     285B.065
Loans in distressed areas exempt from requirements of ORS 285B.059 and
285B.062. The Economic and
Community 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]
     285B.068
Payment of moneys for project; applicant to pay percentage of loan principal to
     (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]
     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; limitation on authority. (1) The Oregon Economic and Community Development Commission may
appoint the Director of the Economic and Community Development Department as
its 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 directorÂ’s sole discretion to approve loans for business development
projects in the amount of $100,000 or less and to disburse funds for such
projects. [Formerly 285.433]
     285B.081
Repayment and collection; rules. The Economic and Community Development Department shall develop rules
governing repayment of loans to the Oregon Business Development Fund and
collection of moneys owed the fund. The department may take any action
permitted by statute or rule that the department deems necessary for repayment
of the loan. [2007 c.804 §49]
     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. 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
Authority to lend funds for joint governmental projects or match money; form of
loan application; loan limit.
(1) The Oregon Economic and Community 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]
     285B.089
Loan contract; required provisions. If the Oregon Economic and Community Development Commission approves
an application for the loan of moneys authorized by ORS 285B.086, the
commission shall enter into a loan contract, secured by good and sufficient
collateral as determined by the commission, with the applicant that provides,
among other matters:
     (1) That the loan bear interest at the
same rate of interest as provided in ORS 285B.062 (1).
     (2) That the contract shall set forth a
schedule of payments including interest and principal for the period of the
loan, which shall not exceed the usable life of the contracted project or 25
years from the date of the contract, whichever is less, and shall set forth the
manner of determining when loan payments are delinquent. The same schedule
shall include repayment of interest which accrues during any period of delay in
repayment authorized by ORS 285B.050 to 285B.098, and the repayment schedule
may require payments of varying amounts for collection of that accrued
interest. However, the commission may make provisions for extensions of time in
making repayment if the delinquencies are caused by acts of God or other
conditions beyond the control of the applicant and the security will not be
impaired thereby.
     (3) Such provisions as the commission
considers necessary to insure expenditure of the moneys loaned for the purposes
provided in ORS 285B.086, including all provisions of ORS 285B.059. [Formerly
285.440; 2007 c.804 §46]
     285B.092
     (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 commissionÂ’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]
     285B.093
     (2) The purpose of the Oregon Targeted
Development Account is to promote cooperation and foster partnership among the
commission, the Economic and Community Development Department and financial
institutions in
     (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]
     285B.095 [Formerly 285.445; repealed by 2007 c.804 §86]
     285B.098
Status of loan to county or municipality. 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]
SMALL
BUSINESS DEVELOPMENT
(Generally)
     285B.120
     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]
(Capital
Access for Small Businesses)
     285B.126
Definitions for ORS 285B.126 to 285B.147. As used in ORS 285B.126 to 285B.147, unless the context requires
otherwise:
     (1) “Brownfield” or “brownfields” has the
meaning given that term in ORS 285A.185.
     (2) “Capital access program” means the
program established by ORS 285B.126 to 285B.147.
     (3) “Environmental action” has the meaning
given that term in ORS 285A.188.
     (4) “Financial institution” means a
financial institution, as defined in ORS 706.008.
     (5) “Loss reserve account” means an
account in the State Treasury or any financial institution that is established
and maintained by the Economic and Community Development Department for the
benefit of a financial institution participating in the capital access program.
     (6) “Qualified business” means any person,
conducting business for profit or not for profit, that is authorized to conduct
business in the State of
     (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
     (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 285.507; 2007 c.804 §50]
     285B.129
Purpose of ORS 285B.126 to 285B.147. It is the purpose of ORS 285B.126 to 285B.147 to establish a capital
access program under which the State of Oregon will provide public fiscal resources
to assist Oregon financial institutions to overcome obstacles and constraints
in meeting the full range of economically sound financing needs of Oregon
businesses. [Formerly 285.510; 2007 c.804 §51]
     285B.132
Contracts with financial institutions for capital access; contents of contract;
status of information. (1)
The Economic and Community Development Department may contract with any
financial institution for the purpose of allowing the financial institution to
participate in the capital access program established by ORS 285B.126 to
285B.147.
     (2) A contract between the 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
institutionÂ’s loss reserve account when the financial institution makes a
qualified loan to a qualified business.
     (c) That the department will pay moneys in
the loss reserve account, not exceeding an amount equal to the total amount
credited to the loss reserve account, to the financial institution to reimburse
the institution for any financial loss incurred as a result of any qualified loan
made under the capital access program established by ORS 285B.126 to 285B.147.
     (d) That the liability of the State of
     (e) That the financial institution shall
provide such information as the department may require, including financial
information that is identifiable with, or identifiable from, the financial
records of a particular customer who is the recipient of a qualified loan.
     (f) For such other terms as the department
may require.
     (3) A financial institution is not subject
to ORS 192.555 (1) when the financial institution provides information to the
department as required by subsection (2)(e) of this section. [Formerly 285.513;
2007 c.804 §52]
     285B.135
Loss reserve accounts; rules.
(1) The Economic and Community Development Department shall establish a loss
reserve account for each financial institution with which the department makes
a contract under ORS 285B.132.
     (2) The loss reserve account for a
financial institution shall consist of moneys paid as fees by borrowers and the
financial institution under ORS 285B.138 and moneys transferred to the account
from the Capital Access Fund under ORS 285B.138.
     (3) Notwithstanding ORS chapter 293 or
295, the department may establish and maintain loss reserve accounts with any
financial institution under such policies as the department may adopt. The
department may establish rules to encourage financial institutions to
participate in the capital access program.
     (4) All moneys in a loss reserve account
established under ORS 285B.126 to 285B.147 are the property of the State of
     285B.138
Enrollment of qualified loan in program; procedure; fee; transfers to loss
reserve accounts; rules. (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 Economic and
Community Development Department of the loan within 30 days after the loan is
made. The notification shall be in writing on a form prescribed by the
department.
     (2) When making a qualified loan that will
be enrolled under the capital access program, the financial institution shall
require the qualified business to which the loan is made to pay a fee of not
less than one and one-half percent of the principal amount of the loan but not
more than three and one-half percent of such principal amount. The financial
institution shall also pay a fee in an amount equal to the fee paid by the
borrower. The financial institution shall deliver the fees collected under this
subsection to the department for deposit in the loss reserve account for the
institution.
     (3) When depositing fees collected under
subsection (2) of this section to the credit of the loss reserve account for a
financial institution, the department shall transfer an amount that is not less
than the total amount of the fees paid by the borrower and the financial
institution from the Capital Access Fund to the loss reserve account for the
institution.
     (4) Notwithstanding subsections (1) to (3)
of this section, the department may adopt rules providing that, for qualified
loans to businesses in distressed areas or for use in an environmental action
on brownfields, the department may transfer an amount that is not less than 150
percent of the total amount of the fees paid by the borrower and the financial
institution from the Capital Access Fund to the loss reserve account of the
institution. The total amount transferred under this section may not exceed 40
percent of the moneys appropriated to the fund. For purposes of this
subsection, “distressed areas” shall have the meaning given that term by the
department by rule. [Formerly 285.517; 2007 c.804 §54]
     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
Claims for reimbursement of losses; amounts subject to reimbursement. (1) The Economic and Community Development
Department shall establish procedures under which financial institutions
participating in the capital access program established by ORS 285B.126 to
285B.147 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 285.520]
     285B.144 [Formerly 285.525; 2007 c.354 §14; repealed
by 2007 c.804 §86]
     285B.147
Capital Access Fund; use; investment earnings; 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 Economic and
Community Development Department for the purpose of making payments to loss
reserve accounts established under ORS 285B.126 to 285B.147.
     (2) Moneys in the Capital Access Fund,
with the approval of the State Treasurer, may be invested as provided by ORS
293.701 to 293.820, and the earnings from such investment shall be credited to
the Capital Access Fund.
     (3) The Capital Access Fund shall consist
of:
     (a) Moneys appropriated to the fund by the
Legislative Assembly.
     (b) Interest earned on moneys in the fund.
     (c) Moneys returned to the fund from loss
reserve accounts or other sources.
     (4) If the department deems retrieval of
interest earned on loss reserve accounts appropriate, the department may
transfer into the fund up to 50 percent of the interest earned on moneys in
loss reserve accounts.
     (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.126 to 285B.147. [Formerly
285.527; 2007 c.804 §55]
     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]
(
     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; authorized recipients and uses; eligibility; report. (1) The Economic and Community Development
Department may make grants available to a community college district, a
community college service district or, with the concurrence of the Commissioner
for Community College Services and the Chancellor of the Oregon University
System, a state university to assist in the formation, improvement and
operation of small business development centers. If a community college
district, a community college service district or a state university is unable
to adequately provide services in a specific geographic area, the department
may make grants available to other service providers as determined by the
department. The grant application shall include:
     (a) Plans for providing small business
owners and managers individual counseling, to the greatest extent practicable,
in subject areas critical to small business success;
     (b) A budget for the year for which a
grant is requested, including cost apportionment among the Economic and
Community Development Department, small business clients, the community
college, state university or other service providers and other sources;
     (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 Economic and Community Development
Department.
     (4) Subject to the approval of the
department, a grant recipient may subcontract funds received under this section
to any other entity that is eligible to receive funding under this section.
     (5) The grant recipient shall submit a
final report to the department after the distribution of grant funds and the
delivery of services to the proposed business clients. The report shall state
whether the plan and related budget have met the applicable criteria as
described in the recipientÂ’s application for the grant period.
     (6) As used in this section, “state
university” means a state institution of higher education listed in ORS
352.002. [Formerly 285.543; 2001 c.148 §4; 2003 c.773 §15; 2007 c.804 §18]
     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, state universities as defined in ORS 285B.168 and
community colleges may develop programs to assist Oregon businesses with the
procurement of government contracts and grants. Small business development
centers established under ORS 285B.165 to 285B.171 may assist with these
programs. [Formerly 285.550; 2001 c.148 §5; 2007 c.804 §19]
     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 department
may adopt by rule a definition of “microenterprise” to give the term the
meaning given in 15 U.S.C. 6901 as amended or altered.
     (4) “Microentrepreneur” means an
individual conducting a microenterprise.
     (5) “Microlending” means the practice of
lending moneys to microenterprises or microentrepreneurs.
     (6) “Statewide microenterprise support
organization” means a community development corporation, a nonprofit
development organization, a nonprofit social services organization or another
nonprofit entity that serves as an intermediary between the Economic and
Community Development Department and local microenterprise support
organizations.
     (7) “Training and technical assistance”
means services and support offered to microenterprises and microentrepreneurs. “Training
and technical assistance” includes, but is not limited to, services to enhance
business development, asset building, business planning, marketing, management
skills and access to financial services.
     (8) “Very low income” means income
adjusted for family size that does not exceed 150 percent of the poverty level
determined under 42 U.S.C. 9902, as amended and in effect on June 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]
     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 Economic and Community
Development Department to engage in contractual relationships with statewide
microenterprise support organizations that have the capacity to administer
grants to local microenterprise support organizations, subject to ORS 285B.178
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]
     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 Economic and Community 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 Economic and Community Development Department as financial institutions
for purposes of ORS 285B.200 to 285B.218.
     (5) “Qualified business” means any
existing or proposed business that, except when located within a distressed
area, as defined by the Economic and Community Development Department, sells
goods or services in markets for which national or international competition
exists or that owns, occupies, operates or has entered into an agreement to
own, occupy or operate real property containing a brownfield, as defined in ORS
285A.185. The term includes professional services companies providing services
to traded sector industries and other entities within and outside of this
state.
     (6) “Value-added agricultural products”
means agricultural products that have been processed, transformed or refined to
the point where they may be distributed to a final consumer without further
processing, transformation or refining. The term also includes agricultural
products that are processed, transformed or refined for distribution to other
than final consumers when such processing, transformation or refining
represents a substantial increment in value as determined by the Economic and
Community Development Department in consultation with the State Department of
Agriculture. [Formerly 285.466; 1999 c.247 §4; 2007 c.804 §56]
     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
     (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 under ORS 285B.200 to 285B.218; rules. (1) The Economic and Community Development
Department shall develop a program under which the department, under contracts
with financial institutions, shall provide loan guarantees, insurance,
coinsurance in conjunction with other providers of loan guarantee programs or
other forms of credit guarantees for qualified businesses for eligible project
costs.
     (2) In administering the program created
by ORS 285B.200 to 285B.218, the department shall consult and cooperate with
financial institutions in this state. The program shall be administered so that
administrative procedures and application procedures are as responsive to the
needs of qualified businesses and financial institutions as practicable,
consistent with prudent investment and lending practices and criteria.
     (3) The department shall prescribe by rule
the loan or credit guarantee application procedure for a financial institution
on behalf of a qualified business.
     (4) When the department approves a loan or
credit guarantee, the department shall enter into a loan or credit guarantee
agreement with the financial institution. The agreement shall specify:
     (a) The fee to be charged to the financial
institution;
     (b) The evidence of debt assurance of, and
security for, the loan or credit guarantee;
     (c) A loan guarantee or credit guarantee
which does not exceed 15 years; and
     (d) Such other terms and conditions
considered necessary or desirable by the department. [Formerly 285.474; 2007
c.804 §58]
     Note: See note under 285B.200.
     285B.209
Fees and terms for loan and credit guarantees for program under ORS 285B.200 to
285B.218. (1) When making
loan or credit guarantees under the program established under ORS 285B.200 to
285B.218, the Economic and Community Development Department shall establish
fees and other terms for loan or credit guarantees that are calculated to
reasonably assure that businesses with access to other forms of private capital
will find it economical not to participate in the program.
     (2) The department, with due regard for
the possibility of losses and administrative costs, shall set fees and other
terms at levels sufficient to reasonably assure that the program is
self-financing. [Formerly 285.476; 2007 c.804 §59]
     Note: See note under 285B.200.
     285B.212 [Formerly 285.478; repealed by 2007 c.804 §86]
     285B.215
Credit Enhancement Fund; sources; uses. (1) There is established in the State Treasury, separate and distinct
from the General Fund, the Credit Enhancement Fund. All moneys in the fund are
continuously appropriated to the Economic and Community Development Department
for the following purposes:
     (a) Payment of claims pursuant to
contracts for loan or credit guarantees under ORS 285B.200 to 285B.218.
     (b) Payment of administrative costs of the
department for actual and necessary administrative expenses incurred by the
department in administering the fund and establishing and maintaining the
program established under ORS 285B.200 to 285B.218.
     (c) Repayment of transfers of funds
required or authorized by law.
     (d) Purchase or buyout of superior or
prior liens, mortgages or security interests.
     (2) Moneys in the Credit Enhancement Fund
shall consist of:
     (a) Moneys appropriated to the fund by the
Legislative Assembly, including moneys derived from the Administrative Services
Economic Development Fund.
     (b) Proceeds from collateral assigned to
the department.
     (c) Interest earned on moneys in the fund.
     (d) Transfers of moneys to the fund.
     (e) Fees assessed for guarantees, as
determined by the department.
     (f) Moneys from gifts.
     (g) Moneys from any grant made to the fund
by any federal agency.
     (h) Proceeds of insurance provided by the
Export-Import Bank of the
     Note: See note under 285B.200.
     285B.218
Pledge to assure repayment of loans or other credit. (1) The Economic and Community Development
Department is authorized to pledge up to $75 million to assure the repayment of
loan guarantees or other extensions of credit made to or on behalf of qualified
businesses for eligible projects costs.
     (2) If the balances in the Credit
Enhancement Fund are insufficient to cover any claims by financial institutions
that arise from loan and credit guarantees made under ORS 285B.200 to 285B.218,
the Oregon Department of Administrative Services is directed to transfer in the
fiscal year as often as appropriate any funds from the Administrative Services
Economic Development Fund to cover such principal, interest and claims, subject
to the condition that no such transfer shall be made prior to the satisfaction
of any constitutionally dedicated distribution, the allocation under ORS
391.130 to the Regional Light Rail Extension Construction Fund 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]
     Note: See note under 285B.200.
REGIONAL
ECONOMIC DEVELOPMENT
     285B.230
Definitions for ORS 285B.230 to 285B.269. As used in ORS 285B.230 to 285B.269, unless the context requires
otherwise:
     (1) “Region” means groups of counties
designated by the Economic and Community Development Department or recognized
in a regional partnership as provided in ORS 285B.236 (3).
     (2) “Regional board” means a board
comprised of individuals described in ORS 285B.242 (1) and jointly appointed by
the county governing bodies of each county in the region to develop, fund,
implement and monitor the achievement of the regional investment strategy.
     (3) “Regional investment strategy” is a
long-term economic development strategy, updated at least once every six years,
that focuses on the economic development priorities of each region, including
but not limited to:
     (a) Retaining and creating jobs and
raising real wages;
     (b) Promoting the structures and processes
of public and private organizations to effectively create, adapt, foster and
sustain economic development in this state, emphasizing rural and distressed
areas;
     (c) Ensuring that economic strategies
reinforce
     (d) Coordinating economic development
efforts and efforts to support a locally skilled workforce in order to compete
in the global economy.
     (4) “Regional partnership” means a group
of regional and economic development partners, including but not limited to
cities, counties, ports, Indian tribes, special districts, nonprofit
organizations and private organizations, that join together as a regional
partnership in a memorandum of understanding between the members of the
partnership and the directors of the Department of Transportation, the Economic
and Community Development Department, the Housing and Community Services
Department, the Department of Land Conservation and Development, the State
Department of Agriculture, the Department of State Lands and the Department of
Environmental Quality to provide a forum for coordination of economic
development planning and investments so that strategies and processes for
economic development are leveraged to the greatest extent possible to meet
agreed-upon priority issues, challenges and goals. [Formerly 285.630; 1999
c.509 §47; 2003 c.773 §16; 2007 c.804 §62]
     285B.233
Legislative finding; purpose.
(1) The Legislative Assembly finds that regional investment strategies are
essential to the stateÂ’s economic development goals and that to be effective
regional investment strategies must have the coordinated support of available
resources.
     (2) The Legislative Assembly declares that
the purpose of ORS 285B.230 to 285B.269 is:
     (a) To encourage the development of
regional investment strategies that address the economic development priorities
of each region of the state;
     (b) To identify and coordinate regional
economic development priorities;
     (c) To ensure that economic development
plans reinforce the long-term prosperity and livability of
     (d) To effectively utilize available
resources through a regional investment program;
     (e) To leverage and attract capital
investment in
     (f) To coordinate private and public
resources to support economic development. [Formerly 285.633; 1999 c.509 §48;
2003 c.773 §17]
     285B.236
Guidelines for regional investment strategies; rules. (1) The Economic and Community Development
Department, by rule, shall adopt guidelines for submission of regional
investment strategies and distribution of funds.
     (2) The guidelines shall provide that the
regional investment strategies are approved in accordance with criteria reflecting
the economic benefits to the state. Each regional investment strategy must at a
minimum set forth in measurable terms the extent to which the strategy will
accomplish the economic development priorities of the region.
     (3) The department, in collaboration with
counties, shall establish regions, based on information and advice received
from county governing bodies and on historical, cultural and economic links
among counties. Unless there is a recognized regional partnership, a region
shall consist of at least two contiguous counties. For any area in which a
regional partnership is established, the department may accept the regional
boundaries designated by the partnership.
     (4) The department shall require each
region to examine its economic development needs. [Formerly 285.635; 1999 c.509
§49; 2003 c.773 §18; 2007 c.804 §63]
     285B.239
Required elements of regional investment strategies; rural set aside; regional
board dedication of moneys.
(1) Regional investment strategies shall serve as a basis for state financial
assistance to projects or activities to meet regional and rural economic
development priorities. Each group of counties that forms a region shall submit
a regional investment strategy that at a minimum shall include the following
elements:
     (a) An identification of short-term and
long-term regional economic development priorities;
     (b) An analysis of the unique or
significant resources that provide the foundation for the regional investment
strategy;
     (c) An analysis of barriers to implementation
of the regional investment strategy and an identification of the means to
overcome those barriers;
     (d) A rural action plan;
     (e) A long-term plan to implement the
regional investment strategy, including necessary actions by:
     (A) Local governments;
     (B) The private sector;
     (C) State government; and
     (D) Federal government;
     (f) A six-year investment strategy that
describes projects or activities to be undertaken or funded by the state from
lottery proceeds and other sources. For a region that has a recognized regional
partnership under ORS 285B.236, the projects or activities may include
investment of all or part of the moneys received by the region from the
Regional Investment Fund to provide moneys for the administration or financing
of long-term or future economic development projects or activities;
     (g) A plan for involvement of
disadvantaged and minority groups in the region;
     (h) Performance measurements for meeting
the objective set forth in ORS 285B.236 (2). Each region shall develop an
evaluation plan, as part of its regional investment strategy, for measuring and
monitoring regional investment strategy performance. The evaluation plan shall
include regional benchmarks for monitoring achievement of the regional
investment strategies and priorities. When regional benchmarks are established,
regional performance measures shall be determined after negotiation between the
regional board and the Oregon Economic and Community Development Commission.
The regional performance measures shall include goals for:
     (A) Projected long-term and short-term job
creation and retention activities, including the number of jobs created and
retained and wage levels;
     (B) Leveraging long-term investments; and
     (C) Maximizing moneys leveraged with
short-term investments;
     (i) Periodic submission by the regional
board of performance reports, in a form prescribed by the Economic and
Community Development Department for regional investment strategies, to the
county governing bodies in the region, the Oregon Economic and Community
Development Commission and the Legislative Assembly; and
     (j) An overall management plan and project
or activity implementation strategy that demonstrates that a region has the
capacity to allocate resources and insures that such resources are effectively
used.
     (2) Each regional board shall include a
rural set aside consistent with the purposes and objectives of the Regional
Investment Fund described in subsection (1)(f) of this section.
     (3) In each biennium, a regional board may
dedicate all or a portion of the moneys distributed to the board from the
Regional Investment Fund for technical assistance and staff support for
updating the regional investment strategy and for developing programs and
projects. The regional board shall determine the amount of moneys dedicated to
such purposes. [Formerly 285.637; 1999 c.509 §50; 2001 c.552 §2; 2003 c.773 §19;
2007 c.804 §64]
     285B.242
Adoption of regional investment strategies; regional boards; hearing; review;
approval. (1) The governing
body of each county of this state shall be responsible for the submission of a
regional investment strategy as provided in ORS 285B.239. The governing body of
a county shall designate a regional board to develop the regional investment
strategy. The regional board shall consist of individuals who represent various
local interests including cities, counties, ports, special districts and Indian
tribes and significant representation from the private sector. The regional
board shall include members who are representatives of rural interests.
     (2) The regional board shall be
responsible for developing the regional investment strategy for the region.
     (3) The regional board shall hold a public
hearing in each county in the region prior to a vote by the governing bodies of
the counties to recommend to the Economic and Community Development Department
the regional investment strategy described in ORS 285B.239.
     (4) In developing the six-year
implementation strategy provided for in ORS 285B.239 (1)(f), a regional board
shall consult with industries, cities, ports, special districts, rural
representatives, regional workforce committees and federally recognized Oregon
Indian tribes located in the region.
     (5) A region shall submit the regional
investment strategy to the department for review by the Oregon Economic and
Community Development Commission. The department shall work with regions to
refine regional investment strategies and ensure compliance with the
requirements of ORS 285B.230 to 285B.269.
     (6) The commission shall be responsible
for identifying common issues among regions, developing statewide strategies
and organizing opportunities for regions to address them.
     (7) After a regional investment strategy
is developed by a regional board, adopted by the governing bodies of the counties
and approved by the commission, the regional board, every six years, shall
update the strategy and recommend the implementation plan. The implementation
plan shall be adopted by the governing bodies of the counties after input from
the cities, ports, special districts, rural representatives, Indian tribes,
private sector and other parties in the region, and shall be reviewed by the
commission.
     (8) The commission may delegate
responsibility for review and approval of a regional investment strategy to a
regional partnership. [Formerly 285.640; 1999 c.509 §51; 2003 c.773 §20; 2007
c.804 §65]
     285B.245
Coordination of regional investment strategies with other economic development
efforts. (1) The Economic
and Community Development Department shall coordinate adopted regional
investment strategies with existing state and local economic development
efforts to support a state strategy for economic development. Regions using
regional investment funds for tourism or industrial marketing projects must, as
a condition for receiving the funds, demonstrate that the projects complement
and are consistent with existing statewide marketing campaigns. The department
shall work with regions to ensure coordination among statewide marketing
efforts and regional tourism, industrial marketing projects and industrial or
commercial land development funded through the regional investment program
established under ORS 285B.230 to 285B.269.
     (2) The department shall discourage
competition among regions for existing
     285B.248
All counties to be included in region. In carrying out the provisions of ORS 285B.230 to 285B.269, the
Economic and Community Development Department shall work to ensure that all
counties are included in a region with an adopted regional investment strategy
and that each regional investment strategy is approved for implementation. [Formerly
285.645; 1999 c.509 §53; 2003 c.773 §22]
     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
Regional Investment Fund; purpose; uses; rules. (1) There is created a Regional Investment
Fund, separate and distinct from the General Fund, to consist of all moneys
credited thereto, including moneys from the Administrative Services Economic
Development Fund, and all interest earned on the Regional Investment Fund. The
fund is continuously appropriated to the Economic and Community Development
Department to be used for grants to implement ORS 280.518 and 285B.230 to
285B.269.
     (2) The department may use moneys in the
Regional Investment Fund to pay for the administrative expenses of operating
the regional investment program under ORS 285B.230 to 285B.269.
     (3) The fund shall not be used to retire
any debt, to reimburse any person or municipality for expenditures made or
expenses incurred prior to the adoption of a regional investment strategy or to
substitute for local government expenditures for existing and continuing public
services. The department shall adopt rules to carry out the provisions of this
subsection.
     (4) After consulting with regional boards
and representatives of rural communities, the department, by rule, shall adopt
standards, objectives and criteria for the use and distribution of moneys in
the Regional Investment Fund.
     (5) The Regional Investment Fund is
created to provide a flexible funding source for financing those locally
determined programs and projects that may not be eligible for financing through
other state and federal funding sources. [Formerly 285.650; 1999 c.509 §56;
2003 c.773 §25; 2007 c.354 §15; 2007 c.804 §67]
     285B.263
Expenditure of Regional Investment Fund; distribution. (1) In each biennium, the Economic and
Community Development Department shall expend moneys from the Regional
Investment Fund for:
     (a) Technical assistance and staff support
for preparation and update of regional investment strategies;
     (b) Projects or activities implementing an
approved regional investment strategy and implementing priorities described in
the strategy;
     (c) Personnel necessary to administer the
strategies and projects or activities; and
     (d) Other activities consistent with the
adopted regional investment strategy in accordance with ORS 285B.239.
     (2) In each biennium, the Oregon Economic
and Community Development Commission, by rule and in agreement with the Association
of Oregon Counties, League of Oregon Cities and Oregon Public Ports
Association, may provide funds from any source available to the department to
establish strategic regional investment opportunities consistent with the
policies described in ORS 285B.266. Funding for projects or activities under
this subsection shall be awarded, at the discretion of the commission,
according to the quality of the defined projects or activities.
     (3) In each biennium, a regional board may
dedicate a portion of regional investment funds for technical assistance and
staff support for regional investment strategy development and refinement and
development and administration of regional partnerships. The portion of funds
so dedicated shall be determined by the commission. The commission shall
provide regional boards with these funds prior to approval of regional
investment strategies.
     (4) In each biennium, a regional board may
dedicate a portion of regional investment funds to provide grants or loans to
individual private businesses for fixed asset acquisition. Such funds must be
used to make grants and loans that are consistent with the regional investment
strategy and that support the regional priorities included in the regional
investment strategy. The terms and conditions of grants or loans to be made
under this subsection must be contained in the regional investment strategy at
the time it is submitted for department review.
     (5) After a regional investment strategy
is adopted, the department in each calendar quarter shall provide regional
investment funds, less any moneys used for technical assistance and staff
support for regional investment strategy development, to the region. Moneys
received under this subsection shall be used for development of projects or
activities based upon an evaluation by the regional board of the merit and
readiness of the projects or activities. Projects and activities that receive
such financial assistance must be consistent with the priorities of the
approved regional investment strategy.
     (6) In each biennium, each regional board
shall submit a report to the commission and the Legislative Assembly that
describes the expenditure of moneys received under this section and indicates
the success, as defined by specified performance measurements, of the funded
projects or activities in achieving the regional economic development
priorities described in ORS 285B.236 (2). [Formerly 285.651; 1999 c.509 §57;
2001 c.552 §3; 2003 c.773 §26; 2007 c.804 §68]
     285B.264
Evaluations required following distributions from Rural Investment Fund and
Regional Investment Fund.
The Regional Investment Fund created under ORS 285B.260 shall be evaluated by
the Economic and Community Development Department to determine if the regional
investment strategy funded by a distribution has met the criteria established
by the strategy for:
     (1) Long-term and short-term job creation
and retention activities, including the number of jobs created and retained and
wage levels;
     (2) Leveraging long-term investments;
     (3) Maximizing moneys leveraged with
short-term investments; and
     (4) The success of other strategic, long
term economic development projects funded. [2003 c.773 §26a; 2007 c.804 §69]
     285B.266
Strategic Reserve Fund; sources; 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 Economic and Community Development Department to be used to
implement statewide strategies for economic development.
     (2) The fund shall not be used to retire
any debt or, except upon approval of the
     (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
     285B.269
Short title. ORS 285B.230 to
285B.269 shall be known as the Regional Economic Development Act. [Formerly
285.655]
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
     (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
sectors of this stateÂ’s economy, to the maximum extent feasible, include firms
of all sizes. To promote that policy, the Economic and Community Development
Department shall undertake efforts as are necessary to ensure 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
     (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]
     285B.286
Industry development activities. For traded sector industries, the Economic and Community 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.
     (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. [Formerly 285.770; 1999
c.509 §20; 2003 c.800 §23]
     285B.289 [Formerly 285.773; repealed by 1999 c.509 §61]
     285B.290
Industry Outreach Fund. The
Industry Outreach Fund is established in the State Treasury, separate and
distinct from the General Fund. The Industry Outreach Fund shall consist of all
moneys credited to the fund, including moneys from the Administrative Services
Economic Development Fund. Interest earned by the Industry Outreach Fund shall
be credited to the fund. Moneys in the fund are continuously appropriated to
the Economic and Community Development Department for all of the following
purposes:
     (1) To provide funds for activities
outlined in ORS 285B.266.
     (2) To assist traded sector and cluster
affiliated
     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. “Economic
development project” does not include any facility or facilities designed
primarily for the generation, transmission, sale or distribution of electrical
energy.
     (3) “Eligible project” means an economic
development project found by the Oregon Economic and Community Development
Commission to meet standards of the commission. The commission may treat as a
single eligible project for bonding purposes any number of economic development
projects determined to be eligible projects.
     (4) “Exempt facility” means any facility
described in section 142(a) of the Internal Revenue Code of 1986, as amended
and in effect as of June 30, 2007. If section 142(a) of the Internal Revenue
Code of 1986 is amended or altered on or after July 1, 2007, the Economic and
Community Development Department may adopt by rule a definition of “exempt
facility” that is consistent with section 142(a) of the Internal Revenue Code
of 1986 as amended or altered.
     (5) “Nonprofit entity” means an
institution, organization or other entity exempt from taxation under section
501(c)(3) of the Internal Revenue Code of 1986, as amended and in effect as of
June 30, 2007. If section 501(c)(3) of the Internal Revenue Code of 1986 is
amended or altered on or after July 1, 2007, the department may adopt a
definition of “nonprofit entity” that is consistent with section 501(c)(3) of
the Internal Revenue Code of 1986 as amended or altered. [Formerly 285.315;
1999 c.509 §30; 2001 c.680 §3; 2007 c.804 §§73,90]
     285B.326
Determination of eligibility of projects for financing; fees. (1) Upon determining that an economic
development project is an eligible project, the Oregon Economic and Community
Development Commission shall request that the State Treasurer issue the bonds.
     (2) The commission shall collect fees set
forth in rules established by the Economic and Community Development
Department. Moneys collected under this subsection shall be deposited in the
Oregon Community Development Fund created under ORS 285A.227 and are
continuously appropriated to the commission for the purpose of administration
or funding of the Oregon Industrial Development Revenue Bond and Express Bond
Program.
     (3)(a) In addition to the fees described
in subsection (2) of this section, the commission may charge and receive
reimbursement for expenses incurred in:
     (A) The initial review of an application
for economic development projects sought to be declared eligible for financing;
and
     (B) Matters arising after the issuance of
a bond.
     (b) Reimbursement for expenses under this
subsection shall be charged and received in accordance with rules established
by the department. [Formerly 285.320; 1999 c.509 §31; 2003 c.167 §8; 2007 c.804
§§74,91]
     285B.329
Review by
     (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]
     285B.332 [Formerly 285.330; 1999 c.509 §33; repealed
by 2007 c.804 §86]
     285B.335
Powers of Economic and Community Development Department; lease requirements. (1) In addition to any other powers granted
by law or by charter, the Economic and Community 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]
     285B.338
Powers of
     (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]
     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 Economic and
Community 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]
     285B.344
Authority to issue bonds.
(1) At the request of the Economic and Community 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]
     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
Administration 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 Economic
and Community 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]
     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
Economic and Community 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 Oregon Economic and
Community Development Commission. [Formerly 285.393; 1999 c.509 §40; 2007 c.783
§102]
     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 Economic and Community Development Department by
rule, and that is aimed at strengthening the economic development or
infrastructure priority setting of a municipality or region.
     (b) “Community development project”
includes the following activities:
     (A) Developing and managing short-term and
long-term projects;
     (B) Developing priorities for
infrastructure projects;
     (C) Strategic planning related to
furthering economic development; or
     (D) Training related to economic
development, including training to improve leadership skills, technical skills
or analytical skills, particularly in rural and distressed areas.
     (c) “Community development project”
includes projects that may encompass a municipality or any part of a
municipality and may be undertaken in cooperation with another municipality.
     (3) “Development project” means a project
for the acquisition, improvement, construction, demolition, or redevelopment of
municipally owned utilities, buildings, land, transportation facilities or
other facilities that assist the economic and community development of the
municipality, including planning project activities that are necessary or
useful as determined by the Economic and Community Development Department.
     (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
     (9) “Planning project” means:
     (a) A project related to a potential
development project for preliminary, final or construction engineering;
     (b) A survey, site investigation or
environmental action;
     (c) A financial, technical or other
feasibility report, study or plan; or
     (d) An activity that the department
determines to be necessary or useful in planning for a potential development
project.
     (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) “Sewage system” means a facility
necessary for collecting, pumping, treating or disposing of sanitary sewage.
     (15) “Solid waste disposal site” has the
meaning given the term “disposal site” in ORS 459.005.
     (16) “Storm water drainage system” means a
facility necessary for collecting, controlling, conveying, treating or
disposing of storm water runoff.
     (17) “Telecommunications system” means
equipment or a facility for the electronic transmission of voice, data, text,
image or video.
     (18) “Transportation” means a system for movement
of freight or passengers.
     (19) “Utilities” means a solid waste
disposal site or a water, sewage, storm water drainage, energy or
telecommunications system.
     (20) “Water system” means a facility for
supplying, treating or protecting the quality of water and transmitting water
to a point of sale or to any public or private agency for domestic, municipal,
commercial or industrial use. [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]
     285B.413
Legislative findings. (1)
The Legislative Assembly finds that:
     (a) The improvement, expansion and new
construction of the stateÂ’s water and sewage systems, telecommunications
systems, roads and public transportation provide the basic framework for
continuing and expanding economic activity in this state, thereby providing
jobs and economic opportunity for the people of
     (b) It is essential to maintain usable and
developable industrial and commercial lands in
     (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
     (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 special circumstances of the
project. The Economic and Community Development Department 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]
     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 Economic and Community 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 department 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 department may commit moneys in
the Special Public Works Fund or reserve future income to the fund for
disbursal in future years under ORS 285B.440. The department shall commit or
reserve moneys under this subsection only after:
     (a) Allowing for contingencies;
     (b) Finding that there will be sufficient
unobligated net income to the fund to make 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 department 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]
(Community
Facilities Projects)
     285B.422
Funding of community facilities projects; criteria for project funding. (1) The Economic and Community Development
Department may provide financial or other assistance to a municipality for a
development project as defined in ORS 285B.410.
     (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 department 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]
     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]
     Note: Section 32, chapter 773, Oregon Laws 2003,
provides:
     Sec.
32. On the effective date of
this 2003 Act [January 1, 2004], moneys in the Community Facilities Account
shall be transferred to other accounts within the Special Public Works Fund as
designated by the Director of the Economic and Community Development
Department. On and after the effective date of this 2003 Act, all repayments of
financial assistance provided from the Community Facilities Account shall be
credited to the accounts within the Special Public Works Fund designated by the
director. [2003 c.773 §32]
(Financial
Assistance for Projects)
     285B.428
Application for funds. 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 Economic and Community 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]
     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.
(1) If the Economic and Community Development Department approves assistance
from the Special Public Works Fund for a project, the department, 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 department a lien on or a security interest in the collateral as
determined by the department to be necessary to secure repayment of the loan or
bond; and
     (c) Other provisions as the department
considers necessary or appropriate to implement the assistance.
     (2) When the department approves financial
assistance under ORS 285B.410 to 285B.482 for a project, the department 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 department. 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]
     285B.438 [2001 c.633 §4; 2003 c.773 §36; repealed by
2005 c.835 §37]
     285B.440
Maximum amounts of grants; standards; 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 Economic and Community Development Department may determine
the level of grant or loan funding, if any, on a case-by-case basis.
     (b) If the department approves funding,
the department shall determine a maximum amount of the loan based upon a
reasonable and prudent expectation of the ability of the municipality to repay
the loan.
     (c) The loan term may not exceed the
usable life of the project or 25 years from the year of project completion,
whichever is less.
     (d) Assistance from the fund for a marine
facility project otherwise funded under ORS 777.267 shall be limited to a loan.
The loan may not exceed the amount of the required local matching funds.
     (2) The department shall by rule adopt
standards for awarding grants from the Special Public Works Fund. The standards
may include the award of grants as a financial incentive to accomplish the
goals of the Special Public Works Fund, to address special circumstances of a
project or to address the financial need of the applicant.
     (3) The department may make grants to a
municipality not to exceed $1 million per project or 85 percent of the
allowable project costs, whichever is less. For purposes of this subsection,
allowable project costs do not include capitalized interest, if any.
     (4) The department may not expend more
than one percent of the value of the Special Public Works Fund in any biennium
for grants or direct assistance, if any, for planning projects and community
development projects to municipalities.
     (5) The department may not expend more
than $2.5 million in any biennium for emergency project grants. For purposes of
this subsection, emergency project grants include grants for essential
community facilities, as defined by the department by rule after consultation
with the League of Oregon Cities, the Association of Oregon Counties, the
Oregon Ports Representation Group and the Special Districts Association of
Oregon.
     (6) Except as otherwise limited by this
section, not more than 100 percent of the total cost of a project, including
capitalized interest, shall be financed from the Special Public Works Fund. [Formerly
285.720; 2001 c.883 §31a; 2003 c.773 §37; 2005 c.835 §13; 2007 c.804 §33]
     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 Economic and Community 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]
     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. (1) There is created the Special Public Works Fund, separate and
distinct from the General Fund. All moneys credited to the Special Public Works
Fund are appropriated continuously to the Economic and Community Development
Department.
     (2) The fund shall consist of all moneys
credited to the fund, including:
     (a) Moneys appropriated to the fund by the
Legislative Assembly or transferred to the fund by the Oregon Economic and
Community Development Commission;
     (b) Earnings on the fund;
     (c) Repayment of financial assistance,
including interest;
     (d) Moneys received from the federal
government, other state agencies or local governments;
     (e) Bond proceeds as authorized under ORS
285B.410 to 285B.482 or other law; and
     (f) Moneys from any other source,
including but not limited to grants and gifts.
     (3) Moneys in the Special Public Works
Fund may be invested as provided by ORS 293.701 to 293.820 and the earnings
from the investments shall be credited to the account in the Special Public
Works Fund designated by the department.
     (4) The department shall administer the
Special Public Works Fund.
     (5) The department may establish other
accounts within the Special Public Works Fund for the payment of project costs,
reserves, debt service payments, credit enhancement, administrative costs and
operation expenses or any other purpose necessary to carry out ORS 285B.410 to
285B.482.
     (6) The department may directly or
indirectly grant, expend or loan moneys in the fund or extend credit to:
     (a) Provide to municipalities any form of
financial or other assistance that the department considers appropriate to
assist communities with a project, including the refinancing of temporary
project financing.
     (b) Purchase goods or services related to
a project on behalf of the municipality.
     (c) Provide state funds as a match for
federal funds available for the administration of the Community Development
Block Grant program.
     (d) Finance administrative costs of the
department pursuant to ORS 285B.410 to 285B.482.
     (e) Provide annual grants on behalf of a
municipality in the form of partial repayment to bondholders of amounts owed.
     (f) Cover contracts that are issued to
guaranty any portion of the obligation of a municipality to finance a
development project and that are not sold to the State of
     (7) As used in this section, “administrative
costs” includes the department’s direct and indirect costs for investigating
and processing an application, developing a contract, monitoring the use of
funds by a municipality, investigating and resolving budget discrepancies,
closing a project and providing financial or other assistance to a
municipality. [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]
     285B.458
Funding of distressed area and rural area infrastructure projects. 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 municipal planning projects. (1) The Economic and Community Development
Department may provide financial or other assistance to a municipality for a
planning project as defined in ORS 285B.410.
     (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]
     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 municipal emergency projects. (1) The Economic and Community Development
Department may provide financial or other assistance to a municipality for an
emergency project as defined in ORS 285B.410.
     (2) The department 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]
     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 Economic and
Community Development Department determines to be necessary or useful. [2005
c.835 §10]
(Revenue Bond
Financing)
     285B.467
Standards for eligibility for revenue bond financing; rules. (1) The Economic and Community Development
Department shall by rule adopt standards to 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.
     (2) Upon determining 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
department in processing applications and investigating proposed projects and
bond sales may not be derived from bond proceeds.
     (5) The department 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 department 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]
     285B.470
Powers of department over revenue bond financing. In addition to any other powers granted by
law in relation to a development project, the Economic and Community
Development Department 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 department 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]
     285B.473
Issuance of revenue bonds.
(1) At the request of the Economic and Community 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]
     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 infrastructure, community facility and water
bonds. (1) Notwithstanding
any other law relating to revenue bonds issued and sold under ORS 285B.467 to
285B.479 or ORS 285B.572, 285B.575 and 285B.578, revenue bonds may be issued
and sold as parity bonds.
     (2) Proceeds of revenue bonds issued and
sold under ORS 285B.467 to 285B.479 or ORS 285B.572, 285B.575 and 285B.578,
together with the investment earnings thereon, may be consolidated into one or
more funds or accounts and may be pledged to the holders of revenue bonds issued
to finance water projects, as defined in ORS 285B.560, or development projects.
     (3) Any loan to a municipality made
pursuant to ORS 285B.467 to 285B.479, 285B.560 to 285B.569 or 285B.572 to
285B.599, including loans funded in whole or in part with the proceeds of
revenue bonds and loans funded with moneys in the Water Fund or the Special
Public Works Fund, may be pledged to the holders of revenue bonds issued to
finance water projects or development projects.
     (4) Funds or accounts established by the
Economic and Community Development Department or the State Treasurer in
connection with the issuance of revenue bonds under ORS 285B.467 to 285B.479 or
ORS 285B.572, 285B.575 and 285B.578 and moneys held in the funds and accounts,
together with the investment earnings thereon, may be consolidated into one or
more funds or accounts and may be pledged to the holders of revenue bonds
issued to finance water projects or development projects. [1997 c.800 §14; 2003
c.773 §49; 2005 c.835 §19; 2007 c.804 §35]
     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
     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,
     (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
     (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
     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
     (a) Paying all or a portion of the costs
of:
     (A) A project for the extension and
improvement of
     (B) A project for the extension of a
natural gas pipeline to the
     (C) A project for improvements to the
     (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]
     Note: See note under 285B.500.
     285B.506
Grant agreements; maximum grant amount; terms of agreement; assignment of right
to receive grant moneys; agreement not to constitute state debt. (1) After July 25, 1997, the Director of the
Economic and Community Development Department 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 Economic and Community
Development Department 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 department 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 sponsorÂ’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
director 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 sponsorÂ’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 Director of the
Economic and Community Development Department, 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 director and accepted by the primary sponsor shall be a valid, binding and
irrevocable contractual obligation of the State of
     (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 Economic and Community
Development Department, 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 department 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]
     Note: See note under 285B.500.
     285B.509
Agreements between primary sponsor and
     Note: See note under 285B.500.
     285B.512
End of lottery allocations upon certification by Director of Economic and
Community Development Department. (1) The deposit of unobligated net lottery proceeds to an account in
the Oregon Unified International Trade Fund shall cease if and when the
Director of the Economic and Community Development Department 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
director pursuant to the grant agreement that the primary sponsor is unable to
undertake the project.
     (2) Upon receipt of the director’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
     Note: See note under 285B.500.
     285B.515
“Primary sponsor” defined for ORS 285B.500 to 285B.512. 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 Economic and Community
Development Department in a grant agreement under ORS 285B.506. [1997 c.644 §13]
     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 Economic and Community 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 Economic and Community
Development Department for the State of
     (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 Economic and Community
Development Department 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 Economic and Community Development
Department 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]
     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; amount; use of bond proceeds; Economic
Infrastructure Project Fund.
(1) Pursuant to ORS 286A.560 to 286A.585, lottery bonds may be issued:
     (a) To provide financial and other
assistance, including but not limited to loans and grants, to municipalities,
ports and other persons and entities in accordance with the laws governing use
of moneys in the Special Public Works Fund created by ORS 285B.455, the Water
Fund created by ORS 285B.563, the Safe Drinking Water Revolving Loan Fund
created by ORS 285A.213, the Oregon Port Revolving Fund created by ORS
285A.708, the Brownfields Redevelopment Fund created by ORS 285A.188, the
Oregon Business Development Fund created by ORS 285B.092 and the Marine
Navigation Improvement Fund created by ORS 777.267.
     (b) To fund
     (c) To fund
     (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
     (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
     (d) The current lower Columbia River
estuary habitat for listed endangered or threatened species of
     (3) The aggregate principal amount of
lottery bonds issued pursuant to subsection (1)(a) of this section for
financial and other assistance to municipalities, ports and other persons and
entities may not exceed the sum of $248.7 million and an additional amount
estimated by the State Treasurer to be necessary to pay bond-related costs. The
aggregate principal amount of lottery bonds issued pursuant to subsection
(1)(b) of this section for the
     (4) The net proceeds of lottery bonds
issued pursuant to subsection (1)(a) and (b) of this section shall be deposited
in the Economic Infrastructure Project Fund, which is hereby established in the
State Treasury separate and distinct from the General Fund. All moneys in the
Economic Infrastructure Project Fund are continuously appropriated to the
Economic and Community Development Department for any purpose for which moneys
in the Special Public Works Fund created by ORS 285B.455 may be used, any
purpose for which moneys in the Water Fund created by ORS 285B.563 may be used,
any purpose for which moneys in the Safe Drinking Water Revolving Loan Fund
created by ORS 285A.213 may be used, any purpose for which moneys in the Oregon
Port Revolving Fund created by ORS 285A.708 may be used, any purpose for which
moneys in the Brownfields Redevelopment Fund created by ORS 285A.188 may be
used, any purpose for which moneys in the Oregon Business Development Fund
created by ORS 285B.092 may be used and any purpose for which moneys in the
Marine Navigation Improvement Fund created by ORS 777.267 may be used. The
Director of the Economic and Community Development Department shall allocate
the moneys deposited in the Economic Infrastructure Project Fund for the
purposes described in this subsection in accordance with the priorities
developed by the Oregon Economic and Community 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
     (5) The aggregate principal amount of
lottery bonds issued pursuant to subsection (1)(c) of this section for the
costs of studies and ecosystem restoration projects in the lower Columbia River
estuary may not exceed the sum of $750,000 and an additional amount estimated
by the State Treasurer to be necessary to pay bond-related costs. The net
proceeds of lottery bonds issued pursuant to subsection (1)(c) of this section
shall be deposited in the Oregon Community Development Fund created by ORS
285A.227 and may be used only for the Oregon nonfederal share of United States
Army Corps of Engineers Columbia River estuary projects authorized by Congress
prior to August 9, 2001. The director may not request the issuance of lottery
bonds pursuant to subsection (1)(c) of this section until Congress and
Washington have authorized their respective shares of the costs of the studies
and ecosystem restoration projects in the lower Columbia River estuary.
     (6) The proceeds of lottery bonds issued
pursuant to this section may be used only for the purposes set forth in this
section and for bond-related costs. [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]
     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.
(Coos County
Airport District Terminal Expansion Project)
     Note: Sections 1 to 4, chapter 756, Oregon Laws
2005, provide:
     Sec.
1. (1) The Legislative
Assembly finds that issuing lottery bonds to provide grants to the Coos County
Airport District to assist in the funding of the construction of a new
passenger terminal at the
     (2) The use of lottery bond proceeds is
authorized based on the following findings:
     (a) The economy of
     (b) The economy of Coos County will
benefit from the construction of a new passenger terminal at the North Bend
Airport because it will increase the capability of the airport to meet air
travel needs for Coos County and provide for continued and expanded economic
opportunities for tourism in southwestern Oregon.
     (c) Increased capacity for air transport
at the
     (d) The construction of a new passenger
terminal at the North Bend Airport will promote economic development in this
state, and the use of net proceeds from the operation of the Oregon State Lottery
to pay debt service on lottery bonds issued under this section to finance a
portion of the costs of a new passenger terminal at the North Bend Airport is
an authorized use of state lottery funds under section 4, Article XV of the
Oregon Constitution, and ORS 461.510. [2005 c.756 §1]
     Sec.
2. The aggregate principal
amount of lottery bonds issued pursuant to section 4 of this 2005 Act to assist
in the funding of the construction of a new passenger terminal at the
     Sec.
3. (1) The North Bend
Airport Improvement Fund is established in the State Treasury, separate and
distinct from the General Fund. The net proceeds of lottery bonds issued
pursuant to section 4 of this 2005 Act shall be deposited in the fund. All moneys
in the North Bend Airport Improvement Fund are continuously appropriated to the
Economic and Community Development Department for the purpose of providing
grants to the Coos County Airport District to assist in the funding of the
construction of a new passenger terminal at the
     (2) Subject to subsection (3) of this
section, moneys in the fund shall be made available for distribution to the
Coos County Airport District in the form of grants for the purpose specified in
section 1 of this 2005 Act.
     (3) The Director of the Economic and
Community Development Department shall enter into a grant agreement with the
Coos County Airport District that requires the department to disburse the
aggregate amount of $10 million from the fund to the district when:
     (a) Moneys are available; and
     (b) The executive director of the Coos
County Airport District has provided the documentation required under section 2
of this 2005 Act. [2005 c.756 §3]
     Sec.
4. (1)(a) For the biennium
beginning July 1, 2005, the State Treasurer is authorized to issue lottery
bonds pursuant to ORS 286.560 to 286.580 [renumbered 286A.560 to 286A.585] in
the amount of $6 million for payment of grants to the Coos County Airport
District related to the construction of a passenger terminal facility at the
North Bend Airport, plus an additional amount estimated by the State Treasurer
for payment of bond-related costs of the Economic and Community Development Department
and the State Treasurer.
     (b) For the biennium beginning July 1,
2007, the State Treasurer is authorized to issue lottery bonds pursuant to ORS
286.560 to 286.580 in the amount of $4 million for payment of grants to the
Coos County Airport District related to the construction of a passenger
terminal facility at the North Bend Airport, plus an additional amount
estimated by the State Treasurer for payment of bond-related costs of the
Economic and Community Development Department and the State Treasurer.
     (2)(a) Net proceeds of lottery bonds
issued under subsection (1)(a) of this section, in the amount of $6 million,
shall be deposited in the North Bend Airport Improvement Fund established by
section 3, chapter 756, Oregon Laws 2005, not later than December 15, 2005.
     (b) Net proceeds of lottery bonds issued
under subsection (1)(b) of this section, in the amount of $4 million, shall be
deposited in the North Bend Airport Improvement Fund established by section 3,
chapter 756, Oregon Laws 2005, not later than December 15, 2007. [2005 c.756 §4;
2007 c.783 §106a]
(
     Note: Sections 6 to 10, chapter 746, Oregon Laws
2007, provide:
     Sec.
6. As used in sections 6 to
10 of this 2007 Act, “City of Hillsboro Downtown Parking Facility” or “facility”
means the acquisition, construction and procurement of all components of a
public parking facility to be established in the City of Hillsboro. [2007 c.746
§6]
     Sec.
7. (1) Notwithstanding ORS
286.505 to 286.545 [series repealed in 2007], for the biennium beginning July
1, 2007, at the request of the Director of the Economic and Community
Development Department, the State Treasurer is authorized to issue lottery
bonds pursuant to ORS 286.560 to 286.580 [renumbered 286A.560 to 286A.585] in
the amount of $7 million for payment of the expenses of the City of Hillsboro
for the establishment of the City of Hillsboro Downtown Parking Facility, plus
an additional amount to be estimated by the State Treasurer for payment of
bond-related costs incurred by the Economic and Community Development
Department, the Oregon Department of Administrative Services and the State
Treasurer.
     (2) The bond-related costs incurred by the
Economic and Community Development Department, the Oregon Department of
Administrative Services and the State Treasurer for the lottery bonds
authorized by this section shall be paid from the gross proceeds of the lottery
bonds, from allocations for the purposes of ORS 286.576 (1)(c) [renumbered
286A.576 (1)(c)] or from moneys in the City of Hillsboro Downtown Parking
Facility Fund established under section 9 of this 2007 Act. [2007 c.746 §7]
     Sec.
8. The Legislative Assembly
finds that:
     (1) The City of
     (a) Enhance access to transit options for
employees in an area in which the population has doubled since 1990.
     (b) Allow for increased investment in
allied health training and education, areas in which the State of
     (c) Increase the likelihood of federal
funding for the facility and add new moneys that directly benefit
     (2) The factors described in subsection
(1) of this section will encourage and promote economic development within the
State of
     Sec.
9. (1) The City of
     (2) Subject to subsection (3) of this
section, moneys in the fund shall be available for immediate distribution to
the City of
     (3) The Director of the Economic and
Community Development Department shall enter into a grant agreement with the
City of
     (a) The city to agree in the grant
agreement authorized by this section:
     (A) To indemnify the state government, as
defined in ORS 174.111, to the fullest extent permitted by law for any
liability the state government might incur in connection with a borrowing by
the city for the facility.
     (B) Not to request or accept moneys from
the state General Fund for the facility.
     (C) To refund the difference to the
director for deposit in the City of
     (b) The department to disburse, over the
course of the development of the facility, an aggregate amount of $7 million to
the City of Hillsboro from the City of Hillsboro Downtown Parking Facility Fund
when:
     (A) Moneys are available;
     (B) The director determines that the city
has entered into one or more contracts that have an aggregate value of at least
$16 million for final design, construction or acquisition of components of the
facility; and
     (C) The director determines that the city
has provided documentation that it will have sufficient financing to complete
the facility.
     (4) If, on or before June 30, 2008, the
director has not distributed bond proceeds to the City of
     (a) Evaluate the likelihood that the bond
proceeds will be distributed before June 30, 2009; and
     (b) Report the findings of the evaluation
to the Oregon Department of Administrative Services and the State Treasurer on
or before September 1, 2008. [2007 c.746 §9]
     Sec.
10. The State of
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) “Department” means the Economic and
Community Development Department.
     (2) “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.
     (3) “Fund” means the Water Fund.
     (4) “Municipality” has the meaning given
that term in ORS 285B.410.
     (5) “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.
     (6) “Waste water system improvement
project” means a project for constructing or improving a system for waste water
collection or treatment, including storm drainage systems.
     (7) “Water project” means a safe drinking
water project or a waste water system improvement project. [Formerly 285.755;
2001 c.883 §36]
     285B.563
Water Fund; uses; sources; maintenance of fund value; rules; coordination with
other agencies on safe drinking water projects. (1) There is established in the State
Treasury, separate and distinct from the General Fund, the Water Fund. All
moneys in the Water Fund are continuously appropriated to the Economic and
Community Development Department for the purposes described in ORS 285B.560 to
285B.599, including the direct project management costs.
     (2)(a) Moneys in the Water Fund may be
obligated to water projects.
     (b) Moneys shall be used primarily to make
loans to municipalities. The department may make a loan only if:
     (A) The municipality applying for the loan
certifies to the department that adequate funds will be available to repay the
loan; and
     (B) The department determines that the
amount of the loan applied for is based on a reasonable and prudent expectation
of the municipalityÂ’s ability to repay the loan.
     (c) The department may award a grant only
if a loan is not feasible due to:
     (A) Financial hardship to the
municipality, as determined by the department, based on consideration of
anticipated water service charges or anticipated waste water service charges,
the per capita income of the municipality and any other factors as the
department by rule may establish; and
     (B) Special circumstances of the water
project.
     (d) The department may determine the
amount of grant or loan funding on a case-by-case basis.
     (3) The moneys in the fund may also be
used to assist the department in selling revenue bonds on behalf of
municipalities in order to carry out the purposes of ORS 285B.560 to 285B.599.
     (4) Moneys in the Water Fund may be invested
as provided by ORS 293.701 to 293.820. The earnings from the investments and
other program income shall be credited to the Water Fund.
     (5) The Water Fund shall consist of:
     (a) Moneys appropriated to the fund by the
Legislative Assembly.
     (b) Moneys transferred to the fund by the
Economic and Community Development Department from the Special Public Works
Fund created by ORS 285B.455.
     (c) Moneys transferred to the Water Fund
by the Water Resources Commission from the Water Development Fund created by Article
XI-I(1) of the Oregon Constitution.
     (d) Moneys from any federal, state or
other grants.
     (e) Proceeds of revenue bonds issued under
ORS 285B.575.
     (f) Earnings on the Water Fund.
     (6) The department shall administer the
fund.
     (7) The department shall adopt rules and
policies for the administration of the fund. The department shall coordinate
its rulemaking regarding safe drinking water projects with the Water Resources
Department and the Department of Human Services. The rules adopted under this subsection
for safe drinking water projects shall:
     (a) Require the installation of meters on
all new active service connections from any distribution lines funded with
moneys from the fund or from the proceeds of revenue bonds issued under ORS
285B.572 to 285B.578.
     (b) Require a plan, to be adopted by a
municipality receiving financial assistance from the fund, for installation of
meters on all service connections throughout the drinking water system not
later than two years after the completion of a safe drinking water project.
     (8)(a) The Economic and Community
Development Department shall manage the Water Fund and any expenditures from
accounts in the fund and transfers between accounts so that the fund provides a
continuing source of financing consistent with ORS 285B.413.
     (b) If necessary to ensure repayment of
bonds issued under ORS 285B.560 to 285B.599, the department may reduce the
value of the fund when the department:
     (A) Finds that without a reduction in fund
value, bonds secured by the fund are likely to be in default; and
     (B) Imposes a moratorium on grants until
the requirements of paragraph (a) of this subsection are satisfied.
     (9)(a) The department may charge
administrative costs to the fund, but not to moneys segregated in the account
created by subsection (11) of this section, to pay for administrative costs
incurred by the department.
     (b) To the extent permitted by federal
law, administrative costs of the department may be paid from bond proceeds.
     (10) The department may establish other accounts
within the Water Fund for the payment of water projects costs, reserves, debt
service payments, credit enhancements, costs of issuing revenue bonds,
administrative costs and operating expenses or any other purpose necessary to
carry out ORS 285B.560 to 285B.599.
     (11) There is created within the Water
Fund a separate and distinct account for the proceeds from the sale of water
development general obligation bonds issued for safe drinking water projects
and credited to the special account under this section. Any investment earnings
thereon shall be segregated in and continuously appropriated to a special,
separately accounted for subaccount of this account. Moneys credited to this
account shall be maintained separate and distinct from moneys credited to
subaccounts created under subsection (10) of this section. Notwithstanding ORS
285B.566 or subsection (4) of this section, all repayments of moneys loaned
from the account created by this subsection, including interest on the moneys,
shall be credited to the Water Development Administration and Bond Sinking Fund
created by ORS 541.830.
     (12) As used in this section, “administrative
costs” include the department’s direct and indirect costs for investigating and
processing an application, developing a contract, monitoring the use of funds
by a municipality, investigating and resolving a budget discrepancy, closing a
project and providing financial and other assistance to a municipality. [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]
     285B.566
Use of receipts from projects.
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
Standards for eligibility of water projects; determination to issue bonds;
rules. (1) The Economic and
Community Development Department shall adopt by rule standards to determine the
eligibility of a water project for revenue bond financing under ORS 285B.560 to
285B.599.
     (2) Upon determining that a water project
is eligible for revenue bond financing, the department shall forward a
description of the project to the State Treasurer. The State Treasurer shall
determine whether to issue revenue bonds. [Formerly 285.950]
     285B.575
Issuance of revenue bonds.
(1) At the request of the Economic and Community Development Department, the
State Treasurer may issue in the name of the State of
     (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]
     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 for loan; authority of municipalities. (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 Economic and Community Development Department.
     (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 Economic and
Community Development Department. 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]
     285B.584
Authority of department. In
addition to any other powers granted by law in relation to a water project, the
Economic and Community Development Department 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 department 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]
     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
Economic and Community Development Department may provide any other form of
financial or other assistance that the department may consider appropriate to
assist municipalities with water projects, including direct purchase by the
department of goods and services related to a water project. [Formerly 285.962;
2001 c.883 §39a]
     285B.593
Technical assistance grants and loans; purposes; rules. Out of the moneys in the Water Fund, the
Economic and Community Development Department may make technical assistance
grants and loans to municipalities as specified by the 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]
     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
Repayment to Water Fund. (1)
If a municipality fails to comply with a contract entered into under ORS
285B.581, the Economic and Community 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
     (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]
     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
Policy. It is the intent of
the Legislative Assembly that in the administration of ORS 285B.740 to
285B.758, the Economic and Community Development Department work closely with
regional economic development organizations, community development
corporations, small business development centers and organizations that promote
and assist small businesses owned and operated by women and minorities. The
Economic and Community Development Department, to the maximum extent feasible
and consistent with prudent financial controls, may delegate the administration
and operation of the loan program created by ORS 285B.740 to 285B.758 to local
and community-based entities. To carry out the policy described in this
section:
     (1) The Economic and Community Development
Department may contract with any nonprofit corporation or agency with
experience and expertise in business finance to administer all or any part of
the loan program created by ORS 285B.740 to 285B.758.
     (2) When entering into an agreement for
the administration of the loan program by any nonprofit corporation or agency,
the Economic and Community Development Department may agree to waive any claims
it may have against such corporation or agency for losses arising out of the
normal course of business, so long as the corporation or agency does not act
negligently or fraudulently in providing loans under ORS 285B.740 to 285B.758.
     (3) When entering into an agreement to
have a nonprofit corporation or agency administer the loan program created by
ORS 285B.740 to 285B.758, the Economic and Community Development Department may
pay loan origination and loan servicing fees to the corporation or agency. The
amount of such fees may be determined in the agreement between the department
and the administering corporation or agency. [1991 c.688 §12; 2007 c.804 §79]
     285B.743
Application for entrepreneurial development loan; eligibility; rules. (1) Any individual or business firm may file
with the Economic and Community Development Department an application to borrow
money from the Oregon Entrepreneurial Development Loan Fund as provided in ORS
285B.740 to 285B.758. The application shall be filed in such a manner and
contain or be accompanied by such information as the department may require.
     (2) Upon receipt of an application under
this section, the Economic and Community Development Department shall determine
whether the applicant is eligible to receive a loan under ORS 285B.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]
     285B.746
Conditions required for loan approval. (1) The Economic and Community Development Department may approve a
loan requested in an application filed under ORS 285B.743 if, after
investigation, it finds that:
     (a) The applicant is enrolled in a small
business management program with a small business development center or
certified entity;
     (b) The applicant has prepared a business
plan for the business, which has been reviewed by a small business development
center or other entity certified by the Economic and Community Development
Department to review business plans; and
     (c) The applicant is not effectively owned
or controlled by another business entity or other person that, either by itself
or when combined with the applicant, is not eligible for a loan under ORS
285B.740 to 285B.758.
     (2) In addition to the requirements for
loan approval described in subsection (1) of this section, in order to obtain a
loan under ORS 285B.740 to 285B.758, an applicant must also satisfy two of the
following conditions:
     (a) The business or proposed business, at
the time of application, must not have been operating for more than 36 months.
     (b) The business must have annual revenues
of less than $175,000 in the 12-month period immediately preceding the date of
application.
     (c) The business or proposed business is
owned in whole or in part by a person certified as 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]
     285B.749
Additional conditions for loan approval; maximum term and amount of loan. (1) The Economic and Community Development
Department may approve an entrepreneurial development loan under ORS 285B.740
to 285B.758 if, after investigation, it finds that:
     (a) The loan has a reasonable prospect of
repayment from cash flow and collateral and that the loan is fully secured by
collateral value; and
     (b) The applicant provides equity funds
for the project in the form of cash or property in an amount equal to or
greater than 20 percent of the amount of the loan.
     (2) The Economic and Community Development
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]
     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
     (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]
     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]
_______________
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