Oregon Chapter 285b
Chapter 285B — Economic Development IIDownload Full 2005 Oregon Revised Statutes (coming soon!)
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Chapter 285B
— Economic Development II
2007 EDITION
ECONOMIC DEVELOPMENT II
ECONOMIC DEVELOPMENT
BUSINESS DEVELOPMENT PROJECTS
285B.050 Definitions
for ORS 285B.050 to 285B.098
285B.053 Borrowing
money from Oregon Business Development Fund for projects
285B.056 Fees;
rules
285B.059 Conditions
for commission approval of project; limits
285B.062 Agreement
for project loan; required provisions; interest rate
285B.065 Loans
in distressed areas exempt from requirements of ORS 285B.059 and 285B.062
285B.068 Payment
of moneys for project; applicant to pay percentage of loan principal to Oregon
Business Development Fund
285B.080 Director
as agent; limitation on authority
285B.081 Repayment
and collection; rules
285B.083 Use
of refinancing and other financial assistance
285B.086 Authority
to lend funds for joint governmental projects or match money; form of loan
application; loan limit
285B.089 Loan
contract; required provisions
285B.092 Oregon
Business Development Fund; uses
285B.093 Oregon
Targeted Development Account; purpose
285B.098 Status
of loan to county or municipality
SMALL BUSINESS DEVELOPMENT
(Generally)
285B.120
285B.123 Purpose
(Capital Access for Small Businesses)
285B.126 Definitions
for ORS 285B.126 to 285B.147
285B.129 Purpose
of ORS 285B.126 to 285B.147
285B.132 Contracts
with financial institutions for capital access; contents of contract; status of
information
285B.135 Loss
reserve accounts; rules
285B.138 Enrollment
of qualified loan in program; procedure; fee; transfers to loss reserve
accounts; rules
285B.141 Claims
for reimbursement of losses; amounts subject to reimbursement
285B.147 Capital
Access Fund; use; investment earnings; administrative expenses
(
285B.165 Purpose
of ORS 285B.165 to 285B.171
285B.168 Grants;
application; authorized recipients and uses; eligibility; report
285B.171 Short
title
(Miscellaneous)
285B.174 Programs
to assist businesses in procuring government contracts and grants
MICROENTERPRISE DEVELOPMENT
285B.178 Definitions
for Microenterprise Development Act
285B.179 Purposes
of Microenterprise Development Act
285B.186 Short
title
CREDIT ENHANCEMENT FUND
285B.200 Definitions
for ORS 285B.200 to 285B.218
285B.203 Purpose
of Credit Enhancement Fund
285B.206 Duties
of department under ORS 285B.200 to 285B.218; rules
285B.209 Fees
and terms for loan and credit guarantees for program under ORS 285B.200 to
285B.218
285B.215 Credit
Enhancement Fund; sources; uses
285B.218 Pledge
to assure repayment of loans or other credit
REGIONAL ECONOMIC DEVELOPMENT
285B.230 Definitions
for ORS 285B.230 to 285B.269
285B.233 Legislative
finding; purpose
285B.236 Guidelines
for regional investment strategies; rules
285B.239 Required
elements of regional investment strategies; rural set aside; regional board
dedication of moneys
285B.242 Adoption
of regional investment strategies; regional boards; hearing; review; approval
285B.245 Coordination
of regional investment strategies with other economic development efforts
285B.248 All
counties to be included in region
285B.260 Regional
Investment Fund; purpose; uses; rules
285B.263 Expenditure
of Regional Investment Fund; distribution
285B.264 Evaluations
required following distributions from Rural Investment Fund and Regional
Investment Fund
285B.266 Strategic
Reserve Fund; sources; uses
285B.269 Short
title
INDUSTRY DEVELOPMENT PROJECTS
285B.280 Definition
of “traded sector”
285B.283 Policy
285B.286 Industry
development activities
285B.290 Industry
Outreach Fund
STATE REVENUE BONDS FOR INDUSTRIAL, COMMERCIAL, SOLID WASTE DISPOSAL, RESEARCH
AND DEVELOPMENT USES
285B.320 Purpose
of ORS 285B.320 to 285B.371
285B.323 Definitions
for ORS 285B.320 to 285B.371
285B.326 Determination
of eligibility of projects for financing; fees
285B.329 Review
by Oregon Economic and Community Development Commission; exception
285B.335 Powers
of Economic and Community Development Department; lease requirements
285B.338 Powers
of
285B.341 Limitation
on state power
285B.344 Authority
to issue bonds
285B.350 Method
of issuing bonds
285B.353 Administration
expenses
285B.356 Refunding
bonds
285B.359 Validity
of bonds
285B.362 Covenants
in bonds
285B.365 Limitations
of bonds; recitals
285B.368 Powers
and rights of bondholders
285B.371 Loans
to eligible projects when state holds no interest
INFRASTRUCTURE PROJECTS
(Generally)
285B.410 Definitions
for ORS 285B.410 to 285B.482
285B.413 Legislative
findings
285B.419 Administration
of Special Public Works Fund; rules and policies
(Community Facilities Projects)
285B.422 Funding
of community facilities projects; criteria for project funding
(Financial Assistance for Projects)
285B.428 Application
for funds
285B.437 Contract
with municipality
285B.440 Maximum
amounts of grants; standards; rules
285B.449 Effect
of failure to comply or default
285B.455 Special
Public Works Fund; uses
285B.458 Funding
of distressed area and rural area infrastructure projects
285B.460 Funding
and assistance for municipal planning projects
285B.462 Funding
and assistance for municipal emergency projects
285B.465 Allowable
costs of projects
(Revenue Bond Financing)
285B.467 Standards
for eligibility for revenue bond financing; rules
285B.470 Powers
of department over revenue bond financing
285B.473 Issuance
of revenue bonds
285B.476 Application
of law to revenue bonds; proceeds; maximum duration of loans
285B.479 Nature
of revenue bonds
285B.482 Revenue
bonds as parity bonds; consolidation of bond proceeds; loans and consolidated
funds as security for infrastructure, community facility and water bonds
INFRASTRUCTURE PROJECTS FOR
285B.500 Purpose
of ORS 285B.500 to 285B.512; legislative findings
285B.503 Oregon
Unified International Trade Fund; purposes; sources
285B.506 Grant
agreements; maximum grant amount; terms of agreement; assignment of right to
receive grant moneys; agreement not to constitute state debt
285B.509 Agreements
between primary sponsor and
285B.512 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.530 Definitions
for ORS 285B.530 to 285B.548
285B.533 Issuance
of infrastructure lottery bonds; amount; use of bond proceeds
285B.548 Amount
of infrastructure lottery bonds
285B.551 Issuance
of additional lottery bonds; 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.560 Definitions
for ORS 285B.560 to 285B.599
285B.563 Water
Fund; uses; sources; maintenance of fund value; rules; coordination with other
agencies on safe drinking water projects
285B.566 Use
of receipts from projects
285B.569 When
constitutional restrictions apply to use of certain funds
(Revenue Bond Financing of Safe Drinking
Water Projects)
285B.572 Standards
for eligibility of water projects; determination to issue bonds; rules
285B.575 Issuance
of revenue bonds
285B.578 Nature
of revenue bonds
285B.581 Repayment
plans for loan; authority of municipalities
285B.584 Authority
of department
285B.587 Deposit
and use of bond proceeds
285B.590 Other
forms of financial assistance
285B.593 Technical
assistance grants and loans; purposes; rules
285B.596 Funding
of distressed area or nonurban water projects
285B.599 Repayment
to Water Fund
ENTREPRENEURIAL DEVELOPMENT
285B.740 Policy
285B.743 Application
for entrepreneurial development loan; eligibility; rules
285B.746 Conditions
required for loan approval
285B.749 Additional
conditions for loan approval; maximum term and amount of loan
285B.758
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 director’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 commission’s collateral in the project.
(2) The fund created by subsection (1) of
this section shall consist of:
(a) Fees as determined by the commission.
(b) Repayment of moneys loaned to
counties, municipalities or persons from the fund, including interest on those
moneys or including other receipts.
(c) Payment of such moneys as may be
appropriated to the fund by the Legislative Assembly.
(d) Moneys obtained from any interest
accrued from funds.
(e) Moneys from any grant made to the fund
by any federal agency.
(3) All repayments, interest and other
receipts from outstanding indebtedness or any other source shall be retained
and accumulated in the fund and shall be used for the purposes of the fund.
(4) Notwithstanding any other law, if at
any time there are insufficient funds in established business finance programs,
the commission may direct the transfer of unobligated funds from the fund. [Formerly
285.443; 1999 c.247 §3; 1999 c.509 §28; 2003 c.167 §5; 2007 c.804 §47]
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]