Oregon Statute | Act | Code |Title 26a Economic Development| US Code - US Statute

As used in ORS
285B.050 to 285B.098, unless the context requires otherwise:

(1) “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.

(2) “Commission” means the Oregon Economic and Community
Development Commission established under ORS 285A.040.

(3) “Fund” means the Oregon Business Development Fund.

(4) “Collateral” has the meaning given that term in ORS 79.0102 for
property subject to a security interest.

(5) “Municipality” means any city, municipal corporation or
quasi-municipal corporation.

(6) “Person” means any individual, association of individuals,
joint venture, partnership or corporation.

(7) “Local development group” means any public or private
corporation which 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.

(8) “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.

(9) “Owned and operated by women and minorities” means, with regard
to any specific business enterprise, the ownership or control of more
than 50 percent of the units of proprietary or ownership interest in that
business enterprise by individuals who are women or minority individuals,
as defined by ORS 200.005.

(10) “Emerging small business” has the meaning given that term by
ORS 200.005.

(11) “County” means any county or federally recognized Oregon
Indian tribe. [Formerly 285.403; 2001 c.445 §171; 2003 c.167 §1]Note: For transition provisions regarding secured transactions, see
notes under 79.0628.(1) Any county, municipality, person or any combination of
counties, municipalities and persons may file with the Oregon Economic
and Community Development Commission an application to borrow money from
the Oregon Business Development Fund for a business development project
as provided in ORS 285B.050 to 285B.098. The application shall be filed
in such a manner and contain or be accompanied by such information as the
commission may prescribe.

(2) Any applicant receiving a loan from the Oregon Business
Development Fund shall annually report to the Economic and Community
Development Department the estimated number of jobs created as a result
of the business development project financed under ORS 285B.050 to
285B.098. The reporting requirement under this section shall continue for
five years following the receipt of the loan proceeds or for the life of
the loan, whichever period is longer. Agreement to comply with the
requirements of this section shall be a condition for obtaining a loan
from the Oregon Business Development Fund. [Formerly 285.405] (1) Upon receipt of an
application under ORS 285B.053, the Oregon Economic and Community
Development Commission shall determine whether the plans and
specifications for the proposed business development project set forth in
or accompanying the application are satisfactory. If the commission
determines that the plans and specifications are not satisfactory, it
shall:

(a) Reject the application with a written statement of the reason
for that rejection; or

(b) Require the applicant to submit additional information of the
plans and specifications as may be necessary.

(2) The commission shall charge and collect from the applicant, at
the time the application is filed, a fee not to exceed $100. Moneys
referred to in this subsection shall be paid into the Oregon Business
Development Fund. [Formerly 285.410](1) The Oregon Economic and Community Development
Commission may approve a business development project proposed in an
application filed under ORS 285B.050 to 285B.098 if, after investigation,
it finds that:

(a) The proposed business development project is feasible and a
reasonable risk from practical and economic standpoints, and the loan has
reasonable prospect of repayment.

(b) The applicant can provide good and sufficient collateral for
the loan.

(c) Moneys in the Oregon Business Development Fund are or will be
available for the proposed business development project.

(d) There is a need for the proposed business development project,
and the applicant’s financial resources are adequate to ensure success of
the 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, nor is there an
amount equal to 20 percent of the total value of the fund in outstanding
loans with the commission at any one time for business development
projects located in the same county as the proposed project. However,
nothing in this paragraph prevents the commission from making a loan to
an emerging small business, as provided in subsection (6) of this
section, for a project in a distressed area or making a loan of less than
$100,000, as provided in ORS 285B.080.

(2) Preference shall be given to a business development project
which has a high ratio of employment to the amount of money sought to be
borrowed from the Oregon Business Development Fund, which benefits
businesses with fewer than 50 employees or which is located within a
rural or distressed area of the state. Consideration also shall be given
to the extent of participation by local development groups, and the
availability and cost of money to the applicant from, or through,
commercial lending or financial institutions, or other financial sources,
inasmuch as the Oregon Business Development Fund is intended to
complement, not supplant, other sources of money for economic development.

(3) The total amount of moneys loaned from the fund for any
business development project shall not exceed 50 percent of the cost of
the project. Working capital equity contributed by the applicant or a
related party shall not be included in the calculation of total project
costs.

(4) Except in cases where the applicant is a county or
municipality, no money shall be loaned from the fund for any business
development project unless there exists a commitment from a commercial or
private lender, or a local development group, to participate in the
financing of the project.

(5) To encourage private sector and local development group
participation in the financing of business development projects, the
commission may subordinate the security position of the fund to that of
other lenders.

(6) In each fiscal year of a biennium, not less than 15 percent of
all moneys available for lending from the Oregon Business Development
Fund are reserved for loans to certified emerging small business
enterprises which are located in or draw their workforces from within
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 (1)(g)(B),
make loans to service and retail businesses operated by certified
emerging small business enterprises.

(7) In the operation of the Oregon Business Development Fund, the
commission and the department shall, to the maximum extent feasible and
consistent with constitutional limitations, seek to assure that an amount
equal to that specified in subsection (6) of this section be loaned to
businesses owned and operated by women and minorities. [Formerly 285.413;
1999 c.509 §27; 2003 c.167 §2]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) May offer a discount not to exceed 10 percent of the
outstanding principal for the early repayment of the entire outstanding
principal of any loan. The commission by rule shall adopt policies that
provide for greater discounts for earlier repayments and that provide for
greater discounts for firms that have created at least one job per each
$15,000 loaned to the firm from the Oregon Business Development Fund.

(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 Oregon Business
Development 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.

(5) That the commission may institute appropriate action or suit to
prevent use of the facilities of a business development project financed
by the Oregon Business Development Fund if the applicant is delinquent in
the repayment of any moneys due the fund. [Formerly 285.415; 2003 c.167
§3]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](1) If the Oregon
Economic and Community Development Commission approves a loan for a
business development project and the applicant has received all necessary
permits required by federal, state and local agencies, the commission
shall pay moneys for the project from the Oregon Business Development
Fund, in accordance with the terms of the loan contract as prescribed by
the commission.

(2) Immediately upon receiving the loan proceeds, the applicant
shall pay to the commission one and one-half percent of the principal
amount of the loan, to be paid back to the Oregon Business Development
Fund. A maximum of three percent of the principal amount of the loan may
be paid from the fund to local development groups for the purposes set
forth in ORS 285B.092 (1)(a). [Formerly 285.417] Any county or
municipality that enters into a contract with the Oregon Economic and
Community Development Commission for a business development project and
repayment as provided in ORS 285B.062 may obtain moneys for repayment to
the Oregon Business Development Fund under the contract in the same
manner as other moneys are obtained for purposes of the county or
municipality or other moneys available to the developer. [Formerly
285.420] The Economic and Community
Development Department may, by contract, provide for local business
development funds to service outstanding loans from the Oregon Business
Development Fund. The department may provide for a fee of up to two
percent of the outstanding loan balance on such loans to compensate local
business development funds for services provided under this section.
[Formerly 285.425] The Oregon Economic and Community
Development Commission shall submit to the Legislative Assembly and the
Governor a biennial report of the transactions of the Oregon Business
Development Fund in such detail as will adequately indicate the condition
of the fund. [Formerly 285.430] (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] 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 shall be first 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](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] 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, 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] (1) There is
created within the State Treasury a revolving fund known as the Oregon
Business Development Fund, separate and distinct from the General Fund.
Interest earned by the fund shall be credited to the fund. Moneys in this
fund are continuously appropriated to the Oregon Economic and Community
Development Commission for the following purposes:

(a) Administrative expenses of the commission in 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) Purchase or buy out of superior or prior liens or mortgages on
or a security interest in any business development project financed in
part by a loan from the fund, when the commission determines:

(A) A loan from the fund is in default and is in liquidation or at
risk of being forced into liquidation by another creditor to the project;

(B) Such action is necessary to maintain or enhance the value of
the commission’s collateral in the project; and

(C) The amount of the purchase or buyout of superior or prior liens
or mortgages on that project does not exceed $1 million.

(2) The fund created by subsection (1) of this section shall
consist of:

(a) Fees required by ORS 285B.056 (2) and 285B.068 (2).

(b) Repayment of moneys loaned to counties, municipalities or
persons from the Oregon Business Development Fund, including interest on
those moneys.

(c) Payment of such moneys as may be appropriated to the fund by
the Legislative Assembly.

(d) Moneys obtained from any interest accrued from funds.

(e) Moneys from any grant made to the fund by any federal agency.

(3) Notwithstanding any other law, if at any time there are
insufficient funds in the Oregon Entrepreneurial Development Loan Fund
established by ORS 285B.758, the Director of the Economic and Community
Development Department may direct the transfer of unobligated funds from
the Oregon Business Development Fund to the Oregon Entrepreneurial
Development Loan Fund. Transfers under this subsection shall be in
amounts necessary to meet the reasonably foreseeable demand for
participation in the entrepreneurial loan program. [Formerly 285.443;
1999 c.247 §3; 1999 c.509 §28; 2003 c.167 §5] (1) The
Oregon Economic and Community Development Commission may establish the
Oregon Targeted Development Account as an account within the Oregon
Business Development Fund.

(2) If the account is established, 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 Oregon to encourage investment
in distressed areas, as defined by the department.

(3) The Economic and Community Development 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 Oregon
Economic and Community Development Commission.

(4) ORS 285B.059 (2) does not apply to business development
projects financed wholly or in part with moneys from the Oregon Targeted
Development Account. [1999 c.247 §1; 2003 c.167 §6] All
payments, receipts and interest from outstanding indebtedness or any
other source shall be retained and accumulated in the Oregon Business
Development Fund and shall be used for the purposes of the fund.
[Formerly 285.445] 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]SMALL BUSINESS DEVELOPMENT(Generally)ORS 271.510,
271.520, 285B.092, 285B.123, 285B.165 to 285B.171, 285B.320 to 285B.326,
285B.335, 285B.341, 285B.344, 285B.350, 285B.365, 285B.371, 657.471,
659A.015 and 777.250 shall be known as the Oregon Small Business
Development Act of 1983. [Formerly 285.500] (1) The Legislative Assembly finds that:

(a) Small businesses comprise more than 97 percent of the business
entities in this state.

(b) Small businesses provide more than three-quarters of the
private sector jobs in this state.

(c) The small business contribution to the economy of this state
exceeds the national average contribution and its continuance is vital to
the economic health and growth of this state.

(d) All national economic indicators establish that the greatest
source of future new jobs is in the small business sector of the economy.

(2) 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.

(3) As used in the Oregon Small Business Development Act of 1983,
“small business” means a manufacturing business having 200 or fewer
employees and all other forms of business having 50 or fewer employees.

(4) The provisions of ORS 285B.120 and 657.471 are intended to
assist in carrying out the Oregon Small Business Development Act of 1983.
[Formerly 285.503](Capital Access for Small Businesses) As used in ORS
285B.126 to 285B.147, unless the context requires otherwise:

(1) “Financial institution” means a financial institution, as
defined in ORS 706.008.

(2) “Loss reserve account” means an account in the State Treasury
or any financial institution which is established and maintained by the
Economic and Community Development Department for the benefit of a
financial institution participating in the capital access program
established under ORS 285B.126 to 285B.147.

(3) “Qualified business” means any person, conducting business for
profit or not for profit, that is authorized to conduct business in the
State of Oregon.

(4) “Qualified loan” means a loan or portion of a loan made by a
financial institution to a qualified business for any business activity
that has its primary economic effect in Oregon. The term does not include:

(a) A loan for the construction or purchase of residential housing.

(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] (1) The Legislative Assembly finds that:

(a) There is a persistent shortage of equity capital available to
small businesses in Oregon.

(b) Small businesses make important contributions to economic
growth and vitality in this state.

(c) Many financial institutions in Oregon are limited in their
ability to provide financing to small but rapidly growing businesses.

(2) 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](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 Economic and Community Development
Department and a financial institution under this section shall provide:

(a) For the creation of a loss reserve account by the department
for the benefit of the financial institution.

(b) That the financial institution, qualified business and the
department will deposit moneys to the credit of the institution’s loss
reserve account when the financial institution makes a qualified loan to
a qualified business.

(c) That the department will pay moneys in the loss reserve
account, not exceeding an amount equal to the total amount credited to
the loss reserve account, to the financial institution to reimburse the
institution for any financial loss incurred as a result of any qualified
loan made under the capital access program established by ORS 285B.126 to
285B.147.

(d) That the liability of the State of Oregon and the Economic and
Community Development Department to the financial institution under the
contract is limited to the amount of money credited to the loss reserve
account of the institution.

(e) That the financial institution shall provide such information
as the department may require, including financial information that is
identifiable with, or identifiable from, the financial records of a
particular customer who is the recipient of a qualified loan.

(f) For such other terms as the department may require.

(3) A financial institution is not subject to ORS 192.555 (1) when
the financial institution provides information to the Economic and
Community Development Department as required by subsection (2)(e) of this
section. [Formerly 285.513] (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 deposit up to $50,000 per financial institution in a loss
reserve account to encourage a financial institution to participate in
the capital access program. The total amount of such deposits may not
exceed $250,000 per biennium.

(4) All moneys in a loss reserve account established under ORS
285B.126 to 285B.147 are the property of the State of Oregon.

(5) The amounts transferred from the Capital Access Fund to a loss
reserve account on behalf of any single qualified business shall not
exceed $150,000. [Formerly 285.515; 2003 c.167 §7](1) When a financial institution
participates in the capital access program established by ORS 285B.126 to
285B.147, 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. [Formerly 285.517](1) As used in this section,
“brownfield” and “environmental action” have the meanings given those
terms in ORS 285A.185 and 285A.188, respectively.

(2) Notwithstanding the provisions of ORS 285B.138 (3), the
Economic and Community Development Department shall adopt rules that
provide that, for qualified loans to businesses in distressed areas, as
defined by the department, or for use in an environmental action on
brownfields, the department shall 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. However, the total amount transferred
under this section shall not exceed 40 percent of the moneys appropriated
to the Capital Access Fund. [1991 c.688 §15; 1993 c.765 §80; 1995 c.71
§1; 1997 c.738 §4; 1999 c.247 §5; 2001 c.96 §3](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] (1) The Economic
and Community Development Department shall annually prepare a report
conforming to generally accepted accounting principles that describes the
financial condition of the Capital Access Fund.

(2) The reports required under this section shall be submitted to
the Governor and to the joint Legislative Committee on Trade and Economic
Development. [Formerly 285.525](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) The Economic and Community Development 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](1) Notwithstanding any other law, if at any time there are
insufficient funds in the Capital Access Fund established by ORS 285B.147
to continue the operation of the program authorized by ORS 285B.126 to
285B.147, the Director of the Economic and Community Development
Department may direct the transfer of unobligated funds from the Oregon
Business Development Fund to the Capital Access Fund. Such transfers
shall be in amounts necessary to meet the reasonably foreseeable demand
for participation in the capital access program.

(2) Notwithstanding any other law, if at any time after the
transfer of funds provided for in subsection (1) of this section, there
are insufficient funds in the Capital Access Fund established by ORS
285B.147 to continue the operation of the program authorized by ORS
285B.126 to 285B.147, the Director of the Economic and Community
Development Department may direct the transfer of unobligated funds from
the Credit Enhancement Fund to the Capital Access Fund. Such transfers
shall be in amounts necessary to meet the reasonably foreseeable demand
for participation in the capital access program. The use of funds so
transferred shall continue to be governed by ORS 285B.215 (3). [Formerly
285.528]Note: 285B.150 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.(Local Business Development) As used in ORS
285B.074 and 285B.162, unless the context requires otherwise, “local
business development fund” means a private nonprofit corporation or other
nonprofit entity, a public corporation or public agency that makes loans
or provides other financial assistance to businesses in this state for
the purpose of promoting economic development. [Formerly 285.535; 2001
c.104 §98] The
Economic and Community Development Department shall work with local
business development funds to strengthen the coordination in the
marketing of finance programs for small business, the review and analysis
of loan applications and the operation of publicly operated business
finance programs. [Formerly 285.537](Small Business Development Center) (1) The purpose of
ORS 285B.165 to 285B.171 is to establish and sustain a statewide network
of small business development centers.

(2) The Legislative Assembly finds that:

(a) It is in the state’s interest to help small businesses develop
and improve skills in such areas as marketing, management and capital
formation through a network of small business development centers;

(b) Small business employers create most of the new jobs in Oregon
and are vital to Oregon’s long term economic vitality;

(c) Community colleges and state universities can link small
business with college resources, expert resource people in the business
community and other training resources throughout the state; and

(d) Information resources, business counseling and training
assistance in a convenient format support the vitality of small business.
[Formerly 285.540; 2001 c.148 §3]
As used in ORS 285B.165 to 285B.171, “state university” means a state
institution of higher education listed in ORS 352.002. [2001 c.148 §2](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; and

(c) A plan for evaluating the effect of the program on small
business clients served.

(2) The grants made under subsection (1) of this section are to be
used by the grant recipient to provide funds for:

(a) Small business development center staff and support staff;

(b) Expert resource persons from the business community;

(c) Other training and business resources 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. [Formerly
285.543; 2001 c.148 §4; 2003 c.773 §15]ORS 285B.165 to 285B.171 shall be known and
may be cited as the “Small Business Training Assistance Act.” [Formerly
285.547](Miscellaneous)In cooperation with other state and public
agencies, state universities as defined in ORS 285B.166 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]MICROENTERPRISE DEVELOPMENT As used in ORS
285B.178 to 285B.183:

(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 18, 2001.

(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, 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 18, 2001. [2001 c.419 §2]Note: 285B.178 to 285B.183 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. (1) The Legislative Assembly finds that:

(a) There is a need to develop and expand businesses in
economically distressed communities in both rural and urban areas;

(b) There is a need to assist Oregonians who are unemployed,
underemployed or in low income jobs;

(c) Microenterprises can provide a means for unemployed,
underemployed or low income individuals to find and sustain productive
work;

(d) Microenterprises, including self-employment, can enable people
with disabilities to use their management skills to create and provide
products and services, to acquire new skills in money management and
business development and to develop pride and self-esteem;

(e) Microenterprises can provide opportunities for economically
distressed communities to thrive, one microentrepreneur at a time;

(f) Microenterprises, including self-employment and start-up
businesses, are important elements of the Oregon economy and play a vital
role in job creation;

(g) There is a lack of access to capital and training and technical
assistance for low income and very low income microentrepreneurs;

(h) Many low income and very low income microentrepreneurs need
microlending services and training and technical assistance to start,
operate or expand their businesses;

(i) Local microenterprise support organizations have demonstrated
cost-effective delivery methods for providing microlending services and
training and technical assistance; and

(j) Local and state charitable foundation support, federal program
funding and private sector support can be leveraged by a statewide
program for development of microenterprises.

(2) The purposes of ORS 285B.178 to 285B.183 are to:

(a) 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;

(b) Enhance the development of a statewide infrastructure for
microenterprise support; and

(c) 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 to
285B.183, and to leverage additional funds from sources other than moneys
appropriated from the General Fund. [2001 c.419 §3]Note: See note under 285B.178. The Economic and Community Development
Department shall submit a biennial report to the Governor and the
Legislative Assembly outlining the actions that the department has taken
related to microenterprise development pursuant to ORS 285A.045 and
285A.050. [2001 c.419 §5]Note: See note under 285B.178.ORS 285B.178 to 285B.183 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 As used in ORS
285B.200 to 285B.218:

(1) “Department” means the Economic and Community Development
Department.

(2) “Eligible project costs” includes productive equipment and
machinery, working capital for operations and export transactions and
such other costs as the department, by rule, may provide.

(3) “Emerging small business” has the meaning given that term in
ORS 200.005.

(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
entity with an average annual employment not exceeding 200 employees
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]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. (1) The Legislative
Assembly finds that:

(a) Small and medium sized businesses in general, and firms that
produce value-added agricultural products in particular, are adversely
affected by the current credit crisis.

(b) Small companies have historically had a difficult time
obtaining credit, especially on terms that allow them to grow and to
create jobs.

(c) The limited availability of credit for export transactions
limits the ability of small and medium sized businesses in Oregon to
compete in international markets.

(d) The challenge for the public economic sector is to design
programs, in conjunction with lending institutions in the private
economic sector, that fill the gaps in credit availability and export
finance.

(e) Without substantial financial assistance to promote
redevelopment, properties containing brownfields, as defined in ORS
285A.185, often remain abandoned or underutilized because of the
uncertainty concerning environmental contamination at the sites and the
cost of reducing or eliminating the contamination.

(2) The Legislative Assembly declares that it is the purpose of the
Credit Enhancement Fund established under ORS 285B.215 (1) and (2) to:

(a) Create incentives and assistance to increase the flow of
private capital to the value-added agriculture industries.

(b) Promote industrial modernization and technology adoption.

(c) Encourage the retention and creation of family wage jobs.

(d) Encourage the export of goods and services by Oregon businesses
in international markets.

(e) Encourage and promote the redevelopment of brownfields, as
defined in ORS 285A.185, by providing assistance to perform environmental
action, as defined in ORS 285A.188, on brownfield sites. [Formerly
285.468; 2001 c.96 §4]Note: See note under 285B.200.218;
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.

(5) The department may adopt procedures for loan or credit
guarantees whereby a qualified business may apply directly to the
department for a preliminary guarantee commitment. Such preliminary
guarantee commitments may be issued by the department subject to the
qualified business securing a commitment for financing from a financial
institution. The procedures adopted by the department shall specify the
process by which a financial institution may obtain a final loan or
credit guarantee. [Formerly 285.474]Note: See note under 285B.200.206 and under ORS 285B.200 to 285B.218. (1) When making
loan or credit guarantees under the program established under ORS
285B.206, 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.

(3) When making loan or credit guarantees under the program
established under ORS 285B.200 to 285B.218, the department shall
establish fees and other terms for loan or credit guarantees that are
calculated to reasonably assure that qualified businesses with access to
other forms of private capital will find it economical not to participate
in the program.

(4) With due regard for the possibility of losses and
administrative costs, the department shall set fees and other terms at
levels sufficient to reasonably assure that the program is self-financing.

(5) For a preliminary guarantee commitment issued under ORS
285B.206 (5), the department may charge the qualified business an
application fee. The fee shall be in addition to any other fees charged
by the department under this section and may not exceed $250 for each
application. [Formerly 285.476]Note: See note under 285B.200.The Economic and Community
Development Department shall consider the advice and recommendations of
the Oregon Economic and Community Development Commission in developing
and implementing the programs provided for in ORS 285B.126 to 285B.147,
285B.150 and 285B.200 to 285B.218. [Formerly 285.478]Note: See note under 285B.200. (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
United States or by any other provider of insurance for export
transactions.

(3) In each biennium, not less than 20 percent of all moneys
available for loan guarantees from the Credit Enhancement Fund is
reserved for loan guarantees to emerging small businesses. [Formerly
285.471]Note: See note under 285B.200. (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 the allocation under ORS 391.130 to the
Regional Light Rail Extension Construction Fund and the allocation to the
Department of Environmental Quality for the debt services described in
section 1, chapter 537, Oregon Laws 1993. [Formerly 285.481]Note: See note under 285B.200.REGIONAL ECONOMIC DEVELOPMENT 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 each biennium, that focuses on the economic
development priorities of each region, including but not limited to:

(a) Supporting communities and populations that have been left out
of Oregon’s economic expansion and diversification;

(b) Helping companies that are starting up or are already doing
business in Oregon to compete globally;

(c) Ensuring that economic strategies reinforce Oregon’s long-term
prosperity and livability; and

(d) Coordinating efforts of economic development, education and
workforce development.

(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] (1) The Legislative Assembly
finds that regional investment strategies are essential to the state’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 Oregon;

(d) To effectively utilize available resources through a regional
investment program;

(e) To leverage and attract capital investment in Oregon
communities; and

(f) To coordinate private and public resources to support economic
development. [Formerly 285.633; 1999 c.509 §48; 2003 c.773 §17] (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. 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]
Regional investment strategies shall serve as a basis for state financial
assistance to projects or activities to meet regional 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:

(1) An identification of short-term and long-term regional economic
development priorities;

(2) An analysis of the unique or significant resources that provide
the foundation for the regional investment strategy;

(3) An analysis of barriers to implementation of the regional
investment strategy and an identification of the means to overcome those
barriers;

(4) 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;

(5) A two-year investment strategy that describes projects and
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 or the Rural Investment Fund to provide moneys
for the administration or financing of long-term or future economic
development projects or activities;

(6) A plan for involvement of disadvantaged and minority groups in
the region;

(7) Performance measurements for meeting the objective set forth in
ORS 285B.236 (2). Each region shall develop an evaluation plan, as part
of its 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;

(8) 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, the Governor and the Legislative Assembly; and

(9) An overall strategy management 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. [Formerly 285.637; 1999 c.509 §50; 2001 c.552 §2; 2003 c.773 §19](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 economic sector. The regional board shall include members who
are representatives of rural interests, including local government.

(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 Governor the regional investment strategy described in
ORS 285B.239.

(4) In developing the implementation strategy provided for in ORS
285B.239 (5), a regional board shall consult with industries, cities,
ports, special districts, regional workforce committees and federally
recognized Oregon Indian tribes located in the region.

(5) A region shall submit the regional investment strategy to the
Economic and Community Development Department for review by the Oregon
Economic and Community Development Commission. The department shall work
with regions to refine regional investment strategies and ensure
compliance with the requirements of ORS 285B.230 to 285B.269. The Oregon
Economic and Community Development Commission shall make recommendations
on approval of the strategy to the Governor for final approval or shall
return the strategy to the regional board for further modification.

(6) The Economic and Community Development Department 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 Governor, the regional board, in each biennium, shall update the
strategy and recommend a two-year implementation strategy. The
implementation strategy shall be adopted by the governing bodies of the
counties after input from the cities, ports, special districts, Indian
tribes, private economic sector and other parties in the region, shall be
reviewed by the Oregon Economic and Community Development Commission and
must be approved by the Governor before taking effect.

(8) The Governor 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](1) After
considering the recommendations submitted, the Governor may adopt a
proposed regional investment strategy or return the strategy to the
affected counties for modification.

(2) 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 and industrial marketing projects funded through the
regional investment program established under ORS 285B.230 to 285B.269.

(3) The department shall discourage competition among regions for
existing Oregon businesses and economic activity. [Formerly 285.643; 1999
c.509 §52; 2003 c.773 §21] 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] (1) There is created a Rural
Investment Fund, separate and distinct from the General Fund, to consist
of all moneys credited thereto, including moneys from the Administrative
Services Economic Development Fund, and all interest earned on the Rural
Investment Fund. The Rural Investment Fund is created to provide a
flexible funding source for financing those locally determined programs
and projects that may not be eligible for financing through other state
and federal funding sources. The moneys in the fund are continuously
appropriated to the Economic and Community Development Department to be
used to promote economic development in rural communities.

(2) The department may use moneys in the Rural Investment Fund to
pay for the administrative expenses of operating the economic development
programs under ORS 285B.257.

(3) After consulting with regional boards and representatives of
rural communities, the department, by rule, shall adopt standards,
objectives and criteria for the use and distribution of moneys in the
Rural Investment Fund. [Formerly 285.648; 1999 c.509 §54; 2003 c.773 §23](1)
Moneys in the Rural Investment Fund shall be distributed to regional
boards designated under ORS 285B.242 for economic development programs
and projects designed to benefit rural communities.

(2) Each regional board shall update the regional investment
strategy prepared under ORS 285B.239 to include a rural action plan
consistent with the purpose and objectives of the Rural Investment Fund.
A rural action plan must be reviewed by the Oregon Economic and Community
Development Commission and approved by the Governor before any moneys
from the Rural Investment Fund may be distributed for implementing any
program or project described in the rural action plan. Moneys from the
Rural Investment Fund shall not be used to retire any debt or pay for
expenditures made or expenses incurred prior to the approval of a rural
action plan.

(3) In each biennium, a regional board may dedicate a portion of
the moneys distributed to the board from the Rural Investment Fund for
technical assistance and staff support for updating the rural action plan
and for developing programs and projects under the rural action plan. The
regional board shall determine the amount of moneys dedicated to such
purposes. Notwithstanding subsection (2) of this section, the Economic
and Community Development Department may distribute moneys from the Rural
Investment Fund for technical assistance and staff support prior to
approval of the rural action plan.

(4) In each biennium, each regional board shall submit a report on
the expenditure of moneys received under this section and shall indicate
the success of the programs and projects financed with moneys from the
Rural Investment Fund. The success of programs and projects shall be
defined by specific performance measurements developed by the regional
board, and performance reports shall be submitted as required for
regional investment strategies under ORS 285B.239 (8). Reports required
by this subsection shall be made part of the biennial report submitted to
the Governor and the Legislative Assembly under ORS 285B.263.

(5) Moneys from the Rural Investment Fund shall not be used to
substitute for local government expenditures for existing and continuing
public services. The Economic and Community Development Department shall
adopt rules to carry out the provisions of this subsection. [Formerly
285.649; 1999 c.509 §55; 2003 c.773 §24] (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 171.845, 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 or to reimburse
any person or municipality for expenditures made or expenses incurred
prior to the adoption of a regional investment strategy. [Formerly
285.650; 1999 c.509 §56; 2003 c.773 §25] (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; and

(c) Personnel necessary to administer the strategies and projects
or activities.

(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 state 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 Governor and the Legislative Assembly that describes the expenditure
of moneys received under this section and indicates the success, as
defined by specified performance measurements, of the funded projects 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](1) Notwithstanding
ORS 285B.254 (3), distributions from the Rural Investment Fund created
under ORS 285B.254 and the Regional Investment Fund created under ORS
285B.260 shall be evaluated to determine if the regional investment
strategy funded by a distribution has met the criteria established by the
strategy for:

(a) 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.

(2) The Economic and Community Development Department shall adopt
rules to ensure that future grants to a regional board are based on the
past performance of the board in meeting the criteria established for the
regional investment strategy described in subsection (1) of this section.
[2003 c.773 §26a] (1) There is
created a Strategic Reserve Fund, separate and distinct from the General
Fund, to consist of all moneys credited thereto, including moneys from
the Administrative Services Economic Development Fund, and all interest
earned on the Strategic Reserve Fund. The fund is continuously
appropriated to the Economic and Community Development Department to be
used to implement statewide strategies for economic development.

(2) The fund shall not be used to retire any debt or, except upon
approval of the Joint Ways and Means Committee or, if the Legislative
Assembly is not in session, the Emergency Board, to pay administrative
expenses of the department. Expenses that are project related shall not
be considered to be administrative expenses of the department.

(3) The department is directed to place particular emphasis on
investments that assist communities, businesses or industries in
cost-effective projects that assist the creation, expansion and
preservation of the principal traded sector industries of Oregon and
encourage diversification and preservation of regional economies. The
fund shall be used to assist economic and community development projects
of public entities, industry groups or businesses with significant
long-term, regional or statewide economic impacts, to provide interim
financing mechanisms to augment existing public or private sector
programs or to analyze statewide, long-term economic issues and
opportunities. [Formerly 285.653; 1999 c.509 §19]ORS 285B.230 to 285B.269 shall be known as
the Regional Economic Development Act. [Formerly 285.655]INDUSTRY DEVELOPMENT PROJECTS 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] The Legislative Assembly declares that it is the
policy of the State of Oregon:

(1) Working with private firms, industry associations and others,
to encourage cooperative sector-based strategies to promote industrial
competitiveness.

(2) That programs to develop particular sectors of this state’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 Oregon firms face national and international competition.

(4) To provide an adequate supply of industrial and traded sector
sites that are available for immediate development. [Formerly 285.767;
2003 c.800 §22] 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]STATE REVENUE BONDS FOR INDUSTRIAL, COMMERCIAL, SOLID WASTE DISPOSAL,
RESEARCH AND DEVELOPMENT USES The Legislative Assembly finds that by use of the
powers and procedures described in ORS 285B.320 to 285B.371 for the
assembling and financing of lands for industrial, solid waste disposal,
commercial and research and development uses and for the construction and
financing of facilities for such uses, financed through the issuance of
bonds secured solely by the properties, lease payments, loan payments,
rentals or other financing payments thus made available, the state may be
able to reduce substantially in various counties the occurrence of
economic conditions requiring more expensive remedial action. It is the
purpose of ORS 285B.320 to 285B.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] As used in ORS
285B.320 to 285B.371, unless the context requires otherwise:

(1) “Bond” means any evidence of indebtedness, including but not
limited to any bond, note, obligation, loan agreement, financing
agreement, contracts for leasing, rental or financing of real or personal
property, including contracts for rental, long term leases under an
optional contract for purchase, financing agreements with vendors,
financial institutions or others or for purchase of any property secured
by revenues or from other financing sources as provided in ORS 285B.320
to 285B.371. A bond, as defined in this subsection and issued under ORS
285B.320 to 285B.371, shall be considered a revenue bond for purposes of
ORS 286.031.

(2) “Economic development project” includes any properties, real or
personal, used or useful in connection with a revenue producing
enterprise or any solid waste disposal facilities and related vehicles,
rolling stock or equipment. “Economic development project” shall 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 adopted under ORS 285A.110. The commission
may treat as a single eligible project for bonding purposes any number of
economic development projects determined to be eligible projects.
[Formerly 285.315; 1999 c.509 §30; 2001 c.680 §3](1) Upon determining an economic development project an “eligible
project,” the Oregon Economic and Community Development Commission shall
forward the application to the State Treasurer, who shall determine
whether to issue the bonds.

(2) The commission shall collect the fees set forth in subsection
(3) of this section from an applicant that seeks to have an economic
development project declared eligible for financing. The fee may be
collected even though the project has not been determined to be eligible
for financing. Moneys collected under this subsection 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 any program it is authorized to operate.

(3) The fees described in subsection (2) of this section are as
follows:

(a) $250 for an application of not to exceed $500,000.

(b) $500 for an application of more than $500,000.

(c) A closing fee of not to exceed one-half of one percent of the
total bond issue for the project, as determined by the commission.
[Formerly 285.320; 1999 c.509 §31; 2003 c.167 §8](1) The state, acting through the State Treasurer,
shall not undertake to finance any economic development project pursuant
to ORS 285B.320 to 285B.371 before the Oregon Economic and Community
Development Commission has reviewed the project pursuant to standards
adopted under ORS 285A.110.

(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 a solid waste disposal facility and related
vehicles, rolling stock or equipment when the project does not require
any private activity volume cap under ORS 286.605 to 286.645. [Formerly
285.325; 1999 c.509 §32; 2001 c.680 §4] (1) The undertaking of
any eligible project must be requested by official action of the
governing body of the county taken at a regular or duly called special
meeting thereof by the affirmative vote of a majority of its members.

(2) The governing body of any Oregon county is encouraged to
forward appropriate prospective eligible projects to the Oregon Economic
and Community Development Commission for processing pursuant to ORS
285B.326.

(3) For purposes of this section, for projects located on a
federally recognized Oregon Indian reservation, the governing body of a
county shall be considered to be the governing body of the federally
recognized Oregon Indian tribe.

(4) If the governing body is requesting the undertaking of an
eligible project under ORS 285C.609, it may impose additional reasonable
requirements on the applicant. [Formerly 285.330; 1999 c.509 §33] In addition to any other powers
granted by law or by charter, in relation to an eligible project, the
state, acting through the State Treasurer or a designee thereof, may:

(1) Enter into agreements to finance the costs of an eligible
project by loaning or otherwise making available the proceeds of bonds
authorized by ORS 285B.344 to any person, firm or public or private
corporation or federal or state governmental subdivision or agency under
such terms and with such security as the state may approve;

(2) Lease and sublease eligible projects to any person, firm or
public or private corporation or federal or state governmental
subdivision or agency in such manner that rents to be charged for the use
of such projects shall be established, and revised from time to time as
necessary, so as to produce income and revenue sufficient to provide for
the prompt payment of principal of and interest on all bonds issued under
this section when due, and the lease or financing agreement shall also
provide that the lessee, borrower or financing party shall be required to
pay all expenses of the operation and maintenance of the project
including, but without limitation, adequate insurance thereon and
insurance against all liability for injury to persons or property arising
from the operation thereof, and all taxes and special assessments levied
upon or with respect to the leased premises and payable during the term
of the lease, during which term ad valorem taxes in the same amount and
to the same extent as though the lessee were the owner of all real and
personal property comprising the project;

(3) Pledge and assign to the holders of such bonds or a trustee
therefor all or any part of the revenues of one or more eligible projects
owned or to be acquired by the state, and define and segregate such
revenues or provide for the payment thereof to a trustee;

(4) Mortgage or otherwise encumber eligible projects in favor of
the holders of such bonds or in favor of any escrow agent, vendor,
lender, other financing party or trustee therefor. However, in creating
any such mortgages or encumbrances the state can not obligate itself
except with respect to the project;

(5) Make all contracts, execute and deliver all instruments, and do
all things necessary or convenient in the exercise of the powers granted
by this section, or in the performance of its covenants or duties, or in
order to secure the payment of its bonds; including a contract entered
into prior to the construction, acquisition and installation of the
eligible project authorizing the lessee, borrower or other financing
party, subject to such terms and conditions as the state shall find
necessary or desirable and proper, to provide for the construction,
acquisition and installation of the buildings, improvements and equipment
to be included in the project by any means available to the lessee,
borrower or other financing party, and in the manner determined by the
lessee, borrower or other financing party, and without advertisement for
bids as may be required for the construction, acquisition or installation
of other public facilities;

(6) Enter into and perform such contracts and agreements with
political subdivisions and state agencies as the respective governing
bodies of the same may consider proper and feasible for or concerning the
planning, construction, installation, lease, or other acquisition, and
the financing of such facilities, which contracts and agreements may
establish a board, commission or such other body as may be deemed proper
for the supervision and general management of the facilities of the
eligible project;

(7) Accept from any authorized agency of the state or federal
government loans or grants for the planning, construction, acquisition,
leasing, or other provision of any eligible project, and enter into
agreements with such agency respecting such loans or grants; and

(8) 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. [Formerly 285.335; 1999 c.509 §34; 2001
c.680 §5; 2003 c.167 §11]In carrying out its duties under ORS 285B.320 to 285B.371,
the Oregon Economic and Community Development Commission, acting for and
in behalf of the state as its duly authorized agency, may:

(1) Acquire, construct and hold in whole or in part any lands,
buildings, easements, water and air rights, improvements to lands and
buildings and capital equipment to be located permanently or used
exclusively on such lands or in such buildings, which are deemed
necessary in connection with an eligible project to be situated within
the state, and construct, reconstruct, improve, better and extend such
projects, and enter into contracts therefor; and

(2) Sell and convey all properties acquired in connection with
eligible projects, including without limitation the sale and conveyance
thereof subject to any mortgage and the sale and conveyance thereof under
an option granted to the lessee of the eligible project, for such price,
and at such time as the state may determine. However, no sale or
conveyance of such properties shall ever be made in such manner as to
impair the rights of interests of the holder, or holders, or any bonds
issued under the authority of ORS 285B.320 to 285B.371. [Formerly
285.340; 1999 c.509 §35] 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] (1) If the State Treasurer
determines that bonds should be issued:

(a) The State Treasurer may authorize and issue in the name of the
State of Oregon 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 and issued in the manner prescribed by ORS 286.010,
286.020 and 286.105 to 286.135, and refunding bonds may be issued to
refinance such bonds.

(b) The State Treasurer shall designate the underwriter, vendor,
lender or other financing party, if any, and enter into appropriate
agreements with each to carry out the provisions of ORS 285B.320 to
285B.371. The Economic and Community Development Department, with the
approval of the State Treasurer, shall designate the trustee and enter
into appropriate agreements with the trustee to carry out the provisions
of ORS 285B.320 to 285B.371. The department may appoint bond counsel as
authorized by ORS 288.523, or the State Treasurer may enter into an
agreement with bond counsel if the services provided under the agreement
comply with the provisions of ORS 288.523 and the appointment is approved
by the Attorney General as required by ORS 288.523. The department may
not make an appointment or enter into an agreement under this paragraph
unless the State Treasurer has reviewed and approved the terms and
conditions of the appointment or agreement. ORS 279A.140 does not apply
to any appointment or agreement described in this paragraph.

(2) Any escrow agent, bond registrar, paying agent or trustee, if
any, designated by the State Treasurer to carry out all or part of the
powers specified in ORS 285B.335 must agree to furnish financial
statements and audit reports for each bond issue. [Formerly 285.350; 1999
c.509 §36; 2001 c.536 §1; 2003 c.167 §13; 2003 c.794 §240] In determining
whether to issue bonds under ORS 285B.320 to 285B.371, the State
Treasurer shall consider:

(1) The market for the types of bonds proposed for issuance.

(2) The terms and conditions of the proposed issue.

(3) Such other relevant factors as the State Treasurer considers
necessary to protect the financial integrity of the state. [Formerly
285.355; 1999 c.509 §37] Bonds authorized under ORS
285B.320 to 285B.371 shall be issued in accordance with the provisions of
ORS 288.515 to 288.550. [Formerly 285.360] The administrative expenses of
the State Treasurer shall be charged against bond proceeds or project
revenues. [Formerly 285.365] 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] 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] 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 state, acting
through the State Treasurer, or the designee of the treasurer 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] (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] 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]
The state, acting through the State Treasurer and the Oregon Economic and
Community Development Commission, or either of them, may loan the
proceeds of the bonds authorized by ORS 285B.320 to 285B.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 State Treasurer and the Oregon Economic and Community
Development Commission. [Formerly 285.393; 1999 c.509 §40]INFRASTRUCTURE PROJECTS(Generally) 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) “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.

(3) “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.

(4) “Emergency project” means a development project resulting from
an emergency as defined in ORS 401.025, to which federal disaster relief
has been committed.

(5) “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.

(6) “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.

(7) “Municipality” means an Oregon city or county, the Port of
Portland created by ORS 778.010, a county service district organized
under ORS chapter 451, a district as defined in ORS 198.010, a tribal
council of a federally recognized Indian tribe in this state or an
airport district organized under ORS chapter 838.

(8) “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.

(9) “Project” means a development, planning or emergency project.

(10) “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.

(11) “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.

(12) “Rural area” has the meaning given that term in ORS 285A.010.

(13) “Sewage system” means a facility necessary for collecting,
pumping, treating or disposing of sanitary sewage.

(14) “Solid waste disposal site” has the meaning given the term
“disposal site” in ORS 459.005.

(15) “Storm water drainage system” means a facility necessary for
collecting, controlling, conveying, treating or disposing of storm water
runoff.

(16) “Telecommunications system” means equipment or a facility for
the electronic transmission of voice, data, text, image or video.

(17) “Transportation” means a system for movement of freight or
passengers.

(18) “Utilities” means a solid waste disposal site or a water,
sewage, storm water drainage, energy or telecommunications system.

(19) “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] (1) The Legislative Assembly finds
that:

(a) The improvement, expansion and new construction of the state’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 Oregon.

(b) It is essential to maintain usable and developable industrial
and commercial lands in Oregon.

(2) Because municipalities in this state often suffer from a lack
of available financing and technical capacity for these projects, it is
the purpose of ORS 285B.410 to 285B.482 to provide financial or other
assistance to enable municipalities to construct, improve and repair
those facilities that are essential for supporting continuing and
expanded economic activity. It is the intent of the Legislative Assembly,
by providing that assistance, to stimulate industrial growth and
commercial enterprise and to promote employment opportunities in Oregon.

(3) Moneys in the Special Public Works Fund shall be used primarily
to provide loans to municipalities for development and planning projects.
Grants shall be given only when loans are not feasible due to the
financial need of the municipality or 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](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)(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.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) 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] (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] (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 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] (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] (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, with the approval of
the State Treasurer, 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 grant, expend or loan moneys in the fund to:

(a) Provide financial or other assistance to municipalities for
projects determined by the department to be appropriate.

(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 Oregon. Guaranty contracts under this
paragraph shall be payable solely from moneys in the Special Public Works
Fund, and shall not constitute a debt or obligation of the State of
Oregon. The department may, on behalf of the state, establish a special
account in the fund and commit to deposit into the account specified
portions of existing and future allocations to the fund. The commitments
shall be made by rule of the department and shall constitute covenants of
the state for the benefit of the owners of obligations guaranteed by the
state pursuant to this section.

(7) As used in this section, “administrative costs” includes the
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]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]
(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]
(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](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] In
addition to any other powers granted by law in relation to a development
project, the Economic and Community Development Department, acting
through the State Treasurer or designee 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] If the State Treasurer
determines that revenue bonds should be issued:

(1) The State Treasurer may authorize and issue in the name of the
State of Oregon 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. The bonds shall be issued in the
manner prescribed by ORS chapter 286, and refunding bonds may be issued
to refinance the revenue bonds.

(2) The State Treasurer shall designate the underwriter and enter
into appropriate agreements with the underwriter to carry out the
provisions of ORS 285B.467 to 285B.479. The Economic and Community
Development Department, with the approval of the State Treasurer, shall
designate the trustee and enter into appropriate agreements with the
trustee to carry out the provisions of ORS 285B.467 to 285B.479. The
department may appoint bond counsel as authorized by ORS 288.523, or the
State Treasurer may enter into an agreement with bond counsel if the
services provided under the agreement comply with the provisions of ORS
288.523 and the appointment is approved by the Attorney General as
required by ORS 288.523. The department may not make an appointment or
enter into an agreement under this subsection unless the State Treasurer
has reviewed and approved the terms and conditions of the appointment or
agreement. ORS 279A.140 does not apply to any appointment or agreement
described in this subsection. [Formerly 285.745; 2001 c.536 §2; 2003
c.773 §47; 2003 c.794 §241; 2005 c.835 §17](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] (1) Revenue bonds issued under ORS
285B.467 to 285B.479:

(a) Shall 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) Shall 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 bond 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 285.750; 2001 c.883 §35](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.

(5) Notwithstanding subsections (1) to (4) of this section, moneys
held in the Water Fund may not be used to finance or refinance the cost
of a development project unless the development project also qualifies as
a water project, and moneys held in the Special Public Works Fund may not
be used to finance or refinance the cost of a water project unless the
water project also qualifies as a development project. [1997 c.800 §14;
2003 c.773 §49; 2005 c.835 §19]INFRASTRUCTURE PROJECTS FOR SOUTHERN OREGON (1) The Legislative Assembly
finds that:

(a) It is a matter of statewide importance to increase the
infrastructure capacity of Coos, Jackson and Josephine Counties and the
rest of southern Oregon.

(b) The absence of such infrastructure capacity, the lack of
inexpensive industrial fuel and inadequate transportation facilities
restrict national and international trade and otherwise hinder the
economic development of the region.

(c) State financial assistance to specified local projects in
southern Oregon will sustain and increase jobs, foster national and
international trade, allow industrial and commercial expansion and
eliminate other negative effects caused by infrastructure that is
inadequate to support a vibrant and expanding economy.

(d) It is desirable to make a present commitment of lottery
revenues that are expected to be received in the 1999-2001 and 2001-2003
biennia. A clear and prompt financial commitment from the State of Oregon
will allow the project sponsors, in reliance on that commitment, to make
prompt commitments to pay their share. Prompt commitment by the project
sponsors will enhance the likelihood that other private or federal funds
will be received for the projects.

(2) The Legislative Assembly declares that the purpose of ORS
285B.500 to 285B.512 and section 9, chapter 644, Oregon Laws 1997, is to
obligate the State of Oregon to pay the amounts specified in ORS 285B.500
to 285B.512 and section 9, chapter 644, Oregon Laws 1997, from future
lottery revenues. The obligation of the state to pay the amounts
specified in section 9, chapter 644, Oregon Laws, 1997, and in grant
agreements authorized by ORS 285B.506 is limited to, and conditioned
solely on, the availability of unobligated net lottery proceeds and any
other moneys lawfully credited to the Oregon Unified International Trade
Fund. Neither the faith and credit nor any of the taxing power of the
State of Oregon are pledged or otherwise committed by ORS 285B.500 to
285B.515 and 777.277 to 777.287 and section 9, chapter 644, Oregon Laws
1997, and the commitments of the State of Oregon under ORS 285B.500 to
285B.515 and 777.277 to 777.287 and section 9, chapter 644, Oregon Laws
1997, and any grant agreement shall not constitute a debt or liability of
the state within the meaning of section 7, Article XI of the Oregon
Constitution. [1997 c.644 §7]Note: 285B.500 to 285B.515 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 285B by
legislative action. See Preface to Oregon Revised Statutes for further
explanation.(1) There is established in the State Treasury, separate and
distinct from the General Fund, the Oregon Unified International Trade
Fund. The moneys in the fund are continuously appropriated to the
Economic and Community Development Department for:

(a) Paying all or a portion of the costs of:

(A) A project for the extension and improvement of Jackson County
Airport runway.

(B) A project for the extension of a natural gas pipeline to the
Coos Bay and North Bend area from a location near Roseburg.

(C) A project for improvements to the Klamath Falls International
Airport maintained by the City of Klamath Falls.

(b) Transfer to the Oregon Port Revolving Fund created by ORS
285A.708.

(2) A separate account within the Oregon Unified International
Trade Fund shall be established for each project listed in subsection (1)
of this section.

(3) The Oregon Unified International Trade Fund shall consist of
moneys allocated to the fund under section 9, chapter 644, Oregon Laws
1997, and such other moneys as may be appropriated to the fund by the
Legislative Assembly, including interest on such moneys. [1997 c.644 §8]Note: See note under 285B.500.(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 sponsor’s project in the Oregon Unified International
Trade Fund, plus any interest earnings on the amounts in the account. The
grant agreement shall:

(a) Pledge the unobligated net lottery proceeds to pay the amounts
due to the primary sponsor under the grant agreement;

(b) Specify the administrative procedures for making payments to
the primary sponsor;

(c) Provide for notification to the 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 sponsor’s
project is complete and all its costs have been paid; and

(f) Contain other terms and conditions that are necessary or
appropriate, as determined by the 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 Oregon in accordance with its
terms. However, amounts due under the grant agreement shall be payable
solely from the unobligated net lottery proceeds required by section 9,
chapter 644, Oregon Laws 1997, to be deposited in the appropriate account
in the Oregon Unified International Trade Fund.

(4) The primary sponsor may pledge or assign its right to receive
amounts due under the grant agreement as security for any contractual
obligation the primary sponsor undertakes to pay or finance costs of the
project. Any pledge or assignment authorized by ORS 285B.500 to 285B.515
and 777.277 to 777.287 and section 9, chapter 644, Oregon Laws 1997,
shall be valid and binding upon the primary sponsor, the 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. The
primary sponsors of projects listed in ORS 285B.503 are authorized to
enter into agreements with agencies of the United States for the project
and, notwithstanding any other provision of law, may each agree to be
bound by any requirement imposed by an Act of the United States Congress
as a condition of federal participation in the project. [1997 c.644 §11]Note: See note under 285B.500.(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 Oregon pursuant to the grant agreement
shall be credited to the Administrative Services Economic Development
Fund. [1997 c.644 §12]Note: See note under 285B.500. 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 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.(1) Infrastructure lottery bonds shall be issued under ORS
286.560 to 286.580 and 348.716 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 Oregon’s match of federal moneys under the
Safe Drinking Water Act.

(3) The net proceeds from the sale of the infrastructure lottery
bonds that are available to pay costs of infrastructure projects shall be
credited to the Water Fund created by ORS 285B.563. All such net proceeds
are appropriated continuously to the 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]Note: See note under 285B.530. (1)
Notwithstanding ORS 286.505 to 286.545, infrastructure lottery bonds may
be issued during the 1997-1999 biennium in an aggregate principal amount
that produces net proceeds for infrastructure projects that shall not
exceed $6 million, plus an amount that the State Treasurer estimates will
be required to pay bond-related costs.

(2) In future biennial periods, the amount of infrastructure
lottery bonds that may be issued shall be authorized under ORS 286.505 to
286.545. [1997 c.800 §22]Note: See note under 285B.530.(1) Pursuant to ORS
286.560 to 286.580, 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 Oregon’s share of the costs of the Columbia River
channel deepening project.

(c) To fund Oregon’s share of the costs of studies and ecosystem
restoration projects in the lower Columbia River estuary designed to
improve habitat for listed endangered or threatened species of Columbia
River anadromous salmonids.

(2) The use of lottery bond proceeds is authorized based on the
following findings:

(a) The financial and other assistance to municipalities, ports and
other persons and entities will assist in the establishment and expansion
of businesses in Oregon and in the construction, improvement and
expansion of infrastructure, community and port facilities and other
facilities that comprise the physical foundation for industrial and
commercial activity and provide the basic framework for continued and
expanded economic opportunities and quality communities throughout Oregon.

(b) The Columbia River channel deepening project is necessary to
allow newer, larger steamships access to Oregon and Washington deep draft
ports. A deeper shipping channel will allow the Columbia River to
continue as a world leader in agricultural exports and as a key trade
corridor for farms and businesses throughout Oregon and the region.

(c) Such financial and other assistance to municipalities, ports
and other persons and entities and the deepening of the Columbia River
channel will therefore promote economic development within this state,
and thus the use of net proceeds derived from the operation of the Oregon
State Lottery to pay debt service on lottery bonds issued under this
section to provide such financial and other assistance to municipalities,
ports and other persons and entities and to pay a portion of the costs of
deepening the Columbia River channel is an authorized use of state
lottery funds under section 4, Article XV of the Oregon Constitution, and
ORS 461.510.

(d) The current lower Columbia River estuary habitat for listed
endangered or threatened species of Columbia River anadromous salmonids
could be improved through ecosystem restoration projects. The use of the
Oregon State Lottery to pay debt service on lottery bonds issued under
this section to pay for studying how the estuary could be improved and to
pay for ecosystem restoration projects are authorized uses of state
lottery funds.

(3) 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 $227.27 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 Columbia River channel deepening project may not
exceed the sum of $17.7 million and an additional amount estimated by the
State Treasurer to be necessary to pay bond-related costs. Lottery bonds
issued pursuant to this section may be issued only at the request of the
Director of the Economic and Community Development Department. The
director may not request the issuance of lottery bonds pursuant to
subsection (1)(b) of this section until a final environmental impact
statement has been issued and a record of decisions has been submitted to
Congress by the United States Army Corps of Engineers, Congress has
authorized the Columbia River channel deepening project, and the
Washington sponsors’ shares of the costs of the Columbia River channel
deepening project have been committed.

(4) The net proceeds of lottery bonds issued pursuant to subsection
(1)(a) and (b) of this section shall be deposited in the Economic
Infrastructure Project Fund, which is hereby established in the State
Treasury separate and distinct from the General Fund. 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
policies developed by the Oregon Economic and Community Development
Commission in accordance with ORS 285A.045. However, the director shall
transfer from the Economic Infrastructure Project Fund and deposit into
the Channel Deepening Account of the Marine Navigation Improvement Fund
the proceeds of any lottery bonds sold to finance a portion of the costs
of the Columbia River channel deepening project. Upon determining the
relative allocation of moneys deposited in the Economic Infrastructure
Project Fund among the purposes described in this subsection, the
director shall transfer from the Economic Infrastructure Project Fund,
and deposit into each of the other funds described in this subsection,
the amounts so allocated. Notwithstanding any other provision of law
governing the funds described in this subsection, the funds described in
this subsection may be credited with moneys transferred from the Economic
Infrastructure Project Fund by the director in accordance with this
subsection.

(5) The aggregate principal amount of lottery bonds issued pursuant
to subsection (1)(c) of this section for the costs of studies and
ecosystem restoration projects in the lower Columbia River estuary may
not exceed the sum of $750,000 and an additional amount estimated by the
State Treasurer to be necessary to pay bond-related costs. The net
proceeds of lottery bonds issued pursuant to subsection (1)(c) of this
section shall be deposited in the Oregon 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]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.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 North
Bend Airport is essential to promoting economic development in southern
Oregon.

(2) The use of lottery bond proceeds is authorized based on the
following findings:

(a) The economy of Coos County has been depressed in recent years
as a result of unfavorable developments in the timber and fishing
industries.

(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 North Bend Airport
will increase the opportunity to attract new industries to areas served
by the airport and increase opportunities for employment in those areas.

(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 North Bend Airport may
not exceed the sum of $10 million and an additional amount estimated by
the State Treasurer to be necessary to pay bond-related costs. Lottery
bonds issued pursuant to section 4 of this 2005 Act shall be issued only
at the request of the Director of the Economic and Community Development
Department. The director may not request the issuance of lottery bonds
pursuant to section 4 of this 2005 Act until the executive director of
the Coos County Airport District certifies in writing that all necessary
permits for the proposed construction have been obtained by the airport
district and has provided documentation to the Director of the Economic
and Community Development Department that verifies that the district will
have sufficient funding to complete the project. [2005 c.756 §2]

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 North Bend Airport.
Interest earned on moneys in the fund shall be credited to the fund.

(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 and 348.716 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 and
348.716 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 of this 2005
Act 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 of this 2005
Act not later than December 15, 2007. [2005 c.756 §4]SAFE DRINKING WATER PROJECTS(Generally) 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](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 and for the purpose
specified in ORS 285A.075 (9).

(2)(a) Moneys in the Water Fund may be obligated to water projects.

(b) Moneys shall be used primarily to make loans to municipalities.
The department may make a loan only if:

(A) The municipality applying for the loan certifies to the
department that adequate funds will be available to repay the loan; and

(B) The department determines that the amount of the loan applied
for is based on a reasonable and prudent expectation of the
municipality’s ability to repay the loan.

(c) The department may award a grant only if a loan is not feasible
due to:

(A) Financial hardship to the municipality, as determined by the
department, based on consideration of anticipated water service charges
or anticipated waste water service charges that exceed the statewide
average for the 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) With the approval of the State Treasurer, 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] 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]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)(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] If the State Treasurer
determines that revenue bonds shall be issued:

(1) The State Treasurer may authorize and issue in the name of the
State of Oregon revenue bonds secured by moneys paid to the Water Fund
and pledged to finance or refinance in whole or in part the cost of a
water project. The revenue bonds issued under this section shall be
issued in the manner prescribed by ORS chapter 286, and refunding bonds
may be issued to refinance the revenue bonds.

(2) The State Treasurer shall designate and enter into agreements
with the underwriter to carry out the provisions of ORS 285B.560 to
285B.599. The Economic and Community Development Department, with the
approval of the State Treasurer, shall designate the trustee and enter
into appropriate agreements with the trustee to carry out the provisions
of ORS 285B.560 to 285B.599. The department may appoint bond counsel as
authorized by ORS 288.523, or the State Treasurer may enter into an
agreement with bond counsel if the services provided under the agreement
comply with the provisions of ORS 288.523 and the appointment is approved
by the Attorney General as required by ORS 288.523. The department may
not make an appointment or enter into an agreement under this subsection
unless the State Treasurer has reviewed and approved the terms and
conditions of the appointment or agreement. ORS 279A.140 does not apply
to any appointment or agreement described in this subsection. [Formerly
285.952; 2001 c.536 §3; 2003 c.794 §242] (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] (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] In addition to any other powers
granted by law in relation to a water project, the Economic and Community
Development Department, acting through the State Treasurer or the State
Treasurer’s designee, 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] (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] 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]
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] 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] (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 Oregon may withhold any amounts
otherwise due the municipality to apply to the indebtedness. The
department may waive the right to withhold moneys under this subsection.

(2) Moneys withheld under subsection (1) of this section shall be
deposited in the fund and shall be used to repay any account in the fund
from which funds were expended to pay obligations upon which the
municipality defaulted. [Formerly 285.968]ENTREPRENEURIAL DEVELOPMENT 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, as defined
by ORS 285B.050 (9). 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](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.139 and 285B.740
to 285B.758. If the department determines that an applicant is not
eligible to receive a loan, the department shall:

(a) Reject the application with a written statement of the reason
for that rejection; or

(b) Require the applicant to submit additional information
concerning the application as may be necessary. [1991 c.688 §7; 2001
c.684 §21] (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;

(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;

(c) The applicant has developed an expenditure plan for the use of
the moneys received as a loan for the project under ORS 285B.740 to
285B.758; and

(d) 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 24 months.

(b) The business must have annual revenues of less than $100,000 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 being severely disabled by the Department of
Human Services or the Commission for the Blind. [1991 c.688 §8; 1997
c.147 §5](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;

(b) The applicant provides funds for the project in the form of
cash, property or business equity in an amount equal to 20 percent of the
amount of the loan; and

(c) The applicant can provide such evidence of assurance for
repayment as the department considers appropriate to the circumstances of
the particular applicant. However, loans need not be secured with real
property.

(2) The Economic and Community Development Department may make an
entrepreneurial development loan to any single applicant in an amount not
exceeding $25,000.

(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.

(4) The Economic and Community Development Department may defer
repayment of a loan by an applicant for a period not exceeding six
months. However, interest shall continue to accrue on the unpaid
principal amount of the loan during such period of deferred repayment.
[1991 c.688 §9; 1997 c.147 §6] An applicant
who receives an entrepreneurial development loan under ORS 285B.740 to
285B.758 may apply for another such loan. Notwithstanding the limit set
forth in ORS 285B.749 (2), the maximum aggregate amount that may be
loaned to a single applicant under ORS 285B.139 and 285B.740 to 285B.758
is $40,000. [1991 c.688 §10; 1997 c.147 §7; 2001 c.684 §22](1) The Economic and Community Development Department shall
appoint an Oregon Entrepreneurial Development Loan Fund Advisory
Committee of not less than five members to advise the department on the
operation of the loan program created by ORS 285B.740 to 285B.758. The
individuals appointed to the advisory committee shall be representatives
of the private sector financial community, public sector business finance
groups, small business support organizations and owners and operators of
small businesses. The advisory committee shall include at least one owner
or operator of a small business who is a woman or a member of a minority
group. The advisory committee shall also include at least one person who
is a representative of disabled Oregonians.

(2) The Oregon Entrepreneurial Development Loan Fund Advisory
Committee shall review all loan forms, contracts and other administrative
materials to assure that the loan program created by ORS 285B.740 to
285B.758 operates with administrative simplicity and efficiency to the
greatest extent possible. [1991 c.688 §11] (1) There is
established in the State Treasury, separate and distinct from the General
Fund, the Oregon Entrepreneurial Development Loan Fund. All moneys in the
fund are continuously appropriated to the Economic and Community
Development Department for the following purposes:

(a) Administrative costs of the department incurred in processing
loan applications, investigating the eligibility of loan applicants and
servicing outstanding loans;

(b) Paying for loan origination and loan servicing by contractors
under ORS 285B.740 to 285B.758; and

(c) Payment of loans to applicants under ORS 285B.740 to 285B.758.

(2) The Oregon Entrepreneurial Development Loan Fund shall consist
of:

(a) Moneys appropriated to the fund by the Legislative Assembly;

(b) Interest earned on moneys in the fund; and

(c) Moneys received as repayment of principal and interest on loans
made from the fund under ORS 285B.740 to 285B.758. [1991 c.688 §13]

_______________

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