USA Statutes : oregon
Title : TITLE 19 MISCELLANEOUS MATTERS RELATED TO GOVERNMENT AND PUBLIC AFFAIRS
Chapter : Chapter 200 Disadvantaged, Minority, Women and Emerging Small Business Enterprises


(1) “Disadvantaged business enterprise” means a small business
concern:

(a) That is at least 51 percent owned by one or more socially and
economically disadvantaged individuals; or

(b) For which, in the case of a corporation, at least 51 percent of
the stock is owned by one or more socially and economically disadvantaged
individuals, and of which the management and daily business operations
are controlled by one or more of the socially and economically
disadvantaged individuals who own it.

(2) “Economically disadvantaged individual” means a socially
disadvantaged individual whose ability to compete in the free enterprise
system has been impaired due to diminished capital and credit
opportunities as compared to other individuals in the same business area
who are not socially disadvantaged individuals.

(3) “Emerging small business” means an independent business:

(a) With its principal place of business located in this state;

(b) That qualifies as a tier one firm or a tier two firm;

(c) That is properly licensed and legally registered in this state;
and

(d) That is not a subsidiary or parent company belonging to a group
of firms that are owned or controlled by the same individuals if, in the
aggregate, the group of firms does not qualify as a tier one firm or a
tier two firm.

(4) “Minority individual” means a person who is a citizen or lawful
permanent resident of the United States, who is:

(a) Black, having origins in any of the black racial groups of
Africa;

(b) Hispanic, having Mexican, Puerto Rican, Cuban, Central or South
American or other Spanish culture or origin, regardless of race;

(c) Asian American, having origins in any of the original peoples
of the Far East, Southeast Asia, the Indian subcontinent or the Pacific
Islands;

(d) Portuguese, having Portuguese, Brazilian or other Portuguese
culture or origin, regardless of race;

(e) American Indian or Alaskan Native, having origins in any of the
original peoples of North America; or

(f) A member of another group, or another individual who is
socially and economically disadvantaged as determined by the Advocate for
Minority, Women and Emerging Small Business.

(5) “Minority or women business enterprise” means a small business
concern:

(a) That is at least 51 percent owned by one or more minority
individuals or women; or

(b) For which, in the case of a corporation, at least 51 percent of
the stock is owned by one or more individuals who are minority
individuals or women, and of which the management and daily business
operations are controlled by one or more of the minority individuals or
women who own it.

(6) “Responsible bidder” means a bidder who, as determined by the
Advocate for Minority, Women and Emerging Small Business, has undertaken
both a policy and practice of actively pursuing participation by minority
or women business enterprises in all bids, both public and private,
submitted by the bidder.

(7) “Small business concern” means a small business as defined by
the United States Small Business Administration in 13 C.F.R. part 121 and
in effect on January 1, 2006.

(8) “Socially disadvantaged individual” means an individual who has
been subjected to racial or ethnic prejudice or cultural bias, without
regard to individual qualities, because of the individual’s identity as a
member of a group.

(9) “Tier one firm” means a business that employs fewer than 20
full-time equivalent employees and has average annual gross receipts for
the last three years that do not exceed $1.5 million for a business
performing construction, as defined in ORS 446.310, or $600,000 for a
business not performing construction.

(10) “Tier two firm” means a business that employs fewer than 30
full-time equivalent employees and has average annual gross receipts for
the last three years that do not exceed $3 million for a business
performing construction, as defined in ORS 446.310, or $1 million for a
business not performing construction.

(11) “Woman” means a person of the female sex who is a citizen or
lawful permanent resident of the United States. [1987 c.893 §2; 1989
c.1043 §1; 1991 c.517 §9; 2001 c.104 §71; 2003 c.794 §213; 2005 c.22
§§150,151; 2005 c.683 §§4,5] (1) The Legislative Assembly supports
the aspirations of minorities, women and emerging small businesses to
enter the mainstream of Oregon social, political and economic life.

(2) The Legislative Assembly finds:

(a) The opportunity for full participation in our free enterprise
system by minorities, women and emerging small businesses is essential;

(b) Greater economic opportunity for minorities, women and emerging
small businesses is essential;

(c) Review of public programs to remedy historical patterns of
exclusion of and discrimination against racial or ethnic groups and women
is needed;

(d) Public policies and programs to eliminate the effects of
long-term, open and pervasive exclusion of and discrimination against
minorities and women from the business sector, including increased
opportunities to integrate minorities and women into the full economic
life of the community should be reviewed; and

(e) In cooperation with the private sector, the affected
populations, interested groups and appropriate governmental entities, a
program of review should be established to recommend remedies for the
unfortunate effects of social, political and economic inequity that still
exist.

(3) Women and minorities are rebuttably presumed to be:

(a) Economically disadvantaged.

(b) Socially disadvantaged. [1987 c.893 §3; 1989 c.1043 §2](1) There is created in the Office of the Governor, the
Advocate for Minority, Women and Emerging Small Business who shall be
appointed by the Governor.

(2) There is created in the Department of Consumer and Business
Services the Office for Minority, Women and Emerging Small Business, the
employees of which shall be appointed by the Director of the Department
of Consumer and Business Services.

(3) The Advocate for Minority, Women and Emerging Small Business
shall:

(a) Advise the Governor and the director on activities and
initiatives that may promote the economic integration of minorities,
women and emerging small businesses into the business sector;

(b) Prepare an annual report to the Governor, director and
Legislative Assembly on the status of minorities and women in the
marketplace, accomplishments and resolutions of issues of concern to
minority and women’s enterprises and recommendations for executive and
legislative actions; and

(c) Carry out other duties that may be assigned by the Governor.

(4) The Office for Minority, Women and Emerging Small Business
shall:

(a) Provide information to minority, women and emerging small
businesses;

(b) Assist in the development and implementation of an aggressive
strategy for this state, based on research and monitoring, that
encourages participation of minorities, women and emerging small
businesses in the state’s economy;

(c) Make recommendations to the director on the research,
development and implementation of the plan for the involvement of
disadvantaged and minority groups and emerging small businesses in all
state programs;

(d) Maintain an Oregon Opportunity Register and Clearinghouse for
information on public agency and other contract solicitations for
professional services, supplies and services and other bid opportunities,
in consultation with the State Board of Higher Education, the Department
of Transportation and other entities;

(e) Monitor the certification and compliance program for
disadvantaged, minority, women and emerging small businesses under ORS
200.055;

(f) Investigate complaints and possible abuses of the certification
program; and

(g) Assist in the promotion and coordination of plans, programs and
operations of state government that strengthen minority and women
participation in the economic life of this state. [1987 c.893 §4; 1989
c.1043 §3; 1993 c.500 §7; 1993 c.744 §§189,189a; 2003 c.794 §214; 2005
c.683 §§6,7](1) For a public contract with a value of $5,000 or
more, a state agency shall provide timely notice and information to the
Advocate for Minority, Women and Emerging Small Business regarding:

(a) Bid or proposal solicitations; and

(b) Contract awards.

(2) Each state agency shall, in consultation with the advocate,
establish a process and timeline for providing the notice and information
required by subsection (1) of this section to the advocate. [1987 c.893
§5; 1997 c.145 §1; 1997 c.802 §10; 2005 c.351 §1](1) To
determine whether a bidder that has failed to meet emerging small
business enterprise contract requirements may be awarded the contract,
the public contracting agency must decide whether the bidder’s efforts to
obtain participation by emerging small business enterprises were good
faith efforts to meet the requirements.

(2) Performing all of the following actions by a bidder constitutes
a rebuttable presumption that the bidder has made a good faith effort to
satisfy the subcontracting requirement for emerging small businesses. It
shall be a rebuttable presumption that the bidder has not made a good
faith effort if the bidder has not acted consistently with such actions.
Efforts that are merely superficial are not good faith efforts:

(a) The bidder attended any presolicitation or prebid meetings that
were scheduled by the contracting agency to inform emerging small
business enterprises of contracting and subcontracting or material supply
opportunities available on the project;

(b) The bidder identified and selected specific economically
feasible units of the project to be performed by emerging small business
enterprises in order to increase the likelihood of participation by such
enterprises;

(c) The bidder advertised in general circulation, trade
association, minority and trade oriented, women-focus publications, if
any, concerning the subcontracting or material supply opportunities;

(d) The bidder provided written notice to a reasonable number of
specific emerging small business enterprises, identified from a list of
certified emerging small business enterprises provided or maintained by
the Department of Consumer and Business Services for the selected
subcontracting or material supply work, in sufficient time to allow the
enterprises to participate effectively;

(e) The bidder followed up initial solicitations of interest by
contacting the enterprises to determine with certainty whether the
enterprises were interested;

(f) The bidder provided interested emerging small business
enterprises with adequate information about the plans, specifications and
requirements for the selected subcontracting or material supply work;

(g) The bidder negotiated in good faith with the enterprises, and
did not without justifiable reason reject as unsatisfactory bids prepared
by any emerging small business enterprises;

(h) Where applicable, the bidder advised and made efforts to assist
interested emerging small business enterprises in obtaining bonding,
lines of credit or insurance required by the contracting agency or
contractor;

(i) The bidder’s efforts to obtain emerging small business
enterprise participation were reasonably expected to produce a level of
participation sufficient to meet the goals or requirement of the public
contracting agency; and

(j) The bidder used the services of minority community
organizations, minority contractor groups, local, state and federal
minority business assistance offices and other organizations identified
by the Advocate for Minority, Women and Emerging Small Business that
provide assistance in the recruitment and placement of emerging small
business enterprises.

(3) To determine whether a bidder is a responsible bidder, the
performance of all the following actions constitutes a rebuttable
presumption that the bidder is responsible. It shall be a rebuttable
presumption that the bidder is not responsible if the bidder has not
acted consistently with the actions described in this subsection. Efforts
that are merely superficial are not good faith efforts.

(a) The bidder attended any presolicitation or prebid meetings that
were scheduled by the contracting agency to inform minority or women
business enterprises of contracting and subcontracting or material supply
opportunities available on the project;

(b) The bidder identified and selected specific economically
feasible units of the project to be performed by minority or women
business enterprises in order to increase the likelihood of participation
by such enterprises;

(c) The bidder advertised in general circulation, trade
association, minority and trade oriented, women-focus publications, if
any, concerning the subcontracting or material supply opportunities;

(d) The bidder provided written notice to a reasonable number of
specific minority or women business enterprises, identified from a list
of certified minority or women business enterprises provided or
maintained by the Department of Consumer and Business Services for the
selected subcontracting or material supply work, in sufficient time to
allow the enterprises to participate effectively;

(e) The bidder followed up initial solicitations of interest by
contacting the enterprises to determine with certainty whether the
enterprises were interested;

(f) The bidder provided interested minority or women business
enterprises with adequate information about the plans, specifications and
requirements for the selected subcontracting or material supply work;

(g) The bidder negotiated in good faith with interested, capable
and competitive minority or women business enterprises submitting bids;

(h) Where applicable, the bidder advised and made efforts to assist
interested minority or women business enterprises in obtaining bonding,
lines of credit or insurance required by the contracting agency or
contractor;

(i) The bidder’s efforts to obtain minority or women business
enterprise participation were reasonably expected to produce a level of
participation sufficient to meet the goals of the public contracting
agency; and

(j) The bidder used the services of minority community
organizations, minority contractor groups, local, state and federal
minority business assistance offices and other organizations identified
by the Advocate for Minority, Women and Emerging Small Business that
provide assistance in the recruitment and placement of disadvantaged,
minority or women business enterprises. [1987 c.893 §7; 1989 c.1043 §8;
1997 c.145 §2; 2003 c.794 §215]CERTIFICATION(1) Any disadvantaged,
minority, women or emerging small business enterprise is entitled to be
certified as such upon application to the Department of Consumer and
Business Services. If the application is approved by the department, the
department shall certify the applicant as a disadvantaged, minority,
women or emerging small business enterprise. The enterprise shall be
considered so certified by any public contracting agency.

(2) In consultation with the State Board of Higher Education and
the Department of Transportation, and with the approval of the Advocate
for Minority, Women and Emerging Small Business, the Department of
Consumer and Business Services by rule shall adopt a uniform standard
form and procedure designed to provide complete documentation that a
business enterprise is certified as a disadvantaged, minority, women or
emerging small business enterprise. The Department of Consumer and
Business Services shall compile and make available upon request a list of
certified disadvantaged, minority, women or emerging small business
enterprises.

(3) Any business enterprise that is refused certification as a
disadvantaged business enterprise or denied recertification as such or
whose certification is revoked may appeal directly to the United States
Department of Transportation.

(4) Any business enterprise that is refused certification as a
minority, women or emerging small business enterprise or has its
certification revoked may request a contested case hearing as provided in
ORS chapter 183.

(5) The Department of Consumer and Business Services shall be the
sole agency authorized to certify enterprises as disadvantaged, minority,
women or emerging small business enterprises eligible to perform on
public contracts in this state.

(6) The Department of Consumer and Business Services by rule may
establish a fee not to exceed $100 for a copy of the list of certified
disadvantaged, minority, women and emerging small business enterprises
and may assess state agencies for services under ORS 200.005 to 200.075.

(7) The Department of Transportation may collect a fee, not to
exceed $200, from a bidder upon bidder prequalifications to cover the
costs of the Department of Consumer and Business Services in
administering ORS 200.005 to 200.075. The Department of Transportation
shall transfer such fees to the credit of the account established under
subsection (8) of this section.

(8) The Department of Consumer and Business Services shall
establish a special account in which to deposit fees and assessments. The
special account is continuously appropriated to the Department of
Consumer and Business Services to meet its expenses in administering ORS
200.005 to 200.075. [1987 c.893 §8; 1989 c.1043 §4; 1993 c.500 §8; 1997
c.145 §3; 2003 c.794 §216](1) A business may be certified as an emerging small business by
the Department of Consumer and Business Services for up to 12 years and
may be:

(a) Designated a tier one firm for up to six years unless the
business no longer qualifies as a tier one firm.

(b) Designated a tier two firm for up to six years unless the
business no longer qualifies as a tier two firm.

(2) The department shall adjust annually the amount of the average
annual gross receipts required to qualify as a tier one firm or a tier
two firm using the most recent three-year average of the Portland-Salem
Consumer Price Index for All Urban Consumers for All Items, as reported
by the United States Bureau of Labor Statistics.

(3) Notwithstanding the time limits established by subsection (1)
of this section, if a tier one firm provides compelling information
showing, in the judgment of the Department of Consumer and Business
Services, that the firm has not been afforded an opportunity to bid on
emerging small business projects during a year of eligibility, the
department shall extend the tier one designation of the firm for one
year. A tier one firm may receive the extension described in this
subsection only once. [2005 c.683 §2]Note: 200.057 was added to and made a part of 200.005 to 200.075 by
legislative action but was not added to any other series. See Preface to
Oregon Revised Statutes for further explanation.Note: Sections 3 and 13 (2), chapter 683, Oregon Laws 2005, provide:

Sec. 3. On or before June 30, 2006, a business previously certified
as an emerging small business may be recertified as an emerging small
business if the business still qualifies as an emerging small business
and has eligibility remaining under section 2 of this 2005 Act [200.057].
[2005 c.683 §3]

Sec. 13. (2) Section 3 of this 2005 Act is repealed on July 1,
(1) It shall be
unlawful for any person fraudulently to obtain or retain or attempt to
obtain or retain or to aid another person fraudulently to obtain or
retain or attempt to obtain or retain certification as a disadvantaged,
minority, women or emerging small business enterprise.

(2) It shall be unlawful knowingly to make a false claim that any
person is qualified for certification or is certified under ORS 200.055
for the purpose of gaining a contract or subcontract or other benefit.

(3) The public contracting agency may withhold payment, suspend or
terminate the contract and may impose on any person a civil penalty not
to exceed 10 percent of the contract or subcontract price or $5,000,
whichever is less, for each violation of subsection (1) or (2) of this
section. The penalty shall be paid to the Office for Minority, Women and
Emerging Small Business.

(4) The Department of Consumer and Business Services or an affected
public contracting agency shall investigate any complaint that a person
has violated subsection (1) or (2) of this section. In investigating such
a complaint, the department or an affected public contracting agency may
require any additional information, administer oaths, take depositions
and issue subpoenas to compel the attendance of witnesses and the
production of books, papers, records, memoranda or other information
necessary to carry out its duties. If any person fails to comply with any
subpoena issued under this subsection or refuses to testify on any matter
on which a person may lawfully be interrogated, the procedure provided in
ORS 183.440 shall be followed to compel compliance.

(5) An affected public contracting agency or the Department of
Consumer and Business Services may disqualify any person found to have
violated subsection (1) or (2) of this section or who admits to such
violation under oath during the course of an investigation from bidding
or participating in any public contract for a period of time specified by
the agency or department, not to exceed three years. Any contracting
agency that has notice of the finding of the fraudulent certification may
also disqualify the person from bidding on or participating in any public
contract. [1987 c.893 §9; 1989 c.1043 §5; 1997 c.145 §4](1) Any bidder or contractor or
subcontractor on a public contract that knowingly commits any of the acts
listed in paragraphs (a) to (c) of this subsection shall have its right
to bid on or participate in any public contract suspended. The suspension
shall occur only after notice and opportunity for hearing in such manner
as the affected public contracting agency, by rule, shall provide. The
suspension shall be for up to 90 days for a first violation, up to one
year for a second violation and up to five years for a third violation.
Each violation shall remain on record for five years. After five years
the violation shall no longer be considered in reviewing future
violations. The following acts are prohibited:

(a) Entering into any agreement representing that a disadvantaged,
minority, women or emerging small business enterprise certified pursuant
to ORS 200.055 will be performing work or supplying materials under the
public improvement contract without the knowledge and consent of the
disadvantaged, minority, women or emerging small business enterprise.

(b) Exercising management and decision making control over the
internal operations of any certified disadvantaged, minority, women or
emerging small business enterprise. As used in this paragraph, “internal
operations” does not include normal scheduling, coordination, execution
or performance as a subcontractor on a public contract.

(c) Using a disadvantaged, minority, women or emerging small
business enterprise to perform a subcontract or supply material under a
public improvement contract to meet an established goal or requirement
when the disadvantaged, minority, women or emerging small business
enterprise does not perform a commercially useful function in carrying
out its responsibilities and obligations under the contract.

(2) Any disadvantaged, minority, women or emerging small business
enterprise certified under ORS 200.055 that allows or commits any of the
acts listed in paragraphs (a) to (c) of this subsection shall have its
certification suspended for up to 90 days for the first violation, up to
one year for a second violation and up to five years for a third
violation. Each violation shall remain on record for five years. After
five years the violation shall no longer be considered in reviewing
future violations. The following acts are prohibited:

(a) Use of the firm’s name to meet a disadvantaged, minority, women
or emerging small business enterprise goal or requirement on a public
contract when the firm does not in fact intend to or does not actually
perform the work under the subcontract or purchase and supply material to
the project under a material supply contract.

(b) Use of any personnel of an uncertified business to operate,
manage or otherwise control the disadvantaged, minority, women or
emerging small business enterprise.

(c) Failure to perform a commercially useful function in carrying
out its functions under a subcontract or a material supply contract
entered into with a contractor or subcontractor on a public contract when
represented as a certified business to meet an established goal or
requirement.

(3) For the purpose of this section “commercially useful function”
means the actual performance of a function or service by the business for
which there is a demand in the marketplace, and for which the business
receives payment not disproportionate to the work performed or in
conformance with industry standards. Acting as a broker to provide for
the performance of work by others does not constitute a “commercially
useful function.” [1987 c.893 §11; 1989 c.1043 §6; 1991 c.91 §1; 1995
c.452 §21]RESPONSIBILITY OF PUBLIC AGENCIESPublic agencies shall aggressively pursue a policy of
providing opportunities for available contracts to emerging small
businesses and shall cooperate with the Advocate for Minority, Women and
Emerging Small Business to determine the best means by which to make such
opportunities available. [1989 c.1043 §10]MENTOR PROGRAM As used in ORS
200.100 to 200.120:

(1) “Contractor” means a person who contracts on predetermined
terms to be responsible for the performance of all or part of a job of
preparation or construction in accordance with established specifications
or plans, retaining control of means, method and manner of accomplishing
the desired result, and who provides:

(a) Labor at the site; or

(b) Materials, supplies and labor at the site.

(2) “Disadvantaged business enterprise” means a small business
concern that is at least 51 percent owned by one or more socially and
economically disadvantaged individuals, or, in the case of any
corporation, at least 51 percent of the stock of which is owned by one or
more socially and economically disadvantaged individuals and whose
management and daily business operations are controlled by one or more of
the socially and economically disadvantaged individuals who own it.

(3) “Minority or women business enterprise” means a small business
concern which is at least 51 percent owned by one or more minorities or
women, or in the case of a corporation, at least 51 percent of the stock
of which is owned by one or more minorities or women, and whose
management and daily business operations are controlled by one or more of
such individuals.

(4) “Minority individual” means a person who is a citizen or lawful
permanent resident of the United States and who is:

(a) Black, a person having origins in any of the black racial
groups of Africa;

(b) Hispanic, a person of Mexican, Puerto Rican, Cuban, Central or
South American or other Spanish culture or origin, regardless of race;

(c) Asian American, a person having origins in any of the original
peoples of the Far East, Southeast Asia, the Indian subcontinent or the
Pacific Islands;

(d) Portuguese, a person of Portuguese, Brazilian or other
Portuguese culture or origin, regardless of race;

(e) American Indian or Alaskan Native, a person having origins in
any of the original peoples of North America; or

(f) A member of another group or another individual that is
socially and economically disadvantaged as determined by the Advocate for
Minority, Women and Emerging Small Business.

(5) “Subcontractor” means a contractor who has no direct
contractual relationship with the owner. [1991 c.559 §1; 2005 c.22 §152] (1) The Economic
and Community Development Department may recognize the mentor
relationship between contractors and minority business enterprises or
women business enterprises certified under this chapter. The mentor
relationship shall offer the opportunity to foster and encourage minority
and women business enterprises, to expand the capacity of presently
existing minority and women businesses and to offer the opportunity for
less experienced minority and women businesses to gain training and
assistance.

(2) Guidelines for eligibility for the mentor relationship include,
but are not limited to:

(a) Minority and women business enterprises that meet the
certification requirements of the U.S. Department of Transportation are
eligible for participation in a mentor program. Other minority and women
business enterprises are also eligible if they meet the certification
requirements of this chapter. An agency may grant approval of an
enterprise application for certification concurrent with approval of a
mentor arrangement.

(b) The minority or women business enterprise must be an
independent organization, and the ownership by the individuals must be
real. Other employment and business interests by the individuals are not
precluded, if such employment or business interests do not conflict with
the power of the minority or women owners to direct the management and
policies of the minority or women enterprise to make day-to-day as well
as major decisions on matters of management, policy and operations.

(c) The mentor program is intended to provide minority and women
business enterprises with advice, assistance and training. The enterprise
shall be responsible for management and operations of the business. The
mentor shall not be responsible for the management of the firm. The
mentor and the enterprise shall remain separate and independent business
entities with the exception that facilities may be provided to the
enterprise by the mentor if a separate lease agreement is maintained by
the parties.

(d) Part ownership in a minority or women business enterprise by a
nondisadvantaged party, including a mentor, is permitted if in compliance
with 49 C.F.R. 23. Any property, equipment, supplies or other services
which are sold, rented or donated to the enterprise and any investment
made by nondisadvantaged individuals must be reported to the agency
involved in the mentor program. Documentation shall be provided by bills
of sale, lease agreements or similar documents.

(e) The mentor relationship may include an arrangement with an
independent third party, such as a bank or accountant, to act as an
agent. Third parties may receive progress payments for work accomplished
by the minority or women business enterprise, made out jointly to the
agent and the enterprise, and make payments, on behalf of the enterprise,
to material suppliers or for federal and state payroll taxes.

(3) Types of assistance a mentor may provide to the minority or
women business enterprise include:

(a) Financial assistance;

(b) Technical and management assistance;

(c) Equipment rental and use of personnel; and

(d) Bonding assistance. [1991 c.559 §2] (1) Mentor
relationships may be documented by a written development plan, approved
by the Economic and Community Development Department in consultation with
the Oregon Association of Minority Entrepreneurs. The development plan
shall:

(a) Clearly set forth the objectives of the parties and their
respective roles;

(b) Be for a specified length of time;

(c) Determine measurable goals to be reached by the minority or
women business enterprise; and

(d) Provide that if resources of the mentor are utilized by the
minority or women business enterprise in the performance of contracts or
subcontracts for the mentor or for another contractor, the resources
shall be separately identified, accounted for and compensated directly by
the minority or women business enterprise to the mentor. If the plan
provides for extensive use of the mentor’s resources by the minority or
women business enterprise, the arrangement may be closely monitored.

(2) The development plan may also include training to be provided
by the mentor to the minority or women business enterprise. Training may
include:

(a) Business planning;

(b) Record keeping;

(c) Technical training;

(d) Capital formation;

(e) Loan packaging;

(f) Financial counseling;

(g) Bonding; and

(h) Equipment utilization.

(3) The development plan may be reviewed annually by the Economic
and Community Development Department and the Oregon Association of
Minority Entrepreneurs to review the progress of the mentor program.

(4) The development plan shall contain a provision that the mentor
relationship may be terminated by mutual consent or upon determination
that:

(a) The mentor firm no longer meets the eligibility standards for
certification as a minority or women business enterprise;

(b) Either party has failed or is unable to meet its obligations
under the development plan;

(c) The minority or women business enterprise is not progressing or
is not likely to progress in accordance with the development plan;

(d) The minority or women business enterprise has reached a
satisfactory level of self-sufficiency to compete without resorting to
special treatment provided in the development plan; or

(e) The plan or provisions thereof are contrary to the requirements
of federal, state, or local law or regulation, or otherwise contrary to
public policy.

(5) Copies of the development plan shall be retained by all parties
to it, and by the Economic and Community Development Department and the
Oregon Association of Minority Entrepreneurs.

(6) The development plan may include a provision that the
arrangement shall be dissolved by either party for reason by notifying
the Economic and Community Development Department and the Oregon
Association of Minority Entrepreneurs. [1991 c.559 §3]EMERGING SMALL BUSINESS ASSISTANCE PROGRAM The Oregon
Transportation Commission shall appoint a committee to recommend plans
whereby the Department of Transportation may assist emerging small
businesses in overcoming barriers to participation in state public
improvement and maintenance projects. The committee shall report
biennially its recommendation to the commission and to the appropriate
legislative committee. [1991 c.517 §2; 2005 c.683 §8] (1) Subject to subsection
(2) of this section, to participate in the emerging small business
program under ORS 200.160 to 200.200, an applicant must:

(a) Be certified by the Department of Consumer and Business
Services under ORS 200.005 to 200.075 as an emerging small business;

(b) Show that the applicant’s place of business and the work in
which the applicant seeks to participate are located in this state; and

(c) Show that the applicant is in compliance with applicable
licensing and registration requirements.

(2) The Department of Transportation may limit eligibility for
participation on a specific project or contract to emerging small
businesses that are located in or draw a part of their workforce from
economically distressed areas or enterprise zones in this state, as
designated by the Economic and Community Development Department in
consultation with the Employment Department.

(3) An applicant who participates under ORS 200.160 to 200.200 must
perform at least 51 percent of the labor provided by the applicant on a
public improvement or maintenance project using the applicant’s own
workforce. [1991 c.517 §§3,6; 2005 c.103 §1; 2005 c.683 §9] The Emerging Small
Business Account is established within the State Highway Fund. The
Emerging Small Business Account is an investment fund for purposes of ORS
293.701 to 293.820. Moneys in the account are continuously appropriated
to the Department of Transportation for the purpose of assisting emerging
small businesses under the plans recommended under ORS 200.160. Interest
earnings on moneys in the account are credited to the account. [1991
c.517 §4; 1993 c.744 §189b; 2005 c.683 §10]The Department of Transportation, when undertaking a public
improvement highway construction contract, shall deposit with the State
Treasurer an amount equal to not more than one percent of the contract
award amount. The State Treasurer shall credit the amount reserved to the
Emerging Small Business Account established in the State Highway Fund.
The deposit must be made within 30 days of the date on which the contract
award is made. [1991 c.517 §5; 1993 c.744 §189c; 2005 c.683 §11] (1)
When any requirement exists under ORS 279.835 to 279.855 or ORS chapter
279A, 279B or 279C to provide a surety bond or other security for the
faithful performance of a public contract, an emerging small business may
provide:

(a) A surety bond issued by a corporate surety qualified by law to
issue surety insurance as defined in ORS 731.186;

(b) A stipulation or undertaking with one or more individual
sureties; or

(c) Any other form of security specified in the statute requiring
the security.

(2) When the security for the faithful performance of a public
contract is in the form of a stipulation or undertaking with one or more
individual sureties, the individual sureties must be residents of this
state. The total net worth of all the individual sureties on the
stipulation or undertaking must be at least twice the sum specified in
the stipulation or undertaking. The public agency requiring the security
shall determine if the sureties possess the qualifications prescribed by
this subsection. [1991 c.517 §8; 2003 c.794 §217]

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