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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2348
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of Governor Tina Kotek for
Oregon Business Development Department)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act would make small changes to laws that deal with how certain economic devel-
opment programs are run. (Flesch Readability Score: 61.6).
Adjusts certain economic development program statutes related to the administration of the
programs.
A BILL FOR AN ACT
Relating to economic development programs; creating new provisions; and amending ORS 284.883,
285A.194, 285A.196, 285A.681, 285A.709, 285B.563 and 329A.723.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 284.883 is amended to read:
284.883. (1) The Oregon Growth Board is established to formulate and implement policies and
procedures to administer ORS 284.881 to 284.890, and to make recommendations for the investment,
reinvestment, management and coordination of funds in the Oregon Growth Account established
under ORS 348.702 and the Oregon Growth Fund established under ORS 284.890.
(2) The board shall consist of nine voting members and one to three nonvoting members as fol-
lows:
(a) The State Treasurer shall be an ex officio voting member of the board.
(b) The Director of the Oregon Business Development Department, or the director’s designee,
shall be an ex officio nonvoting member of the board.
(c) The Governor shall appoint eight voting members, subject to Senate confirmation under ORS
171.562 and 171.565 and the following:
(A) Two of the members shall be persons who do not belong to the same political party, [who
reflect the identity of the Legislative Assembly by political party affiliation at the time the persons are
appointed and who are selected from a list of four candidates, each candidate recommended by the
President of the Senate, the Minority Leader of the Senate, the Speaker of the House of Representatives
or the Minority Leader of the House of Representatives, respectively] one of whom is recommended
by the President of the Senate and one of whom is recommended by the Speaker of the House
ofRepresentatives.
(B) Members shall include at least one representative from each congressional district in this
state.
(C) Six members shall be appointed as follows:
(i) One member with experience in banking;
(ii) One member with experience in credit union operations;
(iii) One member with experience managing investments;
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
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(iv) One member with experience as a small business employer in this state; and
(v) Two at-large members.
(d) Two members of the Legislative Assembly that belong to different political parties as deter-
mined by the appropriate entry on official election registration cards, who are appointed by agree-
ment of the President of the Senate, the Minority Leader of the Senate, the Speaker of the House
of Representatives and the Minority Leader of the House of Representatives, shall serve as nonvot-
ing members of the board. If an agreement cannot be reached on both members of the Legislative
Assembly to serve on the board, no appointment shall be made under this paragraph.
(3) The term of office of each member who is not an ex officio member is four years. A member
appointed by the Governor serves at the pleasure of the Governor. Before the expiration of the term
of a member who is not an ex officio member, the appointing authority shall appoint a successor
whose term begins on January 1 next following. A member is eligible for reappointment. If there is
a vacancy for any cause, including but not limited to the end of a term of membership in the Leg-
islative Assembly, the appointing authority shall make an appointment to become immediately ef-
fective for the unexpired term.
(4) The board shall select one of its members as chairperson and another to serve as a liaison
with local governments for such terms and with duties and powers necessary for the performance
of the functions of these offices as the board determines, consistent with this section.
(5) A majority of the voting members of the board at the time of the meeting, excluding va-
cancies or otherwise unfilled positions, constitutes a quorum for the transaction of business.
(6) A member of the board may receive compensation and reimbursement for expenses as follows:
(a) Members of the Legislative Assembly as provided in ORS 171.072.
(b) Nonlegislative members in the manner and amounts provided in ORS 292.495. Claims for
compensation and expenses incurred in performing the functions of the board shall be paid out of
funds appropriated to the board for that purpose.
(7) The Oregon Business Development Department shall provide staff to the board as necessary
to allow the board to carry out its responsibilities under ORS 284.881 to 284.890.
SECTION 2. ORS 285A.194 is amended to read:
285A.194. (1) The Oregon Business Development Department shall establish and administer a
program in accordance with ORS 285A.193 to 285A.198 under which the department may make
forgivable loans for the purpose of reimbursing private owners or operators for the eligible costs
incurred in the completion of removal or remedial actions at brownfields.
(2)(a) Forgivable loans may be made in amounts up to the lesser of:
(A) Fifty percent of the eligible costs incurred by the owner or operator with respect to a
brownfield;or
(B)$250,000.
(b) Additional forgivable loans may be made to the owner or operator for up to two of the en-
hancements described in subsection (3) of this section with respect to the brownfield for which a
forgivable loan is made under paragraph (a) of this subsection.
(c) The total amount of loans that may be made under paragraphs (a) and (b) of this subsection
is the lesser of:
(A) One hundred percent of the eligible costs incurred by the owner or operator with respect
to the brownfield; or
(B) $500,000.
(3) A forgivable loan enhancement may be made in an amount equal to the lesser of 25 percent
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of the eligible costs incurred by the owner or operator with respect to the brownfield or $125,000
if:
(a) The brownfield is in a location identified in an electric vehicle infrastructure plan developed
by the Department of Transportation and will be operated as a publicly accessible charging station
for electric vehicles immediately after completion.
(b)(A) Housing will be constructed or redeveloped from existing improvements on the brownfield;
(B) At least four dwelling units, or 20 percent of all dwelling units, whichever is greater, will
be used as affordable housing; and
(C) Such use is ensured by a deed restriction on the brownfield that:
(i) Is enforceable by the city or county in which the brownfield is located [and] or, when ap-
plicable, by the Housing and Community Services Department; and
(ii) Is to last for at least 30 consecutive years following completion of the housing.
(c) The brownfield is located in:
(A) A census tract in which at least 20 percent of the residents are below the federal poverty
line as determined under 42 U.S.C. 9902, as amended and in effect on December 31, 2020; or
(B) A rural area or a distressed area.
(d) At least 50 percent of the brownfield will be permanently dedicated as natural areas or
public parks by a deed restriction on the brownfield that is enforceable by the city or county in
which the brownfield is located and by the Oregon Business Development Department.
(e) The brownfield is located in an area designated as having unmet health care needs in the
most recent unmet need designation report by the Office of Rural Health and on which hospital
buildings or community health care facilities are subsequently constructed.
(f) The brownfield is a developed site that became a brownfield as a direct result of wildfire.
SECTION 3. ORS 285A.196 is amended to read:
285A.196. (1) A forgivable loan made under ORS 285A.195 shall be forgiven upon submission by
the owner or operator of all documentation required by the Oregon Business Development Depart-
ment, including, but not limited to, an affidavit signed under penalty for false swearing:
(a) Stating that the owner or operator has completed performance under the voluntary agree-
ment, cost recovery agreement, consent judgment or consent order described in ORS 285A.195 (1)(b),
other than the performance of long term water monitoring or compliance with institutional or en-
gineeringcontrols;
(b) Documenting the eligible costs incurred and attesting that the costs have not been reim-
bursed;and
(c) Stating how the applicant has complied with any conditions required for any enhancement
listed in ORS 285A.194 [(3), including recording a deed restriction, for which the applicant received
an additional forgivable loan].
(2)(a) A forgivable loan may not be forgiven under subsection (1) of this section and shall be
repaid over a term of five years, with interest at the [current primary credit rate of the discount
window program of the United States Federal Reserve System plus three percent per annum] prevail-
ing bank prime loan rate as set forth in the most recent H.15 (519) , if:
[(a)] (A) The removal or remedial action at the brownfield for which the forgivable loan was
made is not completed on a schedule set forth in the loan agreement between the department and
the owner or operator entered into under ORS 285A.195; or
[(b)] (B) The owner or operator fails to comply with any condition set forth in the loan agree-
ment.
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(b) As used in this subsection, “most recent H.15 (519)” means the latest weekly statis-
tical release report designated as H.15 (519), or any successor or replacement publication,
published by the Board of Governors of the Federal Reserve System prior to the date on
which the applicable interest rate is determined.
(3) The department may in its discretion allow owners or operators to cure noncompliance with
performance or other conditions set forth in loan agreements.
(4) The department may seek appropriate legal remedies to secure repayment of forgivable loans
due the Oregon Brownfield Properties Revitalization Fund established under ORS 285A.198.
(5) Moneys repaid to the department under this section shall be deposited in the Oregon
Brownfield Properties Revitalization Fund.
SECTION 4. ORS 285A.681 is amended to read:
285A.681. (1) If the Oregon Infrastructure Finance Authority approves the project, the authority,
on behalf of the state, and the applicant may enter into a loan contract that is secured by good and
sufficient collateral.
(2) A loan contract entered into pursuant to this section shall set forth, among other matters:
(a) A plan for repayment by the applicant to the Oregon Port Revolving Fund of moneys bor-
rowed from the fund for the project and interest on the moneys at a rate of interest determined by
the authority.
(b) Provisions satisfactory to the authority for field engineering and inspection, the authority to
be the final judge of completion of the contract.
(c) That the liability of the state under the contract is contingent upon the availability of mon-
eys in the Oregon Port Revolving Fund for use in the project.
(d) Any other provision the authority considers necessary to ensure expenditure of the funds for
the purposes set forth in the approved application.
(3) The repayment plan required under subsection (2) of this section, among other matters:
(a)(A) Shall provide for commencement of repayment by the port district of moneys used for the
project and interest on the moneys no later than one year after the date of the loan contract or at
any other time as the authority may provide.
(B) Notwithstanding subparagraph (A) of this paragraph and upon approval by the authority,
may provide, with respect to a flexible manufacturing space project, that no interest shall accrue
until the building is at least 25 percent occupied or until three years after the date of the loan
contract, whichever is earlier.
(b) May provide for reasonable extension of the time for making any repayment in emergency
or hardship circumstances if approved by the authority.
(c) Shall provide for such evidence of debt assurance of, and security for, repayment by the ap-
plicant as the authority considers necessary.
(d) Shall specify a loan term that may not exceed the useful life of the contracted project or 30
years from the year of project completion, whichever is less.
(e) Shall include a payment schedule that:
(A) Provides for repayment of interest that accrues during any period of delay in repayment
authorized under paragraph (a) of this subsection; and
(B) May require payments of varying amounts for collection of the accrued interest.
(f) Shall provide for partial or complete repayment, in excess of scheduled payments, of any
outstanding principal loan amount without penalty.
(4) The Oregon Infrastructure Finance Authority may make limited moneys available from the
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Oregon Port Revolving Fund to eligible ports for grants to assist with capital improvement projects
and dredging.
(5) The Oregon Business Development Department shall adopt by rule eligibility criteria and
award limits for grants from the fund.
SECTION 5. ORS 285A.709 is amended to read:
285A.709. (1) Notwithstanding ORS 285A.708 (1) and 285A.711, available moneys in the Oregon
Port Revolving Fund that were accrued asrepayments or net earned income of the fund may be
transferred to the Port Planning and Marketing Fund created under ORS 285A.654.
(2) Notwithstanding ORS 285A.654 (1)(b), moneys transferred to the Port Planning and Market-
ing Fund under this section may be used for payments of grants under ORS 285A.654 to 285A.660
to ports formed under ORS 285A.603 to 285A.732 or ORS chapter 777 or 778.
(3) In addition to and notwithstanding any other law, an amount not to exceed five percent of
the assets of the Oregon Port Revolving Fund as calculated on July 1 of each year [shall] may be
transferred to the Port Planning and Marketing Fund under this section.
SECTION 6. ORS 285B.563 is amended to read:
285B.563. (1) There is established in the State Treasury, separate and distinct from the General
Fund, the Water Fund.Interest earned by the Water Fund shall be credited to the fund.All moneys
in the Water Fund are continuously appropriated to the Oregon Business Development Department
for the Oregon Infrastructure Finance Authority for the purposes described in ORS 285B.560 to
285B.599, including the direct project management costs.
(2)(a) Moneys in the Water Fund may be obligated to water projects.
(b) Moneys shall be used primarily to make loans to municipalities. The authority may make a
loan only if:
(A) The municipality applying for the loan certifies to the department that adequate funds will
be available to repay the loan; and
(B) The authority determines that the amount of the loan applied for is based on a reasonable
and prudent expectation of the municipality’s ability to repay the loan.
(c) The authority may award a grant if a loan is not feasible due to:
(A) Financial hardship to the municipality, as determined by the authority, based on consider-
ation of anticipated water service charges or anticipated waste water service charges, the per capita
income of the municipality and any other factors as the department by rule may establish; and
(B) Special circumstances of the water project.
(d) The authority may also award grants from the fund to:
(A) Identify and implement sustainable technologies and practices;
(B) Build asset management capacity for municipalities;
(C) Plan for strategic initiatives that focus on the regionalization of water systems; or
(D) Provide third party technical assistance to communities in the development of water systems
[that include asset management components].
(e) The authority may determine the amount of grant or loan funding on a case-by-case basis.
(3) The moneys in the fund may also be used to assist the authority in selling revenue bonds
on behalf of municipalities in order to carry out the purposes of ORS 285B.560 to 285B.599.
(4) Moneys in the Water Fund may be invested as provided by ORS 293.701 to 293.857. 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.
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(b) Moneys transferred to the fund by the authority from the Special Public Works Fund created
by ORS 285B.455.
(c) Moneys transferred to the Water Fund by the Water Resources Commission from the Water
Development Fund created by Article XI-I(1) of the Oregon Constitution.
(d) Moneys from any federal, state or other grants.
(e) Proceeds of revenue bonds issued under ORS 285B.575.
(f) Earnings on the Water Fund.
(6) The authority shall administer the fund.
(7) The department shall adopt rules and policies for the administration of the fund. The de-
partment shall coordinate its rulemaking regarding safe drinking water projects with the Water
Resources Department and the Oregon Health Authority. The rules adopted under this subsection
for safe drinking water projects shall:
(a) Require the installation of meters on all new active service connections from any distribution
lines funded with moneys from the fund or from the proceeds of revenue bonds issued under ORS
285B.572 to 285B.578.
(b) Require a plan, to be adopted by a municipality receiving financial assistance from the fund,
for installation of meters on all service connections throughout the drinking water system not later
than two years after the completion of a safe drinking water project.
(8)(a) The Oregon Infrastructure Finance Authority shall manage the Water Fund and any
expenditures from accounts in the fund and transfers between accounts so that the fund provides a
continuing source of financing consistent with ORS 285B.413.
(b) If necessary to ensure repayment of bonds issued under ORS 285B.560 to 285B.599, the au-
thority may reduce the value of the fund when the authority:
(A) Finds that without a reduction in fund value, bonds secured by the fund are likely to be in
default; and
(B) Imposes a moratorium on grants until the requirements of paragraph (a) of this subsection
are satisfied.
(9)(a) The authority may charge administrative costs to the fund, but not to moneys segregated
in the account created by subsection (11) of this section, to pay for administrative costs incurred
by the authority.
(b) To the extent permitted by federal law, administrative costs of the authority may be paid
from bond proceeds.
(10) The authority may establish other accounts within the Water Fund for the payment of water
projects costs, reserves, debt service payments, credit enhancements, costs of issuing revenue bonds,
administrative costs and operating expenses or any other purpose necessary to carry out ORS
285B.560 to 285B.599.
(11) There is created within the Water Fund a separate and distinct account for the proceeds
from the sale of water development general obligation bonds issued for safe drinking water projects
and credited to the special account under this section. Any investment earnings thereon shall be
segregated in and continuously appropriated to a special, separately accounted for subaccount of
this account. Moneys credited to this account shall be maintained separate and distinct from moneys
credited to subaccounts created under subsection (10) of this section. Notwithstanding ORS
285B.566 or subsection (4) of this section, all repayments of moneys loaned from the account created
by this subsection, including interest on the moneys, shall be credited to the Water Development
Administration and Bond Sinking Fund created by ORS 541.830.
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(12) As used in this section, “administrative costs” include the authority’s direct and indirect
costs for investigating and processing an application, developing a contract, monitoring the use of
funds by a municipality, investigating and resolving a budget discrepancy, closing a project and
providing financial and other assistance to a municipality.
SECTION 7. ORS 329A.723 is amended to read:
329A.723. As used in ORS 329A.720 to 329A.732:
(1) “Administrative costs” includes, but is not limited to, the direct and indirect costs incurred
by the Oregon Business Development Department for:
(a) Reviewing and processing applications for grants and loans for financial assistance submitted
by eligible applicants under ORS 329A.727.
(b) Monitoring the use of funds by recipients.
(2) “Child care facility” has the meaning given that term in ORS 329A.250.
(3) “Early child care infrastructure activity” means an activity that contributes to the develop-
ment of a robust child care system in this state.
(4) “Eligible applicant” means any of the following:
(a) A certified or registered family child care provider.
(b) A person or nonprofit organization that operates a child care facility.
(c) A child care center certified under ORS 329A.280 by the Department of Early Learning and
Care.
(d) Federally recognized Indian tribes in Oregon [that are preschool providers participating in the
Preschool Promise Program established under ORS 329.172].
(e) Organizations that support the expansion or establishment of child care providers.
(f) Programs that serve children in publicly funded early learning and care programs including:
(A) Programs funded by the Early Childhood Equity Fund established under ORS 417.781.
(B) Relief nurseries.
(C) Programs that receive subsidies through the Employment Related Day Care subsidy program
under ORS 329A.500.
(D) Oregon Head Start, prekindergarten and Early Head Start programs.
(E) Programs that provide early childhood special education or early intervention services, as
provided by ORS 343.475.
(g) Culturally specific early learning, early childhood and parent support programs described
under ORS 417.782 (1).
(h) Any other applicants that the Oregon Business Development Department deems to be an el-
igible applicant as provided by department rule.
(5) “Family child care provider” has the meaning given that term in ORS 329A.430.
SECTION 8. The amendments to ORS 285A.194 and 285A.196 (1)(c) by sections 2 and 3 of
this 2025 Act apply to calendar years beginning on or after January 1, 2021.
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