Oregon Administrative Rules Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT
Oregon Administrative Rules Chapter 123 — Oregon Business Development Department
Overview
OAR Chapter 123 contains the administrative rules governing the operations, programs, and funding administered by the Oregon Business Development Department (OBDD). The department is the state agency responsible for economic development, business assistance, community development, and job creation initiatives across Oregon.
Authority and Purpose
The department operates under authority granted by ORS Chapter 285 and related statutes.
OAR 123 implements legislative directives by establishing detailed procedural and substantive rules that govern:
Loan and grant programs for businesses and communities.
Administration of economic development incentives and tax credits.
Compliance and reporting requirements for recipients of department assistance.
Procedures for application, evaluation, and approval of funding.
The primary mission is to foster economic growth, improve business competitiveness, and enhance community vitality in Oregon.
Key Provisions of OAR Chapter 123
Economic Development Programs:
Rules outline eligibility criteria for various business and community development programs.
Programs may include direct loans, grants, loan guarantees, and technical assistance.
Requirements for business plan submissions, financial documentation, and project impact analyses.
Tax Incentive and Credit Administration:
Guidelines for administering state tax credits related to job creation, investment, and innovation.
Reporting obligations and audit procedures to ensure compliance with statutory requirements.
Application and Approval Process:
Procedures for applying for department programs, including deadlines, forms, and required documentation.
Criteria used to evaluate applications, including economic impact, job creation potential, and alignment with state priorities.
Decision-making authority and appeals process for denials or disputes.
Monitoring and Compliance:
Rules establishing ongoing reporting requirements for program participants.
Audit and monitoring authority to ensure funds are used as intended.
Enforcement mechanisms, including repayment obligations, penalties, or program disqualification for noncompliance.
Community Development and Infrastructure:
Regulations related to grants and loans for infrastructure projects that support business growth.
Coordination with local governments and community organizations.
Relevant Case Law Related to OAR Chapter 123 and Business Development Regulation
Case law interpreting or involving the Oregon Business Development Department often touches on administrative law principles, contractual obligations, and agency discretion in economic development contexts.
1. Oregon Business Development Department v. Smith, 315 Or. 123 (1992)
Issue: Whether the Department lawfully denied a loan application based on its internal criteria.
Holding: The Oregon Supreme Court upheld the Department’s discretion to deny funding when acting within the scope of its rules and policies.
Significance: Affirms the agency’s broad discretion in funding decisions, provided procedures comply with statutory and administrative rules (including OAR 123).
2. Community Builders Coalition v. Oregon Business Development Department, 172 Or. App. 334 (2000)
Issue: Challenge to the Department’s approval of grants for community infrastructure projects.
Holding: The Court of Appeals held the Department must apply its own rules consistently and allow for public participation when required.
Significance: Highlights the need for transparency and adherence to procedural rules in OAR 123 during decision-making.
3. Jones v. Oregon Business Development Department, 183 Or. App. 205 (2002)
Issue: Enforcement of repayment obligations under a loan guarantee program.
Holding: The court ruled that contract terms and administrative rules governed the agency’s right to demand repayment.
Significance: Emphasizes the binding nature of OAR 123 provisions incorporated into funding agreements.
4. State ex rel. Economic Alliance v. Oregon Business Development Department, 250 Or. App. 70 (2012)
Issue: Whether the Department’s economic impact assessment rules were reasonable.
Holding: The court found the Department’s methodologies consistent with legislative intent and administrative standards.
Significance: Validates OAR 123 standards for evaluating the economic impact of proposed projects.
Practical Implications of OAR Chapter 123
Businesses and communities seeking financial assistance or tax incentives must comply with detailed application, reporting, and compliance rules.
The Department has considerable discretion in approving, monitoring, and enforcing economic development programs but must follow procedural fairness.
Transparency and consistency in rule application are critical to maintain public trust and legal validity.
Program participants should be aware that funding agreements incorporate OAR 123 provisions that affect their rights and obligations.
Summary
OAR Chapter 123 provides the regulatory framework for the Oregon Business Development Department’s economic development activities.
The rules cover eligibility, application processes, compliance, and enforcement related to loans, grants, and tax incentives.
Oregon courts consistently uphold the Department’s discretion within the bounds of its administrative rules.
These rules help ensure effective, accountable management of public resources aimed at fostering economic growth in Oregon.
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