SB 4 semiconductor grant and loan program OPPOSE

SB 4 VOTE: NO

SUBMIT TESTIMONY

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In CommitteePublic Hearing 02/27/2023 5:00pm   HR F
Status (overview) of bill: https://olis.oregonlegislature.gov/liz/2023R1/Measures/Overview/SB4
Committee assigned to bill: https://olis.oregonlegislature.gov/liz/2023R1/Committees/JSEMI/Overview

This bill directs Oregon Business Development Department to develop grant and loan program to support businesses applying for financial assistance under Creating Helpful Incentives to Produce Semiconductors for America Act of 2022 (P.L. 117-167). Qualified projects are development of a site, research and development to advance manufacturing OR partner with higher education of  historically Black colleges for workforce development, training, apprenticeship and internships with respect to semiconductors and advanced manufacturing.

If we are talking about equity, the preference for Black college seems racists. What about Blacks and underserved in any college. Why not any low income program? Do historically black colleges exist in Oregon?

The bill provides that program be administered jointly by department and Governor. Allows Governor to designate certain lands to be brought within urban growth boundaries by executive order for specified industrial uses for Cities of Albany, Boardman, Corvallis, Gresham, Happy Valley, Hillsboro, McMinnville,
Medford, Newport, North Plains, Redmond, Scappoose, Sherwood, The Dalles, Tualatin and Wilsonville. Do these cities meet the diversity standards?.

Gives the Governor final decision to approve a program grant up to $25 million without legislative approval, which isn’t appealable.

Preference is given to applications that propose projects described as the covered entity has a documented interest in constructing, expanding, or modernizing a facility in semiconductor manufacturing that will incorporate significant participation by businesses owned by members of underrepresented communities and economically disadvantaged individuals; and applications that, taken together, represent regional diversity in Oregon. This limits the opportunity to specific areas based only on population that may not be the best place environmentally or geographically to build.

Projects must create new full-time jobs, generate at least $1.5 million in state and local revenue. May also receive a $15,000 grant to assist in application costs after approved.

Allows local governments to rezone lands for such uses by ordinance.

The bill removed $210 million from the Rainy Day Fund using $200 million for grants and loans, and $10 million for economic development from the University Innovation Research Fund.

This bill could easily be amended to get support.