200.055. The Certification Office for Business Inclusion and Diversity may approve an application for certification under ORS 200.055 at the same time the department approves a mentor arrangement. ��

200.055. The Certification Office for Business Inclusion and Diversity may approve an application for certification under ORS 200.055 at the same time the department approves a mentor arrangement.

����� (b) Remaining independent from the contractor and maintaining a minority individual�s, woman�s or veteran�s actual ownership of the enterprise or business. A minority individual, woman or veteran who owns the enterprise or business may have other employment and business interests if the employment or business interests do not conflict with the minority individual�s, woman�s or veteran�s power to direct the management and policies of the disadvantaged business enterprise, minority-owned business, woman-owned business, veteran-owned business or emerging small business and to make day-to-day and major decisions on matters of management, policy and operations. A contractor may provide facilities to the enterprise or business if the contractor and the enterprise or business maintain a separate lease agreement.

����� (c) Complying with 49 C.F.R. 26 as to an individual�s or entity�s part ownership in a disadvantaged business enterprise, a minority-owned business, a woman-owned business, a veteran-owned business or an emerging small business if the individual or entity is not certified under ORS 200.055. The enterprise or business shall report any property, equipment, supplies or other services that the enterprise or business buys, rents or receives as a donation and any investment that an individual or entity makes in the enterprise or business if the individual or entity is not certified under ORS 200.055. The report must include bills of sale, lease agreements or similar documents.

����� (3) A mentor relationship may include an arrangement with an independent third party, such as a bank or accountant, to act as an agent. A third party may receive progress payments for work that a disadvantaged business enterprise, a minority-owned business, a woman-owned business, a veteran-owned business or an emerging small business accomplishes, made out jointly to the third party and the enterprise or business, and may make payments on behalf of the enterprise or business to material suppliers or for federal and state payroll taxes.

����� (4) Types of assistance that a contractor may provide in a mentor relationship to a disadvantaged business enterprise, a minority-owned business, a woman-owned business, a veteran-owned business or an emerging small business include:

����� (a) Financial assistance;

����� (b) Technical and management assistance;

����� (c) Equipment rental and use of personnel; and

����� (d) Bonding assistance. [1991 c.559 �2; 2009 c.830 �140; 2015 c.565 �9; 2023 c.497 �9]

����� 200.120 Development plan for mentor relationship; contents; review; termination. (1) The Oregon Business Development Department, in consultation with the Oregon Association of Minority Entrepreneurs, may approve a written development plan as part of a mentor relationship. The development plan must:

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

����� (b) Be for a specified length of time;

����� (c) Determine measurable goals that the disadvantaged business enterprise, minority-owned business, woman-owned business, veteran-owned business or emerging small business must reach; and

����� (d) Provide that if a disadvantaged business enterprise, a minority-owned business, a woman-owned business, a veteran-owned business or an emerging small business uses a mentor�s resources in performing contracts or subcontracts for the mentor or for another contractor, the enterprise or business shall separately identify, account for and directly compensate the mentor for the resources. The department may closely monitor a development plan that provides that the enterprise or business will use the mentor�s resources extensively.

����� (2) The development plan may also provide for the mentor to train the disadvantaged business enterprise, minority-owned business, woman-owned business, veteran-owned business or emerging small business. 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 Oregon Business Development Department and the Oregon Association of Minority Entrepreneurs may review the development plan annually to monitor progress.

����� (4) The development plan must provide that the mentor relationship may be terminated by mutual consent or if:

����� (a) An enterprise or a business no longer qualifies for certification under ORS 200.055 as a disadvantaged business enterprise, a minority-owned business, a woman-owned business, a veteran-owned business or an emerging small business;

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

����� (c) The disadvantaged business enterprise, minority-owned business, woman-owned business, veteran-owned business or emerging small business is not progressing or is not likely to progress in accordance with the development plan;

����� (d) The disadvantaged business enterprise, minority-owned business, woman-owned business, veteran-owned business or emerging small business 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 of the plan are contrary to the requirements of federal, state, or local law or regulation, or otherwise contrary to public policy.

����� (5) The parties to the development plan, the Oregon Business Development Department and the Oregon Association of Minority Entrepreneurs shall retain copies of the plan.

����� (6) The development plan may provide that either party may dissolve the plan for any reason by notifying the Oregon Business Development Department and the Oregon Association of Minority Entrepreneurs. [1991 c.559 �3; 2009 c.830 �141; 2015 c.565 �10; 2023 c.497 �10]

����� 200.150 [1991 c.517 �1; repealed by 2005 c.683 �13]

EMERGING SMALL BUSINESS ASSISTANCE PROGRAM

����� 200.160 Transportation Commission duties; report. 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]

����� 200.170 Eligibility for participation. (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 Oregon Business Development Department 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 Oregon Business 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; 2009 c.830 �142]

����� 200.180 Emerging Small Business Account; uses. 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 293.857. 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]

����� 200.190 Deposit of one percent of highway construction contract amount. 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]

����� 200.200 Security for performance by emerging small business. (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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