OAR 123-400-0000: Purpose and Scope

(1) The 82nd Oregon Legislative Assembly, 2023 Regular Session, passed chapter 25, Oregon Laws 2023 (Enrolled Senate Bill 4) which established the Oregon CHIPS Fund (“Fund”) and a new program to support private investment in the semiconductor and advanced manufacturing industry through financial awards of grants and loans to businesses that are covered entities (“Oregon CHIPS”). The awards are intended to serve as covered incentives and thereby assist businesses for purposes of federal semiconductor financial assistance from the U.S. Department of Commerce, pursuant to the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act of 2022 (Pub. L. 117–167), Chapter 72A, Title 15, United States Code (U.S.C.). The Fund received legislative appropriations and the Department received expenditure authority for the appropriations from sections 8 and 8b, chapter 25, Oregon Laws 2023 and sections 245 to 247, chapter 114, Oregon Laws 2024. In addition to usage for Oregon CHIPS, pursuant to chapter 81, Oregon Laws 2024, money in the Fund may be transferred to the CHIPS Child Care Fund for the purposes of providing financial support and child care subsidies for construction workforce. Pursuant to Chapter 89, Oregon Laws 2024, moneys in the Fund may also be used for National Semiconductor Technology Center projects under the federal program established pursuant to 15 U.S.C. 4656(c). (2) These administrative rules specify elements of the program developed by the Department pursuant to sections 1 to 6, chapter 25, Oregon Laws 2023 (Enrolled Senate Bill 4), in order for the state to make financial awards of grants and loans from the Fund. The permanent administrative rules for the program are effective November 29, 2023 and the amended permanent rules shall apply to all program applicants and awardee businesses. (3) In administering this program, the Governor and the Department will emphasize investments that assist communities, businesses or industries in promoting the creation, expansion, and preservation of semiconductor and advanced manufacturing in Oregon, and that encourage diversification and preservation of regional economies.