Relating to economic development; declaring an emergency.
HB 2322 revises Oregon’s 2023 CHIPS Fund program to broaden how state semiconductor-related economic development money can be used. The bill authorizes the Oregon Business Development Department and the Governor to award grants and loans not only to businesses that apply for federal semiconductor financial assistance, but also to businesses that are eligible for that federal assistance and have not applied. It also expands the program beyond semiconductor projects to include other “targeted industries,” such as high technology, bioscience, metals and machinery, food and beverages, forestry and wood products, outdoor gear and apparel, and business services.
The measure renames the CHIPS Fund as the “Oregon Fostering Innovation Strength at Home and CHIPS Fund” and updates the statutory definitions, application requirements, approval criteria, repayment rules, and fund uses to match the broader program. It preserves requirements tied to labor and environmental compliance, prevailing wage standards on construction projects, and performance expectations for revenue generation or job creation. It also extends confidentiality for trade secrets in applications through January 1, 2029, and declares an emergency so the act takes effect immediately upon passage.
HB 2322 amends multiple sections of Oregon Laws 2023 governing the state semiconductor incentive program, changing who may apply, what projects may qualify, and how the fund may be administered. It expands the eligible recipient pool to include covered entities that have not sought federal CHIPS Act assistance, broadens allowable uses of grant and loan proceeds to site development, research and development, and workforce partnerships for targeted industries, and updates the state fund’s name and related transfer provisions. The bill also affects repayment and enforcement rules by maintaining clawback provisions for nonperformance, noncompliance, or misrepresentation, while preserving the Oregon Business Development Department’s and Governor’s authority over awards and oversight.
The bill appears to have been viewed favorably overall. It advanced through the House committee process unanimously at the committee stage and then passed House third reading by a wide margin, 45-1. The vote history suggests broad support for the bill’s economic development goals and for adapting Oregon’s CHIPS-related incentives to a wider set of industries and project types.
The main policy tension in HB 2322 is between expanding the program’s reach and preserving accountability. Supporters appear to favor giving the state more flexibility to attract semiconductor and other targeted-industry investment, including projects that have not applied for federal CHIPS assistance. Potential concerns center on whether the broader eligibility and uses of funds dilute the original semiconductor focus, and on the size and oversight of awards, especially large grants or loans over $50 million. The bill retains labor, environmental, wage, and performance requirements, indicating an effort to address concerns about public accountability and job/revenue outcomes.