Sen. Chris Telfer, R-Bend, believes a change in the law governing industrial revenue bonds in Oregon will result in new jobs for the state in general, and for Central Oregon in particular.

The Oregon Senate’s Business, Transportation and Economic Development Committee recently held a hearing on Telfer’s measure, SB 1558. During that hearing, everyone from the state Treasurer’s Office to Roger Lee of Economic Development for Central Oregon lined up to tell lawmakers they support the bill.

Under current law, the Oregon Business Development Department may sell industrial revenue bonds on behalf of some businesses so they may purchase capital assets such as buildings and equipment. Telfer’s bill would add research and development and some operating capital to the list of things for which bond proceeds could be used. Proceeds from bond sales would have to be used in Oregon.

Yet, as those testifying told the committee, the change does not put the state on the hook, should a business fail. Rather, the bonds are “non-recourse” bonds, with the state fully indemnified against loss by investors. The interest payments on such bonds can be exempt from state and federal taxes.

The bill’s an important one for Central Oregon, Lee and others told the committee. A California company, MVM Technologies, is looking at expanding either to Redmond or to one of several other places around the country. Without the change, Redmond has no chance of bringing the company and its potential for as many as 2,000 jobs to the region. MVM Technologies already has an investor in hand to purchase the bonds, the committee learned.

SB 1558 should face few hurdles in the days ahead. It cleared the Business, Transportation and Economic Development Committee and was sent to the Revenue and Finance Committee with a do-pass recommendation. And while passage of the measure is no guarantee that MVM Technologies will come to Redmond, the bill’s failure would pretty much assure it won’t.