SALEM — A bill to issue $10 million in lottery bonds to fund economic and workforce development projects in Malheur County passed out of committee Monday.

It heads next to Ways and Means, the Oregon Legislature’s bicameral budget-writing committee, where it will face more vetting.

The legislation would create a specific fund and advisory board. Seven voting members appointed by the governor would make grants and loans intended to spur economic development. An eighth nonvoting member would be director of the Oregon Business Development Department, which would administer the funds and provide staff for the board.

Since it was introduced as legislation in February, the area of the proposed region has been expanded to “better reflect” the communities in the Treasure Valley, said Speaker of the House Tina Kotek, D-Portland, a sponsor of the bill along with State Rep. Cliff Bentz, R-Ontario.

The proposal will face competition for limited state bond funds.

While the voting members of the board would make decisions about how the money is awarded, if passed, the bill would place another economic development program under the administrative umbrella of the Oregon Business Development Department.

In a recent audit, the Oregon Secretary of State’s Office found the department didn’t report on some outcomes of economic development incentives and loan programs, and could be better at reporting information to the public and lawmakers about awards to specific businesses.

The prevailing argument in favor of the legislation seems to be that southeastern Oregon faces a competitive disadvantage vis-a-vis Idaho, which has fewer regulations such as land use restrictions and a lower minimum wage.

Under an amendment to the bill, the board could identify policies that place the region at a competitive disadvantage; the bill would allow the board to request a waiver from the appropriate commission, board or agency on the specific issue, which would in turn be evaluated during a public hearing.

Paul Skeen, of Nyssa, the president of the Malheur County Onion Growers Association, said the measure would allow the area’s onion growers to be more competitive.

“The most important need that we have here is to level our playing field with Idaho,” Skeen said last month in written testimony to the House Committee on Economic Development and Trade.