71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
HA to HB 2488
LC 622/HB 2488-2
HOUSE AMENDMENTS TO
HOUSE BILL 2488
By COMMITTEE ON ADVANCING E-GOVERNMENT
May 31
On page 1 of the printed bill, line 2, after 'taxation ' insert
'; creating new provisions; and amending ORS 285B.650, 285B.707
and 285B.713 and section 3c, chapter 1104, Oregon Laws 1999'.
On page 7, after line 26, insert:
' { + SECTION 19. + } ORS 285B.650 is amended to read:
' 285B.650. As used in ORS 285B.650 to 285B.728, unless the
context requires otherwise:
' (1) 'Business firm' means a person operating or conducting
one or more trades or businesses but does not include any
governmental agency, municipal corporation or nonprofit
corporation.
' (2) 'Eligible business firm' means a firm engaged in an
activity described under ORS 285B.707 which may file an
application for precertification under ORS 285B.719.
' (3) 'Employee' means a person who works more than 32 hours
per week, but does not include persons with temporary or seasonal
jobs or persons hired solely to construct qualified property.
' { + (4) 'Energy facility' has the meaning given that term
in ORS 469.300.
' (5) 'Energy generation enterprise zone' means an enterprise
zone designated pursuant to section 20 of this 2001 Act. + }
' { - (4) - } { + (6) + } 'Enterprise zone' means one of the
30 areas designated or terminated and redesignated by order of
the Governor under ORS 284.160 (1987 Replacement Part) before
October 3, 1989, one of the 17 areas designated by the Director
of the Economic and Community Development Department under ORS
285B.653, areas designated under ORS 285B.677 { - and - }
{ + , + } areas designated under ORS 285B.689 { + and energy
generation enterprise zones designated under section 20 of this
2001 Act + }.
' { - (5) - } { + (7) + } 'First-source hiring agreement'
means an agreement between a precertified business firm and a
publicly funded job training provider whereby the job training
provider refers qualified candidates to the firm for new jobs and
job openings in the firm.
' { - (6) - } { + (8) + } 'Modification' means
modernization, renovation or remodeling of an existing building
or structure.
' { - (7) - } { + (9) + } 'Nonurban enterprise zone' means
an enterprise zone located outside a regional or metropolitan
urban growth boundary.
' { - (8) - } { + (10) + } 'Precertified business firm'
means an eligible business firm whose application for
precertification has been approved under ORS 285B.719 and which
may apply for a property tax exemption under ORS 285B.722.
' { - (9) - } { + (11) + } 'Publicly funded job training
provider' includes but is not limited to, community colleges, Job
Training Partnership Act service providers, and other similar
programs.
' { - (10) - } { + (12) + } 'Qualified business firm' means
a business firm described in ORS 285B.704 whose application for a
property tax exemption has been approved under ORS 285B.722.
' { - (11) - } { + (13) + } 'Qualified property' means
property described under ORS 285B.713.
' { - (12) - } { + (14) + } 'Sponsor' means the city or
county that applied for and received approval of an enterprise
zone under ORS 284.150 and 284.160 (1987 Replacement Part), under
ORS 285B.656 and 285B.659, under ORS 285B.677 or 285B.686
{ - or - } { + , + } under ORS 285B.689 { + or under section
20 of this 2001 Act + }.
' { - (13) - } { + (15) + } 'Urban enterprise zone' means an
enterprise zone in a metropolitan statistical area, as defined by
the most recent federal decennial census, located inside a
regional or metropolitan urban growth boundary.
' { + SECTION 20. + } { + (1) Any city or county, or
combination of cities and counties, may file an application under
ORS 285B.656 for designation of an area as an energy generation
enterprise zone. The applicant shall specify on the application
that an energy generation enterprise zone is being sought.
' (2) The Director of the Economic and Community Development
Department may designate energy generation enterprise zones
without regard to any limitation on the number of enterprise
zones that may be designated in this state.
' (3) An energy generation enterprise zone need not meet the
requirements of ORS 285B.662.
' (4) The director shall approve an application filed under
this section and designate the area that was the subject of the
application as an energy generation enterprise zone if the
director determines that the proposed area meets the requirements
established in rules adopted under section 21 of this 2001 Act.
' (5) Except as otherwise provided in this section, an energy
generation enterprise zone shall be an enterprise zone under ORS
285B.650 to 285B.728 and property shall be exempt from ad valorem
property tax to the extent allowed under ORS 285B.650 to
285B.728. + }
' { + SECTION 21. + } { + The Economic and Community
Development Department shall by rule establish requirements that
an area that has been proposed for energy generation enterprise
zone designation must meet in order for the Director of the
Economic and Community Development Department to designate the
zone. The rules shall be designed so that the requirements can be
met only when there is a demonstrated need for increases in
energy generation capacity in the region that would be served by
energy facilities located in the proposed zone. + }
' { + SECTION 22. + } ORS 285B.707 is amended to read:
' 285B.707. (1) Except as provided in subsections (3) { - and
(4) - } { + to (5) + } of this section, to be an eligible
business firm, a business firm must be engaged in the business of
providing goods, products or services to other businesses, and
not to the general public for personal or household use or
consumption, through activities including, but not limited to,
manufacturing, assembly, fabrication, processing, shipping or
storage.
' (2) Businesses significantly engaged in business activities
within the enterprise zone such as retail sales or services,
child care, housing, retail food service, health care, tourism,
entertainment, financial services, professional services, leasing
space to others, property management, construction or other
similar activities are not eligible business firms.
' (3) Notwithstanding subsection (1) or (2) of this section, a
business firm that operates a hotel, motel or destination resort
is an eligible business firm regardless of the sale of services
for personal consumption, if allowed in the enterprise zone under
ORS 285B.716.
' (4) Notwithstanding any other provision of this section, if a
business firm described in subsection (2) of this section engages
in an activity described in subsection (1) of this section, the
business firm is an eligible business firm if the activity is
performed at a location that is separate from the activity of the
firm that is described in subsection (2) of this section. For
purposes of determining whether a business firm described in this
subsection satisfies the requirements of ORS 285B.704, only the
operations of the firm that are described in subsection (1) of
this section and employees working a majority of their time in
those operations shall be considered.
' { + (5) Notwithstanding subsections (1) and (2) of this
section, a business firm that operates an energy facility within
an energy generation enterprise zone is an eligible business
firm. + }
' { - (5) - } { + (6) + } Two or more business firms that
otherwise meet the requirements of this section may elect to be
treated as one eligible business firm if 100 percent of the
equity interest in the business firms is owned by the same person
or persons, or if one of the business firms owns 100 percent of
the equity interest of the other or others.
' { - (6) - } { + (7) + } Notwithstanding subsection (1) or
(2) of this section, a business firm engaged in the activity of
providing a retail or financial service is an eligible business
firm if:
' (a) The activity serves customers by responding to orders or
requests received only by telephone, computer, the Internet or
similar means of telecommunications; and
' (b) Not less than 90 percent of the customers or orders are
located and originate in an area from which long distance
telephone charges, in the absence of a toll-free number, would
apply if the order were placed by telephone.
' { - (7) - } { + (8) + } Notwithstanding subsection (1) or
(2) of this section, a business firm that makes an investment in
qualified property at a facility that serves statewide, regional,
national or global operations of the firm through administrative,
design, financial, management, marketing or other activities is
an eligible business firm, without regard to the relationship of
such activities to any otherwise eligible activities within the
enterprise zone if:
' (a) In approving the application for precertification, the
zone sponsor includes with the application a formal finding that
the facility complies with the requirements of this subsection
and that the size of the proposed investment, the employment at
the facility or the nature of the activities at the facility will
significantly enhance the local economy, in relation to the
overall purpose and employment of the zone;
' (b) The actual investment and facility of the firm are
consistent with the descriptions presented in the
precertification application; and
' (c) For purposes of ORS 285B.704, all employees at the
facility constitute employment of the firm, as defined in ORS
285B.704.
' { + SECTION 23. + } ORS 285B.713 is amended to read:
' 285B.713. (1) The property tax exemption provided under ORS
285B.698 shall be available only for qualified property of a
qualified business firm.
' (2) The following kinds of property are qualified for the
exemption allowed under ORS 285B.698:
' (a) A new building or structure with a cost of $25,000 or
more.
' (b) An addition to or modification of an existing building or
structure. The total cost of qualifying additions or
modifications to an existing building or structure shall be at
least $25,000 in one assessment year. In order to satisfy the
minimum investment requirement, the cost of two or more additions
or modifications made in one assessment year to a single building
or structure may be aggregated.
' (c) Any real property machinery or equipment, whether new,
used or reconditioned, that is newly purchased, leased or
transferred into the enterprise zone from outside the county
within which the zone is located and installed in property owned
or leased by a qualified business firm.
' (d) Any single item of personal property machinery or
equipment, whether new, used or reconditioned, that is newly
purchased, leased or transferred into the enterprise zone from
outside the county within which the zone is located and installed
in property owned or leased by a qualified business firm and:
' (A) That has a cost of at least $1,000 if the property is
used exclusively for producing tangible goods; or
' (B) That has a cost of at least $50,000.
' (e) A new building and associated structures owned by a
governmental body that are leased to one or more qualified
business firms.
' (f) Any property otherwise described in this section that is
owned or leased and operated by a business firm operating a
hotel, motel or destination resort, to the extent that the
property is located on the same site as the hotel, motel or
destination resort and is used primarily to serve overnight
guests of the hotel, motel or destination resort. For purposes of
this paragraph, property is primarily used to serve guests if at
least 50 percent of any receipts from such use are paid by
guests.
' (g) Any property otherwise described in this section that is
owned or leased and operated by a business firm described in ORS
285B.707 (4), to the extent that the property is used exclusively
in an activity described in ORS 285B.707 (1).
' { + (h) If located within an energy generation enterprise
zone, only property otherwise described in this section that is
an energy facility, an addition to or modification of an energy
facility or property used in or to support the operations of an
energy facility. + }
' (3) The following property is not qualified for exemption
under ORS 285B.698:
' (a) Land.
' (b) Self-propelled motorized vehicles.
' (c) Property excluded under ORS 285B.698 (5).
' { + SECTION 24. + } { + Sections 20 and 21 of this 2001
Act and the amendments to ORS 285B.650, 285B.707 and 285B.713 by
sections 19, 22 and 23 of this 2001 Act apply to tax years
beginning on or after July 1, 2002. + }
' { + SECTION 25. + } { + Sections 20, 21 and 30 to 32 of
this 2001 Act are added to and made a part of ORS 285B.650 to
285B.728. + }
' { + SECTION 26. + } Section 3c, chapter 1104, Oregon Laws
1999, is amended to read:
' { + Sec. 3c. + } (1) If an eligible business firm completes
an investment of $25 million or more in the enterprise zone in
qualified property confined entirely within an established
operating division of the firm that would be an eligible business
firm if it were separately incorporated, the firm may elect to
have the division treated as a separate eligible business firm
for purposes of applicable requirements under ORS 285B.692 to
285B.728. The election described in this subsection may only be
made with respect to an application for the exemption of
qualified property under ORS 285B.722 that was filed on or before
January 1, 1999.
' (2) For purposes of ORS 285B.704 (2) or (3), if the eligible
business firm makes a total investment in the enterprise zone of
$50 million or more in qualified property that initially
qualifies for not more than three consecutive years, the
governing body of the sponsor may also provide for one or more of
the following as documented in the resolution under ORS 285B.704:
' (a) That, notwithstanding ORS 285B.701 (3) or 285B.719 (1),
this subsection and the application for precertification includes
qualified property in the zone, for which construction,
modification or installation commenced prior to the application,
if the firm is precertified prior to use or occupancy of the
qualified property;
' (b) That the exemption shall be granted without regard to the
cost of any portion of the investment that initially qualifies in
any single year; or
' (c) That the firm is not bound by any election under
subsection (1) of this section or ORS 285B.707 { - (5) - }
{ + (6) + } in effect at the time at which the zone terminated,
in the case of a precertification and exemption that is otherwise
allowed under ORS 285B.686 (2).
' { + SECTION 27. + } { + Section 28 of this 2001 Act is
added to and made a part of ORS 469.300 to 469.563. + }
' { + SECTION 28. + } { + (1) A county, city, district,
political subdivision or other agency of this state may not:
' (a) Levy or collect from an energy facility any tax, license
fee or other fee measured by the volume of electrical energy
produced by that energy facility; or
' (b) Levy or collect any tax, license fee or other fee from
any person on the volume of fuel purchased for, delivered to or
consumed by any energy facility, except when the county, city,
district, political subdivision or other agency levies or imposes
generally, on a nondiscriminatory basis throughout the
jurisdiction or taxing authority, an otherwise lawful tax,
license fee or other fee on the purchase, delivery or consumption
of fuel.
' (2) Nothing in subsection (1) of this section applies to:
' (a) A city that collects municipal franchise fees;
' (b) A city with a municipal electric utility that provides
for in-lieu-of-taxes, that levies or collects a tax, license fee
or other fee on a consumer of electric services or that receives
compensation for goods, services or property provided to an
energy facility; or
' (c) A city that exercises the authority provided under ORS
221.655. + }
' { + SECTION 29. + } { + Section 28 of this 2001 Act
applies to taxes, license fees or other fees created by a county,
city, district, political subdivision or other agency of the
state on or after January 1, 2001. + }
' { + SECTION 30. + } { + The Legislative Assembly finds and
declares that:
' (1) The designation of energy generation enterprise zones
provides substantial benefits to business firms that construct,
add, modify or install energy facilities in Oregon;
' (2) A business firm that constructs, adds, modifies or
installs an energy facility in an energy generation enterprise
zone and that will be eligible for exemption from ad valorem
property taxation under ORS 285B.698 has broad discretion in
determining the workforce to be used to construct, add, modify or
install the energy facility; and
' (3) Oregon communities and workers should have the
opportunity to benefit from the construction, addition,
modification or installation of energy facilities in energy
generation enterprise zones. + }
' { + SECTION 31. + } { + (1) A business firm applying for
precertification under ORS 285B.719 and subsequently for property
tax exemption under ORS 285B.722 shall, prior to applying for
precertification or property tax exemption, enter into an
agreement with a city or county that applied for designation of
the energy generation enterprise zone in which the firm intends
to operate. The agreement must state the extent to which the
firm, in constructing, adding, modifying or installing energy
facilities, must:
' (a) Meet the standards of responsibility specified in ORS
279.029.
' (b) Meet standards so as not to be disqualified by a public
contracting agency under ORS 279.037.
' (c) Hire local residents whenever possible to construct, add,
modify or install energy facilities.
' (d) Demonstrate that a contractor is registered with the
Apprenticeship and Training Division of the Bureau of Labor and
Industries or with the Bureau of Apprenticeship and Training of
the United States Department of Labor as a training agent for the
classification of workers the contractor will employ.
' (e) Demonstrate that a contractor has in place employer-paid
pension and health benefit plans for employees.
' (f) Demonstrate that a contractor has in place a written
employee drug testing program that includes for-cause testing.
' (g) Pay the prevailing rate of wage established by the
Commissioner of the Bureau of Labor and Industries pursuant to
ORS 279.359 for the locality where the work is to be performed.
' (h) Utilize independent contractors to avoid the designation
of workers as employees of the contractor.
' (i) Hold all subcontractors utilized in performance of the
work to the same standards expressed in this subsection.
' (2) An applicant shall include a copy of the agreement with
the application for precertification or property tax exemption
submitted under ORS 285B.719 or 285B.722. + }
' { + SECTION 32. + } { + (1) In the case of a business firm
that is subject to an agreement under section 31 of this 2001
Act, any city or county within 30 miles of the energy generation
enterprise zone may request that the agreement be terminated.
' (2) The termination request shall be submitted in writing to
the Economic and Community Development Department. A copy of the
request shall be sent to the business firm and to each city or
county that applied for zone designation under section 20 of this
2001 Act.
' (3) The business firm, or a city or county described in
subsection (2) of this section, may submit comments related to
the termination request to the department within 14 days
following the date the termination request was submitted.
' (4) Within 30 days following the receipt of the termination
request, the department shall decide to terminate the agreement
or continue the provisions of the agreement. The department shall
set forth its decision in writing. + } ' .
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