71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1764
 
                           A-Engrossed
 
                         Senate Bill 188
                  Ordered by the Senate June 5
            Including Senate Amendments dated June 5
 
Sponsored by Senators FERRIOLI, GORDLY
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Directs Economic and Community Development Department to
establish   { - criteria for designating areas of economic
distress and inadequate lending practices, described as community
development investment areas. Establishes procedure by which
community development investment areas are designated. - }  { +
work group to determine whether tax credits or other tax-related
incentives to financial institutions would improve efforts by
financial institutions to satisfy credit needs of people in rural
or economically distressed areas. Requires work group to report
to Seventy-second Legislative Assembly. + }
    { - Establishes tax credit for financial institutions that
make loans in community development investment areas. Allows tax
credit when ___ percent of financial institution loans are made
in community development investment areas. - }
    { - Allows tax credit for loans made in tax years beginning
on or after January 1, 2002. - }
 
                        A BILL FOR AN ACT
Relating to financial institution tax credits.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) The Economic and Community Development
Department shall establish a work group to determine whether tax
credits or other tax-related incentives to financial institutions
would improve efforts by financial institutions to satisfy the
credit needs of people in rural areas or economically distressed
areas.
  (2) In order to make the determination described in subsection
(1) of this section, the work group must study the effects of the
federal Community Reinvestment Act of 1977 on lending by local
financial institutions, assess the current effectiveness of
lending in rural areas or economically distressed areas and
consider aspects that may be improved through the use of tax
credits or other tax-related incentives to financial
institutions.
  (3) The work group shall include representatives from financial
institutions, rural areas and economically distressed areas and
appropriate state agencies.
 
  (4) The work group must report its findings and make
suggestions for appropriate legislation in time for presession
filing pursuant to ORS 171.130, for presentation to the
Seventy-second Legislative Assembly. The work group must request
that any legislation suggested by the work group indicate that
the legislation is introduced at the request of the work group.
  (5) For purposes of this section:
  (a) 'Economically distressed area' means:
  (A) Any enterprise zone designated under ORS 285B.650 to
285B.728;
  (B) Any federally recognized Oregon Indian reservation; or
  (C) Any county in which the unemployment rate for the past two
years averages 120 percent or more of the statewide average
unemployment rate for that same time period.
  (b) 'Rural area' means any land that is located outside city
limits and outside any urban growth boundaries. + }
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