71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
HA to B-Eng. SB 229
LC 1988/SB 229-B4
HOUSE AMENDMENTS TO
B-ENGROSSED SENATE BILL 229
By COMMITTEE ON ADVANCING E-GOVERNMENT
May 18
On page 5 of the printed B-engrossed bill, after line 13,
insert:
' { + SECTION 9. + } { + Sections 10 and 11 of this 2001 Act
are added to and made a part of ORS chapter 285B. + }
' { + SECTION 10. + } { + (1) As used in this section and
section 11 of this 2001 Act:
' (a) 'Advanced telecommunications facilities' means
high-speed, dedicated or switched broadband telecommunications
infrastructure or equipment that enables users to send or receive
high quality voice, data or video telecommunications using any
technology.
' (b) 'Last mile connection' means a communications channel
from the feed from a connecting bypassing intercity
telecommunications carrier through a telecommunications switching
center, or an individual message distribution point, to a user
terminal.
' (c) 'Local exchange carrier' means a person that holds a
certificate of authority issued by the Public Utility Commission
under ORS 759.020 to provide intrastate telecommunications
service or local exchange telecommunications service within this
state.
' (d) 'Telecommunications carrier' means a provider of
telecommunications services, but does not include an aggregator,
as defined in 47 U.S.C. 226.
' (2) A telecommunications carrier seeking a tax credit under
section 15 of this 2001 Act for the installation of advanced
telecommunications facilities, prior to incurring any costs
associated with the installation, shall apply to the Economic and
Community Development Department for certification of the
facilities as advanced telecommunications facilities.
' (3) The application for certification shall be in the form
and shall contain the information required by the department
pursuant to rules adopted by the department for the
administration of the tax credit certification under this
section, including but not limited to:
' (a) A complete description of the installation project and
the customers to be served by the project;
' (b) The expected costs for completing the project;
' (c) The expected start date and the expected date on which
the advanced telecommunications facilities are to be placed in
service;
' (d) The geographic area or areas in which the advanced
telecommunications facilities are to be installed; and
' (e) A description of how the facilities will be integrated
into the operations of the intrastate telecommunications services
provided by the telecommunications carrier.
' (4) The application for certification shall be accompanied by
technical documentation demonstrating that the facilities will
meet or exceed applicable minimum performance standards
established by the department under section 11 of this 2001 Act.
' (5) The department may approve or deny an application for
certification or may request changes to the application before
issuing certification. Denial of an application may be appealed
to the department in the manner of a contested case under ORS
183.310 to 183.550.
' (6) The department shall approve an application and certify
the facilities as advanced telecommunications facilities if the
facilities:
' (a) Are to be located in an area in which current minimum
bandwidth service is not available to a majority of customers;
' (b) Improve access to advanced telecommunications services
for a majority of all customers in unserved or underserved
service areas; and
' (c) Meet the minimum performance standards to comply with
section 11 of this 2001 Act.
' (7) Upon approval of an application, the department shall
send to the applicant a written certification of the facilities
as advanced telecommunications facilities. The certification
shall state the date by which the facilities must be placed in
service and the cost of the facilities that are being certified.
' (8) Notwithstanding subsection (6) of this section, the
department may not approve an application and certify a facility
if the cost of the facility plus the certified costs of all other
facilities that have been certified during the year exceeds $10
million.
' (9) The department may charge a fee for processing
applications under this section. The fee may not exceed the
average cost of reviewing an application, performing a technical
review of the proposed project and issuing a written
certification under this section. + }
' { + SECTION 11. + } { + (1) The Economic and Community
Development Department shall adopt rules setting minimum
performance standards that facilities must meet to be certified
as advanced telecommunications facilities. The rules must
establish minimum performance standards in the following areas:
' (a) Enhancement of individual and business access to advanced
telecommunications services at an economically reasonable cost;
' (b) Development and transition to a fully competitive
telecommunications marketplace;
' (c) Provision of bidirectional bandwidth capabilities to
customers;
' (d) Accessibility to competitive local exchange carriers;
' (e) Improvement in access by public and private educational
institutions, rural health clinics and libraries to advanced
telecommunications services;
' (f) Improvement in telecommunications connections between
communities in this state;
' (g) Improvement in last mile connections within this state;
and
' (h) Improvement in access by Oregon health care providers to
interactive video and other health care applications requiring
advanced telecommunications services.
' (2) In order for facilities to be certified under section 10
of this 2001 Act, the facilities must meet or exceed the minimum
performance standards in at least one of the areas set forth in
subsection (1) of this section. + }
' { + SECTION 12. + } { + The Economic and Community
Development Department may issue certifications under section 10
of this 2001 Act on or after January 1, 2002, and before December
31, 2005. + }
' { + SECTION 13. + } { + The Oregon Economic and Community
Development Commission shall report to the Seventy-third
Legislative Assembly on the effectiveness of the tax credit
provided under section 15 of this 2001 Act in improving advanced
telecommunications capability in underserved areas of this state
and in achieving the other purposes for which the credit was
established. The commission shall report to the Seventy-third
Legislative Assembly on or before March 15, 2005. + }
' { + SECTION 14. + } { + Section 15 of this 2001 Act is
added to and made a part of ORS chapter 315. + }
' { + SECTION 15. + } { + (1) There shall be allowed a
credit against the taxes otherwise due under ORS chapter 316 (or,
if the taxpayer is a corporation, under ORS chapters 317 and 318)
for advanced telecommunications facilities, as defined in section
10 of this 2001 Act, that have been certified by the Economic and
Community Development Department.
' (2) The amount of the credit shall equal 20 percent of the
certified cost of the facilities that was actually paid or
incurred by the taxpayer, except that:
' (a) The amount of the credit may not include facility costs
that were paid using moneys withdrawn from the taxpayer's
Telecommunications Infrastructure Account established pursuant to
ORS 759.405; and
' (b) Revenues forgone by the taxpayer upon the taxpayer's
waiver of installation charges for advanced telecommunications
facilities to schools, rural health clinics or libraries may be
added to the amount of the credit.
' (3) The credit may be claimed by the taxpayer for the tax
year in which the advanced telecommunications facilities are
placed in service.
' (4) The credit allowed under this section may not exceed the
tax liability of the taxpayer and may not be carried forward to a
succeeding tax year.
' (5) In the case of a credit allowed under this section:
' (a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
' (b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
' (c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
' (6) The credit shall be claimed on a form prescribed by the
Department of Revenue and containing any information as may be
required by the department. The taxpayer shall attach a copy of
the certification to the return for the tax year for which the
credit is claimed. + }
' { + SECTION 16. + } { + Section 17 of this 2001 Act is
added to and made a part of ORS chapter 759. + }
' { + SECTION 17. + } { + The Public Utility Commission may
not require a reduction in a rate or a schedule of rates as a
result of a tax credit under section 15 of this 2001 Act being
allowed to a telecommunications utility. + } ' .
In line 14, delete '9' and insert '18'.
In line 43, before the period insert 'and section 15 of this
2001 Act (advanced telecommunications facilities)'.
In line 44, delete '10' and insert '19'.
On page 6, line 6, after '315.604' insert 'and section 15 of
this 2001 Act'.
Delete lines 11 and 12 and insert:
' { + SECTION 20. + } { + Sections 8 and 15 of this 2001 Act
and the amendments to ORS 314.752 and 318.031 by sections 18 and
19 of this 2001 Act apply to tax years beginning on or after
January 1, 2002. + } ' .
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