72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
SA to B-Eng. HB 2166 (A to RC)
 
LC 558/HB 2166-B6
 
                      SENATE AMENDMENTS TO
                   B-ENGROSSED HOUSE BILL 2166
           (INCLUDING AMENDMENTS TO RESOLVE CONFLICTS)
 
                     By COMMITTEE ON REVENUE
 
                             June 24
 
  On page 7 of the printed B-engrossed bill, delete lines 31
through 45 and insert:
  '  { +  SECTION 6a. + } ORS 315.167 is amended to read:
  ' 315.167. (1) Prior to beginning a farmworker housing project
for which credit under ORS 315.164 will be claimed, an owner
shall apply to the Housing and Community Services Department for
a letter of credit approval.
  ' (2) The application shall be on such form as is prescribed by
the Housing and Community Services Department and shall provide:
  ' (a) The name, address and taxpayer identification number of
the taxpayer;
  ' (b) The location of the proposed farmworker housing;
  ' (c) A description of the project identifying the type of
housing that is the subject of the project;
  ' (d) An estimate of the eligible costs of the project; and
  ' (e) Any other information as the Housing and Community
Services Department may require.
  ' (3) The Housing and Community Services Department may review
applications using any reasonable system of prioritizing review
established by department rule.
  ' (4) Applications filed in compliance with this section shall
be approved by the Housing and Community Services Department to
the extent that the total of estimated eligible costs for all
approved projects for the calendar year is equal to or less than
  { - $7.5 - }  { +  $7.25 + } million. No application shall be
approved if the addition of the estimated eligible costs of the
project to the estimated eligible costs for all approved projects
for the calendar year would exceed   { - $7.5 - }  { +  $7.25 + }
million.
  ' (5) Upon approval of an application, the Housing and
Community Services Department shall send a letter of credit
approval to the taxpayer. The letter of credit approval shall
state the approved amount of estimated eligible costs for the
project.
  ' (6) At the conclusion of each calendar year, the Housing and
Community Services Department shall send a list of the names,
addresses and taxpayer identification numbers of taxpayers to
whom a letter of credit approval has been issued under this
section during the calendar year, along with approved amounts of
estimated eligible costs for each project, to the Department of
Revenue.
  ' (7) Notwithstanding that a letter of credit approval has been
issued to a taxpayer under this section, the Department of
Revenue may disallow, in whole or in part, a claim for credit
under ORS 315.164 upon the Department of Revenue's determination
that under the provisions of ORS 315.164 the taxpayer is not
entitled to the credit or is only entitled to a portion of the
amount claimed.
 
  '  { +  SECTION 6b. + }  { + The amendments to ORS 315.167 by
section 6a of this 2003 Act apply to tax years beginning on or
after January 1, 2003. + }
  '  { +  SECTION 6c. + }  { + (1) Notwithstanding any other
provision of law, a letter of credit approval issued by the
Housing and Community Services Department before the effective
date of this 2003 Act that includes estimated eligible costs
that, when added to other estimated eligible costs for all
approved projects for the 2003 calendar year, exceeds $7.25
million is revoked.
  ' (2) The department shall revoke letters of credit approval
under this section based on the chronological order in which the
letters of credit approval were issued. + }
  '  { +  SECTION 7. + } ORS 315.167, as amended by section 6a of
this 2003 Act, is amended to read:
  ' 315.167.   { - (1) Prior to beginning a farmworker housing
project for which credit under ORS 315.164 will be claimed, an
owner shall apply to the Housing and Community Services
Department for a letter of credit approval. - }
  '  { +  (1)(a) Prior to six months after beginning a farmworker
housing project:
  ' (A) For which credit under ORS 315.164 will be claimed, an
owner or operator of farmworker housing shall apply to the
Housing and Community Services Department for a letter of credit
approval.
  ' (B) For which credit under ORS 315.169 will be claimed, a
contributor shall apply to the Housing and Community Services
Department for a letter of credit approval.
  ' (b) If a portion of credit for a farmworker housing project
is to be claimed by the owner or operator of farmworker housing
under ORS 315.164 and the remainder is to be claimed by a
contributor under ORS 315.169, the application described in this
section shall be filed jointly by the owner or operator of
farmworker housing and the contributor. + }
  ' (2) The application shall be on such form as is prescribed by
the Housing and Community Services Department and shall provide:
  ' (a) The name, address and taxpayer identification number of
the taxpayer;
  ' (b) The location of the proposed farmworker housing;
  ' (c) A description of the project identifying the type of
housing that is the subject of the project;
  ' (d) An estimate of the eligible costs of the project; and
  ' (e) Any other information as the Housing and Community
Services Department may require.
  ' (3) The Housing and Community Services Department may review
applications using any reasonable system of prioritizing review
established by department rule.
  ' (4) Applications filed in compliance with this section shall
be approved by the Housing and Community Services Department to
the extent that the total of estimated eligible costs for all
approved projects for the calendar year is equal to or less than
$7.25 million. No application shall be approved if the addition
of the estimated eligible costs of the project to the estimated
eligible costs for all approved projects for the calendar year
would exceed $7.25 million.
  '  { - (5) Upon approval of an application, the Housing and
Community Services Department shall send a letter of credit
approval to the taxpayer. The letter of credit approval shall
state the approved amount of estimated eligible costs for the
project. - }
  '  { +  (5) Upon approval of an application, the Housing and
Community Services Department shall prepare a letter of credit
approval. The letter shall state the approved amount of estimated
eligible costs for the project and, if applicable, the portion of
credit to be claimed by an owner or operator of farmworker
 
housing under ORS 315.164 and the portion of credit to be claimed
by a contributor under ORS 315.169. The letter shall be sent:
  ' (a) To the owner or operator of farmworker housing, if any
credit is to be claimed under ORS 315.164; and
  ' (b) To the contributor, if any credit is to be claimed under
ORS 315.169. + }
  ' (6) At the conclusion of each calendar year, the Housing and
Community Services Department shall send a list of the names,
addresses and taxpayer identification numbers of taxpayers to
whom a letter of credit approval has been issued under this
section during the calendar year, along with approved amounts of
estimated eligible costs for each project, to the Department of
Revenue.
  ' (7) Notwithstanding that a letter of credit approval has been
issued to a taxpayer under this section, the Department of
Revenue may disallow, in whole or in part, a claim for credit
under ORS 315.164 upon the Department of Revenue's determination
that under the provisions of ORS 315.164 the taxpayer is not
entitled to the credit or is only entitled to a portion of the
amount claimed.
  '  { +  SECTION 8. + }  { + The amendments to ORS 315.167 by
section 7 of this 2003 Act apply to tax years beginning on or
after January 1, 2004. + } ' .
  On page 8, delete lines 1 through 34.
  On page 12, delete lines 19 through 45.
  On page 13, delete lines 1 through 19 and insert:
  '  { +  SECTION 16. + } ORS 317.147, as amended by section 44,
chapter 46, Oregon Laws 2003 (Enrolled House Bill 2424), is
amended to read:
  ' 317.147. (1) As used in this section:
  ' (a) 'Farmworker housing' has the meaning given that term
  { - under ORS 315.164 - }  { +  in section 1 of this 2003
Act + }.
  ' (b) 'Lending institution' means a bank, mortgage banking
company, trust company, savings bank, savings and loan
association, credit union, national banking association, federal
savings and loan association, federal credit union maintaining an
office in this state, nonprofit community development financial
institution or nonprofit public benefit corporation operating as
a lending institution.
  ' (2)(a) A lending institution shall be allowed a credit
against the taxes otherwise due under this chapter for the tax
year equal to 50 percent of the interest income earned during the
tax year on loans to finance only costs directly associated with
construction or rehabilitation of farmworker housing if, at the
time the loan is made, the borrower certifies, to the
satisfaction of the lender, that upon completion of the
construction or rehabilitation and first occupation by
farmworkers, the housing will comply with all occupational safety
or health laws, rules, regulations and standards applicable for
farmworker housing and that the housing will be occupied only by
farmworkers and their immediate families.
  ' (b) A copy of the certification described under paragraph (a)
of this subsection shall be submitted to the Department of
Revenue at the time that a credit under this section is first
claimed.
  ' (3) The credit allowed under this section applies only to
loans to construct or rehabilitate farmworker housing located
within this state.
  ' (4) This credit applies only to loans made on or after
January 1, 1990.
  ' (5) The credit allowed in any one year may not exceed the tax
liability of the taxpayer.
  ' (6) If the loan has a term of longer than 10 years, then the
credit shall be allowed only for the tax year of the taxpayer
 
during which the loan is made and the nine tax years immediately
following.
  ' (7) The credit allowed under this section does not apply to
loans in which the interest rate charged exceeds 13-1/2 percent
per annum.
  ' (8) The credit allowed under this section applies only to
interest income from the loan and does not apply to any other
loan fees or other charges collected by the lending institution
with respect to the loan.
  ' (9) The credit allowed under this section applies only to
interest income actually collected by the lending institution
during the tax year.
  ' (10)(a) Except as provided in paragraph (b) of this
subsection, if the lending institution sells the loan to another
lending institution, then the credit shall pass to the assignee
or transferee of the loan, subject to the same conditions and
limitations as set forth in this section.
  ' (b) A lending institution may assign, sell or otherwise
transfer the loan to another person and retain the right to claim
the credit granted under this section if the lending institution
also retains responsibility for servicing the loan.
  ' (c)(A) A lending institution that is not subject to taxation
under this chapter may sell or otherwise transfer the credit
allowed to the lending institution under this section to a
taxpayer that is subject to taxation under this chapter.
  ' (B) A transferee of a credit under this section shall be
allowed the credit for the tax years that would have been
allowable to the transferor had the transfer not occurred.
  ' (C) The Department of Revenue shall by rule establish
procedures for transferring a credit under this section.'.
                         ----------