75th OREGON LEGISLATIVE ASSEMBLY--2009 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 775
House Bill 2151
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Economic and Community Development Department)
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 as
introduced.
Permits Oregon Economic and Community Development Commission to
adjust allocations to programs that receive funding from Oregon
Community Development Fund.
Makes technical changes.
A BILL FOR AN ACT
Relating to economic development; amending ORS 284.706, 285A.227,
285B.083, 285B.286, 285B.290 and 285C.140.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 284.706 is amended to read:
284.706. (1) There is created the Oregon Innovation Council
consisting of the following voting members:
(a) The Governor or the Governor's designated representative,
who shall be chairperson of the council.
(b) Five members appointed by the Governor who are engaged in
the operations of Oregon traded sector industries.
(c) One member appointed by the Governor who is a
representative of an Oregon-based, generally accredited,
not-for-profit private institution of higher education.
(d) A member of the Oregon Growth Account Board, appointed by
the board, who has experience in the field of venture capital.
(e) A member of the Engineering and Technology Industry
Council, appointed by the Engineering and Technology Industry
Council.
(f) The Director of the Economic and Community Development
Department.
(g) The Chancellor of the Oregon University System.
(h) The Commissioner for Community College Services.
(i) The State Treasurer.
(2)(a) The Speaker of the House of Representatives shall
appoint two members to the council who are members of the House
of Representatives.
(b) The President of the Senate shall appoint two members to
the council who are members of the Senate.
(c) Members of the Legislative Assembly appointed to the
council are nonvoting members and may act in an advisory capacity
only.
(3) The following persons, or their representatives, shall
serve as ex officio, nonvoting members of the council:
(a) The { - chairperson - } { + presiding officer + } of
the Oregon Economic and Community Development Commission.
(b) The president of the State Board of Higher Education.
(c) The chairperson of the State Board of Education.
(d) An executive officer of an association representing
Oregon-based, generally accredited, not-for-profit private
institutions of higher education, appointed by the Governor.
(4) The term of office of each appointed voting member of the
council is three years, but an appointed member serves at the
pleasure of the appointing authority. Before the expiration of
the term of an appointed voting member, the appointing authority
shall appoint a successor whose term begins on July 1 next
following. An appointed member is eligible for reappointment. If
there is a vacancy for any cause, the appointing authority shall
make an appointment to become immediately effective for the
remainder of the unexpired term.
(5) A majority of the voting members of the council constitutes
a quorum for the transaction of business.
(6) Official action by the council requires the approval of a
majority of the voting members of the council.
(7) The council shall meet at least twice per fiscal year at a
place, day and time determined by the chairperson. The council
may also meet at other times and places specified by a call of
the chairperson or by written request of a majority of the voting
members of the council.
(8) The council may adopt rules necessary for the operation of
the council.
(9) The council may establish committees and delegate to the
committees duties as the council considers desirable.
(10) The Economic and Community Development Department shall
provide staff support to the council.
(11) Members of the council who are not members of the
Legislative Assembly are entitled to compensation and expenses
incurred by them in the performance of their official duties in
the manner and amounts provided for in ORS 292.495. Claims for
compensation and expenses of members of the council who are
public officers shall be paid out of funds appropriated to the
public agency that employs the member. Claims for compensation
and expenses of members of the council who are not public
officers shall be paid out of funds appropriated to the Economic
and Community Development Department for that purpose.
(12) All agencies of state government, as defined in ORS
174.111, are directed to assist the council in the performance of
its duties and, to the extent permitted by laws relating to
confidentiality, to furnish such information and advice as the
members of the council consider necessary to perform their
duties.
SECTION 2. ORS 285A.227 is amended to read:
285A.227. (1) There is created within the State Treasury,
separate and distinct from the General Fund, the Oregon Community
Development Fund. The fund is created to provide a flexible
funding source for financing those programs and projects that are
determined by the Oregon Economic and Community Development
Commission under the policies, criteria and standards set forth
in ORS 285A.020, 285A.045 and 285A.055 to further economic and
community development. The Economic and Community Development
Department may finance programs and projects determined by the
commission to further economic and community development by
making grants or loans using moneys in the fund. Notwithstanding
ORS 279A.140, the department may enter into contracts as
necessary or appropriate to implement programs and projects
determined by the commission to further economic and community
development using moneys in the fund. The Oregon Community
Development Fund shall consist of all moneys credited to the
fund, including moneys from the Administrative Services Economic
Development Fund, federal funds collected or received, and fees,
moneys or other revenues, including Miscellaneous Receipts,
collected or received by the Economic and Community Development
Department, and all interest earnings that accrue to the fund.
The moneys in the Oregon Community Development Fund are
continuously appropriated to the Economic and Community
Development Department to promote economic and community
development.
(2) The Oregon Economic and Community Development Commission,
by rule, shall adopt standards, objectives and criteria for use
of the moneys in the Oregon Community Development Fund.
{ + Subject to the adopted standards, objectives and criteria
for the use of moneys, the commission may adjust allocations to
programs and projects that receive funding from the Oregon
Community Development Fund. + }
SECTION 3. ORS 285B.083 is amended to read:
285B.083. Except as provided in ORS 285B.086, if any business
development project is refinanced or financial assistance is
obtained from other sources after the execution of the loan from
the state, those may first be used to repay the state, unless
provided otherwise { - by the committee - } , if the
refinancing or financial assistance applies only to the business
development project authorized and does not include any
subsequent addition, expansion, improvement or further
development.
SECTION 4. ORS 285B.286 is amended to read:
285B.286. For traded sector industries, the Economic and
Community Development Department shall undertake industry
development activities that may include, but are not limited to,
all of the following:
(1) Focus groups and other meetings and related studies to
identify traded sector industry members and issues of common
concern within an industry.
(2) State technical and financial support for formation of
industry associations, publication of association directories and
related efforts to create or expand the activities of industry
associations.
(3) Helping establish research consortia.
(4) Joint training and education programs and curricula related
to the specific needs of traded sector industries.
(5) Cooperative market development activities.
(6) Analysis of the need, feasibility and cost for establishing
product certification and testing facilities and services.
(7) State technical and financial support to facilitate
certification of sites as ready for development for traded sector
industry. The support may include performing site assessments to
determine the costs associated with development of individual
sites.
{ + (8) Assistance to traded sector and cluster affiliated
Oregon businesses and consortia in making investments that
advance industry related development activities or other
identified competitiveness objectives of existing Oregon cluster
businesses. + }
SECTION 5. ORS 285B.290 is amended to read:
285B.290. The Industry Outreach Fund is established in the
State Treasury, separate and distinct from the General Fund. The
Industry Outreach Fund shall consist of all moneys credited to
the fund, including moneys from the Administrative Services
Economic Development Fund. Interest earned by the Industry
Outreach Fund shall be credited to the fund. Moneys in the fund
are continuously appropriated to the Economic and Community
Development Department
{ - for all of the following purposes: - }
{ - (1) - } to provide funds for activities outlined in ORS
{ - 285B.266 - } { + 285B.286 + }.
{ - (2) To assist traded sector and cluster affiliated Oregon
businesses and consortia in making investments that advance
industry related development activities or other identified
competitiveness objectives of existing Oregon cluster
businesses. - }
SECTION 6. ORS 285C.140 is amended to read:
285C.140. (1)(a) Any eligible business firm seeking to have
property exempt from property taxation under ORS 285C.175 shall,
before the commencement of direct site preparation activities or
the construction, addition, modification or installation of
qualified property in an enterprise zone, and before the hiring
of eligible employees, apply for authorization under this
section.
(b) The application shall be made on a form prescribed by the
Department of Revenue and the Economic and Community Development
Department.
(c) The application shall be filed with the sponsor of the
zone. A sponsor may require that the application filed with the
sponsor be accompanied by a filing fee. If required, the filing
fee may not exceed the greater of $200 or one-tenth of one
percent of the value of the investment in qualified property that
is proposed in the application for authorization. The filing fee
may be required for the filing of applications only after the
sponsor adopts a policy, consistent with Economic and Community
Development Department rules, authorizing the imposition of the
filing fee.
(2) The application shall contain the following information:
(a) A description of the nature of the firm's current and
proposed business operations inside the boundary of the
enterprise zone;
(b) A description and estimated value of the qualified property
to be constructed, added, modified or installed inside the
boundary of the enterprise zone;
(c) The number of employees of the firm that are employed
within the enterprise zone, averaged over the previous 12 months,
and an estimate of the number of employees that will be hired by
the firm;
(d) A commitment to meet all requirements of ORS 285C.200 and
285C.215, and to verify compliance with these requirements;
(e) A commitment to satisfy all additional conditions for
authorization that are imposed by the enterprise zone sponsor
under ORS 285C.150, 285C.155 or 285C.205 or pursuant to an
agreement entered into under ORS 285C.160, and to verify
compliance with these additional conditions;
(f) A commitment to renew the application, consistent with ORS
285C.165, every two years while the zone exists if the firm has
not filed a claim under ORS 285C.220 that is based on the
application; and
(g) Any other information considered necessary by the
Department of Revenue and the Economic and Community Development
Department.
(3) After an application is submitted to a sponsor, the
business firm may revise or amend the application. An amendment
or revision may not be made on or after January 1 of the first
assessment year for which the qualified property associated with
the application is exempt under ORS 285C.175.
(4) If an application for authorization appears to be complete
and the proposed investment appears to be eligible for
authorization, the sponsor and the business firm shall conduct a
preauthorization consultation. The county assessor shall be
timely notified and have the option to participate in the
consultation. The consultation shall:
(a) Identify issues with the potential to affect compliance
with relevant exemption requirements, including but not limited
to enterprise zone boundary amendments;
(b) Arrange for methods and procedures to establish and verify
compliance with applicable requirements; and
(c) Identify the person who is obligated to notify the county
assessor if requirements are not being satisfied.
(5) Upon completion of the consultation, the sponsor shall
prepare a written summary of the consultation made under
subsection (4) of this section, attach the summary to the
application and forward the application to the county assessor of
each county in which the zone is located for review by the
assessor.
(6) Following the preauthorization { - conference - }
{ + consultation + } under subsection (4) of this section, the
sponsor and the county assessor shall authorize the business firm
by approving the application, if the sponsor and county assessor
determine that:
(a) The current or proposed operations of the business firm in
the enterprise zone result in the firm being eligible under ORS
285C.135; and
(b) The firm has made the commitments and provided the other
information required under subsection (2) of this section.
(7) If the business firm seeking authorization is an eligible
business firm described in ORS 285C.135 (5)(b), the sponsor must,
as a condition to approving the application, make a formal
finding that the business firm is an eligible business firm under
ORS 285C.135 and that the size of the proposed investment, the
employment at the facility of the firm or the nature of the
activities undertaken by the firm within the enterprise zone will
significantly enhance the local economy, promote the purposes for
which the zone was created and increase employment within the
zone.
(8) The approval of both the sponsor and the county assessor
under this section shall be prima facie evidence that the
qualified property of the business firm will receive the property
tax exemption under ORS 285C.175. In approving the application,
the sponsor and county assessor shall provide proof of approval
as directed by the Economic and Community Development Department.
(9) If the sponsor or county assessor fails or refuses to
authorize the business firm, the business firm may appeal to the
Oregon Tax Court under ORS 305.404 to 305.560. The business firm
shall provide copies of the firm's appeal to the sponsor, county
assessor, the Department of Revenue and the Economic and
Community Development Department.
(10) Authorization under this section does not ensure that
property constructed, added, modified or installed by the
authorized business firm will receive property tax exemption
under ORS 285C.175. The sponsor and the county assessor are not
liable in any way if the Department of Revenue or the county
assessor later determines that an authorized business firm does
not satisfy the requirements for an exemption on qualified
property.
(11) Notwithstanding subsection (1) of this section, if an
eligible business firm has begun or completed the construction,
addition, modification or installation of property that meets the
qualifications of ORS 285C.180, and the property has not yet been
subject to property tax, then, for purposes of ORS 285C.050 to
285C.250, the firm shall be authorized under this section if the
firm files an application that is allowed under subsection (12)
of this section and is otherwise authorized under this section.
(12) Late submission of an application under this section is
allowed if:
(a) A rule permits late submissions of applications under this
section; or
(b) The Department of Revenue waives filing deadline
requirements under this section. The department shall issue a
letter to the eligible business firm and zone sponsor setting
forth the waiver under this paragraph.
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