76th OREGON LEGISLATIVE ASSEMBLY--2011 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 1526
B-Engrossed
Senate Bill 219
Ordered by the Senate June 10
Including Senate Amendments dated April 25 and June 10
Sponsored by Senator DEVLIN, Representative READ; Senators
EDWARDS, HASS, MONNES ANDERSON (Presession filed.)
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.
Requires Oregon Business Development Department to administer
Oregon Business Retention and Expansion Program to lend
incremental Oregon Business Retention and Expansion Program tax
revenues to certified employers. Specifies provisions of
forgivable loan program.
Establishes Oregon Business Retention and Expansion Program
Fund. Continuously appropriates moneys in fund to Oregon Business
Development Department.
{ + Authorizes biennial transfer of specified amount from
Strategic Reserve Fund to Oregon Business Retention and Expansion
Program Fund for purpose of making loans. + }
{ - Requires department to estimate amount of personal income
tax revenue generated by program. Specifies percentages of
estimated amount to be deposited in Oregon Business Retention and
Expansion Program Fund and General Fund for next 10 tax
years. - }
{ - Appropriates moneys from Oregon State Lottery Fund to
department for purposes of administering program. - }
Applies to tax years beginning on or after January 1, 2012, and
before January 1, 2022.
{ - Takes effect on 91st day following adjournment sine
die. - }
{ + Declares emergency, effective on passage. + }
A BILL FOR AN ACT
Relating to incentives for business hiring; appropriating money;
and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 9 of this 2011 Act:
(1) 'Certified employer' means + } { + an eligible employer
certified under section 3 of this 2011 Act.
(2) 'Compensation' has the meaning given that term in ORS
314.610.
(3) 'Eligible employee' means a new full-time employee whose
compensation averages at least 150 percent of the county or state
average in annual per employee compensation, whichever is less,
who is hired by a certified employer after the employer is
certified under section 3 of this 2011 Act.
(4) 'Eligible employer' means an employer that, in the month in
which the employer submits an application under section 4 of this
2011 Act:
(a) Has at least 150 employees;
(b) Plans to hire at least 50 new full-time employees in this
state whose compensation will average at least 150 percent of the
county or state average in annual per employee compensation,
whichever is less;
(c) Operates in an industry in the traded sector, as that term
is defined in ORS 285A.010; and
(d) Is not a retailer, as that term is defined in ORS 72.8010.
(5) 'Estimated incremental Oregon Business Retention and
Expansion Program tax revenues' means the Oregon personal income
tax revenues that are estimated pursuant to section 7 of this
2011 Act to be substantially equivalent to the amount of tax that
eligible employees of an eligible employer will be required to
pay under ORS chapter 316 as a result of compensation paid to the
eligible employees by the eligible employer in the two
consecutive tax years beginning with the tax year following the
tax year in which the employer receives certification under
section 3 of this 2011 Act. + }
SECTION 2. { + The Oregon Business Development Department may
adopt rules that the department determines are necessary to:
(1) Further define the terms defined in section 1 of this 2011
Act in a manner consistent with section 1 of this 2011 Act;
(2) Implement the duties of the department under sections 1 to
9 of this 2011 Act; and
(3) Carry out the purposes of sections 1 to 9 of this 2011
Act. + }
SECTION 3. { + (1) Subject to standards and procedures that
the Oregon Business Development Department shall establish by
rule, the department shall certify eligible employers to
participate in the Oregon Business Retention and Expansion
Program established in section 6 of this 2011 Act. The department
may establish certification standards regarding:
(a) Employers maintaining certain levels of payroll or
per-employee compensation including benefits;
(b) Employers consulting with vendors in this state before
entering into contracts;
(c) Eligible employers not laying off current employees in
order to achieve hiring goals;
(d) Specifying the types and amounts of employer expenses that
are the reasonable costs of financing, developing, furnishing and
operating a facility to be used by the certified employer in the
course of business under section 6 of this 2011 Act; and
(e) Verifying that an employer is an eligible employer.
(2) The department must approve or deny an application
submitted under section 4 of this 2011 Act within 120 days after
the date a complete application is filed. + }
SECTION 4. { + (1) An employer may apply to the Oregon
Business Development Department for certification under section 3
of this 2011 Act.
(2) The application shall be made in writing in a form
prescribed by the department.
(3) The application must include a verified statement by the
employer that the employer would not plan on hiring 50 or more
new full-time employees in this state but for the availability of
the loans provided by the Oregon Business Retention and Expansion
Program established under section 6 of this 2011 Act. + }
SECTION 5. { + (1) The Oregon Business Development Department
may revoke a certificate issued under section 3 of this 2011 Act
if the department finds that:
(a) The certificate was obtained by fraud or misrepresentation;
or
(b) The certified employer fails to meet the requirements of
section 3 of this 2011 Act.
(2) If the certificate is revoked pursuant to subsection (1) of
this section, the department shall proceed to recoup any loan
moneys disbursed to the employer pursuant to section 6 of this
2011 Act. + }
SECTION 6. { + (1) In consultation with the Department of
Revenue, the Oregon Business Development Department shall
establish and administer the Oregon Business Retention and
Expansion Program. The purpose of the program is to provide
forgivable loans to certified employers to allow for expanded
operations and increased hiring.
(2) The Oregon Business Development Department shall enter into
agreements with certified employers. Agreements must contain:
(a) Detailed performance measures, established by the
department by rule, with which certified employers must comply;
and
(b) The requirement that the certified employer pay to the
Oregon Business Development Department the amount of any loan
made under this section where the certified employer did not meet
established performance measures.
(3) The total loan amount distributed to a certified employer
under this section may not exceed the total amount of the
estimated incremental Oregon Business Retention and Expansion
Program tax revenues for the certified employer.
(4) Moneys loaned under this section must be distributed to the
certified employer no later than 120 days following certification
under section 3 of this 2011 Act. + }
SECTION 7. { + The Director of the Oregon Business Development
Department, in consultation with the Director of the Department
of Revenue, shall:
(1) Specify the methodology for estimating incremental Oregon
Business Retention and Expansion Program tax revenues; and
(2) Estimate incremental Oregon Business Retention and
Expansion Program tax revenues. + }
SECTION 8. { + The Oregon Business Retention and Expansion
Program Fund is established in the State Treasury, separate and
distinct from the General Fund. The Oregon Business Retention and
Expansion Program Fund consists of amounts deposited in the fund
as required by section 9 of this 2011 Act and other moneys
transferred to the fund. Amounts in the fund are continuously
appropriated to the Oregon Business Development Department for
the purposes of making the loans provided by the agreements
entered into under section 6 of this 2011 Act and paying the
costs and expenses of the Oregon Business Development Department
in connection with the implementation and administration of
sections 1 to 9 of this 2011 Act. + }
SECTION 9. { + (1) For the biennium beginning July 1, 2011,
the Oregon Business Development Department may transfer up to $4
million from moneys credited to the Strategic Reserve Fund
created under ORS 285B.266 to the Oregon Business Retention and
Expansion Program Fund to be used for the purpose of making the
loans provided by the agreements entered into under section 6 of
this 2011 Act and in accordance with the provisions of sections 1
to 9 of this 2011 Act.
(2) Unless approved by the Joint Committee on Ways and Means
or, if the Legislative Assembly is not in session, the Emergency
Board, administrative expenses of the Oregon Business Development
Department incurred in connection with the implementation and
administration of sections 1 to 9 of this 2011 Act may not be
paid from funds transferred pursuant to this section. Expenses
that are project-related are not considered to be administrative
expenses of the department. + }
SECTION 10. { + The Oregon Business Development Department
shall report to the committees of the Legislative Assembly with
authority over the subject area of economic development during
the 2013 regular session of the Legislative Assembly as specified
in ORS 171.010. + }
SECTION 11. { + Sections 1 to 9 of this 2011 Act apply to tax
years beginning on or after January 1, 2012, and before January
1, 2022. + }
SECTION 12. { + This 2011 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2011 Act takes effect on
its passage. + }
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