Chapter 460 Oregon Laws 1999

Session Law

AN ACT

HB 2247

Relating to enterprise zones; creating new provisions; and amending ORS 285B.650, 285B.653, 285B.665 and 285B.677.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 285B.650 is amended to read:

285B.650. As used in ORS 285B.650 to 285B.728, unless the context requires otherwise:

(1) "Business firm" means a person operating or conducting one or more trades or businesses but does not include any governmental agency, municipal corporation or nonprofit corporation.

(2) "Eligible business firm" means a firm engaged in an activity described under ORS 285B.707 which may file an application for precertification under ORS 285B.719.

(3) "Employee" means a person who works more than 32 hours per week, but does not include persons with temporary or seasonal jobs or persons hired solely to construct qualified property.

(4) "Enterprise zone" means one of the 30 areas designated or terminated and redesignated by order of the Governor under ORS 284.160 (1987 Replacement Part) before October 3, 1989, one of the [seven] 17 areas designated by the Director of the Economic Development Department under ORS 285B.653, areas designated under ORS 285B.677 and areas designated under ORS 285B.689.

(5) "First-source hiring agreement" means an agreement between a precertified business firm and a publicly funded job training provider whereby the job training provider refers qualified candidates to the firm for new jobs and job openings in the firm.

(6) "Modification" means modernization, renovation or remodeling of an existing building or structure.

(7) "Nonurban enterprise zone" means an enterprise zone located outside a regional or metropolitan urban growth boundary.

(8) "Precertified business firm" means an eligible business firm whose application for precertification has been approved under ORS 285B.719 and which may apply for a property tax exemption under ORS 285B.722.

(9) "Publicly funded job training provider" includes but is not limited to, community colleges, Job Training Partnership Act service providers, and other similar programs.

(10) "Qualified business firm" means a business firm described in ORS 285B.704 whose application for a property tax exemption has been approved under ORS 285B.722.

(11) "Qualified property" means property described under ORS 285B.713.

(12) "Sponsor" means the city or county that applied for and received approval of an enterprise zone under ORS 284.150 and 284.160 (1987 Replacement Part), under ORS 285B.656 and 285B.659, under ORS 285B.677 or 285B.686 or under ORS 285B.689.

(13) "Urban enterprise zone" means an enterprise zone in a metropolitan statistical area, as defined by the most recent federal decennial census, located inside a regional or metropolitan urban growth boundary.

SECTION 2. ORS 285B.653 is amended to read:

285B.653. (1) The Director of the Economic Development Department may approve the designation of up to [seven] 17 areas as nonurban enterprise zones as provided in ORS 285B.656 and 285B.659.

(2) Areas designated as enterprise zones under this section shall be in addition to the 30 areas designated or redesignated as enterprise zones by order of the Governor under ORS 284.160 (1987 Replacement Part) before October 3, 1989, and areas designated under ORS 285B.677 and 285B.689 and shall terminate in accordance with ORS 285B.686 (3).

SECTION 3. Nothing in the amendments to ORS 285B.653 by section 2 of this 1999 Act affects the repealing or operative date provisions of section 31, chapter 835, Oregon Laws 1997.

SECTION 4. (1) As used in this section, "eastern Oregon" has the meaning given that term in ORS 321.405 but also includes Hood River County.

(2) Of the 10 additional enterprise zones provided for in the amendments to ORS 285B.653 by section 2 of this 1999 Act and initially designated after the effective date of this 1999 Act, at least four of the enterprise zones must be located in eastern Oregon.

(3) The designation of any enterprise zone provided for in the amendments to ORS 285B.653 by section 2 of this 1999 Act is not effective unless made on or before January 1, 2004.

(4) When requesting a change to the boundary of an enterprise zone under ORS 285B.680, the zone sponsor and any other city or county that seeks to become a sponsor as part of the boundary change proceeding may request a waiver of the distance limit imposed under ORS 285B.683 (1)(c). The Director of the Economic Development Department shall grant the waiver and order the change to the enterprise zone boundary, if:

(a) The proposed boundary change satisfies all other requirements for a boundary change; and

(b) The director makes a determination, consistent with rules adopted by the Economic Development Department, that designation of a separate enterprise zone is not a practical option under the particular circumstances, that the overall distances involved can be effectively administered and that the waiver will further the goals and purposes of applicable state policies.

SECTION 5. Section 4 of this 1999 Act is repealed on January 1, 2008.

SECTION 6. ORS 285B.665 is amended to read:

285B.665. The Legislative Assembly finds and declares that the health, safety and welfare of the people of this state are dependent upon the continued encouragement, development, growth and expansion of employment, business, industry and commerce [within] throughout all regions of the state, but especially in those communities at the center of or outside major metropolitan areas for which geography may act as an economic hindrance. [and] The Legislative Assembly further declares that there are areas in the state that need the particular attention of government to help attract private business investment into these areas and to help resident businesses to reinvest and grow and that many local governments wish to have tax incentives and other assistance available to stimulate sound business investments that support and improve the quality of life. Therefore, it is declared to be the purpose of ORS 285B.650 to 285B.728 to stimulate [employment, business and industrial growth in those areas of this state by providing assistance to businesses and industries and] and protect economic success in such areas of the state by providing tax incentives [in those areas] for employment, business, industry and commerce and by providing adequate levels of complementary assistance to community strategies for such interrelated goals as environmental protection, growth management and efficient infrastructure.

SECTION 7. ORS 285B.677 is amended to read:

285B.677. (1) As used in this section, "federal enterprise zone" means any discrete area wholly or partially within this state that is designated as an empowerment zone, an enterprise community, a renewal community or some similar designation for purposes of improving the economic and community development of the area.

[(1)] (2) The Economic Development Department shall be the lead agency for state participation in a federal enterprise zone program. The Director of the Economic Development Department may take action necessary for such participation to the extent allowed by state law.

[(2)] (3) Any area designated as a federal enterprise zone by an agency of the federal government may be designated as a state enterprise zone by the director at the request of a city or county within whose jurisdiction some or all of the federal enterprise zone is located, [. The request shall be in such form and shall include such information as is required by the department] without regard to any limitation contained in ORS 285B.656 (3) or 285B.662.

[(3)] (4) The boundary of an existing state enterprise zone may be amended by the director at the request of the sponsor[,] to include the entire area of a federal enterprise zone without regard to any limitation contained in ORS 285B.680 (2). A change in the boundary of an existing state enterprise zone under this subsection shall not change the termination date of the enterprise zone under ORS 285B.686 (3).

(5) A request by a city or county under subsection (3) or (4) of this section shall be in such form and include such information as required by the department, but the request must:

(a) Include a resolution adopted by the governing body of the city or county; and

(b) Provide that all areas within both the federal enterprise zone and the city or county are included in a state enterprise zone.

(6) The termination under federal law of a federal enterprise zone shall not affect the existence or dimensions of a state enterprise zone, except when, as determined by the director, the termination is for nonperformance or for violations of federal guidelines.

SECTION 8. Nothing in the amendments to ORS 285B.650, 285B.665 and 285B.677 by sections 1, 6 and 7 of this 1999 Act affects the repealing or operative date provisions of section 22, chapter 1015, Oregon Laws 1989.

Approved by the Governor July 1, 1999

Filed in the office of Secretary of State July 2, 1999

Effective date October 23, 1999

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