Bill Text: OR HB2197 | 2011 | Regular Session | Introduced
Bill Title: Relating to incentives for business hiring; appropriating money; prescribing an effective date.
Spectrum: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2197 Detail]
Download: Oregon-2011-HB2197-Introduced.html
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 1160
House Bill 2197
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Sustainability and Economic Development)
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.
Authorizes Oregon Business Development Department to administer
Oregon Business Retention and Expansion Program to grant
incremental Oregon Business Retention and Expansion Program tax
revenues to certified employers. Specifies provisions of grants.
Establishes Oregon Business Retention and Expansion Program
Grant Fund. Continuously appropriates moneys in fund to Oregon
Business Development Department.
Appropriates moneys from General Fund to department for
purposes of administering program.
Specifies rate of withholding on taxable income of person
employed by certified employer.
Applies to tax years beginning on or after January 1, 2012.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to incentives for business hiring; appropriating money;
and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 8 of this 2011 Act:
(1) 'Certified employer' means an eligible employer that has
been certified under section 3 of this 2011 Act.
(2) 'Compensation' has the meaning given that term in ORS
314.610.
(3) '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 in this state;
(b) Averages $60,000 annually in per-employee compensation,
including the cost of benefits;
(c) Plans to hire at least 50 new full-time employees in this
state within six months;
(d) Operates in an industry in the traded sector, as that term
is defined in ORS 285A.010;
(e) Is not a retailer, as that term is defined in ORS 72.8010;
and
(f) Does not engage in professional service, as that term is
defined in ORS 58.015, as its primary business.
(4) 'Incremental Oregon Business Retention and Expansion
Program tax revenues' means:
(a) The Oregon personal income tax revenues that are generated
from the Oregon personal income tax liabilities shown on the
income tax returns filed by persons hired by eligible employers
in the two consecutive tax years beginning with the tax year in
which the employer receives certification under section 3 of this
2011 Act, including revenues that are generated from the tax
liabilities of spouses of persons employed by eligible employers
if the tax liabilities are reported on a joint return; or
(b) If Oregon personal income tax rates are reduced after the
dates of the grant agreements described in section 6 of this 2011
Act and the grant agreements provide that payments will be based
on rates in effect when the grant agreements are executed, the
Oregon personal income tax revenues generated from the tax
liabilities, as described in paragraph (a) of this subsection,
that would have been due if the liabilities were calculated using
personal income tax rates in effect on the date of execution of
the grant agreements.
(5) 'Tax liabilities' means the tax determined under ORS
chapter 316 for the tax year, less the credits allowed for
purposes of ORS chapter 316 for the tax year. + }
SECTION 2. { + The Oregon Business Development Department may
adopt administrative 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
8 of this 2011 Act; and
(3) Carry out the purposes of sections 1 to 8 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 standards:
(a) Requiring that employers maintain certain levels of payroll
or per-employee compensation, including benefits, for at least
five years;
(b) Requiring that employers consult with vendors in this state
before entering into contracts;
(c) Ensuring that eligible employers do not lay 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 in the course of business by the
certified employer under section 6 of this 2011 Act; and
(e) For verifying that an employer is an eligible employer.
(2) Prior to issuing a certification under this section, the
Oregon Business Development Department shall enter into a grant
agreement with the eligible employer as described in section 6 of
this 2011 Act. The agreement must contain a statement by the
eligible employer that the eligible employer would not have hired
50 or more new employees but for the availability of the program
established under section 6 of this 2011 Act. The agreement must
contain detailed performance measures with which the eligible
employer must comply.
(3) The department must approve or disapprove an application
under this section within 120 days after the date the application
is filed. + }
SECTION 4. { + (1) A person 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 shall be accompanied by the fee established
under subsection (4) of this section. The fee may be refunded if
the application for certification is disapproved.
(4) By rule and after hearing, the department may adopt a
schedule of reasonable fees that the department may require of
applicants for certification under section 3 of this 2011
Act. + }
SECTION 5. { + (1) Pursuant to the procedures for a contested
case under ORS chapter 183, the Oregon Business Development
Department may order the revocation of 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) As soon as the order of revocation under this section has
become final, the Oregon Business Development Department shall
notify the Department of Revenue of the order.
(3) If the certificate is ordered revoked pursuant to
subsection (1) of this section, the Oregon Business Development
Department shall proceed to recoup any grant 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
grants to certified employers to allow for expanded operations
and increased hiring.
(2) The Oregon Business Development Department shall enter into
one or more grant agreements with certified employers. The grant
agreements must:
(a) Provide that the grant moneys may be used only to pay for
the costs of financing, developing, furnishing and operating a
facility to be used by the certified employer in the course of
business.
(b) Require that the grantees return to the Oregon Business
Development Department, for deposit in the General Fund, amounts
transferred to the grantees from the Oregon Business Retention
and Expansion Program Grant Fund that exceed the actual
incremental Oregon Business Retention and Expansion Program tax
revenues for the certified employer, as described in subsection
(3) of this section.
(3) The total grant amount distributed to a certified employer
under this section may not exceed the total of the estimated
incremental Oregon Business Retention and Expansion Program tax
revenues for the certified employer:
(a) For the tax year in which the employer receives
certification under section 3 of this 2011 Act; and
(b) For the tax year following the tax year in which the
employer receives certification under section 3 of this 2011 Act.
(4) Moneys granted 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 Department of Revenue
shall:
(1) Specify the methodology for estimating incremental Oregon
Business Retention and Expansion Program tax revenues;
(2) Estimate incremental Oregon Business Retention and
Expansion Program tax revenues; and
(3) Notify the Director of the Oregon Business Development
Department of the estimated incremental Oregon Business Retention
and Expansion Program tax revenues. + }
SECTION 8. { + The Oregon Business Retention and Expansion
Program Grant Fund is established in the State Treasury, separate
and distinct from the General Fund. The Oregon Business Retention
and Expansion Program Grant Fund consists of amounts deposited in
the fund as required by section 15 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 grants provided by the
grant agreements entered into under section 6 of this 2011 Act
and paying the costs and expenses of the Oregon Business
Development Department and the Department of Revenue in
connection with the implementation and administration of sections
1 to 8 and 11 to 15 of this 2011 Act. + }
SECTION 9. { + There is appropriated to the + } { + Oregon
Business Development Department, for the biennium beginning July
1, 2011, out of the General Fund, the amount of $___ for the
purpose of carrying out the provisions of section 6 of this 2011
Act. + }
SECTION 10. { + Sections 11 to 15 of this 2011 Act are added
to and made a part of ORS 316.162 to 316.221. + }
SECTION 11. { + As used in sections 11 to 15 of this 2011 Act,
' certified employer' and 'compensation' have the meanings given
those terms in section 1 of this 2011 Act. + }
SECTION 12. { + (1) A certified employer, in lieu of the
withholding requirements under ORS 316.167, shall withhold eight
percent of the wages of employees hired by the certified employer
in each of the two consecutive tax years beginning with the tax
year in which the employer receives certification under section 3
of this 2011 Act, as provided in this section and by rule of the
Department of Revenue.
(2) The certified employer withholding amounts under this
section shall pay the amounts withheld to the Department of
Revenue at the time and in the manner prescribed by the
department by rule.
(3) This section applies to tax years beginning on or after
January 1, 2012, and before January 1, 2022. + }
SECTION 13. { + In addition to other reports and returns
required by law or rule, a certified employer required to
withhold compensation under section 12 of this 2011 Act shall
file an annual report with the Department of Revenue stating:
(1) The total amount of compensation paid during the year to
employees hired in that tax year by the certified employer;
(2) The taxpayer identification number of each employee of the
certified employer;
(3) The compensation paid to each employee of the certified
employer; and
(4) The amount withheld under section 12 of this 2011 Act for
each employee hired by the certified employer. + }
SECTION 14. { + (1) The Department of Revenue may adopt
administrative rules that the department determines are necessary
to:
(a) Implement the duties of the department under sections 11 to
15 of this 2011 Act; and
(b) Carry out the purposes of sections 11 to 15 of this 2011
Act.
(2) The rules may include rules construing ORS 316.162 to
316.221 in a manner that is consistent and compatible with the
withholding provisions of sections 11 to 15 of this 2011 Act. + }
SECTION 15. { + (1) For tax years beginning on or after
January 1, 2012, and before January 1, 2013, the revenues
received by the Department of Revenue under section 12 of this
2011 Act shall be transferred to the Oregon Business Retention
and Expansion Program Grant Fund established in section 8 of this
2011 Act.
(2) For tax years beginning on or after January 1, 2013, and
before January 1, 2017, the revenues received by the Department
of Revenue under section 12 of this 2011 Act shall be distributed
as follows:
(a) Fifty percent shall be transferred to the Oregon Business
Retention and Expansion Program Grant Fund established in section
8 of this 2011 Act.
(b) Fifty percent shall be transferred to the General Fund.
(3) For tax years beginning on or after January 1, 2017, and
before January 1, 2022, the revenues received by the Department
of Revenue under section 12 of this 2011 Act shall be distributed
as follows:
(a) Twenty percent shall be transferred to the Oregon Business
Retention and Expansion Program Grant Fund established in section
8 of this 2011 Act.
(b) Eighty percent shall be transferred to the General
Fund. + }
SECTION 16. { + This 2011 Act applies to tax years beginning
on or after January 1, 2012. + }
SECTION 17. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
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