Bill Text: OR HB2364 | 2011 | Regular Session | Introduced
Bill Title: Relating to local procurement plans; prescribing an effective date.
Sponsorship: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2364 Detail]
Download: Oregon-2011-HB2364-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 2828
House Bill 2364
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Business and Labor)
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.
Requires authorized business firm to submit local procurement
plan as condition of enterprise zone exemption from property
taxation.
Requires business firm benefited by eligible project in
strategic investment zone to submit local procurement plan.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to local procurement plans; creating new provisions;
amending ORS 285C.050, 285C.600 and 285C.606; and prescribing
an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 285C.050, as amended by section 18, chapter 76,
Oregon Laws 2010, is amended to read:
285C.050. As used in ORS 285C.050 to 285C.250, unless the
context requires otherwise:
(1) 'Assessment date' and 'assessment year' have the meanings
given those terms in ORS 308.007.
(2) 'Authorized business firm' means an eligible business firm
that has been authorized under ORS 285C.140.
(3) 'Business firm' means a person operating or conducting one
or more trades or businesses, a people's utility district
organized under ORS chapter 261 or a joint operating agency
formed under ORS chapter 262, but does not include any other
governmental agency, municipal corporation or nonprofit
corporation.
(4) 'County average annual wage' means:
(a) The most recently available average annual covered payroll
for the county in which the enterprise zone is located, as
determined by the Employment Department; or
(b) If the enterprise zone is located in more than one county,
the highest county average annual wage as determined under
paragraph (a) of this subsection.
(5) 'Electronic commerce' means engaging in commercial or
retail transactions predominantly over the Internet or a computer
network, utilizing the Internet as a platform for transacting
business, or facilitating the use of the Internet by other
persons for business transactions, and may be further defined by
the Oregon Business Development Department by rule.
(6) 'Eligible business firm' means a firm engaged in an
activity described under ORS 285C.135 that may file an
application for authorization under ORS 285C.140.
(7) 'Employee' means a person who works more than 32 hours per
week, but does not include a person with a temporary or seasonal
job or a person hired solely to construct qualified property.
(8) '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 areas designated by the Director of the Oregon Business
Development Department under ORS 285C.080, a federal enterprise
zone area designated under ORS 285C.085, an area designated under
ORS 285C.250 or a reservation enterprise zone designated, or a
reservation partnership zone cosponsored, under ORS 285C.306.
(9) '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.
(10) 'First-source hiring agreement' means an agreement between
an authorized business firm and a publicly funded job training
provider whereby the provider refers qualified candidates to the
firm for new jobs and job openings in the firm.
(11) 'In service' means being used or occupied or fully ready
for use or occupancy for commercial purposes consistent with the
intended operations of the business firm as described in the
application for authorization.
{ + (12) 'Local procurement plan' means a plan submitted by
an authorized business firm that requires the authorized business
firm to set goals, targets and strategies to identify, and make
good faith efforts to purchase goods and services from, qualified
local vendors. + }
{ - (12) - } { + (13) + } 'Modification' means
modernization, renovation or remodeling of an existing building,
structure or real property machinery or equipment.
{ - (13) - } { + (14) + } 'New employees hired by the
firm':
(a) Includes only those employees of an authorized business
firm engaged for a majority of their time in eligible operations.
(b) Does not include individuals employed in a job or position
that:
(A) Is created and first filled after December 31 of the first
tax year in which qualified property of the firm is exempt under
ORS 285C.175;
(B) Existed prior to the submission of the relevant application
for authorization; or
(C) Is performed primarily at a location outside of the
enterprise zone.
{ - (14) - } { + (15) + } 'Publicly funded job training
provider ' includes but is not limited to a community college, a
service provider under the federal Workforce Investment Act Title
I-B (29 U.S.C. 2801 et seq.), or a similar program.
{ - (15) - } { + (16) + } 'Qualified business firm' means a
business firm described in ORS 285C.200, the qualified property
of which is exempt from property tax under ORS 285C.175.
{ + (17) 'Qualified local vendor' means a supplier, service
provider, consultant or contractor that is located within the
jurisdictional boundaries of the zone sponsor and that meets the
business requirements of the authorized business firm. + }
{ - (16) - } { + (18) + } 'Qualified property' means
property described under ORS 285C.180.
{ - (17) - } { + (19) + } 'Rural enterprise zone' means:
(a) An enterprise zone located in an area of this state in
which an urban enterprise zone could not be located; or
(b) A reservation enterprise zone designated, or a reservation
partnership zone cosponsored, under ORS 285C.306.
{ - (18) - } { + (20) + } 'Sparsely populated county' means
a county with a density of 100 or fewer persons per square mile,
based on the most recently available population figure for the
county from the Portland State University Population Research
Center.
{ - (19) - } { + (21) + } 'Sponsor' means:
(a) The city, county or port, or any combination of cities,
counties or ports, that received approval of an enterprise zone
under ORS 284.150 and 284.160 (1987 Replacement Part), under ORS
285C.065 and 285C.075, under ORS 285C.085 or under ORS 285C.250;
(b) The tribal government, in the case of a reservation
enterprise zone;
(c) The tribal government and the cosponsoring city, county or
port, in the case of a reservation partnership zone; or
(d) A city, county or port that joined the enterprise zone
through a boundary change under ORS 285C.115 (7) or a port that
joined the enterprise zone under ORS 285C.068.
{ - (20) - } { + (22) + } 'Tax year' has the meaning given
that term in ORS 308.007.
{ - (21) - } { + (23) + } 'Urban enterprise zone' means an
enterprise zone in a metropolitan statistical area, as defined by
the most recent federal decennial census, that is located inside
a regional or metropolitan urban growth boundary.
{ - (22) - } { + (24) + } 'Year' has the meaning given that
term in ORS 308.007.
SECTION 2. { + Section 3 of this 2011 Act is added to and made
a part of ORS 285C.050 to 285C.250. + }
SECTION 3. { + (1)(a) The qualified property of an authorized
business firm may not be exempt from property taxation under ORS
285C.175 unless the firm submits a local procurement plan to the
zone sponsor before the assessment date for the first tax year
for which qualified property of the firm is exempt under ORS
285C.175.
(b) A local procurement plan must be effective for the period
of property tax exemption and may not end before December 31 of
the final year of exemption.
(c) The zone sponsor shall immediately notify the county
assessor if the authorized business firm does not submit a local
procurement plan on or before April 1 immediately preceding the
first tax year for which the firm claims exemption for qualified
property under ORS 285C.175.
(2) The zone sponsor may adopt rules pursuant to which the zone
sponsor may waive the local procurement plan required under
subsection (1) of this section if the zone sponsor finds that:
(a) The authorized business firm is unable to locate a
qualified local vendor; or
(b) The waiver would further the purposes of ORS 285C.050 to
285C.250. + }
SECTION 4. ORS 285C.600 is amended to read:
285C.600. As used in ORS 285C.600 to 285C.626:
(1) 'Business firm' has the meaning given that term in ORS
285C.050.
(2) 'Eligible project' means a project that meets criteria
established by the Oregon Business Development Commission to be
exempt from property taxation under ORS 307.123.
(3) 'First-source hiring agreement' has the meaning given that
term in ORS 285C.050.
{ + (4) 'Local procurement plan' means a plan submitted by a
business firm that requires the business firm to set goals,
targets and strategies to identify, and make good faith efforts
to purchase goods and services from, qualified local vendors. + }
{ - (4) - } { + (5) + } 'Publicly funded job training
provider' has the meaning given that term in ORS 285C.050.
{ + (6) 'Qualified local vendor' means a supplier, service
provider, consultant or contractor that is located within the
county requesting exemption from property taxation for the
eligible project and that meets the business requirements of the
business firm. + }
{ - (5) - } { + (7) + } 'Rural area' means an area located
entirely outside of the urban growth boundary of a city with a
population of 30,000 or more, as the urban growth boundary is
acknowledged on December 1, 2002.
{ - (6) - } { + (8) + } 'Strategic investment zone' means a
geographic area established under ORS 285C.623, within which the
property of eligible projects may be exempt from property
taxation under ORS 307.123.
SECTION 5. ORS 285C.606 is amended to read:
285C.606. (1) The State of Oregon, acting through the Oregon
Business Development Commission, may determine that real and
personal property constituting a project shall receive the tax
exemption provided in ORS 307.123 if:
(a) The project is an eligible project;
(b) The project directly benefits a traded sector industry, as
defined in ORS 285B.280; and
(c) The total cost of the project equals or exceeds:
(A) $100 million; or
(B) $25 million, if the project is located in a rural area.
(2) In addition to and not in lieu of the determination
described in subsection (1) of this section, the State of Oregon,
acting through the Oregon Business Development Commission, shall
determine that real and personal property constituting a project
shall receive the tax exemption provided in ORS 307.123 if:
(a) The requirements of subsection (1) of this section are met;
and
(b) The project is to be constructed or installed in a
strategic investment zone established under ORS 285C.623.
(3) Notwithstanding subsection (1) or (2) of this section,
property may not qualify for the tax exemption under ORS 307.123
if the property:
(a) Was previously owned or leased by the business firm
benefiting from the tax exemption;
(b) Was previously exempt under ORS 307.123 for any period of
time; or
(c) If located in a strategic investment zone, is not newly
constructed or newly installed property.
(4) The State of Oregon, acting through the State Treasurer,
may authorize and issue revenue bonds for an eligible project
that qualifies for exemption under ORS 307.123 if the project
also is eligible for funding through the issuance of revenue
bonds under ORS 285B.320 to 285B.371.
(5) A business firm that will be benefited by an eligible
project shall enter into a first-source hiring agreement with a
publicly funded job training provider that will remain in effect
until the end of the tax exemption period.
{ + (6)(a) A business firm that will be benefited by an
eligible project shall submit to the county, or if the proposed
eligible project is located within a city, the city, a local
procurement plan effective for the period of property tax
exemption under ORS 307.123.
(b) The county or the city, as applicable, shall immediately
notify the county assessor if the business firm does not submit a
local procurement plan on or before April 1 immediately preceding
the first tax year for which the business firm claims exemption
for qualified property under ORS 307.123.
(c) A county or city may adopt rules pursuant to which the
county or city, respectively, may waive the local procurement
plan required under paragraph (a) of this subsection if the
county or city finds that:
(A) The business firm is unable to locate a qualified local
vendor; or
(B) The waiver would further the purposes of ORS 285C.600 to
285C.626. + }
{ - (6) - } { + (7) + } If an eligible project is leased or
subleased to any person, the lessee shall be required to pay
property taxes levied upon or with respect to the leased premises
only in accordance with ORS 307.123.
{ - (7) - } { + (8) + } For purposes of determining the
assessment and taxation of the eligible project in ORS 307.123
and the calculation of the community services fee in ORS 285C.609
(4)(b), the Oregon Business Development Commission, when it
determines that the project is an eligible project, shall:
(a) Describe the real and personal property to be included in
the eligible project;
(b) Establish the maximum value of the property subject to
exemption; or
(c) Employ a comparable method to define the eligible project.
{ - (8) - } { + (9) + } Property of an eligible project
that is currently exempt under ORS 307.123 may remain exempt for
any remaining period of exemption allowed under ORS 307.123 upon
the property being acquired by a business firm that is different
from the business firm that initially benefited from the
exemption, if the acquiring firm satisfies all applicable
requirements under ORS 285C.600 to 285C.626 and assumes the
obligations, conditions, requirements and other terms of the
agreement described in ORS 285C.609 (4).
SECTION 6. { + 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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