Bill Text: OR HB2530 | 2011 | Regular Session | Introduced
Bill Title: Relating to economic development; declaring an emergency.
Sponsorship: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2530 Detail]
Download: Oregon-2011-HB2530-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 1150
House Bill 2530
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Revenue)
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.
Directs Oregon Business Development Department to file annual
Unified Economic Development Report detailing development
subsidies.
Requires public disclosure of development subsidy. Limits
development subsidies based on cost and quality of jobs created.
Provides for recapture of development subsidies from businesses
in default on obligations. Creates cause of action for aggrieved
taxpayers.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to economic development; and declaring an emergency.
Whereas while the state and its local government units have
granted numerous economic development subsidies in the last 25
years, the real wage levels and health care coverage of working
families have declined; and
Whereas when workers receive low wages and poor benefits, their
jobs often impose hidden taxpayer costs upon other citizens in
the form of Medicaid, food stamps, earned income tax credits and
other forms of public assistance to the working poor and their
families; and
Whereas citizen participation in economic development has been
impeded by a lack of readily accessible information regarding
expenditures and outcomes; and
Whereas in order to improve the effectiveness of expenditures
for economic development and to ensure that these expenditures
achieve the goal of raising living standards for working
families, it is necessary to collect, analyze and make available
to the public information regarding those expenditures and to
impose certain safeguards for their use; now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) 'Corporate parent' means any person,
association, corporation, joint venture, partnership or other
entity that owns or controls 50 percent or more of a recipient.
(2) 'Date of subsidy' means the date that a granting body
provides the initial monetary value of a development subsidy to a
recipient, provided that:
(a) If the subsidy is for installation of new equipment, the
date of subsidy shall be the date the recipient puts the
equipment into service; and
(b) If the subsidy is for improvements to property, the date of
subsidy shall be the date the improvements are finished or the
date the recipient or intended beneficiary of the development
subsidy occupies the property, whichever is earlier.
(3) 'Development subsidy' means any expenditure of public funds
with a value of at least $25,000 for the purpose of stimulating
economic development within the state, including but not limited
to bonds, grants, loans, loan guarantees, enterprise zones,
empowerment zones, tax increment financing, grants, fee waivers,
land price subsidies, matching funds, tax abatements, tax
exemptions and tax credits.
(4) 'Full-time job' means a job in which an individual is
employed by a recipient for at least 35 hours per week.
(5) 'Granting body' means any agency, board, office, public
benefit corporation or authority of the state or a local
government unit that provides a development subsidy.
(6) 'Local government unit' means an agency, board, commission,
office, public benefit corporation or public authority of a
political subdivision of the state.
(7) 'New employee' means a full-time employee who represents a
net increase in the number of individuals employed by the
recipient in the state. 'New employee' does not include an
employee who performs a job that was previously performed by
another employee of the recipient if that job existed for at
least six months before the employee was hired.
(8) 'Part-time job' means a job in which an individual is
employed by a recipient for less than 35 hours per week.
(9) 'Project site' means the site of a project for which any
development subsidy is provided.
(10) 'Property-taxing entity' means any entity that levies
taxes upon real or personal property.
(11) 'Recipient' means any person, association, corporation,
joint venture, partnership or other entity that receives a
development subsidy.
(12) 'Small business' means a recipient whose corporate parent,
and all of its subsidiaries, employed fewer than 20 full-time
employees or had total gross receipts of less than $1 million
dollars during the calendar year.
(13) 'State' means an agency, board, commission, office, public
benefit corporation or public authority of the state.
(14) 'Subsidy value' means the face value of any and all
development subsidies provided to a recipient.
(15) 'Temporary job' means a job in which an individual is
hired for a season or for a limited period of time. + }
SECTION 2. { + (1) The Oregon Business Development Department
shall submit an annual Unified Economic Development Report to the
Legislative Assembly no later than three months after the end of
each fiscal year. The report shall present all types of
expenditures for economic development during the prior fiscal
year, including but not limited to:
(a) The amount of uncollected state tax revenues resulting from
every tax credit, abatement, exemption and reduction provided to
a recipient by the state or a local government unit, including
but not limited to taxes on gross receipts, income, sales, use,
raw materials, excise, property, utility and inventory.
(b) The name of each recipient that claimed any tax credit,
abatement, exemption or reduction under paragraph (a) of this
subsection of any value equal to or greater than $5,000, together
with the dollar amount received by each such recipient.
(c) The aggregate amount of tax credits, abatements, exemptions
or reductions of less than $5,000 received by a recipient and the
number of recipients so aggregated for each tax expenditure.
(d) All state-appropriated expenditures for economic
development, including line item budgets for every state-funded
entity concerned with economic development, including but not
limited to the Oregon Business Development Department, the
Employment Department, vocational education programs, state
university research programs, manufacturing extension service,
the State Workforce Investment Board, the Oregon Business
Development Commission, industrial development authorities,
regional development authorities and finance authorities.
(2) The Department of Revenue shall submit a report of the
amounts in subsection (1)(a) to (c) of this section to the Oregon
Business Development Department at the end of the applicable
fiscal year for inclusion in the Unified Economic Development
Report. The Oregon Business Development Department may append the
Department of Revenue report to the Unified Economic Development
Report rather than separately reporting the amounts. + }
SECTION 3. { + (1) Each local taxing district shall submit a
report to the Department of Revenue regarding any real property
in the local taxing district's jurisdiction that has received a
property tax abatement or reduction during the fiscal year. The
report shall contain information including but not limited to:
(a) The name of the property owner;
(b) The address of the property;
(c) The start and end dates of the property tax reduction or
abatement;
(d) The schedule of the tax reduction;
(e) Each tax abatement or reduction for the property; and
(f) The amount of property tax revenue not paid to the taxing
entity as a result of the reduction or abatement.
(2) Each local taxing district shall also submit a report to
the department setting forth the total property tax revenue not
paid to the district during the fiscal year as a result of all
property tax reductions and abatements in the local taxing
district's jurisdiction.
(3) The reports required under subsections (1) and (2) of this
section must be prepared on forms provided by the department and
submitted to the department by the local taxing district no later
than three months after the end of the fiscal year.
(4) The department shall annually compile and publish all of
the data contained in the reports required under subsections (1)
and (2) of this section in both written and electronic form. The
department shall post the data on the department's Internet
website.
(5) If a local taxing district fails to submit the reports
required under this section to the department within the
prescribed time, the department shall notify the State Treasurer
and the Oregon Business Development Department, whereupon the
State Treasurer or the Oregon Business Development Department
shall withhold further payments of any development subsidy to the
delinquent district until the local taxing district files the
reports with the department. + }
SECTION 4. { + (1) Each granting body, together with the
applicant for a development subsidy, shall complete an
application for the development subsidy on a form provided by the
Oregon Business Development Department. The information required
on the application shall include the following:
(a) An application tracking number that is specific to the
granting body and the project.
(b) The name, street and mailing addresses and telephone number
of the chief officer of the granting body.
(c) The name, street and mailing addresses and telephone number
of the chief officer of the applicant's corporate parent.
(d) The name, street and mailing addresses and telephone number
of the chief officer of the applicant.
(e) The street address of the project site.
(f) The three-digit North American Industry Classification
System number of the project site.
(g) The total number of individuals employed by the applicant
at the project site on the date of the application, broken down
by full-time, part-time and temporary jobs.
(h) The total number of individuals employed in the state by
the applicant's corporate parent, and all of its subsidiaries, as
of December 31 of the prior fiscal year, broken down by
full-time, part-time and temporary jobs.
(i) The development subsidy or development subsidies sought in
the application, and the value of such subsidy or subsidies.
(j) The number of new jobs to be created by the applicant at
the project site, broken down by full-time, part-time and
temporary jobs.
(k) The average hourly wage to be paid to all current and new
employees at the project site, broken down by full-time,
part-time and temporary jobs, and further broken down by wage
groups as follows:
(A) $7.00 or less an hour;
(B) $7.01 to $8.00 an hour;
(C) $8.01 to $9.00 an hour;
(D) $9.01 to $10.00 an hour;
(E) $10.01 to $11.00 an hour;
(F) $11.01 to $12.00 an hour;
(G) $12.01 to $13.00 an hour;
(H) $13.01 to $14.00 an hour; and
(I) $14.01 or more per hour.
(L) For project sites located in a Metropolitan Statistical
Area, as defined by the federal Office of Management and Budget,
the average hourly wage paid to nonmanagerial employees in the
state for the industries involved at the project, as established
by the United States Bureau of Labor Statistics.
(m) For project sites located outside of a metropolitan
statistical area with a population exceeding 400,000, the average
weekly wage paid to nonmanagerial employees in the county for
industries involved at the project site, as established by the
United States Department of Commerce.
(n) The type and amount of health care coverage to be provided
by the applicant within 90 days of commencement of employment at
the project site, including any costs to be borne by the
employees.
(o) A list of all development subsidies that the applicant is
requesting, and the name of any other granting body from which a
development subsidy is sought.
(p) A statement as to whether the development subsidy may
reduce employment at any other site controlled by the applicant
or its corporate parent, within or outside the state, resulting
from automation, merger, acquisition, corporate restructuring or
other business activity.
(q) A certification by the chief officer of the applicant as to
the accuracy of the application.
(2) If the granting body approves the application, the granting
body shall send a copy of the application to the Oregon Business
Development Department within 15 days of the approval. If the
application is not approved, the granting body shall retain the
application in the records of the granting body. + }
SECTION 5. { + (1)(a) Each granting body shall file, no later
than February 1 of each year, a progress report with the Oregon
Business Development Department for each project for which a
development subsidy has been granted. The report shall include
the following information:
(A) The application tracking number;
(B) The name, street and mailing addresses, telephone number
and chief officer of the granting body;
(C) The name, street and mailing addresses, telephone number
and chief officer of the recipient;
(D) A summary of the number of jobs required, created and lost,
broken down by full-time, part-time and temporary jobs and by
wage groups;
(E) The type and amount of health care coverage provided to the
employees at the project site, including any costs borne by the
employees;
(F) The comparison of the total employment in the state by the
recipient's corporate parent on the date of the application and
the date of the progress report, broken down by full-time,
part-time and temporary jobs;
(G) A statement as to whether the use of the development
subsidy during the previous fiscal year reduced employment at any
other site controlled by the recipient or its corporate parent,
within or outside the state, as a result of automation, merger,
acquisition, corporate restructuring or other business activity;
and
(H) A signed certification by the chief officer of the
recipient as to the accuracy of the progress report.
(b) On all subsequent annual progress reports, the granting
body shall indicate whether the recipient is still in compliance
with its job creation, wage and benefit goals and whether the
corporate parent is still in compliance with its state employment
requirement.
(c) Granting bodies and recipients shall file annual progress
reports for the duration of the development subsidy or not less
than five years, whichever is longer.
(2)(a) No later than 15 days after the second anniversary of
the date of subsidy, the granting body shall file with the
department a two-year progress report including the same
information as required under paragraph (b) of this
subsection. The recipient shall certify as to the accuracy of
such report.
(b) The granting body shall state in the two-year progress
report whether the recipient has achieved its job creation, wage
and benefit goals and whether the corporate parent has maintained
90 percent of the employment of the corporate parent in the
state.
(c) The department shall compile and publish all data from the
progress reports in both written and electronic form. The
department shall post the data on the department's Internet
website.
(3) The granting body and the department shall have access at
all reasonable times to the project site and the records of the
recipient in order to monitor the project and to prepare the
progress reports.
(4) A recipient that fails to provide the granting body with
information or access required under this section shall be
subject to a fine of not less than $500 per day to commence
within 10 working days after the February 1 deadline, and of not
less than $1,000 per day to commence 20 days after such
deadline. + }
SECTION 6. { + A granting body may not grant or award a
development subsidy unless:
(1) The cost per job created or maintained by the development
subsidy is less than $35,000. The cost per job shall be
determined by dividing the amount of the development subsidy by
the number of full-time jobs required under the application
approved by the granting body;
(2) The recipient provides health care to employees as approved
by the granting body in the application for the development
subsidy; and
(3) The average wage paid to employees at the project site
equals or exceeds the wages established under section 4 (1)(L) or
(m) of this 2011 Act by:
(a) 75 percent, for a recipient that is a small business; or
(b) 85 percent, for all other recipients. + }
SECTION 7. { + (1) A recipient shall fulfill its job creation,
wage and benefit goals for the project within two years after the
date of subsidy. The recipient shall maintain the wage and
benefit goals as long as the development subsidy is in effect or
not less than five years, whichever is longer.
(2) The corporate parent of a recipient must maintain at least
90 percent of its employment in the state as long as the
development subsidy is in effect or not less than five years,
whichever is longer.
(3) If the requirements under subsections (1) and (2) of this
section are not fulfilled, the granting body shall recapture the
development subsidy from the recipient as follows:
(a) Upon a failure by the recipient to create the required
number of jobs or to pay the required wages or benefits, the
amount recaptured shall be based on the pro rata amount by which
the unfulfilled jobs, wages or benefits bear to the total amount
of the development subsidy.
(b) Upon a failure of the corporate parent to maintain 90
percent of its employment in the state, the rate of recapture
shall equal twice the percentage by which such employment is less
than 90 percent.
(4) The granting body shall provide notice to the recipient of
an intent to recapture the development subsidy. The notice shall
state the reasons that the granting body seeks recapture and the
amount to be recaptured. The recipient shall remit to the
governing body the recapture amount within 60 calendar days of
the date of the notice.
(5) If a recipient fails to fulfill the requirements for a
development subsidy in three consecutive calendar years, the
granting body shall notify the Oregon Business Development
Department and the recipient that the recipient is in default.
The recipient shall repay to the granting body all remaining
value of the development subsidy not previously repaid, no later
than 180 calendar days of the date of the notice of default. + }
SECTION 8. { + If a granting body fails to enforce any
provision in sections 1 to 7 of this 2011 Act, any individual who
paid personal income taxes to the state in the calendar year
prior to the year in dispute, or any organization representing
such taxpayers, shall be entitled to bring a civil action in
state court to compel enforcement under sections 1 to 7 of this
2011 Act. The court shall award reasonable attorney fees and
costs to the prevailing taxpayer or organization. + }
SECTION 9. { + All records required to be prepared or
maintained under sections 1 to 7 of this 2011 Act, including but
not limited to applications, progress reports, recapture notices
and other related records or proceedings, shall be subject to
disclosure under public records law. + }
SECTION 10. { + Nothing in sections 1 to 7 of this 2011 Act
shall require or authorize any recipient to reduce wages or
benefits established under any collective bargaining agreement or
state or federal prevailing wage law. + }
SECTION 11. { + 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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