75th OREGON LEGISLATIVE ASSEMBLY--2010 Special Session

                            Enrolled

                         House Bill 3680

Sponsored by COMMITTEE ON REVENUE

                     CHAPTER ................

                             AN ACT

Relating to tax credits; creating new provisions; amending ORS
  192.502, 285C.050, 285C.090, 285C.115, 285C.245, 285C.255,
  285C.300, 285C.309, 285C.320, 314.752, 315.354, 315.357,
  469.185, 469.195, 469.197, 469.200, 469.205, 469.210, 469.215,
  469.220 and 469.225 and section 21, chapter 913, Oregon Laws
  2009; repealing section 26, chapter 843, Oregon Laws 2007;
  prescribing an effective date; and providing for revenue
  raising that requires approval by a three-fifths majority.

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

  SECTION 1.  { + Section 2 of this 2010 Act is added to and made
a part of ORS 469.185 to 469.225. + }
  SECTION 2.  { + (1) The total amount of potential tax credits
for all facilities using or producing renewable energy resources
in this state may not, at the time of preliminary certification
under ORS 469.210, exceed:
  (a) $300 million for the biennium ending June 30, 2011.
  (b) $150 million for the year beginning July 1, 2011, and
ending June 30, 2012.
  (2) In the event that the Director of the State Department of
Energy receives applications for preliminary certification with a
total amount of potential tax credits in excess of the
limitations in subsection (1) of this section, the director shall
allocate the issuance of preliminary certifications according to
the criteria required by ORS 469.195.
  (3) The director shall review applications and make
determinations whether to issue preliminary certifications for
proposed facilities using or producing renewable energy
resources:
  (a) Within 90 days of the date on which the application is
received, in the case of an application for certification with a
cost of less than $6 million.
  (b) Within six months of the date on which the application is
received, in the case of an application for certification with a
cost of $6 million or more.
  (4) The total amount of potential tax credits for all renewable
energy resource equipment manufacturing facilities in this state
may not, at the time of preliminary certification under ORS
469.210, exceed:
  (a) $200 million for the biennium ending June 30, 2011.
  (b) $200 million for the biennium ending June 30, 2013.
  (c) $50 million for the six months beginning July 1, 2013, and
ending December 31, 2013. + }

Enrolled House Bill 3680 (HB 3680-B)                       Page 1

  SECTION 3. ORS 315.354 is amended to read:
  315.354. (1) A credit is allowed against the taxes otherwise
due under ORS chapter 316 (or, if the taxpayer is a corporation,
under ORS chapter 317 or 318), based upon the certified cost of
the facility during the period for which that facility is
certified under ORS 469.185 to 469.225. The credit is allowed as
follows:
  (a) Except as provided in paragraph (b) or (c) of this
subsection, the credit allowed in each of the first two tax years
in which the credit is claimed shall be 10 percent of the
certified cost of the facility, but may not exceed the tax
liability of the taxpayer. The credit allowed in each of the
succeeding three years shall be five percent of the certified
cost, but may not exceed the tax liability of the taxpayer.
  (b) If the certified cost of the facility does not exceed
$20,000, the total amount of the credit allowable under
subsection (4) of this section may be claimed in the first tax
year for which the credit may be claimed, but may not exceed the
tax liability of the taxpayer.
  (c) If the facility uses or produces renewable energy resources
or is a renewable energy resource equipment manufacturing
facility, the credit allowed in each of five succeeding tax years
shall be 10 percent of the certified cost of the facility, but
may not exceed the tax liability of the taxpayer.
  (2) Notwithstanding subsection (1) of this section:
  (a) If the facility is one or more renewable energy resource
systems installed in a single-family dwelling, the amount of the
credit for each system shall be determined as if the facility was
considered a residential alternative energy device under ORS
316.116, but subject to the maximum credit amount under
subsection (4)(b) of this section;
  (b) If the facility is a high-performance home, the amount of
the credit shall equal the amount determined under paragraph (a)
of this subsection plus $3,000; and
  (c) If the facility is a high-performance home or a
homebuilder-installed renewable energy system, the total amount
of the credit may be claimed in the first tax year for which the
credit is claimed, but may not exceed the tax liability of the
taxpayer.
  (3) In order for a tax credit to be allowable under this
section:
  (a) The facility must be located in Oregon;
  (b) The facility must have received final certification from
the Director of the State Department of Energy under ORS 469.185
to 469.225;
  (c) The taxpayer must be an eligible applicant under ORS
469.205 (1)(c); and
  (d) If the alternative fuel vehicle is a gasoline-electric
hybrid vehicle not designed for electric plug-in charging, it
must be purchased before January 1, 2010.
  (4) The total amount of credit allowable to an eligible
taxpayer under this section may not exceed:
  (a) 50 percent of the certified cost of a renewable energy
resources facility, a renewable energy resource equipment
manufacturing facility or a high-efficiency combined heat and
power facility;
  (b) $9,000 per single-family dwelling for homebuilder-installed
renewable energy systems;

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  (c) $12,000 per single-family dwelling for
homebuilder-installed renewable energy systems, if the dwelling
also constitutes a high-performance home; or
  (d) 35 percent of the certified cost of any other facility.
  (5)(a) Upon any sale, termination of the lease or contract,
exchange or other disposition of the facility, notice thereof
shall be given to the Director of the State Department of
Energy { + , + } who shall revoke the certificate covering the
facility as of the date of such disposition.
   { +  (b) + } The new owner, or upon re-leasing of the
facility, the new lessor, may apply for a new certificate under
ORS 469.215  { - , but - }  { + . The new lessor or owner must
meet the requirements of ORS 469.185 to 469.225 and may claim a
tax credit under this section only if all moneys owed to the
State of Oregon have been paid, the facility continues to
operate, unless continued operation is waived by the State
Department of Energy, and all conditions in the final
certification are met. + } The tax credit available to the new
owner shall be limited to the amount of credit not claimed by the
former owner or, for a new lessor, the amount of credit not
claimed by the lessor under all previous leases.
    { - (b) - }   { + (c) + } The State Department of Energy may
not revoke the certificate covering a facility under paragraph
(a) of this subsection if the tax credit associated with the
facility has been transferred to a taxpayer who is an eligible
applicant under ORS 469.205 (1)(c)(A).
   { +  (d) A transferee holding a credit that has been
transferred under ORS 469.206 or 469.208 may not claim the tax
credit under this section for any tax year prior to the tax year
in which the transferee obtained the credit. + }
  (6) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular year may be carried
forward and offset against the taxpayer's tax liability for the
next succeeding tax year. Any credit remaining unused in that
next succeeding tax year may be carried forward and used in the
second succeeding tax year, and likewise, any credit not used in
that second succeeding tax year may be carried forward and used
in the third succeeding tax year, and likewise, any credit not
used in that third succeeding tax year may be carried forward and
used in the fourth succeeding tax year, and likewise, any credit
not used in that fourth succeeding tax year may be carried
forward and used in the fifth succeeding tax year, and likewise,
any credit not used in that fifth succeeding tax year may be
carried forward and used in the sixth succeeding tax year, and
likewise, any credit not used in that sixth succeeding tax year
may be carried forward and used in the seventh succeeding tax
year, and likewise, any credit not used in that seventh
succeeding tax year may be carried forward and used in the eighth
succeeding tax year, but may not be carried forward for any tax
year thereafter.  Credits may be carried forward to and used in a
tax year beyond the years specified in subsection (1) of this
section only as provided in this subsection.
  (7) The credit provided by this section is not in lieu of any
depreciation or amortization deduction for the facility to which
the taxpayer otherwise may be entitled for purposes of ORS
chapter 316, 317 or 318 for such year.
  (8) The taxpayer's adjusted basis for determining gain or loss
may not be decreased by any tax credits allowed under this
section.

Enrolled House Bill 3680 (HB 3680-B)                       Page 3

  (9) If a homebuilder claims a credit under this section with
respect to a homebuilder-installed renewable energy system or a
high-performance home:
  (a) The homebuilder may not claim credits for both a
homebuilder-installed renewable energy system and a
high-performance home with respect to the same dwelling;
  (b) The homebuilder must inform the buyer of the dwelling that
the homebuilder is claiming a tax credit under this section with
respect to the dwelling; and
  (c) The buyer of the dwelling may not claim a credit under this
section that is based on any facility for which the homebuilder
has already claimed a credit.
  (10) The definitions in ORS 469.185 apply to this section.
  SECTION 4. ORS 469.185 is amended to read:
  469.185. As used in ORS 469.185 to 469.225 and 469.878:
  (1) 'Alternative fuel vehicle' means a vehicle as defined by
the Director of the State Department of Energy by rule that is
used primarily in connection with the conduct of a trade or
business and that is manufactured or modified to use an
alternative fuel, including but not limited to electricity,
ethanol, methanol, gasohol and propane or natural gas, regardless
of energy consumption savings.
  (2) 'Car sharing facility' means the expenses of operating a
car sharing program, including but not limited to the fair market
value of parking spaces used to store the fleet of cars available
for a car sharing program, but does not include the costs of the
fleet of cars.
  (3) 'Car sharing program' means a program in which drivers pay
to become members in order to have joint access to a fleet of
cars from a common parking area on an hourly basis. 'Car sharing
program' does not include operations conducted by car rental
agencies.
  (4) 'Cost' means the capital costs and expenses necessarily
incurred in the acquisition, erection, construction and
installation of a facility, including site development costs and
expenses for a sustainable building practices facility.
  (5) 'Energy facility' means any capital investment for which
the first year energy savings yields a simple payback period of
greater than one year. An energy facility includes:
  (a) Any land, structure, building, installation, excavation,
machinery, equipment or device, or any addition to,
reconstruction of or improvement of, land or an existing
structure, building, installation, excavation, machinery,
equipment or device necessarily acquired, erected, constructed or
installed by any person in connection with the conduct of a trade
or business and actually used in the processing or utilization of
renewable energy resources to:
  (A) Replace a substantial part or all of an existing use of
electricity, petroleum or natural gas;
  (B) Provide the initial use of energy where electricity,
petroleum or natural gas would have been used;
  (C) Generate electricity to replace an existing source of
electricity or to provide a new source of electricity for sale by
or use in the trade or business;
  (D) Perform a process that obtains energy resources from
material that would otherwise be solid waste as defined in ORS
459.005; or
  (E) Manufacture or distribute alternative fuels, including but
not limited to electricity, ethanol, methanol, gasohol or
biodiesel.

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  (b) Any acquisition of, addition to, reconstruction of or
improvement of land or an existing structure, building,
installation, excavation, machinery, equipment or device
necessarily acquired, erected, constructed or installed by any
person in connection with the conduct of a trade or business in
order to substantially reduce the consumption of purchased
energy.
  (c) A necessary feature of a new commercial building or
multiple unit dwelling, as dwelling is defined by ORS 469.160,
that causes that building or dwelling to exceed an energy
performance standard in the state building code.
  (d) The replacement of an electric motor with another electric
motor that substantially reduces the consumption of electricity.
  (6) 'Facility' means an energy facility, recycling facility,
transportation facility, car sharing facility, sustainable
building practices facility, alternative fuel vehicle or
facilities necessary to operate alternative fuel vehicles,
including but not limited to an alternative fuel vehicle
refueling station, a high-efficiency combined heat and power
facility, a high-performance home, a homebuilder-installed
renewable energy system, or a renewable energy resource equipment
manufacturing facility.
  (7) 'High-efficiency combined heat and power facility ' means a
device or equipment that simultaneously produces heat and
electricity from a single source of fuel and that meets the
criteria established for a high-efficiency combined heat and
power facility under ORS 469.197.
  (8) 'High-performance home' means a new single-family dwelling
that:
  (a) Is designed and constructed to reduce net purchased energy
through use of both energy efficiency and on-site renewable
energy resources; and
  (b) Meets the criteria established for a high-performance home
under ORS 469.197.
  (9) 'Homebuilder-installed renewable energy system' means a
renewable energy resource system that:
  (a) Meets the criteria established for a renewable energy
resource system under ORS 469.197; and
  (b) Is installed in a new single-family dwelling by, or at the
direction of, the homebuilder constructing the dwelling.
  (10) 'Qualified transit pass contract' means a purchase
agreement entered into between a transportation provider and a
person, the terms of which obligate the person to purchase
transit passes on behalf or for the benefit of employees,
students, patients or other individuals over a specified period
of time.
  (11) 'Recycling facility' means equipment used by a trade or
business solely for recycling:
  (a) Including:
  (A) Equipment used solely for hauling and refining used oil;
  (B) New vehicles or modifications to existing vehicles used
solely to transport used recyclable materials that cannot be used
further in their present form or location such as glass, metal,
paper, aluminum, rubber and plastic;
  (C) Trailers, racks or bins that are used for hauling used
recyclable materials and are added to or attached to existing
waste collection vehicles; and
  (D) Any equipment used solely for processing recyclable
materials such as balers, flatteners, crushers, separators and
scales.

Enrolled House Bill 3680 (HB 3680-B)                       Page 5

  (b) But not including equipment used for transporting or
processing scrap materials that are recycled as a part of the
normal operation of a trade or business as defined by the
director.
  (12)(a) 'Renewable energy resource' includes, but is not
limited to:
  (A) Straw, forest slash, wood waste or other wastes from farm
or forest land, nonpetroleum plant or animal based biomass, ocean
wave energy, solar energy, wind power, water power or geothermal
energy;   { - or - }
  (B) A hydroelectric generating facility that obtains all
applicable permits and complies with all state and federal
statutory requirements for the protection of fish and wildlife
and:
  (i) That does not exceed 10 megawatts of installed capacity; or
  (ii) Qualifies as a research, development or demonstration
facility  { - . - }  { + ; or
  (C) A renewable energy storage device as defined by the
director by rule. + }
  (b) 'Renewable energy resource' does not include a
hydroelectric generating facility that is not described in
paragraph (a) of this subsection.
  (13) 'Renewable energy resource equipment manufacturing
facility' means any structure, building, installation,
excavation, machinery, equipment or device, or an addition,
reconstruction or improvement to land or an existing structure,
building, installation, excavation, machinery, equipment or
device, that is necessarily acquired, constructed or installed by
a person in connection with the conduct of a trade or business,
that is used primarily to manufacture   { - equipment, machinery
or other products designed to use a renewable energy resource and
that meets the criteria established under ORS 469.197. - }  { + :
  (a) Equipment, machinery or other products designed to use a
renewable energy resource and that meets the criteria established
under ORS 469.197.
  (b) Electric vehicles, including three-wheeled vehicles, that
are designed for use as Class I or Class II all-terrain vehicles,
as those terms are defined in ORS 801.190 and 801.193, and that
are used for agricultural, commercial, industrial or governmental
purposes, or designed for use as modes of transportation on
public roads and highways, or component parts of electric
vehicles, but not including component parts that may be used in
both electric and conventional vehicles. The director may further
define ' agricultural, commercial, industrial or governmental
purposes ' of electric vehicles by rule. For purposes of this
paragraph, ' component parts' does not include batteries.
  (c) Renewable energy storage devices. + }
  (14) 'Sustainable building practices facility' means a
commercial building in which building practices that reduce the
amount of energy, water or other resources needed for
construction and operation of the building are used. 'Sustainable
building practices facility' may be further defined by the State
Department of Energy by rule, including rules that establish
traditional building practice baselines in energy, water or other
resource usage for comparative purposes for use in determining
whether a facility is a sustainable building practices facility.
  (15) 'Transportation facility' means a transportation project
that reduces energy use during commuting to and from work or
school, during work-related travel, or during travel to obtain
medical or other services, and may be further defined by the

Enrolled House Bill 3680 (HB 3680-B)                       Page 6

department by rule. 'Transportation facility' includes, but is
not limited to  { - , - }  { + :
  (a) + } A qualified transit pass contract or a transportation
services contract  { - . - }  { + ; or
  (b) The purchase of efficient truck technology and related
truck trailers, as defined in ORS 801.580, for commercial motor
vehicles, as defined in ORS 801.208, that are registered under
ORS 803.420, or for commercial motor vehicles that are
proportionally registered under ORS 826.009 or 826.011. + }
  (16) 'Transportation provider' means a public, private or
nonprofit entity that provides transportation services to members
of the public.
  (17) 'Transportation services contract' means a contract that
is related to a transportation facility, and may be further
defined by the department by rule.
  SECTION 5. ORS 315.357 is amended to read:
  315.357.   { - A taxpayer may not be allowed a credit under ORS
315.354 if the first tax year for which the credit with respect
to a facility certified under ORS 469.215 would otherwise be
allowed begins on or after January 1, 2012. - }
   { +  (1) Except as provided in subsection (2) of this section,
a taxpayer may not be allowed a credit under ORS 315.354 unless
the taxpayer receives final certification under ORS 469.215
before July 1, 2012.
  (2) A taxpayer may not be allowed a credit under ORS 315.354
for a renewable energy resource equipment manufacturing facility
unless the taxpayer receives preliminary certification under ORS
469.210 before January 1, 2014. + }
  SECTION 6. ORS 469.195 is amended to read:
  469.195.  { + (1) + } In determining the eligibility of
 { - facilities - }  { + any facility + } for tax credits,
preference shall be given to those projects   { - which - }  { +
that + }:
    { - (1) - }   { + (a) + } Provide energy savings for real or
personal property within the state inhabited as the principal
residence of a tenant, including:
    { - (a) - }   { + (A) + } Nonowner occupied single family
dwellings; and
    { - (b) - }   { + (B) + } Multiple unit residential housing;
or
    { - (2) - }   { + (b) + } Provide long-term energy savings
from the use of renewable resources or conservation of energy
resources.
   { +  (2) The Director of the State Department of Energy shall
establish by rule a tiered priority system to be used in
evaluating applicants for certification of facilities using or
producing renewable energy resources. The tier system shall be
based upon the projected costs of facilities. In determining the
eligibility for tax credits and in allocating the available
certified cost pursuant to section 2 (1) of this 2010 Act among
facilities, the director shall subject facilities with higher
projected costs to closer scrutiny, shall compare projects of
similar costs against each other and may certify less than the
total cost of any facility based on this evaluation. The director
may employ criteria including the following factors as defined by
rule:
  (a) Technology-specific energy production standards;
  (b) Market sector;
  (c) Delivery of energy into existing distribution and
transmission network;

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  (d) Investment payback period;
  (e) Expected lifespan of the facility;
  (f) Potential for long-term viability;
  (g) Environmental standards established by the director;
  (h) Potential to create and sustain new jobs;
  (i) Projected siting in a location that is geographically or
socioeconomically advantageous;
  (j) Demonstrated readiness to begin implementation;
  (k) Amount and quality of energy generated;
  (L) Strength of business plan;
  (m) Provision of operations and maintenance data, with
appropriate protections for trade secrets consistent with ORS
chapter 192;
  (n) Connection to existing infrastructure;
  (o) Third-party review of the applicant's business plan; or
  (p) Data related to projected return on investment. + }
  SECTION 7. ORS 469.197 is amended to read:
  469.197. The State Department of Energy shall by rule establish
all of the following criteria:
  (1) For a high-performance home, the minimum design and
construction standards that must be met or exceeded for a
dwelling to be considered a high-performance home, including but
not limited to standards for the building envelope, HVAC systems,
lighting, appliances, water conservation measures, use of
sustainable building materials and on-site renewable energy
systems. The criteria must also establish the minimum reduction
in estimated net purchased energy that a dwelling must achieve to
be considered a high-performance home.
  (2) For a homebuilder-installed renewable energy system, the
minimum performance and efficiency standards that a solar
electric system, solar domestic water heating system, passive
solar space heating system, wind power system, geothermal heating
system, fuel cell system or other system utilizing renewable
resources must achieve to be considered a homebuilder-installed
renewable energy system.
  (3) For a high-efficiency combined heat and power facility, the
minimum performance and efficiency standards that the facility
must achieve to be considered a high-efficiency combined heat and
power facility.
  (4) For a renewable energy resource equipment manufacturing
facility:
  (a) Standards relating to the type of equipment, machinery or
other products being manufactured and related performance and
efficiency standards applicable to the manufactured products;
  (b) Standards, consistent with the definitions in ORS 469.185,
relating to what constitutes a single renewable energy resource
equipment manufacturing facility   { - and what constitutes
property that is not included within a renewable energy resource
equipment manufacturing facility; - }   { + that include:
  (A) Standards establishing what constitutes property that is
not included within a renewable energy resource equipment
manufacturing facility; and
  (B) The consideration of such factors as phases of development,
expansion of or additions to existing facilities or product
lines, increased production and number of jobs created or
maintained by an applicant; + }
  (c) Standards relating to the minimum level of increased
employment in Oregon for a renewable energy resource equipment
manufacturing facility;

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  (d) Standards relating to indicators of financial viability of
an applicant for preliminary certification under ORS 469.205;
  (e) Standards relating to the likelihood of long-term  { +
operation and + } success of a renewable energy resource
equipment manufacturing facility; and
  (f) Standards relating to the likelihood that an applicant
seeking preliminary certification of a renewable energy resource
equipment manufacturing facility will base decisions to locate or
expand a facility in Oregon on the allowance of a tax credit
under ORS 315.354.
   { +  (5) For a facility using or producing renewable energy
resources, standards relating to criteria required under ORS
469.195 (2).
  (6) Standards, consistent with the definitions in ORS 469.185,
relating to what constitutes a single facility. + }
  SECTION 8. ORS 469.200 is amended to read:
  469.200. (1) For a facility, the total cost that receives a
preliminary certification from the Director of the State
Department of Energy for tax credits in any calendar year may not
exceed:
  (a) $20 million, in the case of a facility using or producing
renewable energy resources or a high-efficiency combined heat and
power facility;
  (b) $40 million, in the case of a renewable energy resource
equipment manufacturing facility { +  other than a facility used
to manufacture electric vehicles + };   { - or - }
   { +  (c) Five percent of the total cost of the facility but no
more than $7 million, in the case of a facility that uses or
produces renewable energy resources and is a wind facility with
an installed capacity of more than 10 megawatts;
  (d) $2.5 million in the case of a renewable energy resource
equipment manufacturing facility used to manufacture electric
vehicles; or + }
    { - (c) - }   { + (e) + } $10 million, in the case of any
other facility.
  (2) Notwithstanding subsection (1)(b) of this section, the
director may certify a lesser amount than the total cost of the
renewable energy resource equipment manufacturing facility, or
need not certify any amount, if any of the following conditions
exist at the time of preliminary certification:
  (a) The last quarterly economic and revenue forecast for a
biennium indicates that moneys available to the General Fund for
the next biennium will be at least three percent less than
appropriations from the General Fund for the current biennium;
  (b) A quarterly economic and revenue forecast projects that
revenues in the General Fund in the current biennium will be at
least two percent below what revenues were projected to be in the
revenue forecast on which the legislatively adopted budget, as
defined in ORS 291.002, for the current biennium was based;
  (c) The proposed facility, in the estimate of the director,
does not possess the likelihood of success established in
criteria of success under ORS 469.197 (4);
  (d) The proposed facility, in the estimate of the director, is
not likely to increase employment in Oregon to the minimum
threshold level established in rules under ORS 469.197 (4);
  (e) The applicant lacks the minimum level of financial
viability established in rules adopted under ORS 469.197 (4);
 { - or - }
  (f) The applicant is unlikely, in the estimate of the director,
to base a decision to relocate or expand a facility in Oregon on

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allowance of the tax credit, given the criteria established in
rules under ORS 469.197 (4)  { - . - }  { + ; or
  (g) During a time period listed in section 2 (4) of this 2010
Act, the director receives applications for preliminary
certification with a total amount of potential tax credits in
excess of the limitation for the time period. + }
  (3) The director shall determine the dollar amount certified
for any facility and the priority between applications for
certification based upon the criteria contained in ORS 469.185 to
469.225 and applicable rules and standards adopted under ORS
469.185 to 469.225. The director may consider the status of a
facility as a research, development or demonstration facility of
new renewable resource generating and conservation technologies
or a qualified transit pass contract in the determination.
  SECTION 9. ORS 469.200, as amended by section 8 of this 2010
Act, is amended to read:
  469.200. (1) For a facility, the total cost that receives a
preliminary certification from the Director of the State
Department of Energy for tax credits in any calendar year may not
exceed:
  (a) $20 million, in the case of a facility using or producing
renewable energy resources or a high-efficiency combined heat and
power facility;
  (b) $40 million, in the case of a renewable energy resource
equipment manufacturing facility other than a facility used to
manufacture electric vehicles;
  (c) Five percent of the total cost of the facility but no more
than   { - $7 million - }  { +  $5 million + }, in the case of a
facility that uses or produces renewable energy resources and is
a wind facility with an installed capacity of more than 10
megawatts;
  (d) $2.5 million in the case of a renewable energy resource
equipment manufacturing facility used to manufacture electric
vehicles; or
  (e) $10 million, in the case of any other facility.
  (2) Notwithstanding subsection (1)(b) of this section, the
director may certify a lesser amount than the total cost of the
renewable energy resource equipment manufacturing facility, or
need not certify any amount, if any of the following conditions
exist at the time of preliminary certification:
  (a) The last quarterly economic and revenue forecast for a
biennium indicates that moneys available to the General Fund for
the next biennium will be at least three percent less than
appropriations from the General Fund for the current biennium;
  (b) A quarterly economic and revenue forecast projects that
revenues in the General Fund in the current biennium will be at
least two percent below what revenues were projected to be in the
revenue forecast on which the legislatively adopted budget, as
defined in ORS 291.002, for the current biennium was based;
  (c) The proposed facility, in the estimate of the director,
does not possess the likelihood of success established in
criteria of success under ORS 469.197 (4);
  (d) The proposed facility, in the estimate of the director, is
not likely to increase employment in Oregon to the minimum
threshold level established in rules under ORS 469.197 (4);
  (e) The applicant lacks the minimum level of financial
viability established in rules adopted under ORS 469.197 (4);
  (f) The applicant is unlikely, in the estimate of the director,
to base a decision to relocate or expand a facility in Oregon on

Enrolled House Bill 3680 (HB 3680-B)                      Page 10

allowance of the tax credit, given the criteria established in
rules under ORS 469.197 (4); or
  (g) During a time period listed in section 2 (4) of this 2010
Act, the director receives applications for preliminary
certification with a total amount of potential tax credits in
excess of the limitation for the time period.
  (3) The director shall determine the dollar amount certified
for any facility and the priority between applications for
certification based upon the criteria contained in ORS 469.185 to
469.225 and applicable rules and standards adopted under ORS
469.185 to 469.225. The director may consider the status of a
facility as a research, development or demonstration facility of
new renewable resource generating and conservation technologies
or a qualified transit pass contract in the determination.
  SECTION 9a. ORS 469.200, as amended by sections 8 and 9 of this
2010 Act, is amended to read:
  469.200. (1) For a facility, the total cost that receives a
preliminary certification from the Director of the State
Department of Energy for tax credits in any calendar year may not
exceed:
  (a) $20 million, in the case of a facility using or producing
renewable energy resources or a high-efficiency combined heat and
power facility;
  (b) $40 million, in the case of a renewable energy resource
equipment manufacturing facility other than a facility used to
manufacture electric vehicles;
  (c) Five percent of the total cost of the facility but no more
than   { - $5 million - }  { +  $3 million + }, in the case of a
facility that uses or produces renewable energy resources and is
a wind facility with an installed capacity of more than 10
megawatts;
  (d) $2.5 million in the case of a renewable energy resource
equipment manufacturing facility used to manufacture electric
vehicles; or
  (e) $10 million, in the case of any other facility.
  (2) Notwithstanding subsection (1)(b) of this section, the
director may certify a lesser amount than the total cost of the
renewable energy resource equipment manufacturing facility, or
need not certify any amount, if any of the following conditions
exist at the time of preliminary certification:
  (a) The last quarterly economic and revenue forecast for a
biennium indicates that moneys available to the General Fund for
the next biennium will be at least three percent less than
appropriations from the General Fund for the current biennium;
  (b) A quarterly economic and revenue forecast projects that
revenues in the General Fund in the current biennium will be at
least two percent below what revenues were projected to be in the
revenue forecast on which the legislatively adopted budget, as
defined in ORS 291.002, for the current biennium was based;
  (c) The proposed facility, in the estimate of the director,
does not possess the likelihood of success established in
criteria of success under ORS 469.197 (4);
  (d) The proposed facility, in the estimate of the director, is
not likely to increase employment in Oregon to the minimum
threshold level established in rules under ORS 469.197 (4);
  (e) The applicant lacks the minimum level of financial
viability established in rules adopted under ORS 469.197 (4);
  (f) The applicant is unlikely, in the estimate of the director,
to base a decision to relocate or expand a facility in Oregon on

Enrolled House Bill 3680 (HB 3680-B)                      Page 11

allowance of the tax credit, given the criteria established in
rules under ORS 469.197 (4); or
  (g) During a time period listed in section 2 (4) of this 2010
Act, the director receives applications for preliminary
certification with a total amount of potential tax credits in
excess of the limitation for the time period.
  (3) The director shall determine the dollar amount certified
for any facility and the priority between applications for
certification based upon the criteria contained in ORS 469.185 to
469.225 and applicable rules and standards adopted under ORS
469.185 to 469.225. The director may consider the status of a
facility as a research, development or demonstration facility of
new renewable resource generating and conservation technologies
or a qualified transit pass contract in the determination.
  SECTION 10. ORS 469.205 is amended to read:
  469.205. (1) Prior to erection, construction, installation or
acquisition of a proposed facility, any person may apply to the
State Department of Energy for preliminary certification under
ORS 469.210 if:
  (a) The erection, construction, installation or acquisition of
the facility is to be commenced on or after October 3, 1979;
  (b) The facility complies with the standards or rules adopted
by the Director of the State Department of Energy; and
  (c) The applicant meets one of the following criteria:
  (A) The applicant is a person to whom a tax credit has been
transferred; or
  (B) The applicant will be the owner or contract purchaser of
the facility at the time of erection, construction, installation
or acquisition of the proposed facility, and:
  (i) The applicant is the owner, contract purchaser or lessee of
a trade or business that plans to utilize the facility in
connection with Oregon property; or
  (ii) The applicant is the owner, contract purchaser or lessee
of a trade or business that plans to lease the facility to a
person who will utilize the facility in connection with Oregon
property.
  (2) An application for preliminary certification shall be made
in writing on a form prepared by the department and shall
contain:
  (a) A statement that the applicant or the lessee of the
applicant's facility:
  (A) Intends to convert from a purchased energy source to a
renewable energy resource;
  (B) Plans to acquire, construct or install a facility that will
use a renewable energy resource or solid waste instead of
electricity, petroleum or natural gas;
  (C) Plans to use a renewable energy resource in the generation
of electricity for sale or to replace an existing or proposed use
of an existing source of electricity;
  (D) Plans to acquire, construct or install a facility that
substantially reduces the consumption of purchased energy;
  (E) Plans to acquire, construct or install equipment for
recycling as defined in ORS 469.185 (11);
  (F) Plans to acquire an alternative fuel vehicle or to convert
an existing vehicle to an alternative fuel vehicle;
  (G) Plans to acquire, construct or install a facility necessary
to operate alternative fuel vehicles;
  (H) Plans to acquire transit passes for use by individuals
specified by the applicant;

Enrolled House Bill 3680 (HB 3680-B)                      Page 12

  (I) Plans to acquire, construct or install a transportation
facility;
  (J) Plans to acquire a sustainable building practices facility;
  (K) Plans to acquire a car sharing facility and operate a car
sharing program;
  (L) Plans to construct a high-efficiency combined heat and
power facility;
  (M) Is a homebuilder and plans to construct a
homebuilder-installed renewable energy system;
  (N) Is a homebuilder and plans to construct a high-performance
home; or
  (O) Plans to acquire, construct or install a renewable energy
resource equipment manufacturing facility.
  (b) A detailed description of the proposed facility and its
operation and information showing that the facility will operate
as represented in the application  { + and remain in operation
for at least five years, unless the director by rule specifies a
shorter period of operation + }.
  (c) Information on the amount by which consumption of
electricity, petroleum or natural gas by the applicant or the
lessee of the applicant's facility will be reduced, and on the
amount of energy that will be produced for sale, as the result of
using the facility or, if applicable, information about the
expected level of sustainable building practices facility
performance.
  (d) The projected cost of the facility.
  (e) If applicable, a copy of the proposed qualified transit
pass contract, transportation services contract or contract for
lease of parking spaces for a car sharing facility.
   { +  (f) Information on the amount and type of jobs that will
be created, the number of jobs sustained throughout the
construction, installation and operation of the facility and the
benefits of the facility with regard to overall economic activity
in this state.
  (g) Information demonstrating that the proposed facility will
comply with applicable state and local laws and regulations and
obtain required licenses and permits.
  (h) Information relating to the criteria required under ORS
469.195. + }
    { - (f) - }   { + (i) + } Any other information the director
considers necessary to determine whether the proposed facility is
in accordance with the provisions of ORS 469.185 to 469.225, and
any applicable rules or standards adopted by the director.
  (3) An application for preliminary certification shall be
accompanied by a fee established under ORS 469.217. The director
may refund  { + all or a portion of + } the fee if the
application for certification is rejected.
  (4) The director may allow an applicant to file the preliminary
application  { + or a reapplication under subsection (6) of this
section + } after the start of erection, construction,
installation or acquisition of the facility if the director
finds:
  (a) Filing the application before the start of erection,
construction, installation or acquisition is inappropriate
because special circumstances render filing earlier unreasonable;
and
  (b) The facility would otherwise qualify for tax credit
certification pursuant to ORS 469.185 to 469.225.

Enrolled House Bill 3680 (HB 3680-B)                      Page 13

  (5) A preliminary certification of a sustainable building
practices facility shall be applied for and issued as prescribed
by the department by rule.
  (6) A preliminary certification of a renewable energy resource
equipment manufacturing facility shall remain valid for a period
of five calendar years after the date the preliminary
certification is issued by the director.  { + For all other
facilities, a preliminary certification shall remain valid for a
period of three calendar years after the date the preliminary
certification is issued by the director. The director may extend
the three-year period for two additional calendar years upon
reapplication and submission of the fee required by this
section. + }
  SECTION 11. ORS 469.210 is amended to read:
  469.210. (1) The Director of the State Department of Energy may
require the submission of plans, specifications and contract
terms, and after examination thereof, may request corrections and
revisions of the plans, specifications and terms.
  (2) If the director determines that the proposed acquisition,
erection, construction or installation is technically feasible
and should operate in accordance with the representations made by
the applicant, and is in accordance with the provisions of ORS
469.185 to 469.225 and any applicable rules or standards adopted
by the director, the director shall issue a preliminary
certificate approving the acquisition, erection, construction or
installation of the facility.  { + The certificate shall indicate
the potential amount of tax credit allowable and shall list any
conditions for claiming the credit.
  (3) + }   { - If - }  The director { +  may issue an order
altering, conditioning, suspending or denying preliminary
certification if the director + } determines that { + :
  (a) + } The acquisition, erection, construction or installation
does not comply with the provisions of ORS 469.185 to 469.225 and
applicable rules and standards  { - , the director shall issue an
order denying certification. - }  { + ;
  (b) The applicant has previously received preliminary or final
certification for the same costs;
  (c) The applicant is unable to demonstrate that the facility
would be economically viable without the allowance of additional
credits under ORS 315.354;
  (d) The applicant was directly involved in an act for which the
director has levied civil penalties or revoked, canceled or
suspended any certification under ORS 469.185 to 469.225; or
  (e) The applicant or the principal, director, officer, owner,
majority shareholder or member of the applicant, or the manager
of the applicant if the applicant is a limited liability company,
is in arrears for payments owed to any government agency while in
any capacity with direct or indirect control over a business. + }
  SECTION 12. ORS 469.215 is amended to read:
  469.215. (1) A final certification may not be issued by the
Director of the State Department of Energy under this section
unless { + :
  (a) + } The facility was acquired, erected, constructed or
installed under a preliminary certificate of approval issued
under ORS 469.210   { - and - }  { + ;
  (b) The applicant demonstrates the ability to provide the
information required by ORS 469.205 (2) and does not violate any
condition that may be imposed as described in ORS 469.210 (3);
and

Enrolled House Bill 3680 (HB 3680-B)                      Page 14

  (c) The facility was acquired, erected, constructed or
installed + } in accordance with the applicable provisions of ORS
469.185 to 469.225 and any applicable rules or standards adopted
by the director.
  (2) Any person may apply to the State Department of Energy for
final certification of a facility:
  (a) If the department issued preliminary certification for the
facility under ORS 469.210; and
  (b)(A) After completion of erection, construction, installation
or acquisition of the proposed facility or, if the facility is a
qualified transit pass contract, after entering into the contract
with a transportation provider; or
  (B) After transfer of the facility, as provided in ORS 315.354
(5).
  (3) An application for final certification shall be made in
writing on a form prepared by the department and shall contain:
  (a) A statement that the conditions of the preliminary
certification have been complied with;
  (b) The actual cost of the facility certified to by a certified
public accountant who is not an employee of the applicant or, if
the actual cost of the facility is less than $50,000, copies of
receipts for purchase and installation of the facility;
   { +  (c) The amount of the credit under ORS 315.354 that is to
be claimed;
  (d) The number and type of jobs created by the operation and
maintenance of the facility over the five-year period beginning
with the year of preliminary certification under ORS 469.210 and
information on the benefits of the facility with regard to
overall economic activity in this state;
  (e) Information sufficient to demonstrate that the facility
will remain in operation for at least five years, unless the
director by rule specifies a shorter period of operation;
  (f) Information sufficient to demonstrate, in the case of a
research, development or demonstration facility that is not in
operation, that the applicant has made reasonable efforts to make
the facility operable and meet the requirements of the
preliminary certificate;
  (g) Documentation of compliance with applicable state and local
laws and regulations and licensing and permitting requirements as
defined by the director; and + }
    { - (c) A statement that the facility is in operation or, if
not in operation, that the applicant has made every reasonable
effort to make the facility operable; and - }
    { - (d) - }   { + (h) + } Any other information determined by
the director to be necessary prior to issuance of a final
certificate, including inspection of the facility by the
department.
  (4) The director shall act on an application for certification
before the 60th day after the filing of the application under
this section. The director may issue the certificate { + , or
certificates for efficient truck technology within a
transportation facility, + } together with such conditions as the
director determines are appropriate to promote the purposes of
ORS 315.354, 469.185 to 469.225 and 469.878. If the applicant is
an entity subject to regulation by the Public Utility Commission,
the director may consult with the commission prior to issuance of
the certificate. The action of the director shall include
certification of the actual cost of the facility.   { - However,
the director may not certify an amount for tax credit purposes
which is more than 10 percent in excess of the amount approved in

Enrolled House Bill 3680 (HB 3680-B)                      Page 15

the preliminary certificate issued for the facility. - }
 { + However, the director may not certify an amount for tax
credit purposes that is more than the amount approved in the
preliminary certificate issued for the facility. + }
  (5) If the director rejects an application for final
certification, or certifies a lesser actual cost of the facility
than was claimed in the application, the director shall send to
the applicant written notice of the action, together with a
statement of the findings and reasons therefor, by certified
mail, before the 60th day after the filing of the application.
Failure of the director to act constitutes rejection of the
application.
  (6) Upon approval of an application for final certification of
a facility, the director shall certify the facility. Each
certificate shall bear a separate serial number for each device.
Where one or more devices constitute an operational unit, the
director may certify the operational unit under one certificate.
   { +  (7) The director may establish by rule timelines and
intermediate deadlines for submission of application
materials. + }
  SECTION 13. ORS 469.220 is amended to read:
  469.220.  { + (1) + } A certificate issued under ORS 469.215 is
required for purposes of obtaining tax credits in accordance with
ORS 315.354. Such certification shall be granted for a period not
to exceed five years. The five-year period shall begin with the
tax year of the applicant during which   { - a certified facility
is placed into operation, or the year the facility is certified
under ORS 469.215, at the election of the applicant - }   { + the
completed application for final certification of the facility
under ORS 469.215 is received by the State Department of
Energy + }.
   { +  (2) Notwithstanding subsection (1) of this section, for a
facility using or producing renewable energy resources with a
certified cost that exceeds $10 million and that receives final
certification under ORS 469.215 after January 1, 2010, the
five-year period shall begin with the tax year immediately
following the tax year during which the completed application for
final certification of the facility under ORS 469.215 is received
by the department. + }
  SECTION 14. ORS 469.225 is amended to read:
  469.225. (1) Under the procedures for a contested case under
ORS chapter 183, the Director of the State Department of Energy
may order the  { + suspension or + } revocation of the
certificate issued under ORS 469.215 if the director finds that:
  (a) The certification was obtained by fraud or
misrepresentation;   { - or - }
  (b) The holder of the certificate  { + or the operator of the
facility + } has failed to construct or operate the facility in
compliance with the plans, specifications and procedures in the
certificate  { - . - }  { + ; or
  (c) The facility is no longer in operation. + }
  (2) As soon as the order of revocation under this section
becomes final, the director shall notify the Department of
Revenue { + , the facility owner and any transferee under ORS
469.206 + } of the order of revocation.
  (3) If the certificate is issued for a facility that is not a
renewable energy resource equipment manufacturing facility and is
ordered revoked pursuant to subsection (1)(a) of this section,
all prior tax credits provided to the holder of the certificate
by virtue of the certificate shall be forfeited and upon

Enrolled House Bill 3680 (HB 3680-B)                      Page 16

notification under subsection (2) of this section the Department
of Revenue immediately shall proceed to collect those taxes not
paid by the certificate holder as a result of the tax credits
provided to the holder under ORS 315.354.
  (4) If the certificate is issued for a renewable energy
resource equipment manufacturing facility and is ordered
 { + suspended or + } revoked, upon notification under subsection
(2) of this section the Department of Revenue immediately shall
proceed to collect:
  (a) In the case where no portion of a certificate has been
transferred under ORS 469.206, those taxes not paid by the
certificate holder as a result of the tax credits provided to the
certificate holder under ORS 315.354, from the certificate holder
or a successor in interest to the business interests of the
certificate holder. All prior tax credits provided to the holder
of the certificate by virtue of the certificate shall be
forfeited.
  (b) In the case where all or a portion of a certificate has
been transferred under ORS 469.206, the maximum theoretical
amount of the tax credits allowable under ORS 315.354, from the
transferor.
  (5)(a) The Department of Revenue shall have the benefit of all
laws of this state pertaining to the collection of income and
excise taxes and may proceed to collect the amounts described in
subsection (3) or (4) of this section from the person that
obtained certification from the State Department of Energy or any
successor in interest to the business interests of that person.
No assessment of tax shall be necessary and no statute of
limitation shall preclude the collection of taxes described in
this subsection.
  (b) For purposes of this subsection, a lender, bankruptcy
trustee or other person that acquires an interest through
bankruptcy or through foreclosure of a security interest is not
considered to be a successor in interest to the business
interests of the person that obtained certification from the
State Department of Energy.
  (6) If the certificate is issued for a facility that is not a
renewable energy resource equipment manufacturing facility and is
ordered revoked pursuant to subsection (1)(b) of this section,
the certificate holder shall be denied any further relief under
ORS 315.354 in connection with the facility from and after the
date that the order of revocation becomes final.
  (7) Notwithstanding subsections (1) to (6) of this section, a
certificate or portion of a certificate held by a transferee
under ORS 469.206 may not be considered revoked for purposes of
the transferee, the tax credit allowable to the transferee under
ORS 315.354 may not be reduced and a transferee is not liable
under subsections (3) to (5) of this section.
  SECTION 15. ORS 192.502 is amended to read:
  192.502. The following public records are exempt from
disclosure under ORS 192.410 to 192.505:
  (1) Communications within a public body or between public
bodies of an advisory nature to the extent that they cover other
than purely factual materials and are preliminary to any final
agency determination of policy or action. This exemption shall
not apply unless the public body shows that in the particular
instance the public interest in encouraging frank communication
between officials and employees of public bodies clearly
outweighs the public interest in disclosure.

Enrolled House Bill 3680 (HB 3680-B)                      Page 17

  (2) Information of a personal nature such as but not limited to
that kept in a personal, medical or similar file, if public
disclosure would constitute an unreasonable invasion of privacy,
unless the public interest by clear and convincing evidence
requires disclosure in the particular instance. The party seeking
disclosure shall have the burden of showing that public
disclosure would not constitute an unreasonable invasion of
privacy.
  (3) Public body employee or volunteer addresses, Social
Security numbers, dates of birth and telephone numbers contained
in personnel records maintained by the public body that is the
employer or the recipient of volunteer services. This exemption:
  (a) Does not apply to the addresses, dates of birth and
telephone numbers of employees or volunteers who are elected
officials, except that a judge or district attorney subject to
election may seek to exempt the judge's or district attorney's
address or telephone number, or both, under the terms of ORS
192.445;
  (b) Does not apply to employees or volunteers to the extent
that the party seeking disclosure shows by clear and convincing
evidence that the public interest requires disclosure in a
particular instance;
  (c) Does not apply to a substitute teacher as defined in ORS
342.815 when requested by a professional education association of
which the substitute teacher may be a member; and
  (d) Does not relieve a public employer of any duty under ORS
243.650 to 243.782.
  (4) Information submitted to a public body in confidence and
not otherwise required by law to be submitted, where such
information should reasonably be considered confidential, the
public body has obliged itself in good faith not to disclose the
information, and when the public interest would suffer by the
disclosure.
  (5) Information or records of the Department of Corrections,
including the State Board of Parole and Post-Prison Supervision,
to the extent that disclosure would interfere with the
rehabilitation of a person in custody of the department or
substantially prejudice or prevent the carrying out of the
functions of the department, if the public interest in
confidentiality clearly outweighs the public interest in
disclosure.
  (6) Records, reports and other information received or compiled
by the Director of the Department of Consumer and Business
Services in the administration of ORS chapters 723 and 725 not
otherwise required by law to be made public, to the extent that
the interests of lending institutions, their officers, employees
and customers in preserving the confidentiality of such
information outweighs the public interest in disclosure.
  (7) Reports made to or filed with the court under ORS 137.077
or 137.530.
  (8) Any public records or information the disclosure of which
is prohibited by federal law or regulations.
  (9)(a) Public records or information the disclosure of which is
prohibited or restricted or otherwise made confidential or
privileged under Oregon law.
  (b) Subject to ORS 192.423, paragraph (a) of this subsection
does not apply to factual information compiled in a public record
when:
  (A) The basis for the claim of exemption is ORS 40.225;

Enrolled House Bill 3680 (HB 3680-B)                      Page 18

  (B) The factual information is not prohibited from disclosure
under any applicable state or federal law, regulation or court
order and is not otherwise exempt from disclosure under ORS
192.410 to 192.505;
  (C) The factual information was compiled by or at the direction
of an attorney as part of an investigation on behalf of the
public body in response to information of possible wrongdoing by
the public body;
  (D) The factual information was not compiled in preparation for
litigation, arbitration or an administrative proceeding that was
reasonably likely to be initiated or that has been initiated by
or against the public body; and
  (E) The holder of the privilege under ORS 40.225 has made or
authorized a public statement characterizing or partially
disclosing the factual information compiled by or at the
attorney's direction.
  (10) Public records or information described in this section,
furnished by the public body originally compiling, preparing or
receiving them to any other public officer or public body in
connection with performance of the duties of the recipient, if
the considerations originally giving rise to the confidential or
exempt nature of the public records or information remain
applicable.
  (11) Records of the Energy Facility Siting Council concerning
the review or approval of security programs pursuant to ORS
469.530.
  (12) Employee and retiree address, telephone number and other
nonfinancial membership records and employee financial records
maintained by the Public Employees Retirement System pursuant to
ORS chapters 238 and 238A.
  (13) Records of or submitted to the State Treasurer, the Oregon
Investment Council or the agents of the treasurer or the council
relating to active or proposed publicly traded investments under
ORS chapter 293, including but not limited to records regarding
the acquisition, exchange or liquidation of the investments. For
the purposes of this subsection:
  (a) The exemption does not apply to:
  (A) Information in investment records solely related to the
amount paid directly into an investment by, or returned from the
investment directly to, the treasurer or council; or
  (B) The identity of the entity to which the amount was paid
directly or from which the amount was received directly.
  (b) An investment in a publicly traded investment is no longer
active when acquisition, exchange or liquidation of the
investment has been concluded.
  (14)(a) Records of or submitted to the State Treasurer, the
Oregon Investment Council, the Oregon Growth Account Board or the
agents of the treasurer, council or board relating to actual or
proposed investments under ORS chapter 293 or 348 in a privately
placed investment fund or a private asset including but not
limited to records regarding the solicitation, acquisition,
deployment, exchange or liquidation of the investments including
but not limited to:
  (A) Due diligence materials that are proprietary to an
investment fund, to an asset ownership or to their respective
investment vehicles.
  (B) Financial statements of an investment fund, an asset
ownership or their respective investment vehicles.
  (C) Meeting materials of an investment fund, an asset ownership
or their respective investment vehicles.

Enrolled House Bill 3680 (HB 3680-B)                      Page 19

  (D) Records containing information regarding the portfolio
positions in which an investment fund, an asset ownership or
their respective investment vehicles invest.
  (E) Capital call and distribution notices of an investment
fund, an asset ownership or their respective investment vehicles.
  (F) Investment agreements and related documents.
  (b) The exemption under this subsection does not apply to:
  (A) The name, address and vintage year of each privately placed
investment fund.
  (B) The dollar amount of the commitment made to each privately
placed investment fund since inception of the fund.
  (C) The dollar amount of cash contributions made to each
privately placed investment fund since inception of the fund.
  (D) The dollar amount, on a fiscal year-end basis, of cash
distributions received by the State Treasurer, the Oregon
Investment Council, the Oregon Growth Account Board or the agents
of the treasurer, council or board from each privately placed
investment fund.
  (E) The dollar amount, on a fiscal year-end basis, of the
remaining value of assets in a privately placed investment fund
attributable to an investment by the State Treasurer, the Oregon
Investment Council, the Oregon Growth Account Board or the agents
of the treasurer, council or board.
  (F) The net internal rate of return of each privately placed
investment fund since inception of the fund.
  (G) The investment multiple of each privately placed investment
fund since inception of the fund.
  (H) The dollar amount of the total management fees and costs
paid on an annual fiscal year-end basis to each privately placed
investment fund.
  (I) The dollar amount of cash profit received from each
privately placed investment fund on a fiscal year-end basis.
  (15) The monthly reports prepared and submitted under ORS
293.761 and 293.766 concerning the Public Employees Retirement
Fund and the Industrial Accident Fund may be uniformly treated as
exempt from disclosure for a period of up to 90 days after the
end of the calendar quarter.
  (16) Reports of unclaimed property filed by the holders of such
property to the extent permitted by ORS 98.352.
  (17) { + (a) + } The following records, communications and
information submitted to the Oregon Business Development
Commission, the Oregon Business Development Department, the State
Department of Agriculture, the Oregon Growth Account Board, the
Port of Portland or other ports, as defined in ORS 777.005, by
applicants for investment funds, loans or services including, but
not limited to, those described in ORS 285A.224:
    { - (a) - }  { +  (A) + } Personal financial statements.
    { - (b) - }  { +  (B) + } Financial statements of applicants.
    { - (c) - }  { +  (C) + } Customer lists.
    { - (d) - }  { +  (D) + } Information of an applicant
pertaining to litigation to which the applicant is a party if the
complaint has been filed, or if the complaint has not been filed,
if the applicant shows that such litigation is reasonably likely
to occur; this exemption does not apply to litigation which has
been concluded, and nothing in this   { - paragraph - }  { +
subparagraph + } shall limit any right or opportunity granted by
discovery or deposition statutes to a party to litigation or
potential litigation.
    { - (e) - }  { +  (E) + } Production, sales and cost data.

Enrolled House Bill 3680 (HB 3680-B)                      Page 20

    { - (f) - }  { +  (F) + } Marketing strategy information that
relates to applicant's plan to address specific markets and
applicant's strategy regarding specific competitors.
   { +  (b) The following records, communications and information
submitted to the State Department of Energy by applicants for tax
credits:
  (A) Personal financial statements.
  (B) Financial statements of applicants.
  (C) Customer lists.
  (D) Information of an applicant pertaining to litigation to
which the applicant is a party if the complaint has been filed,
or if the complaint has not been filed, if the applicant shows
that such litigation is reasonably likely to occur; this
exemption does not apply to litigation which has been concluded,
and nothing in this subparagraph shall limit any right or
opportunity granted by discovery or deposition statutes to a
party to litigation or potential litigation.
  (E) Production, sales and cost data.
  (F) Marketing strategy information that relates to applicant's
plan to address specific markets and applicant's strategy
regarding specific competitors. + }
  (18) Records, reports or returns submitted by private concerns
or enterprises required by law to be submitted to or inspected by
a governmental body to allow it to determine the amount of any
transient lodging tax payable and the amounts of such tax payable
or paid, to the extent that such information is in a form which
would permit identification of the individual concern or
enterprise. Nothing in this subsection shall limit the use which
can be made of such information for regulatory purposes or its
admissibility in any enforcement proceedings. The public body
shall notify the taxpayer of the delinquency immediately by
certified mail. However, in the event that the payment or
delivery of transient lodging taxes otherwise due to a public
body is delinquent by over 60 days, the public body shall
disclose, upon the request of any person, the following
information:
  (a) The identity of the individual concern or enterprise that
is delinquent over 60 days in the payment or delivery of the
taxes.
  (b) The period for which the taxes are delinquent.
  (c) The actual, or estimated, amount of the delinquency.
  (19) All information supplied by a person under ORS 151.485 for
the purpose of requesting appointed counsel, and all information
supplied to the court from whatever source for the purpose of
verifying the financial eligibility of a person pursuant to ORS
151.485.
  (20) Workers' compensation claim records of the Department of
Consumer and Business Services, except in accordance with rules
adopted by the Director of the Department of Consumer and
Business Services, in any of the following circumstances:
  (a) When necessary for insurers, self-insured employers and
third party claim administrators to process workers' compensation
claims.
  (b) When necessary for the director, other governmental
agencies of this state or the United States to carry out their
duties, functions or powers.
  (c) When the disclosure is made in such a manner that the
disclosed information cannot be used to identify any worker who
is the subject of a claim.

Enrolled House Bill 3680 (HB 3680-B)                      Page 21

  (d) When a worker or the worker's representative requests
review of the worker's claim record.
  (21) Sensitive business records or financial or commercial
information of the Oregon Health and Science University that is
not customarily provided to business competitors.
  (22) Records of Oregon Health and Science University regarding
candidates for the position of president of the university.
  (23) The records of a library, including:
  (a) Circulation records, showing use of specific library
material by a named person;
  (b) The name of a library patron together with the address or
telephone number of the patron; and
  (c) The electronic mail address of a patron.
  (24) The following records, communications and information
obtained by the Housing and Community Services Department in
connection with the department's monitoring or administration of
financial assistance or of housing or other developments:
  (a) Personal and corporate financial statements and
information, including tax returns.
  (b) Credit reports.
  (c) Project appraisals.
  (d) Market studies and analyses.
  (e) Articles of incorporation, partnership agreements and
operating agreements.
  (f) Commitment letters.
  (g) Project pro forma statements.
  (h) Project cost certifications and cost data.
  (i) Audits.
  (j) Project tenant correspondence.
  (k) Personal information about a tenant.
  (L) Housing assistance payments.
  (25) Raster geographic information system (GIS) digital
databases, provided by private forestland owners or their
representatives, voluntarily and in confidence to the State
Forestry Department, that is not otherwise required by law to be
submitted.
  (26) Sensitive business, commercial or financial information
furnished to or developed by a public body engaged in the
business of providing electricity or electricity services, if the
information is directly related to a transaction described in ORS
261.348, or if the information is directly related to a bid,
proposal or negotiations for the sale or purchase of electricity
or electricity services, and disclosure of the information would
cause a competitive disadvantage for the public body or its
retail electricity customers. This subsection does not apply to
cost-of-service studies used in the development or review of
generally applicable rate schedules.
  (27) Sensitive business, commercial or financial information
furnished to or developed by the City of Klamath Falls, acting
solely in connection with the ownership and operation of the
Klamath Cogeneration Project, if the information is directly
related to a transaction described in ORS 225.085 and disclosure
of the information would cause a competitive disadvantage for the
Klamath Cogeneration Project. This subsection does not apply to
cost-of-service studies used in the development or review of
generally applicable rate schedules.
  (28) Personally identifiable information about customers of a
municipal electric utility or a people's utility district or the
names, dates of birth, driver license numbers, telephone numbers,
electronic mail addresses or Social Security numbers of customers

Enrolled House Bill 3680 (HB 3680-B)                      Page 22

who receive water, sewer or storm drain services from a public
body as defined in ORS 174.109. The utility or district may
release personally identifiable information about a customer, and
a public body providing water, sewer or storm drain services may
release the name, date of birth, driver license number, telephone
number, electronic mail address or Social Security number of a
customer, if the customer consents in writing or electronically,
if the disclosure is necessary for the utility, district or other
public body to render services to the customer, if the disclosure
is required pursuant to a court order or if the disclosure is
otherwise required by federal or state law. The utility, district
or other public body may charge as appropriate for the costs of
providing such information. The utility, district or other public
body may make customer records available to third party credit
agencies on a regular basis in connection with the establishment
and management of customer accounts or in the event such accounts
are delinquent.
  (29) A record of the street and number of an employee's address
submitted to a special district to obtain assistance in promoting
an alternative to single occupant motor vehicle transportation.
  (30) Sensitive business records, capital development plans or
financial or commercial information of Oregon Corrections
Enterprises that is not customarily provided to business
competitors.
  (31) Documents, materials or other information submitted to the
Director of the Department of Consumer and Business Services in
confidence by a state, federal, foreign or international
regulatory or law enforcement agency or by the National
Association of Insurance Commissioners, its affiliates or
subsidiaries under ORS 86A.095 to 86A.198, 86A.990, 86A.992,
697.005 to 697.095, 697.602 to 697.842, 705.137, 717.200 to
717.320, 717.900 or 717.905, ORS chapter 59, 723, 725 or 726, the
Bank Act or the Insurance Code when:
  (a) The document, material or other information is received
upon notice or with an understanding that it is confidential or
privileged under the laws of the jurisdiction that is the source
of the document, material or other information; and
  (b) The director has obligated the Department of Consumer and
Business Services not to disclose the document, material or other
information.
  (32) A county elections security plan developed and filed under
ORS 254.074.
  (33) Information about review or approval of programs relating
to the security of:
  (a) Generation, storage or conveyance of:
  (A) Electricity;
  (B) Gas in liquefied or gaseous form;
  (C) Hazardous substances as defined in ORS 453.005 (7)(a), (b)
and (d);
  (D) Petroleum products;
  (E) Sewage; or
  (F) Water.
  (b) Telecommunication systems, including cellular, wireless or
radio systems.
  (c) Data transmissions by whatever means provided.
  (34) The information specified in ORS 25.020 (8) if the Chief
Justice of the Supreme Court designates the information as
confidential by rule under ORS 1.002.
  (35)(a) Employer account records of the State Accident
Insurance Fund Corporation.

Enrolled House Bill 3680 (HB 3680-B)                      Page 23

  (b) As used in this subsection, 'employer account records '
means all records maintained in any form that are specifically
related to the account of any employer insured, previously
insured or under consideration to be insured by the State
Accident Insurance Fund Corporation and any information obtained
or developed by the corporation in connection with providing,
offering to provide or declining to provide insurance to a
specific employer. 'Employer account records' includes, but is
not limited to, an employer's payroll records, premium payment
history, payroll classifications, employee names and
identification information, experience modification factors, loss
experience and dividend payment history.
  (c) The exemption provided by this subsection may not serve as
the basis for opposition to the discovery documents in litigation
pursuant to applicable rules of civil procedure.
  (36)(a) Claimant files of the State Accident Insurance Fund
Corporation.
  (b) As used in this subsection, 'claimant files' includes, but
is not limited to, all records held by the corporation pertaining
to a person who has made a claim, as defined in ORS 656.005, and
all records pertaining to such a claim.
  (c) The exemption provided by this subsection may not serve as
the basis for opposition to the discovery documents in litigation
pursuant to applicable rules of civil procedure.
  (37) Except as authorized by ORS 408.425, records that certify
or verify an individual's discharge or other separation from
military service.
  SECTION 16.  { + (1) Section 2 of this 2010 Act and the
amendments to ORS 315.357, 469.185, 469.195, 469.197, 469.205,
469.210 and 469.215 by sections 4 to 7 and 10 to 12 of this 2010
Act apply to preliminary certifications issued under ORS 469.210
on or after July 1, 2009.
  (2) The amendments to ORS 469.200 by section 8 of this 2010 Act
apply to preliminary certifications issued under ORS 469.210 on
or after January 1, 2010, and before January 1, 2011.
  (3) The amendments to ORS 469.200 by section 9 of this 2010 Act
apply to preliminary certifications issued under ORS 469.210 on
or after January 1, 2011, and before January 1, 2012.
  (4) The amendments to ORS 469.200 by section 9a of this 2010
Act apply to preliminary certifications issued under ORS 469.210
on or after January 1, 2012.
  (5) The amendments to ORS 469.220 by section 13 of this 2010
Act apply to final certifications issued under ORS 469.215 on or
after January 1, 2010.
  (6) The amendments to ORS 315.354 and 469.225 by sections 3 and
14 of this 2010 Act apply to tax years beginning on or after
January 1, 2009, and any tax year for which a taxpayer may file
an amended return or for which the Department of Revenue may
issue a notice of deficiency. + }
  SECTION 17.  { + Section 26, chapter 843, Oregon Laws 2007, is
repealed. + }
  SECTION 18. ORS 285C.050 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

Enrolled House Bill 3680 (HB 3680-B)                      Page 24

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) 'Modification' means modernization, renovation or
remodeling of an existing building, structure or real property
machinery or equipment.
  (13) '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.

Enrolled House Bill 3680 (HB 3680-B)                      Page 25

  (14) '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) '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.
  (16) 'Qualified property' means property described under ORS
285C.180.
  (17) '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) '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) '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;   { - or - }
   { +  (c) The tribal government and the cosponsoring city,
county or port, in the case of a reservation partnership zone;
or + }
    { - (c) - }   { + (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) 'Tax year' has the meaning given that term in ORS 308.007.
  (21) '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) 'Year' has the meaning given that term in ORS 308.007.
  SECTION 19. ORS 285C.090 is amended to read:
  285C.090. (1) A proposed enterprise zone must be located in a
local area in which:
  (a) Fifty percent or more of the households have incomes below
80 percent of the median income of this state, as defined by the
most recent federal decennial census;
  (b) The unemployment rate is at least 2.0 percentage points
greater than the comparable unemployment rate for this entire
state, as defined by the most recently available data published
or officially provided and verified by the United States
Government, the Employment Department of this state, the Portland
State University Population Research Center or special studies
conducted under a contract with a regional academic institution;
or
  (c) The Oregon Business Development Department determines on a
case-by-case basis using evidence provided by the cities,
counties or ports applying for designation of the proposed
enterprise zone that there exists a level of economic hardship at
least as severe as that described in paragraph (a) or (b) of this
subsection. The evidence shall be based on the most recently
available data from official sources and may include, but is not
limited to, a contemporary decline of the population in the
proposed enterprise zone, the percentage of persons in the

Enrolled House Bill 3680 (HB 3680-B)                      Page 26

proposed enterprise zone below the poverty level relative to the
percentage of the entire population of this state below the
poverty level or the unemployment rate for the county or counties
in which the proposed enterprise zone is located.
  (2) An enterprise zone must consist of a total area of not more
than 12 square miles in size. The area of the zone shall be
calculated by excluding that portion of the zone that lies below
the ordinary high water mark of a navigable body of water.
  (3) Except as provided in subsection (4) of this section:
  (a) An enterprise zone must have 12 miles or less as the
greatest distance between any two points within the zone; and
  (b) Unconnected areas of an enterprise zone may not be more
than five miles apart.
  (4) Unconnected areas of a rural enterprise zone may not be
more than 15 miles apart when an unconnected area is entirely
within a sparsely populated county, and the zone:
  (a) Must have 20 miles or less as the greatest distance between
any two points within the zone, if only a portion of the zone is
contained within a sparsely populated county; or
  (b) Must have 25 miles or less as the greatest distance between
any two points within the zone, if the zone is entirely contained
within a sparsely populated county.
  (5) This section does not apply to the designation or
redesignation of a reservation enterprise zone { +  or a
reservation partnership zone + }.
  SECTION 20. ORS 285C.115 is amended to read:
  285C.115. (1) The sponsor of an enterprise zone may submit a
request to the Oregon Business Development Department to change
the boundary of the enterprise zone. A request shall include:
  (a) A copy of the resolution of the governing body of the
sponsor requesting the change;
  (b) If subsection (7) of this section applies, a copy of the
resolution described in subsection (7) of this section;
  (c) A map clearly indicating the existing boundary and the
proposed change thereto;
  (d) A legal description of each area to be withdrawn from or
added to the existing enterprise zone; and
  (e) Other information required by the department.
  (2) The amended enterprise zone shall:
  (a) Add land zoned for use by eligible business firms that has
or will have infrastructure facilities, road access, on-site
water, on-site sewage disposal and necessary utility services;
  (b) Continue to include any authorized business firms within
the enterprise zone;
  (c) Add residential areas or nonresidential areas that are
adjacent to residential areas only if the level of economic
hardship in the areas to be added is at least as severe as the
conditions that existed at the time the original enterprise zone
was designated or that currently exist in the original enterprise
zone;
  (d) Retain at least 50 percent of the lands in the original
enterprise zone; and
  (e) Meet the applicable total area and greatest distance
requirements set forth in ORS 285C.090.
  (3) If the enterprise zone is a reservation enterprise zone
 { +  or a reservation partnership zone + } and the land to be
added to the zone is not described in ORS 285C.306, the request
for a boundary change, and the resulting boundary of the zone,
must fully satisfy the provisions of this section.

Enrolled House Bill 3680 (HB 3680-B)                      Page 27

  (4) A request under subsection (1) of this section may include
a proposal to:
  (a) Remove only the land that is residential or not zoned or
available for use by eligible business firms; or
  (b) Change the name of the enterprise zone.
  (5) The boundary of an urban enterprise zone may not be
modified to include land located outside a regional or
metropolitan urban growth boundary.
  (6) A request to modify the boundary of a rural enterprise zone
to include land located outside an urban growth boundary shall
satisfy the requirements of subsections (1) and (2) of this
section and shall satisfy any other criteria that the department
may adopt by rule.
  (7) If an area to be added to an enterprise zone is under the
jurisdiction of a city, county or port that is not a sponsor of
the enterprise zone, the governing body of that city, county or
port shall submit a resolution requesting the change and
requesting that the city, county or port become a sponsor, or
shall submit a resolution consenting to the change, as provided
under ORS 285C.065 (1). The resolution of the joining city,
county or port shall be submitted jointly with the resolution
adopted by the governing body of the existing sponsor. The
joining resolution of the city, county or port may:
  (a) Include a binding proposal for enhanced local public
services, local incentives or local regulatory flexibility to be
effective within the portion of the enterprise zone to be under
the jurisdiction of that city, county or port; or
  (b) Include a restriction described in ORS 285C.070 (4). A
restriction made under this paragraph may be made without regard
to the time limitation described in ORS 285C.070 (4)(c) and
becomes final on the effective date of the boundary change.
  (8) The department shall review the request for a boundary
change. If the request is incomplete or does not satisfy the
requirements of this section, the department shall seek
additional information as necessary or shall return the request
to the sponsor. If the request is returned, the sponsor may
submit a revised request at any time. If the request is complete
and does satisfy the requirements of this section, the Director
of the Oregon Business Development Department shall order a
change in the boundary of an enterprise zone based on the request
of the sponsor and specify the effective date of the boundary
change, which may not be earlier than the receipt of a completed
request.
  (9) A change in the boundary of an enterprise zone under this
section does not change the termination date of the enterprise
zone under ORS 285C.245 (2).
  SECTION 21. ORS 285C.245 is amended to read:
  285C.245. (1) When the termination of an enterprise zone occurs
under this section:
  (a) The termination of the enterprise zone does not affect:
  (A) The continuation of a qualified business firm's property
tax exemption first allowed before the effective date of the
termination of the enterprise zone; or
  (B) The ability of an authorized business firm to claim
exemption under ORS 285C.175 if:
  (i) The authorization application of the firm was filed with
the sponsor before the effective date of the termination of the
zone;
  (ii) The firm remains authorized at the time the exemption is
claimed;

Enrolled House Bill 3680 (HB 3680-B)                      Page 28

  (iii) The firm completes construction, addition, modification
or installation of the qualified property within a reasonable
time and without interruption of construction, addition,
modification or installation activity; and
  (iv) The property meets all other applicable requirements for
exemption under ORS 285C.175.
  (b) A business firm that is currently authorized or qualified
in the enterprise zone shall be allowed until 10 years after the
effective date of the termination of the enterprise zone to apply
for authorization under ORS 285C.140 and to subsequently claim
the exemption for any qualified property that is constructed,
added, modified or installed inside the former enterprise zone
boundaries, as those boundaries existed at the time of
termination, and entirely outside of the boundaries of any
current enterprise zone. Construction, addition, modification or
installation of qualified property must commence prior to the end
of the final tax year in which qualified property of the firm is
exempt under ORS 285C.175 and must be completed within a
reasonable time and without interruption of construction,
addition, modification or installation activity. The property
must meet all other applicable requirements for exemption under
ORS 285C.175.
  (c) Disqualification under ORS 285C.240 of all exempt property
of the business firm after the effective date of the termination
of the enterprise zone shall prohibit and terminate all
authorizations sought or obtained by the business firm that would
not otherwise be allowed except for paragraph (b) of this
subsection. Disqualification under ORS 285C.240 of all exempt
property of the business firm on or after the effective date of
the termination of the enterprise zone shall cause the assessor
to deny any claim for exemption under ORS 285C.175 of qualified
property of the business firm made in a subsequent tax year.
  (2) An enterprise zone designated by the Director of the Oregon
Business Development Department under ORS 285C.080, 285C.085 or
285C.250 shall terminate when 10 years plus that number of days
necessary to delay the date of termination to the June 30 next
following have elapsed since the enterprise zone was originally
designated.
  (3) An enterprise zone designated by the director under ORS
285C.080, 285C.085 and 285C.250 shall terminate prior to the time
specified in subsection (2) of this section only as provided in
subsections (4) to (6) of this section.
  (4) The governing body of the sponsor may submit a resolution
requesting termination of the enterprise zone to the Oregon
Business Development Department. The sponsor shall provide copies
of the resolution to the county assessor and the Department of
Revenue. After receipt of the request, the director shall order
termination of the enterprise zone and shall specify the
effective date of the termination.
  (5) If a sponsor is unable or unwilling to carry out its
responsibilities under ORS 285C.105, the director shall order
termination of the enterprise zone and shall specify the
effective date of the termination. However, in the case of
failure to provide enhanced local public services, local
incentives or local regulatory flexibility included in the
application for designation as an enterprise zone or in the
resolution under ORS 285C.115 (7), termination is not required if
the sponsor provides to authorized or qualified business firms
new enhanced local public services, local incentives or local
regulatory flexibility that is of comparable value, or makes

Enrolled House Bill 3680 (HB 3680-B)                      Page 29

reasonable corrections of shortcomings in existing local
incentives. A sponsor may reduce the time within which it will
provide enhanced local public services, local incentives and
local regulatory flexibility to a time period equal to the amount
of time allowed for an exemption under ORS 285C.175 without
causing termination under this section.
  (6) An enterprise zone designated on or after January 1, 2004,
shall terminate if no qualified business firm has located within
the zone by December 31 following the date that is six years
after the date the zone was designated.
  (7) A reservation enterprise zone designated { + , or a
reservation partnership zone cosponsored, + } under ORS 285C.306
shall terminate in accordance with subsection (2) of this
section, but may be redesignated at any time under ORS 285C.306.
  SECTION 22. ORS 285C.255 is amended to read:
  285C.255. (1) Notwithstanding any other provision of ORS
285C.050 to 285C.250:
  (a) An area may not be designated as an enterprise zone after
June 30, 2013;
  (b) A business firm may not obtain authorization under ORS
285C.140 after June 30, 2013; and
  (c) An enterprise zone, except for a reservation enterprise
zone { +  or a reservation partnership zone + }, that is in
existence on June 29, 2013, is terminated on June 30, 2013.
  (2) Notwithstanding subsection (1) of this section:
  (a) A reservation enterprise zone may be designated { + , and a
reservation partnership zone may be cosponsored, + } under ORS
285C.306 after June 30, 2013; and
  (b) A business firm may obtain authorization under ORS 285C.140
after June 30, 2013:
  (A) If located in a reservation enterprise zone { +  or a
reservation partnership zone + }; or
  (B) As allowed under ORS 285C.245 (1)(b).
  SECTION 23. ORS 285C.300 is amended to read:
  285C.300. As used in ORS 285C.300 to 285C.320:
  (1) 'Eligible business' means a business that:
  (a) Is engaged within a reservation enterprise zone  { + or a
reservation partnership zone + } in the manufacture or provision
of goods, products or services to other businesses or to the
general public, through activities including, but not limited to,
manufacturing, assembly, fabrication, processing, shipping,
storage, retail sales or services, child care, housing, retail
food service, health care, tourism, entertainment, financial
services, professional services, energy development, construction
or similar activities; and
  (b) Occupies or owns a new business facility within a
reservation enterprise zone { +  or a reservation partnership
zone + }.
  (2) 'New business facility':
  (a) Means a physical asset within a reservation enterprise zone
 { + or a reservation partnership zone + } that satisfies the
following requirements:
  (A) The facility is used by a business in the operation of a
revenue-producing enterprise, except that the revenue-producing
enterprise must consist of activity other than leasing the
facility to another person; and
  (B) The facility is acquired by or leased to a business on or
after January 1, 2002, including a facility, the title or
possession of which is transferred to the business on or after

Enrolled House Bill 3680 (HB 3680-B)                      Page 30

January 1, 2002, or a facility, the construction, erection or
installation of which is completed on or after January 1, 2002;
  (b) Subject to paragraph (c) of this subsection, includes a
facility acquired or leased from a person that used the facility
in a revenue-producing enterprise within the boundaries of the
same Indian reservation immediately prior to the transfer of
title or possession of the facility to the business; and
  (c) Does not include:
  (A) A facility that is used in a revenue-producing enterprise
that is the same or substantially identical to the
revenue-producing enterprise in which the facility was previously
used within the boundaries of the same Indian reservation; or
  (B) Any property that merely replaces existing property and
that does not expand the capacity of the revenue-producing
enterprise in which the facility is to be used.
  (3) 'Reservation enterprise zone' means   { - a - }   { + an
enterprise + } zone designated   { - by - }   { + under + } ORS
285C.306.
   { +  (4) 'Reservation partnership zone' means an enterprise
zone cosponsored under ORS 285C.306. + }
    { - (4) - }   { + (5) + } 'Tribal government' means the
governing body of an Indian tribe, if the governing body has the
authority to levy, impose and collect taxes within the boundaries
of the reservation of the tribe.
    { - (5) - }   { + (6) + } 'Tribal tax' means any specific tax
that is or may be levied or imposed by a tribal government upon a
business and that is measured with reference to a specific level
or quantity of that business's income, operations, use or
ownership of property. 'Tribal tax' includes, but is not limited
to, an income or excise tax, an ad valorem property tax, a gross
receipts tax or a sales and use tax.
  SECTION 24. ORS 285C.309 is amended to read:
  285C.309. (1) A credit against the taxes that are otherwise due
under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318, is allowed to an eligible business
operating a new business facility in a reservation enterprise
zone  { +  or a reservation partnership zone + }.
  (2) The amount of the credit allowed to the eligible business
shall equal:
  (a) The amount of tribal property tax imposed on a new business
facility of an eligible business that is paid or incurred by the
eligible business during the income or corporate excise tax year
of the eligible business; or
  (b) If the eligible business has not previously conducted
business operations within the reservation enterprise zone { +
or reservation partnership zone + }, the amount of tribal tax
paid or incurred by the eligible business during the income or
corporate excise tax year of the eligible business.
  (3) The credit allowed to the eligible business may not exceed
the tax liability of the eligible business for the tax year and
may not be carried over to another tax year.
  (4) A credit is allowable under this section only to the extent
the tribal tax on which the credit is based is imposed on
businesses not owned by Indians on a uniform basis within the
territory over which the tribal government has the authority to
levy, impose and collect taxes.
  (5) The credit shall be claimed on a form prescribed by the
Department of Revenue containing the information required by the
department, including information sufficient for the department

Enrolled House Bill 3680 (HB 3680-B)                      Page 31

to determine that the taxpayer is an eligible business and that
the facility operated by the business is a new business facility.
  (6) An eligible nonresident individual shall be allowed the
credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by subsection (1) of
this section. However, the credit shall be prorated using the
proportion provided in ORS 316.117.
  (7) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed by this section shall be prorated or computed in a
manner consistent with ORS 314.085.
  (8) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
  (9) An eligible business claiming a credit under this section
shall maintain records sufficient to authenticate the allowance
of the credit claimed under this section and shall furnish the
department with these records upon the request of the department.
  (10) A credit claimed by an eligible business may not be
disallowed solely because the eligible business conducts business
operations both within and outside of a reservation enterprise
zone { +  or a reservation partnership zone + }.
  SECTION 25. ORS 285C.320 is amended to read:
  285C.320. (1) A reservation enterprise zone   { - is a rural
enterprise zone - }   { + and a reservation partnership zone are
rural enterprise zones + } for purposes of ORS 285C.050 to
285C.250.   { - The tribal government of the reservation is the
sponsor of the reservation enterprise zone. - }
  (2) Reservation enterprise zones  { + and reservation
partnership zones + } may not be taken into account in
determining the number of rural enterprise zones allowable in
this state under ORS 285C.050 to 285C.250, and are not subject to
numerical limitation under ORS 285C.050 to 285C.250.
  (3) Exemptions and tax credits available in connection with an
enterprise zone are available in connection with a reservation
enterprise zone { +  or a reservation partnership zone + }. In
order for property within a reservation enterprise zone  { + or a
reservation partnership zone + } to be exempt under ORS 285C.175,
the business firm and property must meet the requirements
applicable to business firms and property in an enterprise zone.
  (4) As used in this section, 'business firm' has the meaning
given that term in ORS 285C.050.
  SECTION 26. ORS 314.752 is amended to read:
  314.752. (1) Except as provided in ORS 314.740 (5)(b), the tax
credits allowed or allowable to a C corporation for purposes of
ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS
chapter 316 shall be allowed or are allowable to the shareholders
of the S corporation.
  (2) In determining the tax imposed under ORS chapter 316, as
provided under ORS 314.734, on income of the shareholder of an S
corporation, there shall be taken into account the shareholder's
pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or
item thereof), recapture or recovery shall be passed through to
shareholders in pro rata shares as determined in the manner
prescribed under section 1377(a) of the Internal Revenue Code.

Enrolled House Bill 3680 (HB 3680-B)                      Page 32

  (3) The character of any item included in a shareholder's pro
rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source
from which realized by the corporation, or incurred in the same
manner as incurred by the corporation.
  (4) If the shareholder is a nonresident and there is a
requirement applicable for the business tax credit that in the
case of a nonresident the credit be allowed in the proportion
provided in ORS 316.117, then that provision shall apply to the
nonresident shareholder.
  (5) As used in this section, 'business tax credit' means a tax
credit granted to personal income taxpayers to encourage certain
investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or
public purposes that is listed under this subsection as a
business tax credit or is designated as a business tax credit by
law or by the Department of Revenue by rule and includes but is
not limited to the following credits: ORS 285C.309 (tribal taxes
on reservation enterprise zones { +  and reservation partnership
zones + }), ORS 315.104 (forestation and reforestation), ORS
315.134 (fish habitat improvement), ORS 315.138 (fish screening,
by-pass devices, fishways), ORS 315.156 (crop gleaning), ORS
315.164 and 315.169 (farmworker housing), ORS 315.204 (dependent
care assistance), ORS 315.208 (dependent care facilities), ORS
315.213 (contributions for child care), ORS 315.304 (pollution
control facility), ORS 315.324 (plastics recycling), ORS 315.354
and 469.207 (energy conservation facilities), ORS 315.507
(electronic commerce), ORS 315.511 (advanced telecommunications
facilities), ORS 315.604 (bone marrow transplant expenses), ORS
317.115 (fueling stations necessary to operate an alternative
fuel vehicle) and ORS 315.141 (biomass production for biofuel).
  SECTION 27.  { + The amendments to ORS 285C.050, 285C.090,
285C.115, 285C.245, 285C.255, 285C.300, 285C.309, 285C.320 and
314.752 by sections 18 to 26 of this 2010 Act apply to
reservation enterprise zones designated, and reservation
partnership zones cosponsored, on or after January 1, 2010. + }
  SECTION 28. Section 21, chapter 913, Oregon Laws 2009, is
amended to read:
   { +  Sec. 21. + } A credit may not be claimed under ORS
285C.309 for tax years beginning on or after January 1,
 { - 2014 - }  { +  2018 + }.
  SECTION 29.  { + This 2010 Act takes effect on the 91st day
after the date on which the special session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
                         ----------

Enrolled House Bill 3680 (HB 3680-B)                      Page 33

Passed by House February 10, 2010

Repassed by House February 23, 2010

      ...........................................................
                                             Chief Clerk of House

      ...........................................................
                                                 Speaker of House

Passed by Senate February 22, 2010

      ...........................................................
                                              President of Senate

Enrolled House Bill 3680 (HB 3680-B)                      Page 34

Received by Governor:

......M.,............., 2010

Approved:

......M.,............., 2010

      ...........................................................
                                                         Governor

Filed in Office of Secretary of State:

......M.,............., 2010

      ...........................................................
                                               Secretary of State

Enrolled House Bill 3680 (HB 3680-B)                      Page 35