Bill Text: OR HB3698 | 2010 | 1st Special Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to employers; appropriating money; and prescribing an effective date.

Spectrum: Committee Bill

Status: (Passed) 2010-03-23 - Chapter 93, (2010 Laws): Effective date May 27, 2010. [HB3698 Detail]

Download: Oregon-2010-HB3698-Engrossed.html

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     75th OREGON LEGISLATIVE ASSEMBLY--2010 Special Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 193

                           A-Engrossed

                         House Bill 3698
                Ordered by the House February 15
          Including House Amendments dated February 15

Sponsored by COMMITTEE ON REVENUE

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.

  Establishes Building Opportunities for Oregon Small Business
Today   { - Fund - }   { + Account + } (BOOST   { - Fund - }
 { +  Account + }). Authorizes Oregon Business Development
Department to make loans or award grants to small   { - business
employers - }   { + businesses + } from BOOST   { - Fund - }
 { +  Account + }.
  Directs Department of Revenue to expand   { - amnesty for
and - } enforcement of tax compliance by employers.
 { - Allocates moneys from Tax Amnesty Fund to BOOST Fund.
Transfers increased amounts of revenue created by expanded
amnesty program and enforcement efforts to BOOST Fund. - }
   { +  Creates Tax Enforcement Fund. Specifies that moneys
received by Department of Revenue as result of expanded
enforcement must be deposited in fund. Continuously appropriates
moneys in fund to department for purpose of transferring moneys
to Building Opportunities for Oregon Small Business Today
Account.
  Increases limit on expenditures, for biennium beginning July 1,
2009, for payment of expenses from Tax Amnesty Fund to Department
of Revenue for purpose of expanding enforcement of tax
compliance. + }
  Sunsets June 30, 2013.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to employers; appropriating money; limiting
  expenditures; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 and 3 of this 2010 Act are added to
and made a part of ORS 285B.050 to 285B.098. + }
  SECTION 2.  { + (1) As used in this section and section 3 of
this 2010 Act:
  (a) 'BOOST Account' means the Building Opportunities for Oregon
Small Business Today Account established under section 3 of this
2010 Act.
  (b) 'Comparable wages' means wages that are reasonably
equivalent to wages paid to other employees of a small business
employer regardless of position.
  (c) 'Full-time' means a minimum of 35 hours per week or 25
hours per week with health benefit plan coverage.
  (d) 'Health benefit plan' has the meaning given that term in
ORS 743.730.
  (e) 'Small business employer' means a business having 100 or
fewer employees in a traded sector industry.
  (f) 'Wages' means all compensation for performance of personal
services by an employee for a small business employer, including
salaries, commissions, benefits, the cash value of all
compensation paid in any medium other than cash and any other
form of remuneration paid to employees for personal services.
  (2) Any small business employer may file with the Oregon
Business Development Department an application to borrow money,
or an application for a grant of financial assistance, from the
BOOST Account for industry development purposes as defined by
rule of the department. The application shall be filed in the
manner and be accompanied by such information as the department
may prescribe by rule.
  (3) The department may approve an application for a loan or
grant under this section if, after investigation, the department
finds that:
  (a) The applicant demonstrates a reasonable capacity to
increase employment opportunities in this state or, in the case
of a loan, demonstrates a reasonable capacity to retain existing
jobs in this state.
  (b) The applicant has established goals of creating new
full-time jobs in Oregon or, in the case of a loan, has
established goals of retaining existing jobs in Oregon, with a
reasonable prospect of achieving such goals.
  (c) The applicant has a demonstrated history of providing
comparable wages to its employees.
  (d) In the case of a loan, the applicant can provide good and
sufficient collateral for the loan.
  (e) Moneys are or will be available in the BOOST Account.
  (4)(a) Following the department's approval of an application
under subsection (3) of this section, the department may:
  (A) Enter into a loan contract with the applicant of not more
than $150,000, secured by good and sufficient collateral, with a
plan for repayment not to exceed four years. The contract entered
into under this subparagraph shall contain a repayment plan that
includes the amount of interest to be charged and information
about appropriate legal remedies the department may pursue to
secure repayment upon the applicant's default or failure to
comply with the contract, including withholding of any amounts
otherwise due. The department shall develop rules governing
repayment of loans under this subparagraph and the collection of
moneys owed to the BOOST Account. The department may take any
action permitted by statute or rule that the department deems
necessary to secure the repayment of the loan.
  (B) Make grants not to exceed $2,500 per new full-time job
established by the applicant after the date of approval of its
application. A grant may not be made under this subparagraph
unless the new full-time employee has been unemployed for at
least 60 days preceding the date of hire and the new full-time
job is held by the employee for a minimum period of six
consecutive months. The total sum of moneys paid under this
subparagraph may not exceed $50,000 per applicant in any calendar
year. Grants made under this subparagraph shall be paid in the
quarter following receipt by the department of a report from the
applicant that provides information about new full-time jobs
established by the applicant and upon verification of employment
in a manner to be established by the department by rule.
  (b) In entering into loan contracts under paragraph (a)(A) of
this subsection, the department shall give preference to an
applicant that proposes to create new full-time jobs. + }

  SECTION 3.  { + (1) The Oregon Business Development Department
shall establish the Building Opportunities for Oregon Small
Business Today Account, or BOOST Account, as an account within
the Oregon Business Development Fund.
  (2) The purpose of the account is to promote access to working
capital that results in immediate job growth and job retention
through the making of loans and awarding of grants to small
businesses in Oregon. + }
  SECTION 4.  { + (1) The Department of Revenue is directed to
expand its enforcement activities to improve the compliance of
employers and other businesses with income and corporate excise
tax laws.
  (2) Not later than January 2, 2011, the department shall report
on its progress in implementing this section to the interim
legislative committees on revenue. The report must include the
results of the expansion of the enforcement activities under this
section.
  (3) The department may adopt rules necessary to administer this
section. + }
  SECTION 5.  { + (1) The Tax Enforcement Fund is established in
the State Treasury, separate and distinct from the General Fund.
Interest earned by the Tax Enforcement Fund shall be credited to
the Tax Enforcement Fund. Moneys in the fund are continuously
appropriated to the Department of Revenue for the purpose
described in subsection (3) of this section.
  (2) Notwithstanding ORS 316.502, 317.850 and 318.070, all
moneys received by the department as a result of the expanded
enforcement activities under section 4 of this 2010 Act shall be
deposited in the Tax Enforcement Fund.
  (3)(a) At least quarterly, the department shall transfer the
balance of the Tax Enforcement Fund to the Oregon Business
Development Department to be deposited in the Building
Opportunities for Oregon Small Business Today Account established
in section 3 of this 2010 Act.
  (b) Notwithstanding paragraph (a) of this subsection, for the
biennium beginning July 1, 2009, the total amount of transfers
from the Tax Enforcement Fund to the Building Opportunities for
Oregon Small Business Today Account may not exceed
$7,000,000. + }
  SECTION 6.  { + Notwithstanding any other law limiting
expenditures, the limitation on expenditures established by
section 8, chapter 710, Oregon Laws 2009, for the biennium
beginning July 1, 2009, as the maximum limit for payment of
expenses from the Tax Amnesty Fund is increased by $3,500,000 for
the purpose of carrying out the provisions of section 4 of this
2010 Act. + }
  SECTION 7.  { + Sections 2 to 5 of this 2010 Act are repealed
on June 30, 2013. + }
  SECTION 8.  { + (1) All moneys remaining in the Building
Opportunities for Oregon Small Business Today Account on June 30,
2013, shall be transferred to the General Fund.
  (2) All moneys remaining in the Tax Enforcement Fund on June
30, 2013, shall be transferred to the General Fund. + }
  SECTION 9.  { + 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. + }
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