Bill Text: OR SB819 | 2013 | Regular Session | Introduced

---

Bill Title: Relating to qualifying investment contracts; prescribing an effective date.

Spectrum: Strong Partisan Bill (Republican 16-1)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB819 Detail]

Download: Oregon-2013-SB819-Introduced.html

---

     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

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

LC 3799

                         Senate Bill 819

Sponsored by Senators KNOPP, CLOSE, WHITSETT; Senators
  BAERTSCHIGER JR, BOQUIST, FERRIOLI, GEORGE, GIROD, HANSELL,
  JOHNSON, KRUSE, OLSEN, STARR, THOMSEN, WINTERS, Representatives
  CONGER, DAVIS

                             SUMMARY

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

  Removes minimum requirements for cost and employment terms for
qualifying investment contract. Provides that Governor and
Director of Department of Revenue shall negotiate minimum
requirements of contract with taxpayer.
  Removes deadline for entering into qualified investment
contracts.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to qualifying investment contracts; amending sections 3
  and 7, chapter 1, Oregon Laws 2012 (special session); and
  prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. Section 3, chapter 1, Oregon Laws 2012 (special
session), is amended to read:
   { +  Sec. 3. + } As used in sections 3 to 6 { + , chapter 1,
Oregon Laws 2012 (special session): + }   { - of this 2012
special session Act: - }
  (1) 'Actual cost' means the costs of labor, materials,
supplies, equipment rental, real or personal property
acquisition, permits, engineering, financing, required fees,
insurance, administration, accounting, maintenance, repair or
replacement and debt service, and all other direct or indirect
costs incurred by a person in order to undertake a capital
project, or of more than one capital project undertaken by the
same taxpayer as part of the same qualifying investment.
  (2) 'Capital project' means a project within this state for the
construction, modification, replacement, repair, remodeling or
renovation of a structure or structures, addition to a structure
or structures, or other capital improvement, that qualifies as a
qualifying investment, including but not limited to:
  (a) Acquisition of a legal interest or right in land or
property in conjunction with the capital improvement, including
but not limited to the purchase, lease or occupancy of real
property, including the buildings, structures, infrastructure and
leasehold improvements on the land or property;

  (b) Acquisition of existing structures, or legal interests or
rights in structures, in conjunction with the capital
improvement;
  (c) Acquisition and installation of machinery or equipment,
furnishings, fixtures or other personal property or materials, in
conjunction with the capital improvement; or
  (d) Services and activities performed in relation to the
capital improvement, including planning, design, authorizing,
issuing, carrying or repaying interim or permanent financing,
research, study of land use and environmental impacts, acquiring
permits or licenses, or other services connected with the capital
improvement, and costs associated with the performance of these
services and activities.
  (3) 'Debt service' includes debt service payments or payments
into reserve accounts for debt service and payment of amounts
necessary to meet debt service coverage requirements.
  (4) 'Qualifying investment' means expenditures made by the
taxpayer relating to a capital project:
  (a) The actual cost of which exceeds   { - $150 million within
a five-year - }   { + a minimum dollar amount spent within a
stated time + } period measured from the commencement of the term
of the qualifying investment contract  { - ; and - }  { + . The
Governor and the Director of the Department of Revenue shall
negotiate the minimum dollar amount and stated time period with
the taxpayer. + }
  (b) That result in the taxpayer employing   { - at least 500
more full-time equivalent employees in this state than the
taxpayer employed in this state when the qualifying investment
was commenced - }   { + a minimum number of full-time equivalent
employees in this state that is greater than the number of
full-time equivalent employees employed by the taxpayer in this
state when the qualifying investment is commenced. The Governor
and the Director of the Department of Revenue shall negotiate the
minimum number of full-time equivalent employees with the
taxpayer + }.
  (5) 'Qualifying investment contract' means a contract between
the State of Oregon and a taxpayer that meets the requirements of
section 5 { + , chapter 1, Oregon Laws 2012 (special session) + }
 { - of this 2012 special session Act - } .
  (6) 'Single sales factor method' means the method of business
income apportionment required under ORS 314.650 and 314.665 and
the rules adopted thereunder, as in effect on the date a
qualifying investment contract is executed.
  (7) 'Term of the qualifying investment contract' means the
duration of the parties' obligations under a qualifying
investment contract.
  SECTION 2. Section 7, chapter 1, Oregon Laws 2012 (special
session), is amended to read:
   { +  Sec. 7. + } A qualifying investment contract as defined
in section 3 { + , chapter 1, Oregon Laws 2012 (special
session), + }   { - of this 2012 special session Act - }  may not
be entered into  { - : - }
    { - (1) - }  before December 14, 2012.
    { - (2) On or after January 1, 2014. - }
  SECTION 3.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
                         ----------