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Oregon Bulletin

July 1, 2013

Oregon Business Development Department, Chapter 123

Rule Caption: Amendments include language for first loss insurance, add language for collateral support insurance premiums.

Adm. Order No.: OBDD 3-2013

Filed with Sec. of State: 5-23-2013

Certified to be Effective: 5-23-13

Notice Publication Date: 3-1-2013

Rules Amended: 123-021-0010, 123-021-0015, 123-021-0080, 123-021-0090, 123-021-0110

Subject: The Credit Enhancement Fund rules are being amended to increase the First Loss Insurance from $300,000 to $500,000.

 The First Loss Collateral Support Insurance is established which is only intended to mitigate collateral shortfall and is not intended to mitigate other or additional credit deficiencies. Collateral Support Insurance will only be provided to the extent necessary to facilitate making a qualified loan, not on a maximum allowable basis for each loan. Limits are $500,000 and up to 25% of an enrolled loan, or for insurance between $500,000 and $1,000,000, 20% of the enrolled loan.

 Amendments also updates the Insurance Premium to reflect the newly introduced Collateral Support Insurance.

Rules Coordinator: Mindee Sublette—(503) 986-0036

123-021-0010

Definitions

For the purposes of these rules, additional definitions may be found in OAR chapter 123, division 1. The following terms shall have the following definitions, unless the context clearly indicates otherwise:

(1) “Authorized loan amount” means the amount of a loan authorized by the Department to be under the CEF Program pursuant to a loan insurance authorization issued by the Department to the financial institution making the loan.

(2) “Brownfield” means any real property where expansion or redevelopment is complicated by actual or perceived environmental contamination.

(3) “CEF Program” means the Credit Enhancement Fund Insurance Program established under ORS 285B.200 to 285B.218.

(4) The “deficiency” of a loan means the amount of principal outstanding upon default, accrued interest and the financial institution’s reasonable costs of collection, exclusive of costs attributable to environmental problems, remaining unpaid after liquidation of collateral and collection of guarantees.

(5) “Destination facilities other than retail or food service” means a qualified business which has a significant impact on the regional recreational or tourism economy. Incidental food service or retail facilities necessary to the operation of a destination facility are eligible. Sleeping accommodations without unique attraction capabilities are not qualified businesses.

(6) “Financial institution” has the meaning set forth in ORS 706.008.

(7) “Fund” means the Credit Enhancement Fund created by ORS 285B.215.

(8) “Loan insurance authorization” means a letter from the director or deputy director or designee to a financial institution agreeing to insure a loan to a borrower on the terms and conditions and subject to the requirements stated therein.

(9) “Loan insurance agreement” means the agreement between the financial institution and the Department required by OAR 123-021-0100.

(10) “Working capital loan” means any loan, the proceeds of which are to be used for operating, maintenance and other costs and expenses, or for purposes other than acquiring real property, production equipment, or other capital assets.

(11) “Principal” in regards to a borrower is defined as:

(a) If a sole proprietorship, the proprietor;

(b) If a partnership, each managing partner and each partner who is a natural person and holds a twenty percent (20%) or more ownership interest in the partnership; and,

(c) If a corporation, limited liability company, association or a development company, each director, each of the five most highly compensated executives or officers of the entity, and each natural person who is a direct or indirect holder of twenty percent (20%) or more of the ownership stock or stock equivalent of the entity. “Principal” in regards to a financial institution is defined as:

(A) If a sole proprietorship, the proprietor;

(B) If a partnership, each partner; and

(C) If a corporation, limited liability company, association or a development company, each director, each of the five most highly compensated executives, officers or employees of the entity, and each direct or indirect holder of twenty percent (20%) or more of the ownership stock or stock equivalent of the entity.

(12) “SSBCI Funds” means U.S. Treasury funds allocated to the Department under the State Small Business Credit Initiative Act of 2010 (title III of the Small Business Jobs Act of 2010, P.L. 111-240, 124 Stat. 2568, 2582).

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285B.200 - 285B.218
Hist.: EDD 5-1994(Temp), f. & cert. ef. 3-3-94; EDD 11-1994, f. & cert. ef. 7-29-94; EDD 12-1997(Temp), f. & cert. ef. 10-7-97; EDD 11-1998, f. & cert. ef. 5-22-98; EDD 8-1999, f. & cert. ef. 10-1-99; EDD 4-2007(Temp), f & cert. ef. 8-28-07 thru 2-22-08; EDD 5-2008(Temp), f. & cert. ef. 2-26-08 thru 8-1-08; EDD 24-2008, f. 7-31-08, cert. ef. 8-1-08; EDD 17-2009, f. 10-030-09, cert. ef. 11-1-09; OBDD 8-2011(Temp), f. & cert. ef. 12-8-11 thru 6-5-12; OBDD 7-2012, f. & cert. ef. 6-1-12; OBDD 18-2012(Temp), f. & cert. ef. 11-20-12 thru 5-17-13; OBDD 3-2013, f. & cert. ef. 5-23-13

123-021-0015

Qualified Business

In a distressed area, any existing or proposed business is a Qualified business. Any company that owns, occupies, operates, or has entered into an agreement to own, occupy or operate real property containing a brownfield is a Qualified business. Through June 30, 2015,outside of a distressed area, any existing or proposed businesses is a Qualified business. After June 30, 2015, outside of a distressed area, a Qualified business is defined as any existing or proposed business that sells goods or services in markets for which national or international competition exists, and such sales of goods or services will result in or will aid, promote or facilitate the development of one or more of the following activities:

(1) Manufacturing or other industrial production;

(2) Food processing;

(3) Aquaculture development or seafood processing;

(4) Convention facilities or trade centers;

(5) Destination facilities other than retail or food service;

(6) Transportation or freight facilities;

(7) Distribution facilities; or

(8) Other activities, as approved by the Department that represent new technology or diversifying activity but not including:

(a) Construction of office buildings;

(b) Retail businesses, shopping centers or food service facilities;

(c) Motels or bed and breakfast hotels;

(d) Professional services for medicine, law, dentistry or finance;

(e) Athletic, racquetball, handball, or private membership clubs, or golf courses;

(f) Sand and gravel facilities;

(g) Newspapers;

(h) Lobbying activities (as defined in Section 3(7) of the Lobbying Disclosure Act of 1995, P.L. 104-65, as amended); or,

(i) Acquiring or holding passive investments such as commercial real estate ownership or the purchase of securities; this does not include acquisitions of businesses through 100% stock transfer. For the Evergreen Entrants Insurance, a Qualified business includes an existing or proposed business without, or about to be without, an existing line of credit. For the Evergreen Plus Insurance, a Qualified business includes an existing or proposed business with an existing line of credit.

Stat. Auth.: ORS 285A.075 & 285B.200 - 285B.218
Stats. Implemented: ORS 285B.200 - 285B.218
Hist.: EDD 24-2008, f. 7-31-08, cert. ef. 8-1-08; EDD 17-2009, f. 10-030-09, cert. ef. 11-1-09; OBDD 8-2011(Temp), f. & cert. ef. 12-8-11 thru 6-5-12; OBDD 7-2012, f. & cert. ef. 6-1-12; OBDD 18-2012(Temp), f. & cert. ef. 11-20-12 thru 5-17-13; OBDD 3-2013, f. & cert. ef. 5-23-13

123-021-0080

Loan and Insurance Terms and Conditions

(1) Interest rate and term. The rate of interest on the insured loan and the term of the loan shall be agreed between the financial institution and a borrower provided that no insurance term may exceed the lesser of fifteen years or the useful life of the assets being financed or one year plus four annual renewals for the Evergreen Entrants or Evergreen Plus Programs.

(2) Collateral. Repayment of an insured loan shall be secured by such collateral as the Department deems prudent.

(a) Insured loans may, at the discretion of the Department, be secured by collateral valued for collateral purposes at less than the amount of the insured loan, provided the borrower, its principals, and the guarantors, to the satisfaction of the Department, are of good character, have good credit histories, and exhibit the ability to service the proposed and existing debt;

(b) Real estate or unmovable machinery or equipment constituting a significant portion of collateral for repayment of an insured loan shall be located within the state. Mobile machinery or equipment, including vessels, constituting a significant portion of collateral for repayment of an insured loan shall be registered with and taxed by the state or municipal authorities, if the State or municipal authorities register or tax machinery or equipment of a type similar to the collateral, and shall be stored or berthed in the state when not in use.

(c) The Department may, at its sole discretion, require independent collateral valuation and appraisal of the real property assets securing the loan.

(3) Covenants. The covenants and requirements of the loan shall be established by the financial institution in accordance with prudent lending practices. The Department may require such additional covenants and requirements as may be necessary, prudent or desirable. At a minimum, the loan documents should require the borrower to:

(a) Make periodic payments of principal and interest, with the exception of short term working capital loans or evergreen working capital loans or lines of credit where periodic interest payments with a balloon principal payment and/or term options may be acceptable, as determined by the Department;

(b) Make any lease payments;

(c) Maintain adequate insurance on collateral, and maintain books and records on the business;

(d) Pay any taxes or governmental charges assessed against the collateral and comply with all applicable laws and regulations;

(e) Keep the collateral free of liens and encumbrances except for as may be expressly accepted by the financial institution and Department;

(f) Provide for periodic financial reports to the financial institution;

(g) Pay advances necessary to protect the collateral and all expenses of protecting or enforcing the rights of the financial institution and Department.

Stat. Auth.: ORS 285A.075 & 285B.200 - 285B.218
Stats. Implemented: ORS 285B.200 - 285B.218
Hist.: EDD 5-1994(Temp), f. & cert. ef. 3-3-94; EDD 11-1994, f. & cert. ef. 7-29-94; EDD 24-2008, f. 7-31-08, cert. ef. 8-1-08; EDD 17-2009, f. 10-030-09, cert. ef. 11-1-09; OBDD 8-2011(Temp), f. & cert. ef. 12-8-11 thru 6-5-12; OBDD 7-2012, f. & cert. ef. 6-1-12; OBDD 18-2012(Temp), f. & cert. ef. 11-20-12 thru 5-17-13; OBDD 3-2013, f. & cert. ef. 5-23-13

123-021-0090

Loan Insurance Programs

The Department shall offer the following insurance programs:

(1) Conventional Insurance, under which the Department may insure

(a) Up to 80 percent of a loan in which case the Department’s maximum liability for any loss under the Conventional Insurance is the lesser of $2,000,000 or an amount equal to the insured percentage times the authorized loan amount, or

(b) Up to 90 percent of a loan in which case the Department’s maximum liability for any loss under the Conventional Insurance is the lesser of $500,000 or an amount equal to the insured percentage times the authorized loan amount. Should a borrower which receives an insured loan default or otherwise be unable to make loan payments, the Department will pay the financial institution the deficiency of a loan times the insured percentage, subject to the limitation set forth above. The balance of any loss is absorbed by the financial institution. Loan payments, the proceeds of collateral (including collection of guarantees), and any recovery after payment of a deficiency are applied pro rata to the portion of a loan insured through Conventional Insurance and the uninsured portion of the loan.

(2)(a) Evergreen Entrants Insurance, under which the Department may insure up to 75 percent of a line of credit working capital loan. Should a borrower which receives an insured loan default or otherwise be unable to make loan payments, the Department will pay the financial institution the deficiency of the line of credit working capital loan times the insured percentage; provided that the Department’s maximum liability for any deficiency under the Evergreen Entrants Insurance is the lesser of $1,500,000 or an amount equal to the insured percentage of the authorized loan amount. The balance of any loss is absorbed by the financial institution. Loan payments, the proceeds of collateral (including collection of guarantees), and any recovery after payment of a deficiency are applied pro rata to the portion of a loan insured through Evergreen Entrants Insurance and the uninsured portion of the loan.

(b) Eligible borrowers include persons or enterprises without or about to be without existing line of credit working capital loans.

(c) To obtain Evergreen Entrants Insurance, a financial institution must have the capacity to service the loan effectively, including monitoring compliance with any audit and control procedures prescribed by the Department or comparable procedures of the financial institution approved by the Department and must have in place and operating a lending program specializing in line of credit loans secured by or with advances based upon eligible accounts receivable and inventory or other assets. The Department must be satisfied that the financial institution is sufficiently experienced and capable of operating such a lending program effectively.

(3) First Loss Insurance, under which the Department will pay 100 percent of the deficiency of a loan, but the Department’s maximum liability under the First Loss Insurance shall be the lesser of (a) the insured percentage (which shall not exceed 25 percent) times the authorized loan amount, (b) the insured percentage (which shall not exceed 25 percent) times the outstanding balance of the loan, including accrued interest and reasonable costs and expenses of collection and liquidation of collateral exclusive of costs attributable to environmental problems, but not taking into account the proceeds of collateral liquidation and payments by guarantors, or (c) $500,000. Any recovery after payment of a deficiency is applied first to the uninsured portion of the loan and then to the portion of a loan insured through First Loss Insurance.

(4)(a) Evergreen Plus Insurance, under which the Department may insure up to 90 percent of a new increment of a line of credit; provided that the Department’s maximum liability under the Evergreen Plus Insurance is $1,500,000 and the aggregate amount of the line of credit insured under any program does not exceed 80% of the total line of credit. If a financial institution makes a payment request for any deficiency, the Department will pay to the financial institution the lesser of:

(A) A ratable share of the total default charges; or

(B) the deficiency times the insured percentage. The balance of any loss is absorbed by the financial institution. Loan payments, the proceeds of collateral (including collection of guarantees), and any recovery after payment of a deficiency are applied pro rata to the portion of a loan insured through Evergreen Plus Insurance and the uninsured portion of the loan.

(b) The formula for calculating the Department’s ratable share of total default charges is:

R = (G÷T)*P

R represents the ratable share of total default charges.

G represents the amount of the new increment of the line of credit.

T represents the total credit facility made available.

P represents the principal outstanding upon default plus accrued unpaid interest and costs of collateral liquidation and collection of guarantees exclusive of costs attributable to environmental problems.

(c) To obtain the Evergreen Plus Insurance, a financial institution must have in place and operating a lending program specializing in line of credit loans secured by or with advances based upon eligible accounts receivable and inventory or other assets. The Department must be satisfied that the financial institution is sufficiently experienced and capable of operating such a lending program effectively.

(5) First Loss Collateral Support Insurance (aka Collateral Support Insurance), under which the Department will pay up to a maximum of 100 percent of the deficiency of a loan as follows. The Department’s maximum liability under the Collateral Support Insurance per enrolled loan shall be the lesser of:

(a) The insured percentage times the authorized and enrolled loan amount;

(b) The insured percentage times the outstanding balance of the enrolled loan, including accrued interest and reasonable costs and expenses of collection and liquidation of collateral exclusive of costs attributable to environmental problems, after taking into account payments by guarantors but not taking into account the proceeds of collateral liquidation; or,

(c) 25% of the enrolled loan or $1,000,000. Collateral Support Insurance may not exceed a term of 5 years. Loan payments, the proceeds of collection of guarantees, and recovery after payment of a deficiency from any source other than liquidation of collateral are applied pro rata to the portion of a loan insured through Collateral Support Insurance and the uninsured portion of the loan; the proceeds of collateral are applied first to the uninsured portion of the loan and then to the portion of a loan insured through Collateral Support Insurance. Loans covered by Collateral Support Insurance must meet a participating Lender’s credit underwriting criteria with the exception of loan collateral adequacy. Borrowers with loans covered by Collateral Support Insurance must:

(a) Demonstrate significant current and historical cash flow coverage,

(b) Demonstrate strong credit history,

(c) Provide personal guarantees of significant owners; and,

(d) Meet other criteria as determined by the Department.

In contrast to First Loss Insurance, Collateral Support Insurance is only intended to mitigate a collateral shortfall and is not intended to mitigate other or additional credit deficiencies. Collateral Support Insurance will only be provided to the extent necessary to facilitate making a qualified loan, not on a maximum allowable basis for each loan. Loan proceeds may be used to pay off an existing loan where the collateral value is no longer adequate to secure the loan due to a decline in the value of the existing collateral (not due to the loan having been less than fully secured at inception). If any proceeds of the new insured loan are used to finance an existing loan of the lender making application for Collateral Support Insurance, to be eligible for Collateral Support Insurance the existing loan must have reached its maturity date and the new loan must also include new monies advanced to the borrower. Enrollment of the new loan in the Collateral Support Insurance will be limited to the amount of the collateral shortfall or the decline in the collateral value, from the date of the existing loan if proceeds are applied to an existing loan secured by the collateral, whichever is less. For the Collateral Support Insurance, the maximum insured percentage for insurance up to $500,000 shall be 25% of the loan. For insurance above $500,000 and up to $1,000,000 the maximum insured percentage shall be 20% of the loan.

(6) The Conventional Insurance, First Loss Insurance, and Collateral Support Insurance are available for all types of non-revolving loans with regular periodic payments of principal and interest no less often than annually for eligible purposes, including working capital loans that are secured by fixed assets or other collateral determined to be sufficient by the Department.

Stat. Auth.: ORS 285A.075 & 285B.200 - 285B.218
Stats. Implemented: ORS 285B.200 - 285B.218
Hist.: EDD 5-1994(Temp), f. & cert. ef. 3-3-94; EDD 11-1994, f. & cert. ef. 7-29-94; EDD 13-2002(Temp), f. & cert. ef. 6-18-02 thru 12-13-02; Administrative correction 4-15-03; EDD 6-2005(Temp), f. & cert. ef. 8-5-05 thru 1-31-06; EDD 1-2006, f. & cert. ef. 2-10-06; EDD 5-2008(Temp), f. & cert. ef. 2-26-08 thru 8-1-08; EDD 24-2008, f. 7-31-08, cert. ef. 8-1-08; EDD 17-2009, f. 10-030-09, cert. ef. 11-1-09; OBDD 8-2011(Temp), f. & cert. ef. 12-8-11 thru 6-5-12; OBDD 7-2012, f. & cert. ef. 6-1-12; OBDD 18-2012(Temp), f. & cert. ef. 11-20-12 thru 5-17-13; OBDD 3-2013, f. & cert. ef. 5-23-13

123-021-0110

Insurance Premiums

(1) The Department shall charge a one-time (up-front) insurance premium. Premiums are due at the time financial institutions originate loans and execute loan authorizations with the Department. The Department’s insurance is not effective until premiums are paid. It is expected that financial institutions will pass along the cost of premiums to borrowers. Premiums, expressed as a percentage of the Department’s maximum liability, shall be charged in accordance with the following schedule for the programs indicated: [Table not included. See ED. NOTE.]

(2) The fee for the Evergreen Entrants Insurance is 1.25 percent annually; the fee for the Evergreen Plus Insurance is 2.5 percent annually.

(3) For revolving lines of credit or evergreen facilities, the premium is based on the Department’s maximum liability in regard to the credit facility made available to a borrower, regardless of whether or not the line of credit is fully drawn down. Examples:

(a) The premium due on a $200,000, five year loan with 80% Conventional Insurance would be $3,200 ($200,000 x .80 x .02);

(b) The premium for a $200,000 loan with 75% Evergreen Entrants Insurance is $1,875 ($200,000 x .75 x .0125); this amount would be due every year thereafter for up to four additional years, assuming the loan and amount is renewed each year for the maximum term permitted under the Evergreen Entrants program (5 years);

(c) The premium for a $200,000, eight year loan with 25% First Loss Insurance is $2,500 ($200,000 x .25 x .05);

(d) The premium for a $700,000 increment to the line of credit with 25% Evergreen Plus Insurance is $4,375 ($700,000 x .25 x.025); this amount would be due every year thereafter for up to four additional years, assuming the loan and amount is renewed each year for the maximum term permitted under the program (5 years);

(e) The premium for a $1,000,000 five-year loan with a 15% Collateral Support Insurance is $5,250 ($1,000,000 x .15 x .035).

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: ORS 285A.075 & 285B.200 - 285B.218
Stats. Implemented: ORS 285B.200 - 285B.218
Hist.: EDD 5-1994(Temp), f. & cert. ef. 3-3-94; EDD 11-1994, f. & cert. ef. 7-29-94; EDD 24-2008, f. 7-31-08, cert. ef. 8-1-08; EDD 17-2009, f. 10-030-09, cert. ef. 11-1-09; OBDD 8-2011(Temp), f. & cert. ef. 12-8-11 thru 6-5-12; OBDD 7-2012, f. & cert. ef. 6-1-12; OBDD 18-2012(Temp), f. & cert. ef. 11-20-12 thru 5-17-13; OBDD 3-2013, f. & cert. ef. 5-23-13


 

Rule Caption: New division of rules relating to Qualifying Investment Contracts.

Adm. Order No.: OBDD 4-2013(Temp)

Filed with Sec. of State: 5-29-2013

Certified to be Effective: 5-29-13 thru 11-25-13

Notice Publication Date:

Rules Adopted: 123-094-0001, 123-094-0010, 123-094-0020, 123-094-0030, 123-094-0040

Subject: In the 2012 Special Session, the Legislature passed HB 4200 allowing the state to enter into Qualifying Investment Contracts with businesses that meet specific criteria. This new division of rules defines terms, contract criteria and deadlines and reporting requirements.

Rules Coordinator: Mindee Sublette—(503) 986-0036

123-094-0001

Purpose

The purpose of these rules is to promote and stimulate economic development through qualifying investment contracts, as provided in ORS 314.605 to 314.675.

Stat. Auth.: ORS 286B.075 & 314.605 - 314.675
Stats. Implemented: ORS 314.605 - 314.675
Hist.: OBDD 4-2013(Temp), f. & cert. ef. 5-29-13 thru 11-25-13

123-094-0010

Definitions

(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 period measured from the commencement of the term of the qualifying investment contract; and

(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.

(5) “Qualifying investment contract” means a contract between the State of Oregon and a taxpayer that meets the requirements of ORS 314.605 to 314.675 and these Oregon Administrative Rules.

(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.

Stat. Auth.: ORS 286B.075 & 314.605 - 314.675
Stats. Implemented: ORS 314.605 - 314.675
Hist.: OBDD 4-2013(Temp), f. & cert. ef. 5-29-13 thru 11-25-13

123-094-0020

Qualifying Investment Contract

(1) The Governor, in consultation with the Director of the Oregon Business Development Department and the Director of the Department of Revenue, may enter into, on behalf of the State of Oregon, a qualifying investment contract with any taxpayer according to the provisions of ORS 314.605 to 314.675.

(2) Any contract executed pursuant to subsection (1) of this section on or after December 14, 2012, and before the effective date of this 2012 special session Act that meets the requirements of a qualifying investment contract is ratified by ORS 314.605 to 314.675.

(3) A taxpayer may not satisfy the requirement that a qualifying investment result in an increase in the number of employees of the taxpayer by gain of another entity’s existing Oregon employees through a merger or acquisition of any portion of that entity.

(4) A qualifying investment contract may not be less than five years’ duration and may not exceed 30 years’ duration.

(5) Under a qualifying investment contract, the taxpayer’s Oregon business income tax liability may not exceed the amount the taxpayer would pay or owe under the single sales factor method for each tax year that ends during the term of the qualifying investment contract.

(6) If a taxpayer that has executed a qualifying investment contract files a report or return with the Department of Revenue for a tax year ending during the term of the qualifying investment contract and reporting personal income taxes or corporate excise or income taxes imposed under ORS Chapter 316, 317 or 318, that are determined in whole or part by apportioning business income using the single sales factor method, the Department of Revenue may not assess a deficiency against the taxpayer that is attributable to the use of a different method of apportionment.

Stat. Auth.: ORS 286B.075 & 314.605 - 314.675
Stats. Implemented: ORS 314.605 - 314.675
Hist.: OBDD 4-2013(Temp), f. & cert. ef. 5-29-13 thru 11-25-13

123-094-0030

Reporting

On or before February 15 of each odd-numbered year, the Oregon Business Development Department shall report to the Legislative Assembly in the manner provided in ORS 192.245 regarding the progress of qualifying investment contracts, including whether each taxpayer subject to a qualifying investment contract has complied with the employment requirements.

Stat. Auth.: ORS 286B.075 & 314.605 - 314.675
Stats. Implemented: ORS 314.605 - 314.675
Hist.: OBDD 4-2013(Temp), f. & cert. ef. 5-29-13 thru 11-25-13

123-094-0040

Qualifying Investment Contract Deadlines

A qualifying investment contract may not be entered into:

(1) Before December 14, 2012.

(2) On or after January 1, 2014.

Stat. Auth.: ORS 286B.075 & 314.605 - 314.675
Stats. Implemented: ORS 314.605 - 314.675
Hist.: OBDD 4-2013(Temp), f. & cert. ef. 5-29-13 thru 11-25-13


 

Rule Caption: New division of rules relating to the Local Economic Opportunity Fund.

Adm. Order No.: OBDD 5-2013(Temp)

Filed with Sec. of State: 6-3-2013

Certified to be Effective: 6-3-13 thru 11-30-13

Notice Publication Date:

Rules Adopted: 123-056-0010, 123-056-0020, 123-056-0030, 123-056-0035, 123-056-0040

Subject: This new division of rules relating to the Local Economic Opportunity Fund explains criteria necessary for strategic plans necessary for funding.

Rules Coordinator: Mindee Sublette—(503) 986-0036

123-056-0010

Purpose

As provided in Oregon Revised Statutes (ORS) 285B.260, the Oregon Business Development Department shall administer the Local Economic Opportunity Fund to provide grants for projects that support economic development priorities as identified in approved local economic development strategies.

Stat. Auth.: ORS 285B.230 - 285B.266
Stats. Implemented: ORS 285B.230 - 285B.266
Hist.: OBDD 5-2013(Temp), f. & cert. ef. 6-3-13 thru 11-30-13

123-056-0020

Definitions

(1) “Department” means the Oregon Business Development Department.

(2) “Fund” means the Local Economic Opportunity Fund created by ORS 295B.260.

(3) “Approved Strategic Plan” means a strategic plan determined by the Department to meet the requirements set forth in OAR 123-056-0030.

Stat. Auth.: ORS 285B.230 - 285B.266
Stats. Implemented: ORS 285B.230 - 285B.266
Hist.: OBDD 5-2013(Temp), f. & cert. ef. 6-3-13 thru 11-30-13

123-056-0030

Strategic Plans

In order to be an Approved Strategic Plan, a strategic plan must:

(1) Identify, address and coordinate the economic development priorities of a community or geographic region in the state of Oregon;

(2) Result in economic benefit to the state of Oregon, such as:

(a) Promotes favorable investment climate to strengthen businesses, create jobs, and raise real wages;

(b) Contributes in a manner that improves the national and global competitiveness of Oregon companies;

(c) Assists Oregon communities in building capacity to retain, expand, and attract businesses;

(d) Promotes, fosters and sustains economic development in the state, emphasizing rural and distressed areas; or

(e) Implements economic strategies that reinforce Oregon’s long-term prosperity and livability.

(3) Sets forth, in measurable terms, the extent to which the strategic plan will accomplish the economic development priorities of the community or geographic region of the state of Oregon;

(4) Sets forth, in measurable terms, the extent to which the strategic plan will accomplish the Department’s performance standards as adopted by the Oregon Business Development Commission; and

(5) Be formally adopted by a municipality, a special district, a port, or other governmental entity.

Stat. Auth.: ORS 285B.230 - 285B.266
Stats. Implemented: ORS 285B.230 - 285B.266
Hist.: OBDD 5-2013(Temp), f. & cert. ef. 6-3-13 thru 11-30-13

123-056-0035

Distribution of Funds

The Department, in its sole discretion, shall determine grants awarded from the Fund. The grant must support implementation of a project included in an Approved Strategic Plan.

Stat. Auth.: ORS 285B.230 - 285B.266
Stats. Implemented: ORS 285B.230 - 285B.266
Hist.: OBDD 5-2013(Temp), f. & cert. ef. 6-3-13 thru 11-30-13

123-056-0040

Waiver of Non-Statutory Requirements

The Director or the Director’s designee may waive non-statutory requirements of this division of administrative rules, if demonstrated that such a waiver serves to further the goals and objectives of ORS 285B.230 to 285B.266, and that it contributes to sound economic or community development.

Stat. Auth.: ORS 285B.230 - 285B.266
Stats. Implemented: ORS 285B.230 - 285B.266
Hist.: OBDD 5-2013(Temp), f. & cert. ef. 6-3-13 thru 11-30-13

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2012.

2.) Copyright 2013 Oregon Secretary of State: Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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