Oregon State Archives

The Oregon Administrative Rules contain OARs filed through April 15, 2013

QUESTIONS ABOUT THE CONTENT OR MEANING OF THIS AGENCY'S RULES?
CLICK HERE TO ACCESS RULES COORDINATOR CONTACT INFORMATION

OREGON BUSINESS DEVELOPMENT DEPARTMENT

DIVISION 24

DISTRESSED AREAS

123-024-0001

Scope and Purpose

In accordance with ORS 285A.020(5), the department shall give priority when providing funding for a project, a program or activity, to counties, cities, communities or other geographic areas that are designated as distressed by the department. The designation of distressed areas must be based on indicators of economic distress, including but not limited to unemployment, poverty and job loss.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.020, 285A.075, 285B.062 & 285B.065
Hist.: EDD 12-1998, f. & cert. ef 8-14-98; EDD 12-2007(Temp), f. & cert. ef. 9-21-07 thru 3-18-08; EDD 10-2008(Temp), f. & cert. ef. 3-20-08 thru 9-15-08; EDD 27-2008, f. 8-28-08, cert. ef. 9-1-08; OBDD 2-2013, f. 3-29-13, cert. ef. 4-1-13

123-024-0011

Definitions

For the purposes of these rules additional definitions may be found in Procedural Rules, OAR 123-001 The following terms shall have the following definitions, unless the context clearly indicates otherwise:

(1) "City" means the area within the corporate limits of any incorporated city in Oregon.

(2) “Quartile” means any of the three values which divide a sorted data set into four equal parts, so that each part represents one fourth of the sampled population.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.020, 285A.075, 285B.062 & 285B.065
Hist.: EDD 12-1998, f. & cert. ef. 8-14-98; EDD 4-2003, f. & cert. ef. 3-26-03; EDD 12-2007(Temp), f. & cert. ef. 9-21-07 thru 3-18-08; EDD 10-2008(Temp), f. & cert. ef. 3-20-08 thru 9-15-08; EDD 27-2008, f. 8-28-08, cert. ef. 9-1-08; EDD 24-2009, f. 11-30-09, cert. ef. 12-1-09; OBDD 2-2013, f. 3-29-13, cert. ef. 4-1-13

123-024-0021

Distressed Area List

At least once per biennium, the department will review the economic conditions in Oregon and prepare a list of distressed areas. The distressed area list on file with the department's Director's Office is adopted as part of these rules by reference. The department will make the distressed area list available to all interested parties. A copy of the distressed area list, as well as further information related to the methodology described in OAR 123-024-0031 and so forth, may be obtained from the Director's Office, Oregon Business Development Department, State Lands Building Suite 200, 775 Summer Street NE, Salem, Oregon 97301-1280.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.095, 285B.062 & 285B
Hist.: EDD 12-1998, f. & cert. ef. 8-14-98; EDD 4-2003, f. & cert. ef. 3-26-03; OBDD 2-2013, f. 3-29-13, cert. ef. 4-1-13

123-024-0031

Methodology for Determining Distressed Areas

The department will consider a county, City, or other geographic area to be a distressed area under one of the following methods:

(1) Using the most recent data available on the date of calculation, a county is considered distressed when, an index is calculated as the product of the values calculated using four composite factors. It is distressed if its index is less then 1.0. If the index is more than 1.0 the county is considered non-distressed. The following are the four factors used to determine a distressed county:

(a) The county's unemployment rate divided by this state's unemployment rate;

(b) The county's per capita personal income divided by the state's per capita personal income;

(d) The sum of the change in the county’s employment over a two year period; or

(2) A City outside of a county identified as a distressed area under subsection (1) of this section may be designated as distressed when its variable values are below the designated threshold value as determined by at least three of the four indicators listed below. The threshold values for each of the four indicators shall be determined by using reliable data from each of the distressed counties based on a demonstrated methodology, as approved by the director of the department. Threshold values are calculated using the most recent 5 year American Community Survey data from the U.S. Census Bureau.

(a) Percent of city population of 25 years old with a bachelor’s degree or higher. The threshold value for variable A is calculated as follows: calculate the third quartile and the inter-quartile range. Multiply the inter-quartile range by 1.5 and add this to the third quartile. This is the threshold value for variable A. Any value above this threshold is not distressed.

(b) The City’s unemployment rate. The threshold value for variable B is calculated as follows: calculate the first quartile and the inter-quartile range. Multiply the inter-quartile range by 1.5 and add this to the first quartile. This is the threshold value for variable B. Any value below this threshold is not distressed.

(c) The percent of the city’s population below the poverty level. The threshold value for variable C is calculated as follows: calculate the third quartile and the inter-quartile range. Multiply the inter-quartile range by 1.5 and add this to the third quartile. This is the threshold value for variable C. A value below this threshold is not distressed.

(d) The City’s per capita personal income. The threshold value for variable D is calculated as follows: calculate the first quartile and the inter-quartile range. Multiply the inter-quartile range by 1.5 and add this to the first quartile. This is the threshold value for variable D. A value above this threshold is not distressed.

(3) A county, City, or other geographic area that has demonstrated in writing, through a Temporary Distressed Petition, to the satisfaction of the director of the department, that it is suffering or is likely to suffer economic distress equal to or greater than those counties and cities qualifying as distressed areas under subsections (1) and (2) of this section. The director shall have the authority to declare counties, cities, and other geographic areas distressed as allowed under the Temporary Methodology for Determining Distressed Areas, OAR 123-024-0046.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.020, 285A.075, 285B.062 & 285B.065
Hist.: EDD 12-1998, f. & cert. ef. 8-14-98; EDD 3-2005(Temp), f. & cert. ef. 4-21-05 thru 10-15-05; Administrative correction 10-19-05; EDD 7-2005(Temp), f. & cert. ef. 10-24-05 thru 12-21-05; EDD 10-2005(Temp), f. & cert. ef. 11-4-05 thru 12-21-05; Administrative correction 1-19-06; EDD 12-2007(Temp), f. & cert. ef. 9-21-07 thru 3-18-08; EDD 10-2008(Temp), f. & cert. ef. 3-20-08 thru 9-15-08; EDD 27-2008, f. 8-28-08, cert. ef. 9-1-08; EDD 4-2009(Temp), f. & cert. ef. 5-7-09 thru 11-2-09; Administrative correction 11-19-09; EDD 24-2009, f. 11-30-09, cert. ef. 12-1-09; OBDD 2-2013, f. 3-29-13, cert. ef. 4-1-13

123-024-0046

Temporary Methodology for Determining Distressed Areas

The following methodology will be used to determine temporarily distressed areas when economic distress is abundant throughout the state of Oregon.

(1) State Temporary Distressed Test: In a given month, if Oregon’s unemployment rate exceeds 8.0%, the County Temporary Distressed Methodology will be used.

(2) County Temporary Distressed Test: In a given month, if Oregon’s unemployment rate exceeds 8.0% and if the county’s unemployment rate exceeds 8.0%, the county is considered temporarily distressed.

(a) When a temporarily distressed county’s unemployment falls below 8.0%, it will remain distressed for 180 days or until the regular distressed communities list is published, whichever is less.

(b) All places and cities within a temporarily distressed county are considered distressed.

(3) Any county that is unable to pass the County Temporary Distressed Test is not considered to be temporarily distressed. All cities or places within a county that is unable to pass the County Temporary Distressed Test may seek temporary distressed status by filing a temporary distressed petition defined in OAR 123-024-0031(3).

(4) Temporary Distressed Petition: Any city or place not considered distressed may submit a formal petition asking for temporary distressed status in accordance with OAR 123-500-0031(3)

(a) Temporary distressed petitions will describe in narrative form local conditions that warrant temporary distressed status.

(b) Local conditions may include, but are not limited to, first-source anecdotal discussions of changes in employment, temporary lay-offs, furloughs, firm closures, firm idlings, reduced sales revenue, home foreclosure rates, welfare assistance, and unemployment assistance.

(c) The temporary distressed status granted under the petitions will last no longer than 180 days or until the normal distressed communities list is published.

(5) If Oregon fails to pass the State Temporary Distressed Test, the regular distressed communities’ methodology will be used in December of the same year. The distressed communities list will be published at this time. All counties, cities, and places will maintain their temporary distressed status until the distressed communities list is published.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.020, 285A.075, 285B.062 & 285B.065
Hist.: EDD 24-2009, f. 11-30-09, cert. ef. 12-1-09; OBDD 2-2013, f. 3-29-13, cert. ef. 4-1-13

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use