OAR 123-668-2500: Additional Conditions in an Urban Zone

For purposes of OAR 123-668-2000(2)(c) and additional conditions imposed on eligible business firms by the sponsor of an urban enterprise zone under ORS 285C.150: (1) The sponsor of the enterprise zone shall abide by OAR 123-668-2000 to 123-668-2400. (2) “Groups of persons” as used in ORS 285C.150(2) may comprise the general populace or labor force or any lesser number of persons, who may not be explicitly defined in terms of geography/residency. (3) When approving the application for authorization, in accordance with OAR 123-674-2300(7), the sponsor of an urban zone must include information that lists and clearly explains the specific additional conditions to which the firm is committing, or to which it may be obligated under certain contingencies, in order to effect and enforce compliance. (4) The written information as described in section (3) of this rule shall appear in a standardized format that conforms to the policy that the zone sponsor has adopted for imposition of such additional conditions, and that is used for all eligible business firms authorized in that urban enterprise zone, including but not limited to a standard performance contract to which firms agree. (5) Failure by a firm to satisfy such additional local conditions of an urban zone may affect the exemption in the following ways: (a) Denial of the authorization under ORS 285C.140(2)(e), but only if the firm does not formally commit to meet the conditions; (b) Refusal of initial qualification for exemption under ORS 285C.175; or (c) Disqualification of an ongoing exemption in accordance with ORS 285C.240(1)(d), except as provided under ORS 285C.240(6). (6) The county assessor has an obligation to effect actions described in subsection (5)(b) or (c) of this rule only insofar as the business firm or zone sponsor has provided timely written notice or evidence of such failure. (7) An eligible business firm shall have the same rights of appeal as provided elsewhere in ORS 285C.050 to 285C.250 for authorization and receipt of the enterprise zone exemption. (8) The policy and standards adopted by the sponsor affect only proposed investments for which an eligible business firm applies for authorization after the date of adoption. (9) The sponsor may impose the additional conditions only pursuant to a policy and standards that: (a) Entail the adoption by the zone sponsor of formal documentation outlining the sponsor’s purposes, process, factors of consideration and so forth; and (b) Contain standards consisting of established and transparent measures, methods or criteria to implement the policy and define the conditions, as well as specific consequences for the firm’s failure to satisfy those conditions. (10) Any imposed additional condition must relate in some way to employment opportunities for one or more groups of persons, through: (a) Actions by the eligible business firm; (b) Use of funds or resources from the firm; (c) Other efforts supported by the firm; or (d) Other means, for which the result is employment-related benefits for groups of persons, consistent with 47 OTR 557 (TC 4167, 1999, Regular Division of the Oregon Tax Court). (11) Any urban zone sponsor that has established and implemented a policy and standards described in this rule shall submit a report under ORS 285C.150(6), which: (a) Is due on or about the anniversary date of the policy’s adoption every four years; (b) Shall be done primarily through the offices of the State Senate President and the Speaker of the Oregon House of Representatives; and (c) Will be copied to the Department, as well as to the chairs of revenue or other relevant legislative committees.