Welcome to the Woodburn, Oregon Area Chamber of Commerce

Business Groups Unite to Uphold PERS Reforms; $10 Million Secured for New Nanoscience Institute

Business Associations Submit Brief in PERS Case

On July 30, the Oregon Supreme Court will hear oral arguments in the case to overturn last year's PERS reforms. In advance of the hearing, Associated Oregon Industries, the Oregon Business Association, the Oregon Business Council, and the Portland Business Alliance jointly submitted a friend-of- the-court (amicus) brief to the court urging it to uphold the changes.

The four business associations, which had never participated together in a court proceeding, emphasize that the outcome of the case will have an enormous impact on Oregon's economic health and the ability of government to provide public services. Read Ronald Parker's 'In My Opinion' commentary on the PERS case (published in The Oregonian on June 28).

Read more about the business response to the PERS court challenge, and download the amicus brief, at the Oregon Business Plan news page.

Senators Wyden, Smith Secure $10 Million for Nanoscience Institute

Senators Ron Wyden and Gordon Smith announced that the U.S. Senate approved $10 million in defense-related projects for the Oregon Nanoscience and Microtechnologies Institute (ONAMI). Federal funding for the Institute is a top priority in the Oregon Business Plan. Read more about the federal funding at the Oregon Business Plan news page.

Track Performance of State Agencies from Your Computer

The Oregon Progress Board has posted the performance reports of Oregon state agencies online. With one click you can view how each agency is progressing on its mission and key work. Go to the online performance reports webpage .

Business Input Requested on Hazardous Material Regulations

The Office of Regulatory Streamlining would like to interview companies -- big or small -- that deal with hazardous material regulation. The interviews will take about an hour and the purpose is to identify the critical conflicts, confusion, and problems that arise with these regulations so that they can be fixed. If you deal with haz mat regulations please contact Pat Allen at 503-947-7061 or Patrick.Allen@state.or.us.

Forest Sector Event Highlights Economic Opportunities in Oregon

A recent symposium in Portland highlighted opportunities for Oregon's forest sector to enhance its contributions to Oregon's economy while preserving the state's environmental commitments. An economic study unveiled at the event shows the potential for creation of thousands of new jobs if sustainable harvests are increased. The symposium was co-sponsored by the Oregon Forest Resources Institute, the Oregon Department of Forestry, the OSU College of Forestry and the World Forestry Center. See presentations from the event, including details of the new economic study, at the symposium website.

Statewide Festival Will Celebrate Oregon's World-Class Food, Drink, and Music

After twenty years as the state's largest food, beverage and music event, The Bite of Portland becomes...The Bite of Oregon. In conjunction with the state's "Brand Oregon" campaign, and on The Bite's 21st birthday, the festival re-introduces itself as the premier showcase of the epicurean and musical bounty of the state of Oregon. View a complete listing of the great chefs, restaurants, wineries, and musicians showcasing their work (August 13-15) at The Bite's website: http://www.biteoforegon.com/

State Launches Only Online Directory of Industrial Lands in the U.S.

A recently unveiled website -- OregonProspector.com -- allows business officials to easily find land in Oregon for corporate expansions and relocations. The website, the only one of its kind in the United States, lets users search for land by city, county, property type, and size, as well as whether or not the site is certified as "project-ready" through the state's new certification program. Go to OregonProspector.com to try out the new service.

Business Plan Initiative Update Coming Soon

Over the next few weeks, the Oregon Business Plan staff and partners will update all of the action items on the online initiative tracker. Look in your inbox soon for an email alerting you to the posting of this comprehensive progress report on the Oregon Business Plan initiatives.

Introduce Others to the Business Plan

Keep people informed about the latest successes of the Oregon Business Plan by forwarding this email to business and community groups. If you wish to add or remove an email address from our update list, contact us at info@OregonBusinessPlan.org. If you would like to add your organization's name to our endorsement list, please visit http://www.oregonbusinessplan.org/endorse.html.

More info? Visit: www.OregonBusinessPlan.org

2004 Initiative Guide Unveiled, Date for Summit Announced

Initiative Guide Released The Oregon Business Plan Steering Committee today unveiled their updated list of policy recommendations for the state and announced that the 3rd Annual Leadership Summit will be held December 6, 2004.

During the last three months, the Oregon Business Plan Steering Committee consulted with the state’s business, elected, and community leaders to refine and update the initiatives from the original Business Plan adopted in January 2003. Several initiatives in the 2004 Initiative Guide were reorganized and contain additional action items. For 2004, the Business Plan policy initiatives are organized into six categories—Public Finance, People, Place, Productivity, Pioneering Innovation, and Branding. View the Oregon Business Plan 2004 Initiative Guide!

Elected Leaders Comment on Initiative Guide, Plan Progress Continuing a partnership that began with the first Leadership Summit in December 2002, the Oregon Business Plan Leadership Committee—Senators Ron Wyden and Gordon Smith, Governor Ted Kulongoki, Senate President Peter Courtney, and House Speaker Karen Minnis—will work with the business community to achieve many of the recommendations in the 2004 Initiative Guide. Read comments from all five members of the Leadership Committee at www.OregonBusinessPlan.org.

Initiative Tracker Updated The Initiative Tracker at www.OregonBusinessPlan.org has been updated to reflect the information in the 2004 Initiative Guide. Click on any of the initiative links below to view recommendations, progress reports, and key documents.

Public Finance
Stabilize Public Services Financing and Budgeting

Pioneering Innovation
Support Traded-Sector Industry Cluster Development
Increase Oregon’s Capacity to Commercialize Research
Increase Management Capacity and Access to Capital

People
Continue to Build a First-Rate K-12 Education System
Invest Differently in Post-Secondary Education to Ensure Access and Boost Oregon's Economy

Place
Enhance Forest Resources Benefits to the Economy and Environment

Productivity
Enhance Oregon's Transportation Infrastructure
Make Land Available for Traded-Sector Industry Development
Simplify and Streamline Regulation and Permitting

Branding
Brand and Market Oregon More Aggressively

Two-Day Event Will Focus on Oregon Forests A two-day symposium, sponsored by the Oregon Forest Resources Institute and Oregon State University, will highlight opportunities for enhancing the contribution of Oregon's forest sector to the state's economy and examine the relationship with global forest sustainability. The symposium, "Oregon's Forest Sector," will be held April 28-29 at the World Forestry Center. For more information, or to register, click here.

16th Annual Entrepreneurship Luncheon & Trade Show The Oregon Association of Minority Entrepreneurs is holding its annual Conference and Trade Show at the Oregon Convention Center on May 6. The Trade Show is designed to help businesspeople increase their connections with minority owned companies and sample their diverse products and services. For more information, visit the OAME website.

Introduce Others to the Business Plan Keep people informed about the latest with the Oregon Business Plan by forwarding this email to business and community groups. If you wish to add or remove an email address from our update list, contact us at info@OregonBusinessPlan.org. If you would like to add your organization's name to our endorsement list, please visit http://www.oregonbusinessplan.org/endorse.html.

More info? Visit: www.OregonBusinessPlan.org

SB 63 Establishes a process for the rescheduling of certain workers’ compensation hearings when one or more potentially responsible employers or insurers are involved. Workers’ compensation cases are required to be set within 90 days of the initial hearing request Employers and insurers are allowed 60 days to accept or deny claims from the date the claim is presented. When denial of the claim occurs, a worker has 60 days to request a hearing. Hearings are frequently postponed to allow other employers or insurers an opportunity to accept or deny the claim. This has resulted in delays of four to eight months. This bill would authorize the Administrative Law Judge to reschedule hearings to allow inclusion of all employers and insurers with potential interest in the claim.

SB 233 Allows unemployment insurers to terminate liability with 30 day termination notices to employers. Authorizes Employment Division Director to specify surety permitted to demonstrate ability to meet financial obligations. Eliminates claim closure penalty and requirement for Oregon Attorney General to review claim. Establishes identical appeal periods for workers and employers.

An unemployment insurer is held liable to provide workers’ compensation coverage for 30 days after the Employment Division receives the notice of termination. This creates an unintended liability where policies had been previously terminated. The penalty for employers who fail to provide workers’ compensation insurance for employees has increased to approximately $8 million per year due to legislative changes. The system retained a second civil penalty to non-complying employers when claims are closed. The cost to administer the claim closure penalties exceeds benefits to the system.

Employers are deemed non-complying where a policy is in force, but the insurer has not filed the required Guaranty Contract with the division. Workers have 30 days to appeal an agency order, employers have 60 days. Under current law, it is unclear whether self-insured entities that remain solvent after a parent corporation has filed bankruptcy would be required to meet their workers’ compensation responsibility. This bill establishes 30-day appeal periods for employees and employers and requires self-insured entities to maintain proper unemployment insurance bonding.

234 Eliminates review of certain temporary rules by Workers’ Compensation Management-Labor Advisory Committee. The Workers’ Compensation Management-Labor Advisory Committee (MLAC) is a Governor appointed, 10-member committee that includes five labor representatives and five management representatives. MLAC provides a public forum for business and labor to explore and resolve issues involving workers' compensation. The committee is charged by law with studying the workers' compensation system, including decisions of the courts which have a significant impact, the adequacy of benefits, medical and legal costs, the adequacy of assessments paid into the department's reserve programs, and the operation of programs funded by the Workers' Benefit Fund. Statute requires MLAC to review all temporary rules adopted by the director. MLAC does not approve temporary rules. Temporary rules are special rules for individuals whose injuries do not fit within broad statutory parameters. MLAC meets quarterly during the calendar year which makes reviewing temporary rules inefficient and unnecessary. Patterns for statutory change are recorded by the Department of Consumer and Business Services and brought to MLAC for consideration. SB 234 removes the requirement that MLAC approve temporary rules

HB 2075 Revises Oregon Business Corporations Act of 1987 to conform with Model Business Corporations Act. HB 2975-A updates the Oregon Business Corporations Act, adopted in 1987, and brings it into compliance with the Model Business Corporations Act (MBCA). The MBCA is periodically updated by the Committee on Corporate Law of the American Bar Association Business Law Section.

SB 215 Eliminates requirement cities or counties pass resolution in support of Oregon Business Development Fund (OBDF) project. Restricts county limit on OBDF loans and increases maximum OBDF loan amount. Allows Economic and Community Development Department to make initial deposits for Capital Access Program. Eliminates requirement of Insurance Account for industrial development bonds.

The OBDF was created in the 1980s by the Oregon Legislature. Subsequent legislative sessions have placed restrictions and set-asides on the fund. This has constricted Economic and Community Development Department attempts to assist communities and businesses with opportunities for business investment and job creation.

The 2001 Legislature instructed the department to develop ways to make funds more available and processes more streamlined. This is one of two bills created to attain those goals.

HB 2267 Imposes a statewide 1% tax on transient lodging to be administered by the Department of Revenue and transfers the revenue, net of administrative costs, to the Oregon Tourism Commission Account to fund state tourism marketing programs and to implement a regional cooperative tourism marketing program. Requires lodging provider to collect the tax, retain 5% for reimbursement, and remit the balance quarterly to the Department. Specifies reporting and administrative procedures. Limits administrative expense to 2% of collections. Exempts records from disclosure. Applies to lodging on or after January 1, 2004. Abolishes the Oregon Tourism Program and transfer of records and other property of the Program to the Oregon Tourism Commission. Requires Governor to appoint all members and specifies qualifications and terms of members. Specifies duties of Commission. Requires Commission to adopt a budget using expenditure and revenue classifications required for state agencies. Subjects budget is legislative review and recommendations and, for General Fund and Lottery funded activities, to legislative approval. Requires Commission to establish an account in a bank to receive moneys collected, received by, or appropriated to the Commission. With certain exceptions, prohibits new or increased local transient lodging taxes on or after July 1, 2003 and any decrease in the percentage of the revenue used to fund tourism promotion or tourism-related facilities. Allows new and increased tax rates, if at least 70% of the revenue is used to fund tourism promotion or tourism-related facilities. Makes special provisions for when revenues are used for debt finance. Requires refund of local transient lodging taxes imposed after June 30, 2003 but before the effective date of this Act, unless at least 70% of the revenue is used to fund tourism promotion or tourism-related facilities. Defines terms and makes technical changes. Takes effect on 91st day following adjournment sine die.

SB 327 Reduces the requirements for a non-urban enterprise zone. Eliminates the requirements that the county unemployment rate be 1% higher than the prior year, or 50% higher than the State’s unemployment rate. In 1997, the rural enterprise zone program was created. In 1999, SB 245 made a number of changes to the long-term rural enterprise zone program. Currently, 17 zones can be designated a non-urban enterprise zone by the director of the Economic and Community Development Department in the rural, economically lagging areas of the state.

Two tax incentives exist in the rural enterprise zone program: a property tax exemption and a tax credit. The value of property and improvements of large investments in a non-urban enterprise zone are exempt from property tax for at least 7 years and up to 15 years after the facility is completed. All property value is exempt from taxation during the construction period. The investment must be in a county with chronic unemployment or chronic low income. The amount of the investment depends on where the facility is located in the state. The investment must be the lesser of $25 million or 1% of the net real market value of the nonexempt property value in the county. The firm must hire at least 75 full-time employees by the end of five years and the average worker compensation must be at least 50% above the average county wage. This requirement has to be met in any one year of the first 5 years to be reached, and then the wage has to be higher than that year.

The business firm is also offered some flexibility during the period of construction and ramping up to higher capacity utilization and the population of the zone. Starting with 10 full time employees in the 3rd year in a 10,000 (or fewer people) zone, to 35 full time employees in the 3rd year in 40,000 (or fewer people) zones. In addition to the property tax exemption, corporations receive an income tax credit, which is equal to 62.5% of the taxpayer's payroll and employee benefit costs at the facility. The credit applies only to liabilities above a certain amount, depending on the location of the facility with an overall threshold of $1 million. The credits can range from 5-15 years, determined by the Governor. The credit can be carried forward for 5 years. 30% of any taxes paid by the taxpayer receiving the credit are distributed to the local taxing districts, which would have received property taxes from the facility with the exception of school districts. Approval from the Governor's office is necessary for the income tax credit.

HB 2298 Modifies requirements business firms need to meet in order to qualify for small city business development income tax exemption. Allows business firms locating facilities in certain industrial zoned land to qualify for exemption. Takes effect on 91st day following adjournment sine die.

The current exemption would allow a business firm to subtract the income/profits apportionable to a qualified facility from its overall taxable income, on which it pays income or corporate excise taxes to the State of Oregon for a period of 10 years. The exemption was created as an incentive to business firms to locate in certain Oregon cities. The list is increased form 12 (Boardman, Grass Valley, Heppner, Ione, Irrigon, Lakeview, Lexington, Moro, Paisley, Prineville, Rufus and Wasco) to about 35 cities and few more industrial zones. Those cities and zones will expand to Grant, Lake, Malheur, Wallowa, and wheeler from only four counties (Crook, Harney, Marrow, and Sherman) that qualify under current law. In some areas the exemption may be combined with the property tax abatement available in an enterprise zone this is potentially available for about 5 zones that happen to be in both definitions. Changes the required number of employees in eligible locations for a small business from 10 to 5 employees. Offers Development income tax exemption to “industrially zoned land” that is located in a qualified county. The industrially zoned land may be within a port.

HB 2299 Reduces the minimum investment needed to qualify for strategic investment program property tax exemption, if project is located in rural area, while allowing the special districts to opt-out. Grants authority to Oregon Economic and Community Development Commission to establish criteria for projects that are eligible for exemption. Revamps enterprise zone property tax exemption program. Modifies application and annual claim procedures. Reduces minimum investment needed to qualify for long-term non-urban enterprise zone tax incentives. Establishes construction-in-process exemption for property located in enterprise zone. Modifies scope of investments that qualify for electronic commerce income tax credit. Allows for local enterprise zone sponsors to offer exemptions on an annual basis if certain criteria are meet. Exempts centrally assessed properties in enterprise zones. Clarifies how fees collected in the Strategic Investment Program will be distributed. Deletes requirement that a contractor or subcontractor pay the prevailing wage for a locality where construction, addition, modification or installation are being performed in specific enterprise zones. Allows a company to qualify for property tax exemption under specific condition. Establishes opportunity for rural renewable energy development zones.

The economic development tools for the state include different incentives that vary by size, location, and duration. HB 2299-C* is the result of numerous interim meetings and discussions and the resultant bill deals with several main subjects including the Strategic Investment Program, Enterprise Zones, Short Term Exemptions, Long-Term Rural Enterprise Zone Exemptions, and Electronic Commerce.

SB 232 incorporates provisions of SB 40 which provided a definition of independent contractor for income tax purposes. Establishes application dates for property taxes collected from property involved in bankruptcy. Permits waiver of interest on delinquent property taxes arising from certain error corrections. Takes effect on 91st day following adjournment sine die.

Under ORS 311.795, and 311.796 a county court can cancel delinquent taxes on properties donated to cities, park and recreation districts, playgrounds, city halls, Municipal Corporation or political subdivision, or private nonprofit corporation. The property taxes deferred under the senior and disabled deferral program are not thought of as delinquent, but as deferred to a future date while the general fund pays for current taxes due. This bill attempts to codify this concept in statute. The authority of canceling the taxes is also changed form the county court to the county governing body. The counties do not see a problem with this bill. The independent contractor has multiple definitions in the statutes, as well as federal definitions. The definition in the bill introduces conformity with the IRS definition for the purpose of income tax issues.

The final compromise postpones the effective date of any change in existing independent contractor law until Jan 1, 2006. It creates a task force appointed by the Governor with representation from the Governor’s office, appropriate state agencies, the Oregon State Bar, organized labor and “any other entity or organization that expresses an interest to participate” if their participation is deemed helpful by the governor. The task force must file a report by November 1, 2004.

Interested parties are reminded once again to make arrangements this fall to participate in or track the activities of the task force.

HB 2103 Prohibits person from selling, leasing or renting any payment processing system that provides customer with receipt with more information about customer than last five digits of credit or debit card numbers and customer’s name, and also prohibits person from creating such receipt. Creates schedule when records must be destroyed. Phases in applicability of measure. Authorizes Attorney General or District Attorney to bring to action prevent violation, creates civil penalties for violations of an order or injunction, increases civil penalty for unlawful credit or debit card solicitations, and authorizes court to award attorneys fees to prevailing party for any civil action.

Proponents of this measure state that identity theft is a growing concern. That complaints of identity theft doubled in the year 2002 from 2001 levels. This measure prohibits a person from selling, leasing or renting any payment processing system that provides a customer with a receipt with more information about the customer than the last five digits of their credit or debit card numbers and the customer’s name, thereby preventing debit or credit card information from inadvertently being transmitted to persons not involved in the transaction at issue. This measure also creates a 36-month period in which merchant copies of such records must be destroyed and its applicability is phased-in. It would also add to and increase penalties to discourage unauthorized or inadvertent transmission of such information.

HB 2304 establishes state policy for broadband telecommunications services. Requires the Director of the Office of Emergency Management to make rules to administer the policy and to provide for and staff the emergency operations center to aid the governor and department in performing duties related to homeland security protections and emergency communications.

The 2001 Legislature passed SB 765A, creating the Oregon Telecommunications Coordinating Council, a 12-member interim task force. The council was charged with studying approaches to provide coordinated statewide, regional, and local telecommunication services, including providing services to unserved or underserved areas of the state. The council also studies the manner in which telecommunication investments can be coordinated to facilitate partnerships between the public and private sectors and between state and local governments. HB 2304-A encourages a policy for, and implementation of, broadband telecommunication service in Oregon where it does not already exist in order to ensure sufficient infrastructure for public safety agencies.

HB 2577 modifies name, membership, and duties of Oregon telecommunications Coordinating Council (OTTC). Changes council sunset date from January 2, 2004 to January 2, 2006. Sets forth state policy on broadband services. Directs the Public Utility Commission to include in its annual report the number of public bodies providing basic telecommunications infrastructure so that private entities may use it to provide advanced information and communications services. Directs all state agencies to assist the council in performing its functions.

The bill establishes role of the council. Directs the OTCC to work with health care education providers and the health care industry to develop a plan that uses existing resources to connect education and health care communities for health care education throughout the state. Allows the Economic and Community Development Department to seek federal or private funds to implement the plan. Directs the council to report to appropriate interim committees on the plan by July 1, 2004. Requires the council to provide a report to the Seventy-third Legislative Assembly by February 1, 2005 regarding implementation of the plan. Declares emergency, takes effect on passage.

The 2001 Legislature created the Oregon Telecommunications Coordinating Council, a 12-member interim task force. The council is charged with studying approaches to provide coordinated statewide, regional, and local telecommunication services, including providing services to unserved or underserved areas of the state. The council also studies the manner in which telecommunication investments can be coordinated to facilitate partnerships between the public and private sectors and between state and local governments. The OTCC's mission is to provide all Oregonians with affordable access to broadband digital applications that will improve the quality of life in Oregon communities and reduce the economic gap between well-served and underserved Oregon communities for present and future generations.

"Broadband" is a transmission medium capable of supporting a wide range of frequencies, typically from audio up to video frequencies. It can carry multiple signals by dividing the total capacity of the medium into multiple, independent bandwidth channels, where each channel operates only on a specific range of frequencies. Broadband refers to the ability of the user to view content across the internet that includes large files, such as video, audio and 3D. Broadband refers to an increased ability to do so. The term narrowband can refer to the inability to do so. A user's broadband capability is typically governed by the last mile issue, the connection between the ISP and the user.

HB 2152 represents one of the most significant changes for Oregon businesses. The bill enacts both temporary and permanent tax increases to balance the budget as follows:

HB 3656 appeared on the August 4 “Bills of Interest” table but was not selected fortracking.The bil lrequires Director of Department of Consumer and Business Services to adopt rules setting fees for registration of securities and licensing of broker-dealers, investment advisers and sales persons. Requires director to set fees in amounts equal to national midpoints for similar fees charged by all other state securities regulators. Increases fee collected by Secretary of State for document filing as part of secretary's business registry functions. Directs moneys from fee to sub-account within Secretary of State's Operating Account. Specifies that amounts in sub-account in excess of amount needed to administer business registry functions are transferred to General Fund on quarterly basis. The bill specifies January 1, 2004 operative date. It has been signed by the Governor andtakes effect on 91st day following adjournment sinedie.

This bill deals with two major sets of fees. The first set relates to three categories of fees on securities. The second set deals with the fees forbusiness registration functions. Fees charged in Oregon for the registration of securities, the licensing of broker-dealers and investment advisers, and related notices and filings are prescribed by law. Fees are used by the Department ofConsumer and Business Services (DCBS) to administer and enforce Oregon’s securities laws. Revenue in excess of that required to pay for regulation and maintain adequate cash balances are transferred to the General Fund. The transfer of revenue to the General Fund for the 03-05 biennium is projected to be $4 million

If you do not have acces to the internet, copies of bills and measure status may be obtained by calling 1-800-332-2313. You may also leave a message for our legislator at this toll free number.