Or. Admin. Code § 123-400-0080

Current through Register Vol. 63, No. 11, November 1, 2024

Section 123-400-0080 - [Effective until 11/25/2024] Verification of Obligations

(1) A business shall submit a report and documentation to the department each year by November 15, verifying, as applicable to their agreement, their project's annual:

(a) State and local revenue generated in accordance with section 1(4)(e), chapter 25, Oregon Laws 2023, setting forth the kinds, amounts and timing of the revenue generated; or

(b) New jobs created in accordance with section 1(4)(f), chapter 25, Oregon Laws 2023.

(2) If applicable, based on the negotiated agreement, a company may report both state and local revenue generated as provided in (1)(a) of this section and new jobs created as provided in (1)(b) of this section. The obligation will be considered satisfied with whichever metric (revenue or jobs) is met first.

(3) Only state and local revenue generated, or new jobs created that can be verified by the department will count towards meeting the business's applicable agreement obligations. A business at its discretion may omit revenues or jobs from the calculation.

(4) Businesses obligated to generate state and local revenue in accordance with section 1(4)(e), chapter 25, Oregon Laws 2023 and the agreement shall:

(a) Provide payroll data for the project for purposes of estimating personal income taxes if a business desires to include personal income taxes generated by their project in the calculation of the state and local revenue generated.

(b) Provide tax returns, invoices, statements, and the like as applicable to document the state and local revenue generated if a business desires to include payroll taxes, corporate activity taxes, system development charges, property taxes, community service fees, or other taxes, fees or payments to state and local governments in the calculation of the state and local revenue generated.

(c) Provide applicable and sufficient documentation to allow the department to verify the state and local revenue generated if a business seeks to utilize taxes, fees, or other payments collected by the state or a local government from other businesses that are vendors, suppliers or contractors to the project to meet their agreement obligations.

(d) Provide sufficient documentation to allow the department to verify the expenditures made on project, for those costs the business seeks to utilize in the calculation for meeting their agreement obligation.

(e) Comply with any limitations, exclusions, or requirements included in the agreement.

(5) The agreement may provide for adjustment in specified types of state and local revenues that are included to meet the obligations described in (1)(a) of this rule, depending on the quality of data that is otherwise available relative to verification expectations, including but not limited to information the business effectively does provide or report.

(6) Businesses obligated to create new jobs in accordance with section 1(4)(f), chapter 25, Oregon Laws 2023 and the agreement shall:

(a) Provide documentation of the business' jobs and payroll to be included in the calculation for each quarter during the term of the agreement for the project. The documentation must be consistent with quarterly payroll data submitted to the Oregon Employment Department.

(b) Provide documentation regarding the number of existing jobs and of new hirings for permanent, full-time positions each quarter, associated with the project to be included in the calculation to meet the business's obligations. Documentation shall include annual average wages, job descriptions, weekly hours, pay scale and locations of the job. Only in-state jobs may be utilized to meet the new jobs created obligations.

(c) Provide documentation for other jobs associated with the project, including those in research and development, those partnering with institutions of higher education, and other jobs that are permanent, full-time positions that are associated with the project but are not jobs within the business, that are to be included in the calculation to meet the business's obligations.

(7) Businesses are required to cooperate with the Department, providing the Department with authorizations and access to applicable state and local government records to conduct verification activities for obligations described in section (1) of this rule, including but not limited to those records held by the Oregon Department of Revenue and the Oregon Employment Department.

(8) A business shall submit a report and documentation to the department at least each year by November 15, verifying, as applicable to their agreement, their use of the program grant or loan proceeds for the project. Such an expenditure report shall detail project costs in accordance with section 1 (3)(a), chapter 25, Oregon Laws 2022, and as authorized by the Department under the terms of the agreement. The expenditure report shall:

(a) Detail all capital expenses associated with the project paid for with program grant or loan proceeds, and include the submission of documentation, including itemized receipts for purchases and contractor billings as required by the department. This may include costs of new construction, tenant improvements, equipment, tools, and machinery, and other facility improvements, modifications, installations or enhancements; and

(b) Details other soft costs (design, engineering, legal fees, etc.) of the project paid for with program grant or loan proceeds.

Or. Admin. Code § 123-400-0080

OBDD 32-2023, adopt filed 11/27/2023, effective 11/29/2023; OBDD 11-2024, temporary amend filed 05/30/2024, effective 5/30/2024 through 11/25/2024

Statutory/Other Authority: ORS 285A.075 & OR Laws 2023 Ch. 25 §4

Statutes/Other Implemented: OR Laws 2023 Ch. 25 §4