Distressed Areas

Link to law: http://arcweb.sos.state.or.us/pages/rules/oars_100/oar_123/123_024.html
Published: 2015

The Oregon Administrative Rules contain OARs filed through November 15, 2015

 

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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 3-2013, 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 than 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 state's unemployment
rate divided by the county's unemployment rate;
(b) The county's per capita
personal income divided by the state's per capita personal income;
(c) The change in the county’s
average covered payroll per worker over a two year period;
(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
25 years old and over with a bachelor’s degree or higher. The threshold value
for variable A is the percent of Oregon population 25 years old and over with a
bachelor’s degree or higher. If the percent of city population 25 years old
and over with a bachelor’s degree or higher is higher than the percent of
Oregon population 25 years old and over with a bachelor’s degree or higher,
this value is above the threshold and not distressed.
(b) The city’s unemployment
rate. The threshold value for variable B is Oregon’s unemployment rate. If
the city’s unemployment rate is lower than Oregon’s unemployment rate,
this value is below the threshold and not distressed.
(c) Percent of the city population
below the poverty level. The threshold value for variable C is the percent of Oregon
population below the poverty level. If the percent of the city’s population
below the poverty level is lower than the percent of Oregon population below the
poverty level, this value is below the threshold and not distressed.
(d) The city’s per
capita personal income. The threshold value for variable D is Oregon’s per
capita personal income. If the city’s per capita personal income is higher
than Oregon per capita personal income, this value is higher than the threshold
and 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; OBDD 3-2014, f. 2-28-14, cert. ef. 3-3-14
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

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