Agenda Item 4 - UGB Rulemaking <br />December 3-4, 2015 - LCDC Meeting <br />Page 14 of 56 <br />Classification System (NAILS). Jobs in these NAICS categories for each city would be provided <br />in a "look up table" (see Table 6 in division 38, page) which would need to be updated annually. <br />The proposed "employment need path" requires the city to sort jobs into two categories: <br />"commercial" and "industrial." As such, there needs to be a definition of the term "commercial" <br />that helps with this sorting - this definition serves that purpose, indicating the NAICS categories <br />that would be commercial. <br />Section (3): "Industrial" and "Industrial use" are proposed to mean "employment activities <br />including, but not limited to, manufacturing, assembly, fabrication, processing, storage, logistics, <br />warehousing, importation, distribution and transshipment, and research and development, that <br />generate income from the production, handling, or distribution of goods or services, including <br />goods or services in the traded sector, as defined in ORS 285A.010... "Industrial use" includes <br />NAICS Categories 11, 21, 22, 23, 31, 32, 33, 42, 48, and 49. <br />There are at least two definitions of "industrial use" that have been employed in land use laws. <br />One of these is in statute at 197.722, but that definition is clearly limited to a special string of <br />statutes at ORS 197.722 to 197.728 concerning regionally significant industrial areas. That <br />definition states that "industrial use" means "employment activities, including, but not limited to, <br />manufacturing, assembly, fabrication, processing, storage, logistics, warehousing, importation, <br />distribution and transshipment, and research and development, that generate income from the <br />production, handling or distribution of goods or services, including goods or services in the <br />traded sector, as defined in ORS 285A.010." <br />The definition in the Goal 9 rule at OAR 660-009-0005 is very similar, but not identical, to the <br />proposed definition. It says "`Industrial Use' means employment activities generating income <br />from the production, handling or distribution of goods. Industrial uses include, but are not <br />limited to: manufacturing; assembly; fabrication; processing; storage; logistics; warehousing; <br />importation; distribution and transshipment; and research and development. Industrial uses may <br />have unique land, infrastructure, energy, and transportation requirements. Industrial uses may <br />have external impacts on surrounding uses and may cluster in traditional or new industrial areas <br />where they are segregated from other non-industrial activities." <br />In developing a definition for the new simplified UGB process in the initial public draft, the <br />proposed rules provide direction to local governments in "sorting" jobs into various Categories <br />described by the North American Industry Classification System (NAILS). In the "employment <br />path" rules in this division, NAICS categories are divided into "commercial" and "industrial," in <br />order to classify current and projected jobs in the UGB, and with respect to the city's zoning <br />districts. For purposes of industrial jobs and districts, applicable NAICS Categories are 11, 21, <br />22, 23, 31, 32, 33, 42, 48, and 49. The department combined the definition in the Goal 9 rule <br />with this list of categories to create the definition applicable to the simplified process. <br />Section (4): Definition of "Initiates." This is an important term because ORS 197A.305 allows <br />cities that have "initiated" a UGB amendment using the old method to withdraw the amendment <br />and use the simplified process. The term was previously defined in LCDC's rule at OAR 660- <br />024-0000(3) but in this division the definition is slightly different in that it does not mention <br />