71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 552
House Bill 2010
Sponsored by Representatives MINNIS, SIMMONS, Senators DERFLER,
NELSON (at the request of Portland Harbor Cleanup Coalition)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Creates environmental cleanup districts in areas meeting
specified population and federal Superfund listing requirements.
Authorizes districts to adopt environmental cleanup plans,
provide cleanup services and fund services by issuing revenue
bonds and imposing privilege taxes on apportioned taxable income
of persons occupying property in district.
Exempts property in district from property taxation. Limits
amount of privilege tax to amount of property tax forgone as
result of Superfund listing and exemption.
Appropriates moneys to Emergency Board for allocation to
district to fund initial operations of district.
A BILL FOR AN ACT
Relating to environmental cleanup; creating new provisions;
amending ORS 198.010, 294.316 and 305.620; and appropriating
money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 20 of this 2001 Act:
(1) 'CERCLA' means the federal Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, 42 U.S.C. 9601
et seq., as amended and in effect on December 31, 2000, and
federal regulations adopted thereunder.
(2) 'District' means an environmental cleanup district
established under sections 1 to 20 of this 2001 Act.
(3) 'District board' means the governing body of a district.
(4) 'Environmental cleanup services' means remedial
investigations, feasibility studies, costs of removal, remedial
actions or other acts required pursuant to CERCLA.
(5) 'Occupant' means a person who occupies property.
(6) 'Occupy' means to exercise a lawful right of present use or
possession of real or tangible personal property. An owner of
property may be considered to occupy the property only if the
owner is exercising a lawful right to present use or possession
of the property, and the present use or possession of the
property by the owner consists of activities other than those
activities that the owner is mandated by law to carry out.
(7) 'Tax year,' unless the context requires otherwise, means
the personal income or corporate excise or income tax year of the
taxpayer. + }
SECTION 2. { + (1) In each city of this state with a
population of 350,000 or more and in which an area is first
placed on the National Priorities List described in 42 U.S.C.
9605 after July 1, 2000, and before the effective date of this
2001 Act, there is established an environmental cleanup district.
(2) The territory of the environmental cleanup district shall
consist only of that property for which ownership causes
liability under CERCLA. The district board shall enact an
ordinance that describes the precise boundaries of the district
and may amend that ordinance at any time to reflect changes in
liability under CERCLA. An emergency may not be declared in an
ordinance described in this subsection.
(3) An environmental cleanup district established under this
section shall constitute a municipal corporation of this state
and a public body, corporate and politic, exercising public
power. A district shall be considered a unit of local government
for purposes of ORS 190.003 to 190.125, a public employer for the
purposes of ORS 236.610 to 236.640 and a political subdivision
for purposes of ORS 305.620.
(4) An environmental cleanup district is not subject to ORS
294.305 to 294.565. + }
SECTION 3. { + (1) The governing body of an environmental
cleanup district shall consist of a board of five members, who
shall be appointed by the Governor as follows:
(a) The Governor shall appoint two members who own property, or
who represent separate owners of property, in the district, each
property of which, without diminution in value due to CERCLA
liability, has a fair market value of at least $___ million.
(b) The Governor shall appoint two members who own property, or
represent separate owners of property, within the district.
(c) The Governor shall appoint one member with expertise in
undertaking environmental cleanup services under CERCLA.
(2) All appointments of members of the board by the Governor
are subject to Senate confirmation in the manner provided in ORS
171.562 and 171.565.
(3) The term of office of a district board member is four
years. A board member is eligible for reappointment. Before the
expiration of the term of a board member, or following the
member's resignation or inability to continue service, the
member's successor shall be appointed by the Governor so that the
composition of the board remains as described in subsection (1)
of this section. A board member whose term has expired shall
continue to serve until a successor has been appointed. + }
SECTION 4. { + (1) The members of the first district board of
an environmental cleanup district established under sections 1 to
20 of this 2001 Act shall be appointed by the Governor on or
before March 1, 2002.
(2) The Governor shall establish a temporary chairperson of the
board from among the board members described in subsection (1) of
this section and establish a time, not later than April 1, 2002,
for the first meeting of the board. The board shall select a
permanent chairperson from among its members at the first meeting
of the board.
(3) Notwithstanding section 3 of this 2001 Act, the first term
of:
(a) The first district board member described in section 3
(1)(c) of this 2001 Act shall be one year; and
(b) The first district board members described in section 3
(1)(b) of this 2001 Act shall be two years. + }
SECTION 5. { + The district board of an environmental cleanup
district shall have the following duties and powers:
(1) To undertake within the district any environmental cleanup
services or other action that is required by the United States
Environmental Protection Agency pursuant to CERCLA or the Oregon
Department of Environmental Quality pursuant to ORS 465.200 to
465.510 and 465.900 or that the district board determines is a
necessary and proper action to comply with CERCLA.
(2) To supervise, manage or direct the actions described in
subsection (1) of this section that are undertaken by other
persons.
(3) To acquire by purchase, gift or devise, such real and
personal property and rights of way, either within or without the
district, as in the judgment of the district board are necessary
or proper in the exercise of the powers of the district, and to
pay for and hold the same.
(4) To make and accept contracts, deeds, releases and documents
that, in the judgment of the district board, are necessary or
proper in the exercise of the powers of the district.
(5) To employ and pay necessary agents, employees and
assistants.
(6) To sue and be sued.
(7) To perform any act necessary or proper to the complete
exercise and effect of any of the district's powers under
sections 1 to 20 of this 2001 Act. + }
SECTION 6. { + (1) The district board of an environmental
cleanup district may enact ordinances relating to:
(a) The provision of environmental cleanup services within the
district;
(b) The issuance of bonded indebtedness, the proceeds of which
are used to fund environmental cleanup services within the
district;
(c) The imposition of privilege taxes as described in sections
9 to 19 of this 2001 Act;
(d) The management of district operations; or
(e) Any other purpose promoting the environmental cleanup of
the district.
(2) District ordinances shall be enacted in accordance with ORS
198.510 to 198.600. + }
SECTION 7. { + (1) An environmental cleanup district that is
established under sections 1 to 20 of this 2001 Act shall adopt
an environmental cleanup plan for the district.
(2) The district shall provide for public involvement in all
stages of the development of an environmental cleanup plan.
(3) An environmental cleanup plan shall include:
(a) A description of each environmental cleanup service to be
provided by the district;
(b) A description of each location within the district at which
an environmental cleanup service is to be performed;
(c) The amount of indebtedness to be issued under the plan to
perform environmental cleanup services; and
(d) Any other order or written directive required by the United
States Environmental Protection Agency pursuant to CERCLA or the
Oregon Department of Environmental Quality pursuant to ORS
465.200 to 465.510 and 465.900.
(3) The district board shall approve an environmental cleanup
plan by enacting an ordinance incorporating the terms of the plan
by reference. An emergency may not be declared in an ordinance
that approves an environmental cleanup plan.
(4) An environmental cleanup plan adopted as provided in this
section may thereafter be amended at any time. A plan may be
amended using the same procedures as used in the initial adoption
of the plan. + }
SECTION 8. { + (1) An environmental cleanup district may issue
revenue bonds in the manner provided in ORS 288.805 to 288.945
for the purposes of implementing the environmental cleanup plan
set forth in section 7 of this 2001 Act and undertaking and
carrying out environmental cleanup services within the
district. + } { +
(2) Revenue bonds issued by the district, and bonds refunding
such bonds, may be repaid only by proceeds from the sale of
refunding revenue bonds or by revenues raised by a privilege tax
imposed by the district pursuant to sections 9 to 19 of this 2001
Act.
(3) A district may otherwise borrow money and accept advances,
loans, grants and any other form of financial assistance from the
federal government, the state, county or other public body, or
from any source, public or private, for the purposes of
undertaking and carrying out environmental cleanup services in
the district. + }
SECTION 9. { + (1) An environmental cleanup district may elect
to impose an annual privilege tax on each personal income or
corporate excise or income taxpayer occupying property within the
district. If an election is made by the district to impose an
annual privilege tax, each taxpayer shall be subject to the tax
for the privilege of receiving environmental cleanup services in
the district.
(2) A district board of a district electing to impose a
privilege tax pursuant to sections 9 to 19 of this 2001 Act, on
or before July 1 of each year, shall determine:
(a) The amount of revenues necessary to make all of the
payments of principal and interest on bonds issued by the board
under section 8 of this 2001 Act that are due during the next
calendar year; and
(b) The amount of revenues necessary to fund all administrative
operations of the district for the next calendar year.
(3) The board shall enact an ordinance setting forth the
amounts determined in subsection (2) of this section. An
emergency may not be declared in an ordinance described in this
subsection. The board shall send a certified copy of the
ordinance to the Department of Revenue.
(4) The department shall estimate the rate that, when imposed
on taxable income as apportioned to occupants of property within
the district under section 10 of this 2001 Act, will raise a
total of the following amounts:
(a) The amounts set forth in the ordinance described in
subsection (3) of this section; and
(b) An amount sufficient to reimburse the department for the
expenses of the department in administering the tax imposed under
sections 9 to 19 of this 2001 Act.
(5) The rate of tax that is determined under subsection (4) of
this section shall be the rate of the privilege tax for tax years
beginning in the next calendar year. + }
SECTION 10. { + (1) A privilege tax imposed by an
environmental cleanup district at the rate determined under
section 9 of this 2001 Act shall be imposed on that portion of
the taxable income of each occupant of property within an
environmental cleanup district that is apportioned to the
district under this section.
(2) Taxable income of a taxpayer shall be apportioned to a
district by multiplying the entire Oregon taxable income of the
taxpayer for the tax year, including nonbusiness income described
in ORS 314.625, by a property factor. The property factor shall
be a fraction, the numerator of which is the average value of the
taxpayer's real and tangible personal property owned or rented
and used in the environmental cleanup district during the tax
year and the denominator of which is the average value of the
taxpayer's real and tangible personal property owned or rented
and used in this state during the tax year.
(3) ORS 314.655 (2) and (3) are applicable in determining
average values under this section. + }
SECTION 11. { + (1) A taxpayer subject to an environmental
cleanup district privilege tax shall pay estimated taxes to the
Department of Revenue on or before the 15th day following the
conclusion of each quarter of the tax year.
(2) Estimated taxes for each quarter shall equal 25 percent of
the total privilege tax paid by the taxpayer for the preceding
tax year.
(3) Estimated privilege taxes shall be paid in the manner
prescribed by the Department of Revenue. + }
SECTION 12. { + Notwithstanding section 11 of this 2001 Act,
estimated privilege taxes need not be paid for the first tax year
in which a taxpayer is subject to the environmental cleanup
district privilege tax under sections 9 to 19 of this 2001
Act. + }
SECTION 13. { + (1) Notwithstanding sections 9 and 10 of this
2001 Act, an environmental cleanup district privilege tax may not
exceed an amount computed as follows:
(a) Multiply the total consolidated ad valorem property tax
rate determined under ORS 310.147 (3)(b) for the property tax
year beginning in the calendar year in which also begins the
personal income or corporate excise or income tax year of the
taxpayer; by
(b) The assessed value of the property occupied by the taxpayer
under ORS 308.146 for that property tax year, determined without
taking into account:
(A) Any diminution in assessed value due to CERCLA liability;
or
(B) Any exemption or special assessment for which the property
would qualify, other than the exemptions for publicly owned
property in ORS 307.040, 307.065, 307.090 and 307.110 (3).
(2) A taxpayer seeking a reduction in tax under this section
must, in conjunction with filing the privilege tax return, file a
statement setting forth the taxpayer's determination of the
assessed value of the property under subsection (1) of this
section and the maximum amount of privilege tax as computed under
subsection (1) of this section.
(3) The Department of Revenue may adjust the taxpayer's
determination of the assessed value of the property and make a
corresponding adjustment to the amount of privilege tax due. The
department shall send a notice describing the adjustment to the
taxpayer. If the adjustment results in additional tax, the
taxpayer must pay the additional tax within 60 days of the date
of the adjustment.
(4) A taxpayer may appeal any adjustment of assessed value made
by the department. The appeal shall be made to the board of
property tax appeals next convening 90 days after the date of the
notice of the adjustment. A taxpayer may thereafter appeal an
order of the board of property tax appeals to the Oregon Tax
Court under ORS 305.275. + }
SECTION 14. { + A person who occupies residential property in
an environmental cleanup district, including a person occupying
one or more units of residential rental property, is exempt from
any privilege tax imposed by an environmental cleanup district
pursuant to sections 9 to 19 of this 2001 Act. + }
SECTION 15. { + (1) A taxpayer subject to an environmental
cleanup district privilege tax shall file a privilege tax return
and pay the tax, less the total amount of estimated tax payments
for the tax year made under section 11 of this 2001 Act, on the
earlier of:
(a) The date on which the taxpayer's personal income or
corporate income or excise tax return is filed; or
(b) The date on which the taxpayer's personal income or
corporate income or excise tax return is due to be filed.
(2) The return shall be on a form prescribed by the Department
of Revenue and shall accompany the taxpayer's personal income or
corporate excise or income tax return for the tax year. + }
SECTION 16. { + (1) If the amount of privilege tax paid by a
taxpayer under sections 9 to 19 of this 2001 Act exceeds the
amount of tax payable, the Department of Revenue shall refund the
amount of the excess to the taxpayer.
(2) A refund does not include interest if the refund is made
within 180 days of the date the return is filed.
(3) If a refund is made more than 180 days after the date the
return is filed, the refund shall include interest at the rate
established under ORS 305.220 for each month or fraction of a
month from the date of payment of the excess amount to the date
of refund.
(4) Refund payments shall be made from the suspense account
described in section 19 of this 2001 Act. + }
SECTION 17. { + (1) Unless the context requires otherwise, the
provisions of ORS chapters 305, 314 and 316 (or ORS chapter 317,
in the case of a taxpayer that is a corporation) as to the audit
and examination of reports and returns, determination of
deficiencies, assessments, claims for refunds, penalties,
interest, jeopardy assessments, warrants, conferences and appeals
to the Oregon Tax Court, and procedures relating thereto, apply
to sections 9 to 19 of this 2001 Act.
(2) The privilege tax imposed by an environmental cleanup
district pursuant to sections 9 to 19 of this 2001 Act may not
become a lien on property owned or occupied by a taxpayer. The
privilege tax is a personal liability of a taxpayer subject to
the tax until the tax is paid. The privilege tax does not cease
to be a personal liability of the taxpayer when the taxpayer
ceases to occupy property within an environmental cleanup
district.
(3) A taxpayer that begins to occupy property within an
environmental cleanup district is not subject to the privilege
tax for any period of time occurring prior to the date the
taxpayer begins to occupy property within the environmental
cleanup district. + }
SECTION 18. { + If a taxpayer occupies property in an
environmental cleanup district for only part of a tax year, the
tax otherwise due under sections 9 to 19 of this 2001 Act shall
be prorated based on the number of days during the tax year that
the taxpayer occupied the property. + }
SECTION 19. { + (1) All moneys received by the Department of
Revenue from the privilege tax imposed by an environmental
cleanup district pursuant to sections 9 to 19 of this 2001 Act,
including related interest and penalties, shall be held in a
suspense account established under ORS 293.445.
(2) After the payment of refunds of the privilege tax:
(a) Amounts necessary to reimburse the Department of Revenue
for the expenses of the department in administering sections 9 to
19 of this 2001 Act are continuously appropriated to the
department and shall be deposited in the Department of Revenue
Administration Account established under ORS 305.063; and
(b) All other moneys shall be distributed to the environmental
cleanup district as provided in the agreement entered into
between the department and the district under ORS 305.620. + }
SECTION 20. { + An environmental cleanup district established
under sections 1 to 20 of this 2001 Act may be dissolved in the
manner provided in ORS 198.920 to 198.955. + }
SECTION 21. { + Section 22 of this 2001 Act is added to and
made a part of ORS chapter 307. + }
SECTION 22. { + (1) Real and personal property located in an
environmental cleanup district as of the assessment date is
exempt from ad valorem property taxation.
(2) The exemption described in this section does not apply to
residential property or commercial property that consists solely
of multi-unit residential rental property. + }
SECTION 23. ORS 198.010 is amended to read:
198.010. As used in this chapter, except as otherwise
specifically provided, 'district' means any one of the following:
(1) A people's utility district organized under ORS chapter
261.
(2) A domestic water supply district organized under ORS
chapter 264.
(3) A cemetery maintenance district organized under ORS chapter
265.
(4) A park and recreation district organized under ORS chapter
266.
(5) A mass transit district organized under ORS 267.010 to
267.390.
(6) A metropolitan service district organized under ORS chapter
268.
(7) A special road district organized under ORS 371.305 to
371.360.
(8) A road assessment district organized under ORS 371.405 to
371.535.
(9) A highway lighting district organized under ORS chapter
372.
(10) A health district organized under ORS 440.305 to 440.410.
(11) A sanitary district organized under ORS 450.005 to
450.245.
(12) A sanitary authority, water authority or joint water and
sanitary authority organized under ORS 450.600 to 450.989.
(13) A vector control district organized under ORS 452.020 to
452.170.
(14) A rural fire protection district organized under ORS
chapter 478.
(15) An irrigation district organized under ORS chapter 545.
(16) A drainage district organized under ORS chapter 547.
(17) A water improvement district organized under ORS chapter
552.
(18) A water control district organized under ORS chapter 553.
(19) A weather modification district organized under ORS
558.200 to 558.440.
(20) A port organized under ORS 777.005 to 777.725 and 777.915
to 777.953.
(21) A geothermal heating district organized under ORS chapter
523.
(22) A transportation district organized under ORS 267.510 to
267.650.
(23) A library district organized under ORS 357.216 to 357.286.
(24) A 9-1-1 communications district organized under ORS
401.807 to 401.857.
{ + (25) An environmental cleanup district established under
sections 1 to 20 of this 2001 Act. + }
SECTION 24. ORS 294.316 is amended to read:
294.316. The provisions of ORS 294.305 to 294.565 do not apply
to the following municipal corporations:
(1) Drainage districts organized under ORS chapter 547;
(2) District improvement companies organized under ORS chapter
554;
(3) Highway lighting districts organized under ORS chapter 372;
(4) Irrigation districts organized under ORS chapter 545;
(5) Road districts organized under ORS chapter 371;
(6) Soil and water conservation districts organized under ORS
chapter 568 that will not levy an ad valorem tax during the
ensuing year;
(7) Municipal public utilities operating under separate boards
or commissions, authorized under ORS chapter 225 and city
charters, and people's utility districts organized under ORS
chapter 261, both operating without ad valorem tax support during
the ensuing year;
(8) Housing authorities organized under ORS 446.515 to 446.547
and ORS chapter 456 that are not carrying out urban renewal
activities using a division of ad valorem taxes under ORS 457.440
during the ensuing year;
(9) Water control districts organized under ORS chapter 553
that will not levy an ad valorem tax during the ensuing year;
(10) Hospital financing authorities organized under ORS 441.525
to 441.595;
(11) Export trading corporations organized under ORS 777.755 to
777.800; { - and - }
(12) Diking districts organized under ORS chapter 551
{ - . - } { + ; and + }
{ + (13) Environmental cleanup districts established under
sections 1 to 20 of this 2001 Act. + }
SECTION 25. ORS 305.620 is amended to read:
305.620. (1) Any state agency or department may enter into
agreements with any political subdivision of this state for the
collection, enforcement, administration and distribution of local
taxes of the political subdivision imposed upon or measured by
gross { + , + } { - or - } net { + or Oregon taxable + }
income, wages or net earnings from self-employment or local
general sales and use taxes.
(2) The department or agency shall prescribe the rules by which
the agreements entered into under subsection (1) of this section
are administered.
(3) The department or agency shall prescribe the rules by which
the taxes described by subsection (1) of this section are
administered, collected, enforced and distributed.
(4) A political subdivision may appear as an intervenor at any
conference held by the Department of Revenue or conference,
hearing or proceeding held by another department or agency in
connection with a local tax administered by the department or
agency. The political subdivision may be represented by its own
counsel. The department or agency shall adopt rules governing the
procedures to be followed by the political subdivision in making
an appearance.
(5) Costs incurred by the department or agency in the
administration, enforcement, collection and distribution of taxes
under the agreements entered into under subsection (1) of this
section shall be first deducted from the taxes collected before
distribution is made to the political subdivision which is a
party to the agreement.
(6) The Oregon Tax Court shall have exclusive jurisdiction to
review determinations of the Department of Revenue or orders of
another department or agency relating to the collection,
enforcement, administration and distribution of local taxes under
agreements entered into under subsection (1) of this section.
(7) A proceeding for refund or to set aside additional taxes or
taxes assessed when no return was filed may be initiated before
the state agency or department or as provided in ORS 305.514
(1)(g).
(8) An appeal from a determination or an order may be taken by
the taxpayer or by the political subdivision whose taxes are in
issue, by filing an original and two certified copies of a
complaint with the clerk of the Oregon Tax Court at its principal
office at the state capital, Salem, Oregon, within 60 days after
the notice of the determination of the Department of Revenue or
the order of the department or agency is sent to the taxpayer or
the political subdivision. The filing of the complaint in the
Oregon Tax Court shall constitute perfection of the appeal.
Service of the taxpayer's complaint shall be accomplished by the
clerk of the tax court by filing a certified copy of the
complaint with the administrative head of the department or
agency and a certified copy with the political subdivision.
Service of the political subdivision's complaint shall be
accomplished by the clerk of the tax court by filing a certified
copy of the complaint with the administrative head of the
department or agency and mailing a certified copy of the
complaint to the taxpayer. The complaint of a taxpayer shall be
entitled in the name of the person filing as plaintiff and the
department or agency as defendant. The complaint of a political
subdivision shall be entitled in the name of the political
subdivision as plaintiff and the taxpayer and the department or
agency as defendants. A copy of the order of the department or
agency shall be attached to the original complaint. All
procedures shall be in accordance with ORS 305.405 to 305.494.
SECTION 26. { + (1) In addition to and not in lieu of any
other appropriation, there is appropriated to the Emergency
Board, for the biennium beginning July 1, 2001, out of the
General Fund, the sum of $___ for allocation only to an
environmental cleanup district established under sections 1 to 20
of this 2001 Act for the purpose of funding initial district
operations.
(2) If any of the moneys appropriated by subsection (1) of this
section are not allocated by the Emergency Board prior to
November 1, 2002, the unallocated moneys on that date become
available for any other purpose for which the Emergency Board
lawfully may allocate funds. + }
SECTION 27. { + (1) An environmental cleanup district that has
received funds from the General Fund shall reimburse the General
Fund without interest, in an amount equal to the amount
appropriated from the General Fund to the district, or
appropriated to the Emergency Board and subsequently allocated by
the Emergency Board to the district.
(2) Reimbursement of the General Fund under this section shall
occur when the district board receives revenues from a privilege
tax imposed by the district pursuant to sections 9 to 19 of this
2001 Act in an amount that the district board determines is
sufficient to reimburse the General Fund and fund other district
obligations, but in no event shall reimbursement be later than
June 30, 2005.
(3) Reimbursement under this section shall be considered to be
an administrative expense of the environmental cleanup
district. + }
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