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 4336
Senate Bill 978
Sponsored by Senator DECKERT, Representative WITT; Senators
HARTUNG, STARR, Representatives BACKLUND, KROPF, LEONARD (at
the request of Oregon Baseball Campaign, Portland Baseball
Group, Portland Family Entertainment, Portland Oregon Sports
Authority)
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.
Authorizes issuance of bonds to partially finance major league
baseball stadium upon occurrence of specified conditions.
Requires Department of Revenue to estimate amount of income tax
revenues derived from members of major league baseball team.
Requires Governor to make biennial budget recommendation for
repayment of bonds. Requires major league baseball team owner to
pay difference if income tax revenues from members of team are
less than debt service on stadium bonds. Exempts certain sports
facilities from property taxation.
Limits biennial expenditures of Oregon Department of
Administrative Services for payment of grant to fund construction
of stadium.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to sports; appropriating money; limiting expenditures;
and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 5 of this 2001 Act are added to
and made a part of ORS chapter 283. + }
SECTION 2. { + (1) As used in this section and section 3 of
this 2001 Act:
(a) 'Available funds' means funds appropriated or otherwise
made available by the Legislative Assembly to pay amounts due on
bonds authorized by this section.
(b) 'Major league stadium' means a baseball stadium designed
for use by a major league baseball team that is located in the
City of Portland and that has an estimated cost of construction
of at least $300 million.
(2)(a) At the request of the Director of the Oregon Department
of Administrative Services, the State Treasurer may issue bonds
in an aggregate amount to produce net bond proceeds that do not
exceed $150 million.
(b) The proceeds of bonds authorized under this section must be
used to pay for costs of developing, constructing and furnishing
a major league stadium, issuing the bonds, funding bond reserves
and obtaining credit enhancement for the bonds and to pay for the
expenses of the State Treasurer and the department in carrying
out the provisions of this section.
(c) The net bond proceeds, after deducting the costs and
expenses described in paragraph (b) of this subsection other than
the costs of developing, constructing and furnishing a major
league stadium, shall be credited to the Major League Stadium
Bond Proceeds Fund established under section 4 of this 2001 Act.
(3) Bonds authorized by this section shall be payable solely
from available funds and from amounts the bond trustee may
receive from exercising the rights of the bond trustee against a
major league stadium.
(4) The obligation of this state to pay the bonds from
available funds is unconditional. The obligation of this state to
pay the bonds is a limited obligation, payable solely from
available funds, and is not a general obligation of this state. A
holder of the bonds may not compel this state to levy or pledge
any form of taxation, or enforce payment against any moneys or
property of this state except available funds. The bonds do not
constitute a pledge of the full faith and credit of the state or,
except to the extent of available funds, constitute an
indebtedness of this state.
(5) Bonds authorized under this section shall mature over a
period that does not exceed 35 years. To the extent the State
Treasurer determines that it is consistent with the proper
management of the indebtedness of this state, the State Treasurer
shall structure the debt service on the bonds so that the amounts
due on the bonds may be paid from income tax revenues estimated
to be attributable to major league baseball, as determined under
sections 9 to 13 of this 2001 Act.
(6) The State Treasurer or director, as directed by the State
Treasurer, may take any of the following actions in connection
with bonds authorized under this section:
(a) Engage a bond trustee and enter into a trust agreement that
authorizes the trustee to hold and invest bond proceeds, reserves
and debt service payments, to administer, register and pay bonds
and to exercise remedies on behalf of bondholders.
(b) Transfer bond debt service payments held in the Major
League Stadium Debt Service Fund established under section 5 of
this 2001 Act to the bond trustee according to the terms of the
trust agreement.
(c) Require as a condition of requesting the issuance of the
bonds authorized by this section that the owner of the major
league stadium grant mortgages, trust deeds or security interests
in the major league stadium in favor of the bond trustee to
provide additional security for the bonds.
(d) Obtain bond insurance, surety bonds, letters of credit or
other agreements that provide additional credit or security for
bonds authorized under this section and enter into related
agreements, provided that any obligation of this state under any
agreement described in this paragraph is limited to and payable
solely from available funds and amounts the bond trustee receives
for exercising the rights of the trustee against the major league
stadium.
(e) Pledge for the benefit of bondholders any amounts that are
deposited in the Major League Stadium Debt Service Fund
established under section 5 of this 2001 Act or that are
deposited with the bond trustee. A pledge described in this
paragraph shall be valid and binding from the time the pledge is
made, and any amount pledged shall immediately be subject to the
lien of the pledge without any filing, physical delivery or other
act, and any lien of a pledge described in this paragraph shall
be superior to all other claims or liens of any other kind.
(f) Take any other action reasonably required to issue the
bonds authorized by this section.
(7) Notwithstanding ORS 286.505 to 286.545, during the biennium
beginning July 1, 2001, bonds may be issued in a principal amount
that produces net proceeds in the amount of $150 million plus the
amount of any costs and expenses of issuing the bonds as
determined by the State Treasurer.
(8) Prior to and as a condition of issuing bonds authorized
under this section, the State Treasurer shall enter into a
contractual agreement with the owner of the major league baseball
franchise to be based in Portland. The agreement shall provide
that the owner agrees to pay the State Treasurer the amounts due
on bonds authorized by this section (other than amounts due as a
result of the exercise of an option to call or redeem outstanding
bonds) that exceed the amount attributable to income tax revenue
from major league baseball, as determined under section 12 of
this 2001 Act. The agreement also may provide other terms and
conditions the State Treasurer may require. In addition, the
State Treasurer may require that the owner agree to undertake
other actions in connection with the operation of the major
league baseball franchise. + }
SECTION 3. { + Not later than January 1, 2006, the State
Treasurer and the Director of the Oregon Department of
Administrative Services shall enter into a grant agreement with
the City of Portland that provides:
(1) That the director shall request the State Treasurer to
issue the bonds authorized by section 2 of this 2001 Act when all
of the following conditions have been met:
(a) The City of Portland has made a written request to the
director that the bonds authorized under section 2 of this 2001
Act be issued;
(b) A major league baseball franchise has agreed to locate and
be based in Portland and has entered into a legally binding
commitment to remain in Portland for at least 30 years;
(c) All funding to build the major league stadium that is not
based on the net proceeds of bonds described in section 2 of this
2001 Act has been committed; and
(d) The agreement between the owner of the major league
baseball franchise and the State Treasurer that is described in
section 2 (8) of this 2001 Act has been established.
(2) The conditions for the disbursement of bond proceeds to the
City of Portland.
(3) Any other provision that the State Treasurer and the
director determine is necessary to carry out the provisions of
this section or section 2 of this 2001 Act. + }
SECTION 3a. { + The State Treasurer and the Oregon Department
of Administrative Services shall report on an ongoing and
periodic basis to the Joint Ways and Means Committee if the
Legislative Assembly is in session, or the Emergency Board, on
the status of the negotiations, agreements and bond issuance
described in sections 2 and 3 of this 2001 Act. + }
SECTION 4. { + (1) The Major League Stadium Bond Proceeds Fund
is established separate and distinct from the General Fund.
Interest earned by the Major League Stadium Bond Proceeds Fund
shall be retained by the fund.
(2) To the extent permitted under subsection (3) of this
section, moneys in the Major League Stadium Bond Proceeds Fund
are continuously appropriated to the Oregon Department of
Administrative Services for the purpose of funding the
development, construction and furnishing of a major league
stadium, as defined in section 2 of this 2001 Act.
(3) Subject only to section 14 of this 2001 Act (as modified by
Emergency Board action or as modified by the Legislative Assembly
if the Legislative Assembly is in session), the deposit of
sufficient bond proceeds in the Major League Stadium Bond
Proceeds Fund and the terms of a grant agreement described in
section 3 of this 2001 Act, $150 million shall be transferred
from the fund to the City of Portland to pay for capital costs of
developing, constructing and furnishing the major league
stadium. + }
SECTION 5. { + (1) The Major League Stadium Debt Service Fund
is established separate and distinct from the General Fund.
Interest earned by the Major League Stadium Debt Service Fund
shall be retained by the fund.
(2) Amounts appropriated by the Legislative Assembly to the
Major League Stadium Debt Service Fund for the biennium are
continuously appropriated to the Oregon Department of
Administrative Services for the purpose of making debt service
payments on bonds authorized under section 2 of this 2001 Act
that are outstanding during the biennium. + }
SECTION 6. { + Section 7 of this 2001 Act is added to and made
a part of ORS chapter 307. + }
SECTION 7. { + Any sports facility owned by a city with a
population of at least 500,000 is exempt from taxation even if
leased to or operated by a taxpaying entity. + }
SECTION 8. { + Sections 9 to 13 of this 2001 Act are added to
and made a part of ORS chapter 314. + }
SECTION 9. { + As used in sections 9 to 13 of this 2001
Act: + } { +
(1) 'Bonuses' means payments earned by a member of a
professional athletic team as a result of play or performance
during the season, including post-season playoff or championship
play or performance, and payments given for contract signing
unless:
(a) The payment is not conditional upon the contract signee
playing any games for the professional athletic team;
(b) The payment is payable separately from compensation; and
(c) The payment is nonrefundable.
(2) 'Compensation' means:
(a) The total compensation received by a member of a
professional athletic team during the tax year for services
rendered from the beginning of the official preseason training
period of the professional athletic team through the last game in
which the team competes or is scheduled to compete during the tax
year.
(b) Salary, wages, bonuses or any other type of compensation
paid to a member of a professional athletic team during the tax
year for services to a professional athletic team, except that
compensation does not include strike benefits, severance pay,
termination pay, contract signing payments that are not bonuses,
contract or option year buy-out payments, expansion or relocation
payments or any other payment that is not related to services
rendered to the team.
(3) 'Duty days':
(a) Means all days during the tax year from the beginning of
the official preseason training period of the professional
athletic team through the last game in which the team competes or
is scheduled to compete during the tax year, including game days,
practice days, days in which team meetings, promotional events or
preseason training camps are held, and days served with the team
through all post-season games in which the team competes or is
scheduled to compete.
(b) In the case of an individual who becomes or ceases to be a
member of a professional athletic team during the season, means
all days described in paragraph (a) of this subsection during
which the individual is a member of the professional athletic
team.
(c) Does not include days for which a member of the
professional athletic team is not compensated and is not
rendering services for the team in any manner, including days on
which the member is on a disabled status or is suspended without
pay and prohibited from performing any services for the team.
(4) 'Major league stadium' has the meaning given that term in
section 2 of this 2001 Act.
(5) 'Member of a professional athletic team' means a
professional athlete or other individual rendering service to a
professional athletic team, if the compensation the athlete or
other individual receives in a tax year exceeds $100,000. + }
SECTION 10. { + (1) Any person who transacts business in this
state and who pays compensation to a member of a professional
athletic team must withhold eight percent of the compensation.
(2) Amounts withheld pursuant to this section shall be paid to
the Department of Revenue in the time and manner prescribed by
the department by rule.
(3) If the member of the professional athletic team is a
resident of this state, all compensation paid to the member,
whether or not attributable to duty days in this state, shall be
subject to withholding under this section.
(4) If the member of the professional athletic team is not a
resident of this state, a portion of the compensation paid to the
member shall be subject to withholding under this section. The
portion subject to withholding is that portion of compensation
received for the tax year that bears the same ratio to total
compensation received for the tax year as the number of duty days
within this state bears to the total number of duty days spent
both within and outside this state during the tax year. + }
SECTION 11. { + (1) Any person required to withhold
compensation under section 10 of this 2001 Act must file an
annual report with the Department of Revenue reporting all of the
following:
(a) The total amount of compensation paid to members of the
professional athletic team for which the report is being made
during the year.
(b) A roster of members of the professional athletic team for
which the report is being made who were members at any time
during the year that lists, for each member:
(A) A taxpayer identification number;
(B) Compensation paid to that member; and
(C) + } { + The number of duty days in this state and the
total number of duty days for the year.
(c) The amount withheld under section 10 of this 2001 Act for
the year.
(d) Any other information the department may require.
(2) The report shall be filed with the department on or before
April 15 following the year for which the report is being made,
or at such other time as the department may require. + }
SECTION 12. { + (1) Based on the reports filed pursuant to
section 11 of this 2001 Act and taking into account any known
changes in compensation, the Department of Revenue shall estimate
the amount of income tax revenue from members of a professional
athletic team engaged in major league baseball for a biennium.
The Department of Revenue shall report the amount estimated under
this subsection to the State Treasurer and the Oregon Department
of Administrative Services by September 15 preceding the start of
the biennium for which the estimate is being made.
(2) The Governor shall include in the budget report, prepared
pursuant to ORS 291.202 and 291.216, a recommendation for the
Oregon Department of Administrative Services for a biennium in
which bonds authorized under section 2 of this 2001 Act are
outstanding. The recommendation shall be sufficient to permit the
Oregon Department of Administrative Services to pay all debt
service on those bonds that will be due during the biennium.
(3) If the amount estimated under subsection (1) of this
section is less than the amount needed to pay all debt service on
bonds authorized under section 2 of this 2001 Act that will be
due during the biennium, pursuant to section 2 (8) of this 2001
Act the Oregon Department of Administrative Services shall
collect the difference from the owner of the major league
baseball franchise based in the city in which the major league
stadium is located. The Oregon Department of Administrative
Services shall transfer any payment collected under this
subsection to the State Treasurer. Amounts collected under this
subsection shall be deposited in the General Fund to reimburse
the General Fund for that portion of the amount appropriated for
debt service on bonds authorized under section 2 of this 2001 Act
that exceeds the amount of income tax revenue estimated under
subsection (1) of this section. Amounts deposited in the General
Fund under this subsection may be used for general governmental
purposes. + }
SECTION 13. { + (1) As soon as is practicable following the
date on which income tax returns for tax years beginning in a
biennium may not be amended or adjusted under ORS 314.410 (1) or
314.415, the Department of Revenue shall ascertain the actual
income tax revenues for that biennium from members of any
professional athletic team engaged in major league baseball.
(2) If actual income tax revenues from members of a
professional athletic team engaged in major league baseball are
less than the estimates of such revenues for a biennium, as
determined under section 12 (1) of this 2001 Act, the Department
of Revenue shall certify the difference to the Oregon Department
of Administrative Services and, pursuant to section 2 (8) of this
2001 Act, the Oregon Department of Administrative Services shall
collect the difference from the owner of the major league
baseball franchise based in the city in which the major league
stadium is located. Amounts collected under this subsection shall
be transferred to the State Treasurer and deposited in the
General Fund to reimburse the General Fund for that portion of
the amount appropriated for debt service on bonds authorized
under section 2 of this 2001 Act that exceeds the amount of
income tax revenue estimated under section 12 (1) of this 2001
Act. Amounts deposited in the General Fund under this subsection
may be used for general governmental purposes.
(3)(a) If actual income tax revenues from members of a
professional athletic team engaged in major league baseball are
in excess of the estimates of such revenues for a biennium, as
determined under section 12 (1) of this 2001 Act, the Department
of Revenue shall certify the excess to the Oregon Department of
Administrative Services.
(b) If the owner of the major league baseball franchise based
in the city in which the major league stadium is located has made
a payment for the biennium pursuant to sections 2 (8) and 12 (3)
of this 2001 Act, the Oregon Department of Administrative
Services shall credit the amount against any current or future
obligation of the owner to make a payment under section 12 (3) of
this 2001 Act. + }
SECTION 14. { + Notwithstanding any other law, the amount of
$1 is established for the biennium beginning July 1, 2001, as the
maximum limit for the payment by the Oregon Department of
Administrative Services of a grant to the City of Portland
pursuant to the agreement described in section 3 of this 2001
Act. + }
SECTION 15. { + Notwithstanding any other law, the amount of
$1 is established for the biennium beginning July 1, 2001, as the
maximum limit for the payment of expenses from the Major League
Stadium Bond Proceeds Fund for costs of the Oregon Department of
Administrative Services under sections 2 and 3 of this 2001
Act. + }
SECTION 16. { + Notwithstanding any other law, the amount of
$1 is established for the biennium beginning July 1, 2001, as the
maximum limit for the payment of amounts due on bonds authorized
by section 2 of this 2001 Act that are to be paid by the Oregon
Department of Administrative Services. + }
SECTION 17. { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
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