72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 1923
A-Engrossed
House Bill 3606
Ordered by the House April 29
Including House Amendments dated April 29
Sponsored by COMMITTEE ON TRADE AND ECONOMIC DEVELOPMENT (at the
request of Associated Builders and Contractors, Independent
Electrical Contractors of Oregon, National Electrical
Contractors Association, International Brotherhood of
Electrical Workers, Barnes Labor Management Cooperation
Committee, Oregon-Columbia Chapter of Associated General
Contractors, Oregon Concrete and Aggregate Producers, Oregon
Lodging Association, Oregon Sports Authority, Oregon Stadium
Campaign, Oregon State Building and Construction Trades
Council, Portland Baseball Group, Portland Business Alliance,
Portland Oregon Visitors Association)
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.
{ - 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 State Treasurer to secure guarantor
to provide additional moneys if income tax revenues from members
of team are less than debt service on stadium bonds. - }
{ + Authorizes Director of Oregon Department of
Administrative Services, with approval of State Treasurer, to
enter into agreements to grant incremental baseball tax revenues
for period of not more than 30 years. Specifies provisions of
grants. Limits state liability.
Establishes Major League Stadium Grant Fund.
Specifies rate of withholding on income of member of
professional athletic team. + }
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. { + (1) As used in sections 1 to 4 of this 2003
Act:
(a) 'Incremental baseball tax revenues' means the Oregon
personal income tax revenues that are generated by members of
professional athletic teams engaged in Major League Baseball,
based on the greater of the Oregon personal income tax rates in
effect:
(A) For the period for which the taxes are collected; or
(B) On the date of execution of the grant agreements required
under section 2 of this 2003 Act.
(b) 'Major league stadium' means a baseball stadium located in
the City of Portland that is designed for use by a Major League
Baseball team and has an estimated cost of $300 million or more.
(c) 'Member of a professional athletic team' means an athlete
or other individual rendering service to a professional athletic
team if the compensation of the athlete or other individual
exceeds $50,000 in a tax year.
(2) The Department of Revenue may further define by rule the
terms defined in this section in a manner consistent with this
section. + }
SECTION 2. { + (1) The Director of the Oregon Department of
Administrative Services, with the approval of the State
Treasurer, may enter into one or more agreements on behalf of the
State of Oregon to grant the incremental baseball tax revenues
for a period of not more than 30 years. The grant agreements
must:
(a) Provide that the granted amounts may be used only to pay
for the costs of financing, developing, constructing and
furnishing a major league stadium;
(b) Terminate when the State of Oregon has made all payments
assigned to the state in the grant agreements for the costs
allowed under this subsection;
(c) Require the Director of the Department of Revenue to
estimate the incremental baseball tax revenues and specify the
methodology for estimating the incremental baseball tax revenues;
(d) Specify the methodology for determining the actual
incremental baseball tax revenues;
(e) Require the Director of the Oregon Department of
Administrative Services to request that the Legislative Assembly
appropriate an amount equal to the estimated incremental baseball
tax revenues from the General Fund to the Major League Stadium
Grant Fund established in section 4 of this 2003 Act so that
those moneys may be disbursed under the grant agreements
authorized by this section;
(f) Require the Director of the Department of Revenue to
determine the actual incremental baseball tax revenues and, if
the actual incremental baseball tax revenues exceed the estimated
incremental baseball tax revenues, to request that the
Legislative Assembly appropriate an amount equal to the excess
from the General Fund to the Major League Stadium Grant Fund so
that those moneys may be disbursed under the grant agreements
authorized by this section;
(g) Require the grantees to return to the Director of the
Oregon Department of Administrative Services for deposit in the
General Fund amounts transferred to the grantees from the Major
League Stadium Grant Fund that exceed the actual incremental
baseball tax revenues;
(h) Provide that the amounts requested for appropriations may
not be reduced because of any reduction that may be enacted in
Oregon personal income tax rates;
(i) Require the Director of the Oregon Department of
Administrative Services to disburse amounts in the Major League
Stadium Grant Fund to the grantees on particular dates; and
(j) Require the State of Oregon and the grantees to take other
actions that the State Treasurer and the Director of the Oregon
Department of Administrative Services or the Director of the
Department of Revenue determine are desirable to ensure that:
(A) The granted funds are used for the purposes described in
sections 1 to 4 of this 2003 Act;
(B) The grant agreements are administered efficiently and the
interests of the State of Oregon are protected; and
(C) The requests for appropriation of amounts equal to the
incremental baseball tax revenues are made as described in
sections 1 to 4 of this 2003 Act.
(2) The obligation of the State of Oregon, under sections 1 to
4 of this 2003 Act and the grant agreements authorized by this
section, to transfer estimated or actual incremental baseball tax
revenues to the Major League Stadium Grant Fund is subject to an
appropriation being made for that purpose by the Legislative
Assembly. The State of Oregon is not liable to any party for any
reason if the Legislative Assembly fails to appropriate all or a
portion of the amounts requested under subsection (1)(e) and (f)
of this section to the Major League Stadium Grant Fund. However,
when the Legislative Assembly does appropriate amounts for
deposit in the Major League Stadium Grant Fund and those amounts
are deposited in the Major League Stadium Grant Fund pursuant to
the grant agreements authorized by this section, the obligation
of the State of Oregon to disburse the amounts in the Major
League Stadium Grant Fund is unconditional. The grant agreements
authorized by this section are not a pledge of the full faith and
credit or the taxing power of the State of Oregon, and the State
of Oregon does not pledge its full faith and credit or taxing
power. The grant agreements do not create an indebtedness of the
State of Oregon in violation of section 7, Article XI of the
Oregon Constitution. If a provision of a grant agreement is
construed to have the effect of creating a debt in violation of
section 7, Article XI of the Oregon Constitution, the provision
is void.
(3) The Legislative Assembly does not have a legal obligation
to appropriate any amounts for disbursement under the grant
agreements authorized by this section. However, the Legislative
Assembly declares its current intention to appropriate amounts
equal to the estimated incremental baseball tax revenues and
amounts equal to the amount by which the actual incremental
baseball tax revenues exceed the estimated incremental baseball
tax revenues from the General Fund to the Major League Stadium
Grant Fund, as provided in sections 1 to 4 of this 2003 Act, so
that the amounts may be disbursed pursuant to the grant
agreements authorized by this section.
(4) Before commencing negotiations on a grant agreement
authorized by this section, the Oregon Department of
Administrative Services shall obtain one or more agreements from
benefited parties to pay the state's costs associated with
negotiating and executing the grant agreement. + }
SECTION 3. { + The Director of the Oregon Department of
Administrative Services may not execute a grant agreement
authorized by section 2 of this 2003 Act until the director has
determined that:
(1) The City of Portland has made a written request to the
director to execute and deliver the grant agreement;
(2) 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 the term of the
grant agreement;
(3) All funding to build the major league stadium that is not
based on the grant agreement has been committed;
(4) The Oregon Department of Administrative Services has
provided a written report regarding the estimated and actual
incremental baseball tax revenues to, and has solicited comments
from, the advisory committee described in subsection (5) of this
section relating to the following provisions of the proposed
grant agreement:
(a) The methodology for estimating the incremental baseball tax
revenues;
(b) The methodology for determining the actual incremental
baseball tax revenues; and
(c) The requirement that estimated and actual incremental
baseball tax revenues be based on the Oregon personal income tax
rates in effect when the grant agreement is executed or for the
period for which the taxes are collected, whichever is greater,
even if those rates are subsequently reduced; and
(5) An advisory committee, consisting of two legislators
appointed by the President of the Senate, two legislators
appointed by the Speaker of the House of Representatives and one
person appointed by the Governor, has reviewed the provisions of
the grant agreements listed in subsection (4) of this
section. + }
SECTION 4. { + The Major League Stadium Grant Fund is
established in the State Treasury, separate and distinct from the
General Fund. Amounts in the fund are continuously appropriated
to the Oregon Department of Administrative Services for the
purpose of making the grants required by the grant agreements
entered into under section 2 of this 2003 Act and paying the
costs and expenses of the State Treasurer and the department in
connection with the grant agreements. Interest earned by the
Major League Stadium Grant Fund must be credited to the fund. + }
SECTION 5. { + Sections 6 to 8 of this 2003 Act are added to
and made a part of ORS chapter 314. + }
SECTION 6. { + (1) As used in sections 6 to 8 of this 2003
Act:
(a) 'Duty days' means the days during the tax year from the
beginning of the official preseason training period of a
professional athletic team through the last game in which the
professional athletic team competes or is scheduled to compete
during the tax year.
(b) 'Member of a professional athletic team' means an athlete
or other individual rendering service to a professional athletic
team if the compensation of the athlete or other individual
exceeds $50,000 in a tax year.
(2) The Department of Revenue may further define by rule the
terms defined in this section in a manner consistent with this
section. + }
SECTION 7. { + (1) A person who transacts business in the
State of Oregon and who pays wages, salary, bonuses or other
taxable income to a member of a professional athletic team, in
lieu of the withholding requirements under ORS 316.162 to
316.212, shall withhold eight percent of the income as provided
in this section and by rule of the Department of Revenue.
(2) The person withholding amounts under this section shall pay
the amounts withheld to the Department of Revenue at the time and
in the manner prescribed by the department by rule.
(3) If the member of a professional athletic team is a resident
of the State of Oregon, all compensation paid to the member,
whether or not attributable to duty days, is subject to
withholding under this section.
(4) If the member of a professional athletic team is not a
resident of the State of Oregon, a portion of the compensation
paid to the member is 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 8. { + (1) A person required to withhold compensation
under section 7 of this 2003 Act shall file an annual report with
the Department of Revenue reporting:
(a) The total amount of compensation paid during the year to
the members of the professional athletic team for which the
report is being made.
(b) A roster of the 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 the 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 7 of this 2003 Act for
the year.
(d) Other information the department may require by rule.
(2) The report must be filed with the department on or before
April 15 following the year for which the report is being made or
at another time as the department may require by rule. + }
SECTION 9. { + Notwithstanding any other law limiting
expenditures, the amount of $1 is established for the biennium
beginning July 1, 2003, as the maximum limit for payment by the
Oregon Department of Administrative Services from the Major
League Stadium Grant Fund of amounts required under the grant
agreements authorized in section 2 of this 2003 Act. + }
SECTION 10. { + Notwithstanding any other law limiting
expenditures, the amount of $1 is established for the biennium
beginning July 1, 2003, as the maximum limit for payment by the
Oregon Department of Administrative Services from the Major
League Stadium Grant Fund of the costs and expenses relating to
the grant agreements authorized by section 2 of this 2003
Act. + }
SECTION 11. { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
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