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
House Bill 3606
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 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 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.
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 6 of this 2003 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 2003 Act:
(a) 'Available moneys' means moneys appropriated, allocated 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 located in
the City of Portland that is designed for use by a major league
baseball team and has an estimated cost of construction of at
least $300 million.
(2)(a) Notwithstanding ORS 286.505 to 286.545, at the request
of the Director of the Oregon Department of Administrative
Services, the State Treasurer may issue bonds during the biennium
beginning July 1, 2003, in an aggregate principal amount to
produce net bond proceeds in the amount of $150 million, plus an
amount for costs and expenses of issuing the bonds as determined
by the State Treasurer.
(b) The proceeds of bonds authorized under this section must be
used to pay for the 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 Oregon
Department of Administrative Services 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 5 of this 2003 Act.
(3) Bonds authorized by this section are payable solely from
available moneys and from amounts the bond trustee may receive
from exercising the rights of the bond trustee against the owner
of the major league stadium.
(4) The obligation of this state to pay the bonds from
available moneys is unconditional. The obligation of this state
to pay the bonds is a limited obligation, payable solely from
available moneys, 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 to enforce payment against any moneys or
property of this state except available moneys. The bonds do not
constitute a pledge of the full faith and credit of the state or,
except to the extent of available moneys, constitute an
indebtedness of this state.
(5) Bonds authorized under this section shall mature over a
period that does not exceed 30 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 members of a professional athletic team
engaged in major league baseball, as determined under sections 8
to 12 of this 2003 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 6 of
this 2003 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 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 moneys and amounts the bond trustee
receives for exercising the rights of the trustee against the
owner of the major league stadium.
(e) Pledge for the benefit of bondholders any amounts that are
deposited in the Major League Stadium Debt Service Fund or that
are deposited with the bond trustee. A pledge described in this
paragraph is valid and binding from the time the pledge is made,
and any amount pledged is immediately 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 is 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) Prior to issuing bonds authorized under this section, the
State Treasurer shall secure one or more guarantors, on terms and
conditions determined by the State Treasurer, to secure
additional sources of payment in the event the amount of money
due on the bonds exceeds the amount of money attributable to
income tax revenues from members of a professional athletic team
engaged in major league baseball, as determined under sections 11
and 12 of this 2003 Act. + }
SECTION 3. { + Not later than January 1, 2008, 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 2003 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 2003
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
2003 Act has been committed; and
(d) One or more guarantors have entered into a guarantee, on
terms and conditions determined by the State Treasurer, to
provide funding for the debt service due in a biennium, and not
met by the actual amount of money collected from the income tax
revenues from members of a professional athletic team engaged in
major league baseball, on bonds authorized under section 2 of
this 2003 Act.
(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 and section 2 of this 2003 Act. + }
SECTION 4. { + The State Treasurer and the Oregon Department
of Administrative Services shall report on an ongoing and
periodic basis to the Joint Legislative Committee on Ways and
Means if the Legislative Assembly is in session, or to the
Emergency Board, on the status of the negotiations, agreements
and bond issuance described in sections 2 and 3 of this 2003
Act. + }
SECTION 5. { + (1) The Major League Stadium Bond Proceeds Fund
is established in the State Treasury, separate and distinct from
the General Fund. Interest earned by the Major League Stadium
Bond Proceeds Fund shall be credited to 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 2003 Act.
(3) Subject only to section 13 of this 2003 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 2003 Act, the department shall transfer $150
million from the Major League Stadium Bond Proceeds Fund to the
City of Portland to pay for capital costs of developing,
constructing and furnishing the major league stadium. + }
SECTION 6. { + (1) The Major League Stadium Debt Service Fund
is established in the State Treasury, separate and distinct from
the General Fund. Interest earned by the Major League Stadium
Debt Service Fund shall be credited to 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 2003 Act
that are outstanding during the biennium. + }
SECTION 7. { + Sections 8 to 12 of this 2003 Act are added to
and made a part of ORS chapter 314. + }
SECTION 8. { + As used in sections 8 to 12 of this 2003 Act:
(1) 'Bonuses' means payments earned by a member of a
professional athletic team as a result of play or performance
during the season or during post-season play-offs or
championships, and payments given for contract signing unless:
(a) The payment is not conditional upon the contract signee's
playing any games for the professional athletic team;
(b) The payment is payable separately from compensation; and
(c) The payment is nonrefundable.
(2) 'Compensation':
(a) Means 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) Means 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.
(c) Does not mean strike benefits, severance pay, termination
pay or any other payment that is not related to services rendered
to the professional athletic team.
(3) 'Duty days':
(a) Means all 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,
including game days, practice days, days in which team meetings,
promotional events or preseason training camps are held and days
served with the professional athletic team through all
post-season games in which the professional athletic 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 mean days for which a member of a professional
athletic team is not compensated and is not rendering services
for the professional athletic team in any manner, including days
in which the member is on a disabled status or is suspended
without pay and prohibited from performing any services for the
professional athletic team.
(4) '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 9. { + (1) Any person who transacts business in this
state and who pays compensation to a member of a professional
athletic team shall, in lieu of the withholding requirements
under ORS 316.162 to 316.212, withhold eight percent of the
compensation under this section.
(2) The person withholding amounts under this section shall pay
the amounts withheld to the Department of Revenue in the time and
manner prescribed by the department by rule.
(3) If the member of a 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, is subject to
withholding under this section.
(4) If the member of a professional athletic team is not a
resident of this state, 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 10. { + (1) Any person required to withhold
compensation under section 9 of this 2003 Act shall file an
annual report with the Department of Revenue reporting the
following:
(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 9 of this 2003 Act for
the year.
(d) Any other information the department may require.
(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 such other time as the department may require. + }
SECTION 11. { + (1) Based on the reports filed pursuant to
section 10 of this 2003 Act and taking into account any known
changes in compensation, the Department of Revenue shall estimate
the amount of income tax revenues from the 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 to repay the debt
service due in the biennium on the bonds authorized under section
2 of this 2003 Act. The recommendation is sufficient to permit
the Oregon Department of Administrative Services to pay the debt
service due in the biennium on those bonds.
(3) If the amount estimated under subsection (1) of this
section is less than the amount needed to pay the debt service
due in the biennium on bonds authorized under section 2 of this
2003 Act, the Oregon Department of Administrative Services shall
collect the difference from the one or more guarantors described
in section 3 (1)(d) of this 2003 Act, subject to the terms of the
guarantee required under section 3 of this 2003 Act. 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 2003 Act that exceeds the amount of income tax revenues
estimated under subsection (1) of this section. Amounts deposited
in the General Fund under this subsection may be used for general
governmental purposes. + }
SECTION 12. { + (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 the members of a
professional athletic team engaged in major league baseball.
(2) The Department of Revenue shall certify to the Oregon
Department of Administrative Services the difference between the
actual income tax revenues generated by members of a professional
athletic team engaged in major league baseball and the estimates
of those revenues, as determined under section 11 of this 2003
Act. If the actual revenues are less than the estimates of the
revenues, the Oregon Department of Administrative Services shall
collect the difference from the one or more guarantors described
in section 3 (1)(d) of this 2003 Act, subject to the terms of the
guarantee required under section 3 of this 2003 Act. The Oregon
Department of Administrative Services shall transfer amounts
collected under this subsection to the State Treasurer for
deposit 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 2003 Act that exceeds the
amount of income tax revenues estimated under section 11 (1) of
this 2003 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 the members of a
professional athletic team engaged in major league baseball are
in excess of the amount of money required to pay the debt service
due in a biennium on bonds authorized under section 2 of this
2003 Act, the Department of Revenue shall certify the excess to
the Oregon Department of Administrative Services.
(b) Upon certification of an excess under paragraph (a) of this
subsection, the Oregon Department of Administrative Services
shall credit the excess against current or future obligations
under this section or section 11 of this 2003 Act of the one or
more guarantors described in section 3 (1)(d) of this 2003
Act. + }
SECTION 13. { + Notwithstanding any other law, the amount of
$1 is established for the biennium beginning July 1, 2003, as the
maximum limit for the payment of a grant to the City of Portland
pursuant to the agreement described in section 3 of this 2003 Act
from the Major League Stadium Bond Proceeds Fund by the Oregon
Department of Administrative Services. + }
SECTION 14. { + Notwithstanding any other law, the amount of
$1 is established for the biennium beginning July 1, 2003, as the
maximum limit for the payment of the costs and expenses of
issuance of the bonds by the Oregon Department of Administrative
Services under sections 2 and 3 of this 2003 Act. + }
SECTION 15. { + Notwithstanding any other law, the amount of
$1 is established for the biennium beginning July 1, 2003, as the
maximum limit for the payment of debt service amounts due on
bonds authorized by section 2 of this 2003 Act that are paid from
the Major League Stadium Debt Service Fund by the Oregon
Department of Administrative Services. + }
SECTION 16. { + 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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