72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
HA to A-Eng. SB 5
 
LC 3623/SB 5-A6
 
                       HOUSE AMENDMENTS TO
                    A-ENGROSSED SENATE BILL 5
 
            By COMMITTEE ON RULES AND PUBLIC AFFAIRS
 
                            August 12
 
  On page 1 of the printed A-engrossed bill, line 2, after '
finance;' delete the rest of the line and line 3 and insert '
appropriating money; limiting expenditures; and prescribing an
effective date.'.
  Delete lines 5 through 26 and delete pages 2 through 5 and
insert:
  '  { +  SECTION 1. + }  { + (1) As used in sections 1 to 4 of
this 2003 Act:
  ' (a) 'Incremental baseball tax revenues' means:
  ' (A) The Oregon personal income tax revenues that are
generated from the Oregon personal income tax liabilities shown
on the income tax returns filed by the members of a professional
athletic team engaged in Major League Baseball, without regard to
filing status; or
  ' (B) If Oregon personal income tax rates are reduced after the
dates of the grant agreements described in section 2 of this 2003
Act and the grant agreements provide that payments will be based
on rates in effect when the grant agreements are executed, the
Oregon personal income tax liabilities that would be shown on the
income tax returns filed by the members of a professional
athletic team engaged in Major League Baseball, without regard to
filing status, if the liabilities were calculated using personal
income tax rates in effect on the date of execution of the grant
agreements.
  ' (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 that 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.
  ' (d) 'Tax liabilities' means the sum for a tax year of tax
prepayment amounts paid by a taxpayer and taxes paid or due at
the time a return is filed.
  ' (2) The Department of Revenue may further define by rule the
terms defined in this section in a manner consistent with this
section. + }
  '  { +  SECTION 1a. + }  { + The Legislative Assembly finds and
declares that the construction of a major league stadium and the
location of a Major League Baseball franchise in Portland will
bring jobs and economic development to Oregon and will benefit
Oregon workers and businesses. + }
  '  { +  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) Provide that:
  ' (A) The total payments to the grantees are limited so that
the grantees do not receive, in the aggregate, more than $150
million for costs of developing, constructing and furnishing a
major league stadium, plus the actual, reasonable financing costs
incurred by the grantees for that amount; and
  ' (B) If the incremental baseball tax revenues in a year
substantially exceed the amount reasonably required to amortize a
loan of $150 million over a period of 30 years with interest, the
excess may be retained by the state;
  ' (c) Terminate when:
  ' (A) The State of Oregon has made all payments assigned to the
state in the grant agreements for the costs allowed under this
subsection; and
  ' (B) The grantees have returned any amounts required to be
returned under paragraph (i) of this subsection;
  ' (d) Require the Director of the Department of Revenue to
estimate incremental baseball tax revenues, specify the
methodology for estimating incremental baseball tax revenues and
notify the Director of the Oregon Department of Administrative
Services of the estimated incremental baseball tax revenues;
  ' (e) Specify the methodology for determining actual
incremental baseball tax revenues;
  ' (f) 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;
  ' (g) 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, notify the Director of the
Oregon Department of Administrative Services of the excess;
  ' (h) Require the Director of the Oregon Department of
Administrative Services, if notified of an excess under paragraph
(g) of this subsection, to request that the Legislative Assembly
appropriate an amount equal to the excess, adjusted for the
limits and retentions described in paragraph (b) of this
subsection, 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;
  ' (i) 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;
  ' (j) 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;
  ' (k) 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
  ' (L) Require the State of Oregon and the grantees to take any
other action that the State Treasurer, the Director of the Oregon
Department of Administrative Services or the Director of the
Department of Revenue determines is 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)(f) and (h)
of this section to the Major League Stadium Grant Fund. However,
if 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 proposed grant agreement 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, the Oregon
Department of Administrative Services and the Department of
Revenue in connection with the implementation and administration
of sections 1 to 4 and 6 to 8a of this 2003 Act. Interest earned
by the Major League Stadium Grant Fund must be credited to the
fund. + }
  '  { +  SECTION 5. + }  { + Sections 6 to 8a of this 2003 Act
are added to and made a part of ORS 316.162 to 316.212. + }
  '  { +  SECTION 6. + }  { + (1) As used in sections 6 to 8a 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 316.167, 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.
  ' (5) Notwithstanding the description of the portion of
compensation subject to withholding in subsection (4) of this
section, the Department of Revenue may provide by rule an
alternative formula for determining the portion of compensation
 
subject to withholding under this section that the department
determines to be fair and equitable. + }
  '  { +  SECTION 8. + }  { + (1) In addition to other reports
and returns required by law or rule, 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 8a. + }  { + The Department of Revenue may
adopt administrative rules determined necessary to implement the
duties of the department under sections 1 to 4 of this 2003 Act
or under sections 6 to 8a of this 2003 Act including, but not
limited to:
  ' (1) Rules providing an alternative formula for determining
the portion of compensation subject to withholding under section
7 (4) of this 2003 Act that the department determines to be fair
and equitable; and
  ' (2) Rules construing ORS 316.162 to 316.212 in a manner that
is consistent and compatible with the withholding provisions of
sections 6 to 8a of this 2003 Act. + }
  '  { +  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 of the
State Treasurer, the Oregon Department of Administrative Services
and the Department of Revenue to implement and administer
sections 1 to 4 and 6 to 8a 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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