74th OREGON LEGISLATIVE ASSEMBLY--2007 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 264
Senate Bill 398
Sponsored by Senator FERRIOLI
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.
Establishes tax recapture grant program under which rural
school districts may receive income tax revenues generated from
payment of prevailing wages in public school facility capital
construction or improvement projects. Directs Department of
Education to administer grant program. Requires rural school
districts engaged in capital construction or improvement projects
to report wage information.
Creates Tax Recapture Fund. Directs Department of Revenue to
estimate personal income taxes raised on difference between
prevailing wages paid by school district and market wages and
transfer those revenues to Tax Recapture Fund.
Continuously appropriates fund to Department of Education to
make tax recapture grants.
A BILL FOR AN ACT
Relating to school district payments for capital construction;
creating new provisions; amending ORS 316.502; and
appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 4 of this 2007 Act:
(1) 'Capital construction or improvements' means building
construction, remodeling, altering, furnishing and equipping of
public school facilities and the acquisition of land for public
school facilities.
(2) 'Market wages' means the cumulative amount of wages a
school district would have paid with respect to a capital
construction or improvements project if the district was not
subject to ORS 279C.800 to 279C.870 or the Davis-Bacon Act (40
U.S.C. 276a).
(3) 'Prevailing wages' means the cumulative amount of wages a
school district pays with respect to a capital construction or
improvements project under ORS 279C.800 to 279C.870 or the
Davis-Bacon Act.
(4) 'Public school facility' includes facilities used for
classroom instruction, multipurpose activities, libraries or any
other use associated with public education in kindergarten
through grade 12.
(5) 'Rural school district' means a school district, at least
51 percent of the territory of which is located in a county with
a population of less than 35,000.
(6) 'School district' means a common or union high school
district. + }
SECTION 2. { + (1) A rural school district may apply for a tax
recapture grant under this section if:
(a) The district is engaged in a capital construction or
improvements project with respect to a public school facility;
(b) The cost of the capital construction or improvements
project equals or exceeds one-quarter of one percent of the value
of all real property owned by the district;
(c) The district is required to pay prevailing wages with
respect to the capital construction or improvements project; and
(d) At least 51 percent of the contractors involved in the
capital construction or improvements project, as determined by
contract value, are located outside of the school district.
(2) The district shall apply to the Department of Education for
a tax recapture grant under this section and shall report any
information required by the department, including:
(a) The amount paid or estimated to be paid as prevailing wages
with respect to the capital construction or improvements project;
(b) The location of all contractors engaged in the capital
construction or improvements project; and
(c) The estimated amount that would have been paid as market
wages with respect to the capital construction or improvements
project.
(3) The department shall review the district's application and
may investigate or audit the information reported on the
application. The department may consult with the Bureau of Labor
and Industries to determine the accuracy of estimates made under
subsection (2)(a) and (c) of this section. The department may
modify estimates or other information reported on an application
to reflect accuracy. The decision to modify an application to
reflect accuracy may be appealed as a contested case under ORS
chapter 183.
(4) The department shall award a tax recapture grant from the
Tax Recapture Fund created in section 4 of this 2007 Act if the
department determines that:
(a) The district has applied for a grant under this section;
(b) The district is a rural school district that is engaged in
a capital construction or improvements project in which at least
51 percent of the contractors involved in the project, as
determined by contract value, are located outside of the school
district;
(c) The district is engaged in a capital construction and
improvements project, the cost of which equals or exceeds
one-quarter of one percent of the value of all real property
owned by the district; and
(d) The net amount of prevailing wages less market wages
attributable to the capital construction or improvements project
is at least $25,000.
(5) The amount of the grant shall equal:
(a) The net amount of prevailing wages less market wages that
is attributable to the capital construction or improvements
project; or
(b) Any greater amount determined by the department. + }
SECTION 3. { + (1) Each rural school district in this state
that is engaged in a capital construction or improvements project
that equals or exceeds one-quarter of one percent of the value of
all real property owned by the district shall report to the
Department of Education the district's estimate of prevailing
wages paid with respect to the project during the fiscal year and
the district's estimate of market wages that would have been paid
with respect to the project during the fiscal year.
(2) The Department of Education, after consultation with the
Bureau of Labor and Industries, may modify the estimates reported
under subsection (1) of this section to reflect accuracy.
(3) The Department of Education shall compile the total net
amount of prevailing wages less market wages reported under this
section for the fiscal year and shall report that total to the
Department of Revenue.
(4) The Department of Revenue shall estimate the amount of
personal income tax revenues raised on the difference between
total estimated prevailing wages and total estimated market wages
and shall transfer that amount to the Tax Recapture Fund as
prescribed in ORS 316.502 (3)(c). + }
SECTION 4. { + (1) The Tax Recapture Fund is created in the
State Treasury, separate and distinct from the General Fund.
Interest earned by the Tax Recapture Fund shall be credited to
the Tax Recapture Fund.
(2) Moneys in the Tax Recapture Fund are continuously
appropriated to the Department of Education for the purpose of
making the grants described in section 2 of this 2007 Act. + }
SECTION 5. ORS 316.502, as amended by section 4a, chapter 826,
Oregon Laws 2005, is amended to read:
316.502. (1) The net revenue from the tax imposed by this
chapter, after deducting refunds, shall be paid over to the State
Treasurer and held in the General Fund as miscellaneous receipts
available generally to meet any expense or obligation of the
State of Oregon lawfully incurred.
(2) A working balance of unreceipted revenue from the tax
imposed by this chapter may be retained for the payment of
refunds, but such working balance shall not at the close of any
fiscal year exceed the sum of $1 million.
(3) Moneys are continuously appropriated to the Department of
Revenue to make:
(a) The refunds authorized under subsection (2) of this
section; { - and - }
(b) The refund payments in excess of tax liability authorized
under ORS 315.262 and 315.266 { + ; and
(c) The transfer to the Tax Recapture Fund created in section 4
of this 2007 Act + }.
SECTION 6. ORS 316.502, as amended by section 4a, chapter 826,
Oregon Laws 2005, and section 60, chapter 832, Oregon Laws 2005,
is amended to read:
316.502. (1) The net revenue from the tax imposed by this
chapter, after deducting refunds, shall be paid over to the State
Treasurer and held in the General Fund as miscellaneous receipts
available generally to meet any expense or obligation of the
State of Oregon lawfully incurred.
(2) A working balance of unreceipted revenue from the tax
imposed by this chapter may be retained for the payment of
refunds, but such working balance shall not at the close of any
fiscal year exceed the sum of $1 million.
(3) Moneys are continuously appropriated to the Department of
Revenue to make:
(a) The refunds authorized under subsection (2) of this
section; { - and - }
(b) The refund payments in excess of tax liability authorized
under ORS 315.262 { + ; and
(c) The transfer to the Tax Recapture Fund created in section 4
of this 2007 Act + }.
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