75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
HA to HB 2531
LC 1421/HB 2531-3
HOUSE AMENDMENTS TO
HOUSE BILL 2531
By COMMITTEE ON SUSTAINABILITY AND ECONOMIC DEVELOPMENT
May 5
On page 1 of the printed bill, line 3, delete '184.400,
184.402, 184.404, 184.406' and insert '184.408'.
Delete lines 6 through 27 and delete pages 2 and 3 and insert:
' { + SECTION 1. + } { + (1) As used in sections 1 to 4 of
this 2009 Act:
' (a) 'Incremental soccer tax revenues' means:
' (A) The Oregon personal income tax revenues that are
generated from the Oregon personal income tax liabilities of the
members of a professional soccer team engaged in Major League
Soccer, as shown on the income tax returns filed by the members
or as adjusted by the Department of Revenue, excluding revenues
that are generated from the tax liabilities of spouses of members
of a professional soccer team engaged in Major League Soccer if
the tax liabilities are reported on a joint return; or
' (B) If Oregon personal income tax rates are reduced after the
dates of the grant agreements described in section 3 of this 2009
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, as described in
subparagraph (A) of this paragraph, that would have been due 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 soccer stadium located in
the City of Portland that is designed for use by a Major League
Soccer team and that has an estimated cost of $30 million or
more.
' (c) 'Member of a professional soccer team' means an athlete
or other individual rendering service to a professional soccer
team if the compensation of the athlete or other individual
exceeds $40,000 in a tax year.
' (d) 'Tax liabilities' means the tax determined under ORS
chapter 316 for the tax year less the credits allowed for
purposes of ORS chapter 316 for the tax year.
' (2) The Department of Revenue may adopt administrative rules
that the department determines are necessary to:
' (a) Further define the terms defined in this section in a
manner consistent with this section;
' (b) Implement the duties of the department under ORS 184.408
and sections 1 to 4 of this 2009 Act; and
' (c) Carry out the purposes of ORS 184.408 and sections 1 to 4
of this 2009 Act. + }
' { + SECTION 2. + } { + The Legislative Assembly finds and
declares that the construction of a major league stadium and the
location of a Major League Soccer franchise in Portland will
bring jobs and economic development to Oregon and will benefit
Oregon workers and businesses. + }
' { + SECTION 3. + } { + (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 soccer 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 $15
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 soccer tax revenues in a year
substantially exceed the amount reasonably required to amortize a
loan of $15 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 soccer tax revenues, specify the methodology
for estimating incremental soccer tax revenues and notify the
Director of the Oregon Department of Administrative Services of
the estimated incremental soccer tax revenues;
' (e) Specify the methodology for determining actual
incremental soccer 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 soccer
tax revenues from the General Fund to the Major League Stadium
Grant Fund established in ORS 184.408 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 soccer tax revenues and, if the
actual incremental soccer tax revenues exceed the estimated
incremental soccer 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
soccer 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;
' (L) Provide assurances of full and fair participation in the
construction, furnishing and operation of the major league
stadium by women, minorities and small businesses;
' (m) Provide for the maximization of economic benefits for
Oregon workers in the construction, furnishing and operation of
the major league stadium to the greatest extent permitted by law;
and
' (n) 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
ORS 184.408 and sections 1 to 4 of this 2009 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 soccer tax revenues are made as described in sections
1 to 4 of this 2009 Act.
' (2) The obligation of the State of Oregon, under ORS 184.408
and sections 1 to 4 of this 2009 Act and the grant agreements
authorized by this section, to transfer estimated or actual
incremental soccer 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 soccer tax revenues and
amounts equal to the amount by which the actual incremental
soccer tax revenues exceed the estimated incremental soccer tax
revenues from the General Fund to the Major League Stadium Grant
Fund, as provided in ORS 184.408 and sections 1 to 4 of this 2009
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 4. + } { + The Director of the Oregon
Department of Administrative Services may not execute a grant
agreement authorized by section 3 of this 2009 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 Soccer 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) No grantee is both a public body and a guarantor for the
repayment of bonds or other indebtedness that is to be repaid
through use of grant moneys;
' (5) The Oregon Department of Administrative Services has
provided a written report regarding the estimated and actual
incremental soccer tax revenues to, and has solicited comments
from, the advisory committee described in subsection (6) of this
section relating to the following provisions of the proposed
grant agreement:
' (a) The methodology for estimating the incremental soccer tax
revenues;
' (b) The methodology for determining the actual incremental
soccer tax revenues; and
' (c) The requirement that estimated and actual incremental
soccer 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
' (6) 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 (5) of this
section. + }
' { + SECTION 5. + } ORS 316.213 is amended to read:
' 316.213. (1) As used in ORS 316.213 to 316.219:
' (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 { + :
' (A) + } $50,000 in a tax year { + ; or
' (B) $40,000 in a tax year, if the team is engaged in Major
League Soccer + }.
' (2) The Department of Revenue may further define by rule the
terms defined in this section in a manner consistent with this
section.
' { + SECTION 6. + } ORS 184.408 is amended to read:
' 184.408. 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 ORS 184.404 { + and section 3 of this 2009 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 ORS 184.400 to 184.408 { - and - } { + , + } 316.213 to
316.219 { + and sections 1 to 4 of this 2009 Act + }. Interest
earned by the Major League Stadium Grant Fund must be credited to
the fund.'.
On page 4, delete lines 1 through 43.
In line 44, delete '6' and insert '7'.
On page 5, line 2, delete 'ORS 184.404' and insert ' section 3
of this 2009 Act'.
In line 3, delete '7' and insert '8'.
In line 7, delete '184.400'.
In line 8, delete 'to 184.408 and' and before the period insert
'and sections 1 to 4 of this 2009 Act'.
In line 9, delete '8' and insert '9' and delete ' athletic' and
insert 'soccer'.
In line 10, delete 'athletic team engaged' and insert ' soccer
team'.
In line 11, delete 'in Major League Soccer'.
After line 12, insert:
' { + SECTION 10. + } { + Sections 1 to 4 of this 2009 Act
are repealed on the earlier of:
' (1) The date by which all bonds issued for the purpose of
financing, developing, constructing and furnishing a soccer
stadium as provided in sections 1 to 4 of this 2009 Act have been
retired; or
' (2) July 1, 2041. + } ' .
In line 13, delete '9' and insert '11'.
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