75th OREGON LEGISLATIVE ASSEMBLY--2009 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 1421
House Bill 2531
Sponsored by Representatives READ, HUNT; Representatives BRUUN, C
EDWARDS, ROBLAN, SCHAUFLER, Senators DEVLIN, MONROE, MORSE (at
the request of Portland Timbers)
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.
Expands purpose of Major League Stadium Grant Fund to include
financing, developing, constructing and furnishing major league
stadium designed for use by Major League Soccer team. Authorizes
agreements granting incremental tax revenues for stadium designed
for Major League Soccer. Prohibits transfer of revenues generated
from members of soccer team to Major League Stadium Grant Fund
until July 1, 2011.
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 financing of Major League Soccer stadium; creating
new provisions; amending ORS 184.400, 184.402, 184.404, 184.406
and 316.213; limiting expenditures; and prescribing an
effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 184.400 is amended to read:
184.400. (1) As used in ORS 184.400 to 184.408:
(a) 'Incremental { - baseball - } { + athletic + } 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 { + or Major
League Soccer + }, including revenues that are generated from the
tax liabilities of spouses of members of a professional athletic
team engaged in Major League Baseball { + or 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 ORS 184.404 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) + }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 { + ; or
(B) 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 $40 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 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 184.400 to
184.408; and
(c) Carry out the purposes of ORS 184.400 to 184.408.
SECTION 2. ORS 184.402 is amended to read:
184.402. The Legislative Assembly finds and declares that the
construction of a major league stadium and the location of a
Major League Baseball { + or Major League Soccer + } franchise
in Portland will bring jobs and economic development to Oregon
and will benefit Oregon workers and businesses.
SECTION 3. ORS 184.404 is amended to read:
184.404. (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 - }
{ + athletic + } 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 - } { + athletic + }
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 - } { + athletic + } tax
revenues, specify the methodology for estimating incremental
{ - baseball - } { + athletic + } tax revenues and notify the
Director of the Oregon Department of Administrative Services of
the estimated incremental { - baseball - } { + athletic + }
tax revenues;
(e) Specify the methodology for determining actual incremental
{ - baseball - } { + athletic + } 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 - } { + athletic + } 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 { - baseball - }
{ + athletic + } tax revenues and, if the actual incremental
{ - baseball - } { + athletic + } tax revenues exceed the
estimated incremental { - baseball - } { + athletic + } 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 - } { + athletic + } 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 184.400 to 184.408;
(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 - } { + athletic + } tax revenues
are made as described in ORS 184.400 to 184.408.
(2) The obligation of the State of Oregon, under ORS 184.400 to
184.408 and the grant agreements authorized by this section, to
transfer estimated or actual incremental { - baseball - }
{ + athletic + } 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 - }
{ + athletic + } tax revenues and amounts equal to the amount by
which the actual incremental { - baseball - }
{ + athletic + } tax revenues exceed the estimated incremental
{ - baseball - } { + athletic + } tax revenues from the
General Fund to the Major League Stadium Grant Fund, as provided
in ORS 184.400 to 184.408, 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. ORS 184.406 is amended to read:
184.406. The Director of the Oregon Department of
Administrative Services may not execute a grant agreement
authorized by ORS 184.404 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 { + or 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 { - baseball - } { + athletic + } 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
{ - baseball - } { + athletic + } tax revenues;
(b) The methodology for determining the actual incremental
{ - baseball - } { + athletic + } tax revenues; and
(c) The requirement that estimated and actual incremental
{ - baseball - } { + athletic + } 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 { - $50,000 - } { + $40,000 + } 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 6. { + Notwithstanding any other law limiting
expenditures, the amount of $1 is established for the biennium
beginning July 1, 2009, 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 ORS 184.404. + }
SECTION 7. { + Notwithstanding any other law limiting
expenditures, the amount of $1 is established for the biennium
beginning July 1, 2009, 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 ORS 184.400
to 184.408 and 316.213 to 316.219. + }
SECTION 8. { + Notwithstanding any other law, incremental
athletic tax revenues generated from the personal income tax
liabilities of members of a professional athletic team engaged in
Major League Soccer may not be transferred or deposited into the
Major League Stadium Grant Fund established under ORS 184.408
prior to July 1, 2011. + }
SECTION 9. { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
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