Bill Text: OR HB2205 | 2011 | Regular Session | Introduced
Bill Title: Relating to revenue bonds issued under authority of the Oregon Facilities Authority; prescribing an effective date.
Spectrum: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2205 Detail]
Download: Oregon-2011-HB2205-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 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 1840
House Bill 2205
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Sustainability and Economic Development for State Treasurer and
Oregon Facilities Authority)
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 pass-through revenue bonds to finance
projects outside this state. Defines 'within this state' in
relation to institutions eligible to receive pass-through
financing under authority of Oregon Facilities Authority.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to revenue bonds issued under authority of the Oregon
Facilities Authority; creating new provisions; amending ORS
286A.140, 289.005 and 316.056; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 289.005, as amended by section 1, chapter 3,
Oregon Laws 2010, is amended to read:
289.005. { + (1) + } As used in this chapter, unless the
context requires otherwise:
{ - (1) - } { + (a) + } 'Authority' means the Oregon
Facilities Authority created by this chapter.
{ - (2) - } { + (b) + } 'Bonds' or 'revenue bonds' means
revenue bonds, as defined in ORS 286A.001.
{ - (3) - } { + (c) + } 'Cost' means the cost of:
{ - (a) - } { + (A) + } Construction, acquisition,
alteration, enlargement, reconstruction and remodeling of a
project, including all lands, structures, real or personal
property, rights, rights of way, air rights, franchises,
easements and interests acquired or used for or in connection
with a project;
{ - (b) - } { + (B) + } Demolition or removal of buildings
or structures on land as acquired, including the cost of
acquiring lands to which the buildings or structures may be
moved;
{ - (c) - } { + (C) + } All machinery and equipment;
{ - (d) - } { + (D) + } Financing charges, interest prior
to, during and for a period after completion of construction and
acquisition, reasonably required amounts to make the project
operational, provisions for reserves for principal and interest
and for extensions, enlargements, additions, replacements,
renovations and improvements;
{ - (e) - } { + (E) + } Architectural, actuarial
engineering, financial and legal services, plans specifications,
studies, surveys, estimates of costs and of revenues,
administrative expenses, expenses necessary or incident to
determining the feasibility or practicability of constructing the
project;
{ - (f) - } { + (F) + } Management, operation or funding of
a qualified program; and
{ - (g) - } { + (G) + } Other expenses that are necessary
or incident to a project, the financing of the project or the
placing of the project in operation.
{ - (4) - } { + (d) + } 'Cultural institution' means a
public or nonprofit institution within this state which engages
in the cultural, intellectual, scientific, environmental,
educational or artistic enrichment of the people of this state.
'Cultural institution' includes, without limitation, aquaria,
botanical societies, historical societies, land conservation
organizations, libraries, museums, performing arts associations
or societies, scientific societies, wildlife conservation
organizations and zoological societies. 'Cultural institution'
does not mean any school or any institution primarily engaged in
religious or sectarian activities.
{ - (5) - } { + (e) + } 'Health care institution' means a
public or nonprofit organization within this state that provides
health care and related services, including but not limited to
the provision of inpatient and outpatient care, diagnostic or
therapeutic services, laboratory services, medicinal drugs,
nursing care, assisted living, elderly care and housing,
including retirement communities, and equipment used or useful
for the provision of health care and related services.
{ - (6) - } { + (f) + } 'Housing institution' means a
public or nonprofit organization within this state that provides
decent, affordable housing to low income persons.
{ - (7) - } { + (g) + } 'Institution' means a cultural
institution, a health care institution, a housing institution, an
institution for higher education, an institution for
prekindergarten through grade 12 education, a school for persons
with disabilities or another nonprofit.
{ - (8) - } { + (h) + } 'Institution for higher education'
means a public or nonprofit educational institution within this
state authorized by law to provide a program of education beyond
the high school level, including community colleges and associate
degree granting institutions. 'Institution for higher education'
does not mean any school or any institution primarily engaged in
religious or sectarian activities.
{ - (9) - } { + (i) + } 'Institution for prekindergarten
through grade 12 education' means an Oregon prekindergarten as
defined in ORS 329.170, a public educational institution within
this state authorized by law to provide a program of education
for kindergarten through grade 12 or a nonprofit educational
institution within this state registered as a private school
under ORS 345.545 that provides a program of education for
prekindergarten through grade 12. 'Institution for
prekindergarten through grade 12 education' does not mean a
school or institution primarily engaged in religious or sectarian
activities.
{ - (10) - } { + (j) + } 'Nonprofit' means an institution,
organization or entity within this state exempt from taxation
under section 501(c)(3) of the Internal Revenue Code as defined
in ORS 314.011.
{ - (11)(a) - } { + (k)(A) + } 'Project' means the
financing or refinancing of the costs, including, without
limitation, acquisition, construction, enlargement, remodeling,
renovation, improvement, furnishing and equipping, of the
following:
{ - (A) - } { + (i) + } In the case of a participating
institution that is an institution for higher education, an
institution for prekindergarten through grade 12 education or a
school for persons with disabilities, { - a structure or - }
structures { + , within or outside this state, + } suitable for
use as a dormitory or other multiunit housing facility for
students, faculty, officers or employees, or a dining hall,
student union, administration building, academic building,
library, laboratory, research facility, classroom, athletic
facility, health care facility, maintenance, storage or utility
facility and other structures or facilities related to any of the
structures required or used for the instruction of students, the
conducting of research or the operation of an institution for
higher education, an institution for prekindergarten through
grade 12 education or a school for persons with disabilities. It
shall also include landscaping, site preparation, furniture,
equipment and machinery and other similar items necessary or
convenient for the operation of a particular facility or
structure in the manner for which its use is intended and shall
further include any furnishings, equipment, machinery and other
similar items necessary or convenient for the operation of an
institution of higher education, an institution for
prekindergarten through grade 12 education or a school for
persons with disabilities, whether or not such items are related
to a particular facility or structure financed under this
chapter.
{ - (B) - } { + (ii) + } In the case of a participating
institution that is a housing institution, { - a structure
or - } structures { + , within or outside this state, + }
suitable for use as housing, including residences or multiunit
housing facilities, administration buildings, maintenance,
storage or utility facilities and other structures or facilities
related to any of the structures required or used for the
operation of the housing, including parking and other facilities
or structures essential or convenient for the orderly provision
of such housing. It shall also include landscaping, site
preparation, furniture, equipment and machinery and other similar
items necessary or convenient for the particular housing facility
or structure in the manner for which its use is intended and
shall further include any furnishings, equipment, machinery and
other similar items necessary or convenient for the provision of
housing, whether or not such items are related to a particular
facility or structure financed under this chapter.
{ - (C) - } { + (iii) + } In the case of a participating
institution that is a cultural institution, { - a structure
or - } structures { + , within or outside this state, + }
suitable for { - its - } { + the institution's + } purposes,
whether or not to be used to provide educational services, or
research resources, including use as or in connection with an
administrative facility, aquarium, assembly hall, auditorium,
botanical garden, exhibition hall, gallery, greenhouse, library,
museum, scientific laboratory, theater or zoological facility. It
shall also include supporting facilities, landscaping, site
preparation, furniture, equipment, machinery and other similar
items necessary or convenient for the operation of a cultural
institution, whether or not such items are related to a
particular facility or structure financed under this chapter,
including books, works of art or other items for display or
exhibition.
{ - (D) - } { + (iv) + } In the case of a participating
institution that is a health care institution, { - a structure
or - } structures { + , within or outside this state, + }
suitable for { - its - } { + the institution's + } purposes,
including hospital facilities, inpatient and outpatient clinics,
doctors' offices, administration buildings, parking, maintenance,
storage or utility facilities, nursing care or assisted living
facilities, elderly care and housing facilities, including
retirement communities, and other structures or facilities
related to any of the structures required or used for the
operation of the health care institution, including other
facilities or structures essential or convenient for the orderly
provision of such health care. It shall also include landscaping,
site preparation, furniture, equipment and machinery and other
similar items necessary or convenient for the particular health
care facility or structure in the manner for which its use is
intended and shall further include any working capital,
furnishings, equipment, machinery and other similar items
necessary or convenient for the provision of health care, whether
or not such items are related to a particular facility or
structure financed under this chapter.
{ - (E) - } { + (v) + } In the case of a participating
institution that is a nonprofit not otherwise specified in this
subsection, { - a structure or - } structures suitable for
{ - its - } { + the institution's + } purposes, including
facilities or structures { + , within or outside this state, + }
essential or convenient for the orderly operations of the
nonprofit. It shall also include acquisition of interests in
land, landscaping, site preparation, furniture, equipment and
machinery and other similar items necessary or convenient for the
nonprofit, whether or not the items are related to a particular
facility or structure financed under this chapter, including
borrowings needed to alleviate interim cash flow deficits of the
nonprofit.
{ - (F) - } { + (vi) + } In the case of a participating
institution, costs to manage, operate or fund a qualified program
or costs to alleviate interim cash flow deficits of the
institution.
{ - (b) - } { + (B) + } 'Project' also includes any
combination of one or more of the projects undertaken jointly by
one or more participating institutions with each other or with
other parties.
{ - (c) - } { + (C) + } 'Project' does not include the
financing or refinancing of the costs of a facility used or to be
used for sectarian instruction or as a place of religious worship
or any facility which is used or to be used primarily in
connection with any part of the program of a school or department
of divinity for any religious denomination.
{ - (12) - } { + (L) + } 'Qualified program' means a
financing program, or other activities, of a participating
institution that is eligible for financing through the issuance
of revenue bonds the interest on which is:
{ - (a) - } { + (A) + } Excluded from gross income for
federal income tax purposes; or
{ - (b) - } { + (B) + } Eligible for a federal tax credit
or subsidy under the Internal Revenue Code.
{ - (13) - } { + (m) + } 'School for persons with
disabilities' means a public or nonprofit primary, secondary or
post-secondary school within this state that serves students at
least 70 percent of whom are persons with disabilities as
determined by one or more appropriate education, rehabilitation,
medical or mental health authorities; is accredited by a
recognized accrediting body; and is determined by the authority
to be a major resource of benefit to persons with disabilities.
'School for persons with disabilities' does not mean any school
or any institution primarily engaged in religious or sectarian
activities.
{ + (2) As used in subsection (1) of this section in relation
to institutions eligible to participate, 'within this state'
means that the institution:
(a) Seeks to finance a project located in the State of Oregon;
(b) Has its primary place of business in the State of Oregon or
conducts a substantial portion of its operations in the State of
Oregon; or
(c) Is owned by or affiliated under common ownership with an
institution described in paragraph (b) of this subsection. + }
SECTION 2. { + Section 3 of this 2011 Act is added to and made
a part of ORS chapter 289. + }
SECTION 3. { + Interest on revenue bonds issued by the State
Treasurer under the authority of this chapter is exempt from
personal income tax under ORS chapter 316 only to the extent that
the bond proceeds generating the interest are used to finance
eligible projects located in the State of Oregon. + }
SECTION 4. ORS 286A.140 is amended to read:
286A.140. { + Except as provided in section 3 of this 2011
Act, + } interest on all bonds of the State of Oregon is exempt
from personal income tax under ORS chapter 316.
SECTION 5. ORS 316.056 is amended to read:
316.056. { + (1) + } In addition to the modifications to
federal taxable income contained in this chapter, there shall be
subtracted from federal taxable income { + , to the extent
includable in gross income for federal income tax purposes, + }
the interest or dividends on obligations of { + :
(a) + } The State of Oregon { - or - } { + , pursuant to ORS
286A.140.
(b) + }A public body, as defined in ORS 287A.001 { + . + }
{ - , to the extent includable in gross income for federal
income tax purposes. However, - }
{ + (2) + } The amount subtracted under this section shall be
reduced by any interest on indebtedness incurred to carry the
obligations or securities described in this section { - , - }
and by any expenses incurred in the production of interest or
dividend income described in this section.
SECTION 6. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
----------
