Article 1. - Administrative Provisions

Article 2. - Guam Raceway Park

Article 3. - Soccer Stadium Financing

Article 4. - Tax Credits for Contributors to Public School Sports Facilities

Article 5. - Tax Credits for Contributors to the University of Guam Sports Complex

Article 6. - Tax Credits for the Tiyan Gymnasium

Article 7. - Tax Credits for the Harmon Industrial Park Roadway Rehabilitation and Improvement Project

Article 8. - Guam Multi-Purpose Community Stadium Complex Commission

12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY CHAPTER 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY Article 1. Administrative Provisions. Article 2. Guam Raceway Park. Article 3. Soccer Stadium Financing. Article 4. Tax Credits for Contributors to Public School Sports Facilities. Article 5. Tax Credits for Contributors to the University of Guam Sports Complex. Article 6. Tax Credits for the Tiyan Gymnasium. Article 7. Tax Credits for the Harmon Industrial Park Roadway Rehabilitation and Improvement Project. Article 8. Guam Multi-Purpose Community Stadium Complex Commission. ARTICLE 1 ADMINISTRATIVE PROVISIONS SOURCE: The Article was enacted by P.L. 25-027:1 (June 4, 1999). § 77101. § 77102. Rules and Regulations. Scope. § 77101. Scope. The provisions of this Chapter shall apply to any projects or activities of the Guam Economic Development Authority authorized by public law, but not set out or identified in its basic organizational charter contained in Chapter 50 of this Title. § 77102. Rules and Regulations. All such special projects or activities shall be administered by rules and regulations developed under the requirements of the Administrative Adjudication Law (‘AAL’). Such rules and regulations may be developed either by the Guam Economic Development Authority acting alone or jointly with one (1) or more other agencies of the government of Guam, unless such joint development is expressly prohibited by Public Law. 1 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY ---------- ARTICLE 2 GUAM RACEWAY PARK SOURCE: The Article was enacted by P.L. 25-027:1 (June 4, 1999). § 77201. Applicability of Article. § 77202. Credits Against Business Privilege Tax. § 77203. Limits of Liability. § 77201. Applicability of Article. The provisions of this Article are applicable to the Guam Raceway Park as authorized by the Act. § 77202. Credits Against Business Privilege Tax. To the extent that any business licensed to do business on Guam contributes the cost of design, labor and materials to design and/or construct the Guam Raceway Park, such business must be certified by GEDA to be eligible for any credits against Business Privilege Taxes as authorized by the Act. The maximum amount of such credits authorized on an annual basis shall also be certified by GEDA prior to expenditures by any licensed business for the Guam Raceway Park. The maximum amount of credits authorized shall be subject to the limitations set forth in § 9 of the Act. NOTE: Effective July 17, 2007, reference to Gross Receipts Tax (GRT), amended to Business Privilege Tax (BPT), pursuant to P.L. 29-002:VI:28 (May 18, 2007). § 77203. Limits of Liability. As the Guam Racing Federation having received a license from the Chamorro Land Trust (Trust) to use Trust property for the Guam Raceway Park, the Trust shall not be liable for any claims resulting from the use of such property. Furthermore, consistent with the provisions of § 3 of the Act, neither GEDA, the Department of Revenue and Taxation, nor any other agency of the government of Guam shall be liable for any claims arising from the use of such property. 2017 NOTE: As enacted by P.L. 25-027, this provision contained an erroneous reference to “§ 5 of the Act”; however, this reference is manifest error. P.L. 25-027 consists only of Sections 1 through 4 and did not include Section 5. This reference has been corrected by the Compiler pursuant to the authority of 1 GCA § 1606. 2 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY ---------- ARTICLE 3 SOCCER STADIUM FINANCING SOURCE: This Article 3 was added by P.L. 27-085:3 (Apr. 30, 2004). § 77301. Credit Against Business Privilege Taxes. § 77302. Limits of Liability. § 77303. Event Admissions Assessment. § 77304. § 77305. Cap on BPT Credits for Design and Construction of the Fines and Penalties. Soccer Stadium. § 77306. Matching Funds Required. § 77307. § 77308. § 77309. GEDCA Report. § 77310. Rules and Regulations. Public Access to Soccer Stadium. Filing of Annual Reports. § 77301. Credit Against Business Privilege Taxes. (a) To the extent that any business contributes the cost of design, labor and materials that are for the construction of the Guam Football (Soccer) Association’s soccer stadium and facilities, it shall be entitled to credit of business privilege taxes. The basis for contribution to the project shall be the actual cost of the contribution plus the cost of transportation from the point of origin to its destination. (b) Any unused credits not used in the current tax period may be carried over into subsequent tax periods until such credits are exhausted. (c) The total credits allowed under this Act shall not exceed the actual dollar amount of the expenditures on the project. SOURCE: Added by P.L. 27-085:3 (Apr. 30, 2004). Subsection (a) amended by P.L. 30-003:4 (Mar. 13, 2009). NOTE: Effective July 17, 2007, reference to Gross Receipts Tax (GRT), amended to Business Privilege Tax (BPT), pursuant to P.L. 29-002:VI:28 (May 18, 2007). § 77302. Limits of Liability. (a) Unless a contractor, materials supplier, designer or landlord/less or has direct involvement in the operations of the soccer stadium and 3 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY facilities as a director, officer, manager, employee, representative or agent of the Guam Football (Soccer) Association, they shall not be held liable for any civil or criminal damages or penalties directly or indirectly arising from or related to the operations, any use, or possession of the soccer stadium and facilities, unless it can be proven that the materials or design work provided were substandard. (b) As the soccer stadium and facilities is a private venture operated by the Guam Football (Soccer) Association, the government of Guam shall not be liable for any claims or damages arising from the operation of the soccer stadium and facilities. (c) The Guam Football (Soccer) Association, its directors, agents, consultants, employees, or other affiliated person or persons shall make no representation that the government of Guam has any interest in the operation of such stadium and facilities. SOURCE: Added by P.L. 27-085:3 (Apr. 30, 2004). Amended by P.L. 30-003:5 (Mar. 13, 2009). 2017 NOTE: Subsection designations added pursuant to the authority of 1 GCA § 1606. § 77303. Event Admissions Assessment. The organizers of any event held at the soccer stadium and facilities for which a fee is charged for admission, shall pay to the government of Guam, an admissions assessment of Two Dollars ($2.00) per paid admission of ten percent (10%) of the admission charged, whichever is less. SOURCE: Added by P.L. 27-085:3 (Apr. 30, 2004). Amended by P.L. 30-003:6 (Mar. 13, 2009). § 77304. Fines and Penalties. (a) To the extent that a company providing materials and services for the project contained herein takes more tax benefits in terms of business privilege taxes than the actual value of the materials or services contributed to the project authorized herein, that company shall be required to pay all interest and penalties applicable under Guam law and the Internal Revenue Code for failure to pay taxes in addition to payment of the actual taxes due. (b) To the extent that any individual, officer, director or other person having interest in a company providing materials or services for 4 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY the project contained herein knowingly and willingly cause such company to take more tax benefits in terms of business privilege taxes than the actual value of the material or services contributed to the project, such individual shall be guilty of a felony in the third degree punishable by a fine of not less than Five Thousand Dollars ($5,000) or one (1) year in prison or both. 2017 NOTE: Subsection designations added pursuant to the authority of 1 GCA § 1606. NOTE: Effective July 17, 2007, reference to Gross Receipts Tax (GRT), amended to Business Privilege Tax (BPT), pursuant to P.L. 29-002:VI:28 (May 18, 2007). § 77305. Cap on BPT Credits for Design and Construction of the Soccer Stadium and Facilities. The total amount of credits against Business Privilege Taxes for the design and construction of the soccer stadium and facilities authorized herein shall not exceed One Million Two Hundred Thousand Dollars ($1,200,000). The development of soccer facilities in the southern part of the island shall be funded using additional tax credits and/or matching funds secured. SOURCE: Added by P.L. 27-085:3 (Apr. 30, 2004). Amended by P.L. 30-003:7 (Mar. 13, 2009), P.L. 30-101:15 (Mar. 12, 2010), P.L. 31-233:XII:13(a) (Sept. 7, 2012). NOTE: Effective July 17, 2007, reference to Gross Receipts Tax (GRT), amended to Business Privilege Tax (BPT), pursuant to P.L. 29-002:VI:28 (May 18, 2007). § 77306. Matching Funds Required. The tax credits provided to a contributor shall be in a dollar for dollar matching grant form, wherein every dollar that is given by the government of Guam to the contributor as a tax credit shall be matched by a dollar from the Guam Football (Soccer) Federation, to be expended towards the design and construction of the soccer stadium and facilities. SOURCE: Added by P.L. 27-085:3 (Apr. 30, 2004). Amended by P.L. 30-003:8 (Mar. 13, 2009). § 77307. Public Access to Soccer Stadium. As a condition for the Guam Football (Soccer) Association and its contributors to be entitled to the tax benefits of the program established in this Article, the soccer stadium and facilities must be available to the general public in accordance with the Memorandum of Understanding 5 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY with the Department of Parks and Recreation governing use of the property. SOURCE: Added by P.L. 27-085:3 (Apr. 30, 2004). Amended by P.L. 30-003:9 (Mar. 13, 2009). § 77308. Filing of Annual Reports. (a) The Guam Football (Soccer) Association shall annually submit a copy of the financial statement required in 18 GCA §14102 to the Speaker of I Liheslaturan Guåhan, the Public Auditor, and the Administrator of GEDCA. (b) The Guam Football (Soccer) Association must ensure that it is current with all its Articles and By-Laws, and should there be any amendments to such documents, it should immediately file such amendments to the Department of Revenue and Taxation. § 77309. GEDCA Report. GEDCA shall submit a report to I Liheslaturan Guåhan [The Legislature] detailing the impact of the program on the Business Privilege Taxes, sports, and economic activities on Guam. GEDCA shall also include in its report its monitoring efforts and any other information related to the program. The report shall be transmitted to I Liheslatura on an annual basis until the One Million Dollars ($1,000,000) BPT cap pursuant to § 77305 of this Article is exhausted. § 77310. Rules and Regulations. GEDCA shall submit to I Liheslaturan Guåhan within thirty (30) days upon the enactment of this Article, rules and regulations governing the implementation of the tax credits portion of this Article. NOTE: Effective July 17, 2007, reference to Gross Receipts Tax (GRT), amended to Business Privilege Tax (BPT), pursuant to P.L. 29-002:VI:28 (May 18, 2007). ---------- ARTICLE 4 TAX CREDITS FOR CONTRIBUTORS TO PUBLIC SCHOOL SPORTS FACILITIES SOURCE: Article 4 added by P.L. 27-114 (Dec. 2, 2004). 6 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY § 77401. Legislative Findings and Intent. § 77402. Definitions. § 77403. Credit Against Business Privilege Tax. § 77404. Cap on Business Privilege Tax Credits for Construction, Development, Upgrading, Repair or Maintenance of Gymnasiums. § 77405. Rules and Regulations. § 77406. § 77407. GEDCA Report. School Operations to Continue. § 77401. Legislative Findings and Intent. I Liheslaturan Guåhan finds that several sports facilities within the Department of Education have fallen into disrepair. Whether the facilities are damaged by natural disaster, old age, or simply due to the lack of maintenance, it is of importance that these facilities are restored to a usable and safe condition in order to ensure that students are provided with a venue to hold their physical education classes, athletic competitions among public and private school students, science fairs, school plays, and dances, among other extracurricular activities. However, I Liheslaturan Guåhan also finds that the government of Guam is financially strapped and therefore cannot afford to allocate additional funding for major works that public school sports facilities require. Consequently, I Liheslaturan Guåhan calls for community involvement in guaranteeing that our students continue to have functional gymnasiums and other sports field, which can also be used by the public on special events during the weekends, such as the Special Olympics and Relay for Life. In order to provide incentives to those willing to contribute towards the construction, development, upgrading, repair or maintenance of any public school sports facilities, it is the intent of I Liheslaturan Guåhan to authorize tax credits to any individuals making contributions to public school sports facilities for the above purposes. 2009 NOTE: P.L. 28-045:10 (June 6, 2005) changed the name of the Department of Education to the Guam Public School System. P.L. 30-050:2 (July 14, 2009) reverted the name of the Guam Public School System to the Department of Education. References to Guam Public School System have been changed to Department of Education pursuant to P.L. 30-050:3. 7 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY § 77402. Definitions. As used in this Article: (a) Gymnasium shall mean a public school sports facility, including, but not limited to, gymnasiums and baseball, soccer and football fields constructed, developed, upgraded, repaired, or maintained by an individual, corporation, or limited liability company under the provisions of this Article. § 77403. Credit Against Business Privilege Taxes. (a) Individuals, corporations, or limited liability companies making contributions, as approved by the Superintendent of the Department of Education (hereinafter ADOE@), towards the construction, development, upgrading, repair or maintenance of any gymnasium shall be authorized tax credits against Business Privilege Taxes. The basis for contribution to the project shall be the actual cost of the contribution plus the cost of transportation, if any, from the point of origin to its destination. (b) Any unused credits not used in the current tax period may be carried over into subsequent tax periods until such credits are exhausted. (c) The total credits allowed under this Article shall not exceed the actual dollar amount of the expenditures on the project by the taxpayer. COMMENT: Effective July 17, 2007, reference to Gross Receipts Tax (GRT), amended to Business Privilege Tax (BPT), pursuant to P.L. 29-002:VI:28 (May 18, 2007). 2009 NOTE: P.L. 28-045:10 (June 6, 2005) changed the name of the Department of Education to the Guam Public School System. P.L. 30-050:2 (July 14, 2009) reverted the name of the Guam Public School System to the Department of Education. References to Guam Public School System have been changed to Department of Education pursuant to P.L. 30-050:3. §77404.Cap on Business Privilege Tax Credits for Construction, Development, Upgrading, Repair or Maintenance of Gymnasiums. The total amount of credits against Business Privilege Taxes for the construction, development, upgrading, repair or maintenance of gymnasiums as authorized herein shall not exceed One Million Dollars ($1,000,000.00) for all projects. NOTE: Effective July 17, 2007, reference to Gross Receipts Tax (GRT), amended to Business Privilege Tax (BPT), pursuant to P.L. 29-002:VI:28 (May 18, 2007). 8 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY § 77405. Rules and Regulations. The Guam Economic Development and Commerce Authority (GEDCA) shall promulgate rules and regulations necessary to implement this Section, in accordance with the Administrative Adjudication Law, within sixty (60) days upon the enactment of this Article. § 77406. School Operations to Continue. Pursuant to § 77403(a) of this Article, when approving a project, the Superintendent of the Department of Education must ensure that regular school operations, to the greatest extent possible, are not affected by the construction, development, upgrading, repair or maintenance of a gymnasium. 2009 NOTE: P.L. 28-045:10 (June 6, 2005) changed the name of the Department of Education to the Guam Public School System. P.L. 30-050:2 (July 14, 2009) reverted the name of the Guam Public School System to the Department of Education. References to Guam Public School System have been changed to Department of Education pursuant to P.L. 30-050:3. § 77407. GEDCA Report. GEDCA shall submit a report to I Liheslaturan Guåhan detailing the impact of the program on the Business Privilege Taxes, its monitoring efforts, and any other information related to the program. The report shall be transmitted to I Liheslatura on an annual basis until the One Million Dollars ($1,000,000.00) BPT cap pursuant to § 77407 of this Article is exhausted. NOTE: Effective July 17, 2007, reference to Gross Receipts Tax (GRT), amended to Business Privilege Tax (BPT), pursuant to P.L. 29-002:VI:28 (May 18, 2007). ---------- ARTICLE 5 TAX CREDITS FOR CONTRIBUTORS TO THE UNIVERSITY OF GUAM SPORTS COMPLEX SOURCE: This new Article was added by P.L. 27-130 (Dec. 20, 2004) as Article 4. However, Article 4 was already occupied. Thus, this new Article was renumbered by Compiler as Article 5. § 77501. Legislative Findings and Intent. § 77502. Tax Credits. 9 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY § 77503. Maximum Amount of Tax Credits Authorized. § 77504. Determination of Amount of Contribution for Donated Merchandise. § 77505. Approval of Contributions. § 77506. Miscellaneous. § 77507. Rules and Regulations. § 77501. Legislative Findings and Intent. As a result of the damage caused by the typhoons and super- typhoons that have plagued our Island in the last five (5) years, Guam=s outdoor sporting facilities have deteriorated dramatically. Guam=s youth and adult sporting leagues are left searching for sites to hold their annual sporting competitions. It is the consensus of I Liheslaturan Guåhan that the development and construction of a multi-purpose outdoor sports facility will enhance the growth of such outdoor sports as football, soccer, tennis, baseball, softball, and rugby on Guam and attract not only regional and international events, but also Asian professional and college teams seeking a venue for spring training, giving a much needed boost to Guam=s tourism industry. The University of Guam, with its existing outdoor sports facilities provides a suitable location for the development of a first class outdoor multi-purpose sports complex. SOURCE: Added by P.L. 27-130:1 (Dec. 20, 2004) as § 77401. Renumbered by the Compiler pursuant to authority of 1 GCA § 1606. § 77502. Tax Credits. Guam sole proprietorships, corporations, partnerships, and limited liability companies making contributions towards the development, construction, financing, maintenance, and improvement of an outdoor multi-purpose sports complex at the University of Guam shall be entitled to tax credits against those excise taxes levied against the contributor pursuant to Chapter 22 (Annual Excise and Admission Taxes), Article 3 of Chapter 26 (Alcoholic Beverage Tax), Article 6 of Chapter 26 (Tobacco Tax), and Chapter 28 (Use Tax) of Division 2 of Title 11 of the Guam Code Annotated. All tax credits referred to in this Article shall mean tax credits applied against excise tax liabilities. SOURCE: Added by P.L. 27-130:1 (Dec. 20, 2004) as § 77402. Renumbered by the Compiler pursuant to authority of 1 GCA § 1606. § 77503. Maximum Amount of Tax Credits Authorized. 10 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY The aggregate amount of tax credits authorized by this Article for all contributors shall not exceed One Million Dollars ($1,000,000). SOURCE: Added by P.L. 27-130:1 (Dec. 20, 2004) as § 77403. Renumbered by the Compiler pursuant to authority of 1 GCA § 1606. § 77504. Determination of Amount of Contribution for Donated Merchandise. The amount of contribution of any donated merchandise used in the development, construction and improvement of the outdoor multi- purpose sports complex at the University of Guam shall be the actual cost of the item plus the cost of transportation from the point of origin to its destination without profit, mark-up or taxes. SOURCE: Added by P.L. 27-130:1 (Dec. 20, 2004) as § 77401. Renumbered by the Compiler pursuant to authority of 1 GCA § 1606. § 77505. Approval of Contributions. The University of Guam or its designee shall be responsible for approving the development, construction, financing, maintenance, and improvement of the outdoor multi-purpose sports complex at the University of Guam. contributions made towards the SOURCE: Added by P.L. 27-130:1 (Dec. 20, 2004) as § 77405. Renumbered by the Compiler pursuant to authority of 1 GCA § 1606. § 77506. Miscellaneous. The tax credits authorized by this Act shall be subject to the following conditions: (a) Tax credits that cannot be applied during a single tax year may be applied to excise tax liability in subsequent years. (b) A single contributor shall only be entitled to claim tax credits up to Twenty-Five Thousand Dollars ($25,000.00) per month, not to exceed Three Hundred Thousand Dollars ($300,000.00) per year or tax credits shall not be applied to more than fifty percent (50%) of the contributor==s monthly excise tax liability. (c) To be eligible for the tax credits authorized by this Article, contributors must be licensed to do business on Guam. SOURCE: Added by P.L. 27-130:1 (Dec. 20, 2004) as § 77406. Renumbered by the Compiler pursuant to authority of 1 GCA § 1606. 11 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY § 77507. Rules and Regulations. In accordance with the Administrative Adjudication Law, the Guam Economic Development and Commerce Authority shall formulate rules and regulations governing the issuance of the tax credits and the allocation of the aggregate tax credits among contributors authorized by this Article. SOURCE: Added by P.L. 27-130:1 (Dec. 20, 2004) as § 77407. Renumbered by the Compiler pursuant to authority of 1 GCA § 1606. ---------- ARTICLE 6 TAX CREDITS FOR THE TIYAN GYMNASIUM SOURCE: New Article was added by P.L 32-202 (Oct. 13, 2014). § 77601. Credit Against Eligible Taxes. § 77602. Limits of Liability. § 77603. Fines and Penalties. § 77604. Cap on Business Privilege Tax Credits for the Rehabilitation and Improvement of the Tiyan Gymnasium and Facilities. Public Access to Tiyan Gymnasium and Facilities. Filing of Annual Reports. § 77605. § 77606. § 77607. GEDA Report. § 77608. Rules and Regulations. § 77609. Licensing Agreement for Tiyan Gymnasium to Guam Basketball Confederation. § 77610. Ancestral Lands. § 77601. Credit Against Eligible Taxes. that are for labor and materials (a) To the extent that any business contributes the actual cost of design, the rehabilitation and improvement of the Department of Parks and Recreation (DPR) Tiyan Gymnasium and facilities, it shall be entitled to credit of business privilege taxes that are not already pledged for any purpose by Guam law. The basis for contribution to the project shall be the actual cost of the contribution plus the cost of transportation from the point of origin to its destination. 12 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY (b) Any unused credits not used in the current tax period may be carried over into subsequent tax periods until such credits are exhausted. (c) The total credits allowed under this Act shall not exceed the actual dollar amount of the expenditures on the project. § 77602. Limits of Liability. Unless a contractor, materials supplier, designer or landlord/lessor has direct involvement in the operations of the Tiyan Gymnasium and facilities as a director, officer, manager, employee, representative or agent of the Guam Basketball Confederation, they shall not be held liable for any civil or criminal damages or penalties directly or indirectly arising from or related to the operations, any use, or possession of the gymnasium and facilities, unless it can be proven that the materials or design work provided were substandard. As the Tiyan Gymnasium and facilities is a private venture operated by the Guam Basketball Confederation, the government of Guam shall not be liable for any claims or damages arising from the operation of the gymnasium and facilities. The Guam Basketball Confederation, its directors, agents, consultants, employees, or other affiliated person or persons shall make no representation that the government of Guam has any interest in the operation of such gymnasium and facilities. § 77603. Fines and Penalties. To the extent that a company providing materials and services for the project contained herein takes more tax benefits in terms of business privilege taxes than the actual value of the materials or services contributed to the project authorized herein, that company shall be required to pay all interest and penalties applicable under Guam law and the Internal Revenue Code for failure to pay taxes, in addition to payment of the actual taxes due. To the extent that any individual, officer, director or other person having interest in a company providing materials or services for the project contained herein knowingly and willingly causes such company to take more tax benefits in terms of business privilege taxes than the actual value of the material or services contributed to the project, such individual shall be guilty of a felony in the third degree punishable by a fine of not less than Five Thousand Dollars ($5,000), or one (1) year in prison, or both. § 77604. Cap on Business Privilege Tax Credits for Rehabilitation and Improvement of the Tiyan Gymnasium and Facilities. 13 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY (a) The total amount of credits against unpledged business privilege taxes for the rehabilitation and improvement of the Tiyan Gymnasium and facilities authorized herein shall not exceed Two Million Five Hundred Thousand Dollars ($2,500,000) over a ten (10) year period. No more than Two Hundred Fifty Thousand Dollars ($250,000) in tax credits shall be authorized for each year of the program. (b) If, at the expiration of the ten (10) year period authorized pursuant to this Article, there are still unclaimed authorized tax credits, I Liheslaturan Guåhan may, in its discretion, extend the eligible period until such time that all eligible tax credits are exhausted. (c) I Liheslaturan Guåhan may, in its discretion, extend the term and modify any part of the program based on future improvement plans and demand for such facilities in this location. (d) Construction and professional services and equipment and materials shall be competitively procured. § 77605. Public Access to Tiyan Gymnasium and Facilities. As a condition for the Guam Basketball Confederation and its contributors to be entitled to the tax benefits of the program established in this Article, the gymnasium and facilities must be available to the general public in accordance with the Memorandum of Understanding with the Department of Parks and Recreation governing the use of the property. The Memorandum of Understanding shall incorporate provisions that support opportunities for access to the gymnasium and facilities by individuals with disabilities. § 77606. Filing of Annual Reports. (a) The Guam Basketball Confederation shall annually submit a copy of the financial statement required in § 14102, Chapter 14 of Title 18 GCA to the Speaker of I Liheslaturan Guåhan, the Public Auditor, and the Administrator of GEDA. (b) The Guam Basketball Confederation must ensure that it is current with all its articles and by-laws, and should there be any amendments to such documents, it should immediately file such amendments to the Department of Revenue and Taxation. § 77607. GEDA Report. 14 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY GEDA shall submit a report to I Liheslaturan Guåhan detailing the impact of the program on the business privilege taxes, sports, and economic activities on Guam. GEDA shall also include in its report its monitoring efforts and any other information related to the program. The report shall be transmitted to I Liheslaturan Guåhan on an annual basis until the tax credit cap pursuant to § 77604 of this Article is exhausted. § 77608. Rules and Regulations. The Guam Economic Development Authority shall implement and monitor the tax credit program authorized pursuant to this Article based on rules and regulations already adopted by GEDA for previous tax credit programs. § 77609. Licensing Agreement for Tiyan Gymnasium to Guam Basketball Confederation. The Department of Parks and Recreation and the Guam Basketball Confederation shall enter into a license agreement for the improvement, rehabilitation and maintenance of the Tiyan Gymnasium for a period of ten (10) years, in accordance with the provisions of the Memorandum of Understanding entered into by the Guam Basketball Confederation and the Department of Parks and Recreation on November 21, 2013. If at any time the Guam Basketball Confederation does not comply with any provision of the Memorandum of Understanding, the license shall be null and void, and management of the property shall revert solely to the Department of Parks and Recreation. § 77610. Ancestral Lands. Nothing in this Article shall prevent the return of ancestral lands upon such time that such ownership is fully reconciled. ---------- ARTICLE 7 TAX CREDITS FOR THE HARMON INDUSTRIAL PARK ROADWAY REHABILITATION AND IMPROVEMENT PROJECT SOURCE: Entire Article added by P.L. 33-191:2 (Dec. 13, 2016). 2017 NOTE: P.L. 33-191:3 stated the following: Section 3. Effective Date. This Act shall be effective upon enactment, except that no tax credits authorized in Section 2 of 15 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY this Act shall be applied toward the payment of business privilege taxes or use excise taxes until October 1, 2017. Such credits shall only be applied toward the payment of taxes which become due and payable thereafter. § 77701. Applicability of Article. § 77702. Credits Against Unpledged Business Privilege Tax. § 77703. Cap on Business Privilege Tax Credits for the Rehabilitation and Improvement of the Harmon Industrial Park Roadway. § 77704. Credits Against Use Excise Tax. § 77705. Cap on Use Excise Tax Credits for the Rehabilitation and Improvement of the Harmon Industrial Park Roadway. § 77706. GEDA [Guam Economic Development Authority] Report. § 77707. Rules and Regulations. § 77708. Approval of Contributions. § 77709. § 77710. Architectural and Engineering Design. Fines and Penalties. § 77701. Applicability of Article. The provisions of this Article are applicable to the Harmon Industrial Park roadway as authorized by this Act. § 77702. Credits Against Unpledged Business Privilege Tax. (a) A business, to the extent that such business contributes to the cost of design, labor, and materials that is for the rehabilitation and improvement of the Harmon Industrial Park roadway, as identified and approved by GEDA, shall be entitled to credit of unpledged business privilege taxes. The basis for contribution to the project shall be the actual cost of the contribution plus the cost of transportation from the point of origin to its destination. (b) Any unused credits not used in the current tax period may be carried over into subsequent tax periods until such credits are exhausted. (c) The total credits allowed under this Act shall not exceed the actual dollar amount of the expenditures on the project. Cap on Business Privilege Tax Credits for the § 77703. Rehabilitation and Improvement of the Harmon Industrial Park Roadway. 16 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY (a) The total amount of credits against unpledged business privilege taxes for the rehabilitation and improvement of the Harmon Industrial Park Roadway authorized herein shall not exceed One Million Dollars ($1,000,000) over a five (5) year period. For the first (1st) year, which initiates on October 1, 2017, up to Seventy-five Thousand Dollars ($75,000) in tax credits shall be authorized. For years two (2), three (3), and four (4), which initiate on October 1, 2018, October 1, 2019, and October 1, 2020, respectively, no more than Two Hundred Fifty Thousand Dollars ($250,000) in tax credits shall be authorized for each year of the program. For the fifth (5th) and final year, which initiates on October 1, 2021, no more than One Hundred Seventy-five Thousand Dollars ($175,000) in tax credits shall be authorized. (b) If, at the expiration of the five (5) year period authorized pursuant to this Article, there are still unclaimed authorized tax credits, I Liheslaturan Guåhan may, in its discretion, extend the eligible period until such time that all eligible tax credits are exhausted. (c) I Liheslaturan Guåhan may, in its discretion, extend the term and modify any part of the program based on future improvement plans and demand in this location. (d) Construction and professional services and equipment and materials shall be competitively procured. SOURCE: Added by P.L. 33-191:2 (Dec. 13, 2016). Subsection (a) and (b) amended by P.L. 34-010: 1 (June 7, 2017). § 77704. Credits Against Use Excise Tax. (a) A business, to the extent that such business contributes to the cost of design, labor, and materials that are for the rehabilitation and improvement of the Harmon Industrial Park roadway, as identified and approved by GEDA [Guam Economic Development Authority], shall be entitled to credit of use excise taxes, excluding those pledged to the Healthy Futures Fund. The basis for contribution to the project shall be the actual cost of the contribution plus the cost of transportation from the point of origin to its destination. (b) Any unused credits not used in the current tax period may be carried over into subsequent tax periods until such credits are exhausted. (c) The total credits allowed under this Article shall not exceed the actual dollar amount of the expenditures on the project. 17 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY § 77705. Cap on Use Excise Tax Credits for the Rehabilitation and Improvement of the Harmon Industrial Park Roadway. (a) The total amount of credits against use excise taxes, not inclusive of those pledged for the Healthy Futures Fund, for the rehabilitation and improvement of the Harmon Industrial Park Roadway authorized herein shall not exceed Three Million Dollars ($3,000,000) over a five (5) year period. For the first (1st) year, which initiates on October 1, 2017, up to Two Hundred Twenty-five Thousand Dollars ($225,000) in tax credits shall be authorized. For years two (2), three (3), and four (4), which initiate on October 1, 2018, October 1, 2019, and October 1, 2020, respectively, no more than Seven Hundred Fifty Thousand Dollars ($750,000) in tax credits shall be authorized for each year of the program. For the fifth (5th) and final year, which initiates on October 1, 2021, no more than Five Hundred Twenty-five Thousand Dollars ($525,000) in tax credits shall be authorized. (b) If, at the expiration of the five (5) year period authorized pursuant to this Article, there are still unclaimed authorized tax credits, I Liheslaturan Guåhan may, in its discretion, extend the eligible period until such time that all eligible tax credits are exhausted. (c) I Liheslaturan Guåhan may, in its discretion, extend the term and modify any part of the program based on future improvement plans and demand in this location. (d) Construction and professional services and equipment and materials shall be competitively procured. SOURCE: Added by P.L. 33-191:2 (Dec. 13, 2016). Subsection (a) and (b) amended by P.L. 34-010: 2 (June 7, 2017). § 77706. GEDA Report. GEDA shall submit a report to I Liheslaturan Guåhan detailing the impact of the program on the business privilege taxes, use excise taxes, and economic activities on Guam. GEDA shall also include in its report its monitoring efforts and any other information related to the program. The report shall be transmitted to I Liheslaturan Guåhan on an annual basis until the tax credit caps pursuant to §§ 77703 and 77705 of this Article are exhausted. § 77707. Rules and Regulations. 18 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY The Guam Economic Development Authority shall implement and monitor the tax credit program authorized pursuant to this Article based on rules and regulations already adopted by GEDA for previous tax credit programs. § 77708. Approval of Contributions. GEDA or its designee shall be responsible for approving the contributions made towards the development, construction, financing, maintenance, rehabilitation, and improvement of the Harmon Industrial Park roadway project as identified in this Article. § 77709. Fines and Penalties. (a) To the extent that a company providing materials and services for the project contained herein takes more tax benefits in terms of unpledged business privilege taxes or use excise taxes than the actual value of the materials or services contributed to the project authorized herein, that company shall be required to pay all interest and penalties applicable under Guam law and the Internal Revenue Code for failure to pay taxes, in addition to payment of the actual taxes due. (b) To the extent that any individual, officer, director, or other person having interest in a company providing materials or services for the project contained herein knowingly and willingly causes such company to take more tax benefits in terms of business privilege taxes than the actual value of the material or services contributed to the project, such individual shall be guilty of a felony in the third degree punishable by a fine of not less than Five Thousand Dollars ($5,000) or one (1) year in prison or both. 2017 NOTE: Subsection designations added pursuant to the authority of 1 GCA § 1606. § 77710. Architectural and Engineering Design. (a) Prior to the approval of any tax credits under §§ 77702 and 77704 of this Article, as well as the initiation of any rehabilitation or improvement projects identified in this Article, up to Three Hundred Thousand Dollars ($300,000) shall be expended for an Architectural and Engineering Design for the Harmon Industrial Park Roadway project identified in this Article. This design must identify all the projects, including the total costs that would qualify under the tax credits of this Act. The design must be completed no later than May 1, 2018. 19 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY (b) Upon completion of the Architectural and Engineering Design, I Liheslaturan Guåhan may authorize the initiation of the rehabilitation and improvement of the Harmon Industrial Park roadway, along with the approval of the remaining credits under §§ 77702 and 77704 of this Article. (c) Any costs associated with the Architectural and Engineering Design, with a maximum amount of Three Hundred Thousand Dollars ($300,000), shall qualify for the credits identified under §§ 77702 and 77704 of this Article, and shall be subject to the cap of the credits identified in §§ 77703 and 77705 of this Chapter. (d) The Architectural and Engineering Design that is approved and incorporated by I Liheslaturan Guåhan shall be the framework for the project identified in this Article. to the extent appropriate, of (e) The Department of Public Works shall have regulatory the rehabilitation and oversight, improvement of the Harmon Industrial Park roadway envisaged by this Act, to include, but not be limited to, the Architectural and Engineering Design described in this Section. SOURCE: Added by P.L. 33-191:2 (Dec. 13, 2016). Subsection (a) amended by P.L. 34-010: 3 (June 7, 2017). ---------- ARTICLE 8 GUAM MULTI-PURPOSE COMMUNITY STADIUM COMPLEX COMMISSION SOURCE: Added by P.L. 33-229 (Jan. 9, 2017) as Article 7. Added as Article 8 and renumbered by Compiler pursuant to authority of 1 GCA § 1606. Legislative Statement. Creation and Membership. Compensation of Commission Members. Administrative Support for the Commission. Adoption of Rules. § 77801. § 77802. § 77803. § 77804. § 77805. § 77806. Meetings. § 77807. General Powers and Responsibilities of the Commission. 20 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY § 77808. § 77809. § 77810. Development of the Guam Multi-Purpose Community Stadium Complex Plan. Reporting. Authorization for the Deappropriation of the Office of Senator Mary Torres’ FY 2016 Lapsed Funds for Reappropriation. § 77801. Legislative Statement. (a) I Liheslaturan Guåhan finds that the island of Guam is in need of a Multi-Purpose Community Stadium Complex. The purpose of such a facility is to build the island’s capacity to draw tourists, as well as to provide adequate and appropriate permanent space for large scale community events. It is expected that events marketed to tourists and the community will overlap and complement each other. international and (b) This Multi-Purpose Community Stadium Complex would ideally be a permanent structure with indoor and outdoor space sufficient to provide for local sporting events; music and recreational events; fairs and community gatherings; and conferences and other events. It is necessary to appoint a Commission to spearhead an investigation and limitations, and recommendations on the development of such a facility. This Commission must have the mandate to inquire into issues, including, but not limited to, the venue parameters required to support long-term community and tourism goals, financing options, location, and the long- term operations and maintenance cost of such a facility. findings, constraints, report (c) It is, therefore, the intent of I Liheslaturan Guåhan to create this Commission with the intent to use its findings and recommendations in the eventual development and construction of a facility that will increase economic activity and the quality of life of the people of Guam. 2017 NOTE: Subsection designations added pursuant to the authority of 1 GCA § 1606. § 77802. Creation and Membership. The Multi-Purpose Community Stadium Complex Commission (Commission) is hereby created, and shall consist of seven (7) members appointed by I Maga’låhi, and who are subject to confirmation by I Liheslaturan Guåhan. 21 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY (a) Commission members shall serve for a term of eighteen (18) months. (b) The following seven (7) individuals shall serve as appointed members of the Commission: (1) two (2) members with a background in finance; (2) one (1) member of the general public; (3) one (1) member with a background in sports; (4) one (1) member with an architecture and design background; (5) one (1) member with a civil engineering or structural engineering background; and (6) one (1) member with a background in the visitor/tourism industry. (c) The following five (5) individuals, or their designees, shall serve as ex-officio members of the Commission: (1) the Director of the Department of Revenue and Taxation; (2) the Director of the Department of Parks and Recreation; (3) the General Manager of the Guam Visitors Bureau; (4) the Legislative Chairperson of the tourism committee or his or her designee, who is himself or herself also a member of I Liheslaturan Guåhan; and (5) the Administrator of Development Authority (GEDA). the Guam Economic (d) If the position of a member is vacated, I Maga’låhi shall appoint a qualified person to replace the member for the remainder of the unexpired term. (e) Five (5) appointed members of the Commission shall constitute a quorum for the exercise of the authority conferred upon the Commission, and a concurrence of at least five (5) of the appointed members is necessary to render a choice or a decision by 22 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY the Commission. The attendance of ex-officio members shall not be used to determine whether a quorum is present. (f) A Chairperson shall be elected from among the appointed members and shall serve in such capacity for a term of eighteen (18) months. § 77803. Compensation of Commission Members. (a) Appointed members of the Commission, if authorized by the Chairman, are entitled to receive a stipend of not more than Fifty Dollars ($50.00) for each meeting of the Commission, which shall not extend to ex-officio members. (b) While engaged in the business of the Commission, each member of the Commission, upon the authorization of the Chairman, is entitled to receive the per diem allowance and travel expenses provided by the Government Travel Law in Chapter 23 of Title 5, Guam Code Annotated. § 77804. Administrative Support for the Commission. (a) The Commission shall be established within GEDA for administrative purposes. The Administrator of GEDA shall ensure that the administrative provisions contained in this Article are properly adhered to; and shall further ensure that GEDA provides all the necessary administrative and clerical support and anything else deemed necessary for the efficient operation of the Commission. (b) The Chairperson of the Commission, in cooperation with the GEDA Administrator, may request for budgetary support from I Liheslaturan Guåhan in the GEDA annual budget submission, which shall be so identified. (c) Nothing shall require that GEDA funds be utilized to cover any costs that are the direct result of the Commission carrying out its defined duties and responsibilities pursuant to this Article. § 77805. Adoption of Rules. The Commission may adopt rules as necessary for its own procedures in accordance with the Administrative Adjudication Law. § 77806. Meetings. 23 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY The Commission shall meet as often as it deems appropriate and necessary to accomplish its powers and duties. (a) The first meeting of the Commission shall be held no later than thirty (30) days after at least five (5) appointed members of the Commission have been duly confirmed by I Liheslaturan Guåhan. (b) The Commission shall meet no less than once in each quarter of the calendar year. (c) The Commission may meet at other times at the call of the Chairperson, or as provided by the rules of the Commission. (d) All meetings of the Commission shall be subject to the Open Government Law found in Chapter 8 of Title 5, Guam Code Annotated. § 77807. General Powers and Responsibilities of the Commission. The Commission shall: (a) oversee the development of plans relating to a Multi- Purpose Community Stadium Complex; (b) identify the preferable locations for the facility; (c) identify possible funding sources for the facility; (d) work with all pertinent stakeholders necessary to the creation of this plan; (e) obtain a feasibility study with regards to the building, maintenance, and economic impact of a Multi-Purpose Community Stadium Complex; (f) be authorized, at its discretion and subject to availability of funds, to issue Requests for Proposals and Requests for Information via the Government Procurement Law, as necessary to complete the plan; and (g) meet all the reporting requirements as outlined in this Article. § 77808. Development of the Guam Multi-Purpose Community Stadium Complex Plan. 24 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY The Commission shall develop a Guam Multi-Purpose Community Stadium Complex Plan, addressing, but not limited to, the plan, design, location, cost, and long-term maintenance funding plan for a Multi- Purpose Community Stadium Complex; and, conduct an overall feasibility study regarding the building, maintenance, and short and long- term economic impacts of a Multi-Purpose Community Stadium Complex. § 77809. Reporting. (a) The Commission shall file quarterly reports with I Liheslaturan Guåhan detailing the progress of the development of the plan. (b) The Commission shall file a complete and detailed written report quarterly with I Maga’låhen Guåhan and the Speaker of I Liheslaturan Guåhan, in the form and within the time provided by the General Appropriations Act, accounting for all funds received and disbursed by the Commission during the preceding fiscal year. (c) No later than eighteen (18) months after its first duly convened meeting, the Commission shall prepare and file with I Liheslaturan Guåhan its final “Guam Multi-Purpose Community Stadium Complex Plan” mandated in this Article to study, investigate, and develop a multi- purpose facility complex on Guam. The final deliverable report shall include a conceptual drawing and model(s), recommended funding sources, and maintenance plans. § 77810. Authorization for the Deappropriation of the Office of Senator Mary Torres’ FY 2016 Lapsed Funds for Reappropriation. (a) The FY 2016 lapsed funds of the Office of Senator Mary Torres of I Liheslaturan Guåhan in an amount not to exceed Seventy-five Thousand Dollars and reappropriated to the Guam Economic Development Authority (GEDA) to fund the Multi-Purpose Community Stadium Complex Commission to carry out its powers and responsibilities as authorized in § 77807 of this Article. are hereby deappropriated ($75,000) (b) Funds deappropriated and reappropriated pursuant to this Section shall be allocated to GEDA within ninety (90) days of the enactment of this Article. 25 COL9222017 12 GCA AUTONOMOUS AGENCIES CH. 77 SPECIAL PROJECTS AND ACTIVITIES OF THE GUAM ECONOMIC DEVELOPMENT AUTHORITY (c) No portion of the appropriations in this Section shall be used for any purpose other than that specifically authorized in §§ 77803 and 77807 of this Article. ---------- 26 COL9222017