Chapter 633 Oregon Laws 2001

AN ACT

SB 63

Relating to disaster relief; creating new provisions; and amending ORS 285B.410, 285B.419 and 285B.455.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 285B.410 is amended to read:

285B.410. As used in ORS 285B.410 to 285B.479, unless the context requires otherwise:

(1) “Municipality” means a city, a county, a port incorporated under ORS 777.010 and 777.050, the Port of Portland created by ORS 778.010, a metropolitan service district organized under ORS chapter 268, a domestic water supply district organized under ORS chapter 264, a water authority or sanitary authority organized under ORS 450.600 to 450.989, a water improvement district organized under ORS chapter 552, a water control district organized under ORS chapter 553, a sanitary district organized under ORS 450.005 to 450.245, a county service district organized under ORS chapter 451 or a tribal council of an Indian tribe in this state.

(2) “Infrastructure project” means:

(a) A project for the construction of sewage treatment works, solid waste disposal sites, water supply works, roads, public transportation, railroad industrial spurs or sidings or other facilities that comprise the physical foundation for industrial and commercial activity. The costs of property acquisition directly related to the infrastructure project and acquisition of easements or rights of way necessary to accomplish construction of the infrastructure project are eligible for assistance under ORS 285B.410 to 285B.479. The costs of activities related to performing an environmental evaluation of a brownfield are eligible for assistance under ORS 285B.416 (2) and 285B.455 (5). Purchases of off-site property for project-related purposes such as wetland mitigation or other uses not directly related to the infrastructure are not eligible for assistance. As used in this paragraph, “brownfield” and “environmental evaluation” have the meanings given those terms respectively in ORS 285A.185 and 285A.188.

(b) A project, in consultation with the Department of Transportation and other affected agencies, for the acquisition, reconstruction or rehabilitation of an abandoned railroad line or railroad line that has been designated by the owner and operator thereof as subject to abandonment within a three-year period pursuant to federal law and regulations governing abandonment of common carrier railroad lines. The project may include operation or maintenance costs if the project also includes acquisition, reconstruction or rehabilitation.

(c) A safe drinking water project, in consultation with the Water Resources Department, the Health Division of the Department of Human Services or the Department of Land Conservation and Development, for improving a drinking water system for the purpose of achieving or maintaining compliance with applicable state or federal drinking water quality regulations.

(d) A project for the acquisition, construction or development of community facilities, including the acquisition of land, the construction, acquisition, renovation or reconstruction of buildings, structures and other real property and the acquisition or construction of related equipment and fixtures. “Community facilities” includes facilities that are owned by a municipality and are operated by either the municipality or a person under a management contract or operating agreement with the municipality.

(e) A project, as specified by rule of the Economic and Community Development Department, resulting from an emergency as defined in ORS 401.025.

(3) “Public transportation” includes public depots, public parking, public docks, public wharves, railroads and airport facilities.

(4) “Roads” includes:

(a) Ways described as streets, highways, throughways or alleys;

(b) Road related structures that are in the right of way such as tunnels, culverts or similar structures; and

(5) “Sewage treatment works” includes all facilities necessary for collecting, pumping, treating and disposing of sanitary or storm sewage.

(6) “Solid waste disposal site” has the meaning given to the term “disposal site” by ORS 459.005.

(7) “Water supply works” includes all facilities necessary for tapping natural sources of domestic and industrial water, treating and protecting the quality of the water and transmitting it to the point of sale to any public or private agency for domestic, municipal and industrial water supply service.

(8) “Urban infrastructure projects” includes all those projects located in whole or in part within the acknowledged Portland Metropolitan Area Regional Urban Growth Boundary, and the acknowledged urban growth boundaries of the cities of Eugene, Springfield, Salem, Keizer or Medford or projects that will principally benefit these areas. The Director of the Economic and Community Development Department is authorized to resolve situations left in question by this definition.

(9) “Nonurban infrastructure projects” includes all those projects which do not meet the definition of urban infrastructure projects.

SECTION 2. ORS 285B.419 is amended to read:

285B.419. (1) The Economic and Community Development Department shall adopt rules and policies for the administration of the Special Public Works Fund. Insofar as practicable, the department’s rules shall provide that infrastructure projects that meet the following criteria receive priority for financial assistance:

(a) Provide for the establishment or enlargement of economically viable industries, with reasonable long term growth prospects, including opportunities for innovative new industries or for continuance of existing basic industries.

(b) Result in a net benefit to the state in the long term and not require continuing state subsidies.

(d) Improve the conditions of the economically disadvantaged and increase the number of jobs that increase average incomes.

(e) Support the development of businesses owned by women and members of minority groups.

(f) Harness Oregon’s comparative advantage with emphasis on the growth and development of existing, in-state businesses, especially small businesses.

(g) Direct assistance to projects that assist businesses selling goods and services in markets for which national or international competition exists and prohibit assistance to infrastructure projects that primarily focus on relocating business or economic activity from one part of the state to another.

(h) Result in the economic revitalization of communities.

(i) Are funded and otherwise supported to the maximum extent possible by private resources.

(j) Result in business growth or expansion which would not occur in Oregon without an investment from the Special Public Works Fund.

(2)(a) The Economic and Community Development Department shall manage the Special Public Works Fund and any expenditures from its accounts and transfers between its accounts so that the fund value shall be equal to at least 50 percent of lottery revenues actually transferred to the fund plus interest on such amounts compounded annually at five percent. The fund value shall be determined by summing the cash reserves and the outstanding principal amount of loans to municipalities. Any principal amounts of loans forgiven shall be subtracted from the value of the fund. The value of the fund shall include moneys in the fund that are pledged to the repayment of state bonds.

(b) The department shall quarterly certify the value of the fund to the State Treasurer.

(c) If necessary to insure repayment of bonds issued under ORS 285B.410 to 285B.479, the Economic and Community Development Department is authorized to reduce the value of the fund to less than the limit provided in paragraph (a) of this subsection if the department:

(A) Finds that without such a reduction in fund value, bonds secured by the fund are likely to be in default; and

(B) Imposes a moratorium on grants until the requirements of paragraph (a) of this subsection are met.

(3)(a) Not more than 100 percent of the total cost of any infrastructure project shall be financed from the Special Public Works Fund.

(b) For purposes of a project described in ORS 285B.410 (2)(e), the total cost described in paragraph (a) of this subsection is the total local matching funds requirement for the federal disaster relief assistance committed to the project.

(4) The department may commit moneys in the Special Public Works Fund or reserve future income to the fund for disbursal in future years under ORS 285B.440 (4). The department shall commit or reserve moneys under this subsection only after:

(a) Allowing for contingencies;

(b) Finding that there will be sufficient unobligated net income to the fund to make such future payments. Such a finding shall be based on financial plans which are consistent with the financial requirements of subsections (2) and (4) of this section; and

(c) Providing in any contract for such commitment that the liability of the state to make such annual payments shall be contingent on the availability of moneys in the Special Public Works Fund.

(5) In assisting local governments with infrastructure projects, the department shall cooperate to the maximum extent possible with other state agencies financing infrastructure projects, including but not limited to the Department of Environmental Quality, the Water Resources Department and the Department of Transportation.

(6) The department shall notify the Housing and Community Services Department of any proposed Special Public Works Fund project with a related workforce increase at the time the department receives the completed application for the project.

SECTION 3. Section 4 of this 2001 Act is added to and made a part of ORS 285B.410 to 285B.479.

SECTION 4. (1) For the purposes of a project described in ORS 285B.410 (2)(e), the Economic and Community Development Department may lend or grant moneys in the Special Public Works Fund to provide local matching funds to a municipality for infrastructure projects to which available federal disaster relief assistance is committed.

(2) ORS 285B.413 (1) and (2), 285B.419 (1), 285B.434 (2), (3), (4), (5), (7) and (8), 285B.464 and 285B.467 (2) and (8) do not apply to the application of a municipality seeking local matching funds for a project eligible under ORS 285B.410 (2)(e).

SECTION 5. ORS 285B.455 is amended to read:

285B.455. (1) There is created the Special Public Works Fund, separate and distinct from the General Fund. All moneys credited to the Special Public Works Fund are appropriated continuously and shall be used for the purposes outlined in ORS 285B.410 to 285B.479. There shall be credited to the Special Public Works Fund, money appropriated to the fund by the Legislative Assembly, earnings on the fund, repayment of financial assistance and bond proceeds as authorized under ORS 285B.410 to 285B.479.

(2) Moneys in the Special Public Works Fund, with the approval of the State Treasurer, may be invested as provided by ORS 293.701 to 293.820 and the earnings from such investments shall be credited to the account in the Special Public Works Fund designated by the Economic and Community Development Department.

(3) The Economic and Community Development Department shall be the agency for the State of Oregon for the administration of the Special Public Works Fund.

(4) The department may establish such other accounts within the Special Public Works Fund for the payment of project costs, reserves, debt service payments, credit enhancement, administration and operation expenses or any other purpose necessary to carry out ORS 285B.410 to 285B.479.

(5) Out of moneys in the Special Public Works Fund, the department may:

(a) Make technical assistance grants and loans to municipalities of less than 5,000 residents. A technical assistance grant shall not exceed $10,000. A technical assistance loan shall not exceed $20,000. No more than $250,000 or one percent of the value of the fund, whichever is less, shall be expended on technical assistance grants and loans in any biennium.

(b) Make grants to municipalities to provide local matching funds for the purposes of a project described in ORS 285B.410 (2)(e) in an amount that does not exceed $2.5 million in any biennium.

Approved by the Governor June 27, 2001

Filed in the office of Secretary of State June 27, 2001

Effective date January 1, 2002

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