Chapter 988 Oregon Laws 2001

 

AN ACT

 

SB 5533

 

Relating to lottery funds; limiting expenditures; and declaring an emergency.

 

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

 

          SECTION 1. Effective July 1, 2001, and thereafter during the 2001-2003 biennium, all lottery revenues available to benefit the public purposes specified in section 4, Article XV, Oregon Constitution, that are in excess of distributions or allocations required by law shall be maintained in the Administrative Services Economic Development Fund.

 

          SECTION 2. All moneys in the Administrative Services Economic Development Fund as of July 1, 2001, and thereafter shall be reserved to meet the commitments of this 2001 Act.

 

          SECTION 3. The allocation of the Administrative Services Economic Development Fund made by this 2001 Act shall supersede, replace and be in lieu of any allocation of such funds in prior years.

 

ALLOCATIONS

 

          SECTION 4. There is allocated, from the Administrative Services Economic Development Fund to the Economic and Community Development Department, the following amounts for the following purposes:

 

           (1)     Administration of department

                    and community development

                    programs............................... $   16,772,892

           (2)     Oregon Community

                    Development Fund............... $   42,006,720

           (3)     Oregon Film and

                    Video Office.......................... $        972,508

           (4)     Oregon Tourism

                    Commission.......................... $     6,406,994

           (5)     Payment on infrastructure/

                    drinking water bonds.......... $   19,380,778

 

 

          SECTION 5. There is allocated, from the Administrative Services Economic Development Fund, to the Department of Education, for the State School Fund, the amount of $288,417,086.

 

          SECTION 6. There is allocated, from the Administrative Services Economic Development Fund, to the Department of Transportation, the following amount for the following purpose:

 

           For the revenues required to

           pay the Westside lottery bonds

           and any bonds issued to refund

           the Westside lottery bonds, to

           fund reserves for any of those

           bonds and to pay related costs

           of the Department of

           Transportation.............................. $   19,994,850

 

 

          SECTION 7. (1) The Legislative Assembly finds that the emotional and behavioral problems related to gambling may impose additional costs on state government and on the state economy, such as additional mental health expenditures, increased law enforcement costs and lost economic output. The use of a portion of the net proceeds from lottery games to pay the costs of preventing and treating emotional and behavioral problems related to gambling promotes the creation of jobs and this state's economic development by offsetting and treating the negative economic consequences of such behavior.

          (2) In each fiscal quarter, beginning July 1, 2001, there is allocated from the Administrative Services Economic Development Fund to the Problem Gaming Treatment Fund, an amount equal to one percent of the moneys transferred from the State Lottery Fund to the Administrative Services Economic Development Fund during that fiscal quarter.

          (3) There is allocated, from the Problem Gambling Treatment Fund, to the Department of Human Services, for distribution to counties for treatment of gambling addiction, the amount of $6,613,846.

 

          SECTION 8. There is allocated, from the Administrative Services Economic Development Fund, to the Oregon State Fair, for the support of Oregon State Fair facilities bonds, the amount of $3,170,828.

 

          SECTION 9. There is allocated, from the Administrative Services Economic Development Fund, to the Department of Education, for the Lottery Bond Fund for the purpose of paying, when due, the principal, interest and premium, if any, on outstanding lottery bonds, the amount of $42,400,000.

 

          SECTION 10. There is allocated to the Lottery Bond Fund for the biennium beginning July 1, 2001, out of the Oregon Education Fund, the amount of $8,697,888 plus 100 percent of the interest earnings on the Education Endowment Fund transferred to the Oregon Education Fund during the biennium beginning July 1, 2001, for the purpose of cash flow and payment by the Department of Education, when due, of the principal, interest and premium, if any, on outstanding education lottery bonds.

 

          SECTION 11. There is allocated from the Administrative Services Economic Development Fund, to the Housing and Community Services Department, for the support of lottery bonds, the amount of $2,492,073.

 

          SECTION 12. There is allocated from the Administrative Services Economic Development Fund to the Department of Environmental Quality, for the support of lottery bonds, the amount of $305,510.

 

          SECTION 13. There is allocated, from the Administrative Services Economic Development Fund, to the Department of Transportation, the amount of $18,654, for the biennium beginning July 1, 2001, for the purpose of paying debt service costs of lottery bonds issued to finance the South Metro Commuter Rail Project.

 

          SECTION 14. There is allocated, from the Administrative Services Economic Development Fund, to the Department of Transportation, the amount of $186,541, for the biennium beginning July 1, 2001, for the purpose of paying debt service costs of lottery bonds issued to finance short line railroad infrastructure assistance.

 

          SECTION 15. Notwithstanding any other law limiting expenditures, the amount of $51,992 is established for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses by the Department of Transportation from lottery bond proceeds for the issuance costs of lottery bonds issued during the biennium beginning July 1, 2001, to finance short line railroad infrastructure assistance.

 

          SECTION 16. Notwithstanding any other law, the limitation on expenditures established by section 2, chapter 128, Oregon Laws 2001 (Enrolled House Bill 5017), for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses from lottery moneys allocated from the Administrative Services Economic Development Fund to the Oregon State Fair and Exposition Center for debt service on lottery bonds for Oregon State Fair facilities bonds is increased by $926,616.

 

          SECTION 17. Notwithstanding any other law limiting expenditures, the amount of $212,800 is established for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses by the Oregon State Fair and Exposition Center from lottery bond proceeds for the issuance costs of lottery bonds issued during the biennium beginning July 1, 2001, to finance Oregon State Fair facilities improvements.

 

          SECTION 18. There is allocated, from the Administrative Services Economic Development Fund, to the State Department of Agriculture, the amount of $3,100,000, for the biennium beginning July 1, 2001, for the purpose of supporting county fairs in this state. Funds allocated under this section shall be deposited in the County Fair Account established by ORS 565.445.

 

          NOTE: The Governor line-item vetoed section 18. (See section 15a, Article V, Oregon Constitution.)

 

          SECTION 19. Notwithstanding any other law, the amount of $3,100,000 is established for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses from moneys allocated from the Administrative Services Economic Development Fund to the State Department of Agriculture for deposit in the County Fair Account established by ORS 565.445 to support county fairs.

 

          SECTION 20. There is allocated from the Administrative Services Economic Development Fund to the Oregon Department of Administrative Services the amount of $534,003 for the biennium beginning July 1, 2001, for the purpose of paying debt service costs of lottery bonds issued to finance equipment modernization for public broadcasting in Oregon.

 

          SECTION 21. Notwithstanding any other law, the amount of $534,003 is established for the biennium beginning July 1, 2001, as the maximum limit for the payment of expenses from the Administrative Services Economic Development Fund to the Oregon Department of Administrative Services for the purpose of paying debt service costs of lottery bonds issued to finance equipment modernization for public broadcasting in Oregon.

 

          SECTION 22. Notwithstanding any other law limiting expenditures, the amount of $198,954 is established for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses by the Oregon Department of Administrative Services from the Public Broadcasting in Oregon Lottery Project Fund established by chapter 942, Oregon Laws 2001 (Enrolled House Bill 2275), for the issuance costs of lottery bonds issued during the biennium beginning July 1, 2001, to finance equipment modernization for public broadcasting in Oregon.

 

          SECTION 23. During the biennium beginning July 1, 2001, the Oregon Department of Administrative Services shall transfer to Oregon Public Broadcasting Corporation $7,000,000 of the proceeds of lottery bonds issued to finance modernization of equipment for public broadcasting in Oregon from the Public Broadcasting in Oregon Lottery Project Fund.

 

          SECTION 24. During the biennium beginning July 1, 2001, the Oregon Department of Administrative Services shall transfer to Southern Oregon Public Television Corporation $1,000,000 of the proceeds of lottery bonds issued to finance modernization of equipment for public broadcasting in Oregon from the Public Broadcasting in Oregon Lottery Project Fund.

 

          SECTION 25. Notwithstanding any other law, the amount of $7,000,000 is established for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts, but excluding lottery funds and other federal funds, collected or received by Oregon Public Broadcasting Corporation.

 

          SECTION 26. Notwithstanding any other law, the amount of $1,000,000 is established for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts, but excluding lottery funds and other federal funds, collected or received by the Oregon Department of Administrative Services for transfer to Southern Oregon Public Television Corporation.

 

          SECTION 27. There is allocated to the Department of Higher Education from the Administrative Services Economic Development Fund the amount of $838,570, for the biennium beginning July 1, 2001, for debt service costs of outstanding lottery bonds issued to finance facilities construction.

 

          SECTION 28. Notwithstanding any other law, the limitation on expenditures established by section 2, chapter 771, Oregon Laws 2001 (Enrolled Senate Bill 5510), is adjusted as follows:

 

           (1)     Administration of department

                    and community development

                    programs (program

                    services)................................. $  +1,000,000

           (2)     Oregon Community

                     Development Program........ $  +3,597,343

 

 

          SECTION 29. Notwithstanding any other law, the limitation on expenditures established by section 3, chapter 771, Oregon Laws 2001 (Enrolled Senate Bill 5510), is adjusted as follows:

 

           (1)     Administration of department

                    and community development

                    programs (program

                    services)................................. $   -1,000,000

           (2)     Oregon Community

                     Development Program........ $  +9,621,960

           (3)     Pass-through (debt service

                    on lottery bonds).................. $   -8,576,505

 

 

          SECTION 30. Notwithstanding any other law, the limitation on expenditures established by section 2, chapter 846, Oregon Laws 2001 (Enrolled House Bill 5526), for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses from lottery moneys allocated from the Administrative Services Economic Development Fund to the Housing and Community Services Department for lottery bonds is decreased by $163,948.

 

DISAPPROPRIATION

 

          SECTION 31. On July 1, 2001, the allocation made for the 1993-1995 biennium from the Administrative Services Economic Development Fund by section 7, chapter 537, Oregon Laws 1993, as amended by section 133b, chapter 765, Oregon Laws 1993, to the Department of Human Services for Type B hospitals, is reduced by $714,314 and such amount is transferred to the Administrative Services Economic Development Fund.

 

ADJUSTMENTS

 

          SECTION 32. (1) The Oregon Department of Administrative Services shall establish by rule a process for allocating available moneys in the Administrative Services Economic Development Fund on a quarterly basis to fulfill the biennial allocations made in this 2001 Act. All quarterly allocations shall be set by the Oregon Department of Administrative Services.

          (2) If, in any quarter, the moneys transferred from the State Lottery Fund to the Administrative Services Economic Development Fund are insufficient to pay for the quarterly allocations established under this 2001 Act, the Oregon Department of Administrative Services:

          (a) Shall satisfy the debt service obligations for Westside Light Rail in the amount of $19,994,850 prior to making any other allocations in this 2001 Act.

          (b) Subject to paragraph (a) of this subsection, prior to making any other allocations in this 2001 Act, shall satisfy the debt services obligations for the following amounts and the following purposes:

          (A) Oregon State Fair and Exposition Center, $3,170,828.

          (B) Economic and Community Development Department, $19,380,778.

          (C) Department of Education, $42,400,000.

          (D) Department of Environmental Quality, $305,510.

          (E) Housing and Community Services Department, $2,492,073.

          (F) Oregon Department of Administrative Services, $534,003.

          (G) Oregon University System, $838,570.

          (H) Department of Transportation Short Rail, $186,541.

          (I) Department of Transportation Commuter Rail, $18,654.

          (3) After the debt service obligations described in subsection (2) of this section are satisfied, if the remaining moneys transferred from the State Lottery Fund to the Administrative Services Economic Development Fund are insufficient to pay for the quarterly allocations established under this 2001 Act, these allocations shall be reduced proportionately in sufficient amounts to accommodate the revenue shortfall.

 

          SECTION 33. The unit captions used in this 2001 Act are provided only for the convenience of the reader and do not become part of the statutory law of this state or express any legislative intent in the enactment of this 2001 Act.

 

          SECTION 34. Notwithstanding any other law, all sections of this 2001 Act are subject to Oregon Department of Administrative Services rules related to allotting, controlling, and encumbering funds.

 

          SECTION 35. This 2001 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2001 Act takes effect July 1, 2001.

 

Approved by the Governor August 17, 2001

Section 18 vetoed by the Governor

 

Filed in the office of Secretary of State August 17, 2001

 

Effective date August 17, 2001

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