71st OREGON LEGISLATIVE ASSEMBLY--2001 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 1663
A-Engrossed
House Bill 2275
Ordered by the House July 4
Including House Amendments dated July 4
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor John A. Kitzhaber,
M.D., for Oregon Department of Administrative Services)
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.
Increases aggregate amount of lottery bonds that may be issued.
Authorizes issuance of lottery bonds.
Declares emergency, effective July 1, 2001.
A BILL FOR AN ACT
Relating to lottery bonds; creating new provisions; amending ORS
285B.551, 565.103, 777.279, 777.282, 777.284, 777.289 and
section 8, chapter 702, Oregon Laws 1999; appropriating money;
and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 285B.551 is amended to read:
285B.551. (1) Pursuant to ORS 286.560 to 286.580 { - and
348.716 - } , lottery bonds may be issued:
(a) To provide financial and other assistance, including but
not limited to loans and grants, to municipalities, ports and
other persons and entities in accordance with the laws governing
use of moneys in the Special Public Works Fund created by ORS
285B.455, the Water Fund created by ORS 285B.563, the Safe
Drinking Water Revolving Loan Fund created by ORS 285A.213, the
Oregon Port Revolving Fund created by ORS 285A.708, the
Brownfields Redevelopment Loan Fund created by ORS 285A.188 and
the Marine Navigation Improvement Fund created by ORS 777.267.
(b) To fund Oregon's share of the costs of the Columbia River
channel deepening project.
{ + (c) To fund Oregon's share of the costs of studies and
ecosystem restoration projects in the lower Columbia River
estuary designed to improve habitat for listed endangered or
threatened species of Columbia River anadromous salmonids. + }
(2) The use of lottery bond proceeds is authorized based on the
following findings:
(a) The financial and other assistance to municipalities, ports
and other persons and entities will assist in the construction,
improvement and expansion of infrastructure, community and port
facilities and other facilities that comprise the physical
foundation for industrial and commercial activity and provide the
basic framework for continued and expanded economic opportunities
and quality communities throughout Oregon.
(b) The Columbia River channel deepening project is necessary
to allow newer, larger steamships access to Oregon and Washington
deep draft ports. A deeper shipping channel will allow the
Columbia River to continue as a world leader in agricultural
exports and as a key trade corridor for farms and businesses
throughout Oregon and the region.
(c) Such financial and other assistance to municipalities,
ports and other persons and entities and the deepening of the
Columbia River channel will therefore promote economic
development within this state, and thus the use of net proceeds
derived from the operation of the Oregon State Lottery to pay
debt service on lottery bonds issued under this section to
provide such financial and other assistance to municipalities,
ports and other persons and entities and to pay a portion of the
costs of deepening the Columbia River channel is an authorized
use of state lottery funds under section 4, Article XV of the
Oregon Constitution, and ORS 461.510.
{ + (d) The current lower Columbia River estuary habitat for
listed endangered or threatened species of Columbia River
anadromous salmonids could be improved through ecosystem
restoration projects. The use of the Oregon State Lottery to pay
debt service on lottery bonds issued under this section to pay
for studying how the estuary could be improved and to pay for
ecosystem restoration projects are authorized uses of state
lottery funds. + }
(3) The aggregate principal amount of lottery bonds issued
pursuant to subsection (1)(a) of this section for financial and
other assistance to municipalities, ports and other persons and
entities { - shall - } { + may + } not exceed the sum of
{ - $45 million - } { + $177 million + } and an additional
amount estimated by the State Treasurer to be necessary to pay
bond-related costs. The aggregate principal amount of lottery
bonds issued pursuant to subsection (1)(b) of this section for
the Columbia River channel deepening project
{ - shall - } { + may + } not exceed the sum of $17.7 million
and an additional amount estimated by the State Treasurer to be
necessary to pay bond-related costs. Lottery bonds issued
pursuant to this section shall be issued only at the request of
the Director of the Economic and Community Development
Department. The director
{ - shall - } { + may + } not request the issuance of lottery
bonds pursuant to subsection (1)(b) of this section until a final
environmental impact statement has been issued and a record of
decisions has been submitted to Congress by the United States
Army Corps of Engineers, Congress has authorized the Columbia
River channel deepening project, and the Washington sponsors'
shares of the costs of the Columbia River channel deepening
project have been committed.
(4) The net proceeds of lottery bonds issued pursuant to { +
subsection (1)(a) and (b) of + } this section shall be deposited
in the Economic Infrastructure Project Fund, which is hereby
established in the State Treasury separate and distinct from the
General Fund. All moneys in the Economic Infrastructure Project
Fund are continuously appropriated to the Economic and Community
Development Department for any purpose for which moneys in the
Special Public Works Fund created by ORS 285B.455 may be used,
any purpose for which moneys in the Water Fund created by ORS
285B.563 may be used, any purpose for which moneys in the Safe
Drinking Water Revolving Loan Fund created by ORS 285A.213 may be
used, any purpose for which moneys in the Oregon Port Revolving
Fund created by ORS 285A.708 may be used, any purpose for which
moneys in the Brownfields Redevelopment Loan Fund created by ORS
285A.188 may be used and any purpose for which moneys in the
Marine Navigation Improvement Fund created by ORS 777.267 may be
used. The Director of the Economic and Community Development
Department shall allocate the moneys deposited in the Economic
Infrastructure Project Fund for the purposes described in this
subsection in accordance with the policies developed by the
Oregon Economic and Community Development Commission in
accordance with ORS 285A.045. However, the director shall
transfer from the Economic Infrastructure Project Fund
{ - to - } { + and deposit into the Channel Deepening Account
of + } the Marine Navigation Improvement Fund the proceeds of any
lottery bonds sold to finance a portion of the costs of the
Columbia River channel deepening project. Upon determining the
relative allocation of moneys deposited in the Economic
Infrastructure Project Fund among the purposes described in this
subsection, the director shall transfer from the Economic
Infrastructure Project Fund, and deposit into each of the other
funds described in this subsection, the amounts so allocated.
Notwithstanding any other provision of law governing the funds
described in this subsection, the funds described in this
subsection may be credited with moneys transferred from the
Economic Infrastructure Project Fund by the director in
accordance with this subsection.
{ + (5) The aggregate principal amount of lottery bonds
issued pursuant to subsection (1)(c) of this section for the
costs of studies and ecosystem restoration projects in the lower
Columbia River estuary may not exceed the sum of $750,000 and an
additional amount estimated by the State Treasurer to be
necessary to pay bond-related costs. The net proceeds of lottery
bonds issued pursuant to subsection (1)(c) of this section shall
be deposited in the Oregon Community Development Fund created by
ORS 285A.227 and may be used only for the nonfederal cost share
portion of United States Army Corps of Engineers Columbia River
estuary projects authorized by Congress prior to the effective
date of this 2001 Act. The director may not request the issuance
of lottery bonds pursuant to subsection (1)(c) of this section
until Congress and Washington have authorized their respective
shares of the costs of the studies and ecosystem restoration
projects in the lower Columbia River estuary. + }
{ - (5) - } { + (6) + } The proceeds of lottery bonds
issued pursuant to this section { - shall - } { + may + } be
used only for the purposes set forth in { - subsection (4) - }
{ + subsections (4) and (5) + } of this section and for
bond-related costs.
SECTION 2. Section 8, chapter 702, Oregon Laws 1999, is amended
to read:
{ + Sec. 8. + } (1) The State Parks and Recreation Department
shall pay amounts required for debt service { + payable during
the 1999-2001 + } { + biennium + } on lottery bonds issued
under section 4 { - of this 1999 Act - } { + , chapter 702,
Oregon Laws 1999, + } from moneys allocated to the department
from the Administrative Services Economic Development Fund.
(2) The Economic { + and Community + } Development Department
shall pay amounts required for debt service on lottery bonds
issued during the 1999-2001 biennium under { - sections 1, 2, 3
and 6 of this 1999 Act - } { + ORS 285B.551 and sections 2 and
6, chapter 702, Oregon Laws 1999, + } from moneys allocated to
the department from the Administrative Services Economic
Development Fund.
{ + (3) The Economic and Community Development Department
shall pay amounts required for debt service payable during the
2001-2003 biennium and all remaining debt service on lottery
bonds issued during the 1999-2001 biennium and the 2001-2003
biennium under ORS 285B.551 and sections 2 and 6, chapter 702,
Oregon Laws 1999, from moneys allocated to the Economic and
Community Development Department from the Administrative Services
Economic Development Fund.
(4) The Housing and Community Services Department shall pay
amounts required for debt service payable during the 2001-2003
biennium and all remaining debt service on lottery bonds issued
during the 1999-2001 biennium and the 2001-2003 biennium under
ORS 458.720 from moneys allocated to the Housing and Community
Services Department from the Administrative Services Economic
Development Fund. + }
SECTION 3. { + (1) Pursuant to ORS 286.560 to 286.580, lottery
bonds may be issued to provide loans and other financial
assistance to public agencies, as defined in ORS 468.423, for
waste water pollution control, reduction or abatement as
described in ORS 468.429.
(2) The use of lottery bond proceeds is authorized upon the
following findings:
(a) Financial assistance for public agency waste water
pollution control, reduction or abatement activities will result
in additional wastewater treatment capacity in Oregon.
(b) Wastewater treatment capacity comprises a portion of the
physical foundation for industrial and commercial activities and
provides a portion of the basic framework for continued and
expanded economic opportunities throughout Oregon.
(c) Such financial assistance will therefore further economic
development within this state, making the use of net proceeds
derived from the operation of the Oregon State Lottery to pay
debt service on lottery bonds issued under this section to
provide financial assistance to public agencies for wastewater
pollution control, reduction or abatement activities an
authorized use of state lottery funds under section 4, Article XV
of the Oregon Constitution, and ORS 461.510.
(3) The aggregate principal amount of lottery bonds issued
pursuant to this section to provide financial assistance for
public agency waste water pollution control, reduction or
abatement activities shall not exceed $8 million and an
additional amount estimated by the State Treasurer to be
necessary to pay bond-related costs. Lottery bonds authorized by
this section shall be issued only at the request of the Director
of the Department of Environmental Quality.
(4) The net proceeds of lottery bonds issued pursuant to this
section shall be deposited in the Water Pollution Control
Revolving Fund established by ORS 468.427.
(5) The proceeds of lottery bonds issued pursuant to this
section shall be used only for the purposes set forth in
subsection (1) of this section and for bond-related costs. + }
SECTION 4. { + Sections 5 to 7 of this 2001 Act are added to
and made a part of ORS 777.277 to 777.289. + }
SECTION 5. { + Sections 5 to 7 of this 2001 Act and the
amendments to ORS 777.282 by section 9 of this 2001 Act are
intended to authorize the issuance of lottery bonds to provide
funds to replace, as needed, the unobligated net lottery revenues
otherwise required to be allocated and deposited during the
2001-2003 biennium under ORS 777.282 in the Channel Deepening
Account for the purposes of the channel deepening project,
thereby enabling the state to use those unobligated net lottery
revenues for other purposes. + }
SECTION 6. { + (1) Pursuant to ORS 286.560 to 286.580, lottery
bonds may be issued to pay a portion of the Oregon nonfederal
share of the costs of the channel deepening project.
(2) The use of lottery bond proceeds is authorized upon the
following findings:
(a) The Columbia River channel deepening project is necessary
to allow newer, larger steamships access to Oregon and Washington
deep draft ports. A deeper shipping channel will allow the
Columbia River to continue as a world leader in agricultural
exports and as a key trade corridor for farms and businesses
throughout Oregon and the region.
(b) Financial assistance to the Oregon sponsors of the channel
deepening project for the costs of the project will therefore
promote economic development within this state, making the use of
the net proceeds derived from the operation of the Oregon State
Lottery to pay debt service on lottery bonds issued under this
section to pay a portion of the costs of the channel deepening
project an authorized use of state lottery funds under section 4,
Article XV of the Oregon Constitution, and ORS 461.510.
(3) The aggregate principal amount of lottery bonds issued
pursuant to subsection (1) of this section to pay a portion of
the costs of the channel deepening project shall not exceed $6.7
million plus an additional amount estimated by the State
Treasurer to be necessary to pay bond-related costs. Lottery
bonds shall be issued under this section only at the request of
the Director of the Economic and Community Development
Department.
(4) The net proceeds of lottery bonds issued pursuant to this
section shall be deposited into the Channel Deepening Account and
paid to the Port of Portland in accordance with the grant
agreement.
(5) The net proceeds of the lottery bonds issued pursuant to
this section shall be used only for the purposes set forth in
this section and for bond-related costs. + }
SECTION 7. { + Lottery bonds authorized under section 6 of
this 2001 Act may be issued only after:
(1) A final environmental impact statement on the channel
deepening project has been issued and a record of decisions has
been submitted to the United States Congress by the United States
Army Corps of Engineers;
(2) The United States Congress has authorized the channel
deepening project;
(3) The shares of costs of the channel deepening project of the
Washington sponsors have been committed; and
(4) A project cooperation agreement with the appropriate
federal agencies has been signed. + }
SECTION 8. ORS 777.279 is amended to read:
777.279. (1) The Legislative Assembly finds that:
(a) The deep draft navigation channel in the lower Columbia
River is an asset of statewide importance that provides Oregon
shippers with competitive access to world markets and that ranks
as the second largest grain export system in the world with the
single largest wheat export port in the United States at
Portland;
(b) Waterborne commerce originating in Oregon in 1996 was
valued at $4.2 billion and, in order to sustain and increase the
jobs and other economic benefits associated with maritime trade,
the channel must be maintained at depths adequate to accommodate
new generations of deeper draft cargo vessels;
(c) If Congress authorizes deepening of the channel to
accommodate these larger vessels, it is in the best interests of
the State of Oregon to ensure that funds are available to pay the
Oregon share of channel deepening costs; and
(d) It is desirable to make a present commitment of lottery
revenues that are expected to be received in the 1999-2001
{ - and 2001-2003 biennia - } { + biennium + }. A clear and
prompt financial commitment from the State of Oregon will allow
the primary sponsor, in reliance on that commitment, to make
prompt commitments to federal agencies to pay the Oregon
nonfederal share. Prompt commitment by the primary sponsor will
enhance the likelihood that federal funds will be received for
the channel deepening project.
(2) The Legislative Assembly declares that the purpose of ORS
777.277 to 777.289 is to obligate the State of Oregon to pay the
amounts specified in ORS 777.282 from future lottery revenues.
The obligation of this state to pay the amounts specified in ORS
777.282 and in the grant agreement is limited to, and expressly
conditioned on, the availability of unobligated net lottery
proceeds and any other moneys lawfully credited to the Channel
Deepening Account of the Marine Navigation Improvement Fund.
Neither the faith and credit nor any of the taxing power of the
State of Oregon are pledged or otherwise committed by ORS
285B.500 to 285B.515 and 777.277 to 777.289 and section 9,
chapter 644, Oregon Laws 1997, and the commitments of the State
of Oregon under ORS 285B.500 to 285B.515 and 777.277 to 777.289
and section 9, chapter 644, Oregon Laws 1997, and the grant
agreement shall not constitute a debt or liability of the state
within the meaning of section 7, Article XI of the Oregon
Constitution.
(3) The Legislative Assembly further declares that it is the
current intent of the Legislative Assembly, if the amount
specified in ORS 777.282 is not sufficient to pay the Oregon
share of the total cost of the channel deepening project, to
provide future lottery revenues in an amount sufficient to pay
the Oregon nonfederal share of the total cost, when determined,
of the channel deepening project.
SECTION 9. ORS 777.282 is amended to read:
777.282. (1) The Channel Deepening Account is hereby created in
the Marine Navigation Improvement Fund.
(2) Commencing with the fifth fiscal quarter of the 1999-2001
biennium and continuing each quarter through the end of the
{ - 2001-2003 - } { + 1999-2001 + } biennium, the state shall
allocate and deposit in the Channel Deepening Account not less
than $833,334 each fiscal quarter { - until an amount has been
deposited into that account which is equal to the lesser of the
amount of Oregon nonfederal share as determined under the grant
agreement or $10 million - } . The deposits shall be made from
the first available unobligated net lottery proceeds.
(3) Any earnings on amounts in the Channel Deepening Account
shall be credited to the Channel Deepening Account. All moneys on
deposit from time to time in the Channel Deepening Account,
including investment earnings thereon, and all amounts required
by this section to be deposited in the Channel Deepening Account,
shall be allocated and are hereby appropriated continuously to
the Economic and Community Development Department, and shall be
transferred by the department to the primary sponsor pursuant to
and upon the terms and conditions set forth in the grant
agreement for costs of the channel deepening project.
SECTION 10. ORS 777.284 is amended to read:
777.284. (1) Within six months after July 25, 1997, the
Director of the Economic and Community Development Department
shall enter into a grant agreement with the primary sponsor that
commits the state to make the deposits specified in ORS 777.282
and commits the Economic and Community Development Department to
pay those deposits, plus earnings, to the primary sponsor as soon
as funds are available in the Channel Deepening Account and are
required by the primary sponsor for payment of the Oregon
nonfederal share. Notwithstanding ORS 777.267 or any other
provision of law, this commitment of this state and the
department shall be conditioned solely on federal authorization
of the channel deepening project under the federal Water
Resources Development Act or a similar federal Act, signing of a
project cooperation agreement with the appropriate federal
agencies and receipt by this state of unobligated net lottery
proceeds sufficient to make the deposits specified in ORS
777.282.
(2) The total amount paid to the primary sponsor pursuant to
the grant agreement shall not exceed the lesser of the amount of
the Oregon nonfederal share or $10 million plus any interest
earnings on the amounts in the Channel Deepening Account. The
grant agreement shall:
(a) Specify a method for determining the total amount of the
Oregon nonfederal share;
(b) Pledge the unobligated net lottery proceeds { + required
to be deposited in the channel deepening account pursuant to ORS
777.282 (2) + } to pay the amounts due to the primary sponsor
under the grant agreement;
(c) Specify the administrative procedures for making payments
to the primary sponsor;
(d) Provide for notification to the director if the primary
sponsor determines that it is unable to undertake the channel
deepening project;
(e) Allow assignment of the right to receive amounts payable
under the grant agreement to third parties;
(f) Obligate the primary sponsor to remit any unexpended grant
funds and any earnings thereon to the State of Oregon after the
channel deepening project is complete and all its costs have been
paid; and
(g) Contain such additional terms and conditions as the
director considers necessary or appropriate to ensure that the
moneys paid under the grant agreement are expended solely on the
channel deepening project.
(3) The grant agreement, when executed by the director and
accepted by the primary sponsor, shall be a valid, binding and
irrevocable contractual obligation of the State of Oregon in
accordance with its terms. However, amounts due under the grant
agreement shall be payable solely from the unobligated net
lottery proceeds required by ORS 777.282 to be deposited in the
Channel Deepening Account.
(4) The primary sponsor may pledge the unobligated net lottery
proceeds { - described in - } { + required to be deposited in
the channel deepening account pursuant to + }ORS 777.282 (2) and
assign its right to receive amounts due under the grant agreement
as security for any contractual obligation the primary sponsor
undertakes to pay or finance costs of the channel deepening
project. Any pledge or assignment authorized by this subsection
shall be valid and binding upon the primary sponsor, the
department, the State of Oregon and all other persons from the
date it is made. The unobligated net lottery proceeds so pledged
shall be immediately subject to the lien of the pledge without
physical delivery, filing or other act, and the lien of the
pledge shall be superior to all other claims and liens of any
kind whatsoever. Upon notice from the primary sponsor that it has
pledged the unobligated net lottery proceeds or assigned the
right to receive amounts due under the grant agreement, the
department shall fully cooperate with the primary sponsor and the
pledgee or assignee to give effect to the pledge or assignment,
including but not limited to acknowledging in writing to the
primary sponsor and the pledgee or assignee the existence and
validity of the pledge or assignment and agreeing that amounts
due under the grant agreement shall be paid to the pledgee or
assignee or into the custodial accounts established for the
benefit of the pledgee or assignee. However, a pledge or
assignment shall not require the State of Oregon to pay any
greater amounts than specified in the grant agreement.
(5) The grant agreement shall not contain provisions or be
construed or enforced in any manner that would cause the grant
agreement to constitute a debt or liability of the state that
violates section 7, Article XI of the Oregon Constitution.
SECTION 11. ORS 777.289 is amended to read:
777.289. (1) The deposit of unobligated net lottery proceeds to
the Channel Deepening Account { + pursuant to ORS 777.282
(2) + } shall cease if and when the Director of the Economic and
Community Development Department certifies in writing that
deposits are no longer required because:
(a) Sufficient funds are on hand in the Channel Deepening
Account to pay all amounts required to be paid under the grant
agreement;
(b) All amounts required to be paid under the grant agreement
have been paid; { - or - }
(c) The primary sponsor has notified the director pursuant to
the grant agreement that the primary sponsor is unable to
undertake the channel deepening project { - . - } { + ; or + }
{ + (d) All amounts required to be deposited in the Channel
Deepening Account pursuant to ORS 777.282 (2) have been
deposited. + }
(2) Upon receipt of the director's written certification
pursuant to subsection (1) of this section, the State Treasurer
shall thereafter credit any amounts remaining in the Channel
Deepening Account that are not required to pay amounts due under
the grant agreement and any lottery revenues that otherwise would
have been deposited in the Channel Deepening Account under
{ - this section - } { + ORS 777.282 (2) + } to the
Administrative Services Economic Development Fund. In addition,
any unexpended grant funds and earnings which are remitted to the
state under the grant agreement shall be credited to the
Administrative Services Economic Development Fund.
SECTION 12. ORS 565.103 is amended to read:
565.103. (1) Pursuant to ORS 286.560 to 286.580 { - and
348.716 - } , lottery bonds may be issued to fund projects for
the improvement, restoration, upgrading and preservation of
systems, facilities and equipment of the Oregon State Fair and
Exposition Center.
(2) The use of lottery bond proceeds is authorized based on the
following findings:
(a) The activities of the Oregon State Fair and Exposition
Center promote Oregon's agricultural industry and its products;
(b) The promotion of agricultural products expands markets,
which in turn creates jobs and stimulates economic development of
the industry; and
(c) The annual Oregon State Fair draws patrons from throughout
the region and creates jobs and substantial economic activity for
the Salem and Keizer areas.
(3) The aggregate principal amount of lottery bonds issued
pursuant to this section { - shall - } { + may + } not exceed
the sum of
{ - $10,167,661 - } { + $20,167,661 + } and an additional
amount estimated by the State Treasurer to be necessary to pay
bond-related costs. Lottery bonds issued pursuant to this
section shall be issued only at the request of the Director of
the Oregon State Fair and Exposition Center.
(4) The net proceeds of lottery bonds issued pursuant to this
section shall be deposited in the State Fair Capital Project
Fund, which is hereby established in the State Treasury separate
and distinct from the General Fund.
(5) The proceeds of lottery bonds issued pursuant to this
section shall be used only for the purposes set forth in
subsection (1) of this section and for bond-related costs.
SECTION 13. { + Sections 14 to 16 of this 2001 Act are added
to and made a part of ORS 367.010 to 367.060. + }
SECTION 14. { + (1) Pursuant to ORS 286.560 to 286.580,
lottery bonds may be issued to fund projects for the improvement,
restoration, upgrading and preservation of systems, facilities
and equipment of short line railroads.
(2) The use of lottery bond proceeds is authorized based on the
following findings:
(a) A well developed system of short line railroads is critical
to the economic growth and stability of Oregon;
(b) Traditional funding techniques such as grant programs are
unable to keep pace with infrastructure investment in Oregon due
to budgetary constraints on state government;
(c) Short line railroads serve the public good and would
benefit from the provision of public assistance;
(d) New investment capital can be attracted to infrastructure
projects that are capable of generating their own revenue stream
through dedicated funding sources;
(e) A state credit program can complement existing funding
sources by leveraging resources from nonstate sources;
(f) The state could mitigate the need to expand highways by
encouraging the development and sustainability of a statewide
system of short line railroads; and
(g) Newly established state credit programs are most
effectively delivered when they augment and utilize the resources
of previously established state credit programs.
(3) The aggregate principal amount of lottery bonds issued
pursuant to this section may not exceed the sum of $2 million and
an additional amount established by the State Treasurer to be
necessary to pay bond-related costs. Lottery bonds issued
pursuant to this section shall be issued only at the request of
the Director of Transportation.
(4) The net proceeds of lottery bonds issued pursuant to this
section shall be deposited in the Short Line Credit Premium
Account established by section 16 of this 2001 Act.
(5) The proceeds of lottery bonds issued pursuant to this
section may be used only for the purposes set forth in subsection
(1) of this section and for bond-related costs. + }
SECTION 15. { + As used in this section and section 16 of this
2001 Act:
(1) 'Credit premium' means the amount required to be paid to
the United States Secretary of Transportation before disbursement
of a federal loan under RRIFP.
(2) 'RRIFP' means the Railroad Rehabilitation and Improvement
Financing Program, 49 C.F.R. 260 et seq.
(3) 'Short line railroad' means a class II or class III
railroad as defined in 49 C.F.R. 1201. + }
SECTION 16. { + (1) The Short Line Credit Premium Account is
established as an account in the Oregon Transportation
Infrastructure Fund. Moneys in the Short Line Credit Premium
Account are continuously appropriated to the Department of
Transportation for the purpose of carrying out the provisions of
this section.
(2) A short line railroad may apply to the Department of
Transportation for infrastructure assistance in a manner
determined by the department by rule.
(3) In evaluating applications for infrastructure assistance
under this section, the department shall give priority to
projects that:
(a) Enhance public safety;
(b) Enhance the environment;
(c) Appear creditworthy, providing financially secure sources
of repayment to secure a federal credit instrument;
(d) Promote rural economic development;
(e) Reduce demand for expansion of highway capacity;
(f) Enable Oregon companies to be more competitive in regional,
national and international markets;
(g) Preserve or enhance rail or intermodal service to small
communities or rural areas; and
(h) Will be operated by a short line railroad with federal
credit assistance under the RRIFP.
(4) If a short line railroad receives infrastructure assistance
under this section for a project for which federal credit
assistance was received under RRIFP, and if all or part of the
credit premium is returned to the railroad by the federal
government, the railroad shall remit to the department the amount
of moneys returned to the railroad.
(5) All moneys remitted to the department under subsection (4)
of this section shall be deposited by the department into the
Short Line Credit Premium Account. + }
SECTION 17. { + The Department of Transportation shall report
to the Seventy-second Legislative Assembly on the status of the
short line railroad infrastructure assistance program developed
under section 16 of this 2001 Act. + }
SECTION 18. { + As used in sections 18 to 22 of this 2001 Act:
(1) 'Residual lottery revenues' means the unobligated net
lottery proceeds as defined in ORS 286.560 that remain in each
fiscal year after:
(a) Payment of debt service due in that fiscal year on all
bonds secured by the revenues of the lottery, and issued on
parity with lottery bonds outstanding on the effective date of
this 2001 Act; and
(b) Payment of costs related to those lottery bonds.
(2) 'South Metro Commuter Rail Project' or 'project ' means the
acquisition, construction, installation and procurement of all
components of an approximately 15-mile commuter rail line
connecting Wilsonville, Tualatin, Tigard and Beaverton, or
segments thereof. + }
SECTION 19. { + (1)(a) For the biennium beginning July 1,
2001, the State Treasurer is authorized to issue lottery bonds
pursuant to ORS 286.560 to 286.580 in the amount of $200,000 for
payment of the expenses of the Department of Transportation in
entering into and administering a grant agreement under section
21 (3) of this 2001 Act for the South Metro Commuter Rail
Project, plus an additional amount to be estimated by the State
Treasurer for payment of bond-related costs of the Oregon
Department of Administrative Services, the Department of
Transportation and the State Treasurer.
(b) For the biennium beginning July 1, 2001, the State
Treasurer is authorized to issue lottery bonds pursuant to ORS
286.560 to 286.580 in the amount of $20 million for payment of
the expenses of Washington County for the South Metro Commuter
Rail Project, plus an additional amount to be estimated by the
State Treasurer for payment of bond-related costs of the Oregon
Department of Administrative Services, the Department of
Transportation and the State Treasurer.
(c) For the biennium beginning July 1, 2003, the State
Treasurer is authorized to issue lottery bonds pursuant to ORS
286.560 to 286.580 in the amount of $200,000 for payment of the
expenses of the Department of Transportation in administering a
grant agreement under section 21 (3) of this 2001 Act for the
South Metro Commuter Rail Project, plus an additional amount to
be estimated by the State Treasurer for payment of bond-related
costs of the Oregon Department of Administrative Services, the
Department of Transportation and the State Treasurer.
(d) For the biennium beginning July 1, 2003, the State
Treasurer is authorized to issue lottery bonds pursuant to ORS
286.560 to 286.580 in the amount of $15 million for payment of
the expenses of Washington County for the South Metro Commuter
Rail Project, plus an additional amount to be estimated by the
State Treasurer for payment of bond-related costs of the Oregon
Department of Administrative Services, the Department of
Transportation and the State Treasurer.
(2) Lottery bonds issued under this section shall be issued at
the request of the Director of Transportation.
(3)(a) Net proceeds of lottery bonds issued under subsection
(1)(a) and (b) of this section, in the amount of $20.2 million,
shall be deposited in the South Metro Commuter Rail Project Fund
established by section 21 of this 2001 Act not later than June
30, 2003.
(b) Net proceeds of lottery bonds issued under subsection
(1)(c) and (d) of this section, in the amount of $15.2 million,
shall be deposited in the South Metro Commuter Rail Project Fund
established by section 21 of this 2001 Act not later than June
30, 2004.
(4) The bond-related costs of the Oregon Department of
Administrative Services, the Department of Transportation and the
State Treasurer for the lottery bonds authorized by this section
shall be paid from the gross proceeds of those lottery bonds and
from allocations for the purposes of ORS 286.576 (1)(c). + }
SECTION 20. { + The Legislative Assembly finds that:
(1) The development, acquisition, construction and operation of
the South Metro Commuter Rail Project will accomplish the purpose
of creating jobs and furthering economic development in Oregon
because:
(a) Construction and operation of the South Metro Commuter Rail
will reduce traffic congestion on existing highways and roads,
improving the attractiveness of the metropolitan area to new
businesses and supporting the operations and prosperity of
existing businesses;
(b) Construction and operation of the South Metro Commuter Rail
will reduce the cost and time required for family wage earners to
commute to work, permitting more of Oregon's work force to obtain
jobs for which they are qualified; and
(c) Authorization for the issuance of lottery bonds for the
South Metro Commuter Rail Project will increase the likelihood of
federal funding for the project and add new revenues that will
directly benefit Oregon's construction industry.
(2) The factors described in subsection (1) of this section
will encourage and promote economic development within the State
of Oregon, and issuance of lottery bonds to finance the South
Metro Commuter Rail Project is therefore an appropriate use of
state lottery funds under section 4, Article XV of the Oregon
Constitution, and ORS 461.510. + }
SECTION 21. { + (1) The South Metro Commuter Rail Project Fund
is established separate and distinct from the General Fund. The
moneys in the South Metro Commuter Rail Project Fund and the
interest earnings of the fund are continuously appropriated to
the Department of Transportation for the purpose described in
subsection (2) of this section. The fund shall consist of moneys
deposited in the fund under section 19 of this 2001 Act and may
include fees, moneys or other revenues available for payment of
expenses of the South Metro Commuter Rail Project, including
federal funds collected or received as reimbursement for expenses
of the project from the United States Department of
Transportation or the Federal Highway Administration under the
Transportation Equity Act for the 21st Century (P.L. 105-178), or
Miscellaneous Receipts.
(2) Subject to subsection (3) of this section, moneys in the
fund shall be available for immediate distribution to Washington
County to pay the expenses of the project.
(3)(a) The Director of Transportation shall enter into a grant
agreement by February 28, 2002, with Washington County that
requires the department to disburse, over the course of the
project, an aggregate amount of $35 million to Washington County
from the fund. Disbursements from the fund shall be made as soon
as deposits accrue in the fund and shall commence when:
(A) Moneys are available;
(B) Washington County has entered into one or more contracts
for final design, construction or acquisition of components of
the South Metro Commuter Rail Project and the contracts have an
aggregate value of at least $20 million; and
(C) The Director of Transportation determines that the
following conditions have occurred:
(i) Washington County has provided documentation that it will
have sufficient financing to complete the project; and
(ii) Washington County has agreed in the grant agreement
authorized by this section that the county will not request or
accept any state General Fund moneys for the project. Upon
completion of the project, if the aggregate expenditure of state
and local moneys is less than $60 million, Washington County
shall refund the difference to the fund established by this
section.
(b) Upon satisfaction of the conditions described in paragraph
(a) of this subsection, the Department of Transportation shall
disburse $20 million of the moneys in the fund to Washington
County in the biennium beginning July 1, 2001.
(c) When moneys are available in the fund and Washington County
certifies to the Department of Transportation that it has entered
into one or more contracts for final design, construction or
acquisition of components of the project that in the aggregate
represent at least 58 percent of the project's costs, the
department shall disburse $15 million of the moneys in the fund
to Washington County in the biennium beginning July 1, 2003.
(d)(A) Of the moneys deposited in the fund in the biennium
beginning July 1, 2001, the Department of Transportation may use
$200,000 to pay the department's expenses in entering into and
administering the grant agreement authorized by this section.
(B) Of the moneys deposited in the fund in the biennium
beginning July 1, 2003, the Department of Transportation may use
$200,000 to pay the department's expenses in entering into and
administering the grant agreement authorized by this subsection.
(4)(a) The state is not liable to the lenders, vendors or
contractors of Washington County for any action or omission under
sections 18 to 22 of this 2001 Act or the grant agreement
authorized by this section, except for a failure to allocate and
deposit to the fund amounts required by section 19 of this 2001
Act or to disburse from the fund to Washington County amounts
required by this section and the grant agreement authorized by
this section.
(b) The grant agreement must:
(A) Obligate the department to deposit the net proceeds of
lottery bonds described in section 19 of this 2001 Act or, if
necessary, the amounts described in section 22 of this 2001 Act
into the fund.
(B) Obligate Washington County to indemnify the state and its
agencies and departments to the fullest extent permitted by law
for any liability the state or its agencies and departments might
incur in connection with any borrowing by Washington County for
the project, except failure to allocate and deposit to the fund
amounts required by section 19 of this 2001 Act or amounts
described in section 22 of this 2001 Act or to disburse from the
fund to Washington County amounts required by this section and
the grant agreement authorized by this section.
(c) Washington County may assign and pledge its rights under
the grant agreement to lenders, vendors or contractors. The
Director of Transportation shall pledge the moneys available in
the fund for the project. + }
SECTION 22. { + If the state has not deposited an aggregate
amount of $35 million in the South Metro Commuter Rail Project
Fund by June 30, 2004, the state shall allocate to the Department
of Transportation for deposit in the South Metro Commuter Rail
Project Fund an amount equal to the difference between $35
million and the aggregate deposits to the fund as of June 30,
2004, from the first available residual lottery revenues. + }
SECTION 23. { + (1) Pursuant to ORS 286.560 to 286.580 and
348.716, lottery bonds may be issued to fund projects for the
construction of:
(a) A building for the study of the regional agricultural,
health and life sciences at Eastern Oregon University; and
(b) A library building at Southern Oregon University.
(2) The use of lottery bond proceeds is authorized based on the
following findings:
(a) The universities of the State System of Higher Education
promote the improved education of Oregon's students, especially
in the subjects of agricultural, health and life sciences;
(b) The promotion of educated employees for business and
industry, especially for those in the agricultural, health and
life sciences, expands markets, which in turn creates jobs and
stimulates economic development of the state's business and
industry; and
(c)(A) A building for the study of the regional agricultural,
health and life sciences at Eastern Oregon University will
attract faculty and students to the university and create jobs
and substantial economic activity for the La Grande area.
(B) A library building at Southern Oregon University will
attract faculty and students to the university and create jobs
and substantial economic activity for the Ashland area.
(3) The aggregate principal amount of lottery bonds issued
pursuant to this section may not exceed the sum of $14 million
and an additional amount estimated by the State Treasurer to be
necessary to pay bond-related costs. Lottery bonds issued
pursuant to this section shall be issued only at the request of
the Chancellor of the State Board of Higher Education.
(4)(a) Of the net proceeds of lottery bonds issued pursuant to
this section, $9 million shall be deposited in the Eastern Oregon
University Regional Agricultural, Health and Life Sciences
Building Account established in section 14, chapter ___ (Enrolled
Senate Bill 5525).
(b) Of the net proceeds of lottery bonds issued pursuant to
this section, $5 million shall be deposited in the Southern
Oregon University Library Account established in section 13,
chapter ___ (Enrolled Senate Bill 5525).
(5) The proceeds of lottery bonds issued pursuant to this
section may be used only for the purposes set forth in subsection
(1) of this section and for bond-related costs. + }
SECTION 24. { + (1) Pursuant to ORS 286.560 to 286.580,
lottery bonds may be issued to fund grants to the Oregon Public
Broadcasting Corporation and to the Southern Oregon Public
Television Corporation for the purpose of conversion to digital
broadcasting and related costs.
(2) The use of lottery bond proceeds is authorized based on the
following findings:
(a) The public broadcasting system in Oregon provides
programming designed and selected to assist in the education of
viewers in broad areas of knowledge, skill development, finance,
recreation, culture, government, history and the arts.
(b) The public broadcasting system in Oregon provides
instructional television to educators around the state.
Participants receive access to approximately 80 instructional
television series designed for kindergarten through 12th grade
students. Additional resources are available for educators,
including an Instructional Television Resource Guide.
(3) The aggregate principal amount of lottery bonds issued
pursuant to this section may not exceed the sum of $8 million and
an additional amount estimated by the State Treasurer to be
necessary to pay bond-related costs. The Southern Oregon Public
Television Corporation shall receive a grant of $1 million of the
grant funds authorized by this section. The Oregon Public
Broadcasting Corporation shall receive a grant of $7 million of
the grant funds authorized by this section. Lottery bonds issued
pursuant to this section shall be issued only at the request of
the Director of the Oregon Department of Administrative Services.
(4) The net proceeds of lottery bonds issued pursuant to this
section shall be deposited in the Public Broadcasting in Oregon
Lottery Project Fund, which is established in the State Treasury
separate and distinct from the General Fund.
(5) The proceeds of the lottery bonds issued pursuant to this
section shall be used only for the purposes set forth in
subsection (1) of this section and for bond-related costs. + }
SECTION 25. { + 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. + }
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