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 1714
 
                           A-Engrossed
 
                         House Bill 2923
                  Ordered by the House June 21
            Including House Amendments dated June 21
 
Sponsored by Representatives SIMMONS, WESTLUND, Senator L BEYER;
  Representatives BECK, BROWN, DEVLIN, GARDNER, KAFOURY, LEONARD,
  MINNIS, NOLAN, PATRIDGE, SHETTERLY, G SMITH, V WALKER,
  WILLIAMS, Senators ATKINSON, BROWN, BURDICK, CARTER, CASTILLO,
  CLARNO, CORCORAN, COURTNEY, DUNCAN, FERRIOLI, HANNON, HARTUNG,
  METSGER, MINNIS, SHIELDS (at the request of Joint Interim Task
  Force on Cultural Arts and former Representative Lynn
  Snodgrass)
 
 
                             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.
 
  Renames Cultural Trust Fund Investment Account as Trust for
Cultural Development Account. Creates Trust for Cultural
Development Board to oversee account. Directs office of the
Secretary of State to provide staff support to board. Specifies
distribution of funds for cultural development, community
cultural participation and core partner agencies.
  Creates tax credit for amounts contributed to Trust for
Cultural Development Account and cultural organizations.
  Directs Department of Transportation to establish cultural
  { - license - }   { + registration + } plate program for
issuance of special registration plate. Imposes surcharge. Uses
moneys collected for Trust for Cultural Development Account.
    { - Appropriates moneys from General Fund to department to
initiate program. - }
   { +  Directs Department of Corrections to work with Oregon
Department of Administrative Services and others to develop plan
for sale of between 349 and 400 acres of real property owned by
Department of Corrections and described in Master Plan for
Corrections Farm Property, Salem, Oregon. Specifies other actions
that must be taken by Department of Corrections and Oregon
Department of Administrative Services with respect to real
property described in Master Plan. Requires specified portion of
proceeds from sale of real property to be transferred to Trust
for Cultural Development Account.
  Specifies that proceeds from Space Age Industrial Park shall be
credited to Trust for Cultural Development Account. Provides that
under certain circumstances moneys from Trust for Cultural
Development Account are allocated to the Emergency Board for use
in Morrow County. + }
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to Trust for Cultural Development; creating new
  provisions; amending ORS 270.150, 273.384, 285A.216, 293.701,
  426.506 and 427.340; appropriating money; and prescribing an
  effective date.
  Whereas culture is the distillation of those things that
identify us as people, including our shared and individual sense
of heritage, history, place, creativity and art, traditions and
customs; and
  Whereas culture is an integral part of Oregon; and
  Whereas culture can be an alternative to destructive behavior
and a healing force; and
  Whereas children educated in arts and culture will contribute
to the creative workforce of the new economy; and
  Whereas a state with a vibrant arts and cultural life attracts
and retains educated people and progressive businesses; and
  Whereas the cultural assets in our communities include
theatres, performing arts centers and programs, historic
buildings, museums and their exhibits, public art, historic
trails, pioneer cemeteries, archeological sites, architecture,
Native American culture and traditions, libraries and parks; and
  Whereas these cultural assets are endangered; and
  Whereas it is the intention of the Legislative Assembly that
moneys received through the Trust for Cultural Development
Account may not be used to furnish, show, exhibit or display an
item that would otherwise be considered obscene and unseemly or
the furnishing, showing, exhibiting or displaying of which is
unlawful; and
  Whereas the Oregon Arts Commission, the Oregon Council for the
Humanities, the Oregon Heritage Commission, the Oregon Historical
Society and the State Historic Preservation Officer are important
to the preservation of these cultural assets; and
  Whereas it is the intention of the Legislative Assembly that
money received by these agencies through the Trust for Cultural
Development Account shall be in addition to money appropriated to
the agencies for 1999-2001 biennium; now, therefore,
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 285A.216 is amended to read:
  285A.216. (1) The   { - Cultural Trust Fund Investment
Account - }  { +  Trust for Cultural Development Account + } is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the   { - Cultural Trust Fund
Investment Account - }  { +  Trust for Cultural Development
Account + } shall be credited to the account. The primary purpose
of the account is to serve as a repository for both public and
private moneys designated to fund specific arts, heritage and
humanities programs.
  (2) All moneys in the   { - Cultural Trust Fund Investment
Account - }  { +  Trust for Cultural Development Account + } are
appropriated continuously to   { - be distributed by the Economic
and Community Development Department - }  { +  the Secretary of
State for the purposes of sections 3 to 16 of this 2001 Act + }.
  SECTION 2.  { + (1) The amendments to ORS 285A.216 by section 1
of this 2001 Act are intended to change the name of the 'Cultural
Trust Fund Investment Account' to the 'Trust for Cultural
Development Account. '
  (2) For the purpose of harmonizing and clarifying statute
sections published in Oregon Revised Statutes, the Legislative
Counsel may substitute for words designating the 'Cultural Trust
Fund Investment Account,' wherever they occur in Oregon Revised
Statutes, other words designating the 'Trust for Cultural
Development Account.' + }
  SECTION 3.  { + As used in sections 3 to 16 of this 2001 Act:
  (1) 'Community Cultural Participation Grant Program' means the
program created by section 11 of this 2001 Act.
 
  (2) 'Core partner agencies' means the Oregon Arts Commission,
the Oregon Council for the Humanities, the Oregon Heritage
Commission, the Oregon Historical Society and the State Historic
Preservation Officer.
  (3) 'Cultural Development Grant Program' means the program
created by section 10 of this 2001 Act.
  (4) 'Cultural organization' means an entity that is:
  (a) Exempt from federal income tax under section 501(c)(3) of
the Internal Revenue Code; and
  (b) Organized primarily for the purpose of producing, promoting
or presenting the arts, heritage, programs and humanities to the
public or organized primarily for identifying, documenting,
interpreting and preserving cultural resources.
  (5) 'Trust for Cultural Development Account' means the account
established by ORS 285A.216. + }
  SECTION 4.  { + (1) There is established a Trust for Cultural
Development Board consisting of seven members appointed by the
Governor. The membership of the board shall reflect the
geographical and cultural diversity of this state. Each member
shall have a background that demonstrates a commitment to
Oregon's culture. In addition to the members appointed by the
Governor, the Secretary of State shall be a member of the board
and shall be the chairperson of the board.
  (2) The Speaker of the House of Representatives and the
President of the Senate shall each appoint a member of the
Legislative Assembly who shall be a nonvoting advisory member of
the board.
  (3) The term of office of each appointed member is four years,
but a member serves at the pleasure of the appointing authority.
Before the expiration of the term of a member, the appointing
authority shall appoint a successor whose term begins on November
1 next following. A member is eligible for reappointment. If
there is a vacancy for any cause, the appointing authority shall
make an appointment to become immediately effective for the
unexpired term.
  (4) The appointment of board members by the Governor is subject
to confirmation by the Senate in the manner prescribed in ORS
171.562 and 171.565.
  (5) A member of the board is entitled to compensation and
expenses as provided in ORS 292.495. + }
  SECTION 5.  { + Notwithstanding the term of office specified by
section 4 of this 2001 Act, of the members first appointed to the
Trust for Cultural Development Board by the Governor:
  (1) Two shall serve for terms ending October 31, 2003.
  (2) Two shall serve for terms ending October 31, 2004.
  (3) Three shall serve for terms ending October 31, 2005. + }
  SECTION 6.  { + (1) A majority of the members of the Trust for
Cultural Development Board constitutes a quorum for the
transaction of business.
  (2) The board shall meet at least once every three months at a
place, day and hour determined by the chairperson. The board also
shall meet at other times and places specified by the call of the
chairperson or of a majority of the members of the board.
  (3) The chairperson shall invite representatives of the core
partner agencies to all meetings of the board. + }
  SECTION 7.  { + (1) The Trust for Cultural Development Board
shall oversee management of the Trust for Cultural Development
Account and shall provide direction to the office of the
Secretary of State for the coordination, administration and
evaluation of the Cultural Development Grant Program, the
Community Cultural Participation Grant Program and the use of
funds received by core partner agencies under section 14 of this
2001 Act.
  (2) In accordance with applicable provisions of ORS 183.310 to
183.550, the board may adopt rules necessary for the
administration of sections 3 to 16 of this 2001 Act. + }
  SECTION 8.  { + The office of the Secretary of State shall
provide staff support to the Trust for Cultural Development
Board. Under the direction of the board, this staff shall:
  (1) Coordinate grant management;
  (2) Provide Trust for Cultural Development Account management
and accounting;
  (3) Work with cultural agencies and their constituents to
communicate with and educate the public on the role culture plays
in the lives of citizens and communities; and
  (4) Evaluate the Cultural Development Grant Program, the
Community Cultural Participation Grant Program and the use of
funds received under section 13 of this 2001 Act by core partner
agencies. + }
  SECTION 9. { +  (1) Under the direction of the Trust for
Cultural Development Board, the office of the Secretary of State
shall disburse each fiscal year up to 42 percent of the amount in
the Trust for Cultural Development Account on July 1.
  (2) The office of the Secretary of State may use up to 7.5
percent of any amount disbursed from the account under subsection
(1) of this section for:
  (a) Supporting the operations of the account;
  (b) Facilitating technical assistance;
  (c) Local cultural planning; and
  (d) Other activities that encourage cultural activity.
  (3) At least 92.5 percent of any amount disbursed from the
account under subsection (1) of this section shall be distributed
as follows:
  (a) One-third to the preservation of, stabilization of and
investment in Oregon's cultural resources through the Cultural
Development Grant Program as provided under section 10 of this
2001 Act.
  (b) One-third to Oregon's counties and to the nine federally
recognized Indian tribes through the Community Cultural
Participation Grant Program as provided under section 11 of this
2001 Act.
  (c) One-third to the core partner agencies as provided under
section 14 of this 2001 Act. + }
  SECTION 10.  { + (1) There is created the Cultural Development
Grant Program to be administered by the office of the Secretary
of State under the direction of the Trust for Cultural
Development Board. The purpose of the program is to provide
preservation of, stabilization of and investment in Oregon's
cultural resources.  The office of the Secretary of State shall
make Cultural Development Grants to cultural organizations
through a request for proposal process.
  (2) The grants may be used:
  (a) To address significant opportunities to advance, preserve
or stabilize cultural resources; and
  (b) To invest in the development of new cultural resources.
  (3) The office of the Secretary of State shall give priority
when awarding grants to:
  (a) Proposals that have a broad cultural impact beyond the
applicant itself.
  (b) Proposals from applicants that have culture as a priority
within the mission of the applicant.
  (4) Applicants that receive a grant under this section shall be
required to match the grant amount in an amount as determined by
the board. + }
  SECTION 11.  { + (1) There is created the Community Cultural
Participation Grant Program to be administered by the office of
the Secretary of State under the direction of the Trust for
Cultural Development Board. The purpose of the program is to
provide funds to counties and Indian tribes for local cultural
activities. The office of the Secretary of State shall make
Community Cultural Participation Grants to counties and tribes.
 
  (2) The board shall develop guidelines for local cultural
plans.
  (3) A local cultural plan shall:
  (a) Identify priorities and specific strategies for building
public cultural participation across cultural disciplines and
organizations. The strategies may include the involvement of
partners outside of the cultural sector such as business
organizations, schools and health and human services
organizations.
  (b) Identify annual benchmarks to determine the impact of grant
funds.
  (c) Specify local leadership and governance for grant fund
management and for ongoing planning and development of
benchmarks.
  (4) Local cultural plans shall be broadly disseminated within
each county or tribe. The local cultural plans shall be used to
encourage planning and collaboration among cultural entities. + }
  SECTION 12.  { + (1) For the fiscal year beginning July 1,
2002, the office of the Secretary of State, under the direction
of the Trust for Cultural Development Board, shall make Community
Cultural Participation Grants under section 11 of this 2001 Act
to counties and Indian tribes to support local cultural planning.
The office of the Secretary of State shall provide technical
assistance to counties and tribes to support local cultural
planning.
  (2) Grant funds may be used to address planning costs
associated with creating a local cultural plan, including but not
limited to:
  (a) Conducting research;
  (b) Convening the public;
  (c) Using professional counsel and facilitators; and
  (d) Surveying members of the community.
  (3) The office of the Secretary of State shall allocate grant
amounts for counties and tribes using a base amount, plus a per
capita amount for each county or tribe. + }
  SECTION 13.  { + (1) For the fiscal years beginning July 1,
2003, through July 1, 2011, the office of the Secretary of State,
under the direction of the Trust for Cultural Development Board,
shall make Community Cultural Participation Grants under section
11 of this 2001 Act to counties and Indian tribes to support
cultural activities identified in the local cultural plans. Grant
funds received by a county or tribe shall be distributed locally
as specified in the local cultural plan.
  (2) A portion of the grant funds received each fiscal year by a
county or tribe may be used for costs associated with grant
management, community technical assistance and accounting.
  (3) For the fiscal year beginning July 1, 2007, a portion of
each grant awarded to a county or tribe may be used:
  (a) For revising local cultural plans;
  (b) To articulate updated priorities in the local cultural
plan; and
  (c) For strategies to continue deepening and expanding
participation in all facets of culture. + }
  SECTION 14.  { + (1) The office of the Secretary of State,
under the direction of the Trust for Cultural Development Board,
shall distribute the amount disbursed from the Trust for Cultural
Development Account under section 9 (3)(c) of this 2001 Act to
the core partner agencies as follows:
  (a) The office of the Secretary of State shall allocate 20
percent of the amount disbursed under section 9 (3)(c) of this
2001 Act for joint efforts by the core partner agencies in
fostering cooperative cultural projects, including but not
limited to cultural education, cultural tourism and other
cultural activities.
  (b) The office of the Secretary of State shall allocate 80
percent of the amount disbursed under section 9 (3)(c) of this
2001 Act to the core partner agencies for the purposes described
in section 16 of this 2001 Act. The Trust for Cultural
Development Board shall determine the amount or percent of
available funds that each core partner agency shall receive under
this paragraph.
  (2) The core partner agencies shall not be eligible to apply
for grants from the Community Cultural Participation Grant
Program or the Cultural Development Grant Program. + }
  SECTION 15.  { + Notwithstanding section 14 (1)(b) of this 2001
Act, for the 2001-2003 biennium, the office of the Secretary of
State shall allocate 80 percent of the amount disbursed under
section 9 (3)(c) of this 2001 Act to the core partner agencies as
follows:
  (1) One-third to the Oregon Arts Commission;
  (2) One-third to the Oregon Council for the Humanities; and
  (3) One-third to be divided among the Oregon Heritage
Commission, the Oregon Historical Society and the State Historic
Preservation Officer. + }
  SECTION 16.  { + (1) A core partner agency may use funds
received under section 9 (3)(c) of this 2001 Act to:
  (a) Carry out the mission and mandate of the agency;
  (b) Serve more grantees; and
  (c) Encourage new cultural undertakings.
  (2) Each core partner agency shall expend a portion of the
amount received under section 9 (3)(c) of this 2001 Act as
determined by the Trust for Cultural Development Board each
fiscal year to fund development of qualitative benchmarks and
culture within Oregon. The evaluation of benchmarks may be done
in partnership with one or more higher education institutions in
Oregon. It is intended that this partnership will stimulate
research and investigation of the ways in which culture and
related cultural policy will impact the state over a 10-year
period. + }
  SECTION 17.  { + Section 18 of this 2001 Act is added to and
made a part of ORS chapter 315. + }
  SECTION 18.  { + (1) As used in this section, 'cultural
organization' means an entity that is:
  (a) Exempt from federal income tax under section 501(c)(3) of
the Internal Revenue Code; and
  (b) Organized primarily for the purpose of producing, promoting
or presenting the arts, heritage, programs and humanities to the
public or organized primarily for identifying, documenting,
interpreting and preserving cultural resources.
  (2) A taxpayer shall be allowed a credit against the taxes
otherwise due under ORS chapter 316 for amounts contributed
during the tax year to the Trust for Cultural Development Account
established under ORS 285A.216.
  (3) A taxpayer that is a corporation shall be allowed a credit
against the taxes otherwise due under ORS chapter 317 or 318 for
amounts contributed during the tax year to the Trust for Cultural
Development Account established under ORS 285A.216.
  (4) The credit is allowable under this section only to the
extent the taxpayer has contributed an equal amount to an Oregon
cultural organization during the tax year.
  (5) The amount of the credit shall equal 100 percent of the
amount contributed to the Trust for Cultural Development Account,
but may not exceed the lesser of the tax liability of the:
  (a) Taxpayer under ORS chapter 316 for the tax year or $500.
  (b) Taxpayer that is a corporation under ORS chapter 317 or 318
for the tax year or $2,500.
  (6) The credit allowed under this section may not be carried
over to another tax year.
  (7) The credit allowed under this section is in addition to any
charitable contribution deduction allowable to the taxpayer.
  (8) In the case of a credit allowed under this section for
purposes of ORS chapter 316:
  (a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
  (b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed under this section shall be determined in a manner
consistent with ORS 316.117.
  (c) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each.
  (d) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085. + }
  SECTION 19.  { + Section 18 of this 2001 Act applies to tax
years beginning on or after January 1, 2002, and before January
1, 2013. + }
  SECTION 19a.  { + Notwithstanding section 19 of this 2001 Act,
for a tax year beginning on or after January 1, 2002, and before
January 1, 2003, a credit may be allowed under section 18 of this
2001 Act only if the contribution on which the credit is based is
made on or after December 1, 2002. + }
  SECTION 20.  { + Sections 21 and 22 of this 2001 Act are added
to and made a part of the Oregon Vehicle Code. + }
  SECTION 21.  { + (1) The Department of Transportation shall
establish a cultural registration plate program to issue special
registration plates called 'cultural registration plates' upon
request to owners of motor homes, travel trailers and motor
vehicles registered under the provisions of ORS 803.420 (1) to
observe the importance of culture to Oregon. In addition, the
department may adopt rules for issuance of cultural registration
plates for vehicles not registered under the provisions of ORS
803.420 (1).
  (2) In addition to any other fee authorized by law, for each
cultural registration plate issued under subsection (1) of this
section, the department shall collect a surcharge of $15 payable
when the plate is issued and upon each subsequent renewal of
registration of a vehicle bearing the plate. The department shall
distribute the surcharge as provided in section 22 of this 2001
Act.
  (3) Notwithstanding ORS 803.530, cultural registration plates
may be transferred from vehicle to vehicle if the department
stops issuing the plates as long as the plates are not so old,
damaged, mutilated or otherwise rendered illegible as to be not
useful for purposes of identification.
  (4) The department, in consultation with the Trust for Cultural
Development Board, shall design the cultural registration plates.
The plates shall meet the requirements for registration plates
described in ORS 803.535. + }
  SECTION 22.  { + (1) After deduction of the cost of
administration of the cultural registration plate program, moneys
from the surcharge imposed by section 21 of this 2001 Act shall
be transferred and appropriated to the Trust for Cultural
Development Account established under ORS 285A.216.
  (2) As used in this section, 'the cost of administration of the
cultural registration plate program' is the sum of all Department
of Transportation expenses for the issuance or transfer of
cultural registration plates under section 21 of this 2001 Act
that are above the normal costs of issuing, renewing and
transferring registration plates in the normal course of the
business of the department. These expenses include, but are not
limited to, the costs of collecting the cultural registration
plate surcharge and transferring cultural registration
plates. + }
  SECTION 23.  { + If House Bill 3882 becomes law:
  (1) If the Department of Transportation determines there are
sufficient moneys in the Department of Transportation Operating
Fund from taxes described in section 1 (2)(a), chapter ___,
Oregon Laws 2001 (Enrolled House Bill 3882), for the biennium
beginning July 1, 2001, the department may use up to $100,000
from the taxes described in section 1 (2)(a), chapter ___, Oregon
Laws 2001 (Enrolled House Bill 3882), that have been deposited in
the Department of Transportation Operating Fund, for the purpose
of initiating the cultural registration plate program established
in section 21 of this 2001 Act, including but not limited to
cultural registration plate design, computer programming and
cultural registration plate production setup.
  (2) Notwithstanding section 22 of this 2001 Act, after
deduction of the cost of administration of the cultural
registration plate program, the department shall transfer the
moneys from the surcharge imposed by section 21 of this 2001 Act
to an account in the General Fund until sufficient funds have
accumulated for the purpose of subsection (3) of this section.
  (3) When the department determines that moneys in sufficient
amount are available in the account described in subsection (2)
of this section, but in no event later than June 30, 2003, the
department shall reimburse the Department of Transportation
Operating Fund, without interest, in an amount equal to the
amount used by the department from the Department of
Transportation Operating Fund under subsection (1) of this
section. The moneys used to reimburse the Department of
Transportation Operating Fund under this subsection may not be
considered as a budget item on which a limitation is otherwise
fixed by law, but shall be in addition to any specific biennial
appropriations or amounts authorized to be expended from
continually appropriated moneys for any biennial period.
  (4) Any moneys remaining in the account described in subsection
(2) of this section after the reimbursement required under
subsection (3) of this section shall be transferred and
appropriated to the Trust for Cultural Development Account as
provided in section 22 of this 2001 Act. + }  { +  + }
  SECTION 24.  { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Secretary of State,
for the biennium beginning July 1, 2001, out of the General Fund,
the amount of $100,000, which may be expended for the start-up
costs associated with the Trust for Cultural Development Account
under sections 3 to 16 of this 2001 Act. + }
  SECTION 25. ORS 293.701, as amended by section 67, chapter
1078, Oregon Laws 1999, is amended to read:
  293.701. As used in ORS 293.701 to 293.820, unless the context
requires otherwise:
  (1) 'Council' means the Oregon Investment Council.
  (2) 'Investment funds' means:
  (a) Public Employees Retirement Fund referred to in ORS
238.660;
  (b) Industrial Accident Fund referred to in ORS 656.632;
  (c) Consumer and Business Services Fund referred to in ORS
705.145;
  (d) Employment Department Special Administrative Fund referred
to in ORS 657.822;
  (e) Insurance Fund referred to in ORS 278.425;
  (f) Funds under the control and administration of the Division
of State Lands;
  (g) Oregon Student Assistance Fund referred to in ORS 348.570;
  (h) Moneys made available to the Commission for the Blind under
ORS 346.270 and 346.540 or rules adopted thereunder;
  (i) Forest rehabilitation bonds sinking fund referred to in ORS
530.280;
  (j) Oregon War Veterans' Fund referred to in ORS 407.495;
  (k) Oregon War Veterans' Bond Sinking Account referred to in
ORS 407.515;
  (L) World War II Veterans' Compensation Fund;
  (m) World War II Veterans' Bond Sinking Fund;
  (n) Savings and loan association funds in the hands of the
Director of the Department of Consumer and Business Services;
  (o) Funds in the hands of the State Treasurer that are not
required to meet current demands;
  (p) State funds that are not subject to the control and
administration of officers or bodies specifically designated by
law;
  (q) Funds derived from the sale of state bonds;
  (r) Social Security Revolving Account referred to in ORS
237.490;
  (s) Investment funds of the State Board of Higher Education
lawfully available for investment or reinvestment;
  (t) Local Government Employer Benefit Trust Fund referred to in
ORS 657.513;
  (u) Elderly and Disabled Special Transportation Fund
established by ORS 391.800;
  (v) Oregon Resource and Technology Development Account
established by ORS 284.630;
  (w) Education Endowment Fund established by ORS 348.696;
  { - and - }
  (x) Deferred Compensation Fund established under ORS
243.411 { + ; and
  (y) Trust for Cultural Development Account established under
ORS 285A.216 + }.
  (3) 'Investment officer' means the State Treasurer in the
capacity as investment officer for the council.
  SECTION 26.  { + (1) The Department of Corrections shall work
with the Oregon Department of Administrative Services and other
interested parties to develop a plan for the sale of between 349
and 400 acres of the real property owned by the Department of
Corrections and described in the report 'Mill Creek District: A
Master Plan for the Corrections Farm Property, Salem, Oregon, '
published June 30, 1999.
  (2) In addition to the real property identified under
subsection (1) of this section, the Department of Corrections
shall identify approximately 200 acres described in the report.
The real property identified under this subsection may be
retained by the Department of Corrections for the purpose of
leasing to or may be sold to the Department of Public Safety
Standards and Training.
  (3)(a) Prior to January 31, 2002, the Department of Corrections
shall report to the Emergency Board about the progress in
developing the plan and identifying the real property described
in subsections (1) and (2) of this section.
  (b) Prior to January 8, 2003, the Department of Corrections
shall report to the Emergency Board about the plan. The report
shall include a description of the real property identified for
sale under subsections (1) and (2) of this section.
  (c) After reporting to the Emergency Board, the Department of
Corrections shall:
  (A) Transfer the real property identified in subsection (1) of
this section to the Oregon Department of Administrative Services
to be sold for the benefit of the Trust for Cultural Development
Account established in ORS 285A.216;
  (B) Transfer any real property identified in subsection (2) of
this section that is to be sold to the Department of Public
Safety Standards and Training to the Oregon Department of
Administrative Services to be sold and the proceeds distributed
as provided in subsection (4)(d) of this section; and
  (C) Transfer any real property identified in subsection (2) of
this section that is not retained to be leased to or that will
not be sold to the Department of Public Safety Standards and
Training to the Oregon Department of Administrative Services to
 
be sold and the proceeds distributed as provided in subsection
(4)(d) of this section.
  (4)(a) Notwithstanding ORS 270.100 to 270.190, the Oregon
Department of Administrative Services shall sell or otherwise
convey the real property transferred under subsection (3) of this
section in a manner consistent with the provisions of this
section. Conveyance may not include transfer to a state agency
except as provided in this section. The Oregon Department of
Administrative Services shall engage the services of a licensed
real estate broker or real estate organization to facilitate the
sale of the real property.
  (b)(A) The sale price of the real property transferred under
subsection (3)(c)(A) or (C) of this section shall equal or exceed
the fair market value of the real property.
  (B) The sale price of the real property transferred under
subsection (3)(c)(B) of this section shall be determined by the
Oregon Department of Administrative Services.
  (c) The Oregon Department of Administrative Services may sell
any portion of the approximately 200 acres of the real property
identified in subsection (2) of this section to the Department of
Public Safety Standards and Training for the purpose of siting a
law enforcement training facility.
  (d) The Oregon Department of Administrative Services shall
retain from the sale or other conveyance of the real property
under this subsection those costs incurred by the state in
selling or conveying the real property, including costs incurred
by the Department of Corrections in transferring the real
property to the Oregon Department of Administrative Services and
costs incurred by the Oregon Department of Administrative
Services in selling any portion of the real property to the
Department of Public Safety Standards and Training. The remaining
proceeds from the sale shall be transferred as follows:
  (A) 100 percent of the remaining proceeds from the sale of the
real property identified in subsection (1) of this section to the
Trust for Cultural Development Account;
  (B) 50 percent of the remaining proceeds from the sale of the
real property identified in subsection (2) of this section to the
Trust for Cultural Development Account; and
  (C) 50 percent of the remaining proceeds from the sale of the
real property identified in subsection (2) of this section to the
Department of Corrections to be used for capital improvement and
capital construction projects. + }
  SECTION 27. ORS 273.384 is amended to read:
  273.384. (1) The Space Age Industrial Park shall be managed and
administered by the Director of the Oregon Department of
Administrative Services.
  (2) Notwithstanding the provisions of any law, all net income
and other net proceeds derived from the rental, lease, sale,
disposition or use of the Space Age Industrial Park (after
payment of all costs and expenses incident to the maintenance and
administration of the Space Age Industrial Park and costs
incident to any sale or other disposition thereof) shall be
deposited in the State Treasury and credited to the   { - General
Fund to be available for general governmental expenses - }  { +
Trust for Cultural Development Account established in ORS
285A.216 + }.
  SECTION 28.  { + If the Space Age Industrial Park is sold and
more than $1 million from the proceeds of the sale is deposited
in the Trust for Cultural Development Account prior to January 5,
2003, there is allocated to the Emergency Board, for the biennium
beginning July 1, 2001, out of the Trust for Cultural Development
Account, the amount of $1 million, which may be allocated by the
Emergency Board for specified uses in Morrow County. + }
  SECTION 29. ORS 270.150 is amended to read:
  270.150. (1) The proceeds, less costs, of any real property
sold by the Oregon Department of Administrative Services under
ORS 270.100, 270.110 and 270.130   { - shall - }  { +  may + } be
credited to and deposited in the Capital Projects Fund
established by ORS 276.005  { +  or the Trust for Cultural
Development Account established in ORS 285A.216 + }.
   { +  (2) The proceeds of any real property sold by a state
agency under ORS 270.100 and 270.110 may be credited to and
deposited in the Trust for Cultural Development Account. If the
proceeds are credited to and deposited in the account, a state
agency may retain from the proceeds the costs of selling the real
property and the amount originally paid by the state agency when
the state agency acquired the real property. + }
    { - (2) - }  { +  (3) + } The revenue from the rental or
lease of surplus real property managed by the department shall be
deposited in the State Treasury to the credit of the operating
fund established by ORS 283.076.
    { - (3) - }  { +  (4) + } Notwithstanding the provisions of
subsection (1)  { + or (2) + } of this section, an agency may
negotiate with the department to apply the proceeds of a sale,
transfer or lease of such surplus real property to another
capital acquisition of that agency.
  SECTION 30.  { + The amendments to ORS 270.150 by section 29 of
this 2001 Act first apply to real property sold on or after the
effective date of this 2001 Act. + }
  SECTION 31. ORS 426.506 is amended to read:
  426.506. (1) There is created in the State Treasury, separate
and distinct from the General Fund, the Community Mental Health
Housing Fund. All earnings on investments of moneys in the
Community Mental Health Housing Fund shall accrue to the fund.
Interest earned on moneys in the fund shall be credited to the
fund. All moneys in the fund are continuously appropriated to the
Mental Health and Developmental Disability Services Division to
carry out the provisions of ORS 426.504.
  (2) The Community Mental Health Housing Fund shall be
administered by the division to provide housing for chronically
mentally ill persons. As used in this subsection, 'housing' may
include acquisition, maintenance, repair, furnishings and
equipment.
  (3)(a) There is established within the Community Mental Health
Housing Fund a Community Housing Trust Account.  Notwithstanding
the provisions of ORS 270.150   { - (1) and (3) - } , the
division shall deposit into the account the proceeds, less costs
to the state, received by the division from the sale of F. H.
Dammasch State Hospital property under ORS 426.508. The division
may expend, for the purposes set forth in ORS 426.504, any
earnings credited to the account, including any interest earned
on moneys deposited in the account, and up to five percent of the
sale proceeds initially credited to the account by the Oregon
Department of Administrative Services. At least 95 percent of the
sale proceeds shall remain in the account in perpetuity. Proceeds
deposited in the account may not be commingled with proceeds from
the sale of any surplus real property owned, operated or
controlled by the division and used as a state training center.
  (b) Interest earned on moneys in the Community Housing Trust
Account may be expended in the following manner:
  (A) Seventy percent of interest earned on deposits in the
account shall be expended for community housing purposes; and
  (B) Thirty percent of interest earned on deposits in the
account shall be expended for institutional housing purposes.
  (c) Interest earned on deposits in the account shall not be
used to support operating expenses of the division.
  (4) The Community Mental Health Housing Fund shall consist of:
  (a) Moneys appropriated to the fund by the Legislative
Assembly;
  (b) Sale proceeds and earnings from the account under
subsection (3) of this section;
 
  (c) Proceeds from the sale, transfer or lease of any surplus
real property owned, operated or controlled by the division and
used as community housing;
  (d) Moneys reallocated from other areas of the division's
budget;
  (e) Interest and earnings credited to the fund; and
  (f) Gifts of money or other property from any source, to be
used for the purposes of developing housing for chronically
mentally ill persons.
  (5) The division shall adopt policies:
  (a) To establish priorities for the use of moneys in the
Community Mental Health Housing Fund for the sole purpose of
developing housing for chronically mentally ill persons;
  (b) To match public and private moneys available from other
sources for developing housing for chronically mentally ill
persons; and
  (c) To administer the fund in a manner that will not exceed the
State Treasury's maximum cost per transaction.
  (6) The division shall collaborate with the Housing and
Community Services Department to ensure the highest return and
best value for community housing from the Community Mental Health
Housing Fund.
  (7) The division shall provide a report of revenues to and
expenditures from the Community Mental Health Housing Fund as
part of its budget submission to the Governor and Legislative
Assembly under ORS chapter 291.
  SECTION 32. ORS 427.340 is amended to read:
  427.340. (1) There is established a Developmental Disabilities
Community Housing Fund in the State Treasury, separate and
distinct from the General Fund. All moneys in the fund are
continuously appropriated to the Mental Health and Developmental
Disability Services Division to pay expenses incurred by the
division in carrying out the provisions of ORS 427.330 and
427.335. Interest earned on moneys in the fund shall be credited
to the fund.
  (2) There is established within the fund a Community Housing
Trust Account. Notwithstanding the provisions of ORS 270.150
 { - (1) and (3) - } , the division shall negotiate with the
Oregon Department of Administrative Services to apply the
proceeds from the sale, transfer or lease of any surplus real
property owned, operated or controlled by the division and used
as a state training center to the account. The division may
expend, for the purposes of ORS 427.330 to 427.345, any earnings
credited to the account, including any income from the lease of
surplus property and any interest earned on moneys deposited in
the account, and up to five percent of any sale or transfer
proceeds initially credited to the account by the Oregon
Department of Administrative Services. At least 95 percent of all
sale or transfer proceeds shall remain in the account in
perpetuity.
  (3) The fund shall consist of:
  (a) Moneys appropriated to the fund by the Legislative
Assembly;
  (b) Repayment of financial assistance provided to housing
providers or care providers for community housing under ORS
427.335 (3);
  (c) Proceeds from the account under subsection (2) of this
section;
  (d) Moneys reallocated from other areas of the division's
budget; and
  (e) Interest credited to the fund.
  (4) The division shall provide a report of revenues to and
expenditures from the fund as part of its budget submission to
the Governor and Legislative Assembly under ORS chapter 291.
 
 
  SECTION 33.  { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
                         ----------