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 1688
B-Engrossed
House Bill 2980
Ordered by the House May 23
Including House Amendments dated May 4 and May 23
Sponsored by Representative MORGAN (at the request of Oregon
Building Industry Association)
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.
Revises Bancroft Bonding Act to cover purchase or development
of public park { + or recreational facility + }. { - Defines
increased use for purposes of system development charges. Permits
governmental units to adopt - } { + Modifies + } procedures for
administrative review of calculation of system development
charges. Specifies method for calculating fees for improvements
already constructed or under construction and for calculating
fees for improvements to be constructed. Increases period for
written notice to be given by unit of local government that
proposes to establish or modify system development charge. Makes
related changes.
A BILL FOR AN ACT
Relating to impact of new development on system development
charges; amending ORS 223.208, 223.302, 223.304, 223.309,
223.311 and 223.314.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 223.208 is amended to read:
223.208. (1) Subject to subsection (2) of this section, the
rights and duties accorded governmental units and the owners of
property for financing and assessments under ORS 223.205 to
223.775 shall apply to the following:
(a) A systems development charge designed to finance the { +
purchase or development of a public park or recreational facility
or the + } construction, extension or enlargement of a street,
community water supply, storm sewer or sewerage or disposal
system as defined in ORS 199.464 imposed by a governmental unit
as a condition to issuance of any occupancy permit or imposed by
a governmental unit at such other time as, by ordinance, it may
determine.
(b) That portion of a connection charge imposed by a
governmental unit which is greater than the amount necessary to
reimburse the unit for its costs of inspection and installing
connections with system mains.
(2) Notwithstanding ORS 223.230, the financing of systems
development or connection charges under this section may, at the
option of the governing body, be a second lien on real property,
which lien shall be inferior only to the mortgage or other
security interest held by the lender of the owner's purchase
money. Bonds issued under this subsection shall be issued
separately from bonds otherwise issued under ORS 223.205 to
223.775 and shall comply with all applicable federal regulations.
SECTION 2. ORS 223.302 is amended to read:
223.302. (1) Governmental units are authorized to establish
system development charges, but the revenues produced therefrom
shall be expended only in accordance with ORS 223.297 to 223.314.
If a governmental unit expends any such revenues in violation of
the limitations described in ORS 223.307, the governmental unit
shall replace the misspent amount with moneys derived from other
sources. Replacement moneys shall be deposited in a fund
designated for the system development charge revenues not later
than one year following a determination that the funds were
misspent.
(2) Governmental units shall adopt administrative review
procedures by which any citizen or other interested person may
challenge an expenditure of system development charge revenues.
Such procedures shall provide that such a challenge must be filed
within two years of the expenditure of the system development
charge revenues. The decision of the governmental unit shall be
{ + judicially + } reviewed only as provided in ORS 34.010 to
34.100 { - , and not otherwise - } .
{ + (3)(a) A governmental unit must advise a person who makes
a written objection to the calculation of a system development
charge of the right to petition for review pursuant to ORS 34.010
to 34.100.
(b) If a governmental unit has adopted an administrative review
procedure for objections to the calculation of a system
development charge, the governmental unit must provide adequate
notice regarding the procedure for review to a person who makes a
written objection to the calculation of a system development
charge. + }
SECTION 3. ORS 223.304 is amended to read:
223.304. (1) { + (a) + } Reimbursement fees shall be
established { + or modified + } by ordinance or resolution
setting forth a methodology that considers the cost of the
existing facility or facilities, prior contributions by existing
users, { + gifts or grants from federal or state government or
private persons, + } the value of unused capacity { + available
to future system users + }, rate-making principles employed to
finance publicly owned capital improvements and other relevant
factors identified by the local government imposing the fee.
{ + (b) + } The methodology { + for establishing or
modifying a reimbursement fee + }shall { + :
(A) + } Promote the objective of future system users
contributing no more than an equitable share to the cost of
existing facilities. { - The methodology for establishing such
fees shall - }
{ + (B) + } Be available for public inspection.
(2) { + (a) + } Improvement fees shall { + :
(A) + } Be established { + or modified + } by ordinance or
resolution setting forth a methodology that considers the cost of
projected capital improvements needed to increase the capacity of
the systems to which the fee is related.
{ + (B) Be calculated to obtain the cost of capital
improvements for the projected need for available system capacity
for future users. + }
{ + (b) + } The methodology for establishing { - such - }
{ + or modifying improvement + } fees shall be available for
public inspection.
(3) The ordinance or resolution that establishes { + or
modifies + } an improvement fee shall also provide for a credit
against such fee for the construction of a qualified public
improvement. A ' qualified public improvement' means a capital
improvement that is required as a condition of development
approval, identified in the plan adopted pursuant to ORS 223.309
and either:
(a) Not located on or contiguous to property that is the
subject of development approval; or
(b) Located in whole or in part on or contiguous to property
that is the subject of development approval and required to be
built larger or with greater capacity than is necessary for the
particular development project to which the improvement fee is
related.
(4)(a) The credit provided for in subsection (3) of this
section shall be only for the improvement fee charged for the
type of improvement being constructed, and credit for qualified
public improvements under subsection (3)(b) of this section may
be granted only for the cost of that portion of such improvement
that exceeds the government units minimum standard facility size
or capacity needed to serve the particular development project or
property. The applicant shall have the burden of demonstrating
that a particular improvement qualifies for credit under
subsection (3)(b) of this section.
(b) When the construction of a qualified public improvement
gives rise to a credit amount greater than the improvement fee
that would otherwise be levied against the project receiving
development approval, the excess credit may be applied against
improvement fees that accrue in subsequent phases of the original
development project. This subsection shall not prohibit a unit of
government from providing a greater credit, or from establishing
a system providing for the transferability of credits, or from
providing a credit for a capital improvement not identified in
the plan adopted pursuant to ORS 223.309, or from providing a
share of the cost of such improvement by other means, if a unit
of government so chooses.
(c) Credits shall be used in the time specified in the
ordinance but not later than 10 years from the date the credit is
given.
(5) Any unit of local government that proposes to
{ - adopt - } { + establish or modify + } a system development
charge shall maintain a list of persons who have made a written
request for notification prior to adoption or amendment of a
methodology for any system development charge.
{ + (6) + } Written notice shall be mailed to persons on the
list at least { - 45 - } { + 90 + } days prior to the first
hearing to { - adopt or amend - } { + establish or modify + }
a system development charge, and the methodology supporting the
{ - adoption or amendment - } { + system development
charge + } shall be available at least { - 30 - } { + 60 + }
days prior to the first hearing { - to adopt or amend - } . The
failure of a person on the list to receive a notice that was
mailed { - shall - } { + does + } not invalidate the action
of the local government. The unit of local government may
periodically delete names from the list, but at least 30 days
prior to removing a name from the list must notify the person
whose name is to be deleted that a new written request for
notification is required if the person wishes to remain on the
notification list. { - No - } Legal action intended to contest
the methodology used for calculating a system development charge
{ - shall - } { + may not + } be filed after 60 days
following adoption or modification of the system development
charge ordinance or resolution by the local government. A person
shall { - contest - } { + request judicial review of + } the
methodology used for calculating a system development charge only
as provided in ORS 34.010 to 34.100 { - , and not otherwise - }
.
{ + (7) A change in the amount of a reimbursement fee or an
improvement fee is not a modification of the system development
charge if the change in amount is based on the periodic
application of an adopted specific cost index or on a
modification to any of the factors related to rate that are
incorporated in the established methodology. + }
SECTION 4. ORS 223.309 is amended to read:
223.309. (1) { - Any governmental unit which has adopted - }
{ + Prior to the establishment of + } a system development
charge by ordinance or resolution { + , a governmental unit
+ }shall prepare a capital improvement plan, public facilities
plan, master plan or comparable plan { - which lists - } { +
that includes a list of + } the capital improvements that may be
funded with improvement fee revenues and the estimated cost and
timing for each improvement.
(2) A governmental unit that has prepared a plan { + and the
list + } described in subsection (1) of this section may modify
such plan { + and list + } at any time.
SECTION 5. ORS 223.311 is amended to read:
223.311. { + (1) + } System development charge revenues shall
be deposited in accounts designated for such moneys. The
governmental unit shall provide an annual accounting { + , to be
completed by January 1 of each year, + } for system development
charges showing the total amount of system development charge
revenues collected for each system and the projects that were
funded { + in the previous fiscal year + }.
{ + (2) The governmental unit shall include in the annual
accounting a list of the amount spent on each project funded, in
whole or in part, with system development charge revenues. + }
SECTION 6. ORS 223.314 is amended to read:
223.314. The { - adoption - } { + establishment,
modification or implementation + } of a system development
charge, or a plan as provided for in ORS 223.309, or any
modification { - thereto - } { + of a plan + }, is not a land
use decision pursuant to ORS chapters 195 and 197.
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