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 3816
 
                           A-Engrossed
 
                         House Bill 3187
                   Ordered by the House May 24
             Including House Amendments dated May 24
 
Sponsored by Representative G SMITH (at the request of Waste
  Management, Inc.)
 
 
                             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.
 
  Modifies list of activities for which private activity bond
proceeds are allocated. { +  Adds solid waste disposal facilities
and related vehicles, rolling stock and equipment to definition
of economic development project. Exempts Oregon Economic and
Community Development Commission from statutory requirements to
find that action is cost effective and to make certain other
findings if project involves solid waste disposal facility and
related vehicles, rolling stock or equipment in certain cases.
Authorizes state to hold title or hold federal tax ownership of
eligible project. Exempts state, commission and counties from
certain public contracting requirements in some cases. Expands
certain powers of counties to hold title or federal tax ownership
of pollution control facilities. + }
 
                        A BILL FOR AN ACT
Relating to private activity bonds; amending ORS 285B.320,
  285B.323, 285B.329, 285B.335, 285B.341, 286.615 and 468.265.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 286.615 is amended to read:
  286.615. (1) The Private Activity Bond Committee is
established. It shall consist of one representative each from the
Oregon Department of Administrative Services and from the State
Treasurer and one public representative appointed to serve at the
pleasure of the Governor.
  (2) The representative from the department shall serve as chair
of the committee.
  (3) The purpose of private activity bonding in this state shall
be to maximize the economic benefits of such bonding to the
citizens of this state. To this end, the committee shall adopt by
rule standards for amounts allotted to it for further allocation
for economic development, housing, education, redevelopment,
public works, energy, waste management { + , waste and recycling
collection + }, transportation and other activities which the
committee determines will benefit the citizens of this state. In
developing standards, the committee shall:
  (a) Survey the expected need for private activity bond
allocations at least once each year;
  (b) Develop strategies for reserving and allocating the limit
which are designed to maximize the availability of tax exempt
financing among competing sectors of the Oregon economy; and
  (c)   { - Assure - }   { + Ensure + } that such standards
include but are not limited to:
  (A) Support projects that increase the number of family wage
jobs in this state.
  (B) Promote economic recovery in small cities heavily dependent
on a single industry.
  (C) Emphasize development in underdeveloped rural areas of this
state.
  (D) Utilize educational resources available at institutions of
higher education.
  (E) Support development of the state's small businesses,
especially businesses owned by women and members of minority
groups.
  (F) Encourage use of Oregon's human and natural resources in
endeavors which harness Oregon's economic comparative advantages.
  (G) Limit assistance to projects that assist businesses selling
goods and services in markets for which national or international
competition exists.
  (4) The state private activity bond limit allotted to the
Private Activity Bond Committee as provided in ORS 286.635 shall
be allocated and reallocated among issuers by the Private
Activity Bond Committee as follows:
  (a) Any amounts not reserved to an issuer or a class of issuers
under the limitation adopted under ORS 286.525 shall be allocated
or reallocated by the committee under rules adopted under
subsection (3) of this section.
  (b) Any amounts provided for in the limitation under ORS
286.525 that are unused shall be carried forward for use as
provided by rules adopted under subsection (3) of this section.
  (c) The rules adopted by the committee shall limit the period
of time for which an allocation of private activity bonding
authority is effective. Such rules shall insure allocations made
during a calendar year shall be used during that calendar year or
the unused amount of the allocation shall be reallocated during
that calendar year.
  (5) Unused allocations shall not be transferable among issuers
but shall be available for reallocation.
  SECTION 2. ORS 285B.320 is amended to read:
  285B.320. The Legislative Assembly finds that by use of the
powers and procedures described in ORS 285B.320 to 285B.377 for
the assembling and financing of lands for industrial,  { + solid
waste disposal, + } commercial and research and development uses
and for the construction and financing of facilities for such
uses, financed through the issuance of bonds secured solely by
the properties,  { +  lease payments, + } loan payments, rentals
or other financing payments thus made available, the state may be
able to reduce substantially in various counties the occurrence
of economic conditions requiring more expensive remedial action.
It is the purpose of ORS 285B.320 to 285B.377 to authorize the
exercise of powers granted by ORS 285B.320 to 285B.377 by this
state in addition to and not in lieu of any other powers it may
possess.
  SECTION 3. ORS 285B.323 is amended to read:
  285B.323. As used in ORS 285B.320 to 285B.377, unless the
context requires otherwise:
  (1) 'Bond' means any evidence of indebtedness, including but
not limited to any bond, note, obligation, loan agreement,
financing agreement, contracts for leasing, rental or financing
of real or personal property, including contracts for rental,
long term leases under an optional contract for purchase,
financing agreements with vendors, financial institutions or
others or for purchase of any property secured by revenues or
from other financing sources as provided in ORS 285B.320 to
285B.377. A bond, as defined in this subsection and issued under
ORS 285B.320 to 285B.377, shall be considered a revenue bond for
purposes of ORS 286.031.
  (2) 'Economic development project' includes any properties,
real or personal, used or useful in connection with a revenue
producing enterprise { +  or any solid waste disposal facilities
and related vehicles, rolling stock or equipment + }. 'Economic
development project' shall not include any facility or facilities
designed primarily for the generation, transmission, sale or
distribution of electrical energy.
  (3) 'Eligible project' means an economic development project
found by the Oregon Economic and Community Development Commission
to meet standards of the commission adopted under ORS 285A.110.
The commission may treat as a single eligible project for bonding
purposes any number of economic development projects determined
to be eligible projects.
  SECTION 4. ORS 285B.329 is amended to read:
  285B.329.  { + (1) + } The state, acting through the State
Treasurer, shall not undertake to finance any economic
development project pursuant to ORS 285B.320 to 285B.377 before
the Oregon Economic and Community Development Commission has
reviewed the project pursuant to standards adopted under ORS
285A.110.
   { +  (2) The commission is not required to make the
determination and findings described in ORS 285A.055 (1) and (2)
if the economic development project involves a solid waste
disposal facility and related vehicles, rolling stock or
equipment when the project does not require any private activity
volume cap under ORS 286.605 to 286.645. + }
  SECTION 5. ORS 285B.335 is amended to read:
  285B.335. In addition to any other powers granted by law or by
charter, in relation to an eligible project, the state, acting
through the State Treasurer or a designee thereof { + , + } may:
  (1) Enter into agreements to finance the costs of an eligible
project by loaning or otherwise making available the proceeds of
bonds authorized by ORS 285B.374 and 285B.377 to any person, firm
or public or private corporation or federal or state governmental
subdivision or agency under such terms and with such security as
the state may approve;
  (2) Lease and sublease eligible projects to any person, firm or
public or private corporation or federal or state governmental
subdivision or agency in such manner that rents to be charged for
the use of such projects shall be established, and revised from
time to time as necessary, so as to produce income and revenue
sufficient to provide for the prompt payment of principal of and
interest on all bonds issued under this section when due, and the
lease or financing agreement shall also provide that the lessee,
borrower or financing party shall be required to pay all expenses
of the operation and maintenance of the project including, but
without limitation, adequate insurance thereon and insurance
against all liability for injury to persons or property arising
from the operation thereof, and all taxes and special assessments
levied upon or with respect to the leased premises and payable
during the term of the lease, during which term ad valorem taxes
in the same amount and to the same extent as though the lessee
were the owner of all real and personal property comprising the
project;
  (3) Pledge and assign to the holders of such bonds or a trustee
therefor all or any part of the revenues of one or more eligible
projects owned or to be acquired by the state, and define and
segregate such revenues or provide for the payment thereof to a
trustee;
  (4) Mortgage or otherwise encumber eligible projects in favor
of the holders of such bonds or in favor of any escrow agent,
vendor, lender, other financing party or trustee therefor.
 
However, in creating any such mortgages or encumbrances the state
can not obligate itself except with respect to the project;
  (5) Make all contracts, execute and deliver all instruments,
and do all things necessary or convenient in the exercise of the
powers granted by this section, or in the performance of its
covenants or duties, or in order to secure the payment of its
bonds; including a contract entered into prior to the
construction, acquisition and installation of the eligible
project authorizing the lessee, borrower or other financing
party, subject to such terms and conditions as the state shall
find necessary or desirable and proper, to provide for the
construction, acquisition and installation of the buildings,
improvements and equipment to be included in the project by any
means available to the lessee, borrower or other financing party,
and in the manner determined by the lessee, borrower or other
financing party, and without advertisement for bids as may be
required for the construction, acquisition or installation of
other public facilities;
  (6) Enter into and perform such contracts and agreements with
political subdivisions and state agencies as the respective
governing bodies of the same may consider proper and feasible for
or concerning the planning, construction, installation, lease, or
other acquisition, and the financing of such facilities, which
contracts and agreements may establish a board, commission or
such other body as may be deemed proper for the supervision and
general management of the facilities of the eligible project;
 { - and - }
  (7) Accept from any authorized agency of the state or federal
government loans or grants for the planning, construction,
acquisition, leasing, or other provision of any eligible project,
and enter into agreements with such agency respecting such loans
or grants { + ; and
  (8) Acquire, own, sell, assign or otherwise hold legal or
equitable title to or an interest in eligible projects or hold
federal tax ownership of eligible projects + }.
  SECTION 6. ORS 285B.341 is amended to read:
  285B.341. Except as provided in ORS  { + 285B.335 and + }
285B.338
  { - (2) - } , the state shall not have power to operate any
eligible project as a business or in any manner whatsoever, and
except as provided in ORS  { + 285B.335, 285B.338, + } 285B.374
and 285B.377, nothing in ORS 285B.320 to 285B.377 authorizes the
state to expend any funds on any eligible project, other than the
revenues of such projects, or the proceeds of revenue bonds
issued hereunder, or other funds granted to the state for the
purposes of an eligible project. { +  For the purpose of
exercising the powers and authority granted under ORS 285B.335 or
285B.338, the state and the Oregon Economic and Community
Development Commission are not subject to the requirements of ORS
chapter 279. + }
  SECTION 7. ORS 468.265 is amended to read:
  468.265. (1) In addition to any other powers which it may now
have, each county shall have the following powers, together with
all powers incidental thereto or necessary for the performance of
the following:
  (a) To acquire, whether by purchase, exchange, devise, gift or
otherwise, establish, construct, improve, maintain, equip and
furnish one or more pollution control facilities or any interest
therein to be located, in whole or in part, within such
municipality { +  or in another municipality, if the other
municipality gives written consent + }.
  (b) To enter into a lease, sublease, lease-purchase,
installment sale, sale, or agreement for any facility upon such
terms and conditions as the governing body may deem advisable,
provided the same shall at least fully cover all debt service
 
requirements with respect to the facility and shall not conflict
with the provisions of ORS 468.263 to 468.272.
  (c) To sell, exchange, donate and convey to others any or all
facilities upon such terms as the governing body may deem
advisable, including the power to receive for any such sale the
note or notes of the purchaser of the facilities or property
whenever the governing body finds any such action to be in
furtherance of the purposes of ORS 468.263 to 468.272.
  (d) To issue revenue bonds for the purpose of carrying out any
of its powers under ORS 468.263 to 468.272.
  (e) Whenever the governing body finds such loans to be in the
furtherance of the purposes of ORS 468.263 to 468.272 and subject
always to the limitations contained in ORS 468.266, to make
secured or unsecured loans for the purpose of financing or
refinancing the acquisition, construction, improvement or
equipping of a facility and to charge and collect interest on
such loans and pledge the proceeds thereof as security for the
payment of the principal and interest of any bonds issued
hereunder and any agreements made in connection therewith. { +  A
facility, in whole or in part, must be located in the
municipality or in another municipality if the other municipality
gives written consent. + }
  (f) To mortgage and pledge any or all facilities or any part or
parts thereof, whether then owned or thereafter acquired, and to
pledge the revenues, proceeds and receipts or any portion thereof
from a facility as security for the payment of the principal of
and interest on any bonds so issued.
  (g) To refund outstanding obligations incurred by an enterprise
to finance the cost of a facility when the governing body finds
that such refinancing is in the public interest.
  (h) To pay compensation for professional services and other
services as the governing body shall deem necessary to carry out
the purposes of ORS 468.263 to 468.272.
  (i) To acquire and hold obligations of any kind to carry out
the purposes of ORS 468.263 to 468.272.
  (j) To invest and reinvest funds under its control as the
governing body shall direct.
  (k) To enter into contracts and execute any agreements or
instruments and to do any and all things necessary or appropriate
to carry out the purposes of ORS 468.263 to 468.272.
   { +  (L) To acquire, own, sell, assign or otherwise hold legal
or equitable title to or an interest in pollution control
facilities or hold federal tax ownership of pollution control
facilities. + }
  (2) The county shall not have the power to operate any facility
as a business other than as  { + owner pursuant to subsection
(1)(L) of this section or as  + }lessor or seller, nor shall it
permit any funds derived from the sale of bonds to be used by any
lessee or purchaser of a facility as working capital.
   { +  (3) Counties may jointly exercise any power or authority
granted under ORS 468.263 to 468.272, including, without
limitation, the power to borrow money or issue bonds or notes.
  (4) For the purpose of exercising the power and authority
granted under ORS 468.263 to 468.272, a county is not subject to
the requirements of ORS chapter 279. + }
                         ----------