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 1263
A-Engrossed
Senate Bill 63
Ordered by the Senate March 12
Including Senate Amendments dated March 12
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senator-elect Ken Messerle
for Association of Oregon Counties)
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.
Creates Disaster Relief Fund to fund restoration of
infrastructure and public services after disaster. { - Allows
transfer of one-half of one percent of highway taxes to Highway
Reserve Account within Disaster Relief Fund. - } Specifies
purposes for which moneys shall be expended. { + Allows Economic
and Community Development Department to use Special Public Works
Fund for loans or grants to municipalities to cover local
matching fund requirement for federal disaster relief. Limits
grants for local matching funds to $2.5 million in any
biennium. + }
A BILL FOR AN ACT
Relating to disaster relief; creating new provisions; amending
ORS 285B.410, 285B.419 and 285B.455; and appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 3 of this 2001 Act are added to
and made a part of ORS 401.260 to 401.325. + }
SECTION 2. { + (1) The Legislative Assembly declares that
disaster relief is a matter of statewide importance. The
Legislative Assembly further declares that disaster relief is
composed of three primary components:
(a) The Disaster Relief Fund;
(b) Hazard mitigation; and
(c) Disaster preparedness.
(2) The Legislative Assembly intends, by the enactment of
section 3 of this 2001 Act, to take the initial step to provide a
comprehensive statewide disaster relief program. Establishment of
a statewide disaster relief fund will assist local governments to
provide the moneys necessary to share in the costs of disaster
relief and to secure federal disaster relief assistance. + }
SECTION 3. { + (1) The Disaster Relief Fund is established
within the State Treasury, separate and distinct from the General
Fund. The fund shall consist of moneys transferred to the fund,
moneys appropriated to the fund by the Legislative Assembly,
gifts and grants made to the fund and interest earned on moneys
in the fund.
(2) Moneys in the fund are continuously appropriated to the
Office of Emergency Management. The moneys in the fund may be
expended only to pay expenses incurred for the repair,
replacement or reconstruction of public infrastructure or the
restoration of essential public services when either is necessary
as a result of an emergency. Allowable expenditures include, but
are not limited to:
(a) Providing a share of the state or local moneys required to
meet a matching funds requirement imposed by the federal
government for receipt of federal assistance following an
emergency; and
(b) Matching moneys provided by local governments for
restoration of essential public services disrupted by an
emergency that does not qualify for federal assistance.
(3) The Office of Emergency Management, the Economic and
Community Development Department, the Association of Oregon
Counties and the League of Oregon Cities shall jointly establish
guidelines for the use and expenditure of moneys in the fund. The
Office of Emergency Management shall consult with the Special
Districts Association of Oregon and the Oregon Ports Group in the
development of guidelines for the use and expenditure of moneys
in the fund. + }
SECTION 4. ORS 285B.410 is amended to read:
285B.410. As used in ORS 285B.410 to 285B.479, unless the
context requires otherwise:
(1) 'Municipality' means a city, a county, a port incorporated
under ORS 777.010 and 777.050, the Port of Portland created by
ORS 778.010, a metropolitan service district organized under ORS
chapter 268, a domestic water supply district organized under ORS
chapter 264, a water authority or sanitary authority organized
under ORS 450.600 to 450.989, a water improvement district
organized under ORS chapter 552, a water control district
organized under ORS chapter 553, a sanitary district organized
under ORS 450.005 to 450.245, a county service district organized
under ORS chapter 451 or a tribal council of an Indian tribe in
this state.
(2) 'Infrastructure project' means:
(a) A project for the construction of sewage treatment works,
solid waste disposal sites, water supply works, roads, public
transportation, railroad industrial spurs or sidings or other
facilities that comprise the physical foundation for industrial
and commercial activity. The costs of property acquisition
directly related to the infrastructure project and acquisition of
easements or rights of way necessary to accomplish construction
of the infrastructure project are eligible for assistance under
ORS 285B.410 to 285B.479. The costs of activities related to
performing an environmental evaluation of a brownfield are
eligible for assistance under ORS 285B.416 (2) and 285B.455 (5).
Purchases of off-site property for project-related purposes such
as wetland mitigation or other uses not directly related to the
infrastructure are not eligible for assistance. As used in this
paragraph, 'brownfield' and 'environmental evaluation' have the
meanings given those terms respectively in ORS 285A.185 and
285A.188.
(b) A project, in consultation with the Department of
Transportation and other affected agencies, for the acquisition,
reconstruction or rehabilitation of an abandoned railroad line or
railroad line that has been designated by the owner and operator
thereof as subject to abandonment within a three-year period
pursuant to federal law and regulations governing abandonment of
common carrier railroad lines. The project may include operation
or maintenance costs if the project also includes acquisition,
reconstruction or rehabilitation.
(c) A safe drinking water project, in consultation with the
Water Resources Department, the Health Division of the Department
of Human Services or the Department of Land Conservation and
Development, for improving a drinking water system for the
purpose of achieving or maintaining compliance with applicable
state or federal drinking water quality regulations.
(d) A project for the acquisition, construction or development
of community facilities, including the acquisition of land, the
construction, acquisition, renovation or reconstruction of
buildings, structures and other real property and the acquisition
or construction of related equipment and fixtures. ' Community
facilities' includes facilities that are owned by a municipality
and are operated by either the municipality or a person under a
management contract or operating agreement with the municipality.
{ + (e) A project, as specified by rule of the Economic and
Community Development Department, resulting from an emergency as
defined in ORS 401.025. + }
(3) 'Public transportation' includes public depots, public
parking, public docks, public wharves, railroads and airport
facilities.
(4) 'Roads' includes:
(a) Ways described as streets, highways, throughways or alleys;
(b) Road related structures that are in the right of way such
as tunnels, culverts or similar structures; and
(c) Structures that provide for continuity of the right of way
such as bridges.
(5) 'Sewage treatment works' includes all facilities necessary
for collecting, pumping, treating and disposing of sanitary or
storm sewage.
(6) 'Solid waste disposal site' has the meaning given to the
term 'disposal site' by ORS 459.005.
(7) 'Water supply works' includes all facilities necessary for
tapping natural sources of domestic and industrial water,
treating and protecting the quality of the water and transmitting
it to the point of sale to any public or private agency for
domestic, municipal and industrial water supply service.
(8) 'Urban infrastructure projects' includes all those projects
located in whole or in part within the acknowledged Portland
Metropolitan Area Regional Urban Growth Boundary, and the
acknowledged urban growth boundaries of the cities of Eugene,
Springfield, Salem, Keizer or Medford or projects that will
principally benefit these areas. The Director of the Economic and
Community Development Department is authorized to resolve
situations left in question by this definition.
(9) 'Nonurban infrastructure projects' includes all those
projects which do not meet the definition of urban infrastructure
projects.
SECTION 5. ORS 285B.419 is amended to read:
285B.419. (1) The Economic and Community Development Department
shall adopt rules and policies for the administration of the
Special Public Works Fund. Insofar as practicable, the
department's rules shall provide that infrastructure projects
that meet the following criteria receive priority for financial
assistance:
(a) Provide for the establishment or enlargement of
economically viable industries, with reasonable long term growth
prospects, including opportunities for innovative new industries
or for continuance of existing basic industries.
(b) Result in a net benefit to the state in the long term and
not require continuing state subsidies.
(c) Utilize existing public and private assets, including
infrastructure, human resources and plant and equipment.
(d) Improve the conditions of the economically disadvantaged
and increase the number of jobs that increase average incomes.
(e) Support the development of businesses owned by women and
members of minority groups.
(f) Harness Oregon's comparative advantage with emphasis on the
growth and development of existing, in-state businesses,
especially small businesses.
(g) Direct assistance to projects that assist businesses
selling goods and services in markets for which national or
international competition exists and prohibit assistance to
infrastructure projects that primarily focus on relocating
business or economic activity from one part of the state to
another.
(h) Result in the economic revitalization of communities.
(i) Are funded and otherwise supported to the maximum extent
possible by private resources.
(j) Result in business growth or expansion which would not
occur in Oregon without an investment from the Special Public
Works Fund.
(2)(a) The Economic and Community Development Department shall
manage the Special Public Works Fund and any expenditures from
its accounts and transfers between its accounts so that the fund
value shall be equal to at least 50 percent of lottery revenues
actually transferred to the fund plus interest on such amounts
compounded annually at five percent. The fund value shall be
determined by summing the cash reserves and the outstanding
principal amount of loans to municipalities. Any principal
amounts of loans forgiven shall be subtracted from the value of
the fund. The value of the fund shall include moneys in the fund
that are pledged to the repayment of state bonds.
(b) The department shall quarterly certify the value of the
fund to the State Treasurer.
(c) If necessary to insure repayment of bonds issued under ORS
285B.410 to 285B.479, the Economic and Community Development
Department is authorized to reduce the value of the fund to less
than the limit provided in paragraph (a) of this subsection if
the department:
(A) Finds that without such a reduction in fund value, bonds
secured by the fund are likely to be in default; and
(B) Imposes a moratorium on grants until the requirements of
paragraph (a) of this subsection are met.
(3) { + (a) + } Not more than 100 percent of the total cost of
any infrastructure project shall be financed from the Special
Public Works Fund.
{ + (b) For purposes of a project described in ORS 285B.410
(2)(e), the total cost described in paragraph (a) of this
subsection is the total local matching funds requirement for the
federal disaster relief assistance committed to the project. + }
(4) The department may commit moneys in the Special Public
Works Fund or reserve future income to the fund for disbursal in
future years under ORS 285B.440 (4). The department shall commit
or reserve moneys under this subsection only after:
(a) Allowing for contingencies;
(b) Finding that there will be sufficient unobligated net
income to the fund to make such future payments. Such a finding
shall be based on financial plans which are consistent with the
financial requirements of subsections (2) and (4) of this
section; and
(c) Providing in any contract for such commitment that the
liability of the state to make such annual payments shall be
contingent on the availability of moneys in the Special Public
Works Fund.
(5) In assisting local governments with infrastructure
projects, the department shall cooperate to the maximum extent
possible with other state agencies financing infrastructure
projects, including but not limited to the Department of
Environmental Quality, the Water Resources Department and the
Department of Transportation.
(6) The department shall notify the Housing and Community
Services Department of any proposed Special Public Works Fund
project with a related workforce increase at the time the
department receives the completed application for the project.
SECTION 6. { + Section 7 of this 2001 Act is added to and made
a part of ORS 285B.410 to 285B.479. + }
SECTION 7. { + (1) For the purposes of a project described in
ORS 285B.410 (2)(e), the Economic and Community Development
Department may lend or grant moneys in the Special Public Works
Fund to provide local matching funds to a municipality for
infrastructure projects to which available federal disaster
relief assistance is committed.
(2) ORS 285B.413 (1) and (2), 285B.419 (1), 285B.434 (2), (3),
(4), (5), (7) and (8), 285B.464 and 285B.467 (2) and (8) do not
apply to the application of a municipality seeking local matching
funds for a project eligible under ORS 285B.410 (2)(e). + }
SECTION 8. ORS 285B.455 is amended to read:
285B.455. (1) There is created the Special Public Works Fund,
separate and distinct from the General Fund. All moneys credited
to the Special Public Works Fund are appropriated continuously
and shall be used for the purposes outlined in ORS 285B.410 to
285B.479. There shall be credited to the Special Public Works
Fund, money appropriated to the fund by the Legislative Assembly,
earnings on the fund, repayment of financial assistance and bond
proceeds as authorized under ORS 285B.410 to 285B.479.
(2) Moneys in the Special Public Works Fund, with the approval
of the State Treasurer, may be invested as provided by ORS
293.701 to 293.820 and the earnings from such investments shall
be credited to the account in the Special Public Works Fund
designated by the Economic and Community Development Department.
(3) The Economic and Community Development Department shall be
the agency for the State of Oregon for the administration of the
Special Public Works Fund.
(4) The department may establish such other accounts within the
Special Public Works Fund for the payment of project costs,
reserves, debt service payments, credit enhancement,
administration and operation expenses or any other purpose
necessary to carry out ORS 285B.410 to 285B.479.
(5) Out of moneys in the Special Public Works Fund, the
department may { + :
(a) + } Make technical assistance grants and loans to
municipalities of less than 5,000 residents. A technical
assistance grant shall not exceed $10,000. A technical assistance
loan shall not exceed $20,000. No more than $250,000 or one
percent of the value of the fund, whichever is less, shall be
expended on technical assistance grants and loans in any
biennium.
{ + (b) Make grants to municipalities to provide local
matching funds for the purposes of a project described in ORS
285B.410 (2)(e) in an amount that does not exceed $2.5 million in
any biennium. + }
SECTION 9. { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Office of Emergency
Management of the Department of State Police, for the biennium
beginning July 1, 2001, out of the General Fund, the sum of $1
for the purpose of carrying out sections 2 and 3 of this 2001
Act. The sum appropriated by this section shall be deposited in
the Disaster Relief Fund. + }
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