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 722
A-Engrossed
Senate Bill 292
Ordered by the Senate March 7
Including Senate Amendments dated March 7
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 Governor John A. Kitzhaber,
M.D., for Economic and Community Development Department)
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.
Removes revenue bond limit for certain bonds financing
municipal infrastructure projects.
Authorizes Economic and Community Development Department to
contract directly with Oregon Downtown Development Association
and Rural Development Initiatives for delivery of certain support
services to municipalities. Exempts contracts from certain public
contract requirements.
Eliminates urban/rural financing split for infrastructure and
water projects. Eliminates requirement for quarterly valuation of
Special Public Works Fund and Water Fund.
{ - Modifies approved locations for small business centers to
include state universities. - }
Modifies limit on expenditures for grants and loans from
Special Public Works Fund.
{ + Repeals requirement for biennial report to Legislative
Assembly by Port of Portland. + }
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to economic development; creating new provisions;
amending ORS 285A.055, 285A.075, 285A.200, 285A.227, 285A.264,
285A.276, 285A.666, 285A.669, 285A.672, 285A.675, 285A.678,
285A.681, 285A.684, 285A.690, 285A.693, 285A.699, 285A.702,
285A.708, 285A.711, 285B.239, 285B.410, 285B.416, 285B.419,
285B.422, 285B.425, 285B.443, 285B.455, 285B.461, 285B.467,
285B.479, 285B.560, 285B.563, 285B.578, 285B.581 and 777.195;
repealing ORS 285B.458, 285B.596 and 778.240; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + ORS 285B.458, 285B.596 and 778.240 are
repealed. + }
SECTION 2. ORS 285A.055 is amended to read:
285A.055. Prior to the approval of bond financing of economic
development projects under ORS 285B.320 to 285B.377, the making
of a loan under ORS 285A.666 to 285A.732 or the making of any
loan or the granting of any moneys from any source { - except
for those allocated under chapter 777, Oregon Laws 1985 - } , the
Oregon Economic and Community Development Commission shall:
(1) Determine that the action is cost effective, considering
both major public expenses and major public benefits;
(2) Find that the project will produce goods or services which
are sold in markets for which national or international
competition exists or, if the project is to be constructed and
operated by a nonprofit organization, that the project will not
compete with local for-profit businesses;
(3) Determine that the action is the best use of the moneys
involved, considering other pending applications for those
moneys;
(4) Find that the project involved is consistent with the
Economic and Community Development Department's comprehensive
policy and programs;
(5) Find that the project involved is consistent with
applicable adopted local economic development plans; and
(6) Provide for public notice of, and public comment on, the
action.
SECTION 3. ORS 285A.075 is amended to read:
285A.075. (1) The Economic and Community Development
Department, through research, promotion and coordination of
activities in this state, shall foster the most desirable growth
and geographical distribution of agriculture, industry and
commerce in the state. The department shall serve as a central
coordinating agency and clearinghouse for activities and
information concerning the resources and economy of the state.
(2) The department shall have no regulatory power over the
activities of private persons. Its functions shall be solely
advisory, coordinative and promotional.
(3) The department shall administer the state's participation
in the federal Community Development Block Grant funding program
authorized by 42 U.S.C. 5301 et seq.
(4) In order to accomplish the purposes of ORS chapters 285A
and 285B and ORS 329.905 to 329.975, the department may expend
moneys duly budgeted to pay the travel and various other expenses
of industrial or commercial site location agents, film or video
production location agents, business journal writers, elected
state officials or other state personnel whom the Director of the
Economic and Community Development Department determines may
promote the purposes of this subsection.
(5) In accordance with applicable provisions of ORS 183.310 to
183.550, the department may adopt rules necessary for the
administration of laws that the department is charged with
administering.
(6) ORS 276.428, 279.021, 279.310 to 279.322, 279.334, 279.336,
279.338, 279.340, 279.342, 279.348 to 279.363, 279.365, 279.545
to 279.650, 279.712, 279.826, 282.020, 282.050, 282.210, 282.220,
282.230 and 283.140 do not apply to the department's operation of
foreign trade offices outside the state.
{ + (7) The department may enter into contracts for personal
services as necessary or appropriate to carry out the duties,
functions and powers vested in the department by law.
(8)(a) The department may contract directly with the Oregon
Downtown Development Association, or its successor entity, to
provide downtown development and redevelopment assistance and
similar services to municipalities in Oregon.
(b) The department may contract directly with Rural Development
Initiatives, or its successor entity, to provide training,
technical assistance, planning assistance and other support and
services to municipalities in Oregon to build economic and
community development capacity.
(c) Contracts entered into under this subsection are exempt
from the requirements of ORS chapter 279.
(9) If the director determines that moneys are available, the
department may transfer funds from the Special Public Works Fund
created under ORS 285B.455 or from the Water Fund established
under ORS 285B.563 to a state agency to provide financial
assistance in the delivery of technical assistance or other
services to one or more water systems for evaluation of water
quality or services or for planning the improvement of water
quality or services. The department may structure the financial
assistance under this subsection in the form of an interagency
grant or loan or in any other manner the director considers
necessary or appropriate. + }
SECTION 4. ORS 285A.200 is amended to read:
285A.200. (1) The Economic and Community Development Department
may accept gifts of money or other property from any public or
private agency or person made for the purpose of assisting the
department to carry out any programs or laws that the department
is charged with administering. Moneys so received shall be paid
into an appropriate fund or account. Property so received shall
be used for the purposes for which that property is given.
(2) The department may apply for, receive from the United
States or any of its agencies, and disburse or supervise the
disbursement of federal aid for the purposes for which the aid is
provided. The department may also disburse or supervise the
disbursement of funds provided by the State of Oregon for
expenditure as a condition of receiving the federal aid.
{ + (3) The department may assess and charge fees for loans
made from any of its funds or accounts. + }
SECTION 5. ORS 285A.227 is amended to read:
285A.227. (1) There is created within the State Treasury,
separate and distinct from the General Fund, the Oregon Community
Development Fund. The fund is created to provide a flexible
funding source for financing those programs and projects that are
determined by the Oregon Economic and Community Development
Commission under the policies, criteria and standards set forth
in ORS 285A.020, 285A.045 and 285A.055 to further economic and
community development. { + The Economic and Community
Development Department may finance programs and projects
determined by the commission to further economic and community
development by making grants or loans using moneys in the fund.
The department may enter into contracts for personal services as
necessary or appropriate to implement programs and projects
determined by the commission to further economic and community
development using moneys in the fund. + } The Oregon Community
Development Fund shall consist of all moneys credited to the
fund, including moneys from the Administrative Services Economic
Development Fund, federal funds collected or received, and fees,
moneys or other revenues, including Miscellaneous Receipts,
collected or received by the Economic and Community Development
Department, and all interest earnings that accrue to the fund.
The moneys in the Oregon Community Development Fund are
continuously appropriated to the Economic and Community
Development Department to promote economic and community
development.
(2) The Oregon Economic and Community Development Commission,
by rule, shall adopt standards, objectives and criteria for use
of the moneys in the Oregon Community Development Fund.
SECTION 6. ORS 285A.264 is amended to read:
285A.264. The Oregon Tourism Commission shall perform the
following duties:
(1) Serve as a body to advise governmental bodies and agencies
and private persons on the development and implementation of
state policies and programs relating to tourism and recreation
and to assist in the coordination of these activities.
(2) Advise the Governor and direct the administrator of the
Oregon Tourism Program on all matters pertaining to tourism.
(3) Prepare, approve and periodically revise and submit to the
Governor, the Director of the Economic and Community Development
Department and tourism industry associations a recommended
comprehensive marketing plan for review by the Governor, the
director and the tourism industry associations. The comprehensive
marketing plan shall be directed toward the accomplishment of at
least the following purposes:
(a) Maximizing the return on public and private investment in
tourism.
(b) Encouraging longer stays by visitors to Oregon.
(c) Reducing seasonal fluctuations in travel and tourist
related industries.
(d) Encouraging visitors to be destination oriented in this
state.
(e) Encouraging visitors from foreign countries to come to
Oregon.
(f) Encouraging Oregonians to vacation in Oregon.
(4) Develop a biennial budget for all operations of the tourism
commission and the tourism program and submit the budget to the
Governor.
(5) Seek and receive the views of all levels of government and
the private sector with respect to state programs and policies
for the promotion and assistance of tourism.
(6) Prepare and adopt administrative rules necessary for the
operation of the programs of the tourism commission.
(7) Cooperate with educational institutions of the state in the
development of educational programs preparing persons for
supporting and leadership positions critical to the development
of an economically strong and socially beneficial tourism
industry in Oregon.
(8) Cooperate with and provide expertise for communities and
tourism marketing associations in the development and promotion
of their tourism attractions and businesses.
{ + (9) At the discretion of the tourism commission, exercise
directly any power or authority vested in the tourism
program. + }
SECTION 7. ORS 285A.276 is amended to read:
285A.276. (1) The Public-Private Partnership is hereby
established as a program of the Oregon Tourism Commission.
(2) The tourism commission shall adopt a biennial budget for
the Public-Private Partnership using the classifications of
expenditures and revenues required by ORS 291.206 (1).
(3) The tourism commission shall adopt the budget for the
Public-Private Partnership only after holding a public hearing on
the proposed budget. At least 15 days prior to any public hearing
on the proposed budget, the tourism commission shall give notice
of the hearing to all persons known to be interested in the
proceedings of the tourism commission and to any person who
requests notice.
(4) All moneys collected, received or appropriated for the
purposes of the Public-Private Partnership shall be deposited in
an account established in a depository bank insured by the
Federal Deposit Insurance Corporation. In a manner consistent
with the requirements of ORS chapter 295, the chair of the
tourism commission shall ensure that sufficient collateral
secures any amount of funds on deposit that exceeds the limits of
the coverage of the Federal Deposit Insurance Corporation.
Subject to approval by the tourism commission, the commission may
invest moneys collected or received for the Public-Private
Partnership. Investments made by the tourism commission are
limited to the types of investments listed in ORS 294.035 (1) to
(9). Interest earned from any amounts invested shall be made
available to the tourism commission in a manner consistent with
the biennial budget for the Public-Private Partnership.
(5) Moneys in the account established under subsection (4) of
this section for the Public-Private Partnership shall consist of:
(a) Gifts, grants and other contributions from private and
nonprofit entities;
(b) Grants, loans and other revenue transfers from public
entities, including the State of Oregon; { - and - }
(c) Interest earned on moneys in the account { + ; and
(d) Revenues generated by the tourism commission or by Oregon
Tourism Program activities + }.
(6) Notwithstanding ORS chapter 279, all expenditures from the
account established under subsection (4) of this section shall be
in conformance with the duties of the tourism commission set
forth in ORS 285A.264. All expenditures from the account are
exempt from any state expenditure limitation. { + The
Public-Private Partnership is exempt from ORS 291.050 to
291.060. + } The tourism commission shall follow generally
accepted accounting principles and keep such financial and
statistical information that is necessary to completely and
accurately disclose the financial condition of the account as may
be required by the Secretary of State.
SECTION 8. ORS 285A.666 is amended to read:
285A.666. As used in ORS 285A.666 to 285A.732, unless the
context requires otherwise:
(1) 'Business development project' means the engineering,
improvement, rehabilitation, construction, operation or
maintenance, in whole or in part, including the preproject
planning costs of any business development project authorized by
ORS 777.250 (1). The term does not include a flexible
manufacturing space project.
(2) 'Division' means the Ports Division of the Economic and
Community Development Department.
(3) 'Flexible manufacturing space project' means a project for
the acquisition, construction, improvement or rehabilitation, in
whole or in part, of any building suitable for the conduct of
manufacturing processes and, by design, able to be readily
modified when necessary to accommodate the operations of the
tenants of the building. The term includes any preproject
planning activities for a flexible manufacturing space project.
(4) 'Fund' means the Oregon Port Revolving Fund.
(5) 'Port development project' means the engineering,
improvement, rehabilitation, construction, operation or
maintenance, in whole or in part, including the preproject
planning costs of any project authorized by ORS 777.105 to
777.258, except projects authorized primarily by ORS 777.250 (1).
(6) 'Port district' means any municipal corporation
incorporated, or proposed to be incorporated, pursuant to ORS
777.005 to 777.725 and 777.915 to 777.953 or ORS chapter 778.
{ + (7) 'Project' means a port development project, a
business development project or a flexible manufacturing space
project. + }
SECTION 9. ORS 285A.669 is amended to read:
285A.669. Any Oregon port district may file with the Oregon
Economic and Community Development Commission an application to
borrow money from the Oregon Port Revolving Fund for a { - port
development - } project as provided in ORS 285A.666 to 285A.732.
The application shall be filed in such a manner and contain or be
accompanied by such information as the commission may prescribe.
SECTION 10. ORS 285A.672 is amended to read:
285A.672. (1) Upon receipt of an application filed as provided
in ORS 285A.669, the Oregon Economic and Community Development
Commission shall determine whether the plans and specifications
for the proposed { - port development - } project set forth in
or accompanying the application are satisfactory. If the
commission determines that the plans and specifications are not
satisfactory, the commission may within 60 days:
(a) Reject the application.
(b) Require the applicant to submit additional information of
the plans and specifications as may be necessary.
(2) The commission shall charge and collect from the applicant,
at the time the application is filed, a fee of not to exceed
$100. Moneys referred to in this subsection shall be paid into
the Oregon Port Revolving Fund.
SECTION 11. ORS 285A.675 is amended to read:
285A.675. Nothing in ORS 285A.666 to 285A.732 is intended to
prevent an applicant from employing a private engineering firm
and construction firm to perform the engineering and construction
work on a proposed { - port development - } project.
SECTION 12. ORS 285A.678 is amended to read:
285A.678. The Oregon Economic and Community Development
Commission may approve a { - port development - } project
proposed in an application filed as provided in ORS 285A.669, if,
after investigation, the commission finds that:
(1) The proposed { - port development - } project is
feasible and a reasonable risk from practical and economic
standpoints, and the loan has reasonable prospect of repayment.
(2) Moneys in the Oregon Port Revolving Fund are or will be
available for the proposed { - port development - } project.
(3) There is a need for the proposed { - port development - }
project, and the applicant's financial resources are adequate to
provide the working capital needed to { - assure - }
{ + ensure + } success of the project.
(4) The applicant has received all necessary permits required
by federal, state or local agencies.
(5) The applicant has not received or entered into a contract
or contracts exceeding $1.4 million with the commission, under
authority of ORS 285A.666 to 285A.732, for the previous 365 days,
and provided that no applicant may have more than $2 million in
outstanding loans at any one time.
(6) The standards under ORS 285A.055 have been met.
SECTION 13. ORS 285A.681 is amended to read:
285A.681. If the Oregon Economic and Community Development
Commission approves the project, the commission, on behalf of the
state, and the applicant may enter into a loan contract of not
more than $700,000 { - , - } { + that is + } secured by good
and sufficient collateral { + . + } { - , which shall set
forth, - } { + The loan contract shall set forth, + } among
other matters:
(1) A plan for repayment by the applicant to the Oregon Port
Revolving Fund { + of + } moneys borrowed from the fund
{ - used - } for the
{ - port development project, flexible manufacturing space
project or business development - } project and interest on
{ - such moneys used - } { + the moneys + } at a rate of
interest for port development projects and flexible manufacturing
space projects of not less than five percent or for business
development projects of not less than one percent less than the
prevailing interest rate on United States Treasury bills of
comparable term, as determined by the commission. The repayment
plan, among other matters:
(a) Shall provide for commencement of repayment by the port
district of moneys used for the project and interest thereon no
later than one year after the date of the loan contract or at
such other time as the commission may provide. However, upon
approval by the commission, a repayment plan for a flexible
manufacturing space project may provide that no interest shall
accrue until the building is at least 25 percent occupied or
until three years after the date of the loan contract, whichever
is earlier.
(b) May provide for reasonable extension of the time for making
any repayment in emergency or hardship circumstances if approved
by the commission.
(c) Shall provide for such evidence of debt assurance of, and
security for, repayment by the applicant as are considered
necessary by the commission.
(d) Shall set forth a schedule of payments and the period of
loan which shall not exceed the usable life of the contracted
project or 20 years from the date of the contract, whichever is
less, and shall also set forth the manner of determining when
loan payments are delinquent. The payment schedule shall include
repayment of interest which accrues during any period of delay in
repayment authorized by paragraph (a) of this subsection, and the
payment schedule may require payments of varying amounts for
collection of such accrued interest.
(e) Shall set forth a procedure for formal declaration of
default of payment by the commission, including formal
notification of all relevant federal, state and local agencies;
and further, a procedure for notification of all relevant
federal, state and local agencies that declaration of default has
been rescinded when appropriate.
(f) Shall provide for partial or complete repayment, in excess
of scheduled payments, of any outstanding principal loan amount
without penalty. If any prepayment is made, that amount shall not
be included in any computation for the purposes of ORS 285A.678
(5).
(2) Provisions satisfactory to the commission for field
engineering and inspection, the commission to be the final judge
of completion of the contract.
(3) That the liability of the state under the contract is
contingent upon the availability of moneys in the Oregon Port
Revolving Fund for use in the project.
(4) Such further provisions as the commission considers
necessary to { - insure - } { + ensure + } expenditure of the
funds for the purposes set forth in the approved application.
(5) That the commission may institute appropriate action or
suit to prevent use of the facilities of a project financed by
the Oregon Port Revolving Fund if the { - port - }
{ + applicant + } is delinquent in the repayment of any moneys
due the Oregon Port Revolving Fund.
SECTION 14. ORS 285A.684 is amended to read:
285A.684. If the Oregon Economic and Community Development
Commission approves a loan for a { - port development - }
project, the commission shall pay moneys for { - such - }
{ + the + } project from the Oregon Port Revolving Fund, in
accordance with the terms of the loan contract as prescribed by
the commission.
SECTION 15. ORS 285A.690 is amended to read:
285A.690. (1) The Oregon Economic and Community Development
Commission may institute proceedings to foreclose any lien for
delinquent loan payments.
(2) If a port district fails to comply with a contract entered
into pursuant to ORS 285A.681, the commission may seek
appropriate legal remedies to secure the loan, and may contract
with any port project developer for { - continuance - }
{ + continuation + } of the { - port development - } project
and for repayment of moneys from the Oregon Port Revolving Fund
used therefor and interest thereon.
(3) The commission may also provide by contract or otherwise
for a { - port development - } project until the project is
assumed by the new port project developer.
SECTION 16. ORS 285A.693 is amended to read:
285A.693. A port district that enters into a contract with the
Oregon Economic and Community Development Commission for a
{ - port development - } project and repayment as provided in
ORS 285A.681 may obtain moneys for repayment to the Oregon Port
Revolving Fund under the contract in the same manner as other
moneys are obtained for purposes of the port district or other
moneys available to the developer.
SECTION 17. ORS 285A.699 is amended to read:
285A.699. Except as provided in ORS 285A.702, if any { - port
development - } project is refinanced or financial assistance is
obtained from other sources after the execution of the loan from
the state, all such funds shall be { - first - } used to repay
the state { + first + } if such refinancing or financial
assistance applies only to the { - port development - }
project authorized and does not include any subsequent addition,
expansion, improvement or further development.
SECTION 18. ORS 285A.702 is amended to read:
285A.702. (1) The Oregon Economic and Community Development
Commission may authorize funds from the Oregon Port Revolving
Fund to be used in appropriate joint governmental participation
projects or as match money with any port, state or federally
funded { - port development - } project authorized within a
port district, subject to the stipulations of ORS 285A.666 to
285A.732.
(2) Any application for a loan under this section shall be in
such form as the commission prescribes and shall furnish such
proof of federal, state or local approval as appropriate for
funding of the { - port development - } project.
(3) The total amount of moneys loaned from the fund for
federal, state or local joint { - port development - } project
purposes shall not exceed $700,000 per project.
SECTION 19. ORS 285A.708 is amended to read:
285A.708. (1) There is created within the State Treasury a
revolving fund known as the Oregon Port Revolving Fund, separate
and distinct from the General Fund. Moneys in this fund are
continuously appropriated to the Oregon Economic and Community
Development Commission for the following purposes:
(a) Administrative expenses of the commission in processing
applications and investigating proposed { - port
development - } projects.
(b) Payment of loans to port districts pursuant to ORS 285A.666
to 285A.732.
(c) Administrative expenses of the Ports Division relating to
ports. In any one year, administrative expenses charged under
this paragraph may not be greater than the total revenues
received in that year from fees provided for in subsection (2)(a)
of this section, plus three percent of the total asset value of
the fund.
(2) The fund created by subsection (1) of this section shall
consist of:
(a) Application fees required by ORS 285A.672 (2).
(b) Repayment of moneys loaned to port districts or others from
the Oregon Port Revolving Fund, including interest on such
moneys.
(c) Payment of such moneys as may be appropriated to the fund
by the Legislative Assembly.
(d) Moneys obtained from any interest accrued from such funds.
(3) Outstanding debt on the fund shall not exceed 95 percent of
all deposits, accounts payable, and other assets of the fund.
(4) No money shall be expended from the Oregon Port Revolving
Fund for any economic development study costing more than $25,000
unless a work plan and budget for such study has been provided to
the Joint Legislative Committee on Trade and Economic
Development.
SECTION 20. ORS 285A.711 is amended to read:
285A.711. All payments, receipts and interest from outstanding
indebtedness shall be retained in the Oregon Port Revolving Fund
and accumulated for new project disbursal, and repayment of funds
allocated pursuant to section 25, chapter 838, Oregon Laws 1977.
All interest earnings of the fund from whatever source shall be
retained and accumulated in the Oregon Port Revolving Fund and
shall be used for { - port development - } projects, and
repayment of funds allocated pursuant to section 25, chapter 838,
Oregon Laws 1977.
{ + NOTE: + } Sections 21 through 25 were deleted by
amendment. Subsequent sections were not renumbered.
SECTION 26. ORS 285B.239 is amended to read:
285B.239. Regional investment plans shall serve as a basis for
state financial assistance to projects to meet regional economic
and community development priorities. Each group of counties that
form a region shall submit a regional investment plan that at a
minimum shall include the following elements:
(1) An identification of short-term and long-term regional
economic and community development priorities;
(2) An analysis of the unique or significant resources that
provide the foundation for the regional investment plan;
(3) An analysis of barriers to implementation of the regional
investment plan and an identification of the means to overcome
those barriers;
(4) A long-term plan to implement the regional investment plan,
including necessary actions by:
(a) Local governments;
(b) The private sector;
(c) State government; and
(d) Federal government;
(5) A two-year implementation plan with { - a prioritized
list of projects and - } { + prioritized + } activities to be
undertaken or funded by the state from lottery proceeds and other
sources;
(6) A plan for involvement of disadvantaged and minority groups
in the region;
(7) Performance measurements for meeting the objective set
forth in ORS 285B.236 (2). Each region shall develop an
evaluation plan, as part of its regional investment plan, for
measuring and monitoring regional investment plan performance.
The evaluation plan shall include regional benchmarks for
monitoring achievement of the regional investment plans and
priorities. When regional benchmarks are established, interim
indicators of performance shall be determined after negotiation
between the regional board and the Oregon Economic and Community
Development Commission. The regional board shall periodically
submit performance reports to the county governing bodies in the
region, the Oregon Economic and Community Development Commission,
the Governor and the Legislative Assembly; and
(8) An overall strategy management and project implementation
plan that demonstrates that a region has the capacity to allocate
resources and insures that such resources are effectively used.
SECTION 27. 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. - }
{ + (1) 'Community facilities' means municipal facilities
that assist the economic and community development of the
municipality, as specified in rules adopted by the Economic and
Community Development Department, whether operated by the
municipality or by a person under a management contract or an
operating agreement with the municipality.
(2) 'Direct project management costs' means new expenses
incurred by a municipality solely to support, plan for and manage
an infrastructure project, funded in whole or in part through
financial assistance under ORS 285B.410 to 285B.479, during the
planning and construction phases of the project. + }
{ - (2) - } { + (3) + } '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. - }
{ + (4) '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. + }
{ - (3) - } { + (5) + } 'Public transportation' includes
public depots, public parking, public docks, public wharves,
railroads and airport facilities.
{ - (4) - } { + (6) + } '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) - } { + (7) + } 'Sewage treatment works' includes
all facilities necessary for collecting, pumping, treating and
disposing of sanitary or storm sewage.
{ - (6) - } { + (8) + } 'Solid waste disposal site' has the
meaning given to the term 'disposal site' by ORS 459.005.
{ - (7) - } { + (9) + } '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 28. ORS 285B.416 is amended to read:
285B.416. (1) For purposes of ORS 285B.410 to 285B.479, the
total project costs of an infrastructure project may include
costs for preliminary planning or legal, fiscal and economic
investigations, reports and studies to determine the economic and
engineering feasibility of the project. { - Such planning - }
{ + These + } costs may be paid for with a loan or grant from
the Special Public Works Fund, by technical assistance grants or
loans awarded to eligible municipalities, or by a municipality
itself.
(2) The engineering and architectural reports, studies,
surveys, designs, plans, working drawings and
specifications { + , and the direct project management costs + }
necessary in the construction of the infrastructure project shall
be eligible for financial assistance under ORS 285B.410 to
285B.479. Proposals for technical assistance grants shall be
processed under ORS 285B.419, 285B.428 (2)(a), 285B.437 (2) and
285B.440 (2) in the same manner as other project proposals.
SECTION 29. 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) - } { + (b) + } If necessary to { - insure - }
{ + ensure + } 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) Not more than 100 percent of the total cost of any
infrastructure project shall be financed from the Special Public
Works Fund.
(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 30. ORS 285B.422 is amended to read:
285B.422. (1) The Economic and Community Development Department
may provide financial assistance to municipalities for
infrastructure projects that are community facilities projects as
described in ORS 285B.410 { - (2)(d) - } .
(2) Before providing financial assistance for a community
facilities project, the Economic and Community Development
Department must find that:
(a) The municipality has demonstrated that the community
facilities project will provide long term benefits to the
municipality;
(b) The community facilities project will benefit a broad
cross-section of the municipality;
(c) There is a substantial local commitment to the community
facilities to be financed; and
(d) There is a need for the proposed community facilities
project, and the municipality's financial resources are adequate
to provide the working capital needed to ensure success of the
project.
(3) { + (a) + } Notwithstanding any other provision of ORS
285B.410 to 285B.479 { + and except as provided in this
subsection + }, community facilities projects shall be eligible
only for loans made with moneys derived from the sale of revenue
bonds issued under ORS 285B.467 or for loans made from the
Special Public Works Fund.
{ + (b) Grants from the Special Public Works Fund may be made
for a community facilities project that is an essential community
facilities project, as determined in accordance with rules
adopted by the department after consultation with the League of
Oregon Cities, the Association of Oregon Counties, the Oregon
Public Ports Association and Special Districts Association of
Oregon. + } { - No grants shall be made from the Special Public
Works Fund for the costs of a community facilities project. - }
Loans or grants from the Special Public Works Fund and loans from
the proceeds of revenue bonds issued under ORS 285B.467 may be
used to pay issuance costs and for the funding of any debt
service reserve for any revenue bonds issued under ORS 285B.467
to finance community facilities.
{ + (c) The department shall determine the maximum amount of
a grant to a municipality from the Special Public Works Fund for
an essential community facilities project. However, a grant may
not exceed 85 percent of the total project costs. + }
(4) ORS 285B.413 (1) and (2), 285B.419 (1), 285B.434 (2), (4)
and (5), 285B.464 and 285B.467 (2) and (8) do not apply to a
municipality applying for financial assistance for a community
facilities project.
SECTION 30a. ORS 285B.425 is amended to read:
285B.425. (1) There is established within the Special Public
Works Fund an account to be known as the Community Facilities
Account. All moneys in the Community Facilities Account are
continuously appropriated to the Economic and Community
Development Department for the purpose of providing financial
assistance to municipalities for community facilities projects.
(2) The Community Facilities Account shall consist of:
(a) Moneys appropriated to the Community Facilities Account by
the Legislative Assembly.
(b) Moneys transferred to the Community Facilities Account from
the federal government, other state agencies or local
governments.
(c) Repayment of financial assistance provided to
municipalities.
(d) Earnings on moneys in the Community Facilities Account.
(e) Any gifts or donations made to the State of Oregon for
deposit in the Community Facilities Account.
(3) Moneys in the Community Facilities Account shall be used to
provide financial assistance to municipalities for community
facilities projects by means of loans, { + grants, + } the
purchase of the bonds or other obligations of municipalities or
the guaranty of all or any portion of the obligations of a
municipality that are issued to finance a community facilities
project.
SECTION 31. ORS 285B.443 is amended to read:
285B.443. (1) Any contract under ORS 285B.437 (1)(a) to (e)
that includes provisions for a loan of state moneys to a
municipality or the purchase of a bond of a municipality by the
state shall include a plan for repayment by the municipality of
moneys borrowed from the Special Public Works Fund for an
infrastructure project and interest on those moneys at a rate
specified in the contract. The repayment plan:
(a) Shall provide for such evidence of debt assurance of, and
security for, repayment by the municipality as is considered
necessary by the Economic and Community Development Department.
(b) Shall set forth the allocation of special assessments or
contractual responsibility among the owners of benefited
properties for repayment to the municipality of the amount of the
loan.
(c) Shall provide for repayment during a period which shall not
exceed the usable life of the proposed project or 25 years,
whichever is less.
(2) Notwithstanding any other provision of law, or any
restriction on indebtedness contained in a charter, a
municipality may borrow from the Special Public Works Fund by
entering into a loan contract with the Economic and Community
Development Department. The contract may be payable:
(a) From the revenues of any infrastructure project, including
special assessment revenues;
(b) From amounts withheld under ORS 285B.449 (1);
(c) From the general fund of the municipality;
(d) From any combination of paragraph (a), (b) or (c) of this
subsection; or
(e) From any other sources.
(3) The loan contracts under subsection (2) of this section
shall be authorized by an ordinance { + , order or resolution + }
{ - which is - } adopted with not less than 14 days' prior
notice. Notice shall be published at least once in a newspaper of
general circulation within the municipality.
SECTION 32. 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 { + 285A.075
(9) and + } 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 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 - }
{ + $400,000 + } or one percent of the value of the fund,
whichever is less, shall be expended on technical assistance
grants and loans in any biennium.
SECTION 33. ORS 285B.461 is amended to read:
285B.461. { + (1) + } Out of the moneys in the Special Public
Works Fund the Economic and Community Development Department may
expend funds for the purposes of administering ORS 285B.410 to
285B.479. Administrative expenses of the department { - , - }
that are paid from the Special Public Works Fund { - , - }
shall not exceed four percent of the { - moneys allocated to
the fund in any biennium - } { + total assets of the fund
reduced by the bonded debt liabilities in any one year + }.
{ + (2) + } As used in this section, 'administrative expenses
' includes the department's costs for { + :
(a) + } Investigating, approving and monitoring municipalities
that apply for funding of infrastructure projects and servicing
and collecting outstanding loans and grants made to
municipalities { + ; and
(b) Contracting for planning and technical assistance and other
support services for municipalities + }.
SECTION 34. ORS 285B.467 is amended to read:
285B.467. (1) The Economic and Community Development Department
shall adopt by rule standards by which to determine the
eligibility for revenue bond financing under ORS 285B.467 to
285B.479 of infrastructure projects that have qualified under ORS
285B.419 to 285B.437 and 285B.449.
(2) In adopting rules establishing guidelines or criteria for
awarding loans or grants for drinking water projects, the
department shall coordinate the department's rulemaking process
with the Water Resources Department and the Health Division of
the Department of Human Services in order to assure that rules
adopted under this subsection are consistent with rules adopted
under ORS 431.120 and 541.845. The rules adopted under this
subsection shall:
(a) Require the installation of meters on all new service
connections to any distribution lines funded under ORS 285B.410,
285B.461, 285B.560 to 285B.599, 431.120, 541.700, 541.705,
541.755, 541.765, 541.830, 541.845 and this section; and
(b) Require a plan, to be adopted by the municipality, for
installation of meters on all service connections throughout the
drinking water system.
(3) Upon determining an infrastructure project eligible for
revenue bond financing under ORS 285B.467 to 285B.479, the
department shall forward the application to the State Treasurer,
who shall determine whether to issue revenue bonds.
(4) Notwithstanding ORS 285B.410 { - (2)(a) - }
{ + (3)(a) + } and 285B.416 (1), when an infrastructure project
is determined to be eligible for revenue bond financing under ORS
285B.467 to 285B.479, { + direct project management costs
and + } the costs for preliminary planning or legal, fiscal and
economic investigations, reports and studies to determine the
economic and engineering feasibility of the project are included
within the total project costs of the project and may be paid
from bond proceeds.
(5) Administrative expenses of the department in processing
applications and investigating proposed infrastructure projects
and bond sales shall not be derived from bond proceeds.
(6) The department may pledge all or any portion of the
existing or future assets and receipts of the Special Public
Works Fund to pay debt service on bonds issued pursuant to ORS
285B.410 to 285B.479. Such pledge shall take effect immediately,
without delivery of the pledged funds to third parties, and the
lien of the pledge shall be superior to all other liens of any
nature.
(7) The department is authorized to establish separate accounts
within the fund for separate bond issues.
(8) As used in this section, 'service connection' does not
include fire hydrants, fire sprinkler system connections, line
blow-offs and drains, stand-by emergency interties, valve
controlled drinking fountains and other similar intermittently
used connections.
SECTION 35. ORS 285B.479 is amended to read:
285B.479. (1) Revenue bonds issued under ORS 285B.467 to
285B.479:
(a) Shall not be payable from nor charged upon any funds other
than the revenue pledged to the payment thereof, except as
provided in this section, nor shall the state be subject to any
liability thereon. No holder or holders of such bonds shall ever
have the right to compel any exercise of the taxing power of the
state to pay any such bonds or the interest thereon, nor to
enforce payment thereof against any property of the state except
those moneys pledged therefor in the Special Public Works Fund,
under the provisions of ORS 285B.467 to 285B.479.
(b) Shall not constitute a charge, lien or encumbrance, legal
or equitable, upon any property of the state, except those moneys
paid to the Special Public Works Fund.
{ - (c) Shall not exceed, for all bonds outstanding, a total
principal amount of $200 million. - }
(2) { - No - } { + A + } bond shall { + not + } constitute
a debt of the state or a lending of the credit of the state
within the meaning of any constitutional or statutory limitation.
SECTION 36. ORS 285B.560 is amended to read:
285B.560. As used in ORS 285B.560 to 285B.599:
(1) 'Department' means the Economic and Community Development
Department.
{ + (2) 'Direct project management costs' means new expenses
incurred by a municipality solely to support, plan for and manage
an infrastructure project, funded in whole or in part through
financial assistance under ORS 285B.560 to 285B.599, during the
planning and construction phases of the project. + }
{ - (2) - } { + (3) + } 'Fund' means the Water Fund.
{ - (3) - } { + (4) + } 'Municipality' has the meaning
given that term in ORS 285B.410.
{ - (4) - } { + (5) + } 'Safe drinking water project' means
a project for constructing or improving a drinking water system
or a water development project, as defined in ORS 541.700 (6)(a),
(b) and (d) to (f), that is owned and operated by a municipality.
{ - (5) - } { + (6) + } 'Waste water system improvement
project' means a project for constructing or improving a system
for waste water collection or treatment, including storm drainage
systems.
{ - (6) - } { + (7) + } 'Water project' means a safe
drinking water project or a waste water system improvement
project.
SECTION 37. ORS 285B.563 is amended to read:
285B.563. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Water Fund. All
moneys in the fund are continuously appropriated to the Economic
and Community Development Department to provide financing for
water projects { + , including the direct project management
costs and for the purpose specified in ORS 285A.075 (9) + }.
(2)(a) Moneys in the Water Fund may be obligated to water
projects.
(b) Moneys shall be used primarily to make loans to
municipalities. The department may make a loan only if:
(A) The municipality applying for the loan certifies to the
department that adequate funds will be available to repay the
loan; and
(B) The department determines that the amount of the loan
applied for is based on a reasonable and prudent expectation of
the municipality's ability to repay the loan.
(c) The department may award a grant only if a loan is not
feasible due to:
(A) Financial hardship to the municipality, as determined by
the department, based on consideration of anticipated water
service charges or anticipated waste water service charges that
exceed the statewide average for such charges, the per capita
income of the municipality and such other factors as the
department by rule may establish; and
(B) Special circumstances of the water project.
(d) The department may determine the amount of grant or loan
funding on a case-by-case basis.
(3) The moneys in the fund may also be used to assist the
department in selling revenue bonds on behalf of municipalities
in order to carry out the purposes of ORS 285B.560 to 285B.599.
(4) With the approval of the State Treasurer, moneys in the
Water Fund may be invested as provided by ORS 293.701 to 293.820.
The earnings from such investments and other program income shall
be credited to the Water Fund.
(5) The Water Fund shall consist of:
(a) Moneys appropriated to the fund by the Legislative
Assembly.
(b) Moneys transferred to the fund by the Economic and
Community Development Department from the Special Public Works
Fund created by ORS 285B.455.
(c) Moneys transferred to the fund by the Water Resources
Commission from the Water Development Fund created by Article
XI-I(1) of the Oregon Constitution.
(d) Moneys from any federal, state or other grants.
(e) Proceeds of revenue bonds issued under ORS 285B.575.
(f) Earnings on the fund.
(6) The department shall administer the fund.
(7) The department shall adopt rules and policies for the
administration of the fund. The department shall coordinate its
rulemaking regarding safe drinking water projects with the Water
Resources Department and the Health Division of the Department of
Human Services. The rules adopted under this subsection for safe
drinking water projects shall:
(a) Require the installation of meters on all new service
connections to any distribution lines funded with moneys from the
fund or from the proceeds of revenue bonds issued under ORS
285B.572 to 285B.578.
(b) Require a plan, to be adopted by a municipality receiving
financial assistance from the fund, for installation of meters on
all service connections throughout the drinking water system not
later than two years after the completion of a safe drinking
water project.
(8)(a) The Economic and Community Development Department shall
manage the Water Fund and any expenditures from accounts in the
fund and transfers between 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 adding the cash reserves and the outstanding
principal amount of loans to municipalities. Any amount of loan
principal that is 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 certify to the State Treasurer
in each quarter the value of the fund. - }
{ - (c) - } { + (b) + } If necessary to ensure repayment of
bonds issued under ORS 285B.560 to 285B.599, the department may
reduce the value of the fund to less than the limit established
in paragraph (a) of this subsection when 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 satisfied.
(9)(a) The department may charge administrative costs to the
fund, but not to moneys segregated in the account created by
subsection (11) of this section, to pay for administrative
expenses incurred by the department { + .
(b) As used in this section, 'administrative expenses '
includes:
(A) The direct and administrative costs of + } { - for - }
processing applications, investigating water projects, monitoring
recipients of financing for water projects and servicing and
collecting outstanding financial awards made for water
projects { + ; and
(B) The costs of contracting for planning and technical
assistance services and other support services for
municipalities + }.
{ - (b) - } { + (c) + } To the extent permitted by federal
law, administrative expenses of the department as limited in
{ - paragraph (a) of - } this subsection that are paid from the
fund shall not exceed four percent of the { - moneys allocated
to the fund in any biennium - } { + total assets of the fund
reduced by the bonded debt liabilities in any one year + }.
Administrative expenses of the department as limited in
{ - paragraph (a) of - } this subsection may be paid from bond
proceeds.
(10) The department may establish other accounts within the
Water Fund for the payment of water projects costs, reserves,
debt service payments, credit enhancements, costs of issuing
revenue bonds, administrative and operating expenses or any other
purpose necessary to carry out ORS 285B.560 to 285B.599.
(11) There is created within the Water Fund a separate and
distinct account for the proceeds from the sale of water
development general obligation bonds issued for safe drinking
water projects and credited to the special account under this
section. Any investment earnings thereon shall be segregated in
and continuously appropriated to a special, separately accounted
for subaccount of this account. Moneys credited to this account
shall be maintained separate and distinct from moneys credited to
subaccounts created under subsection (10) of this section.
Notwithstanding ORS 285B.566 or subsection (4) of this section,
all repayments of moneys loaned from the account created by this
subsection, including interest on such moneys, shall be credited
to the Water Development Administration and Bond Sinking Fund
created by ORS 541.830.
SECTION 38. ORS 285B.578 is amended to read:
285B.578. (1) Revenue bonds issued under ORS 285B.575:
(a) Shall not be payable from nor charged upon any fund other
than the revenue pledged to the payment of the revenue bonds,
except as provided in this section, nor shall the state be
subject to any liability on the bonds. No holder of revenue bonds
shall ever have the right to compel any exercise of the taxing
power of the state to pay any such bonds or the interest on the
bonds, nor to enforce payment of the bonds against any property
of the state except those moneys pledged in the Water Fund, under
the provisions of ORS 285B.560 to 285B.599.
(b) Shall not constitute a charge, lien or encumbrance, legal
or equitable, upon any property of the state, except those moneys
paid to the Water Fund.
{ - (c) Shall not exceed, for all bonds outstanding, a total
principal amount of $200 million. - }
(2) A revenue bond issued under ORS 285B.575 shall not
constitute a debt of the state or a lending of the credit of the
state within the meaning of any constitutional or statutory
limitation.
SECTION 39. ORS 285B.581 is amended to read:
285B.581. (1) Any loan of moneys to a municipality by the state
shall include a plan for repayment by the municipality of moneys
borrowed from the Water Fund for a water project and interest on
those moneys at a rate expressly specified. The repayment plan:
(a) Shall provide for such evidence of debt assurance of, and
security for, repayment by the municipality as is considered
necessary by the Economic and Community Development Department.
(b) May set forth the allocation of special assessments or
contractual responsibilities among the owners of benefited
properties for repayment to the municipality of the amount of the
loan.
(c) Shall provide for repayment during a period that shall not
exceed the usable life of the proposed project or 25 years,
whichever is less.
(2) Notwithstanding any other provision of law or any
restriction on indebtedness contained in a charter, a
municipality may borrow from the fund by entering into a loan
contract with the Economic and Community Development Department.
Moneys borrowed from the fund shall be repaid:
(a) From the revenues of any water project, including special
assessment revenues;
(b) From amounts withheld under ORS 285B.599;
(c) From the general fund of the municipality;
(d) From any combination of the provisions of paragraphs (a) to
(c) of this subsection; or
(e) From any other sources.
(3) A loan contract under subsection (2) of this section may
provide that a portion of the proceeds of the loan be applied to
fund a reserve fund to secure the repayment of the loan or secure
the repayment of revenue bonds issued to fund the loan.
(4) A loan contract under subsection (2) of this section shall
be authorized by an ordinance { + , order + } or resolution that
is adopted with prior notice of at least 14 days. Notice shall be
published at least once in a newspaper of general circulation
within the municipality.
SECTION 39a. ORS 777.195 is amended to read:
777.195. A port may, for hire:
(1) Acquire, charter, own, { + lease, rent, dispose of, + }
maintain and operate { + towboats, barges and other + }
watercraft for the transportation of all kinds of merchandise,
freight and commercial or recreational passengers, and engage
generally in { - the coastwise - } { + maritime + } trade and
commerce, { - both domestic and foreign - } { + within or
without the boundaries of this state + }.
(2) Own, acquire, construct, operate and maintain railroad
terminal grounds and yards; and construct, operate and maintain
such line or lines of railroad, with necessary sidetrack,
turnouts, switches and connection and arrangements with other
common carriers, as may facilitate water commerce between common
carriers and points within the port; and carry and transport
freight and passengers and move passenger trains over the lines.
{ - (3) Acquire, own, lease, rent, operate, maintain and
dispose of towboats, barges and other vessels for the
transportation of cargo or passengers in maritime commerce on the
Columbia and Snake Rivers and their tributaries, within or
without the boundaries of this state. - }
{ - (4) - } { + (3) + } Acquire, own, lease, rent, operate,
maintain and dispose of unit trains and related facilities for
the transportation of bulk commodities to facilities within the
port from locations within or without the port.
SECTION 40. { + The amendments to statutes by sections 2 to 20
and 26 to 39a of this 2001 Act and the repeal of ORS 285B.458,
285B.596 and 778.240 by section 1 of this 2001 Act apply to
grants and loans made or to bonds issued on or after the
effective date of this 2001 Act. + }
SECTION 41. { + 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 on
its passage. + }
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