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 3248
 
                         Senate Bill 832
 
Sponsored by Senator NELSON, Representative SIMMONS; Senators L
  BEYER, BROWN, CARTER, CLARNO, DUNCAN, FERRIOLI, HARTUNG,
  MESSERLE, Representatives DOYLE, GARDNER, HILL, JOHNSON,
  MINNIS, G SMITH, STARR, WESTLUND, WITT
 
 
                             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 as
introduced.
 
  Directs Oregon Health Sciences University to create Oregon
Opportunity program to capitalize on biotechnology opportunities.
Authorizes issuance of revenue bonds to be paid from moneys from
tobacco Master Settlement Agreement. Specifies that bond proceeds
are to be used for Oregon Opportunity program costs.
  Declares emergency, effective July 1, 2001.
 
                        A BILL FOR AN ACT
Relating to Oregon Health Sciences University; appropriating
  money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 7 of this 2001 Act are added to
and made a part of ORS chapter 353. + }
  SECTION 2.  { + Sections 2 to 7 of this 2001 Act shall be known
as the Oregon Opportunity Act. + }
  SECTION 3.  { + As used in sections 2 to 7 of this 2001 Act:
  (1) 'Capital costs' means the costs of acquiring, constructing,
improving or equipping capital projects or other capital
expenditures necessary or desirable to create, develop, maintain
or finance the Oregon Opportunity program.
  (2) 'Master Settlement Agreement' means the Master Settlement
Agreement, and related documents, entered into on November 23,
1998, by the State of Oregon and leading United States tobacco
product manufacturers.
  (3) 'Noncapital costs' means the costs of programs,
scholarships, endowments, research infrastructure, recruitment of
scientists and researchers, or other noncapital costs or expenses
necessary or desirable to create, develop, maintain or finance
the Oregon Opportunity program.
  (4) 'Oregon Opportunity program' means the program created by
Oregon Health Sciences University pursuant to section 5 of this
2001 Act. + }
  SECTION 4.  { + (1) The purpose of sections 2 to 7 of this 2001
Act is to finance the Oregon Health Sciences University's Oregon
Opportunity program.
  (2) It is the policy of the State of Oregon that, in order to
capture the health and economic benefits of the coming
biotechnology boom for all Oregonians, the state enter a
partnership with Oregon Health Sciences University to enhance
medical research.
  (3) The Legislative Assembly finds that:
  (a) Oregon should take advantage of research breakthroughs in
biomedicine, health care and technology that are opening an
unprecedented new era. Research advances will some day show
scientists how to block or replace genes that cause disease. The
state should seize the opportunity to provide all Oregonians
access to leading edge therapies and procedures.
  (b) Research breakthroughs are expected to fuel tremendous
economic growth, and Oregon must be poised to capitalize on these
breakthroughs. Biotechnology is likely to be the next great
economic engine in the United States, and the state should take
positive action to ensure Oregon's participation in this emerging
and important industry. A public commitment to biomedical and
related research in Oregon is necessary to drive the formation,
expansion and proliferation of biotechnology companies that will
commercialize myriad new treatments, medications, biomedical
equipment and other technology.
  (c) The state should support Oregon Health Sciences University
in its efforts to continue to grow as a research power and an
economic engine. Biomedical and technology research is necessary
to create intellectual property, which serves as the raw material
for biotechnology companies. The state should assist Oregon
Health Sciences University in securing the needed infrastructure
to attain a critical mass of research talent in order to maximize
the number of commercially viable discoveries.
  (d) There is a limited window of opportunity to capitalize on
the surge in biotechnology growth, stemming from the completion
of the United States Human Genome Project.
  (4) It is the intent of the Legislative Assembly that the
Oregon Opportunity program benefit all Oregonians through
increased medical research and sustainable economic development
from biotechnology and related fields. + }
  SECTION 5.  { + Oregon Health Sciences University shall create
the Oregon Opportunity program to usher in a new era of
breakthroughs in health care and biotechnology for Oregonians.
Through the program, the university shall invest in facilities,
endowments, research infrastructure, recruitment of scientists
and researchers, scholarships and programs related to:
  (1) Research on cancer, heart disease, multiple sclerosis,
Parkinson's disease and Alzheimer's disease;
  (2) Children's health and women's health;
  (3) Hearing research;
  (4) Advanced eye research;
  (5) Aging research;
  (6) Rural health initiatives; and
  (7) Other health care and biotechnology related research. + }
  SECTION 6.  { + (1) The State Treasurer, pursuant to sections 2
to 7 of this 2001 Act and ORS 286.031 and 288.805 to 288.945,
with the concurrence of the president of Oregon Health Sciences
University, may issue, sell and deliver revenue bonds in one or
more series for the purposes of financing the Oregon Opportunity
program. Revenue bonds issued under this section shall be issued
by the State Treasurer and shall have such terms and conditions
as the State Treasurer shall determine.
  (2) The State Treasurer shall issue the revenue bonds
authorized by this section as soon as practicable after the
effective date of this 2001 Act, but in any case prior to July 1,
2002.
  (3) Notwithstanding ORS 286.505 to 286.545, revenue bonds shall
be issued under this section in an aggregate principal amount
that produces net proceeds for the Oregon Opportunity program in
an amount that is not less than $200,000,000.
  (4) The State Treasurer may issue bonds:
  (a) On a federally tax-exempt basis; or
  (b) In accordance with ORS 286.038, the interest on which is
taxable for federal income tax purposes.
  (5) Revenue bonds issued under this section are payable from
moneys paid to the state under the Master Settlement Agreement.
  (6) Revenue bonds issued under this section do not constitute a
debt or general obligation of this state, Oregon Health Sciences
University or any other political subdivision of this state but
are payable from moneys paid to the state under the Master
Settlement Agreement and secured solely by moneys paid to the
state under the Master Settlement Agreement.
  (7) A holder of bonds or other similar obligations issued under
this section may not have the right to compel the exercise of the
ad valorem taxing power of the state to pay principal and
interest on such bonds or other similar obligations.
  (8) The payment of debt service on bonds issued under this
section shall be in addition to and not in lieu of any other
appropriation to Oregon Health Sciences University.
  (9) Proceeds from the sale of revenue bonds under this section
are for the purpose of financing the Oregon Opportunity program
and may be used for any of the following purposes:
  (a) Financing capital costs of the Oregon Opportunity program.
  (b) Financing noncapital costs of the Oregon Opportunity
program.
  (c) Paying the cost of issuing the bonds. + }
  SECTION 7.  { + (1) The Oregon Opportunity Fund is established
in the State Treasury separate and distinct from the General
Fund.  The net proceeds from the sale of revenue bonds issued
under section 6 of this 2001 Act shall be credited to the Oregon
Opportunity Fund. Investment earnings received on moneys in the
Oregon Opportunity Fund shall be credited to the Oregon
Opportunity Fund.
  (2) All moneys credited to the Oregon Opportunity Fund are
continuously appropriated to Oregon Health Sciences University
for payment of capital and noncapital cost of the Oregon
Opportunity program and for payment of any bond-related costs
other than debt service.
  (3) Amounts in the Oregon Opportunity Fund shall be promptly
disbursed to Oregon Health Sciences University by the State
Treasurer upon the State Treasurer receiving a written request
from Oregon Health Sciences University. + }
  SECTION 8.  { + 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 July 1,
2001. + }
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