Chapter 725 Oregon Laws 2003

AN ACT

HB 5028

Relating to the financial administration of the Department of Higher Education; creating new provisions; amending section 3, chapter 890, Oregon Laws 1999; appropriating money; limiting expenditures; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. (1) In addition to and not in lieu of any other appropriation, there is appropriated to the Department of Higher Education, for the biennium beginning July 1, 2003, out of the General Fund, the amount of $11,519,853, which may be expended for academic modernization and repair of facilities.

(2) The State Board of Higher Education shall determine the academic modernization and repair projects to be undertaken with moneys made available under subsection (1) of this section and section 2 (1)(a) of this 2003 Act on the basis of the board’s determination of the most critical deferred maintenance needs. In determining the deferred maintenance needs, the board shall give priority to projects that protect the health and safety of occupants and maintain the structural integrity of facilities.

SECTION 2. Notwithstanding any other law limiting expenditures, the amount of $446,097,973 is established as the maximum limit for payment of expenses under this section and section 1 of this 2003 Act from the proceeds of bonds and other revenue sources, including federal funds, by the Department of Higher Education for the acquisition of land and improvements to land and the acquisition, planning, constructing, altering, repairing, furnishing and equipping of buildings and facilities. Within this total expenditure limitation there are established maximum limits for expenditures as follows:

Other

Revenues

Article Article Lottery (Including

XI-G XI-F(1) Bonds Federal

Bonds Bonds Funds)

(1) Oregon University System:

(a) Academic modernization, capital

repair, deferred maintenance,

code and safety compliance $12,519,853 $20,000,000 $10,000,000

(b) Miscellaneous student building fee

projects $3,000,000

(2) Oregon State University:

(a) Reser Stadium expansion and parking

facilities $66,000,000 $44,000,000

(b) Memorial Union remodel, phase 3 $5,500,000

(d) Residential housing deferred maintenance

upgrade/replacement $3,000,000

(e) Arnold Dining Center remodel $7,000,000

(f) Poling Hall remodel $9,000,000

(g) New single student suites/apartments $1,000,000 $11,000,000

(h) Instrumentation and flow imaging lab

addition $650,000

(i) Graf Hall and adjacent buildings

remodel $4,750,000 $4,750,000 $9,500,000

(j) College of Veterinary Medicine

addition $2,200,000

(3) Portland State University:

(a) Smith Memorial Student Union

renovations and code compliance $7,000,000

(b) Athletic arena construction $5,000,000 $20,000,000

(c) Ondine student housing tower remodel

and seismic upgrade $6,000,000

(d) Helen Gordon Child Development Center

rehabilitation, phase 2 $3,500,000

(e) Peter W. Stott Center student recreation

and fitness improvements, phase 2 $4,100,000

(f) Combination housing/parking structure $20,000,000

(g) New housing construction, phase 1 $15,000,000

(h) Center for nanoscience and

nanotechnology $500,000 $500,000 $1,000,000

(4) Southern Oregon University:

Jefferson Public Radio transmitter/

translator network equipment $500,000

(5) University of Oregon:

(a) University Health and Counseling

Center addition/remodel $10,080,000

(b) University housing $8,500,000

(c) Living Learning Center $27,000,000

(d) Residence hall restoration, phase 1 $2,000,000

(e) Parking structure $10,920,000

(f) Heart of Campus rehabilitation $850,000

(g) Museum of Natural History addition

and alterations $1,460,000

(h) Allen Hall, phase 7 $2,000,000

(i) Alumni Center construction $21,200,000

(j) Integrative science complex $4,750,000 $4,750,000 $9,500,000

(k) Theatre complex $6,360,000

(6) Project reserve $2,612,667 $1,625,600

SECTION 3. Notwithstanding any other provision of this 2003 Act, the proceeds from bonds and other revenue sources, including federal funds, limited by section 2 of this 2003 Act are not available for expenditure before the effective date of this 2003 Act. However, any action taken by the State Board of Higher Education prior to the effective date of this 2003 Act or any contract entered into by the board prior to the effective date of this 2003 Act necessary for the acquisition of land and improvements to land and the acquisition, planning, constructing, altering, repairing, furnishing and equipping of buildings and facilities authorized by this 2003 Act is hereby authorized.

SECTION 4. The project approvals and expenditure limitations in this 2003 Act and the expenditure limitations established by the Emergency Board during the biennium beginning July 1, 2003, for capital construction or acquisition projects for the Department of Higher Education expire on June 30, 2009, unless otherwise noted or unless changed by the Legislative Assembly.

SECTION 5. (1) Pursuant to Article XI-G of the Oregon Constitution and ORS 351.345, the State Board of Higher Education may sell, with the approval of the State Treasurer, such general obligation bonds of the State of Oregon of the kind and character and within the limits prescribed by Article XI-G of the Oregon Constitution, as the board determines, but in no event may the board sell more than the aggregate principal sum of $56,619,853 par value for the biennium beginning July 1, 2003. The moneys realized from the sale of the bonds shall be appropriated and may be expended for the purposes set forth in section 2 (1)(a), (2)(i), (3)(h) and (5)(j) of this 2003 Act and section 2 (3)(h) and (4)(f), chapter 845, Oregon Laws 2001, for new projects for which the Emergency Board approves funding during the biennium beginning July 1, 2003, and for payment for capitalized interest and costs incidental to issuance of the bonds.

(2) In compliance with the requirements of Article XI-G of the Oregon Constitution, funds available under the expenditure limitation for bonds issued pursuant to Article XI-G of the Oregon Constitution in section 2 (1)(a) of this 2003 Act are matched with the General Fund appropriation made under section 1 (1) of this 2003 Act and the General Fund appropriation made under section 12 of this 2003 Act.

(3) In compliance with the requirements of Article XI-G of the Oregon Constitution, funds available under the expenditure limitation for bonds issued pursuant to Article XI-G of the Oregon Constitution in section 2 (2)(i) of this 2003 Act are matched with the General Fund appropriation made under section 8 of this 2003 Act.

(4) In compliance with the requirements of Article XI-G of the Oregon Constitution, funds available under the expenditure limitation for bonds issued pursuant to Article XI-G of the Oregon Constitution in section 2 (3)(h) of this 2003 Act are matched with the General Fund appropriation made under section 9 of this 2003 Act.

(5) In compliance with the requirements of Article XI-G of the Oregon Constitution, funds available under the expenditure limitation for bonds issued pursuant to Article XI-G of the Oregon Constitution in section 2 (5)(j) of this 2003 Act are matched with the General Fund appropriation made under section 10 of this 2003 Act.

SECTION 6. Notwithstanding the expenditure limitations made by sections 2 and 7 of this 2003 Act, the State Board of Higher Education may increase any limit for expenditures of other revenue sources, including federal funds, but excluding proceeds from lottery bonds, prescribed by sections 2 and 7 of this 2003 Act for a specific project, if the expenditure limitation for bonds issued pursuant to Article XI-F(1) or XI-G of the Oregon Constitution for the project is reduced by the board in the same amount.

SECTION 7. (1) Notwithstanding the expenditure limitations established under section 2 of this 2003 Act, the State Board of Higher Education may expend amounts in excess of the expenditure limitations established under section 2 (2) to (5) of this 2003 Act for bonds issued pursuant to Article XI-F(1) of the Oregon Constitution by the following percentage amounts:

(a) For a project with a combined approved General Fund appropriation and total expenditure limitation of $500,000 to $999,999 under section 2 of this 2003 Act, up to 12 percent of the expenditure limitation for bonds issued pursuant to Article XI-F(1) of the Oregon Constitution.

(b) For a project with a combined approved General Fund appropriation and total expenditure limitation of $1,000,000 to $4,999,999 under section 2 of this 2003 Act, up to eight percent of the expenditure limitation for bonds issued pursuant to Article XI-F(1) of the Oregon Constitution.

(c) For a project with a combined approved General Fund appropriation and total expenditure limitation of $5,000,000 to $9,999,999 under section 2 of this 2003 Act, up to five percent of the expenditure limitation for bonds issued pursuant to Article XI-F(1) of the Oregon Constitution.

(d) For a project with a combined approved General Fund appropriation and total expenditure limitation of $10,000,000 or more under section 2 of this 2003 Act, up to three percent of the expenditure limitation for bonds issued pursuant to Article XI-F(1) of the Oregon Constitution.

(2) Notwithstanding the expenditure limitations established under section 2 of this 2003 Act, the State Board of Higher Education may expend amounts in excess of the expenditure limitations for other revenue sources, including federal funds, but excluding proceeds from lottery bonds, established under section 2 (2) to (5) of this 2003 Act by the following percentage amounts:

(a) For a project with a combined approved General Fund appropriation and total expenditure limitation of $500,000 to $999,999 under section 2 of this 2003 Act, up to 12 percent of the expenditure limitation for other revenue sources, including federal funds, but excluding proceeds from lottery bonds.

(b) For a project with a combined approved General Fund appropriation and total expenditure limitation of $1,000,000 to $4,999,999 under section 2 of this 2003 Act, up to eight percent of the expenditure limitation for other revenue sources, including federal funds, but excluding proceeds from lottery bonds.

(c) For a project with a combined approved General Fund appropriation and total expenditure limitation of $5,000,000 to $9,999,999 under section 2 of this 2003 Act, up to five percent of the expenditure limitation for other revenue sources, including federal funds, but excluding proceeds from lottery bonds.

(d) For a project with a combined approved General Fund appropriation and total expenditure limitation of $10,000,000 or more under section 2 of this 2003 Act, up to three percent of the expenditure limitation for other revenue sources, including federal funds, but excluding proceeds from lottery bonds.

(3) Notwithstanding subsections (1) and (2) of this section, the total increase to expenditure limitations established under section 2 (2) to (5) of this 2003 Act may not exceed the amounts established under section 2 (6) of this 2003 Act.

SECTION 8. (1) There is established in the General Fund an account to be known as the Oregon State University Engineering Capital Construction Remodel Account. Funds in the account shall be used for the remodel of Graf Hall and adjacent buildings at Oregon State University for a microproducts breakthrough institute related to a signature research center.

(2) The account shall consist of proceeds from lottery bonds made available to the Oregon University System for the purpose of the Oregon State University capital construction project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for the capital construction project described in subsection (1) of this section. The account may not be credited with more than $4,750,000 in interest and proceeds from lottery bonds.

SECTION 9. (1) There is established in the General Fund an account to be known as the Portland State University Center for Nanoscience and Nanotechnology Account. Funds in the account shall be used for the expansion of microscopy and materials characterization facilities at Portland State University related to a signature research center.

(2) The account shall consist of proceeds from lottery bonds made available to the Oregon University System for the purpose of the Portland State University center for nanoscience and nanotechnology project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for the center for nanoscience and nanotechnology project described in subsection (1) of this section. The account may not be credited with more than $500,000 in interest and proceeds from lottery bonds.

SECTION 10. (1) There is established in the General Fund an account to be known as the University of Oregon Integrative Science Complex Account. Funds in the account shall be used for the construction, remodeling, expansion and renovation of facilities for an integrative science complex at the University of Oregon that includes a multiscale materials and devices laboratory and other facilities related to a signature research center.

(2) The account shall consist of proceeds from lottery bonds made available to the Oregon University System for the purpose of the University of Oregon integrative science complex project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for the integrative science complex project described in subsection (1) of this section. The account may not be credited with more than $4,750,000 in interest and proceeds from lottery bonds.

SECTION 11. (1) Pursuant to ORS 286.560 to 286.580 and 348.716, lottery bonds may be issued to fund projects for:

(a) The remodel of Graf Hall and adjacent buildings at Oregon State University for a microproducts breakthrough institute relating to a signature research center;

(b) The expansion of microscopy and materials characterization facilities at Portland State University relating to a signature research center; and

(c) The construction, remodeling, expansion and renovation of facilities for an integrative science complex at the University of Oregon relating to a signature research center.

(2) The use of lottery bond proceeds is authorized based on the following findings:

(a) The universities of the Oregon University System promote the improved education of Oregon’s students;

(b) The promotion of educated employees for business and industry expands markets, which in turn creates jobs and stimulates economic development of the state’s business and industry; and

(c) The creation of a signature research center will support the growth of emerging markets and the creation of new markets, which in turn create jobs and stimulate economic development of the state’s business and industry.

(3) The aggregate principal amount of lottery bonds issued pursuant to this section may not exceed the sum of $10,000,000 and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Lottery bonds issued pursuant to this section shall be issued only at the request of the Chancellor of the Oregon University System.

(4)(a) Of the net proceeds of lottery bonds issued pursuant to this section, $4,750,000 shall be deposited in the Oregon State University Engineering Capital Construction Remodel Account established in section 8 of this 2003 Act.

(b) Of the net proceeds of lottery bonds issued pursuant to this section, $500,000 shall be deposited in the Portland State University Center for Nanoscience and Nanotechnology Account established in section 9 of this 2003 Act.

(c) Of the net proceeds of lottery bonds issued pursuant to this section, $4,750,000 shall be deposited in the University of Oregon Integrative Science Complex Account established in section 10 of this 2003 Act.

(5) The proceeds of lottery bonds issued pursuant to this section may be used only for the purposes set forth in subsection (1) of this section and for bond-related costs.

SECTION 12. (1) There is established in the General Fund an account to be known as the Higher Education Academic Modernization Account. Funds in the account shall be used at state institutions of higher education within the Oregon University System for academic modernization, capital repair, deferred maintenance and making facilities compliant with building and safety codes.

(2) The account shall consist of funds donated to the Oregon University System for the purposes described in subsection (1) of this section. The account may also consist of other funds available to the Oregon University System for the purposes described in subsection (1) of this section. The Department of Higher Education may not deposit any moneys into the account that were appropriated to the department under this 2003 Act. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for the purposes described in subsection (1) of this section. The account may not be credited with more than $1,000,000 in interest, donations and other funds.

SECTION 13. Notwithstanding any other law that establishes the period of time for the project approvals and expenditure limitations established by chapter 584, Oregon Laws 1997, the State Board of Higher Education may continue to expend moneys until June 30, 2005, for the following projects:

(1) The Museum of Natural History at the University of Oregon within the expenditure limitation established by section 2 (2)(a), chapter 584, Oregon Laws 1997.

(2) Seismic improvements of parking structure number 3 at Portland State University within the expenditure limitation established by section 2 (4)(f), chapter 584, Oregon Laws 1997.

(3) The Native American Cultural Center at Portland State University within the expenditure limitation established by section 2 (4)(g), chapter 584, Oregon Laws 1997.

SECTION 14. Section 3, chapter 890, Oregon Laws 1999, is amended to read:

Sec. 3. Notwithstanding any appropriations or moneys made available by law or from other sources, including federal funds, unless otherwise authorized by the Emergency Board, the total expenditure of moneys by the State Board of Higher Education under this section and sections 1, 2 and 2a, chapter 890, Oregon Laws 1999 [of this 1999 Act] shall not exceed [$142,562,674] $142,769,440, and within that total there are established maximum limits for expenditures from the proceeds of bonds and other revenue sources, including federal funds, for the acquisition of land and for the acquisition, planning, constructing, altering, repairing, furnishing and equipping of buildings and facilities for the Department of Higher Education as follows:

Article Article Other

XI-G XI-F(1) Revenues

Bonds Bonds (Including

Federal

Funds)

(1) State System of

Higher Education:

(a) Academic

modernization

and repair $11,596,476 $6,000,000 $6,000,000

(b) Campus master plans $2,000,000 $2,000,000

(d) Miscellaneous small

projects $3,050,000

(e) Land and building

acquisition $1,000,000 $1,000,000

(2) University of Oregon:

(a) Allen Hall-remodel,

phase II $561,800 $1,452,200

(b) State Museum of

Anthropology collections $1,494,600

(d) Hamilton East

housing repair $1,060,000

(e) Recreation and Fitness

Center, phase II $1,515,800 $2,120,000

(f) Ed Moshofsky

practice center, phase II $2,800,000

(g) Autzen Stadium $2,226,000

(h) Vivian Olum Child

Development Center $339,200 $286,200

(i) Museum of Art-

addition and alteration $6,360,000 $6,360,000

(j) Straub Hall-

addition and alteration $1,166,000 $1,166,000

(3) Oregon State University:

(a) Linus Pauling Institute $500,000

(b) Student family housing $2,000,000

system replacement $3,180,000

(d) Buxton Hall $6,890,000

(e) Gill Coliseum

gymnasium addition $10,600,000

(f) Gill Coliseum-remodel $1,696,000

(g) Softball stadium

relocation $3,180,000

(4) Portland State

University:

(a) Peter W. Stott Center $1,378,000

(b) Parking 3-seismic

retrofit and addition $6,137,400

cabling $1,060,000

(d) Simon Benson

House $1,378,000

(e) Student housing upgrade $848,000

(f) Smith Memorial Center-

renovation, phase II $1,000,000

(g) Millar Library

Research Center $1,431,000 [$1,431,000]

$1,637,766

(5) Western Oregon

University:

Library Project $3,770,000

(6) Southern Oregon

University:

Environmental Science

partnership purchase $2,809,000

(7) Oregon Institute of

Technology:

(a) Residence hall

improvements $848,000

(b) ADA restroom

modifications $100,700

(8) Eastern Oregon

University:

Natural Resources and

Health Services Center $500,000

(9) Project reserve $635,193 $769,629

SECTION 15. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

Approved by the Governor August 29, 2003

Filed in the office of Secretary of State September 2, 2003

Effective date August 29, 2003

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