Chapter
741
AN ACT
HB 3446
Relating to state finance; creating new provisions; amending ORS
285B.551, 777.267, 777.277, 777.282 and 777.284 and sections 6, 14, 19, 21 and 22, chapter 942, Oregon Laws 2001; repealing ORS 777.279 and 777.289; appropriating money; and declaring an emergency.
Be It Enacted by the People of the State of
SECTION 1. The amounts allocated, as provided by ORS 286.525 (1), for general obligation bonds, revenue bonds, certificates of participation and other financing agreements of this state that may be issued during the 2003-2005 biennium are as follows:
____________________________________________________________________________
Category Designation
____________________________________________________________________________
GENERAL
OBLIGATION
BONDS
Program
General Fund Obligations
Department of Higher
Education (Art. XI-G) $ 56,700,000
Department of Environmental
Quality (Art. XI-H) $ 10,000,000
Oregon Department of Administrative
Services (Art. XI-L) $ 120,000,000
Dedicated Fund Obligations
Department of Veterans’
Affairs (Art. XI-A) $ 135,000,000
Department of Higher
Education (Art. XI-F(1)) $ 345,000,000
Housing and Community Services
Department (Art. XI-I(2)) $ 150,000,000
Office of Energy
(Art.
XI-J) $ 80,000,000
____________________________________________________________________________
Total General Obligation Bonds $ 896,700,000
Category Designation
____________________________________________________________________________
REVENUE BONDS
Program
Direct Revenue Bonds
Housing and Community
Services
Department $ 600,000,000
Department of Transportation,
Infrastructure
Fund $ 50,000,000
Highway
User Tax $ 290,000,000
Economic and Community
Development
Department $ 200,000,000
Oregon Department of Administrative
Services
Lottery Revenue Bonds $ 132,000,000
____________________________________________________________________________
Total Direct Revenue Bonds $ 1,272,000,000
Category Designation
____________________________________________________________________________
Pass Through Revenue Bonds
Development
Commission Industrial
Development
Bonds $ 250,000,000
Housing and Community Services
Department $ 150,000,000
____________________________________________________________________________
Total Pass Through
Revenue Bonds $ 900,000,000
Total Revenue Bonds $ 2,172,000,000
Category Designation
____________________________________________________________________________
CERTIFICATES OF PARTICIPATION
AND OTHER FINANCING AGREEMENTS
Oregon Department of
Administrative
Services $ 211,895,000
____________________________________________________________________________
SECTION 2. The amounts allocated for private activity bonds, as provided in ORS 286.615, are as follows:
(1) For the calendar year 2004, the amount
of $280,376,000 is allocated as follows:
(a)
Development
Commission.............. $ 40,000,000
(b) Economic and Community
Development
Department.............. $ 7,000,000
(c)
(d) Housing and Community
Services
Department...................... $ 124,500,000
(e) Office of Energy.............................. $ 10,000,000
(f) Private Activity Bond
Committee....................................... $ 85,876,000
(2) For the calendar year 2005, the amount
of $280,376,000 is allocated as follows:
(a)
Development
Commission.............. $ 40,000,000
(b) Economic and Community
Development
Department.............. $ 7,000,000
(c)
(d) Housing and Community
Services
Department...................... $ 124,500,000
(e) Office of Energy.............................. $ 10,000,000
(f) Private Activity Bond
Committee....................................... $ 85,876,000
(3) If an increase in
the state’s population,
a sufficient increase in the region’s
Consumer
Price Index or a change in federal
law allows the private activity bond limit
as set by the Internal Revenue Code of 1986,
as amended, to exceed $280,376,000 during
the 2004 calendar year or $280,376,000
during the 2005 calendar year,
the increase is allocated to the
Private
Activity Bond Committee.
____________________________________________________________________________
SECTION 3. (1)
The authorization to the State Treasurer to issue, at the request of the Director
of the Economic and Community Development Department, lottery bonds in the
amount of $17.7 million for the Columbia River channel deepening project, plus
an additional amount to pay bond-related costs granted in ORS 285B.551 (3), is
hereby expressly extended and limited to the biennium beginning July 1, 2003.
(2)
The authorization to the State Treasurer to issue, at the request of the
Director of the Economic and Community Development Department, lottery bonds in
the amount of $10 million for the Columbia River channel deepening project,
plus an additional amount to pay bond-related costs granted in section 6,
chapter 942, Oregon Laws 2001, is hereby expressly extended and limited to the
biennium beginning July 1, 2003.
(3)
The authorization to the State Treasurer to issue, at the request of the
Director of the Economic and Community Development Department, lottery bonds in
the amount of $750,000 for the costs of studies and ecosystem restoration
projects in the lower Columbia River estuary, plus an additional amount to pay
bond-related costs granted in ORS 285B.551 (5), is hereby expressly extended
and limited to the biennium beginning July 1, 2003.
(4)
The authorization to the State Treasurer to issue, at the request of the
Director of the Economic and Community Development Department, lottery bonds in
the amount of $194 million for the purposes listed in ORS 285B.551 (1)(a), plus
an additional amount to pay bond-related costs, is hereby expressly extended
and limited to the biennium beginning July 1, 2003.
(5) The Economic and Community Development Department shall pay bond-related costs payable during the biennium beginning July 1, 2003, for lottery bonds issued under section 12 of this 2003 Act and ORS 285B.551 (5) and for lottery bonds issued for channel deepening under ORS 285B.551 (3) and section 6, chapter 942, Oregon Laws 2001, from moneys in the Channel Deepening Debt Service Account or from moneys allocated to the department from the Administrative Services Economic Development Fund.
SECTION 4. ORS 285B.551 is amended to read:
285B.551. (1) Pursuant to ORS 286.560 to 286.580, lottery bonds may be issued:
(a) To provide financial and other assistance, including but not limited to loans and grants, to municipalities, ports and other persons and entities in accordance with the laws governing use of moneys in the Special Public Works Fund created by ORS 285B.455, the Water Fund created by ORS 285B.563, the Safe Drinking Water Revolving Loan Fund created by ORS 285A.213, the Oregon Port Revolving Fund created by ORS 285A.708, the Brownfields Redevelopment Fund created by ORS 285A.188, the Oregon Business Development Fund created by ORS 285B.092 and the Marine Navigation Improvement Fund created by ORS 777.267.
(b) To fund
(c) To fund
(2) The use of lottery bond proceeds is authorized based on the following findings:
(a) The financial and other assistance to municipalities, ports and other persons and entities will assist in the establishment and expansion of businesses in Oregon and in the construction, improvement and expansion of infrastructure, community and port facilities and other facilities that comprise the physical foundation for industrial and commercial activity and provide the basic framework for continued and expanded economic opportunities and quality communities throughout Oregon.
(b) The
(c) Such financial and other assistance to municipalities, ports and other persons and entities and the deepening of the Columbia River channel will therefore promote economic development within this state, and thus the use of net proceeds derived from the operation of the Oregon State Lottery to pay debt service on lottery bonds issued under this section to provide such financial and other assistance to municipalities, ports and other persons and entities and to pay a portion of the costs of deepening the Columbia River channel is an authorized use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510.
(d) The current lower
(3) The aggregate principal amount of
lottery bonds issued pursuant to subsection (1)(a) of this section for
financial and other assistance to municipalities, ports and other persons and
entities may not exceed the sum of [$177
million] $194 million and an
additional amount estimated by the State Treasurer to be necessary to pay
bond-related costs. The aggregate principal amount of lottery bonds issued
pursuant to subsection (1)(b) of this section for the
(4) The net proceeds of lottery bonds
issued pursuant to subsection (1)(a) and (b) of this section shall be deposited
in the Economic Infrastructure Project Fund, which is hereby established in the
State Treasury separate and distinct from the General Fund. All moneys in the
Economic Infrastructure Project Fund are continuously appropriated to the
Economic and Community Development Department for any purpose for which moneys
in the Special Public Works Fund created by ORS 285B.455 may be used, any
purpose for which moneys in the Water Fund created by ORS 285B.563 may be used,
any purpose for which moneys in the Safe Drinking Water Revolving Loan Fund
created by ORS 285A.213 may be used, any purpose for which moneys in the Oregon
Port Revolving Fund created by ORS 285A.708 may be used, any purpose for which
moneys in the Brownfields Redevelopment Fund created by ORS 285A.188 may be
used, any purpose for which moneys in
the Oregon Business Development Fund created by ORS 285B.092 may be used
and any purpose for which moneys in the Marine Navigation Improvement Fund
created by ORS 777.267 may be used. The Director of the Economic and Community
Development Department shall allocate the moneys deposited in the Economic
Infrastructure Project Fund for the purposes described in this subsection in
accordance with the policies developed by the Oregon Economic and Community
Development Commission in accordance with ORS 285A.045. However, the director
shall transfer from the Economic Infrastructure Project Fund and deposit into
the Channel Deepening Account of the Marine Navigation Improvement Fund the
proceeds of any lottery bonds sold to finance a portion of the costs of the
(5) The aggregate principal amount of lottery bonds issued pursuant to subsection (1)(c) of this section for the costs of studies and ecosystem restoration projects in the lower Columbia River estuary may not exceed the sum of $750,000 and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. The net proceeds of lottery bonds issued pursuant to subsection (1)(c) of this section shall be deposited in the Oregon Community Development Fund created by ORS 285A.227 and may be used only for the Oregon nonfederal [cost] share [portion] of United States Army Corps of Engineers Columbia River estuary projects authorized by Congress prior to August 9, 2001. The director may not request the issuance of lottery bonds pursuant to subsection (1)(c) of this section until Congress and Washington have authorized their respective shares of the costs of the studies and ecosystem restoration projects in the lower Columbia River estuary.
(6) The proceeds of lottery bonds issued pursuant to this section may be used only for the purposes set forth in [subsections (4) and (5) of] this section and for bond-related costs.
SECTION 5. Section 6, chapter 942, Oregon Laws 2001, is amended to read:
Sec. 6. (1) Pursuant to ORS 286.560 to 286.580, lottery
bonds may be issued to pay a portion of the
(2) The use of lottery bond proceeds is authorized upon the following findings:
(a) The
(b) Financial assistance to the Oregon sponsors of the channel deepening project for the costs of the project will therefore promote economic development within this state, making the use of the net proceeds derived from the operation of the Oregon State Lottery to pay debt service on lottery bonds issued under this section to pay a portion of the costs of the channel deepening project an authorized use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510.
(3) The aggregate principal amount of lottery bonds issued pursuant to subsection (1) of this section to pay a portion of the costs of the channel deepening project shall not exceed [$6.7 million] $10 million plus an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Lottery bonds [shall] may be issued under this section only at the request of the Director of the Economic and Community Development Department. The director may not request the issuance of lottery bonds pursuant to this section until a final environmental impact statement has been issued and a record of decisions has been submitted to Congress by the United States Army Corps of Engineers, Congress has authorized the Columbia River channel deepening project and the Washington sponsors’ shares of the costs of the Columbia River channel deepening project have been committed.
(4) The net proceeds of lottery bonds
issued pursuant to this section shall be deposited into the Channel Deepening
Account and paid to the
(5) The [net] proceeds of the lottery bonds issued pursuant to this section shall be used only for the purposes set forth in this section and for bond-related costs.
SECTION 6. Section 14, chapter 942, Oregon Laws 2001, is amended to read:
Sec. 14. (1) Pursuant to ORS 286.560 to 286.580, lottery bonds may be issued to fund projects for the improvement, restoration, upgrading and preservation of systems, facilities and equipment of short line railroads.
(2) The use of lottery bond proceeds is authorized based on the following findings:
(a) A well developed system of short
line railroads is critical to the economic growth and stability of
(b) Traditional funding techniques
such as grant programs are unable to keep pace with infrastructure investment
in
(c) Short line railroads serve the public good and would benefit from the provision of public assistance;
(d) New investment capital can be attracted to infrastructure projects that are capable of generating their own revenue stream through dedicated funding sources;
(e) A state credit program can complement existing funding sources by leveraging resources from nonstate sources;
(f) The state could mitigate the need to expand highways by encouraging the development and sustainability of a statewide system of short line railroads; and
(g) Newly established state credit programs are most effectively delivered when they augment and utilize the resources of previously established state credit programs.
(3) The aggregate principal amount of lottery bonds issued pursuant to this section may not exceed the sum of [$2 million and] $4 million, plus an additional amount established 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 Director of Transportation.
(4) The net proceeds of lottery bonds issued pursuant to this section shall be deposited in the Short Line Credit Premium Account established by [section 16 of this 2001 Act] ORS 367.067.
(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 7. Section 19, chapter 942, Oregon Laws 2001, is amended to read:
Sec. 19. [(1)(a) For the biennium beginning July 1, 2001, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286.560 to 286.580 in the amount of $200,000 for payment of the expenses of the Department of Transportation in entering into and administering a grant agreement under section 21 (3) of this 2001 Act for the South Metro Commuter Rail Project, plus an additional amount to be estimated by the State Treasurer for payment of bond-related costs of the Oregon Department of Administrative Services, the Department of Transportation and the State Treasurer.]
[(b)] (1)(a) For the biennium beginning [July 1, 2001,] July 1, 2003, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286.560 to 286.580 in the amount of [$20 million] $35,342,000 for payment of the expenses of Washington County for the South Metro Commuter Rail Project, plus an additional amount to be estimated by the State Treasurer for payment of bond-related costs of the Oregon Department of Administrative Services, the Department of Transportation and the State Treasurer.
[(c)] (b) For the biennium beginning July 1, 2003, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286.560 to 286.580 in the amount of $200,000 for payment of the expenses of the Department of Transportation in entering into, modifying and administering a grant agreement under section 21 (3), chapter 942, Oregon Laws 2001, [of this 2001 Act] for the South Metro Commuter Rail Project, plus an additional amount to be estimated by the State Treasurer for payment of bond-related costs of the Oregon Department of Administrative Services, the Department of Transportation and the State Treasurer.
[(d) For the biennium beginning July 1, 2003, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286.560 to 286.580 in the amount of $15 million for payment of the expenses of Washington County for the South Metro Commuter Rail Project, plus an additional amount to be estimated by the State Treasurer for payment of bond-related costs of the Oregon Department of Administrative Services, the Department of Transportation and the State Treasurer.]
(2) Lottery bonds issued under this section shall be issued at the request of the Director of Transportation.
[(3)(a) Net proceeds of lottery bonds issued under subsection (1)(a) and (b) of this section, in the amount of $20.2 million, shall be deposited in the South Metro Commuter Rail Project Fund established by section 21 of this 2001 Act not later than June 30, 2003.]
[(b)] (3) Net proceeds of lottery bonds issued under subsection [(1)(c) and (d)] (1)(a) and (b) of this section, in the amount of [$15.2 million] $35,542,000, shall be deposited in the South Metro Commuter Rail Project Fund established by section 21, chapter 942, Oregon Laws 2001, [of this 2001 Act] not later than [June 30, 2004] June 30, 2005.
(4) The bond-related costs of the Oregon Department of Administrative Services, the Department of Transportation and the State Treasurer for the lottery bonds authorized by this section shall be paid from the gross proceeds of those lottery bonds and from allocations for the purposes of ORS 286.576 (1)(c).
SECTION 8. Section 21, chapter 942, Oregon Laws 2001, as amended by section 10, chapter 4, Oregon Laws 2002 (second special session), is amended to read:
Sec. 21. (1) The South Metro Commuter Rail Project Fund is established separate and distinct from the General Fund. The moneys in the South Metro Commuter Rail Project Fund and the interest earnings of the fund are continuously appropriated to the Department of Transportation for the purpose described in subsection (2) of this section. The fund shall consist of moneys deposited in the fund under section 19, chapter 942, Oregon Laws 2001, and may include fees, moneys or other revenues available for payment of expenses of the South Metro Commuter Rail Project, including federal funds collected or received as reimbursement for expenses of the project from the United States Department of Transportation or the Federal Highway Administration under the Transportation Equity Act for the 21st Century (P.L. 105-178), or Miscellaneous Receipts.
(2) Subject to subsection (3) of this
section, moneys in the fund shall be available for immediate distribution to
(3)(a) The Director of Transportation
shall enter into, or modify, a grant
agreement [by
(A) Moneys are available;
(B) Washington County has entered into one or more contracts for final design, construction or acquisition of components of the South Metro Commuter Rail Project and the contracts have an aggregate value of at least [$20 million] $35,342,000; and
(C) The Director of Transportation determines that the following conditions have occurred:
(i)
(ii)
(b) Upon satisfaction of the
conditions described in paragraph (a) of this subsection, the Department of
Transportation shall disburse [$20
million] $35,342,000 of the
moneys in the fund to
[(c) When moneys are available in the fund and Washington County certifies to the Department of Transportation that it has entered into one or more contracts for final design, construction or acquisition of components of the project that in the aggregate represent at least 58 percent of the project’s costs, the department shall disburse $15 million of the moneys in the fund to Washington County in the biennium beginning July 1, 2003.]
[(d)(A) Of the moneys deposited in the fund in the biennium beginning July 1, 2001, the Department of Transportation may use $200,000 to pay the department’s expenses in entering into and administering the grant agreement authorized by this section.]
[(B)]
(c) Of the moneys deposited in the
fund [in the biennium beginning
(4)(a) The state is not liable to the lenders, vendors or contractors of Washington County for any action or omission under sections 18 to 22, chapter 942, Oregon Laws 2001, or the grant agreement authorized by this section, except for a failure to allocate and deposit to the fund amounts required by section 19, chapter 942, Oregon Laws 2001, or to disburse from the fund to Washington County amounts required by this section and the grant agreement authorized by this section.
(b) The grant agreement must:
(A) Obligate the department to deposit the net proceeds of lottery bonds described in section 19, chapter 942, Oregon Laws 2001, or, if necessary, the amounts described in section 22, chapter 942, Oregon Laws 2001, into the fund.
(B) Obligate Washington County to indemnify the state and its agencies and departments to the fullest extent permitted by law for any liability the state or its agencies and departments might incur in connection with any borrowing by Washington County for the project, except failure to allocate and deposit to the fund amounts required by section 19, chapter 942, Oregon Laws 2001, or amounts described in section 22, chapter 942, Oregon Laws 2001, or to disburse from the fund to Washington County amounts required by this section and the grant agreement authorized by this section.
(c)
SECTION 9. Section 22, chapter 942, Oregon Laws 2001, is amended to read:
Sec. 22. If the state has not deposited an aggregate amount of [$35 million] $35,342,000 in the South Metro Commuter Rail Project Fund by [June 30, 2004,] February 28, 2005, the state shall allocate to the Department of Transportation for deposit in the South Metro Commuter Rail Project Fund an amount equal to the difference between [$35 million] $35,342,000 and the aggregate deposits to the fund as of [June 30, 2004,] February 28, 2005,from the first available residual lottery revenues.
SECTION 10. (1)
For the biennium beginning July 1, 2003, pursuant to ORS 286.560 to 286.580,
the State Treasurer, at the request of the Director of Transportation, may
issue lottery bonds to finance grants and loans to fund industrial rail spurs
typically used to provide access for transportation of raw materials and
finished products between manufacturing facilities and main rail lines.
(2)
The use of lottery bond proceeds is authorized based on the following findings:
(a)
A well-developed system of industrial rail spurs supports state and local
government efforts to attract new industries to
(b)
Industrial rail spurs serve the public good and would benefit from the
provision of public assistance; and
(c)
A state credit program can complement existing funding sources by leveraging
resources from nonstate sources.
(3)
The aggregate principal amount of lottery bonds issued pursuant to this section
may not exceed the sum of $8 million, plus an additional amount established by
the State Treasurer to be necessary to pay bond-related costs.
(4)
The net proceeds of lottery bonds issued pursuant to this section must be
deposited in the Industrial Rail Spur Fund established by section 11 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 11. The Industrial Rail Spur Fund is established separate and distinct from the General Fund. The moneys in the Industrial Rail Spur Fund and the interest earnings of the fund are continuously appropriated to the Department of Transportation for the purpose of financing grants and loans to fund industrial rail spurs. The fund consists of moneys deposited in the fund under section 10 of this 2003 Act and may include fees, moneys, federal funds, Miscellaneous Receipts or other revenues available for the purpose.
SECTION 12. (1)
For the biennium beginning July 1, 2003, pursuant to ORS 286.560 to 286.580,
the State Treasurer, at the request of the Director of the Economic and
Community Development Department, may issue lottery bonds to provide financial
and other assistance for which moneys in the Marine Navigation Improvement Fund
established by ORS 777.267 may be used.
(2)
The use of lottery bond proceeds is authorized based on the following findings:
(a)
Financial and other assistance to ports will assist in the monitoring,
maintenance, improvement and construction of harbors and navigation channels
along the
(b)
A well-developed and well-maintained system of harbors and navigation channels
along the
(c)
The monitoring, maintenance, improvement and construction of harbors and
navigation channels along the
(d)
Financial and other assistance to ports will therefore further economic
development and create jobs in
(3)
The aggregate principal amount of lottery bonds issued pursuant to this section
may not exceed the sum of $3.5 million, plus an additional amount established
by the State Treasurer to be necessary to pay bond-related costs.
(4)
The net proceeds of lottery bonds issued pursuant to this section must be
deposited in the Marine Navigation Improvement Fund established by ORS 777.267.
(5) The proceeds of lottery bonds issued pursuant to this section may be used only for the purposes for which moneys in the Marine Navigation Improvement Fund may be used and for bond-related costs.
SECTION 13. ORS 777.267 is amended to read:
777.267. (1) There is established in the State Treasury the Marine Navigation Improvement Fund. The moneys in the fund and interest earnings on the moneys in the fund are continuously appropriated to the Economic and Community Development Department for the purposes of:
(a) Paying a portion of the costs of dredging activities that are carried out in the harbors and channels on the Oregon coast and along the Columbia River when federal law or regulation requires a portion of the costs of such dredging to be paid by nonfederal interests; and
(b) Paying the study and construction costs of other new navigation improvement projects that directly support a federally authorized navigation improvement project.
(2) The Marine Navigation Improvement Fund established by this section [shall consist of such moneys as may be] consists of moneys appropriated to the fund by the Legislative Assembly, [including interest on such moneys] repayment of loans made with moneys in the fund and bond proceeds deposited in the fund.
(3) Moneys in the fund shall be used primarily to make loans to ports for eligible projects. The department may award a grant or provide other assistance from moneys in the fund to a port for an eligible project only if a loan is not feasible due to the financial hardship of the port or other special circumstances, as set forth in rules adopted by the department.
[(3)] (4) Eligibility for assistance from the Marine Navigation Improvement Fund shall be limited to and funded, subject to the availability of funds, in the following order of priority:
(a) Federally authorized studies and construction of new navigation improvement projects.
(b) Other new navigation improvement projects if the projects directly support or provide access to a federally authorized navigation improvement project or a federally authorized navigation channel.
[(4)] (5) Financial assistance for construction costs under subsection [(3)(a)] (4)(a) of this section shall be limited to those projects that have completed all federally required studies and have confirmed positive cost-benefit ratios as required by the National Economic Development Plan.
[(5)] (6) Financial assistance for construction costs under subsection [(3)(b)] (4)(b) of this section is limited to projects sponsored by a port, as defined in ORS 777.005 or 778.005, that meet criteria developed by the department.
[(6)] (7) Financial assistance for studies of other new construction projects under subsection (1)(b) of this section is limited to projects that meet criteria developed by the department.
SECTION 14. ORS 777.277, as amended by section 20, chapter 6, Oregon Laws 2002 (third special session), is amended to read:
777.277. As used in ORS 777.277 to 777.289:
(1) “Channel Deepening Account” means the account in the Marine Navigation Improvement Fund created by ORS 777.282.
(2) “Channel Deepening Debt Service Account” means the account in the Marine Navigation Improvement Fund created by ORS 777.282.
[(2)] (3) “Channel deepening project” means a project to deepen the deep draft Columbia River navigation channel from an authorized depth of 40 feet.
[(3)] (4) “Department” means the Economic and Community Development Department.
[(4)] (5) “Director” means the Director of the Economic and Community Development Department.
[(5)] (6) “Grant agreement” means the grant agreement described in ORS 777.284.
[(6) “Marine Navigation Improvement Fund” means the fund established by ORS 777.267.]
(7) “Oregon nonfederal share” means that portion of the cost of the channel deepening project that is allocable to the Oregon sponsors and that is not paid by the federal government, the State of Washington or the Washington sponsors.
(8) “
(9) “Primary sponsor” means the
(10) “Project cooperation agreement” means a written agreement between the United States Government and a nonfederal sponsor that requires the United States Government to construct, and the nonfederal sponsor to share in the cost of, a project authorized under the Water Resources Development Act or a similar Act of the United States Congress.
[(11) “Unobligated net lottery proceeds” means all revenues derived from the operation of the state lottery except for:]
[(a) The revenues used for the payment of prizes and the expenses of the state lottery as provided in section 4 (4)(d), Article XV of the Oregon Constitution, ORS 461.500 (2) and 461.510 (3) and (4);]
[(b) The revenues required to be applied, distributed or allocated as provided in ORS 461.543;]
[(c) The revenues required to be allocated to pay the Westside lottery bonds and any bonds issued to refund the Westside lottery bonds, to fund reserves for any of those bonds and to pay related costs of the Department of Transportation;]
[(d)
The revenues required by section 4 (4)(d), Article XV
of the
[(e) The revenues required to be allocated to pay lottery bonds authorized by ORS 197.587, 285B.410, 285B.422, 285B.425, 285B.482, 285B.530 to 285B.548 and 390.060 to 390.067, to fund reserves for those bonds and to pay related costs authorized by ORS 197.587, 285B.410, 285B.422, 285B.425, 285B.482, 285B.530 to 285B.548 and 390.060 to 390.067; and]
[(f) The revenues required to be allocated to pay lottery bonds authorized by ORS 327.700 to 327.711, to fund reserves for those bonds and to pay related costs authorized by ORS 327.700 to 327.711.]
[(12)] (11) “Washington sponsors” means the Port of Vancouver, the Port of Kalama, the Port of Woodland, the Port of Longview or any agency acting on behalf of the government of the State of Washington as a financial contributor to the channel deepening project.
[(13) “Westside lottery bonds” means the bonds issued by the state pursuant to the authority granted in ORS 391.140.]
SECTION 15. ORS 777.282 is amended to read:
777.282. (1) The Channel Deepening Account is hereby created in the Marine Navigation Improvement Fund.
[(2) Commencing with the fifth fiscal quarter of the 1999-2001 biennium and continuing each quarter through the end of the 1999-2001 biennium, the state shall allocate and deposit in the Channel Deepening Account not less than $833,334 each fiscal quarter. The deposits shall be made from the first available unobligated net lottery proceeds.]
[(3)] (2) Any earnings on amounts in the Channel Deepening Account shall be credited to the Channel Deepening Account. All moneys on deposit from time to time in the Channel Deepening Account, including investment earnings thereon, [and all amounts required by this section to be deposited in the Channel Deepening Account,] shall be allocated and are hereby appropriated continuously to the Economic and Community Development Department, and shall be transferred by the department to the primary sponsor pursuant to and upon the terms and conditions set forth in the grant agreement [for costs of the channel deepening project] entered into under ORS 777.284 to pay the Oregon nonfederal share.
(3)
Notwithstanding directions for transfer of moneys to the primary sponsor in
subsection (2) of this section and the grant agreement entered into under ORS
777.284 prior to the effective date of this 2003 Act, the Economic and
Community Development Department shall transfer moneys in the Channel Deepening
Account on the effective date of this 2003 Act to the Channel Deepening Debt
Service Account for payment of bond-related costs for lottery bonds issued
under section 12 of this 2003 Act and ORS 285B.551 (5) and for lottery bonds
issued for channel deepening under ORS 285B.551 (3) and section 6, chapter 942,
Oregon Laws 2001.
(4)
The Channel Deepening Debt Service Account is hereby created in the Marine
Navigation Improvement Fund.
(5)
Any earnings on amounts in the Channel Deepening Debt Service Account must be
credited to the Channel Deepening Debt Service Account. All moneys on deposit
from time to time in the Channel Deepening Debt Service Account, including
investment earnings thereon, and all amounts required by this section to be
deposited in the Channel Deepening Debt Service Account, shall be allocated and
are hereby appropriated continuously to the Economic and Community Development
Department for payment of bond-related costs for lottery bonds issued under
section 12 of this 2003 Act and ORS 285B.551 (5) and for lottery bonds issued
for channel deepening under ORS 285B.551 (3) and section 6, chapter 942, Oregon
Laws 2001.
(6) The restrictions on the use of moneys in the Marine Navigation Improvement Fund set forth in ORS 777.267 do not apply to moneys in the Channel Deepening Account or the Channel Deepening Debt Service Account.
SECTION 16. ORS 777.284, as amended by section 3, chapter 8, Oregon Laws 2002, is amended to read:
777.284. (1) Within six months after [July 25, 1997] the effective date of this 2003 Act, the Director of the Economic and Community Development Department shall enter into, or modify, a grant agreement with the primary sponsor that commits the [state to make the deposits specified in ORS 777.282 and commits the] Economic and Community Development Department to [pay those deposits, plus earnings, to the primary sponsor as soon as funds are available in the Channel Deepening Account and are required by the primary sponsor] request that the State Treasurer issue lottery bonds as provided in ORS 285B.551 (3) and section 6, chapter 942, Oregon Laws 2001, to obtain lottery bond proceeds for deposit in the Channel Deepening Account for payment of the Oregon nonfederal share. [Notwithstanding ORS 777.267 or any other provision of law, this commitment of this state and the department shall be conditioned solely on federal authorization of the channel deepening project under the federal Water Resources Development Act or a similar federal Act, signing of a project cooperation agreement with the appropriate federal agencies and receipt by this state of unobligated net lottery proceeds sufficient to make the deposits specified in ORS 777.282.]
(2) The total amount paid to the
primary sponsor pursuant to the grant agreement may not exceed the lesser of
the amount of the
(a)
Shall specify a method for determining the total amount of the
(b) May not [shall:]
[(a) Specify a method for determining the total amount of the
[(b) Pledge the unobligated net lottery proceeds required to be deposited in the Channel Deepening Account pursuant to ORS 777.282 (2) to pay the amounts due to the primary sponsor under the grant agreement;]
[(c) Specify the administrative procedures for making payments to the primary sponsor of amounts deposited from time to time, including earnings, in the Channel Deepening Account;]
[(d) Provide for notification to the director if the primary sponsor determines that it is unable to undertake the channel deepening project;]
[(e) Allow assignment of the right to receive amounts payable under the grant agreement to third parties;]
[(f) Obligate the primary sponsor to remit any unexpended grant funds and any earnings thereon to the State of Oregon after the channel deepening project is complete and all its costs have been paid; and]
[(g) Contain such additional terms and conditions as the director considers necessary or appropriate to ensure that the moneys paid under the grant agreement are expended solely on the channel deepening project.]
[(3) The grant agreement, when executed by the director and accepted by the primary sponsor, shall be a valid, binding and irrevocable contractual obligation of the State of Oregon in accordance with its terms. However, amounts due under the grant agreement shall be payable solely from the amounts deposited from time to time, including earnings, in the Channel Deepening Account.]
[(4)
The primary sponsor may pledge the unobligated net lottery proceeds required to
be deposited in the Channel Deepening Account pursuant to ORS 777.282 (2) and
assign its right to receive amounts due under the grant agreement as security
for any contractual obligation the primary sponsor undertakes to pay or finance
costs of the channel deepening project. Any pledge or assignment authorized by
this subsection shall be valid and binding upon the primary sponsor, the
department, the State of
[(5) The grant agreement shall not] contain provisions or be construed or enforced in any manner that would cause the grant agreement to constitute a debt or liability of the state that violates section 7, Article XI of the Oregon Constitution.
SECTION 17. ORS 777.279 and 777.289 are repealed.
SECTION 18. 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
Approved
by the Governor
Filed
in the office of Secretary of State
Effective
date
__________