72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 1653
A-Engrossed
House Bill 3446
Ordered by the Senate August 20
Including Senate Amendments dated August 20
Sponsored by COMMITTEE ON REVENUE
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.
{ - Provides that appropriation is direction to spend amounts
appropriated in budget unless agency can fulfill responsibilities
with less. - }
{ - Requires that reductions in allotments to reduce deficit
be made according to legislative priorities, with presumption
that all General Fund appropriations have equal priority and
allotments should be reduced by equal percentage. - }
{ + Limits proceeds from issuance of bonds and certificates
of participation during 2003-2005 biennium.
Allocates amount of private activity bonds between agencies.
Authorizes or reauthorizes issuance of lottery bonds for
various economic development projects. + }
Declares emergency, effective { - on passage - } { + July
1, 2003 + }.
A BILL FOR AN ACT
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 Oregon:
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: + }
________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
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(1345,000,000
Housing and Community Services
Department (Art. XI-I(150,000,000
Office of Energy
(Art. XI-J) 80,000,000
________________________________________________________________
Total General Obligation896,700,000
Category Designation
________________________________________________________________
REVENUE BONDS
Program
Direct Revenue Bonds
Housing and Community
Services Department 600,000,000
Department of Transportation,
Oregon Transportation
Infrastructure Fund 50,000,000
Highway User Tax 290,000,000
Economic and Community
Development Department200,000,000
Oregon Department of Administrative
Services Lottery Reven132,000,000
________________________________________________________________
Total Direct Revenue B1,272,000,000
Category Designation
________________________________________________________________
Pass Through Revenue Bonds
Oregon Economic and Community
Development Commission Industrial
Development Bonds 250,000,000
Oregon Facilities Author500,000,000
Housing and Community Services
Department 150,000,000
________________________________________________________________
Total Pass Through Reven900,000,000
Total Revenue Bonds 2,172,000,000
Category Designation
________________________________________________________________
CERTIFICATES OF PARTICIPATION
AND OTHER FINANCING AGREEMENTS
Oregon Department of
Administrative Service211,895,000
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
________________________________________________________________
SECTION 2. { + The amounts allocated for private activity
bonds, as provided in ORS 286.615, are as follows: + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
(1) For the calendar year 2004, the amount
of $280,376,000 is allocated as follows:
(a) Oregon Economic and Community
Development Commiss40,000,000
(b) Economic and Community
Development Departme7,000,000
(c) Oregon Facilities A13,000,000
(d) Housing and Community
Services Departmen124,500,000
(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) Oregon Economic and Community
Development Commiss40,000,000
(b) Economic and Community
Development Departme7,000,000
(c) Oregon Facilities A13,000,000
(d) Housing and Community
Services Departmen124,500,000
(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.
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
________________________________________________________________
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 Oregon's share of the costs of the Columbia River
channel deepening project.
(c) To fund Oregon's share of the costs of studies and
ecosystem restoration projects in the lower Columbia River
estuary designed to improve habitat for listed endangered or
threatened species of Columbia River anadromous salmonids.
(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 Columbia River channel deepening project is necessary
to allow newer, larger steamships access to Oregon and Washington
deep draft ports. A deeper shipping channel will allow the
Columbia River to continue as a world leader in agricultural
exports and as a key trade corridor for farms and businesses
throughout Oregon and the region.
(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 Columbia River estuary habitat for listed
endangered or threatened species of Columbia River anadromous
salmonids could be improved through ecosystem restoration
projects. The use of the Oregon State Lottery to pay debt service
on lottery bonds issued under this section to pay for studying
how the estuary could be improved and to pay for ecosystem
restoration projects are authorized uses of state lottery funds.
(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 Columbia River channel
deepening project may not exceed the sum of $17.7 million 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 - } { + may + } be issued 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 subsection (1)(b) of 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
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 Columbia River
channel deepening project. Upon determining the relative
allocation of moneys deposited in the Economic Infrastructure
Project Fund among the purposes described in this subsection, the
director shall transfer from the Economic Infrastructure Project
Fund, and deposit into each of the other funds described in this
subsection, the amounts so allocated. Notwithstanding any other
provision of law governing the funds described in this
subsection, the funds described in this subsection may be
credited with moneys transferred from the Economic Infrastructure
Project Fund by the director in accordance with this subsection.
(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 Oregon
nonfederal share of the costs of the channel deepening project.
(2) The use of lottery bond proceeds is authorized upon the
following findings:
(a) The Columbia River channel deepening project is necessary
to allow newer, larger steamships access to Oregon and Washington
deep draft ports. A deeper shipping channel will allow the
Columbia River to continue as a world leader in agricultural
exports and as a key trade corridor for farms and businesses
throughout Oregon and the region.
(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 Port of Portland in accordance with the grant
agreement.
(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 Oregon;
(b) Traditional funding techniques such as grant programs are
unable to keep pace with infrastructure investment in Oregon due
to budgetary constraints on state government;
(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 Washington
County to pay the expenses of the project.
(3)(a) The Director of Transportation shall enter into { + , or
modify, + } a grant agreement { - by February 28, 2002, - }
with Washington County that requires the department to disburse,
over the course of the project, an aggregate amount of { - $35
million - } { + $35,342,000 + } to Washington County from the
fund. Disbursements from the fund shall be made as soon as
deposits accrue in the fund and shall commence when:
(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) Washington County has provided documentation that it will
have sufficient financing to complete the project; and
(ii) Washington County has agreed in the grant agreement
authorized by this section that the county will not request or
accept any state General Fund moneys for the project. Upon
completion of the project, if the aggregate expenditure of state
and local moneys is less than $45 million, Washington County
shall refund the difference to the fund established by this
section.
(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 Washington County in the biennium beginning
{ - July 1, 2001 - } { + July 1, 2003 + }.
{ - (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 July 1, 2003 - } , the Department
of Transportation may use $200,000 to pay the department's
expenses in entering into { + , modifying + } and administering
the grant agreement authorized by this { - subsection - } { +
section + }.
(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) Washington County may assign and pledge its rights under
the grant agreement to lenders, vendors or contractors. The
Director of Transportation shall pledge the moneys available in
the fund for the project.
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
Oregon and to keep and encourage expansion of existing
industries;
(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 Oregon coast and the Columbia
River.
(b) A well-developed and well-maintained system of harbors and
navigation channels along the Oregon coast and the Columbia River
is a critical component of the facilities that make up the
physical foundation for industrial and commercial activity in
Oregon, which enables economic growth and development in Oregon.
(c) The monitoring, maintenance, improvement and construction
of harbors and navigation channels along the Oregon coast and the
Columbia River will create jobs in Oregon.
(d) Financial and other assistance to ports will therefore
further economic development and create jobs in Oregon.
(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) 'Oregon sponsors' means { - the Port of Astoria, - } the
Port of St. Helens, the Port of Portland or any agency acting on
behalf of the government of the State of Oregon as a financial
contributor to the channel deepening project.
(9) 'Primary sponsor' means the Port of Portland as
representative of the Oregon sponsors.
(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 Oregon Constitution, to be deposited in the Education
Stability Fund established under ORS 348.696; - }
{ - (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 Oregon nonfederal share or the total amount deposited in the
Channel Deepening Account. The grant agreement { + :
(a) Shall specify a method for determining the total amount of
the Oregon nonfederal share; and
(b) May not + } { - shall: - }
{ - (a) Specify a method for determining the total amount of
the Oregon nonfederal share; - }
{ - (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 Oregon and all other persons from the
date it is made. The unobligated net lottery proceeds so pledged
shall be immediately subject to the lien of the pledge without
physical delivery, filing or other act, and the lien of the
pledge shall be superior to all other claims and liens of any
kind whatsoever. Upon notice from the primary sponsor that it has
pledged the unobligated net lottery proceeds or assigned the
right to receive amounts due under the grant agreement, the
department shall fully cooperate with the primary sponsor and the
pledgee or assignee to give effect to the pledge or assignment,
including but not limited to acknowledging in writing to the
primary sponsor and the pledgee or assignee the existence and
validity of the pledge or assignment and agreeing that amounts
due under the grant agreement shall be paid to the pledgee or
assignee or into the custodial accounts established for the
benefit of the pledgee or assignee. However, a pledge or
assignment shall not require the State of Oregon to pay any
greater amounts than specified in the grant agreement. - }
{ - (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
July 1, 2003. + }
----------