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 356
 
                         Senate Bill 384
 
Sponsored by Senator BEYER
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Abolishes Oregon Watershed Enhancement Board. Transfers duties,
functions and powers of board to State Department of Fish and
Wildlife and Access and Habitat Board.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to the Oregon Watershed Enhancement Board; creating new
  provisions; amending ORS 171.553, 196.635, 468.035, 496.118,
  496.270, 526.041, 536.037, 541.351, 541.363, 541.365, 541.368,
  541.370, 541.371, 541.372, 541.375, 541.376, 541.377, 541.378,
  541.379, 541.381, 541.384, 541.388, 541.390, 541.392, 541.395,
  541.396, 541.397, 541.401, 541.420, 541.700, 561.020, 561.080,
  561.400 and 805.256; repealing ORS 541.360 and 541.362; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) The Oregon Watershed Enhancement Board is
abolished. On the operative date of this section, the tenure of
office of the members of the Oregon Watershed Enhancement Board
and of the executive director of the Oregon Watershed Enhancement
Board ceases.
  (2) All the duties, functions and powers of the Oregon
Watershed Enhancement Board are imposed upon, transferred to and
vested in the State Department of Fish and Wildlife. + }
  SECTION 2.  { + (1) The executive director of the Oregon
Watershed Enhancement Board shall:
  (a) Deliver to the State Department of Fish and Wildlife all
records and property within the jurisdiction of the executive
director that relate to the duties, functions and powers
transferred by section 1 of this 2003 Act; and
  (b) Transfer to the State Department of Fish and Wildlife those
employees engaged primarily in the exercise of the duties,
functions and powers transferred by section 1 of this 2003 Act.
  (2) The State Fish and Wildlife Director shall take possession
of the records and property, and shall take charge of the
employees and employ them in the exercise of the duties,
functions and powers transferred by section 1 of this 2003 Act,
without reduction of compensation but subject to change or
termination of employment or compensation as provided by law.
  (3) The Governor shall resolve any dispute between the Oregon
Watershed Enhancement Board and the State Department of Fish and
 
Wildlife relating to transfers of records, property and employees
under this section. The Governor's decision is final. + }
  SECTION 3.  { + (1) The unexpended balances of amounts
authorized to be expended by the Oregon Watershed Enhancement
Board for the biennium beginning July 1, 2003, from revenues
dedicated, continuously appropriated, appropriated or otherwise
made available for the purpose of administering and enforcing the
duties, functions and powers transferred by section 1 of this
2003 Act are appropriated and transferred to and are available
for expenditure by the State Department of Fish and Wildlife for
the biennium beginning July 1, 2003, for the purpose of
administering and enforcing the duties, functions and powers
transferred by section 1 of this 2003 Act.
  (2) The expenditure classifications, if any, established by
Acts authorizing or limiting expenditures by the Oregon Watershed
Enhancement Board remain applicable to expenditures by the State
Department of Fish and Wildlife under this section. + }
  SECTION 4.  { + The transfer of duties, functions and powers to
the State Department of Fish and Wildlife by section 1 of this
2003 Act does not affect any action, proceeding or prosecution
involving or with respect to such duties, functions and powers
begun before and pending at the time of the transfer, except that
the State Department of Fish and Wildlife, as appropriate, is
substituted for the Oregon Watershed Enhancement Board in the
action, proceeding or prosecution. + }
  SECTION 5.  { + (1) Nothing in sections 1 to 8 of this 2003
Act, the amendments to statutes by sections 9 to 45 of this 2003
Act and the repeal of ORS 541.360 and 541.362 by section 47 of
this 2003 Act relieves a person of a liability, duty or
obligation accruing under or with respect to the duties,
functions and powers transferred by section 1 of this 2003 Act.
The State Department of Fish and Wildlife may undertake the
collection or enforcement of any such liability, duty or
obligation.
  (2) The rights and obligations of the Oregon Watershed
Enhancement Board legally incurred under contracts, leases and
business transactions executed, entered into or begun before the
operative date of section 1 of this 2003 Act are transferred to
the State Department of Fish and Wildlife. For the purpose of
succession to these rights and obligations, the State Department
of Fish and Wildlife is a continuation of the Oregon Watershed
Enhancement Board and not a new authority. + }
  SECTION 6.  { + Notwithstanding the transfer of duties,
functions and powers by section 1 of this 2003 Act, the rules of
the Oregon Watershed Enhancement Board in effect on the operative
date of section 1 of this 2003 Act continue in effect until
superseded or repealed by rules of the State Department of Fish
and Wildlife, as appropriate. References in rules of the Oregon
Watershed Enhancement Board to the Oregon Watershed Enhancement
Board or an officer or employee of the Oregon Watershed
Enhancement Board are considered to be references to the State
Department of Fish and Wildlife or an officer or employee of the
State Department of Fish and Wildlife. + }
  SECTION 7.  { + Whenever, in any uncodified law or resolution
of the Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, reference is
made to the Oregon Watershed Enhancement Board or an officer or
employee of the Oregon Watershed Enhancement Board, the reference
is considered to be a reference to the State Department of Fish
and Wildlife or an officer or employee of the State Department of
Fish and Wildlife. + }
  SECTION 8.  { + The State Fish and Wildlife Director may take
any action before the operative date of section 1 of this 2003
Act that is necessary to enable the director to exercise, on and
after the operative date of section 1 of this 2003 Act, the
 
duties, functions and powers of the director pursuant to section
1 of this 2003 Act. + }
  SECTION 9. ORS 541.351 is amended to read:
  541.351. As used in ORS 541.351 to 541.415:
  (1) 'Adaptive management' means applying management or
practices over time and across the landscape to achieve site
specific resource goals using an integrated and science based
approach that results in changes over time in response to
feedback or monitoring.
  (2) 'Associated uplands' includes those lands of a watershed
that are critical to the functioning and protection of a riparian
area.
  (3) 'Board' means the   { - Oregon Watershed Enhancement Board
created under ORS 541.360 - }  { +  Access and Habitat Board + }.
  (4) 'Capital expenditures' means direct expenses related to:
  (a) Personal property of a nonexpendable nature including items
that are not consumed in the normal course of operations, can
normally be used more than once, have a useful life of more than
two years and are for use in the enforcement of fish and wildlife
and habitat protection laws and regulations; or
  (b) Projects that restore, enhance or protect fish and wildlife
habitat, watershed functions, native salmonid populations or
water quality, including but not limited to:
  (A) Expenses of assessment, research, design or other technical
requirements for the implementation of a project;
  (B) The acquisition of determinate interests, including fee and
less than fee interests, in land or water in order to protect
watershed resources, including appraisal costs and other costs
directly related to such acquisitions;
  (C) Development, construction or implementation of a project to
restore, enhance or protect water quality, a watershed, fish or
wildlife, or riparian or other habitat;
  (D) Technical support directly related to the implementation of
a project; and
  (E) Monitoring or evaluation activities necessary to determine
the actual effectiveness of a project.
   { +  (5) 'Department' means the State Department of Fish and
Wildlife. + }
    { - (5) - }   { + (6) + } 'Independent Multidisciplinary
Science Team ' means the scientific team of recognized experts in
fisheries, artificial propagation, stream ecology, forestry,
range, watershed and agricultural management created under ORS
541.409.
    { - (6) - }   { + (7) + } 'Native' means indigenous to Oregon
and not introduced.
    { - (7) - }   { + (8) + } 'Oregon Plan' means the guidance
statement and framework described in ORS 541.405.
    { - (8) - }   { + (9) + } 'Protect' or 'protection' means to
minimize or mitigate adverse effects on salmonid and habitat to
the maximum extent practicable given the anticipated duration,
geographic scope and primary purpose of proposed activities.
    { - (9) - }   { + (10) + } 'Restore' or 'restoration' means
to take actions likely to achieve sustainable population levels
of native fish or wildlife and their habitats.
    { - (10) - }   { + (11) + } 'Riparian area' means a zone of
transition from an aquatic ecosystem to a terrestrial ecosystem,
dependent upon surface or subsurface water, that reveals through
the zone's existing or potential soil-vegetation complex the
influence of such surface or subsurface water. A riparian area
may be located adjacent to a lake, reservoir, estuary, pothole,
spring, bog, wet meadow, muskeg or ephemeral, intermittent or
perennial stream.
    { - (11) - }   { + (12) + } 'Soil and water conservation
district' means a political subdivision of the state as described
in ORS 568.550.
 
    { - (12) - }   { + (13) + } 'Stewardship' means the careful
and responsible management of the environment.
    { - (13) - }   { + (14) + } 'Tribe' means a federally
recognized Indian tribe in Oregon.
    { - (14) - }   { + (15) + } 'Watershed' means the entire land
area drained by a stream or system of connected streams such that
all stream flow originating in the area is discharged through a
single outlet.
    { - (15) - }   { + (16) + } 'Watershed council' means a
voluntary local organization, designated by a local government
group convened by a county governing body, to address the goal of
sustaining natural resource and watershed protection, restoration
and enhancement within a watershed.
  SECTION 10. ORS 541.363 is amended to read:
  541.363. In addition to any other authority granted to the
  { - executive director of the Oregon Watershed Enhancement
Board, the executive - }   { + State Fish and Wildlife Director,
the + } director, on behalf of the   { - board - }   { + State
Department of Fish and Wildlife + }, may enter into interagency
agreements necessary to carry out the duties and responsibilities
of the   { - board - }  { +  department under ORS 541.351 to
541.415 + }.
  SECTION 11. ORS 541.365 is amended to read:
  541.365. (1) The   { - Oregon Watershed Enhancement Board - }
 { + State Department of Fish and Wildlife + } shall conduct a
watershed enhancement program to benefit all users of the waters
of this state. The   { - board - }   { + department + } shall
conduct the program in a manner that:
  (a) Provides the greatest possible opportunity for volunteer
participation to achieve the goals of the program; and
  (b) Coordinates the information, data and data retrieval needs
of the natural resource agencies of the state with the State
Service Center for Geographic Information Systems.
  (2) In order to effectuate the program described in this
section, the   { - board - }   { + department + } shall establish
protocols, policies and procedures necessary to integrate and
organize geographic information and make it available to persons
and entities involved in implementation of the Oregon Plan.
  (3) In working with the State Service Center for Geographic
Information Systems, the   { - board - }   { + department + }
shall ensure that:
  (a) Information received by the center is formatted in a manner
that results in an integrated geographic information system that
meets the needs of all local, state, regional, tribal and federal
entities involved in implementation of the Oregon Plan; and
  (b) The data are available to local, state and federal agencies
and to any person implementing activities under the Oregon Plan.
  (4) The program developed under this section shall include
development and implementation, in coordination with the natural
resource agencies of the state, of a statewide monitoring program
for activities conducted under the Oregon Plan.
  SECTION 12. ORS 541.368 is amended to read:
  541.368. In cooperation with other state, interstate and
federal agencies, tribes, local governments, watershed councils,
soil and water conservation districts, not-for-profit
organizations and volunteer groups, the   { - Oregon Watershed
Enhancement Board - }   { + State Department of Fish and
Wildlife + } shall facilitate { + , through the Access and
Habitat Board, + } the implementation of the grant programs
established under ORS 541.351 to 541.415.
  SECTION 13. ORS 541.370 is amended to read:
  541.370. (1) In carrying out the watershed enhancement program,
the   { - Oregon Watershed Enhancement Board - }   { + State
Department of Fish and Wildlife + } shall:
  (a) Coordinate the   { - board's - }   { + Access and Habitat
Board's approval of  + }funding of enhancement projects with the
activities of the Natural Resources Division  { + of the State
Department of Agriculture + }   { - staff - }  and other
agencies, especially those agencies working together through a
system of coordinated resource management planning.
  (b) Use the expertise of the appropriate state agency according
to the type of enhancement project.
  (c) Provide educational and informational materials to promote
public awareness and involvement in the watershed enhancement
program.
  (d) Coordinate and provide for or arrange for assistance in the
activities of persons, agencies or political subdivisions
developing local watershed enhancement projects   { - funded - }
 { + approved for funding + } by the board.
  (e)   { - Grant funds - }   { + Direct that the board approve
funding + } for the support of watershed councils in assessing
watershed conditions, developing action plans, implementing
projects and monitoring results and for the implementation of
watershed enhancement projects from such moneys as may be
available to the
  { - board therefor - }  { +  State Department of Fish and
Wildlife + }.
  (f) Develop and maintain a centralized repository for
information about the effects of watershed enhancement and
education projects.
  (g)  { + Direct that the board, in approving funding, + } give
priority to proposed watershed enhancement projects receiving
funding or assistance from other sources.
  (h) Identify gaps in research or available information about
watershed health and enhancement.
  (i) Cooperate with appropriate federal entities to identify the
needs and interests of the State of Oregon so that federal plans
and project schedules relating to watershed enhancement
incorporate the state's intent to the fullest extent practicable.
  (j) Encourage the use of nonstructural methods to enhance the
riparian areas and associated uplands of Oregon's watersheds.
  (k) Determine criteria for utilizing the private sector, both
not-for-profit and for-profit organizations, to provide
landowners with technical assistance to help develop and
implement conservation easements and resource improvement
projects.
   { +  (L) Provide funding to projects approved for funding by
the board. + }
  (2) In accordance with ORS 541.351 to 541.415, the   { - Oregon
Watershed Enhancement - }   { + Access and Habitat + } Board
shall administer a watershed improvement grant program
 { - using funds from - }  { + . The board may approve projects
for funding by + } the Watershed Improvement Grant Fund
established under ORS 541.397, from the Restoration and
Protection Subaccount established under ORS 541.377 and from the
Flexible Incentives Account established under ORS 541.381.
  (3) To aid and advise the board in the performance of the
functions of the board, the   { - board - }   { + State
Department of Fish and Wildlife + } may establish such advisory
and technical committees as the   { - board - }
 { + department + } considers necessary. These committees may be
continuing or temporary. The   { - board - }   { + department + }
shall determine the representation, membership, terms and
organization of the committees and shall appoint their members.
The chairperson { +  of the board + } is ex officio a member of
each committee.
  SECTION 14. ORS 541.371 is amended to read:
  541.371. (1) In   { - addition to the duties set forth in ORS
541.370, in - }  carrying out the provisions of ORS 541.351 to
541.415, the   { - Oregon Watershed Enhancement Board - }  { +
State Department of Fish and Wildlife + }:
 
  (a) Shall establish a framework for a locally based integrated
watershed planning and management process designed to assist
watershed councils and soil and water conservation districts and
to support the efforts of watershed councils and soil and water
conservation districts to work within the requirements of state
and federal laws without duplication of planning effort.  { + To
the maximum extent practicable, soil and water conservation
districts and watershed councils shall share technical staff. + }
The framework shall include all of the following:
  (A) Guidance and protocols for watershed assessments to
encourage consistent assessment methods across all watersheds and
agencies, including assessment of cumulative effects. At a
minimum, such guidance shall address the following plan
components:
  (i) A description of the watershed;
  (ii) An assessment of current watershed conditions and the
distribution and condition of habitat; and
  (iii) Identification of conditions preventing watershed
restoration.
  (B) Guidance on how to prepare watershed action plans. At a
minimum, such guidance shall address the following plan
components:
  (i) Applicable water quality standards and native salmonid and
habitat recovery objectives;
  (ii) Proposed measures needed to restore watershed health;
  (iii) Timeline and budget estimates for implementation of
action measures in priority order; and
  (iv) Monitoring and evaluation systems.
  (b) May review plans, actions and rules of state agencies
pertaining to restoration and protection grants for the purpose
of coordinating the  { + Access and Habitat + } Board's grant
program with other ongoing grant programs.
  (c) Shall establish statewide and regional goals and priorities
that shall become the basis for funding   { - decisions by - }
 { +  approvals by + } the board. In adopting such goals and
priorities, the
  { - board - }  { +  department + } shall adopt priorities for
grant funding based on the Oregon Plan and on measurable goals.
In carrying out this function, the   { - board - }
 { + department + } shall consider local economic and social
impacts among the criteria.
  (d) Shall support development and implementation of a system
that enables standardized collection, management and reporting of
natural resources information in Oregon, including water data,
geographic information system data and information on native fish
and wildlife and habitat.
  (e) Shall promote the availability of information on the
effects of watershed enhancement.
    { - (f) May not have regulatory or enforcement authority
except for the fiscal responsibilities described in ORS 541.351
to 541.415. - }
  (2) In addition to the uses of grant funds described in ORS
541.399, in allocating grant funds under ORS 541.351 to 541.415
that are derived from the Restoration and Protection Subaccount,
the   { - board: - }  { +  department may: + }
  (a)   { - May - }  Allocate funds to be used for staff for soil
and water conservation districts and watershed councils.
  (b)   { - May - }  Award funds for a specific project or
program application or for implementation of an approved action
plan.
    { - (3) To the maximum extent practicable, soil and water
conservation districts and watershed councils shall share
technical staff. - }
  SECTION 15. ORS 541.372 is amended to read:
  541.372. (1) The   { - Oregon Watershed Enhancement Board - }
 { + State Department of Fish and Wildlife + } may accept moneys
from any public or private source, including the federal
government, made available for the purpose of encouraging,
promoting and securing watershed enhancement or to facilitate and
assist in carrying out the functions of the  { + Access and
Habitat + } Board, including  { + paying + } administrative
expenses  { - , as provided by law - } .
  (2) All moneys received by the   { - board - }
 { + department + } under this section shall be deposited in the
State Treasury and kept in separate accounts in the General Fund
designated according to the purposes for which moneys were made
available.
  (3) Notwithstanding the provisions of ORS 291.238, all moneys
received under this section are continuously appropriated to the
  { - board - }   { + department + } for the purpose for which
they were made available and shall be expended in accordance with
the terms and conditions upon which they were made available.
  SECTION 16. ORS 541.375 is amended to read:
  541.375. (1) Any person, tribe, watershed council, soil and
water conservation district, community college, state institution
of higher education, independent not-for-profit institution of
higher education or   { - political subdivision of this state
that is not a state agency - }   { + public body, as defined by
ORS 174.109, + } may submit a request for funding for or for
advice and assistance in developing a project under ORS 541.351
to 541.415. A   { - state agency or - }  federal agency may apply
for funding under this section only as a coapplicant with one of
the other eligible entities.
  (2) The request under subsection (1) of this section shall be
filed  { + with the Access and Habitat Board + } in the manner,
be in the form and contain the information required by the
 { - Oregon Watershed Enhancement Board - }  { +  State
Department of Fish and Wildlife + }.
  (3) The board may establish a grant program through soil and
water conservation districts organized under ORS 568.210 to
568.808 and 568.900 to 568.933 that   { - provides - }
 { + directs the department to provide + } funds for local
implementation of watershed enhancement, education and monitoring
efforts.
  (4) The board may   { - fund implementation - }   { + approve
the funding + } of action plans based on a watershed assessment
that addresses water quality and aquatic resources of the
watershed.
  (5) A project may use mechanical, vegetative or structural
methods including, but not limited to, management techniques,
erosion control, streambank stabilization, forest, range or crop
land treatment, site specific in-stream structures, acquisitions
or leases of land or water rights from a willing owner, watershed
assessments, landowner incentives and action plan development,
implementation and monitoring.
  (6) The actions of a soil and water conservation district
carried out pursuant to a grant program established by the board
under subsection (3) of this section   { - shall not be - }  { +
are not + } subject to review and approval by the Natural
Resources Division under ORS 561.400.
  (7) The   { - Oregon Watershed Enhancement - }  board shall
approve for funding only those projects that:
  (a) Are based on sound principles of watershed management;
  (b) Use methods most adapted to the project locale;
  (c) Meet the criteria established by the board under ORS
541.396; and
  (d) Contribute to either:
  (A) The improved health of a stream, lake or reservoir and
toward the achievement of standards that satisfy the requirements
of the Federal Water Pollution Control Act (P.L. 92-500), as
amended; or
  (B) The restoration of wildlife, habitat or native fish.
  (8) The   { - Oregon Watershed Enhancement - }  board may
 { - fund - }  { +  approve the funding of + } a project for the
restoration of a riparian area or associated upland that is
carried out in conjunction with a storage structure. However, the
board   { - shall - }   { + may + } not approve funding for any
proposed project that consists solely of construction of a
storage structure for out-of-stream use.
  (9) The   { - Oregon Watershed Enhancement - }  board may
 { - fund - }  { +  approve the funding of + } projects involving
the acquisition of lands and waters, or interests therein from
willing sellers, for the purpose of maintaining or restoring
watersheds, habitat and native salmonids. Interests in these
lands and waters may be held by local, state and federal
agencies, tribes, not-for-profit land conservation organizations
and trusts, state institutions of higher education, independent
not-for-profit institutions of higher education or political
subdivisions of this state, as long as the entity continues to
use the land or water for the purposes specified under section
4b, Article XV of the Oregon Constitution.
  (10) If the   { - Oregon Watershed Enhancement - }  board
approves funding for a project under this section that requires
the applicant to obtain a permit or license from a   { - local,
state or federal agency or governing body - }  { +  federal
agency or public body, as defined by ORS 174.109 + }, the
 { - board shall - }   { + department may + } not disburse any
funds to the applicant until the applicant presents evidence
 { + to the department + } that the agency  { + or body + } has
granted the permit or license.
  SECTION 17. ORS 541.376 is amended to read:
  541.376. (1) Land purchased   { - through a grant agreement
with the Oregon Watershed Enhancement - }   { + with funding
approved by the Access and Habitat + } Board shall be subject to
title restrictions that give the board the authority to approve,
approve with conditions or deny the sale or transfer of the land.
Specifically, the board may require conditions on the sale or
transfer to:
  (a) Ensure consistency with the intent of the original grant;
  (b) Ensure the ability of the party receiving the land through
the sale or transfer to carry out the obligations under the grant
agreement; and
  (c) Address the disposition of proceeds from the sale or
transfer, including any provisions for repayment, with interest,
of any grant funds.
  (2) The board may not   { - allow - }   { + approve for
funding + } a sale or transfer that results in any profit to any
person.
  (3) The   { - board - }   { + State Department of Fish and
Wildlife  + }shall, by rule, define 'profit' for the purpose of
not allowing sales or transfers and shall specify the process and
criteria that the board will use in considering whether to
approve, approve with conditions or deny a sale or transfer.
  SECTION 18. ORS 541.377 is amended to read:
  541.377. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Parks and
Natural Resources Fund to be administered by the Oregon
Department of Administrative Services. All moneys transferred
from the State Lottery Fund and all other moneys authorized to be
transferred to the Parks and Natural Resources Fund from whatever
source are appropriated continuously for the public purposes of
restoring and protecting Oregon's parks, beaches, watersheds and
critical fish and wildlife habitats. Fifteen percent of the net
proceeds from the Oregon State Lottery shall be deposited in the
Parks and Natural Resources Fund created under this subsection.
  (2) Of the moneys deposited into the Parks and Natural
Resources Fund from the Oregon State Lottery, 50 percent shall be
deposited into a Parks Subaccount for the public purpose of
financing the protection, repair, operation, creation and
development of state parks, ocean shores, public beach access
areas, historic sites and recreation areas. The State Treasurer
may invest and reinvest the moneys in the Parks Subaccount as
provided in ORS 293.701 to 293.820. Interest from the moneys
deposited in the subaccount and earnings from investment of the
moneys in the subaccount shall be credited to the subaccount.
  (3) All moneys in the Parks Subaccount for financing the
protection, repair, operation, creation and development of state
parks, ocean shores, public beach access areas, historic sites
and recreation areas shall be allocated to the State Parks and
Recreation Department. Such moneys shall be deposited into the
State Parks and Recreation Department Fund established under ORS
390.134 (1) to (6) and shall be used for the following purposes:
  (a) Maintaining, constructing, improving, developing, managing
and operating state park and recreation facilities, programs and
areas.
  (b) Acquiring real property, or interest therein, deemed
necessary for the creation and operation of state parks, ocean
shores, public beach access areas, recreation areas and historic
sites or because of natural, scenic, cultural, historic and
recreational values.
  (c) Operating grant programs for local government entities
deemed necessary to accomplish the public purposes of the Parks
and Natural Resources Fund.
  (4) Of the moneys deposited into the Parks and Natural
Resources Fund from the Oregon State Lottery, 50 percent shall be
deposited into a Restoration and Protection Subaccount for the
public purpose of financing the restoration and protection of
native salmonid populations, watersheds, fish and wildlife
habitats and water quality in Oregon. The State Treasurer may
invest and reinvest the moneys in the Restoration and Protection
Subaccount as provided in ORS 293.701 to 293.820. Interest from
the moneys deposited in the subaccount and earnings from
investment of the moneys in the subaccount shall be credited to
the Restoration and Protection Research Fund created under ORS
541.378.
  (5) The  { + State Department of Fish and Wildlife shall
administer the + } moneys in the Restoration and Protection
Subaccount for financing the restoration and protection of native
salmonid populations, watersheds, fish and wildlife habitats and
water quality   { - shall be administered by the Oregon Watershed
Enhancement Board and shall be used - }  { + . The department
shall use the moneys + } for all of the following purposes:
  (a) Restoration and protection of watersheds and fish,
wildlife, riparian and native species and for habitat
conservation activities, including but not limited to planning,
coordination, assessment, implementation, restoration, inventory,
information management and monitoring activities.
  (b) Watershed and riparian education efforts.
  (c) Development and implementation of watershed and water
quality enhancement plans.
  (d) Entering into agreements to obtain from willing owners
determinate interests in lands and waters that protect watershed
resources, including but not limited to fee simple interests in
land, leases of land or water or conservation easements.
  (e) Enforcement of fish and wildlife and habitat protection
laws and regulations.
  (6) Of the moneys deposited into the Restoration and Protection
Subaccount from the Oregon State Lottery, the   { - Oregon
Watershed Enhancement Board - }   { + State Department of Fish
and Wildlife + } shall deposit:
  (a) Sixty-five percent   { - of the funds - }  into the
Watershed Improvement Grant Fund established under ORS 541.397 to
be used only for funding capital expenditure projects; and
 
  (b) Thirty-five percent   { - of the funds - }  into the
Watershed Improvement Operating Fund established under ORS
541.379 to be used for the purposes set forth in ORS 541.379 (1).
  (7) The Legislative Assembly   { - shall - }   { + may + } not
limit expenditures from the Parks and Natural Resources Fund. The
Legislative Assembly may appropriate other moneys or revenues to
the Parks and Natural Resources Fund.
  SECTION 19. ORS 541.378 is amended to read:
  541.378. (1) There is created in the General Fund of the State
Treasury the Restoration and Protection Research Fund.  Interest
earned by the Restoration and Protection Research Fund shall be
credited to the fund. Moneys credited to the fund are
continuously appropriated to the   { - Oregon Watershed
Enhancement Board - }   { + State Department of Fish and
Wildlife + } for the purpose of funding research and other
activities related to the restoration and protection of native
salmonid populations, watersheds, fish and wildlife habitats and
water quality, including but not limited to research, monitoring,
evaluation and assessment related to the Oregon Plan.
  (2) All moneys received by the   { - Oregon Watershed
Enhancement Board - }   { + department  + }from interest earned
on the Restoration and Protection Subaccount of the Parks and
Natural Resources Fund created under ORS 541.377, from the
Watershed Improvement Operating Fund created under ORS 541.379
and from the Watershed Improvement Grant Fund created under ORS
541.397 shall be credited to the Restoration and Protection
Research Fund. Moneys credited to the fund and not expended by
the completion of a biennium shall remain in the fund.
  SECTION 20. ORS 541.379 is amended to read:
  541.379. (1) The Watershed Improvement Operating Fund is
established in the State Treasury separate and distinct from the
General Fund. The Watershed Improvement Operating Fund shall
consist of all moneys placed in the fund as provided by law. All
moneys in the Watershed Improvement Operating Fund are
continuously appropriated for the following purposes:
  (a) Operational activities of the   { - Oregon Watershed
Enhancement - }   { + Access and Habitat + } Board { +  relating
to the administration of the watershed improvement grant
program + };
  (b) Activities of state and local agencies and other public
entities related to the restoration and protection of native
salmonid populations, watersheds, fish and wildlife habitats and
water quality, including but not limited to activities under the
Oregon Plan; { +  and + }
  (c) Watershed improvement grants described in ORS
541.399 { + . + }
  { - and 541.401 that are not capital expenditures; and - }
    { - (d) Watershed improvement grants described in ORS 541.399
and 541.401 that are capital expenditures. - }
  (2) Interest accruing to the Watershed Improvement Operating
Fund shall be credited to the Restoration and Protection Research
Fund created under ORS 541.378. Funds appropriated and not
expended by the completion of a biennium shall remain in the
Watershed Improvement Operating Fund.
  (3) The   { - Oregon Watershed Enhancement Board created under
ORS 541.360 - }   { + State Department of Fish and Wildlife
 + }shall administer the Watershed Improvement Operating Fund.
  (4) In addition to the funds made available for the purposes of
ORS 541.351 to 541.415 under ORS 541.399, the   { - board - }
 { + department + } also may accept gifts and grants from any
public or private source for the purposes described in subsection
(1) of this section.
  SECTION 21. ORS 541.381 is amended to read:
  541.381. (1) There is created a Flexible Incentives Account in
the State Treasury, separate and distinct from the General Fund.
Interest earned by the account shall be credited to the account.
The moneys in the account are continuously appropriated to the
 { - Oregon Watershed Enhancement Board - }   { + State
Department of Fish and Wildlife + } for the purposes specified in
this section.
  (2) The   { - Oregon Watershed Enhancement Board - }
 { + department + } shall use the account to assist landowners in
the implementation of strategies intended to protect and restore
native species of fish, wildlife and plants and to maintain
long-term ecological health, diversity and productivity in a
manner consistent with statewide, regional or local conservation
plans. The   { - board - }   { + department + } shall seek to
fund those strategies that  { + the Access and Habitat Board
determines + } offer the greatest public benefit at the lowest
cost.
  (3) The account shall consist of moneys appropriated to it by
the Legislative Assembly and moneys provided to the board by
federal, state, regional or local governments for the purposes
specified in this section. The   { - board - }
 { + department + } may accept private moneys in the form of
gifts, grants and bequests for deposit into the account.
  SECTION 22. ORS 541.384 is amended to read:
  541.384. (1) The   { - Oregon Watershed Enhancement Board - }
 { + State Department of Fish and Wildlife + } shall initiate a
watershed management program that relies on the establishment of
voluntary local watershed councils comprised of residents, state
and federal agency staff, members of federally recognized Indian
tribes and other citizens interested in the management of
watersheds and that provides for the development by these
partnerships of local plans that may include but are not limited
to the assessment of the watershed condition, the creation of a
watershed action plan and a strategy for implementing the action
plan. The program shall focus state resources on the achievement
of sustainable watershed health, including  { + improving access
to + } funding  { + for + } major projects that contribute to the
overall health of a watershed. In addition, the   { - board shall
fund - }   { + department may assist persons implementing + }
smaller, voluntary projects for watershed enhancement and for
restoration of riparian areas and associated uplands { +  in
obtaining funding for the projects from the Access and Habitat
Board + }.
  (2) In carrying out the program under subsection (1) of this
section, the   { - board - }   { + department + } may designate
high priority watersheds. However, the designation of high
priority watersheds is intended only as a management tool for
state agencies in allocating resources to support coordinated
watershed management activities. Such designation is not intended
to establish or confer any right, duty or authority, nor to have
any legal significance beyond that described in this section, nor
to discourage or prohibit the formation and function of voluntary
local watershed councils in other watersheds.
  (3) The elected officials representing the appropriate local
government groups containing or within a proposed watershed
council area shall determine whether to participate in the
voluntary formation of a local watershed council. When multiple
local government groups are involved within an area that would be
served by a watershed council, the affected local government
groups shall together determine their respective roles and the
appropriate method for appointing members to a local watershed
council.
  SECTION 23. ORS 541.388 is amended to read:
  541.388. (1) Local government groups   { - are encouraged
to - }   { + may + } form voluntary local watershed councils in
accordance with the guidelines set forth in subsection (2) of
this section. The
  { - Oregon Watershed Enhancement Board - }   { + State
Department of Fish and Wildlife + } may work cooperatively with
any local watershed council that may be formed.  { + The
department shall forward to the Access and Habitat Board + }
requests from local watershed councils for state assistance
 { - shall be evaluated - }  { + . The board shall evaluate the
requests + } on the basis of whether the requesting organization
reflects the interests of the affected watershed and the
potential to protect and enhance the quality of the watershed in
question.
  (2) Local watershed councils formed under subsection (1) of
this section shall consist of a majority of local residents,
including local officials. A watershed council may be a new or
existing organization as long as the council represents a balance
of interested and affected persons within the watershed and
assures a high level of citizen involvement in the development
and implementation of a watershed action program. A local
watershed council may include representatives of local
government, representatives of nongovernment organizations and
private citizens, including but not limited to:
  (a) Representatives of local and regional boards, commissions,
districts and agencies;
  (b) Representatives of federally recognized Indian tribes;
  (c) Public interest group representatives;
  (d) Private landowners;
  (e) Industry representatives;
  (f) Members of academic, scientific and professional
communities; and
  (g) Representatives of state and federal agencies.
  (3) If more than one watershed council exists in a county, each
watershed council shall periodically report the activities of the
council to the county governing body.
  (4) The Oregon Department of Administrative Services may
provide to voluntary local watershed councils and their officers,
employees and agents acting within the scope of their employment
or duties, protection against liability as part of the insurance
provided to the   { - Oregon Watershed Enhancement Board - }
 { + State Department of Fish and Wildlife + } pursuant to ORS
278.120 to 278.215.   { - The Oregon Watershed Enhancement Board,
after consulting the Oregon Department of Administrative Services
and local watershed councils, shall establish guidelines for
liability coverage and limits of coverage. - }  The Oregon
Department of Administrative Services shall determine any
additional contributions to be apportioned to the   { - Oregon
Watershed Enhancement Board - }   { + State Department of Fish
and Wildlife under ORS 278.125  + }for extending insurance to
voluntary local watershed councils, and the   { - Oregon
Watershed Enhancement Board - }   { + State Department of Fish
and Wildlife + } shall pay the assessments from such moneys as
may be available for those assessments.
  SECTION 24. ORS 541.390 is amended to read:
  541.390. In addition to the duties conferred on the Natural
Resources Division of the State Department of Agriculture under
ORS 561.400 and 568.210 to 568.808 and 568.900 to 568.933, the
division shall:
  (1) In cooperation with the   { - Oregon Watershed Enhancement
Board - }  { +  State Department of Fish and Wildlife + },
provide appropriate personnel who, under the direction of the
 { - board - }  { +  State Department of Fish and Wildlife + },
shall:
  (a) Serve as community advisors to cooperatively develop
watershed enhancement projects with volunteers; and
  (b) Cooperatively evaluate watershed enhancement projects with
those responsible for project implementation.
  (2) Provide technical assistance to individuals responsible for
implementation of a watershed enhancement project.
  (3) Work with the   { - Oregon Watershed Enhancement Board - }
 { + State Department of Fish and Wildlife + } to coordinate the
implementation of enhancement projects with the activities of
other agencies, including but not limited to, those state and
federal agencies participating in coordinated resource management
planning.
  SECTION 25. ORS 541.392 is amended to read:
  541.392. (1) The   { - Oregon Watershed Enhancement Board - }
 { + State Department of Fish and Wildlife  + }shall report
biennially to the Legislative Assembly on the implementation of
the management program under ORS 541.384 and   { - grants awarded
under ORS 541.399 - }  { +  the projects approved for funding
from the Watershed Improvement Grant Fund by the Access and
Habitat Board + }. The report shall include but need not be
limited to:
  (a) An explanation of the effectiveness and workability of the
partnership process described in ORS 541.384;
  (b) A description of any modifications to the process that have
been instituted;
  (c) Recommendations concerning the need for future legislative
action; and
  (d) Information about the use of moneys received by and
distributed by the   { - board - }   { + department + } under
section 4b, Article XV of the Oregon Constitution.
  (2) The   { - board - }   { + department  + }shall include with
each report under subsection (1) of this section a copy of each
audit completed pursuant to section 4c, Article XV of the Oregon
Constitution.
  SECTION 26. ORS 541.395 is amended to read:
  541.395. In order to assist the   { - Oregon Watershed
Enhancement Board - }   { + State Department of Fish and
Wildlife + } in developing and maintaining a centralized
repository under ORS 541.370, the following agencies shall
provide the   { - board - }   { + department + } with a copy of
any report produced by the agency that is related to enhancement
or restoration of riparian areas or associated uplands:
  (1) The Department of Environmental Quality.
    { - (2) The State Department of Fish and Wildlife. - }
    { - (3) - }   { + (2) + } The Water Resources Department.
    { - (4) - }   { + (3) + } The State Forestry Department.
    { - (5) - }   { + (4) + } The State Department of
Agriculture.
    { - (6) - }   { + (5) + } The agricultural extension service
of Oregon State University.
  SECTION 27. ORS 541.396 is amended to read:
  541.396. (1) In accordance with the applicable provisions of
ORS 183.310 to 183.550, the   { - Oregon Watershed Enhancement
Board - }  { + State Department of Fish and Wildlife  + }shall
adopt rules and standards to carry out the watershed enhancement
program.
  (2) The rules and standards adopted by the   { - board - }
 { + department + } under subsection (1) of this section shall
include, but need not be limited to:
  (a) Grant application requirements and review and selection
criteria for projects to receive  { + approval from the Access
and Habitat Board for + }   { - assistance or - }  funding from
the   { - board - }  { +  department + }, including funding from
the Flexible Incentives Account established under ORS 541.381.
  (b) Criteria for distributing to those entities specified in
ORS 541.375 those funds appropriated to the   { - board - }
 { + department + } for funding projects. The criteria shall
include a process for periodic review of the distribution by the
joint legislative committee created pursuant to ORS 171.551.
  (c) Conditions for approval by the board for implementation of
a project including but not limited to:
  (A) Provisions satisfactory to the board for inspection and
evaluation of the implementation of a project { + , + } including
all necessary agreements to allow the   { - board - }
 { + department + } and employees of any cooperating agency
providing staff services for the   { - board - }
 { + department + } access to the project area;
  (B) Provisions satisfactory to the board for controlling the
expenditure of and accounting for any funds   { - granted by the
board - }  { + provided by the department + } for implementation
of the project;
  (C) An agreement that those initiating the project will submit
all pertinent information and research gained from the project to
the   { - board - }   { + department + } for inclusion in the
centralized repository established by the   { - board - }
 { + department + }; and
  (D) Provisions for the continued maintenance of the portion of
the riparian area or associated uplands enhanced by the project.
  SECTION 28. ORS 541.397 is amended to read:
  541.397. (1) The Watershed Improvement Grant Fund is
established separate and distinct from the General Fund. The
Watershed Improvement Grant Fund shall consist of all moneys
placed in the fund as provided by law. All moneys in the
Watershed Improvement Grant Fund are continuously appropriated to
fund watershed improvement grants described in ORS 541.399 and
541.401.  Interest accruing to the Watershed Improvement Grant
Fund shall be credited to the Restoration and Protection Research
Fund created under ORS 541.378. Funds appropriated and not
expended by the completion of a biennium shall remain in the
Watershed Improvement Grant Fund.
  (2) The   { - Oregon Watershed Enhancement Board created under
ORS 541.360 - }   { + State Department of Fish and Wildlife + }
shall administer the Watershed Improvement Grant Fund and provide
grants from the fund for the purposes described in ORS 541.399
and 541.401 in the manner described under ORS 541.399 and
541.401.
  (3) In addition to the funds made available for the purposes of
ORS 541.351 to 541.415 under ORS 541.399, the   { - board - }
 { + department + } also may accept gifts and grants from any
public or private source for the purpose of providing the grants
described in subsection (2) of this section.
  SECTION 29. ORS 541.401 is amended to read:
  541.401.  { + (1) + } The   { - Oregon Watershed Enhancement
Board - }   { + State Department of Fish and Wildlife + } may
award funds from the Watershed Improvement Grant Fund only for
the purposes listed in ORS 541.399  { +  and only if the project
is approved by the Access and Habitat Board + }. Any project that
the board approves for funding   { - shall comply with the
following criteria - }  { +  must + }:
    { - (1) - }   { + (a) + }   { - There is - }   { + Have + } a
matching contribution from other program funds, in-kind services
or other investment in the project; { +  and + }
    { - (2) The project to be funded is reviewed and approved by
a technical committee in accordance with ORS 541.370 (3); and - }
 
    { - (3) - }   { + (b) + }   { - The project provides - }
 { + Provide + } a public benefit through improved:
    { - (a) - }   { + (A) + } Water quality;
    { - (b) - }   { + (B) + } Fish or wildlife habitat; or
    { - (c) - }   { + (C) + } Public information or education on
a watershed function.
   { +  (2) In addition to the criteria for project approval
listed in subsection (1) of this section, the board may consider,
in deciding whether to approve the proposed project for funding,
whether the project has been reviewed and approved by a technical
committee established pursuant to ORS 541.370. + }
  SECTION 30. ORS 541.420 is amended to read:
  541.420. (1) The   { - Oregon Watershed Enhancement Board - }
 { + State Department of Fish and Wildlife + } shall, by January
15 of each odd-numbered year, submit a report to the Governor and
to the appropriate committee or committees of the Legislative
Assembly that assesses the implementation and effectiveness of
the Oregon Plan in the state. The report shall address each
drainage basin in the state and shall include, but need not be
limited to:
  (a) A status report on watershed and key habitat conditions in
the drainage basin based on available information;
  (b) An assessment of data and information needs deemed critical
to monitoring and evaluating watershed and habitat enhancement
programs and efforts;
  (c) An overview of state agency programs addressing watershed
conditions;
  (d) An overview of voluntary restoration activities addressing
watershed conditions;
  (e) A summary of investments made by the   { - board - }
 { + department + } from funds received under section 4b, Article
XV of the Oregon Constitution, and all other sources; and
  (f) The recommendations of the   { - board - }
 { + department + } for enhancing the effectiveness of Oregon
Plan implementation in each drainage basin.
  (2) In order to provide the   { - board - }   { + department
 + }with the information necessary to complete the report
described in subsection (1) of this section, each natural
resources agency shall provide information requested by the
 { - board - }   { + department + } in the format and at the
times determined by the   { - board - }  { +  department + }.
  (3) For purposes of this section, 'natural resources agency'
includes:
  (a) Department of Environmental Quality;
  (b) State Department of Agriculture;
    { - (c) State Department of Fish and Wildlife; - }
    { - (d) - }   { + (c) + } State Forestry Department;
    { - (e) - }   { + (d) + } Division of State Lands;
    { - (f) - }   { + (e) + } Water Resources Department;
    { - (g) - }   { + (f) + } Department of Land Conservation and
Development;
    { - (h) - }   { + (g) + } State Department of Geology and
Mineral Industries;
    { - (i) Oregon Watershed Enhancement Board; - }
    { - (j) - }   { + (h) + } Fish and Wildlife Division of the
Department of State Police;
    { - (k) - }   { + (i) + } Department of Transportation;
    { - (L) - }   { + (j) + } State Parks and Recreation
Department;
    { - (m) - }   { + (k) + } Economic and Community Development
Department;
    { - (n) - }   { + (L) + } State Marine Board; and
    { - (o) - }   { + (m) + } Any other state agency that is
required to manage, allocate or protect natural resources, either
as the primary responsibility of the agency or in conjunction
with the primary responsibilities of the agency.
    { - (4) In addition to the report specified under subsection
(1) of this section, the Oregon Watershed Enhancement Board shall
report regularly during the interim on the implementation of the
Oregon Plan to the joint legislative committee created under ORS
171.551. - }
  SECTION 31. ORS 541.700 is amended to read:
  541.700. As used in ORS 541.700 to 541.855, unless the context
requires otherwise:
  (1) 'Commission' means the Water Resources Commission appointed
under ORS 536.022.
  (2) 'Construction' means the construction, or improvement or
rehabilitation, in whole or in part, of a water development
project, including planning and engineering work, purchasing or
refinancing directly related to such construction or improvement
 
or rehabilitation, or any combination of such construction or
improvement or rehabilitation. As used in this subsection:
  (a) 'Purchasing' means the purchasing of materials, land or
existing facilities necessary to complete a water development
project.
  (b) 'Refinancing' includes refinancing existing debt of a water
developer, as defined in subsection (7)(f) to (m) and (o) of this
section, in order to complete a water development project or to
provide adequate security for a water development loan, but does
not include refinancing existing debt only to reduce interest
rates or costs to the borrower or to pay off existing debt.
  (3) 'Director' means the Water Resources Director appointed
pursuant to ORS 536.032.
  (4) 'Federal water development project' means any water
development project that receives funding from the federal
government, or any agency or instrumentality of the United
States.
  (5)(a) 'Secondary use' means:
  (A) Any water-related recreational use.
  (B) Any flood control use.
  (C) Any power generation use.
  (D) Any water supply system utilized as a domestic water system
for the benefit of an individual residence related to the
operation of the water development project.
  (b) 'Secondary use' does not include any use that is
incompatible with a water development project.
  (6) 'Water development project' means:
  (a) An undertaking, in whole or in part, in this state for the
purpose of irrigation, including structures for the application
of water for agricultural harvest activities, dams, storage
reservoirs, wells or well systems, pumping plants, pipelines,
canals, ditches, revetments, water supply systems used for the
purpose of agricultural temperature control and any other
structure, facility and property necessary or convenient for
supplying lands with water for irrigation purposes.
  (b) An undertaking, in whole or in part, in this state for the
purpose of drainage, including ditching, tiling, piping, channel
improvement, pumping plants or other agronomically approved
methods of land drainage that will increase soil versatility and
productivity.
  (c) An undertaking, in whole or in part, in this state for the
purpose of providing water for municipal use, which may include
safe drinking water for communities with population less than
30,000, including dams, storage reservoirs, wells or well
systems, pumping plants, treatment facilities, pipelines, canals,
ditches, revetments and all other structures and facilities
necessary or convenient for supplying water. An undertaking may
provide water to two or more communities with a combined
population of more than 30,000. An undertaking may be part of a
project that provides water to a community with a population of
more than 30,000, but loans of moneys from the Water Development
Fund, including moneys in ORS 285B.563 (11) may be made only to
communities served by the project that have a population of less
than 30,000.
  (d) An undertaking, in whole or in part, in this state for the
purpose of fish protection, including fish screening or by-pass
devices, fishways and all other structures and facilities
necessary or convenient for providing fish protection.
  (e) An undertaking, in whole or in part, in this state for the
purpose of enhancing watershed health or improving fish habitat,
including methods and materials to restore, maintain and enhance
the biological, chemical and physical integrity of the riparian
zones and associated uplands of the state's rivers, lakes and
estuaries systems and recommended by the   { - Oregon Watershed
Enhancement Board established under ORS 541.360 - }  { +  State
 
Department of Fish and Wildlife under its watershed management
program established pursuant to ORS 541.384 + }.
  (f) Secondary uses in conjunction with projects described in
paragraphs (a) to (e) of this subsection.
  (7) 'Water developer' means:
  (a) Any individual resident of this state;
  (b) Any partnership for profit subject to the provisions of ORS
chapter 67, 68 or 70, whose principal income is from farming in
Oregon;
  (c) Any corporation for profit subject to the provisions of ORS
chapter 60, whose principal income is from farming in Oregon;
  (d) Any nonprofit corporation subject to the provisions of ORS
chapter 65, whose principal income is from farming in Oregon;
  (e) Any cooperative subject to the provisions of ORS chapter
62, whose principal income is from farming in Oregon;
  (f) Any irrigation district organized under or subject to ORS
chapter 545;
  (g) Any water improvement district organized under ORS chapter
552;
  (h) Any water control district organized under ORS chapter 553;
  (i) Any irrigation or drainage corporation organized under or
subject to ORS chapter 554;
  (j) Any drainage district organized under ORS chapter 547 or
subject to all or part of ORS chapter 545;
  (k) Any corporation, cooperative, company or other association
formed prior to 1917 for the purpose of distributing water for
irrigation purposes;
  (L) Any port district organized under ORS 777.005 to 777.725,
777.915 to 777.953 and 777.990;
  (m) Any city or county;
  (n) Any organization formed for the purpose of distributing
water for community water supply; or
  (o) Any local soil and water conservation district organized
under ORS 568.210 to 568.808 and 568.900 to 568.933.
  SECTION 32. ORS 561.020 is amended to read:
  561.020. (1) The State Department of Agriculture shall have
full responsibility and authority for all the inspectional,
regulatory and market development work provided for under the
provisions of all statutes which the department is empowered and
directed to enforce.
  (2) The department shall encourage and work toward long-range
planning to develop and promote the agricultural resources of
Oregon that they may contribute as greatly as possible to the
future economy of the state.
  (3) The Director of Agriculture shall coordinate any activities
of the department related to a watershed enhancement project
approved by the   { - Oregon Watershed Enhancement - }
 { + Access and Habitat + } Board under ORS 541.375 with
activities of other cooperating state and federal agencies
participating in the project.
  (4) The director   { - of Agriculture - }  shall conduct any
activities of the department in a manner consistent with the goal
set forth in ORS 468B.155.
  SECTION 33. ORS 561.080 is amended to read:
  561.080. Oregon State University shall have full authority and
responsibility:
  (1) For resident instruction in all branches of agriculture.
  (2) For research and experimentation in all branches and phases
of agriculture as set forth in federal and state laws creating,
maintaining and defining the work of the agricultural experiment
stations.
  (3) For educational and demonstrational work in all branches
and phases of agriculture under authority of all federal and
state laws creating, maintaining and defining the work of the
Agricultural Extension Service.
 
  (4) For collection and dissemination of statistical information
bearing upon crop and market conditions and trends of
agricultural production, including agricultural outlook reports
and market news reports.
  (5) To conduct educational work in the field of marketing,
which includes information, advice and assistance relative to
organizing and operating cooperative associations and marketing
agencies, in accordance with the division of functions set forth
in this chapter.
  (6) For coordinating any activities of the agricultural
extension service related to a watershed enhancement project
approved by the   { - Oregon Watershed Enhancement - }
 { + Access and Habitat + } Board under ORS 541.375 with
activities of other cooperating state and federal agencies
participating in the project.
  SECTION 34. ORS 561.400 is amended to read:
  561.400. (1) There is established within the State Department
of Agriculture a Natural Resources Division which shall have the
duties and powers conferred by subsection (2) of this section, by
ORS 568.210 to 568.808 and 568.900 to 568.933 and by the Director
of Agriculture. The administrator of the division shall be
appointed by the director under ORS 561.050 after consultation
with the Soil and Water Conservation Commission.
  (2) In addition to other duties and powers, the division is
authorized:
  (a) To review and approve or disapprove all projects,
practices, budgets, contracts or regulations of soil and water
conservation districts organized under ORS 568.300 to 568.790;
  (b) To keep the directors of the soil and water conservation
districts informed of the activities and experiences of other
districts, to assist in the interchange of advice and information
among the districts, and to promote cooperation among the
districts;
  (c) To coordinate, as much as possible, the various programs of
the soil and water conservation districts;
  (d) To solicit the cooperation and assistance of any department
or agency of the United States or other department or agency of
this state;
  (e) To disseminate information concerning the activities and
programs of soil and water conservation districts and encourage
formation of such districts in areas where they would be
desirable and feasible;
  (f) To receive, from any source, materials, machinery and
equipment and to transfer such to any soil and water conservation
district under terms and conditions deemed appropriate, including
payment by the district for costs of delivery or use;
  (g) To receive from any public or private source, donations,
gifts and grants for the furtherance of soil and water
conservation, the provisions of ORS 568.225 or the protection of
natural resources affecting agriculture, which moneys are
continuously appropriated to the department for the
administration of the Natural Resources Division and functions
related thereto and for furnishing support and financial
assistance for the projects and activities of soil and water
conservation districts or other projects and activities relating
to natural resources affecting agriculture or consistent with ORS
568.225;
  (h) To establish the procedures for developing and implementing
extended stream bank erosion plans under ORS 561.403;
  (i) To review and evaluate documents and proposals of the
federal government, agencies of the State of Oregon, counties,
cities, other governmental bodies or subdivisions thereof
relating to natural resources affecting agriculture or consistent
with ORS 568.225; and
  (j) To assist in the development of agricultural management
procedures and practices relating to natural resources for the
prevention of soil erosion and water contamination or enhancement
of water quality and quantity.
  (3) The administrator of the division shall coordinate any
activities of the Natural Resources Division related to a
watershed enhancement project approved by the   { - Oregon
Watershed Enhancement - }   { + Access and Habitat + } Board
under ORS 541.375 with activities of other cooperating state and
federal agencies participating in the project.
  (4) In addition to or in lieu of the coverage provided pursuant
to ORS 30.282 (3), the Oregon Department of Administrative
Services may provide to soil and water conservation districts and
their officers, employees and agents acting within the scope of
their employment or duties, protection against liability as part
of the insurance provided to the State Department of Agriculture
pursuant to ORS 278.120 to 278.215. The Oregon Department of
Administrative Services shall determine any additional
contributions to be apportioned to the State Department of
Agriculture under ORS 278.110 for extending insurance to soil and
water conservation districts, and the State Department of
Agriculture shall pay the assessments from such moneys as may be
available therefor.
  SECTION 35. ORS 805.256 is amended to read:
  805.256. (1) After deduction of the cost of administration of
the salmon license plate program, moneys from the surcharge
imposed by ORS 805.255 shall be transferred and appropriated as
follows:
  (a) Half of the moneys shall be transferred to the   { - Oregon
Watershed Enhancement Board established under ORS 541.360 - }
 { + State Department of Fish and Wildlife  + }and shall be
continuously appropriated to the   { - board - }
 { + department + } for watershed enhancement projects under ORS
541.375 that are designed to restore salmonid habitats and
improve the health of streams that support salmonid populations;
and
  (b) Half of the moneys shall be transferred to the State Parks
and Recreation Department Fund established under ORS 390.134 (1)
to (6) and continuously appropriated for the purposes described
in ORS 390.134 (3).
  (2) As used in this section, 'the cost of administration of the
salmon license plate program' is the sum of all Department of
Transportation expenses for the issuance or transfer of salmon
license plates under ORS 805.255 that are above the normal costs
of issuing, renewing and transferring license plates in the
normal course of the business of the department. These expenses
include, but are not limited to, the costs of collecting the
salmon license plate surcharge and transferring salmon license
plates.
  SECTION 36. ORS 171.553 is amended to read:
  171.553. The joint legislative committee created pursuant to
ORS 171.551:
  (1) Shall be responsible for oversight and coordination of
Oregon Plan activities and other stream restoration and species
recovery activities;
  (2) Shall be responsible for any additional coordination,
oversight or advisory duties related to the management of natural
resources in Oregon, as the President of the Senate and the
Speaker of the House of Representatives may assign; and
  (3) May:
  (a) Receive informational reports from the Healthy Streams
Partnership established under ORS 541.407, from the Independent
Multidisciplinary Science Team created under ORS 541.409, from
the Coastal Salmon Restoration and Production Task Force
established under section 2, chapter 544, Oregon Laws 1995, and
from other sources and, on the basis of such informational
reports, recommend changes to the statewide stream and fish and
wildlife species enhancement efforts undertaken to prevent a
species listing as threatened or endangered, or to restore a
species that is listed.
  (b) Review the activities of the individuals and state and
federal agencies implementing the Oregon Plan and other programs
related to species enhancement, protection and restoration of
wildlife habitat, and improvement of the health of Oregon's
streams.
  (c) Review requests for and make recommendations to the Joint
Legislative Committee on Ways and Means or, during the interim
between legislative sessions, to the Emergency Board, regarding
grant proposals and other requests for funds submitted by the
  { - Oregon Watershed Enhancement Board or other - }  state
agencies responsible for implementing the Oregon Plan or other
species enhancement, protection and restoration of wildlife
habitat, or stream enhancement projects.
  (d) Review any memorandum of understanding or intergovernmental
agreement between a state agency and any other local, state or
federal agency to implement all or any portion of a program
described in ORS 541.405.
  (e) Review rules proposed for adoption by an agency to
implement the programs described in ORS 541.405.
  (f) Review the effectiveness of existing projects and programs.
  (g) Review research projects related to all factors that
influence the health of Oregon's streams.
  (h) Recommend implementation principles, priorities and
guidance for the programs described in ORS 541.405.
  SECTION 37. ORS 196.635 is amended to read:
  196.635. (1) The provisions of ORS 196.600 to 196.655 shall be
carried out by the Director of the Division of State Lands in
consultation with the State Department of Fish and Wildlife,
Department of Transportation, Department of Land Conservation and
Development, Department of Environmental Quality, Economic and
Community Development Department, federal natural resources and
regulatory agencies, affected local governments and special
districts, conservation organizations and other interested
parties.
  (2) In cooperation with the parties in subsection (1) of this
section, the director, in consultation with the State Land Board,
shall:
  (a) Review opportunities for inclusion of appropriate wetlands
in the Statewide Comprehensive Outdoor Recreation Plan.
  (b) Develop and recommend a wetlands priority plan for
inclusion in the Statewide Comprehensive Outdoor Recreation Plan.
The wetlands priority plan shall be complementary to the purposes
and programs under ORS 196.600 to 196.655.
  (3) The director shall confer with the   { - Oregon Watershed
Enhancement Board - }   { + State Department of Fish and
Wildlife + } to develop criteria to certify watershed enhancement
projects as mitigation banks.
  SECTION 38. ORS 468.035 is amended to read:
  468.035. (1) Subject to policy direction by the Environmental
Quality Commission, the Department of Environmental Quality:
  (a) Shall encourage voluntary cooperation by the people,
municipalities, counties, industries, agriculture, and other
pursuits, in restoring and preserving the quality and purity of
the air and the waters of the state in accordance with rules and
standards established by the commission.
  (b) May conduct and prepare, independently or in cooperation
with others, studies, investigations, research and programs
pertaining to the quality and purity of the air or the waters of
the state and to the treatment and disposal of wastes.
  (c) Shall advise, consult, and cooperate with other agencies of
the state, political subdivisions, other states or the federal
government, in respect to any proceedings and all matters
pertaining to control of air or water pollution or for the
 
formation and submission to the legislature of interstate
pollution control compacts or agreements.
  (d) May employ personnel, including specialists and
consultants, purchase materials and supplies, and enter into
contracts necessary to carry out the purposes set forth in ORS
448.305, 454.010 to 454.040, 454.205 to 454.255, 454.505 to
454.535, 454.605 to 454.755 and ORS chapters 468, 468A and 468B.
  (e) Shall conduct and supervise programs of air and water
pollution control education, including the preparation and
distribution of information regarding air and water pollution
sources and control.
  (f) Shall provide advisory technical consultation and services
to units of local government and to state agencies.
  (g) Shall develop and conduct demonstration programs in
cooperation with units of local government.
  (h) Shall serve as the agency of the state for receipt of
moneys from the federal government or other public or private
agencies for the purposes of air and water pollution control,
studies or research and to expend moneys after appropriation
thereof for the purposes given.
  (i) Shall make such determination of priority of air or water
pollution control projects as may be necessary under terms of
statutes enacted by the Congress of the United States.
  (j) Shall seek enforcement of the air and water pollution laws
of the state.
  (k) Shall institute or cause to be instituted in a court of
competent jurisdiction, proceedings to compel compliance with any
rule or standard adopted or any order or permit, or condition
thereof, issued pursuant to ORS 448.305, 454.010 to 454.040,
454.205 to 454.255, 454.505 to 454.535, 454.605 to 454.755 and
ORS chapters 468, 468A and 468B.
  (L) Shall encourage the formulation and execution of plans in
conjunction with air and water pollution control agencies or with
associations of counties, cities, industries and other persons
who severally or jointly are or may be the source of air or water
pollution, for the prevention and abatement of pollution.
  (m) May determine, by means of field studies and sampling, the
degree of air or water pollution in various regions of the state.
  (n) May perform such other and further acts as may be
necessary, proper or desirable to carry out effectively the
duties, powers and responsibilities of the department as set
forth in ORS 448.305, 454.010 to 454.040, 454.205 to 454.255,
454.505 to 454.535, 454.605 to 454.755 and ORS chapters 468, 468A
and 468B.
  (o) Shall coordinate any activities of the department related
to a watershed enhancement project approved by the   { - Oregon
Watershed Enhancement - }   { + Access and Habitat + } Board
under ORS 541.375 with activities of other cooperating state and
federal agencies participating in the project.
  (2) Nothing in this section shall affect the authority of the
Department of Human Services to make and enforce rules:
  (a) Regarding the quality of water for human or animal
consumption pursuant to ORS 448.115 to 448.325, 624.010 to
624.120 and 624.310 to 624.430; and
  (b) Regarding the quality of water for public swimming places
pursuant to ORS 431.110.
  (3) Nothing in this section shall prevent the State Department
of Agriculture or the State Forestry Department from
independently receiving moneys from a public or private agency
for the purposes of preventing or controlling air or water
pollution resulting from agricultural or silvicultural activities
or soil erosion, or for research related to such purposes.
  (4)(a) In awarding a public contract under ORS chapter 279 for
a removal or remedial action pursuant to ORS 465.200 to 465.510,
465.517 to 465.548 and 465.992, a corrective action or cleanup
action pursuant to ORS 466.005 to 466.385, 466.605 to 466.680 or
466.706 to 466.882 or a removal pursuant to ORS 468B.005 to
468B.030, 468B.035, 468B.048 to 468B.085, 468B.090, 468B.093,
468B.095 and 468B.300 to 468B.500, the department, and the Oregon
Department of Administrative Services, when administering the
establishment of such a contract on behalf of the Department of
Environmental Quality under ORS 279.712, shall subtract from the
amount of any bid or proposal the hazardous waste management fees
and solid waste fees that would be required by law to be paid to
the department for waste that would be disposed of at a solid
waste disposal site or a hazardous waste or PCB disposal
facility, based on the bid or proposal. The amount to be
subtracted shall be established on the basis of reasonable
preprocurement estimates of the amount of waste that would be
disposed of under the contract and that would be subject to those
fees.
  (b) The subtraction for fees under paragraph (a) of this
subsection shall apply only to a contract reasonably anticipated
to involve the disposal of no less than 50 tons of hazardous
waste or no less than 500 tons of solid waste. The Legislative
Assembly finds that making accurate advance estimates of amounts
of waste that would be disposed of in projects of this character
is technically challenging and requires the application of
professional discretion. Therefore, no award of a contract under
this subsection shall be subject to challenge, under ORS 279.067
or otherwise, on the ground of the inaccuracy or claimed
inaccuracy of any such estimate.
  (c) The subtraction for fees under paragraph (a) of this
subsection shall not apply to the establishment, by or on behalf
of the department, of master contracts by which the department
engages the services of a contractor over a period of time for
the purpose of issuing work orders for the performance of
environmental activities on a project or projects for which the
amounts of waste to be disposed of were not reasonably identified
at the inception of the master contracts. However, the department
shall require any contractor under a master contract to apply the
subtraction for fees under paragraph (a) of this subsection in
the selection of any subcontractor to perform the removal of
waste in amounts equaling or exceeding the amounts set forth in
paragraph (b) of this subsection. Nothing in this subsection
shall be construed to prohibit the department or the Oregon
Department of Administrative Services from establishing contracts
pursuant to this section through contracting procedures
authorized by ORS chapter 279 that do not require the
solicitation of bids or proposals.
  SECTION 39. ORS 468.035, as amended by section 103, chapter
849, Oregon Laws 1999, is amended to read:
  468.035. (1) Subject to policy direction by the Environmental
Quality Commission, the Department of Environmental Quality:
  (a) Shall encourage voluntary cooperation by the people,
municipalities, counties, industries, agriculture, and other
pursuits, in restoring and preserving the quality and purity of
the air and the waters of the state in accordance with rules and
standards established by the commission.
  (b) May conduct and prepare, independently or in cooperation
with others, studies, investigations, research and programs
pertaining to the quality and purity of the air or the waters of
the state and to the treatment and disposal of wastes.
  (c) Shall advise, consult, and cooperate with other agencies of
the state, political subdivisions, other states or the federal
government, in respect to any proceedings and all matters
pertaining to control of air or water pollution or for the
formation and submission to the legislature of interstate
pollution control compacts or agreements.
  (d) May employ personnel, including specialists, consultants
and hearing officers, purchase materials and supplies, and enter
into contracts necessary to carry out the purposes set forth in
ORS 448.305, 454.010 to 454.040, 454.205 to 454.255, 454.505 to
454.535, 454.605 to 454.755 and ORS chapters 468, 468A and 468B.
  (e) Shall conduct and supervise programs of air and water
pollution control education, including the preparation and
distribution of information regarding air and water pollution
sources and control.
  (f) Shall provide advisory technical consultation and services
to units of local government and to state agencies.
  (g) Shall develop and conduct demonstration programs in
cooperation with units of local government.
  (h) Shall serve as the agency of the state for receipt of
moneys from the federal government or other public or private
agencies for the purposes of air and water pollution control,
studies or research and to expend moneys after appropriation
thereof for the purposes given.
  (i) Shall make such determination of priority of air or water
pollution control projects as may be necessary under terms of
statutes enacted by the Congress of the United States.
  (j) Shall seek enforcement of the air and water pollution laws
of the state.
  (k) Shall institute or cause to be instituted in a court of
competent jurisdiction, proceedings to compel compliance with any
rule or standard adopted or any order or permit, or condition
thereof, issued pursuant to ORS 448.305, 454.010 to 454.040,
454.205 to 454.255, 454.505 to 454.535, 454.605 to 454.755 and
ORS chapters 468, 468A and 468B.
  (L) Shall encourage the formulation and execution of plans in
conjunction with air and water pollution control agencies or with
associations of counties, cities, industries and other persons
who severally or jointly are or may be the source of air or water
pollution, for the prevention and abatement of pollution.
  (m) May determine, by means of field studies and sampling, the
degree of air or water pollution in various regions of the state.
  (n) May perform such other and further acts as may be
necessary, proper or desirable to carry out effectively the
duties, powers and responsibilities of the department as set
forth in ORS 448.305, 454.010 to 454.040, 454.205 to 454.255,
454.505 to 454.535, 454.605 to 454.755 and ORS chapters 468, 468A
and 468B.
  (o) Shall coordinate any activities of the department related
to a watershed enhancement project approved by the   { - Oregon
Watershed Enhancement - }   { + Access and Habitat + } Board
under ORS 541.375 with activities of other cooperating state and
federal agencies participating in the project.
  (2) Nothing in this section shall affect the authority of the
Department of Human Services to make and enforce rules:
  (a) Regarding the quality of water for human or animal
consumption pursuant to ORS 448.115 to 448.325, 624.010 to
624.120 and 624.310 to 624.430; and
  (b) Regarding the quality of water for public swimming places
pursuant to ORS 431.110.
  (3) Nothing in this section shall prevent the State Department
of Agriculture or the State Forestry Department from
independently receiving moneys from a public or private agency
for the purposes of preventing or controlling air or water
pollution resulting from agricultural or silvicultural activities
or soil erosion, or for research related to such purposes.
  (4)(a) In awarding a public contract under ORS chapter 279 for
a removal or remedial action pursuant to ORS 465.200 to 465.510,
465.517 to 465.548 and 465.992, a corrective action or cleanup
action pursuant to ORS 466.005 to 466.385, 466.605 to 466.680 or
466.706 to 466.882 or a removal pursuant to ORS 468B.005 to
468B.030, 468B.035, 468B.048 to 468B.085, 468B.090, 468B.093,
468B.095 and 468B.300 to 468B.500, the department, and the Oregon
Department of Administrative Services, when administering the
establishment of such a contract on behalf of the Department of
Environmental Quality under ORS 279.712, shall subtract from the
amount of any bid or proposal the hazardous waste management fees
and solid waste fees that would be required by law to be paid to
the department for waste that would be disposed of at a solid
waste disposal site or a hazardous waste or PCB disposal
facility, based on the bid or proposal. The amount to be
subtracted shall be established on the basis of reasonable
preprocurement estimates of the amount of waste that would be
disposed of under the contract and that would be subject to those
fees.
  (b) The subtraction for fees under paragraph (a) of this
subsection shall apply only to a contract reasonably anticipated
to involve the disposal of no less than 50 tons of hazardous
waste or no less than 500 tons of solid waste. The Legislative
Assembly finds that making accurate advance estimates of amounts
of waste that would be disposed of in projects of this character
is technically challenging and requires the application of
professional discretion. Therefore, no award of a contract under
this subsection shall be subject to challenge, under ORS 279.067
or otherwise, on the ground of the inaccuracy or claimed
inaccuracy of any such estimate.
  (c) The subtraction for fees under paragraph (a) of this
subsection shall not apply to the establishment, by or on behalf
of the department, of master contracts by which the department
engages the services of a contractor over a period of time for
the purpose of issuing work orders for the performance of
environmental activities on a project or projects for which the
amounts of waste to be disposed of were not reasonably identified
at the inception of the master contracts. However, the department
shall require any contractor under a master contract to apply the
subtraction for fees under paragraph (a) of this subsection in
the selection of any subcontractor to perform the removal of
waste in amounts equaling or exceeding the amounts set forth in
paragraph (b) of this subsection. Nothing in this subsection
shall be construed to prohibit the department or the Oregon
Department of Administrative Services from establishing contracts
pursuant to this section through contracting procedures
authorized by ORS chapter 279 that do not require the
solicitation of bids or proposals.
  SECTION 40. ORS 468.035, as amended by section 17, chapter 495,
Oregon Laws 2001, is amended to read:
  468.035. (1) Subject to policy direction by the Environmental
Quality Commission, the Department of Environmental Quality:
  (a) Shall encourage voluntary cooperation by the people,
municipalities, counties, industries, agriculture, and other
pursuits, in restoring and preserving the quality and purity of
the air and the waters of the state in accordance with rules and
standards established by the commission.
  (b) May conduct and prepare, independently or in cooperation
with others, studies, investigations, research and programs
pertaining to the quality and purity of the air or the waters of
the state and to the treatment and disposal of wastes.
  (c) Shall advise, consult, and cooperate with other agencies of
the state, political subdivisions, other states or the federal
government, in respect to any proceedings and all matters
pertaining to control of air or water pollution or for the
formation and submission to the legislature of interstate
pollution control compacts or agreements.
  (d) May employ personnel, including specialists and
consultants, purchase materials and supplies, and enter into
contracts necessary to carry out the purposes set forth in ORS
448.305, 454.010 to 454.040, 454.205 to 454.255, 454.505 to
454.535, 454.605 to 454.755 and ORS chapters 468, 468A and 468B.
  (e) Shall conduct and supervise programs of air and water
pollution control education, including the preparation and
 
distribution of information regarding air and water pollution
sources and control.
  (f) Shall provide advisory technical consultation and services
to units of local government and to state agencies.
  (g) Shall develop and conduct demonstration programs in
cooperation with units of local government.
  (h) Shall serve as the agency of the state for receipt of
moneys from the federal government or other public or private
agencies for the purposes of air and water pollution control,
studies or research and to expend moneys after appropriation
thereof for the purposes given.
  (i) Shall make such determination of priority of air or water
pollution control projects as may be necessary under terms of
statutes enacted by the Congress of the United States.
  (j) Shall seek enforcement of the air and water pollution laws
of the state.
  (k) Shall institute or cause to be instituted in a court of
competent jurisdiction, proceedings to compel compliance with any
rule or standard adopted or any order or permit, or condition
thereof, issued pursuant to ORS 448.305, 454.010 to 454.040,
454.205 to 454.255, 454.505 to 454.535, 454.605 to 454.755 and
ORS chapters 468, 468A and 468B.
  (L) Shall encourage the formulation and execution of plans in
conjunction with air and water pollution control agencies or with
associations of counties, cities, industries and other persons
who severally or jointly are or may be the source of air or water
pollution, for the prevention and abatement of pollution.
  (m) May determine, by means of field studies and sampling, the
degree of air or water pollution in various regions of the state.
  (n) May perform such other and further acts as may be
necessary, proper or desirable to carry out effectively the
duties, powers and responsibilities of the department as set
forth in ORS 448.305, 454.010 to 454.040, 454.205 to 454.255,
454.505 to 454.535, 454.605 to 454.755 and ORS chapters 468, 468A
and 468B.
  (o) Shall coordinate any activities of the department related
to a watershed enhancement project approved by the   { - Oregon
Watershed Enhancement - }   { + Access and Habitat + } Board
under ORS 541.375 with activities of other cooperating state and
federal agencies participating in the project.
  (2) Nothing in this section shall affect the authority of the
Department of Human Services to make and enforce rules:
  (a) Regarding the quality of water for human or animal
consumption pursuant to ORS 448.115 to 448.325, 624.010 to
624.120 and 624.310 to 624.430; and
  (b) Regarding the quality of water for public swimming places
pursuant to ORS 431.110.
  (3) Nothing in this section shall prevent the State Department
of Agriculture or the State Forestry Department from
independently receiving moneys from a public or private agency
for the purposes of preventing or controlling air or water
pollution resulting from agricultural or silvicultural activities
or soil erosion, or for research related to such purposes.
  (4)(a) In awarding a public contract under ORS chapter 279 for
a removal or remedial action pursuant to ORS 465.200 to 465.510,
a corrective action or cleanup action pursuant to ORS 466.005 to
466.385, 466.605 to 466.680 or 466.706 to 466.882 or a removal
pursuant to ORS 468B.005 to 468B.030, 468B.035, 468B.048 to
468B.085, 468B.090, 468B.093, 468B.095 and 468B.300 to 468B.500,
the department, and the Oregon Department of Administrative
Services, when administering the establishment of such a contract
on behalf of the Department of Environmental Quality under ORS
279.712, shall subtract from the amount of any bid or proposal
the hazardous waste management fees and solid waste fees that
would be required by law to be paid to the department for waste
that would be disposed of at a solid waste disposal site or a
hazardous waste or PCB disposal facility, based on the bid or
proposal. The amount to be subtracted shall be established on the
basis of reasonable preprocurement estimates of the amount of
waste that would be disposed of under the contract and that would
be subject to those fees.
  (b) The subtraction for fees under paragraph (a) of this
subsection shall apply only to a contract reasonably anticipated
to involve the disposal of no less than 50 tons of hazardous
waste or no less than 500 tons of solid waste. The Legislative
Assembly finds that making accurate advance estimates of amounts
of waste that would be disposed of in projects of this character
is technically challenging and requires the application of
professional discretion. Therefore, no award of a contract under
this subsection shall be subject to challenge, under ORS 279.067
or otherwise, on the ground of the inaccuracy or claimed
inaccuracy of any such estimate.
  (c) The subtraction for fees under paragraph (a) of this
subsection shall not apply to the establishment, by or on behalf
of the department, of master contracts by which the department
engages the services of a contractor over a period of time for
the purpose of issuing work orders for the performance of
environmental activities on a project or projects for which the
amounts of waste to be disposed of were not reasonably identified
at the inception of the master contracts. However, the department
shall require any contractor under a master contract to apply the
subtraction for fees under paragraph (a) of this subsection in
the selection of any subcontractor to perform the removal of
waste in amounts equaling or exceeding the amounts set forth in
paragraph (b) of this subsection. Nothing in this subsection
shall be construed to prohibit the department or the Oregon
Department of Administrative Services from establishing contracts
pursuant to this section through contracting procedures
authorized by ORS chapter 279 that do not require the
solicitation of bids or proposals.
  SECTION 41. ORS 468.035, as amended by section 103, chapter
849, Oregon Laws 1999, and section 18, chapter 495, Oregon Laws
2001, is amended to read:
  468.035. (1) Subject to policy direction by the Environmental
Quality Commission, the Department of Environmental Quality:
  (a) Shall encourage voluntary cooperation by the people,
municipalities, counties, industries, agriculture, and other
pursuits, in restoring and preserving the quality and purity of
the air and the waters of the state in accordance with rules and
standards established by the commission.
  (b) May conduct and prepare, independently or in cooperation
with others, studies, investigations, research and programs
pertaining to the quality and purity of the air or the waters of
the state and to the treatment and disposal of wastes.
  (c) Shall advise, consult, and cooperate with other agencies of
the state, political subdivisions, other states or the federal
government, in respect to any proceedings and all matters
pertaining to control of air or water pollution or for the
formation and submission to the legislature of interstate
pollution control compacts or agreements.
  (d) May employ personnel, including specialists, consultants
and hearing officers, purchase materials and supplies, and enter
into contracts necessary to carry out the purposes set forth in
ORS 448.305, 454.010 to 454.040, 454.205 to 454.255, 454.505 to
454.535, 454.605 to 454.755 and ORS chapters 468, 468A and 468B.
  (e) Shall conduct and supervise programs of air and water
pollution control education, including the preparation and
distribution of information regarding air and water pollution
sources and control.
  (f) Shall provide advisory technical consultation and services
to units of local government and to state agencies.
 
  (g) Shall develop and conduct demonstration programs in
cooperation with units of local government.
  (h) Shall serve as the agency of the state for receipt of
moneys from the federal government or other public or private
agencies for the purposes of air and water pollution control,
studies or research and to expend moneys after appropriation
thereof for the purposes given.
  (i) Shall make such determination of priority of air or water
pollution control projects as may be necessary under terms of
statutes enacted by the Congress of the United States.
  (j) Shall seek enforcement of the air and water pollution laws
of the state.
  (k) Shall institute or cause to be instituted in a court of
competent jurisdiction, proceedings to compel compliance with any
rule or standard adopted or any order or permit, or condition
thereof, issued pursuant to ORS 448.305, 454.010 to 454.040,
454.205 to 454.255, 454.505 to 454.535, 454.605 to 454.755 and
ORS chapters 468, 468A and 468B.
  (L) Shall encourage the formulation and execution of plans in
conjunction with air and water pollution control agencies or with
associations of counties, cities, industries and other persons
who severally or jointly are or may be the source of air or water
pollution, for the prevention and abatement of pollution.
  (m) May determine, by means of field studies and sampling, the
degree of air or water pollution in various regions of the state.
  (n) May perform such other and further acts as may be
necessary, proper or desirable to carry out effectively the
duties, powers and responsibilities of the department as set
forth in ORS 448.305, 454.010 to 454.040, 454.205 to 454.255,
454.505 to 454.535, 454.605 to 454.755 and ORS chapters 468, 468A
and 468B.
  (o) Shall coordinate any activities of the department related
to a watershed enhancement project approved by the   { - Oregon
Watershed Enhancement - }   { + Access and Habitat + } Board
under ORS 541.375 with activities of other cooperating state and
federal agencies participating in the project.
  (2) Nothing in this section shall affect the authority of the
Department of Human Services to make and enforce rules:
  (a) Regarding the quality of water for human or animal
consumption pursuant to ORS 448.115 to 448.325, 624.010 to
624.120 and 624.310 to 624.430; and
  (b) Regarding the quality of water for public swimming places
pursuant to ORS 431.110.
  (3) Nothing in this section shall prevent the State Department
of Agriculture or the State Forestry Department from
independently receiving moneys from a public or private agency
for the purposes of preventing or controlling air or water
pollution resulting from agricultural or silvicultural activities
or soil erosion, or for research related to such purposes.
  (4)(a) In awarding a public contract under ORS chapter 279 for
a removal or remedial action pursuant to ORS 465.200 to 465.510,
a corrective action or cleanup action pursuant to ORS 466.005 to
466.385, 466.605 to 466.680 or 466.706 to 466.882 or a removal
pursuant to ORS 468B.005 to 468B.030, 468B.035, 468B.048 to
468B.085, 468B.090, 468B.093, 468B.095 and 468B.300 to 468B.500,
the department, and the Oregon Department of Administrative
Services, when administering the establishment of such a contract
on behalf of the Department of Environmental Quality under ORS
279.712, shall subtract from the amount of any bid or proposal
the hazardous waste management fees and solid waste fees that
would be required by law to be paid to the department for waste
that would be disposed of at a solid waste disposal site or a
hazardous waste or PCB disposal facility, based on the bid or
proposal. The amount to be subtracted shall be established on the
basis of reasonable preprocurement estimates of the amount of
 
waste that would be disposed of under the contract and that would
be subject to those fees.
  (b) The subtraction for fees under paragraph (a) of this
subsection shall apply only to a contract reasonably anticipated
to involve the disposal of no less than 50 tons of hazardous
waste or no less than 500 tons of solid waste. The Legislative
Assembly finds that making accurate advance estimates of amounts
of waste that would be disposed of in projects of this character
is technically challenging and requires the application of
professional discretion. Therefore, no award of a contract under
this subsection shall be subject to challenge, under ORS 279.067
or otherwise, on the ground of the inaccuracy or claimed
inaccuracy of any such estimate.
  (c) The subtraction for fees under paragraph (a) of this
subsection shall not apply to the establishment, by or on behalf
of the department, of master contracts by which the department
engages the services of a contractor over a period of time for
the purpose of issuing work orders for the performance of
environmental activities on a project or projects for which the
amounts of waste to be disposed of were not reasonably identified
at the inception of the master contracts. However, the department
shall require any contractor under a master contract to apply the
subtraction for fees under paragraph (a) of this subsection in
the selection of any subcontractor to perform the removal of
waste in amounts equaling or exceeding the amounts set forth in
paragraph (b) of this subsection. Nothing in this subsection
shall be construed to prohibit the department or the Oregon
Department of Administrative Services from establishing contracts
pursuant to this section through contracting procedures
authorized by ORS chapter 279 that do not require the
solicitation of bids or proposals.
  SECTION 42. ORS 496.118 is amended to read:
  496.118. (1) Subject to policy direction by the State Fish and
Wildlife Commission, the State Fish and Wildlife Director shall:
  (a) Be the administrative head of the State Department of Fish
and Wildlife;
  (b) Have power, within applicable budgetary limitations, and in
accordance with ORS chapter 240, to hire, assign, reassign and
coordinate personnel of the department;
  (c) Administer and enforce the wildlife laws of the state;
  (d) Be authorized to participate in any proceeding before any
public officer, commission or body of the United States or any
state for the purpose of representing the citizens of Oregon
concerning the wildlife resources of this state;
  (e) Establish such sections and divisions as are necessary to
properly carry out the work of the commission;
  (f) Be responsible for the collection, application and
dissemination of information pertinent to the management of the
wildlife resources, and to the regulation of the uses of such
resources; and
  (g) Coordinate any activities of the department related to a
watershed enhancement project approved by the   { - Oregon
Watershed Enhancement - }   { + Access and Habitat + } Board
under ORS 541.375 with activities of other cooperating state and
federal agencies participating in the project.
  (2) In addition to duties otherwise required by law, the
director shall prescribe internal policies and procedures for the
government of the department, the conduct of its employees, the
assignment and performance of its business and the custody, use
and preservation of its records, papers and property in a manner
consistent with applicable law.
  (3) In addition to any other duties assigned to the director,
the director shall report quarterly on the activities of the
department to the joint legislative committee established
pursuant to ORS 171.551.
 
  (4) The director may delegate to any employee of the department
the exercise or discharge in the director's name of any power,
duty or function of whatever character, vested in or imposed by
law upon the director. The official act of a person so acting in
the director's name and by the director's authority shall be
considered to be an official act of the director.
  (5) The director may restrict or otherwise limit the
participation of an employee of the department in any program
administered by the department to ensure that the programs of the
department are administered in a fair and equitable manner and
that no employee of the department gains an advantage over the
public.
  (6) Notwithstanding the provisions of ORS 496.112 (3), in times
of emergency or with respect to regulating wildlife taking, the
director may exercise the full powers of the commission until
such times as the emergency ends or the commission meets in
formal session.
  SECTION 43. ORS 496.270 is amended to read:
  496.270. (1) The Legislative Assembly declares that it is the
policy of the State of Oregon to encourage operators, timber
owners and landowners to voluntarily improve fish and wildlife
habitat. In order to carry out this policy, the Legislative
Assembly encourages cooperation among operators, timber owners
and landowners and other volunteers.
  (2) Consistent with the limitations of ORS 105.672 to 105.696,
a landowner is not liable in contract or tort for any personal
injury, death or property damage that arises out of the use of
the land by:
  (a) A volunteer conducting a fish and wildlife habitat
improvement project; or
  (b) A participant of a state-funded or federally funded
watershed or stream restoration or enhancement program.
  (3) An operator, timber owner or landowner shall not be held
liable for any damages resulting from:
  (a) A fish and wildlife habitat improvement project done in
cooperation and consultation with the State Department of Fish
and Wildlife   { - or the Oregon Watershed Enhancement Board - }
, or conducted as part of a forest management practice in
accordance with ORS 527.610 to 527.770, 527.990 and 527.992; or
  (b) Leaving large woody debris within the waters of this state
to protect, retain and recruit large woody debris for the
purposes of fish habitat and water quality improvement.
  (4) The limitations to liability provided by subsections (2)
and (3) of this section do not apply if the damages, injury or
death was caused by willful, wanton or intentional conduct on the
part of the operator, timber owner or landowner or by the gross
negligence of the operator, timber owner or landowner. As used in
this subsection 'gross negligence' means negligence which is
materially greater than the mere absence of reasonable care under
the circumstances, and which is characterized by indifference to
or reckless disregard of the rights of others.
  (5) The limitation on liability provided by subsection (3) of
this section does not apply to claims for death or personal
injuries.
  SECTION 44. ORS 526.041 is amended to read:
  526.041. The forester, under the general supervision of the
State Board of Forestry, shall:
  (1) In compliance with ORS 183.310 to 183.550, promulgate rules
consistent with law for the enforcement of the state forest laws
relating directly to the protection of forestland and the
conservation of forest resources.
  (2) Appoint and instruct fire wardens as provided in ORS
chapter 477.
  (3) Direct the improvement and protection of forestland owned
by the State of Oregon.
  (4) Collect data relative to forest conditions.
  (5) Take action authorized by law to prevent and extinguish
forest, brush and grass fires.
  (6) Enforce all laws pertaining to forestland and prosecute
violations of such laws.
  (7) Cooperate with landowners, political subdivisions, private
associations and agencies and others in forest protection.
  (8) Advise and encourage reforestation.
  (9) Publish such information on forestry as the forester
determines to be in the public interest.
  (10) Enter into contracts and cooperative agreements pertaining
to experiments and research in forestry.
  (11) Sell, exchange or otherwise dispose of any real property
heretofore or hereafter acquired by the board for administrative
purposes and no longer needed.
  (12) Coordinate any activities of the State Forestry Department
related to a watershed enhancement project approved by the
 { - Oregon Watershed Enhancement - }   { + Access and
Habitat + } Board under ORS 541.375 with activities of other
cooperating state and federal agencies participating in the
project.
  (13) Prescribe uniform state standards for certification of
wildland fire training courses and educational programs.
  (14) Enter into stewardship agreements with owners of
forestland pursuant to ORS 527.662, to achieve the purposes of
the Oregon Forest Practices Act.
  SECTION 45. ORS 536.037 is amended to read:
  536.037. (1) Subject to policy direction by the Water Resources
Commission, the Water Resources Director shall:
  (a) Be administrative head of the Water Resources Department;
  (b) Have power, within applicable budgetary limitations, and in
accordance with ORS chapter 240, to hire, assign, reassign and
coordinate personnel of the department;
  (c) Administer and enforce the laws of the state concerning the
water resources of this state;
  (d) Be authorized to participate in any proceeding before any
public officer, commission or body of the United States or any
state for the purpose of representing the citizens of Oregon
concerning the water resources of this state;
  (e) Have power to enter upon any private property in the
performance of the duties of the director, doing no unnecessary
injury to the private property; and
  (f) Coordinate any activities of the department related to a
watershed enhancement project approved by the   { - Oregon
Watershed Enhancement - }   { + Access and Habitat + } Board
under ORS 541.375 with activities of other cooperating state and
federal agencies participating in the project.
  (2) In addition to duties otherwise required by law, the
director shall prescribe internal policies and procedures for the
government of the department, the conduct of its employees, the
assignment and performance of its business and the custody, use
and preservation of its records, papers and property in a manner
consistent with applicable law.
  (3) The director may delegate to any employee of the department
the exercise or discharge in the director's name of any power,
duty or function of whatever character, vested in or imposed by
law upon the director. The official act of a person so acting in
the director's name and by the director's authority shall be
considered to be an official act of the director.
  SECTION 46.  { + Except as specifically provided in section 8
of this 2003 Act, sections 1 to 7 of this 2003 Act, the
amendments to statutes by sections 9 to 45 of this 2003 Act and
the repeal of ORS 541.360 and 541.362 by section 47 of this 2003
Act become operative on January 1, 2004. + }
  SECTION 47.  { + ORS 541.360 and 541.362 are repealed. + }
  SECTION 48.  { + 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. + }
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