Chapter 788 Oregon Laws 2005

AN ACT

SB 5532

Relating to lottery bonds; creating new provisions; amending ORS 285B.551 and sections 19, 21 and 22, chapter 942, Oregon Laws 2001; appropriating money; and declaring an emergency.

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

SECTION 1. ORS 285B.551 is amended to read:

285B.551. (1) Pursuant to ORS 286.560 to 286.580, lottery bonds may be issued:

(a) To provide financial and other assistance, including but not limited to loans and grants, to municipalities, ports and other persons and entities in accordance with the laws governing use of moneys in the Special Public Works Fund created by ORS 285B.455, the Water Fund created by ORS 285B.563, the Safe Drinking Water Revolving Loan Fund created by ORS 285A.213, the Oregon Port Revolving Fund created by ORS 285A.708, the Brownfields Redevelopment Fund created by ORS 285A.188, the Oregon Business Development Fund created by ORS 285B.092 and the Marine Navigation Improvement Fund created by ORS 777.267.

(b) To fund Oregon’s share of the costs of the Columbia River channel deepening project.

(c) To fund Oregon’s share of the costs of studies and ecosystem restoration projects in the lower Columbia River estuary designed to improve habitat for listed endangered or threatened species of Columbia River anadromous salmonids.

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

(a) The financial and other assistance to municipalities, ports and other persons and entities will assist in the establishment and expansion of businesses in Oregon and in the construction, improvement and expansion of infrastructure, community and port facilities and other facilities that comprise the physical foundation for industrial and commercial activity and provide the basic framework for continued and expanded economic opportunities and quality communities throughout Oregon.

(b) The Columbia River channel deepening project is necessary to allow newer, larger steamships access to Oregon and Washington deep draft ports. A deeper shipping channel will allow the Columbia River to continue as a world leader in agricultural exports and as a key trade corridor for farms and businesses throughout Oregon and the region.

(c) Such financial and other assistance to municipalities, ports and other persons and entities and the deepening of the Columbia River channel will therefore promote economic development within this state, and thus the use of net proceeds derived from the operation of the Oregon State Lottery to pay debt service on lottery bonds issued under this section to provide such financial and other assistance to municipalities, ports and other persons and entities and to pay a portion of the costs of deepening the Columbia River channel is an authorized use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510.

(d) The current lower Columbia River estuary habitat for listed endangered or threatened species of Columbia River anadromous salmonids could be improved through ecosystem restoration projects. The use of the Oregon State Lottery to pay debt service on lottery bonds issued under this section to pay for studying how the estuary could be improved and to pay for ecosystem restoration projects are authorized uses of state lottery funds.

(3) The aggregate principal amount of lottery bonds issued pursuant to subsection (1)(a) of this section for financial and other assistance to municipalities, ports and other persons and entities may not exceed the sum of [$194] $227.27 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. The aggregate principal amount of lottery bonds issued pursuant to subsection (1)(b) of this section for the Columbia River channel deepening project may not exceed the sum of $17.7 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Lottery bonds issued pursuant to this section may be issued only at the request of the Director of the Economic and Community Development Department. The director may not request the issuance of lottery bonds pursuant to subsection (1)(b) of this section until a final environmental impact statement has been issued and a record of decisions has been submitted to Congress by the United States Army Corps of Engineers, Congress has authorized the Columbia River channel deepening project, and the Washington sponsors’ shares of the costs of the Columbia River channel deepening project have been committed.

(4) The net proceeds of lottery bonds issued pursuant to subsection (1)(a) and (b) of this section shall be deposited in the Economic Infrastructure Project Fund, which is hereby established in the State Treasury separate and distinct from the General Fund. All moneys in the Economic Infrastructure Project Fund are continuously appropriated to the Economic and Community Development Department for any purpose for which moneys in the Special Public Works Fund created by ORS 285B.455 may be used, any purpose for which moneys in the Water Fund created by ORS 285B.563 may be used, any purpose for which moneys in the Safe Drinking Water Revolving Loan Fund created by ORS 285A.213 may be used, any purpose for which moneys in the Oregon Port Revolving Fund created by ORS 285A.708 may be used, any purpose for which moneys in the Brownfields Redevelopment Fund created by ORS 285A.188 may be used, any purpose for which moneys in the Oregon Business Development Fund created by ORS 285B.092 may be used and any purpose for which moneys in the Marine Navigation Improvement Fund created by ORS 777.267 may be used. The Director of the Economic and Community Development Department shall allocate the moneys deposited in the Economic Infrastructure Project Fund for the purposes described in this subsection in accordance with the policies developed by the Oregon Economic and Community Development Commission in accordance with ORS 285A.045. However, the director shall transfer from the Economic Infrastructure Project Fund and deposit into the Channel Deepening Account of the Marine Navigation Improvement Fund the proceeds of any lottery bonds sold to finance a portion of the costs of the Columbia River channel deepening project. Upon determining the relative allocation of moneys deposited in the Economic Infrastructure Project Fund among the purposes described in this subsection, the director shall transfer from the Economic Infrastructure Project Fund, and deposit into each of the other funds described in this subsection, the amounts so allocated. Notwithstanding any other provision of law governing the funds described in this subsection, the funds described in this subsection may be credited with moneys transferred from the Economic Infrastructure Project Fund by the director in accordance with this subsection.

(5) The aggregate principal amount of lottery bonds issued pursuant to subsection (1)(c) of this section for the costs of studies and ecosystem restoration projects in the lower Columbia River estuary may not exceed the sum of $750,000 and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. The net proceeds of lottery bonds issued pursuant to subsection (1)(c) of this section shall be deposited in the Oregon Community Development Fund created by ORS 285A.227 and may be used only for the Oregon nonfederal share of United States Army Corps of Engineers Columbia River estuary projects authorized by Congress prior to August 9, 2001. The director may not request the issuance of lottery bonds pursuant to subsection (1)(c) of this section until Congress and Washington have authorized their respective shares of the costs of the studies and ecosystem restoration projects in the lower Columbia River estuary.

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

SECTION 2. (1) Pursuant to ORS 286.560 to 286.580, lottery bonds may be issued by the Department of Higher Education for deferred maintenance projects.

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

(a) Major subsystems within university buildings are wearing out and must be replaced in order that universities have adequate facilities for teaching.

(b) Having safe and fully functioning university facilities is essential to Oregon’s healthy economic growth.

(3) The aggregate principal amount of lottery bonds issued pursuant to subsection (1) of this section by the Department of Higher Education for deferred maintenance projects may not exceed the amount of $19.43 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs as defined in ORS 286.560.

SECTION 3. (1) The Department of Higher Education Deferred Maintenance Project Fund is established separate and distinct from the General Fund. Interest earned by the Department of Higher Education Deferred Maintenance Project Fund shall be credited to the fund.

(2) Net proceeds of lottery bonds issued pursuant to section 2 of this 2005 Act shall be deposited into the Department of Higher Education Deferred Maintenance Project Fund. Moneys in the fund are continuously appropriated to the Department of Higher Education for deferred maintenance projects.

SECTION 4. Section 19, chapter 942, Oregon Laws 2001, as amended by section 7, chapter 741, Oregon Laws 2003, is amended to read:

Sec. 19. (1)(a) For the biennium beginning July 1, [2003] 2005, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286.560 to 286.580 in the amount of $35,342,000 for payment of the expenses of Washington County for the South Metro Commuter Rail Project, plus an additional amount to be estimated by the State Treasurer for payment of bond-related costs of the Oregon Department of Administrative Services, the Department of Transportation and the State Treasurer.

(b) For the biennium beginning July 1, [2003] 2005, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286.560 to 286.580 in the amount of $200,000 for payment of the expenses of the Department of Transportation in entering into, modifying and administering a grant agreement under section 21 (3), chapter 942, Oregon Laws 2001, for the South Metro Commuter Rail Project, plus an additional amount to be estimated by the State Treasurer for payment of bond-related costs of the Oregon Department of Administrative Services, the Department of Transportation and the State Treasurer.

(2) Lottery bonds issued under this section shall be issued at the request of the Director of Transportation.

(3) Net proceeds of lottery bonds issued under subsection (1)(a) and (b) of this section, in the amount of $35,542,000, shall be deposited in the South Metro Commuter Rail Project Fund established by section 21, chapter 942, Oregon Laws 2001, not later than [June 30, 2005] March 30, 2007.

(4) The bond-related costs of the Oregon Department of Administrative Services, the Department of Transportation and the State Treasurer for the lottery bonds authorized by this section shall be paid from the gross proceeds of those lottery bonds and from allocations for the purposes of ORS 286.576 (1)(c).

SECTION 5. Section 21, chapter 942, Oregon Laws 2001, as amended by section 10, chapter 4, Oregon Laws 2002 (second special session), and section 8, chapter 741, Oregon Laws 2003, is amended to read:

Sec. 21. (1) The South Metro Commuter Rail Project Fund is established separate and distinct from the General Fund. The moneys in the South Metro Commuter Rail Project Fund and the interest earnings of the fund are continuously appropriated to the Department of Transportation for the purpose described in subsection (2) of this section. The fund shall consist of moneys deposited in the fund under section 19, chapter 942, Oregon Laws 2001, and may include fees, moneys or other revenues available for payment of expenses of the South Metro Commuter Rail Project, including federal funds collected or received as reimbursement for expenses of the project from the United States Department of Transportation or the Federal Highway Administration under the Transportation Equity Act for the 21st Century (P.L. 105-178), or Miscellaneous Receipts.

(2) Subject to subsection (3) of this section, moneys in the fund shall be available for immediate distribution to Washington County to pay the expenses of the project.

(3)(a) The Director of Transportation shall enter into, or modify, a grant agreement with Washington County that requires the department to disburse, over the course of the project, an aggregate amount of $35,342,000 to Washington County from the fund. Disbursements from the fund shall be made as soon as deposits accrue in the fund and shall commence when:

(A) Moneys are available;

(B) Washington County has entered into one or more contracts for final design, construction or acquisition of components of the South Metro Commuter Rail Project and the contracts have an aggregate value of at least $35,342,000; and

(i) Washington County has provided documentation that it will have sufficient financing to complete the project; and

(ii) Washington County has agreed in the grant agreement authorized by this section that the county will not request or accept any state General Fund moneys for the project. Upon completion of the project, if the aggregate expenditure of state and local moneys is less than $45 million, Washington County shall refund the difference to the fund established by this section.

(b) Upon satisfaction of the conditions described in paragraph (a) of this subsection, the Department of Transportation shall disburse $35,342,000 of the moneys in the fund to Washington County in the biennium beginning July 1, [2003] 2005.

(c) Of the moneys deposited in the fund, the Department of Transportation may use $200,000 to pay the department’s expenses in entering into, modifying and administering the grant agreement authorized by this section.

(4)(a) The state is not liable to the lenders, vendors or contractors of Washington County for any action or omission under sections 18 to 22, chapter 942, Oregon Laws 2001, or the grant agreement authorized by this section, except for a failure to allocate and deposit to the fund amounts required by section 19, chapter 942, Oregon Laws 2001, or to disburse from the fund to Washington County amounts required by this section and the grant agreement authorized by this section.

(b) The grant agreement must:

(A) Obligate the department to deposit the net proceeds of lottery bonds described in section 19, chapter 942, Oregon Laws 2001, or, if necessary, the amounts described in section 22, chapter 942, Oregon Laws 2001, into the fund.

(B) Obligate Washington County to indemnify the state and its agencies and departments to the fullest extent permitted by law for any liability the state or its agencies and departments might incur in connection with any borrowing by Washington County for the project, except failure to allocate and deposit to the fund amounts required by section 19, chapter 942, Oregon Laws 2001, or amounts described in section 22, chapter 942, Oregon Laws 2001, or to disburse from the fund to Washington County amounts required by this section and the grant agreement authorized by this section.

(c) Washington County may assign and pledge its rights under the grant agreement to lenders, vendors or contractors. The Director of Transportation shall pledge the moneys available in the fund for the project.

SECTION 6. Section 22, chapter 942, Oregon Laws 2001, as amended by section 9, chapter 741, Oregon Laws 2003, is amended to read:

Sec. 22. If the state has not deposited an aggregate amount of $35,342,000 in the South Metro Commuter Rail Project Fund by [February 28, 2005] March 30, 2007, the state shall allocate to the Department of Transportation for deposit in the South Metro Commuter Rail Project Fund an amount equal to the difference between $35,342,000 and the aggregate deposits to the fund as of [February 28, 2005] March 30, 2007, from the first available residual lottery revenues.

SECTION 7. This 2005 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2005 Act takes effect July 1, 2005.

Approved by the Governor August 29, 2005

Filed in the office of Secretary of State August 29, 2005

Effective date August 29, 2005

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