Chapter 816 Oregon Laws 2005

AN ACT

SB 71

Relating to financing for transportation projects; appropriating money; and declaring an emergency.

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

SECTION 1. (1) As used in sections 1 to 6 of this 2005 Act, “transportation project” has the meaning given that term in ORS 367.010.

(2) The Multimodal Transportation Fund is established separate and distinct from the General Fund. Earnings on moneys in the Multimodal Transportation Fund shall be deposited into the fund. Moneys in the Multimodal Transportation Fund are continuously appropriated to the Department of Transportation for the purposes described in subsection (3) of this section and in section 6 of this 2005 Act.

(3) The department shall use moneys in the Multimodal Transportation Fund to provide grants and loans for transportation projects as provided in sections 1 to 6 of this 2005 Act. Grants and loans may be provided only for projects that involve one or more of the following modes of transportation:

(a) Air;

(b) Marine;

(c) Rail; and

(d) Public transit.

(4) All moneys received by the department as interest on loans made under this section and as repayment of principal of loans made under this section shall be deposited into the Multimodal Transportation Fund.

SECTION 2. (1) Pursuant to ORS 286.560 to 286.580, for the biennium beginning July 1, 2005, the State Treasurer may issue lottery bonds to finance grants and loans for transportation projects selected under section 4 of this 2005 Act.

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

(a) There is an urgent need to improve and expand publicly owned and privately owned transportation infrastructure to support economic development in this state.

(b) A safe, efficient and reliable transportation network supports the long-term economic development and livability of this state. A multimodal network of air, rail, public transit, highway and marine transportation moves people and goods efficiently.

(c) Local governments and private sector businesses often lack capital and the technical capacity to undertake multimodal transportation projects.

(d) Public financial assistance can stimulate industrial growth and commercial enterprise and promote employment opportunities in this state.

(e) Public investment in transportation infrastructure will create jobs and further economic development in this state.

(3) The aggregate principal amount of lottery bonds issued pursuant to this section may not exceed the sum of $100 million plus an additional amount established by the State Treasurer to pay bond-related costs. The State Treasurer may issue lottery bonds pursuant to this section only at the request of the Director of Transportation.

(4) The net proceeds of the lottery bonds issued pursuant to this section shall be deposited in the Multimodal Transportation Fund established by section 1 of this 2005 Act.

SECTION 3. (1) Except as provided in subsection (2) of this section, the Department of Transportation may provide, from moneys in the Multimodal Transportation Fund established by section 1 of this 2005 Act:

(a) Grants for transportation projects to public bodies, as defined in ORS 174.109, and to private entities; and

(b) Loans for transportation projects to public bodies, as defined in ORS 174.109, and to private entities.

(2) Grants and loans may not be made from the Multimodal Transportation Fund for transportation projects that could constitutionally be funded by revenues described in section 3a, Article IX of the Oregon Constitution.

(3) The Department of Transportation shall adopt rules:

(a) Specifying the process by which a public body or private entity may apply for a loan under this section and prescribing the terms and conditions of loans, including but not necessarily limited to interest rates and repayment schedules; and

(b) Specifying the process by which a public body or private entity may apply for a grant under this section and prescribing the terms and conditions of grants, including but not necessarily limited to a requirement that the public body or private entity receiving the grant provide at least 20 percent of the moneys required for the transportation project.

SECTION 4. (1) The Oregon Transportation Commission shall select transportation projects to be funded with moneys in the Multimodal Transportation Fund established by section 1 of this 2005 Act.

(2)(a) Prior to selecting aeronautic and airport transportation projects, the commission shall solicit recommendations from the State Aviation Board.

(b) Prior to selecting freight transportation projects, the commission shall solicit recommendations from the Freight Advisory Committee.

(c) Prior to selecting public transit and rail projects, the commission shall solicit recommendations from its public transit and rail advisory committees.

(3) In selecting transportation projects the commission shall consider:

(a) Whether a proposed transportation project reduces transportation costs for Oregon businesses;

(b) Whether a proposed transportation project benefits or connects two or more modes of transportation;

(c) Whether a proposed transportation project is a critical link in a statewide or regional transportation system that will measurably improve utilization and efficiency of the system;

(d) How much of the cost of a proposed transportation project can be borne by the applicant for the grant or loan;

(e) Whether a proposed transportation project creates construction and permanent jobs in this state; and

(f) Whether a proposed transportation project is ready for construction.

SECTION 5. The Oregon Transportation Commission shall allocate at least 15 percent of the net proceeds of the lottery bonds authorized by section 2 of this 2005 Act to each region described in this section. For purposes of this section, the regions are as follows:

(1) Region one consists of Clackamas, Columbia, Hood River, Multnomah and Washington Counties.

(2) Region two consists of Benton, Clatsop, Lane, Lincoln, Linn, Marion, Polk, Tillamook and Yamhill Counties.

(3) Region three consists of Coos, Curry, Douglas, Jackson and Josephine Counties.

(4) Region four consists of Crook, Deschutes, Gilliam, Jefferson, Klamath, Lake, Sherman, Wasco and Wheeler Counties.

(5) Region five consists of Baker, Grant, Harney, Malheur, Morrow, Umatilla, Union and Wallowa Counties.

SECTION 6. (1) The Oregon Transportation Commission shall transfer moneys for aeronautic and airport transportation projects selected under section 4 of this 2005 Act from the Multimodal Transportation Fund to the Oregon Department of Aviation, which shall administer the projects. The amount transferred shall include moneys to pay administrative costs incurred by the Oregon Department of Aviation in carrying out the provisions of sections 1 to 6 of this 2005 Act.

(2) Except as provided in subsection (1) of this section, the Department of Transportation shall administer all transportation projects that are selected under section 4 of this 2005 Act. The department may use moneys from the Multimodal Transportation Fund to pay administrative costs incurred by the department in carrying out the provisions of sections 1 to 6 of this 2005 Act.

SECTION 7. The Port of Portland may not expend any moneys to finance transportation projects that consist of capital improvements on the property in Troutdale, Oregon, formerly known as the Reynolds Aluminum property, if the capital improvements are intended to allow use of the facility as an intermodal transportation facility primarily focused on rail transportation. This section does not prohibit financing construction of individual rail spurs or individual rail tracks to serve individual buildings on the property.

SECTION 8. Section 7 of this 2005 Act is repealed on January 1, 2012.

SECTION 9. 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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