73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
Enrolled
Senate Bill 1098
Sponsored by COMMITTEE ON RULES
CHAPTER ................
AN ACT
Relating to developing industrial lands; creating new provisions;
amending ORS 285A.040, 285A.486, 285A.681, 285A.705, 285B.280,
285B.410, 285B.413, 285B.419, 285B.422, 285B.428, 285B.437,
285B.440, 285B.455, 285B.458, 285B.467, 285B.470, 285B.473,
285B.476, 285B.482, 285B.563, 285B.581, 286.560, 348.701,
348.702, 348.706, 390.063, 431.120, 447.255, 461.540 and
541.845; repealing ORS 285B.416, 285B.425, 285B.431, 285B.434,
285B.438, 285B.443, 285B.446, 285B.452, 285B.461 and 285B.464;
and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 285B.280 is amended to read:
285B.280. As used in ORS 285B.280 to 285B.286, unless the
context requires otherwise { - : - } { + , + }
{ - (1) 'Flexible networks' means groups of three or more
private sector firms working cooperatively to manufacture, sell
or market products, develop technologies or create or disseminate
information. - }
{ - (2) 'High performance manufacturing practices' means
methods for organizing work which devolve greater decision-making
responsibility onto front-line workers, including but not limited
to employee involvement, total quality control, just-in-time
production and other related innovations. - }
{ - (3) 'Key industries' means traded sector industries that
make a major contribution to the economy of Oregon, including but
not limited to, forest products, agricultural products, high
technology, primary and fabricated metals, fisheries, interstate
and international tourism, film and video production, graphic
communications, biotechnology, software, environmental services,
plastics and aerospace. - }
{ - (4) 'Network brokers' means persons who are trained to
assist private sector firms to form flexible networks and make
other similar efforts to provide for joint manufacturing,
marketing, technology development, information dissemination and
other activities. - }
{ - (5) - } 'traded sector' means industries in which member
firms sell their goods or services into markets for which
national or international competition exists.
SECTION 2. ORS 285B.410 is amended to read:
285B.410. As used in ORS 285B.410 to 285B.482, unless the
context requires otherwise:
{ - (1) 'Community facilities' means municipal facilities
that assist the economic and community development of the
Enrolled Senate Bill 1098 (SB 1098-A) Page 1
municipality, as specified in rules adopted by the Economic and
Community Development Department, whether operated by the
municipality or by a person under a management contract or an
operating agreement with the municipality. - }
{ - (2) 'Community facilities project' means a project for
the acquisition, construction or development of community
facilities, including the acquisition of land, the mitigation of
environmental conditions on industrial lands, the construction,
acquisition, renovation or reconstruction of buildings,
structures and other real property, and the acquisition or
construction of related equipment and fixtures. - }
{ - (3) 'Direct project management costs' means new expenses
incurred by a municipality solely to support, plan for and manage
an infrastructure or community facilities project, funded in
whole or in part through financial assistance under ORS 285B.410
to 285B.482, during the planning and construction phases of the
project. - }
{ - (4) 'Infrastructure project' means: - }
{ - (a) A project for the construction of sewage treatment
works, solid waste disposal sites, water supply works, roads,
public transportation, railroad industrial spurs or sidings,
telecommunications infrastructure, storm drainage systems or
other facilities that comprise the physical foundation for
industrial and commercial activity. The costs of property
acquisition directly related to the infrastructure project and
acquisition of easements or rights of way necessary to accomplish
construction of the infrastructure project are eligible for
assistance under ORS 285B.410 to 285B.482. The costs of
activities related to performing an environmental action on a
brownfield are eligible for assistance under ORS 285B.416 (2) and
285B.455 (5). Purchases of off-site property for project-related
purposes such as wetland mitigation or other uses not directly
related to the infrastructure are not eligible for assistance. As
used in this paragraph, 'brownfield' and 'environmental action'
have the meanings given those terms respectively in ORS 285A.185
and 285A.188. - }
{ - (b) A project, in consultation with the Department of
Transportation and other affected agencies, for the acquisition,
reconstruction or rehabilitation of an abandoned railroad line or
railroad line that has been designated by the owner and operator
thereof as subject to abandonment within a three-year period
pursuant to federal law and regulations governing abandonment of
common carrier railroad lines. The project may include operation
or maintenance costs if the project also includes acquisition,
reconstruction or rehabilitation. - }
{ - (c) A safe drinking water project, in consultation with
the Water Resources Department, the Department of Human Services
or the Department of Land Conservation and Development, for
improving a drinking water system for the purpose of achieving or
maintaining compliance with applicable state or federal drinking
water quality regulations. - }
{ - (d) A project, as specified by rule of the Economic and
Community Development Department, resulting from an emergency as
defined in ORS 401.025. - }
{ - (5) 'Municipality' means a city, a county, the Port of
Portland created by ORS 778.010, a county service district
organized under ORS chapter 451, a tribal council of an Indian
tribe in this state or a district as defined in ORS 198.010. - }
Enrolled Senate Bill 1098 (SB 1098-A) Page 2
{ - (6) 'Nonurban infrastructure projects' includes all those
infrastructure projects which do not meet the definition of urban
infrastructure projects. - }
{ - (7) 'Public transportation' includes public depots,
public parking, public docks, public wharves, railroads and
airport facilities. - }
{ - (8) 'Roads' includes: - }
{ - (a) Ways described as streets, highways, throughways or
alleys; - }
{ - (b) Road related structures that are in the right of way
such as tunnels, culverts or similar structures; and - }
{ - (c) Structures that provide for continuity of the right
of way such as bridges. - }
{ - (9) 'Sewage treatment works' includes all facilities
necessary for collecting, pumping, treating and disposing of
sanitary or storm sewage. - }
{ - (10) 'Solid waste disposal site' has the meaning given to
the term 'disposal site' by ORS 459.005. - }
{ - (11) 'Storm drainage systems' means facilities necessary
for collecting, controlling, conveying, treating and disposing of
storm water runoff. - }
{ - (12) 'Telecommunications infrastructure' means real or
personal property, structures or equipment constructed, used or
configured for the electronic transmission or receipt of voice,
data, text, images or video between sites and facilities. - }
{ - (13) 'Urban infrastructure projects' includes all those
infrastructure projects located in whole or in part within the
acknowledged Portland Metropolitan Area Regional Urban Growth
Boundary, and the acknowledged urban growth boundaries of the
cities of Eugene, Springfield, Salem, Keizer or Medford or
projects that will principally benefit these areas. The Director
of the Economic and Community Development Department is
authorized to resolve situations left in question by this
definition. - }
{ - (14) 'Water supply works' includes all facilities
necessary for tapping natural sources of domestic and industrial
water, treating and protecting the quality of the water and
transmitting it to the point of sale to any public or private
agency for domestic, municipal and industrial water supply
service. - }
{ + (1) 'Airport' means:
(a) A runway, taxiway, aircraft parking apron, ramp, auto
parking area, access road, safety area or runway protection zone;
(b) An airport-related facility, including a hangar, terminal,
air traffic control tower or other building;
(c) A signal, navigational aid or traffic control system; or
(d) A fuel tank or other physical airport improvement.
(2) 'Development project' means a project for the acquisition,
improvement, construction, demolition, or redevelopment of
municipally owned utilities, buildings, land, transportation
facilities or other facilities that assist the economic and
community development of the municipality, including planning
project activities that are necessary or useful as determined by
the Economic and Community Development Department.
(3) 'Direct project management costs' means expenses directly
related to a project that are incurred by a municipality solely
to support or manage a project eligible for assistance under ORS
285B.410 to 285B.482. 'Direct project management costs' does not
include routine or ongoing expenses of the municipality.
Enrolled Senate Bill 1098 (SB 1098-A) Page 3
(4) 'Emergency project' means a development project resulting
from an emergency as defined in ORS 401.025, to which federal
disaster relief has been committed.
(5) 'Energy system' means a facility necessary for the
distribution, transmission or generation of energy, including but
not limited to facilities powered by wind, solar energy or
biofuel and facilities for the collection, storage, transmission
or distribution of a fuel, including natural gas, methane or
hydrogen.
(6) 'Marine facility' means:
(a) A wharf, dock, freight handling or passenger facility;
(b) A navigation channel or structure, including a project
funded under ORS 777.267; or
(c) Any other physical marine facility improvement.
(7) 'Municipality' means an Oregon city or county, the Port of
Portland created by ORS 778.010, a county service district
organized under ORS chapter 451, a district as defined in ORS
198.010, a tribal council of a federally recognized Indian tribe
in this state or an airport district organized under ORS chapter
838.
(8) 'Planning project' means:
(a) A project related to a potential development project for
preliminary, final or construction engineering;
(b) A survey, site investigation or environmental action;
(c) A financial, technical or other feasibility report, study
or plan; or
(d) An activity that the department determines to be necessary
or useful in planning for a potential development project.
(9) 'Project' means a development, planning or emergency
project.
(10) 'Railroad' means:
(a) A main line, siding, yard, connecting or auxiliary track,
right of way or easement;
(b) An industrial spur or related facility, including a depot,
shop, maintenance building or other building;
(c) A signal or traffic control system;
(d) A bridge or tunnel;
(e) A dock, pit, conveyor, bin, crane, piping system, tank or
pavement for unloading, loading or transfer of freight, trailers
or containers; or
(f) Any other physical railroad improvement.
(11) 'Road' means a street, highway or thruway or a
road-related structure that provides for continuity of a right of
way, including a bridge, tunnel, culvert or similar structure or
other physical road-related improvement.
(12) 'Rural area' has the meaning given that term in ORS
285A.010.
(13) 'Sewage system' means a facility necessary for collecting,
pumping, treating or disposing of sanitary sewage.
(14) 'Solid waste disposal site' has the meaning given the term
'disposal site' in ORS 459.005.
(15) 'Storm water drainage system' means a facility necessary
for collecting, controlling, conveying, treating or disposing of
storm water runoff.
(16) 'Telecommunications system' means equipment or a facility
for the electronic transmission of voice, data, text, image or
video.
(17) 'Transportation' means a system for movement of freight or
passengers.
Enrolled Senate Bill 1098 (SB 1098-A) Page 4
(18) 'Utilities' means a solid waste disposal site or a water,
sewage, storm water drainage, energy or telecommunications
system.
(19) 'Water system' means a facility for supplying, treating or
protecting the quality of water and transmitting water to a point
of sale or to any public or private agency for domestic,
municipal, commercial or industrial use. + }
SECTION 3. ORS 285B.413 is amended to read:
285B.413. (1) The Legislative Assembly finds that:
(a) The improvement, expansion and new construction of the
state's { - sewage treatment works, water supply works - }
{ + water and sewage systems + }, telecommunications
{ - infrastructure - } { + systems + }, roads and public
transportation provide the basic framework for continuing and
expanding economic activity in this state, thereby providing jobs
and economic opportunity for the people of Oregon.
(b) It is essential to maintain usable and developable
industrial and commercial lands in Oregon.
(2) { - Since - } { + Because + } municipalities in this
state often suffer from a lack of available financing and
technical capacity for
{ - such - } { + these + } projects, it is the purpose of ORS
285B.410 to 285B.482 to provide financial or other assistance
{ - in order that they may - } { + to enable municipalities
to + } construct, improve and repair those facilities that are
essential for supporting continuing and expanded economic
activity. It is the intent of the Legislative Assembly, by
providing that assistance, to stimulate industrial growth and
commercial enterprise and to promote employment opportunities in
Oregon.
(3) { - The money - } { + Moneys + } in the Special Public
Works Fund shall be used primarily to provide loans to
municipalities for
{ - infrastructure and community facilities - }
{ + development and planning + } projects. Grants shall be given
only when loans are not feasible due to the { - economic - }
{ + financial + } need of the { - applicant - } municipality
{ - and - } { + or + } special circumstances of the project.
The
{ - Director of the - } Economic and Community Development
Department is authorized to determine the level of grant or loan
funding, if any, on a case-by-case basis.
SECTION 4. ORS 285B.455 is amended to read:
285B.455. (1) There is created the Special Public Works Fund,
separate and distinct from the General Fund. All moneys credited
to the Special Public Works Fund are appropriated continuously
{ + to the Economic and Community Development Department. + }
{ - and shall be used for the purposes outlined in ORS 285A.075
(9) and 285B.410 to 285B.482. There shall be credited to the
Special Public Works Fund, money appropriated to the fund by the
Legislative Assembly, earnings on the fund, repayment of
financial assistance and bond proceeds as authorized under ORS
285B.410 to 285B.482. - }
{ + (2) The fund shall consist of all moneys credited to the
fund, including:
(a) Moneys appropriated to the fund by the Legislative Assembly
or transferred to the fund by the Oregon Economic and Community
Development Commission;
(b) Earnings on the fund;
(c) Repayment of financial assistance, including interest;
Enrolled Senate Bill 1098 (SB 1098-A) Page 5
(d) Moneys received from the federal government, other state
agencies or local governments;
(e) Bond proceeds as authorized under ORS 285B.410 to 285B.482
or other law; and
(f) Moneys from any other source, including but not limited to
grants and gifts. + }
{ - (2) - } { + (3) + } Moneys in the Special Public Works
Fund, with the approval of the State Treasurer, may be invested
as provided by ORS 293.701 to 293.820 and the earnings from
{ - such - } { + the + } investments shall be credited to the
account in the Special Public Works Fund designated by the
{ - Economic and Community Development - } department.
{ - (3) - } { + (4) + } The { - Economic and Community
Development - } department shall { - be the agency for the
State of Oregon for the administration of - }
{ + administer + } the Special Public Works Fund.
{ - (4) - } { + (5) + } The department may establish
{ - such - } other accounts within the Special Public Works
Fund for the payment of project costs, reserves, debt service
payments, credit enhancement,
{ - administration - } { + administrative costs + } and
operation expenses or any other purpose necessary to carry out
ORS 285B.410 to 285B.482.
{ - (5) Out of moneys in the Special Public Works Fund, the
department may: - }
{ - (a) Make technical assistance grants and loans to
municipalities. The department may not expend more than one
percent of the value of the Special Public Works Fund for
technical assistance grants and loans to municipalities in a
biennium. - }
{ - (b) Make grants to municipalities to provide local
matching funds for the purposes of a project described in ORS
285B.410 (4)(d) in an amount that does not exceed $2.5 million in
any biennium. - }
{ + (6) The department may grant, expend or loan moneys in
the fund to:
(a) Provide financial or other assistance to municipalities for
projects determined by the department to be appropriate.
(b) Purchase goods or services related to a project on behalf
of the municipality.
(c) Provide state funds as a match for federal funds available
for the administration of the Community Development Block Grant
program.
(d) Finance administrative costs of the department pursuant to
ORS 285B.410 to 285B.482.
(e) Provide annual grants on behalf of a municipality in the
form of partial repayment to bondholders of amounts owed.
(f) Cover contracts that are issued to guaranty any portion of
the obligation of a municipality to finance a development project
and that are not sold to the State of Oregon. Guaranty contracts
under this paragraph shall be payable solely from moneys in the
Special Public Works Fund, and shall not constitute a debt or
obligation of the State of Oregon. The department may, on behalf
of the state, establish a special account in the fund and commit
to deposit into the account specified portions of existing and
future allocations to the fund. The commitments shall be made by
rule of the department and shall constitute covenants of the
state for the benefit of the owners of obligations guaranteed by
the state pursuant to this section.
Enrolled Senate Bill 1098 (SB 1098-A) Page 6
(7) As used in this section, 'administrative costs ' includes
the department's direct and indirect costs for investigating and
processing an application, developing a contract, monitoring the
use of funds by a municipality, investigating and resolving
budget discrepancies, closing a project and providing financial
or other assistance to a municipality. + }
SECTION 5. ORS 285B.419 is amended to read:
285B.419. (1) The Economic and Community Development Department
shall adopt rules and policies for the administration of the
Special Public Works Fund. { - Insofar as practicable, the
department's rules shall provide that infrastructure projects
that meet the following criteria receive priority for
assistance: - } { + All forms of assistance are subject to the
rules and policies of the department. + }
{ - (a) Provide for the establishment or enlargement of
economically viable industries, with reasonable long term growth
prospects, including opportunities for innovative new industries
or for continuance of existing basic industries. - }
{ - (b) Result in a net benefit to the state in the long term
and not require continuing state subsidies. - }
{ - (c) Utilize existing public and private assets, including
infrastructure, human resources and plant and equipment. - }
{ - (d) Improve the conditions of the economically
disadvantaged and increase the number of jobs that increase
average incomes. - }
{ - (e) Support the development of businesses owned by women
and members of minority groups. - }
{ - (f) Harness Oregon's comparative advantage with emphasis
on the growth and development of existing, in-state businesses,
especially small businesses. - }
{ - (g) Direct assistance to infrastructure projects that
assist businesses selling goods and services in markets for which
national or international competition exists and prohibit
assistance to infrastructure projects that primarily focus on
relocating business or economic activity from one part of the
state to another. - }
{ - (h) Result in the economic revitalization of
communities. - }
{ - (i) Are funded and otherwise supported to the maximum
extent possible by private resources. - }
{ - (j) Result in business growth or expansion which would
not occur in Oregon without an investment from the Special Public
Works Fund. - }
(2) { - (a) - } The { - Economic and Community
Development - } department shall manage the Special Public Works
Fund and any expenditures from its accounts and transfers between
its accounts so that the fund { - value shall be equal to at
least 50 percent of lottery revenues actually transferred to the
fund plus interest on such amounts compounded annually at five
percent - } { + provides a continuing source of financing for
development or planning projects consistent with ORS
285B.413 + }.
{ - (b) If necessary to ensure repayment of bonds issued
under ORS 285B.410 to 285B.482, the Economic and Community
Development Department is authorized to reduce the value of the
fund to less than the limit provided in paragraph (a) of this
subsection if the department: - }
{ - (A) Finds that without such a reduction in fund value,
bonds secured by the fund are likely to be in default; and - }
Enrolled Senate Bill 1098 (SB 1098-A) Page 7
{ - (B) Imposes a moratorium on grants until the requirements
of paragraph (a) of this subsection are met. - }
{ - (3)(a) Not more than 100 percent of The total cost of any
infrastructure or community facilities project shall be financed
from the Special Public Works Fund. - }
{ - (b) For purposes of a project described in ORS 285B.410
(4)(d), the total cost described in paragraph (a) of this
subsection is the total local matching funds requirement for the
federal disaster relief assistance committed to the project. - }
{ - (4) - } { + (3) + } The department may commit moneys in
the Special Public Works Fund or reserve future income to the
fund for disbursal in future years under ORS 285B.440
{ - (4) - } . The department shall commit or reserve moneys
under this subsection only after:
(a) Allowing for contingencies;
(b) Finding that there will be sufficient unobligated net
income to the fund to make { - such - } { + the + } future
payments { - . Such a finding shall be based on financial plans
which are - } { + , + } consistent with the financial
requirements of subsections (2) and { - (4) - } { + (3) + }
of this section; and
(c) Providing in any contract for { - such - } { + the + }
commitment that the liability of the state to make { - such - }
{ + the + } annual payments shall be contingent on the
availability of moneys in the Special Public Works Fund.
{ - (5) - } { + (4) + } In assisting { - local
governments with infrastructure and community facilities - }
{ + municipalities with + } projects, the department shall
cooperate to the maximum extent possible with other state
{ - agencies financing similar projects, including but not
limited to the Department of Environmental Quality, the Water
Resources Department and the Department of Transportation - }
{ + and federal agencies + }.
{ - (6) The department shall notify the Housing and Community
Services Department of any proposed Special Public Works Fund
project with a related workforce increase at the time the
department receives the completed application for the
project. - }
SECTION 6. ORS 285B.422 is amended to read:
285B.422. (1) The Economic and Community Development Department
may provide financial or other assistance to
{ - municipalities - } { + a municipality + } for
{ - community facilities projects as described - } { + a
development project as defined + } in ORS 285B.410.
{ - (2) Before providing financial assistance for a community
facilities project, the Economic and Community Development
Department must find that: - }
{ - (a) The municipality has demonstrated that the community
facilities project will provide long term benefits to the
municipality; - }
{ - (b) The community facilities project will benefit a broad
cross-section of the municipality or improve the local
economy; - }
{ - (c) There is a substantial local commitment to the
community facilities to be financed; and - }
{ - (d) There is a need for the proposed community facilities
project, and the municipality's financial resources are adequate
to provide the working capital needed to ensure success of the
project. - }
Enrolled Senate Bill 1098 (SB 1098-A) Page 8
{ - (3)(a) Except as provided in this subsection and ORS
285B.455 (5), and notwithstanding any other provision of ORS
285B.410 to 285B.482, community facilities projects are not
eligible for grants made from the Special Public Works Fund. - }
{ - (b) Grants from the Special Public Works Fund may be made
for a community facilities project that is an essential community
facilities project, as determined in accordance with rules
adopted by the department after consultation with the League of
Oregon Cities, the Association of Oregon Counties, the Oregon
Public Ports Association and Special Districts Association of
Oregon. Loans or grants from the Special Public Works Fund and
loans from the proceeds of revenue bonds issued under ORS
285B.467 may be used to pay issuance costs and for the funding of
any debt service reserve for any revenue bonds issued under ORS
285B.467 to finance essential community facilities. - }
{ - (c) The department shall determine the maximum amount of
a grant to a municipality from the Special Public Works Fund for
an essential community facilities project. However, a grant may
not exceed 85 percent of the total project costs. - }
{ - (4) ORS 285B.413 (1) and (2), 285B.419 (1), 285B.434,
285B.443 (1)(b) and 285B.467 (2) and (8) do not apply to a
municipality applying for financial assistance for a community
facilities project. - }
{ + (2) The project must be municipally owned and operated
either by the municipality or under a management contract or an
operating agreement with the municipality. If the project
consists:
(a) Solely of the purchase or acquisition of land by the
municipality, the land must be identified in the applicable land
use or capital plan as necessary for a potential development
project or be zoned solely for commercial or industrial use.
(b) Of a privately owned railroad, the railroad must be
designated by the owner and operator as subject to abandonment
within three years, pursuant to federal law governing abandonment
of common carrier railroad lines.
(c) Of a telecommunications system, the governing body of the
municipality shall adopt a resolution, after a public hearing,
finding that the proposed telecommunications system project is
necessary and would not otherwise be provided by a for-profit
entity within a reasonable time and for a reasonable cost.
(3) If the project is an energy system, the municipality and
the serving utility must execute an ownership and operating
agreement for the proposed energy system. This subsection does
not apply when the energy system will be located within the
recognized service territory of the municipality.
(4) The department may not use funds to provide assistance for:
(a) Projects that primarily focus on relocating business or
economic activity from one part of the state to another, except
in cases where the business or economic activity would otherwise
locate outside of Oregon; or
(b) Ongoing operations or maintenance expenses. + }
SECTION 7. { + Sections 8 to 10 of this 2005 Act are added to
and made a part of ORS 285B.410 to 285B.482. + }
SECTION 8. { + (1) The Economic and Community Development
Department may provide financial or other assistance to a
municipality for a planning project as defined in ORS 285B.410.
(2) The planning project may be a stand-alone project.
(3) The planning project may include an environmental action on
a brownfield. For purposes of this subsection:
Enrolled Senate Bill 1098 (SB 1098-A) Page 9
(a) 'Brownfield' has the meaning given that term in ORS
285A.185.
(b) 'Environmental action' has the meaning given that term in
ORS 285A.188. + }
SECTION 9. { + (1) The Economic and Community Development
Department may provide financial or other assistance to a
municipality for an emergency project as defined in ORS 285B.410.
(2) The department may award grant funding to an emergency
project only if federal disaster relief assistance has been
committed for the emergency project.
(3) Assistance from the Special Public Works Fund for an
emergency project may not exceed the total local matching funds
requirement for the federal disaster relief assistance committed
to the project. + }
SECTION 10. { + For purposes of ORS 285B.410 to 285B.482, the
allowable costs of a project include:
(1) Financing costs, including capitalized interest;
(2) Direct project management costs;
(3) Costs of consultant services and expenses;
(4) Construction costs and expenses;
(5) Costs of property acquisition, including any easement or
right of way directly related to and necessary for the project;
(6) Costs of acquiring off-site property for purposes directly
related to the project, such as wetland mitigation; and
(7) Other costs that the Economic and Community Development
Department determines to be necessary or useful. + }
SECTION 11. ORS 285B.428 is amended to read:
285B.428. { - (1) - } Any municipality may { - file an
application with the Economic and Community Development
Department to obtain - } { + apply for + } financial or other
assistance from the Special Public Works Fund { + by submitting
a completed application and related information as required by
the Economic and Community Development Department by rule. The
application shall be filed, reviewed and approved or rejected in
accordance with rules adopted by the department + }. { - The
application shall be filed in such manner and contain or be
accompanied by such information as the department may
require. - }
{ - (2) In addition to other requirements prescribed by the
department, an application filed under this section shall: - }
{ - (a) Describe the nature and purposes of the proposed
infrastructure or community facilities project, including the
need for the project and the reasons why the project is in the
public interest. - }
{ - (b) Set forth or be accompanied by a feasibility study of
the proposed project and an estimate of the costs of
construction. - }
{ - (c) State whether any moneys other than those in the
Special Public Works Fund are proposed to be used for the project
and whether any other moneys are available or have been sought
for the project. - }
{ - (d) Provide, if assistance is to be used for
telecommunications infrastructure, a resolution, adopted by the
governing body of the municipality after a public hearing, that
includes findings and states that the proposed telecommunications
infrastructure project is necessary and would not otherwise be
provided by a for-profit entity within a reasonable time and for
a reasonable cost. - }
SECTION 12. ORS 285B.437 is amended to read:
Enrolled Senate Bill 1098 (SB 1098-A) Page 10
285B.437. (1) If the Economic and Community Development
Department approves assistance from the Special Public Works Fund
for { - an infrastructure or community facilities - }
{ + a + } project, the department, on behalf of the state, and
the municipality may enter into a contract { - , which shall set
forth, among other matters - } { + to implement the assistance.
The contract shall include + }:
{ - (a) An estimate of the reasonable cost of the
project. - }
{ - (b) An agreement by the municipality to proceed
expeditiously with, and complete, the project in accordance with
plans reviewed and approved by the department. - }
{ - (c) A statement that the liability of the state under the
contract is contingent upon the availability of moneys in the
Special Public Works Fund for use in the project. - }
{ + (a) A provision that the liability of the state under the
contract is contingent upon the availability of moneys in the
Special Public Works Fund for use in the project;
(b) If any portion of the assistance is in the form of a loan
or the purchase of a bond of a municipality, a provision granting
the department a lien on or a security interest in the collateral
as determined by the department to be necessary to secure
repayment of the loan or bond; and + }
{ - (d) Such - } { + (c) + } Other provisions as the
department considers necessary { - to insure expenditure of the
moneys for the purposes set forth in the approved application - }
{ + or appropriate to implement the assistance + }.
(2) When the department approves financial assistance under ORS
285B.410 to 285B.482 for { - an infrastructure or community
facilities - } { + a + } project, the department shall pay
moneys for the project from the Special Public Works Fund in
accordance with the terms of the contract.
{ - (3) The department shall determine and approve a maximum
amount of a loan for an infrastructure or community facilities
project under ORS 285B.410 to 285B.482 based upon a reasonable
and prudent expectation of the municipality's ability to repay
any amount borrowed. - }
{ + (3) Notwithstanding any other provision of law or any
restriction on indebtedness contained in a charter, a
municipality may borrow from the Special Public Works Fund by
entering into a contract with the department. The contract may be
repaid from:
(a) The revenues of the project, including special assessment
revenues;
(b) Amounts withheld under ORS 285B.449 (1);
(c) The general fund of the municipality; or
(d) Any other source.
(4) A loan contract authorized under subsection (3) of this
section shall be authorized by an ordinance, order or resolution
adopted by the governing body of the municipality. + }
SECTION 13. ORS 285B.440 is amended to read:
285B.440. { - (1) The maximum amount of any grant to a
municipality made from the Special Public Works Fund under ORS
285B.419 shall not exceed $1 million. - }
{ - (2) No grant to a municipality shall be made for an
infrastructure or community facilities project in an amount that
exceeds 85 percent of total project costs. A grant to a
municipality for a community facilities project shall comply with
ORS 285B.422 (3). - }
Enrolled Senate Bill 1098 (SB 1098-A) Page 11
{ + (1)(a) The moneys in the Special Public Works Fund shall
be used primarily to provide loans to municipalities for projects
as defined in ORS 285B.410 to 295B.482. The Economic and
Community Development Department may determine the level of grant
or loan funding, if any, on a case-by-case basis.
(b) If the department approves funding, the department shall
determine a maximum amount of the loan based upon a reasonable
and prudent expectation of the ability of the municipality to
repay the loan.
(c) The loan term may not exceed the usable life of the project
or 25 years from the year of project completion, whichever is
less.
(d) Assistance from the fund for a marine facility project
otherwise funded under ORS 777.267 shall be limited to a loan.
The loan may not exceed the amount of the required local matching
funds. + }
{ - (3) - } { + (2) + } The { - Economic and Community
Development - } department shall { - develop - } { + by rule
adopt + } standards for { - determining the maximum proportion
of any infrastructure or community facilities project which can
be funded by grants. Such standards shall at a minimum provide
grants equaling a larger percentage of total project costs for
projects with greatest economic need - } { + awarding grants
from the Special Public Works Fund. The standards may include the
award of grants as a financial incentive to accomplish the goals
of the Special Public Works Fund, to address special
circumstances of a project or to address the financial need of
the applicant + }.
{ - (4) A grant contract under ORS 285B.437 (1)(a) to (d) and
this section may provide for grants on behalf of the municipality
on an annual basis in the form of partial repayment to
bondholders of amounts owed them. In such cases, the contract
shall provide that moneys are or will be available in the Special
Public Works Fund for such annual payments. - }
{ + (3) The department may make grants to a municipality not
to exceed $1 million per project or 85 percent of the allowable
project costs, whichever is less. For purposes of this
subsection, allowable project costs do not include capitalized
interest, if any.
(4) The department may not expend more than one percent of the
value of the Special Public Works Fund in any biennium for grants
or direct assistance, if any, for planning projects to
municipalities.
(5) The department may not expend more than $2.5 million in any
biennium for emergency project grants. For purposes of this
subsection, emergency project grants include grants for essential
community facilities, as defined by the department by rule after
consultation with the League of Oregon Cities, the Association of
Oregon Counties, the Oregon Ports Representation Group and the
Special Districts Association of Oregon.
(6) Except as otherwise limited by this section, not more than
100 percent of the total cost of a project, including capitalized
interest, shall be financed from the Special Public Works
Fund. + }
SECTION 14. ORS 285B.458 is amended to read:
285B.458. Not less than 60 percent of the grants awarded from
the Special Public Works Fund in any biennium shall be used to
provide assistance to distressed { - area or nonurban
infrastructure projects - } { + or rural areas + }.
SECTION 15. ORS 285B.467 is amended to read:
Enrolled Senate Bill 1098 (SB 1098-A) Page 12
285B.467. (1) The Economic and Community Development Department
shall { + by rule + } adopt { - by rule - } standards
{ - by which - } to determine { - the - } eligibility for
revenue bond financing under ORS 285B.467 to 285B.479 of
{ - infrastructure and community facilities - } { +
development + } projects that have qualified under ORS 285B.419
to 285B.437 and 285B.449.
{ - (2) In adopting rules establishing guidelines or criteria
for awarding loans or grants for drinking water projects, the
department shall coordinate the department's rulemaking process
with the Water Resources Department and the Department of Human
Services in order to assure that rules adopted under this
subsection are consistent with rules adopted under ORS 431.120
and 541.845. The rules adopted under this subsection shall: - }
{ - (a) Require the installation of meters on all new service
connections to any distribution lines funded under ORS 285B.410,
285B.461, 285B.560 to 285B.599, 431.120, 541.700, 541.705,
541.755, 541.765, 541.830, 541.845 and this section; and - }
{ - (b) Require a plan, to be adopted by the municipality,
for installation of meters on all service connections throughout
the drinking water system. - }
{ - (3) - } { + (2) + } Upon determining { - an
infrastructure or community facilities - } { + that a
development + } project { + is + } eligible for revenue bond
financing under ORS 285B.467 to 285B.479, the department shall
forward { - the application - } { + a request for the
issuance of revenue bonds + }to the State Treasurer, who shall
determine whether to issue revenue bonds.
{ - (4) - } { + (3) + } { - Notwithstanding ORS 285B.410
(4)(a) and 285B.416 (1), - } When { - an infrastructure or
community facilities - } { + a + } project is determined to be
eligible for revenue bond financing under ORS 285B.467 to
285B.479, { - direct project management costs and the costs for
preliminary planning or legal, fiscal and economic
investigations, reports and studies to determine the economic and
engineering feasibility of the project are included within the
total project costs of the project and - } { + allowable costs
as described in section 10 of this 2005 Act + } may be paid from
bond proceeds.
{ - (5) - } { + (4) + } Administrative expenses of the
department in processing applications and investigating proposed
{ - infrastructure and community facilities - } projects and
bond sales { - shall - } { + may + } not be derived from bond
proceeds.
{ - (6) - } { + (5) + } The department may pledge all or
any portion of the existing or future assets and receipts of the
Special Public Works Fund to pay debt service on bonds issued
pursuant to ORS 285B.410 to 285B.482. { - Such - }
{ + The + } pledge shall take effect immediately, without
delivery of the pledged funds to third parties, and the lien of
the pledge shall be superior to all other liens of any nature.
{ - (7) - } { + (6) + } The department is authorized to
establish separate accounts within the fund for separate bond
issues.
{ - (8) As used in this section, 'service connection' does
not include fire hydrants, fire sprinkler system connections,
line blow-offs and drains, stand-by emergency interties, valve
controlled drinking fountains and other similar intermittently
used connections. - }
SECTION 16. ORS 285B.470 is amended to read:
Enrolled Senate Bill 1098 (SB 1098-A) Page 13
285B.470. In addition to any other powers granted by law in
relation to { - an infrastructure or community facilities - }
{ + a development + } project, the Economic and Community
Development Department, acting through the State Treasurer or
designee may:
(1) Make all contracts, execute all instruments and do all
things necessary or convenient in the exercise of the powers
granted by this section, or in the performance of its covenants
or duties, or in order to secure the payment of its bonds;
(2) Enter into and perform { - such - } contracts and
agreements with municipalities as the department may consider
proper and feasible for or concerning the planning, construction,
installation, lease or other acquisition, and the financing of
projects; and
(3) Enter into covenants for the benefit of bond owners
regarding the use and expenditure of moneys in the Special Public
Works Fund.
SECTION 17. ORS 285B.473, as amended by section 241, chapter
794, Oregon Laws 2003, is amended to read:
285B.473. If the State Treasurer determines that revenue bonds
should be issued:
(1) The State Treasurer may authorize and issue in the name of
the State of Oregon revenue bonds secured by moneys paid to the
Special Public Works Fund pledged therefor to finance or
refinance in whole or part the cost of acquisition, construction,
reconstruction, improvement or extension of { - infrastructure
and community facilities - } { + development + } projects. The
bonds shall be issued in the manner prescribed by ORS chapter
286, and refunding bonds may be issued to refinance
{ - such - } { + the + } revenue bonds.
(2) The State Treasurer shall designate the underwriter and
enter into appropriate agreements with the underwriter to carry
out the provisions of ORS 285B.467 to 285B.479. The Economic and
Community Development Department, with the approval of the State
Treasurer, shall designate the trustee and enter into appropriate
agreements with the trustee to carry out the provisions of ORS
285B.467 to 285B.479. The department may appoint bond counsel as
authorized by ORS 288.523, or the State Treasurer may enter into
an agreement with bond counsel if the services provided under the
agreement comply with the provisions of ORS 288.523 and the
appointment is approved by the Attorney General as required by
ORS 288.523. The department may not make an appointment or enter
into an agreement under this subsection unless the State
Treasurer has reviewed and approved the terms and conditions of
the appointment or agreement. ORS 279A.140 does not apply to any
appointment or agreement described in this subsection.
SECTION 18. ORS 285B.476 is amended to read:
285B.476. (1) ORS 285B.350 to 285B.362 and 285B.368 apply to
revenue bonds issued under ORS 285B.467 to 285B.479.
(2) The proceeds of revenue bonds issued and sold under ORS
285B.467 to 285B.479 shall be deposited in the Special Public
Works Fund and used for the payment of a loan to a municipality
for { - an infrastructure or community facilities - } { + a
development + } project and costs of issuing the revenue bonds.
(3) A loan made with money derived from the sale of revenue
bonds under this section shall be made as other loans under ORS
285B.419 to 285B.437 { - , 285B.443 - } and 285B.449 are made,
except that the loan contract shall set forth a schedule of
payments
Enrolled Senate Bill 1098 (SB 1098-A) Page 14
{ - which shall - } { + that may + } not exceed the usable
life of the contracted project.
SECTION 19. ORS 285B.482 is amended to read:
285B.482. (1) Notwithstanding any other law relating to revenue
bonds issued and sold under ORS 285B.467 to 285B.479 or ORS
285B.572, 285B.575 and 285B.578, { - such - } revenue bonds
may be issued and sold as parity bonds.
(2) Proceeds of revenue bonds issued and sold under ORS
285B.467 to 285B.479 or ORS 285B.572, 285B.575 and 285B.578,
together with the investment earnings thereon, may be
consolidated into one or more funds or accounts and may be
pledged to the holders of revenue bonds issued to finance water
projects,
{ - infrastructure projects or community facilities - }
{ + as defined in ORS 285B.560, or development + } projects.
(3) Any loan to a municipality made pursuant to ORS 285B.467 to
285B.479, 285B.560 to 285B.569 or 285B.572 to 285B.599, including
loans funded in whole or in part with the proceeds of revenue
bonds and loans funded with moneys in the Water Fund or the
Special Public Works Fund, may be pledged to the holders of
revenue bonds issued to finance water projects { - ,
infrastructure projects or community facilities - } { + or
development + } projects.
(4) Funds or accounts established by the Economic and Community
Development Department or the State Treasurer in connection with
the issuance of revenue bonds under ORS 285B.467 to 285B.479 or
ORS 285B.572, 285B.575 and 285B.578 and moneys held in the funds
and accounts, together with the investment earnings thereon, may
be consolidated into one or more funds or accounts and may be
pledged to the holders of revenue bonds issued to finance water
projects { - , infrastructure projects or community
facilities - } { + or development + } projects.
(5) Notwithstanding subsections (1) to (4) of this section,
moneys held in the Water Fund { - shall - } { + may + } not
be used to finance or refinance the cost of { - an
infrastructure project or a community facilities - } { + a
development + } project unless the { - infrastructure project
or community facilities - } { + development + } project also
qualifies as a water project, and moneys held in the Special
Public Works Fund { - shall - } { + may + } not be used to
finance or refinance the cost of a water project unless the water
project also qualifies as { - an infrastructure project or
community facilities - } { + a development + } project.
SECTION 20. ORS 285A.681 is amended to read:
285A.681. If the Oregon Economic and Community Development
Commission approves the project, the commission, on behalf of the
state, and the applicant may enter into a loan contract that is
secured by good and sufficient collateral. The loan contract
shall set forth, among other matters:
(1) A plan for repayment by the applicant to the Oregon Port
Revolving Fund of moneys borrowed from the fund for the project
and interest on the moneys at a rate of interest of not less than
one percent less than the prevailing interest rate on United
States Treasury bills of comparable term, as determined by the
commission. The repayment plan, among other matters:
(a) Shall provide for commencement of repayment by the port
district of moneys used for the project and interest thereon no
later than one year after the date of the loan contract or at
{ - such - } { + any + } other time as the commission may
provide. However, upon approval by the commission, a repayment
Enrolled Senate Bill 1098 (SB 1098-A) Page 15
plan for a flexible manufacturing space project may provide that
no interest shall accrue until the building is at least 25
percent occupied or until three years after the date of the loan
contract, whichever is earlier.
(b) May provide for reasonable extension of the time for making
any repayment in emergency or hardship circumstances if approved
by the commission.
(c) Shall provide for { - such - } evidence of debt
assurance of, and security for, repayment by the applicant as are
considered necessary by the commission.
(d) Shall { - set forth a schedule of payments and the period
of loan which shall - } { + specify a loan term that may + }
not exceed the usable life of the contracted project or
{ - 20 - } { + 25 + } years from { - the date of the
contract, whichever is less, and shall also set forth the manner
of determining when loan payments are delinquent - } { + the
year of project completion, whichever is less + }. The payment
schedule shall include repayment of interest { - which - }
{ + that + } accrues during any period of delay in repayment
authorized by paragraph (a) of this subsection, and the payment
schedule may require payments of varying amounts for collection
of { - such - } { + the + } accrued interest.
{ - (e) Shall set forth a procedure for formal declaration of
default of payment by the commission, including formal
notification of all relevant federal, state and local agencies;
and further, a procedure for notification of all relevant
federal, state and local agencies that declaration of default has
been rescinded when appropriate. - }
{ - (f) - } { + (e) + } Shall provide for partial or
complete repayment, in excess of scheduled payments, of any
outstanding principal loan amount without penalty. If any
prepayment is made, that amount
{ - shall - } { + may + } not be included in any computation
for the purposes of ORS 285A.678 (5).
(2) Provisions satisfactory to the commission for field
engineering and inspection, the commission to be the final judge
of completion of the contract.
(3) That the liability of the state under the contract is
contingent upon the availability of moneys in the Oregon Port
Revolving Fund for use in the project.
(4) { - Such further provisions as - } { + Any other
provision + } the commission considers necessary to ensure
expenditure of the funds for the purposes set forth in the
approved application.
{ - (5) That the commission may institute appropriate action
or suit to prevent use of the facilities of a project financed by
the Oregon Port Revolving Fund if the applicant is delinquent in
the repayment of any moneys due the Oregon Port Revolving
Fund. - }
SECTION 21. ORS 285A.705 is amended to read:
285A.705. If the Oregon Economic and Community Development
Commission approves an application for the loan of moneys
authorized by ORS 285A.702, the commission shall enter into a
loan contract, secured by good and sufficient collateral, with
the port district that provides, among other matters:
(1) That { - notices - } { + a notice + } of any
{ - liens - } { + lien + } against the property be filed with
the recording officer of each county as provided for in ORS
285A.687 (1) and (2).
Enrolled Senate Bill 1098 (SB 1098-A) Page 16
(2) That the loan bear interest at the same rate of interest as
provided in ORS 285A.681 (1).
(3) { - That the contract shall set forth a schedule of
payments including interest and principal for the period of the
loan, which shall - } { + That the loan term may + }not exceed
the usable life of the contracted project or { - 20 years from
the date of the contract, whichever is less, and shall set forth
the manner of determining when loan payments are delinquent - }
{ + 25 years from the year of project completion, whichever is
less + }. The same schedule shall include repayment of interest
{ - which - } { + that + } accrues during any period of delay
in repayment authorized by ORS 285A.666 to 285A.732 { - ,
and - } { + . + } The repayment schedule may require payments of
varying amounts for collection of { - such - } accrued
interest. However, the commission may make provisions for
extensions of time in making repayment if the delinquencies are
caused by acts of God or other conditions beyond the control of
the port district and the security will not be impaired thereby.
(4) { - Such provisions as - } { + Any other provision + }
the commission considers necessary to ensure expenditure of the
moneys loaned for the purposes provided in ORS 285A.702,
including all provisions of ORS 285A.678.
(5) That the commission may cause to be instituted appropriate
proceedings to foreclose liens as provided for in ORS 285A.690
(1) and (2) for delinquent loan payments and shall pay the
proceeds of any { - such - } foreclosure, less { - their - }
{ + the commission's + } expenses incurred in foreclosing, into
the Oregon Port Revolving Fund.
SECTION 22. ORS 285B.581 is amended to read:
285B.581. (1) Any loan of moneys to a municipality by the state
shall include a plan for repayment by the municipality of moneys
borrowed from the Water Fund for a water project and interest on
those moneys at a rate expressly specified. The repayment plan:
(a) Shall provide for { - such - } evidence of debt
assurance of, and security for, repayment by the municipality as
is considered necessary by the Economic and Community Development
Department.
(b) May set forth the allocation of special assessments or
contractual responsibilities among the owners of benefited
properties for repayment to the municipality of the amount of the
loan.
(c) { - Shall provide for repayment during a period that
shall not exceed the usable life of the proposed project or 25
years - } { + May not exceed the usable life of the contracted
project or 25 years from the year of project completion + },
whichever is less.
(2) Notwithstanding any other provision of law or any
restriction on indebtedness contained in a charter, a
municipality may borrow from the fund by entering into a loan
contract with the Economic and Community Development Department.
{ - Moneys borrowed from the fund shall - } { + The contract
may + } be repaid { + from + }:
(a) { - From - } The revenues of any water project,
including special assessment revenues;
(b) { - From - } Amounts withheld under ORS 285B.599;
(c) { - From - } The general fund of the municipality; { +
or + } { +
(d) Any other source. + }
{ - (d) From any combination of the provisions of paragraphs
(a) to (c) of this subsection; or - }
Enrolled Senate Bill 1098 (SB 1098-A) Page 17
{ - (e) From any other sources. - }
(3) A loan contract { + authorized + } under subsection (2) of
this section may provide that a portion of the proceeds of the
loan be applied to fund a reserve fund to secure the repayment of
the loan or secure the repayment of revenue bonds issued to fund
the loan.
(4) A loan contract { + authorized + } under subsection (2) of
this section shall be authorized by an ordinance, order or
resolution
{ - that is - } adopted { - with prior notice of at least 14
days. Notice shall be published at least once in a newspaper of
general circulation within - } { + by + } the { + governing
body of the + } municipality.
SECTION 23. ORS 285B.563 is amended to read:
285B.563. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Water Fund. All
moneys in the { + Water + } Fund are continuously appropriated
to the Economic and Community Development Department for the
purposes described in ORS 285B.560 to 285B.599, including the
direct project management costs and for the purpose specified in
ORS 285A.075 (9).
(2)(a) Moneys in the Water Fund may be obligated to water
projects.
(b) Moneys shall be used primarily to make loans to
municipalities. The department may make a loan only if:
(A) The municipality applying for the loan certifies to the
department that adequate funds will be available to repay the
loan; and
(B) The department determines that the amount of the loan
applied for is based on a reasonable and prudent expectation of
the municipality's ability to repay the loan.
(c) The department may award a grant only if a loan is not
feasible due to:
(A) Financial hardship to the municipality, as determined by
the department, based on consideration of anticipated water
service charges or anticipated waste water service charges that
exceed the statewide average for { - such - } { + the + }
charges, the per capita income of the municipality and
{ - such - } { + any + } other factors as the department by
rule may establish; and
(B) Special circumstances of the water project.
(d) The department may determine the amount of grant or loan
funding on a case-by-case basis.
(3) The moneys in the fund may also be used to assist the
department in selling revenue bonds on behalf of municipalities
in order to carry out the purposes of ORS 285B.560 to 285B.599.
(4) With the approval of the State Treasurer, moneys in the
Water Fund may be invested as provided by ORS 293.701 to 293.820.
The earnings from { - such - } { + the + } investments and
other program income shall be credited to the Water Fund.
(5) The Water Fund shall consist of:
(a) Moneys appropriated to the fund by the Legislative
Assembly.
(b) Moneys transferred to the fund by the Economic and
Community Development Department from the Special Public Works
Fund created by ORS 285B.455.
(c) Moneys transferred to the { + Water + } Fund by the Water
Resources Commission from the Water Development Fund created by
Article XI-I(1) of the Oregon Constitution.
(d) Moneys from any federal, state or other grants.
Enrolled Senate Bill 1098 (SB 1098-A) Page 18
(e) Proceeds of revenue bonds issued under ORS 285B.575.
(f) Earnings on the { + Water + } Fund.
(6) The department shall administer the fund.
(7) The department shall adopt rules and policies for the
administration of the fund. The department shall coordinate its
rulemaking regarding safe drinking water projects with the Water
Resources Department and the Department of Human Services. The
rules adopted under this subsection for safe drinking water
projects shall:
(a) Require the installation of meters on all new
{ + active + } service connections { - to - } { + from + }
any distribution lines funded with moneys from the fund or from
the proceeds of revenue bonds issued under ORS 285B.572 to
285B.578.
(b) Require a plan, to be adopted by a municipality receiving
financial assistance from the fund, for installation of meters on
all service connections throughout the drinking water system not
later than two years after the completion of a safe drinking
water project.
(8)(a) The Economic and Community Development Department shall
manage the Water Fund and any expenditures from accounts in the
fund and transfers between accounts so that the fund { - value
shall be equal to at least 50 percent of lottery revenues
actually transferred to the fund plus interest on such amounts
compounded annually at five percent - } { + provides a
continuing source of financing consistent with ORS 285B.413 + }.
(b) If necessary to ensure repayment of bonds issued under ORS
285B.560 to 285B.599, the department may reduce the value of the
fund { - to less than the limit established in paragraph (a) of
this subsection - } when the department:
(A) Finds that without { - such - } a reduction in fund
value, bonds secured by the fund are likely to be in default; and
(B) Imposes a moratorium on grants until the requirements of
paragraph (a) of this subsection are satisfied.
(9)(a) The department may charge administrative costs to the
fund, but not to moneys segregated in the account created by
subsection (11) of this section, to pay for administrative
{ - expenses - } { + costs + } incurred by the department.
{ - (b) As used in this section, 'administrative expenses '
includes: - }
{ - (A) The direct and administrative costs of processing
applications, investigating water projects, monitoring recipients
of financing for water projects and servicing and collecting
outstanding financial awards made for water projects; and - }
{ - (B) The costs of contracting for planning and technical
assistance services and other support services for
municipalities. - }
{ - (c) - } { + (b) + } To the extent permitted by federal
law,
{ - administrative expenses of the department as limited in
this subsection that are paid from the fund shall not exceed four
percent of the total assets of the fund reduced by the bonded
debt liabilities in any one year. - } administrative
{ - expenses - } { + costs + } of the department { - as
limited in this subsection - } may be paid from bond proceeds.
(10) The department may establish other accounts within the
Water Fund for the payment of water projects costs, reserves,
debt service payments, credit enhancements, costs of issuing
revenue bonds, administrative { + costs + } and operating
Enrolled Senate Bill 1098 (SB 1098-A) Page 19
expenses or any other purpose necessary to carry out ORS 285B.560
to 285B.599.
(11) There is created within the Water Fund a separate and
distinct account for the proceeds from the sale of water
development general obligation bonds issued for safe drinking
water projects and credited to the special account under this
section. Any investment earnings thereon shall be segregated in
and continuously appropriated to a special, separately accounted
for subaccount of this account. Moneys credited to this account
shall be maintained separate and distinct from moneys credited to
subaccounts created under subsection (10) of this section.
Notwithstanding ORS 285B.566 or subsection (4) of this section,
all repayments of moneys loaned from the account created by this
subsection, including interest on { - such - } { + the + }
moneys, shall be credited to the Water Development Administration
and Bond Sinking Fund created by ORS 541.830.
{ + (12) As used in this section, 'administrative costs '
include the department's direct and indirect costs for
investigating and processing an application, developing a
contract, monitoring the use of funds by a municipality,
investigating and resolving a budget discrepancy, closing a
project and providing financial and other assistance to a
municipality. + }
SECTION 24. ORS 431.120 is amended to read:
431.120. The Department of Human Services shall:
(1) Enforce state health policies and rules.
(2) Have the custody of all books, papers, documents and other
property belonging to the State Health Commission, which may be
deposited in the department's office.
(3) Give { - such - } { + any + } instructions { - as - }
{ + that + } may be necessary, and forward them to the various
local public health administrators throughout the state.
(4) Routinely conduct epidemiological investigations for each
case of sudden infant death syndrome including, but not limited
to, the identification of risk factors such as birth weight,
maternal age, prenatal care, history of apnea and socioeconomic
characteristics. The department may conduct { - such - } { +
the + } investigations through local health departments only upon
adoption by rule of a uniform epidemiological data collection
method.
(5) Adopt rules { - , - } related to loans and grants awarded
under ORS { - 285B.410 to 285B.482 - } { + 285B.560 to
285B.599 + } or 541.700 to 541.855 for the improvement of
drinking water systems for the purpose of maintaining compliance
with applicable state and federal drinking water quality
standards. In adopting rules under this subsection, the
Department of Human Services shall coordinate the department's
rulemaking process with the Water Resources Department and the
Economic and Community Development Department in order to
{ - assure - } { + ensure + } that rules adopted under this
subsection are consistent with rules adopted under ORS
{ - 285B.467 - } { + 285B.563 + } and 541.845.
(6) Control health care capital expenditures by administering
the state certificate of need program pursuant to ORS 442.325 to
442.344.
SECTION 25. ORS 348.701 is amended to read:
348.701. As used in ORS 348.701 to 348.710:
(1) 'Board' means the Oregon Growth Account Board established
in ORS 348.707.
Enrolled Senate Bill 1098 (SB 1098-A) Page 20
(2) 'Emerging growth business' means a new or small company
that has the capacity, upon obtaining appropriate capital, to
generate significant high skill, high wage employment within one
or more { - of the key industries, including those described in
ORS 285B.280 - } { + traded sector industries + }.
(3) 'Management company' includes a person, limited
partnership, partnership, corporation or other investment
company.
(4) 'Seed capital' means financing that is provided for the
initial phases of development, refinement and commercialization
of a product, process or innovation, including but not limited to
facilitating technology transfers related to academic research,
discoveries or developments for the purpose of commercialization
of a product, process or innovation.
{ + (5) 'Traded sector' has the meaning given that term in
ORS 285B.280. + }
SECTION 26. ORS 541.845 is amended to read:
541.845. (1) In accordance with the applicable provisions of
ORS chapter 183, the Water Resources Commission may adopt rules
necessary to carry out ORS 541.700 to 541.855.
(2) In adopting rules establishing guidelines or criteria for
awarding loans or grants for drinking water projects, the
commission shall coordinate the Water Resources Department's
rulemaking process with the Economic and Community Development
Department and the Department of Human Services in order to
{ - assure - } { + ensure + } that rules adopted under this
subsection are consistent with rules adopted under ORS
{ - 285B.467 - } { + 285B.563 + } and 431.120. The rules
adopted under this subsection shall:
(a) Require the installation of meters on all new
{ + active + } service connections { - to - } { + from + }
any municipal drinking water distribution lines funded under ORS
{ - 285B.461, 285B.467, - } 285B.560 to 285B.599, 431.120,
541.700, 541.705, 541.755, 541.765, 541.830 and 541.845; and
(b) Require a plan, to be adopted by the municipality, for
installation of meters on all service connections throughout the
drinking water system.
(3) As used in this section, 'service connection' does not
include fire hydrants, fire sprinkler system connections, line
blow-offs and drains, standby emergency interties, valve
controlled drinking fountains and other similar intermittently
used connections.
SECTION 27. ORS 461.540 is amended to read:
461.540. (1) There hereby is established in the General Fund of
the State Treasury the Administrative Services Economic
Development Fund. All moneys transferred from the State Lottery
Fund, interest earnings credited to this fund and other moneys
authorized to be transferred to this fund from whatever source
are appropriated continuously for any of the following public
purposes:
(a) Creating jobs;
(b) Furthering economic development in Oregon; or
(c) Financing public education.
(2) Moneys shall be transferred from the Administrative
Services Economic Development Fund to the Education Stability
Fund established under ORS 348.696 as described in section 4,
Article XV of the Oregon Constitution.
(3) As used in this section and section 4, Article XV of the
Oregon Constitution:
(a) 'Creating jobs' includes, but is not limited to:
Enrolled Senate Bill 1098 (SB 1098-A) Page 21
(A) Supporting the creation of new jobs in Oregon;
(B) Helping prevent the loss of existing jobs in Oregon;
(C) Assisting with work transition to new jobs in Oregon; or
(D) Training or retraining workers.
(b) 'Education' includes, but is not limited to, the Education
Stability Fund established under ORS 348.696 and specific
programs that support the following:
(A) Prekindergartens;
(B) Elementary and secondary schools;
(C) Community colleges;
(D) Higher education;
(E) Continuing education;
(F) Workforce training and education programs; or
(G) Financial assistance to Oregon students.
(c) 'Furthering economic development' includes, but is not
limited to, providing:
(A) Services or financial assistance to for-profit and
nonprofit businesses located or to be located in Oregon;
(B) Services or financial assistance to business or industry
associations to promote, expand or prevent the decline of their
businesses; or
(C) Services or financial assistance for facilities, physical
environments or { - infrastructure - } { + development + }
projects, as defined in ORS 285B.410, that benefit Oregon's
economy.
SECTION 28. ORS 285A.486 is amended to read:
285A.486. (1) Rural communities participating in the rural
revitalization program established by ORS 285A.483 to 285A.495
shall be provided with technical assistance to:
(a) Assess their economic strengths, weaknesses, opportunities
and threats;
(b) Develop short term and long term strategic plans based on
the assessment;
(c) Assist the communities in developing organizational
structures and other activities needed to implement and sustain
their strategic plans; and
(d) Resolve problems that may arise in communities as they work
to implement their strategic development plans.
(2) The program of leadership training carried on under ORS
285A.483 to 285A.495 shall develop the skills of individuals
enrolled in the program by:
(a) Exposing program participants to a broad range of regional,
national and international issues affecting rural areas.
(b) Teaching participants about effective management
techniques, group problem solving methods and consensus building
processes.
(c) Providing participants with training to improve their
technical and analytical skills.
(d) Educating participants about the functions of local, state
and national governments and the state legislative process.
(e) Teaching participants about the elements of effective
leadership.
(f) Providing participants with opportunities to apply
leadership skills to community development work.
(3) The Economic and Community Development Department shall
{ - insure - } { + ensure + } that the community development
and leadership training efforts carried out under the rural
revitalization program are coordinated with existing state and
local community development and leadership training programs in a
manner that contributes to the quality and effectiveness of the
Enrolled Senate Bill 1098 (SB 1098-A) Page 22
programs established by ORS 285A.483 to 285A.495, maximizes the
use of available resources and expands development and training
opportunities for communities and rural residents. The department
shall coordinate programs under ORS 285A.483 to 285A.495 with
other programs including, but not limited to, federal programs,
the regional investment program established under ORS 285B.230 to
285B.269, the special public works program established under ORS
{ - 285B.464 and - } 285B.410 to 285B.482, state workforce and
job training programs, programs offered by the Oregon State
University Extension Service and leadership training programs
offered by local chambers of commerce.
SECTION 29. ORS 447.255 is amended to read:
447.255. (1) It is the intent of the Legislative Assembly that
any affected buildings, the construction costs of which are paid
for in whole or in part by lottery funds, shall be accessible to
and usable by persons with disabilities in the manner prescribed
in ORS 447.210 to 447.280.
(2) Promotional and marketing programs described by this
section { - and ORS 285B.464 - } shall promote and identify
lottery-funded facilities as accessible to and usable by persons
with disabilities whenever appropriate.
SECTION 30. ORS 286.560 is amended to read:
286.560. As used in ORS 286.560 to 286.580, 327.700 to 327.711
and 348.716, unless the context requires otherwise:
(1) 'Appropriated funds' for a particular fiscal year means any
moneys, other than unobligated net lottery proceeds, that are
specifically appropriated or otherwise specifically made
available by the Legislative Assembly or the Emergency Board for
a fiscal year to replenish reserves established as additional
security for lottery bonds pursuant to the authority granted in
ORS 286.580 (6).
(2) 'Bond-related costs' means:
(a) The costs and expenses of issuing, administering and
maintaining lottery bonds and the lottery bond program, including
but not limited to paying or redeeming lottery bonds, paying
amounts due in connection with credit enhancements or any
instruments authorized by ORS 286.580 (6) and paying the
administrative costs and expenses of the State Treasurer and the
Oregon Department of Administrative Services, including costs of
consultants or advisors retained by the State Treasurer or the
Oregon Department of Administrative Services for the lottery
bonds or the lottery bond program;
(b) The costs of funding any lottery bond reserves;
(c) Capitalized interest for lottery bonds;
(d) Rebates or penalties due to the United States in connection
with lottery bonds; and
(e) Any other costs or expenses that the State Treasurer or the
Director of the Oregon Department of Administrative Services
determines are necessary or desirable in connection with issuing
lottery bonds or maintaining the lottery bond program.
(3) 'Lottery bonds' means:
(a) The state park lottery bonds authorized by ORS 390.060 to
390.067, the infrastructure lottery bonds authorized by ORS
285B.530 to 285B.548 and the education lottery bonds authorized
by ORS 327.700 to 327.711;
(b) Any other bonds payable from the revenues of the Oregon
State Lottery unless the legislation authorizing those bonds
expressly provides that those bonds shall not be issued under ORS
286.560 to 286.580 and 348.716; and
(c) Any refunding lottery bonds.
Enrolled Senate Bill 1098 (SB 1098-A) Page 23
(4) 'Lottery Bond Administrative Fund' means the fund created
by ORS 286.573.
(5) 'Lottery Bond Fund' means the fund created by ORS 286.570.
(6) 'Lottery bond program' means a financing program authorized
by:
(a) ORS 285B.530 to 285B.548, 327.700 to 327.711 or 390.060 to
390.067; or
(b) Any other Act of the Legislative Assembly authorizing the
issuance of bonds that are payable from the revenues of the
Oregon State Lottery, unless the legislation authorizing those
bonds expressly provides that those bonds shall not be issued
under ORS 286.560 to 286.580 and 348.716.
(7) 'Refunding lottery bonds' means any bonds issued for the
purpose of refunding any lottery bonds.
(8) 'Unobligated net lottery proceeds' means all revenues
derived from the operation of the Oregon State Lottery except
for:
(a) The revenues used for the payment of prizes and expenses of
the Oregon State Lottery as provided in section 4 (4)(d), Article
XV of the Oregon Constitution, and ORS 461.500 and 461.510;
(b) The revenues required to be applied, distributed or
allocated as provided in ORS 461.543; and
(c) The revenues required to be allocated to pay the Westside
lottery bonds and any bonds issued to refund the Westside lottery
bonds, to fund reserves for any of those bonds and to pay related
costs of the Department of Transportation.
(9) 'Westside lottery bonds' means the bonds issued by this
state under the authority granted in ORS 391.140 that,
notwithstanding ORS 267.334, 285B.419, 285B.422,
{ - 285B.425, - } 285B.482, 285B.530 to 285B.548, 286.560 to
286.580, 327.700 to 327.711, 348.716 and 390.060 to 390.067,
shall have a claim on lottery funds that is superior to the claim
of the lottery bonds authorized by ORS 286.560 to 286.580 and
348.716.
SECTION 31. ORS 390.063 is amended to read:
390.063. The Legislative Assembly declares that the purpose of
ORS 390.060 to 390.067 is to authorize lottery bonds for state
park projects. The lottery bonds authorized by ORS 390.060 to
390.067 shall be issued pursuant to ORS 286.560 to 286.580 and
348.716. The obligation of the State of Oregon with respect to
the bonds and with respect to any grant agreement or other
commitment authorized by ORS 267.334, 285B.410, 285B.422,
{ - 285B.425, - } 285B.482, 285B.530 to 285B.548 and 390.060 to
390.067 shall at all times be restricted to the availability of
unobligated net lottery proceeds, proceeds of lottery bonds and
any other amounts specifically committed by ORS 286.560 to
286.580 and 348.716. Neither the faith and credit of the State
of Oregon nor any of its taxing power shall be pledged or
committed to the payment of lottery bonds or any other commitment
of the State of Oregon authorized by ORS 390.060 to 390.067.
SECTION 32. ORS 348.702 is amended to read:
348.702. (1) There is created within the Education Stability
Fund the Oregon Growth Account, to which shall be credited, in
the manner provided in subsection (2) of this section, 10 percent
of the funds transferred under section 4, Article XV of the
Oregon Constitution, from the Administrative Services Economic
Development Fund to the Education Stability Fund. Separate
records shall be maintained for moneys in the Oregon Growth
Account that are available for the purposes specified in
subsection (5) of this section. The account may be credited with
Enrolled Senate Bill 1098 (SB 1098-A) Page 24
such unrestricted appropriations, gifts, donations, grants or
contract proceeds from any source, with investments or funds from
any source, and with returns on investments made from the
account.
(2) The Oregon Department of Administrative Services may credit
to the Oregon Growth Account from the first funds transferred in
a fiscal year to the Education Stability Fund under section 4,
Article XV of the Oregon Constitution, an amount up to the amount
the department estimates to be 10 percent of the funds required
to be transferred to the Education Stability Fund for that fiscal
year.
(3) If at the end of the fiscal year the amount credited to the
Oregon Growth Account under subsection (2) of this section is
less than or greater than 10 percent of the amount required to be
transferred under section 4, Article XV of the Oregon
Constitution, to the Education Stability Fund, the amount
credited to the Oregon Growth Account shall be adjusted in one of
the following ways:
(a) The amount credited to the account in the following fiscal
year may be adjusted;
(b) Any excess may be transferred from the Oregon Growth
Account to the Education Stability Fund; or
(c) Any shortage may be transferred from the Education
Stability Fund to the Oregon Growth Account from funds available
for that purpose.
(4) Adjustments required by subsection (3) of this section
shall be made without consideration of any interest or other
earnings that have accrued during the fiscal year.
(5) The purpose of the Oregon Growth Account is to earn returns
for the Education Stability Fund by making investments in or by
providing seed capital for emerging growth businesses in
{ - key - } { + traded sector + } industries.
(6) The investment of funds in the Oregon Growth Account shall
be governed by the Oregon Growth Account Board.
SECTION 33. ORS 348.706 is amended to read:
348.706. (1) There is created within the Oregon Growth Account
the Oregon Resource and Technology Development Subaccount.
Separate records shall be maintained for moneys in the
subaccount. Subject to investment policies established by the
State Treasurer and investment directives or strategies of the
Oregon Growth Account Board, moneys in the subaccount shall be
used to make seed capital investments in emerging growth
businesses in { - key - } { + traded sector + } industries in
Oregon.
(2) The board may allocate such amounts from the subaccount as
the board determines appropriate for seed capital investments.
SECTION 34. ORS 285A.040 is amended to read:
285A.040. (1) There is established the Oregon Economic and
Community Development Commission consisting of { - five - }
{ + seven + } members appointed { + as follows:
(a) One nonvoting, ex officio member appointed from among the
members of the Senate by the President of the Senate;
(b) One nonvoting, ex officio member appointed from among the
members of the House of Representatives by the Speaker of the
House of Representatives; and
(c) Five members appointed + } by the Governor, subject to
confirmation by the Senate in the manner prescribed in ORS
171.562 and 171.565. The Governor shall appoint members of the
commission in compliance with all of the following:
Enrolled Senate Bill 1098 (SB 1098-A) Page 25
{ - (a) - } { + (A) + } Members shall be appointed with due
consideration given to representation of the different geographic
regions of the state, and at least one member shall be a resident
of the area east of the Cascade Range.
{ - (b) - } { + (B) + } Not more than three members shall
belong to one political party. Party affiliation shall be
determined by the appropriate entry on official election
registration cards.
{ - (c) - } { + (C) + } At least one member shall be an
individual with substantial experience or training in
international trade or an individual who, at the time of
appointment, is involved in international trade. { - Such - }
{ + The member's + } experience or involvement in international
trade may include importing or exporting goods into or from the
State of Oregon.
(2) { + (a) + } The term of office of each member
{ + appointed by the Governor + } is four years, but a member
serves at the pleasure of the Governor. Before the expiration of
the term of a member { + appointed by the Governor + }, the
Governor shall appoint a successor whose term begins on July 1
next following. A member { + appointed by the Governor + } is
eligible for reappointment. In case of a vacancy { + among the
members appointed by the Governor + } for any cause, the Governor
shall appoint a person to fill the office for the unexpired term.
{ + (b) The term of office of the member appointed by the
President of the Senate is four years. In case of a vacancy for
any cause, the President of the Senate shall appoint a Senator to
fill the office for the unexpired term.
(c) The term of office of the member appointed by the Speaker
of the House of Representatives is two years. In case of a
vacancy for any cause, the Speaker of the House of
Representatives shall appoint a Representative to fill the office
for the unexpired term. + }
(3) A member of the commission { + who is appointed by the
Governor + } is entitled to compensation and expenses as provided
by ORS 292.495.
(4) The Governor shall appoint one of the { + voting + }
commissioners as presiding officer of the commission. The
presiding officer shall have { - such - } duties and powers as
the commission determines are necessary for the office.
(5) Three { + voting + } members of the commission constitute
a quorum for the transaction of business.
(6) The commission shall meet at least quarterly at a time and
place determined by the commission. The commission shall also
meet at such other times and places as are specified by the call
of the presiding officer or of a majority of the { + voting
members of the + } commission.
(7) { - No - } { + A + } vacancy { - shall - }
{ + among the voting members of the commission does not + }
impair the right of the remaining { + voting + } commissioners
to exercise all the powers of the commission. If the { +
remaining voting + } commissioners are unable to agree, the
Governor shall have the right to vote as a member of the
commission.
SECTION 35. { + 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.
Enrolled Senate Bill 1098 (SB 1098-A) Page 26
This section does not prohibit financing construction of
individual rail spurs or individual rail tracks to serve
individual buildings on the property. + }
SECTION 36. Section 35 of this 2005 Act is repealed on January
1, 2012.
SECTION 37. { + ORS 285B.416, 285B.425, 285B.431, 285B.434,
285B.438, 285B.443, 285B.446, 285B.452, 285B.461 and 285B.464 are
repealed. + }
SECTION 38. { + This 2005 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-third
Legislative Assembly adjourns sine die. + }
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Enrolled Senate Bill 1098 (SB 1098-A) Page 27
Passed by Senate July 26, 2005
Repassed by Senate August 4, 2005
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House August 3, 2005
...........................................................
Speaker of House
Enrolled Senate Bill 1098 (SB 1098-A) Page 28
Received by Governor:
......M.,............., 2005
Approved:
......M.,............., 2005
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2005
...........................................................
Secretary of State
Enrolled Senate Bill 1098 (SB 1098-A) Page 29