Chapter 746
AN ACT
HB 5036
Relating to lottery bonds; creating new provisions; amending ORS
285B.551 and sections 2 and 3, chapter 788, Oregon Laws 2005; appropriating
money; and declaring an emergency.
Be It Enacted by the People of
the State of
SECTION 1. ORS 285B.551 is amended to read:
285B.551. (1) Pursuant
to ORS 286.560 to 286.580, lottery bonds may be issued:
(a) To provide financial
and other assistance, including but not limited to loans and grants, to
municipalities, ports and other persons and entities in accordance with the
laws governing use of moneys in the Special Public Works Fund created by ORS
285B.455, the Water Fund created by ORS 285B.563, the Safe Drinking Water
Revolving Loan Fund created by ORS 285A.213, the Oregon Port Revolving Fund
created by ORS 285A.708, the Brownfields Redevelopment Fund created by ORS
285A.188, the Oregon Business Development Fund created by ORS 285B.092 and the
Marine Navigation Improvement Fund created by ORS 777.267.
(b) To fund
(c) To fund
(2) The use of lottery
bond proceeds is authorized based on the following findings:
(a) The financial and
other assistance to municipalities, ports and other persons and entities will
assist in the establishment and expansion of businesses in Oregon and in the
construction, improvement and expansion of infrastructure, community and port
facilities and other facilities that comprise the physical foundation for
industrial and commercial activity and provide the basic framework for
continued and expanded economic opportunities and quality communities
throughout Oregon.
(b) The Columbia River
channel deepening project is necessary to allow newer, larger steamships access
to
(c) Such financial and
other assistance to municipalities, ports and other persons and entities and
the deepening of the Columbia River channel will therefore promote economic
development within this state, and thus the use of net proceeds derived from
the operation of the Oregon State Lottery to pay debt service on lottery bonds
issued under this section to provide such financial and other assistance to
municipalities, ports and other persons and entities and to pay a portion of
the costs of deepening the Columbia River channel is an authorized use of state
lottery funds under section 4, Article XV of the Oregon Constitution, and ORS
461.510.
(d) The current lower
Columbia River estuary habitat for listed endangered or threatened species of
(3) The aggregate
principal amount of lottery bonds issued pursuant to subsection (1)(a) of this
section for financial and other assistance to municipalities, ports and other
persons and entities may not exceed the sum of [$227.27] $248.7 million and an additional amount estimated
by the State Treasurer to be necessary to pay bond-related costs. The aggregate
principal amount of lottery bonds issued pursuant to subsection (1)(b) of this section for the
(4) The net proceeds of
lottery bonds issued pursuant to subsection (1)(a) and (b) of this section
shall be deposited in the Economic Infrastructure Project Fund, which is hereby
established in the State Treasury separate and distinct from the General Fund.
All moneys in the Economic Infrastructure Project Fund are continuously
appropriated to the Economic and Community Development Department for any
purpose for which moneys in the Special Public Works Fund created by ORS
285B.455 may be used, any purpose for which moneys in the Water Fund created by
ORS 285B.563 may be used, any purpose for which moneys in the Safe Drinking
Water Revolving Loan Fund created by ORS 285A.213 may be used, any purpose for
which moneys in the Oregon Port Revolving Fund created by ORS 285A.708 may be
used, any purpose for which moneys in the Brownfields Redevelopment Fund
created by ORS 285A.188 may be used, any purpose for which moneys in the Oregon
Business Development Fund created by ORS 285B.092 may be used and any purpose
for which moneys in the Marine Navigation Improvement Fund created by ORS
777.267 may be used. The Director of the Economic and Community Development
Department shall allocate the moneys deposited in the Economic Infrastructure
Project Fund for the purposes described in this subsection in accordance with
the policies developed by the Oregon Economic and Community Development
Commission in accordance with ORS 285A.045. However, the director shall
transfer from the Economic Infrastructure Project Fund and deposit into the
Channel Deepening Account of the Marine Navigation Improvement Fund the
proceeds of any lottery bonds sold to finance a portion of the costs of the
(5) The aggregate
principal amount of lottery bonds issued pursuant to subsection (1)(c) of this
section for the costs of studies and ecosystem restoration projects in the
lower Columbia River estuary may not exceed the sum of $750,000 and an
additional amount estimated by the State Treasurer to be necessary to pay
bond-related costs. The net proceeds of lottery bonds issued pursuant to
subsection (1)(c) of this section shall be deposited in the Oregon Community
Development Fund created by ORS 285A.227 and may be used only for the Oregon
nonfederal share of United States Army Corps of Engineers Columbia River
estuary projects authorized by Congress prior to August 9, 2001. The director
may not request the issuance of lottery bonds pursuant to subsection (1)(c) of
this section until Congress and Washington have authorized their respective
shares of the costs of the studies and ecosystem restoration projects in the
lower Columbia River estuary.
(6) The proceeds of
lottery bonds issued pursuant to this section may be used only for the purposes
set forth in this section and for bond-related costs.
SECTION 2. Section 2, chapter 788, Oregon Laws 2005, is
amended to read:
Sec.
2. (1) Pursuant to ORS 286.560 to 286.580, lottery bonds may be issued
by the Department of Higher Education for deferred maintenance and capital
renewal, code compliance and safety projects.
(2) The use of lottery
bond proceeds is authorized based on the following findings:
(a) Major subsystems
within university buildings are wearing out and must be replaced in order that
universities have adequate facilities for teaching.
(b) Having safe and
fully functioning university facilities is essential to
(3) The aggregate
principal amount of lottery bonds issued pursuant to subsection (1) of this
section by the Department of Higher Education for deferred maintenance and
capital renewal, code compliance and safety projects may not exceed the
amount of [$19.43] $69.43
million and an additional amount estimated by the State Treasurer to be
necessary to pay bond-related costs as defined in ORS 286.560.
(4) Of the net
proceeds of lottery bonds issued pursuant to this section for the biennium
beginning July 1, 2007, an amount not to exceed $50 million shall be deposited
in the Department of Higher Education Deferred Maintenance and Capital Repair
Project Fund established by section 3, chapter 788, Oregon Laws 2005.
SECTION 3. Section 3, chapter 788, Oregon Laws 2005, is
amended to read:
Sec.
3. (1) The Department of Higher Education Deferred Maintenance and
Capital Repair Project Fund is established separate and distinct from the
General Fund. Interest earned by the Department of Higher Education Deferred
Maintenance and Capital Repair Project Fund shall be credited to the
fund.
(2) Net proceeds of
lottery bonds issued pursuant to section 2, chapter 788,
SECTION 4. (1) Pursuant to ORS 286.560 to 286.580,
lottery bonds may be issued for the Housing and
Community Services Department to provide housing for populations at risk of
homelessness through facilitating development, including funding construction,
renovation and supportive services, of housing units.
(2) The use of lottery
bond proceeds is authorized based on the following findings:
(a) Individuals who are
at risk of homelessness increase their potential for self-sufficiency, and use
proportionately fewer community-funded resources when they are provided a
stable housing environment including appropriate services.
(b) Having housing for
at-risk populations is essential to
(3) The aggregate
principal amount of lottery bonds issued pursuant to subsection (1) of this
section by the Housing and Community Services Department may not exceed the
amount of $16 million and an additional amount estimated by the State Treasurer
to be necessary to pay bond-related costs as defined in ORS 286.560.
SECTION 5. (1) The Housing and Community Services
Department Self-Sufficiency Housing Fund is established separate and distinct
from the General Fund. Interest earned by the Housing and Community Services
Department Self-Sufficiency Housing Fund shall be credited to the fund.
(2) Net proceeds of
lottery bonds issued pursuant to section 4 of this 2007 Act shall be deposited
into the Housing and Community Services Department Self-Sufficiency Housing
Fund. Moneys in the fund are continuously appropriated to the Housing and
Community Services Department for providing housing to populations at risk of
homelessness.
SECTION 6. As used in sections 6 to 10 of this 2007
Act, “City of Hillsboro Downtown Parking Facility” or “facility” means the
acquisition, construction and procurement of all components of a public parking
facility to be established in the City of Hillsboro.
SECTION 7. (1) Notwithstanding ORS 286.505 to 286.545,
for the biennium beginning July 1, 2007, at the request of the Director of the
Economic and Community Development Department, the State Treasurer is
authorized to issue lottery bonds pursuant to ORS 286.560 to 286.580 in the
amount of $7 million for payment of the expenses of the City of Hillsboro for
the establishment of the City of Hillsboro Downtown Parking Facility, plus an
additional amount to be estimated by the State Treasurer for payment of
bond-related costs incurred by the Economic and Community Development
Department, the Oregon Department of Administrative Services and the State
Treasurer.
(2) The bond-related
costs incurred by the Economic and Community Development Department, the Oregon
Department of Administrative Services and the State Treasurer for the lottery
bonds authorized by this section shall be paid from the gross proceeds of the
lottery bonds, from allocations for the purposes of ORS 286.576 (1)(c) or from moneys in the City of Hillsboro Downtown
Parking Facility Fund established under section 9 of this 2007 Act.
SECTION 8. The Legislative Assembly finds that:
(1) The City of
(a) Enhance access to
transit options for employees in an area in which the population has doubled
since 1990.
(b) Allow for increased
investment in allied health training and education, areas in which the State of
(c) Increase the
likelihood of federal funding for the facility and add new moneys that directly
benefit
(2) The factors
described in subsection (1) of this section will encourage and promote economic
development within the State of
SECTION 9. (1) The City of
(2) Subject to
subsection (3) of this section, moneys in the fund shall be available for
immediate distribution to the City of
(3) The Director of the
Economic and Community Development Department shall enter into a grant
agreement with the City of
(a) The city to agree in
the grant agreement authorized by this section:
(A) To indemnify the
state government, as defined in ORS 174.111, to the fullest extent permitted by
law for any liability the state government might incur in connection with a
borrowing by the city for the facility.
(B) Not to request or
accept moneys from the state General Fund for the facility.
(C) To refund the
difference to the director for deposit in the City of
(b) The department to
disburse, over the course of the development of the facility, an aggregate
amount of $7 million to the City of Hillsboro from the City of Hillsboro
Downtown Parking Facility Fund when:
(A) Moneys are
available;
(B) The director
determines that the city has entered into one or more contracts that have an
aggregate value of at least $16 million for final design, construction or
acquisition of components of the facility; and
(C) The director
determines that the city has provided documentation that it will have
sufficient financing to complete the facility.
(4) If, on or before
June 30, 2008, the director has not distributed bond proceeds to the City of
(a) Evaluate the
likelihood that the bond proceeds will be distributed before June 30, 2009; and
(b) Report the findings
of the evaluation to the Oregon Department of Administrative Services and the
State Treasurer on or before September 1, 2008.
SECTION 10. The State of Oregon is not liable to the
lenders, vendors or contractors of the City of Hillsboro for any action or
omission under sections 6 to 10 of this 2007 Act or the grant agreement
authorized by section 9 of this 2007 Act.
SECTION 11. As used in sections 11 to 15 of this 2007
Act:
(1) “Act of God” means
an unanticipated grave natural disaster or other natural phenomenon of an
exceptional, inevitable and irresistible character, the effects of which could
not have been prevented or avoided by the exercise of due care or foresight.
(2) “Coos Bay Channel
Project” means a project to deepen and widen the lower Coos Bay deep draft
navigation channel, west of the Coos Bay railroad bridge, to perform ecosystem
investigation and restoration projects and to make additional navigational
system improvements including, but not limited to, structural work at the
entrance jetties, navigation aids and other design or engineering tasks.
(3) “
(4) “Primary sponsor”
means the
SECTION 12. The Legislative Assembly finds that:
(1)(a) The Coos Bay
Channel Project will create jobs and further economic development in Oregon
because deepening and widening the lower Coos Bay deep draft navigation
channel, west of the Coos Bay railroad bridge, will allow the Oregon
International Port of Coos Bay to accommodate new generations of deep draft
cargo vessels and to diversify the types of cargo that can be processed through
the port, increasing maritime and international trade throughout Oregon,
improving the attractiveness of Oregon to new businesses and supporting the
operations and prosperity of existing businesses.
(b) Authorization for
the issuance of lottery bonds will increase the likelihood of federal funding
for the project, encourage the development of public and private sector
partnerships to continue the modernization and expansion of the Oregon
International Port of Coos Bay, including the development and construction of
an intermodal container terminal for Coos Bay harbor, and add new income that
will directly benefit Oregon’s dredging, construction or maritime industries.
(2) The factors described
in subsection (1) of this section will encourage and promote economic
development within the state, and the issuance of lottery bonds to finance the
Coos Bay Channel Project is therefore an appropriate use of state lottery funds
to pay the amounts specified in section 13 of this 2007 Act, under section 4,
Article XV of the Oregon Constitution, and under ORS 461.510. Neither the faith
and credit nor any of the taxing power of the state is pledged or otherwise
committed by sections 11 to 15 of this 2007 Act, and the commitments of the
state under sections 11 to 15 of this 2007 Act and ORS 777.277 to 777.287 do
not constitute a debt or liability of the state within the meaning of section
7, Article XI of the Oregon Constitution.
SECTION 13. (1) In addition to amounts authorized under
ORS 286.505 to 286.545, the State Treasurer, at the request of the Director of
the Economic and Community Development Department, may issue lottery bonds
pursuant to ORS 286.560 to 286.580:
(a) In an amount of up
to $60 million for payment of the expenses of the Coos Bay Channel Project in
increments described in subsection (2) of this section; and
(b) In an additional
amount to be estimated by the State Treasurer for payment of bond-related costs
of the Oregon Department of Administrative Services, the Economic and Community
Development Department and the State Treasurer.
(2) The director shall
request the State Treasurer to issue the amount of bonds described in
subsection (1)(a) of this section in increments that
allow the director, at the request of the primary sponsor, to transfer:
(a) In the biennium
beginning July 1, 2007, up to $5 million in net proceeds of lottery bonds to
the Coos Bay Channel Fund established in section 15 of this 2007 Act for
distribution to the primary sponsor after the director finds that the primary
sponsor has taken action pursuant to the grant agreement required in section 14
of this 2007 Act that triggers the distribution of bond proceeds described in
this paragraph.
(b) In the biennium
beginning July 1, 2009, up to $15 million in net proceeds of lottery bonds to
the Coos Bay Channel Fund established in section 15 of this 2007 Act for
distribution to the primary sponsor after the director finds that the primary
sponsor has taken action pursuant to the grant agreement required in section 14
of this 2007 Act that triggers the distribution of bond proceeds described in
this paragraph.
(c) In the biennium
beginning July 1, 2011, up to $40 million in net proceeds of lottery bonds to
the Coos Bay Channel Fund established in section 15 of this 2007 Act for
distribution to the primary sponsor after the director finds that the primary
sponsor has taken action pursuant to the grant agreement required in section 14
of this 2007 Act that triggers the distribution of bond proceeds described in
this paragraph.
(3) Lottery bonds
authorized under this section may not be issued after June 30, 2013.
SECTION 14. (1) The Director of the Economic and
Community Development Department shall enter into one or more grant agreements
with the primary sponsor that require the Economic and Community Development
Department to disburse, over the course of the project, an aggregate principal
amount of $60 million for payment of the expenses of the Coos Bay Channel Project,
in the increments described in section 13 (2) of this 2007 Act, from the Coos
Bay Channel Fund established pursuant to section 15 of this 2007 Act, to the
primary sponsor. The department shall make disbursements from the fund as soon
as bond proceeds are deposited in the fund.
(2) The one or more
grant agreements must:
(a) Subject to
subsection (4) of this section, establish appropriate triggers for the
incremental biennial distribution of bond proceeds described in section 13 (2)
of this 2007 Act based on appropriate measures of progress in completion of the
project that are satisfactory to the director and consistent with prudent
financial practices that reflect sound stewardship of public resources.
(b) Require the primary
sponsor to:
(A) Return bond proceeds
distributed and reimburse the State of
(i) Due to an act of
God; or
(ii) Because the State
of Oregon fails to distribute one or more of the increments of bond proceeds
described in section 13 (2) of this 2007 Act and required to substantially
complete the project, for a reason other than a failure of the primary sponsor
to take action to trigger the distribution or a failure of the project to meet
federal or state environmental permitting standards necessary to complete the
project.
(B) Provide evidence
satisfactory to the director that the primary sponsor has obtained a letter of
credit, entered into a surety bond agreement or provided other similar
financial assurance to guarantee the return of bond proceeds and reimbursement
for expenditures required by this paragraph.
(3) Notwithstanding
subsection (2)(b)(B) of this section, the primary
sponsor may choose to guarantee the bond proceeds distributed and the state
expenditures made in the biennium beginning July 1, 2007, by converting the
amount into a loan subject to an agreement that allows the primary sponsor to
repay the amount over time at terms provided for in the grant agreement.
(4)(a) Prior to the
distribution of bond proceeds described in section 13 (2)(a) of this 2007 Act,
the primary sponsor shall provide to the director a budget document outlining
expenditures for the Coos Bay Channel Project and verify and certify to the
director that:
(A) The primary sponsor
has entered into a commercially reasonable agreement with a cargo terminal
developer to construct and operate cargo terminal facilities on the
(B) The Secretary of the
Army has authorized the performance of environmental studies on the channel
pursuant to section 203 of the Water Resources Development Act of 1986 (P.L.
99-662); and
(C) The cargo terminal
developer has entered into, or made appropriate progress in negotiations
toward, a contract with rail service providers to ensure adequate rail
infrastructure and service capacity to serve the cargo terminal facilities to
be developed as part of the Coos Bay Channel Project.
(b) Prior to the
distribution of bond proceeds described in section 13 (2)(b) of this 2007 Act,
the primary sponsor shall provide an updated budget document outlining
expenditures for the Coos Bay Channel Project and verify and certify to the
director that:
(A) The Secretary of the
Army has provided a favorable recommendation to Congress to proceed with the
(B) The primary sponsor
has obtained, or has reasonable assurance of obtaining, adequate funding to
complete permitting and engineering work on the
(c) Prior to the
distribution of bond proceeds described in section 13 (2)(c)
of this 2007 Act, the primary sponsor shall provide an updated budget outlining
expenditures for the completion of the
(A) The sponsor has
received the necessary approvals and permits under ORS 196.600 to 196.905 and
section 404 of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.)
to allow the Coos Bay Channel Project to be completed; and
(B) The primary sponsor
has obtained, or has reasonable assurance of obtaining, adequate funding to
complete the
(5) The State of
(6) By receipt of any
part of net proceeds of lottery bonds described in section 13 of this 2007 Act,
the primary sponsor agrees to indemnify the state and its agencies and
departments to the fullest extent permitted by law for liability the state or
its agencies and departments might incur in connection with any borrowing by
the primary sponsor for the project.
SECTION 15. (1) The
(2) Moneys in the fund
are available to the department for distribution to the primary sponsor to pay
the nonfederal cost share, or the nonprivate cost share, of expenses of the
project up to the amount specified in section 13 of this 2007 Act and to pay
bond-related costs.
SECTION 16. (1) Pursuant to ORS 286.560 to 286.580,
lottery bonds may be issued to fund grants to the Oregon Public Broadcasting
Corporation for the purpose of building digital transmission facilities to
serve the people of
(2) The use of lottery
bond proceeds is authorized based on the following findings:
(a) The public
broadcasting system in Oregon provides programming designed and selected to
assist in the education of viewers in broad areas of knowledge, skill
development, finance, recreation, culture, government, history and the arts.
(b) A digital upgrade to
the public broadcasting system in
(c) Building of the
digital transmission facilities must begin by June 1, 2008, to meet federal
transmission requirements in 2009.
(3) The aggregate
principal amount of lottery bonds issued pursuant to this section may not
exceed the sum of $3 million and an additional amount estimated by the State
Treasurer to be necessary to pay bond-related costs as defined in ORS 286.560.
Lottery bonds issued pursuant to this section shall be issued only at the
request of the Director of the Oregon Department of Administrative Services.
(4) The net proceeds of
lottery bonds issued pursuant to this section shall be deposited in the Public
Broadcasting in
(5) The proceeds of the
lottery bonds issued pursuant to this section shall be used only for the
purpose set forth in subsection (1) of this section and for bond-related costs.
SECTION 17. As used in sections 17 to 21 of this 2007
Act:
(1) “Preconstruction”
means project design and engineering or right-of-way acquisition that is
undertaken prior to entering a construction contract.
(2) “Southeast
Metropolitan Extension Project” means each stage of the preconstruction
activities and construction activities, including but not limited to design,
engineering, right-of-way acquisition and procurement and installation of
components, to extend light rail between Portland and Clackamas County.
(3) “Tri-Met” means the
Tri-County Metropolitan Transportation District of
SECTION 18. (1) In addition to amounts authorized under
ORS 286.505 to 286.545, for the biennium beginning July 1, 2007, the State Treasurer
may issue lottery bonds pursuant to ORS 286.560 to 286.580 in the amount of
$250 million for payment of the expenses of the Southeast Metropolitan
Extension Project, plus an additional amount to be estimated by the State
Treasurer for payment of bond-related costs of the Oregon Department of
Administrative Services, the Department of Transportation and the State
Treasurer.
(2) Lottery bonds
authorized under this section shall be issued no later than June 30, 2009, at
the request of the Director of Transportation in accordance with the grant
agreement described in section 21 of this 2007 Act. If the requirements
specified in section 21 of this 2007 Act have not been met by June 30, 2009,
the lottery bonds authorized under this section may not be issued.
(3) Net proceeds of
lottery bonds issued under this section, in the amount of $250 million, shall
be deposited in the Southeast Metropolitan Extension Project Fund established
by section 20 of this 2007 Act.
(4) The bond-related
costs of the Oregon Department of Administrative Services, the Department of
Transportation and the State Treasurer for the lottery bonds authorized by this
section shall be paid from the gross proceeds of lottery bonds issued under
subsection (2) of this section and from allocations under ORS 286.576 (1)(c).
SECTION 19. The Legislatively Assembly finds that:
(1) The Southeast
Metropolitan Extension Project will accomplish the purposes of creating jobs
and furthering economic development in
(a) Construction and
operation of the Southeast Metropolitan Extension Project will reduce traffic
congestion on existing highways and roads, improving the attractiveness of the
metropolitan area to new businesses and supporting the operations and
prosperity of existing businesses;
(b) Construction and
operation of the Southeast Metropolitan Extension Project will reduce the cost
and time required for family wage earners to commute to work, permitting more
of Oregon’s workforce to obtain jobs for which these workers are qualified; and
(c) Authorization of the
issuance of lottery bonds for the Southeast Metropolitan Extension Project will
increase the likelihood of receiving federal funds for the Southeast
Metropolitan Extension Project that add new revenues that will directly benefit
Oregon’s construction industry.
(2) The factors
described in subsection (1) of this section will encourage and promote economic
development within the State of
SECTION 20. The Southeast Metropolitan Extension
Project Fund is established separate and distinct from the General Fund. The
moneys in the Southeast Metropolitan Extension Project Fund and the interest
earnings on the fund are continuously appropriated to the Department of
Transportation for the purposes described in section 21 of this 2007 Act and
for the purpose of paying the administrative expenses incurred by the
department by entering into and administering the grant agreement authorized
under section 21 of this 2007 Act. The fund consists of moneys deposited into
the fund under section 18 of this 2007 Act and may include fees, moneys or
other revenues available for payment of expenses of the Southeast Metropolitan
Extension Project from the United States Department of Transportation or the
Federal Highway Administration.
SECTION 21. (1) The Director of Transportation shall
enter into a grant agreement with Tri-Met no later than June 30, 2009, that
requires the Department of Transportation to disburse to Tri-Met from the
Southeast Metropolitan Extension Project Fund established by section 20 of this
2007 Act an aggregate amount of $250 million, plus interest earnings on moneys
in the fund, over the course of the Southeast Metropolitan Extension Project to
pay for costs of the project.
(2) Disbursements from
the fund authorized by this section shall be made when:
(a) Moneys are available
in the fund;
(b) Tri-Met has entered
into one or more contracts for the design, construction or acquisition of
components of the Southeast Metropolitan Extension Project; and
(c) The director
determines that:
(A) Tri-Met has entered
into necessary intergovernmental agreements with local governments and can
demonstrate it has sufficient financing to complete the preconstruction or
construction phase of the Southeast Metropolitan Extension Project for which
funds are requested;
(B) Tri-Met has agreed
as part of the grant agreement authorized by this section that Tri-Met will not
request or accept any state General Fund moneys for the Southeast Metropolitan
Extension Project; and
(C) Except for land
required for right-of-way acquisition, Tri-Met has obtained the land use final
order for the phase of the project for which disbursements are requested.
(3) After a
determination by the director that Tri-Met has met all of the conditions
described in subsection (2) of this section, the department shall disburse to
Tri-Met from the Southeast Metropolitan Extension Project Fund the amount
requested by Tri-Met until all moneys in the fund have been disbursed to
Tri-Met.
(4) The state is not
liable to the lenders, vendors or contractors of Tri-Met for any action or
omission under sections 18 to 21 of this 2007 Act or the grant agreement
authorized by this section, except for a failure to allocate and deposit in the
Southeast Metropolitan Extension Project Fund amounts authorized by section 18
of this 2007 Act or to disburse from the fund to Tri-Met amounts required by
this section and the grant agreement authorized by this section.
SECTION 22. (1) In addition to the amounts authorized
under ORS 286.505 to 286.545, for the biennium beginning July 1, 2007, at the
request of the Director of Transportation, the State Treasurer may issue
lottery bonds pursuant to ORS 286.560 to 286.580 to provide funding for grants
authorized under section 23 of this 2007 Act.
(2) The use of lottery
bond proceeds as provided in subsection (1) of this section will create jobs
and further economic development in the State of Oregon and is a lawful use of
lottery funds under section 4, Article XV of the Oregon Constitution, because:
(a) There is an emerging
market for streetcar manufacturing within the
(b)
(c) Manufacturing 20
streetcar vehicles per year for the next 10 to 15 years is projected to create
300 permanent manufacturing jobs in
(d) By entering into or
enhancing their participation in this market,
(3) The aggregate
principal amount of lottery bonds issued pursuant to this section may not
exceed $20 million, plus an additional amount to be estimated by the State
Treasurer for payment of bond-related costs of the Department of Administrative
Services, the Department of Transportation and the State Treasurer.
(4) Lottery bonds issued
under this section shall be issued no later than June 30, 2009, at the request
of the director in accordance with the grant agreement described in section 23
of this 2007 Act.
(5) The net proceeds of
lottery bonds issued pursuant to this section shall be deposited in the Oregon
Streetcar Project Fund established by section 23 of this 2007 Act and used only
for the purposes specified in section 23 (3) of this 2007 Act and for
bond-related costs.
SECTION 23. (1) The
(2) The
(3) The moneys in the
(a) Making grants to
municipalities, as defined in ORS 285B.410, to provide streetcars for public
transit systems; and
(b) Paying the
administrative costs incurred by the department in administering the grant
program.
(4) Funds for grants
authorized under this section may be disbursed only when:
(a) Funds are available
in the
(b) The grant recipient
has applied for the funding using the application procedures adopted by the
department by rule and has entered into a grant agreement with the department
that:
(A) Requires the
applicant to operate a public transit system that includes streetcars that are
available to the public;
(B) Requires that grant
funds be used only for the costs of purchasing newly constructed streetcars
from an Oregon-based and Oregon-owned manufacturer; and
(C) Includes any other
provisions the department determines necessary to implement the purposes of
this section and to protect the interest of the public; and
(c) The Director of
Transportation determines that the purchase of streetcars as contemplated in
the grant agreement will result in the creation or maintenance of jobs with
SECTION 24. (1) The Department of Transportation shall
study the effect of grants authorized by section 23 of this 2007 Act on the
creation or maintenance of jobs in Oregon, and shall file semiannual reports
with the Oregon Transportation Commission on the findings of the studies
conducted.
(2) The department shall
adopt rules and develop policies and grant application procedures necessary to
achieve the goals of the grant program.
SECTION 25. This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 2007 Act takes effect July 1, 2007.
Approved by the Governor July 3, 2007
Filed in the office of Secretary of State July 5, 2007
Effective date July 3, 2007
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