Chapter 785
AN ACT
HB 3482
Relating to Oregon Facilities Authority;
creating new provisions; amending ORS 289.005, 289.010, 289.100, 289.110 and
289.125; and declaring an emergency.
Be It Enacted by the People of
the State of
SECTION 1. ORS 289.005 is amended to read:
289.005. As used in this
chapter, unless the context requires otherwise:
(1) “Authority” means
the Oregon Facilities Authority created by this chapter.
(2) “Bonds” or “revenue
bonds” means revenue bonds, notes, bond anticipation notes and any other
evidence of indebtedness of the authority issued under the provisions of this
chapter, including revenue refunding bonds, notwithstanding that the same may
be secured by any federally guaranteed security, whether acquired by the
authority or by a participating institution, or by mortgage, the full faith and
credit or by any other lawfully pledged security of one or more participating
institutions.
(3) “Cost” means the
cost of:
(a) Construction,
acquisition, alteration, enlargement, reconstruction and remodeling of a
project, including all lands, structures, real or personal property, rights,
rights of way, air rights, franchises, easements and interests acquired or used
for or in connection with a project;
(b) Demolishing or
removing any buildings or structures on land as acquired, including the cost of
acquiring any lands to which such buildings or structures may be moved;
(c) All machinery and
equipment;
(d) Financing charges,
interest prior to, during and for a period after completion of construction and
acquisition, reasonably required amounts to make the project operational,
provisions for reserves for principal and interest and for extensions,
enlargements, additions, replacements, renovations and improvements;
(e) Architectural,
actuarial engineering, financial and legal services, plans specifications,
studies, surveys, estimates of costs and of revenues, administrative expenses,
expenses necessary or incident to determining the feasibility or practicability
of constructing the project; and
(f) Such other expenses
as may be necessary or incident to a project, the financing of such project and
the placing of the project in operation.
(4) “Cultural
institution” means a public or nonprofit institution within this state which
engages in the cultural, intellectual, scientific, environmental, educational
or artistic enrichment of the people of this state. “Cultural institution”
includes, without limitation, aquaria, botanical societies, historical
societies, land conservation organizations, libraries, museums, performing arts
associations or societies, scientific societies, wildlife conservation
organizations and zoological societies. “Cultural institution” does not mean
any school or any institution primarily engaged in religious or sectarian
activities.
(5) “Health care
institution” means a public or nonprofit organization within this state
that provides health care and related services, including but not limited to
the provision of inpatient and outpatient care, diagnostic or therapeutic
services, laboratory services, medicinal drugs, nursing care, assisted living,
elderly care and housing, including retirement communities, and equipment used
or useful for the provision of health care and related services.
(6) “Housing institution”
means a public or nonprofit organization within this state that provides
decent, affordable housing to low income persons.
(7) “Institution” means
[an institution for housing, higher
education or prekindergarten through grade 12 education, a school for the
handicapped, a health care institution or a cultural institution within this
state] a cultural institution, a health care institution, a housing
institution, an institution for higher education, an institution for
prekindergarten through grade 12 education, a school for persons with
disabilities or another nonprofit.
(8) “Institution for
higher education” means a public or nonprofit educational institution within
this state authorized by law to provide a program of education beyond the high
school level, including community colleges and associate degree granting
institutions. “Institution for higher education” does not mean any school or
any institution primarily engaged in religious or sectarian activities.
(9) “Institution for
prekindergarten through grade 12 education” means an Oregon prekindergarten as
defined in ORS 329.170, a public educational institution within this state
authorized by law to provide a program of education for kindergarten through
grade 12 or a nonprofit educational institution within this state registered as
a private school under ORS 345.545 that provides a program of education for
prekindergarten through grade 12. “Institution for prekindergarten through
grade 12 education” does not mean a school or institution primarily engaged in
religious or sectarian activities.
(10) “Nonprofit” means
an institution, organization or entity within this state exempt from
taxation under section 501(c)(3) of the Internal Revenue Code as [amended and in effect on the effective date
of this chapter.] defined in ORS 314.011.
[(11) “Participating institution” means a participating institution for
health care, housing, higher education, a participating school for the
handicapped or a participating cultural institution.]
[(12)(a)] (11)(a) “Project” means
the financing or refinancing, including without limitation, acquisition,
construction, enlargement, remodeling, renovation, improvement, furnishing or
equipping, of the following:
(A) In the case of a
participating institution that is an institution for higher education, an
institution for prekindergarten through grade 12 education or a school for [the handicapped] persons with
disabilities, a structure or structures suitable for use as a dormitory or
other multiunit housing facility for students, faculty, officers or employees,
or a dining hall, student union, administration building, academic building,
library, laboratory, research facility, classroom, athletic facility, health
care facility, maintenance, storage or utility facility and other structures or
facilities related to any of the structures required or used for the
instruction of students, the conducting of research or the operation of an
institution for higher education, an institution for prekindergarten through
grade 12 education or a school for [the
handicapped] persons with disabilities. It shall also include
landscaping, site preparation, furniture, equipment and machinery and other
similar items necessary or convenient for the operation of a particular
facility or structure in the manner for which its use is intended and shall
further include any furnishings, equipment, machinery and other similar items
necessary or convenient for the operation of an institution of higher
education, an institution for prekindergarten through grade 12 education or a
school for [the handicapped]
persons with disabilities, whether or not such items are related to a
particular facility or structure financed under this chapter[;].
(B) In the case of a
participating institution that is a housing institution, a structure or
structures suitable for use as housing, including residences or multiunit
housing facilities, administration buildings, maintenance, storage or utility
facilities and other structures or facilities related to any of the structures
required or used for the operation of the housing, including parking and other
facilities or structures essential or convenient for the orderly provision of
such housing. It shall also include landscaping, site preparation, furniture,
equipment and machinery and other similar items necessary or convenient for the
particular housing facility or structure in the manner for which its use is
intended and shall further include any furnishings, equipment, machinery and
other similar items necessary or convenient for the provision of housing,
whether or not such items are related to a particular facility or structure
financed under this chapter[;].
(C) In the case of a
participating institution that is a cultural institution, a structure or
structures suitable for its purposes, whether or not to be used to provide
educational services, or research resources, including use as or in connection
with an administrative facility, aquarium, assembly hall, auditorium, botanical
garden, exhibition hall, gallery, greenhouse, library, museum, scientific
laboratory, theater or zoological facility. It shall also include supporting
facilities, landscaping, site preparation, furniture, equipment, machinery and
other similar items necessary or convenient for the operation of a cultural
institution, whether or not such items are related to a particular facility or
structure financed under this chapter, including books, works of art or other
items for display or exhibition[; and].
(D) In the case of a
participating institution that is a health care institution, a structure or
structures suitable for its purposes, including hospital facilities, inpatient
and outpatient clinics, doctors’ offices, administration buildings, parking,
maintenance, storage or utility facilities, nursing care or assisted living
facilities, elderly care and housing facilities, including retirement
communities, and other structures or facilities related to any of the
structures required or used for the operation of the health care institution,
including other facilities or structures essential or convenient for the
orderly provision of such health care. It shall also include landscaping, site
preparation, furniture, equipment and machinery and other similar items
necessary or convenient for the particular health care facility or structure in
the manner for which its use is intended and shall further include any working
capital, furnishings, equipment, machinery and other similar items necessary or
convenient for the provision of health care, whether or not such items are
related to a particular facility or structure financed under this chapter,
including borrowings needed to alleviate interim cash flow deficits of a health
care institution.
(E) In the case of a
participating institution that is a nonprofit not otherwise specified in this
subsection, a structure or structures suitable for its purposes, including
facilities or structures essential or convenient for the orderly operations of
the nonprofit. It shall also include acquisition of interests in land,
landscaping, site preparation, furniture, equipment and machinery and other
similar items necessary or convenient for the nonprofit, whether or not the
items are related to a particular facility or structure financed under this
chapter, including borrowings needed to alleviate interim cash flow deficits of
the nonprofit.
(b) “Project” also
includes any combination of one or more of the projects undertaken jointly by
one or more participating institutions with each other or with other parties.
(c) “Project” does not
include any facility used or to be used for sectarian instruction or as a place
of religious worship or any facility which is used or to be used primarily in
connection with any part of the program of a school or department of divinity
for any religious denomination.
[(13)] (12) “School for [the
handicapped] persons with disabilities” means a public or nonprofit
primary, secondary or post-secondary school within this state [which] that serves students at
least 70 percent of whom are [handicapped]
persons with disabilities as determined by one or more appropriate
education, rehabilitation, medical or mental health authorities; is accredited
by a recognized accrediting body; and is determined by the authority to be a
major resource of benefit to [the
handicapped] persons with disabilities. “School for [the handicapped] persons with
disabilities” does not mean any school or any institution primarily engaged
in religious or sectarian activities.
SECTION 2. ORS 289.010 is amended to read:
289.010. (1) The
Legislative Assembly finds that by use of the powers and procedures described
in this chapter for the assembling and financing of lands for housing,
educational, [and] cultural or
other nonprofit uses and for the construction and financing of facilities
for [such] those uses,
financed through the issuance of revenue bonds secured solely by the properties
and rentals thus made available, the state may be able to [effect substantially the provisions] increase the availability
of decent, affordable housing, the achievement of higher levels of learning and
development of the intellectual capacities of citizens, the [and] expansion of the authorized
services and resources for the intellectual and artistic enrichment of citizens,
the advancement of nonprofit activities and services and the general well-being
of citizens.
(2) It is the purpose of
this chapter to authorize the exercise of powers granted by this chapter by
this state in addition to and not in lieu of any other powers it may possess.
SECTION 3. ORS 289.100 is amended to read:
289.100. (1) There is created a body politic and corporate to be known as
the Oregon Facilities Authority. The authority is constituted a public
instrumentality, and the exercise by the authority of the powers conferred by
this chapter [shall be considered and
held to be] is the performance of an essential public function.
(2) The authority [shall consist of five] consists of seven
members who [shall be] must be
residents of this state[, not more than three of whom shall be members of the same political
party], not more than four of whom are members of the same political
party. The State Treasurer shall appoint the members, and members serve
at the pleasure of the State Treasurer. At least one of the members [shall be a person] must be an
individual knowledgeable in the field of state and municipal finance. At
least one of the members [shall be a
person] must be an individual knowledgeable in the building
construction field.
(3) Upon the expiration
of the term of [any] a member,
the State Treasurer shall appoint a successor [shall be appointed] for a term of four years.
(4) The State
Treasurer shall [fill any] appoint
an individual to fill a vacancy for the remainder of the unexpired term.
SECTION 4. ORS 289.110 is amended to read:
289.110. (1) In
addition to any other powers granted by law, [in relation to an eligible project,] the state, acting through the
State Treasurer or a designee [thereof]
of the State Treasurer, may:
[(1)] (a) Enter into agreements to finance the costs of an
eligible project by lending the proceeds of bonds authorized by this chapter to
[any] a participating
institution under [such] terms and
with [such] security [as the state may approve] approved by
the state.
[(2)] (b) Lease and sublease eligible projects to [any] participating institution [in such manner that rents to be charged for
the use of such projects shall be established, and revised from time to time as
necessary, so as to produce income and revenue sufficient to provide for the prompt
payment of principal of and interest on all bonds issued under this section
when due, and the lease shall also provide that the lessee shall be required to
pay all expenses of the operation and maintenance of the project including, but
without limitation, adequate insurance thereon and insurance against all
liability for injury to persons or property arising from the operation thereof,
and all taxes and special assessments levied upon or with respect to the leased
premises and payable during the term of the lease, during which term ad valorem
taxes in the same amount and to the same extent as though the lessee were the
owner of all real and personal property comprising the project] subject
to subsection (2) of this section.
[(3) Pledge and assign to the holders of such bonds or a trustee
therefor all or any part of the revenues of one or more eligible projects owned
or to be acquired by the state, and define and segregate such revenues or
provide for the payment thereof to a trustee.]
(c) Pledge or assign
all or part of the revenues of one or more eligible projects owned or to be
acquired by the state to the holders of bonds issued under this chapter or to a
trustee for the holders, and segregate the revenues or provide for payment of
the revenues to the trustee.
[(4)] (d) Mortgage or otherwise encumber eligible projects in
favor of the holders of [such bonds or a
trustee therefor. However, in creating any such mortgages or encumbrances, the
state cannot obligate itself] bonds issued under this chapter or a
trustee for the holders without obligating the state except with respect to
the project.
[(5) 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, including a contract entered into prior to the
construction, acquisition and installation of the eligible project authorizing
the lessee, subject to such terms and conditions as the state shall find
necessary or desirable and proper, to provide for the construction, acquisition
and installation of the buildings, improvements and equipment to be included in
the project by any means available to the lessee and in the manner determined
by the lessee.]
(e) Make contracts,
execute instruments and do what is necessary or desirable to exercise the
powers granted by this chapter, to perform the covenants or duties of this
state or to secure the payment of bonds issued under this chapter. Contracts
that may be made by the state include contracts entered into prior to
construction, acquisition or installation of an eligible project that
authorize, subject to terms and conditions the state finds necessary or
desirable, a lessee to provide for construction, acquisition or installation of
buildings, improvements or equipment to be included in the project.
[(6) Enter into and perform such contracts and agreements with
participating institutions as the respective boards of directors may consider
proper and feasible for or concerning the planning, construction, installation,
lease, or other acquisition, and the financing of such facilities, which
contracts and agreements may establish a body as may be considered proper for
the supervision and general management of the facilities of the eligible
project.]
(f) Enter into and
perform contracts and agreements with participating institutions for the
planning, construction, installation, acquisition, leasing or financing of
facilities of an eligible project, including a contract or agreement that
establishes a body for the supervision and general management of the
facilities.
[(7) Accept from any authorized agency of the federal government loans
or grants for the planning, construction, acquisition, leasing, or other
provision of any eligible project, and enter into agreements with such agency
respecting such loans or grants.]
(g) Accept loans or
grants for the planning, construction, installation, acquisition, leasing or
other provision of an eligible project from an authorized agency of the federal
government, and enter into agreements with the agency respecting the loans or
grants.
(2) A lease or sublease
entered into under subsection (1)(b) of this section
must provide that:
(a) Rents charged for
the use of the project are established and revised as necessary to produce
sufficient revenue to allow for payment of the principal of and interest on
bonds issued under this chapter when due; and
(b) The lessee or
sublessee is required to pay:
(A) The expenses of the
operation and maintenance of the project including, but not limited to,
adequate insurance on the project and insurance against liability for injury to
persons or property arising from the operation of the project; and
(B) The taxes and
special assessments levied upon the leased or subleased premises and payable
during the term of the lease or sublease.
(3) During the term of a
lease or sublease entered into under subsection (1)(b)
of this section, ad valorem taxes must be imposed on the real and personal
property of the eligible project in the same manner as the taxes would be
imposed if the lessee or sublessee were the owner of the eligible project.
SECTION 5. ORS 289.125 is amended to read:
289.125. (1) The
(a) Supporting projects
that increase the number of decent, affordable housing units in this state[.];
(b) Expanding the
educational resources in this state[.]; or
(c) Expanding the
cultural resources in this state.
(2) Upon determining a
project as eligible, the authority shall forward the application to the State
Treasurer, who shall determine whether to issue the revenue bonds.
(3) The authority may
treat as a single eligible project for bonding purposes any number of projects
determined to be eligible projects.
(4) The authority shall
collect the fees set forth in subsection (5) of this section from an applicant
that seeks to have a project declared eligible for financing. The fee identified
in subsection (5)(a) of this section may be
collected even though the project has not been determined to be eligible for
financing. [Moneys collected under this
subsection are continuously appropriated to the authority for the purpose of
administration or funding of any program it is authorized to operate.]
(5) The fees described
in subsection (4) of this section are [as
follows]:
[(a) $250 for an application of not to exceed
$500,000.]
[(b) $500 for an application of more than
$500,000.]
(a) An application
fee determined by the
[(c)] (b) A closing fee [of] not to exceed one-half of one percent
of the total bond issue for the project, as determined by the authority.
(6) The authority
shall deposit fees received under subsection (5) of this section [shall be credited to and deposited] in
the Oregon Facilities Authority Account established under ORS 289.130.
SECTION 6. Notwithstanding the term of office of
members of the Oregon Facilities Authority specified in ORS 289.100, for the
purpose of maintaining or improving the staggering of terms of individual
members, the State Treasurer may establish shorter terms for the first members
appointed to increase the membership of the authority from five members to
seven members pursuant to the amendments to ORS 289.100 by section 3 of this
2007 Act.
SECTION 7. 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 on its passage.
Approved by the Governor July 16, 2007
Filed in the office of Secretary of State July 17, 2007
Effective date July 16, 2007
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