74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 5036
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Budget and Management
Division, Oregon Department of Administrative Services)
CHAPTER ................
AN ACT
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 Oregon:
SECTION 1. ORS 285B.551 is amended to read:
285B.551. (1) Pursuant to ORS 286.560 to 286.580, lottery bonds
may be issued:
(a) To provide financial and other assistance, including but
not limited to loans and grants, to municipalities, ports and
other persons and entities in accordance with the laws governing
use of moneys in the Special Public Works Fund created by ORS
285B.455, the Water Fund created by ORS 285B.563, the Safe
Drinking Water Revolving Loan Fund created by ORS 285A.213, the
Oregon Port Revolving Fund created by ORS 285A.708, the
Brownfields Redevelopment Fund created by ORS 285A.188, the
Oregon Business Development Fund created by ORS 285B.092 and the
Marine Navigation Improvement Fund created by ORS 777.267.
(b) To fund Oregon's share of the costs of the Columbia River
channel deepening project.
(c) To fund Oregon's share of the costs of studies and
ecosystem restoration projects in the lower Columbia River
estuary designed to improve habitat for listed endangered or
threatened species of Columbia River anadromous salmonids.
(2) The use of lottery bond proceeds is authorized based on the
following findings:
(a) The financial and other assistance to municipalities, ports
and other persons and entities will assist in the establishment
and expansion of businesses in Oregon and in the construction,
improvement and expansion of infrastructure, community and port
facilities and other facilities that comprise the physical
foundation for industrial and commercial activity and provide the
basic framework for continued and expanded economic opportunities
and quality communities throughout Oregon.
(b) The Columbia River channel deepening project is necessary
to allow newer, larger steamships access to Oregon and Washington
deep draft ports. A deeper shipping channel will allow the
Columbia River to continue as a world leader in agricultural
exports and as a key trade corridor for farms and businesses
throughout Oregon and the region.
Enrolled House Bill 5036 (HB 5036-A) Page 1
(c) Such financial and other assistance to municipalities,
ports and other persons and entities and the deepening of the
Columbia River channel will therefore promote economic
development within this state, and thus the use of net proceeds
derived from the operation of the Oregon State Lottery to pay
debt service on lottery bonds issued under this section to
provide such financial and other assistance to municipalities,
ports and other persons and entities and to pay a portion of the
costs of deepening the Columbia River channel is an authorized
use of state lottery funds under section 4, Article XV of the
Oregon Constitution, and ORS 461.510.
(d) The current lower Columbia River estuary habitat for listed
endangered or threatened species of Columbia River anadromous
salmonids could be improved through ecosystem restoration
projects. The use of the Oregon State Lottery to pay debt service
on lottery bonds issued under this section to pay for studying
how the estuary could be improved and to pay for ecosystem
restoration projects are authorized uses of state lottery funds.
(3) The aggregate principal amount of lottery bonds issued
pursuant to subsection (1)(a) of this section for financial and
other assistance to municipalities, ports and other persons and
entities may not exceed the sum of { - $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 Columbia River channel
deepening project may not exceed the sum of $17.7 million and an
additional amount estimated by the State Treasurer to be
necessary to pay bond-related costs. Lottery bonds issued
pursuant to this section may be issued only at the request of the
Director of the Economic and Community Development Department.
The director may not request the issuance of lottery bonds
pursuant to subsection (1)(b) of this section until a final
environmental impact statement has been issued and a record of
decisions has been submitted to Congress by the United States
Army Corps of Engineers, Congress has authorized the Columbia
River channel deepening project, and the Washington sponsors'
shares of the costs of the Columbia River channel deepening
project have been committed.
(4) The net proceeds of lottery bonds issued pursuant to
subsection (1)(a) and (b) of this section shall be deposited in
the Economic Infrastructure Project Fund, which is hereby
established in the State Treasury separate and distinct from the
General Fund. All moneys in the Economic Infrastructure Project
Fund are continuously appropriated to the Economic and Community
Development Department for any purpose for which moneys in the
Special Public Works Fund created by ORS 285B.455 may be used,
any purpose for which moneys in the Water Fund created by ORS
285B.563 may be used, any purpose for which moneys in the Safe
Drinking Water Revolving Loan Fund created by ORS 285A.213 may be
used, any purpose for which moneys in the Oregon Port Revolving
Fund created by ORS 285A.708 may be used, any purpose for which
moneys in the Brownfields Redevelopment Fund created by ORS
285A.188 may be used, any purpose for which moneys in the Oregon
Business Development Fund created by ORS 285B.092 may be used and
any purpose for which moneys in the Marine Navigation Improvement
Fund created by ORS 777.267 may be used. The Director of the
Economic and Community Development Department shall allocate the
moneys deposited in the Economic Infrastructure Project Fund for
the purposes described in this subsection in accordance with the
Enrolled House Bill 5036 (HB 5036-A) Page 2
policies developed by the Oregon Economic and Community
Development Commission in accordance with ORS 285A.045. However,
the director shall transfer from the Economic Infrastructure
Project Fund and deposit into the Channel Deepening Account of
the Marine Navigation Improvement Fund the proceeds of any
lottery bonds sold to finance a portion of the costs of the
Columbia River channel deepening project. Upon determining the
relative allocation of moneys deposited in the Economic
Infrastructure Project Fund among the purposes described in this
subsection, the director shall transfer from the Economic
Infrastructure Project Fund, and deposit into each of the other
funds described in this subsection, the amounts so allocated.
Notwithstanding any other provision of law governing the funds
described in this subsection, the funds described in this
subsection may be credited with moneys transferred from the
Economic Infrastructure Project Fund by the director in
accordance with this subsection.
(5) The aggregate principal amount of lottery bonds issued
pursuant to subsection (1)(c) of this section for the costs of
studies and ecosystem restoration projects in the lower Columbia
River estuary may not exceed the sum of $750,000 and an
additional amount estimated by the State Treasurer to be
necessary to pay bond-related costs. The net proceeds of lottery
bonds issued pursuant to subsection (1)(c) of this section shall
be deposited in the Oregon Community Development Fund created by
ORS 285A.227 and may be used only for the Oregon nonfederal share
of United States Army Corps of Engineers Columbia River estuary
projects authorized by Congress prior to August 9, 2001. The
director may not request the issuance of lottery bonds pursuant
to subsection (1)(c) of this section until Congress and
Washington have authorized their respective shares of the costs
of the studies and ecosystem restoration projects in the lower
Columbia River estuary.
(6) The proceeds of lottery bonds issued pursuant to this
section may be used only for the purposes set forth in this
section and for bond-related costs.
SECTION 2. 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 Oregon's healthy economic growth.
(3) The aggregate principal amount of lottery bonds issued
pursuant to subsection (1) of this section by the Department of
Higher Education for deferred maintenance { + 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
Enrolled House Bill 5036 (HB 5036-A) Page 3
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, Oregon Laws 2005, + } { - of this 2005
Act - } shall be deposited into the Department of Higher
Education Deferred Maintenance { + and Capital Repair + }
Project Fund. Moneys in the fund are continuously appropriated to
the Department of Higher Education for deferred maintenance
{ + and capital repair + } projects.
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
Oregon's healthy economic growth.
(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
Enrolled House Bill 5036 (HB 5036-A) Page 4
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 Hillsboro Downtown Parking Facility will
accomplish the purpose of creating jobs and furthering economic
development in Oregon because construction and operation of a
parking facility in the downtown area of the City of Hillsboro
will:
(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 Oregon needs
assessments performed by the Employment Department identified a
projected shortage.
(c) Increase the likelihood of federal funding for the facility
and add new moneys that directly benefit Oregon's construction
industry as a result of receiving authorization for the issuance
of lottery bonds.
(2) The factors described in subsection (1) of this section
will encourage and promote economic development within the State
of Oregon, and issuance of lottery bonds to finance the City of
Hillsboro Downtown Parking Facility is therefore an appropriate
use of state lottery funds under section 4, Article XV of the
Oregon Constitution, and ORS 461.510. + }
SECTION 9. { + (1) The City of Hillsboro Downtown Parking
Facility Fund is established separate and distinct from the
General Fund. The moneys in the City of Hillsboro Downtown
Parking Facility Fund and the interest earnings of the fund are
continuously appropriated to the Economic and Community
Development Department for the purpose described in subsection
(2) of this section, for payment of the department's expenses
incurred for entering into, modifying and administering the grant
agreement authorized by this section in an amount up to $36,000
and for payment of bond-related costs. The fund consists of
moneys deposited in the fund under section 7 of this 2007 Act,
and may include fees, moneys or other revenues available for
payment of expenses of establishing the facility.
(2) Subject to subsection (3) of this section, moneys in the
fund shall be available for immediate distribution to the City of
Hillsboro to pay the expenses of the facility.
(3) The Director of the Economic and Community Development
Department shall enter into a grant agreement with the City of
Hillsboro that requires:
(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.
Enrolled House Bill 5036 (HB 5036-A) Page 5
(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 Hillsboro Downtown Parking Facility Fund if, upon
completion of the facility, the aggregate expenditure of state
and local moneys is less than $8.6 million.
(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 Hillsboro under the
requirements of this section and the grant agreement, the
director shall:
(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) 'Oregon sponsors' means the Oregon International Port of
Coos Bay or any agency acting as a financial contributor to the
Coos Bay Channel Project.
(4) 'Primary sponsor' means the Oregon International Port of
Coos Bay as representative of the Oregon sponsors. + }
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.
Enrolled House Bill 5036 (HB 5036-A) Page 6
(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. + }
Enrolled House Bill 5036 (HB 5036-A) Page 7
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
Oregon for expenditures made pursuant to sections 11 to 15 of
this 2007 Act if the director determines that the project is not
substantially completed by July 1, 2019, unless the project is
not substantially completed:
(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 Coos Bay channel;
(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
Enrolled House Bill 5036 (HB 5036-A) Page 8
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 Coos Bay Channel
Project; and
(B) The primary sponsor has obtained, or has reasonable
assurance of obtaining, adequate funding to complete permitting
and engineering work on the Coos Bay Channel Project.
(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 Coos Bay Channel Project and verify and certify
to the director that:
(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 Coos Bay
Channel Project.
(5) The State of Oregon and its agencies and departments are
not liable to the lenders, vendors or contractors of the Oregon
sponsors for any action or omission under sections 11 to 15 of
this 2007 Act.
(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 Coos Bay Channel Fund is established
separate and distinct from the General Fund. Interest earned by
the Coos Bay Channel Fund shall be credited to the fund. The
moneys in the Coos Bay Channel Fund are continuously appropriated
to the Economic and Community Development Department for the
purpose described in subsection (2) of this section. The fund
shall consist of moneys transferred to the fund under section 13
of this 2007 Act and interest earnings on moneys in the fund.
(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 Oregon.
(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.
Enrolled House Bill 5036 (HB 5036-A) Page 9
(b) A digital upgrade to the public broadcasting system in
Oregon will tie the state together, thereby expanding
opportunities for economic growth and employment.
(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 Oregon
Lottery Project Fund, which is established in the State Treasury,
separate and distinct from the General Fund. Interest earned by
the Public Broadcasting in Oregon Lottery Project Fund shall be
credited to the fund. The moneys in the Public Broadcasting in
Oregon Lottery Project Fund are continuously appropriated to the
Oregon Department of Administrative Services for the purpose
described in subsection (1) of this section.
(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 Oregon, a mass transit district created under ORS
chapter 267. + }
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
Enrolled House Bill 5036 (HB 5036-A) Page 10
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 Oregon because:
(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 Oregon, and issuance of lottery bonds to finance the Southeast
Metropolitan Extension Project is therefore an appropriate use of
state lottery funds under section 4, Article XV of the Oregon
Constitution, and ORS 461.510. + }
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
Enrolled House Bill 5036 (HB 5036-A) Page 11
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 United States.
(b) Oregon's manufacturing sector is in a unique position to
enter into or enhance its participation in this specialized
market.
(c) Manufacturing 20 streetcar vehicles per year for the next
10 to 15 years is projected to create 300 permanent manufacturing
jobs in Oregon.
(d) By entering into or enhancing their participation in this
market, Oregon manufacturers will create jobs for Oregon
residents.
(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. + }
Enrolled House Bill 5036 (HB 5036-A) Page 12
SECTION 23. { + (1) The Oregon Streetcar Project Fund is
established separate and distinct from the General Fund. Interest
earned on moneys in the Oregon Streetcar Project Fund shall be
credited to the Oregon Streetcar Project Fund.
(2) The Oregon Streetcar Project Fund shall consist of lottery
bond proceeds deposited in the fund, earnings on the fund and any
other moneys appropriated to the fund by the Legislative
Assembly.
(3) The moneys in the Oregon Streetcar Project Fund are
continuously appropriated to the Department of Transportation for
the purposes of:
(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 Oregon Streetcar Project Fund;
(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 Oregon manufacturers
of streetcars. If the director determines that there are no
Oregon manufacturers of streetcars, the director may decline to
request the issuance of bonds authorized under section 22 of this
2007 Act or may authorize grant agreements that include the
purchase of streetcars from out-of-state manufacturers. + }
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. + }
----------
Enrolled House Bill 5036 (HB 5036-A) Page 13
Passed by House June 25, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 26, 2007
...........................................................
President of Senate
Enrolled House Bill 5036 (HB 5036-A) Page 14
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 5036 (HB 5036-A) Page 15