74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2069
A-Engrossed
Senate Bill 21
Ordered by the Senate April 23
Including Senate Amendments dated April 23
Sponsored by Senator VERGER, Representatives MORGAN, ROBLAN;
Senators ATKINSON, BATES, KRUSE, MONNES ANDERSON, PROZANSKI,
WALKER, WHITSETT, Representatives BUCKLEY, CLEM, ESQUIVEL,
GILMAN, HANNA, KRIEGER, MAURER, RICHARDSON
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Authorizes State Treasurer, at request of Economic and
Community Development Department, to issue lottery bonds for
payment of expenses of Coos Bay Channel Project.
Creates Coos Bay Channel Fund. Continuously appropriates moneys
to department to pay expenses and bond-related costs related to
deepening and widening lower Coos Bay deep draft navigation
channel.
Declares emergency, effective July 1, 2007.
A BILL FOR AN ACT
Relating to allocation of lottery revenues for economic
development; appropriating money; and declaring an emergency.
Whereas the deep draft navigation channel in Coos Bay is an
asset of statewide importance that provides Oregon shippers with
competitive access to world markets; and
Whereas waterborne commerce originating in Oregon is valued in
excess of $5 billion and is projected to increase substantially
in coming years; and
Whereas in order to sustain and increase jobs and other
economic benefits associated with maritime trade, the Coos Bay
navigation channel must be maintained at depths adequate to
accommodate new generations of deep draft cargo vessels, which
will have an annual economic impact on the State of Oregon of
more than $500 million and will add substantially to the value of
maritime commerce moving through the state; and
Whereas the Oregon International Port of Coos Bay requires a
project to deepen the lower Coos Bay deep draft navigation
channel, west of the Coos Bay railroad bridge, from a depth of
minus 37 mean lower low water to minus 51 mean lower low water
and widen the channel from 300 feet to 500 feet, or to standards
determined by the primary sponsor based on feasibility studies
required, to anticipate future shipping needs of the port and
Oregon; and
Whereas a clear and prompt financial commitment from the State
of Oregon will allow the Oregon International Port of Coos Bay to
develop the Oregon Gateway, an intermodal container terminal for
the Coos Bay harbor; and
Whereas the Oregon Gateway will be a partnership between the
public and private sectors for significant landside terminal and
infrastructure development leading to long-term employment and
increased opportunities for transport of containerized cargo,
noncontainerized breakbulk and bulk cargo through the Coos Bay
harbor in the future; and
Whereas the issuance of lottery bonds to finance the Coos Bay
Channel Project is an appropriate use of state lottery funds;
now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 5 of this 2007 Act:
(1) '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.
(2) 'Oregon sponsors' means the Oregon International Port of
Coos Bay or any agency acting as a financial contributor to the
Coos Bay Channel Project.
(3) 'Primary sponsor' means the Oregon International Port of
Coos Bay as representative of the Oregon sponsors. + }
SECTION 2. { + 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 3 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 1 to 5
of this 2007 Act, and the commitments of the state under sections
1 to 5 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 3. { + (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) 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 5 of this 2007 Act for distribution to the
primary sponsor after the primary sponsor provides documentation
establishing to the satisfaction of the director that the primary
sponsor has entered into an agreement with a cargo terminal
developer, subject to termination based only on acts of God,
natural disasters, catastrophic events, acts of war or other
unforeseen events, to develop and operate terminal facilities on
the Coos Bay channel.
(b) In the biennium beginning July 1, 2009, up to $10 million
in net proceeds of lottery bonds to the fund established in
section 5 of this 2007 Act for distribution to the primary
sponsor after the primary sponsor provides documentation
establishing to the satisfaction of the director that the Chief
of Engineers of the United States Army Corps of Engineers has
provided a favorable recommendation to Congress to proceed with
the Coos Bay Channel Project and that federal moneys are
available to meet the federal cost share of the project. If
federal moneys are not committed to the project, the
documentation provided to the director by the primary sponsor
must include a signed agreement committing private parties to
provide moneys substantially equivalent to the federal cost
share, as determined by the director, as a private cost share.
(c) In the biennium beginning July 1, 2011, up to $45 million
in net proceeds of lottery bonds to the fund established in
section 5 of this 2007 Act for distribution to the primary
sponsor after the primary sponsor provides documentation
establishing to the satisfaction of the director that the primary
sponsor has entered into one or more agreements for channel
dredging or other construction on the project.
(3) Lottery bonds authorized under this section may not be
issued on or after June 30, 2013. + }
SECTION 4. { + (1) The Oregon sponsors are each authorized to
enter into agreements with agencies of the United States for the
Coos Bay Channel Project and, notwithstanding any other provision
of law, may each agree to be bound by any requirement imposed by
an Act of the United States Congress as a condition of federal
participation in the project.
(2) 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 1 to 5 of this
2007 Act, except for a failure to allocate and deposit to the
Coos Bay Channel Fund established under section 5 of this 2007
Act the amounts required by section 3 of this 2007 Act or to
disburse from the fund to the primary sponsor the amounts
required by section 3 of this 2007 Act.
(3) By receipt of any part of net proceeds of lottery bonds
described in section 3 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, except for a
failure to allocate and deposit to the fund the amounts required
by section 3 of this 2007 Act or to disburse from the fund to the
primary sponsor the amounts required by section 3 of this 2007
Act. + }
SECTION 5. { + (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 deposited in the fund under section 3 of
this 2007 Act and may include fees, moneys or other revenues,
including federal funds collected or received as reimbursement
for expenses of the project, available for payment of expenses of
the Coos Bay Channel Project or bond-related costs.
(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 3 of this 2007 Act and to
pay bond-related costs. + }
SECTION 6. { + 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. + }
----------