75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
SA to RC to B-Eng. HB 2152
 
LC 776/HB 2152-B4
 
            SENATE AMENDMENTS TO RESOLVE CONFLICTS TO
                   B-ENGROSSED HOUSE BILL 2152
 
              By JOINT COMMITTEE ON WAYS AND MEANS
 
                             June 29
 
  On page 17 of the printed B-engrossed bill, after line 22,
insert:
  '  { +  SECTION 26a. + }  { + If House Bill 2009 becomes law,
section 26 of this 2009 Act (amending ORS 285A.213) is repealed
and ORS 285A.213, as amended by section 199, chapter ___, Oregon
Laws 2009 (Enrolled House Bill 2009), is amended to read: + }
  ' 285A.213. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Safe Drinking
Water Revolving Loan Fund. All moneys in the Safe Drinking Water
Revolving Loan Fund are continuously appropriated to the
 { - Economic and Community Development Department - }  { +
Oregon Business Development Department for the Oregon
Infrastructure Finance Authority for the purposes set forth in
this section + }.
  ' (2) The   { - Economic and Community Development
Department - }  { + Oregon Infrastructure Finance Authority + }
shall administer the Safe Drinking Water Revolving Loan Fund in
accordance with a memorandum of understanding between the
 { - department - }  { +  Oregon Infrastructure Finance
Authority + } and the Oregon Health Authority.
  ' (3) The Safe Drinking Water Revolving Loan Fund shall consist
of:
  ' (a) Moneys transferred to the fund by the  { + Oregon
Health + } Authority for purposes authorized by the memorandum of
understanding between the   { - authority and the department - }
 { +  Oregon Health Authority and the Oregon Infrastructure
Finance Authority + }.
  ' (b) Moneys transferred to the fund by the federal government,
other state agencies or local governments.
  ' (c) Moneys transferred to the fund by the Legislative
Assembly or the   { - Oregon Economic and Community Development
Commission - }  { +  Oregon Infrastructure Finance Authority + }.
  ' (d) Proceeds from the sale of revenue bonds.
  ' (e) Repayment of financial assistance provided with moneys
from the fund.
  ' (f) Interest and other earnings on moneys in the fund.
  ' (4) Moneys in the Safe Drinking Water Revolving Loan Fund
shall be used to provide financial or other assistance to
publicly owned and privately owned water systems under the Safe
Drinking Water Act Amendments of 1996, P.L. 104-182, and rules of
the
  { - department - }   { + Oregon Business Development
Department + }. As used in this subsection, 'assistance' includes
direct purchase by the
  { - department - }   { + Oregon Infrastructure Finance
Authority + } of goods or services related to a water system
project to the extent permitted by the memorandum of
understanding between the   { - department and the authority, - }
 { + Oregon Infrastructure Finance Authority and the Oregon
Health Authority, and by + } the Safe Drinking Water Act
Amendments of 1996, and as authorized by rules of the
 { - department - }   { + Oregon Business Development
Department + }.
  ' (5) The owner of a water system may borrow from the Safe
Drinking Water Revolving Loan Fund by entering into a loan
agreement with the   { - department - }  { +  Oregon
Infrastructure Finance Authority + }. The owner of a municipally
owned water system may enter into a loan agreement with the
 { - department - }   { + Oregon Infrastructure Finance
Authority + } notwithstanding any restriction on indebtedness in
the charter or bylaws of the municipality or any other provision
of law. Moneys owed to the   { - department - }   { + Oregon
Infrastructure Finance Authority + } by the borrower under a loan
agreement may be paid from:
  ' (a) Revenue from any water system project of the borrower,
including special assessment revenue;
  ' (b) Amounts withheld under subsection (6) of this section;
  ' (c) The general fund of the borrower;
  ' (d) Any combination of sources listed in paragraphs (a) to
(c) of this subsection; or
  ' (e) Any other source.
  ' (6) If a borrower fails to comply with a loan agreement
entered into under subsection (5) of this section, the
 { + Oregon Business Development + } Department may seek
appropriate legal remedies to secure any repayment due the Safe
Drinking Water Revolving Loan Fund. If a borrower defaults on
repayment due the fund, the State of Oregon may withhold any
amounts otherwise due to the borrower. Any amounts withheld under
this subsection shall be credited toward repayment of the
borrower's indebtedness to the fund.'.
  On page 61, after line 36, insert:
  '  { +  SECTION 122a. + }  { + If House Bill 2009 becomes law,
section 122 of this 2009 Act (amending ORS 285B.563) is repealed
and ORS 285B.563, as amended by section 200, chapter ___, Oregon
Laws 2009 (Enrolled House Bill 2009), is amended to read: + }
  ' 285B.563. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Water Fund.
 { +  Interest earned by the Water Fund shall be credited to the
fund. + } All moneys in the Water Fund are continuously
appropriated to the
  { - Economic and Community Development Department - }  { +
Oregon Business Development Department for the Oregon
Infrastructure Finance Authority + } for the purposes described
in ORS 285B.560 to 285B.599, including the direct project
management costs.
  ' (2)(a) Moneys in the Water Fund may be obligated to water
projects.
  ' (b) Moneys shall be used primarily to make loans to
municipalities. The   { - department - }  { +  authority + } may
make a loan only if:
  ' (A) The municipality applying for the loan certifies to the
department that adequate funds will be available to repay the
loan; and
  ' (B) The   { - department - }  { +  authority + } determines
that the amount of the loan applied for is based on a reasonable
and prudent expectation of the municipality's ability to repay
the loan.
  ' (c) The   { - department - }  { +  authority + } may award a
grant   { - only - }  if a loan is not feasible due to:
  ' (A) Financial hardship to the municipality, as determined by
the   { - department - }  { +  authority + }, based on
consideration of anticipated water service charges or anticipated
waste water service charges, the per capita income of the
municipality and any other factors as the department by rule may
establish; and
  ' (B) Special circumstances of the water project.
  '  { +  (d) The authority may also award grants from the fund
to:
  ' (A) Identify and implement sustainable technologies and
practices;
  ' (B) Build asset management capacity for municipalities;
  ' (C) Plan for strategic initiatives that focus on the
regionalization of water systems; or
  ' (D) Provide third party technical assistance to communities
in the development of water systems that include asset management
components. + }
  '  { - (d) - }  { +  (e) + } The   { - department - }
 { + authority + } may determine the amount of grant or loan
funding on a case-by-case basis.
  ' (3) The moneys in the fund may also be used to assist the
  { - department - }  { +  authority + } in selling revenue bonds
on behalf of municipalities in order to carry out the purposes of
ORS 285B.560 to 285B.599.
  ' (4) Moneys in the Water Fund may be invested as provided by
ORS 293.701 to 293.820. The earnings from the investments and
other program income shall be credited to the Water Fund.
  ' (5) The Water Fund shall consist of:
  ' (a) Moneys appropriated to the fund by the Legislative
Assembly.
  ' (b) Moneys transferred to the fund by the   { - Economic and
Community Development Department - }  { +  authority + } from the
Special Public Works Fund created by ORS 285B.455.
  ' (c) Moneys transferred to the Water Fund by the Water
Resources Commission from the Water Development Fund created by
Article XI-I(1) of the Oregon Constitution.
  ' (d) Moneys from any federal, state or other grants.
  ' (e) Proceeds of revenue bonds issued under ORS 285B.575.
  ' (f) Earnings on the Water Fund.
  ' (6) The   { - department - }  { +  authority + } shall
administer the fund.
  ' (7) The department shall adopt rules and policies for the
administration of the fund. The department shall coordinate its
rulemaking regarding safe drinking water projects with the Water
Resources Department and the Oregon Health Authority. The rules
adopted under this subsection for safe drinking water projects
shall:
  ' (a) Require the installation of meters on all new active
service connections from any distribution lines funded with
moneys from the fund or from the proceeds of revenue bonds issued
under ORS 285B.572 to 285B.578.
  ' (b) Require a plan, to be adopted by a municipality receiving
financial assistance from the fund, for installation of meters on
all service connections throughout the drinking water system not
later than two years after the completion of a safe drinking
water project.
  ' (8)(a) The   { - Economic and Community Development
Department - }  { +  Oregon Infrastructure Finance Authority + }
shall manage the Water Fund and any expenditures from accounts in
the fund and transfers between accounts so that the fund provides
a continuing source of financing consistent with ORS 285B.413.
  ' (b) If necessary to ensure repayment of bonds issued under
ORS 285B.560 to 285B.599, the   { - department - }  { +
authority + } may reduce the value of the fund when the
 { - department - }  { +  authority + }:
  ' (A) Finds that without a reduction in fund value, bonds
secured by the fund are likely to be in default; and
  ' (B) Imposes a moratorium on grants until the requirements of
paragraph (a) of this subsection are satisfied.
  ' (9)(a) The   { - department - }  { +  authority + } may
charge administrative costs to the fund, but not to moneys
segregated in the account created by subsection (11) of this
 
section, to pay for administrative costs incurred by the
 { - department - }  { +  authority + }.
  ' (b) To the extent permitted by federal law, administrative
costs of the   { - department - }  { +  authority + } may be paid
from bond proceeds.
  ' (10) The   { - department - }  { +  authority + } may
establish other accounts within the Water Fund for the payment of
water projects costs, reserves, debt service payments, credit
enhancements, costs of issuing revenue bonds, administrative
costs and operating expenses or any other purpose necessary to
carry out ORS 285B.560 to 285B.599.
  ' (11) There is created within the Water Fund a separate and
distinct account for the proceeds from the sale of water
development general obligation bonds issued for safe drinking
water projects and credited to the special account under this
section. Any investment earnings thereon shall be segregated in
and continuously appropriated to a special, separately accounted
for subaccount of this account. Moneys credited to this account
shall be maintained separate and distinct from moneys credited to
subaccounts created under subsection (10) of this section.
Notwithstanding ORS 285B.566 or subsection (4) of this section,
all repayments of moneys loaned from the account created by this
subsection, including interest on the moneys, shall be credited
to the Water Development Administration and Bond Sinking Fund
created by ORS 541.830.
  ' (12) As used in this section, 'administrative costs ' include
the   { - department's - }  { +  authority's + } direct and
indirect costs for investigating and processing an application,
developing a contract, monitoring the use of funds by a
municipality, investigating and resolving a budget discrepancy,
closing a project and providing financial and other assistance to
a municipality.'.
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