75th OREGON LEGISLATIVE ASSEMBLY--2009 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 2695
A-Engrossed
Senate Bill 719
Ordered by the Senate April 23
Including Senate Amendments dated April 23
Sponsored by Senators MONNES ANDERSON, STARR, Representative D
EDWARDS; Senators GEORGE, SCHRADER, Representatives BAILEY,
KAHL, KENNEMER, MATTHEWS, READ, VANORMAN (at the request of
City of Gresham, Washington County, Central Oregon Cities
organization, City of Wilsonville)
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.
Establishes Urban Growth Boundary Expansion Area Revolving Loan
Fund. Continuously appropriates moneys from fund to Economic and
Community Development Department to provide no-interest loans to
finance eligible infrastructure projects in urban growth boundary
expansion areas.
Declares emergency, effective July 1, 2009.
A BILL FOR AN ACT
Relating to Urban Growth Boundary Expansion Area Revolving Loan
Fund; appropriating money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) The Legislative Assembly finds that issuing
lottery bonds to provide loans to local governments to assist in
the improvement and construction of infrastructure projects in
areas in which the urban growth boundary has expanded since 1997
is essential to promoting economic development in Oregon.
(2) The use of lottery bond proceeds is authorized based on the
following findings:
(a) Properly preparing areas within newly expanded urban growth
boundaries is of vital concern to the state.
(b) There are currently inadequate tools and resources to pay
for infrastructure necessary to begin development in many areas
in which the urban growth boundary has recently been expanded.
(c) Local governments are often unable to undertake necessary
infrastructure projects to accommodate development in urban
growth boundary expansion areas, because resources necessary to
begin infrastructure improvements necessary to accommodate
development are not collected until after development actually
occurs.
(d) Development of urban growth boundary expansion areas would
increase industrial job creation and foster economic development
in this state.
(e) The use of net proceeds from the operation of the Oregon
State Lottery to pay debt service on lottery bonds issued under
this section to finance infrastructure loans for urban growth
boundary expansion areas is an authorized use of state lottery
funds under section 4, Article XV of the Oregon Constitution, and
ORS 461.510. + }
SECTION 2. { + (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Urban Growth
Boundary Expansion Area Revolving Loan Fund. Interest earned on
the fund shall be credited to the fund. All moneys in the Urban
Growth Boundary Expansion Area Revolving Loan Fund are
continuously appropriated to the Economic and Community
Development Department.
(2) The Economic and Community Development Department shall
administer the Urban Growth Boundary Expansion Area Revolving
Loan Fund.
(3) The Urban Growth Boundary Expansion Area Revolving Loan
Fund shall consist of:
(a) Moneys transferred to the fund by the federal government,
other state agencies or local governments.
(b) Moneys transferred to the fund by the Legislative Assembly
or the Oregon Economic and Community Development Commission.
(c) Proceeds from the sale of lottery bonds.
(d) Repayment of financial assistance provided with moneys from
the fund.
(e) Interest and other earnings on moneys in the fund.
(4) Moneys in the Urban Growth Boundary Expansion Area
Revolving Loan Fund shall be used for providing no-interest loans
to local governments for areas in which the urban growth
boundaries have been expanded since December 31, 1997, for
infrastructure improvement projects, including but not limited to
projects to improve transportation, water treatment, water
service, sewer facilities, storm water management, parks and
public safety facilities in the urban growth area.
(5) The governing body of a municipality that has expanded the
urban growth boundary area since 1997, or a municipality that
provides or will provide services to such an area, may borrow
moneys for infrastructure projects in such urban growth boundary
expansion areas from the Urban Growth Boundary Expansion Area
Revolving Loan Fund by entering into a loan agreement with the
Economic and Community Development Department. The governing body
of a qualified municipality may enter into a loan agreement with
the department notwithstanding any restriction on indebtedness in
the charter or bylaws of the municipality or any other provision
of law. Moneys owed to the department by the borrower under a
loan agreement may be paid from:
(a) Revenue from any infrastructure project of the borrower in
the urban growth boundary expansion area, including special
assessment revenue;
(b) Amounts withheld under subsection (10) 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) Subject to subsections (7) to (10) of this section, moneys
in the Urban Growth Boundary Expansion Area Revolving Loan Fund
are available for immediate distribution to qualified
municipalities that have executed loan agreements under this
section, to pay the costs incurred to undertake projects
described in subsection (4) of this section.
(7) A loan agreement executed under this section shall require:
(a) A qualified municipality to:
(A) 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 qualified municipality; and
(B) Refrain from requesting or accepting moneys from the
General Fund for the purpose of paying costs of projects for
which the loan agreement is being executed; and
(b) The Economic and Community Development Department, after
receiving the approval of the Oregon Department of Administrative
Services, to disburse to qualified municipalities amounts from
the Urban Growth Boundary Expansion Area Revolving Loan Fund
when:
(A) Moneys are available; and
(B) The Economic and Community Development Department
determines that the qualified municipality will have sufficient
financing to complete the projects described in subsection (4) of
this section that the municipality undertakes.
(8) The State of Oregon is not liable to any lender, vendor or
contractor of a qualified municipality for any action or omission
under sections 1 to 4 of this 2009 Act.
(9) Notwithstanding subsection (5) of this section, a borrower
may not use revenues raised outside the urban growth boundary
expansion area to repay a loan from the Urban Growth Boundary
Expansion Area Revolving Loan Fund, except to repay that portion
of a project's cost that is attributable to an existing
deficiency or is necessary to accommodate development in areas
outside the urban growth boundary expansion area.
(10) If a borrower fails to comply with a loan agreement
entered into under subsection (5) of this section, the Economic
and Community Development Department may seek appropriate legal
remedies to secure any repayment due the Urban Growth Boundary
Expansion Area 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. + }
SECTION 3. { + (1) For the biennium beginning July 1, 2009, at
the request of the Oregon Department of Administrative Services,
after consultation with the Economic and Community Development
Department, the State Treasurer is authorized to issue lottery
bonds pursuant to ORS 286A.560 to 286A.585 in an amount not to
exceed net proceeds of $50 million for the purposes described in
subsection (2) of this section, plus an additional amount, to be
estimated by the State Treasurer, for payment of bond-related
costs.
(2) Proceeds of lottery bonds issued under subsection (1) of
this section, in the amount of $50 million, must be deposited in
the Urban Growth Boundary Expansion Area Revolving Loan Fund
established by section 2 of this 2009 Act, for the purposes
described in section 2 of this 2009 Act.
(3) Bond-related costs for the lottery bonds authorized by this
section must be paid from the gross proceeds of the lottery bonds
and from allocations for the purposes of ORS 286A.576 (1)(c). + }
SECTION 4. { + If the state has not deposited an aggregate
amount of $50 million in the Urban Growth Boundary Expansion Area
Revolving Loan Fund by June 30, 2011, the state shall allocate,
from residual lottery revenues that are available after
application of the residual lottery revenues to existing debt
service requirements, to the Economic and Community Development
Department an amount equal to the difference between $50 million
and the aggregate deposits to the fund as of June 30, 2011. The
allocation of moneys from the fund under this section is subject
to the requirements and priorities set forth in section 4,
Article XV of the Oregon Constitution, and ORS 286A.576 and any
other amounts required by any other pledges of, or liens on, net
proceeds from the Oregon State Lottery. + }
SECTION 5. { + This 2009 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2009 Act takes effect July 1,
2009. + }
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