75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
Senate Bill 934
Sponsored by Senator VERGER; Senators MORRISETTE, PROZANSKI,
Representatives BEYER, BOONE, BUCKLEY, HOLVEY, KRIEGER, ROBLAN,
SCHAUFLER, SHIELDS
CHAPTER ................
AN ACT
Relating to public borrowing for Coos Bay channel deepening;
amending sections 13 and 14, chapter 746, Oregon Laws 2007.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 13, chapter 746, Oregon Laws 2007, is
amended to read:
{ + Sec. 13. + } (1) In addition to amounts authorized
under { + + }ORS 286.505 to 286.545 { + (2005 Edition) or
pursuant to ORS 286A.035 + }, 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 - } { + 286A.560 to 286A.585 + }:
(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 - } { + ,
chapter 746, Oregon Laws 2007, + } 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 - } { + , chapter 746, Oregon
Laws 2007, + } that triggers the distribution of bond proceeds
described in this paragraph.
(b) In the biennium beginning July 1, { - 2009 - } { +
2011 + }, up to $15 million in net proceeds of lottery bonds to
the Coos Bay Channel Fund established in section 15 { - of this
2007 Act - } { + , chapter 746, Oregon Laws 2007, + } 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 - }
{ + , chapter 746, Oregon Laws 2007, + } that triggers the
distribution of bond proceeds described in this paragraph.
Enrolled Senate Bill 934 (SB 934-INTRO) Page 1
(c) In the biennium beginning July 1, { - 2011 - } { +
2013 + }, up to $40 million in net proceeds of lottery bonds to
the Coos Bay Channel Fund established in section 15 { - of this
2007 Act - } { + , chapter 746, Oregon Laws 2007, + } 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 - }
{ + , chapter 746, Oregon Laws 2007, + } 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 - } .
SECTION 2. Section 14, chapter 746, Oregon Laws 2007, is
amended to read:
{ + Sec. 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 - } { + , chapter 746, Oregon Laws 2007 + }, from
the Coos Bay Channel Fund established pursuant to section 15
{ - of this 2007 Act - } { + , chapter 746, Oregon Laws
2007 + }, 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 - } { + , chapter 746, Oregon Laws 2007, + } 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 - } { + , chapter 746, Oregon Laws
2007, + } if the director determines that the project is not
substantially completed by July 1, { - 2019 - } { + 2021 + },
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 - } { + , chapter 746, Oregon Laws
2007, + } 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
Enrolled Senate Bill 934 (SB 934-INTRO) Page 2
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 - } { + , chapter 746,
Oregon Laws 2007 + }, 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
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 - } { + , chapter 746,
Oregon Laws 2007 + }, 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 - } { + , chapter 746,
Oregon Laws 2007 + }, 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 - } { + , chapter 746, Oregon Laws
2007 + }.
(6) By receipt of any part of net proceeds of lottery bonds
described in section 13 { - of this 2007 Act - } { + , chapter
746, Oregon Laws 2007 + }, 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.
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Enrolled Senate Bill 934 (SB 934-INTRO) Page 3
Passed by Senate June 29, 2009
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 29, 2009
...........................................................
Speaker of House
Enrolled Senate Bill 934 (SB 934-INTRO) Page 4
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled Senate Bill 934 (SB 934-INTRO) Page 5